Ariadna Tech Inc - Expanding navigation technology to new depths
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
EQUITY OFFERING 750.000 EUR 2018 Q4 Ariadna Tech Inc. - Expanding navigation technology to new depths Responding the call of 12 million SCUBA divers - The first dive computer with underwater navigation. POSIOTM Dive Computer allows divers to reach the desired locations easily and to document and share their underwater findings and adventures with others.
A breakthrough combination of GPS-like wayfinding and a powerful dive
computer.
DIVE COMPUTER
• True market demand
• Patented technology
• Compatible with Google
Earth
• Core technologies find
application areas also
outside the diving industry
The Story of POSIOTM Dive Computer
Satellite navigation radio signals, such as GPS signals, do not penetrate water. This is why
GPS or other satellite navigation systems cannot be used under water.
Many companies, research groups, and inventors have tried to find the solution for bringing
underwater positioning for SCUBA divers. All the attempts to crack this nut have failed so far.
There is no other technologically and commercially viable solution on the market.
In 2011 two SCUBA divers with professional product development background, Pasi Lahtinen
and Jyrki Salonen came up with the original idea of easy to use, accurate and robust
underwater positioning principle.
Ariadna Tech Inc. was founded two years later, in 2013 to develop and commercialize this
unique, internationally patented positioning technology.
It required the true grit to create and test the complex mathematical models and algorithms for
our product over the past seven years. No other company in diving equipment industry
possesses our kind of expertise in signal processing technology.
When we started designing the POSIOTM dive computer we set up the design goals we were not willing to compromise - if we were not able to reach these goals we would not put the product on the market: 1. The system is as easy to use as the land navigation products. You switch it on, and it navigates right away - like magic. There should be no need for a support team, pre-installed infrastructure, cables or surface buoys. You wear it - you dive - it works. 2. The system provides accurate, real-time navigation functionality in all common diving conditions. It works in underwater caves, under the ice, and in sea-currents. 3. The product uses wireless technology. No cables are allowed during the dive to avoid the danger of entanglement and to offer the best diving experience. 4. The system does not emit any ultrasonic or radio signals that may disturb the marine life or be detected remotely. The passive, independent operating principle allows the system to be used by scientific divers, search and rescue teams, and law enforcement. 5. The system is produced using standard components, processors, and sensors. This strategy allows us to push the price of the navigation instrument down to the same price level as the current dive computers. The mass production will eventually bring this technology within reach of all the scuba divers globally. The POSIO navigation is operates reliably in all diving conditions - also under the ice and in the caves.
During the design and test process, we decided to use only open, standardized data formats for importing and exporting the waypoints and routes data. This approach allows compatibility with all the mapping and geographical systems, including Google Earth and boat navigation plotters. With our product, the users own their data and are allowed to use it as they wish. The POSIO dive computer and app is compatible with all the underwater still and video cameras. The application can automatically geotag all your underwater photos and videos with high accuracy and position them automatically in right 3D-positions along with your recorded dive route. The POSIO dive computer and application is compatible with all the underwater still and video cameras. Underwater camera market is expected to reach $8.9 billion by the end of 2025 while growing at a compound annual growth rate of 16.84% 1 due to the increasing popularity of social networking2. 1 Transparency Market Research, Global Underwater Camera Market, January 2018 2 Technavio, Global Underwater Camera Market 201-2021
POSIO Diver PositioningTM Technology Explained The Posio™ navigation system basic set-up consists of a leg-mounted navigation transmitter and wrist-mounted dive computer. The leg-mounted navigation transmitter resembles a diver’s knife and is similarly worn on diver’s leg. To connect these two, POSIO system relies upon its underwater wireless low frequency magnetic communication link. Satellite navigation radio signals, such as GPS signals, do not penetrate water. This is why GPS or other satellite navigation systems do not operate under water. On the surface, the POSIO navigator relies on the satellite-based systems, such as GPS, to locate diver’s position. Once submerged, it switches automatically to Ariadna Tech’s patented POSIO Diver PositioningTM system. The POSIO System uses diver’s swimming motion, captured by navigator’s sensors and advanced software algorithms, to measure diver’s real-time location, speed, heading and distance information. The resulting 3D underwater route is shown graphically in real-time on Dive Computer display. Ariadna Tech’s POSIO Diver PositioningTM system offers accuracy better than 10 meters for a typical 500 meters dive. A recorded 3D-route of one kilometer, one hour dive in a quarry. (Data visualized in Matlab)
Product Offering
1. The first product in the lineup will be the POSIO™ Navigation System with dive
computer functionality. This baseline system is offered to the demanding recreational
divers, underwater photographers, and cave explorers. The product delivery content
includes dive computer, navigation unit, a charger, mobile applications for both iOS and
Android mobile devices, a data cable, a user guide, and a high-quality storage case.
The suggested retail price during the first year (Q1 2019) is €2300.
2. The POSIO™ Pro Navigation system comes with an additional wireless connectivity
GPS buoy. This high-end system is offered to scientific divers, search and rescue
teams, offshore industry, and law enforcement. The product delivery content is similar
to the previous Posio™ Navigation System with the addition of wireless GPS buoy and
upgraded software. The suggested price during the first year (Q2 2019) is €7500.
3. High-Pressure Transmitter pairs with the Posio™ Dive Computer and allows
wireless gas pressure monitoring from the dive computer display. As an additional
feature, the high-pressure transmitter includes a local LCD pressure display which will
enable it to be used as an entirely independent tank pressure gauge as well. Several
high- pressure transmitters can be attached to the system simultaneously. The delivery
includes wireless breathing gas pressure transmitter, user’s guide, and packaging. The
suggested retail price during the first year of sales (2020) is €400.
POSIOTM Dive Computer POSIOTM Navigation Unit POSIOTM HP Transmitter
Mobile Application The POSIO Dive Computers are accompanied with a free mobile app for Android and iOS. The app provides easy management and sharing of waypoints, routes, and dive logs via Bluetooth® communication. The resulting 3D underwater routes can be presented and animated in commonly used geographic services such as Google Earth. The mobile application also provides access to the dive computer settings. The purpose of the POSIO mobile application is to provide access to the system settings and internet via Bluetooth® communication. The app uses open data formats for importing and exporting the waypoints and routes data. This approach allows compatibility with all the geographical systems, including Google Earth.
The Dive Equipment Market The total amount of certified divers in the world is 12 million3. Global scuba diving equipment market is expected to reach $3.4 Billion in 2022 owing to rise in technological advancements and increasing interest in underwater photography4. The global scuba diving equipment market is expected to reach an annual growth rate of 3.78% during 2016 - 2020 5. Since 1967, PADI the world’s leading diving certification training agency has issued over 25,000,000 diver certifications globally6. According to their statistics, 11,9% of certified divers have spent more than $6 000,- to SCUBA-diving related equipment and 6,4% have paid more than $10 000,- 7. Out of the 900 000 divers annually certified by PADI,8 49% buys a dive computer during the first year9. The aggregate dive computer global market size is approximately 500 000 units with a mean price of $26310 which includes first-time buyers and existing divers upgrading their gear. Out of the sold 500 000 units about 80 000 are high-end dive computers carrying a price tag between €1000 and €1800. More than 6% of certified divers have spent over $10 000 to diving equipment. 3 Professional Association of Diving Instructors PADI Worldwide Corporate Statistics 2017, Data for 2011-2016 4 Ken Research, 2018 5 RnR Market Research, Global Scuba Diving Equipment Market 2016 – 2020: Market Report 6 Professional Association of Diving Instructors PADI, Historical Overview 7 Professional Association of Diving Instructors PADI, Diver Survey 2014 - All Countries 8 Professional Association of Diving Instructors PADI Worldwide Corporate Statistics 2017, Data for 2011-2016 9 The Diving Equipment and Marketing Association DEMA, Diver Research Project Nov. 2014, Aggregate Data, page 55 10 The Diving Equipment and Marketing Association DEMA, Dive Equipment Manufacturing Sales index, 2016
Competition The main players in the dive computer industry are Suunto, Aqualung, Scubapro, Shearwater Research, Mares and Cressi. There is also a growing number of emerging dive computer manufacturers such as Garmin, Heinrichs Weikamp, Ratio Computers, Atomic Aquatics, Seac, Deepblu, WATOOM, and others. Still, none of these companies can offer underwater positioning or even simple distance and speed measurements during the dive. The only navigation or positioning technology available in today's dive computers is a compass or surface-only GPS receiver on some high-end models. Market Validation Market demand for the navigation system has been confirmed over the years in several trade fairs such as the Boot Messe in Germany and dive industry-specific DEMA Show in the US. The response in all occasions has been enthusiastic. Direct and personal feedback from the dive community has proven to be an invaluable asset to our product development. In addition to hundreds of divers, Ariadna Tech has also been approached by several major international companies, top universities, and research institutions for a possible co-operation. The company has built a substantial presence in the social media with over 2000 followers in the Facebook. Diving underwater with a certainty of your whereabouts is an empowering feeling. The few privileged divers that have had a chance to dive with POSIO dive computer tell us they don't want to go diving again without it. POSIOTM Dive Computer is presented at our booth in DEMA SHOW 2018, Las Vegas, November 2018 and boot 2019, Düsseldorf, January 2019.
Projected Revenue The projected revenue is 2.4 million euros for 2019, and 12 million euros for 2021. Ariadna Tech aims to reach the sales of 25 000 units within five years which equals 36 million euros turnover. During 2019, more than half of the revenue comes from direct sales to the institutional and professional customers. The direct sales channel allows high, 47% sales margin despite the high production costs of low volume production. In 2023, most of the products are distributed through international distributors. The increasing expenses of the distribution channel are compensated by lower production costs of the higher production volumes. These factors will result in a 54% sales margin in 2023. POSIO Navigator system is the baseline system offered to the demanding recreational divers, underwater photographers, and cave explorers. POSIO Navigator Pro system is a high-end system, offered to scientific divers, search and rescue teams, offshore industry, and law enforcement. High-Pressure Transmitter pairs with the Posio™ Dive Computer and allows wireless gas pressure monitoring from the dive computer display.
Market Share Forecast The sales of 25 000 units within five years equals 4.4% market share in dive computer unit sales and 18% market share in revenue. The POSIO TM Systems are high-end, high-value products, capable of generating high added value and high revenue with low quantitative market share. At present, there is no product or technology similar to POSIO Dive Computer on the market.
Business Model Market opportunity in other industries The core navigation technology offers a sustainable competitive advantage and is suited for other applications with limited satellite navigation access as well. Possible application areas include firefighter indoor navigation and other mission-critical uses. The Ariadna wireless communication link technology lends itself in applications where information must be sent wirelessly through conducting liquids or materials. The unique high precision sensor motion capture and motion pattern recognition algorithm can be applied for implementing new smart products for other sports as well. Each application area presents a market of its own, translating that the market potential outside diving is significant, potentially much larger than the diving market.
SWOT Analysis
Sustainable Competitive Advantage
At present, there is no product or technology similar to Ariadna on the market.
In comparison with the Ariadna navigation system, all competing products fall short in several
critical aspects:
• Displaying the executed dive track graphically in real time is not possible where as
Ariadna navigation system provides GPS navigation like user experience
• Marking waypoints or points of interest is not supported
• Sharing dive tracks, waypoints and points of interest is not possible
• The software intensive Ariadna navigation system enjoys a significant advantage in
system cost
The advanced operation principle of the POSIO dive computer is difficult to copy. The core
technology is also protected by international patents (US Patent US9746328B2, European
Patent Nr. 316418).
We are doing to dive computers what smart phones did to mobile phones. This breaktrough
technology will change the whole dive equipment industry.Capital structure During the last five years, the company has invested over €1.1 million in technology, product, and business development. The source of the capital has been private investors (60%) and public sources (40%) including Business Finland (TEKES) and Finnvera. The company’s turnover during the last financial year totaled € 46 000. Invested Capital Expenditure The company is now upgrading its production and international sales operations to meet the market demand of the coming years. The company is investing the new equity in upgrading the production capacity to two thousand systems annually during 2019 and to five thousand systems annually at 2020. To guarantee the reliability and the accuracy of the precision dive instruments we assemble, calibrate, and test all the POSIO instruments in our production facilities at Lahti, Finland.
Our Team Lahtinen Pasi, Chairman of the Board Marketing, Product development - Works full time in the company 20 years of experience in the design of the electronic products in medical technology and dive computer industry (UWATEC Switzerland) Salonen Jyrki, CEO, Board member Technology, Product development, Marketing - Works full time in the company 20 years of experience in the design of electronic products, signal processing algorithms, and software in industrial controls, medical technology, and defense industry. Petri Vaipuro, Head of software development, Partner Product development - Works full time in the company Communication software and mobile operating systems engineering in mobile phone industry and various engineering management positions (Nokia Mobile Phones) Hnacik Piotr, Board Member Financing, Business development Several telecom/technology startups Nilsson Aarne, Partner Advisor, Business management Various positions in Corporate Management and Business Management Consulting Our team of experts also include: Industrial Designer and Mobile app. developer We are currently strengthening our team with Business Controller, Production Manager, and Key Account Manager
Contact Information Jyrki Salonen, CEO Pasi Lahtinen, Chairman of the Board jyrki@ariadna.tech pasi@ariadna.tech +358 41 549 9547 +358 40 754 8680 Ariadna Tech Inc. Niemenkatu 73 (Lahti Science Park) Lat. 61o 00’ 20.9” 1540 Lahti, Finland Lon. 25o 39’ 16.7” www.ariadna.tech
You can also read
