Date post: | 21-Jan-2018 |
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THE NEXT GENERATION
OF LEADERS
A RE@L OPPORTUNITY
“To raise new questions,
new possibilities, to regard old
problems from a new angle, requires
imagination and marks real advance
in science.”-Albert Einstein
Today’s Agenda
• S.T.E.M. as a Market Opportunity
• The RE@L Team
• RE@L Product - a SaaS Platform
• Distribution- Our Secret Sauce
• ROI
S.T.E.M. AS A MARKET
OPPORTUNITY
STEM
cience
echnology
ngineering
athematics
National Science and
Math Initiative
We face a shortage of workers and students proficient in math and
science. Compared to their global Peers, U.S. students recently
finished…
China
Korea
Japan
Canada
Germany
UK
27th in
mathUSA
China
Japan
Canada
Australia
Ireland
Poland
Belgium
20th in science
USA
We CAN
do
BETTER
!
+ =
H.R.1020 - STEM Education Act of 2015
Requires supported activities to include research and
development that improves understanding of learning
and engagement in informal environments and design
and testing of innovative STEM resources for such
environments to improve STEM learning outcomes and
increase engagement for elementary and secondary
school students
and teachers and the public.
Market
• 120,000 STEM
school targets
• Funding
–Federal $3.2 billion
–State & Local
Expenditures $19 billion
• Commitment
–National Defense
Authorization Act
THE RE@L TEAM
Thought Leaders
Thought Leaders
Heritage Steeped in Education
Technology
With over 5 decades of experience, RE@L understands what it is to
build, curate and distribute educational software.
Experienced Management Team
Dale LaFrenzChairman of the Board
MECC CEO & Founder
Control Data Corporation
Director K12 Marketing
Honeywell EDINET
Co‐founder
Scott Foresman Publishing
Mindscape Founder & CEO
Paul GullicksonPresident & CEO
MECC EVP & CEO
Learning Company School
SVP/CEO
Weekly Reader
Custom Publishing SVP
World Almanac SVP GM
Susan SchillingExecutive Vice President
MECC
EVP Product Development
Lucas Learning, Ltd. Founder
and CEO
New Tech Foundation CEO
Buck Institute for Education
Board President
Don RawitschExecutive Vice President
MECC Founder & Oregon
Trail Inventor
CTB/McGraw‐Hill Publishing
Director
Jostens Learning
VP Product Development
Tech & Learning –All‐Time
Top Ten Tech Influencer
RE@L PRODUCT
SAAS PLATFORM
Solution
Prepare all students to be leaders in the global marketplace with academic and professional
excellence in the fields of Science, Technology, Engineering
and Mathematics.
3 Investment Keys
for SaaS
• Critical Mass of Users and
Advocates
• Easy Content Distribution
and Updating
• Repeatable Revenue
Streams
RE@L STEM Investigations©
STEM Integration
Unique Portal
Flexible Products
Robust Investigations
Digital Learning Technology for the
Next Generation of Leaders
Mobile Platform
Teacher Testimonial
The Product Development Process
Product Line
Product Modules Content Concept Creative Coding
Water Quality X X X X
Forensic Science X X X
Green Home Construction X X
Health Habits & Life Insurance X
Invasive Species X
Nutrition & Food Sources X
Vehicle Traffic Flow X
Concert Tour Routing X
Design a Helpful Household Gadget X
Car Control Interface Design X
Moving Day –Machines Help in Moving Furniture X
Forestry – Measure Trees and Their Key Attributes X
STEAM – The Arts Applied to STEM Problem Solving X
Action and Reaction –Explains the Laws of Motion X
INVESTMENT
OPPORTUNITY
3 Investment Keys
for SaaS
• Critical Mass of Users and
Advocates
• Cost Effective and Efficient
Distribution
• Repeatable Revenue
Streams
Marketing, Sales and Implementation
Marketing• Conferences
• Focus Groups
• Social Media
Implementation
• Training
• Product Support
Sales• Direct Sales
Channel (ESAs)
• Annual license
(80% renewal)
DISTRIBUTION
OUR SECRET SAUCE
Powerful Connections
Positioned for Rapid
Success
Direct Channels
• Low cost, directdistribution
– Target State Educational Service Agencies (ESAs)
• Traditional & Emerging Marketing come together
Testimonials
“I strongly support the product
development that the team at RE@L
delivers. Students are able to learn and
sustain new materials right at their
desktop or mobile device.”
– Amy S. Perry-DelCorvo, CEO/Executive Director,
New York State Association for Computer and Technologies
in Education
Positioned for Rapid Success
Soft Launch Through Pilots
Bayside STEM Academy San Mateo, CA
Kennedy Middle School Dubuque, IA
MAST Academy, Miami Dade Schools, Miami, FL
Evelyth-Gilbert Jr. High, Evelyth, MN
Loveland Middle School, Loveland, CO
Edison STEM School Rochester, NY
Richardson West Junior Richardson, TX
Gale‐Ettrick‐Trempealeau Galesville, WI
Market – Penetration
‐
2,000
4,000
6,000
8,000
10,000
Year 16 ‐ 9
Year 26 ‐ 9
Year 3K ‐ 12
Year 4K ‐ 12
Year 5K ‐ 12
TotalMarket‐‐14,500
TotalMarket‐‐120,000
Installed Base
Schools
12,000
3.75%
10.10%
7.00%
Financial ProjectionsYear 1
Revenues
Year 2 Year 3 Year 4 Year 5
New licensing $ 167,000 $ 2,240,000 $ 7,045,000 $14,470,000 $27,735,000
Renewal licensing 99,750 1,422,750 5,366,250 12,976,500
Applications 9,706 424,215 1,390,309 3,078,306 6,132,500
Total Revenue $ 176,706 $ 2,763,965 $ 9,858,059 $22,914,556 $46,844,000
Research and Development
Development Staff 338,500 535,000 603,400 672,536 717,437
SME Consultants 48,750 45,000 55,000 57,200 59,488
Technology 444,000 359,000 457,000 475,280 494,291
Total Research andDevelopment
$ 831,250 $ 939,000 $ 1,115,400 $ 1,205,016 $ 1,271,216
Total Selling, General & Admin $ 1,075,753 $ 2,055,853 $ 2,868,029 $ 3,656,887 $ 4,632,500
Net Income (loss) before Taxes $ (1,730,298) $ (230,888) $ 5,874,630 $18,052,653 $40,940,285
Depreciation and Amortization 4,976 10,853 15,909 21,162 26,626
EBITDA $ (1,725,322) $ (220,035) $ 5,890,539 $18,073,815 $40,966,911
“Innovators who engage teachers and students,
and who invest in product design taking needs
into account, are the most likely ones to be
successful...”
“For those innovators, my
foundation wants to work with
you to close the equity gap in
American education.”
-Bill Gates
Educational Publishers
Technology Companies
Media/Gaming
Financial Partners
Exit S
tra
teg
yP
ossib
ilities
Private Equity Firms
Educational Technology Investors
The Investment Opportunity
Match Commitments
make the investment
worth 3X
Investment Round
to Close Aug 15,
2016
Product
Development
Marketing
Working Capital
$500,000 $1,500,000 Aug, 2016
$500,000 represents this round of financing
$1,500,000 represents this round of financing ($500,000) plus the $500,000 match and the $500,000
product purchase commitment from a North MN Education Department
MARKET NOW
EXPLODING
SCHOOLS
SCREAMING
FOR SOLUTION
RE@L READY
TO LAUNCH
Contact Information
Paul Gullickson President & CEO
619.316.9257
Expert Advisory Board
Deb DeVries VP Marketing, Houghton Mifflin Harcourt
Kathy Hurley EVP Education Alliances, Pearson Foundation
Betty RosaEdD, Regent, New York State Education Department
Sharnell Jackson Former Chief eLearning Officer, Chicago Public Schools
Tom KingPhD, Professor of Education at St. Thomas University, Apple
Distinguished Scholar
RE@L Organization
Board of Directors
Dale LaFrenz, Chairman
PaulGullickson
President & CEO
TBH
Executive Vice President Marketing & Sales
Cheryl Marty
Manager Implementation
Tracy Mangen
ExecutiveProducer
Tony Van Hoof
Chief Technology Officer IT Infrastructure
Jo Friedman
HumanResources
Don Rawitsch
Executive Vice PresidentProductionDevelopment
Craig Solomonson
ContentProgrammer
SarahBass
LearningInnovator
Outside Firm
Finance/Accounting
Board of Directors
RE@LInstitute
Susan Schilling
CEO
Bridging the Interests
and Needs of Clients,
Teachers and
Students
• Provides custom‐built
content to meet the client’s
needs
• Full turnkey services
including multiple
modalities of related
electronic‐delivered
product
Who We Are…
What We Do• A non‐profit organization
– Exposure to huge K‐12 education
market
– Generate royalty income
• Creator of education materials
• Provide free educational resources
• Provide tracking and educator
feedback
• Develop strategies that achieve clients’
goals
• Reach 52 million students, parents,
and 3 million educators
Competition
• Publishers
• Special InterestDevelopers
Accredited Investors
Offering
• $500,000 Common Stock
– Approximately 10% ownership
– $.33 per share
• $2.5 Million Common Stock
– Approximately 27% ownership
– $.60 per share
• Use of Proceeds
– Product Development
– Marketing
– Working Capital