Impact Power Technologies LLC

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  • Capital Raise
    2500000.0
  • Structure
    Equity
  • Offering Price/Share
    0.0
  • Shares Offered
    0.0
  • Current Shares Out
    3000000.0
  • Post Offering Valuation
    10750000.0
  • Post Offering Shares Out
    3909091.0

Overview and History

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Impact Power Technologies (“IPT” or the “Company”) develops and commercializes higher capacity, more reliable batteries for markets where better performance, reliability and portability are priorities. Today, our batteries are fast becoming the battery of choice.

Impact Power Technologies batteries provide better performance in terms of run-time, efficiency and overall battery life, which has translated into adoption of its batteries by leading federal and state agencies, mission-critical first response, disaster recovery and security environments as well as industrial, retail, logistics firms and educational institutions. 

Cross Section of IPT Customers (partial list)

Federal Government
Local Law Enforcement
Fire Departments
Private Enterprise
Education
Distributors
US Dept. of Homeland Security
Miami Beach Police
North Carolina Emergency Mgt.
Nissan
Tulane University
Hart Systems
U.S. Drug Enforcement Admin.
Massachusetts Port Authority
Northampton Fire Department
Budweiser
Stanford
Fujitsu
U.S. Customers & Border Protection
Ocean City, MD Police
North Caldwell Fire Dept.
Penske
MIT
Barcode Industrial Systems
Federal Aviation Administration
Salt Lake City Police
Hatzalah EMS
Canada Dry
Yale
Heartland Computers
Inspector General U.S. Treasury
Stamford Police
Hanson Fire Department
Rolls Royce
University of Alabama
Impact Radio Accessories

Bridgeport Police
Germantown Fire Department
Racing Radios
San Diego State
Liquid PC

Greenwich Police
Walsh EMS
Walgreens
University of Houston
3 Eye Technologies

City of Huron Police

JC Penny
University of Chicago

CSW

  Los Angeles City Sherriff  Kroger University of New Hampshire Owens & Minor


IPT serves critical users in core sectors of the economy for non-discretionary applications. In addition, the relatively short-term replacement cycle for batteries (18 to 36 months) provides recurring demand for replacement batteries. This translates into a highly predictable and scalable market opportunity for our batteries.

The Company’s portfolio of battery products includes advanced batteries in every chemistry, including lead acid, nickel metal hydride, nickel cadmium, lithium-ion, lithium polymer and more. Market applications where we have focused our commercial efforts in building are land mobile devices and portable barcode scanners. These markets represent substantial opportunities for continued demonstration of the superiority of our batteries

Impact Power Technologies is a research-driven business, supported by a world-class team of engineers with more than 30 years of experience designing and commercializing best-in-class power storage solutions. We have established relationships in place, with leading manufacturers for over 25 years that enable us to scale production and delivery of IPT batteries--the longest lasting, most reliable batteries available in the market today—all at competitive prices.


Products and Services

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The underlying value proposition of our battery products is that they provide longer run times, weigh less and perform better than alternatives in the market today. In corporate environments, longer lasting batteries improve workforce productivity in many ways, including reduced device (and therefore operator) downtime, lower costs associated with battery failures and fewer required battery replacements. In general, IPT batteries deliver run times 3-4 times longer than OEM batteries, provide more cycles (number of recharges) and in many cases are half the weight of OEM batteries.

In addition to superior performance, customers benefit from a reduction in total cost of ownership over the life cycle that our batteries are in operation. Also unique in our industry is that we provide customers with an industry leading 24-month warranty on the performance of our products.

IPT batteries are subject to strict quality controls. Each of its facilities is ISO 9001 certified for quality and product assurance.

Land Mobile Radios – LifeSaver Series™

We developed the first lithium polymer batteries which serve as replacement batteries for Motorola and Harris Land Mobile Radios.

Product Highlights

  • Deliver run times 3-4x longer than OEM batteries

  • Deliver life cycles 3x that of OEM batteries

  • Provide lifetime cost of ownership that are a fraction of OEM battery alternatives

Portable Barcode Scanners

Our Productivity+ Series batteries enable Barcode Scanners to run longer, and are designed for the most popular devices in the market, including Motorola, Symbol, Intermec, Honeywell, LXE, Zebra, O’Neil and Vocollect. IPT Productivity+ Series batteries provide up to a 50% productivity advantage over current alternatives. We also manufacture chargers to keep these batteries powered longer and mobile devices running.

Lithium Polymer

Impact Power Technologies specializes in the development of energy storage using leading edge battery chemistries such as Lithium, whose use is expected to increase dramatically, driven by demand for higher efficiency. We are developing Lithium-polymer based technologies which have the capability to produce more power for longer time durations than Lithium-ion and other chemistries.

Additional advantages to Lithium polymer include cost, utility, durability and flexibility. A Lithium polymer battery can be shaped to fit an array of devices with greater flexibility. They also have a much lower self-discharge rate than nickel cadmium and nickel metal hydride cells.

Uninterruptable Power Systems – UPS Ultra Series

IPT UPS Ultra Series Batteries serve markets and customers where uninterrupted power is mission-critical. We offer UPS Ultra Series lead acid batteries for all popular UPS systems in the market today.

Lead Acid Batteries

We offer lead acid batteries (wet cell, gel and AGM) for virtually every lead acid application including cars, trucks and boats, burglar alarms, slot machines, emergency power systems, UPS systems for server farms, hospital power systems and telephone systems.

Special Projects Division

Impact Power Technologies’ Special Projects Division is focused on the development of unique, high-density batteries for specific users’ unique critical applications and devices. Recent projects include:

  • Development of a portable power source for military field laptops, wherein IPT worked with the military supplier to develop a high density custom battery that is lightweight, powerful and provides 30% more run time than original specs called for;
  • Development of a long-lasting battery solution for the US Drug Enforcement Administration (DEA) tracking devices, wherein IPT delivered a custom Lithium-polymer solution that improved run time from 2 ½ days to more than a month-- an increase in efficiency of more than 1,400%; 
  • Development of custom surveillance batteries, wherein IPT delivered a Lithium-polymer solution that improved the run time of the target application equipment by more than 300%; and
  • Development of a unique robotic power solution, wherein IPT delivered a power solution that reduced battery charge time by 50%, increased battery run time by 100% and improved overall output by over16% annually.

In addition the Special Projects Division provides IPT with the unique opportunity to design and manufacture advanced battery solutions and test them in real-work environments with managed financial risk.

Market Opportunity

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Navigant Research forecasts that revenue generated by the sales of all advanced batteries for portable power applications is forecast to surpass $7.1 billion in 2013 and grow to over $12.4 billion by 2023.[1]

Impact Power Technologies’ primary sales channel is OEM battery replacement. Depending on the underlying application (equipment), device batteries must be replaced between 15 and 36 months after initializing new equipment. With the increased use of mobile equipment by commercial, government and military agencies as well as other users, there is a large and growing list of critical use battery requirements globally.  As a result, replacement battery sales will continue to increase sharply.

Existing Footprint

The immediate opportunity to scale our business resides in expanding sales amongst existing target markets:

  • Police Departments there are more than 18,000 police departments in the United States[2] (IPT has  sold to approximately 150 police departments to date, just scratching the surface,

  • Emergency/First Responders there are more than 30,000 fire departments in the United States[3] and more than 15,000 ambulance services[4]

  • Federal and Municipality Disaster Recovery (Federal DR market for IT services projected to reach $5B+ by 2020, with emerging Disaster Recovery “as a service” gaining traction)

  • Power Supply Backup (emerging battery technologies used in the backup and uninterruptible power supply (UPS) markets will grow six-fold from $143 million this year to $896 million in 2020)[5]

  • Logistics, Manufacturing and Retail (U.S. sales of barcode scanners expected to increase from approximately $400M in 2011 to approximately $600M in 2017)[6] 

Military Opportunity

One of target markets we will address with this funding is the military battery market, which includes soldier portable batteries. Battery performance optimization is always application dependent, and it involves balancing many different concerns and characteristics. Although specific energy is one of the more desirable characteristics of battery performance, it is only one part of the total package. The instantaneous power that the battery can provide per unit of weight (measured in watts per kilogram) is another crucial characteristic. The military also places a premium on a battery’s energy density, namely, the amount of energy that can be stored in a specified volume (often expressed as watt-hours per liter).

Soldier Portable Battery Supply generally makes use of the same types of chemistries as do commercial batteries, though they often emphasize different characteristics of performance. In some commercial applications, lowering unit cost is the primary goal of battery research. This is the case for the US Department of Energy (DOE)-sponsored battery development efforts in support of electric vehicles and for stationary storage of electricity. For military purposes, however, battery cost is secondary to dependability and longevity. Because a mission success and a soldier’s lives often depend directly on a military battery’s performance, the military is willing to pay somewhat higher prices to ensure that its batteries will be effective in combat situations and rugged environments.

In the past decade the U.S. military has spent more than $14 billion to purchase more than 1 million tactical ground radios. With more than 75% of these units estimated to still be in service, most of these batteries are no longer serviceable and may represent a danger to soldiers.  We believe there is a significant opportunity to address the existing military market. In addition, the number of all mobile military devices is expected to increase in the future, providing additional opportunities.

Portable Scanner Market

The portable scanner market is substantially larger than the two-way radio market (~10x). Portable handheld barcode scanners are widely used in retail, manufacturing, distribution and diagnostics. The demand for these devices is expected to increase to more than $600 million by 2017. IPT batteries are compatible with most device models on the market. Recent customer wins in this segment include Staples and Zebra Technologies (Zebra recently purchased Motorola).

Others

We are also planning to target other opportunities including: 1) the robotics market (distribution centers), 2) drones (backup and primary batteries) and 3) consumer markets.

Footnotes:

[1] Navigant Research. "Advanced Batteries for Portable Power Applications", 2014.

[2] Bureau of Justice Statistics.

[3] National Fire Protection Association

[4] American Ambulance Association

[5] Lux Research.

[6] VDC Research.

Competitive Landscape

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Competition in our target markets can generally be characterized by a few large competitors dominating the market: such as Motorola and Harris in the radio handset market and Motorola in the scanner market.  These competitors not only sell the batteries, they also manufacture for the actual devices for which batteries they market provide power (“razor/razor blade” strategy). We also compete against other small competitors who fight for a small market share and where the basis of competition is primarily on price. 

We believe that we will compete effectively based on price, performance (see comparison Tables 1, 2 and 3 above) and our commitment to driving innovation. In each of these markets, success is driven by consistency, performance, quality and warranty.


Our Solution & Value Proposition

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Advancement in mobility and portable technologies and devices depends in large part on battery performance. However, portable device technologies have been enhanced more quickly than battery performance has been able to keep pace. Higher power requirements of advanced portable devices have offset relative improvements in battery performance resulting in more powerful devices with marginal improvement in runtime.

This increasing number of products and applications for portable electronics is driving demand for batteries capable of greater storage capacity and longer operating lifetime, without sacrificing quality.

Impact Power Technologies (“IPT” or the “Company”) develops and commercializes higher capacity, more reliable batteries for markets where better performance, reliability and portability are priorities. Today, our batteries are fast becoming the battery of choice.

Impact Power Technologies batteries provide better performance in terms of run-time, efficiency and overall battery life, which has translated into adoption of its batteries by leading federal and state agencies, mission-critical first response, disaster recovery and security environments as well as industrial, retail, logistics firms and educational institutions. 


Sales and Marketing Strategy

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Our marketing strategy is to identify OEM replacement battery and custom application markets where (i) applications for batteries is non-discretionary (ii) we have an existing footprint and opportunity to scale, (iii) performance and reliability are mission critical (military, first responders, police, government agencies and uninterruptible power systems) (iv) customers who are presently underserved and barriers to entrance are relatively low (commercial and education).

We emphasize:

  • Battery performance superiority,

  • Engineering capabilities,

  • Lower cost of ownership,

  • Best practices in quality control and manufacturing,

  • Industry leading warranty, and

  • Market validation through reference accounts and success stories.


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