*CONFIDENTIAL*

Business Plan

EarthCap

April 14th, 2015

Contact: Greg O’Keefe (CEO)

Email: g.oke68@gmail.com

Phone: 226-373-9464

Fax: 226-661-1090

Website: earthcap.ca

*CONFIDENTIAL*

Table of Contents

Executive Summary…………………………………………………………………………………...1

Company Background and Opportunity Summary………………………………………………..2

Marketing Plan…………………………………………………………………………………………6

Product and Services…………………………………………………………………………………9

Operational Plan……………………………………………………………………………………..10

Team…………………………………………………………………………………………………..12

Financial Plan………………………………………………………………………………………...14

Sources of Funding………………………………………………………………………………….16

Appendix….…………………………………………………………………………………………..17

References……………………………………………………………………………………………20

Executive Summary

EarthCap is a company that utilizes micro and nanoencapsulation technology to create products

beneficial to the health and safety of mankind and the environment. EarthCap has designed a

novel explosive bioremediation method, as well as two different controlled release drug systems

utilizing nanotechnology.

The first product in mind for EarthCap is EcoX technology, upon which this business plan is

based around. This particular product is able to efficiently degrade almost all explosive

compounds. EcoX has been developed to degrade the three most common explosive

contaminants in TNT, RDX and HMX. To this day, there is no established, efficient method for

remediating explosive contaminants from soil and groundwater. The two most common

conventional methods are incineration and composting. Not only are these two methods

expensive and are required to be performed off site, they cannot be applied to remediation of

groundwater. Explosives such as TNT, RDX and HMX are toxic to mammals and have great

potential to harm ecosystems.

There are over 50 million acres of explosive contaminated land in the United States alone, with

thousands of contaminated sites. There are much more to be found in Canada, Europe and

Asia. What EcoX provides is an efficient, on site explosive remediation method that can be

applied to remediation of both soil and groundwater. Based on the convenience and unmatched

efficiency of this method of explosive remediation, there is great opportunity for large

multimillion dollar contracts from the government or explosive, mining and/or construction

companies. With competitive pricing compared to conventional methods, EarthCap has the

potential to amass millions of dollars in sales for a single contaminated site.

EarthCap believes that EcoX will dominate the market in regards to explosive remediation

strategies, and due to its effectiveness and environmental implications will attract immediate

attention from investors and the addressable market. EcoX could result in several multimillion

dollar contracts from Canadian or American Government and/or explosive manufacturing,

construction and mining companies.

Company Background and Opportunity Summary

Mission Statement

EarthCap utilizes nano and microencapsulation technologies to provide innovative and green

solutions for a healthier world. In response to the growing concern of explosive contamination in

the environment, EarthCap looks to provide a cost-efficient and environmentally friendly method

to effectively remove explosive compounds from soil and groundwater in situ. It does not end

here for EarthCap, a variety of encapsulated pharmaceutical products have already been

designed to preserve and enhance human health.

Value Proposition

Initially EarthCap will provide an all-in-one solution for remediating explosive contaminated land

and groundwater that is both cost-effective and environmentally friendly. In the future, EarthCap

looks to utilize micro and nanoencapsulation technology to produce products that preserve the

health and safety of mankind and the environment.

The Problem

There are roughly 50 million acres of explosive contaminated land in North America alone. Even

more can be found in Europe and Asia. Such land cannot be used for farming or human

settlement until fully remediated. Explosive compounds are able to enter soil and groundwater in

ammunition production facilities, packing and warehouse facilities, waste disposal and

destruction facilities, burn pits and incinerators, and weapons firing ranges. Thousands of

military sites in the United States are currently being contaminated by explosive compounds.

Conventional methods such as incineration and composting are ineffective, expensive and

cannot be performed on site. Explosives such as TNT, RDX and HMX (2,4,6-Trinitrotoluene,

1,3,5-Trinitroperhydro-1,3,5-triazine, and Octahydro-1,3,5,7-tetranitro-1,3,5,7-tetrazocine) do not

degrade readily in the environment and are toxic to mammals (O’Keefe, Phytoremediation of

Explosives using Transgenic Plants).

The Solution

One of the most promising methods for remediating explosive compounds is phytoremediation

using transgenic plants. This particular method has been studied for over 15 years, and is being

weighed down heavily by strict regulations. Phytoremediation using transgenic plants has still

not been tested in the field to this day. EarthCap looks to provide an effective solution to this

problem by using a mixture of microencapsulated and free microorganisms (S. cerivisiae, R.,

rhodochrous, and P. chrysosporium) as a bioremediation strategy. Initial development of this

idea was spawned from research on phytormediation of explosives using transgenic plants.

Genes found in these organisms are targeted for use in the development of explosive degrading

transgenic plants. Microencapsulated cells have a reduced adaption period, but after this

adaption period free cells have accelerated degradation (1). This is why EcoX utilizes a mixture

of free and encapsulated cells in an alginate matrix. These microorganisms have been chosen

due to their exceptional capability to degrade explosive compounds. EcoX will degrade almost

every explosive compound including the most common contaminants in TNT, RDX and HMX.

Business Model

INFRASTRUCTURE CUSTOMER

OFFER

FINANCE

Core Capabilities-EcoX: All-in-one explosive degrading product (TNT, RDX, HMX specifically)- Consultation with customers to meet their needs- Instructions and assistance for application of EcoX in soil and groundwater

Partnership- Microencapsulation of organisms provided by Encapsys

Value Configuration- Sale of EcoX to customers as well as consulation to meet any unique requirements-Priced per ton of soil needed to be remediated-Remediation of groundwater requires consultation

CustomerRelationship- Direct supply of EcoX- Endorsement of EcoX by large explosive manufacturing organizations-Consulation for remediation of groundwater and any unique requirements

Distribution Channel- Very specific market-Sale of EcoX to military, private weapons manufacturers, as well as construction and mining companies-Approaching organizations such as CEAEC and Institute of Makers of Explosives for endorsement of EcoX-Government contracts

Target Customers- Canadian and American military-Weapon's manufacturers such as Dyno Nobel, General Dynamics, Orica, etc.-Endorsement of EcoX by CEAEC and Institute of Makers of Explosives-Construction/mining companies-US and Canadian Government

Value Proposition- EarthCap and EcoX provide an all-in-one solution for remediating explosive contaminated land and groundwater that is both cost-effective and environmentally friendly.

Cost Structure- Energy and gas required to culture mass amount of organisms-Downstream processing and purification of organisms-Excessive waste treatment-Determination of purity and quality assurance/quality control

Revenue Stream- Sales of EcoX (priced per ton of soil remediated)-Quotes for total remediation of soil and groundwater-Consultation for groundwater remediation and unique requirements

Figure 1. EarthCap Business Model regarding EcoX technology.

Technology

With EcoX, EarthCap utilizes three different explosive degrading microorganisms; S. cerevisiae

(targeted for TNT degradation), R. Rhodochrous (targeted for RDX degradation), and P.

Chrysosporium (targeted for HMX degradation). All three are extremely safe organisms

(Biosafety Level 1) and degrade several different explosive compounds each. Each unit of EcoX

contains portions of microencapsulated and free microorganisms. The reason for this is that

microencapsulated cells have a reduced adaption period, but after this adaption period free cells

have accelerated degradation.

The microencapsulated cells will be immobilized using an alginate matrix cross-linked linked

with divalent cation bridges (calcium). The calcium will slowly solubilize in the alginate matrix

and from cross links which encapsulate the bacteria (2). The adaption is expected to reduce the

ionic stress in bacteria, which will increase the encapsulation efficiencies as well as creating

higher cell viability with long term storage (2). This ultimately lowers the cost for bioremediation.

By optimizing the environmental conditions during microencapsulation, explosive degradation

and cell viability will be enhanced. This will result in fewer microcapsules needed per volume of

treated material and significantly lower the overall treatment cost.

The main advantage of this product is that it degrades explosives in situ, saving costs on

excavation, transportation and storage of contaminated soil. Not only that, EcoX can also be

used simultaneously for soil and groundwater remediation unlike conventional methods of

incineration and composting. As soon as proof of concept research has been completed a

patent will be filed for EcoX technology.

Marketing Plan

Capabilities Incineration Composting EcoXOn-site capability No No YesFull removal and degradation No No YesAble to remediate groundwater No No YesToxic Byproducts Yes Unknown NoRequires fossil fuels Yes Yes NoAdditional treatment needed Yes Yes NoCost $800 per ton soil $300 per ton soil $500 per ton soil

Methods of Explosive Remediation

Figure 2. This table depicts the competitive analysis of EcoX compared to conventional methods of explosive remediation.

Explosive levels in the environment have reached a point where there is potential to cause

significant harm to humans, wildlife, and ecosystems. This contamination is largely due to poor

management, improper disposal and lack of suitable remediation methods. Processes such as

incineration, composting and soil slurry bioremediation are inadequate, costly, cannot be

completed on site, do not fully remove all toxic components and are health hazards. For

example, explosives such as TNT and RDX can cause excessive liver damage, or vomiting and

convulsions respectively. (O’Keefe, Phytoremediation of Explosives using Transgenic Plants).

Incineration and composting are two of the most commonly used methods for disposing of

explosive contaminated soil. With incineration, soil is removed from the site to be incinerated.

Unfortunately, complete combustion rarely occurs and the resulting explosive residues require

further treatment or disposal). When complete combustion does occur, harmful compounds are

still created in the process (nitrous oxides, carbon monoxide, hydrogen chloride, and possibly

dioxins). Furthermore, this method is very expensive as each ton of soil costs roughly $800 to

be remediated. Composting is another process used to remediate explosives. Composting

utilizes microorganisms to degrade explosive contaminants. RDX and TNT levels decrease

significantly using composting, particularly in thermophilic conditions (55°C). Many degradation

products bind to the soil and become unextractable, resulting in incomplete remediation. The

bacteria responsible for degrading and the metabolites are hard to identify, as indigenous

bacteria will vary from site to site, with different explosive degradation pathways (O’Keefe,

Phytoremediation of Explosives using Transgenic Plants).

It is obvious that there is a lack of a fully effective and on site remediation strategy for degrading

explosive compounds, which is exactly what EarthCap is hoping to achieve with EcoX

technology. Because EcoX is much more efficient than the conventional methods used today, it

should attract a lot of attention for any organization that needs an explosive remediation

strategy for soil and groundwater.

Although explosive remediation is a niche market, the available market is still quite large for

EcoX technology. There are thousands of explosive contaminated sites in the United States

alone, with hundreds more in Canada and much more in Europe and Asia. Due to the fact there

are 50 million acres of explosive contaminated land in the United States only, and there is no

current established in situ method of remediation, the market potential for EarthCap and EcoX is

huge.

After proof of concept research and waiting for a pending patent application, EarthCap will be

ready to approach potential customers for contracts and orders of EcoX. The addressable

market will be explosive manufacturing companies and the American and Canadian

government. American companies include Dyno Nobel, GD-OTS, General Dynamics, Grypian

Engineering, Kitikmeot Blasting Services, MREL, Orica, Proparms and more. American

companies include Dyno Nobel, Orica USA, TerraTek, Accurate Engine, General Dynamics,

GEODynamics and more. Abandoned explosive manufacturing sites, take Joliet Army

Ammunition Plant (manufactured explosives for World War II) for example, may need to be fully

remediated in order to repurpose the land for new businesses or other commercial purposes. A

Canadian or American government contract for remediation of a site as large as Joliet (which

has over 130,000 square yards of explosive contaminated land) could yield almost a $100

million dollars in sales of EcoX (more details on this estimate seen in product specifications)

(3).Other targets include construction and mining companies who commonly use TNT and other

explosives in their practices.

Government contracts would have the potential to allow EarthCap to greatly increase the scale

at which we manufacture EcoX, based on the previous estimate for the Joliet Army Ammunition

Plant. If no such arrangement can be reached, then EarthCap should still remain viable from

selling units alone along with consultation for groundwater remediation and customer

specifications. Because of the amount of land needed to be remediated worldwide, and taking

into consideration EcoX would be the most efficient method, the limiting factor of sales is the

output of EcoX product produced by EarthCap. The addressable market will be contacted

personally by EarthCap itself as well as its Board of Investors. More details can be found in the

financial and budget sections. In addition, a government contract for remediation of

contaminated land of Garrison Petawawa, the largest military base in Canada located in Ottawa,

is a main goal for EarthCap.

By the time proof of concept research is finished EarthCap will have established a website

(earthcap.com) advertising sale and consultation regarding EcoX and EarthCap. EcoX will be

for $500 per unit, which contain 10kg of cells. Consultation for groundwater remediation and

customer specifications will be negotiated during the consultation process.

Product and Services

Product Specifications

EcoX will be sold in plastic pails containing 10kg (22 lbs.) of freeze dried cells. Taking into

consideration that RDX is the most recalcitrant explosive, it is the limiting factor of EcoX’s

explosive degradation rate. Studies found that R. Rhodochrous is able to degrade RDX at 33

nmol/min./g of cells (4). This equates to 10kg of cells in EcoX being able to fully remediate one

ton of soil in 181 (based on explosive contaminants being 20% w/w). Each pail of EcoX will cost

$500. EarthCap guarantees at least 95% cell viability after microencapsulation. EarthCap also

guarantees full removal of explosive contaminants from soil and groundwater.

Process Flow Charts

Utilities (water, heat, gas, electricity, internet)Solvents, centrifugation

Nutrients, media, buffer

S. cerevisiae Purified S. cerevisiae CellR. rhodochrous and R. rhodochrous EncapsulationP.chrysosporium and P. chrysosporium by Encapsys

Packaging, storage, transportation(Freeze dying)

Labor Labor(Head/Ass. Lab Technician) (Head/Ass. Lab Technician)

Waste (Manufacturing Engineer (QA)) Waste

Bioreactor (Fermentation)Downstream

Processing(MicrobialPurification)

Figure 3. Process flow chart depicting the overall strategy for production of EcoX.

Figure 4. Process flow chart of upstream processing for production of EcoX.

Biomass and Waste Products/Media

Centrifuge to separatebiomass

Freeze drying and storage of cells

Figure 5. Process flow chart of downstream processing for production of EcoX.

Vessel Size: 20mlIncoculum Size: 10 ml

Vessel Size: 200mlIncolulum Size: 100 ml

Vessel Size: 2000 mlIncolulum Size: 1000 ml

Vessel Size: 2000LIncolum Size: 1000L

*EcoX is a novel idea developed by CEO Greg O’Keefe and the process used to develop EcoX

does not infringe on any intellectual property.

Future Directions

In order to avoid stagnancy and to expand EarthCap’s market, future products have already

been designed by CEO Greg O’Keefe. EarthCap’s goal is to utilize micro and

nanoencapsulation technology to produce products that will improve the health of both mankind

and the environment. The next two ideas in development are nanoencapsulated drugs for

controlled release. One drug system utilizes naloxone and provides a controlled and/or

activated release of the drug in order to mitigate the effects of opioids in abusers. A similar

controlled release drug system involves specific cytochrome p450 enzyme inhibitors and

activators (cytochrome enzymes are responsible for over 90% of drug metabolism) in order to

make certain drugs appropriate for use in certain susceptible individuals (people who are very

sensitive or insensitive to certain drugs)

Operational Plan

EarthCap will be run as a sole proprietorship by the President and CEO of EarthCap, Greg

O’Keefe. Mr. O’Keefe owns the company and takes responsibility for any debts. The production

of EcoX including upstream processing, fermentation, downstream processing and freeze-

drying will be done by EarthCap employees. The microencapsulation of cells in the alginate

matrix will be completed by Encapsys. Encapsys is chosen as a partnership as the staff of

EarthCap is not experts on the microencapsulation process. Fortunately, Encapsys are

microencapsulation pioneers in business for over 50 years with over 74 patents issued. The

company is also open to innovation and look to collaborate with their customers, which is

exactly what EarthCap is looking for.

EarthCap looks to utilize the Stiller Centre for the first two years of operation. The first year of

operation will be needed for proof of concept and laboratory research. The second year of

operation will be used to conduct field studies and contaminated land sites (locations provided

using Chief Scientist of Defense R and D Canada/Investor David Pederson). After the proof of

concept research has been finished and the patent application submitted, EarthCap will look to

utilize a multimillion dollar contract with either/or the Canadian and American Military, and/or

explosive manufacturing, construction and mining companies. If a large contract is reached prior

to the completion of the second year of operation, a 5000 square foot single floor building will be

built in Ottawa or Kingston, Ontario. This is located near Penawawa, the largest military site in

Canada and would be an advantageous spot for EarthCap to conduct business. The Stiller

Centre is a one-of-a-kind biotechnology incubator located in London, Ontario. Rent is very

affordable, $1000/month for a 2,400 square foot lab, and provides tenants with hundreds of

thousands of dollars in accessible equipment including glassware, autoclaves, fridges and

centrifuges.

Figure 6. Floor plan for laboratory space in Stiller Centre. The same laboratory floor plan will be

maintained at a new facility developed in Ottawa or Kingston, merely surrounded on the south

and eastern sides by around 2,500 square feet of office and storage space.

*Explosives will be stored separately from one another in locked cabinets as advised (5).

Team

Greg O’Keefe – Chief Executive Officer (CEO)/ President/ Lab Assistant

Mr. O’Keefe graduated from Fanshawe College in 2015 with a Bachelor’s Degree in Applied

Technology – Biotechnology. He is the founder and top ranking employee of EarthCap, working

full time for the company. Together with the Board of Directors, Mr. O’Keefe is responsible for

the direction and vision of EarthCap. He is ultimately responsible for the legal compliance,

mission, policy, planning, management/administration, governance, financing and community

relations of EarthCap. In his spare time, Mr. O’Keefe will assist in the lab overseeing the

development of his products and vision.

Mantis Toboggan – Project Manager

Mr. Toboggan graduated with a Bachelor’s Degree in Science Construction Project

Management at the Southern Alberta Institute of Technology in 2005. He has almost 10 years of

experience in project management working for Monsanto and Cargill before becoming a full-

time EarthCap employee. In regards to EarthCap, Mr. Reynolds is responsible for project

design, planning, scheduling, management of employees and contractors, management of

equipment and materials, as well as overseeing finance and budgeting.

Dennis Reynolds – Head Lab Technician

Mr. Reynolds graduated from Fanshawe College in 2007 with a Bachelor’s Degree in Applied

Technology – Biotechnology before immediately pursuing a Ph. D. in Molecular Biology and

Genetics at the University of Guelph, which he successfully received in 2013. He worked in

research and development at Monsanto before joining the EarthCap team full time. He is

responsible for the planning, development and testing of the EcoX, as well as overseeing the

day-to-day laboratory activities. Mr. Reynolds also assists with the large-scale production and

quality assurance of the EcoX.

Charlie Kelly – Assistant Lab Technician

Mr. Kelly graduated from Fanshawe College in 2008 with a Bachelor’s Degree in Applied

Technology – Biotechnology. Afterwards, he pursued a Master’s Degree in Molecular Biology at

the University of Guelph, which he received in 2012. Before joining EarthCap, he worked for

Pfizer. Along with the Head Lab Technician, he is responsible for the development and testing

of our novel EcoX. Mr. Kelly also assists with the large-scale production of the EcoX.

Mac McDonald – Manufacturing Engineer/Lab Technician/ Quality Assurance Coordinator

Mr. McDonald graduated from Guelph University with a Bachelor’s Degree in Biological

Engineering in 2005. In 2013, he received a Ph. D. in Production and Quality Engineering at

NTNU. After working for Cargill for almost 2 years, he joined the EarthCap team full time in late

2015. He is responsible for the design, scale-up and implementation of the manufacturing and

production of EcoX. This includes bioreactor and fermentation design and optimization, as well

as downstream processing. He is also in charge of quality assurance.

Future Hires

This previously described core team will all be present for the first two years of operation (proof

of concept/laboratory research and field studies). However, if a large contract is achieved then

more lab technicians as well as field technicians (responsible for groundwater remediation) will

need to be hired by the end of the second year. However, the budget analysis provided later on

only takes into account units of EcoX being sold and does not take into consideration any

consultation or groundwater remediation services.

Board of Directors

David Pederson - Chief Scientist of Defense R and D Canada

Robert Mullen – Guelph University Research Chair

Kevin O’Leary – Founder of SoftKey, investor, and venture capitalist

Brian Pearson – President/CEO of LoyaltyOne/ AIR MILES

Contractors

Encapsys – Provide microencapsulation of microorganisms for EcoX.

Cassels Brock Lawyers – Advice on regulatory compliance and market access issues including

labeling, package inserts, audit procedures, etc. as well as financial services.

Statefarm – Renters Insurance

Stiller Centre – Laboratory Space

Milestones

Task May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18Equipment Purchase/set-upExperiment DesignEstablish Contractors/PartnershipProof of Concept/Initial ResearchLab StudiesPatent Application/ApprovalField StudiesScale-up StudiesEstablish Business ContractOptimizationExpand Business (New Products)

Figure 7. Gantt chart of summary of milestones and deliverables.

As previously mentioned, between the time of finishing proof of concept research and submitting

the patent application to finishing field research a large multimillion dollar contract with the

government or company(s) in the addressable market is hoped to be achieved. However, taking

into account this does not happen, future income and revenue statements are based solely on

selling EcoX products at max output on a quarterly basis (without taking into consideration price

of consultation and groundwater remediation). This is done in order to present a bottom line to

the investors in terms of revenue production.

*A detailed Work Breakdown Structure chart can be found in the appendix.

Financial Plan

Total expenses summary - 30 day calculation

Total Materials $3,504.60Total Waste $9,333Total Labor $74,166.67

Overhead expenses Multiplier Description MultiplierTotal Utilities $27,367.23Royalties - -Operating supplies 10% of labor 0.10 $7,416.67Property Tax - -Maintenance/Repair 10% of DFC 0.10 $53,759.48Insurance 1% of DFC 0.01 $5,375.95

Total Expenses- first 30 days $180,923.92

Direct Fixed Capital $537,594.75

Figure 8. Summary of the expenses for the first 30 days.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Total materials $10,513.80 $1,051.38 $1,051.38 $1,051.38 $10,512.00 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38Total utilities $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04Total waste $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00Total labour $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00Operating supplies $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00QA/QC $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00Microencapsulation $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00Maintenance and repair $53,759.00 - - - $53,759.00 - - - $53,759.00 - - -Insurance $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128Total $532,662.68 $469,441.26 $469,441.26 $469,441.26 $532,660.88 $469,441.26 $469,441.26 $469,441.26 $523,200.26 $469,441.26 $469,441.26 $469,441.26

2017 2018 2019

Figure 9. Summary of quarterly expenses after two years of initial research.

*Researchers were able to produce 15g/L yeast biomass in 12 hours (7). Based on this, it was

calculated that EarthCap can produce and sell126 10kg pails per week.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Total materials $10,513.80 $1,051.38 $1,051.38 $1,051.38 $10,512.00 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38Total utilities $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04Total waste $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00Total labour $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00Operating supplies $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00QA/QC $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00Microencapsulation $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00Maintenance and repair $53,759.00 - - - $53,759.00 - - - $53,759.00 - - -Insurance $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128Total Expenses $532,662.68 $469,441.26 $469,441.26 $469,441.26 $532,660.88 $469,441.26 $469,441.26 $469,441.26 $523,200.26 $469,441.26 $469,441.26 $469,441.26Total Sales $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000Net Profit $223,337.32 $286,558.74 $286,558.74 $286,558.74 $223,339.12 $286,558.74 $286,558.74 $286,558.74 $232,799.74 $286,558.74 $286,558.74 $286,558.74

2017 2018 2019

Figure 10. Summary of cash flow per quarter with sale of EcoX.

Net Sales $3,024,000.00Operating ExpensesLabor $890,000.00Utilities $184,048.14Waste $112,000.00Insurance $64,511.37Materials $42,055.20Maintenance/Repair $215,036.00QA/QC $267,000.00Microencapsulation $267,000.00Rent $12,000.00Operating supplies $89,000.00Total Operating Expenses $2,142,650.71Net Operating Profit $881,349.29Income Tax (13.16%) $115,985.57Net Profit $765,363.72

Figure 11. Summary of income statement for first yea or production and sale of EcoX.

*More detail on how these numbers derived and how they were configured can be found in the

attached spreadsheets.

Sources of Funding

EarthCap has received an initial investment of $1,000,000. This is enough money for EarthCap

to purchase their direct fixed capital and perform proof of concept research for at least several

months afterwards. Additional funding will be needed in order to complete field studies, further

optimization and scale up implementation as well as purchasing land and building a facility in or

near Ottawa or Kingston, Ontario (if a government contract is received, only then will latter will

be considered).

EarthCap is asking for an additional $1,000,000 in investment. This money will be used for

continuing to operate during field studies and for further optimization and scale up studies and

implementations. There is also a possibility of needing to purchase or build a new facility near

Kingston or Ottawa depending on if a large contract for EcoX is reached, as scale up will most

likely be necessary.

Sources for additional funding include Life Science Angel Investors (LSA), a premier angel

investment group solely focused on healthcare investing, specifically, medical devices,

molecular and other diagnostics, mHealth, and biotechnology and/or federal government

support. The Government of Canada places significant value on the life sciences, and has been

pursuing a number of initiatives to maintain and grow this thriving sector in the areas of

financing for small firms, research, commercialization of research, measures to encourage

investment attraction and intellectual property (8).

Appendix A

Detailed Work Breakdown Structure

Task Task Length/Due Date Responsible EmployeesPurchase lab space Must be achieved before May

2015CEO, Project Manager

Purchase of equipment 30 days CEO, Project ManagerInstallation of equipment 14 days Manufacturing engineer, lab

techniciansExperiment design 30 days CEO, Project Manager, Head

Lab TechnicianProof of concept/lab research 1 year in total EveryoneFinalized Product specifications

By end of year 1 CEO, Project Manager

Begin to market EcoX By end of year 2 CEO, Board of DirectorsField study experiment design 30 days CEO, Project ManagerPatent application/Approval 1 year total CEOField studies 1 year (finished by year 2) EveryoneDesign of scale up 30 days CEO, Project Manager,

Manufacturing engineer, Head lab technician

Implementation of scale up 6 months EveryoneDesign of optimization 30 days CEO, Project Manager,

Manufacturing engineer, Head lab technician

Implementation of optimization

6 months Everyone

Design of new products Ongoing CEOImplementing production of new products

By end of year 5 Everyone

Appendix B

Company Logo

References

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Gellan Gum-Encapsulated Bacterial Cells. Retrieved March 24, 2015.

2. Spargo, B. (n.d.). Encapsulated Bacteria for In-Situ PAH Bioremediation. Retrieved

February 17, 2015, from http://infohouse.p2ric.org/ref/37/36744.pdf

3. Pitchel, J. (2012, March 19). Distribution and Fate of Military Explosives and Propellants

in Soil: A Review. Hindawi. Retrieved October 21, 2014, from

http://www.hindawi.com/journals/aess/2012/617236/

4. http://seth-smith.org.uk/helena/cv/hssthesis.pdf (Seth-Smith HMB (2002) Microbial

degradation of RDX. PhD Dissertation, University of Cambridge)

5. http://www.safety.queensu.ca/safety/policy/eh&s/storage.pdf

6. http://www.reade.com/Particle_Briefings/spec_gra2.html

7. Vieira, É. D., da Graça Stupiello Andrietta, M., & Andrietta, S. R. (2013). Yeast biomass

production: a new approach in glucose-limited feeding strategy.Brazilian Journal of

Microbiology, 44(2), 551–558. doi:10.1590/S1517-83822013000200035

8. https://www.ic.gc.ca/eic/site/lsg-pdsv.nsf/eng/h_hn01725.html