THE WORLDS FASTEST MOST PRECISE FORECASTS Legal Disclaimer Any - - PowerPoint PPT Presentation

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THE WORLDS FASTEST MOST PRECISE FORECASTS Legal Disclaimer Any - - PowerPoint PPT Presentation

Ed Keible Gene Pache Executive Chairman Chief Operating Officer Omaha, NE 68144 Cornelius, NC 28031 Gene@tempoquest.com Ed@tempoquest.com 402 578 1722 650 224 0296 www.tempoquest.com www.tempoquest.com THE WORLDS FASTEST MOST PRECISE


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THE WORLD’S FASTEST MOST PRECISE FORECASTS

Ed Keible

Executive Chairman

Cornelius, NC 28031 Ed@tempoquest.com 650 224 0296 www.tempoquest.com Gene Pache

Chief Operating Officer

Omaha, NE 68144 Gene@tempoquest.com 402 578 1722 www.tempoquest.com

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Legal Disclaimer

Any securities (“the Securities”) of TempoQuest, Inc. (“the Company”) that are part of the financing (“the Financing”) described in this Information Memorandum are offered pursuant to SEC Section 4(2) and Regulation D, Rule 506 B, promulgated under the Act, which exempts from the registration requirements of the Act transactions not involving a public offering and which are subject to certain limitations in accordance therewith. Such Securities will not have been registered under the Securities Act of 1933, as amended (the“Securities Act”) or any state securities laws and, unless so registered, may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable State securities laws. For the foregoing reasons, investment in the Company should be undertaken only by those investors who can afford an illiquid investment and who do not intend to resell or transfer their shares. This Information Memorandum is being delivered to a limited number of potential investors and solely for use on a confidential basis in connection with the consideration of the purchase of the Securities by investors. Its use for any other purpose is unauthorized. It contains proprietary information. By accepting this Information Memorandum, the recipient agrees that it will cause its directors, officers, employees and representatives to use the Information Memorandum and the information herein only for such purposes and agrees that the Information Memorandum and its contents and/or concepts contained herein will not be reproduced in whole or in part or distributed to any other person without the written permission of the Company. Information herein relating to the Company is based upon data provided by the management of the Company, which has reviewed such information. The Company does not make any representations or warranties, express

  • r implied as to the accuracy or completeness of the information contained. The statements in this Information Memorandum are made as of the date of this Information Memorandum unless
  • therwise indicated. Neither the delivery of this Information Memorandum nor any transaction subsequently entered into shall, under any circumstances, create any implication that there has not

been any change in the business, affairs, or condition, financial or otherwise, of the Company since the date thereof. The Company does not expect to update or otherwise revise this Information Memorandum or any other materials or information furnished in connection therewith. This Information Memorandum does not purport to contain all of the information that may be required to evaluate the merits of the Company or the Securities and recipients hereof should conduct their own independent analysis. This Information Memorandum contains certain projections provided by the Company with respect to the anticipated future performance of the Company. The assumptions and estimates underlying the projections are untested and subject to significant business, economic and competitive uncertainties and contingencies, all of which are difficult to predict and many of which are beyond the control of the Company. The Company is at an early stage of its business development and has not generated any substantial revenues to date. It is subject to risks and uncertainties of an early stage business regarding its retention of key personnel, potential competition for its products, ability to sell its products and other factors. Accordingly, there can be no assurance that the Company’s projected results will be realized. The Company’s actual results in the future will vary from the projected results and those variations may be material. The Company does not intend to update or

  • therwise revise these projections to reflect circumstances existing after the date hereof or to reflect the occurrence of future events, even in the event the assumptions or estimates underlying the

projections are shown to be in error. This Information Memorandum does not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities offered hereby by any person in any jurisdiction in which it is unlawful for such person to make such an offering or solicitation. Prospective investors should not construe the contents of this Information Memorandum as legal, business or tax advice. The Company expressly disclaims any and all liability for the representations or warranties, express or implied, contained in or omitted from the Information Memorandum or any other written or oral communication transmitted to any party in the course of its evaluation of the proposed financing. No representations or warranties other than those specifically set forth in a definitive purchase agreement shall be deemed to be made to any party. PROPRIETARY AND CONFIDENTIAL INFORMATION

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Table Of Contents Summary Investment Highlights At a Glance The Problem Our Solution TQI AceCAST Products Market Technology Marketing Model Initial Target Customers High Operating Leverage Comparative Analysis Timeline Our Team Advisors Alliances P&L Projection Market Expansion Investment Requirement Exit Strategy 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18-19 20 21 22 23 24 24

PROPRIETARY AND CONFIDENTIAL INFORMATION

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SLIDE 4

SUMMARY TempoQuest, an Independent Software Vendor, ISV, is developing a suite

  • f software tools which accelerate the

processing and improve the precision

  • f regional weather forecasts.

PROPRIETARY AND CONFIDENTIAL INFORMATION

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INVESTMENT HIGHLIGHTS

  • TempoQuest is allied with NVIDIA, a leader in GPU computing
  • Addressing a multi-billion dollar untapped market with an

identified customer base

  • Series A funding round is fully subscribed
  • Initial product to be introduced in 3 months
  • Team with unparalleled technical expertise and domain knowledge

PROPRIETARY AND CONFIDENTIAL INFORMATION

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AT A GLANCE

  • Market for customized forecasts currently > $8 billion annually
  • Market is primed for disruptive change,explosive growth
  • More rapid and precise forecasts can dramatically
  • Improve business profitability
  • Reduce societal risk; e.g. JUNO debacle in NYC
  • TQI's AceCAST software provides these improvements
  • 30% of software coding complete
  • Upon software release TQI is a low capital high margin business

PROPRIETARY AND CONFIDENTIAL INFORMATION

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  • Current forecasting technology is outdated, slow and imprecise (e.g. 3

hours delay from data collection)

  • Slow, imprecise forecasts are a problem for many industries, e.g. airline

transport, renewable energy, electrical grid management

  • Currently, users are unable to rapidly reduce business risks as weather

shifts occur THE PROBLEM

PROPRIETARY AND CONFIDENTIAL INFORMATION

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TQI is developing proprietary AceCAST tools to be run on high performance computers with GPU* accelerators delivering:

  • 3X improvement in precision
  • 10X reduction in data processing time (that which takes hours today

will take minutes) OUR SOLUTION

PROPRIETARY AND CONFIDENTIAL INFORMATION

*GPU, Graphic Processing Unit, accelerators developed by NVIDIA in Santa Clara, CA

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Precipitation Forecast* Current WRF Forecast

TQI AceCAST™ FORECAST PRECISION

AceCAST™ WRF Forecast

20 mins using 100 CPU cores 20 mins using 1 GPU core

*WRF, Weather, Research, and Forecasting, processing model

PROPRIETARY AND CONFIDENTIAL INFORMATION

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AceCAST™

PRODUCTS

  • Accelerated and more precise

air quality forecast

ChemCAST™

  • Acceleration of data insertion

into model processing

DataCAST™

  • Highly rapid prediction of

hurricane strength and landfall location

HurCAST™

  • Faster more precise regional

weather forecast

PROPRIETARY AND CONFIDENTIAL INFORMATION

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Total Available Market*1 Available User Seats*2 Total Accessible Annual Market*3

Rest of World

$5.0 Billion 20.1K $800 Mil

United States

$3.0 Billion 11.7K $500 Mil

Notes: 1. Wharton Study 2. NCAR Data 3. TQI Estimate

MARKET

PROPRIETARY AND CONFIDENTIAL INFORMATION

(for AceCast product only)

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  • AceCAST™ is based on the most used weather forecast tool, WRF

(weather research and forecasting) software

  • AceCAST™ incorporates user interfaces that are transparent to CPU

WRF users

  • AceCAST™ is WRF coded to run on high performance GPU accelerators,

e.g. NVIDIA Kepler™, Pascal™

  • AceCAST™ is customizable by market and client seat

TECHNOLOGY

PROPRIETARY AND CONFIDENTIAL INFORMATION

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  • Targeting high value verticals
  • Software as a service
  • Annual license fee per seat
  • Pay per run
  • Fee-based hardware usage

MARKETING MODEL

PROPRIETARY AND CONFIDENTIAL INFORMATION

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Weather Critical Verticals have Hundreds of Seats:

  • Utilities, Renewable Energy i.e. Next Era Energy, San Diego Gas & Electric
  • Transport i.e. FedEx, UPS, DHL etc…
  • Agriculture i.e. Monsanto, Climate Corps
  • Energy/Traders i.e. Calpine, Royal Dutch Shell , Tanaska
  • Sovereign Nations are a longer term target i.e. Japan, China, Korea

INITIAL TARGET CUSTOMERS

PROPRIETARY AND CONFIDENTIAL INFORMATION

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  • Minimal staffing & capital expenditures
  • Hardware provided by commercial cloud enterprise
  • Outsource programming and “help desk”
  • Sales by established regional reps
  • Target current 31,800 WRF users

HIGH OPERATING LEVERAGE

PROPRIETARY AND CONFIDENTIAL INFORMATION

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Client Customized Forecast Precision Enterprise Provider Forecast Speed NOAA Panasonic Weather Weather Company Metra Weather AccuWeather

COMPARATIVE ANALYSIS

PROPRIETARY AND CONFIDENTIAL INFORMATION

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2014 2015 2016 2017 2018

A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J

TIMELINE

J

PROPRIETARY AND CONFIDENTIAL INFORMATION

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Ed Keible, Executive Chairman and CEO

  • Raychem (Fortune 300) executive VP; 20 years
  • Endwave, start-up CEO & Founder, 15 years, IPO and sale
  • Director / Advisor of several other start-ups and IPOs

Gene Pache, Chief Operating Officer

  • Six years weather related start-up management, COO, founder, GeoMetWatch

Corp

  • Founder of several start-ups; software, internet, weather satellite instruments
  • Fortune 500 senior executive; 20 years; ITT Corp, Nashua Corp, Raychem Corp

OUR TEAM

PROPRIETARY AND CONFIDENTIAL INFORMATION

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SLIDE 19

Victor Schnee, Chief Financial Officer

  • Investment and technology industry expert
  • Wall Street analyst; information services venture fund manager
  • Founded tech research firm Probe Research, Inc

Allen Huang, PhD, Chief Technology Officer

  • “Distinguished Scientist” at University of Wisconsin, SSEC
  • 25 years experience in developing satellite and forecasting software
  • World leader in using accelerators in weather forecasting models

OUR TEAM

PROPRIETARY AND CONFIDENTIAL INFORMATION

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SLIDE 20

Don Berchoff, Truweather Solutions, Founder, President & CEO

  • Former Director, Science & Technology, National Weather Service
  • COL USAF (Ret.) 25 Years U.S. Air Force Meteorologist

Fred Thompson, Collaborative Communications, Inc, President & CEO

  • Award Winning Advertising and PR Executive
  • 30 Years Madison Ave Advertising, PR Experience

Stan Posey, NVIDIA, Inc, HPC Program Manager, Solutions in Earth System Modeling,

  • Manager NVIDIA High Performance Computing Strategy for Earth System Modeling

David Crain, PhD, GeoMetWatch Corp, President & CEO

  • PhD in Atmospheric Science
  • 25 Years Experience in Satellite Meteorology

Dan Pepper, Pepper Consulting, President & CEO

  • 25 Years Experience, Software Development, Marketing

ADVISORS

PROPRIETARY AND CONFIDENTIAL INFORMATION

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SLIDE 21

Space Science & Engineering Center, SSEC, University of Wisconsin, Madison

  • World’s premier developer of algorithms for satellite meteorology projects.

NVIDIA Corporation, Santa Clara

  • Developer of GPU accelerators and CUDA programming language

METRA Weather New Zealand

  • Provides businesses weather intelligence

GeoMetWatch Corp, Ft Wayne

  • Developer of hyperspectral sounder constellation in geosynchronous orbit

Hyper Sensing, Inc., Madison

  • Commercial algorithm developer and consultant to industry

ALLIANCES

PROPRIETARY AND CONFIDENTIAL INFORMATION

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TQI FIVE-YEAR P&L PROJECTION ($,000)

Year 2 Year 3 Year 4 Year 5 Year 1

AceCAST Rev

$6,000 $30,120 $50,376 $70,632

Data Assimilation Rev

$49,117 $68,866

Air Quality / Chem Rev

$32,000 $64,000

Hurricane Rev

$5,000

Total Revenue

$6,000 $59,487 $131,493 $208,498

Cost of Revenues Gross Margin Sales / Marketing Exp R&D / Programming Exp General & Admin Exp

$1320 $9,518 $21,039 $33,360 $4,680 $49,969 $110,454 $175,138 $1,080 $10,708 $23,669 $37,530 $1,416 $5,949 $13,149 $20,850 $1,216 $720 $7,138 $15,779 $25,020 $491

Total Operating Expenses

  • Oper. Prof.

$3,216 $23,795 $52,597 $83,399 $1,707 $1,464 $26,174 $57,857 $91,739

  • $1,707

ITEM

PROPRIETARY AND CONFIDENTIAL INFORMATION

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MARKET EXPANSION

  • Expanded offering of GPU WRF products
  • Developing a line of non-WRF GPU models
  • Offering customized forecast models
  • Developing a line of analytical products

PROPRIETARY AND CONFIDENTIAL INFORMATION

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  • $3 million for product development to beta testing in 2017
  • $2 million for contingencies and revenue acceleration

$5 million in two parts:

EXIT STRATEGY

  • IPO
  • Acquired by major weather forecast provider (most likely)

INVESTMENT REQUIREMENT

PROPRIETARY AND CONFIDENTIAL INFORMATION