CounterWatch - Investor Presentation The Product & Opportunity

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" The Ultimate Pet Training System & Deterrent Product “ UTILITY PATENT PENDING : REG. NO. 14486090 DESIGN PATENT PENDING : REG. NO. 29507159 INVESTOR PRESENTATION THE PRODUCT & OPPORTUNITY

Transcript of CounterWatch - Investor Presentation The Product & Opportunity

" The Ultimate Pet Training System & Deterrent Product “

UTILITY PATENT PENDING : REG. NO. 14486090

DESIGN PATENT PENDING : REG. NO. 29507159

INVESTOR PRESENTATION

THE PRODUCT & OPPORTUNITY

My name is Shawn Tait, and this is my son Keenan Tait,

and were from Seattle Washington...

How’s everybody doing this morning ?

First of all, I would like to thank you all... for taking the

time out of your schedule, and allowing me to present

you with a product, that I think you will find new and

exciting... and a product with a bit of fun built-in to it.

CounterWatch™ Sentry

Real Quick !...

What is the top pet-peeve of cat owners ?

How much money do you think we can make, offering a highly effective and

stylish hi-tech product to eliminate all of the cat owner’s top pet-peeves ?

Think about it… NO more cats…

Getting on Kitchen Countertops

Climbing up Curtains and Drapes

Soiling Carpeting and Floor Areas

Indoor Cats Attempting to Escape Outside thru Doorways

With (95M*) pet cats alone in the US, and

(127M*) In the other Top Ten Major Countries…

That's 193M* Pet Cats in the World's Top Ten Countries.

Over one third of Pet Cat Owners in the USA, own 2* or more cats, and over

one quarter of Pet Cat Owners, own three or more cats...

Pet Products are truly a mass market items !

Its’ Time to Make Some Real ROI !

Age Old Cat Problems Solved with

CounterWatch™

MSRP : $46.95

Allow me to introduce myself, my name is Shawn Tait and my passion is, and always has been to solve a physical problem, create a solution to the problem in the form a needed product, and then successfully bring these new product concepts to market and enjoy the rewards.

As a Manufacturing Engineer exclusively working with New Product Development Teams, I successfully developed patentable new products for Siemens (Medical Device div.), Bendix Electrodynamics (US Military Vendor), Echlin Corp. (largest Automobile Aftermarket Parts Mfg.) and the Aerospace and Motorsport Racing Industries.

Please allow me to give you all some perspective of myself and brief history. Do you want to hear the longer 2-3 minutes " Go-Fast Story ". You'll find it in the Appendix section, it's a page long... it's a fun life.

At the age of 56, I am a proven successful entrepreneur of 25+ years experience, small business owner, manufacturing engineer and consummate realist.

Product Concept to Market Success is what I do best...

" The Ultimate Pet Training System & Deterrent Product “______________________________________________________________________________________________________________

CounterWatch™… a portable hi-tech pet deterrent and trainingdevice, that is a compact, low cost, and is an extremely effectivesolution for training and deterring indoor pets away from off-limits unwanted areas or unwanted surfaces.

Keep Pet Cats…

off your countertops and tables

off your furniture, shelves and bed

from climbing curtains or drapes

soiling carpet and floor areas

from loitering at entry door to escape outdoors

Cats just don't like being squirted with simple inexpensive water or the smell of CounterWatch™ Organic Aromatic Deterrents.

CounterWatch™ has 5 pet training and deterrent modes whichkeeps the cat from assimilating to the same deterrent event.

Spray Only - Spray & Voice – Voice Only

Fill with water for direct active contact with pet.

Fill with scent deterrent for passive non-contact with pet.

Voice = User Recorded Audio for Playback (up to 10 seconds).

Playback Message, Sound, Command or Reprimand.

Low Profile Stylish Stealth Design. A Designer Pet Product.

CounterWatch™ is the only ergonomic and esthetically High-Tech Cat Deterrent and Training

Product designed to please even the most discerning pet owner.

SolidWorks CAD - Virtual Prototypes

Ready to Manufacture

Available in most colors – Mono or Two Tone

Assembly with Translucent Reservoir

Easy setup

and use :

2. Fill with your Favorite Deterrent

1. Simply Add Batteries

4. Place Horizontal or Vertical Position3. Set Deterrent Mode,

Record Playback MSG &

Adjust Spray Nozzle

Current Status of Manufacture : CounterWatch

Working Electronics System has Been Demonstrated to Work Reliably and Efficient with Power Source Reserves. All Tested and Ready for Production.

Working Fluid Dispensing System has Been Demonstrated to Work Reliably and Efficiently. All Tested and Ready for Production.

Working CounterWatch™ Prototypes 001-003 are nearly completed.

How Much to Manufacture : CounterWatch

$8-$10 USD Landed; Std. or Deluxe Model. Constructed from High Quality Chinese Components and Assembled in USA Ensures Customer Satisfaction.

Product Specifications : CounterWatch

Size : 5.5"(141mm) x 2.75"(70mm) x 1.9"(49mm) Weight : 8oz.(225gr)

Power Supply : 6VDC (4x1.5v AA Batteries)

Suggested Retail Price : CounterWatch

$44.95 USD Standard Model

$48.95 USD Deluxe Model

Brilliant and Fashionable Hydrographic pattern

finish applied to CounterWatch™

Available in the color or design of your choice.

For fun… Wild Cougar Print, or for profit... ‘Hello Kitty’UTILITY PATENT PENDING : REG. NO. 14486090

DESIGN PATENT PENDING : REG. NO. 29507159

Stock-Line Suggested Color Schemes :

Two-Tone Models

Mono-Tone Models

UTILITY PATENT PENDING : REG. NO. 14486090

DESIGN PATENT PENDING : REG. NO. 29507159

All Models have Translucent Spray Fluid Reservoir to View Available Deterrent Supply Level.

SolidWorks CAD - Virtual Prototypes

Ready to Manufacture

Audible (by Animals & Humans) Single Noise Deterrent

Have a major limitation with today's modern home full of audible

sounds, beeps, voices, such as from microwave ovens, coffee pot

timers, voices on radio-TV, and other sound emitting devices.

TattleTail

Single Tone Audible Deterrent

MSRP : $29.95

CatScram

Ultrasonic In-Audible Deterrent

MSRP : $39.95

Ultrasonic In-Audible (by Humans) Single Sound Deterrent

The question always remains with in-audible (by humans) type of

device deterrent, is the device even working properly, since you can't

even hear it (in-audible) when it is working properly. As per one of the

nations top retailers in this category, states in their disclaimer…

Pets Quickly Assimilates to, or Unable to Hear Sound Deterrent Event.

The fine print…

"A cat may not respond to the CatScram. This happens because some cats lack the

capability to hear noises as high pitched as that emitted by the CatScram. This is

more common in older cats who have lost some hearing range, very young cats

who have not yet fully developed, and occasionally in rare purebreds."

The pet to be deterred therefore quickly assimilates to a single audible deterrent

sound, as the pet is unable to differentiate from device deterrent audible sounds

from environmental or ordinary daily household sounds and noises.

Mats-Audible Deterrent

Place Mat in/on Off-Limits Area, Pet Walks on Mat, Mat Senses Pet, Emits

Audible Sound/Beep. Product is hindered by today's modern home full of

audible sounds, beeps, voices etc., such as from microwave ovens, coffee

pot timers, voices on radio-TV, and other sound emitting devices.

Mats-Electric Shock Deterrent

Place Mat in/on Off-Limits Area, Pet Walks on Mat, Mat Senses Pet, Emits

a Electric Shock to Pet.

Quite Effective for Pets & Children.

Mats-Prickly Deterrent

Place Mat in/on Off-Limits Area, Pet Walks on Mat, Mat is Constructed

with Nail Like Protrusions. Effective for Small Horizontal Surface.

Approximate size : 18” x 18” square.

Must be Removed and Stowed before Human Can Use Pet Off-Limits Area

Shocking Your Pet is Not Cool !

Take Care Around Young Children !!

Sofa ScramMat

Audible Tone Deterrent

MSRP : $39.95

ScatMat

Electric-Shock Deterrent

MSRP : $59.95

XMat

Stepping On Nails Deterrent

MSRP : $18.99

Very limited use area, about the size of a folded newspaper.

Pet quickly assimilates to a single audible deterrent sound, as the pet is unable to differentiate

from device deterrent audible sounds from environmental or ordinary daily household sounds.

PawzAway

Spray Air Deterrent

MSRP : $36.95

Consumable Refills : $12.99

SSScat

Spray Air Deterrent

MSRP : $38.95

Consumable Refills : $13.95

Spray Air Deterrent Devices

Place Device in/on Off-Limits Area, Pet Walks in Sensor Range, Device

Emits Short Blast of Canned Air. Effective for Horizontal Surface.

However… Consumable Aerosol Deterrent Refills make It Absolutely Cost

Prohibitive To Operate (i.e. one stubborn pet cat in a household may

trigger canned air blast usage of 2 or more proprietary and expensive

canned air deterrent refills @ $10 each weekly; that's $20 a week !... for

one cat !!). Imagine if you have 2 or more cats as most households often

have, the cost of weekly refills then become a real issue.

Redirect Sensor or Turn Off before Human Can Use Pet Off-Limits Area.

Consumers understandably are resistant… to the high cost of consumable

propriety canned air refills that begin to quickly add up for the pet

owner, very fast, product often shelved because of high operating cost !

Buyers’ like it at first… then hate the cost of refills… then don’t use them !

In just 1 months time…

Pet Owners could Spend More $$$ in Canned Air Refills,

2-4x the Product Costs ! … CUSTOMERS’ Don’t Like This !

Plus… unable to view or detect remaining deterrent supply !

CounterWatch device uses means and methods that join active contact and non-contact passivetraining and deterrent methods, together creating a synergistic result in the training and deterrentof the indoor household animals.

Why Our Product is Best :

No Mandatory Consumables to Buy, Simply Refill with Tap Water

or CounterWatch™ Aromatic Organic Citrus Scent Deterrent.

Unattended Hands Free Operation

No Electrical Shock Hazard

Small Footprint

Cats unlikely to assimilate to multiple varying deterrent events.

Can be used both on horizontal surfaces, or hung from a vertical surface.

Low Profile Stylish Stealth Design. A Designer Pet Product.

CounterWatch™ is the only ergonomic and esthetically High-Tech Cat Deterrent and Training System designed to please even the most discerning pet owner.

Advantages over competition : No Expensive Proprietary Canned Air Deterrent Refills to buy. Deterrent Supply Level Visible with Translucent Reservoir. No Cruel and Barbaric Shocking of your Pets or Young Children. No Mats to Remove and Stow Before The Pet Owner Uses Pet Off-Limits Areas.

Pet Cat Owners… Instantly See the Value of CounterWatch™ over any competitor !

Well I'd like to take a moment to speak about the Pet Market and the Market Potential of

the New Product CounterWatch™. It is truly a mass market with continual stable growth.

After presenting you with this product, I am confident you will see the Market Potential of

CounterWatch™, and the mass profits it can generate.

Pet Cat Owners have been searching forever for a low cost pet deterrent or training device and or

method, that can prevent cats unwanted behavior and or intrusions.

*** If such a device and or method became available, perhaps the pet owner may want "to use this"

in the kitchen, the living room and bedroom purchasing multiples of CounterWatch™. ***

Pet Cats in the USA (95M*, 76M***) | Remaining Top Ten Major Countries (127M*)

That's 193M* Pet Cats in the World's Top Ten Countries.

Over one third of Pet Cat Owners in the USA, own 2* or more cats.

Over one quarter of Pet Cat Owners, own three or more cats.

People love and spend money on their beloved cats... AND Lots of money... from fancy pet

foods, fancy pet toys, and while the pet owner typically also likes their fancy kitchen countertops,

fancy floors and carpeting, and fancy furniture (unsoiled & intact)...

Unfortunately... our feline friends often...

do not respect cherished belongings the same way as us humans do.

“ Even during the Great Recession,

which slowed demand throughout most

of the retail sector, the industry

continued to yield revenue growth. This

trend was mainly driven by an

increasing number of pet parents, or

pet owners who treat their four-legged

friends as family members. “

“ In the five years to 2014, industry

growth has largely been attributable to

higher pet ownership and accompanying

demand for pet products. ”IBISWorld 2014 US Pet Industry Report

It's a fact !... the pet industry

continues with strong annual growth

every year... and is proving to be

immune to any lack-luster economy.

CounterWatch™

is that right product !

Product Licenseing Business Model

CounterWatch™ : MFG Cost : $9.00

CounterWatch™ : DLR Cost : $21.25 5% Royalty per Unit : $1.00

CounterWatch™ : MSRP : $46.95 * Licensing Royalty % = 3-7% of Wholesale Sales is Industry Standard.

Manufacturer to Distributor Business Model Channel GM%

CounterWatch™ : MFG Cost/COG : $9.00 50%

CounterWatch™ : DIST. Cost : $18.00 15% 50% Mfg. Profit per Unit : $9.00

CounterWatch™ : MSRP : $46.95 55% * Distributor Profit Margin Selling Wholesale to Retailiers = 5-15% Industry Standard.

Market

ShareRetail Store

Store

Locations

Realistic

Sales Level

Weekly Unit Sales

per Store

Annual Unit Sales

per Store

Weekly

Royalty

Profit

Annual

Royalty

Royatly

or

Mfg.

Weekly Mfg.

Profit

Annual Mfg.

Profit

40% PetSmart - USA & Canada 1,500 Median 2.75 143 $4,120 $214,232 <----> $37,105 $1,929,472

20% PetCo - USA & Mexico 1,500 Median 1.5 78 $2,247 $116,854 <----> $20,239 $1,052,439

40% Independent Pet Retailers - USA 11,800 Median 0.75 39 $8,839 $459,625 <----> $79,608 $4,139,595

" Wal-Mart Super Center - USA 3,000 Median 1.25 65 $3,745 $194,756 <----> $33,732 $1,754,066

" Wal-Mart - USA 1,200 Median 0 0 $0 $0 <----> $0 $0

Independents and Non-Specialty Stores (such as the local pet stores and Amazon, Walmart etc.) as of 2014 = 40% Market Share. 17,932 Stores including Wal-Mart.

<Distributor Sell-To Price>

OR

<Dealer Wholesale Sell-In Price>

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

1

Profit Revenue - Product Licensing or Manufacturer to Distributor Model

License to PetCo - USA & Mexico

License to PetSmart - USA & Canada

Distribution to Independent Pet Retailers

Distribution to PetCo - USA & Mexico

Distribution to PetSmart - USA & Canada

Distribution to Wal-Mart - USA

Licensor Business Model Manufacturer to Distributor Business Model

* Depending on Investor Interest *

Product Developer is receptive to

2 Separate Business Models, Monetization Paths,

& Business and Marketing Plans

CounterWatch™

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Short-Term Investment Opportunity

Applicable to the Licensor Business Model - Product Launch to Market Phase

First Round Funding : Seeking $100,000 in Loans

(up to 25 investors @ $1K-$100K each)

Used for : USPTO Foreign PCT Patent Application filing, completing prototypes, professional electronics design, press releases, media and social network blitz, presentation costs (including airfare & lodging), marketing materials, and minimal operating costs.

Term : 24 months

ROI 22.5 % APR : Interest Paid in Full to Investor at 18th month mark for 24 month loan, principal loaned Paid in Full the 24th month, or if both parties are in agreement, investor may convert principal loaned amount, plus an added investor conversion bonus of 15% of loaned amount, to an equity stake, based on current valuation of entity or common stock value, and receive semi-annual equity based percentage profit sharing payments.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Licensing Opportunity

Exclusive Foreign License For Sale

Exclusive Foreign Manufacturing and or Distribution License by Country

Price : $100,000 Licensing Fee per Country with 5% Royalty on Annual Gross Sales

Minimum Annual Gross Sales Requirement : TBN

Royalty in Perpetuity Payments : Paid Quarterly

Term : 5 Years________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Short-Term Equity Opportunity

Applicable to Manufacturer to Distributor Business Model – Product Launch To Exit Strategy

Current Pre-Market Product Valuation : $1,200,000

(based upon 2015 and 2016 Sales Forecast-Income Statement)

- NO SALES TO DATE AS THIS IS A PRE-MASS MARKET PRODUCT –

Equity Partner Offer : $300,000 Buy-In for 25% Equity Stake in CounterWatch™, including the

Value of Patents Pending, Trademarks, Domestic and International Licensee Paid Royalties, and

Profits generated by General Worldwide Sales of CounterWatch™.

Equity Partner Qualification : Must have the Financial Ability to Initially Fund up to $300,000 for

Tooling Cost, Inventory, Marketing, Daily Operations, Warehouse, and to Scale CounterWatch™ to

International Markets. With profits realized, the Product Developer repays 75% of Initial Funding.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Exit Strategy Agreement : Within 2-3 years after product launch and or

suitable moderate market penetration has be achieved, Product Developer

proposes selling manufacturing business, recovering monetary investments,

while maintaining Manufacturing Licensing Agreements for CounterWatch™

for Royalty in Perpetuity.

CounterWatch™

AUTOMATIC SPRAY DETERRENT SYSTEM

USPTO Private PAIR Registered; Inventor #126527

Current IP Status of Utility PatentPATENT PENDINGReg. No. 14486090Filed 09/15/14

Current IP Status of Design PatentPATENT PENDINGReg. No. 29507159Filed 10/24/14

Current IP Status of USPTO PCT Foreign FilingAwaiting Investor Capital Infusion.Reg. No. TBATo be Filed TBA

Current Registered Trademark StatusReg. No. TBATo be Filed 12/30/14 CounterWatch™

Sentry

Emerge Products, LLC

Seattle, WA USA

Website :

TBA

Contact Info :

Shawn Tait

[email protected]

425.753.0802

Appendix :

Product Developer Shawn Tait and the Go Fast Story…

Early Pictures of the First CounterWatch™ Prototype 001

CounterWatch™ Virtual Prototypes in Various Colors

Retail Packaging and Display Suggestions for CounterWatch™

Pet Market and The Economy - Sources & References

Sources of Referenced Information

Supporting Documents Available :

Utility Patent Application in Issued Pro-Forma Format

Design Patent Application in Issued Pro-Forma Format

Business Plan, Marketing Plan, Timelines & Financials

Manufacturing CounterWatch – Cost, Facility and Details

Trade Mark Documentation (to be filed 12/30/14)

IBISWorld Industry Reports - 2014 US Pet Store Industry

CounterWatch™ Instructions and Training Guide

My History and Passion ("My Go Fast Story") : It all started for me at the age of 7… I wanted to go-faster, as I told mommy

sitting in my racing go kart, mom says “we have no money to buy those high-tech go-fast racing parts, sorry”. So I had to

figure out my own way to go faster.

At the age of 7-12 years old, I studied every math and engineering book I could get my hands on (from old engineering

library books and college textbooks), and began learning how to design, develop and make my own motorcycle go-fast parts

(among everything else!, that interested me). But most of all, first I still needed to make money to buy the needed

materials to make those new racing parts (products) that are in my mind.

By the age of 12 years old, I was on my way funding my new product ventures through my hard work and natural

entrepreneurship. I had several daily paper delivery routes and was starting to sell my newly developed and produced

racing parts.

With junior high metal shop and high school machine shop classes, this gave me the perfect learning environment for

R&D, making prototypes and producing my racing parts, utilizing the foundry, lathes, mills, fabrication equipment and

welding equipment.

I also took electronics classes which taught me the fundamentals of electronic design and implementation. With both

mechanical and electronics background, I could now invent, test and bring quality and reliable product concepts to

fruition at the lowest cost possible. Often aided by re-purposing existing items to be utilized in my newly designed products

to reduce R&D cost, and the time it takes to be first to market.

In my earlier years up to age 30, I successfully developed patentable new products for Siemens (Medical Device div.),

Bendix Electrodynamics (US Military Vendor), Echlin Corp. (largest Automobile Aftermarket Parts Mfg.) and the

Aerospace and Racing Industries. At age 30, I was done with Corporate America, began to create my own future.

At the age of 56, I am a proven successful entrepreneur of 25+ years experience, small business owner, manufacturing

engineer and consummate realist.

Product Concept to Market Success is what I do best.

Please contact me directly, if your interested in sharing future successes together.

Shawn Tait

In a Bathroom Setting

Fresh off the 3D

Printer…

Looks Great,

Works Great, and

Feels Great in the

hand.

In a Kitchen Setting

Black over

Beige

Std. Model

In a Kitchen Setting

Beige

Std. Model

In a Modern Kitchen Setting

Mono-Tone

Red

‘The

Italiano’

Model

Protecting Curtains and Area

Shown in a Vertical

Hanging Position

In a Entryway Door Setting

Shown hanging

from door knob.

Keep indoor pets

from loitering

and or escaping

to outdoors.

In a Living Room Setting

Shown guarding

couch and table

areas using non-

contact passive

‘Aromatic Scent

Deterrent Mode’

In a Bedroom Setting1

Shown guarding

a bed from an

unwanted

lounging pet.

Keep your bed

area clean of

pet hair or fur.

In a Bedroom Setting2

Shown guarding

entry door from

escaping indoor

pet. And

Protecting your

bed from getting

all ‘Furred Up’.

Inexpensive Logos, Licensing or Designs Easily Applied…

Simply process of

dipping Top

Cover in to the

hydrographic

coating solution

before final

assembly.

Extremely

Durable !

CounterWatch™ Shown in Clamshell Packaging

For further information about the continuing strong growth and rise in sales of pet products, and this industries ability to avoid fluctuations in the health of the economy.

10 Surprisingly Recession-Proof Industries - HuffingtonPost.com

http://www.huffingtonpost.com/2010/07/06/10-surprisingly-recession_n_628015.html

Best Recession-Proof Businesses - Entrepreneur.com

http://www.entrepreneur.com/article/48702

Is the pet industry recession-proof ? - NY Daily News

http://www.nydailynews.com/news/money/pet-industry-recession-proof-new-yorkers-spending-pets-article-1.361421

The Top Pet Industry Trends for 2012 - Pawsible Blog

http://www.marketingmypetbusiness.com/2012/01/top-pet-industry-trends-for-2012.html

Pet Industry Booming, With Sales of Gourmet Treats - NYTimes.com

http://www.nytimes.com/2011/06/05/business/05pets.html?pagewanted=all&_r=0

The doggone truth- Spending on pets is soaring - NBC News

http://www.today.com/money/doggone-truth-spending-pets-soaring-1C6656491

Why One Recession-Proof Industry Just Keeps Growing - Forbes.com

http://www.forbes.com/sites/caroltice/2012/10/30/why-one-recession-proof-industry-just-keeps-growing/

Humane Societies and Pet Associations :

*The Humane Society of the United States - U.S. Pet Ownership Population Estimates

http://www.humanesociety.org/issues/pet_overpopulation/facts/pet_ownership_statistics.html

**ASPCA - U.S. Pet Ownership Statistics

http://www.aspca.org/about-us/faq/pet-statistics

Reference and Statistical Data Sources :

***Compare Infobase Limited - Top 10 Countries with the Most Pet Cats

http://www.mapsofworld.com/world-top-ten/countries-with-most-pet-cat-population.html

IBISWorld Industry Reports - 2014 US Pet Store Industry

http://big.assets.huffingtonpost.com/ibis.pdf

Pet Business - 2014 Pet Business Top 25 Retailers

http://www.petbusiness.com/articles/2014-01-01/Head-of-the-Class

Major Domestic Pet Product Retailers :

PetSmart® Company Information

http://phx.corporate-ir.net/phoenix.zhtml?c=93506&p=irol-homeprofile

PetCo® Company Information

http://www.hoovers.com/company-information/cs/company-profile.PETCO_Animal_Supplies_Inc.7801f7cf599caeb2.html

Walmart Corporate - Locations by Country

http://corporate.walmart.com/our-story/our-business/locations/

Trade Periodicals :

Pet Age

http://www.petage.com

Pet Business

http://www.petbusiness.com

Pet Product News International

http://www.petproductnews.com

Trade Shows :

Global Pet Expo - Orlando Florida

http://globalpetexpo.org/Default.asp

Total Pet Expo - Chicago Illinois

http://www.totalpetexpo.com

SuperZoo - Las Vegas Nevada

http://www.superzoo.org