Institute biz&financ plan Q410

The Institute of Vision & Message %%%%% Business & Financial Plan

Jedna od tri d.o.o. / One of Three LLC

Ana Soric / CEO

+385 99 2909011

Trg Ivana Kukuljevica 11

10090 Zagreb, Croatia

[email protected]

www.sail.hr/media / www.jednaodtri.hr

mailto:[email protected]�

http://www.sail.hr/media%20/�

http://www.jednaodtri.hr/�

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Table of Contents

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1.0 Executive Summary .................................................................................................................................11.1 Objectives......................................................................................................................................31.2 Mission ..........................................................................................................................................41.3 Keys to Success ............................................................................................................................8

2.0 Company Summary .................................................................................................................................92.1 Company Ownership ...................................................................................................................122.2 Start-up Summary........................................................................................................................132.3 Company Locations and Facilities ...............................................................................................15

3.0 Products and Services ..........................................................................................................................153.1 Product and Service Description .................................................................................................163.2 Competitive Comparison..............................................................................................................233.3 Sales Literature ...........................................................................................................................243.4 Fulfillment ....................................................................................................................................263.5 Technology..................................................................................................................................263.6 Future Products and Services .....................................................................................................27

4.0 Market Segmentation ............................................................................................................................275.0 Target Market Segment Strategy ..........................................................................................................28

5.1 Market Needs ..............................................................................................................................285.2 Market Trends .............................................................................................................................295.3 Market Growth .............................................................................................................................33

6.0 Service Business Analysis.....................................................................................................................386.1 Business Participants ..................................................................................................................396.2 Distributing a Service...................................................................................................................486.3 Competition and Buying Patterns ................................................................................................486.4 Main Competitors.........................................................................................................................48

7.0 Web Plan Summary...............................................................................................................................497.1 Website Marketing Strategy.........................................................................................................497.2 Development Requirements ........................................................................................................50

8.0 Strategy and Implementation Summary .................................................................................................508.1 SWOT Analysis............................................................................................................................50

8.1.1 Strengths ........................................................................................................................508.1.2 Weaknesses ...................................................................................................................518.1.3 Opportunities ..................................................................................................................518.1.4 Threats ...........................................................................................................................51

8.2 Strategy Pyramid .........................................................................................................................528.3 Value Proposition ........................................................................................................................538.4 Competitive Edge ........................................................................................................................538.5 Marketing Strategy ......................................................................................................................54

8.5.1 Positioning Statement .....................................................................................................558.5.2 Pricing Strategy...............................................................................................................558.5.3 Promotion Strategy .........................................................................................................558.5.4 Distribution Strategy........................................................................................................558.5.5 Marketing Programs ........................................................................................................56

8.6 Sales Strategy .............................................................................................................................578.6.1 Sales Forecast ................................................................................................................588.6.2 Sales Programs...............................................................................................................59

8.7 Strategic Alliances .......................................................................................................................608.8 Milestones ...................................................................................................................................61

9.0 Management Summary .........................................................................................................................639.1 Organizational Structure ..............................................................................................................639.2 Management Team......................................................................................................................639.3 Management Team Gaps ............................................................................................................639.4 Personnel Plan ............................................................................................................................63

Table of Contents

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10.0 Financial Plan .....................................................................................................................................6410.1 Start-up Funding .......................................................................................................................6410.2 Important Assumptions ..............................................................................................................6510.3 Key Financial Indicators.............................................................................................................6510.4 Break-even Analysis ..................................................................................................................6610.5 Projected Profit and Loss ..........................................................................................................6710.6 Projected Cash Flow..................................................................................................................7010.7 Projected Balance Sheet ...........................................................................................................7210.8 Business Ratios .........................................................................................................................7310.9 Long-term Plan ..........................................................................................................................7510.10 The Investment Offering ..........................................................................................................7510.11 Valuation .................................................................................................................................7610.12 Use of Funds ...........................................................................................................................7610.13 Payback...................................................................................................................................77

The Institute of Vision and Message

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1.0 Executive Summary

The Institute of Vision & Message is a private research laboratory which will conductresearch in nanotechnology, robotics and technology of the social development. Threemain locations of the Institute: Facility Incheon City, Korea (to be built), Facility at theIsland of Korcula/Blato, which will serve for research in agronomy, economics andgenetics; and Virtual institute (to be created), which will serve for research in socialdevelopment, cognitive modeling, artificial intelligence, and IT neurological research.

Proposed business plan and project scope for the next 7 years is a vision of how themarket, the high-end technology industries and the society will look like in that timeframe and beyond, however, as the market is vibrant and unexpected the Institute willadapt its strategy, projects and all to the market trends. A vision of upcoming society, suchan intangible projection of the future could hardly be quantified or measured, yet thisbusiness plan manages to put the vision in a relation of expenses, business model andreturn of investments.

Historically, and even more, posthistorically, the idea is for the Institute to createnoncompetitive placid society, consequently rendering abatement of masproduction,culturing self-sustainable networked communities who all participate in the same realizationof the common good and in reaching global SOCIAL OPTIMUM. Inauguration of theintellect and creation as a main value in a society. Abatement of the social contract.Realization of the human as a free individual. Discovering and applying complex systems.Discovering polidimension(s) placing neohuman or posthuman phase on the lowest notchof the development ladder.

Manipulating with atoms and nanostructures, creating new communication paradigm,developing human interaction interface or intelligent cybernetic entity, represent the toolsthe Institute will use for achieving its goal: reaching the next stage of human andposthumanevolution.

If we ought to define business infrastructure of the system(s) we define it as a new openbusiness model thriving on the complexity of the system behind. The supremacy of theproposed system doesn’t mean merely breaking the barriers between sectors: SME-s,academia, corporate, NGO, civil society etc. because it would be a negative definition, it hasto be in linking all social producing powers in complex yet flexible infrastructure/system, hitherto an element of even complex system, or a cluster of systems; congregatinginfrastructures, ideas, investments and economy sectors.

The legal infrastructure is viable as long as it provides flexible, sustainable and non-cumbersome system that both could provide economic feasibility for the contemporarymarket and sustainability and responsibility for the future one. Furthermore, the goal of theInstitute is to create progress, new economies, new systems and new value in a society at


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large.

A legal framework of the Program is a company with the shared capital, or a cluster of ltdcompanies. The company Jedna od tri d.o.o. (One of Three LLC) would serve as amanagement company to carry out vision and to set the infrastructure for the Institute. TheInstitute’s company will be developed towards Network Partnership (instead of Public-Private Partnership). The goal for The Institute is to be developed into the largestinternational consortium on the planet.

Strategic goals of the Institute simultaneously represent the benefits for the Institute andfor the society at large. Deconstruction of all retrograde historic infrastructures andparadigms of the society which is due to come through deconstruction of retrogradeeconomic structures: division of labor, mass production, competition, value chain andsuch and by de-emphasizing its impact on social processes.Deconstruction ofcommunication codes and proposal of a new communication paradigm and even newlanguage. Multiplication of human potential and intelligence. Freeing human being of theconstraints s of the physical (body). Discovering polidimension(s). Proposedinfrastructure of the Institute, surprisingly enough, is capable to generate revenue as wellas to produce new value, infrastructures, idioms and, respectively, a new society andHuman 2.0.


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1.1 Objectives

The Institute of Vision & Message is a private research laboratory which willconduct research in nanotechnology, robotics and technology of the socialdevelopment. Three main locations of the Institute: Facility Incheon City,Korea (to be built), Facility at the Island of Korcula/Blato, which will serve forresearch in agronomy, economics and genetics; and Virtual institute (to becreated), which will serve for research in social development, cognitivemodeling, artificial intelligence, and IT neurological research.

Proposed business plan and project scope for the next 7 years is a vision ofhow the market, the high-end technology industries will look like in that timeframe and beyond, however, as the market is vibrant and unexpected theInstitute will adapt its strategy, projects and all to the market trends. Thevalue of the Institute’ s infrastructure is flexibility and complexity allowing anykind of change or adaptation to occur without stressing out the system, or evento constantly produce new systems. Furthermore, it is a vision as how societywould like in the near future; even more the Institute will vigorously shape thefuture, and correspond as a bellwether for the future society,which is its mainobjective.

A vision of upcoming society, such an intangible projection of the future couldhardly be quantified or measured, yet this business plan manages to put thevision in a relation of expenses, business model and return of investment.

The idea for the Institute is to create a superior infrastructure that thrives onprogressive economic idea that perceives the Institute as a research facilitygathering global brains and creating brain network able to generateproducts, revenue and profit but able to generate new paradigms and newsociety.

Idea is to set the basic research and development infrastructure; researchwould then be conducted at the Institute and in collaboration with other globalresearch teams. In its development the Institute would increase the numberof scientist and researchers; however, it would still make an effort topreserve the small teams and focus on collaborating with other institutes,SME-s, corporations, and partnering with other research projects. Theobjective is to transform vision into exploit.


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1.2 Mission

Manipulating with atoms and nanostructures, creating new communicationparadigm, developing human brain interaction interface or intelligentcybernetic entity, represent the tools the Institute will use for achieving itsgoal: reaching the next stage of human and posthuman evolution.

The research at the Technology of the Social Development division of theInstitute could represent the biggest breakthrough since its mission is togenerate new reality. The division will try to put into perspectivedevelopment of the production and production technology, to contextualizedivision of labor, mass production and their impact on social processes,furthermore to provide a vision of the new socio-political system(s), usingsimulations and virtual simulations, cognitive modeling, theories of networks,systems, quantum physics, AI, etc.; furthermore it will explore thepossibility of creating human brain network interface; also using linguistics,mathematics and semiotics it will tray to produce new communicationparadigm. Every development research topic, division and project wouldcorrespond to the idea of carrying out the next step of human evolution.

Historically, and even more, posthistorically, the idea is for the Institute tocreate noncompetitive placid society, consequently rendering abatement ofmasproduction, culturing self-sustainable networked communities who allparticipate in the same realization of the common good and in reaching globalSOCIAL OPTIMUM. Inauguration of the intellect and creation as a main valuein a society. Abatement of the social contract. Realization of the human asa free individual. Discovering and applying complex systems. Discoveringpolidimension(s) placing neohuman or posthuman phase on the lowestnotch of the development ladder.

Following excerpt from the movie Waking Life represent similar vision, orthe perception the Institute can relate to.

Telescopic Evolution - Waking Life movie, excerpt from the movie,represent the vision the Institute is relating to:

"If we're looking at the highlights of human development, you have to look atthe evolution of the organism and then at the development of itsinteraction with the environment. Evolution of the organism will begin withthe evolution of life perceived through the hominid coming to the evolution ofmankind. Neanderthal and Cro-Magnon man.

Now, interestingly, what you're looking at here are three strings: biological,anthropological — development of the cities — and cultural, which is humanexpression.


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Now, what you've seen here is the evolution of populations, not so muchthe evolution of individuals. And in addition, if you look at the time scalesthat are involved here — two billion years for life, six million years for thehominid, 100,000 years for mankind as we know it — you're beginning tosee the telescoping nature of the evolutionary paradigm. And then whenyou get to agricultural, when you get to scientific revolution and industrialrevolution, you're looking at 10,000 years, 400 years, 150 years. You'reseeing a further telescoping of this evolutionary time.

What that means is that as we go through the new evolution, it's gonnatelescope to the point we should be able to see it manifest itself within ourlifetime, within this generation. The new evolution stems from information,and it stems from two types of information: digital and analog. The digitalis artificial intelligence. The analog results from molecular biology, thecloning of the organism. And you knit the two together with neurobiology.Before on the old evolutionary paradigm, one would die and the other wouldgrow and dominate. But under the new paradigm, they would exist as amutually supportive, noncompetitive grouping. Okay, independent from theexternal.

And what is interesting here is that evolution now becomes an individuallycentered process, emanating from the needs and desires of the individual,and not an external process, a passive process where the individual is justat the whim of the collective.

So, you produce a neo-human, okay, with a new individuality and a newconsciousness. But that's only the beginning of the evolutionary cyclebecause as the next cycle proceeds, the input is now this new intelligence. Asintelligence piles on intelligence, as ability piles on ability, the speedchanges. Until what? Until we reach a crescendo in a way could be imaginedas an enormous instantaneous fulfillment of human, human and neo-humanpotential. It could be something totally different. It could be the amplificationof the individual, the multiplication of individual existences. Parallelexistences now with the individual no longer restricted by time and space.

And the manifestations of this neo-human-type evolution, manifestationscould be dramatically counter-intuitive. That's the interesting part.

The old evolution is cold. It's sterile. It's efficient, okay? And itsmanifestations of those social adaptations. We're talking about parasitism,dominance, morality, okay? Uh, war, predation, these would be subject tode-emphasis. These will be subject to de-evolution. The new evolutionaryparadigm will give us the human traits of truth, of loyalty, of justice, offreedom. These will be the manifestations of the new evolution. And that iswhat we would hope to see from this. That would be nice."

"Ostendo primo conditionem hominum extra societatem civilem (quam


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conditionem appellare liceat statum naturae) aliam non esse quam bellumomnium contra omnes; atque in eo bello jus esse omnibus in omnia."

Hobbes,Thomas; Leviathan or The Matter, Forme and Power of a CommonWealth Ecclesiasticall and Civil, 1651

Social contract comes after so called „state of the nature“, in which anindividual’s actions are bound only by his or her personal power; „state of thenature“ is a state of, bellum omnium contra omnes, war of everyone againsteveryone. Social contract is a technology by which an individual gives up itsfreedom in order for the society to reach a social order.

The phenomenology of the Social Contract should also be perceived in thecontext of socio-political environment and the ideological infrastructure theauthors were part of; way before industrial revolution and even before modern(national) state was born. From that perspective concept of Social Contractwas the highest socio-political technology of the social reality.

Question of free will and freedom should be perceived in the context of socialdevelopment, and social contract (Rousseau at large). We could argue, theindividual would never claim its freedom nor power, until the social contract isabated.

There is definitely a tremendous need for the individual to (re)claim thepower. In the history of humankind people were never claiming thatfundamental power, rather they were willingly handing it over to theinstitutions of the social contract.

Power was never in a possession of just a few, it is a network of individualpowers, as Foucault (1994) claims; however it is being constantly exchangedin this pseudo power-exchange relationship/grid, thus it is impossible tocreate new idiom or accomplish any significant breakthrough.

In the context of realization of a posthuman ideal the question of freedomis no longer a question, because it transcends any conveyable idioms,structures or references.

One has to use accepted idioms in order to convey and communicate the ideaand the message. However, our language is still rather primitive thus it iseasier to convey philosophical message in mathematical formulas/language/syntax. We should use hapax or an idiosyncratic system or an idea thatdoes not recognize its definition or identity; the entity emptied of itsreferences in order to create new society, which would in the next phaseabate itself to render non-society, or a network of individuals. Therefore forthe significant development to be accomplished we need to create morecomplex language and syntax.

Marx (1859) claims social production is conditioned by the development of


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material forces of production, independent of individual will. However, inthe new era relations of production diverge, in eccentric fashion(Baudrillard, 1981), from the given superstructures, opening a possibility for anew society to emerge and overwrite historical production relations.Furthermore, future social production could rely on realization of the freewill of the individual since it stems from the complex systems thattranscend Marx’s (1859) idea that new superior relations of production neverreplace older ones before the material conditions for their existence havematured within the framework of the old society. In such a social production(or rather emanation) we could break out from the class struggle as theonly socio-political tool for a social developmet.

The main concern in the first phase of the research in the technology of socialdevelopment will be revisiting key elements of the Marx’s HistoricalMaterialism; capital, landed property, wage-labour; the State, foreigntrade, world market.

The project that would have its priority would be the ones that are mostlikely to create ruptures in the social contract and ones that are usingtechnology for human and post human social and individual advancement, andwhich are at the same time aimed at bypassing the idea of humankindbecoming slaves to technology; namely:

1.Mathematical theorem proving “networked partnership(s)” and/or similarsocio-economic infrastructure (which mean infrastructure based on mutuallysupportive and noncompetitive system) is tremendously more viable thanretrograde economic infrastructure based on competition and like phenomena.

2.Mathematical theorem proving the possibility of creating a society outsidethe social contract, transcending historical materialism via complex systems.

3.Creating interface for brain-to-brain communication.


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1.3 Keys to Success

If we ought to define economical infrastructure of the system(s) we defineit as a new open business model thriving on the complexity of the systembehind. The supremacy of the proposed system doesn’t mean merely breakingthe barriers between sectors: SME-s, academia, corporate, NGO, civilsociety etc. because it would be a negative definition, it has to be inlinking all social producing powers in complex yet flexible infrastructure/system, hitherto an element of even complex system, or a cluster of systems;congregating infrastructures, ideas, investments and social and economysectors.

Economic Vision – The idea of Networked Partnerships presuppose allsocial producing powers linked in a dynamic Modular Producing Units that atany given moment could be instantly restructured. In the second phase thesystem will be intelligent enough to make an adjustment organically by itself.

Business model for the Institute is set to assure not only swift and constantrevenue flow, but to assure self-sustainability of the Institute.

The legal infrastructure is viable as long as it provides flexible, sustainableand non-cumbersome system that both could provide economic feasibilityfor the contemporary market and sustainability and responsibility for thefuture one. Furthermore, the goal of the Institute is to create progress, neweconomies, new systems and new value in a society at large.

Basic infrastructure: Network, Complex, Fluid, Organic

Economic infrastructure: Networked partnership(s), internationalconsortium, weak links in a constant shift able to produce system thatwould assure constant flow of revenue and investments, ideas, growth anddevelopment, making the Institute self-sustainable.

The Institute’s framework presupposes research on social developmentwould influence the given infrastructure of the Institute in its development.


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2.0 Company Summary

The Institute will propose its own infrastructure and the system. Systemis a cloud (in the sense of computer cluster) of investments, projects,brains, researches, products etc., and it is without designated instance,course or direction. It is a like a cloud or a cluster of dandelion’s(blowhead) propellers. The process of movement and connecting israndom. The question is where does the system emanates from; andwhat is its impeller? Could the system be selfemanating, or could therandom energy be the perpetuum mobile? Another idea perceivesinfrastructure and the system as a double vortex, a self-generating,hyperconnected dynamic entity which constantly produces new reality.

Proposed infrastructure of the Institute in 2008



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2.1 Company Ownership

A legal framework of the Program is a company with the shared capital,or a cluster of ltd companies or a stock company. The company Jedna odtri d.o.o. (One of Three ltd) would serve as a management company tocarry out vision and to set the infrastructure for the Institute. TheInstitute' s company will be developed towards Network Partnership(instead of Public-Private Partnership). The goal for The Institute is to bedeveloped into the largest international consortium on the planet.

The idea is for the Institute to share ideas, researches, data etc. withthe companies in the industry who are willing to share the same. In thesecond phase the data and research would be shared with everyoneand all. Rationale behind that idea is that competition is not viable game inthe industry any more. Partnership and mutually supportive entities arewhat could produce greater value. Project documentation that woldfollow this business plan will go into details of the proposed legalframework, economic system and any other system, which is a base forthe development of the Institute.

Category of investments anticipated

1. Private Equity / Venture Capital - global joint venture capital

2. Government (Republic of Korea, EU)

4. World Bank loan

5. Grants

6. IPO


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2.2 Start-up Summary

Detailed start-up expenditures in appendix

1.0 infrastructure

1.1 Facility location Korea/Incheon................46.800.000 Euro

1.2. Facility location Island of Korčula/Blato............ 2.210.000 Euro

1.3. Virtual Infrastructure......................7.350.000 Euro

2.0 Peopleware.............................8.080.700 Euro

3.0 Mediaware...............................1.870.000 Euro

4.0 Legal.......................................750.000 Euro

5.0 Maitenance...............................450.000 Euro

6.0 Other long term assets..............20.000.000 Euro

Total: 87.510.700 Euro

120.530.729 USD


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Table: Start-up

Start-up

Requirements

Start-up Expenses

Legal $1,530,729

Infrastructure $12,000,000

$0

$0

$0

Total Start-up Expenses $13,530,729

Start-up Assets

Cash Required $27,000,000

Start-up Inventory $6,000,000

Other Current Assets $6,000,000

Long-term Assets $68,000,000

Total Assets $107,000,000

Total Requirements $120,530,729


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2.3 Company Locations and Facilities

1. The Institute facility Incheon City, Korea (to be built)

2. The Virtual Institute – brainharvest.biz, etc. (to be developed)

3. Facility location Island of Korčula/Blato (to be constructed)

3.0 Products and Services

Products: Innovations (in nanotechnology, robotics, cybernetics, information and virtualproducts), patents, licencesServices: Consulting, advertising, virtual services.Virtual products/services: Virtual spaces selling and renting, virtual product selling,virtual service etc.


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3.1 Product and Service Description

Projects (Research scopes), Divisions and Products

Division of Nanotechnology

Research scope Construction and programming of robots with overalldimensions at the nanoscale. Research related to autonomous systems,equipment prototyping, execution software and system development.

Innovations

A. Develop solutions, interfaces and applications that would lead in afurther development of nanorobotics: enable improved visualization of theprocesses, predictions of the behavior, enabling improved nano to macroworld interface.

B. Construction and programming of bio naorobots. Nano to macro worldinterface architecture – an architecture enabling instant access to artificialnanorobots and its control and maintenance.

C. Construction and programming of artificial nanorobots. Nano to macroworld interface architecture – an architecture enabling instant access toartificial nanorobots and its control and maintenance.

(Medium-term research, go to market in 3-5 years)

D. Software and an artificial nanorobotic system that would enableautomotive nano unit to execute tasks autonomously.

(Long-term research, go to market in 5-7 years)

Research scope Manipulation with nanorobots and creation of an artificialnanorobotic system in a context of repairing any pathogen in a human body.

Innovations

A: System that would act as a remedy for any virus, pathogen or damaged


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gene.

B: System that would be able to upgrade gene structure in a human body,rendering, enhanced intelligence, extended memory, capability of processinginfinite amount of information, superiority of the human physical structure(e.g. night vision, resistivity to environmental/external influences,augmentation of any other human psychical, mental and physicalcapabilities). The goal is to create Human 2.0


Research scope Research in Nanogenetics presupposes manipulation withgenes on nanolevel in the context of creation of superflora which will beable to address the issues of global food shortage. Research will try toexplore the possibility of upgrading and maintaining any gene structure.

Innovations

A: System that would be able to upgrade gene structure in flora makingthem resistant to environmental/external influences. Furthermore, the productwill be the system that would be able to upgrade gene structure in floramaking them able to give crop in a drastically abridged time frame (e.g.once a week).


NanoEnergetics Research scope: Research in nanoenergetics presupposesresearch in the context of creating renewable and clean energy combiningSolar Photovoltaics and Nanotechnology. Furthermore, the research scopewould go in a direction of merging superconductivity and nanotechnology.

Innovations

A: Product will be a photovoltaic material and the system with itsproperties enhanced by nanotechnology: it will be almost weightless,extremely flexible, superior in collecting and reproducing energy, andapplicable to any surface.


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B: Nanoenergy system capable of implementation of superconductivity,wireless power transmission, consequently eliminating any power source inenergy distribution.


Division of Robotics and AI (Artificial Intelligence)

Research scope Macrorobotics Research scope: research in a context ofcreating cybernetic tools that could replace human in any kind of work thatis harmful, detrimental and/or servile.

Innovations

Cybernetic tools able to replace human in any kind of work that is harmful,detrimental and/or servile.

A. Cybernetic vehicles/tools navigated with radio signal (GPS or similar) ableto send picture and sound to a remote location, performing operations in ahard to reach agricultural terrains.

B. Cybernetic vehicles/tools navigated with radio signal (GPS or similar)able to send picture and sound to a remote location, performing operationsperilous to humans (e.g. under water, in toxic environments, minefields etc).

(Short-term research, go to market in 2 years)

Research scope: Robotics & AI (Artificial Intelligence) research would go in adirection of creating an intelligent cybernetic entity, capable of self-preservation and independent existence.

Innovations

A: Development of artificial human limbs


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B: Development of systems able to enhance human capabilities


A: Intelligent Cybernetic Entity


Division of Technology of Social Development

Research scope: The research will go in a direction of interconnectinglanguage, communication and noise; coding, postcommunication andartificial intelligence in order to explore and produce paradigm shift incommunication, new communication paradigm or any complex socialinteraction system that would replace any known communication codes andproduce idiosyncratic communication environment that would leave farbehind any retrograde social, political or historic infrastructure. Usingmathematical codes, or perceiving mathematics as a most advanced languageand combining it with ancient languages, e.g. Sumerian language, as alanguage that communicates with subliminal codes, we could produce notonly new superior highly complex and multifaceted language (communicationtool) but the whole new society, beyond recognition or even withoutconnection to the previous level of evolutionary development.

The research would try to abolish a paradigm of the media as an extension ofthe human body and the human as a pendent of a machine and inauguratenatural interconnectedness of technology and a human, on physical, mentaland even spiritual level.

This idea presupposes language is the most important inheritance of thecivilization thus any development or/and creation of the more complexlanguage and its codes could bring to the reinvention of the civilization assuch.

Framework: the society is perceived as a. an organism, b. linguistic causality.If we perceive language and its syntax, or even mathematical codes as a freeentities we could be able to discover new paradigm. Not the coding ordecoding but creating new language paradigm could produce change or thenew society without any struggle or class struggle, which would happened not


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so much as a change but as a complete transformation.

Division of Technology of Social Development has an important role toassure social responsibility of the Nanotechnology or Robotics division.Furthermore, since most of the researches are interdisciplinary they will shareideas, designs and expertise. For example nanorobotics research could usea system architect or a VR designer from a Division of Technology of SocialDevelopment.

Project MindBanking.com is a global business networking portal, offeringservices which empower users to fully develop manage and build theirprojects. The idea is to put together innovators, Private Equity / VentureCapital (or any other investors) and collaborators in one place in order tocreate new vibrant business scene, which would be able to generate neweconomies. Project MindBanking.com has its finances and investmentsplanned. However further development of the MindBanking.com projectwould be financed by the Institute. The projects and development are asfollows:

Virtual Institute

The idea is to create application which would gather scientists, brains,thinkers, scholars and such in one place to create an environment of ideasharing, collaborating, and brainstorming. The Virtual Institute will in thebeginning use the application and infrastructure of MindBanking.com, use andbuild infrastructure and community on existing virtual world e.g. EntropiaUniverse and/or become partner of Entropia Universe, further developingsolutions and worlds in a collaboration. The goal is to create a kind ofsocial parallel universe that will produce new society; to explore thepossibility and the ways in which the creation of new communicationparadigm is possible; to create such an elaborate and complex society, aparallel universe with a profound influence to the real world, (e.g. to influencea monetary infrastructure or generate socio-political changes).

The infrastructure: Researchers from the Institute will collaborate in ahighly advanced environment with their colleagues from around the globe,developing researches, projects and products; teams from the Instituteworking on a research in collaboration with general audience/users, throughthe method of "brainharvesting".

Visualization or a graphic representation of the virtual world doesn’t have tobe as expected virtual world, represented through 3D humanoid graphiccharacters and the rest, the main point is to create self-producing informationparallel universe, a platform which is complex and at the same time (hyper)interactive in order to stimulate users to produce their own idioms,connections and infrastructures.


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The strategy presupposes avoiding spending vast amount of time andmoney on cumbersome 3D infrastructure, creating the world that offersnothing new, and imports real life infrastructure.

The Schuman Resonance proves planet Earth emits 7.83 Hz resonancebetween the surface of the Earth and the conductive ionosphere, called the“Earth brain waves”. Douglas Rushkoff proposes that the consciousness of theEarth might be awakened when all humans become collectively networked.The Earth can become neural network.

The research will show the level of possibility in a given epoch and givenevolutional context whether this could be done by merely taping intounconsciousness and converting it to consciousness without creating aninterface or a physical network.

Information is worth nothing if it isn’t shared. Its intrinsic value is itsfundamental “urge” to identify itself through the collective. The problem isthat the social usage and manipulation of information conforms particularinformation to designated social groups, which inhibits social and postsocialdevelopment.

Requirements: to create innovative technical, engine and virtualenvironment solution that would give optimized state-of-the-artapplication, optimized graphics control (graphic that uses optimized spaceand could be enough detailed), optimized server distribution, it couldreceive critical mass of users without an overload, creating advancednetwork redistribution of content.

A: Highly optimized virtual application and world.

Revenue model: subscriptions, pay per piece, selling virtual spaces, sellingvirtual construction sites, advertising

B: Number of solutions, a consequent product which is ready-to-useapplications/solutions or modules for building virtual worlds making thevirtual world an infrastructure that could be assembled from a readymademodules; making any transfer of data, its usage and manipulation possible.The idea is to offer solutions for building infrastructure in order for theresearch and development pace to speed up. The key word is Optimum andoptimization. The goal is to find optimal network distribution of content,developing further the Cloud system as well; to create optimal graphicscontrol system that would enable fast graphics processing and usabilitywith no demands too high.

Revenue model: product sales, licensing

C: Application for 3D representation and of all human knowledge corpus;


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also a 3D search engine.

Revenue model: product sales, licensing

D: Virtual Simulation application (part of the Virtual Institute), applicationable to transform any kind of intellectual product into 3D representation/simulation, whether it is a theory, equation, idea, solution, invention, conceptetc. at the second phase of development application will be able to offer asolution to a problem.

E: To create application, which would be able to solve the problem ofcommunication hum, or to harvest it. Able to process many people, a hundredfor example, brainstorming, and to harvest the brainpower. Since harvestinghuman brains and connecting it physical to a supercomputer or evenclusters or clouds of supercomputers is not morally accepted, it is moreacceptable to find or create communication tool witch could basically do thesame.

F: To create an interface that would allow human brains to connect directlyvia peer-to-peer.

Revenue model: product sales, licensing,

Research in Agro Genetic Engineering, Economics and Biotechnology(Island of Korcula/Blato location)

Research in Economics

Positioning the product on the global market; as well as research increating new markets, in the first go-to-market wave with the original productof high quality, and in the second go-to-market wave with the product ofsuperior attributes.

Product: new market

Business model:

Go-to-market period: 3-5 years

Research in Agro Genetic Engineering

Research would be conducted in the context of the possibility to isolateoptimal properties in the plant/scion, and with further manipulation tocreate complex genetic system in which natural properties stay intact, while


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the new system builds the plant/scion in its superior new form.

Is it possible to create superior plant/scion by isolating only top qualityproperties form 80 indigenous wine sorts? Such a plant/scion wouldrespectively be resistant to all external influences, and furthermore wouldproduce crop in shorter time intervals.

Product: superior plant/scion

Business model: patents, applications

go-to-market period: 3-5 years

A success will assure the creation of the new product, furthermore thecreation of new markets, as well as the new paradigms from the socio-economic aspect. The product in such a project is a research per se, and thenew markets that would create such idiosyncratic product and business modelwill promise not only return of investment but the creation of new systemthrough creating an original value chain.

The research conducted at the genetic Institute will have an objective toaccomplish the paradigm shift in real infrastructure of the value chain thesame why as should be able to accomplish new socio-economic idioms andinfrastructures.

3.2 Competitive Comparison

To accomplish the strategic goals of the Institute it will be needed none than sheer brilliance.Document that will follow this business plan will further analyze and develop the idea, visionand infrastructure of the Institute, as well as the projects and technology of their execution.Since the industry and the scene of nanotechnology and high-end technologies are relativelynew and unstructured there is definitely plenty of room for partnerships and networking totake place. Competing and competition in a market that isn’t a market yet, or where the groundrules are not established yet, along with the fact that the benchmark is extremely high, we couldperceive a strong need for alliances, collaboration and networking of any sort. Furthermore,the ideology of the Institute perceives competition as a retrograde economic idiom whichcould only abate any development and expansion, not foster it.


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3.3 Sales Literature

Look and feel of the company/the Institute would be corresponding tocertain idioms upon which the brand will be built:

Cutting-edge; Dynamics of Networks; Artificial Intelligence; Brain Network;(Double) Vortex; Human 2.0; Neohuman Society; Organic Infrastructure;Hyperstructure; Posthumanism; Modular Units etc.

Some graphic representation ideas:


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3.4 Fulfillment

3.5 Technology

The idea of network partnership would definitely impact on patents realm. Projection isthat the extensive partnering would generate proliferation of patents, or their massiveincrease. The companies included in the research network would have reciprocal sharein the patent as to the amount of invested value in the research project. The argumentis also that the engagement of many different teams in a network production is a superiorinfrastructure compared to massive teams in a corporate structure, since every team inthe network partnership is bringing its own dynamics to the network, making it moreflexible and sustainable. In the literature, which will follow this business plan, the proposedidea will be tested via theory of networks and dynamics of networks. To be exact it willbe calculated. We could use the theory of random graph (Rapoport and Solomonoff,1951); as the ratio of number of edges to vertices in the graph is increased, thenetwork reaches a point at which it undergoes an abrupt change from a collection ofdisconnected vertices to a connected state in which, in modern parlance, the graphcontains a giant component (Barabasi, Newman, Watts; 2006, pg. 11)

(Source: Barabasi, Newman & Watts; Structures and Dynamics of Networks;Princeton University Press, 2006, pg 11)


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3.6 Future Products and Services

Product: Gene infrastructure correction system

Service:

Product: Matter manufacture device and system

Service:

Product: Brain peer-to peer interface

Service: Solutions, infrastructure and maintenance for the neurocybernetic world(s)

Product: Intelligent Cybernetic Entity

Service: Solutions and environment for procreation and realization of Intelligent CyberneticEntities society

4.0 Market Segmentation

1. Government2. Industry3. Consumer

Table: Market Analysis

Market Analysis

2011 2012 2013 2014 2015

Potential Customers Growth CAGR

Government 30% 3 4 5 7 9 31.61%

Industry 70% 20 34 58 99 168 70.24%

Consumer 230% 40 132 436 1,439 4,749 230.09%

Total 197.36% 63 170 499 1,545 4,926 197.36%


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5.0 Target Market Segment Strategy

Target market segmentation could seem a bit broad; however research and developmentcompanies, the institutes or similar institutions could only have to distribute their productsand services to governments (and supranational bodies) and the industry. Consumer marketsegment is rather important as well since it is expected to provide the fastest ROI and wouldassure self-sustainability of the Institute, respectively. Furthermore, it also anticipatesgrowing high-end technology consumer market.

5.1 Market Needs

The institute’ s goal is to constantly create new values, idioms and perspectives, and that couldonly mean constant creation of new needs. If we take into account cutting-edge research,products or infrastructure, the Institute will not only constantly generate new needs but newexhilarating markets as well.

1

Market analysis summary

Nanotechnology & MEMS Industy Overview 2009

Companies in Plunkett's Nanotechnology & MEMS 300 313

Companies in the Lux Nanotechnology Index: May 2008 21

Estimated Companies Active in Nanotechnology Research, Including Start-Ups, Worldwide: 2009 (Plunkett Research estimate)

2,200

U.S. Federal Government Funding for Nanotechnology Research Source: U.S. National Nanotechnology Initiative (NNI)

2001 464 Mil. US$ 2006 1,351 Mil. US$

2002 697 Mil. US$ 2007 1,425 Mil. US$

2003 863 Mil. US$ 2008 1,554.4 Mil. US$ Actual

2004 989 Mil. US$ 2009 1,657.6 Mil. US$ Estimate

2005 1,200 Mil. US$ 2010 1,639.0 Mil. US$ Proposed

Breakdown of U.S. Nanotechnology Research by Agency 2007-2010

Source: NNI (In Millions of U.S. $)

Agency 2007

Actual 2008

Actual 2009

Estimate* 2010

Proposed

Department of Defense (DOD) 450 460 464 379

National Science Foundation (NSF)

389 409 397 423

Department of Energy (DOE) 236 245 337 351

National Institutes of Health (NIH)

215 305 311 326

Department of Commerce (DOC) National Institute of Standards and Technology (NIST)

88 86 87 91

NASA 20 17 17 17

Environmental Protection Agency (EPA)

12 16 18

* Does not include allocations of the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) appropriations. See the following tables for more

information.

Quantity Unit Source

Global Market for Products Incorporating Nanotechnology: 2009

400 Bil. US$ PRE

2

Global Market for Products Incorporating Nanotechnology: 2013

1.6 Tril. US$ RNCOS

Global Nanotechnology Research Market: 2009

14.5 Bil. US$ RNCOS

Global Nanotechnology Research Market: 2013

30.0 Bil. US$ RNCOS

Global Funding for Nanotech by Governments: 2009

9.75 Bil. US$ Cientifica

Global MEMS Device Market: 2009 8.6 Bil. US$ PRE

Global MEMS Systems Market: 2008 83 Bil. US$ PRE

Global Workforce in Nanotechnology Industries: 2018

2.0 Mil. PRE

Japanese Gov't Nanotechnology Funding: 2009

1.5 Bil. US$ PRE

EU Gov't Nanotechnology Funding: 2009 1.2 Bil. US$ PRE

NNI = U.S. National Nanotechnology Initiative; NSF = U.S. National Science Foundation;Cientifica = Cientifica, Ltd.; PRE = Plunkett Research estimate; RNCOS = RNCOS Research.

Plunkett's Nanotechnology & MEMS Industry Almanac 2009

Copyright © 2009, Plunkett Research, Ltd., All Rights Reserved

Source: http://www.plunkettresearch.com, 2009

Nanorobotics and NEMS; Analyst: Margareth Gagliardi

REPORT HIGHLIGHTS

The global market for nanorobots and NEMS, and related materials and

equipment, increased from $29.5 million in 2004 to $34.2 million in 2005, with

sales reaching an estimated $40.3 million by the end of 2006. By 2011, the

market will reach $830.4 million, a compound annual growth rate (CAGR) of

83.1%.

Equipment and tools hold the majority of the market share through 2006,

closing out the 2006 year with just over 57% of the total global market. This

market share will drop radically through the forecast period as nanorobotic

devices come to the forefront. By 2011 nano equipment and devices will hold

a mere 9.2% of the global market.

Nanorobotic devices have by far the greatest potential for growth in the

forecast period. By the end of 2006, devices were worth just over $1 million

http://www.plunkettresearch.com/

3

dollars in the global market. By 2011 their value will skyrocket to $560.9

million, a CAGR over 250%, creating a 67.5% share of the total market.

Report ID:NAN042A, Published: March 2007, Analyst: Margareth Gagliardi

Nanotechnology Market Forecast to 2013

Nanotechnology is going to pave the way for a revolution in materials, information

and communication technology, medicine, genetics, etc as it starts moving from the

laboratories to new markets. It helps to improve products and production processes

with better characteristics or new functionalities. In coming years, products based on

nanotechnology will have a huge impact on nearly all-industrial sectors and will enter

the consumer market in large quantities.

Considering the future prospects of nanotechnology, countries across the world are

investing heavily in this sector to reap maximum benefits from it. According to our

research reort “Nanotechnology Market Forecast to 2013”, the global nanotechnology

market is projected to grow at a CAGR of over 18% during 2010-2013. The report

expects that the global market for nanotechnology incorporated in manufactured

goods will worth US$ 1.6 Trillion, representing a CAGR of around 50% in the forecast

period (2010-2013). This prospective growth will largely be driven by massive

investment in nanotechnology R&D by both governments and corporates worldwide.

The report also reveals that the Asia-Pacific region will experience the

fastest growth in the market for nanotechnology enabled goods at a CAGR

of nearly 52% between 2007 and 2013. The recent move by the emerging

4

markets such as South Korea and China to concentrate on nanotechnology

Research and Development (R&D) will continue to play the most

prominent role in the growth of nanotechnology.

The report also contains comprehensive information about the development of

nanotechnology market in the US, with focus on budget allocation for R&D, agencies

working in this field, and federal funding. Our new research report thoroughly

evaluates the past, current and future scenario of the global nanotechnology market

coupled with an overview of emerging trends. The report has segmented the

nanotechnology market by application and by R&D investment. The application

section gives an overview of nanotechnology integration in the field of electronic,

energy, cosmetic, biomedical and defense. The R&D investment section talks about

investment made globally by governments, corporates and venture capital. The

report has studied the nanotechnology market of other key countries separately to

show their prominence in the sector. Besides, the report covers various growth

potential areas at the global level to help clients understand the nanotechnology

importance in sophisticated areas.

Nanotechnology Market Forecast to 2013; ReportLinker; March 2010

South Korea top three countries for robotics technology

SEOUL, April 17 (UPI) — South Korean officials said Friday they have created a plan

to boost the nation into the top three countries for robotics technology and

applications by 2013.

The officials said the plan was finalized Friday at a meeting of the National Science

and Technology Council that was chaired by President Lee Myung-bak, The Korea

Times reported Friday.

The Robot Special Act, which calls for a $750,000 investment in research and

development, aims to propel South Korea into the top three nations for robotics by

2013 and capture 20 percent of the global market by 2018.

“By 2013, the domestic robot market will reach four trillion won ($3 million) in value,

lift Korea’s global market share to 13.3 percent and boost robot exports to $1

billion,” Knowledge and Economy Minister Lee Youn-ho said.

http://robotechno.us/south-korea-top-three-countries-for-robotics-technology.html,

2010

http://robotechno.us/south-korea-top-three-countries-for-robotics-technology.html


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5.2 Market Trends

Dominance in government funding

The trend in the industry is that the global investment into nanotechnology ismainly governmental. The VC funding only accounted for 7% of the totalglobal investment into nanotechnology in 2008.Since projections and analysisshow serious expansion of the nanotechnology market and its growth, inthe next couple of years, it could be the cue for PE/VC to reconsidernanotechnology industry and scene as an important investment opportunity.Investors should bring with them industry knowledge and their network, alongwith financial investments, to help companies develop and market products inan efficient fashion.(Source:http://www.earthtimes.org/articles/show/research-and-markets-global-nanotechnology,1088640.shtml, 2010)

Increasing growth of the industry and international partnerships withstart-ups

The idea of partnerships is already in deployment, the data is from 2002:

1. Nanocor and Mitsubishi Gas Chemical joint partnership in developingnanoclays for nanocomposits

2. Nanosys and Matsushita Electric joint developing in solar cellstechnology

3. Applied Nanotech and Mitsubishi Heavy Industriesjoint partnership indeveloping carbon nanotubes for Flat Panel Displays

(Source: Asia Pacific Nanotech Weekly, Vol. 1, article #25, 2003)

Treating patent applications for nanotechnology

Experts have observed that there is a growing trend to file for patents earlier,and file more of them. That could potentially hamper innovation by actingas a disincentive for other institutions to embark on similar research.Although this is a general trend in patenting, nanotechnology-relatedinventions could be especially affected since it is a young and growing field.

To avoid an inflation of low-quality patent applications that could clog upthe EPO and create a backlog, the EPO has introduced a quality policy tobring certainty to the market, for both the applicant and the public. The EPO’sapproach is one of "quality rather than quantity."

The Y01N tags are one element in this approach, since they enable EPOexaminers to monitor emerging nanotechnology inventions and to performbetter patentability searches. The EPO has also put measures in place to


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ensure that nanotechnology applications are treated by examiners with theright experience in the specific field.

Outlook

When it comes to nanotechnology patenting, the United States continues tolead the way, followed by Japan and Europe. Some regional differences innano application trends have already been noted: while nanobiotechnologydominates the European sphere, in Japan the bulk of patents published are innanoelectronics.

The EPO works with the Japan Patent Office and the United States Patent andTrademark Office to look at shared problems and how each countryaddresses them. Collaborating on the nanotechnology issue could help allthree offices tackle common problems that have arisen with the emergence ofthis exciting new technology.

(Source: http://www.epo.org/topics/issues/nanotechnology.html, 2010)

NANOTECHNOLOGY PATENT TRENDS

Patents issuing every week demonstrate the growing importance ofnanotechnology. In many cases, technology which was first conceived in the1970s and early 1980s, often as academic curiosities, have now become amajor area of commercial development under the nanotechnology rubric.Several examples are noted below reflecting different areas ofnanotechnology. The atomic force microscope (AFM) is a powerful,fundamental nanotechnology tool and was first patented in 1988 by Bennigand IBM. By 1994, over 100 patents issued per year, and by 2003, over 500patents were issuing per year referring to this tool (Figure 1). Quantumdots and dendrimers, similarly, are examples of nanomaterials first patentedin the mid-1980s. By 1994, over ten patents issued per year, and by 2003,over 100 patents were issuing per year referring to each of these materials(Figures 2 and 3).

Figure 1

Number of US Patents Referring To "AFM" or "Atomic Force Microscope"


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Figure 2

Number of Patents Referring To "Quantum Dot"


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Figure 3

Number of Patents Referring To "Dendrimer"

(Source: V. Koppikar, S.B. Maebius, J.S. Rutt; Current Tends in Nanotech Patents: A ViewFrom Inside the Patent Office; Nanotechnology Law & Business; Volume 1, Issue 1, Article4, 2003)

Rich in intellectual property

Experts across Europe are in no doubt: Today's economy is becomingincreasingly knowledge-based and intellectual property in the form ofpatents plays a vital role in this growth. Between 1992 and 2002, the numberof patent applications filed in Europe, Japan and the United States grew bymore than 40 percent. The number of patents filed with the EuropeanPatent Office reflects that trend, going from approximately 100,000applications in 1997 to nearly 193,000 in 2005. This is due, in part, toindividual inventors, SMEs, large companies and research institutions realisingthe importance and economic impact of patenting their innovations. The keyobservation here: Patents can encourage innovation and economic growthunder certain conditions and hamper it under others. The impact of patentson innovation and economic performance is so complex that a fine-tunedpatent system is crucial to ensure maximum benefit for a country's firms andits overall economy. (Source: http://www.epo.org/topics/innovation-and-economy/economic-impact.html, 2010)


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5.3 Market Growth

Projection is that the market for nanotechnology products is yet toflourish in a couple of years. Projection is for Global Market for ProductsIncorporating Nanotechnology will grow in 2013 to 1.6 trillion US dollars,representing a CAGR of more than 49% in the forecast period 2009-2013.According to our report findings, at the regional level, the Asia-Pacificregion will experience the fastest growth in market for nanotechnologyenabled goods, with CAGR pegged at around 52% in the forecast period,followed by Europe.

(Source: RNCOS, 2010)

The nanotechnology market is dominated by the US, followed by Europeand Asia-Pacific region. However, initiatives undertaken by EU as part ofits Seventh Framework Programme (FP7) will help the region emerge as adominant player on the global nanotechnology map by 2013. The EU FP7will be contributing approximately 600 Million per year until 2013 towardsnanotechnology. Also, the presence of Japan, South Korea, China and Indiawill foster highest growth in the Asia-Pacific region over the forecast period.

(Source: http://nanobizexchange.com/?p=18)

"Nanotechnology is going to pave the way for a revolution in materials,information and communication technology, medicine, genetics and soon as it starts leaving the laboratories and conquering new markets. Ithelps to improve products and production processes with bettercharacteristics or new functionalities. In coming years, products based onnanotechnology are expected to impact nearly all-industrial sectors, enteringinto the consumer markets in large quantities. Considering the futureprospects of nanotechnology, countries across the world are investingheavily into this sector.“

Key Findings

§ The rapidly commercializing nanotechnology market presents potentialmarket in various industrial sectors including energy, textiles and lifesciences.

§ The market for nanotechnology in manufacturing goods is forecasted togrow at a CAGR of 33% during the period from 2007 to 2015.

§ The market for nanotechnology into consumer products is projected to


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grow at an AAGR of 9.4% from 2005 to 2010.

§ The global spending on nanotechnology grew by 29% in 2006 withgovernment share standing at 52% followed by corporate and venturecapitalist spending.

§ Nanotechnology investments by the government were initially led byEurope, North America and Japan. However, countries such as Russia,China, Brazil, Turkey and India have joined the trend and are makingsignificant investments into the sector.

§ Asia-Pacific is anticipated to be the most important region for the salesof nanotechnology products in near future, followed by the US and Europe atsimilar level.

“Nanotechnology Market Forecast till 2011”, RNCOS, 2009

The nanophotonic component market is growing at a robust rate forthe last few years and is expected to maintain a very high CAGR for thenext few years. The market is expected to reach US$3.6 billion in 2014at a CAGR of 100.7% from 2009 to 2014.

Untapped market potential and benefits are the primary factors for theearly adoption. Though most of the nanophotonic products are still underresearch, the available products such as nanophotonic LEDs, nanophotonicPV cells, nanophotonic OLEDs have been very successful in the market.Nanophotonic LEDs has the largest market share of US$106 million in2009. However, considering the pace of progress in various othersegments like near-field-optics, optical amplifiers, optical switches andholographic memory, it can be safely ascertained that holographicmemory and optical switches are expected to have the highest growthrate in the next five years. Nanophotonic LEDs will still continue to belargest segment albeit with a slow growth rate.

(Source: http://www.marketsandmarkets.com, 2010)

Nanotechnology in European patents

Nanotechnology is considered by many to be one of the key technologiesof this century, with an expected market volume of EUR 1 trillion in2015. In 2004, about EUR 8 billion was invested in nanotechnologyresearch and development worldwide. The European Commission, realisingthe future importance of this new field, funds nanotechnology projectswith roughly EUR 500 million a year, an amount that is likely to doubleover the next decade or two, according to an EC source.


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(Source: http://www.epo.org/topics/issues/nanotechnology.html, 2010)

Korea Puts $750M in Robotics, Aims to Lead Market by 2018

04.20.2009 — The government of South Korea has promised to invest 1trillion Won (about $750 million U.S. dollars) in the country’s roboticsindustry in an attempt to accelerate its growth.

The goal is to help the global robotics market grow to more than $30billion by 2013 and to help Korean companies take as much as 10 percentof that market, according to Huh Kyung, Director General for EmergingIndustry in the government’s Ministry of Knowledge Economy, which isresponsible for regulating and overseeing high-tech industries in SouthKorea.

The First Basic Plan for Intelligent Robots calls for Korea to be one of thetop three producers of robotic products by 2013 and the leadingproducer by 2018. That would total more than $1 billion U.S. for exportand $3 billion for internal consumption.

The Republic of Korea has treated its IT infrastructure and industries askey drivers of economic growth since the mid-1990s, and committed itselfto promoting the service robotics industry in 2004, according to Dan Kara,president and editor of Robotics Business Review.

At that time the Korean economic ministry put in place a strategy calledIT839, whose goal was to build a robust internal IT networkinginfrastructure, and promote specific high-tech industries, including servicerobotics. It invested $264 million over five years in 16 projects designedto boost the domestic intelligent robotics industry, Kara said.

The effort, and Korea’s robotics manufacturers, have been remarkablysuccessful, according to Kara.

“I’m not surprised the [Korean] government sees robotics as a driver forthe economy,” agreed Barbara Coffey, analyst at financial services firmKaufman Brothers. “The South Korean market has been a huge winner incell phones and other electronics. They’ve been a leader in digitalbroadcasts and in uses for small devices, so they’re probably in a goodposition for robotics as well, as far as manufacturing and research[capabilities].”

Speaking at last week’s RoboBusiness conference in Boston, Rus predictedthat the market for service robots alone would grow from about $600million in 2002 to more than $52 billion by 2025, largely driven by the


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need to care for increasingly elderly populations in both the U.S. and inAsian countries, including Korea and Japan.

Kevin Fogarty; http://www.roboticstrends.com/service_robotics/article/korea_to_put_750m_in_robotics_industry; 2010

Second Life Economy Hits New All-Time High in Q1 2010 Highlights for the Quarter

The Second Life economy kicked off 2010 with strength in many key indicatorsin Q1.

User-to-User Transactions totaled US$160 million, a 30% increaseyear-to-year and an all-time highTotal Sales on Xstreet reached US$2.3 million, an 82% increase year-to-year and a 24% increase over the previous quarterTotal L$ exchanged on the LindeX totaled US$31 million, a 9%increase year-to-yearResidents active in the Economy reached 517,349 in March, a 2010highMonthly Unique Users with Repeat Logins peaked in March at 826,214,a 13% increase year-to-year and an all-time high

Second Life continues to be the largest user-generated virtual economy in theworld, and as we reported in our 2009 year-end economy blog post, reachedUS$567 million in user-to-user transactions in 2009, with gross residentearnings of US$55 million. The scale and continued growth of Second Lifeare a highlight in a quarter which saw the closure of a few longstandingcompanies in the virtual world space. We wish the customers andemployees of those companies well.

2009 End of Year Second Life Economy Wrap up (including Q4 Economy inDetail)

Second Life economy totals $567 million US dollars in 2009 - 65% growthover 2008Gross Resident Earnings are $55 million US Dollars in 2009 - 11%growth over 2008

In 2009, the rest of the world caught up with what Second Life


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Residents have known for a long time - that virtual goods can be a verygood business. Headlines about a billion-dollar plus trade in virtualitems appeared in the mainstream press, but in many cases the articlesfocused on the platforms that create and provide virtual goods to theirusers, not on the users themselves.

And this is what sets Second Life apart: our users create, merchandise,and sell virtual goods as part of the largest user-generated 3D virtualgoods economy in the world. By any measure - number of items,transactions, dollar value, revenues earned - Second Life is the leader.In 2009, Second Life Residents earned more than twice that amount -US$55 million - while the total size of the Second Life economy grew65% to US$567 million.

And all of that is due to the creativity and innovation of the Second LifeResidents.

By way of comparison, real-world global output is forecast to havedeclined 1.1% in 2009 (see the IMF World Economic Outlook report,October 2009). The Bureau of Economic Analysis will post figures for theUS economy for Q4 and 2009 on January 29th, but their most recentforecast was for the US economy to have shrunk by 2.7% in 2009.Despite a challenging macro environment, the Second Life economy didquite well to grow in 2009.

Before we dive into the numbers for 2009, we want to acknowledge thatlast year was an economically challenging one for many people in thereal world and many Second Life Residents. Some Second Life Residentbusinesses faced hard times while others flourished. Our focus is towork hard in 2010 (and beyond) to increase the number of Second LifeResidents, so that the Second Life economy will continue to grow, givingall Residents the opportunity to benefit.

Source: http://blogs.secondlife.com/community/features/blog, 2010


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6.0 Service Business Analysis

Globally, the main division in nanotechnology industry is on Research & Communityand Commercial (B2B). The Institute would natively be positioned in a Government,Industry & Private Laboratories, although it will interact and collaborate with all otherdivisions and sectors in the industry.

Research & Community

:University Departments, Labs & Research Groups (940); Government, Industry & PrivateLaboratories (311); Initiatives & Networks (460); Associations & Societies (21).Commercial (B2B):

Raw Materials (269); Biomedicine & Life Sciences (328); Products, Applications,Instruments & Technologies (1215); Services, Intermediaries & Other (249).(Source: http://www.nanowerk.com/nanotechnology/, 2010)The similar would be in robotics department of the Institute.

The general idea is for the Institute to serve as an agency for perpetuation of globalhuman and posthuman progress and development, furthermore as an agent forcongregation and interaction between all social producing powers, an architect of thenew systems etc.


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6.1 Business Participants

Some global participants in a nanotechnology industry (100 out of 311 of them)representing Government, Industry & Private Laboratories sector.Acreo (Sweden)Acreo, a contract R&D lab, deals with several aspects of optical components and systems forvarious applications. The company develops and manufactures new components or materials withnew properties based on semiconductor structures in the nanometer scale. Examples are new typesof light sources, detectors or modulators.Advanced Materials Group, Institute for Scientific and Technological Research of San Luis Potosi(Mexico)Theoretical and experimental research of new materials, mainly focused to nanostructures.Advanced Materials Research Center (AMRC) (USA)The Advanced Materials Research Center (AMRC) is a industry-driven virtual R&D center focusedon the commercialization of advanced technologies. The center is a collaboration between the Stateof Texas, SEMATECH, and the state's research universities.Air Force Office of Scientific Research (AFOSR) (USA)Invests in basic research efforts for the Air Force in relevant scientific areas.Air Force Research Laboratory (AFRL) Materials and Manufacturing Directorate (USA)The AFRL ML develops materials, processes, and advanced manufacturing technologies for aircraft,spacecraft, missiles, rockets, and ground-based systems and their structural, electronic and opticalcomponents.AIST Nanoarchitectonics Research Center (Japan)The Nanoarchitectonics Research Center, in close collaboration with the Graduate School of FrontierSciences, the University of Tokyo, aims to establish 'bottom-up' nanoscale technologies based onmolecular self-assembly, hierarchical atomic nanostructure construction and atomic level measurementtechniques.AIST NanoProcessing Partnership Platform (Japan)Utilizing the AIST NanoProcessing Facility and the AIST Technical Service Center, the National Instituteof Advanced Industrial Science and Technology (AIST) conducts the NanoProcessing PartnershipPlatform as a part of Nanotechnology Network Japan of the Ministry of Education, Culture, Sports,Science and Technology (MEXT).AIST Research Center for Advanced Carbon Materials (Japan)The Nano-Carbon Materials team at the Center develops original synthetic approaches to fabricaterational nanoscale materials as basic building blocks and the hierarchical assembly of thesenanomaterials to fundamental elements for nanodevices that would serve as functional components forapplications in nanotechnology.Ames Laboratory - Biomolecular Materials Chemistry (USA)Research includes nanocomposites and nanostructures.Argonne National Laboratory - Center for Nanoscale Materials (CNM) (USA)The CNM's mission includes supporting basic research and the development of advancedinstrumentation that will help generate new scientific insights and create new materials with novelproperties.Army Research Laboratory (USA)The research facility of the US Army.Asian Institute of Technology - Nanotechnology (Thailand)Research topics are self-organization, nanoparticles, quantum dots and nanowiresAtomic Energy Center Bariloche - Nanoscience Research (Argentina)The center's mission is to organize an internationally recognized focal point in Bariloche for theresearch and the technological development of nanoscale materials.Bay Zoltan Institute For Materials Science And Technology (Hungary)


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The mission of the Institute is to play a dominant role in the materials science and technologyinnovation chain, first of all in the field of laser technology, metal technology and simulation, polymertechnology and nanotechnology.Beijing National Laboratory for Molecular Sciences (BNLMS) (PR China)The research directions of BNLMS include: (1) structure and transformation of matter; (2) materialschemistry; (3) nanoscience and nanotechnology; (4) polymer science and engineering; (5) chemistry inlife science; (6) environmental and energy chemistry.Bell Labs (USA)The research arm of Lucent-Alcatel conducts nanotechnology rseaerch such as for instancenanostructured surfaces.Berkeley Lab - The Molecular Foundry (USA)The Molecular Foundry at Berkeley Lab is a user facility for the design, synthesis andcharacterization of nanoscale materials.Berkeley Sensor & Actuator Center (BSAC) (USA)BSAC is the National Science Foundation Industry/University Cooperative Research Center forMicrosensors and Microactuators, conducting industry-relevant, interdisciplinary research on micro-and nano-scale sensors, moving mechanical elements, microfluidics, materials, and processes thattake advantage of progress made in integrated-circuit, bio, and polymer technologies.BioMaDe (Netherlands)Biomade Technology Foundation is a research institute whose mission is to develop and exploitmolecular nanotechnologies.BioSciences Research Institute (BRI) (India)BioSciences Research Institute (BRI) has been setup as a premier Institute for Research &Development and Advanced Training in the field of BioSciences. Research includes nanotechnology.Boeing Phantom Works (USA)Boeing Phantom Works is the advanced research and development unit at Boeing and the catalyst ofinnovation for the Boeing enterprise. For instance, they are working to create an entirely new class ofnanostructured aluminum alloys. These lab-produced materials deliver titanium's strength - over a widetemperature range - in a much lighter material.Brookhaven National Laboratory - Center for Functional Nanomaterials (USA)The Brookhaven National Laboratory Center for Functional Nanomaterials will provide researchers withstate-of-the-art capabilities to fabricate and study nanoscale materials.Burnham Institute for Medical Research (USA)Through special grants awarded by the NIH, the Burnham has been designated as one of fourcenters for devising new therapies for cardiovascular disease using bionanotechnology.Bussan Nanotech Research Institute (XNRI) (Japan)XNRI is focused on developing unique technologies that have been enabled by the fusion of a diverserange of disciplines centering around nanotechnology, technologies that will allow them to direct theirefforts into research areas related to the environment, energy and medicine.Caesar Research Center (Germany)Major research centre with multidisciplinary approach including materials, nanobio, electronics,microrobotics.California Institute of Nanotechnology (USA)The California Institute of Nanotechnology's mission is to conduct research and development andprovide professional education and training in the frontier of nanotechnology to meet the needs ofthe emerging industry for the benefit of the society. The institute conducts advanced and appliedresearch in nanotechnology to help solve major problems facing mankind such as diseases,shortage of energy and global environmental issues.Canadian Institute for Advanced Research - Nanoelectronics (Canada)CIFAR selects research areas that tackle fundamental questions challenging our understanding ofthe natural world and of human society. Its Nanoelectronics program focuses both on fundamentalscience of how materials behave at the nanometer scale, and engineering issues such as creating newnanomaterials used for both research and applications.CANMET Materials Technology Laboratory (Canada)


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CANMET-MTL has nanotechnology projects in the areas of hydrogen storage and noxious gassensors.Carolina Center of Cancer Nanotechnology Excellence (CCNE) (USA)CCNE goal is to design and fabricate novel and innovative, multifunctional nanodevices and then testtheir in vivo performance using sophisticated mouse models of human cancer.CEA INAC Laboratory Silicon Nanoelectronics Photonics and Structures (France)The SiNaPS laboratory is committed to basic research on the optical and physical properties of low-dimensional semiconductor structures and their applications to nano optics and nano electronics.CEA Leti (France)(Website in French) One of the largest applied research laboratories in Micro and Nanotechnologies inEurope, it focuses on microelectronics and microsystems on silicon, systems for biology and health,and optoelectronic and components.Cell Propulsion Lab - UCSF/UCB Center for Engineering Cellular Control Systems (USA)The lab's goal is to understand the fundamental design principles of cellular control systems and toapply these principles to engineer cells or cell-like devices with novel, 'smart' therapeutic functions.CEMES Center for Materials Elaboration and Structural Studies (France)The CEMES goals are for one part to establish links between the atomic architecture and thephysical and chemical properties of a material or a nano-material and for another part to design,synthesise and study the first prototypes of molecular nano-machines, studied one at a time.Cenamps (UK)Cenamps is an entrepreneurial, not-for-profit company established in the North East of England, withthe aim of strengthening the region's economic foundation, R&D capabilities and performancethrough the creation of high-tech jobs and new business opportunities. Various nanotechnologyprojects are part of Cenamps' efforts.Center for Cell Control (USA)The Center for Cell Control is working to first utilize systems control, with therapeutic intent, todetermine the parameters for guiding the cell to a directed phenotype/genotype which will then befollowed by in depth study, using nanoscale modalities, of the path by which this desired state isachieved. This approach will enable engineering systems that can be applied towards the regulationof a spectrum of cellular functions, such as cancer eradication, controlling viral infection onset, andstem cell differentiation.Center for Integrated Nanotechnologies (CINT) (USA)CINT is a Department of Energy/Office of Science Nanoscale Science Research Center (NSRC)operating as a national user facility devoted to establishing the scientific principles that govern thedesign, performance, and integration of nanoscale materials.Center for Material Elaboration & Structural Studies (CEMES) (France)Nanomaterials (electronic, magnetic and optical) fabrication and analysis.Center for Materials Discovery (UK)The Centre for Materials Discovery (CMD) is championing the use of High Throughput (HT)technologies across multiple industrial sectors within Merseyside and the Northwest of England.Competencies include materials synthesis for organic materials, polymers, porous materials,nanomaterials.Center for Nano Manufacturing and Metrology (CNMM) (USA)CNMM is a joint venture between the University of Maryland and the National Institute of Standards andTechnology. Its mission is to advance the science and technology of manufacturing and realization ofproducts based on the use of the unique properties achieved at the nanoscale.Center for NanoEnergetics Research (CNER) (USA)CNER is an Army funded center and exists at four university sites, with the University of Minnesota asthe lead institution.Its mission includes developing new methods for nanoparticle growth and surfacepassivation and developing new Sol-Gel methods for generation of nanostructured materials withemphasis on energy release.Center for Nanophase Materials Sciences at Oak Ridge National Laboratory (USA)The Center for Nanophase Materials Sciences at Oak Ridge National Laboratory is a collaborative


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nanoscience user research facility for the synthesis, characterization, theory, modeling, simulation, anddesign of nanoscale materials. It is one of five Nanoscale Science Research Centers currently beingestablished by the Office of Science, U.S. Department of Energy.Center for Nanoscale Science and Technology at NIST (USA)The Center consists of a Research Program and the Nanofab, a shared-use facility providingeconomical access to state-of-the-art nanofabrication and nano-measurement tools.Center on Functional Engineered Nano Architectonics (FENA) (USA)FENA aims to create and investigate new nano-engineered functional materials and devices, and novelstructural and computational architectures for new information processing systems beyond the limitsof conventional CMOS technology.Centexbel (Belgium)Centexbel is a Belgian textile research centre that offers activities around Research & Developmentand Services (testing included) throughout its regional offices. It's nanotechnology activities focusson nanoscale modifications of textile surfaces by means of atmospheric plasma treatment; nanocoatings; and the incorporation of nano additives in fibres and coatings; and electro-spinning for theproduction of nano fibresCentral Metallurgical Research & Development Institute - Nanotechnology Lab (Egypt)Preparation, characterization and test for application of nanomaterials in the form of particles, fibers,tubes and thin films by various methods and techniques such as sol-gel, co-precipitation,hydrothermal, solvothermal, microemulsion, CVD, PVD, and electrodeposition.Centre d'Investigacio en Nanociencia i Nanotecnologia (CIN2) (Spain)The Centre CIN2 wants to be a relevant actor in nanoscience and nanotechnology research in theinternational arena. Investigation in CIN2 are carried out by different groups specialist in knowledgeareas like electronic transport modelling, scanning tunnelling microscopy, synthesis of nanoparticles,surface nanostructuring, nanoestructured hybrid materials, nanoionics, nanooptics, nanomagnetism,low temperature transport in nanoentities (carbon nanotubes and graphenes) , nano-bio-sensoringand nanotechnology for energy, instrumentation and toxicity.Centre de Recherche Public - Gabriel Lippmann (Luxembourg)The main activity of the department Science and Analysis of Materials is the investigation of the allrange of materials up to the nanometre scale using state-of-the-art instrumentation.Centre for Cellular and Molecular Biology (CCMB) (India)The ongoing research programmes at the CCMB are in three major categories - high quality basicresearch in the frontier areas of modern biology, research relevant to societal needs, and application-oriented research towards commercialisation.Centre of Excellence in Nano- and Microscale Characterizationand Development of Advanced Materials(NAMAM) (Poland)The specific thematic objectives of the Centre are enhancement of the research potential in the field ofadvanced structural and functional materials and development of highly specialized techniques ofinvestigation to obtain information on properties of materials and their behavior in service conditions.Centre Suisse d'Electronique et de Microtechnique (CSEM) (Switzerland)CSEM's expertise in nanotechnology focuses on characterization, optics, microscopy, and surfaceengineering. The combination of these technologies with other ones such as microfluidics,microsystems, photonic optics and micro-optics makes CSEM able to integrate successfullynanotechnology to novel products.Centro de Nanociencia y Nanotecnologia Nanoescalar (nanoCiTec) (Colombia)A Colombian research association for all areas of nanotechnology and nanoscience.Centro Nacional de Alta Tecnologia - Laboratorio Nanotecnología (LANOTEC) (Costa Rica)(Spanish language site) The nanotechnology lab at the country's Center for High Technology.Centro Nacional de Microelectronica (CNM) (Spain)The CNM-IMB has established a new R&D activity focussed on the integration ofmicroelectronics with nanotechnology, which includes nanolithography, combination of nanodeviceswith CMOS circuits and development of nanoelectromechanical systems.Centro Nacional de Microelectronica - Optoelectronics and Nanomechanics Biosensor Group (Spain)The Biosensors Group is focused on the development of portable Biosensor Prototypes, mainly


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fabricated with IC compatible silicon technology, at macro, micro and nanoscale, for Total Analysissystems implementation.Chemical Process Engineering Research Institute (CPERI) (Greece)Applied materials research in processes, hydrocarbons, polymers, energy, nanoparticles, environment,catalysts.Chemical Research Center, Dept. of Surface Modifications and Nanostructures (Hungary)The main research interests of this Budapest Lab are focused on the development of new functionalmaterials, such as nanostructured and nanosized materials.Chemical Research Center, Laboratory for Nanostructured Metal Catalysts (Hungary)Spectroscopic investigation of interfacial phenomena to determine the chemical composition andelectronic structure of interfacial systems, as well as to characterise the structures of adsorbed layers.Children's Hospital Boston - Ingber Lab (USA)The Ingber laboratory is interested in the general mechanism of cell and developmental regulation.The lab also has shown that extracellular matrix and cell shape distortion play central roles in control ofangiogenesis that is required for tumor growth and expansion, and has developed numerous novelmicrotechnologies, nanotechnologies, magnetic control systems and computational models in thecourse of pursuing these studies.Chinese Academy of Sciences - Key Laboratory of Molecular Nanostructure and Nanotechnology(PR China)Being part of the Chinese Academy of Sciences, this laboratory emphasizes the basic research andrelated technology of molecular structures and nanodevices.Chinese Academy of Sciences - Nanoscale Physics and Devices Laboratory (NPDL) (PR China)The research of NPDL focuses on nanoscale physics and nanoscale devices.CIC biomaGUNE (Spain)CIC biomaGUNE (Centro de Investigacion Cooperativa en Biomateriales - Bioscience CooperativeResearch Centre) is a non-profit association with the basic aim of creating, producing, promoting andapplying scientific and technological knowledge in the biomaterials field by carrying out systematicresearch and experimental development work. One of the research programs puts particularemphasis on the properties and applications of molecular-level biological nanostructures.Ciceco (Portugal)The mission of the Portugese Center for Research in Ceramics and Composite Materials (Ciceco) isto develop the scientific and technological knowledge necessary for the innovative production andtransformation of ceramics and composite materials. Research areas include nanostructured materials.Cidetec (Spain)The Nanotechnology Unit at CIDETEC develops nanomaterials as well as new technologies such asnanophotonics and organic nanoelectronics, and organic photovoltaic technology.CINN Research Center on Nanomaterials and Nanotechnology (Spain)The Research Center on Nanomaterials and Nanotechnology (CINN) is a joint research centercreated in 2007 by institutional joint initiative between the Spanish Council for Scientific Research(CSIC), the Government of Asturias and the University of Oviedo. The CINN combines interdisciplinaryresearch strongly competitive at international level with scientific and technological demonstrationactivities towards enterprises technologically advanced, and has among its main objectives thecreation of new technology-based firms.City of Hope National Medical Center (USA)City of Hope is a research hospital that has started a multidisciplinary collaboration with the NationalAeronautics and Space Administrationâ€™s Jet Propulsion Laboratory (JPL) to pursue nanomedicinetherapies.CMIC - Centro de Investigación en Microtecnologías (Spain)CMIC is a research centre in Micro/Nano Technologies, which is the result of a Strategic Alliancebetween the research centres CEIT, Ikerlan and Tekniker, the universities Mondragón Unibertsitateaand Tecnun, and the MCC business group, for Technological Research and Development in Micro/Nano Technologies.Columbia University - NanoMedicine Center for Mechanical Biology (USA)The NanoMedicine Center for Mechanical Biology aims to advance understanding of cellular


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mechanical biology in order to develop technologies for regenerative medicine.CoRI Coatings Research Institute (Belgium)CoRI is a private institute created in 1957 as a non profit organization in order to stimulate scientificand technological development in the coatings industry. The aim is to extend basic knowledge onessential properties of organic coatings such as durability, rheology, corrosion protection, colour,adhesion. The objective is to assist enterprises in their individual research and development effortsin new technologies such as powder coating, solventless paints, waterborne paints, radcure.Dailan Institute of Chemical Physics - Nano and Interfacial Catalysis Group (PR China)The group is devoted to fundamental research on the catalysis on nanocatalysts and interfacechemistry, with the emphasis on the development and employment of appropriate methods andtechnologies in order to understand the nature of catalysis.Defense Advanced Research Projects (DARPA) (USA)DARPA is the central research and development organization for the Department of Defense. Itmanages and directs selected basic and applied research and development projects for DoD, andpursues research and technology where risk and payoff are both very high and where success mayprovide dramatic advances for traditional military roles and missions. DARPA manages a number ofnanotechnology projects.Department for Environment Food and Rural Affairs (Defra) - Nanotechnology Group (UK)Defra's primary interest in nanotechnologies is in managing any potential risks to the environmentand human health via the environment.Deutsche Forschungsgemeinschaft - Nanowires and Nanotubes (Germany)The Focused Research Program 'Nanowires and Nanotubes: From Controlled Synthesis to Function'supports the Theory of Development of Templates - Fabrication of Nanowires and Nanotubes -Charaterization.Egypt-IBM Nanotechnology Research Center (Egypt)Egypt will cooperate with IBM on several initial projects in the following nanotechnology focus areas:Thin Film Silicon Photovoltaics; Spin-On Carbon-Based Electrodes for Thin Film Photovoltaics;Energy Recovery from Concentrated Photovoltaic for Desalination; Computational Modeling andSimulation.ENEA MAT-Nano (Italy)MAT-NANO is the device fabrication section of the 'Physical Technologies and New Materials' (FIM)department of ENEA, the Italian Agency for New Technologies, Energy and Environment.Environmental and Industrial Applications of Catalysis (AMIC) (Spain)AMIC is an innovation center belonging to the Technological Innovation Network created by theCatalan Autonomous Government. AMIC offers key-in-hand solutions for environmental andindustrial problems of the manufacturing sectors. AMIC also works on nanomaterials such as Ag, Au,Pt, Cu and Pd nanocubes and other morphologies.Ernst Ruska-Center (ER-C) for Microscopy and Spectroscopy with Electrons (Germany)The Ernst Ruska-Center houses several of the world's most advanced electron microscopes and tools fornanocharacterisation.Estonian Nanotechnology Competence Center (Estonia)Estonian Nanotechnology Competence Centre is a consortium of industrial and science partners formed forperforming common research in the field of nanotechnology.European Molecular Biology Laboratory (EMBL) (EU)The European Molecular Biology Laboratory is a non-profit organisation and a basic research institute fundedby public research monies from 19 member states. Research at EMBL is conducted by approximately 80independent groups covering the spectrum of molecular biology. Research projects include biomolecularnanomachines and optical nanotechnologies.Flanders Materials Centre (Flamac) (Belgium)Flamac's objective is to become a competence centre in 'High Throughput Methodologies' to support researchfor the materials industry. Research includes Synthesis and characterization of submicron metal-oxidecoatings via chemical vapor deposition.Focus Center on Functional Engineered Nano Architectonics (FENA) (USA)FENA's research mission is 'To create and investigate new nano-engineered functional materials and devices,


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and novel structural and computational architectures for new information processing systems beyond the limitsof conventional CMOS technology.'Forschungszentrum Karlsruhe - Electronic and Optical Properties of Molecular Nanostructures/CNTs (Germany)The group is developing methods to sort carbon nanotubes according to their electronic properties, developingtechniques for parallel assembling of carbon nanotubes, organic molecules and inorganic nanorods intofunctional units,and studying the electronic and optical properties of sorted carbon nanotube material, single-tube devices and nanotube-molecule hybrids.Forschungszentrum Karlsruhe - Metaphotonics (Germany)The research activities of the Helmholtz Young Investigators group 'Metamaterials for Photonics' lead by Dr.Stefan Linden and Prof. Dr. Martin Wegener are devoted to fabrication and optical characterization offunctional metallic nanostructures for optical frequencies.Forschungszentrum Karlsruhe, Institute of Nanotechnology (Germany)The Nano- and Microsystems Program is aimed at developing application-tailored solutions. The group ispursuing interdisciplinary approaches based on a pool of technologies comprising mechanical, optical,magnetic, fluidic, electrical, materials science, and information technology competences. Our approach ischaracterized by the use of nanoscaled functional entities (materials, structures, components) in particular todevelop innovative and economically attractive solutions.Forward Science Laboratory (Japan)A laboratory supported by Kyoto University. The core focus is environmental remediation technologies withnanomaterials.Fraunhofer Center for Advanced Micro- and Nano-Optics (CMN) (Germany)This CMN is part of the Fraunhofer Institute for Applied Optics and Precision Engineering.Fraunhofer Center Nanoelectronic Technologies CNT (Germany)The Fraunhofer Center for Nanoelectronic Technologies CNT in Dresden is an institution of the Fraunhofer-Gesellschaft created as a public-private partnership with industrial partners Infineon Technologies AG andAdvanced Micro Devices AMD and other research partners. The new Center was established with the aim ofrapidly transferring innovative, discrete process solutions for the fabrication of nanoelectronic systems on 300-mm wafers into the industrial manufacturing environment.Fraunhofer ENAS (Germany)ENAS deals with smart systems integration with micro- and nanotechnologies. Reasearch focuses ondevelopment of MEMS/NEMS, 3D-integration and reliability.Fraunhofer Institute for Applied Polymer Research (IAP) (Germany)From organic LEDS for flat screens to drug delivery systems based on polymer nanoparticles - the IAP workhand in hand with the users of their polymers to develop the best material possible.Fraunhofer Institute for Environmental, Safety and Energy Technology (UMSICHT) (Germany)Research in nanocomposite materials for environmental applications.Fraunhofer Institute for Factory Operation and Automation (IFF) (Germany)Starting from the know-how already available and the experience in classical robotics, sensor technology anddevelopment of very fast controllers, new drive systems and tools for precision positioning up to the nanometerrange are developed.Fraunhofer Institute for Integrated Systems and Device Technology (IISB) (Germany)Research and development in the fields of microelectronics and nanoelectronics, power electronics,mechatronics, automotive electronics, and crystal growth.Fraunhofer Institute for Interfacial Engineering and Biotechnology (IGB) (Germany)Hybrid biological and synthetic particles have been developed which simulate the properties at the cellsurfaces. On the surface of these cell-mimetic, i.e. cell-imitating, nanoparticles, membrane proteins are bound insuch a way that their biological properties are fully maintained.Fraunhofer Institute for Manufacturing Engineering and Automation (IPA) (Germany)Researches coating technologies for nano materials.Fraunhofer Institute for Manufacturing Technology and Applied Materials Research (Germany)Research and development in the areas of Powder technology, Casting technology, Light weight construction,Micro production technology, Functional Printing, Rapid Prototyping, Nanopowder Technology.Fraunhofer Institute for Reliability and Microintegration (IZM) (Germany)Deals with Board Interconnection Technologies (nanowires); Chip Interconnection Technologies (nanoscale


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structures); Lifetime prediction for nanoscaled materials relies on nanoanalytics (nanodeformation) andnanosimulation.Fraunhofer Institute for Solar Energy Systems (Germany)Micro- and nanostructured solar cell architectures.Fraunhofer Research Group Nanotechnology for Life Science (Germany)Main focus is the development of polymer systems for biomedical applications such as therapy, delivery ordiagnostics. The lab studies a wide range of applied polymer systems including nanocarriers for drug delivery,copolymers for non-viral gene delivery and functional colloids for magnetic resonance imaging.Friedrich Miescher Institute for Biomedical Research (Switzerland)The Friedrich Miescher Institute is devoted to fundamental biomedical research. As part of the Novartis ResearchFoundation and one of the institutes of Novartis Corporate Research, the institute's goal is to exploit newtechnologies to further the understanding of the basic molecular mechanisms of cells and organisms in healthand disease.Fujitsu Laboratories (Japan)Pursues nanotechnology rseearch such as carbon nanotube interconnects and high-speed nanoscale devices.GE Global Research - Micro & Nanostructures Technologies (USA)The mission of the Micro and Nano Structures Organization is to apply frontier research knowledge andengineering techniques to synthesize, manipulate, and modify materials to create novel electronic devices,photonic devices, integrated structures and machines.(Source: http://www.nanowerk.com/nanotechnology/research/laboratories_a.php, 2010)

Genetic Engineering Companies

The Big SixThese six companies are the major players in agricultural genetic engineering in the private sector. Many ofthem have extensive plant breeding operations across the world, and then add transgenic traits to the varietiesthey breed.

Monsanto (NYSE: MON) is based in St. Louis, Missouri. Monsanto has the largest market shareof GE crops in the world.Pioneer Hi-Bred International is based in Johnston, Iowa. Pioneer is a subsidiary of DuPont (notpublicly traded).Syngenta AG (NYSE:SYT) is based in Basel, Switzerland.Dow Agrosciences is based in Indianapolis, Indiana. Dow Agrosciences is a subsidiary of DowChemical (NYSE:DOW).BASF (OTC:BASFY) is based in Ludwigshafen, Germany. While primarily a chemical company, theyare rapidly expanding their biotechnology division.Bayer Cropscience is based in Monheim, Germany. Bayer Cropscience is a subsidiary of Bayer(OTC:BAYRY).

Other CompaniesThere are a lot more companies working on genetic engineering than just the Big Six. Many of them studyindividual traits, and if successful in their research, may license their technology to larger companies that canincorporate it into their crops.


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United States

Aqua Bounty is based in Waltham, Massachusetts. They develop improved fish for aquaculture,and are close to obtaining approval for the first biotech animal for food production: fast growingsalmon.ArborGen LLC is based in Summerville, South Carolina. They study the genetics of trees, fromwood quality to restoring endangered tree species such as the American Chestnut.Arcadia Biosciences is based in Davis, California. They develop nitrogen use efficiency (NUE) forcrops, as well as salt tolerance, and works on the healthful composition of foods.Exelixis is based in South San Francisco, California.Mendel Biotechnology is based in Hayward, California. They have developed a yield-increasing trait insoybeans using genetic engineering.Targeted Growth, Inc. is based in Seattle, Washington.

Australia

Florigene Pty Ltd, based in Victoria, is a subsidiary of Suntory Group in Tokyo, Japan. Their researchfocuses on introducing new colors into ornamental flowers and have produced the world’s firstpurple carnations and the first true blue rose.

Canada

Okanagan Specialty Fruits Inc. is based in Summerland, British Columbia. They work on tree-fruittraits, and are currently pursuing deregulation of their non-browing apple.Performance Plants, Inc. is based in Kingston, Ontario. They conduct research on abiotic stressand yield, and biofuel-related traits.SemBioSys is based in Calgary, Alberta. They work on pharmaceutical traits and are developingGLA-rich safflower oil.

India

Mahyco is based in Dawalwadi. They have partnered with Monsanto to introduce Bt cotton to India.Metahelix Life Sciences Pvt Ltd is based in Karnataka. They own Dhaanya Seeds.

Israel

Evogene is based in Rehovot.Protalix is based in Carmiel. They conduct research on producing therapeutical proteins in plantcells.

The Netherlands

Genetwister Technologies B.V. is based in Wageningen. They use functional genomics and


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expression profiling to discover important genes in plants.KeyGene is based in Wageningen. Founded by several large Netherlands seed companies, it is acooperative research group that conducts genomic research on plant genetics. One of the cropsthey work on is aphid-resistant lettuce. They also have a US office in Maryland.

South Africa

Pannar Seed International, based in Greytown, South Africa, is also venturing into biotechnology

source: (http://www.biofortified.org/resources/genetic-engineering-companies/, 2010)

6.2 Distributing a Service

Distribution is definitely global whether regarding virtual product and services ormaterial product of services, since the infrastructure and the research represent aglobal brain network. The Institute is also hoping to invent new distribution patterns, orsystems which would have an impact on how the goods are sold and consumed as well.

6.3 Competition and Buying Patterns

Since infrastructure, system, communications and position in the industry would beidiosyncratic, there is no need for worrying about getting attention, or creating a brand ormarketing and advertising the product or self. In such a environment the attention wouldnaturally flow towards the bearer of such a idiosyncratic idiom.

6.4 Main Competitors

The Institute does not believe in a competition.


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7.0 Web Plan Summary

Network Interaction Tools

The content from the institute would be streaming live from any location the research ishappening. Anything happening at the institute’ s sites is a potential content, fromconstructions and reconstructions, to brainstorming and experiments. It would be streamed totwo media platforms, satellite channel (brand name: ScienceFeed TV) and on the internet(brand name: MindGroup.com). Internet platform will provide a possibility for interaction withusers thus creating a community that would be able to participate in a research, respectively.The same platform is ideologically and architecturally connected to the Virtual Institute, thediscussions and research would interact back and forth between the two.

A: For the broadcasting satellite streaming it will be developed an application that wouldenable interaction with the user, application will be optimized for any satellite receiver, set-top box and such.

Revenue models: product sale, licensing, brokerage

(Short-term products, go to market in 6 months to 2 years)

B: internet stream community

(Short-term products, go to market in 6 months to 2 years)

7.1 Website Marketing Strategy

The institute will invent its own new cutting-edge channels and formats for distributing ideas.The traditional methods that will be used for grabbing the attention will be viral and guerillamarketing and social media. The methods will definitely be upgraded and brought to a newlevel.


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7.2 Development Requirements

The internet infrastructure will be built and developed upon mindbanking.com andbrainharvest.biz projects and their infrastructure. Basic requirements: small team ofdevelopers and idea-generators that would constantly develop and produce new solutions,communities, communication paradigms and such. The main requirement is for each newsolution, idea, change or such to be ground-braking and to set new standards. Cosmeticchanges or solutions that do not offer new perspectives or idioms are definitely not acceptablefor the standards and requirements of the Institute. Furthermore, requirement also important;any solution, application or produced item, has to be a brilliant new solution that could bringcloser to optimization of ICT infrastructures.

8.0 Strategy and Implementation Summary

It must be comprehended that the path to a new evolution stage is not a linear one. Itis rather a complex and unstable structure which holds numerous properties and isextremely powerful. That power in this context is as we could describe it, pure energydrifting in hyperconnected puddles. The research projects and scopes overlap withone another as well as with strategic objectives proving the complex structure andinfrastructure of the institute and its strategy plausible. Strategy corresponds to thedouble vortex infrastructure.

The Institute is an immediacy, and it is a contingency. Such a contingency possessesenormous power and energy. Harvesting that power will lead in a realization of Value.

8.1 SWOT Analysis

8.1.1 Strengths

Complexity, Flexibility and sustainability of the system.

Endlessly upgradeable and expandable infrastructure.

Networking with global communities, industries and sectors.


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8.1.2 Weaknesses

8.1.3 Opportunities

Creating new markets, economies and values.

Perpetuating progress for the global communities and a society.

Creating new value for a society at large.

Accomplishing the next step of the evolution.

8.1.4 Threats

The idea too progressive or ahead of time.

Research to extend to a longer period than projected.


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8.2 Strategy Pyramid

The path to evolution quantum leap. It must be comprehended that the path to a newevolution stage is not a linear one. It is rather a complex and unstable structure which holdsnumerous properties and is extremely powerful. That power in this context is as we coulddescribe it, pure energy drifting in hyperconnected puddles. The research projects and scopesoverlap with one another as well as with strategic objectives proving the complex structureand infrastructure of the institute and its strategy plausible.

a.Deconstruction of all retrograde historic infrastructures and paradigms of the society which isdue to come through deconstruction of retrograde economic structures: division of labor, massproduction, competition, value chain and such and de-emphasizing their impact on socialprocesses. The mention could be accomplished through engaging communities in self-organized production (research projects: mindbanking.com, brainharvest.biz, roboticsresearch in relieving society from servile and detrimental labor)

b.Deconstruction of communication codes by researching language syntax, construction anddeconstruction of the language codes, investigating math codes and its relation andinteraction to human and post human consciences; combining mathematics, semiotics,linguistics and other related and non related science methods in order to produce newlanguage (subliminal?) and new communication paradigm.

c.Multiplication of human potential and intelligence (research projects: virtual institute,brainharvest, interface for a human brain-to-brain communication)

d.Freeing human being of the constraints of a physical (body) – research in nanogenetics,nanorobotics, etc.

e.Polidimension(s) – research in time and space continuum

Strategy corresponds to the double vortex infrastructure (instead of the pyramid).


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8.3 Value Proposition

Strategic goals of the Institute simultaneously represent the benefits for the Institute and forthe society at large. Deconstruction of all retrograde historic infrastructures and paradigms ofthe society which is due to come through deconstruction of retrograde economic structures:division of labor, mass production, competition, value chain and such and by de-emphasizingits impact on social processes.Deconstruction of communication codes and proposal of a newcommunication paradigm and even new language. Multiplication of human potential andintelligence. Freeing human being of the constraints s of the physical (body). Discoveringpolidimension(s). Proposed infrastructure of the Institute, surprisingly enough, is capable togenerate revenue as well as to produce new value, infrastructures, idioms and, respectively,a new society.

8.4 Competitive Edge

State-of-the-art system that runs behind the infrastructure. Constant development of thebasic system. Global network of brains, which is constantly expanding. Virtually nocompetition in the region. Focused on achieving Human 2.0 and Neohuman Society.


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8.5 Marketing Strategy

Marketing strategy accomplishes under a motto "forget everything you know (aboutmarket)". The background of proposed marketing strategy is theory;

Social Contract (Hobbes,Thomas; Leviathan or The Matter, Forme and Power of aCommon Wealth Ecclesiasticall and Civil, 1651; )

Social Contract (Rousseau, Jean Jaques; The Social Contract; 1762)

Historical Materialism (Marx, Karl ; A Contribution to the Critique of PoliticalEconomy,1859)

Foucault, Michel; Power, Essential Works of Foucault 1954 - 1984, volume 3; EditionsGallimard; 1994

Systems theory (von Foerster, 1960)

Chaos theory (Gleick, 1991)

Network Theory (Buchanan, 2003; Newman, Barabasi, Watts, 2006)

Media extension of human body (McLuhan, 1964)

Network vs. Hierarchical infrastructure (Galloway, 2002;

PricewaterhouseCoopers, 2002)

Hyperreality (Baudrillard, 1981)

The Mirror of Production (Baudrillard, 1975)

The Attention Economy (Davenport & Beck, 2001; Goldhaber,

1997; Barbrook, 1997; Berman & McClellan, 2001; Ghosh, 1997)

Mass vs. Individual media (Kompare, 2002)

Convergence (Forman & Saint John, 2000)

Autopoiesis (Maturana & Varela, 1987)

Knowledge Economy (Leadbeater, 2000)

Gift Economy (Barbrook, 1997)

Self-management (Petras & Veltmeyer, 2002)


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Governing Dynamics, Nash equilibrium

Anarchist Economics

Energy Theory of Value

Mutualism

Panarchist Synthesis

Technocracy

...

8.5.1 Positioning Statement

There is definitely a necessity for an institute of such research scope and magnitude, sincethere is the global need for a development boost, quantum leap even. Hope it is not toopompous to say that society at large is hungry of vision such the Institute could provide for.

8.5.2 Pricing Strategy

No elaborate pricing strategy. How do you put a price tag on development andevolution, apart that we could say it is valuable, invigorating and rewarding production.

8.5.3 Promotion Strategy

Promotion will be based on original and new attention solutions, all retrogrademarketing and advertising solutions and practices will be avoided as much as possible.Social media is somewhat acceptable communication solution, although it is already anold concept and practice.

8.5.4 Distribution Strategy


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8.5.5 Marketing Programs

The economic logic behind the proposed system starts with Baudrillard’s critique of Marx,accepting the notion that Marx was too rooted in assumptions of political economy toprovide a framework for radical action (Baudrillard, 1975). Conceivably the quandary isthe theory is rooted, and not that is rooted in political economy. Using unstable theoryof complex infrastructure (almost organic one) we could possibly be empowered forradical action, through radical theory, if the radical is to be of any merit to the sametheory. He proposes radical thought: labor power doesn’t need to be labor power(Baudrillard, 1975). Expanding the idea, if the labor power becomes creative power, oran intellectual power and abate labor power, it would diminish assumptions of historicmaterialism thus making exchange of power that abolishes rooted codependencebetween modes of production and means of production, also between labor andownership.

Marketing programs emanate from the idea of revisiting and restructuring basic marketlogic and dynamics. The idea of Networked Partnerships: all social producing powerslinked in a dynamic Modular Producing Units that at any given moment could beinstantly restructured, creating the system intelligent enough to make an adjustmentorganically by itself, is just a beginning of rethinking the market structure. If we perceivethe market as a live(!) entity any paradigm shift is possible; even more so if we perceiveit as a contingency, market being fundamentally contingent or ad hoc. It could open avast number of properties which could rise the quality of the market, giving the market apossibility to adapt swiftly to any influence, change or an impact. Mentioned presupposesabatement of value-chain (perhaps a value network is a new idiom) or any other rigidmarket structure.


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8.6 Sales Strategy

Business model

The idea is for the Institute to build a basic infrastructure to enable research according toresearch scope(s) and strategic goals. Further development requires collaboration withresearch teams and individuals around the globe. Sharing research will enable optimalinfrastructure to be established and developed. Furthermore, it will enable swifteradvancement in research and development. The idea is to create a system that is notcumbersome and not too costly, a system which is flexible and could restructure at any timewithout stressing the infrastructure drastically.

Furthermore, project documentation which is to be developed will further develop infrastructureand economic logic upon the Institute will grow, and would have a task to prepare originalbusiness infrastructure for the start-up. One of the ideas is for the Institute to be an agency forbrains, ideas and development.

Research

Main activity of the Institute and will be conducted at the startup in 3 different divisions: Divisionof Nanotechnology, Division of Robotics and Division of Technology of Social Development.Researches are set in three different time frames: short-term, medium term and long-termresearch extent in order to assure constant intellectual production and go-to-market action.

Production

Production will be organized in the partnership with the partners from the industries.

Services sales

Service sales will distribute products/services mainly from the Division of Technology of SocialDevelopment in order to have constant revenue assured. Revenue will be achieved viasubscriptions, pay per piece, selling virtual spaces, selling virtual construction sites,advertising etc.

Consulting

Consulting will be done by our experts in the areas the Institute can provide for. Consultingservice is also planned in order to have constant revenue assured.

Revenue models

Service sales


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Subscriptions

Pay per piece

Product sales

Patents

Licensing

Consulting

8.6.1 Sales Forecast

Projection is that research from the Division of Technology of the Social Developmentwould generate fastest ROI since it is a research that starts immediately or it alreadycommenced; furthermore it is a short-term research with go-to-market action in 2years, and it represents consumer based distribution (content sales, service sales,product and virtual product sales, etc.). Research is further divided to medium-termresearch with go to market in 3-5 years, and long-term research with a time frame of go-to-market action of 5-7 years. Furthermore, we expect at least two more investmentrounds apart from start-up funding, in the following 2-4 years around 1 billion Euro.

Table: Sales Forecast

Sales Forecast

2011 2012 2013 2014 2015

Sales

Product sales $765,000 $7,800,000 $16,000,000 $31,000,000 $73,000,000

Service sales $0 $4,300,000 $7,300,000 $13,000,000 $34,000,000

Virtual Products sales $885,000 $5,600,000 $8,400,000 $15,600,000 $43,000,000

Patents / Licensing $0 $0 $0 $21,000,000 $40,000,000

Virtual Service sales $0 $3,200,000 $5,700,000 $9,000,000 $28,000,000

Total Sales $1,650,000 $20,900,000 $37,400,000 $89,600,000 $218,000,000

Direct Cost of Sales 2011 2012 2013 2014 2015

Product sales $348,000 $3,600,000 $7,600,000 $11,500,000 $30,000,000

Service sales $0 $3,000,000 $3,200,000 $5,600,000 $16,000,000

Virtual Products sales $339,000 $1,700,000 $3,000,000 $5,300,000 $7,000,000

Patents / Licensing $0 $0 $0 $9,000,000 $8,000,000

Virtual Service sales $0 $1,200,000 $4,000,000 $4,000,000 $12,000,000

Subtotal Direct Cost of Sales $687,000 $9,500,000 $17,800,000 $35,400,000 $73,000,000


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8.6.2 Sales Programs


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8.7 Strategic Alliances

Dr. Ivan Budimir, Superconductivity

From 1996 to 2008 – working at the «Ruđer Bošković» Institute, Division of MaterialsPhysics in the Molecular Physics Laboratory.

In 1995, published a work SYNTHESIS OF BISCO MONOCRYSTAL (2212) ANDMEASUREMENTS OF SOME TRANSPORT PROPERTIES Budimir, Fizika B4 (1995 )623].

Goran Bašić (Zagreb, Croatia/Canada/USA) – NASA JET PROPULSIONLABORATORY; Works with robotics and robotics related technologies. Degree: M.Sc inSpace Studies (Thesis: Design and development of the Hydrothermal vent sampler for insitu hydrothermal vent exploration), International Space University, Strasbourg,France; degree obtained in 2005. At the moment in Canada, doctoral studies.

Joe Davis (Cambridge, USA), affiliate researcher, Massachusetts Institute of Technology(MIT)

Aleksandar Kovač – designer – at the moment in Japan/Kyoto, doctoral studies

Slaven Slobodnjak (Zagreb, Croatia) – Independent scholar: studying ancientastrological and occult texts in the context of Hellenistic philosophy and grammar.Pursuing arias of research often marginalised in academic circles, which could on theother hand offer interesting models and new paradigms for research within philosophyand logic.

Kaos (Zagreb, Croatia) – Studio with international clients; top professionals in 3Dgraphic and animation, video effects, video production and postproduction. www.kaos.hr

Bunch (Zagreb/London/Singapore) – design studio – bunch gathered from variouscorners of the world with different approaches to design and diverse areas of designexpertise. www.bunchdesign.com

Sail d.o.o. / Ivan Nikolić - IT architect

Suad Čokljat/ IndigoAudio; producer, composer, sound engineer; www.indigo-audio.com(Emmy award)

Tvrtko Kapetanović – product designer, 3D guru

Vilko Klein – developer


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Hrvoje Bielen – designer

Densi Vdovič – architect

Unversities (MIT, Harvard, Zagreb University, Osijek University), Institutes etc.

etc.

8.8 Milestones

The rationale behind the milestones is that the work and research starts immediately. Onetask is not waiting for the other task to finish unless it is physically impossible to do so;everything is happening simultaneously. The researches would not be putt of until thefacilities are built or adapted; it would start at partners' companies/facilities/venues, willbe developed in virtual spaces and spheres, will use established internet venues, oreven use ad hoc methodology. To exemplify; research in any proposed topic innanotechnology could start as a discussion at any internet venue. The idea is that theInstitute is an entity that already exists, which develops and evolves all the time, and is nottied down to any physical location. The Institute IS! at this very moment, and became atthe moment the idea was born. It is already a neural infrastructure, system and network.


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Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department

Documentation / Legal /

Management

1/7/2011 5/7/2011 $3,000,000 ABC Management/

Legal

Start research alt. Institutes 1/21/2011 4/7/2011 $13,000,000 ABC Science/

development

dpts.

Virtual infrastructure building 2/1/2011 9/7/2011 $15,000,000 ABC Science/

development

dpts.

Location Korcula/Blato adapting 3/15/2011 7/7/2011 $3,000,000 ABC Science dpts./

management

Building Incheon location 5/7/2011 1/7/2012 $58,000,000 ABC Legal/

Management

Equipment setting lab Incheon 1/7/2012 2/7/2012 $13,000,000 ABC Management

Media Campaign 2/7/2012 4/7/2012 $2,000,000 ABC Media

department

Second wave research 2/15/2012 2/7/2013 $250,000,000 ABC Science dpts.

Go-to_Market Action 2/7/2013 7/7/2013 $20,000,000 ABC Management/

Marketing

Third wave research 2/7/2013 3/7/2015 $700,000,000 ABC Science dpts.

Go-to_Market Action 3/7/2015 7/7/2015 $20,000,000 ABC Management/

Marketing

Totals $1,097,000,000


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9.0 Management Summary

The management of the Institute so far lies on one person, Ana Soric, a bearer of theidea and the vision, the leader and the one who fiercely struggles for the idea and theprogram to become real. The others will follow. The idea of leadership in this context doesnot mean rigidity and ruling, it is more of an avantgarde, or someone who can seefurther. The job already done in three years include: development of the idea andproject documentation, lobbying towards governmental institutions, corporations, SME,investors, strategic partners, universities, on the internet; campaigns (Urban Survival Kit);development of the projects (Cybernetic Vehicle, the Androids: www.sail.hr/media;Mindbanking.com), etc.

9.1 Organizational Structure

The organization of the Institute' s management would be the same as theinfrastructure, network-like, fluid, organic, modular, and of course optimal.

Jane DoeBrain

Ana SoricBrain

John DoeVice President

Jane DoeVice President

9.2 Management Team

The Institute already communicated with some individuals and the companies aboutbecoming a part of the management team of the Institute. It is yet to be decided aboutexact number of people, the strategy and organization of the management team.

9.3 Management Team Gaps

9.4 Personnel Plan


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Table: Personnel

Personnel Plan

2011 2012 2013 2014 2015

Production Personnel

Scientiests $1,974,000 $7,000,000 $11,500,000 $17,000,000 $26,000,000

Developers $1,702,200 $2,800,000 $3,900,000 $6,000,000 $8,000,000

Professionals: engineers, technicians, media etc. $1,138,000 $2,200,000 $3,600,000 $5,300,000 $7,000,000

Subtotal $4,814,200 $12,000,000 $19,000,000 $28,300,000 $41,000,000

Sales and Marketing Personnel

Marketing $0 $1,000,000 $1,500,000 $3,000,000 $3,000,000

Sales $0 $1,000,000 $1,500,000 $2,000,000 $2,000,000

$0 $0 $0 $0 $0

Subtotal $0 $2,000,000 $3,000,000 $5,000,000 $5,000,000

General and Administrative Personnel

Management & Board $821,876 $1,450,000 $2,300,000 $5,600,000 $8,000,000

Legal $767,876 $1,700,000 $3,600,000 $4,600,000 $6,500,000

Maintenance $231,300 $530,000 $960,000 $1,600,000 $2,100,000

Subtotal $1,821,052 $3,680,000 $6,860,000 $11,800,000 $16,600,000

Other Personnel

Name or Title or Group $0 $0 $0 $0 $0



Subtotal $0 $0 $0 $0 $0

Total People 0 0 0 0 0

Total Payroll $6,635,252 $17,680,000 $28,860,000 $45,100,000 $62,600,000

10.0 Financial Plan

The funding of the Institute is planned by obtaining capital from Private Equity/VentureCapital funds, also via governmental funding, loans and eventually by IPO (Initial PublicOffering). The business is expected to grow in a 5 period time. In 2015 it is expected forthe return of investment to start to realize, and 2017 would be the exit year for investors.

10.1 Start-up Funding


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Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $13,530,729

Start-up Assets to Fund $107,000,000

Total Funding Required $120,530,729

Assets

Non-cash Assets from Start-up $80,000,000

Cash Requirements from Start-up $27,000,000

Additional Cash Raised $0

Cash Balance on Starting Date $27,000,000

Total Assets $107,000,000

Liabil ities and Capital

Liabil ities

Current Borrowing $0

Long-term Liabil ities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabil ities (interest-free) $0

Total Liabil ities $0

Capital

Planned Investment

Owner $0

Investor $120,530,729

Additional Investment Requirement $0

Total Planned Investment $120,530,729

Loss at Start-up (Start-up Expenses) ($13,530,729)

Total Capital $107,000,000

Total Capital and Liabil ities $107,000,000

Total Funding $120,530,729

10.2 Important Assumptions

10.3 Key Financial Indicators


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10.4 Break-even Analysis

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $1,453,149

Assumptions:

Average Percent Variable Cost 42%

Estimated Monthly Fixed Cost $848,111


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10.5 Projected Profit and Loss


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Table: Profit and Loss

Pro Forma Profit and Loss

2011 2012 2013 2014 2015

Sales $1,650,000 $20,900,000 $37,400,000 $89,600,000 $218,000,000

Direct Cost of Sales $687,000 $9,500,000 $17,800,000 $35,400,000 $73,000,000

Production Payroll $4,814,200 $12,000,000 $19,000,000 $28,300,000 $41,000,000

Other Costs of Sales $0 $0 $0 $0 $0

Total Cost of Sales $5,501,200 $21,500,000 $36,800,000 $63,700,000 $114,000,000

Gross Margin ($3,851,200) ($600,000) $600,000 $25,900,000 $104,000,000

Gross Margin % -233.41% -2.87% 1.60% 28.91% 47.71%

Operating Expenses

Sales and Marketing Expenses

Sales and Marketing Payroll $0 $2,000,000 $3,000,000 $5,000,000 $5,000,000

Advertising/Promotion $1,500,000 $4,000,000 $8,000,000 $16,000,000 $25,000,000

Other Sales and Marketing Expenses $1,300,000 $2,000,000 $5,000,000 $10,000,000 $13,000,000

Total Sales and Marketing Expenses $2,800,000 $8,000,000 $16,000,000 $31,000,000 $43,000,000

Sales and Marketing % 169.70% 38.28% 42.78% 34.60% 19.72%

General and Administrative Expenses

General and Administrative Payroll $1,821,052 $3,680,000 $6,860,000 $11,800,000 $16,600,000

Marketing/Promotion $0 $0 $0 $0 $0

Depreciation $0 $0 $2,265,000 $2,265,000 $2,265,000

Rent $231,000 $650,000 $0 $0 $0

Util ities $56,000 $123,000 $0 $0 $0

Insurance $565,000 $1,500,000 $0 $0 $0

Payroll Taxes $4,644,676 $12,376,000 $20,202,000 $31,570,000 $43,820,000

Other General and Administrative

Expenses

$59,600 $129,000 $0 $0 $0

Total General and Administrative

Expenses

$7,377,328 $18,458,000 $29,327,000 $45,635,000 $62,685,000

General and Administrative % 447.11% 88.32% 78.41% 50.93% 28.75%

Other Expenses:

Other Payroll $0 $0 $0 $0 $0

Consultants $0 $0 $0 $0 $0

Other Expenses $0 $0 $0 $0 $0

Total Other Expenses $0 $0 $0 $0 $0

Other % 0.00% 0.00% 0.00% 0.00% 0.00%

Total Operating Expenses $10,177,328 $26,458,000 $45,327,000 $76,635,000 $105,685,000

Profit Before Interest and Taxes ($14,028,528) ($27,058,000) ($44,727,000) ($50,735,000) ($1,685,000)

EBITDA ($14,028,528) ($27,058,000) ($42,462,000) ($48,470,000) $580,000

Interest Expense $0 $0 $0 $0 $0

Taxes Incurred $0 $0 $0 $0 $0

Other Income

Other Income Account Name $0 $0 $0 $0 $0

Other Income Account Name $0 $0 $0 $0 $0

Total Other Income $0 $0 $0 $0 $0

Other Expense

Other Expense Account Name $0 $0 $0 $0 $0


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Other Expense Account Name $0 $0 $0 $0 $0

Total Other Expense $0 $0 $0 $0 $0

Net Other Income $0 $0 $0 $0 $0

Net Profit ($14,028,528) ($27,058,000) ($44,727,000) ($50,735,000) ($1,685,000)

Net Profit/Sales -850.21% -129.46% -119.59% -56.62% -0.77%


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10.6 Projected Cash Flow


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Table: Cash Flow

Pro Forma Cash Flow

2011 2012 2013 2014 2015

Cash Received

Cash from Operations

Cash Sales $1,650,000 $20,900,000 $37,400,000 $89,600,000 $218,000,000

Subtotal Cash from Operations $1,650,000 $20,900,000 $37,400,000 $89,600,000 $218,000,000

Additional Cash Received

Non Operating (Other) Income $0 $0 $0 $0 $0

Sales Tax, VAT, HST/GST Received $0 $3,910,000 $5,520,000 $20,700,000 $54,740,000

New Current Borrowing $0 $0 $0 $0 $0

New Other Liabil ities (interest-free) $0 $0 $0 $0 $0

New Long-term Liabil ities $0 $0 $0 $0 $0

Sales of Other Current Assets $0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0

New Investment Received $0 $120,000,000 $250,000,000 $500,000,000 $700,000,000

Subtotal Cash Received $1,650,000 $144,810,000 $292,920,000 $610,300,000 $972,740,000

Expenditures 2011 2012 2013 2014 2015

Expenditures from Operations

Cash Spending $6,635,252 $17,680,000 $28,860,000 $45,100,000 $62,600,000

Bill Payments $5,563,364 $85,046,342 $112,436,565 $257,172,281 $571,151,246

Subtotal Spent on Operations $12,198,616 $102,726,342 $141,296,565 $302,272,281 $633,751,246

Additional Cash Spent

Non Operating (Other) Expense $0 $0 $0 $0 $0

Sales Tax, VAT, HST/GST Paid Out $0 $3,910,000 $5,520,000 $20,700,000 $54,740,000

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0

Other Liabil ities Principal Repayment $0 $0 $0 $0 $0

Long-term Liabil ities Principal Repayment $0 $0 $0 $0 $0

Purchase Other Current Assets $0 $2,000,000 $2,000,000 $4,000,000 $10,000,000

Purchase Long-term Assets $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0

Subtotal Cash Spent $12,198,616 $108,636,342 $148,816,565 $326,972,281 $698,491,246

Net Cash Flow ($10,548,616) $36,173,658 $144,103,435 $283,327,719 $274,248,754

Cash Balance $16,451,384 $52,625,042 $196,728,477 $480,056,196 $754,304,950


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10.7 Projected Balance Sheet


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Table: Balance Sheet

Pro Forma Balance Sheet

2011 2012 2013 2014 2015

Assets

Current Assets

Cash $16,451,384 $52,625,042 $196,728,477 $480,056,196 $754,304,950

Inventory $5,313,000 $73,469,432 $137,658,515 $329,791,523 $802,394,554

Other Current Assets $6,000,000 $8,000,000 $10,000,000 $14,000,000 $24,000,000

Total Current Assets $27,764,384 $134,094,474 $344,386,992 $823,847,719 $1,580,699,504

Long-term Assets

Long-term Assets $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000

Accumulated Depreciation $0 $0 $2,265,000 $4,530,000 $6,795,000

Total Long-term Assets $68,000,000 $68,000,000 $65,735,000 $63,470,000 $61,205,000

Total Assets $95,764,384 $202,094,474 $410,121,992 $887,317,719 $1,641,904,504

Liabil ities and Capital 2011 2012 2013 2014 2015

Current Liabil ities

Accounts Payable $2,792,913 $16,181,003 $18,935,520 $46,866,248 $103,138,033

Current Borrowing $0 $0 $0 $0 $0

Other Current Liabil ities $0 $0 $0 $0 $0

Subtotal Current Liabil ities $2,792,913 $16,181,003 $18,935,520 $46,866,248 $103,138,033

Long-term Liabil ities $0 $0 $0 $0 $0

Total Liabil ities $2,792,913 $16,181,003 $18,935,520 $46,866,248 $103,138,033

Paid-in Capital $120,530,729 $240,530,729 $490,530,729 $990,530,729 $1,690,530,729

Retained Earnings ($13,530,729) ($27,559,257) ($54,617,257) ($99,344,257) ($150,079,257)

Earnings ($14,028,528) ($27,058,000) ($44,727,000) ($50,735,000) ($1,685,000)

Total Capital $92,971,472 $185,913,472 $391,186,472 $840,451,472 $1,538,766,472

Total Liabil ities and Capital $95,764,384 $202,094,474 $410,121,992 $887,317,719 $1,641,904,504

Net Worth $92,971,472 $185,913,472 $391,186,472 $840,451,472 $1,538,766,472

10.8 Business Ratios


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Table: Ratios

Ratio Analysis

2011 2012 2013 2014 2015 Industry Profile

Sales Growth 0.00% 1166.67% 78.95% 139.57% 143.30% -31900.00%

Percent of Total Assets

Inventory 5.55% 36.35% 33.57% 37.17% 48.87% 163900.00%

Other Current Assets 6.27% 3.96% 2.44% 1.58% 1.46% -659300.00%

Total Current Assets 28.99% 66.35% 83.97% 92.85% 96.27% -377300.00%

Long-term Assets 71.01% 33.65% 16.03% 7.15% 3.73% 377400.00%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabil ities 2.92% 8.01% 4.62% 5.28% 6.28% 242400.00%

Long-term Liabil ities 0.00% 0.00% 0.00% 0.00% 0.00% 265200.00%

Total Liabil ities 2.92% 8.01% 4.62% 5.28% 6.28% 507600.00%

Net Worth 97.08% 91.99% 95.38% 94.72% 93.72% -507500.00%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Gross Margin -233.41% -2.87% 1.60% 28.91% 47.71% 434500.00%

Selling, General & Administrative Expenses 616.81% 126.59% 121.20% 85.53% 48.48% 285800.00%

Advertising Expenses 90.91% 19.14% 21.39% 17.86% 11.47% 2600.00%

Profit Before Interest and Taxes -850.21% -129.46% -119.59% -56.62% -0.77% 32600.00%

Main Ratios

Current 9.94 8.29 18.19 17.58 15.33 2,122.00

Quick 8.04 3.75 10.92 10.54 7.55 10,856.00

Total Debt to Total Assets 2.92% 8.01% 4.62% 5.28% 6.28% 581500.00%

Pre-tax Return on Net Worth -15.09% -14.55% -11.43% -6.04% -0.11% 48100.00%

Pre-tax Return on Assets -14.65% -13.39% -10.91% -5.72% -0.10% 20100.00%

Additional Ratios 2011 2012 2013 2014 2015

Net Profit Margin -850.21% -129.46% -119.59% -56.62% -0.77% n.a

Return on Equity -15.09% -14.55% -11.43% -6.04% -0.11% n.a

Activity Ratios

Inventory Turnover 0.12 0.24 0.17 0.15 0.13 n.a

Accounts Payable Turnover 2.99 6.08 6.08 6.08 6.08 n.a

Payment Days 49 35 56 42 44 n.a

Total Asset Turnover 0.02 0.10 0.09 0.10 0.13 n.a

Debt Ratios

Debt to Net Worth 0.03 0.09 0.05 0.06 0.07 n.a

Current Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.a

Liquidity Ratios

Net Working Capital $24,971,472 $117,913,472 $325,451,472 $776,981,472 $1,477,561,4

72

n.a

Interest Coverage 0.00 0.00 0.00 0.00 0.00 n.a

Additional Ratios

Assets to Sales 58.04 9.67 10.97 9.90 7.53 n.a

Current Debt/Total Assets 3% 8% 5% 5% 6% n.a

Acid Test 8.04 3.75 10.92 10.54 7.55 n.a

Sales/Net Worth 0.02 0.11 0.10 0.11 0.14 n.a

Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a


Page 75

10.9 Long-term Plan

Long term plan projection presupposes in years 5-7 the Institute will start to cash in onserious products from the research, will produce serious amount of patents andlicences and would be able to create new value i not for the society than for thecompany/institute and for the consumers/community, and partners and investors as well.

10.10 The Investment Offering

Table: Investment Offering

Investment Offering Seed Round 1 Round 2 Exit

Proposed Year: 1 2 3 7

Valuation, Investment, Shares

Investment Amount $91,127,659 $700,000,000 $870,000,000

Equity Share Offering Percentage 300.00% 200.00% 1000.00%

Valuation $30,375,886 $350,000,000 $87,000,000

Investor Exit Payout $0 $0 $0

Investor Years Until Exit 6 5 4

Investor IRR 0.00% 0.00% 0.00%

Share Ownership Year 1 Year 2 Year 3 Year 7

Founders' Shares 0 0 0 0

Stock Split Multiple 0 0 0

Stock Options Issued 0 0 0 0

Investor Shares Issued 0 0 0

Price per share $0.00 $0.00 $0.00 $0.00

Options Holders' Shares 0 0 0 0

Year 1 Investors' Shares 0 0 0 0

Year 2 Investors' Shares 0 0 0

Year 3 Investors' Shares 0 0

Total Shares Outstanding 0 0 0 0

Equity Ownership Percentage Year 1 Year 2 Year 3 Year 7

Founders' Equity 0.00% 0.00% 0.00% 0.00%

Option Holders' Equity 0.00% 0.00% 0.00% 0.00%

Year 1 Investors' Equity 0.00% 0.00% 0.00% 0.00%

Year 2 Investors' Equity 0.00% 0.00% 0.00%

Year 3 Investors' Equity 0.00% 0.00%

Total Equity 0.00% 0.00% 0.00% 0.00%

Investors' Equity 0.00% 0.00% 0.00% 0.00%

Founders' & Employees' Equity 0.00% 0.00% 0.00% 0.00%


Page 76

10.11 Valuation

The educated guess is that the company/institute will be worth around 300 Billion USD in2017. The calculation is based on projected investments, revenue, attention value andother created values, brains gathered around the Institute and other brand equity andmarket criteria.

Table: Investment Analysis

Investment Analysis

Start 2011 2012 2013 2014 2015

Initial Investment

Investment $120,530,729 $0 $120,000,000 $250,000,000 $500,000,000 $700,000,000

Dividends $0 $0 $0 $0 $0 $0

Ending Valuation $0 $0 $0 $0 $0 $152,600,000

Combination as Income Stream ($120,530,72

9)

$0 ($120,000,00

0)

($250,000,00

0)

($500,000,00

0)

($547,400,00

0)

Percent Equity Acquired 35%

Net Present Value (NPV) ($989,938,22

1)

Internal Rate of Return (IRR) 0%

Assumptions

Discount Rate 10.00%

Valuation Earnings Multiple 10 10 10 10 10

Valuation Sales Multiple 2 2 2 2 2

Investment (calculated) $120,530,729 $0 $120,000,000 $250,000,000 $500,000,000 $700,000,000

Dividends $0 $0 $0 $0 $0

Calculated Earnings-based Valuation $0 $0 $0 $0 $0

Calculated Sales-based Valuation $3,300,000 $41,800,000 $74,800,000 $179,200,000 $436,000,000

Calculated Average Valuation $1,650,000 $20,900,000 $37,400,000 $89,600,000 $218,000,000

10.12 Use of Funds

Table: Use of Funds

Use of Funds

Use Amount

Buildings $68,000,00

0

Salaries $20,000,00

0

Equipment $23,000,00

0

Infrastructure $10,000,00

0

Total $121,000,0

00


Page 77

10.13 Payback

Table: Payback

Payback

Projected Payback Calculation

Investment 2011 2012 2013 2014 2015

Investment $500,000

Cash Returns by Year $0 $0 $100,000 $500,000 $900,000

Combination as Income Stream ($500,000) $0 $0 $100,000 $500,000 $900,000

Cumulative Net Cash Flow to Investors ($500,000) ($500,000) ($500,000) ($400,000) $100,000 $1,000,000

Payback Period 3 years

Appendix

Page 1

Table: Sales Forecast

Sales Forecast

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sales

Product sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $765,000

Service sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Virtual Products sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $885,000

Patents / Licensing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Virtual Service sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,650,000

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Product sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $348,000

Service sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Virtual Products sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $339,000

Patents / Licensing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Virtual Service sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $687,000

Appendix

Page 2

Table: Personnel

Personnel Plan


Production Personnel

Scientiests $78,000 $78,000 $78,000 $90,000 $90,000 $120,000 $160,000 $180,000 $250,000 $250,000 $250,000 $350,000

Developers $55,400 $55,400 $55,400 $74,000 $74,000 $84,000 $134,000 $134,000 $234,000 $234,000 $234,000 $334,000

Professionals: engineers, technicians, media etc. $30,000 $30,000 $34,000 $70,000 $70,000 $70,000 $99,000 $99,000 $134,000 $134,000 $134,000 $234,000

Subtotal $163,400 $163,400 $167,400 $234,000 $234,000 $274,000 $393,000 $413,000 $618,000 $618,000 $618,000 $918,000

Sales and Marketing Personnel

Marketing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

General and Administrative Personnel

Management & Board $58,823 $58,823 $58,823 $58,823 $54,823 $58,823 $78,823 $78,823 $78,823 $78,823 $78,823 $78,823

Legal $48,823 $48,823 $48,823 $48,823 $48,823 $54,823 $84,823 $84,823 $64,823 $74,823 $74,823 $84,823

Maintenance $6,400 $6,400 $7,300 $7,300 $7,300 $7,300 $7,300 $32,000 $32,000 $32,000 $43,000 $43,000

Subtotal $114,046 $114,046 $114,946 $114,946 $110,946 $120,946 $170,946 $195,646 $175,646 $185,646 $196,646 $206,646

Other Personnel

Name or Title or Group $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0



Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total People 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll $277,446 $277,446 $282,346 $348,946 $344,946 $394,946 $563,946 $608,646 $793,646 $803,646 $814,646 $1,124,646

Appendix

Page 3

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,650,000

Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $687,000

Production Payroll $163,400 $163,400 $167,400 $234,000 $234,000 $274,000 $393,000 $413,000 $618,000 $618,000 $618,000 $918,000

Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $163,400 $163,400 $167,400 $234,000 $234,000 $274,000 $393,000 $413,000 $618,000 $618,000 $618,000 $1,605,000

Gross Margin ($163,400) ($163,400) ($167,400) ($234,000) ($234,000) ($274,000) ($393,000) ($413,000) ($618,000) ($618,000) ($618,000) $45,000

Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2.73%

Operating Expenses

Sales and Marketing Expenses

Sales and Marketing Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Advertising/Promotion $0 $0 $0 $0 $0 $500,000 $100,000 $100,000 $100,000 $100,000 $100,000 $500,000

Other Sales and Marketing

Expenses

$0 $0 $0 $0 $0 $300,000 $100,000 $100,000 $100,000 $100,000 $100,000 $500,000

Total Sales and Marketing

Expenses

$0 $0 $0 $0 $0 $800,000 $200,000 $200,000 $200,000 $200,000 $200,000 $1,000,000

Sales and Marketing % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 60.61%

General and Administrative Expenses

General and Administrative Payroll $114,046 $114,046 $114,946 $114,946 $110,946 $120,946 $170,946 $195,646 $175,646 $185,646 $196,646 $206,646

Marketing/Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $23,000 $23,000 $23,000 $20,000 $20,000 $20,000

Utilities $2,000 $2,000 $3,000 $3,000 $4,000 $4,000 $7,000 $7,000 $7,000 $5,000 $6,000 $6,000

Insurance $10,000 $10,000 $10,000 $15,000 $15,000 $15,000 $30,000 $60,000 $100,000 $100,000 $100,000 $100,000

Payroll Taxes 70% $194,212 $194,212 $197,642 $244,262 $241,462 $276,462 $394,762 $426,052 $555,552 $562,552 $570,252 $787,252

Other General and Administrative

Expenses

$5,000 $3,000 $6,000 $4,000 $4,000 $4,500 $4,600 $4,000 $5,000 $6,000 $6,500 $7,000

Total General and Administrative

Expenses

$342,258 $340,258 $348,588 $398,208 $392,408 $437,908 $630,308 $715,698 $866,198 $879,198 $899,398 $1,126,898

General and Administrative % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 68.30%

Other Expenses:

Other Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Appendix

Page 4

Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Total Operating Expenses $342,258 $340,258 $348,588 $398,208 $392,408 $1,237,908 $830,308 $915,698 $1,066,198 $1,079,198 $1,099,398 $2,126,898

Profit Before Interest and Taxes ($505,658) ($503,658) ($515,988) ($632,208) ($626,408) ($1,511,908) ($1,223,308) ($1,328,698) ($1,684,198) ($1,697,198) ($1,717,398) ($2,081,898)

EBITDA ($505,658) ($503,658) ($515,988) ($632,208) ($626,408) ($1,511,908) ($1,223,308) ($1,328,698) ($1,684,198) ($1,697,198) ($1,717,398) ($2,081,898)

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Income

Other Income Account Name $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Income Account Name $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Other Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Expense

Other Expense Account Name $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Expense Account Name $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Other Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Other Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($505,658) ($503,658) ($515,988) ($632,208) ($626,408) ($1,511,908) ($1,223,308) ($1,328,698) ($1,684,198) ($1,697,198) ($1,717,398) ($2,081,898)

Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -126.18%

Appendix

Page 5

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,650,000

Subtotal Cash from Operations $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,650,000

Additional Cash Received

Non Operating (Other) Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,650,000

Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Expenditures from Operations

Cash Spending $277,446 $277,446 $282,346 $348,946 $344,946 $394,946 $563,946 $608,646 $793,646 $803,646 $814,646 $1,124,646

Bill Payments $0 $7,607 $228,146 $226,460 $235,296 $283,202 $309,312 $1,101,709 $661,385 $725,736 $890,652 $893,859

Subtotal Spent on Operations $277,446 $285,053 $510,492 $575,406 $580,242 $678,148 $873,258 $1,710,355 $1,455,031 $1,529,382 $1,705,298 $2,018,505

Additional Cash Spent

Non Operating (Other) Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Spent $277,446 $285,053 $510,492 $575,406 $580,242 $678,148 $873,258 $1,710,355 $1,455,031 $1,529,382 $1,705,298 $2,018,505

Net Cash Flow ($277,446) ($285,053) ($510,492) ($575,406) ($580,242) ($678,148) ($873,258) ($1,710,355) ($1,455,031) ($1,529,382) ($1,705,298) ($368,505)

Cash Balance $26,722,554 $26,437,501 $25,927,009 $25,351,604 $24,771,361 $24,093,213 $23,219,955 $21,509,600 $20,054,569 $18,525,187 $16,819,889 $16,451,384

Appendix

Page 6

Table: Balance Sheet

Pro Forma Balance Sheet


Assets Starting Balances

Current Assets

Cash $27,000,000 $26,722,554 $26,437,501 $25,927,009 $25,351,604 $24,771,361 $24,093,213 $23,219,955 $21,509,600 $20,054,569 $18,525,187 $16,819,889 $16,451,384

Inventory $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $5,313,000

Other Current Assets $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000

Total Current Assets $39,000,000 $38,722,554 $38,437,501 $37,927,009 $37,351,604 $36,771,361 $36,093,213 $35,219,955 $33,509,600 $32,054,569 $30,525,187 $28,819,889 $27,764,384

Long-term Assets

Long-term Assets $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000

Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-term Assets $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000 $68,000,000

Total Assets $107,000,000 $106,722,554 $106,437,501 $105,927,009 $105,351,604 $104,771,361 $104,093,213 $103,219,955 $101,509,600 $100,054,569 $98,525,187 $96,819,889 $95,764,384

Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Current Liabilities

Accounts Payable $0 $228,212 $446,817 $452,314 $509,116 $555,282 $1,389,042 $1,739,092 $1,357,436 $1,586,603 $1,754,419 $1,766,519 $2,792,913

Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Current Liabilities $0 $228,212 $446,817 $452,314 $509,116 $555,282 $1,389,042 $1,739,092 $1,357,436 $1,586,603 $1,754,419 $1,766,519 $2,792,913

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Liabilities $0 $228,212 $446,817 $452,314 $509,116 $555,282 $1,389,042 $1,739,092 $1,357,436 $1,586,603 $1,754,419 $1,766,519 $2,792,913

Paid-in Capital $120,530,729 $120,530,729 $120,530,729 $120,530,729 $120,530,729 $120,530,729 $120,530,729 $120,530,729 $120,530,729 $120,530,729 $120,530,729 $120,530,729 $120,530,729

Retained Earnings ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729) ($13,530,729)

Earnings $0 ($505,658) ($1,009,316) ($1,525,305) ($2,157,513) ($2,783,921) ($4,295,829) ($5,519,137) ($6,847,836) ($8,532,034) ($10,229,232) ($11,946,630) ($14,028,528)

Total Capital $107,000,000 $106,494,342 $105,990,684 $105,474,695 $104,842,487 $104,216,079 $102,704,171 $101,480,863 $100,152,164 $98,467,966 $96,770,768 $95,053,370 $92,971,472

Total Liabilities and Capital $107,000,000 $106,722,554 $106,437,501 $105,927,009 $105,351,604 $104,771,361 $104,093,213 $103,219,955 $101,509,600 $100,054,569 $98,525,187 $96,819,889 $95,764,384

Net Worth $107,000,000 $106,494,342 $105,990,684 $105,474,695 $104,842,487 $104,216,079 $102,704,171 $101,480,863 $100,152,164 $98,467,966 $96,770,768 $95,053,370 $92,971,472

1

Appendix: Start-up Summary

nr. Description

1.0 Infrastructure

1.1 Facility location Incheon, Republic of Korea

1.1.1 Acquiring land

2.000.000 Euro

1.1.2 Designing architectural concept, developing architectural study and needed documentation

100.000 Euro

1.1.3 Geomehanical and similar examination, urban planning

100.000 Euro

1.1.4 Building facility (12.000 m²) x 1800 euro per square meter (m²)

21.600.000 Euro

1.1.5 Designing and building research facilities (Clean Area,

CleanRoom), 1500 m² x 5000 euro per m² 7.500.000 Euro

1.1.6 Constructing and building research facility utility areas

1.1.6.1 Ventilation system

1.000.000 Euro

1.1.6.2 Clean Utility system

1.000.000 Euro

1.1.6.3 Waste Management system

2.000.000 Euro

1.7 Setting up lab equipment (Nanotechnology division) Miscroscopes (STM Scanning Tunneling Microscop, SEM Scanning Electron Microscope); Interference Lithography System (IL); Scanning Beam (SBIL); UV Lithography, Reactive Ion Etcher, Nanoprober system, nanoprobes, nanowires, nanotubes…

5.000.000 Euro

1.8 Setting up lab equipment (Robotics Division)

5.000.000 Euro

1.9 Setting up lab equipment (Social Development Division)

200.000 Euro

1.10 Computer systems and network for all divisions and locations

1.000.000 Euro

1.11 Setting office spaces 300.000 Euro

TOTAL: 46.800.000 Euro

2

nr. Description

1.2 Facility location Blato/Island of Korčula

1.2.1 Renovation of the mansion in Blato/Korčula:

the third house renovation; reconstruction of a ceiling and a roof, preservation of a stone flooring, installation of solar panels for electricity and heating, water installation. Adaptation of the

second house house to a research facility.

300.000 Euro

1.2.2 Renovation of the agricultural location Petrov Dolac.:

Renovation of an agricultural house (reconstruction of an old roof). Renovation of an agricultural terrain: land clearing and bringing soil. Adaptation of an agricultural house to an institute’s research facility. Bringing up water and electricity (solar panels

and collectors) to the location.

200.000 Euro

1.2.3 Setting the genetics research lab

1.000.000 Euro

1.2.4 Cultivation of the land (other agricultural locations):

1.2.4.1 -Project organization and deployment

50.000 Euro

1.2.4.2 -Plants

30.000 Euro

1.2.4.3 -Agricultural equipment and services

100.000 Euro

1.2.4.4 -Tech equipment (cybernetic vehicles w/ GPS navigation for hard to reach terrains)

300.000 Euro

1.2.4.5 -Workers 1st year

80.000 Euro

1.2.5 Computer systems, software, databases, servers

150.000 Euro


3

nr. Description

1.3 VIRTUAL INFRASTRUCTURE

1.3.1 Application logic and architecture building 1.000.000 Euro

1.3.2 Engine building, testing and implementation 1.000.000 Euro

1.3.3 Graphic modeling

500.000 Euro

1.3.4 Initial HW & SW

250.000

1.3.5 User interface development, testing and implementation

500.000 Euro

1.3.6 Database development

250.000 Euro

1.3.7 Client engine development

250.000 Euro

1.3.8 Server development

500.000 Euro

1.3.9 Administrator interface development

250.000 Euro

1.3.10 Network system infrastructure development

250.000 Euro

1.3.11 Concept design

250.000 Euro

1.3.12 Level design

500.000 Euro

1.3.13 Communication paradigm development

1.3.14 Texture development and detailing

250.000 Euro

1.3.15 Maintenance

250.000 Euro/per

annum

1.3.16 Tech support 200.000 Euro/per

annum

1.3.17 Customer support

150.000 Euro/per

annum

1.3.18 Management 200.000 Euro/per

annum

4

1.3.19 Marketing and sales 1.000.000 Euro/per

annum


nr. Description

2.0 Peopleware

2.1 Scientists/brains Nanotechnology division

2.1.1 Nanotechnology, 1 person 1st year

360.000 Euro/per

annum

2.1.2 Physics, 1 person 1st year

360.000 Euro/per

annum

2.1.3 Molecular biology, 1 person 1st year

360.000 Euro/per

annum

2.1.4 Computer sciences, 1 person 1st year

250.000 Euro/per

annum

2.1.5 Genetics, 1 person 1st year

360.000 Euro/per

annum

2.2 Scientists/brains Robotics division

2.2.1 Robotics, 1 person 1st year

360.000 Euro/per

annum

2.2.2 Neuroinformation science, 1 person 1st year

360.000 Euro/per

annum

2.2.3 Artificial Intelligence, 1 person 1st year

360.000 Euro/per

annum

2.2.4 Bio-computing, 1 person 1st year

360.000 Euro/per

annum

2.2.5 Mathematics, 1 person 1st year

250.000 Euro/per

annum

2.3 Scientists/brains Technology of Social Development division. (Numbers present amount of expense by group of study). The strategy presupposes for this division 3 researchers/brains within the Institute, plus using outsourced

brain network.

5

2.3.1 Social studies

150.000 Euro/per

annum

2.3.1 Linguistics

150.000 Euro/per

annum

2.3.1 Information theory

150.000 Euro/per

annum

2.3.1 Communications

150.000 Euro/per

annum

2.3.1 Philosophy

150.000 Euro/per

annum

2.3.1 Mathematics

150.000 Euro/per

annum

2.3.1 Theoretical biology

150.000 Euro/per

annum

2.3.1 Theoretical physics

150.000 Euro/per

annum

2.4 Engineers

2.4.1 IT Architects

200.000 Euro/per

annum

2.4.1 Interface Engineers

500.000 Euro/per

annum

2.4.1 Electrical Engineers

150.000 Euro/per

annum

2.5 Developers

1.000.000 Euro/per

annum

2.6 Technicians

200.000 Euro/per

annum

2.7 Media professionals

2.7.1 Microwave and transmissions system experts

150.000 Euro/per

annum

2.7.2 camera operators, sound technicians, editors,

150.000 Euro/per

annum

2.7.3 Producers

150.000 Euro/per

annum

2.7.4 Designers

150.000 Euro/per

annum

6

2.7.5 Marketing team

150.000 Euro/per

annum

2.8 Management & Board

2.8.1 Management

550.000 Euro/per

annum

2.8.2 Board of Directors

150.000 Euro/per

annum


nr. Description

3.0 Mediaware

3.1 Sphere projection systems

200.000 Euro

3.2 HD broadcast system, 2 locations

200.000 Euro

3.3 Studio & ENG lights, 2 locations

100.000 Euro

3.4 Haptic system for representation of nanoexperiments,

250.000 Euro

3.5 System for live stream to the internet

100.000 Euro

3.6 Audio: microphones, amplifiers, audio-mix tables, speakers, 2

locations 100.000 Euro

3.7 Video: video-mix table, 8 monitors, 2 recorder/players, video

storage, 2 locations 500.000 Euro

3.8 Digital camera links

100.000 Euro

3.9 Software licenses

50.000 Euro

3.10 Satellite uplink system 120.000 Euro

3.11 Space segment – renting satellite channel 150.000 Euro/per

annum


7

nr. Description

4.0 Legal

4.1 Legal – Corporate matters

150.000 Euro/per

annum

4.2 Legal – Facility matters

250.000 Euro/per

annum

4.3 Legal – Compliment with Korean regulative

350.000 Euro/per

annum

TOTAL: 750.000 Euro/per annum

nr. Description

5.0 Maintenance

5.1 Maintenance - Facility

5.1.1 Utilities 200.000 Euro/per

annum

5.1.2 Network administration and maintenance

250.000 Euro/per

annum

TOTAL: 450.000 Euro/per annum

8

nr. Description

6.0 Other long term assets

6.1 Other facilities and/or equipment

10.000.000 Euro

6.2 Brain capital

10.000.000 Euro



Art & Photos

Institute biz&financ plan Q410