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TCC Minutes - May 2019

Technology Commercialization Committee

Meeting Minutes

Iowa Economic Development Authority

200 East Grand Avenue

Des Moines, Iowa

May 9, 2019

9:30 a.m.

COMMITTEE MEMBERS PRESENT:

Rich Hichwa

Donna Ramaeker Zahn

Emily Harris

Kathy Zehr

Hank Norem

Davin Hills

Mark Kittrell

OTHERS PRESENT:

Gail Kotval, IEDA

Rita Grimm, IEDA

Paul Stueckradt, IEDA

Katie Rockey, IEDA

Mallory Stanek, VentureNet

John LaMarche, VentureNet

Liz Keehner, VentureNet

Kerri Yost, IEDA

Anne Price, Iowa Innovation Corporation

Call to Order

TCC Chair Kathy Zehr called to order the meeting of the Technology Commercialization Committee (TCC) of the Iowa Economic Development Authority at 9:34 a.m.  A quorum of the TCC was established with the following members present: Emily Harris, Donna Ramaeker Zahn, Kathy Zehr, Hank Norem, Rich Hichwa, Davin Hills, and Mark Kittrell.

Approval of Minutes – March 7, 2019 TCC Meeting Minutes

MOTION:  Rich Hichwa moved approval of the minutes of the March 7, 2019 TCC meeting, seconded by Davin Hills. Motion carried unanimously.

Public Comment

No comments were made.

SBIR/STTR Outreach Program Requests 

 

Parametric Studio, Inc.

Ohana Vaccines

College Raptor

Solight Solar, Inc.

SynderBio, Inc.

Immortagen, Inc.

 
 

MOTION:  Mark Kittrell moved that the TCC recommend that the IEDA Board award up to $50,000 to each of the businesses listed above, $25,000 upon receipt of a SBIR/STTR award and $25,000 upon submission of a Phase II proposal during the 12-month period after the date of IEDA Board approval, seconded by Rich Hichwa. Motion carried unanimously.

Closed Session

MOTION:

Hank Norem moved that the TCC go into closed session at 9:45 a.m. pursuant to Iowa Code sections 21.5(1)a, 15.118, 22.7.3, and 22.7.6 to review and discuss records IEDA is required to treat as confidential under Iowa law.  The motion was seconded by Donna Ramaeker Zahn.  Roll call vote was taken.  Motion carried unanimously.

TCC members present for closed session – Rich Hichwa, Donna Ramaeker Zahn, Hank Norem, Emily Schmitt, Davin Hills, Mark Kittrell, and Kathy Zehr. Others present during closed session:  IEDA - Gail Kotval, Rita Grimm, Katie Rockey, Paul Stueckradt, and Kerri Yost; VentureNet Iowa - John LaMarche, Liz Keehner and Mallory Stanek; and Iowa Innovation Corporation - Anne Price.

McKayla Sullivan and Rebecca Lyons of KinoSol entered the meeting at 9:47 a.m. and exited at 10:05 a.m.

Mike Colwell of Time ReDesigned entered the meeting at 10:12 a.m. Called Jobi Lawrence with Time ReDesigned at 10:12 a.m. Ended call with Jobi Lawrence, and Mike Colwell exited at 10:37 a.m.

Liz Keehner exited the meeting at 10:30 a.m. and returned at 10:32 a.m.

Katie Rockey exited the meeting at 10:32 a.m. and returned at 10:35 a.m.

Gail Kotval and Paul Stueckradt exited the meeting at 10:37 a.m. and both returned at 10:39 a.m.

Mallory Stanek exited the meeting at 10:39 a.m. and returned at 10:41 a.m.

Mark Salisbury and Kimberly Dyer with TuitionFit entered the meeting at 10:49 a.m. and exited at 11:13 a.m.

Anne Price exited the meeting at 11:14 a.m. and returned at 11:16 a.m.

TCC Chair Kathy Zehr announced a break from 11:16 a.m. to 11:20 a.m.

Rita Grimm exited the meeting at 11:20 a.m. and returned at 11:22 a.m.

Davin Hills recused himself from discussion and action regarding ClinicNote, and exited the meeting at 11:20 a.m.  A copy of the notice of conflict is attached to these minutes.

Lana Fox, Mike Colwell, Anna Maher, Sheldon Ohringer, Susan Austin, Franklin Codel, and Jeff Russell of ClinicNote entered the meeting at 11:22 a.m. and exited at 11:45 a.m.

Gail Kotval exited the meeting at 11:37 a.m. and returned at 11:42 a.m.

Davin Hills returned to the meeting at 12:00 p.m.

Hank Norem recused himself from discussion and action regarding Ag Manufacturing and Technology and exited the meeting at 12:00 p.m.

Liz Keehner exited the meeting at 12:00 p.m. and returned at 12:01 p.m.

Anne Price exited the meeting at 12:01 p.m. and returned at 12:02 p.m.

Rusty Kordick, Josef Reed, Chris Proskey, Ryan Schadel, and Tom Hamilton of Ag Manufacturing and Technology entered the meeting at 12:05 p.m. and exited at 12:20 p.m.

Gail Kotval exited the meeting at 12:05 p.m. and returned at 12:11 p.m.

Hank Norem returned to the meeting at 12:25 p.m.

Open Session

MOTION: Mark Kittrell moved that the TCC go back into open session at 12:27 p.m., seconded by Rich Hichwa. Motion carried unanimously.

KinoSol SBC – Ames

MOTION: Davin Hills moved that the TCC recommend that the Economic Development Authority Board approve a $25,000 Proof of Commercial Relevance (POCR) award to be repaid through royalty payments with terms as follows: repayment amount is $25,000 paid back at 3% of total gross revenue for a calendar year with each payment due June 1 of the following calendar year, seconded by Emily Harris. Roll call vote was taken.  Motion carried unanimously.

KCR2 dba Tim ReDesigned – Johnston

MOTION: Mark Kittrell moved that the TCC recommend that the Economic Development Authority Board deny the application for a $100,000 Demonstration Fund award, seconded by Donna Ramaeker Zahn.  Roll call vote was taken.  Motion carried unanimously.

MC4L, LLC dba TuitionFit – Davenport

MOTION: Hank Norem moved that the TCC recommend that the Economic Development Authority Board deny the request for a $100,000 Demonstration Fund award and approve a $25,000 Proof of Commercial Relevance (POCR) award to be repaid through royalty payments with terms as follows: repayment amount is $25,000 paid back at 3% of total gross revenue for a calendar year with each payment due June 1 of the following calendar year, seconded by Davin Hills. Roll call vote was taken.  Motion carried unanimously.

Davin Hills recused himself from discussion and action regarding ClinicNote, Inc., and exited the meeting.  A copy of the notice of conflict is attached to these minutes.

ClinicNote, Inc. – Des Moines

MOTION: Rich Hichwa moved that the TCC recommend that the Economic Development Authority Board deny the application for a $117,000 Innovation Acceleration Propel award, seconded by Mark Kittrell. Roll call vote was taken.  Davin Hills was not present when the vote was taken.  Motion carried unanimously.

Hank Norem recused himself from discussion and action regarding Ag Manufacturing and Technology and exited the meeting.  A copy of the notice of conflict is attached to these minutes.

Ag Manufacturing and Technology – Prole

MOTION: Donna Ramaeker Zahn moved that the TCC recommend that the Economic Development Authority Board approve a $250,000 Innovation Acceleration Propel loan contingent upon securing a $500,000 match (2/1 ratio of match to award) and hiring a CEO to be repaid through royalty payments with terms as follows: repayment amount is 1.33 times the award amount paid back at 3% of total gross revenue for a calendar year with each payment due June 1 of the following calendar year, seconded by Emily Harris. Roll call vote was taken.  Hank Norem was not present when the vote was taken.  Motion carried unanimously.

TCC Chair Kathy Zehr announced a break for lunch at 12:35 p.m.

Closed Session

MOTION: Hank Norem moved that the TCC go into closed session at 12:49 p.m. pursuant to Iowa Code sections 21.5(1)a, 15.118, 22.7.3, and 22.7.6 to review and discuss records IEDA is required to treat as confidential under Iowa law.  The motion was seconded by Davin Hills. Roll call vote was taken.  Motion carried unanimously.

Gail Kotval exited the meeting at 12:56 p.m. and returned at 1:01 p.m.

Susan wood and Joshua Sherm of VIDA Diagnostics entered the meeting at 1:04 p.m. and exited at 1:39 p.m.

Gail Kotval exited the meeting at 1:39 p.m., returned at 1:41 p.m., left at 1:42 p.m. and returned at 1:43 p.m.

Mallory Stanek exited the meeting at 1:42 p.m. and returned at 1:44 p.m.

Kerri Yost exited the meeting at 1:43 p.m. and returned at 1:44 p.m.

TCC committee requested Susan Wood and Joshua Sherm with VIDA Diagnostics back in the room for additional questions at 1:59 p.m. Exited at 2:08 p.m.

Keith Neihaus and Dan Kielman of Crossroads Manufacturing entered the meeting at 2:15 p.m. and exited the meeting at 2:24 p.m.

Rita Grimm exited the meeting at 2:15 p.m. and returned at 2:16 p.m.

TCC committee called Kip Hagaman of The Oh Ball at 2:34 p.m. Call ended at 2:42 p.m.

Gail Kotval exited the meeting at 2:35 p.m. and returned at 2:37 p.m.

Liz Keehner exited the meeting at 2:36 p.m. and returned at 2:38 p.m.

Kath Zehr exited the meeting at 2:44 p.m. and returned at 2:46 p.m.

Ben O’Connell and Adam Keune of Higher Learning Technologies entered the meeting at 2:47 p.m. and exited at 2:52 p.m.

Emily Harris exited the meeting at 2:47 p.m. and returned at 2:49 p.m.

Open Session

MOTION: Mark Kittrell moved that the TCC go back into open session at 2:52 p.m., seconded by Hank Norem. Roll call vote was taken.  Motion carried unanimously.

Finkle and Sons dba The Oh Ball – West Des Moines

MOTION: Donna Ramaeker Zahn moved that the TCC recommend that the Economic Development Authority Board defer taking action on the request for payment deferral until the July TCC meeting, seconded by Rich Hichwa. Roll call vote was taken.  Motion carried unanimously.

VIDA Diagnostics, Inc. – Coralville

MOTION: Mark Kittrell moved, seconded by Rich Hichwa, that the TCC recommend that the Economic Development Authority Board approve a $500,000 Innovation Acceleration Expansion loan contingent upon documenting a match of $1 million and execution of a negotiated distribution agreement with Nuance to be repaid through royalty payments with terms as follows:

  1. Repayment amount is 1.5 times the award amount paid back at 1% of total gross revenue for a calendar year capped at $50,000 per year, with each payment due June 1 of the following calendar year.
  2. Full lump sum repayment of the loan required upon closing one or more funding rounds, the aggregate total of which is $5 million or more, subsequent to the pending $2 million raise. The amount of repayments is based on the length of time since IEDA disbursed funds:

- Less than two years since disbursement: 1.1 times loan amount

- Less than three years since disbursement: 1.2 times loan amount

- Less than four years since disbursement: 1.3 times loan amount

- Less than five years since disbursement: 1.4 times loan amount

- Five or more years since disbursement: 1.5 times loan amount.

Roll call vote was taken. Voting aye:  Mark Kittrell, Davin Hills, Emily Harris, Hank Norem, Donna Ramaeker Zahn, and Rich Hichwa.  Voting Nay:  Kathy Zehr.  Motion carried.

VIDA Diagnostics, Inc. – Coralville

MOTION: Mark Kittrell moved that the TCC recommend that the Economic Development Authority Board approve IEDA staff’s recommendation to add a repayment provision to Contract 15-IAFUND-007 providing that the award, less any payments made, shall be repaid in a lump sum upon closing one or more funding rounds, the aggregate total of which is $5 million or more, subsequent to the pending $2 million raise, seconded by Rich Hichwa. Roll call vote was taken.  Motion carried unanimously.

Crossroads Manufacturing, LLC – Clarksville

MOTION: Emily Harris moved that the TCC recommend that the Economic Development Authority Board deny the request to defer loan repayments until January 1, 2020 and approve payment restructuring by requiring the company to pay one-half the monthly payment amount through December 2019 and pay the full amount each month beginning in January 2020, seconded by Davin Hills. Roll call vote was taken.  Motion carried unanimously.

Stone Medical Corporation – Davenport

MOTION: Hank Norem moved, seconded by Emily Harris, that the TCC recommend that the Economic Development Authority Board approve the request for payment restructuring by amortizing the $42,000 balloon payment due July 1, 2019 over eighteen months at 3% interest with the following payment schedule:

  • July-December 2019: $2,000/month
  • January-June 2020: $2,500/month
  • July-November 2020: $3,000/month
  • December 2020: $1,239.29

Roll call vote was taken.  Motion carried unanimously.

Higher Learning Technologies, Inc. – Coralville

MOTION: Mark Kittrell moved that the TCC recommend that the Economic Development Authority Board approve the request that IEDA subordinate its UCC filing to a private lender that is providing a line of credit, seconded by Emily Harris. Roll call vote was taken.  Motion carried unanimously.

Next Meeting

The next meeting of the Technology Commercialization Committee is scheduled for July 11, 2019 at 9:30 a.m.

Adjournment

There being no further business at the meeting of the Technology Commercialization Committee,

MOTION: Kathy Zehr moved adjournment, seconded by Mark Kittrell. Motion carried unanimously. Meeting adjourned at 2:59 p.m.

Respectfully submitted,

Kerri Yost, Board Secretary

            ________________________

            Gail Kotval                                                 

            ____________________________

            Kathy Zehr

            Board Administrator

            TCC Chair                                        

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