[Vision2020] Kudos to Ivus Industries of Moscow, Idaho

[Tom Hansen]

http://tinyurl.com/5cwkml
"Ivus Industries of Moscow has signed a contract to sell its L.E.D. 
flashlights to law enforcement throughout the country. The flashlights use 
ultracapacitors instead of battery cells for a lightweight and quick 
recharging alternative to battery-powered flashlights. David Alexander, 
center, is CEO of the company; Erik Cegnar, left, is principal engineer, 
and Michael Maughan is mechanical design engineer."

Ivus Industries of Moscow, Idaho
http://www.lightningflashlights.com/

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Meet the staff of Ivus Industries:

Dr. David G. Alexander - CEO and Founder
Doctor Alexander holds M.S. and Ph.D. degrees in mechanical engineering
from the University of Idaho. For the past 3 1/2 years he has been 
president of Caelex, Inc. a mechanical and electrical engineering 
consulting firm specializing in advanced energy and power systems for 
hybrid vehicles, control systems, and engineering modeling software.

Erik Cegnar - Director of Engineering and Founder
Mr. Cegnar holds a B.S. degree in electrical engineering from the 
University of Idaho. He has developed energy storage and control systems 
for hybrid electric vehicles. Currently, he is principle engineer at 
Caelex, Inc. an engineering firm in Moscow, ID where he focuses on applied 
technologies using ultracapacitors and digital control systems.

Alan Portugal - Director of Operations and founder
Mr. Portugal holds a B.S. degree in industrial engineering from the 
University of Washington and a MBA from Seattle University. He brings over 
12 years of experience in applying lean manufacturing techniques, writing 
code and integrating software projects, from Boeing and Microsoft.

Dave Atwell - Sales Executive and founder
Mr. Atwell holds a MBA from Seattle University and B.S. in production and 
operations management from the University of Idaho. He has held positions 
with several publicly held companies in the areas of accounting, financial 
analysis, product pricing, and sales operations.

Ken Lee - Director of Sales and Marketing
Mr. Lee holds a B.S. in Marketing Business Administration from the 
University of Southern California. He brings over 25 years of experience 
in marketing, advertising, product management, and sales to IVUS Energy 
Innovations. Mr. Lee has experience in sales with both national and 
international sales accounts and is developing a network of customers and 
business relationships for IVUS with Law Enforcement, Millitary, Retail, 
Recreational customers.

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>From today's (April 27, 2008) Spokesman Review -

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Unique design, fast recharge could make flashlight the next big thing


Tom Sowa
Staff writer

If Moscow-based Ivus Industries rocks the world with its smart 
ultracapacitor technology, the flash point for that success will come 
later this year, in the form of a 12-inch, 1-pound flashlight.

The company calls the flashlight, for now, the Lightning-180. If it's as 
successful as they hope, it will deserve to be called The Two-Minute 
Wonder for its quick recharge time.

The company, with an office staff of four, plans to introduce the 
flashlight this year. Investors and others who have seen the flashlight 
say it's a breakthrough use of technology that should land Ivus plenty of 
contracts.

It uses ultracapacitors instead of standard batteries. The first target 
customer group is law enforcement and public safety workers, who rely on 
flashlights but can't afford to carry many extra batteries or interrupt 
work to recharge a unit.

But the people running Ivus say flashlights will be just the start of what 
they say would be a series of green-technology products that could 
eliminate many of the batteries we throw into landfills today.

In the company's crowded workshop and office, tucked into a Moscow 
business park, company CEO David Alexander grabs one of the prototype 
Lightning-180s and turns it on. It uses three high-grade, low-power LEDs, 
producing a stream of solid white light.

"When this runs out (after 110 minutes), you plug it into a recharger, and 
you're back and fully charged in less than two minutes," explained 
Alexander, a mechanical engineering Ph.D. from the University of Idaho.

Companies like Mag Instrument also produce high-end rechargeable 
flashlights, using internal batteries. That firm's widely sold Maglite 
flashlights take two hours or so to recharge. 

Ultracapacitors are the kernel of Ivus technological innovation. Instead 
of relying on chemical interactions to produce electricity, 
ultracapacitors use carbon material spread over thin layers of metal 
electrodes, all rolled up into many layers, like a tightly wound electron-
saturated Hostess Ho Ho.

Because the ultracapacitor has low resistance, recharging is quicker than 
for standard batteries. Its main drawback is that it won't hold as much 
power as traditional batteries.

"One big advantage is the ultracapacitor can be recharged a million times 
before it has to be replaced," Alexander said.

Rechargeable batteries have a lifespan of 300 to 1,000 cycles, meaning 
they can be recharged that many times before they no longer hold a charge.

If "green" technology is the goal, Ivus fully qualifies, said John Overby, 
director of client services for Spokane's business-incubator Sirti. Ivus's 
technology, if it's extended to other uses, could eliminate millions of 
batteries dumped in landfills, replacing them with a power-storage unit 
that can last 10 years or more.

Ultracapacitors are being tested in many industries. They're used in some 
digital cameras to operate the flash units or zoom controls. Utilities are 
using larger versions on some wind-energy turbines to adjust the blade 
angles for maximum velocity. Other companies are trying to add 
ultracapacitors to hybrid car energy-storage systems.

Alexander became involved in the physics of ultracapacitors while at the 
UI, researching the economics of developing hybrid vehicles. Almost four 
years ago, he and another UI engineer, Erik Cegnar, formed a company that 
might find ways to use ultracapacitors in vehicles. 

In 2005 the two Moscow engineers were contacted by two Seattle-area 
business consultants who said they wanted to help develop a company with 
the same idea. 

Then reality struck. They realized that trying to introduce that 
technology into the U.S. automotive industry would take more money and 
time than their startup could afford.

"We decided we needed something that would prove the concept, and the 
flashlight was the right way to do that," Alexander said. That decision, 
said Cegnar, came as they noticed how the LED lighting industry continued 
improving their product designs. LEDs were being produced with high 
luminosity and low-power consumption — the ideal condition for an 
ultracapacitor that would weigh in this case less than one pound.

Alexander, Cegnar and the two Seattle partners, David Atwell and Alan 
Portugal, took their prototype, the "blue tube," to two business school 
competitions. Their team took third in both. 

That success persuaded them to push on, develop the idea and start looking 
for financing. 

One key meeting was an investors' forum hosted in Spokane by Connect 
Northwest. Alexander made the standard investors pitch and held up the 
prototype of the flashlight, showing the room how it worked.

Michael Strasser, president of Ponderosa Capital, came away impressed. "It 
really helped that they can show off the flashlight," said Strasser, whose 
firm became the lead investor last year to help push Ivus toward 
production of its first product.

"They made a good impression," he said. "The cool thing about the L-180 
(flashlight) is that it's an intuitive product. You can literally put your 
hands around it."

Strasser was introduced to Alexander by Sirti's Overby, who has looked 
over dozens of startup companies in the area over the past two years.

Sirti also worked with Ivus to sharpen its business plan and polish 
marketing strategy, Overby said. "What they're sharp on is their 
technology, but we were able to work with them to improve those other 
areas that needed help," he added.

Other investors joined with Ponderosa, including Spokane-based Win 
Partners. The Ivus management team estimates it has raised $700,000.

Two more key steps helped push Ivus closer to producing the first batch of 
the Lightning-180.

In 2006, Atwell and Portugal showed the concept of the L-180 to Mark 
Blumenthal, the president of Seattle's Blumenthal Uniforms. That company 
has extensive dealings with law enforcement departments along the West 
Coast.

Company Vice President Roger Heldman talked to the people he knew at the 
Seattle Police Department, who told him the flashlight idea had strong 
appeal.

Blumenthal Uniforms decided the idea was worth investing in, said Heldman, 
who said the stake that the company took in Ivus was roughly 2 percent.

"Most police officers on patrol carry two flashlights to have a backup," 
said Heldman. "This system will allow them to rely on just one."

Heldman estimated the annual law-enforcement market for flashlights comes 
to roughly $15 million. Heldman expects Ivus to grab about $4 million in 
sales, selling 20,000 units with a price tag between $150 and $200 per 
flashlight. 

Ivus officials know that is a price point roughly double what most law 
enforcement people pay for a standard or rechargeable flashlight.

Even so, Heldman said, the product's advantages should help them sell at 
least 20,000 flashlights within two years.

The next key step was following the suggestion to find a distribution 
partner for the flashlight. Steve Gevurtz, a Spokane business consultant 
and former CEO of Itronix, suggested the Ivus team form a relationship 
with 5.11 Tactical, a California company considered a leader in making and 
selling products to public safety agencies. 

Gevurtz liked the Ivus technology enough that he also invested in the 
company.

Alexander and Cegnar hooked up with representatives from 5.11 Tactical 
this winter and have a deal to start producing the Lightning-180s together.

Heldman and Strasser agreed the decision to partner with 5.11 Tactical did 
two things: gave Ivus a chance to reach a global market, and took 
advantage of the larger company's established success in selling to the 
public safety market. "It allows Ivus to focus on their technology and 
develop it, and lets 5.11 use its connections and resources for production 
and marketing," said Heldman.

Strasser, who moved Ponderosa Capital from Arizona to Spokane two years 
ago, said the Lightning-180 could be the start of something very large.

"Their technology is a game-changer. If you think of all the things that 
use batteries, this has the potential to replace all those batteries in a 
large number of areas," he said.

The obvious next options include building and vehicle emergency lights, 
replacing batteries on music players or cell phones, and power supplies 
for tools.

Cegnar said he and his partners are looking down the road. "We'll apply 
our technology in lighting in a lot of different areas. We'll definitely 
explore that fertile ground of lighting for a while.

"We have some more tricks up our sleeve."

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At a glance:

What it is: Quick-recharging flashlight

Likely price: $150-$200

When available: End of 2008

Web: www.lightningflashlights.com

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Seeya round town, Moscow.

Tom Hansen
Moscow, Idaho

Came a tribe from the north brave and bold . . .

"Here We Have Idaho"
http://www.tomandrodna.com/HWHI.mp3

"I-D-A-H-O Idaho Idaho Go Go Go"
http://www.tomandrodna.com/Vandals.mp3


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