The Beginning:

What is WaterBlock?
WaterBlock is a nanotechnology coating that protects electronic devices from damage by water, moisture, and small debris.

Where did the WaterBlock technology originate?
WaterBlock has a unique and noble genesis. Our entire story can be found on our website at www.hzoinside.com/about.

Is HzO’s WaterBlock a brand new, never before seen technology?
Well – yes and no. The formation of vacuum deposition application methods began over 50 years ago and has developed into multiple forms for multiple functions. The chemistry used in vapor deposition systems has many iterations and multiple patents covering various applications. However, HzO has innovated brand new novel chemical formulations, new application processes, new high volume production application equipment and new surface prep and masking techniques that have created a superior product to block water, moisture, and small debris from electronic devices. Continuing innovation occurs daily in our labs.

What has WaterBlock been used to protect?
HzO’s WaterBlock technology has been successfully tested in our lab on a number of electronic devices for demonstration purposes. Some examples include: mobile phones (Samsung Galaxy S2, Apple iPhone 4S), music/mp3 players (Apple iPod), tablets (iPad 2, Samsung Galaxy Tablet, Kindle Fire), and many other devices. WaterBlock has also been tested on industrial equipment, theme park rides, underwater surveillance equipment, emergency communications equipment, and other applications requiring protection from critical, or even catastrophic, failure. WaterBlock could even potentially be used to protect everyday items from water, such as paper and fabrics.

Who has HzO worked with?
At this time, we maintain a strict level of confidentiality with our customers. However, HzO is in talks with major consumer electronic device manufacturers to bring WaterBlock to a wide audience. We are also developing other industrial and commercial applications in multiple industries.

How Does It Work:

What is WaterBlock made out of?
The chemical make-up of WaterBlock is proprietary, and we think the results speak for themselves. However, all ingredients in our formula are non-toxic, inert, and have passed all toxicity testing needed to be included in a consumer grade device.

How is WaterBlock applied to devices?
The WaterBlock coating itself is applied through a vacuum deposition process. In this process, a device that will be coated is situated in a sealed chamber from which all gaseous particles are evacuated. An organic gas is then introduced into the chamber, at which point the gas molecules deposit onto the device, building up a solid, thin film, hence the term vacuum or vapor deposition. We control the thickness of the film through various scientific methods, including chemistry, time, pressure, and temperature. All HzO films are deposited at ambient (room) temperature, so there is never heat introduced that may damage the circuitry or substrates. This proprietary technique yields a uniform film application. HzO has innovated production systems that allow application of its coatings in high volume manufacturing environments, allowing millions of devices to be coated annually.

Is WaterBlock hazardous?
NO! WaterBlock is a non-toxic, organic material.

Does WaterBlock change the aesthetics of the device or add any weight?
NO! The patented technology of WaterBlock does not rely on bulky, unreliable cases or mechanical seals. In addition, WaterBlock is not applied to the outside of the device. WaterBlock protects the internal electronic assemblies of the device from water damage, wrapping the critical components in a protective, transparent, thin film layer. Because the protective layer is microscopically thin, any added weight is minute and undetectable.

Can I take a device with HzO WaterBlock scuba diving?
WaterBlock technology is designed for accidental encounters with moisture. While HzO-coated devices can be immersed in water, and many devices we have coated have survived continuous hours under water, the technology is designed to protect against failure in circumstances such as jumping in a pool and forgetting your phone is in your pocket, dropping your iPod in the sink while doing dishes, getting caught in a rain storm, or leaving your smartphone in your pants while they go through the wash. WaterBlock is not designed to be used in deep water, nor is it designed to be used under water all day, every day. It is simply the most effective protection against water ever deployed without cumbersome and unsightly plugs, cases, or seals.

Technical:

Do you have any technical papers or research on HzO WaterBlock?
We do, but we reserve those for our customers and market partners after execution of intellectual property protection and license agreements.

What testing has been done on the WaterBlock treatment?
HzO has performed countless tests on a number of devices. We have also worked with market partners to conduct additional tests. Testing results for WaterBlock are provided to market partners and manufacturers under signed intellectual property and license agreements.

How long does WaterBlock last?
Lifetime depends on application and environment, though, in general, WaterBlock is a stable compound and will outlive most of the devices on which it is applied.

Will WaterBlock trap heat on the electronics it coats, thereby shortening the life span of coated electronics assemblies?
No. HzO’s WaterBlock is a thin film and allows heat to dissipate through the material, simply meaning that heat is pulled away from the electronics in the same manner as before WaterBlock’s application. This allows devices to operate at temperatures equal to those that exist before the electronics were coated.

Does HzO WaterBlock meet IP waterproof standards?
Well – yes and no. IP Standards mean Ingress Protection Standards. “International standard IEC 60529, IP Code classifies and rates the degrees of protection provided against the intrusion of solid objects (including body parts like hands and fingers), dust, accidental contact, and water in mechanical casings and with electrical enclosures” (http://en.wikipedia.org/wiki/IP_Code). While WaterBlock meets many of the standards for protection from water listed in the IP standard, these water standards were developed to measure the ability to keep water OUT and AWAY from electronic circuitry. In fact, the definition of “ingress” refers to the ability to enter. HzO WaterBlock allows water and moisture to enter and infiltrate the electronic circuitry without damaging or allowing the circuitry to ground and be destroyed. Therefore, yes, we meet levels of protection identified in IP standards, but in a very different way. As a result, HzO has written a new standard we call the WaterBlock standard that specifies water protection from the inside out.

The Future:

How can I get WaterBlock on my device? Can I send you my device to coat? Can I buy a can of WaterBlock and coat my own?
HzO integrates its technology, process and equipment directly into the production and assembly lines of manufacturers, resulting in high volume applications. We also can perform coatings for smaller volume manufactures as well. Equipment required to WaterBlock electronics is expensive and not conducive to use in the home or retail stores. Consumers and/or distributors cannot currently access the HzO equipment to perform their own applications, nor is there an at home kit for existing electronics not currently coated. Look for WaterBlock on the next generation of new devices.

Where can I see WaterBlock in action?
Check on the HzO website (www.HzOinside.com) and on our YouTube channel (www.youtube.com/HzOTV) for video demos and examples of WaterBlock in action.

What other uses are you planning for HzO WaterBlock?
How about this list – for starters:

  • Smart Phones
  • Cellular phones
  • Tablet computers
  • Solid state laptops
  • Emergency response phones
  • GPS devices
  • Cameras
  • Entertainment devices
  • Gaming devices
  • Earphones
  • Accessories
  • Televisions
  • Solar panels
  • Automotive circuitry
  • Aerospace
  • Marine
  • Desktop electronics
  • Industrial applications
  • Medical equipment
  • Stationary communication equipment

…and we’ll keep you informed when we roll out the big list.

Corporate:

Who is backing HzO?
HzO is backed by a number of interested and dedicated investors. Our investors have a long history of successful operation and growth of high-tech companies, as well as unparalleled background in consumer electronic devices and nanotechnology. Of particular note are five key investors:

  1. ZAGG, Inc.: A highly successful, public traded, market leader in providing innovative consumer products like films, skins, audio and power solutions that protect, personalize, and enhance the mobile experience;
  2. Harris and Harris: A publicly traded early stage investment company that specializes in nanotechnology and microsystems investments;
  3. Prudence Holdings, Inc.: A long term value investor focused across industry sectors and capital structures with investments in the consumer, retail, automotive, industrial and energy sectors;
  4. Pike Capital Partners, LP: A private investment partnership that makes investments in both public and private markets, across all industries;
  5. Horizons Ventures, LTD.: A Hong-Kong based investment company that manages the private investments of Mr. Li Ka-shing that are focused on early stage companies in the field of telecommunications, media and technology.

Is HzO a division of ZAGG? What relationship does HzO have to ZAGG?
HzO loves ZAGG! ZAGG saw the potential of HzO and acquired the majority rights to the WaterBlock technology in 2009. They subsequently spun off HzO into a separate, privately held company. In August 2011, HzO completed an equity capital raise, established its own board of directors and executive management, and launched HzO to operate as autonomous from ZAGG. Today, ZAGG remains a significant shareholder in HzO and provides continual marketing support and assistance.

Is HzO publicly traded?
No. HzO is a privately held corporation.

The Big Question:

Why now? Why is this coming to market at this time? Why didn’t it arrive sooner?
Millions of mobile devices are reportedly destroyed or damaged annually by water, with most of us personally having gone through the frustration of water damage to an electronic device. An industry article published in November 2010 (http://www.articlesbase.com) lists the top five ways to protect your cell phone against water damage:

  1. Never bring it with you to the bathroom;
  2. Place your cell phone in a waterproof case;
  3. Make certain that it is well protected from storms or rain;
  4. Always remove your cell phone from your pocket the minute you get home;
  5. Make sure your cell phone is waterproof by buying waterproof gear.

This is great advice, but obviously of little actual value. Smart phones have exploded on the market. Ease of use, touch screen technology, speech recognition, apps, rapid data delivery, and a host of other cool factors have driven smartphone sales through the roof. Year over year growth of smartphone sales are estimated to be 49% per year taking smart phones sales from 303 million units shipped in 2010 to 450 million units in 2011. Worldwide, consumers are working to save money to pay $400 – $500 even $700 (whether outright or on contract) for their phone. That cost, and the fear of losing data, apps, personalization, and a host of other factors that make people fall in love with their phones, are all increasing consumer concerns about catastrophic damage to their beloved devices. Water damage is of particular concern. Water damage to consumer electronics is nearly always catastrophic – the gadget’s life ending event. Replacing electronic gadgets is expensive, time consuming, and annoying, as water damage is rarely covered by warranties. Moisture damaged phones/gadgets are often ineligible for upgrades, and if they are eligible, carriers force users into a new, long term contract to replace the phone.

Additionally, the frustration of losing information, such as personal and business contacts, photographs, calendars, and notes significantly increases the frustration, cost, and inconvenience of water destruction. HzO conducted a public survey of consumer sentiment about water damage to personal mobile devices and found that 95% of people are very concerned about water damage to their devices, and 85% have already experienced damage by water to a device. In addition, with the proliferation of consumer mobile devices, cellular carriers are beginning to demand that devices they sell through their networks have technology that reduces the number of returns to their stores. Returns are expensive, time consuming, and irritating to the consumer.

In addition, device manufacturers struggle to differentiate the product offerings. The speed of innovation and new development in consumer electronics is dizzying. According to a 2010 article in USA Today, the top 3 mobile device manufacturers combined spend over $5 Billion annually in research and development. Each manufacturer is looking to copy existing features offered by the competition, and simultaneously differentiate through new innovations. Clearly, innovation is considered a primary objective of device manufacturers in today’s market. Manufacturers are not satisfied with the status quo. Carphone Warehouse, the number one seller of mobile phones in the United Kingdom, stated that, “Most owners are looking for fashion and functionality when buying a phone, but if it was waterproof too, it could provide a unique selling point.” The HzO WaterBlock technology is the right feature at the right time in the right place that will be ubiquitous in mobile electronics and other electronics markets. We like to say it is the perfect tsunami – water everywhere with no damage.