Beamz Interactive, Inc. (BZIC) · aims to be the leading developer and marketer of a revolutionary...
Transcript of Beamz Interactive, Inc. (BZIC) · aims to be the leading developer and marketer of a revolutionary...
June 2014
“The Future of Interactive Music”
Beamz Interactive, Inc. (BZIC) Investor Presentation
Forward-Looking Information
This material is for information purposes only. The presentation may contain forward-looking
statements based on current assumptions and forecasts made by the management of Beamz
Interactive, Inc. Various known and unknown risks, uncertainties and other factors could lead
to substantial differences between the actual future results, financial situation, development
or performance of the company and the estimates given here. The company accepts no
obligation to continue to report or update these forward-looking statements or adjust them to
future events or developments. This material may not be reproduced, distributed or
transmitted to any other person or incorporated in any way into another document or other material without the prior written consent of Beamz Interactive, Inc.
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"Beamz Interactive is an emerging company that
aims to be the leading developer and marketer
of a revolutionary new laser controller and
interactive music technology in several multi-
billion dollar markets, including Education,
Health Care, Music, Gaming, Senior Care, and
other applications. As we roll-out our interactive
music apps and products, our long term goal is
to be a major player in this multi-billion industry.”
Charlie Mollo, CEO
Mission Statement
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• Leverage Beamz Intellectual Properties
– Expand Strong Patent Portfolio and Extensive Software / Content
– Promote Beamz® Brand
• Directly Pursue Two Key Markets With Initial Music Product
– Education & Health Care Market
– Selected Consumer Markets
• License / OEM / Partner Beamz Hardware and Software
– License / OEM / Partner Beamz Products and Technology
in Key Strategic Markets
• Develop and Implement Broad Content Business Strategy
– Promote Beamz Apps to Create Brand and Product Awareness
– Develop & Promote Music, Education and Health Care Content
to Beamz Hardware and App Customers
Beamz Business Strategy
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• Beamz Interactive Laser Music System
– Includes Beamz PC/Mac Player Software and
iOS App for iPhone, iPad and iTouch
– Windows RT and Android App Coming Soon
– Recording Capability, Custom Touch Layout,
Custom Volume Mix, Vocal Mute Button, Playlist, etc.
• Includes Specialized Education & Special Needs Content
– 50 Songs Tailored to Education and Therapy
– Activity Guides for Schools and Special Needs Applications
– Compatible with Various Communication Products
• Additional Capabilities
– Adjustable Beamz Width for Therapy Use
– MIDI Mode to Connect to Any Software that Supports MIDI
– Numerous Additional Song Content “Downloads” Available
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Beamz Education & Healthcare Product
Education and Healthcare Market
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• Hospitals
• Rehabilitation
• Physical, Occupational,
& Recreational Therapy
THERAPY
• Retirement
• Assisted Living
• Nursing Homes
SENIORS
• 130,000 + US Schools (K-12)
• Special Needs
• Music Programs
• Learning Disabilities
• Cognitive Development
EDUCATION DISABILITIES WELL SUITED FOR BEAMZ
US Afflictions
Disability ($ Thousands)
Visually Impaired 6,600
Tramatic Brain Injury 5,000
Mental Retardation 6,500
PTSD 5,200
Other Physical Therapy 2,900
Autism/Asperger’s/Rett 800
Cerebral Palsey 800
Stroke/Aphasia 800
Down Syndrom 400
Spinal Cord Injuries (SCI) 300
Multiple Sclerosis (MS) 300
MD 50
ALS (Lou Gehrig's Disease) 30
Williams Syndrome 30
TOTAL US INDIVIDUALS WITH DISABILITIES 29,700
EQUALS MULTI- BILLION MARKET OPPORTUNITY
• Special Needs & Music Education
– Direct Outreach to Regional School Centers – Leverage Education Resellers
– Tech For Education -- S & S Worldwide
– Rehab Mart -- Enabling Devices
– Info Grip -- SteptimeWare
– Music in Motion -- Inclusive Technology
– Spectronics -- AT Link
– Westminster Technologies -- Dagesh
• Leverage Tobii Partnership
– Communication and Eyegaze Bundles – 60 Worldwide Re-Sellers, Over 25 US Sales Reps
• Implement Digital Marketing Program
– Occupational, Physical, & Recreational Therapists – Individuals – Parent and Strategic Organizations Such as Easter Seals, Autism Speaks, United Cerebral Palsy, etc.
• Pursue Senior Care Facilities – Retirement, Assisted Living and Nursing Homes – Leverage Music TheraPlay
Education and Healthcare Marketing Plan
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• Digital Song Content
– Currently 500+ Songs Across All Music Genres
– Extensive Licensing Rights (i.e. Disney, Warner, Sony, etc.)
– Original Music, Cover Songs, Karaoke, Music Videos
• Activity Guides
– Structured Activities with Tailored Music for Specific
Educational, Therapeutic, and/or Learning Programs
– Family and Group Play Activities
– Initial Content Developed with Lekotek, Future Additional Partners
• Ongoing Content & Annual Subscription Programs
– Ongoing Expanded Printed Activity Guides
– Video Education Units for Self-Guided Instruction
– Ongoing Song Library Expansion
– Music Theory Collaboration with Leading Content Providers
– Connected Learning Programs
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Education and Healthcare Content Strategy
• Texas School System (K-8)
– Public Schools: 20 Regional Centers, 1,241 Districts,
and 5,500 Schools – 49.5 Million Students
– Private Schools: 1299 Schools
– 5.3 Million Students
• Beamz Initial Hardware Sales Opportunity
– 2 - 6 Units per School
– ASP: $300
– $6 Million Initial Sales Opportunity – (Assuming Average 3 Units per School)
• Follow-On Content & Subscription Sales
– Annual/multi-year subscription option
– Specific content and module purchase options
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Texas School System Example
• Beamz Interactive Laser Music System
– Includes Beamz PC/Mac Player Software and
iOS App for iPhone, iPad and iTouch
– Windows RT and Android App Coming Soon
– Recording Capability, Custom Touch Layout,
Custom Volume Mix, Vocal Mute Button, Playlist, etc.
• Includes 34 Interactive Songs and Music Videos
– Exclusive Flo Rida Song, Plus Several Flo Rida Hits
– Genres Include Pop, Rock, Country, EDM, etc.
– In the Style of Such Artists as Coldplay, Carrie Underwood,
Justin Timberlake, AC/DC, Katy Perry, Adele, Rihanna, etc.
• Additional Capabilities
– MIDI Mode to Connect to Any Software that Supports MIDI
– Optional Virtual DJ and DJ Player Software Download for Aspiring DJ’s
– Numerous Additional Song Content “Downloads” Available
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FLO RIDA
Beamz by Flo Consumer Product
• Kids (5 plus)
• Teens / Tweens
• Moms & Dads
• Grandparents
• Aspiring DJs
• Mobile DJs at Parties
• 18-35 Year Olds
FAMILIES
ASPIRING DJ’S
Consumer Market
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MUSIC
ENTHUSIASTS
• Recreational Music Making
• App Enjoyment
• Garage & Rock Band
Enthusiasts
• 80% of U.S. wish they played an
instrument
• Over 45 million people play an
instrument
• $7.5 billion music market with sizable
growth
• Over 100 Million VDJ home DJ
downloads
• Guitar Hero/Rock Band Achieved
Billions of Dollars in sales
($10.7 billion gaming market)
• Over 1 Billion target mobile devices
KEY STATISTICS
• Create Consumer and Industry Awareness
– Implement Targeted Digital Marketing Programs
– Leverage Education Market Awareness
– Pursue Select channels, including Aspiring DJ market
– Promote Beamz Free App
• Pursue Strategic Partnerships As Awareness Expands
– Consumer, Music and Gaming Partners
– OEM and Licensing Arrangements
Consumer Sales and Marketing Plan
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• Lekotek Top Five Product
• Best DJ Gear At Musikmesse 5 stars
• Billboard.com Top Five “Coolest” Products at CES 2011
• Best of CES 2011 by Leo Laporte on ABC’s
LIVE! With Regis & Kelley
• Digital Trends - Best of Toy Fair 2011
• Dr. Gadget 2013 Must-Have Holiday Gift on
The Wendy Williams Show
• NBC’s Extra; CBS’ The Talk; ABC’s The View
• The Toy Man® Product Guide – 5-Star Rating
• Seal Of Approval 2011-2012; Recipient of: – The Toy Man® Award of Excellence
– The Toy Man® eChoice™ Award
• Toy Insider 2010 Holiday Gift Guide – Top Item for Tweens
Awards and Recognitions
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IP Portfolio Includes 5 Issued U.S. Utility Patents (Plus 2 Design Patents):
• Patent 6,960,715 - Has several independent claims covering various aspects
of a music instrument operable by using electromagnetic beam emitters
• Patent 7,504,577 B2 – Broader patent that covers the Beamz concept at a
very high level. Generally covers beam emitters, detectors, music, etc.
• Patent 7,858,870 B2 - Broader claims than ‘577 B2. Covers a device
wherein the triggers are generic, and music programs are a subset of a composition
• Patent 8,178,773 - Covers the Beamz Studio product, including a graphical
user interface that enables the Beamz product to be user-programmed
• Patent 8,431,811 - Covers a multimedia device allowing a user to play a song in association
with displayed video images
13 Pending Applications:
• International patents, DJ mapping patents, proximity and gaming patents
Extensive software, music engine, copyright, and music license rights
Intellectual Property Portfolio
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• Over $18 Million Invested
– Patents, Music Engine, Apps, Beamz Products, Music Production
and Licensing, Market Development & Testing, Infrastructure
– About $10 Million from Management / Directors
• 2013 Invested Heavily in 3rd Gen Products, Technology and Apps
– Includes Significant Non-Cash Expense
– Development Now Complete
– Now Need to Invest in Sales & Marketing
• Calendar Q4 2013 $170K in Sales
– About $70k Q1 2014, Followed by Expected Material Q3-Q4 and
2015 Growth
• Clean Balance Sheet
– Only Debt is $4.8 Million Convertible Debt
(Primarily with Management / Directors)
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Historical Financials
• Hardware Margins 50% plus
– Calendar Q4 2013 over 50% When Adjusted for
Warehouse Consolidation
• Content Margins 70-90%
– Includes Songs, Educational Content, Therapy
Content, etc.
– Long Term Razor Blade Opportunity
• Pre-Tax Margins 40% Plus With Sales Volume
• Current Cash Operating Expenses: $80 – 100k/ Month
– Break Even around 350-450 Units / Month
– Will Ramp Sales and Marketing Expense with Growth
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Financial Model
Common Stock 30,111,896
Preferred Stock (as if converted) 7,960,391
Convertible Debt (as if converted) 16,079,405
Options and warrants 1,250,330
FULLY DILUTED SHARES OUTSTANDING 55,402,022
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Capital Structure As of April 22, 2014
• Experienced Management Team
• Strategic Positioning Completed 2013
• Highly Leverageable Financial Model
• Significant Multi-Billion Market Opportunities
• Strong Product and Intellectual Property Portfolio
Investor Highlights
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Beamz Interactive, Inc.
Charlie Mollo, CEO
505.263.9707
Contact
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