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IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 1

Immersive

Technology Studios Business Plan

Rev. 1.3

“Bridging the Gap between the Real & Digital World”

43 Daniel Dr.

Barre, VT 05641

p. 802-451-9162

[email protected]

https://vrtourpros.com


Table of Contents

I. Executive Summary ................................................................................. 4

Mission Statement

Highlights

Revenue Goals

Business Objectives

Keys to Success

II. Description of Business ........................................................................... 7

Legal Entity / Founding Team

Products and Services

Suppliers

Management

Timeline

III. Financial Management .......................................................................... 15

Financial Management

Phase 2 | Seed Round Funding

Phase 3 & 4 |Series A Funding Round

IV. Marketing ............................................................................................... 18

Market Analysis

Market Segmentation

Competition

Competitive Advantage

Pricing

V. Company Culture ................................................................................... 23

Commitment to Employees

Commitment to the Community

Commitment to Faith

Commitment to Diversity

VI. Appendix ................................................................................................. 25


Startup Expenses – (Appendix I)

Revenue Projections (Appendix II)

Milestones (Appendix III)

Market analysis (Appendix IV)


Executive Summary

Mission Statement

Immersive Technology Studios seeks to bridge the gap between the real and digital

world by building realistic, interactive, and immersive virtual reality tools to engage

audiences around the world.

Highlights

Immersive Technology Studios is seeking to build a world-class virtual reality

platform that will “bring education to life” by creating content and tools that will

engage students and improve learning retention, as well as provide educators the

tools they need to administrate, track, and report on their pupils progress.

This ambitious goal has been carefully mapped into four phases of the company’s

growth. Stage one, which is already underway, involves ITS providing VR services to

outside companies in order to discover the best practices in creating and building

content in this emerging technology field. Stage two marks the transition from a

service based company into a product based supplier by building an educational VR

platform that accomplishes the above goal. Stage Three will focus on creating

quality content that will be deployed on the platform. Finally in stage four,

estimated to be in Q3 of 2019, the platform will be release to the target market with

a revenue goal of $7 million in 2020 growing to $56.25 million by 2025.


Revenue Goals

Business Objectives

Develop scalable virtual reality platforms and content for distribution into

select industries.

“Bring Education to Life” by creating quality VR platforms, content, and tools

for teachers and students to improve learning and knowledge retention.

Capture 6% ($12.9MM) of market segmentation within 3 years of product

release.

Capture 15% ($56.25MM) of market segmentation within 6 years of product

release.

2019 2020 2021 2022 2023 2024 2025

$2,700,000.00$7,000,000.00

$12,900,000.00

$20,400,000.00

$29,500,000.00

$40,200,000.00

$56,250,000.00


Keys to Success

Realistic – ITS believes that in order to take full advantage of virtual reality

technology the content that is experienced must be relatable. To that end we

believe in producing highly-realistic VR content that represents an actual life-

experience someone would have when using our VR products. This includes

producing high quality photo-realistic environments, not computer

generated model representations.

Interactive – ITS believes that the users should be in-control of their VR

experience. While being surrounded by amazing content is great, if users do

not have a way to interact with that content then the VR experience is

nothing more than a fancy “view-master.” Examples of interaction include

moving around the VR environment, as well as selecting and engaging with

elements within the experience.

Immersive – ITS believes that the best way to enjoy VR environments is

through highly immersive experiences. As a first step this means being an

advocate for the use and advancement of VR headsets within the culture.

However it also means expanding beyond simple headsets and creating

tactile experiences that can take advantage of even more immersive

technologies, incorporating both sound and touch elements.

Accessible – ITS believes that VR must be accessible to everyone, regardless

of their budget, VR headset choice, or lack of access to VR hardware. In order

to address this ITS has worked hard to develop a WebVR platform that is

cross-platform compatible and capable of working on all types SBS headsets;

ranging from the high-end and expensive luxury units, to basic and

affordable mobile VR models. Additionally the ITS platform provides non-VR

fallback options to use on mobile devices or computers for when VR is not-

practical or possible.

Visionary – ITS believes is bridging the gap between the real and digital

world. As part of this mission it means looking ahead toward the future,

identifying creative technology solutions to the world problems and

developing realistic ways to meet those needs.


Description of Business

Immersive Technology Studios is a premier Virtual Reality (VR) Studio committed to

bridging the gap between the real and digital world by producing high quality VR

content that is realistic, interactive and immersive.

Legal Entity / Founding Team

Immersive Technology Studios is currently a tradename for Glover Ventures, LLC.

With majority ownership (75%) by Andrew Glover, and partial ownership (25%) by

John Parker. During the seed round investment period ITS will be split off into its

own separate entity, current options being considered are an LLC, or B-Corp.

Andrew T. Glover – Founder / CEO

A lifelong entrepreneur, Andrew Glover got his start in the business world in

middle school renting concession equipment and selling food and beverages

at local events. During high school he trained and worked as an AASI certified

snowboard instructor, and then supervisor at a ski-shop in West Dover, VT.

He would later return to manage that ski shop in the winter of 2011/2012.

After attending Liberty University, Andrew started Vermont Media Solutions

(VMS), a full service marketing company providing digital and traditional

marketing services to small businesses and organizations throughout New

England. In addition to providing consulting services through VMS, Andrew

has also worked as Marketing Coordinator at Hibbert & McGee Wholesalers

(5/12-1/14), and Director of Marketing at Moscow Mills, Inc. (1/14-10/15).

Today Andrew is the CEO of Glover Ventures, LLC. which owns and operates

both Vermont Media Solutions and Immersive Technology Studios.

John M. Parker – Co-Founder / CTO

A life-long geek, John found that "being a nerd" paid off in High School.

Representing Keene High School's Cheshire Career Center in SkillsUSA's

Vocational Industrial Clubs of America (or 'VICA' for short) competition, John


won first place in the state-wide challenge and went on to compete at the

national level in Kansas City, MO (twice). After leaving college at New

Hampshire Technical Institute, John returned to southwestern New

Hampshire to begin working as an Associate Software Engineer for ES3, LLC.

At ES3, he refined skills while developing technical solutions to support ES3's

efforts in becoming a world leader in Automated Warehousing.

Today Joh works as a Programmer Analyst at the world's largest dairy breed

association, Holstein Association USA. His most recent project involved the

development of a comprehensive management tool designed to help dairy

producers optimize investments in Holstein genetics through the use of

genomic testing. “Enlight”, developed in collaboration with Zoetis Services LLC

and Holstein USA, empowers dairy herd owners by providing them with

simple, convenient access to all their genetic information along with analytics

to turn that information into profitable herd management.


Products and Services

Phase One – Service

In the early stages Immersive Technology Studios’ business model will focus on

streamlining the development of VR content. This includes developing the

technology to professionally produce and distribute content ranging from 360°

video, to virtual reality tours, to interactive VR experiences. The time spent in phase

one will provide ITS personnel the technical knowledge, practical experience, and

demonstrated proof-of-concept material needed to move into phase two.

During phase one revenue will be generated primarily through consulting and

production of special projects. This includes working with specific industries to

assist them with adopting the technology, as well as consulting on special one-time

projects.

Phase One Specific Services:

Virtual Reality Tours

360° Video

Interactive WebVR

Experiences

VR Distribution Methods

Monetization Models for

WebVR

General VR Consulting

Specific Examples of Customers:

Realtors

Colleges / Universities

Municipalities

Small Businesses

Tourism Industries (Hotels,

Resorts, B&B’s, Etc.)

Golf Courses

Marketing Agencies

Museums

Phase Two – Product Proof-of-Concept / Research

Immersive Technology Studios believes that in order to grow the company will need

to consolidate the consulting services into a product centered business model. The

company will take the knowledge and expertise gleaned from producing content

for other customers (phase one) and focus it into a unique application of the

technology that will have a disruptive impact in the educational industry.


The anchor product for ITS, “Lyceum” (working project name), will be a consolidated

distribution platform and production company catering the educational industry.

Lyceum will “bring education to life” by providing students immersive virtual reality

experiences of culturally significant sites and events. These experiences,

consolidated and distributed through the Lyceum online platform, will help

teachers impart the true importance of the material they are teaching.

Instead of reading about the civil war, students will be able to walk around famous

battlefields, tour the national civil war museum, and witness a reenactment of the

surrender of General Lee. Instead of just learning about immigration, students will

have the opportunity to experience what it is like to take the journey that an

immigrant takes. Instead being told what it’s li ke to walk through the catacombs of

Rome they will be able to do it for themselves.

ITS has several goals during phase two, these include:

Producing 1 – 2 VR Cultural Experiences (Modules)

Develop minimum-viable-product (MVP) of Online Distribution Platform

Establish test-cell to both demo the software as well as collect data on results

of educational improvements.

During phase two ITS will be producing little to no revenue.

Phase Three – Content Production

Once Lyceum MVP has been developed and positive results have been

demonstrated in a classroom environment ITS will move into its third phase.

One of the more unique aspects about Lyceum is that all content will be produced

by ITS at no cost to the cultural / heritage site. Instead ITS will partner with each

educational leader to produce content that they can in-turn use free of charge

within their own organization, in exchange for licensing and distribution rights. By

doing this ITS hopes to have greater access to more enriching environments and

places. Phase Three will focus on generating this content.


To accomplish this ITS will work with state and national educators to identify

educational tracts that scholastic users will be able to incorporate into their

educational curriculum. Each module that is produced will consist of:

Interactive Virtual Reality Tours

Interactive VR Story Telling

360 Video Documentaries

Example Module: Civil War

VR Tours: Fort Sumter, Manassas Battlefield, Appomattox Court House,

National Civil War Museum.

Interactive Story Telling: Q&A with Abraham Lincoln, Robert E. Lee, and

Ulysses Grant. Q&A With Civil War Historian.

360 Video: Battle Reenactments, Period Life Overview, VIP Biographies

As an educational tool the primary market for Lyceum is public and private schools

and school systems. Therefore a key component of the system will be the backend

features that Lyceum offers to educators on both the individual teacher level and

school level. During phase three the Lyceum platform developers will be working

on integrating user level tracking and reporting that will be available to teachers to

track the progress and improvements of their students.

The primary goals of phase three are:

Develop content modules

Finalize Lyceum Platform

Beta-release to select markets

Collect User Feedback and Success Stories

Develop Marketing & Sales Material

Phase Four – Publication & Sales

Once the Lyceum platform is ready to go ITS will release the platform to the general

market, and ramp up direct sales efforts (See Marketing / Sales). This includes

working with federal, state, and local educators for adoption within institutional


organizations, as well as to other educational markets such as home educators,

self-educators, and special interest groups.

Suppliers

ITS is either already working with, or anticipates working with, a variety of software

and hardware suppliers in order to produce our engaging VR content.

Software Suppliers:

PTGUI (Stiching Software)

Kolor (Stiching Software)

Video Stich (Stiching Software)

Adobe Creative Suite (Production

Software)

KR Pano (WebVR Framework)

A-frame IO (WebVR Framework)

Moz VR (Open Source Community /

WebVR Framework)

AWS - Amazon Web Services

(Online Hosting and Cloud

Computing Services)

Hardware Suppliers:

Giroptic 360 (Camera)

Black Magic Design (Camera)

Panono (Still Camera)

Midnite Engineering (Engineering

Manufacturer)

Steerling Technologies

(Manufacture)

Oculus Rift (VR Headset)

Google Cardboard (VR Headset)

HTC Vive (VR Headset)

Leap Motion / Orion (Hand &

Motion Tracking

As the company grows we anticipate utilizing more software and hardware

solutions to efficiently solve challenging problems.


Management

Chief Executive Officer (CEO) – Andrew Glover

The CEO’s role will be to oversee company operations and ensure progress is being

made toward overall company goals. Furthermore CEO will work with department

heads to develop creative solutions to problems. Additionally CEO will be primarily

responsible for forming strategic business partnerships and alliances to set the

tone for future business opportunities.

Chief Technology Officer (CTO) – John Parker

The CTO’s role will be to develop and fine-tune the technical capabilities envisioned

for the company. CTO will work hands on with development team to produce the

webVR platform which will enable ITS to serve its target market(s). Additionally CTO

will work with CCO to ensure that creative works are properly formatted within the

ITS platform.

Consulting Chief Legal Officer (cCLO) – David Sterrett

The CLO’s job is to ensure company minimizes legal risks associated with the

company’s strategic partners, customers, and government regulations. Additionally,

CLO will assist CEO / CFO with investor relations. Currently the CLO position is

contracted out to Sterrett Law, PLC as a consulting position.

Creative Officer (CCO) – Still Needed*

The CCO will be responsible for the creative works produced for ITS. The CCO will

work closely with the CEO, CTO, and DEP to develop realistic, interactive and

immersive virtual reality content that will be engaging for the target market.

Chief Marketing Officer (CMO) – Sill Needed*

Chief Marketing Officer will be responsible for working with the CEO to promote the

use VR technology and ITS products and services. Additional CMO will be

responsible for general business development and initial sales opportunities. This

position will not be needed until middle of phase three.


Director of Educational Programs (DEP) – Still Needed

The Director of Educational Programs will be responsible for developing

educational modules and will work with CCO to develop engaging educational

content.

*Indicates that several candidates have already been vetted, or identified.

Timeline

Apr-16 Oct-16 May-17 Nov-17 Jun-18 Dec-18 Jul-19 Jan-20 Aug-20 Mar-21 Sep-21

Phase One

Seed Round Funding

Phase Two

Series A Funding Round

Phase Three

Phase Four




Day-to-Day financial management, including book keeping, payroll and taxes will be

outsourced to a local Vermont accounting firm. Strategic financial planning will be

performed in a collaborative effort between the senior leadership team, and the

controller.

The services provided by the controller include:

Record all downloadable bank

and credit card transactions.

Bookkeeping

Standard financial statements

Semi-Annual Reviews

Accounts payable management

Payroll

Invoicing

Inventory management

Accrual-based accounting

Answers to complex accounting

questions.

Customized financial

statements.

Quarterly Reviews

Coaching

Participate in company

meetings

Other Controller services.

Phase 2 | Seed Round Funding

Immersive Technology Studios will seek to raise $1.75 Million Dollars in an initial

seed round funding period. The money raised for this round will be used to cover

phase 2 operations. Included in this raise amount is the hiring of six full-time

employees. The procurement of necessary startup capital equipment. As well as the

necessary operating expenses associated with running a business. In total the

funds will cover 100% of the expenses for a two year period. See Appendix I for

more information.


The seed round funding will be raised by ITS in collaboration with the

WeFunder.com equity crowdsourcing platform, and it is anticipated that $1MM will

be raised through Title III CF, and $750K through traditional regulation D funding..

In addition to the funds received in the seed round ITS also has plans to apply for

several grant opportunities, such as the Department of Education’s SBIR Grant.

While not necessary, these grants have the opportunity to bring in additional

funding (Up to $1,050,000) that can be used to expedite and improve the ITS

platform.

Payroll, Benefits & Taxes $1,277,054.04

Capital Equipment $94,210.00

Operating Expenses $219,068.00

TOTAL ANTICIPATED

STARTUP EXPENSES

$1,590,332.04

Seed Round Funding Goal: $1,750,000

Phase 3 & 4 |Series A Funding Round

The primary goal of phase 2 is to build a MVP of the ITS platform, as well as use the

content and platform in test cells to collect data and feedback from users. Once

these goals are completed ITS will move forward into phase three using funding

from a second round of funding (Series A funding round). Specific funding for this

round has not been finalized but is estimated to be between $30-$50MM. This is in

line with other Series A funding amounts from similar VR firms including Jaunt,

Magic Leap, MideMaze, and others.

Series A funding will be used to fund phase 3 and the start of phase 4. This includes

hiring as many as 40 employees ranging from programmers to content producers,

and researchers to sales teams. Additionally funds in this round will be used to

procure a permanent facility, purchase capital equipment, produce content, and

pay for marketing expenses.


Exit Strategy

Exit for Seed Round Investors

ITS anticipates either an acquisition or IPO to happen in 2025 or earlier.

Leadership / Founder Exit

The founders of Immersive Technology Studios are committed to the success and

growth of the company. As a part of this commitment the founders will remain

material participants in the company for a minimum period of 5 years, with

additional tenure depending on company acquisition and later funding rounds.

Ideally the founders will remain as advisors, or chair-members, even after their

material participation period has ended.

Furthermore, non-founding C-level leadership and phase 2 employees will be

provided stock option with vesting periods of 5 years. This will encourage

employees to remain at the company and dedicate their work toward the long-term

financial success of the organization.


Marketing

Market Analysis

According to Goldman Sachs, the combined VR market will be generating a

combined $80 Billion dollars in revenue by the year 20251. Other reports, such as

the TrendForce VR market report, estimate that the market adoption may be as fast

as $70 Billion by 20202. Furthermore, Goldman Sachs estimate the revenue within

the educational market to be $300 million in 2020 and $700 million by 2025, with a

total user base of 15 million users.

Market Segmentation

The Lyceum primary market will be secondary public and private schools, of which

there are 37,000 in the U.S. alone. Furthermore we anticipate additional market

opportunity within the primary schools (grade 5-8), of which there are 98,000 in the

U.S.; as well as colleges and universities (4,100 total schools). This leads to a grand

total of 139,240 schools serving over 48 million students. Additionally, there are

~150 million students in other developed countries.

US Target market (Total # Schools)

1 http://www.goldmansachs.com/our-thinking/pages/technology-driving-innovation-folder/virtual-

and-augmented-reality/report.pdf 2 http://press.trendforce.com/press/20151204-2210.html

5 - 8 Grade (Public)98,000

9 - 12 Grade

(Public & Private)37,100


Competition

As of this moment there are no public projects that have a similar business model.

That being said, there are several competitors that could encroach on ITS’s targeted

market segmentation.

Google Expeditions

The biggest competitor that has the closest business approach to Lyceum is

the Google “expedition” program (GEP). This micro-venture from Google is

currently “invite only” and provides hands-on demos inside select classroom

environments. Google is leveraging their street-view database and other VR

platforms to provide teachers a way to provide student’s access to heritage

sites that otherwise wouldn’t be accessible. However these “experiences” are

only available when GEP schedules a school visit, and it’s not clear how or if

Google is generating revenue.

The biggest difference between Google Expedition Program and ITS is that

the GEP is a one-time experience, where as ITS is looking to incorporate our

VR content into school curriculum and teaching methods. Additionally ITS is

looking to incorporate more than just tours of heritages site, but also

interactive learning experiences as mentioned above.

Incidentally Google Ventures / Alphabet, would be a potential buyer /

Investor in Lyceum during Series A or later funding rounds.

Heritage Site Specific Products

Another competitor will be the individual heritage sites themselves, where

they will be producing, distributing, and controlling their own VR content. An

example of this is the virtual tour (not VR compatible) of the Smithsonian

National Museum of Natural History available on their website.

By providing VR services free-of-charge to these heritage sites ITS hopes to

entice individual museums to use ITS for their VR exhibits in exchange for


licensing and distribution rights. Additionally ITS will, in general, be able to

produce higher quality experiences compared to a museum taking on the

project on their own.

Other VR Production Firms

Truth be told, this is an emerging industry, where the technology is being

openly shared and collaborated on, but the individual applications of the

technology are being kept secret. It is likely that other startup VR firms are

exploring applications within the educational market, and specifically within

the virtual experiences market.

However from research that we have been doing most of the models rely on

charging heritage sites for VR services, and not creating a consolidated

database of VR content for educational use. This is the difference between

charging the heritage sites and charging the end-users.

The primary advantage that ITS has against other startups is that we are

hoping to create a consolidated database and platform with quality VR

content by creating that content free of charge for the heritage sites, and

providing educators the tools they need to make teaching the content more

engaging.


Competitive Advantage

As alluded to above ITS has several competitive advantages:

Providing heritage sites free VR services in exchange for licensing, distribution

rights and data intelligence.

Creating a consolidated platform where users don’t need to search for their

content across the internet.

Providing teacher and educator tools to track student engagements.

Low cost subscription based pricing.

Other potential advantages include:

Because ITS is providing free VR services to heritage sites we hope to have

better access to the environments, providing content that would otherwise

not be possible.

As a planned B-Corp, our social mission status can hopefully be leveraged for

outside grants and open additional doors that may otherwise be closed to

traditional for-profit ventures.

By working with WebVR content the VR experiences can be used immediately

without high startup costs within the educational institutes. (i.e. school

systems do not need to invest in expensive VR headsets and computers).


Pricing

Revenue will primarily be derived from subscription based access to the tools and

platforms for educators and consumers.

Standard Annual School Subscription: $25 per enrolled student / ~$10,000 per

school

Includes:

Access to all VR Content

Student Level Reporting

Development of “tracts” for teachers to use inside classroom (teachers can

set-up drip feed to student assignment areas).

Standard Homeschool Subscription: $25 per month per household (up to 6

students)

Includes:

Access to all VR Content

Student Level Reporting

Standard Consumer Subscription: $9.99 per month / $5 Day Pass / $2 Single

Module Day Pass

Includes:

Access to all (or select) VR Content

Other Revenue Generating Activities

Creation of Special Interest Modules

Creation of Custom Made Tracts for State or Regional School Systems

Sponsorships

Advertisements

Sale of Hardware

Royalties / Residuals / Licensing

White Label Platform


Company Culture

Commitment to Employees

A founding principle for ITS is that employees are the most important asset the

company has, and that each employee is irreplaceable. This is especially true in a

startup venture operating with emerging technology. As such it is important for ITS

to ensure that their health, financial wellbeing, education and family are taken care

of. In addition to providing a highly competitive salary, each employee’s benefit

package will include:

75% of Health Insurance Covered for Family

3% Matching 401K

15 Days of No-Questions Asked Paid Time Off | Up to 25 Days after 5 Years

6% of Salary Toward Continuing Education Opportunities (CEC)

o First 3% toward student debt reduction (or if no student debt, amount

is added to CEC).

The time and care that we provide for our employees will allow them to be

dedicated to the company and produce high quality work without having to be

encumbered by circumstances that it are within ITS’s ability to influence.

Furthermore each phase 2 employee will be provided company stock options with a

vesting period of 5 years. Phase 3 & 4 Employs will be provided some type of

performance-based profit sharing bonuses.

Commitment to the Community

In addition to Immersive Technology Studios’ commitment to employees, we are

equally committed to the communities that host the company and our workforce.

Employees will be encouraged to participate in paid volunteer time.

ITS will sponsor student tech organizations and events

ITS will provide specific funding toward events and initiatives that align with

our statement of faith.


Commitment to Faith

Immersive Technology Studios is founded on, and will be managed by, Christian

principals. These principles include commitments to trust and honesty,

dependability and dedication, integrity and quality, understanding and love. Our

goal is to foster an environment and mission that our customers and investors can

believe in.

While we don’t expect every one of our employees to have the same beliefs or

lifestyles as our own, we do expect that they will hold the above values as worth

being known by.

Commitment to Diversity

The unfortunate reality of the technology industry is that there is a major lack of

diversity in the community. This is even truer for Vermont, which is considered one

of the least diverse states in the country. ITS is committed to ensuring that every

candidate interviewed is considered regardless of their race, age, religion, nation-

of-origin or sexual orientation. Every effort will be made during the hiring process

to eliminate questions that could reveal any of the above socio-economic statuses

in the hiring process. Additionally ITS will institute a strict anti-discrimination policy

on day one to ensure that everyone is treated with respect and appreciation.


Appendix

Startup Expenses – (Appendix I)

The below startup expenses are to cover the phase two startup period, which

marks the transition between service oriented and product oriented business

model, and the development of the Lyceum platform. These line-items will cover

a period of two years, at which point Series A funding round will be used to cover

phase three and four expenses.

Overview

Payroll, Benefits & Taxes $1,277,054.04

Capital Equipment $94,210.00

Operating Expenses $219,068.00

TOTAL ANTICIPATED

STARTUP EXPENSES

$1,590,332.04

Seed Round Funding Goal of $1,750,000


Payroll

Position Annual Salary 401 K (Matching)

Healthcare Continuing Education

FICA VT UI Total Compensation Package

CEO $75,000.00 $2,250.00 $16,606.17 $4,125.00 $5,737.50 $750.00 $104,468.67

CTO & Senior Programmer

$85,000.00 $2,550.00 $16,606.17 $4,675.00 $6,502.50 $850.00 $116,183.67

Creative Director $75,000.00 $2,250.00 $16,606.17 $4,125.00 $5,737.50 $750.00 $104,468.67

Director of Educational Programs

$75,000.00 $2,250.00 $16,606.17 $4,125.00 $5,737.50 $750.00 $104,468.67

Senior Programmer $85,000.00 $2,550.00 $16,606.17 $4,675.00 $6,502.50 $850.00 $116,183.67

Jr Programmer $65,000.00 $1,950.00 $16,606.17 $3,575.00 $4,972.50 $650.00 $92,753.67

Annual Payroll $460,000.00 $13,800.00 $99,637.02 $25,300.00 $35,190.00 $4,600.00 $638,527.02

Total Phase 2 Payroll $920,000.00 $27,600.00 $199,274.04 $50,600.00 $70,380.00 $9,200.00 $1,277,054.04


Capital Equipment

Price Units Total

Hardware

Still Cameras (Panono) $2,000.00 1 $2,000.00

DSLR Cameras & Lens $9,000.00 1 $9,000.00

Omni Camera System $6,000.00 1 $6,000.00

Black Magic Camera System $14,000.00 1 $14,000.00

Computers, Monitors, & Peripherals $3,400.00 6 $20,400.00

Internal Server $12,000.00 1 $12,000.00

Data Storage & External Drives $300.00 6 $1,800.00

Other Hardware $13,040.00 1 $13,040.00

Subtotal $78,240.00

VR Headsets

Oculus Rifts $600.00 2 $1,200.00

HTC Vive $800.00 2 $1,600.00

Mobile Phones (Android, IPhone, Etc.) $700.00 3 $2,100.00

Subtotal $4,900.00

Lifetime Software License / Purchase

Kolor - AVP 2 $700.00 2 $1,400.00

Kolor - PTP 2.5 Bundle $700.00 2 $1,400.00

PTGUI - Corporate License $406.00 2 $812.00

VideoStitch Studio 2 $745.00 2 $1,490.00

KRPano $457.00 4 $1,828.00

360 HeroCam Man $225.00 2 $450.00

Other Software $3,690.00 1 $3,690.00

Subtotal $11,070.00

Total Capital Equipment Needs $94,210.00


Operating Expenses

Monthly Annually Phase Two

General Business Exp.

Office Space $2,500.00 $30,000.00 $60,000.00

Legal Services $1,000.00 $12,000.00 $24,000.00

Controller Services / Bookeeping $1,000.00 $12,000.00 $24,000.00

Office / Admin $900.00 $10,800.00 $21,600.00

BOP Insurance $416.67 $5,000.00 $10,000.00

Travel $1,423.50 $17,082.00 $34,164.00

Cell Phones $440.00 $5,280.00 $10,560.00

Subtotal $7,680.17 $92,162.00 $184,324.00

Server & Hosting Expenses

AWS - S3 $29.00 $348.00 $696.00

AWS - EC2 $48.00 $576.00 $1,152.00

AWS - EBS $50.00 $600.00 $1,200.00

Subtotal $127.00 $1,524.00 $3,048.00

Monthly Software Licenses

Adobe CC $414.00 $4,968.00 $9,936.00

Microsoft Office $75.00 $900.00 $1,800.00

TeamWork - Projects $149.00 $1,788.00 $3,576.00

TeamWork - Desks $120.00 $1,440.00 $2,880.00

GitHub $34.00 $408.00 $816.00

Slack - Standard $42.00 $504.00 $1,008.00

Zapier - Business $20.00 $240.00 $480.00

Other Subscriptions $416.67 $5,000.00 $10,000.00

GrassHopper $50.00 $600.00 $1,200.00

Subtotal $1,320.67 $15,848.00 $31,696.00

Total Operating Expenses $9,127.83 $109,534.00 $219,068.00


Revenue Projections (Appendix II)

Based on Goldman Sachs market analysis report, and goal of 25% Market

Segment Penetration in 3 Years, 65% in 6 Years.

2019 2020 2021 2022 2023 2024 2025

$2,700,000.00$7,000,000.00

$12,900,000.00

$20,400,000.00

$29,500,000.00

$40,200,000.00

$56,250,000.00

Year Revenue Expectations Notes

2016 Seed Funding Round

2017 Start of Phase 2 – Jan 2017 (or earlier)

2018 Series A Funding Round Start – Jan 2018

Start of Phase 3 – June 2018 Lyceum Alpha Release – June 2018

2019 $2,700,000

Lyceum Beta Release – January 2019 Start of Phase 4 – June 2019

Lyceum Public Launch – June 2019

2020 $7,000,000 First Full Year of Lyceum on Market

2021 $12,900,000

2022 $20,400,000 8% of Market Goal Reached

2023 $29,500,000

2024 $40,200,000

2025 $56,250,000 15% of Market Goal Reached

$168,950,000.00 10 Year Revenue Projections


Milestones (Appendix III)

Seed Funding Round Completed

Phase Two Start

o ITS Team Finalized / Personnel Hired

o Collect Working Content Created For Dev. Use.

Use Content From Phase One

Generate Missing Content

o Apply for SBIR Grant (Dec. 2016)

Lyceum LMS Core Features Completed

o Basic Content Database Structuring Completed

o User Relationship Structure Completed

o Basic Tracking Completed

o Basic Reporting Completed

o Develop Basic User Interface

First Content Module Completed

o 3-4 VR Tours

o 3-4 360° Videos

o 1-2 Interactive VR Experiences

o Integration of Outside Content

o First Content Module Integrated Into Lyceum LMS

Test Cell Established

o Identify 2-3 Classroom Environments with different demographics

o Segment Classrooms into user groups

o Provide & Assist Teachers in administrating assignments

o Administer Assignments

o Receive & Analyze results

o Collect User Feedback

o Write 1st Academic Research Paper

Combine Results into Actionable funding Package for Series A Funding Round

Complete Series A funding Round

Start Phase 3

Build Team

o Build Team As Needed


Start Content Creation

o Develop 9 – 12 Module Tracts

o 4 Content Teams Developing 2 – 3 Modules Each

o Have 9-12 Full Modules Ready for Launch of Phase 4

Refine LMS Platform

o Increase User Tracking and Reporting Functions

o Develop Intuitive UI

o Migrate from Development Servers to Production Ready Environment

Build Mobile App

NEED MORE INFO


Market analysis (Appendix IV)

U.S. Market Value Table

Based on $25 Annual Student Subscription

U.S. Segmentations

Student Population

Size

Schools In US

Avg. School

Size

Average Annual Cost Per School

Total Market Value

5 - 8 Grade (Public)

14,841,000

98,000

151 $3,785.97 $371,025,000.00

9 - 12 Grade (Public & Private)

16,067,000

37,100

433 $10,826.82 $401,675,000.00

College / University

17,487,475

4,140

4,224 $105,600.69 $437,186,875.00

Total Potential Market Size

48,395,475

139,240

$1,209,886,875.00


Market Segmentation Table

Based on Extrapolation of Goldman Sachs Market Segmentation Estimates.

Year GS User Market Adopters Estimate

% of US Student Population

GS User Market Revenue

Per User Total Spend

ITS User % Target Based on GS Estimates

ITS User Target ITS Annual Revenue Targets

Based on $25 Subscription.

2016 600,000.00 1.2% $3,000,000.00 $5.00 0 - $0.00

2017 2,200,000.00 4.4% $37,714,285.71 $17.14 0 - $0.00

2018 3,800,000.00 7.6% $97,714,285.71 $25.71 0 - $0.00

2019 5,400,000.00 10.8% $185,142,857.14 $34.29 2% 108,000.00 $2,700,000.00

2020 7,000,000.00 14.0% $300,000,000.00 $42.86 4% 280,000.00 $7,000,000.00

2021 8,600,000.00 17.2% $375,123,809.52 $43.62 6% 516,000.00 $12,900,000.00

2022 10,200,000.00 20.4% $452,685,714.29 $44.38 8% 816,000.00 $20,400,000.00

2023 11,800,000.00 23.6% $532,685,714.29 $45.14 10% 1,180,000.00 $29,500,000.00

2024 13,400,000.00 26.8% $615,123,809.52 $45.90 12% 1,608,000.00 $40,200,000.00

2025 15,000,000.00 30.0% $700,000,000.00 $46.67 15% 2,250,000.00 $56,250,000.00

Red Values provided by Goldman Sachs 2016 VR Market Report on Education Sector.

http://www.goldmansachs.com/our-thinking/pages/technology-driving-innovation-folder/virtual-and-augmented-reality/report.pdf

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