the crackpot.cube
Your Voice. Your World
Enclosed is a general description of the products and services provided by our threedimensional user interface, the crackpot.cube along with additional information about developing partnerships. For more information and ongoing public updates please subscribe to our CRACKPOT.culture e-Magazine on Flipboard, find us on Facebook and Twitter or simply favorite our CRACKPOT.culture cube which contains all of the above content. Prepared for: Internal Use, ALL INFORMATION IS CONFIDENTIAL AND IS STRICTLY PROHIBITED FROM DISTRIBUTION WITHOUT PRIOR CONSENT FROM OUR HOME GAME, INC. For intellectual property information please contact Edward F. Behm, Jr. BARNES & THORNBURG LLP 1000 N. West Street, Suite 1500 Wilmington, DE 19801-1058, Phone 302-300-3444
The crackpot.cube (Our Home Game, inc.) corporation was formed and funded in 2011. The aim of which was to develop and deliver to an under served marketplace an unprecedentedly unique, content heavy, three-dimensional user interface. As we have developed and improved its functionality the past year and a half, it is now ready for broader commercial use and is optimized for delivery to mobile devices as well as computers. To further the ongoing development of the cube and improve compatibility for all potential markets, the company is seeking additional equity funding in support of its growth. Additional information related to the management team, board, and early clients may be available with engagement of an NDA and a defined scope of desired services. What’s right, what’s wrong, what’s confused What’s right is simple. The proliferation of information technology in the second decade of the 21st century has positively transformed the concept of communication. What’s wrong is becoming increasingly obvious. Our digital world has devolved into an overly technical, impersonal and chaotic place, flooded with spam oriented-information sharing philosophies. People are becoming overwhelmed and inundated with data while being underwhelmed with effective and concise content in an imaginative setting. People are showered with unfiltered information in a largely unregulated and unorganized eenvironment. This has caused people to become tentative and only use a small portion of the technology capabilities readily available to them. What’s confused is the marketplace. Tens of billions of dollars are spent annually on digital advertising, Facebook alone collected billions in advertising revenues last year but companies are increasingly becoming disenchanted with the apparent ineffectiveness of social network marketing. There is a gaping void for a product that combines the connective power of social media with the effectiveness of intimate communication in a mobile and inventive environment at a remarkably affordable price. Product & services We market one product, the crackpot.cube. In literal terms, the crackpot.cube is a tangible & space multiplying, three-dimensional, spinning aggregator of user controlled content. Our product is providing a non-traditional solution to traditionally tiresome problems. The cube is a multimedia and unprecedentedly personalized communication device allowing total user based customization. The crackpot.cube is a uniquely creative & comfortable communication tool which can be distributed to the furthest nether regions of the digital world. Our cube capabilities include but are not limited to: • Continuous mobile audio updating • Image uploading and cropping • Video uploading (both created on the fly and pre recorded) • Print (html 5, viewable on all devices), which also can include an audio bed • e-Commerce giving businesses the ability to showcase and deliver products from the cube • User controlled advertising with end results being purchase or other desired action
• Mobile live presentation of localized coupon with immediate transaction with instantaneous payouts • Live links to any net location • Social media integration • Click-2-connect providing visitors to your cube the ability to get in direct contact with the cube creator by call, text or email • V-card-producing live contact integration from the cube to end users personal contact list • Text, email and crack the cube to the social networks of your choosing What business are we in We are providing a microphone and a platform for the crackpots amongst us. The cube is a communication system specializing in user centric content. The cube is a solutionsbased technology. Our product is the ultimate user friendly and collaborative tool for people to advertise any given concept in a highly personalized and biographical-like manner, in a uniquely first to market and effective way. Our cube is the perfect social portal for high volume content accessibility, convenience and mass distribution. What value do we bring to our customer There is a dire need for the reorganization and simplification of content heavy broadcasting. The cube is the ultimate user-friendly operating system and boastfully justifies and amplifies its users existence to the world. User content can be easily and instantly organized within the cube and is usable and deliverable in a precise and impressive manor to virtually anywhere and can be accessed from all devices. This allows our clients to deliver their voice, to their world in any manor they so desire, thereby saving them time and stress all the while delivering a previously unavailable personalized communication signature (virtual presence) to their end user, in any format possible. Sustainable market advantages As the global demand for digital commodities continues to explode in accordance with and satisfaction of globalization, we will increasingly become a horizontally integrated global economy, with an expanding importance being placed on the the power of the individual. The cube provides a unique social platform to its users in such an interconnected marketplace. The cube will serve as an invaluable tool to meet tomorrow’s demands personally and professionally, today. Our technology personalizes relationships in an overly technical and impersonal world. The cube will become the driving force technologically, for exploration and meaningful participation in the age old concept of social networking, which is nothing more than a community positively exploiting human nature’s innate need for selfexpression. The cube is the most efficient, creative and convenient communicative tool on the market. The cube is the future of mobile operating systems and is frankly an incomparably supreme way of marketing yourself and or your business. Our company’s principled imagination and first to market product, coupled with our passionate curiosity gives us real, tangible staying power.
Business Model General access points for individuals While there are a plethora of ways to get a crackpot.cube, individuals typically get our product in one of the following two ways thus far: i.) Forwarded endorsement from a friend via text, email or social media ii.) Advertising of the cube from an ad-embedded cube, directly from crackpot.cube or a third party endorsement *Once we have finished the development of our app it will be frequently accessed and downloaded via Google Play and the App Store Types of cubes for personal use i.) Pirate Cube (free, ad-driven cube) A person has the option of getting a free cube but there will be mandatory advertising on their cube. However it is still user controlled advertising meaning that they will have a series of ads to choose from that will ultimately be placed on their cube. What is the Pirate Ad Network (PAN)? PAN is user controlled advertising. PAN allows advertisers to place ads on our Pirate (free) cubes as well as paid cubes if the user so desires (explained further below). How does it work? Each crackpot user will have a Booty Chest in their crackpot control panel full of ads for them to choose from which will be categorized. If for example my cube is "Hank's Hiking Club" I may want to select a myriad of ads from our applicable sports collection such as REI or Cliff Bar to advertise on my cube. Advertisers love this model because it is another creative advertising channel and people don’t mind third party advertising when they are in control and it’s actually a product or service that they endorse and use. We firmly believe in promoting one another in our crackpot community. ii.) Individual Cube (paid cube, optional third party advertising) If an individual wants to have a cube without ads they can purchase a cube for $5.95 a month or $50 for the year. They will still always have the option of choosing third party advertising on their cube if they so choose, and they may wish to do so because they can potentially profit depending on the click through rate as well as simply because they love a particular product and want to show their support. *We have yet to decide if we can sell a second cube at the same price on the same account* iii.) Cube Creator Account (unlimited cubes) A person can choose an unlimited account for $19 a moth or $179 a year, and they also will have the option of incorporating third party advertising. However, because of the limitless nature of this plan, If they choose no advertising they will have to pay an additional fee for texting packages, depending on the amount of texting they desire to do.
Plum Cube (small business division of the crackpot.cube) A cube created and supported by plum.cube gives a small business an entire team dedicated to the creation, customization, distribution and ongoing maintenance of their cube with additional marketing benefits for $49 a month and up, depending on the volume and scope of the services involved. Corporate Cube A cube created and serviced from a private instance on a server. This cube ranges from $50,000 and up. We offer this option for the corporation that is not wanting external advertising and has a large need for volume texting and emailing or has their own network for placement. Display Advertising Network There are a multitude of pricing models in the agency advertising world - all of which need to be accommodated and employed according to the situational demands of each particular event. They vary by client, by agency, even by each campaign. Similarly, budgets are allocated in a variety of ways and so spending follows the allocation type. Compounding the issue is the intended use for this by an agency, a rich media vendor, or a publishing company. A company that wishes to embed the cube both on their site and on third party advertising channels gets a cube and pays a fee relative to the scope and volume of distribution and estimated viewership of their cube. Additionally, a particularized form of joint venture or associated affiliate program with specific pricing options are available. This model is advantageous depending on the size of the company because they can choose to incorporate third party advertising on their cube if they wish, but more realistically the value of such a cube comes from the cube’s potentially viral effect of displaying a spinning three dimensional display ad on the web. Furthermore, they can make a profit from the people getting their own cube directly from their embedded cube, so it is really layered advertising from our product’s standpoint but also from the relevant display advertising on a particular cube. This product is greatly enhanced from our animated html5 banner or site preview embedding as well as the ability to email or text our animated gif cube, both of which when touched, fires the real crackpot cube on top of the website or in a full screen beam box on mobile devices. Some of the most common display advertising pricing models include: Cost-per-impression - the number of times an ad is served. This is usually a very small $ amount - pennies to a few dollars per thousand. Think in terms of millions of impressions per campaign. Cost-per-click - best example is Google ad words - you only pay when someone clicks on the ad unit a few cents up to several dollars depending on the competitiveness in a vertical.
Cost-per-lead - how many people fill in their name, email address, address, phone number, etc. The more data fields you want the higher the price. Consumer leads can sell for pennies while a tech company like IBM or Intel can pay as high as $70 - $100 per lead. Cost-per-acquisition - how many people actually make direct contact with the company, or the company is able to contact them - via phone, email, live chat, video chat. Cost-per-chat - a fee is paid by the advertisers each time a customer engages in a live text, audio, or video chat. Pricing can range from a few dollars and up depending on the audience. Hybrid pricing - this could be a monthly base price for a subscription PLUS a cost per use - impression/click/lead/chat. With regards to publishers and rich media platforms there are various pricing models as well: Cost-per-cube - each time they use the platform they pay a certain charge  - prices can range from several hundred dollars to several thousand dollars. Platform licenses - a flat rate per year for creating as many display ad cubes as they like. Hybrid licenses - a set annual rate (usually lower than a Platform license) plus some cost per use. Beam Cube The beam.cube has all functionality of the crackpot.cube but includes the ability to have live streaming video (beaming) which enables real time, live customer service via two-way video streamed directly onto a given cube. For example, when a person walks into a retail location and sees our crackpot kiosk, which will be an interactive flat screen, they can initiate an interactive customer service session on our beam.cube. Currently, this would be activated by entering a search for a subject or in some stores it could be a constant customer service presence and could be activated simply by clicking/touching the screen. Before the customer service from live video feed (beamed in) starts to answer specific questions, the person may find their specific cube and not need help. This is also applicable if they get the message that the customer service is not available yet. Instead of just waiting they will have the ability to find the correct cube. After the person has the cube that is explaining all the pertinent information, the cube is beamed (texted, emailed or bumped) over to them on their own mobile device. The cube that is now native on their mobile device includes a discount for using the kiosk which includes a bar code for ease of transaction finalization. At this point the person is directed to the proper aisle to look for their product. We do plan on making this service available on all commercial cubes on
phones in the fall but currently it will only be used at retail and will be initiated from a kiosk. In the fall it will also be available from embedded cubes as well as from commercial cubes available through the search function of the cubes on our site and mobile app as well as through text or email. Additionally, the beam.cube is different because it is only enabled where customer service has preset the cube widgets to be able to load cube information to then be transferred to the customer. Once the customer uses the beam.cube they now are not just a visitor but an interactive and ongoing, retained customer. Now the retailer can updates the customer’s cube with new advertising for the store. As a matter of fact, because the store has given the customer the cube they can offer for them to make it into their own cube and use it for family photos videos, events and so on. So the store gets to actively participate in an ongoing, comfortable relationship with the customer while furthering their relationship to the retailer. Sure there will be store advertising and information that will come on the cube, but in a very non-intrusive way that is highly valuable to the customer. This is the number one way the people will use and have access to the store information while on the run with their busy mobile lives, all the while amerced in the fun of using their cube for free, thanks to the newly formed, mutually-beneficial customer-retailer relationship. Corporate partnerships We are currently working with various local, national and transnational corporations. Our strategic partnerships range from car manufacturers, hotel chains, retailers, real estate sales services and sales groups to top online and mobile advertisers. Below is a compilation of a few of these ongoing and recently formed relationships.
Ping Mobile, Mobile Marketing Agency Ping Mobile has been a leading mobile marketing agency for over 10 years, running mobile marketing campaigns for hundreds of clients from AT&T, KFC, Time Warner Cable, Warner Bros. and Westfield among many others, for traditional SMS marketing campaigns and interactive campaigns, through to data-driven mobile CRM campaigns, MMS and mobile content, and redeemable mobile coupons. Ping Mobile’s technology uses a customer's interests, demographic data, purchase and redemption history, and geo-location to ensure a targeted and effective marketing strategy. Ping mobile was our first major commitment and corporate partner, and greatly strengthened us as a team. It has taken over 3 months of testing and development for them to be prepared to sale the crackpot.cube but within the last few weeks the sales process has begun. Because Ping Mobile was our first major partner and had some synergistic advertising and mobile technologies we decided to focus our relationship around the verticals that they’ve been entrenched in over the last few years and gave them some exclusivities as well as non-exclusive markets to have their
sales force focus on. Within the relevant verticals in which we have partnered, we have agreed to a 50/50 revenue split after our cost of production and service of the contracts. Exclusive verticals with Ping
Movie Studios Over the past month they have received tremendously enthusiastic responses to our movie related demo cubes and have since received verbal commitments from Universal studios as well as Sony (Ping has been handling the majority of their mobile advertising over the last 3 years) to use the crackpot.cube for their advertising of to be released motion pictures. We a currently making minor adjustments for what they are needing from their corporate (movie) cubes and we will have finished their requirements within the next production cycle. The price Ping has offered Universal is $25,000 per movie for the first 4 movies. Upon completion of those 4 cubes we will start production for Sony’s cubes, the number of which is still being negotiated.
Hotel Chains Ping has built a strong relationship by providing mobile advertising to Wyndham Worldwide over the past few years. Ping has recently presented Wyndham the crackpot.cube and as of last week Wyndham has decided to launch their first test cube for the individual Days
Inn hotel brand around the country in the next week or so. After the initial month or two of testing the market, Wyndham intends to further implement the cube to be used to advertise for other Wyndham brand name hotels. The price for each hotel is still being negotiated because certain hotels will be paying a flat rate of around $80 a month for particular services and marketing strategies, whereas other hotels will be using our technology for broader, outbound marketing which will be priced depending on the volume of texting and emailing and whether they will be using the latest animated gif MMS cube texting which we just accomplished.
National Directories Ping has been doing exclusive texting for Yellow Pages for over 5 years and has approached them with great success. At this point they have asked if we could actually integrate/embed the cubes for their customers as an up-sale into the Yellow Pages platform. By accomplishing this they can sell the cube as an up-sale to their current offering. Three weeks ago we proved the viability of doing so and are working for a well tested platform for release in the middle of July which will allow Ping the opportunity to work to implement a new facet to their ongoing relationship with Yellow Pages. It is not known yet whether this will be considered as a long-term exclusivity with Yellow Pages, as we have been approached by other directories as well. The pricing for small businesses ranges as low as $5.95 to as much as $99.95 a month depending on the mobile texting and cube construction options. Large Hyper Market Retailers Ping has been an exclusive mobile and texting partner for large retail giants such as Westfield
Malls for years. The cube presents opportunities to increase the mobile presence of Westfield for its customers as well as generate excitement regarding the initial implementation of our aforementioned retail kiosk beam.cube. At this point we are preparing to implement the first version with Westfield Mall at Logan Airport in Boston by the middle of July. They are going to use our display advertising cube. Our current revenue distribution model is to take 25% of the advertising revenue on a cube with the 75% going to the mall and retailers who are charging for placement from the vendors wanting to be featured that week or that month. It is very difficult to gauge how much revenue this will create but Ping who has lived off of mobile and online advertising for over 10 years believes this to be by far the most profitable business model presented by the cube. Non-exclusive verticals with Ping
Automotive Industry Although Ping does not have an exclusive contract with us for the auto industry they have already struck their first deal last Friday with American Honda Motor Co. Inc. They presented the cube concept on a Thursday and received a yes the following day, with Honda’s advertising agency demanding that Ping meet with them immediately to implement the program as soon as possible. With other groups we are charging $2,000 for each initial cube platform set up and $79.95 a month for that specific local dealership, as well as individual cars being automatically uploaded to individual cubes for 50 cents per car. We have not had time to address pricing with Honda as well as the exact use as of yet. This is partly because in addition to the per dealership projects, part of Honda’s heightened excitement was our completion of the online animated gif of the cube and the texting of an animated gif cube, as well as the opportunity for the in-depth space multiplication for national advertising. Getting the details worked out with such a large customer will take several weeks but we anticipate going to contract with a deposit in July and implementation in August.
Commercial Real Estate While this was not originally a market that interested Ping Mobile, they have found early success with existing partnerships. Ping has been in a long term relationship with a few national commercial real estate leasing companies and the first to show interest seems to be one of the largest in the greater Los Angeles area. Ping is in the process of negotiating with corporate commercial real estate leasing groups such as Constellation Place (700,000 sq. ft) in Century city and is charging around $79 dollars a month per cube (some buildings such as Constellation Place will have many cubes for different types of offerings) as well as texting and emailing packages. Ping believes it can close a minimum of 1,000 buildings in the next year but believes this number could grow as much as 10 fold of that projection because of the national groups they are working with. They believe they will have their first national groups in place and under contract by August. Personal endorsements “This is the most innovative product and although its a Game Changer in the industry it is simple and practical to sell” -Rudolph Lowy, Chairman and CEO, PING MOBILE “Simply put the crackpot.cube is tremendously disruptive as an advertising space multiplier coupled with its versatility for delivery. Now advertising or information real estate on mobile and web delivery can carry a minimum of 6 times as much media” -Isaac Noar, CTO Ping Mobile Schnair Sales and Service Inc. Schnair Sales and Service, and past affiliates, began over 65 years ago, developing and growing into a team of knowledgeable representatives, with the experience and vision in understanding today's marketplace. SSI is delivering a diversity of products through to the end user. With C-Stores now the preferred locations for gasoline purchases, the conversion to gas/convenience has been a powerful sales movement for Schnair Sales. They have over a 25-year history
with grocery and C-Stores, resulting in both segments receiving the optimum past and present margins and sales. SSI’s growing relationship thrives and continues to develop due to mutual growth for distributors and retailers. SSI was introduced to the crackpot.cube less than two months ago and has already invoiced their first cubes for use by Advantage Auto and O’Riley Auto Parts. Advantage has said they would like to use the cube for employee education and we are building an interactive, cube driven quiz to accomplish this. They have asked us to start with 6 products for market education using the cube but plan on doing this on all product lines in the near future. SSI has confidence that they will foster similar cube driven relationships with other vendors but more importantly, they feel like they will receive the same excitement about the cube with all of their retailers. Additionally, SSI has found great reception for the retail kiosk (beam.cube) and are working to implement it with the same retailers. Outside of their marketplace they introduced the crackpot.cube to State Farm Insurance, which immediately stated that the crackpot.cube is the exact concept they have needed to move their company into the mobile market. State Farm even asked and invited crackpot.cube founder Stephen White to speak at their next national convention about the creative mobile marketing potential of real estate with the crackpot.cube platform and are moving to deploy the cube for all of their representatives in addition to consumer sales and education. Schnair Sales and Service Inc exclusive accounts Retailers
Vendors
Personal endorsements “We live on commissions. So over the past 20 years we have focused on products that we know bring great value to our retailers. We represent over 1,000 products and have found the crackpot.cube to be the most innovative yet one of the easiest sales we have handled.“ -Billy Schnair, CEO - Schnair Sales and Service Inc “The crackpot.cube is perfect for the sales training of our over 70,000 employees. We’re proud to be currently working to implement the cube for Advantage Auto as well as O’Reilly Auto Parts as a product training device.” -Lee Hunt, VP of Product Development Radiator SpecialtyCompany
Response Catalyst Inc. Response Catalyst are direct marketing specialists involved primarily in mobile, online and text marketing programs for a variety of commercial clients. Response Catalyst has already begun it’s AB test with both Amerispec (services close to 40% of the real estate market) and Safeguard products finished their test and are launching their cubes in September. While the decision is yet to be made for their overall strategy, Amerispec is going to use the cube to educate realtors and consumers on their warranty products but is also contemplating using the cube as a give away to any realtor that is using the Amerispec inspection services. Response Catalyst has also handled online and telecommunication advertising for both the Republicans and Democrats at a national level. In testing the cube with national political consultants, Response Catalyst believes that the cube will be the future of its marketing involvement in campaigns and plans to use the cube for building towards 2014 midterm elections starting in the fall. Response Catalyst exclusive accounts
Personal endorsements “This is by far potentially most productive product I have ever seen. My only problem is trying to keep focused on just some of the uses. My initial testing with Amerispec and American Home Shield as well as All State Insurance has been well received and is becoming a real focus for the companies for this fall.” -Matt Wendel, VP of Marketing, Amerispec Home Inspections
“Political campaigns have a new, unprecedented voter outreach tool with the ability to text the cube to mobile devices.” -Doug Hibbeler, CEO, Response Catalyst, Inc.
Merit Media Merit Media Inc has a long history of successful custom niche media and advertising programs for high profile clients in online media as well as direct response. Currently Merit is working with car sales groups and in particular online car sales leader AutoTrader, to implement the cube as an online sales tool for their vast inventory of cars. While this relationship is still in its early stages, last week Merit closed its first dealership with Henderson Hyundai. Pricing for this project is $79.95 per dealership and .50 cents per car that they build cubes for.
Merit Media exclusive accounts
Personal endorsement “This is one of the the best digital innovations we have seen in the online advertising space to present automobiles.” -David Peterson, President, Merit Media
LiveADViZOR LiveADViSOR is a technology independent web based video call center platform that enables the delivery of healthcare services to the home. LiveADViZOR enables highly secure, cost-effective, and scalable video consulting ability to both patients and providers. This single platform can be used for both service delivery to existing patients as well as new patient acquisition through online marketing efforts. Because of the live and interactive nature of LiveADViZOR’s technology there is a natural fit with the beam.cube concept. They have since moved rapidly to integrate the two technologies not only for the medical world but for customer service in general for all industries. LiveADViSOR recently began discussions with Walgreens about using the beam.cube coupled with their video technology capabilities. LiveADViSOR exclusive account
Personal endorsements “Being in advertising sales since 1992, and interactive sales of both advertising and ad technologies since 1996, I can honestly say this is the most innovative, engaging, and compelling ad unit/platform I've come across. As the founder of a live video chat application platform I see the crackpot cube in so many extended uses. It is truly going to bring commercial use of live video chat into it's own - whether in ad units, kiosks in stores or in social media applications.” -Joe Bigley, PhD CEO, LiveADViSOR “It is no longer possible for a company to market in one dimension. It is just as important to speak about social concerns and philanthropic efforts as it is to promote products. Up to this point that has been a very flat experience, linking these different aspects of a
company. The crackpot.cube allows a company to tell the entire story in one cohesive unit. It fits together and flows and gives the audience a full picture. Further, it’s a myth to believe that your business world and personal world are isolated from each other. As if my Linkedin contacts are completely separate from Facebook friends. Consumers are more and more a single entity that encapsulate their business world, their friends, and their passions. The crackpot.cube allows you to see every human, every concept in a threedimensional way which is a much more realistic insight into who we are and how we want to be represented. I believe that the future of business and one’s personal and corporate presence is going to be centered around their virtual identity. Disruptive technology is the current term for innovations like the crackpot.cube but I see it as being more than just disruptive. It is clearly a transformative enhancement tool for the whole of the marketing world.” -Deirdre Bigley Global Leader, Marketing Communications Bloomberg Former VP Worldwide Advertising, IBM
Management Founder & CEO: Stephen White President, Editor-in-Chief of CRACKPOT.culture: Joseph White Chief Information Officer: Branislav Gjorcevski Chief Technical Officer: EIlija Misov Corporate Market Manager: Dave Petersen Small Business Market Manager: Joshua Abrams Sports and Event Market Manager: Cody Wilson Merchandise Manager: Shelley Lenz Non Profits - Charity Manager: Sabeena Bann Corporate Advertising: Isaac Noar (Ping Mobile-JV Partner)
Distinguished board members with vast expertise in the areas of advertising, marketing & finance Rudolph Lowy, Chairman & CEO, Ping Mobile David Currier, GM International and Ophthalmic Divisions at Smith Sport Optics Dr. Joe Bigley, CEO, LiveADViZOR, Live video platform for telehealth communication throughout the care continuum. Alfred A. Rapetti, Recovering Investment Banker
be yourself. be a crackpot. change your world. get cubed.