Xsight Product Presentation

Cultural Charter

This is the charter that will drive all of the organizations business strategy and goals. It will enable the employees to understand and articulate what our business is about and what we would like to achieve everyday and the part they play in that process.

Xsight, Inc. Enhanced Experience

Mission: Provide innovative solutions to help our customersmeet their physical fitness goals.

Vision: Create the most effectiveconsumer software fitness company in the world.

Values: Fit. Fun. Fresh.

Objectives: Creating a company that providesconvenient solutions that meet the fitness needs of all people.

Company Promise: Fitness Is For Everyone

Gate 1 Gate 2 Gate 3 Gate 4 Gate 5

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

IdeaScreen Scoping

SecondScreen

BuildBusiness

Case

Go toDevelop

Go toTesting

Go toLaunchDevelop

Testing&

ValidationLaunch

• Discover Business Opportunities• Idea Generation

• Corporate Strategy• Business Overview• Environmental Scan

• Customer Engagement• Product Strategy• Change Acceleration

• Market Research• Financial Analysis (Scenario/Sensitivity)

• Market Engagement Plan

Product Launch Methodology

At X-Sight Inc. we leverage a stagegate process to bring products and services to market. Our team continues to identify new ideas and place them through the idea screen to understand market viability.

The review team is comprised of our executive team and we work on challenging ideas and paradigms to bring forward the most robust solutions that will compliment our offering, and continue to enhance the experiences of our customers.


Global Smartphone MarketThe Xsight system presents an opportunity to penetrate the global smartphone market. Most of the efforts will be focused on the North American market for Initial Launch, with the remaining markets following within the First 5 years of Initial Launch. This is to ensure we leverage and maintain our first-mover advantage where smartphone market critical mass resides.

With the accelerated adoption rates of technology within wearables market, Xsight is able to develop a strong loyalty-based program to ensure user conversions are not lossed.


704.1MM

220MM 279MM

65.5MM

23.9MM

76.4MM

2015 2016 2017 2018 2025

China $255,544India 227,243

Japan$115,209Russia $97,948

North America $255,544

Cumulative Users (millions of users)150MM

Market Potential

A more detailed view of the technology our company is posed to take advantage of to meet customer needs and wants and drive market penetration into a captured market.


1.5%4.7%Huawei Xiaomi

44.5%

5.2%Lenovo Other

12.1%32.1%

Samsung Apple

Worldwide Smartphone Sales by Vendor

poor ok good superior excellent

24 MM users

682 MM users

1900 MM users

1300 MM users

Smart Phone Technology

30%

The Acitivist is an indivuaul that is in high-impact sports and this drives most of their lifestyle choices they are proud of their accomplishments and share insights whenevr they can.

Activist(Cross-fit, Aerobic, MMA, Boxing)

40%

The spiritualist looks at work-life balance and acitivities that are loer impact and present more movement and balance. .

Spiritualist(Tai Chi, Yoga, Martial Arts )

30%

This is a health consious indiviauls either by choice or due to medical situation and are looking at improving their way of life and require guidance and support on acitivities and caloric management

Nutritionist(Running, Jogging, Swimming)

Customer MappingOur Customer profiles are segregated into three sections and provides an equitable distribution of user potential market.


Jamal Magloire (Activists)

Kacem Zoughari (Spiritualist)

Spokespersons:

Market Potential

Steve Mann the father of wearable technology

A) Law of accelerating returns and extrapolates that as it relates to wearable technology March 2015 – 2 signals 25% 0f US market adopt wearable technology

B - Takes Everett Rogers normal distribution and relates it to Simcoe’s smartphone cumulative curve and information from PWC, ABI, Credit Suisse, and postulates that 21% of US market accepts new technology, Feb2015 – 25% of market embrace wearable

We are in a time of the fastest adoption and innovation in history


A

B

Adoption of technology has followed a normal distribution curve for the last 50 years. (Everett Rogers)

But adoption of technology has been accelerating at a rates never seen before in history. In 2012 in the U.S.A adoption rate was 21% projected by 2015 to be 25% (Gonzalo Tudela, CEO - Vandrico

Gardner Hype Cycle we can see the visibility and maturity of technology. Note we are posed for the next eureka moment.


Technology SectorRate of Adoption

The most Connected man in The World, Chris Dancy has leveraged the insights that he gained from his systems to improve interaction with his bodies signals thereby augmenting his lifestyle. The new connected way of life allowed him to lose 100 lbs of weight.


Inspiration & Choice SelectionCu

stom

er R

elat

ions

hip

Goals

Selection

Shortlist

Training

Enjoyment

Assessment

App

TraineeNetwork

Ranking

Comments

Customer Activity Cycle(Selecting a Proper Training Program)

Activity Cycle

The Xsight system helps facilitate the training process. Not only does our solution enable the trainees a variety of certified trainers from a variety of disciplines it also improves adoption and sustained engagement through dynamic interaction with the app itself, trainers and the community.


Kinect

Sight

Wearables

Sight

Sight

Technological Catalysts

Most notable experts in the field of wearables are sighting a convergence that will happen in the future where head-mounted displays(computers on your head), activity monitors (devices that quantify the human body) and smart watches (devices that use glance to convey analytics and information) will all interact with each other to provide a more robust experience.

The future is now as this convergence paradigm is the premise of the Xsight Inc system and its software platform.


Convergence Model

The Xsight system creates a unique approach to sports learning. It aggregates technology through strategic partnerships. The Xsight system creates customized training with some of the worlds leading trainers and intergrates both into a software solution that scales with your development, by tracking, guiding then enhancing your learning by making it personalized and integrating Cognitive, Transformative and Multi-media learning theories.


Software

Guiding

Tracking

Enhancing

Activ8System

InteractiveTech

MotionCapture

Tutorial

CertifiedTrainers

Unique IndividualExperiences (UIEs)

Analytics

Insights

Predictive

Big Data

StrategicPartnerships

Wearables

Head mounted

Wrist

Clothing

Handheld

Ora-X

AndroidiOS

Samsung

Apple

Adidas

The Xsight system is a solution that takes the insight of an instructor or trainer to the next level. It allows you to capture your optimal form in whatever sport through our Kinect system, and then stream it to athletes in real world situations through either your smart device or augment the experience with our Ora-X integration.

Augmented Experience Device(ora-x)

Tethering Device(Samsung, Apple watch,smartphone)

Interaction Device(MS Kinect, Adidas Gear)

Access Key (smartphone)


Product Profile

Product Name:• Xsight - Enhanced Experience

Target Audience:• Amateur sports enthusiasts who are looking to improve their training by augmenting their learning in real-world situations. From the golfer, hunter, fishermen, martial artists...whoever wants to accelerate their muscle memory delivery through augmented reality.

Product Attributes:• Xsight – Software • Glasses – GPS, nightvision, • Watch – Performance tracking app• Kinect – Proprietary virtual

instruction and video capture• Addidas – Intelligent apparel

Product Benefits:• Largest network of certified

trainers within all major sports lifestyle categories

• Leverages existing technology platforms

• Predictive modeling of learning needs

• Community of practitioners to build support and recognition

Xsight Software Platform

The Xsight Software Platform allows users to manage their training through understanding caloric intake and output by measuring heart rate and activity, food consumption, training hours and sleep.


mktngjnky400 1Trainees Ranking

15Years

ZZ

Heart rate (active) : 3 hoursCalories burned: 124 kjCalories target: 324 kj

Calories Consumed: 1300kjCalories burned: 124 kjCalories target: 2000 kjTraining : 1 hoursCalories burned: 124 kjCalories target: 324 kj

Sleep : 8hoursCalories burned: 124 kjCalories target: 324 kj

Leaderboard

The leaderboard component of our Xsight platform allows users to track the progress of their activities versus their goals and that of their peer network.


Trainer Network

Our extensive network of certified trainers cover a wide array of different specialties, from yoga, martial arts, cross-fit to aerobic, we have a professional to meet your training goals. With the ability to have one-to-one sessions it is a easy to understand why many of our trainers are ranked so high by other users.

Take the first step and change your game.


Louis Gialloreto

Bio:

A certified marketing expert, Louis’ kung fu is strong and has moves that can beat any market challenge or obstacle.

Learn the 8 deadly tactics and 3 moves to ensure market dominance today.

Schedule your session.

400 1Trainees Ranking

15Years

Session hours remaining

Trainers NetworkX-

Sigh

t

Experiential Gear

Unique Individual

Experience (UIE)

• Goal Setting• Performance Tracking• Leaderboard• Predictive Modeling


Elements of Offering

Our program begins with the download of the Xsight app. Identify your goals, the system will prescribe best path either :A) A certified trainer B) Choose videos from our

library

Individuals can then customize their routines dependent on their goals and results. The system will always recommend the most optimal path, but choice is in the hands of the user.

They can subscribe to the Unique Individual Experience (UIEs) and the level of wearable integration.

It’s simple…

1. Select activity2. Set goals3. Select training path

Environmental Scan


Opportunities

Strengths Weaknesses

Threats

Inte

rnal

Exte

rnal

AR Industry’s accelerated growth sees unprecedented opportunity AR-enabled mobile apps to reach $2.2 billion by 2016 up from $2 million in 2010

Adoption rates of all things tech occurring at warp speed 35 years to adopt telephone, 13 year PC, 5.5 years for mobile, by end of 2015 25% of USA pop adopt wearable technology = fastest speed history has ever seen

AR and wearable Tech space market exploding = $150 B by 2020 Apple, MS, and Samsung enter space, leaving room for innovator in ecosystem. Of wearable market, North America represents 50%, Europe 255, East Asia 17%, other 8%

Licensing agreements – patent still pending

Brand power – Xsight unknown

Distribution champions leaders essential. OEM, M2M dependent

Uncertainties within AR and wearable space – Big Three platforms building barriers, however open source proves almost too difficult to contain leaving room for innovatorsDisrupters displace new entrants OEM/distributor/ M2M partnership critical. Champions within targets influence adopters Regulations and privacy concerns must be managed, consumer suspicions regarding of Big Data is assessed through value driven solutionsCannibalization within industry threating Ecosystems grown up around Windows, Android or iOS platforms yet developers able to address fragmented environment can stabilize app and software models

An innovation delivering a solution that addresses each of the 5 Factors that influence Tech Adoption Rates: Xsight overlays across all major OS platforms, is simple, multiple entry points basic to enhanced robust use, trainer champions help easy of trial, and extensive on-line infoXsight Technical mastery brings experience solution that has yet to be delivered R&D pipeline robust, furthers use for application underwayAt macro level – Xsight a technologic force

Wireless carriers are increasingly integrating wearable devices within their M2M and loT strategies

Ecosystems products and services grow around the platforms of the Big Three (Apple, MS, Google) however increasingly many are being built at a layer above the OS.

Fragmented forces (i.e.: non-standard tools, apps, and software- licensing models) and proliferating ecosystems threaten expansion as market changes in shape.


Competitors

Price

Features

$180

$130$150

$130

$200

Strategic Partnerships

Our strategic partners will act as a way to engage their captured audiences and in return we provide them value-add that they can present to their Customers to enhance their Customers or their own personal brands.


Level of User Integration Scalability

The Xsight System is the ultimate lifecycle platform it scales based on the needs and appetite for change of the user.

This ensures the sustainability of the system and the predictive system allows the user to gain recommendation points on other activities the trainee may be suited for based on the movement and form data of the user.

Xsight, Inc. Enhanced Experience Price

Features

Level ILevel II

Level III

Level IV

• Sight download• Smartphone/watch

• Accessing Training network

• Smartphone/watch

• Unique Individual Experiences (UIEs)• MS Kinect• Adidas

iWear

• Wearable integration • Ora-X

Goto Market Strategy

Our goto market strategy will be very deliberate in capturing the attention and engagement of opinion leaders then leveraging their commitment to become brand ambassadors.

At launch we will use guerilla tactics to improve opportunity of earned media and create market engagement in key markets.

Once critical mass is achieved a more formal integrated marketing plan will be maintained.


Opinion Leaders

Early Adopters

Late Adopters

Early Majority

Late Majority Resistors

Intro

duct

ion

Grow

th

Mat

urity

Decli

ne

Deve

lopm

ent

Sale

s Rev

enue

0+

Guerilla MarketingSocial

Engaging Opinion LeadersPublic Relations

Experiential MarketingLoyalty Management

A Brand Activation is the ability for our brand to create an emotional and lasting engagement with our customers.

Our people and the experience that we present to the marketplace through our solution will be paramount to our success.

As we move into the diffusion of our solution into the market our customers that enjoy our experience will be catalyst of our brand as word of mouth, social and guerilla marketing will be much of our tactics through the first phase of our launch.

vX-Sight Inc.

Brand Activation StrategyXsight, Inc. Enhanced Experience

Motion Capture dB

Motion capture videos allow users to capture their form and manage their progress with training support so that it works with the natural movement of their body mechanics versus the forms standard.

This 3D data that is being captured can be overplayed within different demographics and activities to assist organizations understand how to deliver more effective equipment to assist practitioners performance.



Market Potential_FY1

Sensitivity Analysis


“This is a billion dollar idea.”

-Greg LeachFormer ChannelManager, XBox


Monetization needs to be dynamic and diversified at inception with a transparent approach to pricing that will adapt based on success and market demand. We will leverage a ranking system to gauge the most appropriate way to engage our key target audiences and adapt our revenue model accordingly.


$

XX,XXX.xx $

XX,XXX.xx $

XX,XXX.xx $

XX,XXX.xx $

Marketing Research

eCPM

Training Network

Device Commission

App Download

Revenue Ranking

15/30like it.

Diffusion Projection

Facebook leveraged to undersatnd successful.

32%

16%23%

29%

Breakdown RevenueHere are the categories of revenue which contribute to Xsights top line sales.

Appendix


Yoga / Pilates profile/ Spiritualist - Increased flexibility- Reduce stress andtension- Increase mental stabilityand concentration- Metabolic healthBenefits- Martial arts

Golfer - Golf population in the US29,000,000- Comprise approx.. 9.6% ofthe population- 77.5% are male 22.55% arefemale- Avg. age is 46- 50% are employed in whitecollar- 90%use the internet on aregular basis- Avg. household income $95,000- 75% own a computer- Competitive advantage- Active low impact exercise

Peak Performers - Athletes with levels offitness specific totheir sport- Psychological strongcompetitors- Athletes that cancompete underpressure- Athletes with sound musculoskeletalsystem and structure

Market Opportunity

5 Forces Model

Rivalry

BUYER POWER

SUPPLIER POWER

THREAT OF SUBSITUTES

POTENTIAL ENTRANTS

• Strong• Offering unique – for

now – could be supplier dominator and even disruptor

• Transitioning suppliers feeding ecosystem

• Switching supplier costs = high –could loose valuable lead time to capture impending AR tech boom

• Buyer switching costs = high - dependent on $ spent on AR item and adoption driven by trainer preferences

• Buyer propensity to substitute = high if no value seen

• Product differentiation = decreasing as AR tech advancing

• Low threats – currently, could become high if similar solution created or low if adoption low

• High barriers = splash entry only leads to success if product moves from awareness to adoption

• Patents, licensing, partnerships help protect walls

Competitive rivalry high = marketers strive to deliver the next technology disruptor. $20B will be pocketed by OEM device shipment revenues by end 2015. Wearable devices will help drive wireless carries drive over $71 Billion in additional service revenue by end of 2020

Industry Analysis

AR (augmented reality) applications as revenue is forecast to be $2,2 billion by 2020. The Big Three platform developers (Apple, Microsoft, and Google) jostle for positioning awaiting the “next big game changer” which will highlight where the market is going.

As VR (Virtual Reality) and AR threaten to converge to bring the best of both experiences to users, AR will gain edge over not just VR but over entire smartphone and tablet market. Winners will be the cohesive forces which keep the ecosystem together rather than allowing it to fragment .

Until the ultimate AR solution and experience for the consumer is delivered – until then it’s game on!


PESTEL Analysis

Political factors: Evolving, inconsistent across the globe

Economic factors: AR app market - developed low cost offshore

Social FactorsInfancy Aging population a driver for other applications

Augmented Reality adoption rate 21% 2014, 25% 2015, expected to be at 50% within two years

AR-enabled mobile apps to reach $2.2 billion by 2016 up from $2 million in 2010

Privacy still remains game as litigation dominates space

AR-enabled mobile apps to reach $2.2 billion by 2016 up from $2 million in 2010


The wearable applications ecosystem will account for nearly $850 Million in revenue by the end of 2015. Driven by ongoing innovation and crowdfunding campaigns, SNS Research estimates that investors are expected to pour over $700 Million into wearable company startups in 2014

The market is ripe for acquisitions of pure-play wearable technology startups, as competition heats up between consumer and vertical centric OEMs. Nearly 50% of all wearable devices shipped in 2020 will support embedded cellular connectivity. This represents a $1.1 Billion opportunity for wireless chipset suppliers

Augmented Reality MarketXsight, Inc. Enhanced Experience

M2M (Machine to Machine), Lot & Wearable devices are expected to help bring in $116 Billion in network connectivity revenue by the end of 2020. Following a CAGR of over 40% between 2015 and 2020

As consumer voice and data service revenues reach saturation point, wireless carriers are keen to capitalize on other avenues to drive revenue growth. One such opportunity is providing network connectivity for M2M devices like smart meters, connected cars, healthcare monitors, and digital signage.

Further opportunities is in monetization of wearable technology. To offset declining markets in traditional mobile devices OEMs are aggressively investing in wearable devices.

Research Trends Report May 28, 2015


A more detailed view of the technology our company is posed to take advantage of to meet customer needs and wants and drive market penetration into a captured market.

Monetization – Our revenue strategy will be a mixed model. Based on research on a combination of advertising and subscription would work best, with subscription being the most effective.


•In-App Purchases• Hardware• Membership fees• Customized training•Paywalls

•Sponsorship Advertising

Software/AppRevenue Options:

•Freemium • In-App Advertising• Gated Features•In-App Advertising•Paid App

SMART GLASSES SALES TO SURPASS SMART PHONES SALES WITHIN TEN YEARS ACCORDING TO REPORT FROM AUGMENTEDREALITY.ORG

“The Smart Glasses segment is at the core of the next big computing wave which is about to explode; whether you are an investor, a hardware manufacturer, a startup, or a software developer you have a 12 months window to establish a strategy or risk missing the opportunity,” explained Ori Inbar, author of the report.

IMPLICATIONS FOR INTERNET AND THOSE WITHIN THE ECOSYSTEM 4.5NB Smartphone subscriptions by end of 2018

60% Mobile video traffic growth rate through 2018

12X Growth of mobile date traffic between 2012 and 2018

60% Percent of world’s population covered by LTE by 2018

2X Increase in mobile data traffic between Q1 2012 and Q1 2013


AUGMENTED REALITY SMART GLASSES ADOPTION PHASES


ROBUST SOFTWARE ECOSYSTEM

Doors Open To Innovation

•iOS and Android•Millions of experienced developers

OPEN STANDARDS

LOW COMPONENT COSTS•Connectivity for $2-$10•Low entry costs

•Wi-Fi•Bluetooth•NFC•Many CPU options•Multiple embedded RTOS

What Is Driving Growth And Adoption?


Hardware/Component Innovation

Software Ecosystem

New Business Models

Retail And Internet Impact

M2M (Machine to Machine), Lot & Wearable devices expected to help bring in $116 Billion in network connectivity revenue by the end of 2020. Following a CAGR of over 40% between 2015 and 2020

As consumer voice and data service revenues reach saturation point, wireless carriers are keen to capitalize on other avenues to drive revenue growth. One such opportunity is providing network connectivity for M2M devices like smart meters, connected cars, healthcare monitors, and digital signage.

Further opportunities is in monetization of wearable technology. To offset decline markets in traditional mobile devices OEMs are aggressively investing in wearable devices.

Research Trends Report May 28, 2015

Wearables Products Sold Estimated To Grow 366% By 2017

$1.2T In new opportunities from the internet

10 X Increase in the number of wearable devices over next 3-4 years

30B Wireless connected devices by 2020

4.5NB Smartphone subscriptions by end of 2018






Expected Market Acceleration

Wearables Products Sold Estimated To Grow 366% By 2017

$1.2T In new opportunities from the internet

10 X Increase in the number of wearable devices over next 3-4 years

30B Wireless connected devices by 2020

4.5NB Smartphone subscriptions by end of 2018






Expected Market Acceleration

THINGSPEOPLEPLACES

50BTHINGS

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Billi

ons

2000 20202010

1BPLACESconnecte

d

5BPEOPLEconnecte

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01900 1990Source: Ericsson Mobility Report, “On The Pulse Of The Networked Society,” June 2013


The next market disruptor will cross - platforms, smartphones, tablets

offering the best features of Virtual and Augmented RealityIndustry Rivalry – The Big Three platform developers (Apple, Microsoft, and Google) jostle for positioning waiting for the “next big game changer” which will clarify as to where the market and technology is going.

A disrupter who, by 2020, solves the gaps of VR (Virtual Reality) and AR (Augmented Reality) and offers the best of both experiences to users. It could not only capitalize on the $150 billion market - it could conceivably threaten the entire smartphone and tablet market industry.

Growth within the M2M (business to business) and Ecosystems (collections of products, services and companies that grow up around a particular item and feedback to it) brings innovative firms into market at stunning rate as barriers to entry low and still evolving.


What’s exciting about the wearable opportunity is:• The open development

opportunity• Connected and unobtrusive• Always-on• Consumers seeking

constant feedback• Greater need to be engaged• Shift towards experience –

real experiences growing

2013 Broadcom Corporation

Devices & Hardware

Xsight Product Presentation