United States, Te... IronClad Implem... "INVESTMENT PROPOSITION Companies that are successful in bringing new ideas to market have a well defined opportunity with technology that is either patented or very difficult to duplicate. IDEATIVE, Inc. (www.ideative.us) is an example of just such a company. Comprised of inventors with experience in both the public and private sectors, these entrepreneurs have consistently created new ideas that have been widely adopted. IDEATIVE ensures that its inventions are patentable, and places great emphasis on securing patents before they are discussed with potential buyers. To provide the seed capital for the production of its initial prototypes and launch additional inventions, the company is seeking approximately $700,000 in investment. The company anticipates this will be the only investment required and plans to be profitable in fiscal year 2003. Inventions currently being brought to market by IDEATIVE are: Ø FlexConnectÔ: A patent pending product that provides for better connection of peripheral devices to laptop and notebook computers. FlexConnect can be designed for USB, fire wire or virtually any other type of connectivity. Ø QuickPinchÔ: A patent pending product that provides a flexible and durable method of managing cords and cables. The product has an external surface specifically designed to print logo or advertising information. Ø WoWÔ: or Wireless on Wireless represents the first true wireless internet access utilizing both 802.11b and PCS technologies. IDEATIVE represents a sound investment opportunity in today’s volatile market. Barriers to entry will remain high as the company brings to market patentable inventions that represent disruptive technologies in their respective market segments. THE OPPORTUNITY AND METHODOLOGY IDEATIVE makes decisions about creating its inventions based on business analysis, market research and prospective customer feedback. Using FlexConnect as an example, International Data Corporation reports that approximately 30 million Notebook PC’s are sold each year worldwide and there are approximately 90 million currently in use worldwide . For the FlexConnect product, capturing a conservative one-half percent market share in 2003 will contribute over US$1million in royalties and will also make the company profitable. Once the market data is qualified in this way and the company decides to move forward with the invention, they produce a prototype to serve as a proof of concept for the potential buyer. The sales team then implements its sales and marketing plan by taking the invention to its list of interested buyers. To maintain the focus of the company on invention vs. manufacturing, the inventions are licensed to buyers who manufacture them as products for their customers. This also serves the purpose of minimizing the company’s operating costs, which equates to increased profitability. Together, the QuickPinch and WoW products will generate royalty revenues of up to another US$1 million in 2003. QuickPinch can be marketed to multiple market segments including the lucrative advertising and promotion segment. WoW will have broad appeal in the exploding wireless market. IDEATIVE’S VALUE PROPOSITION Ø Focus on development of new ideas: Because IDEATIVE operates on a business model that licenses patented inventions to product companies, the company can stay focused on the creation of new inventions. This business model also allows the company to execute and patent its inventions quickly, resulting in a very quick time-to-market. Historically, companies who get their patented inventions to market quickly, find that patent laws protect them better, making it more difficult for competitors to release similar products. Ø Ongoing revenue stream: The business model allows the company to collect a royalty on each unit sold, providing a platform for continued revenue growth and profitability over time. Ø Wide spectrum of inventions: IDEATIVE prides itself on creating inventions that target different markets. This allows the company to leverage its risk across multiple industry segments. COMPETITION The company has a clear understanding that there is competition for every invention ever created. FlexConnect: No direct competitor has been found in the market to date. Since the patent is now pending, there will be significant barriers for competitors to enter this market space. Also, because large well known manufacturers are targeted as potential customers, the degree of market penetration achieved is high. This creates additional barriers to entry. QuickPinch: Loosely comparable products are available to secure cords and cables. However, there are none available with the particular characteristics of this product. Its unique design allows logotypes and advertising to be placed on the product, which will create interest in the lucrative advertising/promotion segment. WoW: No direct competitor exists today. While it is required that IDEATIVE get this invention into the hands of a company that can quickly bring it to market, there is, at minimum, a 12-18 month window of opportunity where no competition will exist. THE BUSINESS PROPOSITION The business strategy is designed to be straightforward. One important advantage to this is that minimal infrastructure will be required. Additionally: Ø Most revenue will be generated through fees collected from companies who license the inventions from IDEATIVE. Ø Therefore, all marketing efforts can be focused on a finite number of very large prospects who will have interest in transforming IDEATIVE inventions into products. Ø To minimize infrastructure expenses over the long term, IDEATIVE will continue to develop partnerships with marketing , engineering and prototyping firms. IDEATIVE already has a highly experienced management team in place and is in the process of developing working prototypes. Additionally, the company has begun the process of developing interest in the market. IDEATIVE’s projected results for the next three years are summarized as follows: Cumulative (USD)(2003-2005) Revenues $9,300,000 Gross Profit 7,100,000 Expenses 3,000,000 Net Income 4,100,000 Equity IRR 157% THE MANAGEMENT TEAM This highly experienced management team brings the company almost 50 years of experience in launching new ideas into the market. Tavis Schriefer, President Mr. Schriefer is a seasoned Business Solutions Strategist with over 20 years of technology experience, including over 10 years in the United States Air Force. He has a unique ability to envision and articulate business solutions coupled with strong problem solving and situational management skills. Most recently he served as an eBusiness strategic advisor to senior management and executive teams at Nortel Networks from 1999 through 2002. As consultant and liaison on business solution strategy, Schriefer helped leaders solve real problems with cost effective and creative solutions. He has extensive experience as a consultant in various industries including Telecommunications, Oil and Gas, Coal Mining and the Military covering ERP, Supply Chain and Sell-Side Catalog, as well as other focused technological areas. During his Air Force career, Schriefer served in the Telecommunications and Computer fields within the Strategic Air Command, where he was responsible for the creations and implementation of several unique solutions that were ultimately adopted throughout the U.S. Air Force. Edward Stanfield, Vice President - Operations With 25 years experience in the telecommunications industry, Mr. Stanfield has developed superior operational expertise that includes planning and implementing effective and consistent methodologies; consistently ensuring client success, an...