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PART 1: BUSINESS PLAN | CONFIDENTIAL
SolarQuest L3C, Business Plan, Part 1 | FN: 001_01_SQ_L3C_26_MAR_2015_VSBOE_P1 Page 1 of 58
S O L A R Q U E S T , L 3 C A Vermont Low-Profit Limited Liability Company (L3C)
EXCLUSIVE RESELLER
Image: iGlobe® iPad Controller App
I GL OB E ® D I GI T AL V I DE O GL OB E (DVG)
I N S T R U C T I O N A L T E C H N O L O G Y S O F T W A R E
BUSINESS PLAN
M A R C H , 2 0 1 5
Prepared by:
Allan E. Baer, President & Managing Member
39 Beacon Hill, Chelsea, Vermont 05038
abaer@solarquest.us | 802.279.9750
Notice: This Business Plan is confidential and contains proprietary information of SolarQuest L3C (herein the “Company”). Neither this
Business Plan nor any of the information contained in this Business Plan, including any and all other documents pertaining to the proposed
business activities described herein, may be reproduced or disclosed to any other parties in any form, including electronic transmission,
without express written permission of the Company.
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S O L A R Q U E S T , L 3 C A Vermont Low-Profit Limited Liability Company (L3C)
(HEREIN, “THE COMPANY”)
DISCLOSURE STATEMENTS
SOLARQUEST L3C IS A VERMONT-BASED LOW-PROFIT LIMITED LIABILITY COMPANY (L3C) ORGANIZED IN
COMPLIANCE STATE OF VERMONT CORPORATE LAW (11 V.S.A. CH.21 GENERALLY, AND 11 V.S.A. § 3001(27),
SPECIFICALLY, TO FURTHER THE ACCOMPLISHMENT OF ONE OR MORE CHARITABLE OR EDUCATIONAL
PURPOSES WITHIN THE MEANING OF SECTION 170(C)(2)(B) OF THE INTERNAL REVENUE CODE OF 1986, 26 U.S.C. §
170(C)(2)(B). THE COMPANY IS OFFERING SECURITIES UNDER THE STATE OF VERMONT SMALL BUSINESS
OFFERING EXEMPTION (VSBOE), VERMONT DEPARTMENT OF FINANCIAL REGULATION RULE NO. S-2014-1.
INVESTMENT IN THESE SECURITIES INVOLVES SIGNIFICANT RISKS AND IS SUITABLE ONLY FOR PERSONS WHO
HAVE NO NEED FOR IMMEDIATE LIQUIDITY IN THEIR INVESTMENT AND WHO CAN BEAR THE ECONOMIC RISK
OF A LOSS OF THEIR ENTIRE INVESTMENT. INVESTORS SHOULD BE AWARE THAT THEY MAYBE REQUIRED TO
BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER
AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE
NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY.
FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE
ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT OF 1933 AND THE VERMONT
UNIFORM SECURITIES ACT PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
THE SECURITIES REPRESENTED HEREIN AND IN THE COMPANY OPERATING AGREEMENT ARE SUBJECT TO SALE
EXCLUSIVELY TO RESIDENTS OF THE STATE OF VERMONT. A STATEMENT AND/OR CERTIFICATE OF RESIDENCY
PROVIDED BY THE ISSUER AND EXECUTED BY THE PURCHASER OF MUST OBTAINED PRIOR TO SALE OF THE
SECURITY.
THE ISSUER SHALL NOT ACCEPT MORE THAN TEN THOUSAND DOLLARS ($10,000.00) FROM ANY SINGLE
PURCHASER UNLESS THE PURCHASER IS AN ACCREDITED INVESTOR AS DEFINED BY RULE 501 OF SEC
REGULATION D, 17 C.P.R. 230.501.
PRIOR TO THE SALE OF SECURITIES TO THE PURCHASER, THE COMPANY SHALL OBTAIN CERTIFICATION FROM
EACH PROSPECTIVE INVESTOR THAT THEY HAVE READ AND UNDERSTOOD THE OFFERING DOCUMENT AND
THE RISKS ASSOCIATED WITH THIS INVESTMENT, AND THAT THE PROSPECTIVE INVESTOR IS CAPABLE OF
MAKING SUCH A DETERMINATION.
THIS OFFERING HAS NO MINIMUM RAISE AMOUNT. THE COMPANY IS A STARTUP COMPANY AND HAS NO
AUDITED FINANCIAL STATEMENTS. A DISCUSSION OF FINANCIAL CONDITION IS CONTAINED IN EXHIBIT B.
THE ISSUER, AS STATED BY IT DULY APPOINTED REPRESENTATIVE, CERTIFIES THAT REASONABLE EFFORTS TO
VERIFY THE MATERIAL ACCURACY AND COMPLETENESS OF THE INFORMATION THEREIN CONTAINED.
DULY APPOINTED REPRESENTATIVE,
ALLAN E. BAER, PRESIDENT AND MANAGING MEMBER
SOLARQUEST L3C
DATE: MARCH 26, 2015
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Table of Contents
Introduction 6
Section 1. The Company 7
1.1. Business Structure & Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.2. Mission, Goals & Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.3. Funding Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 2. DVG Technology 8-10
2.1. What is Digital Video Globe (DVG) Technology? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.2. DVG Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.3. DVG Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Section 3. Competition & Product Pricing 11-12
3.1. Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.2. iGlobe® DVG “Flat-Screen” Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12
3.3. Tiered Pricing Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section 4. Science Standards & Curriculum 13-21
4.1. Next Generation Earth & Space Science Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-15
4.2. Middle School, Grade Levels 6-8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15-17
4.3. High School (HS), Grade Levels 9-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17-21
Section 5. DVG Research & Development 22-26
5.1. Action Research-based Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-23
5.2. Action Research Cooperative Agreement Marketing Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . 23-25
5.3. Advanced, Integrated SD Modeling and DVG Instructional Technologies. . . . . . . . . . . . . . . . 26
Section 6. Research Team & Key Company Personnel 27-32
6.1. Research Collaborative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
6.2. Key Research Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
6.3. Institutional Research Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
6.4. K-12 Field Research Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
6.5. Key Company Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
6.6. Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-32
Section 7. U.S. Public School Market 33-34
7.1. DVG Market Projection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
7.2. K-12 Public School Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
7.3. All Instructional Materials (AIM) Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
7.4. Student Access & Cost of DVG Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
7.5. Market Behavior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Section 8. Marketing Plan 35-37
8.1. Direct eMail Marketing & Revenue Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
8.2. Preliminary eMail Marketing Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
8.3. Professional Development Training & Direct Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
8.4. Priority Geographic Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
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Section 9. Revenue Model 38-41
9.1. Direct Sales Revenue Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
9.2. Subsidy-based Sales Revenue Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
9.3. Sponsorships, Charitable Grants, Competitive Research Grant Awards. . . . . . . . . . . . . . . . . 39
9.4. iglobe.today™ Subscription Sales and Commercial Advertising . . . . . . . . . . . . . . . . . . . . . . . . 39-41
Section 10. Preliminary Pro Forma 42-45
10.1. Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
10.2. Year-1 Monthly Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43-47
10.3. Year-2 thru Year-6 Revenue & Expense - Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46-48
Section 11. Risks, Risk Management, Disclosures & Opportunities 49-52
11.1. Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
11.2. Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-50
11.3. Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51-52
Section 12. Opportunities 53-55
12.1. National Ocean Sciences Competition for High School Students . . . . . . . . . . . . . . . . . . . . . . . 53-54
12.2. Green Earth Corps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54-55
Section 13. The Offer 56-57
13.1 Member Classification(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
13.2 General Terms of the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56-57
13.3 Classification, Number and Price of Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
13.4 Minimum Investment / Unaccredited Investor Limit / Special Conditions . . . . . . . . . . . . . . . 57
List of Tables
Table 1. Tiered Pricing Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Table 2. K-Grade-5 ESS2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Table 3. MS-ESS2: Earth Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Table 4. MS-ESS3: Earth & Human Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Table 5. HS-ESS2 – Earth Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Table 6. HS-ESS3 – Earth & Human Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Table 7. K-12 Field Research Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Table 8. K-12 School Market Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Table 9. U.S. Science Teacher Universe K-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Table 10. Top U.S. School Districts by AIM Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Table 11. School AIM Expenditure Revenue Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Table 12. Advertising Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Table 13. Printing, Handling & Shipping Costs per School . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Table 14. Subsidized Revenue Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Exhibits
Exhibit A. Business Registration
Exhibit B. Discussion of Financial Condition / Financial Risk
Exhibit C. Strategic Partnerships
Exhibit D. Reseller Agreement, iGlobe®, Inc. Patents
Exhibit E. DVG Equipment Requirements
Exhibit F. Vermont State Department of Financial Regulation
Exhibit G. Statements of Interest
Exhibit H. Risk & Risk Management
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List of Acronyms
AIM All Instructional Materials T21 Threshold 21
ATDD A-Train Data Depot UNFCCC United Nations Framework Convention on Climate Change
CDM Clean Development Mechanism UNT University of North Texas
CHANGE Climate & Health Analysis for Global Education U.S.C. United States Code
CGI Clinton Global Initiative VSA Vermont Statutes
CGI-U Clinton Global Initiative - University VSBOE Vermont Small Business Offering Exemption
CIESIN Center for International Earth Science Information Network 3D 3-Dimensional
CHNS Coupled Human & Natural Systems
COP Conference of Parties
DISC Data & Information Services Center
DVG Digital Video Globe
EC Enhanced Contrast
EERDC Educational Equipment Research & Development Center
EMC Emergent Media Center
EOSDIS Earth Observing Systems Data & Information System
ESD Education for Sustainable Development
ESRL Earth Systems Research Laboratory
ESS Earth & Space Science
GES Goddard Earth Sciences
GHG Greenhouse Gas
GIS Geographic Information Systems
HD High Density
HS High School
IAGT Institute for Advance Geospatial Technology
IES Institute of Education Sciences
IIP Industrial Innovation Partnership
IT Information Technology
ITEST Innovative Technology Experiences for Students & Teachers
ITTLL Institute for the Integration of Technology into Teaching & Learning
IUSE Improving Undergraduate STEM Education
K-12 Kindergarten through Grade 12
L3C Low-Profit Limited Liability Company
MS Middle School
MIT Massachusetts Institute of Technology
NASA National Aeronautics and Space Administration
NCES National Center for Education Statistics
NGSS Next Generation Science Standards
NOAA National Oceanic and Atmospheric Administration
NRC National Research Council
NSF National Science Foundation
NSTA National Science Teacher Association
OCO-2 Orbiting Carbon Observatory - 2
PCSL Productivity-centered Service-learning
POAC Program in Oceans, Atmosphere & Climate
RFP Request for Participation
SAM Social Accounting Matrix
SD Systems Dynamic
SEDAC Socioeconomic Data Application Center
SETT Simulated Enhanced Training for Teachers
SH Shipping & Handling
SIIA Software & Information Industry Association
SITE Society for Information Technology in Teacher Education
SMA Statistical Metropolitan Area
SOS Science On a Sphere
STEM Science, Technology, Engineering and Mathematics
STTR Small Business Technology Transfer
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Introduction
The Problem: STEM (Science, Technology, Engineering and Mathematics) education in U.S. public schools is in crisis. The
World Economic Forum ranks the U.S. 52nd in the quality of mathematics and science education. Recent results from the
Program for International Student Assessment (PISA) show that America's 15-year olds have slipped in international
rankings from 25th to 31st in math, and from 20th to 24th in science. SolarQuest L3C was established with the purpose to
improve the quality of STEM education with a singular focus: To enable every public school in America to have access to
Digital Video Globe (DVG) instructional technologies – at little or no cost – to support integrated STEM curriculum.
What are DVG technologies? And why should they be used in America’s public schools? A Digital Video Globe (DVG) is a
geospatial instructional technology that projects simulations of Earth Science data on a 360° globe or flat-screen display. The
experience is likened to viewing Earth from Space. It captures the interest of youth (and adults) and motivates them to
pursue STEM subjects by appealing to students’ natural inclination for spatial-based, visual learning. STEM research shows
that spatial ability (which can be assessed and improved utilizing DVG technologies) is the principal indicator for
identifying high-school students who pursue STEM careers and the main attribute among students who later achieve
advanced STEM educational and occupational credentials. Educational neuroscience research has found that geospatial
modeling (spatial organization) is an important method for transferring knowledge that has lasting implications for
neurocognitive development in young learners. These findings have far-reaching implications for how schools can design
their Earth Science programs and how teachers could structure educational experiences using DVG technologies.
Our Plan: Under a reseller agreement with iGlobe®, Inc. (Franklin, NH) and a strategic marketing partnership with The
Global Challenge Award, Inc. (a Vermont-based non-profit), SolarQuest L3C will provide iGlobe® Mini DVG Flat-screen
instructional technologies to K-12 public schools participating in the Carbon Research Collaborative (http://www.oco2.net).
The Collaborative is a Climate Action Research project sponsored by the Company and its strategic partners, including the
Program in Atmosphere, Oceans and Climate (POAC) of the Massachusetts Institute of Technology (MIT).
Our Revenue Model: Income is generated from merchant advertising sales in iglobe.today™, a public interest journal of the
Carbon Research Collaborative produced by SolarQuest L3C and distributed under a cooperative agreement between
Global Challenge and participating K-12 public schools. The Company measures its market potential, assuming direct
payment from All Instructional Materials (AIM) school budgets, at $210 million. Under the cooperative agreement subsidy
model, the Company’s 6-year enrollment goal of 1,265 schools (1.3% of our U.S. K-12 public school target market) is
projected to achieve a Pre-Tax Profit of $2.5 million per year by Year-6, and a Cash Balance of $5.3 million.
Our Need: The Company is seeking $1 million in funding in Year-1 (and an additional $1 million in Year-2) under a State of
Vermont Small Business Offering Exemption (VSBOE). The funds will be utilized to engineer the Apple iPad-based iGlobe®
DVG Mini Flat-screen with Cloud-based delivery, develop integrated STEM-based curriculum in alignment with Next
Generation Science Standards (NGSS), publish the iglobe.today™ journal and launch the Carbon Research Collaborative.
Market Response: Our preliminary marketing outreach has resulted in a potential 4.2% enrollment rate based upon school
submittals of a Statement of Interest. The Company has no competitor with an equivalent DVG technology platform. The
U.S. education market for DVG instructional technologies is virtually untapped (approximately 57 systems installed) due to
the high costs of internally projected desktop and pedestal display systems ranging in price from $17,500 to $43,000.
Allan E. Baer, Founder, President and Managing Member
The Company’s Founder and Managing Member, Allan E. Baer, is
a social entrepreneur and educator with over 30 years’ experience.
In excess of $6 million in recent STEM-based instructional
technology research grants and private investment in prior related
business activities have directly contributed to the knowledge,
experience and planning required for the success of the Company.
Thank you for your interest in SolarQuest L3C.
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Section 1, The Company
1.1. Business Structure & Purpose
SolarQuest L3C (hereinafter “Company”) is a Vermont-based Low-profit Limited Liability Company (L3C) organized in
compliance State of Vermont corporate law (11 V.S.A. Ch.21 generally, and 11 V.S.A. § 3001(27) specifically, to further the
accomplishment of one or more charitable or educational purposes within the meaning of Section 170(c)(2)(B) of the Internal
Revenue Code of 1986, 26 U.S.C. § 170(c)(2)(B). (Exhibit A.) The Company would not have been formed but for the
company's relationship to the accomplishment of one or more of the charitable or educational purposes of The Global
Challenge Award, Inc. (a Vermont non-profit corporation). (Exhibit C.) The purpose of the Company is to improve the
quality of Science, Technology, Engineering and Mathematics (STEM) education in America’s public schools, while
providing Triple Bottom Line benefits to its investors. The Company aims to achieve its purpose by:
(i) Developing integrated Systems Dynamic Modeling (SD Modeling) and Digital Video Globe (DVG)
instructional technology software and curriculum based upon the iGlobe® DVG technology
platform in collaboration with academic research partners;
(ii) Distributing iGlobe®-based integrated SD Modeling and DVG software and curriculum for use in
K-12 public and private schools under a strategic marketing partnership with The Global Challenge
Award, Inc. (Global Challenge), a Vermont-based non-profit corporation; and
(iii) Providing operating support and financial services for Global Challenge as the lead agency in
Carbon Research Collaborative (Collaborative), a STEM-based Climate Action Education program
utilizing the Company’s proprietary Productivity-centered, Service-learning pedagogy.
1.2. Mission, Goals & Objectives
The Company’s mission is to make it possible for every public school in America to have access to Digital Video Globe
(DVG) instructional software technologies – at little or no cost – under an Action Research Cooperative Agreement program
model with financial support, as required, from charitable giving, consumer-based crowdfunding and commercial
advertising in a public education program journal – iglobe.today™ (see Section 9.4).
The Company’s business goals are to:
(i) Assist Global Challenge in achieving a K-12 public school market penetration of 1.3%
(approximately 1,265 schools) within six years; and
(ii) Achieve a pre-tax profit (Revenue Less Expenses) of $2.5 million in Year-6 based upon advertising
sales in iglobe.today™ (see Section 10.2).
The Company’s business objectives are to:
(i) Demonstrate the efficacy of DVG instructional technologies to improve STEM education through
peer reviewed research within 4 years of business operations, and
(ii) Achieve market penetration of DVG instructional technologies at-scale in this U.S. public education
sector within 10 years of business operations.
1.3. Funding Requirement
The Company is seeking an initial investment of $1 million under the Vermont Small Business Offering Exemption (VSBOE)
to achieve its business purpose, mission, goals and objectives as defined above. Ref: Vermont Department of Financial
Regulation, Securities Division Regulation S-2014-1, http://www.dfr.vermont.gov/reg-bul-ord/guidance-preparing-offering-
documents-under-vsboe (Exhibit F). Additional VSBOE funding of $1 million may be required (as projected) in Year-2 for the
Company to achieve business goals and objectives.
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Section 2, DVG Technology
2.1. What is Digital Video Globe (DVG) Technology?
A Digital Video Globe (DVG) is a geospatial instructional technology incorporating a digital video projection system, a
sphere-shaped display screen, a desktop or portable computer and DVG operating software. Imagine looking at a globe of
the Earth, but instead of seeing a printed surface, you see geo-referenced data simulations and animations on a 360°
internally projected video display screen. The experience is likened to viewing Earth from Space.
DVG technologies are capable of displaying animations, visualizations and simulations of global data across a broad range
of subject matter. The primary use of DVG technology today is to display Earth Systems data from multiple sources –
orbiting satellites, aircraft and surface sensor networks – in order to better understand the impact of Coupled Human and
Natural Systems (CHNS) on Earth’s Biosphere.
Dr. Alexander C. MacDonald, Advisor for NOAA’s Office of Oceanic and Atmospheric Research and Director of the Earth
System Research Laboratory (ESRL) in Boulder (CO) is the inventor of Science On a Sphere® (SOS), and is credited for
bringing DVG technologies to the global market as a viable instructional technology. (See video link below.)
Science On a Sphere® (SOS) is a multimedia DVG system using five high-speed computers, advanced computer imaging
techniques for spherical screen display, and four strategically placed high lumen projectors. Early SOS systems cost in
excess of $250,000. Today, SOS multimedia DVG systems cost approximately $124,000 (plus installation and facility costs).
The SOS system requires a dedicated display area and daily maintenance to maintain calibration of the system’s computer
imaging software and hardware. Consequently, SOS multimedia DVG systems are not cost effective for the U.S. public
school market, although two SOS multimedia DVG systems have been installed in high schools with donor support. The
ESRL has installed more than one hundred SOS systems throughout the world, primarily in science museums, and operates
a traveling SOS exhibit. Science On a Sphere® exhibits are viewed by over 33 million visitors each year. See
http://sos.noaa.gov/What_is_SOS/sites.php
Web Link: NOAA Science on a Sphere® (SOS) http://sos.noaa.gov/What_is_SOS/
Video Link: https://www.youtube.com/watch?v=JU40wOlh5H0 Image: Science On a Sphere, Space Foundation, Colorado Springs
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2.2. DVG Content
Earth Science content for display on DVG technologies is developed principally by the National Aeronautics and Space
Administration (NASA), the National Oceanographic and Atmospheric Administration (NOAA), and America’s leading
universities, museums and research institutes. Content is posted to the Science On a Sphere® (SOS) Content Library, which
presently consists of 492 data sets, simulation models, overlays and videos, including near real-time weather and satellite
feeds. Simulations and visualization models include: anthropogenic carbon emissions modeling, sea level rise from melting
glaciers, ocean thermohaline conveyor circulation, global hydrology, seasonal biomass density, planetary thermodynamics,
global mean surface and sea water temperatures, and much more, including 94 movies that integrate numerous models.
Web Link: Content Library – Ref: http://sos.noaa.gov/Datasets/ (Sample Content, below.)
Sea Surface Salinity. Time Span: 0 hrs.
Run Time: 1 min. 13 sec.
Hrly. Water Vapor: Time Span: 60 yrs.
Run Time: 4 min. 52 sec.
Artic Sea Ice Model. Time Span: 3 yrs.
Run Tim:” 0 min. 35 sec.
Atmospheric Chem. Time Span: 6 mos.
Run Time: 7 min. 35 sec. / Video 3 min.
Movie: Changing Climate / Ocean
Run Time: 6 min. 30 sec.
Future Paleo. Time Span: 250 mm yrs.
Run Time: 1 min. 7 sec.
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2.3. DVG Data
Data displayed on DVG technologies are sourced principally from National Aeronautics and Space Administration (NASA)
orbiting satellites. NASA (and its international partners) operates several Earth-observing satellites that closely follow on the
same orbital “track.” This coordinated group of satellites, constituting a significant subset of NASA’s current operating
satellite missions, is called the Afternoon Constellation, or the “A-Train,” for short. (See below.)
Six satellites currently fly in the A-Train: Aura, GCOM-W1 (Glory), CALIPSO, CloudSat, Aqua, Aura and the Orbiting
Carbon Observatory 2 (OCO-2). A-Train satellites are in a polar orbit crossing the equator northbound within seconds to
minutes of each other. This allows near-simultaneous observations of the Biosphere in order to aid the scientific community
in advancing knowledge of Earth Systems science for the benefit of the public.
NASA has developed the A-Train Data Depot (ATDD) to process, archive and allow user access to data from this
constellation of satellites to visualize, analyze, correlate and distribute measurements from on-board instruments. NASA’s
Goddard Earth Sciences (GES) Data and Information Services Center (DISC) manages the ATDD portal to provide easy on-
line data access for scientific, commercial and educational use. Ref: http://disc.sci.gsfc.nasa.gov/atdd/data-holdings
Web Link: The NASA “A” Train, Ref: http://www.nasa.gov/mission_pages/a-train/#.VLqYVtLF-So
Additional data resources for use in developing DVG content are available from Earth Observing System Data and
Information System (EOSDIS). EOSDIS consists of a set of processing facilities and Earth Science Data Centers distributed
across the United States. EOSDIS ingests, processes, archives and distributes data from a large number of Earth observing
satellites. EOSDIS facilities serve hundreds of thousands of users around the world, providing hundreds of millions of data
files each year covering many Earth Science disciplines.
EOSDIS Earth Science Data Centers:
Alaska Satellite Facility SAR Data Center (ASF SDC);
Crustal Dynamics Data Information System (CDDIS);
Global Hydrology Resource Center (GHRC);
Goddard Earth Sciences Data and Information Services Center (GES DISC);
Land Processes Distributed Active Archive Center (LP DAAC);
Langley Research Center Atmospheric Science Data Center (LaRC ASDC);
MODIS Level 1 and Atmosphere Archive and Distribution System (MODAPS LAADS);
National Snow and Ice Data Center (NSIDC) DAAC;
Oak Ridge National Laboratory (ORNL) DAAC;
Ocean Biology Processing Group (OBPG);
Physical Oceanography (PO) DAAC; and
Socioeconomic Data and Applications Data Center (SEDAC).
Ref: https://earthdata.nasa.gov/about-eosdis/science-system-description/eosdis-components/eosdis-data-centers
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Section 3, Competition & Product Pricing
3.1. Competition
Internally projected DVG technologies in the United States are produced by three commercial vendors: Arc Science
Simulations (Loveland, Colorado), Global Imagination® (Santa Clara, California) and iGlobe® Inc. (Franklin, New
Hampshire). (NOAA’s SOS system is an externally projected DVG technology and is not considered a competitor.) All
producers have proprietary DVG software for image adaptation to a spherical display screen.
Arc Science: Arc Science Simulations, Inc. produces the OmniGlobe using a patented reflective dispersion optics
system with the coupling of two HD projectors combined with an EC (Enhanced Contrast) screen technology. Arc
Science is principally focusing on the museum market and does not have a presence in the K-12 education market.
Cost: Approx. for a 32-inch $39,500 spherical display. Ref: http://www.arcscience.com
Global Imagination®: Global Imagination® Inc. produces the Magic Planet® using a fisheye projector lens
installed in either a base unit or pedestal system. Global Imagination is a competitor in the K-12 DVG market with
about fifty K-12 systems installed. Cost: Approximately $39,000 for a 24-inch pedestal system with spherical
display; and approximately $17,500 for a 16-inch system. Ref: http://www.globalimagination.com
iGlobe®: iGlobe® Inc. produces the HyperGlobe® fisheye lens system installed in a base cabinet. iGlobe® Inc. is
the only DVG producer that offers a flat-screen viewing option combined with or apart from the HyperGlobe®,
and a 3D accessory for enhanced flat-screen viewing. Cost: Approx. $43,000 for a 24-inch diameter spherical
display. iGlobe® software is adaptable to both spherical- and flat-screen displays. Ref: http://www.iglobeinc.com
3.2. iGlobe® DVG “Flat-Screen” Option
The Company has concluded that a high resolution flat-screen DVG technology option offers an affordable imaging system
for multiple instructional technology devices and educational venues – tablets, desktop or portable computers, classroom
and/or auditorium-scale projection systems – with little compromise in image quality.
iGlobe®, Inc. is the sole producer of DVG technology that offers the option of a patented “flat-screen” DVG display
technology. (Exhibit D.) The Company has secured an exclusive reseller agreement (Exhibit D.) from iGlobe®, Inc. for
“standalone” flat-screen operating software at an annual wholesale subscription price point of $300. This pricing structure
allows the Company to resell subscription options at an average annual retail price of $2,743 (Section 3.3).
Image: iPad®-based iGlobe® Mini DVG
The Company, in collaboration with iGlobe®, Inc. and the Program and the
Program in Atmosphere, Oceans and Climate (PAOC) at the Massachusetts
Institute of Technology (MIT), is developing the iPad®-based iGlobe® Mini
(SMART Board and ENO Interactive compatible) with partial funding from
a National Science Foundation (NSF) Small Business Technology Transfer
(STTR) Phase I research grant ($224,978). NSF Award #1416970.
Image: SMART Board 885ix2
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The iPad®-based iGlobe® Mini will be coupled with content streamed from the Cloud. Development of this product with
Internet-based content streaming may result in cost reductions at a retail price point of $800 (teacher subscription only), with
annual student subscriptions at $5 if purchased with a teacher subscription.
Image: iGlobe Mini with 3D Display
The Company, in collaboration with iGlobe®, Inc., is
developing an optional 3D display screen for the iGlobe®
Mini at a retail cost of $210.26 (including shipping and
handling).
While 3D display screen is not affordable for classroom use,
it does offer the opportunity for the Company to develop a
consumer iGlobe® Mini 3D market sold exclusively through
Global Challenge as program cost subsidy. The retail price
of the iGlobe® Mini DVG with 3D lens and a one year
subscription is projected at $285.26 (including shipping and
handling).
3.3. Tiered Pricing Structure
The Company envisions a tiered pricing structure once iGlobe® Mini software, Cloud-based content delivery services and
product testing in the K-12 school market are completed (Table 1, below).
Table 1. Tiered Pricing Structure
Tier: Description: Pricing:
Tier 1, CPU-based
software installation
Teacher Access: iGlobe® software, DVG content and curriculum modules
installed on school Apple OSX 10.8 or better. Software, content and curriculum
provided on external hard drive. CPU installed software option provides the
potential for tablet mirroring with teacher control. Annual replacement of hard
drive with preloaded application software upgrades, new visualization software
and curriculum modules.
$4,750
Annual Subscription
Subsidy Program
Tier 2, Cloud-based
iGlobe® Mini App
Teacher Access: iGlobe® App available as free iPad download. Access to DVG
content and curriculum modules requires registration to Company cloud-based
service. No screen mirroring. Pricing based upon $800 classroom license plus $5
per student. Average teacher / school cost = $2,743
$2,743Avg. Annual
Subscription based upon
student enrollment.
Subsidy Program
Tier 3, Game-based
iGlobe® Mini App
Student Access: iGlobe® App available as free iPad download. Game
functionality and pricing TBD. Two versions planned: (i) integrated SD Modeling-
based DVG Service-learning game application; and (ii) Student peer-to-peer game
application.
Price TBD (Est. $15.00)
Annual Subscription
Student-driven Sponsor-
based Subsidy
Tier 4, Cloud-based
iGlobe® Mini App
Consumer Access: iGlobe® App available as free iPad download. Limited Cloud-
based access to DVG content. Annual Subscription Cost = $45.00 (Est.)
Price TBD (Est. $45.00)
Annual Subscription
The iGlobe® Mini software with Cloud-based content delivery services also provides an opportunity for game-based
software development. The Company has entered into a Memorandum of Understanding with the Emergent Media Center
(EMC) at Champlain College (Exhibit, C.) to assess the potential for DVG instructional technology game development. The
EMC’s portfolio of socially responsible video game applications includes such far-reaching partnerships as the United
Nation's game to end violence against women, the Ford Foundation wealth creation game, the Robert Wood Johnson
Foundation Cystic Fibrosis games, the Massachusetts General's CIMIT Emergency Response simulation, America's Army
game and an IBM virtual worlds project. Released in 2002, America's Army (AA) is the most successful serious game created
with over 8 million users. The annual subscription pricing target is $15.00.
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Section 4, Science Standards & Curriculum
4.1. Next Generation Earth and Space Science Standards
Integrated SD Modeling and DVG technologies provide an interactive, instructional technology toolkit for teachers to
support the implementation of Next Generation Science Standards (NGSS) in Earth and Space Science (ESS) in their
classrooms at all NGSS grade-levels and classifications: Grades K-5, Middle School (Grades 6-8) and High School (Grades 9-
12). Existing DVG-based content (Section 2.2) provides animations and visualizations of ESS-based models for NGSS
classifications in Earth Systems (ESS2) and Earth and Human Activity (ESS3) appropriate for most grade levels. The
Company plans to develop additional DVG content aligned to NGSS standards at all grade levels.
NGSS rely heavily upon the teaching of crosscutting concepts of patterns, cause and effect, systems and system models, and
interdependence of science, engineering, and technology beginning at early grade levels, including Kindergarten. Students
are expected to understand Systems Models of Earth’s Biosphere and construct an argument by analyzing and interpreting
data underlying the models as evidence to support a claim. Next Generation Science Standards also emphasize as core
concepts the principles of Coupled Human and Natural Systems (CHNS), the development and use of models to represent
relationships in the natural world, human impacts on natural systems, and the influence of engineering, technology and
science on society and the natural world. Given the complexity of NGSS, teachers recognize that iGlobe® integrated SD
Modeling and DVG instructional technologies are beneficial for teaching, learning and student assessment.
Today, the Company can deliver relevant DVG instructional support services to meet the modeling requirements for
various K-5 grade NGSS classifications in Earth Systems (ESS2) and Earth and Human Activity (ESS3), as follows:
Table 2. K-Grade-5 ESS2
Grade Level: Description of Inquiry: Performance Expectations:
Kindergarten What is the weather like today? How is
it different from yesterday?
Students are expected to develop understanding of patterns and variations in
local weather and the purpose of weather forecasting to prepare for, and
respond to, severe weather.
Grade 1 What happens when there is no
sunlight?
Students are expected to develop understanding of the relationship between
solar radiation and heat transfer in the biosphere that generates weather.
Grade 2 How does land change? What causes
land to change? What are the different
kinds of land and bodies of water?
Students are expected to develop an understanding that wind and water can
change the shape of the land, and to use models to identify and represent the
shapes and kinds of land and bodies of water on Earth.
Grade 3 What is typical weather in different
parts of the world and during different
times of the year? What happens to
living organisms when their
environment changes?
Students are expected to be able to organize and use data to describe typical
weather conditions and weather-related hazards. Students are expected to
develop an understanding of the idea that when the environment changes
some organisms survive and reproduce, some relocate, some move into the
transformed environment, and some die.
Grade 4 What are waves and what are some
things they can do? How can water, ice,
wind and vegetation change the land?
What patterns of Earth’s features can be
determined with the use of maps? What
is solar radiation and how is it related
to heat transfer in the Biosphere?
Students are expected to use a model of waves to describe patterns of
amplitude and wavelength, and develop understanding of the effects of
weathering or erosion by water, ice, wind, or vegetation. They apply their
knowledge of Earth processes to generate and compare multiple solutions to
reduce the impacts of such processes on humans. Students are expected to
analyze and interpret data from maps and models. Students are expected to
understand that energy can be transferred in the Biosphere by light and heat.
Grade 5 How much water can be found in
different places on Earth? How does
matter cycle through ecosystems?
Where does the energy come from?
Through the development of a model, students are expected to describe ways
the geosphere, biosphere, hydrosphere, and/or atmosphere interact. Using
models, students can describe movement of matter among plants, animals,
decomposers, and that all energy was once from the sun.
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The challenge for science teachers implementing NGSS standards today is access to readily available and affordable
instructional materials and technologies that render the complex concept of Coupled Human and Natural Systems (CHNS)
understandable to children in the cognitive development range of K-5 students.
Current DVG instructional technology content can support NGSS in Earth and Space Science (ESS) through model- and
simulation-based scientific inquiry as a cognitive learning process with increasing complexity at ascending grade levels.
Elementary school science teachers can utilize DVG flat-screen software to introduce students to basic concepts in ESS
utilizing iGlobe® flat-screen animations and visualizations, and real-time data feeds:
Sample Library Content:
Sea Surface Salinity. Time Span: 0 hrs.
Run Time: 1 min. 13 sec.
Hrly. Water Vapor: Time Span: 60 yrs.
Run Time: 4 min. 52 sec.
Artic Sea Ice Model. Time Span: 3 yrs.
Run Tim:” 0 min. 35 sec.
Image: Near-real-time Data Visualizations, Ref: http://earth.nullschool.net/
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Animations, visualizations, real-time and near-real-time data feeds displayed on iGlobe® flat-screen instructional
technologies for Grades K-5 will form the basis of student engagement in the practice of observing Earth from Space.
Students will utilize the remote sensing capabilities of the nation’s satellite fleet to collect data to develop and use models to
plan and carry out investigations analyzing and interpreting data, designing solutions, engaging in argument from
evidence, and obtaining, evaluating and communicating information. Emphasis will be placed on the identification of
subsystems within Earth Systems Science domains that are readily accessible to students through media, social interaction
and casual observation to reinforce experiential-based scientific inquiry.
4.2. Middle School, Grade Levels 6-8
Middle school performance expectations in Earth Space Science (ESS) build on the elementary school ideas and skills, and
allow middle school students to explain more in-depth phenomena central not only to ESS, but also to life and physical
sciences as well, including human health.
The Company will utilize existing content in the iGlobe® library offering and develop advanced integrated SD Modeling
and DVG instructional technologies to support the following Next Generation Science Standards (NGSS) in Earth and Space
Science classifications for Grades 6-8, as follows:
Table 3: MS-ESS2: EARTH SYSTEMS
Category: Performance Expectations: Clarification Statement:
MS-ESS2-1 Develop models to describe the cycling
of Earth’s materials and the flow of
energy that drives this process.
Emphasis is on the processes of melting, crystallization, weathering,
deformation, and sedimentation, which act together to form minerals and
rocks through the cycling of Earth’s materials.
MS-ESS2-2 Construct an explanation based on
evidence for how geoscience processes
have changed Earth’s surface at varying
time and spatial scales.
Emphasis is on how processes change Earth’s surface at time and spatial
scales (such as slow plate motions or the uplift of large mountain ranges,
rapid landslides or microscopic geochemical reactions), and how geoscience
processes (such as earthquakes, volcanoes, and meteor impacts) behave
gradually but are punctuated by catastrophic events.
MS-ESS2-3 Analyze and interpret data on
continental shapes and seafloor
structures to provide evidence of the
past tectonic plate motions.
Emphasis is on the similarities of rock and fossil types on different continents,
the shapes of the continents (including continental shelves), and the locations
of ocean structures (such as ridges, fracture zones, and trenches).
MS-ESS2-4 Develop a model to describe the cycling
of water through Earth’s systems
driven by energy from the sun and the
force of gravity.
Emphasis is on the ways water changes its state as it moves through the
multiple pathways of the hydrologic cycle. Examples of models can be
conceptual or physical.
MS-ESS2-5 Collect data to provide evidence for
how the motions and complex
interactions of air masses results in
changes in weather conditions.
Emphasis is on how air masses flow from regions of high pressure to low
pressure, causing weather (defined by temperature, pressure, humidity,
precipitation, and wind) at a fixed location to change over time, and how
sudden changes in weather can result when different air masses collide.
Examples of data can be provided to students (such as weather maps,
diagrams, and visualizations) or obtained through laboratory experiments.
MS-ESS2-6 Develop and use a model to describe
how unequal heating and rotation of
the Earth cause patterns of atmospheric
and oceanic circulation that determine
regional climates.
Emphasis is on how patterns vary by latitude, altitude, and geographic land
distribution. Emphasis of atmospheric circulation is on the sunlight-driven
latitudinal banding, the Coriolis effect, and resulting prevailing winds;
emphasis of ocean circulation is on the transfer of heat by the global ocean
convection cycle, which is constrained by the Coriolis effect and the outlines
of continents. Examples of models can be diagrams, maps, globes, or digital
representations.
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Table 4: MS-ESS3: EARTH & HUMAN ACTIVITY
Category: Performance Expectations: Clarification Statement:
MS-ESS3-1 Construct a scientific explanation based
on evidence for how the uneven
distributions of Earth’s mineral, energy,
and groundwater resources are the
result of past and current geoscience
processes.
Emphasis is on how these resources are limited and typically non-renewable,
and how their distributions are significantly changing as a result of removal
by humans. Examples of uneven distributions of resources as a result of past
processes include but are not limited to petroleum (locations of the burial of
organic marine sediments and subsequent geologic traps), metal ores
(locations of past volcanic and hydrothermal activity associated with
subduction zones), and soil (locations of active weathering).
MS-ESS3-2 Analyze and interpret data on natural
hazards to forecast future catastrophic
events and inform the development of
technologies to mitigate their effects.
Emphasis is on how some natural hazards, such as volcanic eruptions and
severe weather, are preceded by phenomena that allow for reliable
predictions, but others, such as earthquakes, occur suddenly and with no
notice, and thus are not yet predictable. Examples of natural hazards can be
taken from interior processes (such as earthquakes and volcanic eruptions),
surface processes (such as mass wasting and tsunamis), or severe weather
events (such as hurricanes, tornadoes, and floods). Examples of technologies
can be global (such as satellite systems to monitor hurricanes or forest fires).
MS-ESS3-3 Apply scientific principles to design a
method for monitoring and minimizing
a human impact on the environment.
Emphasis is on examining human environmental impacts, assessing the kinds
of solutions that are feasible, and designing and evaluating solutions that
could reduce that impact. Examples of human impacts can include water
usage (such as the withdrawal of water from streams and aquifers or the
construction of dams and levees), land usage (such as urban development,
agriculture, or the removal of wetlands), and pollution (such as of the air,
water, or land).
MS-ESS3-4 Construct an argument supported by
evidence for how increases in human
population and per-capita consumption
of natural resources impact Earth’s
systems.
Emphasis is on databases on human populations and the rates of
consumption of food and natural resources (such as freshwater, mineral, and
energy). Examples of impacts can include changes to the appearance,
composition, and structure of Earth’s systems as well as the rates at which
they change.
MS-ESS3-5 Ask questions to clarify evidence of the
factors that have caused the rise in
global temperatures over the past
century.
Emphasis is on human activities (such as fossil fuel combustion, cement
production, and agricultural activity) and natural processes (such as changes
in incoming solar radiation or volcanic activity). Examples of evidence can
include tables, graphs, maps and visualizations of global and regional
temperatures, atmospheric levels of gases such as carbon dioxide and
methane, and the rates of human activities. Emphasis is on the major role that
human activities play in causing the rise in global temperatures.
The Company, in collaboration with the Institute for the Application of Geospatial Technology (IAGT) and the Center for
International Earth Science Information Network (CIESIN) of the Earth Institute at Columbia University, will improve upon
the functionality of the iGlobe® DVG instructional technology platform utilizing the Climate & Health Analysis for Global
Education (CHANGE Viewer). (Exhibit C.) Ref: http://www.iagt.org/
CHANGE Viewer, developed by the IAGT and CIESIN with funding from the NASA Innovations in Climate Education
Initiative, is an integrated SD Modeling and DVG software visualization tool utilizing NASA World Wind and data sets
from NASA’s Socioeconomic Data Application Center (SEDAC), operated by CIESIN. Ref: http://sedac.ciesin.columbia.edu/
CHANGE Viewer provides a menu-driven interface with SEDAC data sets that integrates and applies socioeconomic and
Earth Science data to generate on-demand scenarios of Coupled Natural and Human Systems (CHNS) that supports an in-
depth analysis of Earth’s biosphere (and the interaction of subsystems of the Biosphere) in the context of impacts on human
populations in their communities and across the globe.
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Image: CHANGE Viewer, Ref: http://nice.larc.nasa.gov/node/99 and http://www.ciesin.org/gcce/
The Company’s SD Model- and DVG-based instructional technologies provide middle school teachers with NGSS-based
ESS2 and ESS3 curriculum support that will allow students to:
(i) Examine the role of the NASA satellite fleet and Earth Observing System Data and Information System
(EOSDIS), including the Orbiting Carbon Observatory (OCO-2), the A-Train and SEDAC (see Section
2.3.), in collecting data that is the scientific basis for understanding changes in the dynamics of Natural
Systems; and
(ii) Survey the global sources of carbon dioxide (CO2) emissions to examine the scientific evidence of global
warming and explore the potentially catastrophic impacts of anthropogenic CO2 emissions on
ecosystems services and human populations.
CHANGE Viewer places emphasis upon thermodynamic variables across subsystems in the Earth’s Biosphere, and how
greenhouse gases (GHG) alter climate and weather, impact sea level rise, accelerate melting of the polar ice caps, contribute
to severe droughts and flooding, cause extreme weather events and other observable changes in the Biosphere that impact
human health.
Middle school students will be provided with an in-depth introduction to STEM-based education and career pathways in
the scientific research community, and explore how the scientific community impacts other career choices across all sectors
of society, including government and industry.
Students will examine the personal profiles of individuals in the research community responsible for Earth Systems
monitoring, developing and operating the NASA satellite fleet, maintaining data repositories, and developing DVG
technologies.
The Company will also provide profiles of various professional users of the datasets from all sectors of society, including
professionals in the insurance and banking industries, disaster management services, health care, agriculture, real estate
development, consumer retail industries and the information technology sector. Today, 1 in 3 new jobs require some
knowledge and capacity to understand geo-referenced data, and geo-referenced data impacts all users of technology, from
computers to tablets and smart phones.
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4.3. High School (HS), Grade Levels 9-12
The performance expectations in HS-ESS2: Earth’s Systems require students to formulate an answer to the question: “How
and why is Earth constantly changing?” The HS-ESS2 Disciplinary Core Idea from the NRC Framework is broken down into
five sub-ideas: Earth materials and systems, plate tectonics and large-scale system interactions, the roles of water in Earth’s
surface processes, weather and climate, and biogeology.
Students are required to develop models and explanations for the ways that feedbacks between different Earth systems
control the appearance of Earth’s surface. Central to this is the tension between internal, geological systems which are
largely responsible for creating land at Earth’s surface, and the sun-driven surface systems that tear down the land through
weathering and erosion. Students are required to examine the ways that human activities cause feedbacks that create
changes to other systems, and understand the system interactions that control weather and climate, with a major emphasis
on the mechanisms and implications of climate change. Students are expected to model the flow of energy between different
components of the weather system and how this affects chemical cycles, such as the carbon cycle. The crosscutting concepts
of cause and effect, energy and matter, structure and function and stability and change are called out as organizing concepts
for these disciplinary core ideas. In the HE-ESS2 performance expectations, students are expected to demonstrate
proficiency in developing and using models, planning and carrying out investigations, analyzing and interpreting data,
engaging in argument and using these practices to demonstrate understanding of the core ideas.
The performance expectations in HS-ESS3: Earth and Human Activity require students formulate an answer to the question:
“How do Earth’s surface processes and human activities affect each other?” The HS-ESS3 Disciplinary Core Idea from the
NRC Framework is broken down into four sub-ideas: natural resources, natural hazards, human impact on Earth systems,
and global climate change. Students are required to understand the complex and significant interdependencies between
humans and the rest of Earth’s systems through the impacts of natural hazards, human dependencies on natural resources,
and the significant environmental impacts of human activities. Engineering and technology figure prominently as students
use mathematical thinking and the analysis of geoscience data to examine and construct solutions to the many challenges
facing long-term human sustainability on Earth. The crosscutting concepts of cause and effect, systems and system models,
and stability and change are called out as organizing concepts for these disciplinary core ideas. In the HS-ESS3 performance
expectations, students are expected to demonstrate proficiency in mathematical and computational thinking by using,
analyzing and interpreting data, constructing explanations, designing solutions, engaging in argument; and using these
practices to demonstrate understanding of the core ideas.
NGSS-based HS-ESS2 (Human Systems) and HS-ESS3 (Earth and Human Activity) performance expectations blend the core
ideas related to climate change with scientific and engineering practices and crosscutting concepts to support high school
students in the development of useable knowledge to explain ideas across the science disciplines.
The core emphasis is on students:
Developing models and explanations for the ways that feedbacks between different Earth systems
control the appearance of Earth’s surface;
Examining the ways that human activities cause feedbacks that create changes to other systems;
Understanding the system interactions that control weather and climate, with a major emphasis on the
mechanisms and implications of climate change;
Modeling the flow of energy between different components of the weather system and how this affects
chemical cycles, such as the carbon cycle;
Understanding the complex and significant interdependencies between humans and the rest of Earth’s
systems through the impacts of natural hazards, our dependencies on natural resources, and the
significant environmental impacts of human activities; and
Analyzing geoscience data to examine and construct solutions to the many challenges facing long-term
human sustainability on Earth.
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The Company will utilize existing content in the NOAA Content Library and develop advanced integrated SD Modeling
and DVG instructional technology functionality to support the following Next Generation Science Standards (NGSS) in
Earth and Space Science (HS-ESS2: Earth Systems and HS ESS3: Earth and Human Activity) classifications for Grades 9-12,
as follows:
Table 5: HS-ESS2 – EARTH SYSTEMS
Category: Performance Expectations: Clarification Statement:
HS-ESS2-1 Develop a model to illustrate how
Earth’s internal and surface processes
operate at different spatial and
temporal scales to form continental and
ocean-floor features.
Emphasis is on how the appearance of land features (such as mountains,
valleys, and plateaus) and sea-floor features (such as trenches, ridges, and
seamounts) are a result of both constructive forces (such as volcanism,
tectonic uplift, and orogeny) and destructive mechanisms (such as
weathering, mass wasting, and coastal erosion).
HS-ESS2-2 Analyze geoscience data to make the
claim that one change to Earth’s surface
can create feedbacks that cause changes
to other Earth systems.
Emphasis is on climate feedbacks, such as how an increase in greenhouse
gases causes a rise in global temperatures that melts glacial ice, which reduces
the amount of sunlight reflected from Earth’s surface, increasing surface
temperatures and further reducing the amount of ice. Examples could also be
taken from other system interactions, such as how the loss of ground
vegetation causes an increase in water runoff and soil erosion; how dammed
rivers increase groundwater recharge, decrease sediment transport, and
increase coastal erosion; or how the loss of wetlands causes a decrease in local
humidity that further reduces the wetland extent.
HS-ESS2-3 Develop a model based on evidence of
Earth’s interior to describe the cycling
of matter by thermal convection.
Emphasis is on both a one-dimensional model of Earth, with radial layers
determined by density, and a three-dimensional model, which is controlled by
mantle convection and the resulting plate tectonics. Examples of evidence
include maps of Earth’s three-dimensional structure obtained from seismic
waves, records of the rate of change of Earth’s magnetic field (as constraints
on convection in the outer core), and identification of the composition of
Earth’s layers from high-pressure laboratory experiments.
HS-ESS2-4 Use a model to describe how variations
in the flow of energy into and out of
Earth’s systems result in changes in
climate.
Emphasis is on the causes of climate change by timescale. Large volcanic
eruption: 1 year; changes in human activity: 10-100s of years; ocean circulation
and solar output: 100s of thousands of years; changes to Earth’s orbit and the
orientation of its axis: 1,000s to millions of years.
HS-ESS2-5 Plan and conduct an investigation of
the properties of water and its effects
on Earth materials and surface
processes.
Emphasis is on mechanical and chemical investigations with water and a
variety of solid materials to provide the evidence for connections between the
hydrologic cycle and interactions with other systems. Examples of
investigations include stream transportation and deposition using a stream
table, erosion using variations in soil moisture content. Examples of chemical
investigations include chemical weathering, recrystallization or melt
generation.
HS-ESS2-6 Develop a quantitative model of carbon
cycling across systems: hydrosphere,
atmosphere, geosphere, and biosphere.
Emphasis is on modeling biogeochemical cycles that include the cycling of
carbon through the ocean, atmosphere, soil, and biosphere (including
humans), providing the foundation for living organisms.
HS-ESS2-7 Construct an argument based on
evidence of simultaneous coevolution
of Earth’s systems and life on Earth.
Emphasis is on the dynamic causes, effects, and feedbacks between the
biosphere and Earth’s other systems, whereby geoscience factors control the
evolution of life, which in turn continuously alters Earth’s surface. Examples
include how photosynthetic life altered the atmosphere through the
production of oxygen, which in turn increased weathering rates and allowed
for the evolution of animal life.
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Table 6: HS-ESS3 – EARTH AND HUMAN ACTIVITY
Category: Performance Expectations: Clarification Statement:
HS-ESS3-1 Construct an explanation based on
evidence for how the availability of
natural resources, occurrence of natural
hazards, and changes in climate have
influenced human activity.
Emphasis is on key natural resources include access to fresh water (such as
rivers, lakes, and groundwater), regions of fertile soils such as river deltas,
and high concentrations of minerals and fossil fuels. Examples of natural
hazards can be from interior processes (such as volcanic eruptions and
earthquakes), surface processes (such as tsunamis, mass wasting and soil
erosion), and severe weather (such as hurricanes, floods, and droughts).
Examples of the results of changes in climate that can be focused on mass
migrations of human populations in response to changes to sea level, regional
patterns of temperature and precipitation, and the types of crops and
livestock that can be raised.
HS-ESS3-2 Evaluate competing design solutions
for developing, managing, and utilizing
energy and mineral resources based on
cost-benefit ratios.
Emphasis is on the conservation, recycling, and reuse of resources (such as
minerals and metals) where possible, and on minimizing impacts where it is
not. Examples include developing best practices for agricultural soil use,
mining (for coal, tar sands, and oil shales), and pumping (for petroleum and
natural gas). Science knowledge indicates what can happen in natural
systems—not what should happen.
HS-ESS3-3 Create a computational simulation
using multi-parameter programs or
constructing simplified spreadsheet
calculations to illustrate relationships
among management of natural
resources, the sustainability of human
populations and biodiversity.
Emphasis is on factors that affect the management of natural resources
include costs of resource extraction and waste management, per-capita
consumption, and the development of new technologies. Examples of factors
that affect human sustainability include agricultural efficiency, levels of
conservation, and urban planning.
HS-ESS3-4 Evaluate or refine a technological
solution that reduces impacts of human
activities on natural systems.
Emphasis is on measuring the impacts of human activities, include the
quantities and types of pollutants released, changes to biomass and species
diversity, or areal changes in land surface use (such as for urban
development, agriculture and livestock, or surface mining). Examples for
limiting future impacts could range from local efforts (such as reducing,
reusing, and recycling resources) to large-scale geoengineering design
solutions (such as altering global temperatures by making large changes to the
atmosphere or ocean).
HS-ESS3-5 Analyze geoscience data and the results
from global climate models to make an
evidence-based forecast of the current
rate of global or regional climate change
and associated future impacts to Earth
systems.
Emphasis is on evidence, for both data and climate model outputs, which
drives climatic changes (such as precipitation and temperature data and
models) and their associated impacts (such as on sea level, glacial ice volumes,
or atmosphere and ocean composition).
HS-ESS3-6 Use a computational representation to
illustrate the relationships among Earth
systems and how those relationships
are being modified due to human
activity.
Emphasis is on Earth systems: hydrosphere, atmosphere, cryosphere,
geosphere, and/or biosphere. Students are expected to demonstrate (through
the use of data and models) the far-reaching impacts from a human activity,
such as how anthropogenic carbon dioxide emissions impact photosynthetic
biomass on land, and how ocean acidification impacts sea organism health
and marine populations.
Integrated SD Modeling and DVG instructional technologies will allow for student inquiry to go beyond the limited use of
published results of scientific computational models by allowing students to run computational models from source data.
To support these advanced MGSS performance expectations for high school students, the Company’s integrated SD
Modeling and DVG instruction technology research and development agenda is to (i) develop a web-based SD Modeling
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software interface with underlying real-world data; and (ii) develop simulation software, or an SD Modeling Engine
(simulator engine), allowing users to self-generate animations and visualizations for displaying inquiry-based outcomes.
Current Small Business Technology Transfer (STTR) Phase I research activity (Section 5.2) is designed to assess specific
software design requirements for generating an automated graphic interface to the datasets that will drive enhanced DVG-
based animations and visualizations. The Company will build upon the research outcomes of STTR Phase I, and support the
development of additional enhanced software features in the proposed STTR Phase II research grant. With integrated SD
Modeling and a DVG-based automated graphic interface students will not only be able to run computational models from
source data, but will also be able to generate DVG simulation models using the source data to analyze, interpret, compare
and communicate model results across numerous Earth Science disciplines.
By example, analyzing data sets collected daily by the Orbiting Carbon Observatory - 2 (OCO-2), high school teams will be
able utilize the Company’s advanced integrated SD Modeling and DVG instructional technologies to develop high
resolution profiles of CO2 emissions (and related impacts on Coupled Human and Natural Systems) to educate the general
public on the potentially catastrophic impacts of unmitigated global warming on human. Student-generated visualization
models may look similar to the models shown below:
Sea Level Rise
Ocean Carbon Sequestration
Fossil Fuel Carbon Emissions.
The Company and its partners in the Carbon Research Collaborative (Collaborative) will support student research teams
with specific research-based HS-ESS2 and HS-ESS3 curriculum activities. For example, in the Collaborative’s proposed
inaugural programs – the Carbon Emissions of MegaCities and the National Ocean Science Competition – student teams in
collaboration with other teams in the Collaborative from across the nation will measure anthropogenic carbon emissions
from the world's 27 mega-cities, including New York City and Los Angeles, and assess the capacity of Earth's Biosphere to
sequester carbon dioxide (CO2) emissions that have accumulated in the atmosphere over centuries of global industrial
development and change in land use. See the Carbon Research Collaborative web site at http://www.oco2.net
Advanced Placement (AP) high school teacher- and student-led research teams will use the data to conduct interdisciplinary
research that examines the dynamics of Coupled Natural and Human Systems (CNHS) and the complex interactions
between these systems at diverse geographic scales and time horizons. Specifically, research teams will examine the linkage
between: (a) Econometric Productivity (the System of National Accounting that measures global economy and relative
health and prosperity of human populations); and (b) Primary Productivity (the photosynthetic processes that form the
foundation of Ecosystems Services – clean air and water to healthy soils and food systems – upon which all species sustain
life). This approach informs the pedagogical framework of the Company’s proprietary Productivity-centered Service-
learning (PCSL) pedagogy (Section 12.2).
Research teams at both the 9-10 and AP course levels will publish their work in a peer-reviewed project journal and other
scientific publications. Research outcomes, including animations and simulations, will be distributed to over 100 museums
with Science On a Sphere® installations in 39 countries hosting more than 33 million visitors annually. Select teachers and
students will be invited to present their research findings at periodic meetings of the United Nations Framework
Convention on Climate Change (UNFCCC). See Section 5.3 for SD Modeling software utilizing Threshold 21.
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Section 5, DVG Research & Development
5.1. DVG Research
Next Generation Science Standards (NGSS) rely heavily upon the use of real-world Earth Systems Science (ESS) data and
geoscience models for teaching and learning about Coupled Human and Natural Systems (CHNS) across multiple
performance standards at all grade levels. Using geoscience models, students are expected to develop, analyze and interpret
data, use mathematical and computational thinking to construct explanations, design solutions, engage in argument, and
demonstrate understanding of the core ESS ideas.
Underlying the logic of the use of models is the finding though research that spatial ability (which can be assessed and
improved with DVG technologies) is the principal indicator for identifying high-school students who pursue STEM careers
and the main attribute among students who later achieve advanced STEM educational and occupational credentials. (Wai,
J., Lubinski, D., & Benbow, C. P. 2009, Journal of Educational Psychology)
Furthermore, educational neuroscience research findings indicate that neural connections in the brain reorganize when
people learn new concepts. Geospatial modeling (spatial organization) is an important method for transferring knowledge
that has lasting implications for neurocognitive development in young learners. Specifically, DVG-based geospatial
instructional technologies offer new methods and practices for cognitive learning through the visual representation of geo-
referenced global data over time. This has far-reaching implications for how schools can design their Earth Science
programs and how teachers could structure educational experiences in their classrooms aligned with NGSS. Yet no formal
research has been conducted in the U.S. to validate the efficacy of DVG instructional technologies in U.S. public schools.
Research studies conducted by the Educational Equipment Research and Development Center (EERDC) of the People’s
Democratic Republic of China Ministry of Education, led by Dr. Qiang Liu (below), have demonstrated that using DVG
technologies in the classroom has improved student’s attitudes toward STEM education from 66% to 98%, and
comprehension from 79% to 92%. See below.
Photo: EERDC STEM education research team.
Source: EERDC, People’s Democratic Republic of China Video Link: http://www.vimeo.com/103399291
As research protocols and cultural attitudes differ in the U.S. and China, the EERDC study results may not be a reliable
indicator regarding learning outcomes with DVG instructional technologies in American public schools. Nonetheless, these
Dr. Qiang Liu
Director, EERDC
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findings suggest that peer-reviewed DVG research in the U.S. is warranted. Anecdotal evidence within the Science On a
Sphere® (SOS) museum market and early stage feedback from the STTR Phase I commercialization research grant suggests
that DVG instructional technology research in the U.S. may yield results similar to EERDC research outcomes. It is
important to note, however, that DVG applications – and pedagogy – in the U.S. classroom (including performance
standards under NGSS) are profoundly different than the applications and pedagogy that were developed by the EERDC
for public schools in People’s Democratic Republic of China, making any correlation of learning outcomes difficult to assess.
5.2. Independent, Evidence-based Research
Instructional technologies may not be successfully implemented at-scale in the U.S. education market absent favorable
research demonstrating its capacity to improve desired STEM learning outcomes under Next Generation Science Standards
(NGSS). The Company believes that it is in the best interest of its educational mission – and its investors – to validate the use
of integrated SD Modeling and DVG technologies in alignment with the Common Guidelines for Education Research and
Development as published by the National Science Foundation (NSF) and the Institute of Education Sciences (IES) of the U.S.
Department of Education prior to launching product sales at-scale nationally. Hence, this six year business plan emphasizes
an Action Research under the Carbon Research Collaborative. Ref: http://www.oco2.net
To support this marketing approach and validate product efficacy, the Company is establishing a multi-institution research
and development team to (i) align iGlobe®-based integrated SD Modeling and DVG instructional technologies software
with NGSS performance standards, and (ii) conduct peer-reviewed research on the potential impact of DVG instructional
technologies to affect positive attitudinal change in students toward STEM education and careers.
The Company will conduct on-going preliminary DVG instructional technology research supplemented by one or more
federal grants (as feasible) to support independent, evidence-based peer-reviewed research (items 6-8, below). This research
effort will build directly upon previous SD Modeling and DVG instructional technology research (items 1 and 2, below), and
NSF Innovative Technology Experiences for Students and Teachers (ITEST) awards (items 3 to 5 below). These prior grant
awards total $4.9 million (rounded). Additional private sector research and development investments are anticipated to total
approximately $4 million (rounded).
1. NASA Award:
Innovations in Climate Education Initiative, Global Climate Change and Human Health Impacts:
Investigation and Analysis in the Classroom using Innovative Technologies.
Ref: http://nice.larc.nasa.gov/node/99)
2. NSF Award #1416970:
National Science Foundation (NSF), Directorate for Engineering, Division of Industrial Innovation and
Partnerships (IIP), Small Business Technology Transfer (STTR) Phase I: Overcoming the Flat View - Teaching
Climate with an Interactive Spherical Display.
Ref: http://www.nsf.gov/awardsearch/showAward?AWD_ID=1416970&HistoricalAwards=false
3. ITEST Award #DRL-0624663
University of Vermont, Global Challenge:
Ref: http://stelar.ed.org/projects/10811/profile/global-challenge-award-itest-program
4. ITEST Award #DRL-083376
University of North Texas, SolarQuest EDU:
Ref: http://stelar.ed.org/projects/11161/profile/m-sos-w-middle-schoolers-out-save-world
Ref: http://www.iittl.unt.edu/IITTL/itest/msosw_web/index.html
5. ITEST Award #DRL-1312168
University of North Texas, SolarQuest EDU:
Ref: http://stelar.ed.org/projects/13561/profile/going-green-middle-schoolers-out-save-world-msosw
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Proposed Grant Awards:
6. AGENCY: National Science Foundation (NSF), Directorate for Engineering, Division of Industrial
Innovation and Partnerships (IIP), Small Business Technology Transfer (STTR) Phase II.
- Current Project Title: Overcoming the Flat View - Teaching Climate with an Interactive Spherical
Display (Phase I, Award Amount: $224,978; NSF Award #1416970; See Phase I Abstract, below.)
- Projected Award Amount: STTR Phase II, $750,000
- Research Team: iGlobe®, Inc., (Principle Investigator); Program in Atmosphere, Oceans and Climate
(PAOC) at the Massachusetts Institute of Technology (MIT) (Co-Principal Investigator)
- Submission Date: July, 2015
- Ref: http://www.nsf.gov/awardsearch/showAward?AWD_ID=1416970&HistoricalAwards=false
ABSTRACT: This STTR project's broader/commercial impact is that it will allow researchers to learn more
about the complex relationships between environmental conditions and the impact of changes over time.
The ability to convey that knowledge in an intuitive and compelling manner to students and the public
globally could motivate them to influence business and political leaders to craft policies that would reduce
damage to the planet. In addition to schools and universities, there are 600 museums dedicated to science, as
well as aquariums and other public venues concerned with environmental issues; in essence, these all are
involved in educating people, and they all look for effective means of portraying information about the
Earth. While spherical displays provide the most compelling views, adapting the methods developed in this
project to laptops and tablets (owned by several hundred million people) can contribute to learning about
climate for students and adults worldwide.
This STTR project leverages a commercial/university partnership to develop a vehicle for education and
public outreach on climate and climate change. With the increasing awareness and confusion about climate
change and the severity of predicted impacts, it has become critical that we educate students at all levels to
give them a real understanding of climate data and climate models. Likewise, outreach efforts are vitally
needed, both to interest students in learning more about climate science and to engage the general public.
This project will provide compelling methods for educators and their students to explore deeply what the
data and state of the art models tell us about climate changes, both natural and anthropogenic, as well as to
illustrate climate processes with simple models that can be used for "what if" scenarios. The goal is not a
series of canned lessons, but rather an open-ended means for teaching the material with the ability to dig
deeper into the information in response to student questions.
COMMENTS: As a component of Phase II of this research effort, the Company and iGlobe®, Inc. are
proposing to develop the iGlobe® Mini adapted from the existing iPad-based iGlobe® controller App
technology and to stream DVG content from the Cloud.
7. AGENCY: National Science Foundation, Innovative Technology Experiences for Students and Teachers
(ITEST)
- Working Title: Teaching and Learning about Coupled Human and Natural Systems Utilizing DVG
Instructional Technologies
- Projected Award Amount: Award Ceiling, $1,500,000
- Research Team: TBD. Principal Investigator, TBD. (Advisory Team: University of Vermont / Columbia
University / Harvard University / University of North Texas / Champlain College / Cayuga Community
College)
- Submission Date: October, 2015
- Ref: http://www.nsf.gov/funding/pgm_summ.jsp?pims_id=5467
REQUEST FOR PROPOSAL (RFP): The ITEST program through research and model-building activities
seeks to build understandings of best practice factors, contexts and processes contributing to K-12 students'
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motivation and participation in the science, technology, engineering, and mathematics (STEM) core domains
along with other STEM cognate domains (e.g., information and communications technology (ICT),
computing, computer sciences, data analytics, among others) that inform education programs and workforce
domains. The ITEST program funds foundational and applied research projects addressing the development,
implementation, and dissemination of innovative strategies, tools, and models for engaging students to be
aware of STEM and cognate careers, and to pursue formal school-based and informal out-of-school
educational experiences to prepare for such careers. ITEST supports projects that: (i) increase students'
awareness of STEM and cognate careers; (ii) motivate students to pursue the appropriate education
pathways for STEM and cognate careers; and/or (iii) provide students with technology-rich experiences that
develop disciplinary-based knowledge and practices, and non-cognitive skills (e.g., critical thinking and
communication skills) needed for entering STEM workforce sectors.
PROJECT ABSTRACT: To be determined pending completion of Small Business Technology Transfer
(STTR) Phase I and submittal of STTR Phase II grant proposal (July 2015). See Section 3.2 (a), above.
COMMENTS: The Company’s Managing Member and President, Allan E. Baer, has participated in three
prior NSF ITEST awards: #DRL-0624663, #DRL-083376 and #DRL-1312168. Awards #DRL-083376 and #DRL-
1312168 are based on the Company’s Productivity-Centered Service-Learning (PCSL) pedagogy.
8. AGENCY: National Science Foundation, Directorate for Geosciences (GEO)
- Title: Improving Undergraduate STEM Education: Pathways into Geoscience
- Projected Award Amount: Award Ceiling, $500,000
- Research Team: The Global Challenge Award, Inc.; Champlain College, Emergent Media Center, Earth
Institute (CIESIN) Columbia University, Institute for the Application of Geospatial Technology (IAGT) at
Cayuga Community College.
- Submission Date: Letter of Intent Due Date: August 14, 2015; Full Proposal Deadlines: October 05, 2015
Request for Proposal (RFP): The Directorate for Geosciences (GEO) contributes to the IUSE initiative
through the Improving Undergraduate STEM Education: Pathways into Geoscience (IUSE: GEOPATHS)
funding opportunity. IUSE: GEOPATHS invites proposals that specifically address the current needs and
opportunities related to undergraduate education within the geosciences community. The primary goal of
the IUSE: GEOPATHS funding opportunity is to increase the number of undergraduate students interested
in pursuing undergraduate degrees and/or post-graduate degrees in geoscience through the design and
testing of novel approaches for engaging students in authentic, career-relevant experiences in geoscience. In
order to broaden participation in the geosciences, engaging undergraduate students from traditionally
underrepresented groups or from non-geoscience degree programs is a priority. The IUSE: GEOPATHS
solicitation features two funding Tracks: (1) Engaging students in the geosciences through extra-curricular
experiences and training activities (GEOPATHS-EXTRA), and (2) Improving pathways into the geosciences
through institutional collaborations and transfer (GEOPATHS-IMPACT).
COMMENTS: Proposed multi-institutional collaboration throughout Northeast Region will focus on
funding track 2, Improving pathways into the geosciences through institutional collaborations and transfer.
Ref: http://www.grants.gov/web/grants/view-opportunity.html?oppId=270876
DISCLAIMER: Grant Award #1416970 – National Science Foundation (NSF), Directorate for Engineering, Division of
Industrial Innovation and Partnerships (IIP), Small Business Technology Transfer (STTR) Phase I – is currently funded with
a completion date of June 2015. Section 3.2., (a) STTR Phase II and Section 3.2., (b) NSF ITEST are neither approved nor
funded projects, and no claim is being made as to the viability of the Company and/or its strategic academic partners to
secure funding under the federal grant programs listed herein to complement the Company’s DVG product research and
development efforts.
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5.3. Advanced, Integrated SD Modeling and DVG Instructional Technologies
The Company proposes to research and develop a platform for integrating advanced SD Modeling software utilizing
Threshold 21 (developed by the Millennium Institute, Washington D.C.) in order to provide predictive modeling scenarios
generated by students in grade levels 9-12 (see Section 4.3.) that can be ultimately utilized by government, industry and the
general public for decision support services concerning public and private policies, and investments for climate change
mitigation and adaptation.
T21 is a quantitative systems dynamic (SD) tool for integrated,
comprehensive global- and national-scale modeling. Its purpose is
to provide predictive modeling and decision support services for
medium- to long-term development planning by deepening
understanding of the key structural relations, and enhancing the
analysis of development strategies. T21 can provide insight into the
potential impact of development policies across a wide range of
sectors and reveal how different strategies interact with one
another to achieve planned goals and objectives.
The T-21 model is constructed across three spheres – Economy,
Environment and Society – containing six sectors each, as follows:
Image: Threshold 21 SD Model Structure
Economy Sphere: The Economy sphere contains major production sectors (production, investment, technology,
RWO (rest-of-world), households and government) which are characterized by Cobb-Douglas production
functions with inputs of resources, labor, capital, and technology. A Social Accounting Matrix (SAM) is used to
elaborate the economic flows and to balance supply and demand in each of the economy sectors.
Environment Sphere: The Environment sphere (land, water, emissions, sustainability, minerals, energy) tracks
pollution created in the production processes and its impacts on health, and eventually on production. It also
estimates the consumption of natural resources and can estimate the impact of the depletion of these resources on
production and other factors, including fossil fuel consumption, forest depletion, land and water degradation, air
and water pollution, and greenhouse gas emissions.
Society Sphere: The Social sphere (population, health, infrastructure, poverty, education and labor) contains
detailed population dynamics by sex and age cohort; health and education challenges and programs; basic
infrastructure; employment; poverty levels and income distribution; and labor statistics.
Each sector within the three sphere is populated with
multiple peer reviewed socioeconomic algorithms with
feedback loops that model key causal indicators that drive
global, regional and national economies, as shown in the
sample T21 causal loop diagram at right.
In 2008-09, SolarQuest EDU (with funding from the United
Nations) collaborated on an SD Modeling pilot project with
the Millennium Institute, the Government of Ecuador, the
University of Bergin (Norway), Middlebury College
(Vermont) and Colegio Tecnico Ignacio Hernandez
(Galapagos) to conduct student-centered SD Modeling
research to quantify cross-sectoral impacts of investments in
climate change mitigation in Ecuador utilizing the
Threshold 21 SD Model.
Image 1: T21 Casual Loop Diagram
Ref: “Quantifying cross-sectoral impacts of investments in climate change mitigation in Ecuador” (Bassi, A. & Baer, A. 2009,
Energy for Sustainable Development): http://www.solarquest.us/images_T21_STARTING_FRAMEWORK_ANALYSIS_ECUADOR_2009.PDF
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Section 6, Research Team & Key Company Personnel
6.1. DVG Research Collaboration
The Company has assembled a highly qualified team of experts (partial listing, below) with demonstrated accomplishments
and global leadership in STEM education research, instructional technology and educational game development, Systems
Dynamic (SD) economic and Climate Change modeling.
Directed by the Company, and working under the umbrella of the Carbon Research Collaborative (Collaborative), this
multi-institutional team will develop breakthrough, integrated SD Modeling and DVG instructional technologies software
and curriculum that promises to offer new methods and practices for cognitive learning through the visual representation of
geo-referenced global data over time and, specifically, enable students to generated predictive models on the impacts of
anthropogenic greenhouse gas (GHG) emissions on Earth’s Biosphere in response to guided scientific inquiry on Coupled
Human and Natural Systems (CHNS) in alignment with Next Generation Science Standards (NGGS).
6.2. Key Research Team:
Allan Baer, SolarQuest L3C: Mr. Baer has been a project-based experiential educator since 1977. From 1996 -
2001, Mr. Baer worked with the administration of President William Jefferson Clinton as a private sector
partner managing Education for Sustainability programs in collaboration with the White House and various
federal agencies. From 2001-09, Mr. Baer managed human capacity building services for the United Nations
(UN) program to repower the Galapagos Islands, and was appointed “Honorary Ambassador” to the Islands.
From 2006-13, Mr. Baer participated in STEM-based instructional technology research projects with funding
from the National Science Foundation (NSF) in collaboration with the University of Vermont (Global
Challenge) and University of North Texas (Middle Schoolers Out to Save the World). NSF awards: #DRL-
0624663, #DRL-083376 and #DRL-1312168 (See Section 4.2., items 3-5, for additional information.)
Dr. David Gibson, Global Challenge: Dr. Gibson is the current Vice President of SITE and an internationally
recognized instructional technologies researcher. Dr. Gibson serves as the Vice President of the Global
Challenge Awards, Inc. and is currently the Director Learning Engagement, Curtin University (Perth,
Australia). Dr. Gibson’s primary research fields are teacher education, complex systems methods in social
science research, technology games and simulations, and cognitive science-based learning theory. NSF
awards: #DRL-0624663 and #DRL-083376. Ref: http://www.mendeley.com/profiles/david-gibson1/
Glenn R. Flier, Massachusetts Institute of Technology (MIT): Dr. Flier is Professor of Oceanography at the
Program in Oceans, Atmosphere and Climate (POAC) at MIT and the Co-Principle for the National Science
Foundation (NSF), Directorate for Engineering, Division of Industrial Innovation and Partnerships (IIP), Small
Business Technology Transfer (STTR) grant award #1416970: Overcoming the Flat View - Teaching Climate
with an Interactive Spherical Display. Dr. Flier’s primary research is on the impacts of oceanic eddies upon
the distribution of tracers and on the biology of the sea, including both transport and alterations in the
reaction terms. http://eaps-www.mit.edu/paoc/people/glenn-r-flierl
Matt Lalley: iGlobe®, Inc. (iGlobe®): Mr. Lalley is the co-founder of iGlobe®, Inc., and the Principle
Investigator for the National Science Foundation (NSF), Directorate for Engineering, Division of Industrial
Innovation and Partnerships (IIP), Small Business Technology Transfer (STTR) grant award #1416970:
Overcoming the Flat View - Teaching Climate with an Interactive Spherical Display. Mr. Lalley is leading the
effort to develop the iGlobe® Mini Apple iPad-based DVG software application and cloud-based content
development. Ref: http://iglobeinc.com/
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6.3. Institutional Research Partners:
Ann DeMarle, Champlain College: Professor Ann DeMarle directs Champlain College's Emergent Media
Center and the MFA in Emergent Media. In 2006, Professor DeMarle became the first Roger H. Perry chair
after designing and directing the college's most popular degrees: the trio of Game degrees and Multimedia
and Graphic Design. Her portfolio includes such far-reaching partnerships as: United Nation's game to end
violence against women, Ford Foundation wealth creation game, Robert Wood Johnson Foundation Cystic
Fibrosis games, Massachusetts General's CIMIT Emergency Response simulation, Flynn Theater's Duke
Foundation innovation grant, NEH grant with Vermont, America's Army game levels, and an IBM virtual
worlds project. Ref: http://www.champlain.edu/academics/our-faculty/demarle-ann (Exhibit C.)
Robert Brower, Cayuga Community College: Robert N. Brower is Chairman, Chief Executive Officer and
Treasurer of the non-profit Institute for the Application of Geospatial Technology (IAGT) located at the James
T. Walsh Regional Economic Development Center at Cayuga Community College. Mr. Brower’s experience
includes 30 years in the public sector, serving four terms as one of 15 members of the New York State GIS
Coordinating Body, two terms as chair of the Local Government Advisory Committee, and helped established
New York State GIS Association. He has extensive international GIS work experience in Argentina, Ireland
and Central America. Mr. Brower (with funding from NASA) co-led the development of CHANGE Viewer in
collaboration Professor Robert S. Chen with the Center for International Earth Science Information Network
(CIESIN) at Columbia University. Ref: http://www.iagt.org/ (Exhibit C.)
Dr. Robert S. Chen, Columbia University: Dr. Chen is the Director and Senior Research Scientist, Center for
International Earth Science Information Network (CIESIN) at Columbia University. Dr. Chen led data
integration efforts for the State Failure Task Force established by Vice President Al Gore, initiated the
Environmental Treaties and Resource Indicators database and establish the Socioeconomic Data and
Applications Center (SEDAC), a NASA data center operated by CIESIN that develops and distributes
integrated socioeconomic and environmental datasets that complement satellite data and imagery. He has
contributed to the Intergovernmental Panel on Climate Change (IPCC and is an ex officio member of the IPCC
Task Group on Data and Scenario Support for Impacts and Climate Analysis. He is secretary-general of the
Committee on Data for Science and Technology (CODATA) of the International Council for Science,
contributes to the Data Sharing Principles for the Global Earth Observing System of Systems (GEOSS) and co-
led the development of CHANGE Viewer. Ref: http://www.earthinstitute.columbia.edu/articles/view/2513
Dr. Andrea Bassi, Knowledge Srl: Dr. Bassi is the founder and CEO of KnowlEdge Srl and Associate
Professor of System Dynamics Modeling at Stellenbosch University, with earlier experience as Director for
Project Development and Modeling at Millennium Institute, visiting researcher at the Danish National
Environmental Research Institute and the Los Alamos National Laboratory. Dr. Bassi was the lead author of
the UNEP’s Green Economy Report. He has presented to several national leaders and Ministers, and
published in peer reviewed journals and reports by leading international organizations. Ref:
http://www.millennium-institute.org/ and http://www.ke-srl.com/KnowlEdge_Srl/About_KE.html
Dr. Gerald Knezek, University of North Texas (UNT): Dr. Knezek is the former President of the Society for
Information Technology in Teacher Education (SITE) and the Director of the Institute for the Integration of
Technology into Teaching and Learning (IITTL) at UNT. IITTL projects include simMentoring (Fund for the
Improvement of Postsecondary Education), NSF Disabilities Research grant on Simulated Enhanced Training
for Teachers (SETT), and an NSF Innovative Technology Experiences for Students and Teachers (ITEST)
research in collaboration with SolarQuest and Global Challenge. The IITTL has generated four books and
more than one dozen refereed journal articles in the area of impact of information technology in education.
NSF awards: #DRL-083376 and #DRL-1312168. Ref: http://www.iittl.unt.edu/research.html
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6.4. K-12 Field Research Partners:
The following New England regional schools have submitted a Statement of Interest to participate as “Field Research
Partners” pursuant to the National Science Foundation (NSF), Directorate for Engineering, Division of Industrial Innovation
and Partnerships (IIP), Small Business Technology Transfer (STTR) Phase II grant application (July, 2015). The Company
will solicit additional schools for participation as “Research Partners” for proposed NSF Innovative Technology Experiences
for Students and Teachers (ITEST) research (October, 2015), and National Science Foundation, Directorate for Geosciences
(GEO), Improving Undergraduate STEM Education: Pathways into Geoscience (October, 2015).
Table 7. K-12 Field Research Partners (Exhibit G)
School Name: Location: Type School:
Cabot School
Michael Hendrix
Cabot, Vermont
http://www.cabotschool.org/
High School
Woodstock Union High School
Jennifer Stainton
Woodstock Vermont
http://www.wuhsms.org/
High School
South Burlington High School
Vince Masseau
South Burlington, Vermont
http://www.sbschools.net
High School
Essex High School
Lee Ann Smith
Essex Junction, Vermont
www.ccsuvt.org
High School
Hermon High School
Debra Merrill
Hermon, Maine
http://www.wuhsms.org/
High School
Mt. Abraham High School
James Danala
Salem Turnpike, Maine
http://www.msad58.org/schools/mtabram/
High School
Hudson School District
Jacob Reece
Hudson, New Hampshire
http://www.edline.net/pages/Alvirne_High_School
High School
Colebrook Academy
Kenneth Hastings
Colebrook, New Hampshire
http://www.csd.sau7.org/
High School
Black River Middle High School
Michael Spatzer
Ludlow, Vermont
http://www.brhsms.org
Middle School / High School
Northfield Middle High School
Jerry Cassels
Northfield, Vermont
http://www.edline.net/pages/Northfield_Middle_High_School
Middle School / High School
Camels Hump Middle School
Daniel Hamilton
Richmond, Vermont
www.chms.k12.vt.us
Middle School
Arlington Middle School
Karen Schroeder
Arlington, Vermont
http://www.bvsu.org
Middle School
Mount Mansfield Union High School
Andrea Leppert
Jericho
www.mmu.k12.vt.us
High School
Mystic Middle School
Kim Brandt
Mystic, Connecticut
http://www.stoningtonschools.org/
Middle School
Randolph Union School
Caty Sutton
Randolph, Vermont
http://www.orangesouthwest.org/ruhs/
K-12
NOTE: During the research term (2016-2019), a limited number of science teachers may be eligible for a $2,500 annual
stipend to cover labor costs to conduct student assessments and complete quarterly research project reports.
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6.5. Key Company Staff
The Company revenue and expense model relies on a school to field staff ratio of 25/1, and a field staff to management ratio
of 5/1. An enrollment of 1,265 schools requires 5 managers and approximately 50 field staff (plus 44 merchant sales staff).
See 10.3.5
• Allan Baer, Managing Member, President: See Section 6.2.
• John Cromwell, Director of DVG Sales: John Cromwell has extensive sales management and direct
sales training experience with several national and regional companies, including Primerica Financial
Services, Mohasco, Waitt Communication and Berkshire Hathaway Media. Mr. Cromwell will direct
program marketing, including web-based outreach programs, to secure K-12 Action Research
Cooperative Agreements, and to meet crowdfunding and iGlobe.Today™ advertising revenue objectives.
• Ron A. Turner, Operations & Finance Manager: Ron Turner is an experienced real estate developer and
business manager with extensive banking experience. As a member of the Board of Directors of the FSB
Bank Corp and Farmers State Bank (Somonauk, Illinois), Mr. Turner was responsible for monitoring
monthly payables, investments and compliance with regulatory mandates. Mr. Ron Turner will manage
the Company’s operations and finance. Mr. Turner is currently serving as the Interim Executive Director
of The Global Challenge Award, Inc.
• Cheryl Diersch, Director of Logistics: Cheryl Diersch owned and operated Pack & Ship, a product
fulfillment and shipping business, for 20 years. Prior to selling Pack and Ship, Ms. Diersch grew the
business from a small store front enterprise to handling tens of millions of dollars in high-end
merchandise. Ms. Diersch received a B.A. at the University of Vermont where she was the director of
student internship recruitment and management, and an M.A. in Education at Goddard College. Ms.
Diersch will manage shipping and receiving for DVG software product and the iGlobe.Today™ program
journal subscription services, and will support workforce development and internships for field staff.
• Jim Hurt, Associate Editor of iGlobe.Today: Jim Hurt has extensive experience in the area of
sustainable development. Mr. Hurt worked in collaboration with the Sustainable Development Initiative
(SDI) of the Columbia Business School as an associate editor for The National Times, a publication based
in New York City owned by Krebs Communications. Mr. Hurt also worked in collaboration with the
United Nations Department of Economic and Social Affairs, and the United States Department of Energy
on renewable energy technologies review and conference organization. Mr. Hurt will oversee thematic
content development of iGlobe.Today™.
• Field Representatives – Marginally Attached Workforce: The Company will provide full-time
employment (35-hours per week) for 94 recent college graduates (including advertising staff) who are
characterized as “marginally attached.” There are 1.8 million marginally attached, unemployed college
graduates in the United States. The Company will provide a specialized workforce training program for
marginally attached workforce in DVG instructional technologies, professional development support for
K-12 public school teachers, iGlobe.Today™ merchant advertising sales and consumer subscription pledge
campaign management. Field representatives are required to complete a minimum four-month
internship prior to deployment to support professional development for teachers and manage merchant
advertising sales.
6.6. Background
The Company has emerged directly from the business development and investment activities of its Managing Member and
President, (Allan E. Baer), its Co-founding Member (Jim Hurt) and several key program partners listed above in Sections 6.2.
- 6.5. These activities, pursuant to the business purpose of this Low-profit Limited Liability Company (L3C), include the
development of for-profit and non-profit entities that conducted STEM-based research and development, as follows:
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EcoSage Corporation, a Vermont for-profit corporation, developed and operated early-stage
domestic and international distance learning and capacity building programs under the
name style “SolarQuest” in collaboration with the White House (1998-2001).
Key Milestones: EcoSage Corporation provided capacity building services in sustainable
energy development to 52 African nations for the U.S-Africa Energy Ministerial Meeting
(U.S. Department of Energy, 1999-2001); supported Solar Lights for Africa in collaboration
with the White House Millennium Council and the U.S. Department of Energy (2,500
systems installed); and established the first deep-rural educational telecenter in the Republic
of Bolivia) under the G-8 Mandate for Universal Service (White House, 1999-2000).
Video Link: https://www.youtube.com/watch?v=5Yt9jTGO51o
SolarQuest Education Foundation, Inc. (SolarQuest EDU), a Vermont-based non-profit
corporation, provided human capacity building services to the Government of Ecuador
(Province of the Galapagos) for Project ERGAL (Renewable Energy Galapagos) under United
Nations contract #00052925. (United Nations Development Programme, 2004-09.)
Key Milestones: Co-developed the first project in Latin America under the Clean
Development Mechanism (CDM) of the Kyoto Protocol in collaboration with international
development agencies, including the World Bank, the Inter-American Development Bank
and the German Development Bank; and established Internet and renewable energy services
in the Galapagos Islands.
Video Link: https://www.youtube.com/watch?v=IJJjWDbfV5I
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SolarQuest EDU, in collaboration with Global Challenge, the University of Vermont and the
Institute for the Integration of Technology into Teaching and Learning (IITTL) at the
University of North Texas (UNT), conducted STEM-based education research under
National Science Foundation (NSF) awards #DRL-0624663, #DRL-083376 and #DRL-1312168.
(2006-2013)
Key Milestone: Research under these initiatives demonstrated the efficacy of the
Company’s pedagogy, Productivity-Centered Service-Learning (PCSL), to improve
attitudinal change in K-12 students’ toward STEM education and careers. The University of
North Texas is continuing research through 2017 under NSF award #DRL 1312186.
Video Link: https://www.youtube.com/watch?v=eIdM9Vujn3w
Renewable Nations Institute, Inc. (Institute), a Nebraska-based non-profit corporation, was
established to fulfill the terms of United Nations contract #00052925 (United Nations
Development Programme, 2004-09) to provide human capacity building services to the
governments of developing nations for national-scale transition to a low-carbon economy.
The Institute was a 2010 Clinton Global Initiative – University (CGI-U) Commitment to
Action Institute (2010-12) became a program of The Global Challenge Award, Inc., (Global
Challenge) in 2014.
Key Milestones: The Institute sought to purchase the former Dana College campus (Blair,
Nebraska) to form the Nation’s seventh Work College. Under Global Challenge, the goal is to
acquire, plan, design, engineer, develop, construct, retrofit, furnish, equip, accredit and open
the Renewable Nations Institute upon location of a suitable campus.
Renewable Nations
Institute
ADDITIONAL INFORMATION IS AVAILABLE AT CARBON RESEARCH COLLABORATIVE PROJECT WEB SITE
http://www.oco2.net
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Section 7, U.S. Public School Market
7.1. DVG Market Projection
The National Center for Education Statistics (NCES) numbers the U.S. K-12 public and private school universe in 2011 at
greater than 132,183 institutions serving 49.4 million K-12 students (NCES, 2009). Public schools with reported grade spans
total 97,749 as shown in Table 8, below, for a total enrollment of 36.5 million students (an average of 374 students per
school).
Table 8. K-12 School Market Segment
School Market Segment # Schools
Elementary Schools 67,086
Secondary 24,544
Combined 6,137
Total: 97,749
Source: http://nces.ed.gov/programs/digest/d12/tables/dt12_098.asp
Note: Based on schools with reported grade spans.
The Company projects that it can achieve a 1.3% market penetration (1,265 schools) of its targeted school market segment
within six years for projected annual gross revenue of approximately $12.9 million, assuming the product subsidy program
revenue model and generating an average of $10,198 in gross advertising revenue per school based upon 34 advertisers per
year at an average ad rate of $300. See Section 10, Preliminary Pro Forma.
7.2. K-12 Public School Spending
Total expenditures for public elementary and secondary schools in the United States amounted to $632 billion in 2010–11, or
$12,608 per public school student (in constant 2012–13 dollars, based on the Consumer Price Index). These expenditures
include $11,153 per student in current expenditures for operation of schools. Of this total $3.2 billion is allocated for Digital
Content as described in Section 7.3., below.
Source: Institute of Education Statistics, Ref: http://nces.ed.gov/fastfacts/display.asp?id=66
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7.3. All Instructional Materials (AIM) Spending
According to the Software & Information Industry Association (SIIA), K-12 Information Technology (IT) expenditures in
2011-12 totaled $7.97 billion in three categories: $3.5 billion for Digital Content; $3.4 billion for Digital Instructional Support;
and $889 million for Platforms and Administrative Support. In 2012-13, however, Digital Content declined to $3.2 billion.
Source: SIIA 2011-12 School Spending Survey
Expenditures in the AIM Digital Content of $3.2 billion average $25,269
per school or $67.69 per student. Assuming an average annual
subscription price point of $2,743, DVG instructional technology
expenditure would represent 10.8% of annual AIM Digital Content school
spending. Ref: SIIA 2014 and 2015 Reports http://www.siia.net/
Hence, the Company believes that an average annual subscription price
point of $2,743 remains a barrier to DVG instructional technology sales.
The Company is assuming a product subsidy revenue model is required,
potentially moving away from subsidy-based revenue model within 10
years as market penetration increases and economies of scale may result in
a lower product retail price point. The Company, however, makes no
claim that a product subsidy program can be totally eliminated.
7.4. Student Access and Cost of DVG Technology
According to the NCES, in 2009 greater than 97% of teachers had one or more computers located in their classrooms for use
every day, and 54% percent could bring computers into the classroom for access by students. Internet access was available
for 93% of the computers located in the classroom every day, and for 96% of the computers brought into the classroom for
student use. The ratio of students to computers in the classroom every day was 5.3 to 1.
Estimates are that today the ratio of students to computers in the classroom has improved to approximately 4.1 to 1 as
schools are moving away from personal computers and moving toward Chromebooks and tablets. The Company,
consequently, is seeking a strategy of the iGlobe® Mini DVG with Cloud-based delivery for access to Apple iPad-based
tablets, which represent more than 90% market share for tablet devices in the classroom. The Company’s strategy to gain
DVG market penetration at-scale is to reduce the annual teacher subscription rate for integrated SD Model and DVG
instructional technologies to below $800. This cost reduction would represent less than 3.2% of annual AIM Digital Content
school spending. The Company envisions a four tier product blend (see Section 3.3) transitioning to the iGlobe® Mini DVG
format and away from a product subsidy program to AIM school district budgets as increased market penetration allows
the Company to lower annual DVG product rates to below $800 for a classroom teacher subscription.
7.5. Market Behavior
The STEM performance of American students (2009) has slipped from 25th to 31st in math, and from 20th to 24th in science.
Only 16% of American high school seniors are both proficient in mathematics and interested in a STEM career. Of those who
pursue a college major in STEM-related fields, only about half choose STEM careers after graduation. Improving STEM
education in U.S. schools has now become a national priority and is influencing instructional technology market behavior.
Driven by government, industry and parents, K-12 schools are increasingly under pressure to improve the delivery of STEM
education. Instructional technology investment is generally viewed as necessary to improve STEM education delivery in the
classroom, as existing instructional technologies are aging and inadequate; however, the rapid and constant pace of change
in instructional technologies are creating both opportunities and challenges for schools. iGlobe® DVG flat-screen DVG
technologies allow greater access to rich, multimedia content and increases access to online content not otherwise available
due to the widespread use of mobile computing devices in the education sector that can access the Internet.
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Section 8, Marketing Plan
8.1. Direct eMail Marketing and Revenue Projections
The Company’s marketing strategy relies principally on electronic mail (email) notifications. The Company currently
maintains a list of “opted-in” email addresses for 22,891 science teachers nationally representing an estimated 7,149 public
schools (5.7% of its target market). This list includes 1,034 teachers in the New England region representing 355 public
schools (0.28% of its target market).
Email test marketing to the New England region resulted in Statements of Interest from 4.2% of the 355 New England region
public schools in the Company’s database. The Institute of Education Sciences of the National Center for Education Statistics
lists 4,797 public schools in the New England region. As the Collaborative expands its outreach to all New England public
schools while maintaining a potential 4.2% enrollment rate, approximately 216 schools in the New England region are
projected to join the Collaborative.
For the purposes of this business plan, the Company is assuming a national market penetration of 1,265 schools, or 1.3%
percent of the U.S. K-12 targeted public school market for projected pre-tax earnings of approximately $2.5 million after
Year-6, assuming the advertising revenue model projections as in Section 10. If the Company is able to maintain enrollment
rates demonstrated in the initial email test market, enrollment at Year-6 could achieve over 4,400 K-12 public schools, and
result in a significant increased pre-tax earnings and the opportunity to expand sales at-scale in U.S. public schools.
8.2. In-Depth Preliminary Email Marketing Results
A closer examination of the Company’s preliminary test email marketing results shows the potential for greater enrollment
and revenue. Note the following report results from the Company’s contract email marketing service, iContact:
Image: Company iContact Report, January 15, 2015
211 of 1,032 contacts representing 355
schools opened the email;
15 of the 211 contacts submitted a Statement
of Interest, representing 7.1% of recipients
opening the email submitting the interest
form; this represents 4.2% of the 355 school
universe email distribution.
11 (5.2%) of the 211 contacts submitted a
Request for Information, meaning a total of
26 contacts, or 12.3% of contacts who
opened the email submitting a response.
These results were based upon two email
communications – January 15, 2015 and
January 21, 2015.
The response profiles were nearly identical,
as can be seen from the graph at left.
Image: Company iContact Tracking Dashboard: January 1, 2015 through January 31, 2015
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8.3. Professional Develop Training & Direct Mail
The Company’s secondary marketing strategy focuses on providing professional development training workshops in DVG
instructional technologies to National Science Teacher Association (NSTA) members. NSTA membership consists of over
55,000 dedicated teachers, science supervisors, administrators and scientists committed to promoting excellence and
innovation in science education. Ref: http://www.nsta.org/
The NSTA has 58 state Chapters and 33 Associated Groups. An NSTA Chapter is a statewide organization dedicated to the
advancement and improvement of science education without restriction as to field or area of science, grade level, or
membership. An Associated Group is any local, state, provincial, or national organization whose purpose is the
advancement and improvement of science education.
The NSTA sponsors four major conferences and a STEM education forum each year. The national conference is generally
scheduled in March, the STEM forum in May, and three regional NSTA conferences are scheduled in October, November
and December. NSTA national, regional and STEM conferences for 2015 are scheduled, as follows:
Chicago National Conference,
March 12–15
Minneapolis STEM Forum & Expo,
May 20–23
Reno Area Conference,
October 22–24
Philadelphia Area Conference,
November 12–14
Kansas City Area Conference,
December 3–5
Table 9: U.S. Science Teacher Universe K-12 (Combined: 1,346,485)
Primary Target Market
Science Dept. Chairs 9,440 Environmental Science 8,209
Science 153,756 General Science 8,679
Earth Science 14,056 AP Science 5,384
Total Combined Primary Market Segment: 191,315
Ref: http://lists.schooldata.com/market?page=research/datacard&id=246991&startIndex=0
The Company will conduct annual professional development workshops for science teachers and school administrators at
NSTA national and regional conferences, the STEM Form and Expo and major State Chapter conferences (i.e., California,
Florida, Georgia, Illinois, New York, etc.) throughout the year supported by a direct email campaign to NSTA membership.
Professional development workshops will focus primarily on integrated SD Modeling and DVG instructional technologies
in the context of Next Generation Science Standards (NGSS). Presenters at the major conferences will include key research
partners (Sections 6.3) and field research partners at Carbon Research Collaborative participating schools (Section 6.4).
The Company will develop, manage and train workshop presenters, and arrange professional development course credits
for teachers through its academic research partners, including the Massachusetts Institute of Technology, Columbia
University and Champlain College. Workshop presentations will be complemented with online training for up to 9-hours
towards certification or Masters-level degree-bearing credits.
The Company will develop a marketing plan in collaboration with its strategic marketing partner, Global Challenge,
focusing on program rollout in the Northeast region (principally New England and New York adjacent to academic research
partners), and develop a national marketing plan leveraging the NSTA national, regional and state chapter conference
schedules within targeted SMAs.
This portion of the Company’s marketing plan will begin in with the NSTA national conference in Nashville National
Conference, March 31–April 3, 2016, due to lead time for professional development accreditation and NSTA conference
workshop applications. Initial conference workshop planning will begin May 20–23, 2015, at the Minneapolis STEM Forum
& Expo.
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Image#1: Statistical Metropolitan Areas
8.4. Priority Geographic Markets
The Company is focusing on the following priority geographic markets:
a. State of Vermont and New England Region: Pursuant to the Vermont Small Business Offering Exemption
(VSBOE), the Company is focusing on 360 public K-12 schools in Vermont and K-12 schools located with the New
England region adjacent to Collaborative research partners (iGlobe®, Inc., MIT and Global Challenge). Currently
10 out of 15, or 66.6%, of schools submitting a Statement of Interest are Vermont public schools.
b. Top U.S. School Districts by AIM Expenditures: The top U.S. school districts (city or county) based upon All
Instructional Materials (AIM) expenditures above $50 million. These top districts are as follows:
Table 10: Top U.S. School Districts by AIM Expenditures
Expenditures Above $50 Million Annually
Los Angeles, CA $422,195,135 Orange, CA $87,557,668 Nassau, NY $70,904,513
New York, NY $342,237,510 Maricopa, AZ $81,283,363 Suffolk, NY $68,887,945
Cook, IL $182,393,899 Riverside, CA $79,765,124 Tarrant, TX $68,732,089
Harris, TX $167,335,406 Middlesex, MA $78,727,066 El Paso, TX $66,834,509
Clark, NV $148, 657,029 Bexar, TX - $76,501,298 Hampden, MA $56,241,296
Honolulu, HI $111,452,064 Fairfax, VA $72,513,212 King, WA $54,064,177
Dallas, TX $105,435,015 Wayne, MI $72,438,874 Santa Clara, CA $50,330,152
Hidalgo, TX $90,292,984 San Bernardino, CA $71,740,569
c. Statistical Metropolitan Areas (SMAs):
Targeting SMAs allows for better demographic assessment in regard to the Company’s revenue model. The
Company’s strategy is to initially market the Collaborative in wealthier communities that may generate sufficient
revenue to carry Collaborative program costs for low-income micropolitan and rural areas. This is especially
important to program success, as low-income demographic regions may be constrained from participation in the
Collaborative due to lack of adequate instructional technology (IT) infrastructure.
Metropolitan and Micropolitan Statistical
Areas (metro and micro areas) are geographic
entities delineated by the Office of
Management and Budget (OMB) for use by
Federal statistical agencies in collecting,
tabulating, and publishing statistics.
A metro area contains a core urban area
of 50,000 or more population.
A micro area contains an urban core of at
least 10,000 (but less than 50,000)
population.
Metro or micro area consists of one or more
counties and includes the counties containing
the core urban area, as well as any adjacent
counties that have a high degree of social and
economic integration within the urban core.
PART 1: BUSINESS PLAN | CONFIDENTIAL
SolarQuest L3C, Business Plan, Part 1 | FN: 001_01_SQ_L3C_26_MAR_2015_VSBOE_P1 Page 38 of 58
Section 9, Revenue Model
9.1. Direct Sales Revenue Model
The Company’s primary revenue model “at-scale” under a strategic marketing partnership agreement with The Global
Challenge Award, Inc. (Global Challenge) assumes direct sales to K-12 public schools and school districts that can afford
iGlobe® DVG products from the digital content portion of their All Instruction Materials (AIM) budgets.
However, as previously detailed in Section 7.3., U.S. public schools spend $3.2 billion nationally, (a national average of
$25,296 per school, or $67.69 per student) on digital content. Based upon the estimated average price point of $2,743 for
annual subscriptions sales per school, subscriptions coast represent 10.8% of the average AIM school budget. The Company
acknowledges this subscription cost level may remain a barrier to many schools.
Assuming a reduced subscription enrollment rate of 4.2% can be sustained across the all school market segments as listed
blow in Table 11, the Company may achieve its revenue target from AIM expenditures in the elementary school market
segment alone assuming direct sales to the Tier-2 (Teacher Only) Apple® iPad-based iGlobe® DVG Mini.
The Company intends to pursue direct sales to this target market segment, as it is reasonable to assume that Company
profitability may be achieved from this market segments alone without the need for a subsidy-based revenue model.
9.2. Subsidy-based Sales Revenue Model
The Company does, however, recognizes that to achieve profitability a subsidy-based revenue model may be necessary, as
the Tier-1 (CPU-based software installation) annual subscription price point of $4,750 represents 18.8% of annual school
spending on AIM digital content; and average price point $2,743 represents 10.8% of annual average Digital Content
spending.
These pricing levels are likely to represent a barrier to access for many U.S. public schools at or below average AIM digital
content spending. The Company, in collaboration with its strategic marketing partner and academic research partners, will
assess a blended subsidy-based revenue model consisting of a combination of sponsorships, charitable grants, competitive
research grant awards, subscription sales and commercial advertising in the iglobe.today™ program journal and web portal.
9.3. Sponsorships, Charitable Grants, Competitive Research Grant Awards
Program subsidies based upon sponsorships, charitable grants, and competitive STEM-based research grant awards will be
modeled during the Company’s first full year of operations (Year-2). Two strategies will be employed during this period: (i)
Global Challenge (with management and technical support from the Company) will work directly with schools and school
districts to solicit sponsorships and charitable grants for schools participating in the Carbon Research Collaborative; and (ii)
the Collaborative members, specifically academic research partners, will apply for competitive STEM-based research
awards. Sponsorships and charitable grants are projected to generate no more than 15% of the cost of public school
participation in the Collaborative. Competitive STEM-based research grant awards are projected at approximately $2.7
million over three years beginning in Year-2, with no more than 10% ($270,000) subsidizing school subscription fees and
teacher stipends.
Table 11: School AIM Expenditure Revenue Model
School Market Segment # Schools 4.2% Enrollment Price Point Projected Revenue Product Tier
Elementary Schools (K-8) 67,068 2,817 $800 $2,253,485 Tier-2 (Teacher Only)
Secondary (9-12) 24,544 1,031 $1,745 $1,798,830 Tier-2 (Mini Blend)
Combined (K-12) 6,137 258 $2,697 $695,163 Tier-2 (Mini Blend)
Total: 97,749 4,105 $2,743 $4,747,477
PART 1: BUSINESS PLAN | CONFIDENTIAL
SolarQuest L3C, Business Plan, Part 1 | FN: 001_01_SQ_L3C_26_MAR_2015_VSBOE_P1 Page 39 of 58
9.4. iglobe.today™ Subscription Sales and Commercial Advertising
The Company’s primary revenue model at start-up (Year-1 through Year-6) is to subsidize schools, assuming that all schools
are unable to afford Tier-1 or Tier-2 company products from school district AIM expenditures. The subsidy revenue model
is based on a combination of consumer subscription sales and commercial advertising.
Company management has experience in print-based media and commercial advertising, and plans to develop a Carbon
Research Collaborative (Collaborative) program journal – “iglobe.today™” – to sell commercial advertising as a subsidy-
based revenue model, and to promote print copy sales on a revenue-share basis with schools participating in the
Collaborative.
Image: iglobe today™ prototype cover page.
iglobe.today™ - in print:
EDITORIAL CONTENT: STEM Education Research; Next
Generation Science Standards; Climate Change . . .
FEATURE ARTICLES: Program Elements; Professional
Development for Teachers; Research Outcomes . . .
LEARNING COMMUNITIES: Climate Action Research;
Service-learning; Best Practices . . .
CAREER PROFILES: STEM-based Careers in Geoscience
Research; STEM-based Professional Careers . . .
GEOSCIENCE RESEARCH: Public Infrastructure; STEM
Research Innovation; DVG Instructional Technologies . . .
PUBLIC POLICY: (UNFCCC) United Nations Framework
Convention on Climate Change; Federal, State & Local . . .
FOR FUN: Teacher’s Space; Student Challenge . . .
iglobe.today™ - web portal:
CLOUD-BASED SERVICES: Integrated SD Modeling and
DVG Instructional Technologies Platform . . .
RESEARCH COLLABORATION: Peer-to-Peer Student
Research; STEM Research Assessment Services . . .
PROFESSIONAL DEVELOPMENT: Geoscience Library;
Accredited College Courses for Teachers . . . and more.
iglobe.today™ will be designed as a 40-page, semi-annual (November and April), archival-grade public interest journal to
entertain, educate and fund raise. The Journal will be fully developed within six month of operations for Year-1 revenue
generation.
Readers will want to display iglobe.today™ on their coffee table, and teachers will want to keep in their classroom resource
library. iglobe.today™ will also serve as a print-based curriculum guide. The online iglobe.today™ web portal (and the
Collaborative web site) will serve as a gateway for access to integrated SD Modeling and iGlobe® DVG instructional
technologies, curriculum, professional develop for teachers, STEM-based education research public education and parent-
student engagement. This strategy assures that commercial advertisers will feature prominently as Carbon Research
Collaborative sponsors, and will provide an opportunity to promote “green product” branding for local business
development. Over time, the Company will transition to an online format as both the users and advertiser grow with
program enrollment, reducing both Company costs and merchant advertiser rates.
PART 1: BUSINESS PLAN | CONFIDENTIAL
SolarQuest L3C, Business Plan, Part 1 | FN: 001_01_SQ_L3C_26_MAR_2015_VSBOE_P1 Page 40 of 58
ADVERTISING RATES & REVENUE: The iglobe.today™ format is based upon 32 pages of educational and public interest
content, plus an 8-page detachable advertising insert. For revenue estimating purposes, the 8-page advertising insert
revenue assumption is as follows:
Revenue = sum: (¼ page ad) x (4 ads per page) x (8 pages per issue) x (2 issues per year), or
Sum: ($300 x 4 x 8 x 2) = $19,200
Table 12, Advertising Rates: Rates are based upon a survey of
various specialty markets in urban (metropolitan and
micropolitan), suburban and rural communities. Ad rates are
likely to vary across and within geographic regions based upon
demographic characteristics.
Rates may vary for national, regional and local advertisers with
emphasis on national and regional advertisers for program
marketing and enrollment, and regional and local advertisers to
subsidize local school annual subscription fees.
Revenue model for Collaborative research phase is based upon
gross revenue per school of $19,200 and $7,400 in expenditures.
Table 12. Advertising Rates
iglobe.today™
Pg. Size: (8.5x11-in.) Qtr. Rate $: 1-Yr. Rate:
1/8 - page 175 595
1/6 - page 225 765
1/4 - page 300 1,020
1/2 - page 595 2,023
2/3 - page 725 2,464
Full page 1,150 3,910
Front / Back Cover 2,500 n/a
PRINTING, SHIPPING & HANDLING (S&H) COSTS: Fulfillment costs for the iglobe.today™ are as follows:
Expense = sum (# copies per school) x (# pages per issue) x ($ per page) x (# issues) x (# schools) x (S&H), or
Sum: (500 x 40 x $0.18 x 2 x 1) + sum: ($100 x 2 x 1) = $7,400 (per school)
Table 13. Printing, Handling & Shipping Costs per School
iglobe.today™
40-Page Publication Cost by Volume
Copies No. Pages Cost per Pg. Production Cost # Issues Subtotal # Schools Total
500 40 0.18 3,600 2 7,200 1 7,200
Ship. & Handling (SH): Per Issue Cost: 100 # Issues: 2 Subtotal: 200
Total Printing & Shipping Cost: 7,400
Table 13, Printing, Handling & Shipping Costs per School: Table 13 assumes a print cost at a low page volume. This cost
cannot be avoided for the 8-page detachable advertising insert. The 32-pages of educational and public interest content,
however, will be identical across the universe of cohort schools sequenced according to enrollment dates. 100 schools
enrolled in a Cohort will result in a cost reduction, as follows:
Sum: (500 x 40 x $0.18 x 2 x 100) + sum: ($100 x 2 x 100) = $750,000 (Less than a 100-school Cohort)
Volume price reduction for the 32-page content section, as follows:
Sum: (500 x 32 x $0.13 x 100) = $208,000 (13-cent per page cost reduction for 100-school, or greater, Cohort)
Sum: $750,00 - $208,000 (cost reduction) = $542,000
The 100-school, (or greater) cohort achieves the lowest per page product costs at $0.05 per page for archival print quality,
realizing $1,152 print cost savings for a production and distribution cost of $6,248. This represents an increase in revenue
after expenses for iglobe.today™ from per school from $11,800 to $12,952.
The subsidy revenue model projections in Section 10 are based upon an average of 17 ad sales per issue. There is no increase
in publications costs as ad revenues increase to a capacity of 32 ads per district as shown in the model above. Additionally,
the advertising insert approach allows for increasing revenue or cutting expenses according to merchant ad sale demand.
PART 1: BUSINESS PLAN | CONFIDENTIAL
SolarQuest L3C, Business Plan, Part 1 | FN: 001_01_SQ_L3C_26_MAR_2015_VSBOE_P1 Page 41 of 58
BLENDED SUBSIDY REVENUE MODEL: Table 14 represents individual components of a blended subsidy revenue
model, including revenue for, grants, advertising, iglobe.today™ print copy sales, online subscription sales iglobe.today™ and
consumer iGlobe® Mini DVG subscription sales.
Table 14. Subsidized Revenue Model
iglobe.today™
Expenses Revenue
Blended Revenue
Grants 1,100
Advertising Sales 19,200
Copy Sales
500
Subscription Sales
1,500
Consumer iGlobe Mini Subscription Sales
4,500
Gross Revenue
29,300
Expenses - Cost of Goods Sold
Printing & Shipping (6,248)
Total Cost of Goods Sold (6,248)
Revenue Less Cost of Goods Sold
23,052
KEY REVENUE & EXPENSES ASSUMPTIONS: The blended revenue model assumes (i) commercial advertising and
consumer iGlobe Mini subscription sales at $19,200 and $4,500 respectively; and (ii) printing and shipping expenses at
$6,248. The remaining revenue line items above are conservatively estimated at 25% of revenue potential. Other related
expenses, such as advertising sales commissions, are included in Company operating expenses.
Company revenue and expenses in Section 10 assume that all revenue is sourced from “iglobe.today™ Ad Sales” rather than
a combination of Direct AIM Budget Sales and Subsidy-based sales. However, as the Company’s stated purpose is to
improve the quality of Science, Technology, Engineering and Mathematics (STEM) education in America’s public schools,
while providing Triple Bottom Line benefits to its investors, the Company shall seek to develop an appropriate subsidy
model to the greatest extent possible without compromising or potentially placing investor return at risk.
Note that as the cost of the Apple –Pad-based iGlobe® Mini DVG is reduced through economies of scale the requirement to
achieve an average of 17 merchant advertising sales can be dramatically reduced. This may result in the viability to expand
market penetration through (a) increased subsidies to low-income school districts and (b) allow the Company to more
rapidly transition to a web-based merchant advertising subsidy model.
DISCLAIMER: THE COMPANY MAKES NO CLAIM AS TO THE VIABILITY OF SUBSIDY-BASED REVENUE. THE
COMPANY WILL SEEK TO MODEL SUBSIDY-BASED REVENUE IN SELECT DEMOGRAPHIC MARKETS ACROSS
GEOGRAPHIC REGIONS IN ORDER TO DEVELOP A VIABLE SUBSIDY-BASED REVENUE MODEL, WITH THE GOAL
TO PROVIDE ACCESS TO INTEGRATED SD MODELING AND DVG INSTRUCTION TECHNOLOGIES TO SCHOOLS
WITH AIM DIGITAL CONTENT BUDGETS AT OR LOWER THAN THE NATIONAL AVERAGE PER SCHOOL OF
$27,667, OR THE NATIONAL AVERAGE AIM DIGITAL CONTENT BUDGET AT THE TIME OF SCHOOL
ENROLLMENT.
PART 1: BUSINESS PLAN | CONFIDENTIAL
SolarQuest L3C, Business Plan, Part 1 | FN: 001_01_SQ_L3C_26_MAR_2015_VSBOE_P1 Page 42 of 58
Section 10, Preliminary Pro Forma
10.1. Key Assumptions
Section 10 provides a Preliminary Pro Forma modeled at full business operations of the Company beginning in Year-1. The
model details (i) a Year-1 Monthly Cash Flow and (ii) a five-year Income and Expense statement for Year-2 through Year-6.
Year-1 Monthly Cash Flow assumes a Month-1 and Month-2 Capital Requirement of $250,000 for each month; Months 3-7
assume a Capital Requirement of $100,000 per month. The model assumes a $1,000,000 capital raise by the end of Month-7;
$577,500 in annual revenue; $457,750 in Cost of Goods Sold; Revenue Before Expenses of $119,750; Expenses of $1,009,487;
an Operating Loss of $889,737; and a Cash Balance Forward of $110,263.
This is a challenging scenario at start-up and may require the Company to scale-down expectations and reduce expenses by
50% or more, with the goal to achieve the following objectives: (a) enroll 100 schools in the Carbon Research Collaborative
with Statements of Interest and/or Cooperative Agreements; (b) develop a DVG visualization manual for enrolled high
school students to compete in the NOAA National Ocean Sciences Competition for High School Students (Section 12.1); (c)
produce the first two issues of the iglobe.today™ journal; (d) test the merchant advertising and consumer subscription sales
market for the iglobe.today™; and (e) develop the iGlobe® Mini iPad-based Flat-screen DVG technology option for beta-
testing no later than October 2015.
In the full business operations and scale-down models, additional capital is required beyond the $1,000,000 VSBOE capital
raise. The capital requirement may be sourced from either a Year-2 VSBOE offering or an Interstate Offering under
Regulation D (506) of the Securities Act of 1933 after the first full six months of operations. This determination is dependent
upon investor participation within the State of Vermont as per residency requirements of the Vermont Department of
Financial Regulation (DFR) Rule No. S-2014-1. The Company is concerned about the depth of the investor pool in Vermont
to successfully raise the $1,000,000 VSBOE offering over two years.
Revenue is projected from merchant advertising sales in the iglobe.today™ journal based upon 34 ad sales per year per school
at an average ad cost of $300.00. The iglobe.today™ publication is an archival-grade publication with printing and
distribution costs at a projected five-year average 52% of gross advertising sales at the level of 34 ad sales per school at the
average ad sale of $300.
The Green Earth Corps™ (an optional publication model) is a newspaper grade publication and may have the impact of
significantly reducing publication costs. However, the Company assumes greater advertiser participation and consumer
acceptance of the archival-grade iglobe.today™ publication. This assumption will be tested in Year-1 before committing to
iglobe.today™ at-scale in Year-2 through Year-6. See Section 11.2 (3) for prototype Green Earth Corps™ newspaper grade
publication.
Alternative revenue models:
Over time the Company will develop an on-line publication iglobe.today™ and/or Green Earth Corps™ journal(s) and
transition to online advertising model, which may dramatically reduce expenses and increase revenue by permitting greater
merchant participation year-round at lower ad rates.
At-scale, meaning an enrollment of greater than approximately 30% of the K-12 school market or 29,330 public schools, it
may be feasible for the Company to transition its revenue model to direct AIM school purchases at a price point below $800,
and perhaps as low as $500 for the Apple iPad-based iGlobe® Mini DVG classroom teacher subscription. This model would
generate annual gross revenue of $14.7 million with expenses of approximately $7 million. As school subscription
enrollment increases at-scale, product pricing may be further reduced. The Company makes no claim as to the lowest price
threshold for profitability at-scale. However, it should be noted that if the Company could achieve an annual teacher
subscription market penetration of 50% of America’s science teachers at a product price point of $200, annual gross revenue
would reach nearly $20 million with nominal increases in operating expenses. As sales data becomes available, the
Company will evaluate options to adjust pricing and investment requirements to transition to an AIM-based revenue model
and achieve enrollment at-scale.
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10.2. Year-1 Monthly Cash Flow
Year-1 Monthly Cash Flow assumes a Month-1 and Month-2 a Capital Requirement of $250,000 each month; Months 3-7
assumes a Capital Requirement of $100,000 per month. The model assumes a $1,000,000 capital raise by the end of Month-7
with $500,000 raised in the first two months. Sections 10.2.1-6 offer alternative operational adjustments to reduce
expenditures.
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PART 1: BUSINESS PLAN | CONFIDENTIAL
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10.2.1. VSBOE Investment Strategy
Assumptions: The Company will rely principally upon a known network of qualified investors, including
members of Vermont Climate Change Economy Council of the Vermont Council on Rural Development (VCRD)
and participants in the recent VCRD summit – "Creating Prosperity & Opportunity Confronting Climate Change
Summit" – to achieve Month-1 and Month-2 investment targets.
Notifications of the investment opportunity pending approval of advertising materials by the State of Vermont
Department of Financial Regulation will be sent to approximately 14,000 Vermont-based unaccredited investors to
achieve Month-3 through Month-7 VSBOE investment targets. Investment shortfalls based on the schedule above
will require expenditure reductions and may trigger the filing of an Interstate Offering under Regulation D (506) of
the Securities Act of 1933 after six months to raise capital in the larger U.S. investor pool.
10.2.2. Revenue
Assumptions: Month-7 and Month-8 revenue projections are based upon the initial 100-school enrollment
achieved during a Month-1 through Month-3 enrollment campaign. Enrollment will be achieved principally with
State of Vermont and New England region schools under the Company’s strategic marketing partnership
agreement with Global Challenge.
Additional enrollment support will be provided by the Vermont Energy Education Program (VEEP), a Vermont-
based non-profit corporation with 90 school program membership exclusively in Vermont public schools.
Merchant advertisers will include a combination of state-wide and local merchants due to Vermont’s rural
demographics.
10.2.3. Cost of Goods Sold
10.2.4 Revenue Before Expenses
Assumptions: Year-1 total Revenue Before Expenses is $119,750, assuming full operational model.
5 - Ye a r In c o me & Exp e n s e Apr Ma y Jun Jul Aug S e p Oc t Nov De c
Mo - 1 Mo - 2 Mo - 3 Mo - 4 Mo - 5 Mo - 6 Mo - 7 Mo - 8 Mo - 9
In ve s tme n ts / S ta rtin g Ba la n c e
Ca pita l Re quire me nt 250,000 250,000 100,000 100,000 100,000 100,000 100,000 - -
Apr Ma y Jun Jul Aug S e p Oc t Nov De c
REVENUE Mo - 1 Mo - 2 Mo - 3 Mo - 4 Mo - 5 Mo - 6 Mo - 7 Mo - 8 Mo - 9
S c hool S ubsc ription S a le s - - - - - - - - -
Adve rtis ing, iglobe .today | Gre e n Earth Corps - - - - - - 255,000 255,000 -
Consume r S ubsc riptons , iglobe .toda y - - - - - - - - 67,500
To ta l Re ve n u e - - - - - - 2 5 5 , 0 0 0 2 5 5 , 0 0 0 6 7 , 5 0 0
Apr Ma y Jun Jul Aug S e p Oc t Nov De c
Co s t o f Go o d s S o ld Mo - 1 Mo - 2 Mo - 3 Mo - 4 Mo - 5 Mo - 6 Mo - 7 Mo - 8 Mo - 9
Globa l Cha lle nge - - - - - - (25,500) (25,500) (6,750)
iGlobe S oftwa re - - - - - - (30,000) - -
iglobe .today | Gre e n Earth Corps - - - - - - (370,000) - -
To ta l Co s t o f Go o d s S o ld - - - - - - (4 2 5 , 5 0 0 ) (2 5 , 5 0 0 ) (6 , 7 5 0 )
Apr Ma y Jun Jul Aug S e p Oc t Nov De c
Mo - 1 Mo - 2 Mo - 3 Mo - 4 Mo - 5 Mo - 6 Mo - 7 Mo - 8 Mo - 9
Re ve n u e Be fo re Exp e n s e s - - - - - - (17 0 , 5 0 0 ) 2 2 9 , 5 0 0 6 0 , 7 5 0
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10.2.5. Expenses
Assumptions: This section discusses Expense reductions in the event of VSBOE investment shortfalls. Staff
Display equipment can be reduced to $5,000. Conference display system can be reduced to approximate $3,000 for
a large format HD-1080p display screen and mounting system. Salaries and benefits can be reduced to $20,000 per
month for the first 3 months ($60,000), or lower, based on deferred salaries and reduction of intern placement from
Month-3 to Month-5. Facility Lease, Insurance, Maintenance and Utilities will remain the same. DVG Technology
Development and Infrastructure can be reduced to approximately $100,000 from the $149,200 projected total under
the full operations model. Mileage and Air Fare budget can be reduced to $5,000. Conference budget can be
reduced to approximately $10,000. Communications, General & Office Supplies can be reduced to $5,000. The
Contingency could be reduced to $10,000. This results in total expenses reduced from $1,009,478 to approximately
$218,000 (an estimated 78% reduction).
At a 78% reduction in operating expenses it can be assumed that revenue will be reduced by approximately 85% to
a projected $86,625. The Company’s strategy under this scenario would be to limit the initial revenue model
testing to school districts with strong merchant market demographic profiles. Based on the successful outcomes of
limited revenue model testing, the Company would prepare an Interstate Offering under Regulation D (506) of the
Securities Act of 1933 after Month-6 and prior to Month-9, depending on the total VSBOE offering investment
level.
10.2.6. Revenue Less Expenses / Cash Balances
Note: This model assumes that no commissions are paid on merchant advertising sales during Year-1. (A
commission of 30% on merchant advertising sales is budgeted for Year-2 through Year-6.) The relatively low cash
balance projected for Month-7 suggests that even at total VSBOE investment level of $1 million, budget cutbacks
are required to sustain operations at end of Month-6 and into Year-2.
Apr Ma y Jun Jul Aug S e p Oc t Nov De c
EXP ENS ES Mo - 1 Mo - 2 Mo - 3 Mo - 4 Mo - 5 Mo - 6 Mo - 7 Mo - 8 Mo - 9
Eq u ip me n t
S ta ff DVG Displa y Kits (5,745) (5 ,745) (5 ,745) (5 ,745) (5 ,745) (5 ,745) (5 ,745) (5 ,745) (5 ,745)
Confe re nc e Displa y S ys te m (10,000) (10,000) - - - - - - -
P e rs o n n e l
S a la rie s (38,243) (38,243) (56,243) (56,243) (56,243) (41,160) (41,160) (41,160) (41,160)
Be ne fits (10,326) (10,326) (13,926) (13,926) (13,926) (11,113) (11,113) (11,113) (11,113)
Op e ra tin g
Fa c ility Le a se (500) (2 ,400) (2 ,400) (2 ,400) (2 ,400) (2 ,400) (2 ,400) (2 ,400) (2 ,400)
Insura nc e , Ma inte na nc e & Utilitie s (1,350) (1,350) (1,350) (1,350) (5 ,072) (5 ,072) (5 ,072) (5 ,072) (5 ,072)
Fixture s & Furnishings - (19,800) (3 ,960) (3 ,960) (792) (396) - - -
DVG Te c hnology De v. / Infra s truc ture (19,100) (19,100) (20,000) (20,000) (20,000) (20,000) (19,100) (5 ,950) (5 ,950)
Tra ve l - Co n fe re n c e
Mile a ge / Air Fa re (2,083) (2 ,083) (2 ,083) (2 ,083) (2 ,083) (2 ,083) (2 ,083) (2 ,083) (2 ,083)
Confe re nc e Budge t (8,333) (8 ,333) (8 ,333) (8 ,333) (8 ,333) (8 ,333) (8 ,333) (8 ,333) (8 ,333)
Op e ra tin g &Co n tin g e n c y
Cloud S e rvic e s - - - - - - - - -
Communic a tions (750) (750) (750) (750) (750) (750) (750) (750) (750)
Ge ne ra l & Offic e S uppplie s (250) (250) (250) (250) (250) (250) (250) (250) (250)
Continge nc y (9,668) (11,838) (11,504) (11,504) (11,559) (9 ,730) (9 ,601) (8 ,286) (8 ,286)
To ta l Exp e n s e s (10 6 , 0 9 9 ) (12 9 , 9 6 9 ) (12 6 , 2 9 5 ) (12 6 , 2 9 5 ) (12 6 , 9 0 4 ) (10 6 , 7 8 3 ) (10 5 , 3 5 8 ) (9 0 , 8 9 3 ) (9 0 , 8 9 3 )
Apr Ma y Jun Jul Aug S e p Oc t Nov De c
Mo - 1 Mo - 2 Mo - 3 Mo - 4 Mo - 5 Mo - 6 Mo - 7 Mo - 8 Mo - 9
REVENUE LES S EXP ENS ES
Op e ra tin g B a la n c e (P re - Ta x P ro fit) (10 6 , 0 9 9 ) (12 9 , 9 6 9 ) (12 6 , 2 9 5 ) (12 6 , 2 9 5 ) (12 6 , 9 0 4 ) (10 6 , 7 8 3 ) (2 7 5 , 8 5 8 ) 13 8 , 6 0 7 (3 0 , 14 3 )
CAS H B ALANCE
S ta rting Ba la nc e 250,000 393,901 363,932 337,638 311,343 284,439 277,656 1,798 140,405
Ope ra ting Ba la nc e (106,099) (129,969) (126,295) (126,295) (126,904) (106,783) (275,858) 138,607 (30,143)
Ca sh Ba la nc e 14 3 , 9 0 1 2 6 3 , 9 3 2 2 3 7 , 6 3 8 2 11, 3 4 3 18 4 , 4 3 9 17 7 , 6 5 6 1, 7 9 8 14 0 , 4 0 5 110 , 2 6 3
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10.3. Year-2 thru Year-6 Revenue & Expense – Projections
Projected 5-Year Income & Expense model for Year-2 through Year-6 assumes the full VSBOE capital raise and full
operations in Year-1, and additional capitalization under a Year-2 VSBOE or Interstate Offering under Regulation D (506).
No internship expenses are posted under salaries. However, the 30% commission payments are posted under iglobe.today™
consisting of slightly more than 50% of expenses in that line item. Sections 10.3.1 through 10.3.9 provide additional
information on the 5-Year Income & Expense model assumptions, below, beginning with Year-2.
SolarQuest L3C FN:001_SQL3C_003_01_v4
5-Year Income & Expense
Year-1 Year-2 Year-3 Year-4 Year-5 Year-6
Investments / Starting Balance
Capital Requirement 1,000,000 1,000,000 - - - -
Cash On-Hand - 110,263 238,705 173,286 1,061,182 2,795,714
Starting Balance 1,000,000 1,110,263 238,705 173,286 1,061,182 2,795,714
REVENUE - - - -
School Subscription Sales - - - - - -
Advertising, iglobe.today | Green Earth Corps 510,000 1,020,000 3,990,750 6,961,500 9,932,250 12,903,000
Consumer Subscriptions, iglobe.today 67,500 - - - - -
Total Revenue 577,500 1,020,000 3,990,750 6,961,500 9,932,250 12,903,000
Cost of Goods Sold
Global Challenge (57,750) (129,430) (506,395) (883,360) (1,260,325) (1,637,290)
iGlobe Software (30,000) (30,000) (117,375) (204,750) (292,125) (379,500)
iglobe.today (370,000) (578,800) (2,151,875) (3,557,190) (4,888,225) (6,350,300)
Total Cost of Goods Sold (457,750) (738,230) (2,775,645) (4,645,300) (6,440,675) (8,367,090)
Revenue Before Expenses 119,750 281,770 1,215,105 2,316,200 3,491,575 4,535,911
EXPENSES
Equipment
S taff DVG Display Kits (51,705) (68,940) (27,443) (20,429) (47,872) (40,858)
Conference Display System (20,000) (20,000) (3,000) (3,000) (3,000) (3,000)
Personnel
Salaries (409,857) (444,000) (613,776) (709,782) (904,610) (1,075,701)
Benefits (106,881) (119,880) (165,720) (191,641) (244,245) (290,439)
Operating
Facility Lease (19,700) (28,800) (30,240) (31,752) (33,340) (35,007)
Insurance, Maintenance & Utilities (30,760) (60,860) (63,903) (67,098) (70,453) (73,976)
Fixtures & Furnishings (28,908) (19,800) (3,950) (3,950) (3,950) (3,950)
DVG Technology Dev. / Infrastructure (149,200) (149,200) (76,660) (79,243) (81,955) (84,803)
Travel - Conference
Mileage / Air Fare (18,750) (25,000) (26,750) (28,623) (30,626) (32,770)
Conference Budget (75,000) (100,000) (107,000) (114,490) (122,504) (131,080)
Operating &Contingency
Cloud Services - - (30,000) (30,000) (30,000) (22,500)
Communications (6,750) (9,000) (12,521) (15,143) (21,285) (26,528)
General & Office Supplies (2,250) (3,000) (3,150) (3,308) (3,473) (3,647)
Contingency (91,976) (104,848) (116,411) (129,846) (159,731) (182,426)
Total Expenses (1,009,487) (1,153,328) (1,280,524) (1,428,304) (1,757,044) (2,006,682)
REVENUE LESS EXPENSES
Operating Balance (Pre-Tax Profit) (889,737) (871,558) (65,419) 887,897 1,734,532 2,529,228
CASH BALANCE
S tarting Balance 1,000,000 1,110,263 238,705 173,286 1,061,182 2,795,714
Operating Balance (889,737) (871,558) (65,419) 887,897 1,734,532 2,529,228
Cash Balance 110,263 238,705 173,286 1,061,182 2,795,714 5,324,943
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10.3.1 Investment & Starting Balances
Assumptions:
Cash On-Hand of $1,110,263 assumes combination of Year-1 Revenue and Vermont Small Business
Offering Exemption (VSBOE) in Year-2, or alternately, an Interstate Offering under Regulation D (506).
10.3.2. Revenue
Assumptions:
Advertising revenue assumes $300 per ad (average) at 17 ads per issue (2 issues).
Consumer Subscriptions, iglobe.today: To be modeled during Year-1 Business Operations (Section 9.4.)
10.3.3. Cost of Goods Sold
Assumptions:
Global Challenge: 10% of Gross Sales.
iGlobe® Software: Wholesale cost of iGlobe® DVG instructional technology ($300 per school).
iglobe.today™: (Section 9.4. includes 30% commission on advertising revenue.)
10.3.4. Revenue Before Expenses
10.3.5 Expenses: Equipment
Assumptions:
Staff DVG Display Kits: Expenditure per employee of $6,894. See Exhibit E.
Year-2 Year-3 Year-4 Year-5 Year-6
Investments / Starting Balance
Capital Requirement 1,000,000 - - - -
Cash On-Hand 110,263 238,705 173,286 1,061,182 2,795,714
Starting Balance 1,110,263 238,705 173,286 1,061,182 2,795,714
Year-2 Year-3 Year-4 Year-5 Year-6
REVENUE - - - -
School Subscription Sales - - - - -
Advertising, iglobe.today | Green Earth Corps 1,020,000 3,990,750 6,961,500 9,932,250 12,903,000
Consumer Subscriptions, iglobe.today - - - - -
Total Revenue 1,020,000 3,990,750 6,961,500 9,932,250 12,903,000
Year-2 Year-3 Year-4 Year-5 Year-6
Cost of Goods Sold
Global Challenge (129,430) (506,395) (883,360) (1,260,325) (1,637,290)
iGlobe Software (30,000) (117,375) (204,750) (292,125) (379,500)
iglobe.today (578,800) (2,151,875) (3,557,190) (4,888,225) (6,350,300)
Total Cost of Goods Sold (738,230) (2,775,645) (4,645,300) (6,440,675) (8,367,090)
Year-2 Year-3 Year-4 Year-5 Year-6
Revenue Before Expenses 281,770 1,215,105 2,316,200 3,491,575 4,535,911
Equipment
Staff DVG Display Kits (68,940) (27,443) (20,429) (47,872) (40,858)
Conference Display System (20,000) (3,000) (3,000) (3,000) (3,000)
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10.3.6. Personnel - Salaries & Benefits
Assumptions:
Base Salaries for Management and Staff; Benefits total 27% of Base Salaries
Full-time Program Personnel: Year-2 (10); Year-3 (14); Year-4 (17); Year-5 (24); Year-6 (29)
Additional Sales Staff: Year-2 (5); Year-3 (20); Year-4 (35); Year-5 (50); Year-6 (65)
Total Program & Sales Staff: Year-2 (15); Year-3 (34); Year-4 (52); Year-5 (74); Year-6 (94)
10.3.7. Operating - Facility
Assumptions:
Facility Lease: Gove Hill Conference Center lease.
Insurance, Maintenance, Utilities: Actual costs based upon Gove Hill Conference Center Operations.
Fixtures & Furnishings: Estimated costs – Offices and Common Areas – based upon staffing pattern.
DVG Technology Dev. / Infrastructure: Budget for iGlobe® Mini DVG and IT Infrastructure for Cloud
Services.
10.3.8. Travel & Conferences
Assumptions:
Mileage / Air Fare: Management travel budget.
Conference Budget: Conference budget, including travel.
10.3.9. Operating & Contingency
Assumptions:
Cloud Services: Year-2, managed internally; Years-3-6, budget for subcontract Cloud services.
Communications: Telephone and Internet Services: Budget
General & Office Supplies: Budget
Contingency: 1% of subtotal of expenses.
Year-2 Year-3 Year-4 Year-5 Year-6
Personnel
Salaries (444,000) (613,776) (709,782) (904,610) (1,075,701)
Benefits (119,880) (165,720) (191,641) (244,245) (290,439)
Operating
Facility Lease (28,800) (30,240) (31,752) (33,340) (35,007)
Insurance, Maintenance & Utilities (60,860) (63,903) (67,098) (70,453) (73,976)
Fixtures & Furnishings (19,800) (3,950) (3,950) (3,950) (3,950)
DVG Technology Dev. / Infrastructure (149,200) (76,660) (79,243) (81,955) (84,803)
Travel - Conference
Mileage / Air Fare (25,000) (26,750) (28,623) (30,626) (32,770)
Conference Budget (100,000) (107,000) (114,490) (122,504) (131,080)
Operating &Contingency
Cloud Services - (30,000) (30,000) (30,000) (22,500)
Communications (9,000) (12,521) (15,143) (21,285) (26,528)
General & Office Supplies (3,000) (3,150) (3,308) (3,473) (3,647)
Contingency (104,848) (116,411) (129,846) (159,731) (182,426)
Total Expenses (1,153,328) (1,280,524) (1,428,304) (1,757,044) (2,006,682)
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Section 11, Risk Management & Disclaimers
11.1. General Risks (See Exhibit H)
INVESTMENT IN THESE SECURITIES INVOLVES SIGNIFICANT RISKS AND IS SUITABLE ONLY FOR
PERSONS WHO HAVE NO NEED FOR IMMEDIATE LIQUIDITY IN THEIR INVESTMENT AND WHO CAN
BEAR THE ECONOMIC RISK OF A LOSS OF THEIR ENTIRE INVESTMENT. INVESTORS SHOULD BE
AWARE THAT THEY MAYBE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME. SEE EXHIBIT B, ITEM #4 FOR RISK EVALUATION TABLE AND
ADDITIONAL RISKS, AS IDENTIFIED.
The Company is a start-up company and has no prior operating experience (11.2.1). Digital Video Globe (DVG) technologies
are emerging instructional technologies in the K-12 education markets; consequently, classroom teachers are not generally
aware of the potential benefits of DVG technologies as an instructional aide. (11.2.2) Teachers and schools may resist
purchasing or using a technology with which they have no direct experience in the classroom. (11.2.3) All Instructional
Material (AIM) public school budgets remain constrained with national average K-12 AIM spending at $67.69 per student
per year. (11.2.4) The Company’s merchant advertising-based revenue model is unproven and may compete with pre-
existing school fundraising efforts. (11.2.5) The Company’s organizational structure as a Low-Profit Limited Liability
Company (L3C) is uncommon. Investors may be wary of investing in a business venture that is mission driven, as they may
perceive that the Company’s charitable purpose conflicts with the protection of their investment interest. (11.2.6) Risks
expressed herein and other unknown risks (Exhibit B.) require investors to consider that their investment in the Company
may not be recovered.
11.2. Risk Management (See Section 12, Opportunities and Exhibit H.)
1. Risk: The Company is a start-up. The Company is a start-up company and has no prior operating experience.
Risk Management: The Company’s founder is a serial entrepreneur and accomplished STEM educational
technology researcher. The Company is directly built upon the foundation of for-profit and non-profit
business ventures in Education for Sustainability (ESD) since 1996, including EcoSage Corporation, the
SolarQuest Education Foundation, Inc., the Renewable Nations Institute, Inc., and The Global Challenge
Award, Inc. (Section 6.6.) The Company’s founder and managing member is currently the President of the
Board of Directors of Global Challenge. Taken together as a whole in excess of $6 million in STEM-based
instructional technology research and development, including the grant awards listed in Section 5.2., have
directly contributed to the Company’s purpose, mission, goals and objectives. This background provides a
reasonable level of evidence to investors that the Company has the knowledge and experience to succeed
under a STEM-based instructional technology research business model. Furthermore, the Company’s Co-
founder and Vice President, Jim Hurt, has 10-years of environmental journal publishing experience.
2. Risk: Teachers lack knowledge about DVG instructional technologies. Digital Video Globe (DVG)
technologies are emerging instructional technologies in K-12 education markets; consequently, classroom
teachers are not generally aware of the potential of DVG technologies as an instructional aide. Risk
Management: The Company’s founder and managing member has personally interviewed and demonstrated
iGlobe® DVG technology to hundreds of K-12 administrators, science teachers and students, including at
three recent events: the Vermont Tech Jam (October 2014), the Vermont Youth Environmental Summit
(November 2014), the Christa McAuliffe Technology Conference (December 2014). Additionally, over a one
week period from January 15-22, 2015, the Company conducted a market survey to 355 K-12 public schools in
the New England region resulting in 12.3% of the contacts who opened the email solicitation submitting a
response as demonstrated by the online submittal of Letters of Interest and/or Requests for Information in the
Carbon Research Collaborative. The 12.3% response rate is well above the 1% norm for marketing and highly
suggests the market viability for use of the Company’s DVG instructional technology products and
curriculum services in the classroom. (Section 8.2.)
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3. Risk: Teachers lack experience with DVG instructional technologies. Teachers may resist recommending
the purchase or use a technology with which they have no direct experience in the classroom. This may result
in lower enrollment projections. Risk Management: The Company intends to release the Cloud-base iPad
iGlobe® Mini App technology prior to October 2015, with a 1-week trial subscription. This approach to
marketing and sales eliminates costly teacher product demonstrations and provides teachers with direct
product experience.
4. Risk: All Instructional Material (AIM) K-12 public school budgets remain constrained. All Instructional
Material (AIM) public school budgets remain constrained with national average K-12 AIM spending at $67.69
per student per year. (Section 7.3, AIM Spending.) Risk Management: The Company is providing a subsidy
program for the purchase of iGlobe® DVG instructional technology on an annual subscription basis. This may
require the Company to restrict its enrollment to wealthy school districts. (Section 8.4, Priority Geographic
Markets.) The Company believes that at-scale in the U.S. public school market that a direct AIM-based
subscription revenue model may be feasible, and that eliminating the subsidy model may be achievable. The
Company has no basis of claiming that the non-subsidy model at-scale is feasible, as instructional technology
expenditures generally require multi-year decision-making and budget approval unless the price barrier can
be eliminated. Achieving a product cost threshold below $800 may eliminate the perceived or real price
barrier for most public schools when weighted against STEM-based instructional technology outcomes.
5. Risk: The Company’s merchant advertising-based revenue model is unproven. The Company’s merchant
advertising-based revenue model is unproven and may compete with pre-existing school fundraising efforts.
The key issue for the Company is not whether merchant advertisers will participate in the subsidy program,
but rather the number of advertisers within the school district merchant market. This may result in the
possibility that the costly iglobe.today™ may not be a financially viable subsidy mechanism. Risk Management:
The Company will test two options for the subsidy program: (i) direct iglobe.today™ copy sales within school
demographic markets; and (ii) the substitution of the costly iglobe.today™ archival-grade publication with the
lower cost Green Earth Corps™ newspaper print-based journal. This strategy may have the impact to reduce
the merchant advertising base without reducing pre-tax profit. (Section 12.2.) The iglobe.today™ merchant
advertising revenue model assumes generating an average of $10,200 gross ad revenue per school based upon
34 advertisers per year at an average ad rate of $300. The Company is cautious not to begin with the lower
cost Green Earth Corps™ journal option due to advertiser and consumer appeal for the higher cost archival-
grade format of iglobe.today™.
6. Risk: The Company is organized as a L3C. The Company’s organizational structure as a Low-Profit Limited
Liability Company (L3C) is uncommon. Investors may be wary of investing in a business venture that is
mission driven, as they may perceive that the Company’s charitable purpose conflicts with the protection of
their investment interest. Consequently, the Company may fall short of its investment target. Risk
Management: The Company’s selection of the L3C business structure is designed to target two investor groups:
(i) Program Related Investors (PRIs), such as charitable foundations and philanthropists; and
(ii) Unaccredited mission-driven investors.
These investor types are not in great number in the State of Vermont. The Company may need to seek out-of-
state investors under the Uniform Limited Offering Exemption Regulation D of the Securities Act of 1933. The
Company will seek to meet its funding target of $1 million under the VBSOE filing; however, if the Company
is not on-track for a $1 million capital raise after six months from the VSBOE filing with the State of Vermont
Department of Financial Regulation (DFR), the Company will seek an Interstate Offering under Regulation D
(506) of the Securities Act of 1933. Anticipating that this risk may occur, the Company will focus on
demonstrating (a) that K-12 enrollment is scalable, and (b) that the subsidy revenue model is financially viable
with either of the two print formats – iglobe.today™ or the Green Earth Corps™ journal.
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11.3. Regulations & Disclaimers
The Company is legally bound to State of Vermont Department of Financial Regulation (DFR) Rule No. S-2014-1. Rule No.
S-2014-1, known as the Vermont Small Business Offering Exemption ("VSBOE"), which provides for the sale of intrastate
securities. The Rule became effective as of June 16, 2014.
This document and all the documents pertaining to this document, including SolarQuest L3C Articles of Organization and
the SolarQuest L3C Operating Agreement, are in compliance of DFR Rule No. S-2014-1, and the Company shall at all times
remain compliant with the DFR regulations and reporting requirements.
The following Statements are subject to DFR Rule No. S-2014-1. The complete text of the Rule No. S-2014-1 is available at
the following in Exhibit F, or at the following URL: http://www.dfr.vermont.gov/reg-bul-ord/rule-providing-vermont-small-
business-offering-exemption
Letter references (below) refer to DFR Rule No. S-2014-1 (some referenced items may be paraphrased):
(a). VSBOE is available under Sections 5202(13)(C) and 5203 of the Vermont Uniform Securities Act (the "Act").
Pursuant to VSBOE, the offer or sale of a security by an issuer shall be exempt from the requirements of 9
V.S.A. SS 5301 - 5305 and 9 V.S.A S5504, and each individual who represents an issuer in an offer or sale shall
be exempt from the requirements of 9 V.S.A. S 5402(a) if the offer or sale is conducted in accordance with each
of the following requirements:
(1) The issuer of the security shall be a business entity formed under the laws of the State of
Vermont and registered with the Secretary of State;
(2) The transaction shall meet the requirements of the federal exemption for intrastate
offerings in section 3(a)(1I) of the Securities Act of 1933, 15 U.S.C. S 77c(a)(ll), and SEC
Rule 147, 17 C.P.R. 230.147; and
(3) The issuer shall not accept more than ten thousand dollars ($10,000) from any single
purchaser unless the purchaser is an accredited investor as defined by rule 501 of SEC
regulation D, 17 C.P.R. 230.501.
(d). The sum of all cash and other considerations to be received for all sales of the security (in reliance upon this
exemption does not exceed the cap provided in this subdivision) is one million dollars ($1,000,000), if the
issuer has not undergone and made available to each prospective investor and the Commissioner the
documentation resulting from a financial audit with respect to its most recently completed fiscal year and
meeting generally accepted accounting principles.
(e). All funds received from investors shall be deposited into a federally insured depository institution located
within the State of Vermont. All the funds shall be used in accordance with representations made to investors.
(g). The duration of the offering period shall not exceed twelve months, although the issuer may extend the
offering in one year increments by amending its initial filing (including payment of a renewal fee) in
conformance with requirements of the Act.
(k). The issuer shall reasonably believe that the purchaser either alone or by or through a representative has such
knowledge as to be capable of evaluating the merits and the risks of the investment.
(l). An offering document shall be delivered to each Offeree twenty four hours prior to any sale of securities in
reliance upon VSBOE which meets the following requirements:
(1) The offering document must contain a legend which substantially conforms to the
following:
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(A) INVESTMENT IN THESE SECURITIES INVOLVES SIGNIFICANT RISKS AND IS SUIT
ABLE ONLY FOR PERSONS WHO HAVE NO NEED FOR IMMEDIATE LIQUIDITY IN THEIR
INVESTMENT AND WHO CAN BEAR THE ECONOMIC RISK OF A LOSS OF THEIR ENTIRE
INVESTMENT. INVESTORS SHOULD BE AWARE THAT THEY MAYBE REQUIRED TO
BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
TIME.
(B) IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN
EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE
MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED
BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY.
FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE
ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
(C) THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER
THE SECURITIES ACT OF 1933 AND THE VERMONT UNIFORM SECURITIES ACT
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
PURSUANT TO THIS ITEM 1, ABOVE, AND ITEM 2, BELOW, THE COMPANY, AS
ISSUER OF THE SECURITIES, WILL REQUIRE A SIGNED AFFIDAVIT BY THE
PURCHASER OF SAID SECURITIES CONFIRMING (I) RESIDENCY IN THE STATE OF
VERMONT, AND (II) ACKNOWLEDGEMENT THAT THE PURCHASER HAS READ AND
UNDERSTOOD THE REQUIRED LEGENDS, THE CONTENT OF THE BUSINESS PLAN
(PART 1), THE OFFERING AGREEMENT (PART 2.), AND EXHIBITS (PART 3).
(2) The offering document must be signed by a duly authorized representative of the issuer
who by such action shall certify that the issuer has made reasonable efforts to verify the
material accuracy and completeness of the information therein contained.
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Section 12, Opportunities
12.1. National Ocean Sciences Competition for High School Students
On February 20, 2105, the Department of Commerce, National Oceanic and Atmospheric Administration, (released
solicitation number SEC-OED-2015-2004390, which provides a grant opportunity for a period of five years (Aug. 2015 – Aug.
2020) to develop and operate a National Ocean Sciences Competition for High School Students.
This solicitation supports NOAA's Education Strategic Plan with a specific focus on the following outcomes:
Outcome 1.2: Educators understand and use environmental literacy principles;
Outcome 1.3: Educators, students, and/or the public collect and use ocean, coastal, Great Lakes,
weather, and climate data in inquiry and evidence-based activities;
Outcome 1.4: Lifelong learners are provided with informal science education opportunities focused on
ocean, coastal, Great Lakes, weather and climate topics;
Outcome 2.3: A diverse pool of students with degrees in science, technology, engineering, mathematics
and other fields critical to NOAA’s mission connect to career paths at NOAA and in
related organizations.
Private for-profit entities are not eligible for this opportunity; hence the Company must collaborate with eligible applicants.
Eligible applicants for this grant opportunity include: city or township governments; Native American tribal organizations
(other than Federally recognized tribal governments); special district governments; state governments; private institutions
of higher education; nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education;
nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education; public and State controlled
institutions of higher education; Native American tribal governments (Federally recognized); and county governments.
Proposed projects must be between three and five years in duration and have federal requests of $1,500,000 to $2,100,000 for
all years of the project with annual federal requests of no more than $300,000 for year-1 and $450,000 for all subsequent
years. The funding levels for this grant award for the scope of program activities specified in the RFP include a “robust
evaluation” to monitor the “quality of the experience for the participants (be they students, teachers, or volunteers)” and
measure the “impact of the program on the participants.”
The Company will submit a proposal to the NOAA awardee on the basis of a “no-exchange of funds” criterion in
collaboration with The Global Challenge Award, Inc. to: (i) offer iGlobe® Mini DVG technology and curriculum to support
high school entrants in the Competition by conducting original research utilizing NOAA and NASA remote sensing satellite
infrastructure, including the “A” train, to generate original, inquiry-based data visualizations for viewing on DVD
technologies; and (ii) to refer participants in the Carbon Research Collaborative to National Ocean Sciences Competition.
This approach would permit the Company to leverage the national and regional enrollment and outreach efforts of NOAA
and the selected Competition grantee.
Additionally, the Company (and Global Challenge) would also participate in the Clinton Global Initiative (CGI) Oceans
Action Network and Oceans Management Annual Meeting with a Commitment to Action to support the Competition. The
Company’s Founder and Managing Member participated in two previous CGI Commitments to Action: (i) the Intertribal Council
On Utility Policy Green Jobs Initiative (2010-13), and (ii) the Renewable Nations Institute (2012-13). The CGI Oceans Action
Network management team is extending an invitation to the Company for Oceans Action Network membership and a Commitment
to Action. See: https://www.clintonfoundation.org/clinton-global-initiative/meetings/oceans/2015
The Company proposes to submit a proposal to the Competition awardee after awardee selection date of June 30, 2015. The
Company has communicated with NOAA Program Officer, Stacey Rudolph, who will notify the Company after the grant
awardee has been chosen. The proposed start date is no sooner than August 1, 2015. Only one award will be granted under
this solicitation.
See the NOAA RFP abstract and web link to the NOAA solicitation, below:
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REQUEST FOR PROPOSALS (RFPs), NOAA GRANT: National Ocean Sciences Competition for High School Students
(a) Current Status: http://www.grants.gov/web/grants/view-opportunity.html?oppId=274680
Creation Date: Feb. 20, 2015;
Letter of Intent: N/A
Closing Date for Applications – April 21, 2015
Award Amount: $2.1 million over 5-years: Year-1: $300,000; Year-2 through Year-5: $450,000 per year.
(b) Description: The goal of this funding opportunity is to expose high school students in the United States and its
territories to the excitement of ocean sciences and related fields as well as careers in those fields through an academic
competition and related activities. Projects should be 3-5 years in duration, address at least one of the goals of NOAA's
Education Strategic Plan, involve partnerships among academic institutions; other nonprofits, including free-choice
learning venues; nongovernmental organizations; state, local and Indian tribal governments in the United States; and
have an evaluation that both monitors the quality of the experience for the participants (be they students, teachers, or
volunteers) but also the impact of the program on the participants. Partnerships with NOAA Programs and/or Offices
and/or involve NOAA scientists or other personnel as a resource are required, and partnerships with other Federal
Programs and/or Offices to help support program activities are also encouraged. The impact of the proposed project on
the target audiences must be measurable during the award period. Although it is expected that the project's focal point
will be a tiered academic competition with regional and national-level events involving approximately 2,000 students
annually, it should also provide additional learning experiences for student participants, their peers and their teachers,
such as internships and field or laboratory research experiences. The project should also provide opportunities to
connect students with scientists who can serve as mentors and introduce them to STEM careers, particularly in the
ocean sciences. The project should also demonstrate efforts to engage underserved and/or underrepresented student
communities. Proposed projects must be between three and five years in duration and have federal requests of
$1,500,000 to $2,100,000 for all years of the project with annual federal requests of no more than $300,000 for Year 1 and
$450,000 for all subsequent years. We intend to make one award under this funding announcement and anticipate it
will be made by June 30, 2015. Under this scenario, the project funded under this announcement will have a start date
no earlier than August 1, 2015.
12.2. Green Earth Corps
The Company’s President and Managing Member (d.b.a. SolarQuest Education Foundation, Inc.) and Global Challenge
participated in ITEST Award #DRL-083376 in collaboration with University of North Texas. Under the general conditions of
the grant award ($1.5 million), SolarQuest Education Foundation, Inc. and The Global Challenge Award, Inc. are obligated
to work together to ensure scalability and sustainability of the Middle Schoolers Out to Save the World (MSOSW) program
under the name style “Green Earth Corps” as a classroom curricular activity and/or after-school enrichment program. With
the integration of SolarQuest Education Foundation, Inc. into The Global Challenge Award, Inc., this obligation rests
principally with Global Challenge and is now planned as an integrated “climate change mitigation” program activity of the
Carbon Research Collaborative. Note that the NSF awarded an additional $2 million under Award #DRL-1312168 to
continue project research through 2018. See Section 5.2.4., 5.2.5. and M-SOS-W Project Overview and Principles of Project
Design, below:
Project Overview: M-SOS-W seeks to focus pre-teen enthusiasm for activity in the direction of solving real world
problems, while also promoting knowledge of and interest in science, technology, engineering and mathematics
(STEM). The project focuses on children using energy monitoring equipment in diverse home and community
settings. Student-gathered data will be used to build accurate, scientifically important models of energy
consumption in communities – under the guidance of teachers. Online and in-classroom communications, as well
as cyber-infrastructure tools such as telecommunications, data warehousing systems, visualization applications,
and web site distributions, will be used to help sixth grade students understand the relationship between energy,
economics and climate change. A pilot program in the Galapagos Islands, facilitated by SolarQuest since 2003, has
demonstrated a national impact on Ecuador stemming from the work of secondary school students in building
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data-driven models, communicating about relevant local energy alternatives and understanding the linkage
between energy consumption and biodiversity protection.
Principles of the Project Design: The theoretical foundation of the work – “Productivity-centered Service-learning
(PCSL)” – was established by the Company’s Founder and Managing Partner and demonstrated by both the
SolarQuest and Global Challenge projects. PCSL is a student empowerment model that values the contributions of
students to solve problems in an extended project-based, problem-solving learning environment in which the
relationship between Coupled Human and Natural Systems (CHNS) are assessed through the lens of
socioeconomic and environmental productivity as the primary measure (or index) of sustainability.
Image: Cover Page, Prototype Green Earth Corps Journal (2011)
Global Challenge and the Company are developing a membership-based model for youth participation the Green Earth
Corps. The program model will focus on after-school enrichment and parental involvement as an alternative to the
classroom-based instructional technology market. The EMC at Champlain College will provide a Scope of Work for a
preliminary game-based program model on or before April 30, 2015. The Company will develop a prospectus for inclusion
in this business plan as a potential revenue model once associated costs of game development can be reasonably estimated.
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Section 13, The Offering
13.1. Member Classification(s)
The Company shall have four Classifications of Members, as referenced in Part 2, Operating Agreement, Article 3, Section
3.1: Membership, as follows: Class “A,” Founding Members; Class “B,” Accredited Members; Class “C,” Private
Foundations; and “Class “D,” Unaccredited Investor. All classification of Members shall have the right to vote at an annual
meeting of Members to be held within 30 days of the end of each fiscal year, and/or at other special purpose meetings of the
Company shall require an affirmative vote of sixty-six and two-thirds percent (66-2/3%) of all of the Members, and the
simultaneous vote or consent of all of the Class B and Class C Members, for such actions as identified in Article 6 of Part 2,
Operating Agreement. (6.4)
13.2. General Terms of the Offering
Disclaimer: The General Terms of the Offering are a summary of the Articles contained in Part 2, Operating Agreement, as
referenced; the complete text of the Operating Agreement must be consulted with reference to the following terms: Each
Member shall own a Membership Interest as “Equity” in the Company, which may be expressed as a percentage, as shall be
set forth in Part 1, Operating Agreement, Company Schedule A. (3.2; Schedule A) The Manager shall update the Company
Schedule from time to time as it deems necessary to reflect accurately the information to be contained therein. (3.3; Schedule
B). The Manager may admit additional Members (a "New Member") of any class to the Company only upon the execution
by the New Member of a joinder to this Agreement in the form of Schedule B (3.4; Schedule B), which shall be counter-
signed by each New Member and the Manager, on behalf of the Company. Unless otherwise determined by all of the
Members acting unanimously, the Manager shall assign such New Member a Membership Interest in the Company in
proportion to the amount of such New Member's Capital Contribution. (3.4) Upon written request of any Member, the
Company shall provide a list showing the names, addresses and Membership Interests of all Members and the other
information required by the Act (3.5). The Company shall establish and maintain a separate “Capital Account“ for each
Member according to the rules of Treasury Regulation Section 1.704-1(b)(2)(iv). (4.5) The Members' Capital Accounts
normally will be adjusted in accordance with this Agreement on an annual or other periodic basis as determined by the
Manager, but the Capital Accounts may be adjusted more often if a New Member is admitted to the Company if
circumstances otherwise make it advisable in the judgment of the Manager. (4.5.c) No Person shall be entitled to withdraw
any part of such Person's Capital Contributions or Capital Account or to receive any Distribution from the Company, except
as expressly provided in the Operating Agreement or as required by Section 3081(1) or (5) of the LLC Act. (4.7) Except as
expressly provided otherwise in Articles 8 and 12 of the Operating Agreement, the Company shall make Distributions to the
Members in respect of their Membership Interests at any time and from time to time as determined by the Manager in the
Manager’s sole discretion; provided that such Distributions are permitted under any lending agreements to which the
Company or any of its Subsidiaries is a party and under applicable law. Subject to the foregoing and Section 5.1(b),
Distributions shall be made in the following order and priority: (i) To all Members ratably among such Members based
upon their respective Membership Interests. (5.1) Profits and Losses described in Section 4.5(b)(v) shall be allocated in a
manner consistent with the manner that the adjustments to the Capital Accounts are required to be made pursuant to
Treasury Regulation Section 1.704-1(b)(2)(iv)(j), (k) and (m). (5.3) Except as provided in Sections 5.3(b), (c) and (d), the
income, gains, losses, deductions and credits of the Company will be allocated, for federal, state and local income tax
purposes, among the Members in accordance with the allocation of such income, gains, losses, deductions and credits
among the Members for computing their Capital Accounts. (5.4) The Company may withhold from Distributions (or
allocations of Company income, gain, loss, deduction, and credit) to any Member and pay over to any federal, state, local, or
foreign government any amounts required to be so withheld by law and must allocate any such amount to the Member with
respect to which such amounts were withheld. For all purposes of this Agreement, all amounts so withheld must be treated
as amounts actually distributed to the Member with respect to which such amounts were withheld, and such amounts must
be treated as actually distributed at the time paid to the relevant government agency. (5.5) It is the intention of the Members
that the Company be managed and operated by the Manager in accordance with the purposes set forth in the Articles of
Organization of the Company and in Sections 2.2 of the Operating Agreement, and so long as the Company qualifies as a
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low-profit limited liability company under the Act. (6.1) Except in accordance with the provisions of Section 3.4, Section 8.2,
or this Article 7, no Member may transfer, sell, assign, pledge, hypothecate, bequeath, give, create a security interest in or
lien upon, place in trust (voting or otherwise), assign, or in any other way encumber or dispose of, directly or indirectly, and
whether or not by operation of law or for value ("Transfer") all or any portion of its Membership Interest. (7.1) In the event a
Member (the "Selling Member") desires to Transfer any portion or all of the Membership Interests held by such Selling
Member (the "Transferring Interests") to a person (the "Offeree"), then prior to any such Transfer becoming effective and
binding upon the Company or the Members the Selling Member shall comply with this Section 7.2 by delivering to each of
the other Members (the "Non-Selling Members") written notice of the intended Transfer (the "Transfer Notice"), which
Transfer Notice must set forth the material terms and conditions thereof, including the purchase price for the Transferring
Interests and the identity of the Offeree and any beneficial owners thereof. (7.2) In connection with any Class C Member's
requirement under Sections 4945(d)(4)(B) and 4945(h) of the Code to exercise expenditure responsibility over any Program
Related Investments (PRIs) and in addition to the quarterly financial statements provided for under Section 9.3, the Class C
Members shall have the right to obtain such full and complete reports or other documentation, and require the Company to
take such other action as may be reasonably requested to enable any Class C Member to comply with the requirements of
Section 4945(h) of the Code. (8.1) The Manager shall provide full and complete financial statements to all Members
concerning the financial condition and results of operation of the Company as promptly as practicable after the end of each
fiscal quarter. Such quarterly financial statements shall be unaudited unless the Manager, in its sole discretion, determines
that audited financial statements are necessary or appropriate. In any quarter in which any Class C Member has an
investment in the Company that is treated by such Class C Member as a PRI, each quarterly report shall be accompanied by
a statement signed by the Manager to the effect that the Company has complied with the terms governing such PRI. (9.3)
13.3. Classification, Number and Price of Units
The Company shall have only one classification of Units known as “Common Units.” The Company shall issue of total of
Ten Million (10,000,000) Common Units as follows: (i) Three Million Nine Hundred Thousand (3,900,000) Class A Units
issued upon the formation of the Company and the execution of the Low-Profit Limited Liability Operating Agreement; (ii)
Six Million One Hundred Thousand (6,100,000) in aggregate of Class B Units, Class C Units and Class D Units, of which One
Million (1,000,000) Units shall be sold pursuant to the State of Vermont Department of Financial Regulation Small Business
Offering Exemption (VSBOE Rule No. S-2014-1 (effective June 16, 2014), and Five Million One Hundred Thousand
(5,100,000) Units shall be retained by the Company and sold under subsequent VSBOE and/or Uniform Limited Offering
Exemption in compliance with Regulation D of the Securities Act of 1933, and upon the filing of a Restated Operating
Agreement with the State of Vermont Department of Financial Regulation and/or the other Regulatory A. (14.10.a) The Price
and Value of the Units (per Unit Price) is One Dollar ($1.00). The Method of Valuation is based upon prior invested capital,
estimated total cash requirement (plus a unit reserve), and the estimated enterprise value of the Company. In aggregate, a
cash and/or cash equivalent invested in prior research and development is as follows: (i) $3,900,000 the Owners and initial
investors; and (ii) $4,000,000 of public investments (program-related grants) for peer-reviewed STEM research. Estimated
total capital requirement is $2,000,000 in Year-1 and Year-2, plus a unit reserve of $3,000,000. Enterprise value is based upon
Exhibit B.3, Statement of Enterprise Value. The unit reserve is the estimated additional investment to achieve DVG market
sales at-scale in the U.S. Digital Content market. (14.10.b)
13.4 Minimum Investment / Unaccredited Investor Limit / Special Conditions
The minimum investment requirement is Two Hundred Fifty Dollars ($250.00). The Company does not have a minimum
amount for the capital raise represented by the Offering Agreement. (14.14)
THE ISSUER OF THE SECURITIES REPRESENTED BY THIS LIMITED LIABILITY COMPANY SHALL NOT ACCEPT MORE
THAN TEN THOUSAND DOLLARS ($10,000.00) FROM ANY SINGLE PURCHASER UNLESS THE PURCHASER IS AN
ACCREDITED INVESTOR AS DEFINED BY RULE 501 OF SEC REGULATION D, 17C., P.R., 230.501. (14.4)
SPECIAL CONDITIONS: THE STATE OF VERMONT DEPARTMENT OF FINANCIAL REGULATION RULE NO. S-2014-1
REQUIRES THAT THE LOW-PROFIT LIMITED LIABILITY COMPANY MUST: (1) VERIFY BY MEANS OF OBTAINING A
CERTIFICATE SIGNED BY THE PURCHASER THAT THE PURCHASER IS A RESIDENT OF THE STATE OF VERMONT (14.4)
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(OFFICIAL COMPANY LOGO)
TM