scientific innovations, inc. scientific innovations, inc. joseph brondo president and ceo prepared...

SCIENTIFIC INNOVATIONS, INC.

Scientific Innovations, Inc.Joseph Brondo President and CEO

Prepared byKenneth C. Ehrhardt

Scientific Innovations, Inc.Joseph Brondo President and CEO

Prepared byKenneth C. Ehrhardt

OVERVIEW SCIENTIFIC INNOVATIONS INC.

“MGRIDS” TECHNOLOGY

OVERVIEW SCIENTIFIC INNOVATIONS INC.

“MGRIDS” TECHNOLOGY

SCIENTIFIC

Innovations

Inc.


CAPABILITIES AND BUSINESS FOCUS AREAS

Scientific Innovations, Inc. has developed a unique, patented and specific technology capable of identifying threats from a variety of sources. This technology, known as MGRIDS, can be specifically configured to identify:

Explosives Nuclear or RadioactiveDrugs materials (dirty bombs)Other contraband Medical Scanning

Our business can be divided into 8 distinct areas based on the specific application of the technology. These areas of focus are:Shipping Container Airline baggage and cargoPassenger scanning Vehicle scanningBorder security IED DetectionMobile Scanning Full body medical scanning


SPECIFIC BUSINESS AREAS

• Shipping Containers – these are ocean containers entering the U.S. from various ports from around the world. (Also applicable to rail)

• Airline Baggage and Cargo – located in airports to provide rapid scanning and positive identification of all non-passenger cargo.

• Passenger Scanning – provides a positive, safe and thorough method to scan people for a variety of contraband materials.

• Vehicle Scanning – provides the opportunity to identify threats aboard moving vehicles.

• Border Security – can be established at either fixed or open terrain border locations.

• IED Detection – utilizing an open field scanning approach, this sector will focus on the identification of randomly placed IED’s.

• Mobile Scanning – focused on the development of individual units that can be temporarily positioned at any location.

• Full Body Medical - develop opportunities for medical end uses.


WHAT IS MGRIDSMGRIDS - Mono-Energetic Gamma Resonance Imaging and

Detection System is the newest and Only technology capable of Simultaneously Detecting and Specifically Identifying multiple threats from contraband stored in varying container types regardless of size or shape up to 300 meters away

MGRIDS IS – The Solution To Legislated Inspection

Critical Features:1. Simultaneous inspection, detection and identification of Explosives,

Nuclear materials and Drugs based on their unique chemical make up2. High throughput scanning capability with > 95% accuracy 3. Proven technology with intellectual property covered by 36 current

US and International patents 4. Fully automated decision making with element specific 3-D imaging 5. Testing is non-destructive, non-invasive and safe


MGRIDS - CAPABILITY

• Open architecture allows for specific designs for each unique application

• Detection configurations can be designed for portal, standoff, transportable and remote sensing – up to a distance of 300 meters from the source

• Target design can be done in a manner that is very specific for the detection a given element or very broad so as to encompass detecting many different elements depending on the application

• 3-D tomographic imaging of total contents with simultaneous analysis by element yielding unique threat identity, quantity and location

• Configurable for multiple discrete scanning stations powered by one proton accelerator

• Fully automated decision capability with minimal operator interpretation and threat identification training


MGRIDS – MARKET ANALYSIS

• Public Law 110-161 requires that by the end of 2010 100% of all incoming containers must be scanned for potential threats

• September 30, 2006 U.S. Congress passed H.R. 4954 authorizing a $3.4 billion port security bill The bill authorizes $400 million per year spending through 2011

for direct grants to ports to be spent on equipment and training• All current detection systems rely on x-ray technology or other latent

chemical analysis that DO NOT yield specific threat identification• ONLY MGRIDS can identify the unique threat(s) and determine the

quantity and location


Location MGRIDS Market

Airports (Cargo) 450 $5,400,000,000TSA Locations 7000 $42,000,000,000Ports 327 $3,924,000,000U.S. Border Crossing 140 $1,116,000,000Military and Other Applications 1500 $9,000,000,000

Total $61,440,000,000

MGRIDS – Market Analysis• U.S. only locations for MGRIDS units

• Additional revenue potential: MGRIDS sales outside the U.S. After-market parts, training, services


MGRIDS: POTENTIAL USERS AND APPLICATIONS

MGRIDS: POTENTIAL USERS AND APPLICATIONS

Force Protection (DoD)• Military Bases• Counter-terrorism

• Explosives Detection in Vehicles• Mine detection in the field

Warhead/Rocket QC (DoD)• Crack & Void Detection• Mixture Quality

Medical Research• Neutron Capture Therapy• Whole Body Composition

Environmental Cleanup (DoD))

• Unexploded Ordnance Detection• Mine Field Clearance

US Customs (DHS)• Border Control

• Seaports• Buildings• Explosives, Nuclear Material or Drug Detection in Vehicles and Containers

MGRIDS Technology

Department of Transportation (DoT)• FAA

• Explosives Detection in Cargo• Checked baggage inspection• Scanning trucks/vehicles

Warhead/Rocket QC (DoD)• Crack & Void Detection• Mixture Quality

Private Sector• Stadium or arena protection


Government and Private Funding

1990 1992 20001998199619941988

FAA$12M

DARPA$10M

FAA$3M

BNL$1M

More than $27M invested by US government for R&D to date.

Private Funds provided by Scientific Innovations Inc. Private Funds provided by EDO Corporation ( ITT ) Private Funds provided by Grumman Aerospace

Corporation Private Funds provided by Northrop Grumman Co. Private Funds provided by Advanced Energy Systems Private Funds provided by General Atomics Manhattan

Project and BAA04-02)

Government and Private Funds from 1985 to present 2012

Congressional Authorizations

$15M

Government Involvement

Department of Energy Laboratories Department of Defense Laboratories Department of Homeland Security Defense Advanced Research Projects Agency Department of Transportation Transportation Security Administration Air Force Technical Assistance Command U.S. Customs Coast Guard Pentagon Naval Surface Warfare Centers (Dahlgren, Yorktown,

Indian Head, EOD) Naval Research Laboratory , Office of Naval Research



CURRENT STATUS OF THE MGRIDS PROGRAM

• MGRIDS is ready to move into the commercial development stage • Intellectual property is protected with additional patent applications

on file, being processed or ready to submit• Proof of concept completed and documented• In Less Than 1 Year of securing funds, 1 MGRIDS demonstration

unit can be readied and commercial units can be manufactured for specific end uses

• Within 1 Year, SII will Initiate customer demonstrations and begin taking orders

• SII is seeking funds to make MGRIDS a viable and valuable commercial product.


MGRIDS – OPERATION AND PUBLIC SAFETYMGRIDS – OPERATION AND PUBLIC SAFETY

• The proton accelerator produces low energy x-rays that are managed at the accelerator and controlled by shielding at the source

• Protected and highly collimated proton beam• Radiation dose required to analyze Nitrogen (N) in the human body

is 0.026 mrem - about 1/40 of the exposure from a dental x-ray• Dose to a stowaway or operator would be considerably lower than

that noted above • Target produces only gamma radiation, no neutrons, therefore no

induced radioactivity of surrounding objects• The gamma flux is up to three orders of magnitude lower than any

current commercial competitive system e.g.VACIS, CT systems and other “soft x-ray” systems.


The proton accelerator generatesa proton beam that hits the target that then produces a gamma beam field

MGRIDS – SYSTEM AND MAIN COMPONENTS

The produced gamma beams interact with the object of interest creating a unique signal signature that is received by the detectors.

InspectedObject

Detectors

Proton Accelerator

TargetGamma Beams


MGRIDS – MULTIPLICITY OF INSPECTION STATIONS

Single system can feed four inspection stations simultaneously at one location

Single system can feed three inspection locations alternately


MGRIDS – POTENTIAL FIELD DEPLOYMENT


MGRIDS – POTENTIAL FIELD DEPLOYMENT

StackedContainers

Detectors

Resonance Gamma

Beam

36’8’

18’

Target

21’

• Simultaneous inspection of 4-40’ containers

• A 2 container stack will double the throughput

• Scan time <4 minutes

• (Times extrapolated from experiments)


MGRID – PROOF-OF-PRINCIPLEEXPLOSIVES IDENTIFICATION

Nitrogenous and

non-nitrogenousobjects placed

in a beam.

Experiments carried outby Nahal Soreq Group

Images:

Out of resonance – X-ray like

image - Showing all materials

In resonance – Highlights only

materials with Nitrogen -

Explosives


MGRIDS – DEMONSTRATION OF LD-3 CONTAINER

Six explosives (A to F) were hidden in a LD-3 container loaded with a mixed cargo. NRC Nahal Soreq group carried out these experiments using resonance detectors for nitrogen detection.

Two images are created simultaneously. The upper image shows a regular gamma transmission radiograph. The lower image shows nitrogen image that clearly identifies the explosives. Note: No data enhancement or cleanup – raw data only

AB

C

D EF


MGRIDS - ADVANTAGES

In a two dimensional plot simultaneous registration of the total density and the nitrogen density separates the explosives from other common materials. Notice the completely distinct and separated region for drugs.

This plot provides for the fully automatic identification of explosives and/or drugs.

Capability to detect additional elements e.g. U235, Pu239, Th232


Total Density (g/cm3)

Nit

rog

en D

ensi

ty (

g/c

m3) HMX

RDX

PETN

Picric Acid

Tetryl

TNT

AN

NG

DNGEGDN

ANFO

NITROGEN DENSITY VS

TOTAL EXPLOSIVE DENSITY


Year 1 Year 2 Year 3 Year 4 Year 5

SALES INCOME 18,000,000 271,000,000 355,000,000 419,000,000 470,000,000COST OF GOODS SOLD 46,377,000 160,737,950 207,283,950 233,063,750 240,922,850

OPERATING EXPENSE 15,281,100 18,567,350 19,957,350 21,277,350 23,052,350SELLING EXPENSE: 3,115,000 5,630,000 7,020,000 8,340,000 10,115,000

GENERAL & ADMIN EXP 5,231,100 5,402,350 5,402,350 5,402,350 5,402,350OTHER EXPENSES 6,935,000 7,535,000 7,535,000 7,535,000 7,535,000

PRE-TAX NET INCOME (EBITDA) (43,658,100) 91,694,700 145,758,700 182,658,900 224,024,800

5 YEAR REVINUE SUMMARY


Scientific Innovations, Inc.

1. New York corporation incorporated in 1985 under the laws of the State of New York headquartered on Long Islanda. Incorporated for the purposes of research and development of

Non-Intrusive medical imaging and detection systems for diagnostics and treatment of disease

b. Evolved into the research development of a unique and superior system of detecting and imaging terrorist threats i. All types of explosive materials (liquid and solid)ii. Chemical warfare agents and chemical weaponsiii. Radioactive or nuclear materials (SNM) Nuclear weapons

(shielded and unshielded)iv. Drugs, contraband and new emerging threats

2. The Company maintains a WEB site for its technologies and products at www.scientificinnovations.org.

scientific innovations, inc. scientific innovations, inc. joseph brondo president and ceo prepared...

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