Hybrid Coating Technologies Newsletter 4 th Qtr 2017 Issue No. 2 Dear shareholder: As we enter the final quarter of the year I would like to take some time to update you on the progress and challenges Hybrid Coating Technologies is currently facing. As many of you know, our zero isocyanate hybrid polyurethane technology can be used in many different applications. To date, we have concentrated on the applications of coatings and foam. And, of these two, we have made coatings a priority for the simple reason that the company depends on revenues from its finished coatings formulations and hardeners to support its ongoing operations. In this regard, I am happy to share with you that professional contractors and applicators can now purchase our finished indoor coating formulations through White Cap (Owned by HD Supply), one of the largest contractor supply retail stores in the US (see more details below). In addition, our coating hardeners (with patented polyurethane chemical structures that do not use isocyanates) are also being sold on a monthly basis in Mexico and soon in Italy and other parts of Europe. We have also had a tremendous response from our participation at the European Coatings show early in the year. One of the results is that we have a new distributor in Europe who is now working with 15 new coatings companies who are all lab and pilot testing our hardeners for use in the European market. Our biggest challenge with our finished formulations in the US has been reformulating our outdoor UV resistant coatings. The reason the company has had to re-formulate is due to the unavailability of a particular raw material we used to use in our outdoor products. However, we have now tested 5 new formulations and believe we are 2-4 months away from putting these outdoor products back on the market. The company is also moving forward with three joint developments in the creation of zero isocyanate PU foam applications together with two European companies and one US company, all with well-established markets and considerable resources. All of these companies are contributing financial and personnel resources toward the joint development of these projects. The foam projects have very large markets. We therefore project significant revenue streams from each of these joint ventures in the next 2-3 years.
Green Polyurethane at White Cap HD Supply Green Polyurethane under the private label name, "True Green Poly or TGP, distributed by Industrial Finishes & Systems, can now be purchased at White Cap stores across the nation. The first store to demo the material is the first built White Cap, which is located in Santa Ana, California. White Cap sells to contractors in the concrete construction market and has revenues over $1 billion per year. White Cap is owned by HD Supply (which was previously owned by Home Depot) and has revenues of close to $6 billion per year. Below are pictures of a showroom quartz aggregate flooring system using TGP at White Cap in Santa Ana. This showpiece, created by HCT s expert applicator, Scott Kummer (above right), is currently on display at White Cap and we encourage investors to stop by and take a look.
Image Below - Close-up Image of 4 layer TGP quartz aggregate floor coating system (Permanent non-slip floor. Harder and more durable than concrete.) Green Seal Certification Update HCT has been working diligently for the past two years to create finished
coatings formulations that will qualify for independent certification from Green Seal, which will give its products an eco and human health seal of approval. We have now passed one of the most difficult hurdles of making sure the volatile organic compound content is below certain levels. Fortunately, Green PU passed with flying colors. Next, we have to submit performance testing, all of which has already been done, then we need to confirm that our packaging meets certain eco-friendly requirements, and lastly, our factory will be visited by Green Seal staff. We will report a new update in the next HCT newsletter. HCT Director of R&D publishes new book Green Nanotechnology and wins Seven Gold Medals Green Nanotechnology by HCT Director of R&D Oleg Figovsky and Dmitry Beilin was recently released by CRC Press and contains information about advanced nanomaterials that can be produced without harming the environment or human health. This encompasses the production of nanomaterials without environmental toxicity, at room temperature and with the use of renewable energy sources. The book contains descriptions and results of theoretical and experimental researches in the field of environment friendly nanotechnology carried out over the past decade by the scientific team of the company Polymate Ltd.-International Nanotechnology Center (Israel) under the leadership of Prof. O. Figovsky. More info can be found at the following link: https://www.crcpress.com/green-nanotechnology/figovsky- Beilin/p/book/9789814774109 Dr. Figovsky was also recently awarded 7 gold medals from the IFIA (International Federation of Inventors Associations), which is an ensemble of inventor associations, foundations, universities, corporations, companies, and research centers collaborating to disseminate invention and innovation culture internationally. In addition to its awards, IFIA services help inventors with
linkages and outstanding opportunities to share and discover innovative ideas and create an expanded network. IFIA Best Invention Medal is awarded to the greatest invention in the festival, competition and exhibition relying on the IFIA s Jury evaluation of its novelty, inventive step, patent, potentiality to be commercialized, its benefit for mankind, etc. Best invention medals are awarded in various events held under the patronage of IFIA.