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February 2015
“Enriching Learning, Therapy, and Fun with Inclusive, Interactive Music”
Beamz Interactive, Inc. (BZIC)
INVESTORPRESENTATION
Forward-Looking Information
This material is for information purposes only. The presentation may
contain forward-looking statements based on current assumptions and
forecasts made by the management of Beamz Interactive, Inc. Various
known and unknown risks, uncertainties and other factors could lead to
substantial differences between the actual future results, financial
situation, development or performance of the company and the
estimates given here. The company accepts no obligation to continue to
report or update these forward-looking statements or adjust them to
future events or developments. This material may not be reproduced,
distributed or transmitted to any other person or incorporated in any
way into another document or other material without the prior written
consent of Beamz Interactive, Inc.
2
• Experienced Management Team
• Strategic Positioning & Product Development Completed
• Highly Leverageable Financial Model
• Significant Multi-Billion Market Opportunities
• Strong Product and Intellectual Property Portfolio
Investor Highlights
3
Management Team
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• Charles is a seasoned leader and entrepreneur who has built a number of businesses in wireless telecommunications, consumer electronics, computers and other start-up areas into leading private and publicly-traded companies. Prior to Beamz Interactive, Mr. Mollo was a co-founder and Chairman, President and CEO of Mobility Electronics, Inc. (subsequently iGo, Inc.), a NASDAQ company focused on developing and marketing innovative products for the converging mobile electronics industry. Under his leadership, the Company grew sales to an annual run rate of just under $100 million per year. As VP of corporate development, Mr. Mollo also helped build Alliance Telecommunications Corporation in the late 1980s and early 1990s. This wireless telecommunications company went from start-up to just under $100 million in revenues, and was successfully sold in July 1992 to a New York Stock Exchange listed company. Mr. Mollo has an MBA from the University of New Mexico, a Master’s in Electrical Engineering from Newark College of Engineering, NJ Institute of Technology and a Bachelor’s in Electrical Engineering from Manhattan College.
Charles Mollo,
CEO
• Joan is a veteran financial executive with over 30 years of experience and a strong track record of public company performance. Ms. Brubacher oversees all product development, operations and supply chain management for the dynamic line of Beamz interactive music products, as well as managing the company’s finance, SEC reporting, and licensing arrangements. Prior to Beamz, Ms. Brubacher served as a Principal and CFO at Resolute Commercial Services where she provided financial consulting services to troubled companies. Between August 1998 and February 2009, Ms. Brubacher served in various financial roles for iGo, Inc., including as its Executive VP and CFO beginning in August 2001. In addition, Ms. Brubacher was instrumental in the negotiation of mergers and acquisitions as well as OEM, licensing, supplier and customer agreements. Prior to iGo, Ms. Brubacher was employed at several companies, including start-ups, where she held the positions of Controller, CFO and COO. She started her career on the audit staff of Ernst & Young (formerly Ernst & Whinney).
Joan Brubacher, President
& CFO
Beamz Business Strategy
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Leverage Beamz Intellectual Properties
•Expand Strong Patent Portfolio, Extensive Software, & Content
•Promote Beamz® Brand
Prioritize the Education & Health Care Market
•Build the Beamz Brand, Product Awareness & Sales in the Education, Special Needs, Therapy, & Senior Care Markets
License / OEM / Partner Beamz Hardware and Software
• License/OEM / Partner Beamz Products and Technology in Key Strategic Markets
Develop and Implement Broad Content Business Strategy
•Promote Beamz Apps to Create Brand and Product Awareness
•Develop & Promote Music, Education and Health Care Content with Beamz Hardware and App Customers
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Beamz Education & Healthcare Product
Beamz Interactive Laser Music System
Includes Beamz PC/Mac Player Software
iOS App for iPhone, iPad and iTouch
Recently Launched New Android App (Future Hardware Compatibility TBA)
Windows RT App Coming 2015
Recording Capability, Custom Touch Layout, Custom Volume Mix, Vocal Mute
Button, Playlist, etc.
Includes Specialized Education & Special Needs Content
50 Songs Tailored to Education and Therapy
Activity Guides For Special Needs, Lesson Plans, & Therapy
Compatible with Various Communication Products
Additional Options & Capabilities
Special Needs Lesson Plans
Adjustable Beamz Width for Therapy Use (Tobii Addition)
Senior, TBI, & Other Therapy Guides
Numerous Additional Song Content “Downloads” Available
Education and Healthcare Market
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• Hospitals
• Rehabilitation
• Physical, Occupational,
& Recreational Therapy
THERAPY
• Retirement Communities
• Assisted & Nursing
Homes (40,000 in US)
• Home Care (40 million US
Seniors)
SENIORS
• 130,000 + US Schools (K-12)
• Special Needs
• Learning Disabilities
• Cognitive Development
• Early Learning
EDUCATION
EQUALS MULTI - BILLION MARKET OPPORTUNITY
DISABILITIES WELL SUITED FOR BEAMZ
DisabilityUS Afflictions
(Thousands)
Visually Impaired 6,600
Traumatic Brain Injury 5,000
Mental Retardation 6,500
Post Traumatic Stress Syndrome (PTSD) 5,200
Physical Therapy - Other 2,900
Autism / Asperger’s / Tourette‘s Syndrome 800
Cerebral Palsy 800
Stroke / Aphasia 800
Down Syndrome 400
Spinal Cord Injuries (SCI) 300
Multiple Sclerosis (MS) 300
Muscular Dystrophy (MD) 50
Lou Gehrig’s Disease (ALS) 30
Williams Syndrome 30
TOTAL US INDIVIDUALS WITH DISABILITIES 29,700
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Education/Healthcare Sales & Marketing Plan
Special Needs & Music Education
• Directly Pursue Key School Districts In Selected US States
• Leverage Global Education & Health Care Resellers
• Leverage Customer Base of Hundreds of Schools
Implement Digital Marketing Program
• Occupational, Physical, Music, & Recreational Therapists
• Education Professionals
• Parents of Children with Special Needs
• Parents of Children For Early Learning
Pursue Senior & Health Care Facilities
• Directly Pursue Assisted/Independent Living and Nursing Home Facilities
• Directly Pursue Home Care ReSellers
• Leverage Global Therapy & Assistive Technology Re-Sellers
• Leverage Customer Base of Hundreds of Senior Facilities
Early Learning Consumer Focus
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PURSUE STRATEGIC PARTNERSHIPS
AS AWARENESS EXPANDS
FOCUS ON PARENTS OF CHILDREN WITH
SPECIAL NEEDS• Leverage Education Market Awareness
• US Opportunity: 30 Million x $200/unit x 10% =
$.6 Billion
• Promote Lekotek Special Needs Activities
PROMOTE FREE APP• Implement Targeted Digital Marketing
Programs
FOCUS ON PARENTS WITH
YOUNG FAMILIES• Leverage Education Market Awareness
• US Opportunity: 50 Million x $200/person
x 10% = $1 Billion
• Focus on GiggleBellies, Learning Station,
Simon Says & Music Appreciation Early
Learning Content
National Lekotek Center
The National Lekotek Center and its affiliate, AblePlay, works with manufacturers around theworld to evaluate and rate products that can improve the lives of children with special needsalong Physical, Sensory, Communicative, Cognitive, and Social/Emotional dimensions throughthe utilization of toys and play.
National Lekotek Center Rating
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Beamz Receives High Ratings In
AblePlay Review
The National Lekotek’s AblePlay has
performed it’s rigorous review of the Beamz.
The “exceptional” and “very good” ratings
are among the highest ranked scores
awarded by AblePlay out of the list of
products that have undergone the same
review.
• Digital Song Content
– Currently 500+ Songs Across All Music Genres
– Extensive Licensing Rights (i.e. Disney, Warner, Sony, etc.)
– Original Music, Cover Songs, Karaoke, Music Videos
– Early Learning Interactive Music Videos
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Education and Healthcare Content Strategy
• Therapy Protocols/Lesson Plans/Activity Guides
– Structured Activities with Tailored Music for Specific
Educational, Therapeutic, and/or Learning Programs
– Family and Group Play Activities
– Content Developed with Temple University Faculty/
MusicWorx/Lekotek/Others
• Ongoing Content & Annual Subscription Programs
– Ongoing Expanded Printed Activity Guides
– Extensive Therapy Protocols
– TBI Therapy Protocols
– Special Needs Lesson Plans
Teaching & Therapy Protocol Benefits
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Cognitive Goals Social / Emotional Goals Physical Goals
•Attention•Concentration•Focus•Following Directions•New Learning•Memory•Problem Solving•Reading Comprehensive•Sequencing
•Creative Expression•Decision Making•Empowerment•General Social Skills•Interpersonal RelatingSkills
•Listening•Self-Confidence•Self-Exploration•Team Work•Verbal Expression
•Endurance•Fine Motor•Gross Motor•Range of Motion
Texas School System (K-8)
Public Schools: 20 Regional Centers, 1,265 Districts, and 5,600 Schools
49.5 Million Students
Private Schools: 2200Schools
• 5.3 Million Students
9,500 child care centers
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Texas School System Example
Beamz Initial Hardware Sales Opportunity
2-3 Units per school
1-2 switches, 1-2 cases, several lesson plans per school
$10 Million Initial School Sales Opportunity
Additional Early Learning Child Care Opportunity
Follow-On Content & Subscription Sales
Annual/multi-year subscription option
Specific content and module purchase options
14
Senior Care Example (US)
• 40,000 assisted, nursing, memory care & other facilities in US
• 5,000 facilities with the top 50 corporations
• 15,000 senior centers
• 33,000 home health care agencies serve 12 million clients in US
Senior Care
• 3-5 Units per Center
• ASP: $500
• $7.5 Million For Top 60 Corporations
• $82.5 Million for Senior facilities
• Multi billion dollar individual market
Beamz Sales Opportunity
• Annual/multi-year subscription option
• Senior, TBI, & Other Therapy Guides
• Specific content and module purchase options
Follow-On Content & Subscription Sales
Assistive Technology/Education Re-Sellers
15
Beamz North American / U.S. Resellers: (16)
Cadan Technologies US SEN
Rehab Mart US SEN
Info Grip US SEN
Enabling Devices US SEN
Music in Motion US Music Education/Therapy
S & S Worldwide US B & A Schools, Senior Care
Steptimeware US MI Dealers, Education Dealers
Music Theraplay US Senior Care
Westminster US SEN
Inclusive Technologies US SEN
ABC Speech Therapy US Speech Therapy
Rapid Assist US SEN
TFH US Parents of Children with SN
Music is Elementary US Schools
FlagHouse US SEN
Arogo Canada SEN
Beamz International Resellers: (17)
Inclusive Technologies UK SEN
FutureForm UK Education
WestCare UK SEN
BJ Adaptaciones Spain SEN
Consort World UAE SEN
Spectronics Australia / New Zealand
B & A Schools, Senior Care
AT Link Australia SEN
Mentiss New Zealand SEN
Dagesh AssistiveTechnology
Israel SEN/Therapy
Infinity International Dubai Consumer
Fantasy World Kuwait Consumer
Domodep France Assistive technology
Interwrite Russia Education
KYDZ International Singapore Education
RehabMedia Germany Education/Healthcare
Tobii Technology Sweden / International
SEN
RLS Steeper UK Senior Care
Awards and Recognitions
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Lekotek’s
AblePlay Rating --
Top Five Product
The National Parenting Center Spring
2014 Seal of Approval
National Geographic Kids Top Five Toys for 2014
iPhoneAppReview – 5 Star Rating
AndroidAppReview & Android
Headlines – 4 ½ Star Rat
Billboard.com Top Five “Coolest”
Products at CES 2011
Best of CES
2011 by Leo
Laporte on
ABC’s
LIVE! With Regis & Kelley
Digital Trends - Best of Toy Fair 2011
Dr. Gadget
2013 Must-
Have
Holiday Gift
NBC’s Extra
ABC’s The View
CBS’ The Talk
Most
Innovative
Tool For
School – 2010
Summer
NAMM
Toy Insider
2010 Holiday
Gift Guide
Top Item for
Tweens
Seal Of Approval 2011-2012; Recipient of:
The Toy Man® Award of Excellence
The Toy Man® eChoice™ Award
The Toy Man® Product Guide – 5-Star Rating
Best DJ Gear At Musikmesse – 5
Star Rating
Intellectual Property Portfolio
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IP Portfolio Includes 8 Issued U.S. Utility
Patents
11 Patents Pending
Extensive software, music engine,
copyright, and music license rights
Patent 6,960,715 - Has several independent claims covering
various aspects of a music instrument operable by using
electromagnetic beam emitters
Patent 7,504,577 B2 – Broader patent that covers the
Beamz concept at a very high level. Generally covers beam
emitters, detectors, music, etc.
Patent 7,858,870 B2 - Broader claims than ‘577 B2. Covers
a device wherein the triggers are generic, and music
programs are a subset of a composition
Patent 8,178,773 - Covers the Beamz Studio product,
including a graphical user interface that enables the Beamz
product to be user-programmed
Patent 8,431,811 - Covers a multimedia device allowing a
user to play a song in association with displayed video
images
Patent 8,835,740 covers a Video Controller using Beamz
technology with a video game or other multimedia
configuration.
Patent 8,835,739 covers generating a plurality of MIDI
commands and/or keystrokes as a function of a single
command/input.
U.S. Patent 8,872,014 covers the Beamz multi-media
controller having proximity control sensors
18
Historical Financials
Significant Management Investment
- Patents, Music Engine, Apps, Beamz Products, Music Production and Licensing, Market Development & Testing, Infrastructure
- Over $10 Million from Management / Directors
2013/Early 2014: Invested Heavily in 3rd Gen Products, Technology and Apps
- Includes Significant Non-Cash Expense
- Development Now Complete
- Now Need to Invest in Sales & Marketing
2014 Focus Shift to Education & Health Care
Clean Balance Sheet
- Only Debt is $4.8 Million Convertible Debt
- (Primarily with Management / Directors)
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Financial Model
Hardware Margins 50% plus
2014 Q2 Direct Hardware Margins = 73.9%
Content Margins 70-90%
Includes Songs, Educational Content, Therapy Content, etc.
Long-term Razor Blade Opportunity
Pre-Tax Margins 30% Plus With Sales Volume
Current Cash Operating Expenses: About $135K/ Month
Includes approximately $25K public company cost
Break Even around 400-500 Units / Month
Will Ramp Sales and Marketing Expense with Growth
20
Capital Structure
As of December 31, 2014
Common Stock & Preferred Equivalent Shares O/S 75,263,899
Options & Warrants 32,733,130
Convertible Debt, as if converted 39,816,825
Total Shares, Fully Diluted 147,813,854
Contact
21
Beamz Interactive, Inc.
Charlie Mollo, CEO
505.263.9707
Eye-To-Eye Communications, Inc.
Cathy Sperrazzo, Managing Partner
858.337.7746
