ParaBounce® Experience

Welcome to the
ParaBounce® Experience
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ParaBounce in the Closing Ceremonies of the 2002 Olympic Winter Games, Salt Lake City
I. EXECUTIVE SUMMARY
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II. THE PARABOUNCE ADVANTAGE
III. BRAND IDENTIFICATION
IV. MARKET STRATEGY
V. GROWTH STRATEGY
VI. RISK REDUCTION STRATEGY
VII. PATENTS & TRADEMARKS
VIII. PRODUCT DETAIL
IX. IMPLEMENTATION
X. FACILITY STRUCTURE
XI. COMPETITION
XII. COST & REVENUE PROJECTIONS
XIII. PRESS, PUBLICITY & IMAGES
ParaBounce®
www.ParaBounce.com
Comments from Noted ParaBouncers:
“Wow!” – Katie Couric, NBC’s Today
“Like Walking on the Moon!” – Lee Iacocca
“The goddamndest sensation this mortal has ever experienced.” – Alan Farnham, Senior Editor Forbes
“Mere mortals can leap tall buildings in a single bound.” – FHM Magazine
“I can’t wait to go for a ride in that balloon.” – President Bill Clinton
I. Executive Summary
Overview
The experience of Human-Powered flight is a dream we all share. Until now, participating in this adventure was only for the
experienced aerostat pilot, hang-glider or balloonist. Now, through the proven application and use of state-of-the-art technologies,
anyone, including the physically challenged, can gently float, soar or propel themselves through the air and enjoy the thrilling
sensation of taking one giant leap after another.
The ParaBo unc e was developed in 1996 by Stephen Meadows as an
outdoor amusement experience. His objective was to create a lighter-thanair attraction for all ages and simultaneously generate funds for children!s
charities.
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ParaBo unc e was introduced to the world in August 1999 on NBC!s
"Today# show and the cover of the fall issue of the renowned catalog
retailer, Hammacher Schlemmer. As Katie Couric soared 100 feet above
the crowd in a P araBounce over Rockefeller Center, the cameras
panned down to the colorful Catalog Cover featuring a giant, bright red
ParaBo unc e .
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Due to this immediate demand, overwhelming response and unexpected worldwide press, the P araB ounce became viable as a
commercial enterprise.
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In 1999, Mr. Meadows formed One Giant Leap, LLC, a California limited liability company (OGL) to refine, manufacture and market
the P araBo unc e technology. Over 200 P araBo unc e units have now been successfully manufactured and distributed around
the world. Additionally, ov er a millio n peo ple have ex perienced the a ttra ctio n witho ut a single injury !
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The ParaB ounce is a 22 foot diameter helium-filled balloon that can gradually soar up to 120 feet while traveling horizontally
20 to 200 yards in a single bound or "Giant Leap.# The rider is properly balanced in a comfortable and secure harness
suspended from the colorful P araBo unc e balloon.
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As an additional experience, Mr. Meadows designed the "PropBike# human-powered flying bicycle. The aerostat is suspended from
the P araBo unc e envelope and allows a rider to pedal-propel themselves through the air at speeds approaching 6 knots.
"TechTV! Clips featuring the experience can be viewed on the P araBounc e website. For
video of the experience, visit www.ParaBounce.com.
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In 2002, One Giant Leap leased a 70,000 square foot athletic dome in and thoroughly tested
the i nd oor feasibility of the P araB ounce concept. Not only did the local press have a field
day, everyone that participated in the experience was completely captivated by the magical
attraction. Members of the press were acting like kids, bidding for who was going to fly next!
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The experience under the athletic dome forever changed the vision of One Giant Leap.. Once
the attraction was captured within an interior environment and not subject to the external
forces of nature, the direction of how P araB ounce would continue and grow as a new sport
of experience was established.
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For the next five years, Mr. Meadows obtained U.S. and International Utility Patents for the
experience and developed the indoor attraction. A typical installation provides for 24 or more
ParaBo unc e balloons to travel around simultaneously, freely and safely. This incredible
attraction gives everyone a unique, gentle free-flying experience that only a P araB ounce
can provide.
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Today, OGL plans to launch its first indoor facility P araB ounce in Las Vegas, Nevada. The 120,000 square foot air-inflated
structure can easily and simultaneously accommodate twenty to twenty-five balloon riders.
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In 2008, a Preliminary Site Plan was approved by the Clark County, Nevada Building Department.
Imagine being able to gently glide through the air along with numerous other ParaBouncers! Where else can you literally fly
without a license? Skim off the ceiling, walls and other ParaBouncers.. As many of our guests have said after their experience:
"Yo u g otta see it to b eliev e it!!
Floating themed P araB ounce balloons in unique shapes; animals, characters, racecars, planets - will carry riders aloft through
giant video projection backdrops, surround sound, light shows, etc. IT#S a NEW and UNIQUE EXPERIENCE with STUNNING IMPACT!
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Media Exposure: ParaBounce is a Natural Media Magnet!
With the product!s credibility established, P araBo unc e received immediate and extensive media exposure, including NBC!s
Today Show, CBS!s This Morning, Entertainment Tonight, Access Hollywood, MTV, MSNBC, CNN, BBC, Telemundo and a host of TV
shows around the world. In 2000, P araB ounce was called to the White House for President Clinton!s Party and flown on the
Front Lawn!
Shortly thereafter, P araBo unce was selected to electrify the Closing Ceremonies of the 2002 Winter Olympic Games in Salt
Lake City, Utah. Over a billion viewers worldwide witnessed the incredible P araBo unc e experience. Print media appeared in
Forbes, Sports Illustrated, Popular Mechanics, Der Speigel, the LA Times, the New York Times and others. ( S ee XVI. Media &
Image s )
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The Media’s Theme has been Consistent and Supportive
Las Vegas is the most visited city in the US, averaging 42 million visitors a year.
Cross promotions are expected with the City of Las Vegas and many of the
Hotel/Casinos to promote their names in print ads, TV, radio promotions, etc., with
ParaBo unc e in the foreground.
Numerous celebrities will all be flying" with multiple photo opportunities to be
released worldwide.
ParaBo unc e is fun, easy, non-polluting and anyone from 8-98 years old can do it.
This includes the physically challenged, who might not be able to walk, but with
ParaBo unc e " They can fly!
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II. The ParaBounce® Advantage
ParaBo unc e is positioned to take the amusements and attractions industries by storm. Its primary target markets are theme
parks, water parks, beach communities and vacation destinations; Proven high volume traffic areas.
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ParaBo unc e is a unique brand that is profitable with high visibility. Its visually stunning impact lends itself to fresh branding
capabilities, utilizing entertainment marketing with non-traditional advertising methods.
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One Giant Leap believes that the mass-market potential of the P araBounce has been proven and overwhelmingly demonstrated
by the following factors:
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Strong media support from TV, magazine, newspapers; P araBo unc e has been called $T he Co ol es t Idea Ev er%
and $Bad-A ss % by the adoring press.
To date over 1,000,000 people from every age demographic have $ParaBounced% without a single injury.
Wherever P araBo unce has been provided, throngs of people eagerly await the experience.
No Direct Competition exists anywhere in the World.
Since P araBo unce is not an electronic or motorized ride, there is virtually no ride maintenance.
Time allotted to riders can be varied on the P araBo unce . A rider can stay aloft for minutes or hours. This allows
for variation in ride charges dependent on time of day and demand.
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III. Brand Identification
Serious long-term consideration was put into the concept from the start, resulting in creating a brand, naming the experience and
expending the funds required to legally trademark and patent the concept, ride, and overall experience.
Because Meadows! invention broke new ground, P araBo unce has the unique distinction of being thought of as the generic name
for an entirely new sport of experience. (People now refer to Parabouncing in the same way as someone might use the word
kleenex or xerox.)
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IV. Market Strategy
The market for new amusement experiences is colossal. Theme park revenues in 2009 exceeded $15 billion in the U.S. alone. The
ParaBo unc e phenomena will become a destination event experience and the $main draw% in amusement parks worldwide.
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To serve this market, OGL licenses the patented ParaBounce® technology. Licensed Facilities consist of theme park destinations
and/or business concerns engaged in the development of purchased or leased property for the purpose of providing amusement
rides and entertainment centers.
The Las Vegas facility will be leased and operated by OGL. OGL is currently negotiating with potential Licensees and anticipates
successfully negotiating Licensing agreements for several International P araBo unc e facilities.
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OGL has received considerable interest from establishments such as Six Flags, Disney and Universal Studios. In 2007, a proposal
by OGL in conjunction with Universal Studios was presented to the City of Los Angeles for a permanent P araBo unc e facility at
Universal Studios in Hollywood.
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Strategic Directions
OGL will continue to manufacture of products to develop the Las Vegas facility. The company will additionally license the
technology to venues in the amusement industry. Licensing arrangements will require the Licensee to purchase all required
equipment from OGL, receive proper training from our staff and operate their own Licensed facility.
Licensing : Criteria for Licensing consist of identifying a qualified location with significant exposure, through the availability of
either high foot traffic or consistent drive-by access to the facility.
Licensing would also establish OGL in a strategic alliance with all venue operators and accelerate the process by which the
technology is reinforced as the industry standard.
Licensing Pr otocols: Various Licensing protocols were investigated. The initial Licensing Fee for the P araBo unce technology
is followed by royalty payments based on gross revenues accruing to the Licensee.
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One Giant Leap will negotiate a flat fee with Licensees per period for assignment of the technology, with a royalty rate based on
the Licensee's gross revenue from the Licensed Intellectual Property to be applicable beyond a minimum level of revenue.
V. Growth Strategy
One Giant Leap envisions hundreds of air-inflated P araBo unc e domes at entertainment venues throughout the world. Currently, a
one million square foot dome is being built in China as a destination ski resort.
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Visionary ideas are possible within these giant, cost effective environments. Imagine 20 acre domes 500 feet high with scores of
human-powered flying machines buzzing around to hi-definition surround sound theatre projected on the interior surface of the
enormous dome!
It’s Jules Verne meets Bladerunner and anything is possible!
Thousands of worldwide P araBo unce inquiries have been received and preliminary design development is either approved or in
progress for future Licensed installations in Dubai, Israel, Pigeon Forge, Tennessee and China. These locations are considered
examples in the revenue projections that follow. Plans are available for investor review.
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ParaBounce is the cornerstone for the advancement of an as yet, largely undiscovered industry:
Human Powered Flight in Controlled Environments
VI. Risk Reduction Strategy
OGL is aware of the risks that may threaten the viability of its operation. The following summarizes the main risk reduction
strategies implemented:
! Extensive R&D, product over structuring and redundant safety features have been incorporated
! Intellectual property protection via patents, registered trademarks and copyrights
! Injunction readiness, with patent attorneys prepared to defend against infringement or interference
! Licensing structured to encourage rapid diffusion of the amusement experience
! Policy to discourage exit of major investors
! Ongoing discussions with potential Licensees, theme parks and investors to develop venues worldwide
VII. Patents and Trademarks
The ParaBo unce experience is protected by U.S. utility patent nos. 6,325,329;
5,391,115 and 6,935,963 as well as Chinese Patent no. ZL03816216.4. Its trademarks
have been registered throughout the world. Other worldwide patents are pending. With
the exception of one patent currently held by founder, Stephen Meadows, OGL owns
these Intellectual Properties.
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In 2005, OGL received injunctive relief and a 6.5 million dollar judgment from the Superior
Court of California against a former contractor attempting to copy and unlawfully
distribute the P araBo unce , thereby infringing on OGL"s patents and trademarks.
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VIII. Product Detail
Three years of research and development went into the P araB ounc e before going to
market. No compromises were made in safety or materials used. P araBo unc e is the
only personal aerostat system currently being successfully produced in the world. Every
consideration was made to ensure that the ride would be safe, fun and a completely
enjoyable experience.
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OGL retained experienced design professionals with expertise in hot air balloons, dirigibles
and aerostats as well as engineers from the aerospace industry. In 2001 and again in
2005, utility patents were obtained on the experience of Parabouncing.
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ParaBounce was voted one of the “12 Most Innovative Products in the World” by Popular Mechanics.
The Publication is available on the ParaBounce.com website.
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Co mp os itio n: The materials used to manufacture the P araB ounc e result in a high quality product. The balloon envelope fabric
is the same as used in the Brittlinger Balloon that successfully circumnavigated the globe and new materials are always being
considered. All metals are T-650 Aircraft Aluminum and rated to a minimum of 3000 pounds.
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OGL currently maintains a facility in Los Angeles for the distribution and storage of all P araBo unc e
equipment and promotional materials.
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balloons, aerostats,
IX. Implementation
Land and Prop erty: Possible locations have been identified on or near the Las Vegas strip, offering access to some of the
greatest exposure in the world. Due to the recent Las Vegas real-estate climate, there are now additional properties under
consideration at economical rates.
X. Facility Structure
The P araB ounce dome is manufactured by one of the premier supplier of air structures in the world with numerous installations
throughout the globe. For over 30 years, air structures have offered the perfect medium to expand the use of recreational
facilities. This concept has provided a highly successfully new dimension for recreational facilities to function in a controlled
environment, resistant to prevailing weather conditions. The Miami Dolphins, NY Giants, NY Jets and the Wall Street Racquet Club
are but a few examples of the more than seventy air-inflated athletic dome sites in the United States. The structure provides a
usable clear span with no inside supports or posts to interfere with activities. The dome shape will be custom designed for the
proposed area, but is a minimum of 100,000 square feet with a ceiling height minimum of one hundred feet.
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The exterior structural fabric of the is made of high strength Vinyl Polyester, which resists abrasion, mildew, acids, and is Fire
Retardant to meet N.F.P.A. 701 Fire Code Requirements. The smooth surface allows snow and rain to slide off and minimizes the
clinging of dirt to its surface.
After the grade beam anchorage systems and utilities are installed to meet engineering specifications, the fabric is spread over
the area and attached to the anchorage. Air is fed into the structure at low pressure, and will inflate to its full shape in less than
one hour. When fully inflated to approximately 6 lbs. per sq. ft., the structure is rigid and firm enough to withstand winds of 80
mph. A steel cable harness net system is placed over the entire structure.
The dome can be erected over any surface area after the anchorage grade beam is level around its perimeter. When the fabric
structure is removed, the anchorage system leaves no visible protrusions above the ground, so normal outdoor use of the area
can be maintained.
Emergency exit doors are supplied to safety code requirements. An 8' x 8' electric overhead roll-up door airlock system is
provided for vehicle access. The structure has a unique heating inflation system combined in a single unit for maximum efficiency.
Air conditioning will maintain 75 degrees. Automatic thermostats provide comfortable conditions throughout the interior. Most
important, the dome is double wall insulated to provide maximum efficiency of the heating and cooling system.
The manufacturer!s warranty covers the structure for ten years and the building life expectancy is longer than twenty. Many
existing athletic domes are still active after thirty years of operation.
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XI. Competition
OGL is not currently aware of any direct competition to P araBo unc e . However, listed below are indirect competing attractions
in the Las Vegas area.
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The Attractions listed below are anticipated to support and complement the ParaBounce
by providing significant pedestrian traffic to adjacent venues.
Adventure Dome Theme Park Circus Circus Hotel, Casino and Theme Park | Strip | Thrill Rides & Roller Coasters
Overview & Highlights:
Adventuredome Theme Park has mountains of thrills under the dome including the Canyon Blaster, a double loop roller
coaster, Chaos, Inverter and Rim Runner, an indoor water ride.
Buffalo Bill’s Thrill Rides Buffalo Bill's Resort and Casino | Jean/Primm | Thrill Rides & Roller Coasters
Overview & Highlights:
Buffalo Bill's Thrill Rides include the Desperado, one of the world's tallest and fastest roller coasters and the Turbo
Drop, a free fall experience.
Flyaway Indoor Skydiving | Skydiving
Overview & Highlights:
At Flyaway, America's first vertical wind tunnel, you can break the bonds of gravity and body fly. Flyaway Indoor
Skydiving gives you the chance to test your skills of human flight during a single flight session or as a participant in a
personalized coaching program. Flyaway Indoor Skydiving is a training resource for sport skydivers, competition teams
and military units.
Las Vegas Mini Gran Prix Northwest/Summerlin | Area Attractions
Overview & Highlights:
Four go-kart tracks; amusement rides; 7,000 square foot restaurant/party room, arcade. Open year round.
Nascar Entertainment Center Sahara Hotel and Casino | Strip | Thrill Rides
Overview & Highlights:
It features Las Vegas' fastest roller coaster, SPEED-The Ride, a state-of-the-art arcade. Las Vegas Cyber Speedway
with virtual reality racing simulators, the world's largest stock car named, "Carzilla" . Venue also includes a dining and
entertainment complex, NASCAR Cafe, includes a 400-seat restaurant serving all-American food and the NASCAR
Cafe Race Wear Shop. Open daily.
Stratosphere Tower Thrill Rides Stratosphere Casino Hotel and Tower | Strip | Thrill Rides & Roller Coasters
Overview & Highlights:
All rides are at the top of the Stratosphere Tower, over 900 feet high. The three extreme thrill rides are the Big Shot,
the X Scream, and Insanity. The X Scream, "is an eight seat ride that dramatically thrusts its open roller coaster car
along a 69-foot ramp at 30 miles per hour until suddenly stopping 29 feet over the edge of the tower and 866 feet from
the ground below.
The Roller Coaster New York-New York Hotel & Casino | Strip | Thrill Rides & Roller Coasters
Overview & Highlights:
This Roller Coaster will lift you up 203 feet, drop you down 144 feet and leave your pulse trying to catch up to 67 mph.
Simulating a jet fighter's barrel roll, you'll turn 180 degrees, hang 86 feet in the air, take the famous "heartline" twist and
dive. Open Sun - Thu 11am - 11pm, Fri - Sat 10:30am - 12am.
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XII. Financial Costs, Revenue Projections, Development Timelines
Note: This Proforma is Conservative and Assumes Operating at 53% Capacity.
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15.A • 100K Sq. Ft. ParaBounce Facility Monthly Revenue Projection:
PARABOUNCE® MONTHLY PROFORMA
ITEM
UNIT #’S
$ AVG. P/DAY
DAYS
% REVS
TOTALS
REVENUE
125 Riders per Parabounce unit per day (capacity: 233 riders per unit per day)
GATE PRICE ON WEEKDAYS ($6.00 AVG.)
2500
$15,000.00
18
9.66%
GATE PRICE ON WEEKENDS ($10.00 AVG.)
3000
$30,000.00
12
12.88%
88-3-minute rides-weekdays @ $12.00 per ride
20
$21,120.00
18
13.60%
37-5-minute rides-weekdays @ $15.00 per ride
20
$11,100.00
18
7.15%
88-3-minute rides-weekends @ $15.00 per ride
20
$26,400.00
12
11.34%
37-5-minute rides-weekends @ $20.00 per ride
20
$14,800.00
12
6.35%
DVD SALES TO RIDERS (@ $30. Ea)
25%
$18,750.00
30
20.13%
PHOTO / MEDIA SALES
1
$1,250.00
30
1.34%
CLOTHING / SOUVENIR SALES
1
$1,500.00
30
1.61%
RENTALS FOR SHOWS
1
$150.00
30
0.16%
PRIVATE EVENTS / PARTIES
1
$150.00
30
0.16%
SPECIAL PROGRAMS
1
$150.00
30
0.16%
TOTAL PARABOUNCE RIDE GENERATED REVENUE
$140,370.00
84.54%
ARCADE ($10.00 AVG.)
250
$2,500.00
30
2.68%
CONCESSIONS (2@ $7.50)
250
$3,750.00
30
4.03%
VENDING MACHINES
10
$2,000.00
30
2.15%
TOTAL ANCILLARY PROFIT CENTERS
$8,250.00
8.86%
ADVERTISING, GENERAL
1
$2,500.00
30
2.68%
DOME BANNER
1
$1,850.00
30
1.99%
BALLOON BANNER
15
$1,000.00
30
1.07%
TICKETS
1
$260.00
30
0.28%
VOUCHERS / COUPONS
1
$260.00
30
0.28%
ONLINE FULL BANNER
3
$90.00
30
0.10%
ONLINE SKYSCRAPER
3
$90.00
30
0.10%
ONLINE HALF BANNER
3
$100.00
30
0.11%
TOTAL ADVERTISING REVENUE
$6,150.00
6.60%
TOTAL FACILITY REVENUE
$160,023.00
100.00%
$270,000.00
$360,000.00
$380,160.00
$199,800.00
$316,800.00
$177,600.00
$562,500.00
$37,500.00
$45,000.00
$4,500.00
$4,500.00
$4,500.00
$2,362,860.00
$75,000.00
$112,500.00
$60,000.00
$247,500.00
$75,000.00
$55,500.00
$30,000.00
$7,800.00
$7,800.00
$2,700.00
$2,700.00
$3,000.00
$184,500.00
$2,794,860.00
All allocations above were made based on over a hundred prior ParaBounce® exterior and interior operations and
demonstrations at venues throughout the world. A complete list of these locations is available. Among them are:
• The Clinton Whitehouse
• The Pontiac Silverdome
• The Snapple National Tour
• The Ohio State Fair
• IAAPA in the Georgia Dome
• The Beach in Cannes
• Seoul, Korea National Park
• The New York State Fair
averaged 250 riders per ParaBounce unit per day
averaged 400 riders per ParaBounce unit per day
averaged 180 riders per ParaBounce unit per day
averaged 200 riders per ParaBounce unit per day
averaged 250 riders per ParaBounce unit per day
averaged 200 riders per ParaBounce unit per day
averaged 225 riders per ParaBounce unit per day
averaged 180 riders per ParaBounce unit per day
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15.B • 4 Year Company Revenue Projection from Commencement of Operation:
4 YEAR REVENUE PROJECTION
LAS VEGAS
FACILITY
YEAR 1
(MILS)
YEAR 2
(MILS)
YEAR 3
(MILS)
YEAR 4
(MILS)
TOTAL
(Company Facility)
33.60
34.00
35.00
37.00
139.60
Licensee
1 - 100K Sq. Ft.
(yr 2)
3.70
2.50
2.50
8.70
Licensee
2-
50K Sq. Ft.
(yr 2)
1.85
1.25
1.25
4.35
Licensee
3 - 100K Sq. Ft.
(yr 3)
3.70
2.50
6.20
Licensee
4-
50K Sq. Ft.
(yr 3)
1.85
1.25
3.10
Licensee
5-
50K Sq. Ft.
(yr 3)
1.85
1.25
3.10
Licensee
6 - 100K Sq. Ft.
(yr 3)
3.70
2.50
6.20
Licensee
7 - 100K Sq. Ft.
(yr 4)
3.70
3.70
Licensee
8-
50K Sq. Ft.
(yr 4)
1.85
1.85
Licensee
9-
50K Sq. Ft.
(yr 4)
1.85
1.85
Licensee 10 -
50K Sq. Ft.
(yr 4)
1.85
1.85
Licensee 11 - 100K Sq. Ft.
(yr 4)
3.70
3.70
Licensee 12 - 100K Sq. Ft.
(yr 4)
3.70
3.70
GROSS OGL REVENUE
33.60
39.55
49.85
64.90
187.90
COSTS (See 4 Yr Cost Worksheet)
20.40
15.31
17.31
21.00
74.02
NET REVENUE TO OGL
13.20
24.24
32.54
43.90
113.88
15.C • 4 Year Company Costs Projection from Commencement of Operation:
4 YEAR OGL COSTS BASED ON LAS VEGAS INSTALLATION AND LICENSING PROJECTIONS
EQUIPMENT AND OPERATING COSTS (MILS)
YR 1
YR 2
YR 3
YR 4
TOTAL
Las Vegas Installation Costs (From First Year Cost and Expenses Worksheet)
18.23
11.08
11.08
11.08
51.47
Parabounce Retail Branded Product Inventory (for Sale to Licensees)
0.40
0.75
1.25
2.50
4.90
Advertising/Promotion/PR/Website (Associated with Licensees)
0.02
0.04
0.06
0.08
0.20
Salaries/OGL, Trainers and Office Staff (Staff added per expansion needs)
0.50
0.75
1.25
1.50
4.00
Parabounce Units Equipment and Accessories (For Sale to Licensees)
0.25
1.20
1.60
2.80
5.85
Prop-Bike Units Equipment and Accessories (For Sale to Licensees)
0.20
0.30
0.40
0.70
1.60
Equipment Installation (Service to Licensees)
0.02
0.07
0.17
0.23
0.49
Licenses/Permits/Legal Fees
0.07
0.08
0.11
0.13
0.39
Insurance
0.06
0.08
0.10
0.15
0.39
Accounting (Related to Licensees)
0.08
0.07
0.08
0.09
0.32
Architectural/Consulting/Engineering (To Assist Licensees' Needs)
0.05
0.05
0.05
0.07
0.22
Printing, Training and Instruction Materials
0.03
0.02
0.03
0.05
0.13
Food/Lodging/Travel, Misc. Incidentals
0.06
0.12
0.17
0.21
0.56
Fuel/Production Equipment/Office Equipment
0.12
0.14
0.16
0.18
0.60
0.16
Office Lease and Utilities
0.03
0.04
0.04
0.05
Transportation/Inventory Storage
0.04
0.07
0.09
0.12
0.32
Price Increases, Cost Over Runs, Unanticipated Costs, @ 12%
0.23
0.45
0.67
1.06
2.42
20.40
15.31
17.31
21.00
74.02
TOTAL 4 YEAR COMPANY COSTS
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15.D • Year One Costs and Expenses, Complete Single 100k Sq. Ft. Facility:
SINGLE FACILITY FIRST YEAR COSTS AND EXPENSES - 100K SQ. FOOT FACILITY (LAS VEGAS)
COST (MILS)
CAPITAL IMPROVEMENT OPERATING COST
Air-Inflated Structure w/HVAC, Foundation & Parking – 100,000 sq. foot facility
3.50
3.50
Profit Centers – Concessions, Arcades, Etc. (75% CI, 25% OC)
1.20
0.90
Video/Media Centers and Installation (only required at startup)
0.32
0.32
Ancillary Products, 1 Year Inventory
1.40
1.40
Land Lease, 1 Year
1.25
1.25
Advertising/Promotion/PR/Website
1.10
1.10
Facility Staffing, 1 Year (2 shifts, 25 staff ea. 8 hr. shift @ $250 per employee/day)
4.50
Parabounce Units Equipment and Accessories (20 units @ 50K each)
1.00
1.00
Prop-Bike Units Equipment and Accessories (5 units @ 50K each)
0.25
0.25
Equipment Installation (only required at startup)
0.12
0.12
Licenses/Permits/Legal Fees (50% CI, 50% OC)
0.18
0.09
Insurance
0.17
0.17
Accounting
0.12
0.12
Architectural/Consulting/Engineering
0.18
0.18
Training and Instruction
0.10
0.10
Utilities
0.22
0.22
Food/Lodging, Misc. Incidentals
0.12
0.12
Fuel/Helium/Equipment
0.37
0.37
Transportation/Storage of Inventory
0.18
Price Increases, Cost Over Runs, Unanticipated Costs, @ 12% (50% CI, 50% OC)
1.95
0.98
0.98
TOTAL COSTS - SINGLE FACILITY INSTALLATION AND FIRST YEAR OF OPERATIONS
18.23
7.16
11.08
0.30
4.50
0.09
0.18
15.E • OGL Expenses as Paid Out Over Year One for the First Facility Development and Licensing:
EXPENDITURE SCHEDULE OVER YEAR ONE (MILS)
ITEM
1ST QTR
2ND QTR
Air-Inflated Structure & Site Work & Parking (Las Vegas)
$
0.75
$
1.25
Profit Centers – (Las Vegas, 75% CI, 25% OC)
$
0.60
$
0.60
Video/Media Centers and Installation (only required at startup)
$
0.02
Ancillary Products, 1 Year Inventory (Las Vegas)
Land Lease, as Paid Out (Las Vegas)
Advertising/Promotion/PR/Website (Las Vegas AND Licensing)
$
0.25
3RD QTR
$
4TH QTR
1.50
TOTAL
$
3.50
$
1.20
$
0.10
$
0.20
$
0.32
$
0.40
$
0.50
$
0.50
$
1.40
$
0.30
$
0.30
$
0.30
$
0.90
$
0.25
$
0.25
$
0.35
$
1.10
$
1.10
$
1.10
Facility Staffing, (2 shifts, 25 staff per shift @ $250 per employee/day)
Salaries/OGL, Trainers and Office Staff (Staff added per expansion needs)
$
0.10
$
0.12
$
0.14
$
0.14
$
0.50
Parabounce Units Equipment and Accessories (20 units @ 50K each)
$
0.10
$
0.20
$
0.30
$
0.40
$
1.00
Prop-Bike Units Equipment and Accessories (5 units @ 50K each)
$
0.05
$
0.05
$
0.05
$
0.10
$
0.25
$
0.06
$
0.06
$
0.12
Equipment Installation (required only at operation startup)
Licenses/Permits/Legal Fees (Las Vegas, 50% CI, 50% OC)
$
0.05
$
0.05
$
0.04
$
0.04
$
0.18
$
0.02
$
0.03
$
0.07
$
0.12
Fuel/Helium/Equipment (Las Vegas)
$
0.18
$
0.19
$
0.37
Insurance (Las Vegas AND Licensing)
$
0.03
$
0.04
$
0.07
0.12
Utilities (Las Vegas)
Accounting (Las Vegas AND Licensing)
$
0.03
$
0.03
$
0.03
$
0.03
$
Architectural/Consulting/Engineering (Las Vegas AND Licensing)
$
0.03
$
0.03
$
0.06
$
0.06
$
0.18
$
0.05
$
0.05
$
0.10
0.12
Training and Instruction (Las Vegas AND Licensing)
Food/Lodging, Misc. Incidentals (Las Vegas AND Licensing)
$
0.02
$
0.02
$
0.03
$
0.05
$
Transportation/Storage of Inventory (Las Vegas AND Licensing)
$
0.04
$
0.04
$
0.04
$
0.06
$
0.18
Parabounce Units Equipment and Accessories (For Sale to Licensees)
$
0.05
$
0.08
$
0.09
$
0.22
Prop-Bike Units Equipment and Accessories (For Sale to Licensees)
$
0.03
$
0.07
$
0.08
$
0.18
Parabounce Retail Branded Product Inventory (For Sale to Licensees)
$
0.10
$
0.10
$
0.20
$
0.40
$
0.01
$
0.01
Equipment Installation (Service to Licensees)
Fuel/Production Equipment/Office Equipment (As Related to Licensing)
$
0.02
Licenses/Permits/Legal Fees (As Related to Licensing)
Office Lease and Utilities (As Related to Licensing)
$
0.02
$
0.03
$
0.05
$
0.12
$
0.02
$
0.02
$
0.03
$
0.07
0.03
$
0.01
$
0.01
$
0.01
$
Unanticipated Costs @12%
$
0.25
$
0.44
$
0.49
$
0.48
$
1.66
COSTS AS DISPENSED OVER FIRST YEAR
$
2.31
$
4.13
$
4.59
$
4.49
$
1 5.52
8.50
$
8 .50
$
2.31
$
4.13
$
4.59
(4.01) $
7 .02
OFFSETTING INCOME FROM FACILITY AND LICENSING IN 4TH QTR
$
NET FUNDS REQUIRED IN FIRST YEAR (AS PAID OUT)
8
$
15.F • Facility Development Timeline - Las Vegas or 100k Sq. Ft. Facility
LAS VEGAS INSTALLATION
TASKS
MONTH 1
1
2
3
MONTH 2
4
5
6
7
MONTH 3
8
MONTH 4
MONTH 5
MONTH 6
MONTH 7
MONTH 8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
COLOR KEY
LEASE
LANDLORD/PROPERTY BUSINESS
CONTRACT AE FIRM
A/E FIRM BUSINESS
INVENTORY DESIGN MODIFICATIONS
ADVANCED HYBRID AIRCRAFT
PR/PRESS RELEASE
PRESS/PR
ACCOUNTING/RECORDS
INSURANCE
PRELIM PLAN CHECK
PLANS & DRAWINGS/SITE
DESIGNATE ARCADE SUBS
ARCADES/PROFIT CENTERS
RIDE PERMIT CHECK
RIDE PERMITS
RESEARCH SLOTS
GAMING
DESIGN FACADE
BUILDING DESIGN
DESIGN & ORDER BUILDING
ASATI BUSINESS/BUILDING
INSURANCE CONTRACT
STAFF/PERSONNEL
SUPPLIER CONTRACTS W/HA
ACCOUNTING
SHIP HARNESS & PARTS TO HA
SITE WORK/GRADING
JOB DESCRIPTIONS
HELIUM RELATED
DESIGN ARCADES
VIDEO & SFX SYSTEMS
GRADING PERMIT
BALLOON DESIGN/SPECS
INVENTORY MFG.
BUILDING ELEC/MECH
BUILDING MFG. & SHIPPING
ARCADE/INTERIOR ELEC/MECH/LIGHT
DESIGN REVIEW/PLAN CHECK
BUILDING FRONT FACADE
HELIUM SUPPLIER & CONTRACT
BUILDING/DOME INSTALLATION
CONTRACT VIDEO & SFX
SIGNAGE AND GRAPHICS
GRADING & SITE/FOUNDATION
SOUND SYSTEMS
BREAK GROUND
FOOD COURT
INSTALL HOLD DOWNS
SHIPPING OF INVENTORY
ORDER ARCADES
INSTALL RIDES
SITE ELEC, MECH & PLUMB
EXTERIOR RESTROOMS
RECRUIT STAFF/TRAINING
SYSTEMS TESTING
INSTALL FACADE
OPERATIONS ADJUSTMENTS
BUILDING INSTALL
BEGIN OPERATION
SIGNAGE/GRAPHICS INSTALL
INSTALL FOOD COURT
BALLOON/BIKES SHIPMENT
INSTALL INTERIOR ELECTRICAL/MECH
INSTALL VIDEO SFX SYSTEMS
HELIUM SUPPLY/STORAGE INSTALL
INSTALL ARCADES/PROFIT CTRS
INSTALL SOUND/AUDIO SYSTEMS
INSTALL BALLOONS/BIKES
INSTALL EXTERIOR RESTROOMS
TEST ALL SYSTEMS
BEGIN OPERATION
ADJUST OPERATIONS AS REQD.
9
XIII. Press, Publicity & Images
Also see the “In the News” section of the ParaBounce Website: www.ParaBounce.com
10
11
The Snapple White Tea Promotion and National Tour. Bryant Park, New York City, 2006
12
The President’s Party. The White House 2000.
13
“One Giant Leap for Humanity” Charity Event
Conceived and Created by One Giant Leap, LLC
®
ParaBounce raised over $750,000 at the single day event. All funds were donated to:
Caring for Babies with Aids, Breast & Prostate Cancer, D.A.R.E. and We Care About Kids
Co-Chairs for OGL were Al Gore and Sidney Poitier
14
The President’s Party. The White House 2000.
15
The PropBike™ • Pedal-Powered Aerostat
16
®
ParaBounce in the Closing Ceremonies of the 2002 Olympic Winter Games, Salt Lake City
17
®
The ParaBounce Story
18
®
Planned ParaBounce Installations
19
Rendering of the ParaBounce Dome Interior
20
Business Week article about OGL Founder, Stephen Meadows
21