2021 Organically Changing The Building Materials Industry - MOXY OID

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2021 Organically Changing The Building Materials Industry - MOXY OID
Organically
                                  Changing
                                The Building
                                  Materials
                                    Industry
                                                          Clean Tech
                                                         New Material
                                                               Green

WHITEPAPER

2021
                         MOXY OID
        Copyright 2021 CERLOS Inc. All rights reserved
2021 Organically Changing The Building Materials Industry - MOXY OID
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
2021 Organically Changing The Building Materials Industry - MOXY OID
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
2021 Organically Changing The Building Materials Industry - MOXY OID
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
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2021 Organically Changing The Building Materials Industry - MOXY OID
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
2021 Organically Changing The Building Materials Industry - MOXY OID
INTRODUCTION

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                  Copyright 2021CERLOS Inc. All rights reserved
2021 Organically Changing The Building Materials Industry - MOXY OID
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
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2021 Organically Changing The Building Materials Industry - MOXY OID
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
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2021 Organically Changing The Building Materials Industry - MOXY OID
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
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2021 Organically Changing The Building Materials Industry - MOXY OID
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
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PROBLEMS AND SOLUTION

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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
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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
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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
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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
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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
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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
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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
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COMPANY AND TECHNOLOGY
           DEVELOPMENT HISTORY

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                  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
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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
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PRODUCT

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                  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
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                                                                                                   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
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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
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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
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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
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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
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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
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MARKET
                          ANALYSIS

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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
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                                                                                                                    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
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                                                                                                                              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
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                                                                                                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
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                                                                                                 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
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COMPETITION

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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
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                                                                                                                  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
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                                                                                                                       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
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                                                                                                                         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
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                                                                                                     40
MARKET STRATEGY

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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
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                                                                                                     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
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                                                                                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
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                                                                                                       44
PARTNERSHIPS

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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
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                                                                                                        46
FINANCIALS

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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
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                                                                                              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
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                                                                                                                                           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
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                                                                                                                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
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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
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