Slide 1: Welcome and Introduction
Welcome and Introduction Formal Business — Proposal | - Election of Directors — Proposal 2 - Re-appointment of Auditors Presentation by Management Questions and Answers Motion to Adjourn
Slide 2: Forward-Looking Statements
OCOKING STATEMENTS e This discussion and analysis contains statements of a forward-looking nature relating to future events or our future financial performance or financial condition. Such statements are only predictions and the actual events or results may differ materially from the results discuss
Slide 3: Cornerstone of Amerityre
CORNERSTONE OF AMERIT YRE Unique Proprietary Polyurethane Chemical Formulations for unique products. Gives Amerityre the capability to make polyurethane products with superior performance.
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Slide 5: Super Grip Golf Cart Tires
SUPER GRIP GOLF CART TIRES
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Slide 7: Skid Steer Tires with Apertures
SKID STEER TIRES WITH APERT URES
Slide 8: Underground Mining Wires
UNDERGROUND MINING WdRES:
Slide 9: Wires on Their Way?!
WIRES ON THEIR WAY?!
Slide 10: Specialty Applications
SPECIALTY APPLICATIONS
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Slide 12: Bridging the Gap
BRIDGING THE GAP. 16+ process patents, issued and pending, are used to transform chemicals into products for the tire industry.
Slide 13: Product categories: foam, elastomer tires and packaging
|. Low Duty Cycle Tires (foam) 2.Tire Fill (foam & elastomer) 3. Solid Tires (elastomer) 4. Composite Tires (elastomer) 5. Pneumatic Tires (elastomer) 6. Fire Retardant Packaging (foam)
Slide 14: Special Industrial Applications
© Medical Mobility © Lawn & Garden © Golf Carts © Baggage Carts e Special Industrial Application © Vehicles that travel less than 30 mph $10:
Slide 15: Currently $3.2 million business
* Currently $3.2 million business * Profitable as stand alone * Added several new customers for 2009 What is strategy going forward? Add new sizes as necessary to meet new markets Continue to expand business to larger distributors and OEM’s Expand business globally
Slide 16: Light Weight Foam Fill Technology
LIGEd) WEIGE ts tliki FILL ii What is the Technology? Flatproof with AmerifilI™ The tire never goes flat Provides longer tire life Low rolling resistance Cannot absorb water UV & ozone stable Environmentally friendly What is the market? — 50 million Ibs./yr.
Slide 17: Light Weight, Foam Fill Status
LIGHT WEIGHT, FOAM FILL bn tn thn Statiicn 4 a is the Status today? * Introduced Amerifill® program Jan 2008 * Placed 7 fill machines. * Reoccurring chemical sales * Continue to pursue additional large pumpers (over 100,000 Ib./yr.) * Develop a process for recycling with light weight fill
Slide 18: The tire never goes flat
The tire never goes flat Provides longer tire life Low rolling resistance Cannot absorb water UV & ozone stable Environmentally \W fae t is the market ? z
Slide 19: We are reformulating the product
We are reformulating the product To be competitive in the tire fill market The product needs to be a I:! ratio
Slide 20: What is the Technology? Solid Elastothane
What is the Technology? Solid Elastothane™ Elastomer Long life Higher tear strength Ay YRE More abrasion resistant KY } % UV & ozone stable y J- 4 , Environmentally friendly iu) Wh Sea 3 Mit a Simplified manufacturing ie ee ‘% . 4 mee on Non-marking S494 Pricing competes with rubber What i is the ma
Slide 21: Forklift tire capability and strategy
* Demonstrated capability for forklifts * Developing other applications * Signed sales and marketing agreement with K2 Industrial Tire for solid press-ons. trategy going forward? * Increase forklift business * Develop solid tires for other applications * Focus on OEM’s and distributors
Slide 22: What is the Technology? Elastomer over rubber
What is the Technology? Elastomer over rubber Tougher material -Higher tear strength -More abrasion resistant e e e Lower rolling resistance e Fuel savings e Longer life What is the market? $1.5 billion, NA Retreads
Slide 23: What is the Status today?
What is the Status today? Signed Agreement with Desert Research Technology, AZ Signed agreement with Chinese partner Shipped largest pour machine in the world, 3000 Ib/min.
Slide 24: Current Status
What is the St * Current Status DRT has shut down machine due to lack of capital. China has slowed down launching the project due to economic conditions. * Continue to test for adhesion product, polyurethane to rubber.
Slide 25: Pneumatic Tires Technology
PNEUMATIC TR Whai hnology? Elastothane™ Elastomer Passenger Car Tire Longer life, 30% (est.) Improved fuel economy Environmentally friendly Higher quality Cost competitive Simplified manufacturing e Significant fuel economy improvement!
Slide 26: Pneumatic Tires Production Process
PNEUMATIC TIRES What is the Technology? 4 Step Production Process I.Plys, beads & belts on core 2. Core in mold 3.Pour PU 4.Cure & remove Yield = | tire/min (14 station race track)
Slide 27: Costing Compared to Rubber
Technology? Costing (Compared to Rubber) Material Slightly more Labor Much less (~1/3) Energy Much less (~1/25) Floor space Much less (~1/5) Scrap Much less (~1/15) Capital investment Much less (~1/8)
Slide 28: Pneumatic Tires Market
PNEUMATIC TIRES s the Market? * OE Market -North America, CY 2008 15.6 million vehicles/year -Europe, CY 2008 15.9 million vehicles/year * Aftermarket -Equal to OE market
Slide 29: Pneumatic Tires Status
PNEUMATIC TIRES What is the Status? * Successfully completed testing to FMVSS 139 November 2007 Supplying tires to potential partners and automotive companies to test Revising formulation to improve traction Applying for a Federal Grant from the DOE.
Slide 30: Secure investment or joint venture partner
Secure investment or joint venture partner in pilot production facility while completing development of production process and equipment.
Slide 31: The Environment
THE ENVIRONMENT Rubber Tires (serious issues) » Latex sensitivity (allergies) * Major disposal issues Polyurethane Tires (no issues) * Manufacturing process is safe uses MDI not TDI Inert material Recyclable Hypoallergenic Can be buried without ground contamination
Slide 32: Fire Retardant Packaging Technology
FIRE RETARDANT, PACK y What is the Technology? e Fire retardant, self extinguishing packaging foam e High volume continuous molding manufacturing process What is the Market? e Estimated to be $2.8 billion e Driven by insurance costs
Slide 33: Fire Retardant Packaging Foam
FIRE RETARDANT PACKAGING FOAM Customer has received samples and are under review A date to be set in December to meet with our customer Negotiating pricing and volumes with customer e Identify other users of non-flammable foam packaging material users e Secure additional sales agreements with new cu
Slide 34: Financial Overview: Q1 2010 Revenue
FINANCIAL OVERVIEW Revenue Actual 1st Quarter 2010 (in thousands) $1,500 4 $1,000 | $500 :
Slide 35: Financial Overview: Five Months 2010 Revenue
FINANCIAL OVERVIE Revenue Actual Five Months 2010 (in thousands) $2,000 5 $1,500 + $1,000 + $500 i $0 eee awe
Slide 36: Financial Overview: 2010 Revenue Actual/Forecast
FINANCIAL OVERVIEW Revenue Actual/Forecast 2010 (in thousands)
Slide 37: 2010 Cash Flow Target
FINANCIAL OVERVIEW 2010 Cash Flow Target e We anticipate being cash flow positive by Fiscal Year End 2010
Slide 38: Become cash flow positive by Fiscal Year End 2010
Become cash flow positive by Fiscal Year End 2010 Continue growth of foam tire business Expand applications for the foam tire business Reformulate tire fill to compete in the market Expand applications for the solid tire business Resolve adhesion issue and define manufacturing process for composite
Slide 39: Continue to reduce and control expenses
Continue to reduce and control expenses in all areas of our business Reduce raw material cost through volume and improved formulations Build new sizes and products to capture new markets Continued growth in all product ready areas. Continue to pursue grant monies and or a partner for the car tire de
Slide 40: Amerityre will grow as its polyurethane technologies become known
Amerityre will grow as the capability of its unique polyurethane technologies becomes known. These technologies offer: * Significant performance improvements * Simplified manufacturing processes * Significantly reduced environmental impact * At equal or less cost