CONFIDENTIAL
Rider CONFIDENTIAL & PROPRIETARY This document was prepared by Edward Sanders (the “Sponsor”) to briefly describe a new venture “DIRECTED-VR. This document does not constitute an offer to sell or a solicitation of an offer to buy any security. An offer may be made only (i) through definitive investment agreements to be negotiated with investors and (ii) in the jurisdictions where permitted by law. No representation is made as to the accuracy or completeness of the information provided herein, which is qualified in its entirety by the definitive investment agreements.
LEGAL NOTICE Before making an investment decision with respect to the Company, potential investors are advised to read carefully the definitive investment agreements when such documents are available, and to consult with their tax, legal and financial advisors. This document contains a preliminary discussion of the Company, its terms and markets; however, this summary does not purport to be complete and is qualified in its entirety by the investor’s own investigation of and due diligence with respect to the Company. This presentation is being provided to you on a confidential basis solely to assist you in deciding whether or not to proceed with a further investigation of the Company. Accordingly, this document may not be reproduced in whole or part, and may not be delivered to any person without the prior written consent of the Sponsor. As described above, nothing set forth in this presentation shall constitute an offer to sell any securities or constitute a solicitation of an offer to purchase any securities. Any such offer to sell or solicitation of an offer to purchase shall be made only by definitive investment agreements to be negotiated with prospective investors.
LEGAL NOTICE CONTINUED No information is warranted by the Sponsor, its affiliates or advisors as to completeness or accuracy, express or
implied, and is subject to change without notice. The information contained herein includes information that has been obtained from third-party sources and has not been independently verified. This document may contain forward-looking statements, including observations about markets and industry and regulatory trends as of the date of this presentation. Forward-looking statements may be identified by, among other things, the use of words such as “expects,” “anticipates,” “projects,” “believes,” or “estimates,” or the negatives of these terms, and similar expressions. Forward-looking statements reflect management’s views as of such date with respect to possible future events. Actual results could differ materially from those in the forward-looking statements as a result of factors beyond management’s control. Investors are cautioned not to place undue reliance on such statements. No party has an obligation to update any of the forward-looking statements in this document. These materials should only be considered current as of the date of publication without regard to the date on which the prospective investor may receive or access the information. The Company maintains the right to delete or modify information without prior notice. There is no guarantee that the Company will be successful in achieving its objectives. An investment in the Company contains risks, including the risk of complete loss. No representation is made that any investor will make any profit or will be able to avoid incurring substantial losses. Renderings and descriptions of products and services and their features are for illustrative purposes only.
”WHERE IS VR USED?” AUTOMOTIVE - BRANDS - COLLEGES CONVENTIONS - ENERGY NOT FOR PROFIT ORGANIZATIONS PRO-SPORTS – PROSTETICS REAL ESTATE DEVELOPERS SHOPPING CENTERS TRANSPORTATION – TRAVEL & TOURSIM – US MILITARY
”WHAT MAKES THIS OPPORTUNITY UNIQUE?” DIRECTED VR PROVIDES A TURN KEY SOLUTION VR CREATION, APP & ANALYTICS THE LAY FLAT VIEWERS DELIVERABLES & NY TIMES
”THE MARKETPLACE” IN THIS SPACE WE ARE INNOVATORS PROVIDING A TURN KEY SOLUTION FOR VR COMBINED WITH A FULLY CUSTOMIZABLE DIRECT MAIL LAY FLAT VIEWER
OUR VIEWERS
”OUR PARTNERS”
VR AMERICAS VR Americas is a software platform which helps VR content creators, publishers, and brands integrate data analytics, boost monetization and improve media buying through data driven planning. VR AMERICAS IS hardware agnostic - content enhanced with data analytics, interactivity, and knowledge discovery.
PREMIUM VIDEO BOOKS Manufacturer, importer and supplier since 1943.
• 13th largest supplier in the industry and top 15 supplier for over a decade. • Our own offices throughout Asia, Europe, North America and South America. • 50+ decorating machines for fast turnaround in our Los Angeles facility. • Certified Minority Owned Business Enterprise. • Our 100% owned 400,000 square foot factory in China. • 2014 Worldwide sales exceeded $350,000,000. • No debt, no mortgage & no rent. • 100% self financed. • Over 8-figure liquidity in the bank. • 500+ patented or patent pending items. • Completely vertically integrated from design, engineering, prototyping, molding, assembly, shipping and logistics.
Exclusivity Agreement •
VR Americas: Will provide a fully executable NDA protecting any information shared with Directed VR (Which we will sign) for relationships which are exposed. These relationships will be the property of VR Americas and Directed VR will have the ability to become the source the Lay Flat Viewers. VR Americas will also provide support, pricing, scopes of work etc, for any Directed VR account requiring VR Services. VR Americas will act as the liaison as part of Directed VR
•
Premium Video Books: Will provide 100% exclusivity for all verticals Directed VR will be pursuing on a National Level. All of the Automotive, Colleges & Universities, Medical, Medical Sciences, Not For Profits (NFP), NY Times, Real Estate, Travel & Tourism along with the US Military will be channeled to Directed VR. PVB will provide samples, product mock ups, samples and handle distribution as required.
•
Directed VR: Currently can provide a true Global turn key solution blending both the creative, virtual from VR Americas, The Lay Flat Viewer in one complete marketing offering. Directed VR will have ownership of all the DVR relationships, direct mail campaigns, marketing efforts, website, along with billing to specific clientele directly. Third Party providers where appropriate will maintain a direct relationship with our clients and act on our behalf.
•
NY Times: Directed VR will have a sales agreement to provide the NY Times any support for viewers which come up. We will also develop a relationship to assist any NY Times Rep on calls regarding the Lay Flat Viewers as required, leading to additional business.
CASE STUDY 55,000 VIEWERS DELIVERED INSERTED INTO THE NY TIMES 1st OF ITS KIND 6 WEEK LEAD TIME SUCCESSFUL SALE OF $240,000
Press play Insert
Download View
Open viewer
How to watch Chevron’s V.R. film with your viewer:
1
Fold Fold the viewer according to the directions.
2
Download Download the NYT VR app. If you have an iPhone, you can find it in the App Store; if you have an Android device, go to Google Play. The app is free.
3 Watch Follow the instructions in the app to place your phone into the viewer and play the video. Please note that the video will respond to your movements — try turning your head and looking up and down as you encounter different environments.
Welcome to Jack St. Malo Chevron’s innovation of deepwater technology is redefining what is possible in the Gulf of Mexico. Travel by helicopter over the ocean, about 280 miles south of New Orleans, to Jack St. Malo, a deepwater offshore platform. Tour the massive operation and see how Chevron is helping to produce energy to move the world forward.
Watch the film: Download the NYT VR app today to experience Chevron’s work in the Gulf of Mexico. For step-by- step directions, see back of page. .
Visit chevron.com/vr to learn more
Year 1 Projected Financials Salaries Graphic Designer Marketing Director Internal Sales Total Space and Misc. Directed Voice over IP Phones Website
Marketing Budget Clear Slide, Zoom, Lightning, Outreach Salesforce (year 2) Mailings Postage Print Postcards Printed Brochures (6 Year One) Design For Brochures & Postcards Manufacture 50,000 Viewers Create 2 Minute VR Video Total
Full Time Full Time Full Time
4 people 4 People -
18000 36 Mailings (500) 6 Internal
Travel & Entertainment Ground transportation Air transportation Fed Ex & Samples Dinners & Lunches Total Total Spend Year 1
Total Spends Per Year $50,000.00 $80,000.00 $50,000.00 $180,000.00
Free $1000.00 Built & Paid For $ $
$2,000.00 $1500.00 $4,320.00 $1,800.00 $6,000.00 $00 $100,000.00 $120,000.00 $251,000.00
$00 $00 $5,000.00 $12,000.00 $17,000.00 $448,000.00
Projected Investment & Return 100K Investor 1 Investor 2 Investor 3 Investor 4 Investor 5 Capital Target
Dollar Amount $100,000.00 $100,000.00 $100,000.00 $100,000.00 $100,000.00 $500,000.00
% of Company 5% 5% 5% 5% 5%
Shares 100,000 100,000 100,000 100,000 100,000
1-6MM
Year 1
Year 1 Projections A
Year 1 Projections B
100K Investment
Sales GROSS PROFIT
$1,000,000.00 $250,000.00
$2,000,000.00 $500,000.00
$3,000,000.00 $1,000,000.00
$4,000,000.00 $1,500,000.00
$5,000,000.00 $2,000,000.00
$6,000,000.00 $2,500,000.00
Investor 1
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Investor 2
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Investor 3
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Investor 4
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Investor 5
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
1-6MM
Year 2 Sales Year 1
Year 2 Projections A $1,000,000.00
Year 2 Projections B $2,000,000.00
100K Investment
GROSS PROFIT
$250,000.00
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
Investor 1
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Investor 2
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Investor 3
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Investor 4
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Investor 5
10% of Gross PFT
$25,000.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
7-12MM
Year 2 Sales Year 1
Year 2 Projections A $7,000,000.00
Year 2 Projections B $8,000,000.00
100K Investment
GROSS PROFIT
$500,000.00
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
Investor 1
10% of Gross PFT
$50,000.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
Investor 2
10% of Gross PFT
$50,000.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
Investor 3
10% of Gross PFT
$50,000.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
Investor 4
10% of Gross PFT
$50,000.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
Investor 5
10% of Gross PFT
$50,000.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
Payback Year 1 0% 0% 0% 0% 0%
Payback Year 2 50% 50% 50% 50% 50%
Payback Year 3 100% 100% 100% 100% 100%
Year 1 Projections C Year 1 Projections D Year 1 Projections E
Year 2 Projections C Year 2 Projections D Year 2 Projections E $3,000,000.00 $4,000,000.00 $5,000,000.00
Year 2 Projections C Year 2 Projections D Year 2 Projections E $9,000,000.00 $10,000,000.00 $11,000,000.00
Year 1 Projections F
Year 2 Projections F $6,000,000.00
Year 2 Projections F $12,000,000.00
6 – 18 Month Projected Opportunities Overview Verticals Initially Sales Opportunities Automotive 2 Colleges 13 Conventions 1 Energy 1 NFP 1 Sports 3 Prosthetics 1 Real Estate 1 Vacations 1
Orders 25000 50000 25000 600000 100000 50000 20000 20000 100000
Cost Average Total MFG Costs Sales Each Total Sales Each Gross Profit $2.00 $100,000.00 $3.50 $175,000.00 $75,000.00 $2.00 $1,300,000.00 $3.50 $2,275,000.00 $975,000.00 $2.00 $50,000.00 $3.50 $87,500.00 $37,500.00 $2.00 $1,200,000.00 $3.50 $2,100,000.00 $900,000.00 $2.00 $200,000.00 $3.50 $350,000.00 $150,000.00 $2.00 $300,000.00 $3.50 $525,000.00 $225,000.00 $2.00 $40,000.00 $3.50 $70,000.00 $30,000.00 $2.00 $40,000.00 $3.50 $70,000.00 $30,000.00 $2.00 $200,000.00 $3.50 $350,000.00 $150,000.00 Total MFG Costs $3,430,000.00 Total Sales $6,002,500.00 $2,572,500.00
18 – 36 Month Projected Opportunities Overview Verticals Initially Sales Opportunities Automotive 4 Colleges 26 Conventions 2 Energy 2 NFP 2 Sports 6 Prosthetics 2 Real Estate 2 Vacations 2
Orders 25000 50000 25000 600000 100000 50000 20000 20000 100000
Cost Average Total MFG Costs Sales Each Total Sales Each Gross Profit $2.00 $200,000.00 $3.50 $350,000.00 $150,000.00 $2.00 $2,600,000.00 $3.50 $4,550,000.00 $1,950,000.00 $2.00 $100,000.00 $3.50 $175,000.00 $75,000.00 $2.00 $2,400,000.00 $3.50 $4,200,000.00 $1,800,000.00 $2.00 $400,000.00 $3.50 $700,000.00 $300,000.00 $2.00 $600,000.00 $3.50 $1,050,000.00 $450,000.00 $2.00 $80,000.00 $3.50 $140,000.00 $60,000.00 $2.00 $80,000.00 $3.50 $140,000.00 $60,000.00 $2.00 $400,000.00 $3.50 $700,000.00 $300,000.00 Total MFG Costs $6,860,000.00 Total Sales $12,005,000.00 $5,145,000.00
APPROXIMATE PRICE RANGES CHARGED TO CLIENT VR DEVELOPMENT PLAN $10,000/MIN VR & AR FILMING $30,000/MIN EDITORIAL $5,000/MIN CREATIVE $10,000/MIN VOICE OVERS $2,500/MIN APP DEVO $25,000 10M-200M SHIP FLAT VR VIEWERSTM $2.00 - $10.00 MAIL VIA USPS $.75 INSERTION VIA NEWSPAPER $.20 - $.30 The prices above are base line approximations. Every Project requires a VR Film Team, both 3D Ground Based and Arial based drones, full creative, edit teams, copy writers, media editors, film producers, travel, app developers, testing in all environments and is approximately an 8 week process. A 1 minute complete AR production $85,000-$110,000 A 2 minute complete AR production $137,500- $215,000 A 3 minutes complete AR production $ 192,500- $272,500 Price Excludes VR Viewers and distribution
Roles of Partners & Employees Roles - Partners
Description to be discussed
Investor 1
Investor 2
Investor 3
Investor 4
Investor 5
Jody Matthews Amy Delson
Roles Employee Designer
Description Will work with Marketing Director & Ed Sanders to create all marketing & additions to website
Marketing Coordinator Will coordinate all direct mail, copy write, over see creative and execute marketing directives
Jeremy Burn
Internal Sales
Edward Sanders
Founder CEO - Sales
Will make cold calls, follow up on all marketing and funnel qualified opportunities to CEO Sales Description Oversee all of the opportunities, develop marketing for verticals and be overall liaison of all Partners & Employees
ALL INVESTORS ARE ENCOURAGED TO PUT IN 10 HOURS PER WEEK ON BUSINESS DEVELOPMENT ALL EMPLOYEES WORK SCHEDULE ARE 40 HOURS PER WEEK MARKETING DIRECTOR IS A 30 HOUR WEEK
COMMISSION STRUCTURE •
All sales are payable for investors for any order developed and closed of 30% of the gross profit on the Lay Flat Viewers
•
All sales derived from outside sales people are paid at 40% of the gross profit paid upon invoice being paid as 1099
•
Internal Sales are payable at 3-5% of the gross profit
•
Subject to appropriate law, salaries for year 1 are 1099 and we will consider conversion to W9 in year 2 as sales increase
•
Benefits will be added in year 2 if the conversion is transitioned over
•
Vacation time is 3 weeks for all employees plus 5 personal days
•
To keep employees engaged, we may consider a profit sharing or a share distribution giving the people equity in Directed – VR after 1 year working
WHAT IS OUR PROPOSAL ?
KEY REALTIONSHIPS WITH SUPPLIERS 30 YEARS OF EXPERIENCE PROVIDING SOLUTIONS TO CORPORATE AMERICA KNOW HOW TO COMBINE 3 UNIQUE SERVICES MANAGEMENT EXPERIENCE THE ABILITY TO SEE A NEW OPPORTUNITY AND GO TO MARKET WEB-EMAIL- DIRECT MAIL- SALES PLATFORM- ALL PLANNED TIGHT BUDGET WITH DELIVERED RESULTS TO FOLLOW
A CUSTOM TAILORED VISUAL EXPERIENCE COMMUNICATING YOUR BRAND MESSAGE IN A VIRTUAL WORLD
VERTICALS
AUTOMOTIVE
BRANDS
COLLEGE & UNIVERSITIES
CONVENTIONS
ENERGY
PRO SPORTS
REAL ESTATE
SHOPPING CENTERS
TRANSPORTATION
US MILITARY
TRAVEL & TOURISM
CREATIVE - DESIGN - APP’S - VIEWERS - DELVIERABLES
WWW.DIRECTED-VR.COM ES@DIRECTED-VR.COM TEL:917.589.8900