The magnitude of the Safe Water crisis

Over 2.1 billion people worldwide do not have access to safe water. Major drivers of this crisis are climate change (drought), population growth, infrastructure deficits, increasing agricultural demand (2/3 of global water use), and freshwater consumption, which has nearly tripled since WW2 (Source: DBS/Global ETF Strategy).

The WHO reports that > 2,195 children die daily from diarrhea and other contaminated water-related diseases, and annual deaths exceed 1.79 million worldwide. In addition to high mortality rates, millions of children and adults experience compromised health. Unsafe drinking water, contaminated with E. coli and coliform bacteria is believed to be the primary cause of diarrheal disease. By 2030, the number of people in need of safe drinking water will exceed 3.2 billion, according to Lux Research International.

The Silver Aqua ION was specifically designed and developed, and is now being produced, to address this problem.

Water treatment devices in Developing Countries

People living in developing countries have few effective and affordable options for ensuring access to safe water, especially when they are displaced (about 40-50 million worldwide) from their homes. Some options include:

• Chlorine tablets ($50 - $75 per year) -

  • Not widely accepted, due to the unpleasant taste, and potential health hazards

• LifeStraw (~ $18)

  • Lifespan is approximately 100 liters before clogging issues arise

• Candle filters ($20 - $30)

  • Low flow rate and clogging problems

• Anti-Diarrheal medications ($50 per year)

  • Used to only treat symptoms; can prolong bacterial lifetime in the gut; many cannot afford the price

Most water treatment products have limited lifespans due to the clogging of their micro-filters. The lifespan of the ION is tested at 500 cycles, at a fraction of the cost of competitive POU water treatment products.

Cost and Margin

The primary strategic goal is to offer the lowest cost product with the simplest means of use, including feature and performance levels unmatched by the competition.

The total direct cost to produce the ION in volume will be in the range of $1.95 - $2.90. Volume manufacturing using multi-cavity molds in injection molding minimizes production costs. The introductory price of the ION & bottle to NGOs, distributors, and non-profits will be $9.95. This will permit reasonable gross margins while maintaining attractive, competitive, and affordable pricing for the end user.

Due to its portability, bacterial deactivation performance, long lifetime, and relatively low cost, the ION can bring together the necessary features and benefits to be a market winner. These features of the ION allow it to live up to its stated purpose:

Safe Water For All.

Companion Water Bottle Option

The one-ounce ION can be easily carried in a shirt or pant pocket. The recommended bottle volume for use with the ION is 750 ml, supplied at no additional cost.

Licensing

Silver Aqua’s technology can generate multiple revenue streams by licensing into specific applications and markets.

Multiple Market Potential

Markets for the ION include consumer and military first aid kits, refugees in camps and ‘tent cities,’ home/individual use, and industrial applications such as water storage tanks. These licensing agreements will permit the development of multiple applications based on the same core technology.