An investment in the Company is speculative because, although it has access to a substantial amount of research and data which has been compiled regarding the Nano Optical Virus sensor Solutions Ltd project and has a full IP exploitation licence granted by the IP owner, the Nano Optical Virus sensor Solutions Ltd has not been proven.
The Company’s Technical Director and major shareholder is Professor Al Cairns, formerly of Brunel University, and who is now Head of Automotive Propulsion at Nottingham University. The company will be utilising him and the facilities at Nottingham University for research and development, where everything required for the testing and development to TRL5/6 enabling Stage 2 of the project, is onsite.
Whilst the engineering principles and theories being utilised to enable the Nano Optical Virus sensor Solutions Ltd solution to be technically successful in an ICE or Hybrid engine, it is not proven in this environment.
Mitigation – The R&D work performed thus far involved theoretical and experimental studies of the hydraulically assisted turbocharger system for future automotive applications. The system is based upon use of relatively lightweight parts, where kinetic energy is recovered during vehicle braking, stored in a hydraulic accumulator and used later on to rapidly accelerate the engine’s turbocharger. The turbocharger is fitted with a replacement housing including a small impulse turbine, powered by a jet of hydraulic fluid. The overall aim of the work was to improve fundamental understanding of the operation and capabilities of such a system for future passenger cars. Fundamental hydraulic system calculations were undertaken and a simple rig was produced including a miniaturised Pelton wheel, a disc (of inertia equal to the target turbocharger), mounting shaft and hydraulic supply circuit. The system was capable of generating shaft speeds of ~80000rpm within less than 1 second and the peak oil pressure and flow rate were ~200bar and ~9.5 l/min respectively. This underpins the theory with evidence that the technology has the potential to deliver in the real-world, and subsequently a pre-prototype has been designed and built ready for testing on a static rig to be built in this first phase of testing and development.
The market uptake for this type of technology is unproven. Whilst this project is driven by legislation forcing the Automotive Industry by 2020 to reduce emissions by 30% more, and increase fuel efficiency by another 20% from where it is today, there is no guarantee that the Nano Optical Virus sensor Solutions Ltd will become one of the industry’s ‘preferred solutions’.
Mitigation – Developing an independently third-party tested solution using the Automotive Industry’s Technology Readiness Level framework, gives Nano Optical Virus sensor Solutions Ltd the best chance of success by aligning the requirements of the industry to the deliverables of the project.
Estimates of potential value and costs may not be reliable. The potential licence income values are illustrations only, based on available comparable industry information. These illustrations are subject to market input variables that cannot be determined until the unit is developed and ready for market.
Mitigation – The Directors of Nano Optical Virus sensor Solutions Ltd have used extremely conservative, industry reference-able figures in the projections and estimations of market penetration and uptake. Furthermore, the Directors have used industry recognised metrics and multiples for valuations and shown how these estimates and projections are put together.
The illustrations of potential income value in this Information Memorandum may, accordingly, not be reliable despite the Directors best efforts to judge them accurately.
Mitigation – The Directors of Nano Optical Virus sensor Solutions Ltd have used extremely conservative, industry reference-able figures in the projections of income and estimations of market penetration and uptake.