UH Breakthrough Innovation Challenge: Final Event

Hi everyone Well welcome, thanks for joining us. So we’re trying to test to see if I can read this without my glasses. I increased the font to 20 I thought I could do it but it’s not going to work So this evening we’re celebrating innovation at UH at this final round of the 2018 UH Breakthrough Innovation Challenge I’m Peter, I’m the Executive Director of PACE, and I’m gonna try to be your emcee tonight if my voice holds out. And then maybe one of you will have to step in We’re pleased to be putting this event together during Global Entrepreneurship Week. If you don’t know what that is, this is a week that’s celebrated in 170 countries So all over the world, these countries are hosting more than 5,000 entrepreneurial activities like this event that’s going on right now. So we’re happy to be a small part. So competitions like this make a real difference in student’s lives. I don’t know if you remember, for those of you that were here last year, that we showed some sort of – it was a memory lane thing. Where some of our past competitors are now. And it’s very exciting to see that they’re successful business people out in the world that could trace their roots back to this very competition. So it’s very important. So we forced the students to come up with viable answers to problems that are really desperate for solutions. And it’s not an easy task, but it’s a very fulfilling experience for participants I think, and gives them a chance to think critically about how their innovation can make an impactful difference in the world. So we couldn’t do this without the amazing, generous support of our title sponsor, Accuity Accuity is one of the largest and most experienced CPA firm in the state So the firm and its managing partner, Kent Tsukamoto, have stepped up in a huge range of way to support us, and we’re so grateful for their support of entrepreneurial education at UH. And we’re also grateful that Julia Okinaka is here from Accuity as a judge. And thank you for joining us We have partners across the UH system in this event that help us coordinate, encourage applicants from their their colleges, and helped us screen the robust plate of first-round applicants that we had. And I’d like to recognize them as well. So the UH College of Engineering, the UH iLab, the College of Tropical Agriculture and Human Resources, and the William S Richardson School of Law have all been amazing champions across campus and we’re grateful for their support as well Thank you I have this sticky note here, this is how good my staff is, to remind me to thank my boss, Dean Roley, for his star supportive case. Thanks Vance So we love you all for all your help. And there’s a group here who did do amazing volunteer work for us whenever we have these types of competitions. And I like the folks that are here that are the real heroes of this competition to stand up and be recognized if you’re here when I call you by name. So these are all coaches. So we teamed each team here with one of these amazing people who are volunteering their time. So Peter Kay Kari Leong. I think Kari is here Clap for her anyway Maria Lowder. Thank you I know Rich Matsura from PandaTree isn’t here, but thank you Rich. Robbie Melton Noel Nedli Scott Paul. I didn’t see Scott come in Thanks Scott Jill Sims. I don’t think Jill – Dr. Rob Yonover. I know he’s here And Bob Nakata from Oahu Group. Thanks Bob There’s Kari. We were just recognizing you, Kari Kari and her team. Thank you coaches. Your help is important to us. So each Fall we put the word out about this challenge across campus and the purpose is to expose students to entrepreneurial thinking and brand recognition and attention to their unique business ideas. So the finalists have definitely delivered on

innovation this year. We have five and you’re about to see their presentations once you get rid of me. So each contestant was tasked with submitting a two-minute video that described their idea. That was to get through this really rough screening round. And actually I should thank ourselves. I should thank Chad Waldman and Song Choy and me, I guess, for that round. They did a wonderful job And Justin Lavinson It was brutal work. Thank you And then, so most of our finalists aren’t from Shidler, which is actually quite unusual. Our home in PACE, or PACE’s home at Shidler, makes it a real magnet for Shidler students. These types of competitions. So I think this might be the first time, at least that I participated in, and that might be in the last four years, that that hasn’t been the case So Shidler is sadly represented here and Vance will have to get on this next year. This can’t happen again So they come from fields of study including mechanical engineering, nutrition, and ocean resources and engineering. And many of them might not have as much experience as Shidler students making a none techie, non science presentation Sciences is another world. So now let’s get on with the competition. Our finalists will have five minutes to present and then we’ll have eight minutes to take questions from the judges. So I suppose you want to know who the people are that are making these decisions tonight, and then I’ll tell you a little bit about the prizes. So Dana Cotter is the director of portfolio for Elemental Accelerator. Thank you Julia Okinaka. We don’t have to clap for her No I’m kidding we’ll clap for her Thank you, Julia from Accuity. Tarik Sultan from Sultan Ventures and XLR8UH And of course Susan Yamada Everyone knows Susan Okay, so the prizes. $2,000 for first place, a cash prize and automatic entry to the semi final round of the Spring UH Business Plan Competition, which, that’s way more valuable than money. That’s like a first round buy to the playoffs. I think it’s very valuable. To the champions league, right Alberto? Yeah $1,000 for a second place cash prize, and then you get to decide. So if you look at your brochure, you’ll notice that there’s a tearable portion. And what we want you to do is to participate and vote on an audience choice, which will also be a prize of $1,000 So you tear the right part of the panel off to cast your vote and you can do that during the judging, when the judges are arguing over who should be the first and second place prizes So we have a time keeper? Okay on the side, okay thanks. We’re going to be very strict about time. He’s gonna hold that one minute sign up to you competitors if you – as you approach that point. That can be very distracting, but it will be more distracting when I’m down there with a long pole and hook, so get ready for that You ready to go? I’m ready. Okay. Our first finalist is from Okara Pizza Crust presented by Asuka Suzuki, Lauren Tamamato and Lee Ann Young. Ready? Hi my name is Lauren Tamamoto, this is Asuka Suzuki, and this is Lee Ann Young, and together we are repurposeful food innovators. And today we would like to share with you our latest creation, Okara Pizza Crust. Food waste is a huge problem in the United States it’s estimated that over 26 tons of food is wasted each year, which is valued at over 216 billion dollars. The United States Department of Agriculture defines food waste as edible food mass during the food chain, which can include production, processing, retailing, and consuming. The

US government has identified food waste as a major problem and is actively trying to reduce food waste by 50% by the year 2030 One food waste in Hawaii okara Okara is the byproduct of soy milk and tofu. At Aloha Tofu in Honolulu Hawaii, over 4,000 pounds of okara is produced each day. In Japan over 660 tons of okara is produced annually. Currently, companies that produce 0kara are not using it and have to pay for its disposal. But why some ingredients that could be used and made into food products? Using our experience as culinary chefs, we upcycle okara into a delicious, healthy pizza crust. Why pizza crust? Pizza is universally acceptable and popular. Every minute over 21,000 slices are sold, which equates to over 30 million slices sold a day. Our okara pizza crust will be an alternative for people with dietary restrictions or want a healthier choice, All the while eating something that tastes great Okara Pizza Crust is high fiber, high protein, low fat, no cholesterol, no egg, no milk, and no gluten The majority of Americans are not getting enough fiber, but if they eat 9-inch okara crust, they can get 40% of their daily needs So Okara Pizza Crust it’s truly nutritious and helping environment and tasty alternative for people who have food allergies. Our target market of 200 plus million Americans includes those suffering from celiac disease, gluten allergies and intolerances, people choosing a gluten-free lifestyle, as well as consumers choosing healthy options for their family and themselves This graph illustrates the potential to enter the gluten free market. As you can see, there is plenty of room for growth and opportunity for Okara Pizza Crust to enter the gluten-free market. Through our research of what’s currently on the market, our direct competitors would be other gluten-free crust companies, such as Caulipower and Udi’s. However, when compared side-by-side, Okara Pizza Crust is a superior product over those competitors. We have simple ingredients, which are easy to understand and recognize and pronounce, we have a short ingredient list compared to the 13 and 14 ingredients that our competitors have, we have a healthier product, with our higher fiber and lower fat, and last but not least, we are the only pizza crust that is eco-friendly. So we’re helping the aina, being sustainable, reducing our food waste, and creating a value-added product. Our indirect competitors would be other gluten-free products on the market that people may choose to besides pizza. Okara crust is a delicious, healthy, eco-friendly, and forward-thinking product that is sure to turn the pizza world on its head And now Asuka is going to pass out some samples to the judges Sorry audience, you weren’t allowed to have samples. So just imagine it So we’ll be passing out some samples Do you guys have any allergies or anything? There’s dairy from the cheese but it’s gluten free. High fiber So I guess I’ll just use a big voice, or else maybe we can turn it on. So my question is, where’d you come up with the idea to use okara for a pizza crust? I am a PhD student and my research is focusing on early adolescents diet

behavior. So when I go to collect the data, I usually talk to adolescents. And many adolescents said I eat pizza for my snacks over meals. So I thought if we can change the pizza for the healthy food from the unhealthy food, I think it would be, we can change the water. So that’s why we came up with the idea So this idea is extremely interesting in terms of food waste perspective as well as you know, there’s a lot of folks who have dietary restrictions out there and that’s a growing trend as well, whether or not they have a dietary restriction. You know in your market, your target market slide, it said that there’s about 200 million people that you would go after, which is more than 60% of the US I think that’s a little bit too large of a size, right? So a lot of times for startups, what you want to do is focus on specific niche and growth from there You’ve actually identified that niche very well, with the dietary restrictions. Do you have a better understanding of what that specific market looks like? The smaller segmented market within the 200 million folks? Or maybe just how would you go about finding who those folks are, right? What would your your strategy be for identifying them? Well while we’re working on this project, we were trying to figure out okay – I mean we work in culinary industry and the business side we’re still learning. So we reached out to different companies. So we reached out to Boston’s Pizza, Italian Taste, and we actually reached out to Foodland And so we thought that would be a great opportunity to promote our product out there because one, this is the only locally owned grocery store out there and they like to support local businesses, are getting our okara out of the relationship with Aloha Tofu. And so partnering with them, co-branding with Aloha Tofu, getting people interested because the sustainability is a big buzzword in Hawaii right now. So if we’re incorporating food that’s produced in Hawaii, and I guess our goal is to start small in Hawaii and then move forward, but getting people who want to eat local, who want to help the environment out, and then we’re going to crazy market the whole thing out of it by demoing it at Foodland Farms in Ala Moana, they have a pizzeria ,there so we would have, I talked to someone at Foodland and they’d be interested in partnering with us to do this and showcasing our pizza crust there as well as going into the frozen retail natural section. We’re not competing against your Digiorno’s or anything, but it’d be that niche market there and then go from there. And we think our product tastes good. I mean I’m kind of biased, but – and so by people tasting it we will get that market, and that’s our hope I agree, I was able to taste the pizza and I can attest that it tastes delicious I’m so sorry for everyone sitting in the audience that’s not able to partake in it I’ve heard of okara flour and it’s already being sold on the market and I was wondering, because okara flour would be a similar market to, and you know, similar target market as to the Okara Pizza Crust, do you know how well that market is doing? It could be the same market, however, where we make okara flour, mean we have to pay more money because during the processing we use real okara. So we don’t have to pay for like a processing, but when we make real okara to okara flour, then we, it’s kind of hard to process and that cost is kind of expensive. So if we use okara flour, it’s going to be expensive So my question is, the go-to-market strategy. If you’re going direct to consumer, that’s a lot of branding and that’s a lot of kind of external media and other pieces like that, whereas if you are going to go with a restaurant or kind of a b2b business, more so, it could be potentially a little less in the marketing side So I’m curious which of those approaches – it sounds like you’re going direct to consumer, but thinking through the address ability of the markets here, I’m curious if you thought about hotels or restaurants and other ways. Actually, because yeah we realized if we’re selling retail price, say we sell it – we’re thinking eight dollars because Caulipower is like ten dollars for a two pack – and then just selling it

wholesale would be selling it for twenty so that would be initial just to get the buzz. And then right now, with the Department of Education, they’re trying to promote locally procured items. And so kids eat pizza, pizza’s on the menu, and the Department of Education – at least once a month. And so then we don’t have to pay for packaging. As you know, as much packaging too and marketing So if we can get it, sell it bulk frozen directly to the schools, we can sell it to them at a lower price point and then just get it out there. And so I was calculating the numbers and I was thinking, where’s my numbers here, if we were just – say we made 50 cent profit on each crust and there’s around 185 thousand students in the public school system, once a month nine months a year, I averaged – it sounds kinda weird, but ninety two thousand dollars a month. And like $833,000 for that. And we’re using local products, we’re getting healthy – like twelve grams of fiber in one nine inch crust So we’re getting students to eat something and I have two little kids, they’re four and six, and they’re pretty, picky kids and then they’re eating this crust. I’m actually an instructor at KCC and yesterday I had my students make this healthy spam musubi and I said extra credit for whichever one the kids like And my kids push it aside they said, is that what you’re feeding us for dinner? And so they’re very picky and they like this crust. And so I think we have a winner So right now, if you have these afflictions, as far as gluten free dairy, you can’t eat dairy, what what kind of pizza crusts are you eating? What are they eating right now? Or can they not be pizza at all? Could make sure your question is other than okara pizza crust, what other types of crust are there available for people who have dietary restrictions? Yes, there are cauliflower pizza crust. It’s very popular now. They make crust out of cauliflower. So like if I went to Round Table or Domino’s and I couldn’t eat these things, do I have an option? So some of the other pizza companies, pizza chains out there, they do have gluten-free pizza crusts. Pieology. It depends on their coordination So I came across two different paths. One path is going through ancient grains, so anything but flour. It could be sorgum flour, it could be tep flour. Something different You’re creeping on me Thank you very much Okay. My invisible hook Next up is Heaterator, presented by Austin Quach, Reginald Tolentino and Wyman Tong Are you guys ready? Come on up Test test. Alright How’s it going everybody? Wymen, Regi, and Austin here, come to you with the Heaterator. Hot or cold on the go. Ever carry food with you, just to find out there’s no microwave around to warm your food? Or no refrigerator around to keep your food nice and cold? Well never fear, because the Heaterator is here. The Heaterator does both. It cools your food to keep it nice and fresh or it can warm up your food. We want a piping hot meal. It’s also physically convenient. So you can take it with you wherever you go But most importantly it keeps your food out of that nasty danger zone Goodbye salmonella

Here is our minimum viable products. Also known as our MVP. Our design illustrates two handles for stability carrying, two latches to keep your food protected and safe, and a power button. An on/off switch simply press it once for heat, press another for cold, and another for off So after defining the problem and identifying our value proposition, we tested our product idea. So over the last few months, we have conducted over a hundred fifty interviews to refine We collected a hundred fifty interviews to validate our product markets fit, and as a result, we had an astounding 96% willingness to buy our product. And 92% of people having the need to keep their food cold or warmed up when they need to, which are the two key features of our product. So when we initially conducted our market analysis, we first started with the population of the United States to be 326 million people. But as college students who would use this product, we refined our market size to those in higher education, which is roughly 20 million. Through further analysis and taking into consideration the tendency of students who commute to campus to bring home lunch greater than those that live on campus, we were able to determine our customer segment and market size to be 17.2 million students. However, our market doesn’t stop there. With our product potential, there’s even bigger market size of 207 million students globally in higher education. But this isn’t just for college students. This product would also be suitable for students in elementary and secondary education, which is roughly 56.6 million students, and that’s the large potential market that would be suitable in Japan, who are known for quality freshness and aesthetics of food within their culture and as being a leading frontier in innovation and technology. So this shows a side-by-side comparison of the capabilities of our competition We looked at boxes that could heat, chill, be battery-operated, weight less than five pounds, and be physically convenient. The most notable thing about our competition is that they’re all plug in. The Heaterator is the only lunch box that would be battery-operated. The only other lunch box that is able to heat and chill is the Wagan Tech Warmer and Cooler, and that lunch box does not have the luxury of being physically convenient to be held around during classes. This is our competition positioning chart. The horizontal axis shows the capability of heating and chilling or doing both, and the vertical axis shows the convenience of carrying around the lunch box. The Heaterator is in the top right corner because it is able to heat and chill while being very convenient. The other competitors are in their respective quadrants. We’d like to thank PACE for holding this event as well as Dr. Bob Nakata, our instructor for EME 492 and our two mentors, Rich and Pascual. Once again my name is Wyman Tom, I am the Chief Executive Officer, I’m Austin Kwok, the Operations Officer, and Reginald Tolintino, the Chief Technology Officer, and together we are the inventors of the Heaterator That was very entertaining and engaging. Have you, so you focused in on the college commuting students, which I thought was great. You chose a specific niche. Now to basically play the devil advocates myself, have you thought about another market? In terms of the outdoor market for example, so a lot of folks might take this with them to go camping, and if so, is there the opportunity for this to be solar-powered as opposed to just like plugging it into a wall to recharge every night. Well ours is actually a battery-operated one, so it doesn’t need to be plugged into a wall charger. But during our empathy interviews, we actually, or we talked to a wide priority people. So I actually asked construction people, and the funny story is that most of them were saying

oh yeah I just carry a microwave in my truck. So I mean, and then they take it out and plug it into their car. And I was like well that must be a real hassle for you. So I mean, and those were the type of people that we could potentially sell it to. So the second part of my question, is it, are you able to charge that battery via solar panel on the box? Yeah, so the plan is to have rechargeable batteries in our device. So just like your smartphone, you can, when you come home, clean it out, you can plug it into the wall and by the next day it should be ready to go. So for this we can try the solar panels. I also have a question on the market. So the student market has a historically very low willingness to pay for things and if you think about being a student, we often have lots of other expenses So I’m curious – one, have you guys costed your product – or have you created the cost workouts for your product, and two, did you actually ask people their willingness to pay in dollars? Right so one of the questions part of our survey actually, when we were going through our interviews, out of the 150, our average was $110. And majority of our interviews that we interviewed were college students because we’re going around campus So what you’re saying is that 96% said that they would pay $110? Uh no, that was the average of the 150 Pretty surprising but yeah Similar to Tariq’s comment, I also could see, I have two children that are in sports all day on the weekends. So it’s a challenge sometimes for me to get food and then have it last throughout the day throughout their sporting activities so I think that’s also another potential market. But I didn’t understand. So normally I have things for them that I want. They’re kind of out of the fridge that I you know I want to heat up later but then I also have things I want to keep cold like fruits and salads and vegetables and drinks. So I didn’t understand how, so you – so it keeps whatever you’re having, it keeps it cold and then I press the chill button and then when I want to heat it up I press the heat button? I guess I didn’t understand how that works. So yeah so right now for MVP, it only has either or. So right now you press the button to chill, it will chill And then when you want to warm up your food, you press the hot button But in other versions or iterations that we’re going to do later on, we might have separate compartments that could actually have one compartment keeping it chill and one compartment could be for warming up. That’d be great sign me up. Oh you got it. You’re the first one I think it’s a cool product and something that is – or a hot product He’s so witty. Well how did you come up with a market of students? Because I think you’re totally missing the boat as far as when you pick like a college student, for example. I mean, and then just because of time, my concern would be more from a parent of a younger kid because my concern has always been “is the food gonna spoil?” So if I knew it was going to be chilled, we still have the problem of remembering to press it to heat it. But it comes more from a food safety perspective. And they would be, I think, more willing to pay food for the assurance that there’s not gonna be Salmonella or whatever things grow in food. So how did you come up with that market and are you looking at other markets? Right so I guess our initial market was, because I actually pitched this idea to my team and because I do bring home lunch and that was one of the issues that I was going through personally But through interviews we actually have conducted and looked at several markets, which does include, I mentioned secondary education students, which would be a different market from just college students, where they would be going to school with. I mean people in that market would be pretty – yeah but you know what? The students aren’t your market. The market is the parents. And there has to be this very clear distinction because elementary and secondary school students do not have a hundred ten dollars

Right. That’s true. We could potentially look at the population of parents in the United States to see how that goes. Because yeah, that is actually a good point But for our entire market, it would have to be like, everybody who eats that actually use a lunch box. So that’s we actually narrowed it down to the students, because it would help relate to us. But as my colleague Reginald says, just like his mom Oh yeah so my works at a hospital. And so when she has to eat lunch, she has to go up like seven flights of stairs or seven floors lower to go to the cafeteria to heat up her food. And so that’s another market that were also exploring as well. People who are in the workforce. And because these adults who would be paying for this, not the kids, so that is another market that we are looking into. I know this is just the concepts stage. Do you have any understanding of how hot or cold it can get and can you do both in one? Like does it have enough battery power to do both, right? So heat up my pizza and cool down my coke. Okay so it’s not that we’re using is a T cooler, which does both functions of heating and cooling, and the temperature difference would be enough for it to do such capabilities And we have been through the map and we’re also still in the development phase for that as well Thank you Next up this G-Trainer, presented by Austin Yoshino Good evening. I am Austin Yoshino, a fourth year engineering student. This is my invention Here is my little brother, Grant, who I’m dedicating this project to. He loves to be around family and friends, and where all the action is. He also has a diagnosis of cerebral palsy, a condition that can make this difficult Despite challenges, he continues to amaze us all as matures into a fine young man. Grant relies on a medical equipment to walk, called a gait trainer. For the past 10 months, I have redesigned this device to improve the quality of his life and others with similar needs These are some of the current gait trainers in the market today Notice how they all have a similar design with the wide base in order to support the balance distribution of the user The demographics of gait trainer users includes individuals with cerebral palsy, muscular dystrophy, and spina bifida Along with my experiences of learning through Grant, I gathered additional information directly from parents about the pros and cons of the gait trainer First, while the gait trainer is meant to improve walking ability, the amount of practice time ranges from 5 to 45 minutes and is limited by discomfort Second, the gait trainer can expand individual’s mobility options to participate in life activities such as socializing in school, accomplishing household chores, and playing sports However, the awkward shape and large size of these devices are barriers to entering or navigating in spaces and joining activities This is Grant’s current gait trainer. It consists of two parts. One, the support system, and two, the frame While Grant looks happy in his gait trainer, his smile fades with discomfort over time. The support system design puts an enormous amount of pressure under his arms and groin, as his body weight is solely supported by these points. My solution for improve in is to use a vest-style harness to increase support that distributes and reduces pressure. This will optimize comfort, which will result in more use and practice, increasing the possibility of independent walking in the future. My solution to reducing the frame size is to incorporate gyroscopic technology into the wheels. A gyroscopic wheels constructed using an inner spinning disk enclosed with a wheel shape frame. As the inner disk spins, the wheel cell balances, becoming resistant to toppling forces, similar to how a toy top works. Here are some current applications of this technology. In the gyro bike, the gyroscopic wheel is used to replace

training wheels. As you can see, the gyroscopic stabilization allows for slimmer and more compact designs for the prototype car and the miniature segway This is a sketch of my proposed device, the G-Trainer The harness provides essential support for comfort and the frame dimensions are significantly reduced, which includes physical barriers and participating in life activities. I am currently in the process of filing for a provisional patent for the concept of combining gyroscopic technology and gait trainers As shown in the competitive matrix, the G-Trainer surpasses competition in maneuverability, performance, and comfort According to my predictions, I would need an initial funding of almost $85,000 for taking two years to achieve profit in sales. However, my goal is to acquire a strategic partnership with an existing gait trainer manufacturing company after a developer working prototype This will allow me to use their manufacturing operating resources, reduce my overhead cost $50,000, reaching a sales profit within the first quarter In order to expand the product market for my company, futuristic iterations of this technological application can be used to create other medical equipment for people recovering from stroke or brain injury, injured veterans, and elderly In closing, I’d like to thank everyone who supported me along this journey. It’s exciting to think that I’m just getting started I’m hoping that you will support my goal in business of helping others Wow was great. And I think I, when I walked in I think I walked in with your family. Is your brother Grant here with you tonight? Yes he’s right there I was wondering if you asked other families with other similar needs and if you talk to other families and got feedback on what their concerns were. Yes I did So Grant, as you can see in the picture, he’s a part of the AYSO Manoa soccer team. And so in this slide, this is the summary of what they had told me I’m curious, you had the cost of the other gait trainers on here, so how do you – what’s the cost that you’re expecting to sell this at? I’m expecting to sell my gait trainer at $3,000, which is competitive in the market And then my second question is oftentimes these types of products have to go through these certification processes in order to be used. So I’m curious if you’ve looked up which ones you’d have to go through or have an understanding of what that front timeline would be So in the FDA, gait trainers and walk use device are FDA 510 K clearance exempt The wheel system is interesting to me because when you look at this, it is super – I mean, there’s no way you can fall off Like I’ve fallen off a segway myself So I gotta imagine, one of the worst things for anybody buying one of these is that the person fall off. How is that prevented in your design? Falling like sideways, right? There’s a strap in. So the gyroscopic wheel is placed this way and it resists force So in my calculations, I would calculate how fast the inner wheel has to spin to become resistant to the forces for an X amount of weight So you’ve done that already? Not yet. I’m in the process. Oh okay, okay So it’s theoretical at this point? Correct. Yes So you’ve literally answered all the questions. [inaudible] I really like the feedback and I think this is amazing And we did a project last summer at Sultan Ventures. We had a group of interns work on something similar to this but it was focused on the elderly market and you’re right. The options out there are abysmal for such a huge need. So I really commend you on your work on this project. Thank you Amazing work. Thank you Thank you Okay now we’re on our fourth finalist, which Dive Buddy. And that’s going to be presented by Bradley Beeksma and Nick Alm

So aloha, I’m Nick Alm and I’m Brad and we’re presenting Dive Buddy Growing up here on the islands, we both found a love for the ocean and scuba diving and – scuba diving allows us to explore the underwater worlds, which is absolutely gorgeous if you have a chance. But it requires a lot of equipment to keep you safe Namely, a dive flag. By law, divers are required to carry a dive flag to alert boaters in the area that there’s divers in the water But if you’ve ever dove with a dive flag, they’re really frustrating to use. Being a UH diver, I go off frequently in my job to do another long task with a buddy. But more often than not, my tow line will get caught on rocks or coral, mainly myself, and I end up getting entangled in it and you struggle with the line and eventually you drift off from your partner. if you can’t free yourself, you can actually suffocate from this, and for that reason a lot of divers don’t dive with a dive flag. But that’s also the reason that a lot of divers get hit by boats. In 2016, a Kailua man was killed after being struck by a boat while diving off Lanikai. And this happens all over the US in 2017, there were 27 deaths and 40 injuries from boating accidents alone In addition, divers most commonly died from being entangled by their own line, being separated from a group, or by being left behind by a boat because the boat doesn’t know they’re still in the water So to address this problem, we came up with the Dive Buddy, which is essentially a wireless dive flag It’ll track scuba divers via their watch, which most diverse already have. This dive flag will include a unique patent-able features, such as never losing connection with underwater scuba divers and also it will always stay above them and never drift away from the current. It’ll just stay on you and stay above while you’re diving and while you go it will map your dive. On the market there’s nothing really that does this at all. Like we’re the only one with a drone that’s focusing on safety Everyone else is focusing on filming and having a nice camera. What we’re focusing on, particularly safety with the dive flag on top of our drone and also having pre-programmed messaging capabilities to communicate with the scuba diver and boaters nearby. So our target audience for this is dive tour companies. PADI is the biggest scuba dive Association and online they have 65 PADI certified companies with boats in the Hawaii. So in talking with all the companies like Dive Oahu, they were very excited about possibility of reducing the risk of losing their divers because it’s a big risk that poses to them. And so they said they’d be willing to buy two of these things for each boat at $1,000 per drone So from that and also talking to other companies, found that each dive company, on average, has about two boats So just sort of walk you through what the mark potential is, at 9,000 towards globally that have dive boats, two boats per dive tour, and two drones per, that’s 36 million dollars ata thousand dollars per drone. If we have a twenty five percent market share, that’s nine million dollars. We can produce this for two hundred dollars per drone, which would give us a 7.2 million dollar profit margin. In order to get there, within the next few months we intend to go through a process of validation because we want to make sure this thing stays above you a hundred percent of the time. It’s a safety device. We want you to be safe Having a sister that’s a lawyer, we’re going to work with her about patents, and after we file patents, we’re going to go and use our relationship with [inaudible], they’ve already agreed to purchase this device and work with them to develop it more for dive operators Once we’ve expanded our sales locally, we’ll go ahead and expand out to DEMA, which is the nation’s largest dive equipment show in the nation, where we hope to get the approval and feedback from a larger consumer base. From there we’ll apply to AA US, which is a safety organization, to try and expand globally A little bit about ourselves, why we’re qualified, we’re both engineers in the ocean

engineering department. We’ve worked on projects like this before and we know what we’re doing. In summary, in summary this is patent-able technology that has no market competitors and a huge profit margin. And it has the potential to save lives I’d like to thank our mentors Dr. Yager and Peter. They’ve helped us tremendously in developing this presentation. Thank you All right. So I used to work in a dive shop here, so this is super personally interesting to me. But I’m curious – when you’re taking dive charters out, typically only one instructor to five or six potentially new or certified divers. Who does this follow and how does that work if the first market is dive charters and you’re trying to track six or seven people at one time? So this technology actually can track multiple divers at once, and if someone is a boat operator on the boat, they’ll be able to connect up to an iPad and see underwater okay, I have six divers in the water, this is where it is, they’re at this depth It’ll send us status updates saying okay, as a diver, if you’re struggling you can press a button that says I’m struggling, and then that dive operator can send messages to other divers saying hey, this person is having a hard time or hey, there’s an emergency happening We need to all get out of the water So it allows the dive operators to have a lot of control over what they send to the divers and monitor their health and stats. So are you then expanding into the dive watches or would you integrate with other ones? Because right now there isn’t that capability. So is that an expansion? Is this like, first step, second step, total scuba takeover? So we would probably eventually partner with a company that already has the dive algorithm, although I’ve personally developed a algorithm for dive tables. So that technology isn’t too difficult to develop your own watch, though it would make sense to go with those who will already have a market share. I’m not a diver. I have zero experience. I thought it was really interesting. The first question I had was, I watch the original video that you had in the water was pristine, it was calm, it was beautiful. My first thought was like what happens if it’s really windy, choppy. Even with a GPS would be powerful enough to stay on top of the divers? Yeah So I also interned with a boat building company and I have access to naval architectures. And they have a lot of experience designing both specifically for this. And so we can design a boat to withstand like currents of two knots Sorry two knots in a current. And you’re generally not like diving in crazy conditions anyway. So we can engineer this to be the right conditions for our scuba divers. Dana’s nodding her head and agreeing so I’m just going to trust that. She agrees with your response My other thing was I thought the point that you could have diver location and safety information, I thought that was actually really appealing to me and that was actually almost more of a selling point than the uncomfortableness and the danger aspects of it being attached to you. So I think that if you can kind of mock out what that would look like, that module and that panel that the boaters could could watch so that they can keep track of their divers, I think that might be an important part to emphasize. Are you able to go back a few slides to your competition – or your price point slide? While you’re doing that, I think it’s awesome yeah, talked to Dana over as a judge – as soon as you were talking about this I was like this is perfect for us The competitive majors one. Sorry So my question while you’re getting there is why did you choose the $1,000 price point? That’s actually, I was talking with a bunch of dive shops around the island here, and after-work shopping with them on what price points would work, that’s the the price point that they agreed that they would be willing to buy this at. So that was sort of just what we could make as a profit margin So the reason I’m asking, the reason I love this slide in particular is, I didn’t get the chance to scan it at all before, but I had I thought I had saw that everybody else was charging way more, right? And so I’m wondering if you’re leaving money on the table at such a low price point. Yeah, so the thing about this is that we’re on the surface and everyone else is underneath, and that changes your technology a lot. Also everyone has a 4k cameras on it. Super expensive. So it’s just, they’re trying to do different things and it costs more. So we’re just putting it on top of the water, which is not as far off Also, we’re not just applying to be like another dive charter. We’re trying to make it so that you know, divers who go out and aren’t necessarily a dive tour, they can also go and

carry this with them. If they’re some scuba diver or even some free diver off Waianae, they’re just as important as the dive tours. Because those are the people that, the Kailua man got hit by a boat, not a dive tour Future market is individuals. But right now, all the dive companies at the moment So I thought your little depiction of how you use it, it kind of reminded me of like a ginsu knife cutting, or a dull knife cutting a tomato and how they’re like really bounding around So that’s kind of entertaining Can you explain a little bit more about the equipment? So you have a watch, you have something on the boat, the boat that follows you around, and then you have information coming up in a iPad on the mother ship, right? How does that all work? So underwater Wi-Fi doesn’t work. So in terms of the technology that goes between the watch and the drone, that is proprietary. That’s what we’re gonna be filing patents on. But when you have a drone on the surface, that works via WiFi. So they’re just connected via WiFi So it’s going from your watch to the buoy, then the buoy to the ship Interesting. So just that whole underwater proprietary technology you have, have you thought about using it for anything else? Like I don’t know, oil rigs? Well it’s not, it’s using acoustics. So using sound to transfer information. That exists That’s already, people use that for oil rigs and everything. But this is particularly for scuba divers and – So actually the technology that exists for oil rigs and things of that sort, those cost $40,000 or more, they’re 10 ft poles, they’re enormous So this does actually have an application for them, but we’re not quite sure the amount of money that exists within oil rigs, they’re already putting money into more complex technology What we’re going for is taking a step back and realizing there’s an entire other market they completely ignored and we have the ability from our past experiences to scale down what they’re doing, make it simplified, patent that technology, and then sell it So I think Tareq’s point earlier was exactly one of my thought processes, which is especially dive shops pay tens of thousands of dollars for equipment. So I definitely think that the price point could probably be adjusted a little bit. And another thing that I would consider is what is the data that you’re collecting and is there actually like a reoccurring type of business model where it’s not just one on one sales but really capitalizing on that particular data. So something to think about in the future in terms of what you’re collecting and how to utilize it That’s one measure that actually we’re thinking about, was Garmin does a lot of mapping, so this technology has the ability to map your dives. So it’s direct linking with in depth dives, maps of local areas and sell that information too. So there are a lot of other opportunities available Thank you Okay. So our fifth and last finalist is Vert, presented by Ame Arakaki Ready Ame? Hello judges, I know some of you My name is Ame Arakaki as Peter said. I’m a senior like mechanical engineer – Ame speak into the mic Oh I’m sorry. Better? Yeah Alright so I’m a senior mechanical engineering student that doesn’t know how to use a microphone and I’m going to talk to you about the Vert System today. Alright so the biggest issue facing the medical cannabis industry and the recreational cannabis industry isn’t necessarily one of legalization anymore. It’s actually a contamination, because now that the industry is moving to a more wide street market, protocols need to be put in place to protect consumers from possible infections. The biggest outbreak to date was in 1984 and it was a salmonella outbreak across multiple state lines, affecting

hundreds of people. And they couldn’t – the CDC couldn’t tell how these people were getting infected until a few people came forward and admitted that they were cannabis users. And then the CDC checked with all the other patients, they all were cannabis users. So one product across multiple state lines affected hundreds of people’s health. Okay, the reason for this is because on the left-hand side here, you got what the typical practice is, which is a backyard, haphazard protocol or methodology, where usually a person is not in any type of isolated environment, maybe using gloves, not using a mask, maybe using a hairnet, maybe they’re perspiring, they’re breathing on the product, and they’re transferring pathogens onto the product that will go to people, in the case of medical cannabis, who are very sick with like epilepsy or cancer and don’t have to immune system to fight off the infection like e.coli, salmonella, mycotoxins. Any of those issues come up and they’re really going to start to see backlash on the legalization of cannabis. So they need to move to more of an industrialized pharmaceutical methodology, where the chemicals that are used to make their medications are isolated away from the environment and away from human contact So no possible vectors for pathogen contamination. Okay so this is our solution for how we’re going to do that. On the left hand side here you have only the growing section of our unit. This is a panel system, so we have six panels, we have a centralized light and a robotic arm that’s loaded up with with lidar and sensors so that we can seal off this entire area away from the environment, grow the plants, take analysis of the plant’s health, chemical production, everything that goes on in there. And it never gets touched by a human being. Never open to the environment. And when we harvest, we are able to harvest the plants and isolate it through the nutrient channel which is underneath the unit, thereby never touches the environment until the point at which you break open the blister pack and consume a pill with cannabis oil or some other product. On the right hand side is our nearest competitor, the Leaf. But that’s a consumer product. Ours is an industrialized, commercialized unit. Okay so this is a graph that Forbes magazine printed in 2016 that shows the compounded annual growth rate for the cannabis industry over the next seven years In 2018, they expect to finish around 15 billion dollars worth and at 2021 they should be nearly 30 billion dollars in market value. That’s nearly double in just three years. So how are they going to move such a big industry to being safe, clean, and secure? So this is our unit on the left, and as you can see we use a vertical growing methodology We’re equal to – and this is a 2×4 space Their entire unit is a 4×4, 4 foot by 4 foot cubic unit. They can grow, at most, two plants in that space. We can double that in just a 2×4 panel. And we have six panels. So that’s 24 units. We can do nearly 10 – 12 times the efficiency This is an image of our full unit with a computerized processing dome, the grow area, and the solution vessel on the bottom. And this is how we propose the cannabis industry moves to a more industrialized pharmaceutical methodology Thank you Should we win, we hope that the Vert System can compete with the leaf. Thank you Okay Ame number one, congratulations for finishing on time I think that’s the first time you’ve ever done that Last year I finished early, remember? No I don’t remember Okay, so my question is, you cite a Salmonella outbreak in 1984? Yes Is there anything more recent than that? That how many – I mean, how prevalent is this? So I came up with 72 articles and I crunched it all down to the most impact-full one. So if I go back to this slide, these three articles, I chose them because California is the biggest state where recreational cannabis is being utilized and that is an article produced with the state’s own

head lab facilities talking about the contamination and how wide spread it is This one was also in California, another issue – what year though? Yeah these are all recent. And even the one that talks about 1984 outbreak, the thing is, this is a 2012 article. I think that’s 2012. I can’t see Okay, I guess what my point is, is I’d just like to see a bigger problem. Because when you lead off with 1984, I was like okay, well I’m not sure how big a problem it is. But I know that the whole cleanliness and you know, the bunny suits and everything are important with growing. Particularly medical marijuana. So you know, I believe that that is an issue, but I guess my question becomes, recreational is one thing, medical is another thing. It’s two different markets in my mind Particularly when you have, you know, weakening immune systems as you were talking about, the medical thing has to be medical grade, if you will. So I know that in the farms that they’re growing, they are very very cautious of who has access, you know, how they’re dressed, etc. So are you saying that that’s not regulated? No it’s regulated, so they are required to test the samples before putting it on the shelves in the pharmacy. So as you know, I had Tanya Johnson as my previous business coach, and she worked for NOAH Botanical So I’ve been working very closely with her in developing the protocols and approaches. Like she informed on the process like, do we really have to isolate this away from people? Can we not, you know, just suit them up like in the bunny suits, allow them to handle the product and be able to do it that way? Like open the cabinets. And she lost, I think it was a four million dollar worth crop due to one fungal infection from personally brought spores in. They have a clean room, they have the double door, they had positive pressure, everything They don’t know if it came in on the person’s skin or hair, but it cost them a lot of money