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LEDeepBlue, LLC
BUSINESS CASE ELEMENT
Name of Company: LEDeep, LLC. (“LEDeep”)
Technology on which company is based: Efficient Light Emitting Diode Arrays
Funding Stage: Seed
BUSINESS AND BUSINESS MODEL
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Inception: May 10, 2004
Value Proposition: Lowest cost of ownership for general purpose solid-state lighting.
Current Structure: Sole proprietor, Limited Liability Company of New York State.
General Description: Initial revenue is from supplying engineering design and IP analysis to
original equipment manufacturers. Long term revenue is generated from licensed intellectual property.
PRODUCT
1. Product: Power Factor Correcting Solid State Lighting (“PFC-SSL”).
2. Function and Benefit: Electric utility meters charge more more for power supplied non-unity power
factor loads. A unity power factor represents a resistive load (e.g., incandescent lamp) which is the
easiest load for the utility company to supply. Non-unity consumer loads (e.g., motors, incandescent
lamp dimmers, electronic equipment, LED lighting) require costly power factor correction equipment in
the utility grid. Government utility regulations allow the utility to recoup the additional costs for the
utility to supply non-unity power factor consumer loads. Therefore, it is in interest of the consumer to
present a unity power factor load to the utility meter. A significant problem associated with solid state
lighting is the non-resistive load of the semiconductor device. Solid-state lighting typically incorporates
power conversion devices which in some instances correct for power factor but at a cost of efficiency
loss of (10% to 30%) in the typical AC to DC conversion process. LEDeep. has invented a topology for
LED arrays that not only eliminate the loss from the AC to DC conversion, but also allows the LED
array to correct for other power factor problems caused by other equipment in the premises, thus
lowering the cost of not only the lighting, but also the cost of power to the other non-unity loads in the
premises.
3. Development Stage: The PFC-SSL device has been prototyped using discrete electronic circuits
using visible LED arrays. The initial commercial application for the technology is being licensed to
Opthera, Inc. in the fields of UV-LED tanning and UV-LED phototherapy systems.
COMPETITIVE POSITION
1. Competitors: Competitive analysis is an on-going process at LEDeep. No direct competitors at this
time. The closest indirect competitor is Seoul Semiconductor and their Acriche(TM) LED devices
which do not require a AC to DC power converter. Another indirect competitor is Lync Labs which has
a novel approach to converting AC to DC more efficiently but at a higher cost. Neither indirect
competitor corrects for power factor problems in the premises.
2. Edge over competition: The Acriche(TM) LED device does not incorporate the premises power
factor correcting feature.
3. Sustainability: The short term market for engineering services is peaking and will diminish as SSL
becomes mainstream. Long term revenue will be based on royalties from patents and licensing.
LEDeep, LLC. will re-invest some profits toward advanced designs, possibly toward an integrated
circuit designs incorporating PFC-SSL topology. A pipeline of IP will be required to grow and maintain
profitability past the term of the royalty stream. The additional targeted strategies cannot be fully
disclosed without a confidentiality agreement.
4. IP Protection: Domestic and international patents pending.
MARKETS
1. Target Market: LEDeep is targeting original equipment makers incorporating large arrays of LEDs.
2. Barriers to Entry: Granting of patents in the national stage. Suitable investment to target designs
into additional solid state lighting applications.
CUSTOMERS
Opthera, Inc. is the first customer. LEDeep, LLC will consider direct to consumer market for general
purpose SSL products after attaining suitable investment or retained profits.
Name of Company:
Name and Title of Presenter:
Address:
City, State Zip:
Phone:
Fax:
Email:
LEDeepBlue, LLC
Peter Fiset
5 Upper Loudon Rd.
Loudonville, NY 12211
(518) 281 – 7383
(518) 436 - 0485
[email protected]