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Lumenco Reg-D

Raised to Date: 
$0

0%
Pledged:
Invest Now
 Invest Now
ID: 
LC-D-2022
Exemption: 
REG-D (506c)
Terms: 
Subordinated convertible Notes. Annual interest at rate of 10%, payable at maturity. Terms are subject to the full offering documents.
Accredited Only: 
Yes
Reviewed Financials: 
No
Target Goal: 
$2,000,000
Minimum Goal: 
$50,000
Minimum Investment: 
$10,000
Suggested Investment: 
$25,000
Additional Investments: 
$5,000
Maximum Goal: 
$3,000,000
Raise Start Date: 
Monday, July 18, 2022
Raise End Date: 
Saturday, December 31, 2022
Raise Target Date: 
Wednesday, August 31, 2022

Microstructures For An Advanced Future

 

Lumenco is launching various patented technologies in different industries commercially after nearly ten years of development in the next two years worldwide. Leading the charge are our patented micro lens anti-counterfeiting technologies and are being launched in currencies throughout the world.  After millions of dollars in investment, this opportunity will create significant revenue streams for Lumenco benefiting new and existing shareholders and will make Lumenco a prime target for acquisition.  Lumenco is offering a preferred Series A stock with a 5% per year dividend for 3 years payable in cash or common stock in three years with a common stock conversion option.

 

Lumenco’s expertise and core competency revolves around technologies that global industries rely upon to propel themselves into the future; microstructures and nano-structures. Further, these small structures have applications ranging from healthcare, currency, aerospace, renewable energy, and more. Lumenco is one of only a handful of companies tackling the challenges of development and production of this technology, and is now commercializing these developed and patented technologies and taking them to market.  Invest today to realize the potential monetization of these technologies.

 

 

Thinking Small: The Natural Evolution of Advanced Technology

 

Advanced technologies routinely undergo cycles which result in a scale-reduction of core components.  The continuing problem in various industries revolves around making technology better, faster, lighter, and more dynamic at a lower cost.  Modern computer chips the size of a fingernail are capable of processing power which would have required expensive + room-filling supercomputers just a few short decades ago. More and more industries are following this natural evolutionary path and often hit a barrier at the microstructure level.

 

Lumenco works only in the protected IP space and has made a name for itself in the Banknote arena wherein we have partnered with some of the largest banknote companies in the world. Through those licenses and partners, Lumenco’s technologies will soon be featured on prominent banknotes in the form of anticounterfeiting optical effects in iconic banknotes worldwide.

 

The core concepts of microstructure development and manufacturing have led to a myriad of patents for Lumenco in the fields of aerospace, healthcare, solar energy, brand protection, lighting, screen technologies and more.  These technologies are ready for market and commercialization after years of development and Lumenco already has significant license agreements in lighting, currency, and brand protection.

 

 

A Rising Tide Lifts All Boats

 

Secure currency, anti-glare lighting in the workplace, lighter electromagnetic shielding for satellites is just a few of the areas where Lumenco can and will make a difference.  These are remarkable developments from a small company and each can make a difference in how we live and perceive our environment.

 

 

Lumenco recognized that the holographic solutions available in the banknote area were not secure, and counterfeiting was rising.  This was confirmed by interviews with Central Banks and the United States Federal Reserve and the BEP.  Lumenco was under contract for about 5 years and discussing issues with counterfeiting with both the FED and our large industry partners.  Micro optics became a viable solution, and are being used in banknotes like the U.S $100 bill, but this was the only company (Crane) that had technology in micro-optics due to freedom to operate issues and patents.  Lumenco was able to address limitations in their technologies, prosecute its own patents and have the freedom to operate safely.  Further, with its currency partners Lumenco was able to develop the first ever multi color micro-optic lens feature for currency.  This is something the Central banks have wanted for years.

 

Lumenco has looked at each commercial area and tried to find effective niches with creative solutions and intellectual property.  By thinking creatively, the Lumenco team has carved out both IP and superior solutions with two main platform technologies (micro lenses and micro mirrors) spanning several industries.  The platform technologies can move from currency to lighting to AI components.  Lumenco is just now realizing the depth of the potential of these technologies, and has addressed the issues in lighting, EMI shielding and of course currency and brand protection.

 

Lumenco is expecting between $50 and $100 million in royalty revenue with currency already licensed over the next 10 years and new currency royalties of another $50 million on developed yet unlicensed currency technologies in the same time period.  Lighting, EMI shielding, AI and solar technologies are expected to produce another $50 million in royalty revenue in the next 10 years.  Since royalty revenue is pure profit, Lumenco expects to reach $20 million per year in profit in the next 5 years providing valuations in the hundreds of millions.

 

Lumenco has existing partners that are the largest in the world in the currency and brand protection areas.  Lumenco is also in negotiation with other large companies and governments throughout the world for additional licensing and venture agreements.   For instance, Lumenco’s currency partners are Leonard Kurz and Koenig and Bauer, both billion plus Euro companies.

 

 

Multiple Solutions Moving Forward

 

Lumenco's has a variety of patents in different technologies and in multiple industries and continues to expand its IP portfolio with a patent filing nearly every month.

 

The current industries in which Lumenco is involved are as follows:

 

Currency anti-counterfeiting.  Lumenco has a joint venture with Koenig and Bauer Banknote Solutions and has in turn a licensee in Leonard Kurz taking Lumenco technology into the banknote space.  These two companies are among the largest in the world in the currency arena.  The most recent technology developed and licensed into Kurz is the first ever multicolor micro lens technology that is viewable in ordinary light and has a dynamic effect.  The feature is called Kinegram Dynamic. 

 

LINK: KINEGRAM DYNAMIC® - New Dynamics for Safer Banknotes - Expert Talk

 

Lighting. While LED lighting is taking over the lighting industry due to lower energy costs and better longevity, LED lighting has the drawback of having hot spots and can be unpleasant in the home or workspace.  While some complex and expensive optics can manage the light distribution, Lumenco has developed programmable micro facets that can be made quickly and inexpensively and do a far better job of light diffusion and direction.  This patented technology is just coming to market in 2022 with Lumenco’s licensee Bixby International and will reduce costs of light diffusion while providing a more pleasant lighting scenario with less glare.

 

Electromagnetic Interference (EMI) Shielding. Satellites, aerospace, communications and other signal-based technology are prone to electromagnetic interference from various signal-producing systems. Shielding from this type of interference must successfully break-up incoming signals while prioritizing weight-reduction, especially for aerospace applications, where the cost-per-pound to place an object into orbit is over $10,000. Lumencos new patent pending technology uses complex microfacets combined with very small amounts of conductor for an extremely lightweight solution with superior performance.

 

Renewable Energy. Our advancements involving renewables, specifically solar, could bring about a revolution in solar energy. Lumenco has a new film technology that reflects infrared yet allows visible light into the panel decreasing the average temperature of the panel by up to 50 degrees F. The result is expected to increase efficiencies in most solar panels by up to 35% and increase lifetime of the panel at least two-fold.  The film can be installed economically in new panels and also be used to retrofit panels already in use. This product is in the early stages, but expected to be tested at NREL by Q4 2022.

 

Lumencos business model is two-fold.  First, Lumenco has existing license agreements in currency, lighting and brand protection wherein the income is both for technical support and royalty income based upon percentages of gross sales.  In other cases, Lumenco can sell products directly to end users and have the products manufactured under supply agreements.  In this case, gross margins are about 70% to 80%.  Lumenco’s royalty income (pure profit) is expected to be between $50 and $100 million in the next 10 years in currency alone.

 

 

Lumenco has been considered pre revenue with mainly R and D income since inception and is just coming into real revenue now.  Despite this, Lumenco has been able to cash flow and create positive EBIDA on just that revenue alone of about $2 million each year for the last few years.  Combined EBIDA for 2020 and 2021 has been about $500,000.  The impressive fact is that Lumenco has retained positive cash flow and has created more than 40 patents in 30 Countries.  Lumenco had a contract with the Federal Reserve for about 5 years and has been vetted by the government and secret service.  The resulting technology is now owned by Lumenco after the BEP could not test the features at the BEP due to Covid 19 and supply chain issues.

 

Lumenco was able to create a joint venture with KBA NotaSys in Switzerland (now Koenig and Bauer Banknote Solutions).  This company makes over 95% of the equipment that produces banknotes worldwide with a focus on Lumenco's  micro optic currency security features. This is remarkable as Koenig and Bauer is a billion plus Euro company in a very selective exclusive club of currency companies.  This is really unheard of in the currency industry.  In addition, Lumenco was able to license Leonard Kurz (another company with more than a billion Euros in revenue) as our primary licensee for the joint venture.  Kurz is the largest currency security feature provider in the world.  With about $10 million in investment into commercialization of these features they are launching now and being tested in iconic banknotes worldwide.

 

Lumenco has also signed a license agreement with Bixby International in Boston in the lighting area, as well as Accessos Holigráficos in Mexico for brand protection. Other licenses in currency technologies, solar technologies, and EMI shielding are in progress.  Current license agreements have escalating royalties and guarantees and are multi-year contracts and have brought over $1 million in revenue into Lumenco so far in 2022.

 

The best testimonial are videos of Lumenco technologies being launched through our licensee (Kurz) in Germany.  Kurz is the largest security feature provider in the world and is currently in negotiation with several countries for their currency features.

 

Lumenco did a seed round of angel investors in 2013 for about $2 million at a valuation of $8 million.  Series A was done about 7 years ago with KBA NotaSys (now Koenig and Bauer Banknote Solutions) for about $3 which was considered a combination of licensing and stock purchase.  The valuation for the stock was at $100 million.  Koenig and Bauer revenue last year was about 1.1 billion Euros.

 

Agile, Versatile, Compact

 

 

The team at Lumenco is well equipped to tackle the far-reaching challenges presented. While each team member has deep expertise in their own specialty (optical physics, engineering, chemistry, design, etc.), the small scale of our operation results in a requirement that each member must have a working knowledge of the others' processes and capabilities. This informed overlap of knowledge, combined with agility which only small teams are capable of, results in efficient and informed decision making. This informed agility gives us the ability to forge pathways forward without the burden of excess overhead or committee-based decisions.

 

The expertise of our team has resulted in 40+ U.S. and internationally granted patents. Mostly involving microstructures and micro-optics, these patents range from banknote security printing, solar technology, light diffusion, to healthcare technology.

 

 

Use Of Funds

 

With the minimum target fundraising, Lumenco will use the funds primarily for IP protection and marketing.

 

At the target amount, Lumenco will use the funds for commercializing EMI shielding for the marketplace as well as its new currency and solar technologies.

 

The maximum amount will allow Lumenco to purchase some equipment to fully commercialize its three new technologies in Solar, EMI shielding and currency.

 

Return On Investment

 

Lumenco has positive cash flow with positive EBIDA of about $500,000 total in the last two years despite huge investments in IP and technologies.

 

First, the preferred stock offered is at a valuation of $40 million and significantly below the last investor valuation of $100 million and less than the $70 million valuation acquired last year.  In addition, the stock has a preferred dividend of 5% per year for 3 years.  The reason for this is that Lumenco can use the cash effectively to grow the business quickly at this stage of commercialization.  Since this is our first crowdfunding venture, we wanted to make it particularly attractive.  Lumenco is a good target for acquisition with its billion-dollar-plus partners and has been approached repeatedly for acquisition.  With the advent of our features and products being launched worldwide we expect that within 3 years we will be acquired.

 


 

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