 Okay, hello everybody. This is my I think fifth time speaking here at the university in the last three years And I wanted to change it a little bit I've presented in the past with regard to the sensor technology and I'm going to talk about it today again And I want to put a twist on it Now I'll do I want to tell you about the company and where it's headed But I want all of you today to be Investors or considering to be investors So what I want you to do is pretend that you have ten million dollars US dollars not wrong ten million US dollars sitting in the bank and you want to invest it and I'm one of the people coming in with a presentation to you about this technology and I'm going to be asking you for investment funding So what I want you to do is not only try to understand the technology a little bit and Understand what's happening here in Armenia with respect to that technology But I want you to consider this presentation in terms of you being a multi-millionaire and you want to make an investment And you're trying to decide whether this presentation is worthy of an investment I have a little surprise for you. I know that there's some flaws in this presentation I'm not going to tell you what they are So I'm hoping as you watch it you'll come up with the flaws and you'll try to Ask me questions about areas where you think the presentation is weak Okay, so we'll try to make it a little bit fun here In addition to just the presentation Okay global innovations incorporated is a small startup company in Los Angeles And we're representing an Armenian technology company here in Yerevan And that company's name is Precision Sensors Instrumentation Limited It's based in at Yerevan State University. It's in the physics department It is a sensor technology that senses seismic vibrations in the ground and as a result you can Detect footsteps or you can detect trucks and trucks or cars You can detect tanks coming in And as a result there is quite a bit of interest in this technology Especially here in Armenia and for Artsakh for the border with Azerbaijan If you can sense soldiers, Azeri soldiers or Azeri tanks or Azeri trucks Attacking the Armenian or Artsakh border if you can detect that ahead of time That's a big deal for the generals So we are actively involved with the government and with the military here in Armenia trying to get Interest in this new technology that was invented here at the university All right now as I go along not only am I going to give you the presentation But I want to explain to you why we're giving why the presentation was created this way because another thing that I'd like to Be able to have you learn today is how to give how to write and how to present an investment presentation or an investment request presentation So the first thing you want to do is create a burning platform like what is the reason I'm here Why do we have to start a company? Why are we interested in getting investment funds? So we have two burning platforms One of them is what I just told you about Armenia's border with Azerbaijan is vulnerable to attack And the second is the second burning platform is the us-mexico border There's a lot of illegal drugs and illegal people coming in From mexico They're bringing in weapons now right now It's just smaller weapons like handguns and submachine guns, but it could very easily be biological weapons it could very easily be A dirty bomb, you know what a dirty bomb is bring in uranium products that could be used for Either a nuclear explosion or just Spread the radiation throughout the country So these are issues and now we're finding out that for the us-mexico border There's tunnels being dug more than 30 feet deep and over one or two kilometers long And they're bringing in illegal weapons and drugs and etc through the tunnels So there's got to be a way of sensing all that so that the border security on the united states side can detect these Tunnels being dug and then stop it So these are the two burning platforms that i'm going to present today to you as investors Now for Armenia, it's pretty serious Azerbaijan is outspending Armenia by three to one at least for military's equipment Azerbaijan has three to five times as many troops hangs artillery aircraft And of course you all know that the zary president has made a lot of threats about regaining art sock back by force And of course we all also know that there's a lot of sniper attacks and there's One or two people either civilians or Armenian soldiers being killed Every month, so there's probably about 20 a year being killed on average So the security of Armenia and art socks border with Azerbaijan is at stake so so that's the burning platform in terms of Armenia and art sock and why this sensor would be important Okay, well we already talked about the first bullet here The Armenian border force is scattered thin along the border now We'll talk more about how this sensor would help in solving that problem too And of course an early warning system. We want to have the The sensor system provide early warning Same with the u.s. National border with mexico a lot of illegal drugs coming in we talked about that a lot of sophisticated tunnels And what we found out is they they are bringing in Palestinian civil engineers who built tunnels from Palestine and into israel and And the issues that are going on there and they're bringing that expertise to mexico And because the drug cartels of mexico are so wealthy They can easily afford to bring in any kind of technical expertise they want to have their tunnels dug properly So here's the second burning platform in a little more detail This is the second burning platform Now for the u.s. Mexico border bowing was awarded a 2.53 billion dollar contract in 2007 To build a border fence and that fence included towers It included an actual fence that we're normally used to it also included thermal imaging sensors with which sensors heat and can see at night Light amplification systems so they can see at night and also ground sensors But the seismic sensors they're using in the ground now only work out to about 30 meters So it doesn't give them a whole lot of advanced warning The system turned out to be a disaster because it was not system engineered properly and it wasn't managed properly So in 2011 the u.s. Homeland Security Department canceled the program with bowing after After bowing had spent one billion dollars to build only about 100 kilometers of the of the border security fence So it turned out they terminated the contract A couple of years passed the engineers working for the u.s. Government We're trying to go back and figure out what went wrong and how do you go back and fix it So now the u.s. Government is asking american industry to come forward with proposals in october 2013 And see what we can come up with in terms of building a border fence that actually works properly at a reasonable price So that's that's where the big market is right now Now u.s. Homeland Security currently has no method for for Detecting deep tunnels. So that's a real issue and a real weakness with the current 100 kilometers of border fence now it turns out that the The whole border with mexico is about 3200 kilometers So only about three percent of the total border Is actually being is actually completed now and of course that doesn't work very well And that's part of the failure that bowing went through Okay, as a result of these concerns, there's false alarms. There was Two border security agents were in the dark in september of last year and they accidentally shot each other and one was killed Other was wounded So it's a very serious problem for the u.s. Border with mexico So here's our vision and global innovations and of course we're representing precision Sensors and instrumentation here in the other one Sorry, I didn't get the point. Why is it to border agents Shoot each other Because they were out in the dark in the middle of the desert They didn't realize that they were both on the same side So they thought that each of them thought the other one was an illegal alien coming across the border Either with drugs or weapons Because of the sensor systems they're using now they don't get complete information So when they go out there in the dark in the middle of nowhere They're kind of guessing and somebody one of the agents shot the other and then they ended up shooting each other So it was by accident Unfortunately, one was killed one was wounded Okay, so our vision and global innovations is to create a highly reliable border security system And we want to be able to automatically detect and specify intruders of any kind on the ground or in tunnels That's the whole idea behind This company this technology And and why we're here today Looking for investments. So the solution is we want to introduce our media's cutting-edge sensor technology And of course i've mentioned earlier gii is the u.s marketing arm and the Systems engineering arm of the company and ps i is the company here that invented the sensor here at yedavon state university And it's now a separate company That is incubating at the company Have they been taught about incubation? So so the PSI has approval And the cooperation of yedavon state university to continue working at the university In the hopes that the company will become a big company A profitable company and something of That can be a great a source of income for the country and a source of pride for the country So that's that's the reason why yedavon state university is allowing the company to remain within the university for the time being All right. Well, I already talked a little about gii global innovations Now gii i'm one of the american armenians Working in gii in los angeles. We have two others We are all from the aerospace industry in america So we know what's going on in terms of the big Boeing contract that was terminated by uh, homeland security We're uh, confident and capable of running a company within los angeles and moving forward and working with the u.s government in the event that we were to win a contract Of course because we have our contacts here at ps i at yedavon state university Working with the ps i and further developing the technology here Is something that we're we've been doing and we feel that it's a seamless Working relationship. Okay. Now ps i um Dr. Song velga borgen who is the inventor of the sensor Is a phd physicist at yedavon state university. He's one of the professors there And he invented the seismic sensor technology as a result of the Well in 1988 we had the bad earthquake here in hayastan and so he was working on different technologies at that time And he realized that the technologies he was working on Could be applied to developing a seismic sensor technology as a result We american armenians got involved with dr. Giborgon and we realized that not only could it be seismic sensor technology or something that would sense earthquakes But it would be also very valuable for border security And since border security has a much much bigger market than Earthquake sensing we decided that our first push would be towards that towards Selling this marketing this technology for Earthquakes for a border sensor and of course here at the bottom There's five phds at the university working at psi on this technology and five other managers So right now there's just 10 people here in psi at the company All right, so I wanted to show you now a little bit about the technology the early warning border security system So this would be how do you implement the system and how do you go? What are the applications? All right, this is an actual photo of Illegals crossing the border from Mexico in the United States And here would be what we would propose as a system for the u.s You have each of the sensors would be placing the ground and the green circles are showing you That the area that each sensor can sense And right now we're looking at an area where the radius would be about 300 meters Out or a diameter of 600 meters for each of these circles So 300 meters is about 10 times further than the current technology that's being used At the border. So this is a huge improvement The best technology in the world prior to psi's technology is about 30 meters For sensing somebody walking Now for trucks and tanks the distance is further. But right now we'll just talk about the distance for walking So we're talking about increasing that 30 meter radius to 300 meters and even perhaps more than that So if you were to have these sensors along the border And then the sensors would be buried in the ground about 20 or 30 centimeters So it's a quick hurry up big a little hole put it in the sensor will be about the size of my fist Covered up with dirt And in fact what we're going to bury in the dirt is we're going to make it look like a rock So when we bury it in the dirt, it'll look like a rock. It'll be gone. No one will even know what's there It'll be talking to Uh Stations further back from the border and then from there it will transmit back to Wherever the headquarters would be for border security So as as someone is either digging or coming towards the border fence There'll be at least a 300 meter Notification distance Here and then that info information will go to the border security headquarters, and then they'll send border agents out there to Intercept them any questions at this point? I'm glad you asked that That was that was one of the things we deliberately left I deliberately left out to see if you would catch that or not So I got caught on the first one very good That actually could be either way the current systems that are used that are that are only good for 30 meters They have batteries in them and they have to be replaced every three months So four times a year somebody's got to go out in the field And they've got to dig they got to know where that Sensor was and they got to dig that hole And pull that thing out and then open it up and put a new battery four times a year And believe it or not, this is what's being done at the border now with Armenia and Azerbaijan Armenian soldiers have to go out there at night. I hope they don't get shot at by snipers And they have to replace the batteries That is a big problem And the solution is don't use batteries The solution is bury a wire out there. You're gonna if you're gonna bury the the sensory mental bury a wire You bury a wire you eliminate your battery problem and since at the border, that's a that's an issue in terms of soldiers getting killed It's a big advantage if you're not using a battery Oh, how do you oh when you won't get a signal I mean that so and there's ways of pulsing you can send a signal to check to see if it's a functional Okay, that's a good question too and that's what you count me on the second one because that's All right It turns out that each Type of movement is different just like earthquakes have different signatures A person walking on two feet has a different noise signature as compared to Someone who's running or a four-legged animal or a truck or a tank Or a car a tank has an extremely different noise signature migration signature Than a car or somebody walking so you can detect these things So the enemy should learn how to walk like a sheep. Yes well That's true except for four-legged people that resist that. Yes Except as soon as you as soon as you know that they're doing that Then you can you can just add that into your software and as soon as you see that's a signature You know, it's them pretending they're sheep Okay, so so there's a way around all this Yeah, I mean they could do they could change, you know, obviously that I'm going to try to walk like sheep, but they could perhaps Maybe use ski equipment because then their impact would be different However, it also be very unwieldy for for attacking troops on ground on land to come in with skis on but yeah, if they try to do those things as soon as The Armenian forces learn that they're trying to do those things Then that can be accommodated in the software Okay, very good. You got you got two of my flaws. Okay, so I know somebody's listening Okay, well we talked about this If you can sense out the two or three hundred meters On the ground you can certainly sense that far or deeper in terms of finding a tunnel The u.s. Government is now looking for sensors that can sense out to Something like 30 meters Deep at least and more because they know that these tunnels are being dug by these drug cartels And since the drug cartels have billions of dollars available They can dig as deep as they want if they knew that they could avoid detection All right, but here's some other security applications It doesn't have to be at the border. It doesn't have to be at the u.s. Mexico border It doesn't have to be the border with us or bedroom It could be any of these places It could be a nuclear power plant that has water surrounding it Because our sensor actually looks better in water because water is homogeneous Far more so than And of course it could be a border It could be one of our ancient monasteries here in hayasan that maybe you want to protect it It could be a air strip on the far bottom left Or it could be a nuclear power plant that's completely surrounded by land Rather than water Or it can be a government building We know it Okay, now the side by side fields and then I've already said this earlier We've we've taken of an american-may sensor that has a 30 meter A sensing distance and we've gone out outside of yedavon out in the fields. In fact, I was out there Sunday We're out in the field and we're we are certain that the Armenian design and the Armenian Invented Sensor is at least 10 times better than the best sensors in the world including the american-may sensor So we've been out several different places. We've been for the Armenian military range last spring And we were in uh, Singapore in 2010 doing humidity, you know working in an area of high humidity To see if there's any differences So this this system is far superior to what's currently being sold on the market So here's our business plan and marketing strategy now before I go further I have to take out the real numbers because this is being A videotape for youtube and we don't want our competitors to see it So the numbers that you see in terms of the dollars are all fake Uh, I've changed the dates. So those are fake, but I want you to be able to see How you would create the slides and how you would make the presentation to investors. So Even though the numbers are fake This the formatting and the presentation approach is what you should learn from Okay, so I told you earlier the gi is the us arm the american arm of the technology company psi That's located here in vietnam So what we're doing is we're looking at this point. We're just looking for uh enough investment money And so we can continue from taking the current sensor technology, which is a field tested prototype It's a field tested prototype at this point and we want to take that to To a redesign we want to redesign the sensor so that it is production ready And of course a prototype is not production ready But it is field tested and we feel tested it actually feel less than more than the three times that I've shown you in the slide So we're confident that it works and now we're confident that if we go through a redesign phase where we design it So that it's easy to build and it's rugged So come with stand being out in the out in the environment So we will be doing a lot of environmental testing That's the that's where we're looking for investment money to take it from field tested prototype to production ready hardware Right now. We're also looking for business. We're not just looking for investors. We're also looking for actual business either with Different governments, whether it's Armenian government, Armenian military, US government for the border fence with Mexico And there's other countries that have shown interest. We've gotten phone calls from Norway Would there sounded like there was interest in Finland? We know there's interest in the Dominican Republic because it turns out Haitians are leaving Haiti and coming across the border from Haiti into the Dominican Republic So the government of Dominican Is also interested in the technology And of course, you all know that there's a lot of problems going on in the Middle East. So jordan has border problems Syria iraq on and on there's a lot of issues in the Middle East So there's a lot of areas where there could be companies interested in this technology And as we go around and we talk to people we found out that there's other Markets for it that we never even imagine and one of them, believe it or not is protecting cell phone towers When you have a cell phone tower in a very remote part of a candy country, not just Armenia, but any country People go out there and steal electronics from the cell phone tower So you can't have somebody protecting every cell phone tower in all the remote locations that a cell phone company would put a cell phone tower So the cell phone companies have expressed interest because of the issues of damage and theft to remote cell phone towers We're also looking into providing sensors technology for neighborhoods for Just for residential neighborhoods If you have an area where you want to protect two or three hundred homes You can do that by setting up a handful of these sensors And being able to sense intruders to an area that you want to protect So these are these are Potential businesses that we could get into We we're trying to make arrangements now to win business from these different types of either government organizations or private companies We're looking to win a couple of Contracts small contracts this year. So that'll help with our Funding of the company and for us to be able to grow And then we're we're looking forward to 2014 and 2015 where the contracts will start getting bigger in size And also we hope eventually to get a production contract So that's one of the reasons why we're looking for investment funding now to take our prototype To production ready because we are looking for production contracts in 2014 and 2015 and we want to be ready for that now The united states homeland security is is going to be accepting proposals from united states amer or american companies From american companies to providing proposal On how they intend on building the border fence. So there's probably going to be at least 10 major proposals From different american companies Proposing technologies to the homeland security on as to how to build this border fence And it is our intent to be camp to become a supplier of the sensor technology To whatever company wins the contract from the government Now obviously It's going to be a big american company that wins this contract because this is a big job building 3200 kilometers We want to be the small sensor company providing the sensors that are going to be used as part of that border And this is big business We're anticipating which whatever big company wins the border security Contract it's probably going to be on the order of three to five billion dollars The size of the contract for the sensors to whoever wins the sensor contract Will probably be on the order of a hundred million dollars so if GII and psi were to be chosen as the sensor company for the border fence Nice potential for a hundred million dollars in business And that would be scattered out from 2016. I think it is the 2024. It'll be over a eight year period Now I As you can see I took the numbers out because since this is going on youtube. We don't want our competitors to see it but What I want to you what I want you to learn from this is how you're going to show your investors That your anticipated growth of the company. So here gii in 2013 is just a tiny little company So an investor if an investor invested one percent I wanted to purchase one percent of the company Then that would be x number of dollars As the company grows in size over the next five or ten years Then that one percent grows in size So if the company was say a million dollars now and it grew to a hundred million and if you own one percent now And if the company grew to a hundred million and if you owned one percent of a hundred million you would have a million dollars So this is this is the kind of Introductory slide that you should make when you're doing a presentation for an investor But I want to emphasize these are not the actual figures and of course I've taken out the numbers Because of the issue of competition and proprietary information Now return on investment and valuation of the company I I was the one involved in trying to To determine the value of the company now and that's not an easy thing to do So when you look at how An accountant or a financial person would try to determine the value of a company They look at your profits. They look at your sales. They have ratios And they can calculate it But what happens when your company doesn't have sales, you know when your company is new It's just starting you don't have sales. You don't have profits Then how do you determine the value of a company? So there's two ways and one of them you're going to laugh One of them is it's it's worth whatever you can get for it It's just like when you go to bear massage on a saturday or sunday and people have all their stuff You know scattered out on the tables and everything's for sale And what's and and you know a lot of this stuff is used or old So what is the value of that stuff that they're selling and it's basically whatever they can get for it So there's a negotiation If you if you have a company and you don't have any sales you don't have any profits You don't have anything you're just a new company. You've got a product that you know is good And you're trying to sell it what you do is you try to convince the investor That this company has value And you establish some mutually agreeable dollar amount And then from there you can say okay if the company is worth $100 million and you want to buy 50 percent of it then You're going to have to put in 50 million It's something like that. That's one way of doing it But there's another way and it's a little better than just negotiating some You know unknown amount What you do is you look at what is the business outlook for the company How many contracts could be one in the near future? What are the size of those contracts and what is the chance of our company winning those contracts? So if you look through all those pieces of information and you create a chart And you can figure out where you think the company might be in terms of its value So that's what we tried to do here and we talked about that a little bit in this slide and then in the next slide And of course, I have to take out all the information about what who the customers are and their names I've changed the the numbers here so that it's not our numbers But what I wanted to show you is the first thing is Is your organization? Who who might be your customer? So that would be customer company one through 13 And what is the application border security? Homeland security? We had a medical equipment one here Where we talked to a medical equipment company and this is an interesting application for medical technology You want to be able to put a sensor on the back of your shoulder and sense When you're breathing The sensor can actually hear the difference between somebody who's breathing healthy and someone who is not breathing healthy In other words, what is the conversion of of the air you're breathing going into the bloodstream as oxygen? So the sound of that is different for a healthy person versus a sick person So we actually have interests from a medical company So so you would put the application in your chart for potential future business And what kind of what type of contract is it? Is it a development contract or is it a production contract? What is the time frame second quarter 2013 and we went as far out as first quarter 2016 What is the estimated value of the contract in thousands of dollars? So the first one here would be 500 thousand dollars And of course you can see the various sizes Of the contract some are small some are medium some are big And then the probability factor for winning it, you know, what chance do we have of that we think That we can win that contract some of them are low, you know, one of them here is 10 percent One of them here we think it's 95 percent because we've been told that we're going to win that contract So once you put the percentages in you multiply the percentage times the estimated value and then you come up with a probabilistic dollar value All right, so we came up with uh 6,340,000 as the probabilistic value If we can convince the investors as you us the investors today if we can convince you that this is A real number over the next two or three years Then from there we can go on to establishing What you as an investor and what we as gii and psi consider to be the value of the company So it's somewhere in this neighborhood, you know, it's not a hundred million. It's not five billion It's not a hundred thousand it's somewhere in the neighborhood of a few million dollars And then from there it's a negotiation with your investors to determine what they think and what you think the value is So you come to some kind of an agreement in terms of Having an investor actually investing in the company any questions here All right, so here's here's some of the Areas in which I've already talked about potential orders Uh because this sensor is is you know, it's not just one little thing that you're going to buy It's not like you go out to buy a camera you take it home. It's something that's going to be put into the ground It's going to have uh Transmitters and receivers and things are going to be scattered over 1500 500 kilometers So there's a lot of systems engineering that goes through it into this whole process once you've developed the The receivers and transmitters and the actual sensor Then you got to go out in the field and you got to Bury everything in the ground and you got to make sure everything is working properly It's kind of like when you go to a concert and you see the performers on stage And there's all the music the speakers and all the music system and the lighting system Somebody's got to set up all that equipment make sure it works before the performance starts So that's kind of systems engineering and systems Implementation and of course there will also be a lot of software involved with the hardware So that's called a development contract where you develop all that ahead of time So that when you're in production, you just go out and do it So the development contracts can be very lucrative a lot of money involved a lot of time involved In a lot of development of the hardware prior to actually going into production Okay, our means technology is the source for Republic of Armenia's prosperity Now it is conceivable that if if we're successful in winning these contracts that we envision and moving out from security systems into other industries such as medical equipment industry Or the auto industry or the aircraft industry this sensor can be used in a variety of industries And it's possible that this could become a Hundreds of millions of dollars per year company And it'll be based here in Yerevan And that will change Armenia If this company could grow to where it was bringing in hundreds of millions of dollars in business to Armenia That would change the face of Armenia That would have a huge impact on the economy So here we're talking about just how big Is the market out there how big could this company grow? How big is the market out there? So we just took the just homeland security forget about anything else in America Forget about the rest of the world just take homeland security us more land security How much did they spend In the in the last five years Or border security six six percent went to border security If one tenth of that six percent went to sensors or one hundredth of it went to sensors You're still talking about hundreds of millions of dollars Just for us homeland security. So the the The market for this technology in security systems the market for it for aircraft And automobile industry medical equipment industry. It's it could be huge. All right, so Once again, why are we here? We're looking for investment dollars. We want to complete the qualification of the security system What that means is take it from being a prototype field tested hardware redesign it do the environmental tests prove that it will work out in the field That's what we're looking for the development dollars to do that We want to be able at that point to negotiate with our customers for actual Field field demonstrations and actual production with the customer. So I've already talked about these private investment we Meet the objectives of the burning platform remember the burning two burning platforms one was to protect the Armenian border with Azerbaijan and the second was to Protect the u.s. Border with Mexico. Those are the two key things right now. That's the very beginning And then of course we want to realize the mentioned benefits to Armenia in terms of improving the Economic condition here in Armenia by having a big successful company in the future Here's a timeline When you're talking to your investors and you want to you want to at least show them what what your plans are at least for the first year So here's a timeline Not real detail the investors don't want to know the real all the details But they want to get a feeling for what's actually happening in your company and where you want to be in the next 12 months So we laid out a 12 month schedule and we talked about the things that we wanted to do And of course I've discussed these all Now having production here in Armenia because you are as I said earlier You're all investors with 10 million dollars sitting in the bank and you each want to Listen to investors and decide what you want to invest in So because you're Armenian We wanted to slant this for the Armenian market or the Armenian investors And tell you why this is a benefit to Invest in here Obviously, you're all wealthy. You all have 10 million dollars in the bank. You all want to be investors of companies You're looking to make investments anybody who's wealthy The best way to make more money is to invest in things that are going to be successful And and those things generate income And as income is generated within the country More and more people start becoming middle class and rising up from being poor Going rising into the middle class And the more you have a stronger middle class you have the better it is overall for everyone in the country So what we're saying is that by increasing employment opportunities in Armenia We can help everybody in Armenia because the whole economic condition will improve We also want to Maintain the intellectual capacity here in the country, you know, many Armenians have left because of the poor economic situation in the country But if you have companies that are successful and making sales selling products internationally bringing money into the country then the The desire to leave the country is reduced because people here have more Chances to get better jobs and there's a better economic condition We want to transition army into a country that exports high technology products worldwide Now i've talked a lot about that to various high astanzis here And usually people laugh, you know, they don't they don't see that happening and my response is Look what happened to taiwan look what happened to japan Look what happened to germany, you know after world war two germany and japan were totally destroyed And yet look what happened in 30 years Those countries that were totally destroyed Came back and they have big populations, you know japan has 127 million people. Germany has 80 million people Even with those big populations, they were able to change the country And come from a completely destroyed economy You know the japanese and the germans in 1946 were starving Because everything had been destroyed the whole road network bridges There's the whole system their whole economy that had been destroyed by fawns And yet they came back They built their industries back up And now they're highly very wealthy Highly respected countries in terms of manufacturing developing products high technology All right, and we have smaller countries at a time South korea was destroyed in their war between south and north korea and they've come back and become a wealthy country All right, and then their their population is uh less. It's in the 30 35 million range All right, let's talk about another country that's even smaller. Singapore. Singapore is a very wealthy country And they only have eight million people So i'm thinking if those countries with many many times more people in armenia Can come back and with high technology become wealthy strong Highly respected countries. Why can't armenia? There's less than three million people here. Why can't we do it? It seems to me it ought to be pretty easy now if you're talking about Developing a technology that requires huge amounts of resources that have to be brought in from different countries Yeah, that's a problem because with the borders are closed But these sensors are small the whole thing is the size of my fist So that's something where it's not a matter of bringing in huge amounts of resources or or Unfinished products to bring in to build something it's something that everything is here now or it's something that can be easily imported so as a result We can do this here And so we're looking for investors to help us move forward and transition our armenia's economy Into a an exporting of high technology products. Well, I think That's it This was san belgium organ. I took this photo a year and a half ago This was the third generation of the hardware. It's smaller now And of course it won't be in a stainless steel container Um, but that's in its in its finished form 18 months ago. This is what it looked like and we made a point of putting made in armenia on that outside of the hardware So that's it. Thank you question any investors Is it possible to invest not using money but instead of doing some work Maybe to write a software Uh Yeah, now remember I was talking to you about being an investment an investor In a theoretical sense that you were that you're sitting here as multi-millionaires And I think you're asking me in a real sense All right Yeah, as the company grows we will be looking for people In terms of software and hardware That'll happen. It'll also be in terms of business people So and and coming here to a ua will probably be one of the To me The the best presentation I could give you is to come here and instead of giving you a presentation Having to be a job fair And say hey, we've got 50 positions and we're looking for the right people That to me would be the ultimate in coming here and giving a presentation We're not there yet, but we hope to be So we're moving forward So what I so the answer is yes, but not now We're not ready yet All right any any uh what I want to do is get your feedback in terms of this as a presentation For an investor remember you're an investor What did you think of the presentation? Is this something that would have made you interested as an investor to want to invest Ask some questions About these devices are they constructed in Armenia or this work is also No, the work everything right now is done in Armenia Now we obviously we don't Armenia does not make electronic components like a capacitor or an inductor or Resistors so those are those are bought probably from china, but all the assembly will be done here and it's done here now Now a lot of key comp on there are some proprietary issues With this hardware and all that's done here Including making the hardware One other question you said that it is good for sensing the people for example, but I think that Only advantage of this system is only sensing the Tunnels For other issues we have Radio waves System Sensing people by radio waves or we can do it by video cameras. For example, why to make this kind of What is the advantage of using this but not using Yeah, that's a good point do the same No, for example, did everybody hear that? What is the advantage of using the this sensor system as opposed to using a thermal imaging camera A video camera or radio waves One advantage of using camera is if you are not there you can then see who was there for example for My room I can Take the e and use it for example to find the person who was right Okay, uh, all right, so let's go through it step by step if it's a video camera It's blind at night And it's blind and it's foggy So video cameras are out Are they gonna have it at the border? Yes, they'll have them at the border of course He said video camera Step by step all the trust also a limit of distance Most Okay, I'm gonna let me address those one by one You made a good point a video camera cannot see at night Can't see in fog and it's line of sight. So if you've got a forest can't see into the forest Will will a border security system have video cameras? Absolutely because when it is daylight when there is no fog and if there is no forest Having a video camera is good But it doesn't do everything so you can't just have a video camera All right next one would be thermal imaging camera thermal imaging camera I've worked on that in a military equipment. So I'm very intimately familiar with video camera with thermal imaging cameras Thermal imaging camera is very good for night vision, but it gives you a basically It's a it's a gray image You can't see any color It's just gray And it's line of sight If the forest is deep enough, it can't see all the way through the forest It can see it'll see partially but it can't see all the way through the forest But it's line of sight basically So if you're behind a rock or if you're behind a hill useless All right, so we got oh the radio waves the same thing if it's not line of sight. It's useless But but this sensor system Senses everything it could be if there could be a lake there and there could be a forest There could be a mountain it doesn't matter it senses through everything but the fog matters All right now Let's address the distance right now. We're looking at 300 meters out But remember that's for footsteps If if Osir Bay John the Zari army decides they're gonna attack the first thing they're gonna send is not the soldiers on foot The first thing they're gonna send in an attack is tanks And the tanks this thing will sense out to five of 10 kilometers Five to 10 kilometers So as a result of that seeing seeing a tank 10 kilometers away is a huge advantage It could be behind a mountain and you're gonna know it's coming You can't do that with other systems you want those other systems because they each have values But but all those other systems can't do with this one If we're just talking about security systems on board Now you're talking about in your home or your neighborhood We actually have a real estate developer who is interested in protecting the perimeter Is the development? So if somebody had a 500 hectare Development of maybe a golf course and homes and different things like that You put the security system around the perimeter of that To keep intruders out You wouldn't necessarily have it for an individual home Although we've discussed that and there is interest in having the security system for individual homes I think that'll be a little bit into the future But it's possible to do that Okay any other investors Maybe no 10 million dollars Well, what kind of threat do you see from china? Let's say they they they have a copy of your Sensor they start producing it and they do not honor the intellectual property rights, etc Okay intellectual property rights we've thought about that a lot and here's the Here's the answer to that Number one is if you patent it And of course I gave the presentation on paths and intellectual property a few months ago If you patent it basically when you patent something you have to write all the details of what your invention is So you're telling the whole world This is how my invention works And then you get a patent Okay. Does that protect you? All it does is it gives you the right for whatever country you have to patent So if we had a patent in the united states for this technology Then it gives us the right to sue somebody take them to court And try to win in court, which in itself is a big one legal battle To win and prove to the government of the united states that they infringed on our patent Okay, so then you win. All right, then you get some money out You could lose you could lose your battle in court in which case everybody knows and can copy your technology Um, and it's only good for the country that you got the patent. So if you got the patent in the united states, but china is Stealing and copying it It doesn't the patent in the united states doesn't help for china It's all the trends. So you just try to keep it a secret And you go, okay, but somebody can come along and open up your hardware and reverse engineer, right? You're familiar with reverse engineering That's possible except that there's about three good reasons why we think that won't happen with our hardware One is the technology Is extremely difficult to understand the heart of the sensor is not easy I don't even know all of it I'm a degree physicist of engineering Um, and and we know that there are there's four different technologies in there that have pushed the state of the heart So now you got to have experts in four different technical fields that in itself makes it difficult to reverse engineer But okay, let's say you did that You got four experts in four different fields assuming you knew what the which four fields they were So you got four experts in the right four fields and they're going to reverse engineer Well, then what you do is you make it so that when they try to open it up It self-destructs And this is pretty common for us military It's the equipment that is really top secret if the United States military is worried about The enemy getting a hold of it They make the part that is they consider top secret. They make it so that if somebody opens it up it's self-destruct So even if you try to do that You just end up destroying it. You can't figure out what it is That they can give some cash money to the developers You're right. I mean it's just a matter of How much effort somebody wants to put in It's like a bank vault, you know a bank has a lot of money in their vault And they go, uh, your money is safe You put your money in the bank. Why do you put it there because you think it's safe Somebody can come along and say look if I bring 100 kilos of high explosive I'm going to blow up that bank vault It's just a matter of how much effort somebody wants to put in it Every good high technology company anywhere in the world Will put enough money into research and development where they're always coming out with a better product So if you're moving far fast enough into the future with new products The people that are trying to reverse engineer are always two three five years behind You're never going to be able to reverse engineer As soon as you figure it out the new technology the latest technology So you got to stay ahead of them So we intend to do that As part of our protection of our hardware along with self-destruction of the hardware and the benefits somebody drives open it And the fact that it's already a highly complex Combination of four different technologies All right, but you haven't told me whether you like is this presentation something you each of you has 10 million dollars in the bank And you want to be an investor Is this something you want to invest in? Okay, why why maybe why not? Yes. Why why not? No, what? What's preventing you from tell me what's preventing you from wanting to invest? I will not since We'll measure so 10 times better was not safe That's good, okay We we have all that information. I didn't want to bring it today But that's good that you brought that up this point is that if you're if you're gonna compare to your competitors We want to have a lot of information as to what makes yours better than theirs More proof more information showing that yours is 10 times better good And and you're right Okay the thing that it will be good for Armenia as well is it's Making a motivation to invest just for Armenia, but Well, I didn't want it to be We don't intend for it to be you're just investing in Armenia just because it's an Armenian technology What i'm saying is that this technology is world-class technology You're investing in it because We think it's a good world-class technology But the fact that it'll be built here in Armenia and the company will be here in Armenia providing jobs here in Armenia Is we were hoping to be an additional motivating factor for Armenian investors That's that's my point of view. Okay. No, that's good in the meantime. It's a demand For hours or for sensors in general or for hours for yours Yeah, you're right right now. We don't have sales. Now part of it is because we're a new company And you know, you got to get the word out worldwide and that in itself takes time and money The second issue that And this is not just with us. This is with any new technology If your technology is so much better than the current technology Nobody believes it So we're finding out that when we tell Different companies and different governments that our technology is 10 times better than what's currently available The first response is we don't believe you Then we give them test data And they don't believe the test data Then we tell them to come out in the field with us when we're out in the field testing And and we haven't gotten anybody that's willing to do that yet So there's a lot of resistance to new technology. This is not just for this technology It's always like this it's been like this And it'll always be like this in the future. It's not new It's something you just have to plan on over coming Any other comments issues investors Okay, well, there's no more than that's it. Thank you very much. Thank you