2021 Organically Changing The Building Materials Industry - MOXY OID
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Organically Changing The Building Materials Industry Clean Tech New Material Green WHITEPAPER 2021 MOXY OID Copyright 2021 CERLOS Inc. All rights reserved
TABLE OF CONTENTS DISCLAIMER_____________________________________________________________________________ 4 IMPORTANT NOTICE_____________________________________________________________________ 5 INTRODUCTION__________________________________________________________________________ 6 EXECUTIVE SUMMARY_______________________________________________________________________________ 7 OUR VISION AND VALUE PROPOSITION______________________________________________________________ 9 OBJECTIVES_________________________________________________________________________________________ 10 PROBLEMS AND SOLUTION______________________________________________________________ 11 PROBLEMS WITH EXISTING MATERIALS____________________________________________________________ 13 MOXY OID DELIVERS SOLUTIONS____________________________________________________________________ 16 MATERIAL INPUT INGREDIENTS_____________________________________________________________________ 17 SOLUTION IS CERLOS________________________________________________________________________________ 18 COMPANY AND TECHNOLOGY DEVELOPMENT HISTORY_________________________________ 19 PRODUCT_______________________________________________________________________________ 22 MANUFACTURING___________________________________________________________________________________ 25 INGREDIENTS________________________________________________________________________________________ 27 CERLOS ATTRIBUTES________________________________________________________________________________ 28 PRODUCT CHARACTERISTICS_______________________________________________________________________ 29 MARKET ANALYSIS______________________________________________________________________ 30 SUMMARY____________________________________________________________________________________________ 32 GLOBAL MARKET SIZE FOR SIDING/CLADDING, ROOFING AND PANELS____________________________ 33 SIDING/CLADDING - MARKETING ENTRY PRODUCT_________________________________________________ 34 EVOLUTION OF SIDING/CLADDING PRODUCTS______________________________________________________ 35 COMPETITION__________________________________________________________________________ 36 SAINT-GOBAIN’S CERTAINTEED_____________________________________________________________________ 37 LP’S CANEXEL_______________________________________________________________________________________ 38 JAMES HARDIE FIBER CEMENT _____________________________________________________________________ 39 COMPETITIVE EDGE_________________________________________________________________________________ 40 WHITEPAPER 2021 MOXY OID 2 Copyright 2021CERLOS Inc. All rights reserved
MARKET STRATEGY_____________________________________________________________________ 41 CERLOS CERTIFIED REPRESENTATIVE PROGRAM___________________________________________________ 42 ONLINE STRATEGY___________________________________________________________________________________ 44 PARTNERSHIPS_________________________________________________________________________ 45 FINANCIALS_____________________________________________________________________________ 47 7 YE AR SALES FORECAST AND POTENTIAL UPSIDE_______________________________________________ 55 TEAM___________________________________________________________________________________ 56 FAQ_____________________________________________________________________________________ 60 WHITEPAPER 2021 MOXY OID 3 Copyright 2021CERLOS Inc. All rights reserved
Except where specifically indicated, the statements and information set forth in this Whitepaper are not intended to recite current or historical facts, and constitute forward looking statements. Forward-looking statements may include the words “may,” “will,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan” or other words or expressions of similar meaning. These forward looking statements are based on the current beliefs, plans, objectives, goals, expectations, anticipations and/or intentions of MOXY OID with respect to future events. Although MOXY OID believes that the expectations reflected in the forward looking statements are reasonable, MOXY OID cannot guarantee the successful establishment or operation of its systems and business or any future results, level of activity, performance or achievements. Many factors discussed in this Whitepaper or otherwise affecting the matters discussed herein, some or all of which ma y be currently unknown to MOXY OID or beyond MOXY OID’s control, will be important in determining the ability of MOXY OID to establish and operate its systems and business. Consequently, actual results may differ materially from those that might be anticipated from the statements and information set forth herein. In light of these and other uncertainties, the statements and information set forth in this Whitepaper are for informational purposes only, should not be relied upon in making any purchase or other decision, are subject to change, and are not intended to establish or indicate any representation, warranty, commitment, undertaking, promise or contract made on the part of MOXY OID to any person. MOXY OID does not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 4
IMPORTANT NOTICE Recipients of this White Paper are mandated to read the Appendix-1 before proceeding further. It details the Important Notice about this document including the notices to the residents of various countries. WHITEPAPER 2021 MOXY OID 5 Copyright 2021CERLOS Inc. All rights reserved
INTRODUCTION EXECUTIVE SUMMARY MOXY OID is set to fundamentally change the near trillion-dollar building materials market with its Trade Secret - sustainable and ultra-high- performance products branded as CERLOS. Our CERLOS products have the following qualities; Fire-resistant, achieving a Class A fire rating. Termite, insect, rodent and bird resistant. Mold resistant. Water-resistant and all-weather stable, won’t shrink or swell. It can be cut, machined, drilled, and otherwise worked in the field. It can be molded to almost any shape in manufacturing. MOXY OID is headquartered in Vancouver, BC, Canada, and utilizes proprietary technology to address a real need in the Global building material marketplace. The company intends to manufacture highly marketable building products and is expecting to reach annual sales of USD$634 million by the seventh year of operation. In 2016, USD$28.9 billion in damages were caused by building fires, insects like termites and floodings, when most of the losses were preventable. Meanwhile, construction materials around the world are not recyclable at the end of their lifecycle and deemed hazardous waste. Every day 80,000 ACRES of forests disappear either form wildfires or through logging to create wood products and building materials. MOXY OID answers the markets’ demand for innovative and sustainable building materials. The composition and properties of CERLOS products contribute to the higher profitability of MOXY OID while being sustainable and environmentally friendly. CERLOS can be described as a new, engineered wood product utilizing 100% natural ingredients with no chemical additives, unprecedented aesthetic possibilities, and excellent handling characteristics. CERLOS products have a unique advantage over competing, traditional products by the unlimited supply/origin of the raw materials used in its manufacturing. Furthermore, the combination of its properties, and the fact that at the end of each cycle use, the product can be recycled (cradle to cradle). MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 7
INTRODUCTION EXECUTIVE SUMMARY In addition, in almost all cases CERLOS products are superior in performance to comparable products at a price point equal to or less expensive than their comparable. CERLOS products are made in an environmentally responsible way. Our proprietary, low-cost, low-energy process converts wood fibers and agricultural residues into high-performance building products for green building. MOXY OID is at a pivotal point, shifting from $22.5 million in R&D to an operating profitable company by commencing manufacturing of its market entry product, CERLOS Siding/Cladding. MOXY OID’s first High capacity manufacturing facility will be located in the Pacific Northwest, in North America to meet the demand for CERLOS products. Moxy OID will disrupt the US$320bn Building Material market starting with their first high capacity manufacturing facility in the Pacific Northwest, in North America. This facility will utilize their breakthrough patentable engineering solution to mineralize plant and tree scraps into a superior building material, CERLOS. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 8
INTRODUCTION OUR VISION AND VALUE PROPOSITION VISION MOXY OID will become a global supplier of sustainable building products, initially accelerating High-Capacity manufacturing operations in North America, followed by Europe, Latin America, and Asia-Pacific. MOXY OID’s market launch product line will be siding/cladding/fascia, followed by roofing products, and then panel boards, displacing competitive, yet inferior, plywood, oriented strand board (OSB), mediumand high-density fiberboard (MDF/HDF) and other engineered wood, fiber cement, plastic MgO boards, and other composite products including drywall. VALUE PROPOSITION To improve the quality of life physically, financially, and environmentally by providing a cost- effective eco-friendly building material that is fire, mold, rot, and insect resistant. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 9
INTRODUCTION OBJECTIVES MOXY OID’S OBJECTIVES ARE: 1. Patent applications. 2. Select a site for establishing a high capacity manufacturing facility in the Pacific Northwest. The site should have rail and road transport access. The facility should be 60,000 to 80,000 square feet with a surrounding area of 10 to 20 acres to accommodate materials in and out. Initially, we prefer to lease the property and buildings. 3. Using traditional media to market CERLOS products to the building material community. 4. Use influencer marketing to bring CERLOS products to the attention of home and building owners. 5. Introduce the CERLOS Certified Representatives program with the intent to create a strong regional and national salesforce that is trained to use and promote CERLOS products. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 10
PROBLEMS AND SOLUTION WHITEPAPER 2021 MOXY OID 11 Copyright 2021CERLOS Inc. All rights reserved
PROBLEMS AND SOLUTION There are severe ecological and economic problems associated with the existing building materials in terms of their properties, input ingredients that are used to manufacture them, the manufacturing process itself, and their environmental impact. MOXY OID tackled and solved these problems one by one in the span of 18 years of research and development, with more than $22 million spent. The result is our revolutionary building material CERLOS. CERLOS products are fire, insects/bird/rodent, rot and mold resistant, water and all-weather stable (will not shrink or swell), or decay or are influenced by environmental hazards. MOXY OID manufactures superior performance, sustainable, energy efficient, and cost-effective building materials that install easily with conventional carpentry tools. MOXY OID’s manufacturing processes are environmentally responsible and petroleum-free, addressing market needs for building “green.” Their products are designed to meet the most stringent testing requirements of the industry and demonstrate superior performance in all key attributes. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 12
PROBLEMS AND SOLUTION PROBLEMS WITH EXISTING MATERIALS The building materials industry suffers from technology stagnation, and not a lot has happened in building materials over the past 50 years. One may remember OSB (oriented strand board) some 30 years ago was flaky and fell apart easily. Today, it does not. Why? Well, one of the few things that have improved with engineered wood materials is the resins (glue). However, their unfavorable characteristics, such as being easily flammable, prone to shrink, swell, rot when wet, and easily damaged by insects, rodents, and birds remain constant. Other products like fiber cement have been developed, but being 85% to 90% by volume Portland cement, they are cement, act like it, and require cement tools. Fiber cement products are brittle and are adversely affected by moisture, freeze/thaw. Cement is corrosive on metals and requires non- corrosive, galvanized or stainless steel cladding nails. But if not for the reasons referenced above, fiber cement contains silica dust, a known carcinogen (cancer-causing agent). The health and welfare of the installers who are rarely seen taking any precautions from the silica dust are at great risk of developing lung cancer when working with it. Like fiber cement, magnesium boards (mag-board or MgO board) perform better than fiber cement but tend to be a little more expensive than fiber cement, and is a hygroscopic product, known to produce a problem named “crying boards” when applied in a very humid climate. Newer plastic products have also been developed, like Wood-Plastic Composites (WPCs), that are produced by thoroughly mixing ground wood particles and heated thermoplastic resin. Sustainable/ Eco- Friendly? Certainly not in our view. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 13
PROBLEMS AND SOLUTION PROBLEMS WITH EXISTING MATERIALS SHORTCOMINGS OF CURRENT BUILDING MATERIALS, COSTS BILLIONS OF DOLLARS ANNUALLY TO PROPERTY OWNERS. ADDRESSING THE US MARKET ALONE: $23 Billion Fire Damage USA Source: NFPA, Michael J. Karter, Sept, 2016 $5 Billion Termite Damage USA Source: USDA- Forest Service, 2015 $2.5 Billion Water Damage USA Source: 2011 ACE Insurance Underwriters study MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 14
PROBLEMS AND SOLUTION PROBLEMS WITH EXISTING MATERIALS BUT IT’S NOT JUST DOLLARS. Home fire occurs every 88 seconds. Fire death every 2 hours and 34 minutes. ‘Flammable cladding, installed on Grenfell Tower in a recent renovation, is thought to have contributed to the rapid spread of the fire.’ 1 ‘In 2017, there were 1,319,500 fires reported in the United States. These fires caused 3,400 civilian deaths.2 1 “How the tragedy unfolded at Grenfell Tower - BBC News.” 18 May. 2018, https://www.bbc.co.uk/news/uk-england-london-40272168 Accessed 27 Sept. 2019. 2 “U.S. civilian fire deaths 1977-2017 | Statista.” https://www.statista.com/statistics/376703/us-civilian-fire- deaths/ Accessed 27 Sept. 2019. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 15
PROBLEMS AND SOLUTION MOXY OID DELIVERS SOLUTIONS CERLOS PRODUCTS ARE: FIRE MOLD RESISTANT RESISTANT TERMITE WATER RESISTANT STABLE ROT CERL S COMPOSITES WEATHER RESISTANT RESISTANT EASY TO GUN CUT NAILABLE SUSTAINABLE MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 16
PROBLEMS AND SOLUTION PROBLEMS WITH EXISTING MATERIAL INPUT INGREDIENTS 80,000 ACRES OF FORESTS DISAPPEAR FROM THE EARTH EVERY DAY!3 Through July 2019, over 7,200 square miles of the Brazilian rainforest has burned - an aggregated area nearly the size of New Jersey.4 Forests destroyed through burning, release carbon into the atmosphere as carbon dioxide, a climate-changing greenhouse gas. Forests are destroyed for another reason as well, to produce raw materials for energy, consumer paper products, housing, and construction. 3 “Tree Facts | One Tree Planted.” https://onetreeplanted.org/pages/tree-facts Accessed 27 Sep. 2019. 4 “Map: See how much of the Amazon forest is burning, how it ....” 29 August 2019 https://www.nationalgeographic.com/ environment/2019/08/ amazon-fires-cause-deforestation-graphic-map/ Accessed 30 Sep. 2019. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 17
PROBLEMS AND SOLUTION SOLUTION IS CERLOS SUSTAINABLE MATERIAL INPUT OUR PRIMARY INGREDIENT IS LIGNOCELLULOSIC FIBER. Lignocellulosic fiber is basically the cells of all living plants. Specifically, it refers to plant dry matter (biomass) which is the most abundantly available raw material on the Earth. https://en.wikipedia.org/wiki/Lignocellulosic_biomass Our primary ingredient therefore, can come from straw, corn stalks, or from any agricultural, or tree scraps. CERLOS can replace wood construction and housing materials that require tree logs in enormous quantities, thus eliminating the need for cutting down forests. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 18
COMPANY AND TECHNOLOGY DEVELOPMENT HISTORY WHITEPAPER 2021 MOXY OID 19 Copyright 2021CERLOS Inc. All rights reserved
COMPANY AND TECHNOLOGY DEVELOPMENT HISTORY Following 18+ years of R&D and approximately $22M in R&D investments, a combination of ingredients and procedures resulted in the remarkable new building material, CERLOS. It all started with Alan Heywood in 1985, co-founder of MOXY OID and inventor of CERLOS. The technology and process knowledge were developed from a combination of several intellectual properties. The primary discoveries that triggered the start of the search for a new composite building material were published in the 1960s and ’70s. Mr. D.A. Alan Heywood, working off those publications tenaciously performed in-depth research, development, and testing of ingredients, formulas, and processes. Alan purchased a patent from Dr. Laszlo Paszner and formed C-Max Technologies International Inc. The patent had good prospects but failed in every attempt to produce any quality samples. Research and development continued for 16 years until 2002 with $8+ million of funding and $4 million in-kind contributions as testing equipment and a laboratory by MacMillan Bloedel5 between 1994 and 1997. Good fortune comes to those prepared to work to find solutions, and ultimately, solutions were found. Alan develops CERLOS after numerous testing of formulations and many years of research. 5 “MacMillan Bloedel - Wikipedia.” https://en.wikipedia.org/wiki/MacMillan_Bloedel. Accessed 30 Sep. 2019. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 20
COMPANY AND TECHNOLOGY DEVELOPMENT HISTORY In the following years, $1 million spent on research and design, a preliminary manufacturing line was prepared as a result of the engagement with Corvallis Tool Company of Oregon, OR 97370. Corvallis specializes in the design, engineering, manufacturing, installation supervision and start-up of custom industrial machinery and control systems for a wide variety of wood product manufacturers. In January 2012 and with $2 million in funding, MOXY OID was incorporated to aid in the management and commercialization of the technology. A $7 million, four (4) year design, engineering, and development program was commissioned between 2012 and 2017. The program resulted in several proprietary processing steps with unique equipment for a large-scale Pilot Plant production facility and validated commercial quality and quantity for CERLOS production. The Pilot Plant was built in Holland with VDL Enabling Technologies Group, an engineering and equipment manufacturing firm. This extensive information will be used in the High-Volume manufacturing line. For the period of 2018 to 2019, MOXY OID is in preparation and development of websites, corporate documents, legal documents, and requirements for the funding of a High- Volume manufacturing facility. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 21
PRODUCT WHITEPAPER 2021 MOXY OID 22 Copyright 2021CERLOS Inc. All rights reserved
PRODUCT CERLOS IS ORGANICALLY CHANGING THE BUILDING MATERIALS INDUSTRY. Cerlos has been successfully tested in a vast array of different forms of structural and value-added building products. In each and every case, improvements were made in economics and end-product quality. CERLOS products demonstrate many profound and dramatic characteristic improvements over the products that are currently in use. A product having the improved characteristics of this new technology presents a worldwide opportunity, and to date, no evidence of any other company or research organization proclaims to have discovered anything close to this new material. The ratios of the ingredients within the blends or formulae vary by design according to the required end-product specifications. These improved characteristics are achieved by a natural, environmental process called Mineralization, which is when organic fiber is strengthened as the porous gaps in the fibers or cells are filled in. This process can occur naturally under certain conditions resulting into petrified wood or fossils and can also occur biologically with the formation of our bones, egg shells, teeth or coral. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 23
PRODUCT COMMERCIAL USE OF MINERALIZATION HAS NEVER BEEN ACHIEVED SO FAR… UNTIL MOXY INVENTED CERLOS MOXY’s breakthrough is the development of a controlled mineralization process of plants and trees that provides an inexpensive material strengthened through a natural process. Part of the breakthrough is the manufacturing process itself. Examples of Natural or Biological Mineralization: Teeth Teeth are the mineralized enamel and dentine cells. Petrified Wood Petrified wood is a common mineralization of wood. Shells Any exoskeleton is the result of a mineralized process. Fossils Fossils are often the mineralization of bones. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 24
PRODUCT MANUFACTURING A total of $7 million dollars in developing a proprietary manufacturing process was completed in a Pilot plant in Holland with VDL Enabling Technologies Group. The main benefits of the proprietary MOXY OID process during manufacturing are lowpressure forming and rapid low-energy curing. Additional benefits such as zero waste and zero discharge are inherent in this safe manufacturing process. Economically, this fast curing, continuous low-pressure process system requires a very low capital investment per manufacturing line when compared to all other competitive manufacturing facilities. It is also important to note that MOXY OID’s unique proprietary processes have the flexibility in manufacturing to make more than just solid flat products. The benefit of this is that by altering density in products a lower manufacturing cost can be achieved by reducing the input ingredients and also grant the flexibility to create almost every construction product with CERLOS. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 25
PRODUCT MANUFACTURING THESE ARE SOME EXAMPLES OF PRODUCTS THAT CERLOS CAN BE SHAPED INTO SIDING/CLADDING ROOFING TILE SHEATING I BEAMS LAMINATES PIPE POLES TRIM LAMINATED STRUCTURES BLOCKS POSTS MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 26
PRODUCT INGREDIENTS CERLOS material can eliminate the need to cut down forests, remarkably, there are only three commonly available ingredients used to make CERLOS products. The primary ingredient is lignocellulosic fiber, which is basically every living plant’s fiber. Therefore, the fiber can come from agricultural or tree scraps and other organic material sources, even those sources currently considered unusable in the production of building materials. The second ingredient is a commonly available, inexpensive, non-toxic mineral. The mineral is available worldwide and is used in food supplements and so is very eco-friendly. The last ingredient is a commonly available non-toxic liquid. This liquid is used in agricultural applications, is inexpensive, and easily obtained in very large quantities. CERLOS products are ecologically positive and 100% recyclable. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 27
PRODUCT CERLOS ATTRIBUTES Extensive sample testing of the CERLOS products has been carried out. The product testing covered a myriad of tests for weather-ability, flame spread and combustion, modulus of elasticity, rupture, hardness and tension, and were performed on thousands of samples. By comparison, CERLOS products combine the best attributes of hydrated cement (Portland cement) products like fire resistance and compression strength, with the best characteristics of composite wood products having flexural or bending capabilities. We sometimes use the term “engineered wood” to describe CERLOS, although this description fails to adequately express the unique opportunities CERLOS brings to the building world. We will introduce it into the marketplace using products that will be familiar to architects and builders so that they will initially understand ways in which CERLOS can be used in preference to current choices. But it is as much a substitute for wood itself, as it is for engineered wood, fiber cement boards, plastics, or other composites. In fact, we believe that CERLOS can be used in so many ways that it will fundamentally change the building materials marketplace. Unlike wood-based products, which may have up to 20.0 to 25.0% variations in their engineered characteristics at production, CERLOS products have only 0.5 to 3.0% variation. This more precise characteristic dramatically reduces the need to overengineer which reduces costs. Additionally, engineered wood products have poor moisture stability with shrink and swelling characteristics of 15.0 to 20.0% making the products undesirable for many applications. Any extended exposure to moisture will destroy any of these wood products. CERLOS products, however, maintain a low coefficient of 0.5 to 1.0% shrink and swell. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 28
PRODUCT PRODUCT CHARACTERISTICS CERLOS products are primarily created to address the shortcomings of currently available wood composite products and other products such as fiber cement and plastic used primarily in the building materials industry. CERLOS products have competitive advantages over virtually all of its competitive building materials in performance, price point, and being environmentally friendly from start to finish. MOLD RESISTANT They are also resistant to all types of mold, mildew, and fungus. TERMITE RESISTANT Resistant to pests such as termites, rodents, and insects. FIRE RESISTANT A further milestone advantage is our excellent fire performance. This mineralized fiber product has excellent temperature transfer resistance. CERLOS products are not flammable, and in full-scale tests, we achieved a Class A spread of flame rating and enjoyed an excellent rating in all “destruction by fire” tests. WATER STABLE Our moisture stability is another advantage over the most competitive products. EASY TO CUT CERLOS products can be sawn, nailed, glued, sanded, or painted using standard carpentry tools. WEATHER RESISTANT Water and all-weather stable (will not shrink or swell), or decay or be influenced by environmental hazards. SUSTAINABLE CERLOS products thanks to their proprietary manufacturing process and natural ingredients are ecologically positive and 100% recyclable. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 29
MARKET ANALYSIS WHITEPAPER 2021 MOXY OID 30 Copyright 2021CERLOS Inc. All rights reserved
MARKET ANALYSIS The construction industry is the one that shapes the world around us. As humans, we have 4 basic needs, air, water, food and shelter. We are constantly building or modifying the environment around us to make it more habitable. Whether you are deep into a desert, jungle, or in the middle of a metropolitan city, everywhere you look you will see some type of human-made construction. GLOBAL CONSTRUCTION OUTPUT IS EXPECTED TO RISE TO US$12.9 TRILLION IN 2022, UP FROM US$10.8 TRILLION IN 2017. 6 6 “Global Construction Outlook to 2022: Q3 2018 Update ....” https://www.globaldata.com/store/report/gdcn0010go--global-construction-outlook-to-2022-q3-2018-update/ Accessed 2 Oct. 2019 GLOBAL CONSTRUCTION MATERIALS MARKET PROJECTED TO REACH US$1 TRILLION BY 2020.7 7 “Construction Materials Market Trends - Global Industry Analysts.” https://www.strategyr.com/MarketResearch/Construction_Materials_Market_Trends.asp Accessed 2 Oct. 2019. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 31
MARKET ANALYSIS SUMMARY A US$1 TRILLION addressable construction materials market is an enormous opportunity for a product with the characteristics of CERLOS. This report8 presents historical demand data from the years 2004, 2009 and 2014 and forecasts for 2019. The companies profiled include James Hardie Building Products, Elementia (Mexico) subsidiaries Plycem USA and Allura, the Nichiha USA subsidiary of Nichiha (Japan) and GAF Materials. 8 “Construction Materials Market Trends - Global Industry Analysts.” https://www.strategyr.com/MarketResearch/Construction_ Materials_Market_Trends.asp. Accessed 2 Oct. 2019. US demand for fiber cement products is forecast to grow 6.0 percent annually through 2019, with annual siding/cladding market valued at $18 billion. Rebounding construction expenditures, specifically in new housing construction, will fortify demand. Growth in fiber cement siding/cladding used in single-family housing will be supported by fiber cement’s high levels of market penetration in the South and West, the US regions that will experience the strongest levels of growth in population and thus housing demand grows. The residential market is the dominant market share and new housing will drive that demand through 2019. The residential market makes up the majority of fiber cement demand. While new housing demand for fiber cement products will increase at the fastest pace through 2019, residential improvement and repair will continue to account for a larger portion of residential demand. Sales of existing housing will generate demand for fiber cement products as homeowners look to increase the values of their properties before going to market. Even when properties are not changing hands, fiber cement products will make inroads in re-siding/cladding and exterior trim applications. Non-residential segment to gain market share while exterior fiber cement products aesthetic properties make them well suited for residential markets, the material has seen increased usage in the non-residential market in recent years, particularly for fiber cement backerboard. Fiber cement product demand in the non-residential market is forecast to grow 5.8 percent annually through 2019 to 710 million square feet. The gains will be driven primarily by rebounding nonresidential building construction demand. Additionally, fiber cement siding/cladding and exterior trim will benefit from a design trend in commercial buildings that favors a more authentic, exposed-wood exterior. Fiber cement product manufacturers have responded to this demand by developing new wood-like products aimed at commercial buildings. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 32
MARKET ANALYSIS GLOBAL MARKET SIZE FOR SIDING/ CLADDING, ROOFING AND PANELS Our market entry approach begins with introducing our first CERLOS siding/cladding product, followed by CERLOS roofing and, finally, CERLOS panels. We will put our focus in these products, in this priority. Our direction will start with the Siding/Cladding market then move to Roofing and panels. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 33
MARKET ANALYSIS SIDING/CLADDING - MARKETING ENTRY PRODUCT MOXY OID, based on our revolutionary proprietary technology, has started to develop an international market position in high performance, environmentally- sound building materials with its first product - Siding/Claddings. After we establish our position in the market we will move forward with the introduction of roofing products and then panel products. We are preparing to finance and build our High-Capacity manufacturing facility, where we will improve upon the efficiency and capacity of the pilot line to produce and introduce CERLOS starting in the North American market. Siding/Cladding is the “lowest hanging fruit.” for product introduction and the marketplace is huge, according to the Freedonia Group 2017 Forecast, the Global Siding/Cladding market was $89 Billion in 2017, $18 Billion of that in North America. The global siding/cladding market is expected to reach an estimated $102.0 billion by 2023, with a CAGR of 4.3% from 2018 to 2023.9 Siding/Cladding requires very few regulatory certifications as it is a non-structural decorative product. The market is relatively fragmented with fiber cement as the fastest growing siding/cladding product due to its visual likeness to wood yet is low maintenance, and fire resistance. Many “Homes” magazines are claiming that this type of siding/cladding will reward homeowners with a higher resale value than any other current siding/cladding. 9 “The global siding market is expected to reach an estimated ....” 4 Feb. 2019 https://www.prnewswire.com/news-releases/the-global-siding-market-is- expected-to-reach-anestimated102-0-billion-by-2023-with-a-cagr-of- 4-3-from- 2018-to-2023--300789108.html. Accessed 2 Oct. 2019. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 34
MARKET ANALYSIS EVOLUTION OF SIDING/CLADDING PRODUCTS Siding/Cladding has a long history with many materials once being the main for this specific part of construction. This is the history of the last centur y’s siding/cladding materials. Wood was once the leading siding/cladding material, but wood has a tendency to deteriorate, causing maintenance problems, and as wood prices rose, nearly all the siding/cladding market converted to non-wood products. Asbestos in the 1920’s was the first practical alternative to wood siding/cladding. It would not burn or get eaten by termites or other insects, and it was a harder alternative to wood. In the 1930’s, steel was being used for siding/cladding, and it had the same advantages as aluminum. But steel siding/cladding is heavy and difficult for installers to work with, expensive to ship, conducts electricity, and is susceptible to rusting. Aluminum siding/cladding in the 1940’s, caught the attention because it is lightweight and easy to use. On the other hand it was easy to dent, and because aluminum siding/ cladding is painted, a scratch would expose the raw aluminum underneath. Aluminum production is energy-intensive and expensive in the 1970’s. In the same decade and early 50’s, Asphalt siding/cladding became a popular siding/ cladding material in low-cost development homes. Asphalt siding/cladding resisted weathering and was widely available in imitation and stone. Vinyl or PVC because a popular siding/cladding material in the late 1950’s and early 1960’s, but because of problems with expansion and contraction, discoloration and brittleness, it eventually fell out of popularity. In the 1960’s it was Hardboard the most widely used siding/cladding material. Hardboard is generally made of wood chips and epoxy resin and was sold primed and painted on site. Manufacturers of hardboard became the subject of several class- action lawsuits the products were suffering from moisture absorption, causing them to swell, peel, crumble and develop fungus. Since its introduction in the 1980’s Fiber Cement siding/cladding is a relative newcomer, considering the fact that fiber cement is being used as a building material in Europe for more than a century now. It looks like real wood, but it is brittle and heavy as it is composed of Portland cement, pulp fiber, sand, and special additives. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 35
COMPETITION WHITEPAPER 2021 MOXY OID 36 Copyright 2021CERLOS Inc. All rights reserved
COMPETITION SAINT-GOBAIN’S CERTAINTEED As a new entry into the siding/cladding market, MOXY OID will face old players and established competitors. Big companies have almost all of the Siding/Cladding market share like LP with its engineered wood prefinished siding/cladding, Saint-Gobain with its CertainTeed’s vinyl siding/ cladding, and Jamie Hardie with its fiber cement siding/cladding, but as you can see below they are all inferior to CERLOS characteristics. Below we analyze each and every one of these big competitors in comparison to CERLOS. CertainTeed Corporation is a North American manufacturer, building materials for both commercial and residential construction and is a wholly-owned subsidiary of Saint-Gobain SA, based in Paris.10 CertainTeed’s vinyl siding/cladding is NOT class A fire rated; on the contrary, its petroleum-derived, which makes it an effective fire accelerant. CertainTeed’s siding/cladding warps under certain conditions and has poor shadow lines. CERLOS, on the other hand, is a class A rated fire-resistant material, has superior weatherability, UV - stability and deeper shadow lines. 10 “CertainTeed - Wikipedia.” https://en.wikipedia.org/wiki/CertainTeed. Accessed 7 Oct. 2019. VINYL SLIDING VINYL SLIDING COMPETITION DISADVANTAGES ADVANTAGE LIST ANALYSIS Petroleum-derived, fire accelerant Insect/mold resistant Not Class A fire rated Class A fire rated Warps Superior weatherability Poor “shadow” lines Deepest “shadow” lines Difficult to mach if damaged UV - Stability MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 37
COMPETITION LP’S CANEXEL LP is an American building materials manufacturer known for producing oriented strand board (OSB) panels and engineered wood building products.11 It’s CanExel prefinished siding/cladding is subject to insect and rodent damage, requires special coating, and warps from water exposure. Also, it’s not class A fire rated because of its petroleum-based resins. CERLOS, on the contrary, is insect and mold resistant, class A fire rated, durable with no toxic emissions, water-stable with superior weatherability, and can be easily installed and coated with normal coating. 11 “Louisiana-Pacific - Wikipedia.” https://en.wikipedia.org/wiki/Louisiana-Pacific . Accessed 7 Oct. 2019 ENGINEERED WOOD SIDING ENGINEERED WOOD SIDING COMPETITION DISADVANTAGES ADVANTAGE LIST ANALYSIS Subject to insect/mold damage Insect/mold resistant Petroleum-based resins Durable & no toxic emissions Not Class A fire rated Class A fire rated Warps from water, weathering Superior weatherability Special coatings needed Ease of coating and installations Water - stable MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 38
COMPETITION JAMES HARDIE FIBER CEMENT James Hardie Fiber Cement James Hardie Industries PLC is an industrial building materials company headquartered in Ireland and specializes in fiber cement products.12 James Hardie’s fiber cement siding/cladding almost acts like normal cement, it cannot be stained, it’s fragile, it warps, and it cracks. It also requires galvanized fasteners and special tools to work with. On top of everything, Fiber cement contains Silica dust, something that, James Hardie, SAFETY DATA SHEET, states that when inhaled it may cause cancer. CERLOS products DO NOT contain any toxic dust, and it is actually environmentally positive. As opposed to fiber cement, it is mold resistant, water-stable, easily stained and painted and can be worked easily with standard carpentry tools. 12 “James Hardie Industries - Wikipedia.” https://en.wikipedia.org/wiki/James_Hardie_Industries . Accessed 7 Oct. 2019 FIBER CEMENT SIDING FIBER CEMENT SIDING COMPETITION DISADVANTAGES ADVANTAGE LIST ANALYSIS Fragile, warps, cracks Mold resistant Needs predrill. special tools Water - stable Cannot be Stained Standard carpentry tools Requires galvanized fasteners Easily stained, painted Silica dust a carcinogen Through color available James Hardie SAFETY DATA SHEET No toxic dust emissions “May cause cancer if dust from product is inhaled” MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 39
COMPETITION COMPETITIVE EDGE MOXY OID’S COMPETITIVE EDGE IS COMPRISED OF SEVERAL FACTORS: Our Trade secret material CERLOS is superior in Safer and more environmentally friendly performance to comparable products. manufacturing and ingredients. Manufacturing facilities cost 1/10 Manufacturing costs are less of that of competitors. than that of competitors. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 40
MARKET STRATEGY WHITEPAPER 2021 MOXY OID 41 Copyright 2021CERLOS Inc. All rights reserved
MARKET STRATEGY CERLOS CERTIFIED REPRESENTATIVE PROGRAM Word of mouth recommendations for a brand new product such as CERLOS lends itself best for market acceptance. Although most building owners and homeowners have an idea of what products they would like to integrate on their new home or during renovation, the contractor or builder they have entrusted the construction to normally will influence the materials used. Financially motivated and financially committed builders and contractors are the solution to a successful brand new product distribution in a controlled manner. MOXY OID has developed an innovative yet proven method of the new product to market through direct sales with the development of its CERLOS Certified Representative program. (CCR). Building materials have traditionally been distributed either from distributors to dealers or directly to dealers, then the dealers price and sell the products to contractors/builders. Contractors are constantly looking for new ways to generate profit without having to charge the building-owner additionally and using CERLOS does just that. A CCR can improve both their and their clients’ quality of life through safer homes and a cleaner environment using a superior product at a lower installed price compared to other standard building materials, all while enjoying increased profit margins. CCR program is an opportunity for contractors and builders alike to have access to this brand new, high-demand, and limited production proprietary building material for safer homes and a cleaner environment. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 42
MARKET STRATEGY CERLOS CERTIFIED REPRESENTATIVE PROGRAM THIS DISTRIBUTION MODEL OFFERS A LIST OF EXCLUSIVITY BENEFITS: Purchasing CERLOS directly at wholesale. CERLOS product and installation training. Listed and promoted on Website as a CCR. Sent warranty work. Sent referrals for CERLOS installations. Benefit from National advertising and ongoing support. Manage CERLOS Recycle Bins. Receive up to the first 8,000 Square feet of CERLOS at 100% discount. Lifetime 3% annual rebate on yearly purchases over 60,000 sq/ft. 10 COMPANIES HAVE ALREADY PAID MOXY TO BECOME A CCR AND MANY MORE HAVE EXPRESSED INTEREST TO BECOME ONE. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 43
MARKET STRATEGY ONLINE STRATEGY Website MOXY OID’s website will be the virtual business card and portfolio for the company. It will be the online home of our products where we showcase their superior characteristics and technical information and highlight the research that brought us here and current ongoing research that will bring us into the future. The key to the success of the website strategy is combining a very well- designed front end, with a back end capable of recording success stories and comments. Our website will also be the online home of our CCR’s where they will be able to order and purchase CERLOS products, track their performance and history and find marketing and promotion material. Social Media Influencer Marketing Over the last two decades, social media has become an integral part of people’s lives—and a crucial way for brands to reach new audiences. As numerous studies have documented, most people, particularly homeowners, are known to buy based on the conversation and recommendations of trusted friends, family and colleagues. Finding the people that influence their peers’ decisions where to shop and what to buy has long been viewed as the Holy Grail of marketing. Increasingly, online social media networks are being seen as venues for locating these influencers. As more users joined social media platforms like Facebook, Youtube, Instagram, Pinterest, Snapchat, and Twitter, many of them became content creators themselves, curating and crafting their own stories, photos, and videos for others to see. This is how social media influencers were born and quickly attracted the attention of marketers. Influencer marketing is when companies partner with influencers in order to increase brand awareness or conversions among a specific target audience. According to this study,13 the average earned media value per dollar spent on influencer marketing is $5,20. Earned media is publicity a firm gains from promotional efforts other than paid advertising. Earned media value is a monetary representation of this publicity. Businesses who understand influencer marketing gain impressive returns, up to $18 in earned media value for every dollar they spend on influencer marketing. This goes hand in hand with the CERLOS Certified Representative program and will complement the whole Go-Market-Strategy. 13 “The State of Influencer Marketing 2019 : Benchmark Report [+ ....” 28 May. 2019, https://influencermarketinghub.com/influencer-marketing-2019-benchmark-report/ Accessed 8 Oct. 2019. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 44
PARTNERSHIPS WHITEPAPER 2021 MOXY OID 45 Copyright 2021CERLOS Inc. All rights reserved
PARTNERSHIP MOXY OID have developed relationships with other big bulding materials manufacturing companies. Some of them officially expressed their interest in CERLOS products with Letters of Intent (LOI). Specifically, Kingspan Unidek B.V. a manufacturer of structural insulated panels (SIP’s) expressed its interest in researching the technical and economical applicability of CERLOS on its structural insulated panels. Upon the delivery of ‘proof of principle’, MOXY OID and Kingspan intend to negotiate a business relationship and a purchase agreement for CERLOS SipSkin panel boards. For reference Kingspan is a company founded in 1966, is headquarted in Ireland and has an annual revenue of $4.3 billion.14 HDM BV is a Dutch private company specializing in building affordable and net- zero buildings. HDM is also a manufacturer of shiplap siding/claddings, where it combines its proprietary Solidpaint with a special MDF substrate. They want to replace this MDF substrate with a material that is water and weather stable, has minimum reaction to fire, is more stable in terms of shrinking and swelling and has a better price/ performance ratio. HDM in a letter of intend, expressed its interest in its interest in becoming a CERLOS Certified Representative. VDL Technologies in a letter of support (LOS) expressed their confidence in our long-term cooperation, and that together with MOXY OID will be successful in bringing a CERLOS production line to the level of manufacturing sellable boards. VDL was founded in 1953, is headquartered in the Netherlands and has a revenue of $5 billion per year. MOXY OID has appointed Evergreen Engineering Inc. From Eugene Washington as its engineering partner. They combine a multi-disciplinary approach of engineering skills covering all the project phases from initial design, construction and field services to start of the production. (https://evergreenengineering.com/) OUR OTHER PARTNER 14 “ Structural Insulated Panel Technology | Kingspan | Great Britain.” https://www.kingspan.com/gb/en-gb/products/engineered-timber-systems/structural-insulated- panel-technology . Accessed 17 Oct. 2019. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 46
FINANCIALS WHITEPAPER 2021 MOXY OID 47 Copyright 2021CERLOS Inc. All rights reserved
FINANCIALS 7 YEAR SALES FORECAST THE SALES FORECAST SHOWS A CONSISTENT INCREASE IN SALES OVER THE NEXT SEVEN-YEAR PERIOD. FACTORS INCLUDE: ▶ Increasing brand awareness. ▶ Increasing recognition of superior product performance. ▶ Increasing awareness of health and environmentally friendly characteristics. ▶ Tightening government regulations concerning environmental and health issues. Production and sales will start 16 months after the beginning of setting up the manufacturing line and facilities. The net sales for year 2,3,4,5, 6 and 7 are $26 million, $61M, $151M, $305M, $440M and $634M respectively. MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 48
FINANCIALS 7 YEAR SALES FORECAST For comparison, James Hardie’s North America The important elements of the production sales for Fiber Cement in 2017 were $1.5 Billion forecast are shown in the Production Projections or 2,215.400,000 sq. ft. of finished product at the chart 6.6. Total production can increase in an price of $0.67 per square feet. exponential curve over the projected next “seven years.” The Company estimates a conservative Earnings before interest, tax, depreciation, and market share beginning for its market entry amortization (EBITDA) is a measure of a product CERLOS Siding/Cladding in only the U.S. company’s operating performance. Essentially, Market of 0.07% in year 1 of production to 2.03% it’s a way to evaluate a company’s performance in year four of production. without having to factor in financing decisions, accounting decisions or tax environments.15 MARKET SHARE Estimated EBITDA for year 2,3,4,5,6 and 7 of production is $9.3M $32.8M $86.6M $185.6M $271.5M and $404.9M respectively. 15 “Ebitda | Definition of Ebitda by Merriam-Webster.” 12 Sep. 2019, https://www.merriam-webster.com/dictionary/EBITDA . Accessed 8 Oct. 2019. The Company will operate its manufacturing facility, launch a go-to-market campaign and sales operations, hire employees, lease/ open a new office commensurate with expansion needs, YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 and expand electronic media capabilities. Additionally, revenues could be enjoyed by MOXY The Company has not budgeted for sale prices OID’s introduction in established territories of to increase and that material costs remain other products like CERLOS roofing tiles, which constant for the next five years. Although once is an even larger market place to siding/cladding market shares are attained, demand for CERLOS or numerous other products that CERLOS solves may increase and we may be able to increase in current product shortfalls. The Company will our sale price to fiber cement pricing. Additionally, also expand by geographical expansion we do expect input material costs to decrease throughout the USA/Canada, then Europe and taking into account the savings from purchasing Asia. This will enable the Company to keep in growing economic quantities. growing sales, keep up with demand and deliver MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 49
FINANCIALS INCOME STATEMENT INCOME CONSOLIDATED FINANCIAL Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 PROJECTIONS Net Sales 0 26,080,719 61,530,981 151,684,649 305,252,256 440,893,157 634,147,220 Cost of Goods Sold Input Ingredients 0 12,575,002 24,743,751 54,103,147 104,765,919 151,133,459 210,219,074 Freight in/out 0 3,026,258 5,954,748 13,020,280 25,212,612 36,371,267 50,590,612 Less: Ending 0 2,608,072 6,153,098 15,168,465 30,525,226 44,089,316 63,414,722 inventory Total Cost of Goods 0 12,993,188 20,738,662 51,954,962 99,453,305 143,415,411 197,394,964 Sold Gross Profit (Loss) 0 13,087,531 40,792,319 99,729,686 205,798,951 297,477,746 436,752,256 EXPENSES OPERATIONS Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Salaries & Wages 996,000 996,000 2,220,000 2,460,000 3,012,000 3,012,000 3,012,000 Office/Lab/ Warehouse & 84,000 84,000 84,000 84,000 84,000 84,000 84,000 utilities Telephone/ Internet hosting/ 8,400 8,400 8,400 8,400 8,400 8,400 8,400 network Travel 48,000 48,000 60,000 60,000 60,000 60,000 60,000 Office supplies 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Office equipment 2,400 2,000 2,000 2,000 2,000 2,000 2,000 purchase Vehicle expenses 24,000 24,000 48,000 72,000 72,000 72,000 72,000 Equipment - Purchase 0 0 0 0 0 0 0 (lab 300k) MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 50
FINANCIALS INCOME STATEMENT Equipment 45,000 455,857 1,309,914 2,973,029 5,017,585 6,618,942 7,366,242 - Lease Depreciation 240,000 477,750 697,207 896,754 1,071,891 1,231,824 1,434,459 Manufacturing 60,000 240,000 240,000 240,000 240,000 240,000 240,000 Facility (Plant) Energy 4,350 12,000 26,850 73,350 127,500 172,500 243,000 Plant Staff 60,000 904,750 2,075,000 4,494,900 8,521,300 11,962,200 16,678,500 Other 152,334 152,636 850,175 1,402,571 1,605,296 2,092,654 2,301,662 (Contingency) Total Direct 1,725,684 3,406,594 7,622,747 12,768,204 19,823,173 25,557,720 31,503,463 Expenses Professional Fees 16,500 49,000 60,000 60,000 60,000 60,000 60,000 Accounting 16,000 16,000 16,000 16,000 16,000 16,000 16,000 Legal 55,000 60,000 60,000 60,000 60,000 60,000 60,000 Consultants 22,500 30,000 30,000 30,000 30,000 30,000 30,000 POS Materials/ 110,000 155,000 166,000 166,000 166,000 166,000 166,000 Internet Total Indirect 220,000 310,000 332,000 332,000 332,000 332,000 332,000 Expenses Total Expenses 1,945,684 3,716,594 7,954,747 13,100,204 20,155,173 25,889,720 31,835,463 EBIT -1,945,684 9,370,937 32,837,572 86,629,482 185,643,778 271,588,026 404,916,793 Tax provision -389,137 1,485,051 6,567,514 17,325,896 37,128,756 54,317,605 80,983,359 Net Profit -1,945,684 5,940,203 26,270,058 69,303,586 148,515,022 217,270,421 323,933,435 MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 51
FINANCIALS PRODUCTION PROJECTIONS These are the Seven-year production projections since the beginning of the manufacturing facility construction. As we can see below production does not start until the 13th month when it is estimated that the first manufacturing line will be ready. By year 7 production output increases exponentially with 16 manufacturing lines and round the clock shifts. CONSOLIDATED PRODUCTION SHEET YEAR 1 Month 1 2 3 4 5 6 7 8 9 10 11 12 Lines 0 0 0 0 0 0 0 0 0 0 0 0 Shifts 0 0 0 0 0 0 0 0 0 0 0 0 Production 0 0 0 0 0 0 0 0 0 0 0 0 Sq. Ft YEAR 2 Month 13 14 15 16 17 18 19 20 21 22 23 24 Lines 1 1 1 1 1 1 1 1 1 1 1 1 Shifts 1 1 1 2 2 2 2 2 2 2 2 2 Production 1,050,484 2,100,967 2,100,967 4,159,915 4,159,915 4,159,915 4,159,915 4,159,915 4,159,915 4,159,915 4,159,915 4,159,915 Sq. Ft YEAR 3 Month 25 26 27 28 29 30 31 32 33 34 35 36 Lines 1 1 1 1 1 1 2 2 2 2 2 2 Shifts 3 3 3 3 3 3 4 4 5 5 6 6 Production 6,302,901 6,302,901 6,302,901 6,302,901 6,302,901 6,302,901 8,382,858 8,382,858 10,462,815 10,462,815 12,605,802 12,605,802 Sq. Ft YEAR 4 Month 37 38 39 40 41 42 43 44 45 46 47 48 Lines 3 3 3 4 4 4 5 5 5 5 5 5 Shifts 7 7 8 8 10 10 11 11 12 12 13 13 Production 14,685,759 14,685,759 16,765,716 17,290,958 19,959,186 19,959,186 23,089,627 23,089,627 25,169,584 25,169,584 27,312,570 27,312,570 Sq. Ft MOXY OID WHITEPAPER 2021 Copyright 2021 CERLOS Inc. All rights reserved 52
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