Brilliant Points, Inc. (Brilliant Points, or the Company), is an innovative software and services provider that uses software designs and configurations that transfer information from users directly to computers. This includes cutting-edge applications of laser, optic, and video technologies. The Company currently holds a U.S. patent for optical control of computers. computer-based presentations) and has applied to for other promising patents. There have been foreign patent applications filed and they are still pending.
The Company’s mission, according to its website, is to discover and create intellectual property, protect intellectual property through international Patent Applications, aggressively defend patents against infringement, and then enter into licensing agreements for optical, laser and video components manufacturers and vendors. 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. It believes it has developed technologies that are ready for the market. The Company has the opportunity to secure marketable patentable technologies and then to achieve licensing agreements with current solution providers. This will allow it to expand its product line and offer solutions for common problems.
The first patented technology to be created by Brilliant Points, U.S. Patent #6,275,214 – Computer Presentation System and Method With Optical Tracking of Wireless Pointer, utilizes software to enable full computer control via common laser-pointing devices and drivers that give the high-end laser pointing device the functionality of an integrated mouse and keyboard. This makes presentations much more user-friendly, expands the range of possibilities for presenters, and opens up new application areas for gaming and entertainment. 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 is big and growing fast. 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 forecast that this market will reach 4.5million units and $10 billion revenue in four years. This market is also of interest to PC manufacturers, as evidenced by recent announcements from Hewlett-Packard (and Dell) that they plan to begin shipments business projector systems. InFocus a huge business projector manufacturer has set a target to reach 4% attachment rate in its laptop projectors. This device is expected to be a huge hit in the home market. InFocus forecasts that its projector system shipments for home entertainment systems could exceed 2.5 million units by next year. See:
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 hopes to break into the presentation systems market through aggressive marketing and licensing of its technology. These include sales of upgrade kits (consisting in Webcam, pointer, Company software and Company software) for existing projector owners. Also, sales/licensing Brilliant Points SDK Tools that enable other companies and companies to develop drivers and applications based on the patented Brilliant Points technology.
The Company plans to first focus on retrofitting existing owners of presentation hardware using ‘#8220’ upgrades.
Brilliant Points hopes that Brilliant Points will create the latent demand to get presentation hardware manufacturers to include Brilliant Points software, laser pointers and other hardware to replace the limited functionality of a remote control or other controlling device. Brilliant Points could also be able to offer software solutions for other industries such as gaming, home entertainment and webcams. These large markets are growing rapidly and could benefit greatly from the software solutions.
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. Multi-user interfaces can be created using complex pointer technology. Each user will have a unique, secure/complex device. Complex/secure pointing technology makes it possible to present interactive presentations where audience members have unique secure/complex pointing devices. It is also useful in military circles. Stabilized pointing makes it easy for an average user (or anyone else) to select menu items and click buttons during a presentation. It also helps reduce distractions caused by finger or hand movements, which can cause the pointer on screen to jump around.
Each of these development areas ((1) secure pointers; (2) complex and (3) stabilised pointers) opens up new sales channels for laser pointers industry while simultaneously creating additional revenue streams. These technologies will likely be of great interest to current laser pointer makers. It will result in a shift in the market away from a commodity-based market to one that focuses on products customized to specific needs and applications. Brilliant Points will also benefit greatly. Although the laser-pointing device market is currently in decline it opens up revenue possibilities for Brilliant Points. The companies that make laser pointers are often very large and have a broad product range. The Company might be able expand its licensing revenue by using the Brilliant Points presentation product. The Brilliant Points presentation system will enhance the functionality of laser pointers. Management believes this will have positive effects on the market. They will be able to offer better features and more competition, thereby moving away from a commodity market and increasing their sales.
Brilliant Points is determined to aggressively pursue licensing arrangements with large manufacturers that are already in the market. Also, it will defend its patents against infringements by competitors. The Company will pursue this strategy to reduce costs and generate significant income for its owners.
Brilliant Points is an actual start-up. Because of this, it does not have historical financials. And, because it is following a course, it makes it very difficult to predict future revenue.
For the purpose of this analysis, however, the Company has made basic assumptions that will show licensing revenues based upon licensing a small proportion of the business presentations system industry. According to these assumptions, the company expects to have significant revenues in its first 18 months of operations, based on achieving licensing of approximately one and one half percent of the forecast business projector sales and/or sales of 60,000 presentation system “upgrade†kits to existing presentation installations in the market today. 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 highly optimistic estimates might prove to be inaccurate if the expected penetration of (1) entertainment, (2) gaming, (3) military and (4) pointer maker markets occurs.
Brilliant Points is looking for major capital investment and a line to credit to recruit critical talent, launch aggressive marketing, license sales and licensing of Brilliant Points’ technology. Brilliant Points expects that there will be an investor liquidity event in the next five years. It could include (1) IPO, (2) acquisition, or (3) Full Intellectual Property purchases by larger companies in the space.
1.1 Objectives
First three-months
- Recruitment of sales and marketing directors.
- Recruitment of software and hardware developers
- Do you need office space?
- Software/hardware design and implementation.
- Improve your website.
- Design marketing/sales campaigns.
First six months:
- Hardware for simple pointer release-candidate-1 (Multiple colors and/or dots.)
- Driver software release-candidate-1 for the Win platform(s).
- Beta-1 LaserBoard(tm) SDK.
- Preliminary licensing negotiations with manufacturers/resellers
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- Projectors
- Webcams
- Pointers
- Manufacturers of computers
- OS
- Advertising campaigns can be started (under the direction of a marketing director).
- Website enhancement to allow for direct downloads and orders.
- Kits for ‘#8220’Upgrades to In-Place Business Projector Owners (e.g. boardrooms, conference rooms, lecture circuit)
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- Webcam
- Simple pointer
- Control application for simple operation
First year:
- Market and develop multi-button optical pointser. Optional features include an external keypad and headset.
- Alpha-1 hardware/software is for enhanced pointer. Display head using DLP and other technologies.
- Negotiating first licensing deals with pointer, projector, and Webcam manufacturers/resellers.
- Continue R&D investigation of related technology areas.
- Continue your pursuit of IP protection via trademark, copyright, and patent.
- Shipping/Licensing simple tiper, simple driver and enhanced driver
- 10,000 “Upgrade” kits shipped.
Eighteen months:
- With options, develop and market a secure pointer.
- Develop a gaming interface SDK
- Close first licensing deals.
- Shipping of 50k #8220Upgrade#8221 kits.
- Cash flow positive
Second year:
- At least 1.5% penetration of the business projector market licensing.
- Achieve 10% licensing penetration of pointer market.
- An impressive 60,000 “/Upgrade kits were shipped last year.
- Preliminary licensing negotiations have been initiated with gaming device manufacturers.
- Continue R&D in related technology areas.
- Continue your pursuit of IP protection via trademark, copyright, and patent.
- Profitable.
3rd year
- At least 2.5% penetration of the business projector market licensing.
- Achieve 20% licensing penetration of pointer market.
- 90,000 “Upgrade” kits shipped in year.
- Continue R&D into related technology areas.
- Keep pursuing IP protection via patent, trademark, or copyright.
Fourth Year
- Achieve 4% licensing penetration of business projector market.
- Reach 40% penetration of the pointer market licensing.
- Closest to first licensing deals with gaming device manufacturer
- 150,000 “
Shipped in the year “Upgrade” kits
Ongoing:
- Seek out and apply for additional licensing.
- For each market, aim to increase licensing penetration by 50% each year.
- Make software and hardware simple to use, safe, “:idiot-resistant ”
- Make Brilliant Points a household name so that when IP protection begins to expire, people still look first to Brilliant Points for laser and imaging technology solutions.
- Continue R&D investigations in related technology areas.
- Continue pursuit of IP Protection via Patent, Trademark, and Copyright.
Investor Exit Strategy
- Go public around 5th year.
-
Aquired by another organization
- Input device manufacturer/reseller
- Projector manufacturer/reseller
- OS manufacturer/reseller
- PC manufacturer
- Laser pointer manufacturer/reseller
- Webcam manufacturer/reseller
- Exclusive full-rights licenses to dedicated areas with revenue stream guaranteed for duration of patent.
1.2 Mission
Brilliant Points is a company that uses innovative laser, optical and video technologies to transfer information from users to computers.
Our mission is define and create new applications. We protect them so they can be better assured of their quality.
Our applications will offer users ‘#8220cool’ yet cutting-edge technologies that are easy to use and durable in operation.
We will accomplish this while providing obvious superior quality to our customers, excellent customer service, and creating a mentally stimulating and enjoyable work environment for our employees.
1.3 Keys to Success
- Patented technology is a substantial improvement to existing presentation methods that provides 15 to 17 year of monopoly-like development.
- Protection of IP by patents, copyright and legal enforcement.
- To increase visibility among potential buyers and/or obtainrs, rapid development, marketing, as well as penetration of market.
- Licensing of technology to others, rather than being sole-source of hardware/software.