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HolosOne

EXECUTIVE SUMMARY 2012


The Company HolosOne is a startup company that aims to provide high-tech applications, games and services for mobile device users in the growing global market. Until recently, having a smartphone or a tablet computer was only a matter of trend and prestige. Now those devices have become an integral part in the life of almost every human being and soon they will completely replace conventional ones. Mobile technology is becoming dominant compared to standard desktop devices and the mobile world opens many opportunities for users and companies. Mobile is the biggest revolution in modern technological history and HolosOne will play an active role in it.

Our mission To emerge as a strong and creative provider of mobile apps, games and services by commercializing our production pipeline and breakthrough know-how in the global market. To build a profitable and selfsustaining organization that will be a desirable business acquisition for venture capitalists and established industry players.


Key elements Our value proposition for our partners and customers is based on two key elements:

STRONG, adaptable and sustainable

know-how that will ensure our gradual expansion and steady growth.

The CREATION of simple, compelling and high quality games and applications, with great design, flawless gameplay and optimized code.


Market characteristics & Opportunity The iOS mobile applications market is characterized by rapid growth with many opportunities for new development projects and platforms. It is a global market with more than 150 million iPhone users and growing. It is projected that in 2012 this market will be worth 17.5 billion U.S. dollars (in 2009 it had a value of $7 billion) and that by 2014 an additional 200 million smartphones (iPhone share of 55%) will be sold, along with 155 million iPad tablets. Apple CFO Peter Oppenheimer recently revealed 315 million cumulative iOS device sales. Scott Forstall, senior vice president of IOS software, in one of his latest reports pointed out that each month users download more than 1 billion applications and that by now the total number of downloaded apps has exceeded 25 billion. In this process Apple has paid more than $4 billion to app developers cumulatively. By 2013 Americans alone will have bought $4.2 billion worth of mobile apps, according to a Yankee Group report.

Apple's App Store has 598,154 applications (150,000 are iPad apps) and there are 128,242 active app developers. By creating this revolutionary market display, Apple has done a remarkable job in order to facilitate and simplify the sale of mobile applications. What also makes the App Store a special and unique market shop window is the fact that the product is available to customers 24 hours a day, every day of the year, which gives the possibility of continuously generating revenue and profits. The app market is literally the fastest growing industry in history, with no signs of slowing down. From all of the information and facts above, it is clear that there is a timely window of opportunity for investing in this industry which is extremely attractive in growth, potential and size. This is the era when everyone has access to everything, everywhere, at every time – this is the era of the mobile technology generation.


Apple market $150 million iPhone users and growing

2009

2012

$7 billion

$17.5 billion

$4 billion

market worth in 2009 (U.S. dollars)

market worth in 2012 (U.S. dollars)

Apple paid to app developers


Present Status BUSINESS CONCEPT STAGE: From Idea to Opportunity Official implementation of the idea for launching the app startup began in early October 2011 when we started a proactive search for opportunities in the market. At that time we also started our business plan development. It was a challenging task that required great focus and determination, and we, as entrepreneurs, did it successfully. In this industry it is particularly important to place emphasis on networking and that's exactly what we started doing in early 2012. We hooked up with top consultants who work for American and German companies as software engineers and developers. Their advices and suggestions helped us in that concept stage to create initial strategy, especially regarding organization building. Afterwords we began our pursuit for human resources in which we have invested considerable effort. People are key to any business and for this reason the search was thorough and intensive.

We've organized several competitions and interviews in which we profiled the best talents that our environment has to offer at this point. We can proudly say that we've assembled a creative, talented and ambitious team which consists not only of full time HolosOne members, but also of top industry consultants. Building a strong organization is a continuous process that occurs throughout all stages of company's development and growth, and for that reason it is important to keep on reviewing and testing human potentials and skills, which is exactly what we're doing and will continue to do.

BUSINESS PREPRODUCTION STAGE We founded our company in the beginning of March 2012, and from that point on our actions were focused in ensuring the right infrastructure, and basic technology and equipment. Setting an optimal productivity level for our team requires an adequate working space. Today we are situated in a quality office that has everything we need to create great apps and that allows us to work on our projects with steady enthusiasm. From mid April 2012 we've been working persistently on our app and game concepts which we now have quite a number of. When you are focused on your customer, it is inevitable that you challenge every possible assumption to ensure that you have a minimum viable product. This process is very intense and important, so we did quite a few significant pivots, implementing Lean Startup Methodology.


We continued our networking and attended multiple small scale IT industry events and one major startup conference where we expanded our base of contacts. We also received professional confirmation that we are on the right track with our startup vision. After diligent work we have created the the design, information architecture and source code documentation for our app's alpha phase. We also made sure to create concepts and custom art for our future developments.

In terms of business development, we have two stages in front of us – Zero Stage to Early Growth and Later Stages of Growth, which are discussed in chapter called Future Growth & Development.

Throughout that period we continued validating and refining our business plan and strategy.

Business Concept Stage Business Preproduction Stage

Most importantly, we've tested our team from a business, and every other standpoint, and came out even stronger from that process as an organization. We are forming our pipeline and creating a solid foundation for powerful know-how. These are two key elements which, we believe, will represent our biggest strength and value and will be the engine of HolosOne's future growth. We always knew WHY we do what we do. Today, we know HOW we are going to do it.

Zero Stage to Early Growth Later Stages of Growth


HolosOne Team The quest for a winning team is a demanding and hard process, especially when you set high and strict criteria, in an environment where there is an evident lack of competent experts that can adapt to a dynamic startup workflow. Therefore, we decided to do it a little differently. Our main goal was to put together a team that has potential to become the foundation of the selfsustaining organization that HolosOne intends to become. First we established tight connections with industry experts and consultants who have years of experience iOS and Mac software developers, 2D and 3D artists, and game designers. . Today we have a consultant in each key development category. After profiling a group of more than 150 people, we assembled our core team members – a game designer and sound producer, an iOS developer, a 3D artist, and a 2D artist. Each member of the team has his own mentor and that is the special component that makes this startup so unique even in this early stage of the game.

In this way we are demonstrating our commitment for building a strong talent incubator and a self-sustaining organization. We want HolosOne to become the number one destination for young talents on their way to growing into full experts in their fields. As components of our production pipeline they will add significant value to our company and our business as well.


Entrepreneurial experience, strong leadership and management, high-level industrial expertise and a clear vision to build a self-sustaining organization are the cornerstone for our future success.


HolosOne Operations When we talk about how HolosOne conducts its operations, the manner in which we deliver our projects and products to market and our unique production capabilities, it is important to say that we as a company, after intense operational testing, are committed to the Lean Startup Methodology. “Lean Startup" is a term coined and trademarked by Eric Ries, an engineer and entrepreneur. His inspiration was the lean manufacturing process, fine-tuned in Japanese factories decades ago and focused on eliminating any work or investment that doesn’t produce value for customers. This method advocates creation of rapid prototypes that test market assumptions, and uses customer feedback in an effort to evolve the design faster than more traditional product development practices. In this method, it is not uncommon to re-code certain segments, or even entire parts of an app multiple times, often using a practice called continuous deployment. Lean Startup is sometimes described as Lean Thinking applied to the entrepreneurial process. A central tenet of Lean Thinking is to reduce waste. Lean Startup processes reduce waste by increasing the frequency of contact with real customers, therefore testing and avoiding incorrect market assumptions as early as possible.

So how does an idea go from being just a random thought to a fully-designed and complete product – an app or a game? The specific HolosOne modus operandi is one of the representing factors of our uniqueness. How highquality elements merge effectively to make a project come alive is achieved through the following process:

01 Concept The genesis of all apps and games, as well as other products, is a simple concept or idea. The concepts can be original, which means they are derived from a source within the company, or they can be an upgrade to existing ideas and concepts. Ideas and concepts are subjected to a series of brainstorming sessions. After that, the concept is chosen as an official project.

02 Pre-Production This is where the team works on writing the storyline, creating storyboards and putting together a comprehensive design document detailing the game's goals, level designs, gameplay mechanics and overall blueprint. In case of building an app, the design document only encompasses the latter, obviously. • The first step is setting a story concept. This is a very important process, as it defines the main characters, plot, setting and overall theme. This step is usually skipped in the case of creating an application. • The next step our team executes is a visual representation of the project's theme and the elements contained within. • The third prominent aspect of this phase, which is generally done alongside the writing of the story, is piecing together a comprehensive design document. The design document incorporates an overall blueprint for exactly how the game should be played, or the app should be used, and what each menu or screen will look like. In case of a game it also contains character controls, game goals and rules, and general level designs.


• The sound designer works on collecting a library of sounds guided by the design document. These sounds will be used to create sound effects to breathe life into the game or application. The team takes into consideration the technical limitations of the platform and what standards Apple has set in order to get the product released.

03 Production After the pre-production phase is complete and the overall blueprint has been finalized, the development of the project enters the production phase. Here, the HolosOne management is making sure everyone is working together and that everyone's on the same page. The main goal is to create schedules for the team and to make certain these are adhered to, while also ensuring that the high-concept goals of the design are followed throughout the development.

Conclusion

Whilst the design document is typically completed by this phase, the game designer still plays an important role here, as it's his job to make sure that details of the designs are being properly implemented by the artists and the programmers. If there are holes in the design, they must be addressed with the solutions or/and new designs. • The artists, during the production phase, work on building all of the animations, models and textures. • At this time, the programming gurus are working on coding the game's or app's mechanics. Programmers write the logic that makes the characters and objects act as specified by the design document. • The sound designer works on creating and manipulating sound effects to suit the game/app, while musical tracks are also being conceived and eventually completed. • The storyline and script are more or less completed here by the writing department. The writers make sure the progression through the game feels coherent and meaningful for the player.

Once all of the base elements have been implemented, the team works on optimizing all the aspects of the product to get it to run well.

04 Post-Production This is the final stage of development and it begins when the project is considered feature complete – all of the code has been written and art has been completed. This is when an alpha version of the project is created and is supplied to the test department to find bugs and flaws in the product that need to be removed. Once all of the major bugs and flaws have been identified and addressed, a beta version is produced and once again sent to testers and select customers. This is where hardcore testing is done. We also make sure that the project abides by all of the standards that are determined by Apple that must be followed in order for the app/game to be approved for release. Once all of the bugs have been fixed and all of the standards met, a final version of the game/app is made.

As followers of the Lean Startup Methodology, we place special emphasis on the concept of the Pivot – the idea that successful startups change directions but stay grounded in what they've learned. They keep one foot in the past and place one foot in a new possible future. Over time, this pivoting may lead us far afield from our original vision, but if you look carefully you'll be able to detect common threads that link each of HolosOne iteration together.


Future Growth & Development In our business concept stage we were proactively searching for ideas, attending networking meetings, filtering opportunities, developing, validating and refining our business plan, hiring industry consultants, profiling human potentials and so on. In the preproduction stage we founded our company, started building our team, and ensured basic infrastructure, necessary equipment, office space and utilities. We also attended networking meetings and conference and expanded our contacts network. Other than the above, we created multiple mock-ups and documents for our major app project, as well as concepts for other apps. We are readying our products for the market and positioning our company in the local environment. So what are our plans for the future? First of all, from the business standpoint, we want to take our company to the Early Growth Stage and after that, to Later Stages of Growth. Our strategy is simple yet challenging and it has two key elements – INTERNAL and EXTERNAL growth plan.

Internal growth plan is based on: • Going ahead with our incubator for young and emerging talents • Agile product development • Conducting bold R&D based on lean methodology • Applying our marketing & PR strategy • Conducting precise metrics and analytics • Reliable customer support and regular product maintenance and upgrades

External growth plan refers to: • Creation of strategic alliances and partnerships with established industry players and studios • In Later Stages, business acquisitions and/or mergers

We want to go from zero stage to early growth with one capital project ready for the final development phase, and with our series of simple apps applied and displayed on the Apple App Store. Whether our business model is to pursue and find that one diamond app that will provide financial success and ensure us a strong market position, or the accumulation of value through a whole series of mobile applications, one thing is certain – a startup cannot do this without a solid know-how and production pipeline foundation. We have been working persistently on these key components throughout our concept and preproduction business stages and have already made significant progress in that regard. We are committed to implementing both complementary strategies – creating our diamond app and at the same time accumulating value through series of applications.


Final Words We are very satisfied that, after diligent and hard work during the past 3 months, the first two business stages are behind HolosOne organization. We are confident about the future and are looking forward to it. The market confirmed that we are on the right track with our main app project and we will continue the development and preparations for the App Store. Also, our app series is progressing well and we are closer every day in capturing our place in this extremely competitive market. We feel very enthusiastic going forward and we believe that HolosOne will emerge as a strong provider of mobile apps, games and services by commercializing our breakthrough know-how, and that we will build a profitable and self-sustaining organization that will be a desirable business acquisition for industry players and VC.

Jerko Latković Chief Executive Officer


HolosOne

www.holosone.com


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