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August 2008
Kim Blinkhorn
New World Flooring
Kim Blinkhorn 502-741-0545 cell k.blinkhorn@yahoo.com Business Proposal Build an efficient, high yield engineered flooring plant in south central Kentucky. This area of KY has some of the best hardwood forest in the world because of its Limestone base. Products The plant will produce 3 products. European Wide Plank Flooring, which will be sold to European Importers. Domestic Plank Flooring, which will be sold to U.S. distributors. Semi-Finished top layer veneers which will be sold to flooring manufacturers in Asia and Europe Market Conditions There are 3 converging market trends that make now the time to invest • Higher price product coming out of China • In 2006 the Chinese Government reduced export incentives on hardwood flooring • In addition the Chinese are rationing their energy which requires the flooring plants to shut down for a number of hours each day • Increase in raw material cost for the Europeans • Europeans import most of their raw materials and the increase in the cost of oil has significantly added to their production expense • New Saw Technology • New technology has allowed for the creation of thinner saw blades. • Thinner blades mean that more top layers can be cut from the same 1 inch board resulting in 25 to 50% improvement in yield Investment Opportunity Total funding requirements of $3 million. $500k from private investors, currently have $375k in escrow and are looking for an additional $125k. $2.5 m debt, currently negotiating with some local governments for favorable loan terms as incentive for job creation Management Kim Blinkhorn has 25 years of varied business experience in accounting, finance, planning and operations. Richard Blinkhorn has 30 years experience in the international trade of hardwood lumber products including all aspects of running a production plant.  Verto Medical Solutions
Seth Burgett, CEO Phone: 314-633-1801 Email: SethBurgett@VertoMedical.com www.VertoMedical.com Business Summary: We are developing technology to digitally scan ears, enabling the sale of custom fit earbuds used in iPodsTM and cell phone headsets. We plan to sell custom rubber eartips that uniquely fit each ear and attach to Bose, Motorola, Apple and Sony products creating a custom fit with proven electronics. FDA clearance not is required for our custom earbuds. A Series A round of $1.2 Million is being raised to hire a chief technical officer, develop initial scanning kiosks and test the marketing strategy. Customer Problem: Last year, up to 450 million consumers worldwide found factory issue earbuds were not comfortable and did not provide the sound quality they desire. The iPod and cell phone market is expanding in excess of 250% year over year since 2001. Cell phone headset market is expected to expand in the next few years due to state laws that are sweeping across the U.S. requiring hands free cell phone use in our automobiles. Business Model: We will sell our custom earbud tips through a scanning kiosk placed in sales channels such as Best Buy, AT&T Wireless and Apple Stores. This is attractive to retail channels since we increase their revenue per square foot 2-6x their current average. The manufacture of the custom eartip will be outsourced to existing hearing aid manufacturers. Management: CEO, Seth Burgett has held an equity stake in two prior startups, the first completed an acquisition and the second an IPO. Mr. Burgett has a background in minimally invasive surgical devices in neurology, cardiology and ophthalmology and has led teams internationally in Europe and Asia successfully integrating surgical devices with Siemens and Phillips Medical systems in Europe. Most recently he was responsible for R&D at Bausch and Lomb in St. Louis, successfully reorganizing the 30 member group to a Core Team Structure earning Bausch and Lomb’s Focus on Excellence Award in 2007. Verto has recruited a seasoned team of executives and scientists with credentials from MIT, Stanford, Harvard, Yale, WestPoint and CalPolytech with a track record of success to drive this product to market. Investment Opportunity: Potential for a 20x return is projected for our Series A investors who participate in our $1.2 Million Series A round. The company expects to exceed $50 Million in revenue within 5 years of generating revenue and achieve profitability in 3 years. Verto has identified at least 10 exit candidates through acquisition. Accredited investors should request a Private Placement Memorandum. Financials* 2008 2009 2010 2011 2012 2013 2014 Revenues $ - $ - $ 4,878 $ 9,757 $ 19,513 $ 39,027 $ 58,540 Expenditures $ 506 $ 2,817 $ 9,700 $ 15,849 $ 22,183 $ 32,971 $ 44,907 Net $ (506) $ (2,817) $ (4,822) $ (6,092) $ (2,669) $ 6,056 $ 13,633 *In thousands (000) July 2008
Robert Jones
Mankind Diet and Health
Phone: 513-344-0088
Email: RTJ@MankindDiet.com Funding: Mankind Diet and Health is seeking $100K for marketing and nationwide launch of our weight loss programs and products.  Jeff Hutter
QMG Philly Partners, LLC
Phone: 502-797-9111 Summary
June 2008
Great Northern Building Products, LLC Brief History Strategic Vision Target companies are connected by three factors: 1) they are selling specialized products to wholesalers in the roofing, vinyl siding and/or gutter distribution channels; 2) our sales reps can sell the acquired products to our existing customers; and 3) we can leverage our operational expertise to increase gross and net margins. We have successfully introduced products from the acquired companies to our existing customers, and have sold our current products to the customer bases of the companies we have purchased. In addition, our outside reps have generated additional sales by introducing products to contractors in a grassroots, pull-through strategy. The seller’s salary and the administrative overhead are typically the largest expense line items in our target companies. Once these costs are removed, EBITDA can increase from 5% to 15% in less then 12 months. We add additional value by improving the operations and cross selling our products to the newly acquired customers. Capital Requirements
Straight2yourdoor May 2008
Josh Beatty
Funding: GreenerWay is seeking to complete a $500k investment round for a pilot test of the system and hardware devices. One Line Pitch: GreenerWay is an innovative energy monitoring, control and management solution helping homeowners conserve energy.
Business Summary: GreenerWay was founded over the realization of how little we know about our household energy use and how critical this knowledge is to effectively conserve energy. GreenerWay is the first advanced energy monitoring and control system for homes, providing a blueprint of energy consumption for individual circuits and outlets, allowing users to actively manage and conserve energy while easing the burden of their rising utility bills. Management: Graduating from the honors division of Indiana University with degrees in Marketing and Entrepreneurship, Josh has a firm base in business and marketing which are combined with a passion for protecting the environment and a professional background in developing market leading business strategies. Josh has formed a team of experienced board members and advisors, and has several candidates under review for VP, Sales. Customer Problem: Nearly three-quarters of homeowners are worried that home energy costs will strain their finances over the next year and a whopping 90 percent feel they have limited or no control over their home energy costs.
Product/Services: GreenerWay is a simple product that can make a world of difference – saving money while helping the planet. With the patent pending energy saving system, homeowners can gain the power to control and drastically reduce their monthly electric bill and the amount of greenhouse gases released into the air. The result is a typical savings of 10 to 20 percent for both homes and businesses.
Target Market: The energy saving panel addresses the rapidly growing green housing market and will be marketed towards new home construction as a way to achieve LEED credit points as well as help builders market their homes as energy smart. The mini panel and outlet devices target the existing home market of high income, green conscious consumers along with utilities interested in demand-side management.
Sales/Marketing Strategy: GreenerWay will be marketed as the premier smart home solution for controlling and reducing energy consumption and will be introduced at the GreenBuild tradeshow in November. Sales associates will sell directly to builders and electricians that are members of the U.S. Green Building Council. GreenerWay is planning for a summer 2009 widespread consumer launch of the energy saving system, focusing on the current homeowner for the mini panel and outlet devices.
Business Model: GreenerWay will seek revenue from sales of the hardware devices, which include the energy saving panel, mini panel and outlet devices. GreenerWay will also charge an annual fee for software membership access. Competitors: The home energy monitoring market is in its relative infancy. There are only a few energy monitoring companies such as The Energy Detective and Cent-A-Meter. None of the current devices on the market measure electricity on a per circuit basis, incorporate a computer interface or allow for power control capabilities. Home automation companies, such as iControl and Homeseer, focus only on power control, security and entertainment features. Competitive Advantage: The software is at the core of the business, making energy information easily accessible and meaningful. Patent pending on the energy saving system covers monitoring and controlling for a plurality of circuits. IStrut, OrthoVenture LLC
The Crutch Market
April 2008
Dean A. Walker
CFO
Memory Lanes Family Fun Center
6400 Crestwood Station Highway 146
Crestwood, KY 40014
Phone: 502-767-6162
The Memory Lanes Family Fun Center will have the following:
o 40 State of the art bowling lanes with video, sound and light enhancements
o The Memory Lanes Family Restaurant and Sports Lounge
o A 4000 square foot banquet and events center with catering and alcohol service
o One of Kentucky’s largest arcade/game rooms; affordable, with ticket redemption
o An authentic 50’s style soda fountain and snack bar
o Versatile meeting and party rooms (full A/V and Wi-Fi)
o Unique outdoor recreation area with volleyball, horseshoes, corn hole, and bocce ball
Why: Bowling is popular with all ages, 20% of the population bowled last year. Oldham county has very few entertainment venues and restaurants with the highest per capita income and largest percentage of teenagers in the state. The fun center is a 15-minute drive for 100K people, and within walking distance for 4 schools.
How: Private investment of 2 million+ with bank financing for 6.5 million project total. The main costs are the building/land purchase, equipment, and building renovation. Investment options are flexible and negotiable; cash exists for exit in 36 months.
When: Construction plans are in Frankfort and demolition of building interior is complete. The complete project time line is 4-6 months from funding to opening.
Who:
o Joe Gatto, President
o Mike Sammons, COO
o Margaret Gant, Secretary
o Dean Walker, CFO
o Jim Tutt, Fanancial Advisor
Other: Bowling centers seldom fail and survive in poor economic climates, restaurants attached to an activity center have a 60% greater chance fro success, on-site owners/managers increase revenues on average by 35%, management team’s shares vest only after 5 years of continuous service.
Douglas A. Clemons
Shred Kiosk-Fighting Identity Theft
Phone: 513-618-2654
dac@ShredKiosk.com
www.shredkiosk.com
Pay-to-Shred Consumer Kiosks are developed to be placed into supermarkets, copy centers and banks. The coin fed system Kiosk allows the consumer a time allotment of sixty seconds of shredding time per dollar on a commercial grade shredder. This will allow consumers to shred sensitive documents, credit cards, compact dist and floppy disks. I major retailer has agreed to install the Shred Kiosk.
Identity Theft ($52 billion dollars) is the fastest growing crime in the United States.
Management:
Douglas A. Clemons, Founder and President, has over fifteen years (15) experience in the information management industry. Mr. Clemons have successfully acquired, developed and sold businesses in this industry. Mr. Clemons is a 1986 graduate of Bellarmine University.
Capital:
The Company needs an additional $200k of equity. This money will be used for additional machines, marketing and working capital.
March 2008
Zero Gallon Per Flush, LLC Denis Oudard, President & CEO E-mail: doudard@attglobal.net
Ogpf has obtained the exclusive importing rights to a patented technology for waterless urinals manufactured in Mexico in one of the most modern ceramic plant in the world. These urinals deliver 35% savings to the facility’s owner the first year and 40% over their lifetime. 0gpf enters the multi billion dollar construction industry in a segment currently growing at 20% per year. (Green and LEED certified buildings) To maximize profits, 0gpf will set-up an efficient distribution system that will minimize inventory. This is a proven product, in Mexico the manufacturer has achieved several million dollars in sales and gained 60% market share in its segment. Customers include Fortune 50 companies such as Ford, Coca-Cola and Wal-Mart as well as prestigious institutions such as the Mexican Senate.
0gpf is directed by Denis Oudard, the founder and sole owner. Mr. Oudard holds an MBA from the University of Chicago, brings 30+ year business experience, including 20 doing business in Latin America and success in setting up distribution networks for construction material.
Several companies (Sloan, Falcon) already compete in this market segment. They use expensive chemical sealants that wear away in a few weeks and require replacement proportionally to the use of the urinals. The 0gpf urinals use a latex sleeve that successfully controls odors and only needs replaced once a year. The 0gpf urinals bring better value to both the installers and the owners by simplifying the installation (no need to bring water), and by reducing maintenance, delivering the lowest cost of ownership of any alternatives.
0gfp will grow quickly and have sales of $150M in ten years. To meet its objectives, 0gpf needs $300,000 in financing. 0gpf will achieve profitability and positive cashflow after a year and a half of operations as inventory stabilizes at $130K.
Exit strategies include going public or being acquired after year three. Annualized ROI for the first 5 years is estimated at 75%. ROE is projected to reach 150%.
The finance will be used to 1) hire a sales manager, 2) purchase inventory, 3) develop the brand, 4) participate in shows and exhibits and 5) invest in new products.
Jeremy Delk
Delk & Associates
Cell:(516) 351-0208
Email: Jeremy.Delk@Delkinc.com
Corporate Summary:
Delk and Associates Inc. is a third generation family owned and operated business and was incorporated in 2001. Prior to the incorporation the family owned company has specialized in private real estate development, general contracting, and building materials distribution for the last 40 years all across the country. The Lexington, KY office was opened shortly after incorporation in 2001 solely to distribute the high quality Vinyl fence products manufactured by CertainTeed. To take advantage of the world class Equestrian industry in the Bluegrass state we have several of the most prominent horse farms as clients, both present and past.
CurrentChallenge/Opportunity:
Our company has a strong local relationship with fence contractors, pool companies, and landscaping companies. Our largest client is probably our most valued asset. We have a central office in which we distribute directly to over 140 locations across the country. In the last 3 years business has steadily grown over 200% year over year and we still have only captured only 53 offices purchasing from us! That’s only 38% of our captive market! Our customer did over a billion dollars in sales in 2007 across the home improvement/remodeling industry. Our void is exposure w/ sales reps visiting locations and educating sales staff. We need funding to expand and hire new sales staffs to get reps out in the field, develop and produce product displays for each center. Our company sales through this one client alone are where the true value of our distribution business is. We have only begun to scrape the surface. The average fence sale is between $3,000 - $5,000. Let’s assume 1 fence sale per month for each office; on the low end simple numbers would be each center should do $36,000.00 in sales annually multiplied by the 141 locations which would result in a little more then 5 million dollars in sales. With us operating at a 15%-20% gross margin we will have an additional conservative GP of 750k. (This number of course not including any local KY distribution sales.)
Offering:
Option A would be a simple cash investment of $350,000.00 which will earn an agreed upon interest rate with principal payments made over a 5 year term. (see proposed schedule below) this investment would be paid back obviously by increased sales figures but secured w/ our commercial property in Nicholasville (value 850k -450k mortgage – net equity of around 400k)
Example:
Option B would be a stock purchase becoming a silent equity partner. $2 million dollar would acquire 49% of Delk & Associates. These funds will be appropriated as follows $450,000 pay down existing mortgage debt $350,000 new market exposure (same injection as option A) and the remainder 1.2 million to principals as stock sale. Investor will have the 425k equity in real estate and roughly 100k in equipment. Assuming even the low sales assumptions of the 5 million investor is out in less then 4 years not including any local profits! Future passive income of between 350-700k annually.
February 2008
Cumberland Natural Gas Utility Company
Tom Shirey
Phone: 903.454.4000
Cell Phone: 903.268.5122
$650,000 Tier 1 Initial/ Capitalization:
CNGU will issue and sell 20,000 shares of seven percent (7%) accumulating convertible preferred stock with a par value of $32.50 per share sold at par with a conversation ratio of one (1.0).
Purpose:
To recapitalize two existing companies that are currently engaged in providing natural gas service to customers and pay development cost in connection with extending service 14 miles to a large industrial user, a town and industrial park. This expansion would result in a seven hundred percent (700%) gross sales increase.
The following return on investment analysis is presented assuming a Tier 1 Investor invests $650,000 in Tier 1 preferred stock on April 1, 2008 and sells on December 2009 or about when Tier 2 Stock is sold. Events expected to occur by April 2009 are expected to cause the stock value to be $40.00 per share.
Investors in the Natural Gas Production Business:
An investor in the gas production business would have an added incentive to invest in this Investment Opportunity by affiliation with a direct purchaser and user of the gas. Even if a natural gas producer was not able to inject natural gas into the Texas Eastern Pipeline, a natural gas producer that is injecting into some other pipeline could swap natural gas on the Texas Eastern line.
Summary:
Although there are no assurances of the performance of any direct participation investment, historically, utility investments have generally proven to be a good defensive and recession resultant investment. Due to the regulated environment of a utility investment that creates “upside” resistance, the regulated environment also provides “down side“ support. The Kentucky Public Service Commission provides protection from competitors and a rate setting administrative procedure that allows for fluctuating gas cost, operating cost, and a return on investment and/or net profit margin.
Additionally, because Cumberland Natural Gas Utility Company is an emerging south central Kentucky area utility, there is a greater potential for capital appreciation of the stock investment as compared to investment in more established utilities.
Additional potential income could also be realized by using the same pipeline to provide infrastructure for area natural gas producers to sell natural gas into the Texas Eastern Pipeline. This is a significant opportunity for income.
 Dynastrosi Laboratories, Inc.
2413 Nashville Rd., Suite 119, B13
Bowling Green, Kentucky 42101
Telephone: 270-901-3582
E-mail: info@dynastrosi.com
URL: www.dynastrosi.com
Advanced composite materials (e.g., carbon, e-glass, and aramid fibers) are well recognized for their superior performance as manufacturing materials (i.e., high strength, lightweight, and corrosion resistant). Despite these desirable qualities, they are considered too expensive for all but the highest valued products. Time-to-market is comparatively slow, product design improvements are expensive, and the ability to achieve the volumes needed to realize normal production economies of scale is difficult to impossible. Patented Solution By eliminating traditional composite tooling, Dynastrosi’s patented production technology lowers production costs to a level where these high performance materials can be used to affordably produce a broad-range of products, and because we replace tool-making with a digitally-driven system, time-to-market is slashed, market entry risk is reduced, and volume manufacturing is possible. Market Size and Trends Usage of advanced composite materials by the aerospace and defense industries is increasing at a significant pace. While it is difficult to estimate the total value of parts fabricated from advanced composite materials, we can measure industry trends by examining the use of raw materials like carbon fiber. Toray Industries ( Sales and Service Strategy Dynastrosi currently offers product design and engineering services to clients in the wind energy, aerospace, defense, and motor sports industries. By leveraging its digital-direct advanced composites (D-DAC™) production technology, the Company affords its clients first-to-market and reduced production cost opportunities. The Company also strategically targets product sectors that can best utilize its innovative, new multi-functional structures technology. The Company’s professional design/engineering services, prototyping, manufacturing and production technology (IP licensing) services are marketed through tradeshow exhibitions, conference networking, public relations campaigns, Internet advertising, and direct sales efforts. Management Team The management team is comprised of six seasoned executives, each of whom is a highly skilled manager with a strong technical background. By practicing the tenants of its “Idea Factory” management model, the management team has demonstrated a “get it done” capability, achieving near-impossible goals. The Board of Directors consists of four members (two management and two outside members): Ronald Jones, Chairman and Steve Edwards, Corporate Secretary also serve as corporate officers; while Jim Fugitte, CEO of Wind Energy Corp. ( Financial Highlights While first established in November 2004 as a limited liability company, the Company did not formalize its operations until Jan. 2006. Dynastrosi reported a loss of $402,370 on $9,039 in sales for 2006. 2007 revenues for the 1st 9 months ending were $669,605 reporting a net loss of $205,690. However, breakeven was achieved in May and the Company continues to be profitable. Dynastrosi had sales of $458,500 for the Q4 with earnings of $105,610. The Company finished 2007 with a net loss of $85,656. Relying solely upon current contracts and proposals, the Company expects to outperform its revenue and earnings targets for 2008.
Funding: Seeking 2nd Round: $2M Use of Proceeds: - Expand engineering and prototyping lab facilities - Hire additional scientific, engineering and sales staff - Purchase capital equipment for product development, prototyping, and manufacturing Revenue Forecast: - 2008: $3.8M - 2009: $10.6M - 2010: $19.3M - 2011: $33.3M Competitive Advantage: - Domain Expertise: Wind Energy, Aerospace, Motor Sports - Defensible Patents, Tradecraft - First-to-Market Enabling Technology within the Composite Built Products Field - Idea Factory Culture: Invention, Innovation, Customer Solutions
 LPD, LLC
Scott Ryan, President, founder
Keith Johnson, V.P. of legal & business
Tom Kruer, V.P. of Product Development
300 Buttermilk Pike, Suite 338
Ft. Mitchell, KY 41017
email: scottryan@lpdllc.com
email: keithjohnson@lpdllc.com
LPD, LLC is an IP firm specializing in advanced manufacturing technology pertaining to construction and industry as a whole. We are a newly formed corporation, created in April 2007. LPD has narrowed its focus on the structural light pole industry as its birth into the market place. LPD has invented a way to manufacture light poles with 50% the material currently required using traditional manufacturing techniques. This is truly a “start-up” company with all the advantages associated with this term. As LPD’s market research indicates, it has chosen wisely its first product to introduce into the market place. LPD is not a service provider, a manufacturer, or a sales firm. LPD is an IP firm. It generates ideas, makes them market ready, introduces them to the market and allows the market to work its wonders. LPD’s first product will be the “light pole design”. This is a “one of a kind” idea not a one of many idea. This concept injects several competitive advantages into a market that has lagged in innovation for decades. LPD uses advanced manufacturing technology to reduce cost, make the product a “green” product, eliminate storage and inventory issues, solves security issues with regards to theft, and it is a domestically produced product. The light pole market is a several billion-dollar market. There are currently 60 million light poles on public roadways. The average life span of a pole is 30 years, that is a 2 million pole market annually just in infrastructure maintenance. This does not include parking lots and other public areas. At an average price of $600 per pole, that is a $1.2 billion market just in infrastructure maintenance. LPD is currently concluding phase 1 of development. At the end of phase 1 LPD will have a prototype mounted at an undisclosed location, secured our intellectual property, completed our market research, and have initial structural analysis complete. At the end of Phase 2 the product will be ready to enter the market. LPD’s projected date of completing phase 2 is December 2008. The projected funds needed to complete phase 2 is $1 million. Private funding will total $600,000 and LPD is eligible for $400,000 in gap funding through KSTC. As LPD’s share of the pole market increases it will be introducing other products into the pipeline, which it intends to bootstrap, using profits from its light pole product.
January 2008
 Skyway USAMick Whitton, VP of Sales
Chip Hayward, Manager of Dealer Services
George Dick, Chief Executive Officer
Gerald Tyrrell, Chief Financial Officer
Phone: 502-240-0056
www.skywayusa.com
http://skyfinder.skywayusa.com
SkyWay USA has developed an Internet service which will provide high speed, broadband to lesser populated rural markets which cannot now be economically served by upgraded landlines (telecoms or cable). SkyWay’s hybrid system, which uses a combination of landlines with satellite delivery, has major installation and monthly service cost advantages over current two way satellite broadband systems. The start-up operation with over 700 subscribers has helped to validate the capabilities of the system and demonstrated positive customer response.
The Business: SkyWay USA has developed a high speed Internet service which provides Broadband access to rural markets across the entire United States. Skyway focuses on providing service to those customers that do not have access to cable or DSL Internet service. SkyWay's hybrid system, which uses traditional landlines with Satellite delivery, has major financial and practical advantages over current satellite broadband systems.
The SkyWay system has been proven cost effective and reliable in operation and will exploit its competitive advantage of being able to offer lower cost Broadband service to a large rural market for which -the only current alternatives are the more expensive two way satellite systems. SkyWay’s operating system is in place and making a fast start, generating positive cash flow before the end of the first year and rapid earnings growth even with a relatively small share of the available market. It is anticipated this aggressive growth will attract industry attention and make the Company a potential acquisition candidate at the high value per subscriber which is currently being paid for such properties. SkyWay has raised $2 million primarily from local private investors for faster expansion and to capture market share.
The Technology: SkyWay combines conventional landline request and satellite download technology to provide broadband service to rural areas (which is something that no other satellite service currently has). The company has exclusive rights in North America to the new “plug and play” DVB-S2 modem which greatly simplifies the customers’ installation process and insures reliable service.
The Company: SkyWay has been in beta testing for two years and operational for one year, during which time it has developed the system and its associated hardware and software and established a steadily growing subscriber base. This has demonstrated the technical capabilities of the system and its acceptance on a limited basis by the market.
The Market: The Company will focus on those markets which do not have high speed service via conventional infrastructure, such as DSL or cable landlines. The researchers believe that the low population target markets will not justify the corporate investment necessary to upgrade the landlines. It is estimated that there are currently 22.5 million households in such low population density areas in the U.S., of which over 60% own computers.
Competition: In the absence of upgraded landlines, the only competitors to SkyWay are direct satellite links which both upload and download via satellite. There are three major competitors, HughesNet (formerly DirecWay), Starband, Wild Blue.
(The following excerpt is from a Nov. 14th, 2006 NY Times article)
Hughes, which got into the business about two decades ago by providing data links to gas stations, convenience stores and far-flung company offices, has dishes at about 500,000 sites. About 80 percent of the 10,000 or so new customers that sign up for its HughesNet service each month are consumers. WildBlue, which is adding nearly 15,000 customers a month, expects to have 120,000 subscribers by the end of this year. StarBand has about 30,000 customers.
Both of these companies have a major competitive disadvantage to SkyWay of much higher equipment, installation, and operating costs because the complexity of the transmission of the upload signal makes it more costly to the consumer.
 Somatic DigitalJeffery A. Stern, CEO
Jason E. Barkeloo, President
Phone: 310-502-9902
jstern@somaticdigital.com
www.somaticdigital.com
Somatic Digital enables publishers to create interactivity on the printed page. We provide publishers, printers, OEMS and advertisers with the tools and ecosystem to add interactivity to their printed pages, thereby generating increased revenues. This helps publishers to bridge the divide between the printed page and their digital assets both for editorial and advertising content. We also can enable them to complete transactions directly from the printed page, facilitating commerce and subscription models.
Products:Somatic Digital is providing publishers with an entire ecosystem, through which they can blend print and interactive assets. This includes the software through which publishers can seamlessly creative “touch links” on the printed page to the back end through which publishers can complete transactions and track user data. The current products include:
•TouchBook™ - TUI (Touch User Interface) hardware platform – Somatic has designed the hardware and software to enable readers to touch the printed page and automatically connect to interactive assets.
•BookCreation Software Suite™ - enables publishers to seamlessly integrate interactive content into their printed pages.
•Back Office & Analytics – empowering pdCommerce™ and advertising tracking. Somatic’s data collection enables content owners (advertisers, publishers, catalogers) to track users behavior and purchases.
Business Model: The company has built, and continues to develop, an entire ecosystem that provides the connection between printed pages and their interactive companion assets. These services enable publishers to leverage their print assets to drive more users to their interactive assets, improving. This improves the user experience. Ultimately, content owners can monetize this improved connection to their reader and customer.
Somatic’s economic model derives revenues on both sides of this equation. We license our software to publishers, enabling them to connect their interactive assets with the printed page. In addition, we provide consulting and development services, when necessary, to publishers to facilitate these interactions.
Once the content is TUI-enabled, we generate revenues from the enhanced user experience. For example, a TUI-enabled catalog will lead to a lift in response rate and commerce transactions that can be completed through the Somatic ecosystem. Somatic generates revenues by completing this transaction. Similarly, TUI enabled advertising will generate incremental user interaction. Somatic earns income by tracking this information for the advertiser and/or publisher.
Intellectual Property: To date, we have completed four full patent applications, all of which have received serial numbers. We have filed two additional provisional patent applications with a third one in process.
Financial Requirements: The Company is seeking $600,000 in angel funding with the expectation that we will raise a proper “A” in the middle of 2008.
Use of Proceeds: The Company will use the proceeds as follows:
•$75,000 for tooling, assembly, testing, and manufacturing of 100 TouchBook™ cast urethane prototype units.
•$100,000 for software development (includes hiring another programmer)
•$25,000 for product refinement of Gen2 (eTouch) and testing costs for Gen2;
•$275,000 for G&A, personnel salaries and legal;
•$25,000 for travel, sales, and marketing costs.
We will look to raise a proper “A” round of between $5 million and $10 million by late summer. We anticipate working with strategic investors and/or venture capitalists.
 Vetix Inc.Dr. Scott Pierce
David Foley
Nate Valentine
Phone: 859-258-9160
dfoley@vetixinc.com
Vetix was incorporated in Kentucky on May 30, 2007 for the purpose of owning and operating companies which market innovative joint supplements containing hyaluronic acid and related products for the equine industry, companion animals and humans. The Company previously raised $150,000 in an organizational private placement offering and proposes to raise an additional $9,000,000 in this Offering, to fund the implementation of its business plan. However, there can be no assurance that the Company will be able to raise such monies or that the amount of monies raised will be sufficient to enable the Company to implement its business plan. On June 30, 2007, the Company acquired Kinetic Technologies, LLC (“Kinetic”) through the issuance of 9,000,000 Vetix Common Shares. On August 31, 2007, the Company acquired HA Concepts, Inc. (“Concepts”) through the issuance of 4,000,000 Vetix Common Shares.
Dr. Scott Pierce and Dr. Stuart Pierce are the initial founders of the Company. They formed Kinetic Technologies, LLC in 1999 and HA Concepts, Inc. in 2003. Dr. Scott Pierce and his brother, Dr. Stuart Pierce are doctors of veterinary medicine.
Kinetic Technologies, LLC: Kinetic Technologies, LLC was founded in 1999 and introduced the first oral supplement for horses that included hyaluronic acid (“HA”). The first product, Chondrogen EQ, added HA to a paste that included glucosamine and chondroitin. The effects were so profound that they led to a significant amount of research in the oral administration of HA, which ultimately resulted in a patent. Chondrogen EQ was followed by Conquer gel (which contains just HA). Over time, the company has developed a full line of nutritional supplements and topical treatments for joint health, wound care and performance aids.
Kinetic sells a full line of over-the-counter (“OTC”) products through a network of national animal health care distributors and catalog companies. Kinetic also distributes a small line of veterinarian-only products through national ethical distributors. The major distributors have national field sales forces. Kinetic has a sales force which provides training to the distributors and call on individual veterinarians, horse owners, horse farms and trainers.
In 2006, Kinetic launched a complete line of companion animal (canine) products that includes joint supplements, eye, ear, and wound care products. Kinetic sells its companion animal line direct to consumers and distributes the products via the existing animal health distributor base. Kinetic recently launched the companion animal line in Tractor Supply, Kroger and PETCO. The company is in discussion with other major retailers, including, Pet Supply Plus and Petsmart, for distribution in late 2007 or early 2008.
Kinetic processes and fills most customer orders from its facility in Lexington, KY. A distribution center in Plymouth, Michigan provides distribution service for key retail customers.
The solid science behind Kinetic’s products has gained international attention. Through professional veterinary relationships, Kinetic has developed an international distribution network covering Sweden, Mexico, Switzerland, the UK and the United Arab Emirates.
The Conquer trademark is registered in the United Sates, Canada, U.A.E., EU and UK. An application has been filed in China. The company’s key patent covers the oral administration of HA in mammals in gel or paste form and in combination with numerous other compounds.
According to the American Pet Products Manufacturers Association, Inc. (“APPMA”), during 2006 over $38 billion dollars was spent on pet supplies and services by Americans. In a 2007-2008 survey conducted by the APPMA, over 63% of American households own a pet, which equates to 71.1 million homes. During 2006, $9.3 billion dollars was spent on over-the-counter medicines and supplies. This number is projected to be $9.9 billion for 2007.
HA Concepts, Inc.:Concepts was founded in 2003 and developed a patented HA soft gel for humans called Conquer HA. In addition to Conquer HA, Concepts offers a full product line of joint related nutritional supplements. Concepts initially marketed its products through a 30 minute television infomercial. Management is focusing on other, more cost effective methods of direct response marketing, such as print, radio, direct mail and the internet.
Proceeds from this Offering will be used to expand the business of Kinetic and Concepts through expanded marketing campaigns, hiring sales representatives and developing new products. Management believes that there is a void in the market for products with the effectiveness of Kinetic and Concepts products. Kinetic and Concepts have been able to achieve combined annual sales in excess of $8 million on limited capital resources. Management believes that the additional capital resources from this Offering would afford the ability to significantly increase sales volumes and generate operating profits.
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