MEMO

TO: Julia Intawiwat

FROM: Oscorp Industries

SUBJECT: Progress on Underwater Breathing Apparatus

DATE: February 26th, 2018

Introduction
Throughout the world of aquatic exploration, humans are hindered by the fact they can not
breathe underwater. Humans are required to wear bulky diving suits and oxygen tanks to breathe
for a set period of time; however, our underwater breathing apparatus will revolutionize the
aquatic industry. The breathing apparatus will allow the user to breathe underwater indefinitely
and comfortably, which has never been done before. The overall support from our investors have
allowed us to bring the concept design into reality. We are excited to announce that the
Underwater Breathing Apparatus is ahead of schedule and on track to be delivered to consumers
on time.

Summary
Progress of the underwater breathing apparatus is going exceptionally well. The aquatic team at
Oscorp is actually ahead of schedule in terms of our task breakdown for this year. We have
overcome the major obstacle of this endeavour, which was specifically manufacturing our
designed parts to the nanometer, quite early on in the design phase. This achievement allowed us
to manufacture quality prototypes in a timely manner, and be able to test prototypes swiftly and
effectively. At this time, we have partially functioning prototypes, which we are satisfied based
on the short amount of time it took us to develop these prototypes. Overall, we are below our
predicted budget for this project. The efficiency of our team allowed us to be able to develop this
project efficiently and cut development cost. This is outstanding news for the team here at
Oscorp and our investors. This project has exceeded our expectations and we are glad to
announce to overall success of this project.

THIS DOCUMENT CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION OF OSCORP INDUSTRIES AND SHALL NOT BE USED, DISCLOSED OR
REPRODUCED, IN WHOLE OR IN PART, WITHOUT THE PRIOR WRITTEN CONSENT OF OSCORP INDUSTRIES. TITLE IN AND TO THIS DOCUMENT AND ALL
INFORMATION CONTAINED HEREIN REMAINS AT ALL TIMES IN OSCORP INDUSTRIES.
Work Completed

● Design of Underwater Breathing Apparatus

○ The Project Design team has constructed a beautiful final design that also meets
the requirements set by of our Aquatic Engineering team. With the final design
completed, the Sales team is now working on advertisement to introduce our new
product to the public.

● Fully Developed Fabric made by Textile Engineering inc.

○ Textile Engineering inc. has came through with our request to engineer a brand
new fabric that will take our Underwater Breathing Apparatus to the next stage in
the project.

● Partially Functioning Prototypes

○ We have a three Underwater Breathing Apparatus prototypes that are undergoing
testing in our lab, none of which are fully functional. With a large amount of time
left on the project, we are satisfied with the stage of testing we are currently in.

Work Remaining

● Fully Functioning Prototypes

○ The Aquatic Engineering team are in the process of developing the next prototype
based on the problems that occured with the first three prototypes. This is
expected to be the last prototype.

● Final Product
○ With the project being ahead of schedule, the 4th prototype built is expected to be
fully functional; therefore, the final product will then go into production, being
entirely based on the last prototype.

● Advertisements
○ The final design of the Underwater Breathing Apparatus is complete and the
Project Sales team is working on multiple advertisement ideas to introduce our
new product.

● Mass Production
○ The Project Sales team has pushed out surveys to the public to get an estimate on
how many Underwater Breathing Apparatus’ are needed for our initial release.
From there, our product will undergo mass production.

THIS DOCUMENT CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION OF OSCORP INDUSTRIES AND SHALL NOT BE USED, DISCLOSED OR
REPRODUCED, IN WHOLE OR IN PART, WITHOUT THE PRIOR WRITTEN CONSENT OF OSCORP INDUSTRIES. TITLE IN AND TO THIS DOCUMENT AND ALL
INFORMATION CONTAINED HEREIN REMAINS AT ALL TIMES IN OSCORP INDUSTRIES.
Cost
As of writing, progress on the Underwater Breathing Apparatus remains below our established
budget parameters. Our initial estimates revealed a cost of 2.3 million dollars for development
costs; however, due to efficient work by our Aquatic Engineering team, several weeks of
developmental costs have been circumvented as a final design for the apparatus is already in use
for testing. Likewise, savings in research, testing and facilities can be attributed to a thorough
feasibility report, which helped our engineers identify and research solutions long before
implementation of the project. Moreover, several prototypes are currently being tested and will
be refined within the upcoming weeks. By testing our most promising prototypes concurrently,
we can detect flaws in design early and avoid needless expenditures. With the aforementioned
considered, current project expenditures are as follows:

● Research Costs: $752,000

● Development Costs: $1,235,500
● Facility Expenses: $327,500
● Testing Expenses: $236,000

Current project savings per category:

● Research Costs: $81,500
● Development Costs: $104,000
● Facility Expenses: $27,400
● Testing Expenses: $41,700

Conclusion and Recommendation Concerning Problems

The Research and Development Team is currently ahead of schedule in developing the
technology required for our underwater breathing apparatus. At this time the only remaining
constraint for the project is to finish developing and testing the actual filtration material that
allows the diver to breathe underwater. The materials developed this far have been successful
with the exception of the high amount of carbon dioxide that the diver is forced to breath in
resulting in death. We recommend that the remaining extraneous funds been transferred over to
research and development to further this critical part of the research.

THIS DOCUMENT CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION OF OSCORP INDUSTRIES AND SHALL NOT BE USED, DISCLOSED OR
REPRODUCED, IN WHOLE OR IN PART, WITHOUT THE PRIOR WRITTEN CONSENT OF OSCORP INDUSTRIES. TITLE IN AND TO THIS DOCUMENT AND ALL
INFORMATION CONTAINED HEREIN REMAINS AT ALL TIMES IN OSCORP INDUSTRIES.