Plasma Ruggedized Solutions Company Descriptive Plasma Ruggedized Solutions COMPANY OVERVIEW Plasma Ruggedized Solutions, Inc. (‘Plasma’ or the ‘Company’) is an engineering services partner to OEM’s that designs, tests, and applies chemical and mechanical agents/devices to ruggedize and encrypt (mechanically) odd geometry/asymmetric PCB’s and electronic assemblies. Summary Founded in 1990. California subchapter ‘S’ Corporation. Shareholders are Institutional Capital and Management. Headquartered in San Jose California with a 2nd facility in Huntington Beach comprising a total of approximately 55,000 sq. ft. with 105 employees. Over 2000 customers in current operating base covering 16 industries with 400-600 active during any particular month. The largest representing less than 12% of sales. Rapid historical growth facilitated by compliance with newly implemented environmental regulations (RoHS) and industry trend toward ruggedization. Multi-industry orientation with primary applications in A&D, Medical, Automotive, Robotics and Communications sectors. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Products & Applications Conformal Coating and Potting Represent 90% of Plasma Revenues Conformal Coating Introduction Improves and extends the working life and reliability of electronic components. Conformal Coats are thin layers of synthetic resins or organic polymers applied to electronic assemblies. Coating protects against environmental, mechanical, thermal, electrical, vibration and chemical challenges. Mitigates manufacturing issues related to RoHS mandated removal of lead from printed circuit board fabrication and printed circuit assembly operations. Coatings are thin and conform to the irregular shape of the boards and their components. Potting Introduction The encapsulating and casting of an electronic device is also a method of coating or sealing circuit board assemblies, cables and harnesses. Unlike Conformal Coating potting does not conform to irregular shapes of components. Potting provides all of the same environmental protection and electrical performance stabilization as coating, but it also provides a security function for protecting a classified device or prevention of reverse engineering attempts. The Potting method uses a custom formed “Pot” or case/shell to put the entire device into, the compound is then introduced and the device sealed. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Competitive Differentiation Short Lead-Time Customer Requirements Customer production schedule demands are typically < 50 hours and usually require intensive engineering and “First Article” testing and or Qualification of engineering production processes. Physical proximity is important High-Barrier Technical Problem-Solving Orientation Customer engineering needs usually demand “face to face” conferences and technical interactions to assure and address engineering changes and concerns. Plasma is considered a “Last Stop” for resolution of hard to apply/engineered Coatings and Potting materials. Plasma provides repair and overhaul of other supplier and customer rejected hardware featuring IP equipment and Plasma Etch technology of our own design. Complex Application Capabilities: Plasma features a broad spectrum of highly engineered chemical and mechanical technologies for asymmetric and complex PCB’s/electronic assemblies for ruggedization, security and performance enhancement. Customer designs may feature somewhat fluid technical baselines or require rapid rework to effect desired performance. Structural Inhibitors to Offshore Sourcing Product restrictions on offshore sourcing for military and medical applications ITAR (International Traffic and Arms Regulations) and State Department Regulations on technology control and transfer limit the supply chain to domestic sources and manufacturing agents. Medical assemblies are generally manufactured locally due to their unique technical and performance requirements and small lot sizes. Military and medical sectors Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Fortification of Differentiators Continuing evolution of Plasma’s competitive differentiation is a core-focus of management and a primary component of the investment thesis: PRS Augments Current Service Offerings with Complementary and High-Value Services Environmental Stress Screening and Testing Additional specialty engineering services/capabilities* Clean room capabilities-10K PPM (Both facilities) Specialty cleaning services for PCB’s and sensitive mechanical componentry PCB Cross section evaluation, advanced microscopic review and X-Ray capabilities Sub-assembly and System-level build and test Deeper Penetration of Current Customers and Sector Differentiation Migration toward higher-barrier-to-entry markets and sectors Targeted market segment penetration by industry and geography On-site customer support teams featuring Plasma engineering and senior management Selected marketing forums where Plasma’s technical capability can be demonstrated Position Plasma as a World-Class Engineering Services Provider Mil-Spec certifications/ recently NASA certified (both facilities) Complete ISO certification process AS9100 program ‘Scaled’ six sigma program More effectively manage and monetize accumulated intellectual property *Including but not limited to providing PRS engineering resources to participate with OEM’s in original design process for complex systems Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions INDUSTRIES SERVED Plasma Ruggedized Solutions offers solutions which have been successfully deployed across many industries . Our extensive knowledge in the protection of circuit board assemblies allows us to protect circuitry to the Federal Information Processing Standards (FIPS). Following are examples of the industries we serve. • • • • • • • • • • • • • Aerospace & Defense Alternative Energy Automotive Banking Intelligence & Reconnaissance Law Enforcement LED Medical Oil and Gas Robotics & Electromechanical Systems Smart Grid Sports & Recreation Telecommunications Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions CORE BUSINESS • PLASMA ETCHBACK DESMEAR • CONFORMAL COATING • PARYLENE COATING • POTTING AND ENCAPSULATING • BGA UNDERFILL • FORM-IN-PLACE (FIP) • PRIVATE LABEL MATERIALS • TESTING, LABORATORY and ENGINEERING SERVICES • FIPS 140-2 & 140-3 Capabilities Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions CONFORMAL COATING Commonly Used Conformal Coatings Include Acrylic (AR) Polyurethane (UR) Epoxy (ER) Silicone (SR) Parylene (XY) Nano Coatings Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions QUALITY CERTIFICATIONS AS9100 ISO 9001:2008 ITAR Registered IPC Registered RoHS Complaint COMSEC Registered NASA 8739.1A Certified Locations Plasma Ruggedized Solutions - Northern CA 2284 Ringwood Ave Suite A San Jose, CA 95131 Plasma Ruggedized Solutions - Southern CA 5452 Business Drive Huntington Beach, CA 92649 Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions NASA 8739.1A Certified Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Six Sigma Award Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Aviation Week Award Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Northrop Grumman Letter Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Tin Whisker Mitigation and Layered Coating Solutions Tin whiskers are not a new phenomenon. Tin whiskers have been noted as early as the 1950s. Tin is only one of several metals that are known to be capable of growing whiskers. Other examples of metals that may form whiskers include Zinc, Cadmium, Indium and Antimony. Tin whiskers are believed to grow in order to relieve mechanical stresses acting within the tin layer. Whiskers grow at a rate of 3-7 angstroms per second and can see an annual growth of 9-10 mm per year. Tin whiskers, as the name implies, are hair-like growths of near perfect single crystalline structures of tin that grow from some electroplated tin surfaces. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Tin Whisker Mitigation and Layered Coating Solutions The “Layered Approach” combines multiple, established conformal coating processes, with innovative surface treatments in specific sequences to strengthen the barrier against tin whisker growth. Potting &/or Encapsulation methods using a layered approach provide a solid barrier than can retard growth as well as contain a whisker preventing migration. An extremely clean surface, properly prepared with multiple layers of Parylene (XY) and urethane (UR) coatings can provide excellent resistance to whisker growth. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions AWARDS & PROGRAMS UNDER SEA ROBOTICS Ruggedized Electronics for submersion in seawater and depths exceeding 6000m. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions AWARDS & PROGRAMS FA-18 SUPER HORNET Electronics conformally coated for protection against corrosion, dirt & debris. Ruggedized to withstand extreme forces, including frequent high G loads. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions External Lighting /Shipboard / Blimp PCBA’s ruggedized to perform outside in all weather conditions. Ruggedized for flexibility on nonrigid surfaces. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Corrosion Resistance- EMI / RFI Protection Metalized coatings, shielding, coated enclosures Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Potting & Encapsulation Potting / Encapsulation is the process used to protect “ruggedize” electronics. Potting provides protection from extreme environments, against shock and vibration, ensures security of sensitive designs, as well as creates a barrier against moisture, fungus, dust, and corrosion. Potting can also enhance circuit reliability by reducing leakage from high voltage circuits, protecting against voltage arcs and short circuits and by preventing the formation of “tin whiskers.” Potting or Encapsulating a circuit can make it Federal Information Processing Standards (FIPS) compliant. Because Potting and Encapsulating encloses the entire assembly, the assembly is protected from unauthorized entry, modification and reverse engineering. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Security Programs FIPS Compliant Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Private Label Material Development The KRYPTOS™ product line is highly adaptable of which KRYPTOS-17 is a filled, RoHS compliant, medium viscosity, self-extinguishing flame retardant, low stress, thermally conductive epoxy casting resin system. As tested by an independent party (UL 94V0), it passes the criteria for a vertical burn rating of 94V-0 at 3mm and 6mm thickness. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions Private Label Material Development Cont. THIS SYSTEM WAS DESIGNED TO MEET THE PHYSICAL SECURITY REQUIREMENTS OF FIPS 140-2, AND FIPS 140-3 FOR ENCAPSULATING MATERIALS. KRYPTOS INHERENT NATURE OFFERS GOOD TIN-WHISKER MITIGATION PROPERTIES. It provides superior resistance to water, salt spray, inorganic acids and bases and most organic solvents. The material is intended for use in outdoor environments (pending UL 746). It cures at room temperature to a tough, semi-rigid polymer; it exhibits good wetting and adhesion to most surfaces and is free flowing to penetrate voids and provide good air release. Plasma Ruggedized Solutions Proprietary and Confidential Plasma Ruggedized Solutions R&O (Repair & Overhaul) Capability Capabilities to repair and overhaul electronics, vacuum pumps, RF generator equipment. Plasma Ruggedized Solutions Proprietary and Confidential