Brilliant Points, Inc. (or the Company), is a software- and services company that employs unique software designs and configurations in order to transfer information between users and computers using innovative applications of laser, optical, or video technologies. One U.S. patent has been granted to the Company in the area of optical control of computers (e.g. computer-based presentations) and has applied for others that have promising applications. There have been foreign patent applications filed and they are still pending.
The Company’s mission includes the creation and protection of intellectual property through international patent application, aggressively protecting patents against infringement, and finally entering into licensing agreements with vendors and manufacturers of optical, laser, or video components. The Company has designed numerous products that make use of its intellectual property and generate revenue. These products have immediate uses in government, corporate, educational and gaming environments.
Brilliant Points has entered into the computer presentation market. The company’s innovative, cutting-edge technologies have real-world applications and are easy to use. The Company believes that the company has created technologies that have a future. The Company’s opportunity lies in the securing patentable technologies that can be commercialized and then obtaining licensing agreements with manufacturers of existing solutions. This will enable them to grow their product line and provide solutions for common problems.
Brilliant Points has patented the first technology. U.S. Patent No. 6,275,214 ‘#8211 Computer presentation system and method with optical tracking of wireless pointer uses software to control a computer using standard laser-pointing devices. The drivers also give the laser pointing device the functionality and functionality of a mouse and keyboard. This makes presentations more accessible, increases the number of options for presenters, and opens new applications for entertainment and gaming. By combining the functionality of two necessary peripherals, the mouse and the keyboard, into the already useful laser pointer, Brilliant Points allows the presenter or user to focus more on the art of the presentation or application, rather than the technology enabling it. A three-minute demo video is available for download from http://kchansen.home.att.net/.
The computer presentation market has a significant size and is rapidly growing. Stanford Resources, a research company, estimated that there were two million worldwide shipments in 2002 of business projectors. These projectors are used to create presentations for boardrooms, conference rooms, and other venues. It reached 1.4m units and $6billion in revenue. They predicted that the market would reach 4.5 million units with $10 billion in revenue within four-years. Hewlett-Packard recently announced that it will start shipments to business projectors systems. This is a sign that PC manufacturers are interested in this market. InFocus, which is a major business projector manufacturer, has set a target of 4% “attachment rate” for its business projectors in the laptop market. This device is expected to be a huge hit in the home market. InFocus predicts that the company’s projector system shipments to home entertainment systems will exceed 2.5 million units next year. More information is available at:
http://news.com.com/2100-1040-878277.html
http://media.corporate-ir.net/media_files/NSD/infs/presentations/2002shareholdermeeting/sld032.htm
http://media.corporate-ir.net/media_files/NSD/infs/presentations/2002shareholdermeeting/sld041.htm
Brilliant Points is looking to get into the presentation system market. They plan to aggressively market and license their technology by selling “/upgrade kits (consisting pointer, Webcam and Company software) and sales/licensing Brilliant Points SDK instruments that enable companies to create drivers and applications that use the patented Brilliant Points technology.
The Company plans to first focus on retrofitting existing owners of presentation hardware using ‘#8220’ upgrades.
Brilliant Points is also hoping to stimulate the demand for presentation hardware makers to include Brilliant Points’ software and laser pointsers in their hardware, as a substitute for limited functionality from remotes or other controlling devices. Brilliant Points has developed software solutions that can be used to enhance business presentation systems.
The Company’s forecast growth in computer-based projection systems and the anticipated demand for Brilliant Points technology make it a compelling investment opportunity. However, there are many other opportunities that have the same or greater potential, but they will take longer to develop and realize.
Brilliant Points has patent pending products which allow it to (1) securely transmit data via the laser-pointing system (secure pointertechnology), (2) use complex laser emitter heads capable forming distinct colors (complex pointertechnology) and/or (3) use stabilization mechanism in the pointer to reduce ‘pointer jitter’ (stable pointeder technology). Brilliant Points secure pointer technology enhances the performance of the hardware, software, and allows users to confidently use it in multiple devices, and related applications, without fear of audience interference. Secure pointer tech also offers military personnel new opportunities. It can be used to improve laser target identification devices, or to create undetectable secure optical communications lines that can be detected directly user-touser or indirectly via reflections from walls, clouds, or any other obstacles. Complex pointer tech allows the creation of multi-user interfaces that each user can use their own secure/complex points device. Complex/secure pointser technology is useful for presentations that require audience interaction. The audience members will have their own secure/complex pointers. This technology also has military applications. Stabilized pointers make it easier for the average user to select menu items, click buttons, etc., during a presentation, and reduce the distraction to the audience that comes from random hand or finger movements causing the pointer on the screen to jump about.
Each of these developments, (1) secure pointers (2) complex pointers (3) and (3) stabilized pointers, open up new sales channels and revenue streams for Brilliant Points. These technologies are expected to be of significant interest to laser pointer manufacturers. They will allow a paradigm shift in market from one that is commodity-based to one that is based on products tailored to specific applications and requirements. This will significantly increase profits for both the manufacturers and Brilliant Points. While the market for laser pointers has been declining, it opens up future revenue opportunities to Brilliant Points. There are many companies that produce laser pointers. They have large product lines and some of them are very big. The Company might be able expand its licensing revenue by using the Brilliant Points presentation product. Brilliant Points’ presentation system will make laser pointers more functional. Management believes licensees in this market will experience positive changes. Licensees will be able offer more features than their competitors and move away from a commodity-type market.
Brilliant Points intends aggressively to pursue licensing agreements with large companies already operating in this sector. The Company also plans to defend its patents and prevent infringement by others. The Company’s goal is to keep costs low and earn significant income while maintaining a high level of profitability.
Because it is a true start-up, Brilliant Points does not have historical financials, and due to the course it is pursuing, it is very difficult to project revenues with certainty.
However, for the purposes of this analysis, the Company has made some basic assumptions that show licensing revenues based on licensing a small percentage of the business presentation system industry. Based on these assumptions, the company anticipates significant revenues within its first 18 months of operation. This is based upon licensing approximately one-half percent of forecast business projector sales, and/or 60,000 upgrade kits for existing presentation systems. Although the projections in this plan are based on them, more optimistic projections (assuming greater licensing penetration and higher per unit nets) show that the Company could generate hundreds of millions of dollars annually for five years. These optimistic estimates may prove to be too low if (1) home entertainment and (2) gaming are achieved.
Brilliant Points is seeking major capital investment and a line of credit to bring in critical talent and commence aggressive marketing, licensing, and sales of Brilliant Points technology. Brilliant Points projects a five year investor liquidity event. It will consist of (1) IPO, (2) acquisition or (3) Full Intellectual Property ownership by one of these larger companies.
1.1 Objectives
Initial three months
- Recruitment for sales and marketing managers.
- Recrute software and hardware development personnel
- Office space available
- Get started with software/hardware design, development and maintenance.
- Improve your website.
- Design marketing/sales campaigns.
First six months:
- Simple pointer: Release-candidate-1 hardware (Multiple dots and/or colors.)
- Driver software for Win platform(s).
- Beta-1 LaserBoard(tm) SDK.
- Preliminary licensing negotiations with manufacturers/resellers
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- Projectors
- Webcams
- Here are some tips
- PC manufacturers
- OS
- Advertising campaigns can be started (under the direction of a marketing director).
- To handle downloads and orders directly, enhance the website
- Shipping “Upgrade” kits to in-place business projector owners (e.g. boardrooms, conference rooms, lecture circuit)
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- Webcam
- Simple pointer
- Simple control application
First year:
- Multi-button optical pointing device. Develop and market it. Optional features include an external keypad and headset.
- Alpha-1 hardware/software with enhanced pointer. (Display head using DLP or other technology.)
- Negotiating first licensing deals with pointer, projector, and Webcam manufacturers/resellers.
- Continue R&D into related technology areas.
- Continue pursuit of IP protection via patent, trademark, and copyright.
- Shipping/Licensing simple tiper, simple driver and enhanced driver
- 10,000 Upgrade Kits #8220′ shipped.
Eighteen months:
- With options, develop and market a secure pointer.
- Develop a gaming interface SDK
- Close first licensing deals.
- 50,000 “Upgrade” kits shipped.
- cash flow positive.
Second-year
- Achieve 1.5% licensing penetration of business projector market.
- 10% pointer market penetration licensing.
- In one year, 60,000 ‘#8220’Upgrade’ kits were shipped.
- Preliminary licensing negotiations with gaming device manufacturers.
- Continue R&D into related technology areas.
- Continue to pursue IP protection via patent, trademark, or copyright.
- Profitable.
3rd year
- 2.5% market penetration for business projectors.
- At 20% license penetration in the pointer markets
- 90,000 “Upgrade” kits shipped in year.
- Continue R&D in related technology areas.
- Continue to pursue IP protection via trademark, patent, and copyright.
Fourth year
- Achieve 4% licensing penetration on the business projector markets
- Reach 40% penetration of the pointer market licensing.
- Closest licensing deal with manufacturers of gaming devices
- 150,000 “
Yearly shipment of Upgrade” Kits
Ongoing:
- You can explore and obtain additional licenses.
- Each year, increase licensing penetration, with a goal of at least 50% for each market.
- Make software and hardware safe, easy-to-use, and foolproof.
- Brilliant Points should be a household name, so that even when IP protection expires, people will still turn to Brilliant Points first for laser and imaging technology solutions.
- Continue R&D in related technology areas.
- Continue to pursue IP protection via trademark, patent, and copyright.
Exit Strategies for Investors
- Publicize around the 5th Year.
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Acquired from another company
- Input device manufacturer/reseller
- Projector manufacturer/reseller
- OS manufacturer/reseller
- Manufacturer of PCs
- Laser pointer manufacturer/reseller
- Webcam manufacturer/reseller
- Exclusive full rights licenses for specific areas with guaranteed revenue stream throughout the term of the patent
1.2 Mission
Brilliant Points specializes in information transfer from users to computer systems using innovative applications of laser and optical technologies.
Our mission is to create and protect new applications in order to improve their quality and integrate them into all aspects human/computer interaction, from corporate boardrooms to the home user to the gaming arena.
Our applications will offer users ‘#8220cool’ yet cutting-edge technologies that are easy to use and durable in operation.
We will achieve this by providing outstanding quality to our customers, exceptional customer service, and creating an environment that stimulates the mind and is enjoyable for our employees.
1.3 Keys for Success
- Patented technology, which involves significant, useful enhancement of existing presentation methods, provides 15 to17 years of monopoly like development environment.
- Aggressive IP protection through copyright, patent, and legal enforcement
- Rapid development, marketing, penetration, and visibility in the market to improve visibility to potential buyers and/or purchasers.
- Licensing of technology to others, rather than being sole-source of hardware/software.