FEB 2 0 2001 _j
Futuristic Imaging Systems, Inc. An investment Opportunity November 30,2000
Futuristic Imaging Systems, Inc. Atrium 10 Tower 11811 1-10 East frwy Suite 350 mail box 139 Houston, Texas 77029 Telephone (713) 450-9777
Table
of Contents page 1 page 2 page 3 page 4 page 5 page 7 page 8 page 9 page 10 page 10 page 12
A. Introduction B. Company Description C. Patent Status D, Corporation Management E. Service Description F. Marketing Plan G. Company Facility H. Bidding Criteria I. Product Stares
J. Air time Sales and Building Cost K. Financial Statement and Projections
A. Introduction Futuristic Imaging Systems, Inc., is on the horizon of becoming a sole leader and a multi-million dollar company in the advertising industry. This is due to the patentable technologically advanced method of displaying imaging advertising. As a unique
company with a unique concept Futuristic Imaging System, Inc. will broadcast full motion advertisement (television Commercials) on freeway billboards via modem. This technology utilizes an advance modem to download and display image through a highresolution projector. This is a valuable concept in broadcasting full motion video to attract and inform customers. After a year of research and development work, Futuristic Imaging Systems, Inc., is ready to market their advanced method of displaying imaging advertising. To protect their investment, a provisional Washington commercial application was filed with the U.S. Patent Office in
D.C. Extensive market research suggests a large market for both the and recreational application of this service is in high demand. In the and outdoor advertising sales exceeds
combined commercial
market of television
billions of dollars in the United States and is sure to continue at this rate primarily because many companies depend heavily on advertising to promote their business. As a recreational service, this advanced method of displaying imaging advertising can also be utilized to alert statewide and city communities of tornado sightings,
chemical evacuations, fires, missing children, traffic delays, temperature, time, elections, and other community relations. The consumer recreational market for this service is not fully tested, but there are a number of exciting potential uses. (See service description) This service, which is described more fully in the accompanying service description,
will have sound added to it as an additional commercially available
feature. The feature added is not process of sound is
at the present time. The engineering
presently on the agenda to begin in the summer of 2001. In comparing prices between still pictures and the advanced method of displaying imaging advertising Futuristic Imaging Systems has a substantial price advantage over any advertising services now on the market. Futuristic Imaging Systems, Inc., is incorporated under the laws of the state of Texas and is ready to begin operations. The founders have spent several years of hard work preparing for this time and have made substantial personal investments. They are eager to proceed. However, because their personal financial resources are not adequate to manufacture and distribute units, they are prepared to offer a ten- percent of common stock of the corporation valued at $9.50 a share for a start-up capital of $95,000; other investments could be discussed. The enclosed financial projections demonstrate that if projections are met, there will be a very profitable return for the investor. B. Company Description Futuristic Imaging Systems, Inc., was incorporated in Texas on October 6, 2000 as an outgrowth of a partnership founded in March 17, 2000. The corporation was organized to offer full motion video advertising for commercial and recreational purposes. The technology on which this service is based is covered by a U.S. provisional ( 60/238,439 ). Futuristic Imaging Systems office is located at Atrium 10 Tower 11811 1-10 East, Suite 350, mail box 139 Houston,Texas 77029 and telephone (713) 450-9777.
All common stock is held by: Theodore Diaz 27% Position: CEO-President Edmundo Isas 27% Position: Vice-President Jose Oliver 27% Position: Secretary
Adolfo Gonzalez 19% Position: Treasurer Three of the above owners of the corporation will serve on the board of directors and hold a majority vote within the company. The fourth owner will also serve on the board and hold a minority vote. Two seats on the board of directors will remain open. Any venture capitalist, angel investor, group, or individual that purchases common stock or invest capital within the corporation will be eligible to fill one of the two vacant seats on the board. The majority shareholders are willing to prepare a formal shareholder's agreement with the idea of protecting shareholders. C. Patent Status Theodore Diaz, serving as Chairman of the board, President and a founder of Futuristic Imaging Systems, Inc., filed for a provisional with the U.S. Office of Patents in Washington D.C. to alter, up-grade, or modify the projection system. The the interest of the minority shareholder or
corporation filed for the provisional before the design and utility patent in case any changes had to be done to the projection system. Prosy I and Prosy II will be fully patented within six months. To see the specifications and drawings of the Prosy I contact an executive representative of Futuristic Imaging Systems.
E. Service Description The corporation plans to manufacture two systems to project imaging advertising, both based on a provisional filed. One of these is the Prosy I, which is designed for early development of commercial applications. The other is the Prosy II, which is
designed for advance commercial and recreational use; they are more fully described as follows: The Prosy I: This system consists of projecting full motion video advertising. Using its patentable technology, Futuristic Imaging System invented a moving sign that is more versatile, attractive, and economical than existing units. Basically, the Prosy projects animated characters in full color. While the signs can be projected in numerous sizes, we plan to start with a billboard screen measuring ten feet vertically and twenty feet horizontally in length, continuously projecting three full motion videos of fifteen seconds each at night. The Prosy I requires a DVD system I in order, to project full motion videos. This system can also be used in recreational uses. For recreational uses only certain recreational videos can be displayed since, it does not have the capabilities to download alerting news like the advanced Prosy II being develop at the present time. All sorts of businesses, including restaurants, bars, banks, stores, real estates offices, airline terminals, bus stations, states, cities, etc., can use the Prosy I to inform low cost. The Prosy I is
customers of special events or offers at a comparatively completely designed and tested for development.
Projecting that the sales rate will
rapidly build to a minimum of five units per month, it is based on extensive research into the need for this service, as well as into the sales history of existing advertising services.
The research
has also involved
consumer advertising
studies
in which potential
customers
were
asked to rate a variety of existing
services against our services. summary of the full motion
In outline form, here is what we believe video market and the potential
to be an objective
sales of the Prosy I. and its technical functions. of electronic billboards. dollars
* The Prosy is unique in its mode of operation For example, it provides * Three commercials
at least twice the visual resolution
of fifteen seconds each at a price often thousand
/month. Each commercial
would be based on a one year and plus contract. a year per billboard before expenses and $240,000
The sum would total to $360,000 after expenses.
* The Prosy will continue to be upgraded industry. The accompany electronic market sheet shows
as needed by the commercial
and recreational
the sales volume
of still advertising
on billboards
and
board messaging
in the United States in millions of dollars. In 2001, the total message advertising is estimated to be over 100 million
for still and electronic
dollars. The corporation
forecasts
sales of $100,000
a month within the first successful
year. This forecast is based on permutable
city regulations. of the Prosy I. Unlike the Prosy an advance modem to download
The Prosy II: The Prosy II is an advance upgrade I, the Prosy II functions in a similar way but, utilizes projector.
and display image through a high resolution potential system consumer of the Prosy II in the commercial exists. In an effort to arrive were conducted.
To accurately
estimate the sales
market is difficult as no directly comparable estimate II market as possible, research extensive which
at an accurate The Prosy
interviews
chart,
6
follows,
summarizes services
the results of these interviews. available
When compared
directly
with the
most similar sixty-two
these are not nearly as good but, there is nothing else; market preferred the Prosy II. imaging advertising With
percent of the commercial
While there is a provisional systems,
on file and no specific competitive
it is clear that the Prosy II will be in demand of the Prosy II, the debut of electronic
in the advertising
industry.
the upgrade
moving video message
boards will be Imaging and plus
cut short, since the Prosy II will also function Systems, Inc., conservatively estimates that
for recreational it will
uses. Futuristic thirty-five
broadcast
commercials
a month in the second successful
year of operations.
Further sales growth is
expected in a couple of years. F. Marketing Plan of promoting the Prosy I and Prosy personnel, II advertising partners, campaign advertising will our
The channels
include direct sales by corporate
the use of business
services on full motion video, seminars, market. We do not anticipate establishing With regard to international
radio advertisements,
etc., to reach the rest of the
our own factory force. sales", we will not launch our market
sales, except for "opportunity
formal effort until we have adequately In the beginning of business technology partners services. chosen
penetrated the domestic
Futuristic Imaging who have proven
System, Inc., will team with a limited number abilities in successfully introducing new in a is to
At first, the emphasis regions
will be on developing The reason
market penetration for this approach strategies.
few carefully properly
near our headquarters. pricing techniques
identify
effective
and marketing
Information
gathered will be used to fine tune stocking requirements,
customer needs, etc., for general
North American advertising services. In short, we want to be sure we are walking with a firm and steady tread before we begin to run. It is particularly important that we work with good sales reps. To this end, we have in the field for recommendations. We have
contacted a number of people knowledgeable
received a number and plan to hold interviews soon. We also plan an aggressive campaign of marketing in e-commerce and related trade shows To this end, we have in our agenda to design and built an attractive display booth that will effectively demonstrate both systems in
operation. We plan to attend up to ten trade shows in the next six months and will use them as a showcase around which to meet potential sales reps and business partners. In addition, this will be our opportunity to introduce our advertising services to the commercial industry. Futuristic Imaging Systems, Inc., anticipates targeting the principal sales area toward the end of the fia-st year of operation. As part of doing this, we hope our higher commercial accounts will allow us to lower prices as well as to improve our services based on feedback from our clients. Ir. subsequent years, Futuristic Imaging Systems will continue to use sales reps and business partners as our main sales force, since they provide many advantages over employees salespeople. The principal advantage, of course, is that these people are paid a commission or fixed percentage of each sale, but receive no salary. The representatives will be brought on early enough to have voice in the advertisement industry. G. Company Facility Futuristic Imaging Systems, Inc., presently occupies a medium size office were the area is ninety percent commercial and the rental is reasonable. We use this office as our main office and training facility. We have in our agenda to lease a yard to keep inventory of our equipment
to fabricate and install the projection systems. In obtaining financial assistance, the corporation plans to relocate to an upscale community and expand its offices to staff senior management. H. Bidding Criteria Futuristic Imaging Systems, Inc., began development work based on the Prosy I in 1999. The idea was to develop full motion video for outdoor advertisement and to
enhance the way companies promote their business. After design and operation of several early prototypes of each system, a full set of engineering drawings and specifications of parts were prepared for each, earlier this year. Contractors are under consideration to install the prqiection imaging systems. The following requirements are needed for
contractors to bid and be awarded a contract. Survey Firms - need to be insured and bonded, state registered, and hold a valid state license. Utility Firms- need to be fully insured and bonded, state registered, valid state license. Electrical Co.- need to be fully insured and bonded, state registered, and hold a valid state license Computer Firms- need to be insured and bonded, state registered, and hold certificates in their field. According to contractor bidding guidelines and development schedule, we are confident to meet our deadlines, demands, and goals to better serve our clients. and hold a
I. Product Status The Prosy I is the first of two projection systems Futuristic Imaging Systems
currently has to start broadcasting full motion videos. Here is a summary of how both projection systems and marketing efforts are developing, as of November 30, 2000. Material: There is no difficulty obtaining parts for the Prosy I. The part with the weeks to get because of possible stretch-outs of supply of demand. There has been some recent on certain devices we have been getting indication day
on a next
basis, but this is not expected to be a significant problem. Just in case, however, we have identified several alternative suppliers. Inventories: At the present time of this writing, there are no projection systems installed
or stocked for inventory in house. We do have the resources or contacts to acquire the inventory as soon as possible. All of our suppliers do have the capabilities of obtaining these materials when needed. We will build small versions of the Prosy I and Prosy II for demonstration purposes. Credit Terms: Although Futuristic Imaging Systems, Inc., has established 30-day terms with a few of its suppliers, we are presently on cash terms with the rest, due to our low cash position and because we are a new corporation with no proven history. We expect to arrange 30-to-60 day terms with all our suppliers within six months. New financing will help us accomplish this. J. Air time Sales and Building Cost: The projections included in this business plan are based on several assumptions about air time sales and building costs. The following airtime commercials are based on a monthly fiat rate on a one-year contract. Three commercials of 15 seconds each will be
10
broadcast
on freeway billboards
via modem. Each commercial
will vary on price
depending on location. * A one time fee maybe charge for video production if the client can not produce its own. The following shows an estimation of 15, 30, 45 seconds of commercial charges. These charges are estimated and rounded for example purposes.
Example: Air time Sales Company Doe Inc Jeans R Us More Cars Corp. Contract one year one year one year Total Monthly rate $9,500.00 $9,500.00 $9,500.00 $28,500.00monthly X12 Seconds @ 15 sec @15 sec @15 sec @45see
$342,000.00 yearly per billboard The cost of development, material, and manpower is estimated at $25,000 per billboard. The following will show an estimation of building cost. Objective: Prosy I and Prosy II building cost. Estimation: Prosy I building cost Installation Price on stock yes available yes yes yes yes quanity lquanity lquanity lquanity lquanity lquanity 1quanity lsystem
Finway, Inc (pole set-up) $700.00 Razo Electric (electrical) CCS, Inc (projector) Drago (Electrical supply) $1,500.00 $13,500.00 $3,500.00
Purgit, Inc. (temp control) $1,500.00 Miscellaneous Total $4,200,00 $24,900.00
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The
above
building These
cost figures
projection
for both
systems
is simply
an estimation
per
installation. management
do not allow
for any corporation
overhead,
such as rent, each unit. All market research
costs, etc. They are solely based on the cost of manufacturing through extensive
building cost and airtime sales have been development and profitability K. Financial analysis. and Projections Systems,
Statement
As Futuristic develop positive
Imaging cash flow.
Inc., is still in the start-up phase, profit projection
we have yet to
As the attached
and cash flow forecast
indicate, we except the corporation
to begin to generate a positive a cash flow and profit To accomplish this, however, In exchange the corporation
before the end of the first year of operations. requires a total of $95,000.00
dollars of start-up capital.
for the investment, valued at $9.50
the investor would receive ten percent of common a share. This would Imaging Systems
stock of the corporation of the common
take the form of ten percent presentation
stock in Futuristic The existing
and ten- percent
on the Board of Directors. agreement
shareholders representations
are willing to design a shareholder's of the minority shareholders.
to protect the interest and show that if all goes in the first year
Profits
projections
according to plan, the investor of operation and substantial accompanying
can expect a percentage Imaging
of his investment
profit for Futuristic
Systems by the second year. (The Systems by
profit forecast shows a substantial
profit for Futuristic Imaging stock offering
the second year.) The founders profitable operation.
plan to do a public
after several years of
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D. Corporation Management The founders of Futuristic Imaging Systems, Inc., are: Theodore Diaz, Edmundo Isas, Jose Oliver, and Adolfo Gonzalez. The directors, officers, and key employees of this corporation are as follows: 1. Theodore Diaz Jr.- CEO-President 2. Edmundo I. Isas-Vice-President, Director 3. Jose Oliver- Secretary, Director 4. Adolfo Gonzalez- Treasurer, Director Theodore Diaz, age 31, as founder, CEO, and President has experience in marketing, customer service, sales, developing proposals, project management, etc. His expertise comes from operating an employment agency and related work experience. Edmundo I. Isas, age 42, as Co-Founder, Vice-President, and Director has experience in sales, product marketing, management, customer service, engineering, etc. His expertise comes from operating a successful business in Mexico City. Further profile information (upon request). Jose A. OLiver, age 25, as Co-Founder, Secretary, and Director has experience in
customer service, product marketing, sales, trainer, public relations, etc. His expertise comes from previous employment. Further profile information (upon request) Adolfo Gonzalez, age 49, Treasurer, has experience in planning projects, managing, adviser, customer service, marketing, employment: National Department and etc. His expertise comes from previous of Agriculture-Mexico and The National
Politecmic-Mexico. Further profile information (upon request)
4
°
"
IP
Statistics
Report
Prosy II On-line Business owner: 81 yes 14 no Phone 124 Yes 21 no Mail outs 15 yes 3no Survey on-site 79 yes 12 no
Teenagers Adults Seniors Personnel traffic dept. of
157 yes 9 no 98 yes 38 yes 16no 19 no
143 yes ll5yes 56 yes 15 yes
13 no llno 14 no 4 no
8 yes
1 no
147 yes 10 no 173yes 28 yes 10 yes 28 no 13 no 2 no
36 yes 9no 6yes 4 no
The following questions were asked: I. What do you think about having a spectacular billboard such as, full motion
commercials being broadcast on freeway billboards via modem? II. Would it benefit you or your company? III. Having audio added to it would it promote the product or service better? IV. What would you prefer, the still pictures (posters) or full motion video advertisement?
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