OPTICAL DYNAMICS Vision – Passion - Innovation CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Project: nanoCLEAR A new in-mold AR coating product that enables AR lens production with the quality, speed and cost of table top lens casting. CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Product Overview Innovative, low cost, multilayer, thin film anti-reflective coating system based on: Unique, spin applied liquid chemistries The coating’s optical and mechanical properties are engineered using nanomaterials Low cost, low complexity hardware enables retail store deployment Capital equipment costs are much lower than current vacuum systems Enables 1 hour service for AR coated Cast to RX ODC Lenses CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Anti-Reflective Stack •Alternating layers of high and low index thin films •Film thickness ~100nm Low Index High Index Mid Index •Tolerance ~+/- 5nm Hard Coat •Minimum of three layers Lens CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Anti-Reflection and Nanomaterials • An anti-reflective coating is achieved by depositing thin films of alternating refractive indexes • By engineering the refractive indexes and thicknesses of these films, visible reflections are reduced and transmission is improved • Nano-scale additives must be used to avoid transmission losses and scattering that occur with larger particles Nanomaterial benefits: • Increased ability to engineer refractive index • Improved mechanical performance Material Mohs Hardness Refractive Index Al2O3 9 1.62 @ 600nm SiO2 7 1.46 @ 600nm TiO2 6 2.2-2.7 @ 550nm CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Nanomaterials Overview CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited www.nsf.gov/.../bordogna/ rochester/sld006.htm Research and Development Team • Cooperative research between investigators at ODC and the University of Louisville and the University of Kentucky CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited University Involvement The relationship with the Universities is facilitating development with innovative nanomaterials solutions and advanced research tools •Development of new and novel nanomaterials and their dispersions – Control of refractive index from 1.4 to 2.2 – Improved mechanical performance – Stable chemistries •Material characterization •Agreements with both Universities are in place CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Liquid AR Product Advantages 15% 10% Online Job Tracking 0% Educational Resources 5% Product Availability • 20% Price • • 25% Product Quality • 30% Customer Service • Product enables AR coating in a retail environment. AR coated lenses delivered to customers in about an hour Much lower hardware cost than current vacuum technology Hardware and process can be scaled for effective use in various retail environments Ease of use Low residual stress in the layers results in a more durable coating Glass molds are much easier to clean than plastic lenses Turnaround Time • 35% Source: 2020 Magazine wholesale lab usage survey CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Current Market • Equipment costs – Vacuum deposition $250k-$1M • Vacuum AR job cost to lab • AR cost to consumer CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited ODC (Everclear) Value Proposition Small Low footprint capital investment Just-in-time Low technical skill required Comparable Cost delivery performance attributes to existing AR coating cutting advantage Increased revenue opportunity CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Recent Improvements High Performance Polymers Incorporating Nanoparticles Refractive Index as a Function of Ceria Loading •Increased flexibility in AR stack design 1.95 •Refractive index control Refractive Index •Thickness control 1.9 1.85 1.8 1.75 1.7 Improved mechanical performance 1.65 60 70 80 90 100 CeO2 Loading (%) •Polymer based film Abrasion Resistance as a Function of CeO2 Loading •Improved scratch resistance Haze Increase •Nanoparticles act as binders 5 5 4 4 3 3 2 2 1 1 0 60 70 80 CeO2 Loading CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited 90 100 Recent Hardware Improvements Improved coating bowl design and motion system have improved process time and yield rate CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Recent Coating Improvements – – – – Now producing broadband coatings Improved optical performance Improved durability - RLS is now greater than 4.5 Able to produce a 3 layer green coating to meet customer requirements RLS Reflectance Spectrum 5 0.1 4 0.09 0.08 3 Reflectance (%) 0.07 0.06 2003 2 0.05 0.04 2004 1 0.03 0.02 0 0.01 0 380 2003 430 480 530 580 630 680 730 780 2004 Wavelength (nm ) CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited 2005 2006 Supply Chain • Medivative Technologies •Medivative currently supplies products for the automotive, medical, consumer electronics and telecommunication industries. •They produce the Q-2100R and Dispensing System • ISO 9001 certified since 1996 •UL listed products •Customized function testing •NSF certified facility CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited ODC Photochromic Development Deactivation 90 80 PCC #2 PCC #1 Transitions Spectralite 70 Transitions 1.50 SmartShades 60 % transmittance SunSensors 50 40 30 20 10 0 0 10 20 30 40 50 60 time in minutes CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Experience / Capabilities • Nearly 20 years experience in development and design of ophthalmic radiation curing methods, chemistries, equipment. – – – – Lens materials, clear and photochromic (Five launched) Hardcoatings (Ten launched) Photochromic coatings Liquid Nano based AR coatings • ODC experience and knowledge provide significant unique product development opportunities – Cross product adaptation of formulation and curing techniques – Efficient development and evaluation methods – Four Researchers with photochromic development expertise. • Working relationships with several dye suppliers CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Product Synthesis Process Diagram Research Marketing Gate 1 New Product Concept Development Demonstration Engineering Finance CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Availability Photochromic Development Photochromic • Number One Purchase Choice Criteria INDOOR APPEARANCE • Number One Customer Return Reason HIGH TEMPERATURE PERFORMANCE Source: Corning 2003 CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Photochromic Development Active Transmittance Source Data: COLTS Laboratories O-ODC031904-01-04 100.0 SmartShades Major Brand 1.50 90.0 80.0 60.0 Better % Transmittance 70.0 50.0 40.0 30.0 20.0 10.0 0.0 0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 225 240 255 270 285 300 QUV Exposure Time - Hours CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Photochromic Development Activation Rate Source Data: COLTS Laboratories 100 O-ODC031904-01-01 90 80 % Transmittance 70 60 50 40 30 20 10 SmartShades Next Gen 1.50 0 0 5 10 15 Time in Minutes CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Photochromic Development Deactivation Rate Data Source: COLTS Laboratories O-ODC031904-01-02 100.0 PC 29-79-3 Next Gen 1.50 90.0 80.0 % Transmittance 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 0 10 20 30 40 50 60 70 80 90 100 110 120 180 240 Time in Seconds CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited 300 Photochromic Development Temperature Dependence Source Data: COLTS Laboratories O-ODC031904-01-03 100.0 SmartShades Major Brand 1.50 90.0 80.0 60.0 Better % Transmittance 70.0 50.0 40.0 30.0 20.0 10.0 0.0 54°F 72°F 81°F 90°F 98°F Temperature CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Photochromic Development Change in Transmittance Inactive - Active Source Data: COLTS Laboratories O-ODC031904-01-04 90.0 80.0 70.0 50.0 Better % Transmittance 60.0 40.0 30.0 20.0 SmartShades Major Brand 1.50 10.0 0.0 0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 225 240 255 270 285 QUV Exposure Time - Hours CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited 300 Photochromic Outdoor Aging Study CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Photochromic Fatigue Study CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Photochromic Development CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Photochromic Development Luminous Absorbance of Next Gen Products @ 73F 100.0 90.0 85.0 83.0 78.0 80.0 Luminous Absorbance (%) 70.0 60.0 50.0 At Rest 40.0 Activated 30.0 20.0 13.0 11.0 13.0 10.0 0.0 1.5 Spectralite Poly Source: Transitions website 2003 CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100HV HIGH VOLUME LENS CASTING SYSTEM Premium Lenses, Outstanding Profits CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100HV SYSTEM OVERVIEW Cast-To-Rx Automated System Modular/Expandable The Q-2100HV System from Optical Dynamics is a revolutionary “Cast-toRx” lens manufacturing process. “Cast-to-Rx” creates a high quality finished lens without grinding or polishing. The system produces finished clear or photochromic single vision, flat top, and progressive lenses. Operators are trained in days, not months or years. Premium Lenses, Outstanding Profits CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV SYSTEM ADVANTAGES The Q-2100HV reduces the time, money, and space required for lens production. On-demand manufacturing gives you control of your destiny. Make any premium lens design in clear or photochromic as required, without semifinished inventory. Finest surface quality Improved visual clarity Accurate, repeatable powers Greatly reduced training, labor and operating costs Premium Lenses, Outstanding Profits CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV SYSTEM ADVANTAGES •Real time graphical controls •On screen training manuals •On screen maintenance documentation •Interactive diagnostics •Reliable •Scalable •Simple •Efficient The Q-2100HV system can be configured to produce hundreds to thousands of jobs per week. It’s ease of use and maintainability provide an average uptime of 99.5%. The HV System is scalable to meet your needs. System components like Pick-To-Light and an Automated Mold Washer can be added to increase your productivity. CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV SYSTEM ADVANTAGES Optical Dynamics offers custom software integration to meet your specific needs. PC based control systems are highly flexible and provide visual management tools. Customized reporting is available to meet your specific requirements. VCA/OMA compliant paperless job entry CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV CLEARLightTM - Total UVA & UVB Protection FINISHED/SEMI-FINISHED LENS MATERIALS CLEARLightTM CLEARLight SmartShadesTM - Superior clarity index - Water white color - Ultra-smooth surface quality - More precise prescriptions The unique starting point for Optical Dynamics lenses is its proprietary liquid monomer. This exclusive lens material provides the improved visual clarity and smooth surface quality that only casting can deliver. TM CLEARLight SmartShades - Clearer indoors - Darker outdoors - Greater patient comfort - Longer lasting - Stability in varying temperatures What the consumer is looking for in premium clear and photochromic! CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV LENS COATINGS Extra Tough (XT-HV) Super Scratch Resistant Coating - Outstanding scratch resistance - Tintable - Coated surface every 35 seconds - Dual-sided protection - Increased impact resistance - Superior AR adhesion - Small footprint - Low acquisition cost - Integrated high pressure wash CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV LENS STYLES The Aspheric Advantage Single vision Aspheric Single Vision Progressive 6.00 Base, +2.00 add Atoric Single Vision Flat Tops Aspheric Flat Tops Atoric Flat Tops Paradigm-22 Progressive Paradigm-16 CFL-18 ODC Paradigm-22 Progressive Competitor’s Top Progressive CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV The New Continual Focus Lens… Optical Dynamics’ State-of-the-Art premium lens is here! LENS STYLES Continual Focus Lens The CFL-18 is an advanced, latest generation design which has one of the highest patient adaptation rates in the industry. Its true consistent curve provides superior vision, a wider field of view, and significantly reduced peripheral distortion. The CFL’s optimal corridor length fits a greater range of frames (18mm fitting height). ODC CFL-18 Leading progressive CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited The Continual Focus Lens… Lens Distance Intermediate Near Zone 18FH Dist & Int Dist & Near Dist, Int & Near Overall Rating Rating Rating Rating Rating Rating Rating Number PAL Design (-4.6 to 77.8) (22.8 to 100.4) (15.3 to 50.1) (29.5 to 60.4) (22.9 to 53.4) (35.6 to 51.8) (32.2 to 52.8) 1 Shamir Genesis 77.8 45.9 27.8 60.2 53.4 51.7 52.8 2 ODC CFL 72.3 48.9 26.1 60.4 51.9 51.8 51.9 3 Vis Ease Outlook 70.7 42.2 32.3 53.2 49.5 47.2 49.2 4 Rdnstk Life AT poly 67.5 56.0 27.2 52.0 41.1 43.1 47.8 5 Younger Image 57.5 55.7 32.7 55.5 46.9 49.6 49.7 6 Zei Gradal Top 57.2 66.6 15.3 58.3 39.1 46.6 47.2 7 Sig Kodak 45.9 61.1 28.6 51.9 39.7 45.6 45.5 8 Sig Kod Precise 42.1 42.5 31.5 45.8 41.7 43.1 41.1 9 Varlx Comfort 39.0 47.3 27.4 43.0 35.5 39.1 38.6 10 Varlx Liberty 34.8 59.9 26.2 48.3 35.7 43.0 41.3 11 Vis Ease Illumina 34.2 34.6 38.3 41.8 43.2 42.8 39.2 12 Varlx Panamic 32.5 56.1 27.1 51.7 40.8 47.4 42.6 13 Zei Gradal Brevity 30.2 70.3 17.3 56.4 34.7 47.6 42.8 14 AO Easy 27.1 49.1 32.5 45.5 39.3 44.2 39.6 15 Rdnstk Life XS 26.9 26.4 43.7 31.6 38.1 35.9 33.8 16 Varlx Elipse 25.2 22.8 40.0 31.7 38.1 35.6 32.2 17 AO Compact 21.0 27.0 45.1 34.8 41.6 40.1 34.9 18 Sig Kod Concise 20.5 26.9 48.5 30.5 38.6 36.7 33.6 19 SolaMax 19.0 60.6 38.2 43.8 35.4 43.4 40.1 20 Sola One 18.2 53.8 34.8 43.6 36.5 43.3 38.4 21 Sig Nav Short 15.5 32.3 48.2 29.5 35.5 35.6 32.8 22 Shamir Piccolo 13.5 38.7 50.1 34.1 38.3 40.1 35.8 23 Pentax AF -4.2 100.4 23.5 51.6 22.9 44.9 39.9 24 Pentax AF Mini -4.6 79.1 31.9 44.0 26.3 42.6 36.6 CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV LENS PRODUCTION OVERVIEW 1. Job Entry / Ticket Job Entry The first step in the lens making process is job entry. An Rx is received from the lab computer and a work ticket is created by the system. This ticket links each job to the database. Mold Picking 2. Mold Picking The molds and gaskets are picked when a ticketed job tray is received from the job entry area. The job trays have six storage locations two for gaskets two for front molds two for back molds The tray layout helps assure that the molds are assembled correctly. CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV LENS PRODUCTION OVERVIEW 3. Cleaning & Coating Cleaning & Coating The M/R III coating system is used to apply coatings to the molds. Molds are cleaned with a high pressure D.I. cleaning solution before the coating is applied. A hard coat is applied and cured on the mold. Coated molds are then ready for assembly. Cavity Assembly 4. Cavity Assembly Molds and gaskets are assembled to form lens cavities. Different combinations of molds and gaskets are used to create different prescriptions. Assembled cavities are placed back into the job trays and are now ready for filling CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV LENS PRODUCTION OVERVIEW 5. Filling Filling Proprietary Q-2100 lens materials are available in both clear and photochromic formulations. Heated monomer is dispensed into the fill port of the gasket. Clear and photochromic jobs are distinguished by the use of color-coded job trays. Curing 6. Curing The Q-2100HV lens curing system transforms the monomer from a liquid to solid. The Q-2100HV performs initialization, curing, and annealing. Job trays move through the Q2100HV on a conveyor system. CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV LENS PRODUCTION OVERVIEW 7. Demolding / Cleaning Demolding / Cleaning After curing, the lenses are removed from the molds, cribbed, and cleaned. 8. Cribbing The molds are then washed and stored for reuse. CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV CASTING SOLUTIONS Modular/Expandable Coating Systems Mold Washing Pick-to-Light Mold Storage The Q-2100HV System produces incredible lenses with high efficiency. The HV can produce more than 100 finished lenses per hour. The HV System is modular; it can be scaled to meet your requirements. Lens Production: Semi-Finished 7.50, 6.00, 4.50, 3.00, 1.50 bases Finished +4.00 to -6.00 SPH, 0 to -2.50 CYL, 0 to +3.00 add 95%+/- yields Minutes from Rx to Finished Lenses CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV Advantage Cast to RX Advantages: • Premium multifocal lenses on demand, with no blank inventory • Scalable solutions:100’s to 1000’s per week • Payback in months, not years • Lowest cost producer of premium lenses • High performance front and back side hardcoat and integral part of the casting process Produce premium “Cast to RX” lenses with accurate, repeatable powers, improved clarity and the finest surface quality CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited Q-2100 HV Profit Potential Additional Annual Profit With Optical Dynamics Products Profit picture per job with Optical Dynamics Products $110.00 $100.00 $97.40 $90.62 $90.00 $80.00 $83.84 $77.06 $70.28 $63.50 Average Sales Price $150M $121.9 $100M $70.00 $81.3 $60.00 $50.00 $41.93 $50.96 $59.99 $69.01 $78.04 Average profit per job $87.07 $40.00 $50M $40.6 $30.00 $20.00 $21.57 $19.32 $10.00 $17.07 $0% $14.83 $12.58 20% 40% $10.33 60% 80% Percentage of orders filled with Optical Dynamics Products 100% Average production cost $0.0 $M 0% 20% 40% Percentage of orders filled with Optical Dynamics Products CONFIDENTIAL – Property of Optical Dynamics Corporation, Distribution Prohibited 60%