2/28/02
Word of OZ: What is the status of the project?
The status is currently on hold as they have had difficulties getting the municipal legislators to approve building the theme park.
The World of OZ has no direct affiliation with Alpha Virtual other than Dan Mapes, AV's current CEO, headed up the technology
development effort.
2) DNA Studio: How has the marketing and co-development game project been
progressing?
Very well. In fact our developers are currently working on various projects with DNA to enable gaming engines with multi-user
capabilities. The projects DNA and AV are working on have large corporate clients attached to them. We expect to announce
a formal delivery in the coming weeks that will lead to revenues.
3) Eidetics: Why has Alpha Virtual not been receiving royalty from them?
* Corporation from the sale of the PGTS division. We were to receive 3%
royalties on all business involving the PGTS assets, contracts and
proposals. The royalties on the Egyptian contract alone should have been
$90,000. However, only $17,000 has been reported. Where is the rest of the
royalties and why has there been no new PGTS royalties earned from the sale
to Eidetics Corporation?
Eidetics Corp. has been having very difficult times and that has been the root cause in the delayed payments. We have been in contact Eidetics
numerous times and expect payment from the PGTS royalties shortly.
4) OneView Suite: we are wondering what kind of company/consumer is the
OneView Product marketed to?
On the enterprise side we have targeted three types of customers based on the functionality of our product offering:
1. Companies that have a large sales force and a strong need to communicate with customers from virtual locations (e.g., real estate - Homestore
insurance companies - Allstate, financial companies - Schwab). Our products allow these companies to take customers (e.g., home buyers) on a
virtual tour of homes, search for insurance/mortgage options, and complete online forms to finalize the sale process.
2. Entertainment companies that have multiple people at various locations working on a particular media project (e.g. commercial production,
video/music production, development of ad campaigns). Our product allows decision makers to enter a "virtual screening room" and collaborate over
a work product in real-time from separate locations. Typical clients for this application are the major media studios (Warner Bros, MGM, Paramount,
Disney, etc.) and Traditional/Interactive Ad Agencies (Young & Rubicam, Omnicom, Interpublic, DNA Studios, etc).
3. Companies that have a strong, global brand and the need to market that brand more effectively on an interactive forum via the Internet.
Our products enable these companies to create branded, multi-user marketing applications that enhance their corporate identity, and allow for viral
marketing and interaction with the brand on an interactive forum. Marketing applications could include multi-user games, promotional interactive video/audio
presentations, website enhancements, etc. There are plenty of companies in this space, but a few good examples include Yahoo, AOL, Coca Cola, Budweiser,
Daimler Chrysler, Toyota, etc.
* How these companies will generate revenue from its use?
1. The value proposition to the first group (see above) is two-fold. Primarily, the company is able to save costs by enabling their sales force to
interact with customers from remote locations, cutting expensive travel and communications expenses. Secondly, with the breadth of features of our product
offering the sales force of these companies are now able to have "hand-holding" experience with customers online, resulting in a direct increase in sale closures
and additional revenues.
2. The value proposition for the second group is focused heavily on cutting the tremendous costs of collaborating on a work product from remote locations. Currently,
media companies rely on FedEx to ship dailies to various decision-makers throughout the world, and if they do work on a digital forum there is no synchronous interaction
amongst the decision makers. Thus, the approval process currently holds heavy time and operational costs. Our products allow the media companies to cut these costs
and deliver finished product faster and more efficiently.
* What is the potential market for this product?
Three major targets as pertains to the segments stated above: Enterprise, Entertainment/Media, Education.
I can provide specific metrics for the opportunities within these target industries.
* Timetable for the new product release as previously stated (FEB?)
Products have been internally tested and assured for release by the engineering team. We are currently waiting for our renovated website to be complete for a full market launch.
This is expected to occur by early to middle next week.
* Is the company expecting to announce a paying costumer tied-in with the
oneview suite release?
The release will not involve a paying customer, but we are in final negotiations with customers that should be announced shortly after in the late march/early April timeframe.
5) IC3D technology: Will there be additional products/applications for the
in the near future?
Definitely. We will launching new OneView products and updated versions throughout the 2002 calendar year. Some of the additional products include a Flash SDK and our 3D
collaborative engine.
6) Financial statements: why they can't you get a simple out by the due
date?
I truly understand your complaint and have made my voice/opinion loud and clear to the financial team. Please understand up until now we have had only one individual managing our
external auditors and accountants. We are bringing on an additional resource to aid in this process and I expect more timely compliance from here on.
* When it will be published?
Our 10 Q has been filed and should be accessible.
I hope my answers have given you a brief insight as to the status of affairs here at AV. We are very excited of the company's future opportunity and have received wonderful feedback from
the markets about the applications of our technology. Although I gave you a quick insight as to our strategic direction, I still would like to sit down with you and walk you through the demos,
answering any further questions you may have.
Let's try to schedule a time to meet early next week.
Thanks,
Saif Mansour |
