United States, Fl... Preferred Partner "History. The XS Energy initiative was started in October, 1997, after more than a year of due diligence, and nearly three years following its conceptual roots in technology development for Children's Storybooks. The Business. The business is based upon the rights to use of U.S. Patent No. 5,597,183, dated January 28, 1997, entitled ""Interactive Book Having Electroluminescent Display Pages and Animation Effects"" (the ""Patent""), and anticipated future benefit derived from current and planned patent applications and ongoing product development The Patent is licensed exclusively to XS Energy, Inc. ( the ""Company"" ) for a perpetual term. Focus. The Company's initial business focus is that of offering an innovative high-tech product alternative to select, low-tech markets through the marketing, sales, engineering design, and development of its proprietary technology. The manufacturing processes will be carried out by existing companies specializing in the various disciplines required. Capability. XS Energy can produce print media, with lighted animation effects, sound effects, touch switching, and other sensory features to create a complete multimedia presentation on a sheet as thin as a business card and equally flexible. The Product. The Company's manufactured product is Interactive Print Media (IPM) which is designed to enhance simple print in books, greeting cards, promotional items, POP advertising (merchandising), and virtually any communications-driven print application, with back-lit animation and sound effects, plus enabling viewer interactivity with touch switching. The finished product is thin and flexible like print, while offering an affordable multimedia presentation in the place and format of single-media print. As an example, the number of POP advertisements (""ads"") any given customer may pass by while shopping in a convenience store or supermarket is significant. However, the number of POP ads noticed or remembered is typically few to none. IPM captures the attention of an otherwise distracted or disinterested audience, and holds it. This is very valuable to advertisers and promoters. IPM technology is patented, and incorporates, within print media, the seamless integration of electroluminescent (""EL"") segmented back-lighting which creates a secondary page image, pre-programmed sound, solid state scent generation, and other effects, combined with touch switching to (de)activate or alter programming. With mini sensor activation and battery power, IPM may be portable and operationally independent. The interactive presentation maintains industry compatibility with all the key standards of creative design and print, while offering the conveniences and economy of advertisement and communications on a similarly printed page. The Patent. Title: ""Interactive book having electroluminescent display pages and animation effects"" U.S. Patent No.: 5597183 Date of Issuance: January 28, 1997 Current Assignee: xs energy international, inc. Claims Granted: 19 NOTE: A second patent application, titled ""Panels With Animation And Sound"", serving as support and extension of the original Patent, has been approved per report by the U.S. Patent And Trademark Office, and will soon be granted a U.S. Patent number for availability and exclusive Company use. The Industry. IPM offers added dimension to a medium restricted with only one. Being the form of choice for specialty publications and personal greeting, and for in-store and outside advertising, the effectiveness of 1-D print-media in presenting a message in an interesting fashion has played out many times over the years. To the AD developers and publishers, it has become creatively challenging to stand out with this form in an increasingly competitive environment. IPM offers the visionary a tool to express his message in many new ways, without diverging from a most familiar and affordable format. Introduction of IPM for print-media advertising is a pioneering effort into an established and mainstream platform. Its compatibility with current industry standards for design and production adds unique synergy and uninhibited potential for acceptability, to what is otherwise an entirely new approach to print-media communications. The Competition. The IPM concept resides in patented space. There is no direct competition to the technology or the product at relative price-point. Competition is therefore identified as all other communications vehicles, primarily simple print and secondarily other light and/or sound enhanced platforms, which are adequately suited to vie for the same budget dollars of a given program, as those targeted by the Company. The Markets. The theoretical market for IPM products encompasses all applications of print. XS Energy market study and analysis has concluded that IPM may be profitably marketed into a few key market segments during the Company's start-up and industry pioneering stages. These have been qualified, with projected revenues ramped into plan based upon an overall acceptance strategy and development timeline, as follows: Pioneering Est. Market Est. Initial Planned Initiative General Market Target Market Segments Segment Value Accessible Size Ramp-In 1st Promotional Novelty, Premium Incentive $ 3,000,000,000 $ 250,000,000 Y-1, Q-1 2nd Advertising Point Of Purchase (POP) $ 4,000,000,000 $ 950,000,000 Y-1, Q-2 3rd Advertising Outdoor $ 2,000,000,000 $ 124,000,000 Y-1, Q-3 4th Greeting Cards Specialty $ 1,000,000,000 $ 53,000,000 Y-1, Q-4 5th Books/Publishing Educational, Children's $ 3,000,000,000 $ 74,000,000 Y-1, Q-4 Summary Business Plan. The Company has developed a comprehensive, but flexible, plan to introduce its proprietary technology and know-how into the print-media markets through both targeted and general marketing initiatives spawned and managed by XS Energy staff. Market analysis has demonstrated that reception will be strong to the IPM product concept and applications. XS Energy staff will follow up on marketing initiatives and coordinate the market response between in-house and field sales personnel and staff engineers to develop suitable opportunities. Product orders will be accepted after all nature of design criteria and finished detail has been specified and approved by the customer. Manufacturing will be executed by 3rd-party vendors under the management of Company engineering staff and subject to design and performance specifications of the project. Testing specifications throughout the manufacturing process and at final assembly will control and assure quality of the finished product. Customer relations, vendor selection, procurement, payment, QC/QA, and customer billing will be handled by XS Energy staff. Mission. The Company's mission is to effectively pioneer a niche into select segments of the communications industry, to service and develop that niche thoughtfully and profitably, and to attain planned intrinsic and market value earnings, ultimately culminating in leadership status within the industry. The Company will accomplish its mission by: - initially leveraging the novelty of the product in select market segments - keeping its operating expenses low through reliance on investment and risk by a variety of partners, allies and vendors for the capital and labor intensive manufacturing operations - investing heavily in marketing and market development - building an infrastructure that is flexible in its thinking and adaptive to both an inherently reactive market environment and inevitable industry changes brought about as a result of IPM introduction - controlling growth and selectively targeting sales opportunities to best benefit the plan - emphasizing design and product quality in the Management challenge to adequately attain profitability, growth, and shareholder value as budgeted The Company's planned operational objectives are to: - ramp up its infrastructure, production support, and marketing efforts to process business in accordance with plan - dominate creative mind-share within the industry through intensive and targeted marketing initiatives - meet budget and propel the Company into a prominent market position, and to become a globally recognized brand - supply quality products, fit for use - bring maximum value to its shareholders, short term and long Company Summary. The Company was incorporated in the State of Delaware on December 4, 1998, by a group of investors, headed by Jo-Ann Allen, H. Christopher Bazos, Terry Smith, Alan Szuhany, and Tamas Torma, and collectively the founders. The founding leadership has continued in its commitment through all undertakings in preparation for commencement of operations. The key staff includes: Terry E. Smith, President and Director of Marketing and Sales An Officer and Director of the Company, Terry is a seasoned General Management and Marketing Executive with more than 30 years experience on the service side of advertising and marketing communications. He is President of TES Marketing Communications, a company offering marketing and creative services for Fortune 500 companies. Former positions include: Vice President and Group head for A.C. Neilsen; Vice President Marketing for Commercial Associates Communications; and Senior Vice President for Ross Advertising. He currently serves on the Board of nine corporations. Alan R. Szuhany, Executive Vice President and Director of Manufacturing An Officer and Director of the Company, Alan has more than 14 years experience in product management and development, marketing and technical sales for manufactured durable goods. He has worked in the capacities of Marketing, Sales, and Product Manager for: Quantex Corporation, an international manufacturer of custom EL lighting; the Jamison Co. Inc., an international manufacturer of custom architectural products; Phoenix Mecano Inc., a manufacturer of passive electronic components; and Neoterik Health Technologies Inc, a manufacturer of electromechanical safety devices. Alan has been serving in a full-time capacity for XS Energy since October, 1997. Jo- Ann M. Allen, Director of Corporate Affairs A Director of the Company, Jo-Ann has 29 years of experience in the fields of business management and binance. Over the past ten years, Jo-Ann has performed extensive R & D in the toy industry, board games, educational and recreational products, and communications. She co-owned and served as primary administrator for Appeargear Inc., Mental Images Ltd. and Torma-Allen Productions, Inc. Jo-Ann has been serving in a full-time capacity for XS Energy since February of 1998. Tamas L. Torma, Director of R&D A Director of the Company, Tamas is the developer of the technology on which the patent for IPM was based. Over the past 15 years, he has brought forth and promoted intellectual creations on new product concepts, including: Thermochromic Ink for board games; toys and games; educational and recreational products; and interactive print media. He continues to pursue new and innovative ideas through R&D, having filed additional patents, now pending, on behalf of XS Energy. Tamas has been serving in a full-time capacity for XS Energy since October, 1997. Mark Baker, Manager of Sales and Marketing Mark comes to XS Energy with a background in marketing, ad agency management and publishing. Mark worked in sales for Marketing Magazine, was business manager for Executive Magazine, was publisher for The Engineering Times and was publisher of Sales Promotion Magazine. He has owned three ad agencies specializing in writing and executing marketing communications and plans. Mark is currently on an independent management contract for XS Energy. Vicki Stoney, Manager of Media Technologies Vicki has 30 years experience in trade print production and printing sales management...