Waste Heat Recovery ORC Co-Generation Technology Development Project

Opportunity Snapshot

Investment Opportunity

The Company will develop a stand-alone waste heat recovery ORC system that will produce usable electricity utilizing normally wated heat from a host HVAC/R unit(s). With this technology, the Company will tap into both commercial and public sectors which has a combined 5.1 million building w/61.8 billion square feet of conditioned space.

The Waste Heat Recovery Organic Rankine Cycle Co-Generation System will benefit end user's by significantly reducing energy costs while reducing our dependence on non-renewable fuels.

Business Summary:
Energy Management Professionals (EMP) invents, develops and commercializes technologies that improve the energy efficiency of products and processes. The Company’s particular focus is on energy generation utilizing thermodynamics, heat transfer and heat exchange, which are important to the “HVACR” industries and to the current invention. EMP currently holds the rights to two (2) patent-pending applications.

Management:
EMP principles, R.E. Wiles and W.K. Glaze were part of a group that founded and managed a multi-faceted company in February 1998. Below are some key accomplishments:
• Developed 17 patented and patent pending technologies
• Successfully established sales through numerous ESCO’s & contractors
• Took company public in 2001
• Awarded priority DLA Procurement status for our packaged HVAC unit
• First commercial HVAC unit awarded Energy Star

Customer Problem:
The Federal government has specific objectives to meet, as required by Executive Order 13123 while Private Sector businesses are looking for means to reduce costs through energy savings with a realistic ROI.

Product/Services:
Preliminary analysis shows our Waste Heat Recovery ORC Co-Generation System will save up to 40% of overall energy costs with the same impact as to reduced emissions. This alone will help meet mandated reductions required for government buildings and along with our ESCO Partners will meet simple payback criteria in both public and private sectors.

Target Market:
For the technology to operate, waste heat from HVAC/R systems is needed. The number of units available along with new installations to extract this heat determines our potential market. Market description below:
• Approximately 4.6 million buildings in the commercial sector with over 58.7 billion square feet of conditioned space.
• Approximately 500,000 buildings in the public sector with over 3.1 billion square feet of space.

Customers:
EMP will re-establish relationships with ESCO’s from previous projects and will market the Waste Heat Recovery ORC Co-Generation System to the other 96 D.O.E. approved ESCO’s.

Sales/Marketing Strategy:
EMP has a portfolio of unique solutions to enhance the efficiency of many of the most common energy applications in the economy today. These solutions are under patent applications to preserve the Company’s proprietary rights to the economic benefits of the individual solutions. EMP seeks to maximize this economic value by creating products that adapt to existing products, or in some cases, create new products altogether.

Use of Proceeds:
The Company is seeking an investment of $1,260,000 (pre-money valuation of $4,200,000) to support its ongoing growth and expansion through its first year and eliminate all short-term debt. This financing will enable the Company to launch production of its new equipment lines and deploy an experienced sales force, enabling the Company to achieve the revenue growth as projected in our Business Plan.

Exit Strategies:
EMP envisions for our investors and founders maximum return of their investments by exploring all options for the future. Our experience in a recent venture was taking the company public in 2001 with fifteen patented and patent pending technologies which presented tremendous opportunities for a variety of products opening several markets and increasing share values. EMP will focus on our one proprietary technology which will allow us to evaluate multiple scenarios shown below;

Scenario One
The investors that provide the capital that is the subject of this document will have several exit opportunities available to them. Management believes that the most likely exit will come from the sale of the Company or licensing of its intellectual property to one of its strategic partners or to another enterprise. Other alternatives that would create a liquidity event for the investors might include a buy back of the outstanding shares using cash on the Company's balance sheet or through the exchange of the stock with long term capital provided by the lender or lenders.

Scenario Two
We will pursue several possible exit strategies:

IPO: Depending on market conditions and the growth in our product lines, an IPO may be feasible in 2-3 years.

Be acquired: This is a fragmented market that will be ripe for consolidation in several years as more and more enterprises strive to incorporate energy technologies into their business processes.

Stay Private: If market conditions soften, we plan to continue to operate as a profitable private entity, distributing dividends to shareholders until liquidity opportunities become available.

Business plan and summary are available for download on Merar. Investors can also contact us here.

Competitive Advantage

The Waste Heat Recovery ORC Co-Generation technology’s current status is a recent non-provisional patent application filed on May 16, 2011. Our research partner, USF Research Foundation, Inc. is obligated to provide the resources with administrative, legal and financial support to complete the patent application.

The basics of the technology, the Organic Rankine Cycle (ORC), was developed approximately 100-years ago and is utilized today by companies that couple the ORC system using solar and geothermal heat sources. The Company's use of the ORC systems utilizes a more cost effective method by tapping into a host HVAC/R system to provide the necessary heat to operate the ORC system and produce usable electricity.

Rationale for the deal

The Company has a portfolio of unique technological solutions to enhance the efficiency of many of the most common energy applications in the economy today. These solutions are under patent applications to preserve the Company’s proprietary rights to the economic benefits of the individual solutions. The company seeks to maximize this economic value by creating a series of products that adapt existing products to include the technology applications, or in some cases, create new products altogether.

The Company considers its core expertise to be in the improvement of the efficiency of the application of the laws of thermodynamics to products. This specifically includes any product or application that seeks to transfer or move heat from one location to another, generate electricity and to raise or lower the temperature of air or water.

Due to this expertise, the core markets for the company’s products are those areas of the economy where heat exchange is most heavily used: air conditioning, refrigeration, the heating of air and water, etc. It is in these markets that the company will initially concentrate its limited resources to develop and sell its products.

The Company envisions for investors a maximum return of their investments by exploring all options for the future. Our experience in a recent venture was taking the company public in 2001 with fifteen patented and patent pending technologies which presented tremendous opportunities for a variety of products opening several markets and increasing share values. The Company will focus on our one proprietary technology which will allow us to evaluate multiple scenarios shown below;

Scenario One
The investors that provide the capital that is the subject of this document will have several exit opportunities available to them. Management believes that the most likely exit will come from the sale of the Company or licensing of its intellectual property to one of its strategic partners or to another enterprise. Other alternatives that would create a liquidity event for the investors might include a buy back of the outstanding shares using cash on the Company's balance sheet or through the exchange of the stock with long term capital provided by the lender or lenders.

Scenario Two
We will pursue several possible exit strategies:

IPO: Depending on market conditions and the growth in our product lines, an IPO may be feasible in 2-3 years.

Be acquired: This is a fragmented market that will be ripe for consolidation in several years as more and more enterprises strive to incorporate energy technologies into their business processes.

Stay Private: If market conditions soften, we plan to continue to operate as a profitable private entity, distributing dividends to shareholders until liquidity opportunities become available.

Use of financing

The Company is seeking an investment of $1,260,000 (pre-money valuation of $4,200,000) to support its ongoing growth and expansion through its first year and eliminate all short-term debt. This financing will enable the Company to launch production of its new equipment lines and deploy an experienced sales force, enabling the Company to achieve the revenue growth as projected in our Business Plan.

NOTE: As per the Partnership Agreement between the Company and USF Research Foundation, Inc. (USF), USF is responsible for ALL patent costs for the Waste Heat Recovery ORC Co-Generation System.

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