QUIKIEHOME INDUSTRIES RED HERRING

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UNIQUE OPPORTUNITYTO CAPTURE THE CONSTRUCTION INDUSTRY “QUIKIEHOME INDUSTRIES, INC. (“QUIKIEHOME.COM)

PREPARED BY EMERGING GROWTH INSTITUTE

BOX 779 PLYMOUTH, FL 32768-0779 (407) 880-7919 QUIKIEHOME@GMAIL.COM FLOODVICTIMHELP@GMAIL.COm CONFIDENTIAL AND NDA REQUIRED Number 14 of 40 restricted documents GENERALIZED AUDIENCE IDENTIFIED The key areas for the product are linked to existing and new technology for “next generation” construction as an alternative to conventional “stick built” residential and commercial structures. Although this “cutting edge” technology produces residential and commercial structures using portable automated equipment and has not as yet penetrated sources for purchase such as FEMA, HUD, and disaster relief agencies as a short term solution to replacement housing of disaster victims or as a permanent alternative to rebuilding after a disaster, FEMA already employed the services of a highly credentialed consultant after the 2008 “Ike” incident who generated an exceptionally detailed appraisal report praising the technology. With the substantial damage in six states during 2012 due to “Superstorm Sandy” and associated wind and flooding results, the opportunity to capture both the built-in market of storm damaged structures and to position the technology as a “fix” for destroyed housing and as a non-disaster-related profitable means of construction is now available. THIS IS FOR INFORMATION PURPOSES ONLY-NOT AN OFFER TO INVEST

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EXECUTIVE SUMMARY “QUIKIEHOME INDUSTRIES, INC.” has created a modified structural construction method using a transportable platform called the “QUIKIEHOME-MAKER” (QHM). Unlike conventional construction utilizing wood or metal supports covered with some manner of facing, (QH) combines aromatic copolymer with steel supports and exterior facings of steel mesh assembled into structural wall components producing complete homes or commercial buildings “on-site”. Assembly to the foundation after removal of a damaged structure is easily accomplished with unskilled labor linking the produced sections to complete the structure. The repetitive nature of the automated production allows for a commonality of sections and easy linking into a completed structural shell. Application of finishing, wall and floor treatments, and cosmetic aspects allows for variations to meet a variety of choices. The construction time to produce a (QH) structure is surprisingly short. The result of approximately 14 days assembly labor is a complete shell for a 1500 square foot residence. During that construction time period the system continues to produce additional sections for 5 more homes, making it extremely suitable for mass production of development housing. The portability of the (QHM) allows immediate repositioning at the next production site. Compared to the components required to produce a “stick built” structure there are obvious advantages. (QH) does not require a range of dissimilar materials from different suppliers with the associated cost fluctuations, transport costs, and labor intensive aspects. Nor does it require a skilled labor force, and even offers those dispossessed an opportunity for revenue when acting as labor. The simplicity of assembly and profitability offers very specific advantages: • • • • • • • • • •

Standardized components produced automatically Resistant to water, fire, infestation, and projectiles Predictable cost of production Simplicity of erection with unskilled labor Speed of completion Built-in cosmetic aspects Transportable “on-site” ability Substantial lowering of internal heating and cooling costs Use of existing foundation after structure removal Ease of finished design cosmetic changes

“QUIKIEHOME INDUSTRIES, INC.”. is essentially an awareness and marketing concept apart from the actual construction activity. Its symbiotic relationship with the public entity that developed the production technology for production of the automated structural component wall sections has allowed (QH) to begin

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establishing a recognizable brand apart from the actual production of the residential or commercial models. The continuing opportunity to establish licensed operators for both use of the automated (QHM) system and their own marketing of (QH) components and completed structures worldwide provides a unique revenue potential. The pending acquisition of a substantial share in “QHI”. by the public entity confirms their perception of (QHI) as a long-term expanding growth capital enterprise with immediate and predictable cash flow potential. Coupled with the unfortunate effect of “Mother Nature” on Louisiana, Mississippi, Alabama, Alaska, New York, and New Jersey “QHI”. is being positioned to develop substantial interest in its technology and to act as a gateway for harnessing the housing destruction to develop substantial and immediate purchase potential for its branded components. FINANCIAL POSTURE The public entity currently provides a $60,000USD annual revenue stream to underwrite “QHI” beneficial awareness activities. Upon exercising the pending acquisition of a partial share by the public entity, “QHI” derives a substantial security ownership in that entity. “QHI” is debt free. The success of the awareness activities it performs which result in sales of the (QH) branded structures provides it with a contractually guaranteed revenue stream. A Master Agreement has been established which allows the licensing of individuals and specific territories for sales and marketing of the structures. It also allows for licensing builders and contractors to utilize (QHI) produced components in their own construction efforts. This also allows for expansion into international licensing and distribution. The growing interest in the (QHI) concept and continuing exposure in the media and through word of mouth has created an opportunity for participation requiring the development of specific financing-related plans. Three such financial plans have been established to allow for: • individual “co-venturers” of individual sales, • grouping of pre-sold sales units, and • overall credit line financing. Under the first two plans the cost of construction components of a sold unit is returned to the individual or group “co-venturer”. The “co-venturers” finance one or groups of sold “QHI” units and those “co-venturers” derive a specific revenue share from profits. When a typical sold unit is priced at $50,000USD with a production cost of $40,000, the “Co-venturers” fully retain 30% of the earned income. Customer payment of damaged structures covered by FEMA, HUD, and insurance carriers easily covers the minimal cost of a structure compared to the previous

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structure cost. Purchasers of “QHI” units for individual use or as part of a development offer a similar benefit to the “co-venturers” who derive a percentage for financing until final payment and delivery to the customer is complete. This enables general marketing and promotion apart from reliance on individual order schedules. With the expense profile for filling orders limited to the exact repetitive component costs of production associated with the “QHM” portable factory, the unique opportunity for “co-venturers” to reap the harvest of predictable profits from product sales markups and construction of additional “QH” and “QHM” units for use by licensees or for export in opening additional markets represents a unique opportunity. Overall credit line financing” is in negotiation with Bibby Financial, a major lender who has established guidelines which would fund Company operations to produce groups of 50 “QH” units once the initial unit for each group is funded. The amount used from the credit line is repaid with interest and the principal is repaid in full. This is a preliminary discussion and other resources are also in discussion. MARKET EVALUATION COMPLETED With two models built in Texas, and the fully proven ability to withstand “Mother Nature’s wrath, remaining intact while other structures were totally destroyed during Hurricane “Ike”, market studies have clearly identified the specific population segments of the potential audience in addition to those developed from the current flooding and damage in six states. The demographic of those who would find a “QHI” structure suitable ranges from those solely motivated to seek a structure that would resist damage to those who are either cost motivated, seek a more “green” structure, or those that recognize the cost-effective aspects of the structure concept. The built-in advantage of the wall construction components provides substantial insulation and a resulting lower energy cost. Available options such as solar panels, hydroponic gardening, LED lighting, and reflective window surfacing increase the efficiency rating. The speed of construction and limited “up front” cost makes “QH” unique. Lest it be assumed that a “QH” structure appears different than “stick built”, from a cosmetic perspective, the construction has the look of conventional housing. Exterior walls can be covered with veneers of brick, siding, wood, or stucco treatments just as with conventional exteriors. Interior floors of wood, carpet, or epoxy, and wall treatments with paneling, sheetrock, or paint are easily applied. After construction, a “QH” structure appears no different than other construction. MEDIA AWARENESS Media awareness as an alternative to advertising represents a strong potential of exposing the “QH” concept. The foundation for media awareness has been successfully put in place using typical media relations briefing materials. First

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quarter 2013 schedules call for an aggressive delivery of print, video, audio, and other medium support to continue awareness of the “QH” brand. With suitable budgeting, and making available materials which support the needs of media (scripts, video, technical details) the ability to encourage print, radio, and television coverage to expose the unique aspects of the “QH” brand should intrigue reporters from both a technical and consumer perspective. “QHI” brand and product awareness within the construction industry and regulatory universe, in addition to means of penetrating defined market segments have been evaluated and incorporated into an overall strategy and Marketing Plan. Establishing a suitable presence has been developed, evaluated, and tested with a high degree of correlation to support it would generate the expected result in support of product introduction throughout the 50 states. With the medium of the Internet, and the impact of social media, international awareness has been simplified. The creation and distribution of test news releases confirms the “QH” technology aspects are attractive. While publications that specialize in content for those who are in the construction industry defined, they can be expected to generate editorial announcements and coverage. The limited numbers of mainstream publications that reach substantially larger general audiences of those who are considering both residential and commercial building regularly produce content reflecting developments in the industry. Technical aspects of the “QH” concept can be expected to also encourage licensing interest and further expand the potential for expansion as an export product both for the “QHM” units and for pre-produced “QH” sections in the U.S. and abroad. EXPOSURE THROUGH DEMONSTRATION In addition to an extensive availability on the Internet of promotional content, having “real time” ability to inspect the “QH” product is deemed critical to the overall marketing approach. Builders typically establish such centers and “QHI” believes that approach provides serious advantages when linked to either purchased raw land, planning general development of multiple “QH” units, and continuing brand awareness. “QHI” has sought to identify key factors which would encourage the purchase of a “QH” home linked to approval to act as a “magnet” for media and potential purchaser interest. Research suggests that those seeking a “starter” home are prime prospects provided their credit standing is sufficient for purchase. The lower cost factor of a “QH” home is viewed as enabling less restrictive credit needs. A second prime group is those who hold existing raw land, plot specific housing sites, or purchased as a second home but failed to complete construction due to costs or other factors. “QHI” has entered into discussions with several individuals who have current need for housing as a means of establishing a “footprint” in Florida. With the state reputation for attracting retirees, the inexpensive “QH” structure offers a unique appeal unmatched by conventional construction costs.

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A soon to be married Florida couple is already seeking an existing plot upon which to have “QHI” construct a model in Orlando. A Washington, D.C. couple with a long term holding of existing home sites in Ocala is reviewing a move into a “QH” home to be constructed there to enjoy the alternate of Florida living. The lack of activity in the construction industry and the uncertain future for construction resulting from a “soft” economy is viewed as an exceptional target for “QHI” in general. The “QHI” marketing plan is based upon a 3-prong approach with display and sale by existing purveyors of construction supplies for those in the industry, and establishment of new outlets among building firms representing the third “prong”. This portion of the plan is to encourage those with high disposable income to finance specific areas or regions. This follows exactly the same methods that have formed and continue to support fast food, mass marketing retailers, and mall operators. It also allows for “grass roots” development of agents who display “QH” models, promote the alternative construction and cost factors, and encourage a steady stream of potential purchasers. Alliances with those that now offer support for contractors and builders who could convert to using “QH” sections and have a substantial customer base. Independent sales through “non dealer” conduits and creating “linkages” with home improvement and home assembled furnishings also are likely to provide continuing awareness for the “next generation” of building components. EASE OF DISPLAY Encouraging interest in the “QH” concept can easily be accomplished using informational materials. As the “QH” is essentially a structure intended to be finished by the purchaser, encouragement of ownership is expected to be implemented using promotional postures. “QHI” fully expects to provide a suitable point of purchase full color display unit similar to those used in movie theaters when “four walling” upcoming films that will enable those not directly involved in construction to act as interest developers and initial order takers. Harnessing shopping malls equipped with such a display allows exposure to vast numbers of potential purchasers provided the design of the kiosk or other means of generating awareness is suitable. Home presentations, party plans, and other “grass roots” activity also allows for the establishment of so called “MLM” marketing since those involved are independent contractors and their benefits from results are predictable. Alliances with home improvement retailers and outlets specializing in “home assembled” furniture linked to “QH” purchasers also is expected to develop vested interest “partners”

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Those who choose to complete the shell using their own or purchased assistance and incorporate an interior “package” also suggest the need for a standardized display unit. The key to establishing a brand has always been constant and varied encouragement of interest. Although an Internet web site can capture traffic if planned correctly, the need to harness “viral” interest and penetration of Internet traffic is denoted as a prime need to create brand interest. An Internet, direct mail, viral Internet, and other program means to generate “buzz” are expected to fully support an appearance schedule and “Dog and Pony” show approach using a movable unit that will expand awareness and interest. The Internet and “viral” exposure are viewed by “QHI” as primary conduits for development of interest and have been budgeted accordingly in the Marketing plan. PACKAGING ELEMENTS DESIGNED and COST EFFECTIVE Presentation materials, packaging for dealer and distribution use, and inclusion in the overall marketing concept for each specific segment of the “QHI” product within its defined market segment have been created as prototypes and evaluated. Marking units with an attractive “logo” and exposing the “logo” on the “QHM” platform, together with an overall graphic treatment program is critical to brand establishment. FINANCING RESOURCES The typical elements of bill of material cost versus sell versus return on investment do not affect the projected financing resource interest in the very substantial profitability potential of “QHI”. The overall sales-related characteristic of the product line underscores the high pre-tax net profitability for each individual product and the full product line and the advantages to funding resources.

CO-VENTURE RISK MOST MODEST Since the cost of parts inventory is not a factor (“QHM” produces the complete structure at a fixed cost of operation combined with low cost unskilled labor), only the “QHI” marketing expenditure is expended. The unusually low acquisition cost of the produced “QHM” sections in quantity versus sell ratio evidences viable support for the expectation of extreme overall profitability. Allocation of investment funds to marketing rather than production affords “QHI” financial conduits a distinct advantage over other business models. The relationship with the public entity that constructs the residential and commercial units provides “QHI” with a built-in viability factor for the reliability of its concept. The potential for value increase of its security holdings in the public entity also adds to the profitability potential of “QHI”.

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MEDIA “THIRD PARTY” ENDORSEMENT TESTED A highly-controlled public relations generation of news releases was used to establish a baseline for measuring potential media delivery of “free space” and the most effective means of implanting the ”QH” brand name awareness and product awareness using “Third Party Endorsement”. Results of media contact supports the expectation of a nationwide exposure “rollout” by the media using the flood victim aspect and technology provided it can be mounted while interest levels related to flood damage is still in place. Development of such cost-free media and Internet exposure, inclusion in blogs, and other responses which would promote are confirmed as viable for use of this avenue as an information conduit linked to various forms of more formally funded media market awareness using paid placement, advertising, and press conferences. With the existing “prime” of the media pump, replication of the general awareness developed by other promotion-directed exposure is considered a suitable medium for “QHI”. LOW-COST CONVERSION OF SALES FROM EXPOSURE Using the platform of the media supported “hype”; conversion of the audience exposed to the media coverage is expected to be a matter of “asking for the order”. Coupled with predictable media, making use of “shotgun” approaches to distributing by media coverage followed by targeted limited-cost methodology (i.e. electronic mail, bulk direct mail, and linkages with other products for advertising specialty and premium use) provides confirmation of the projected ROI posture. The robotic aspect of the production cycle and the interest developed for automation technology suggests that support for the “QH” methodology is likely to develop more from the scientific aspect of the method then from suggesting it is a replacement for previous construction methods. ESTABLISHED CO-VENTURER AREAS Various activities and relationships with individuals and entities having expertise in specific distributive areas (beyond “brick and mortar” areas) have been initially discussed with select “co-venturers” to deal in some areas. Once application of funds is directed towards development of sales instead of media awareness it is perceived that a steady stream of Internet-based interest can be developed. The ability to have others support facets of utilizing electronic mail solicitation, direct mail solicitation, and premium exposure within the co-venturer context enables exchanging a share in revenues produced versus shouldering the “up front” costs. To address reaching the broad spectrum of the potential dealer audience tentative agreements have been reached with skilled individuals who expertise can be brought to bear as part of an awareness program.

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“QHI” expects to develop a Management Team structure with promotional efforts apart from the engineering and production delivered by its relationship with the public entity. Company founder Ray Ackley who heads the manufacturing entity. The key aspects of creating interest and establishing dealerships and licensing are divided into: DEALERSHIP SUPPORT • Real estate and facilities identification • Dealer Contact – initial • Dealer Establishment MARKETING and PUBLIC RELATIONS • Concept marketing • Awareness development (dealers) • Awareness development (public) FINANCIAL • Investor relations • General finance BACK OFFICE OPERATIONS • Administration • Accounting INTERNET, ACTIVITY

PER

INQUIRY

MEDIA,

APPEARANCES

and

SPOKESPERSON

Additional “co-venturers” will be sought and established as the needs arise. Typical relationships such as those already in-place to enable mass awareness development in exchange for a sales commission or benefit to the provider offer a means of reducing the need for such expenditures. An example of such is a relationship in which a promotional entity provides access to their media contacts in exchange for a revenue share. Discussions with the CEO if a “crowd sourcing” site supports the contention that others will easily agree to take part in promotion after being exposed to the “QH” concept for a revenue share of sales developed through their conduit. A more formal outline of the perception of “QH” and “QHM” are shown below.

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THE QUIKIEHOME INDUSTRIES FORMAL PRESENTATION

INDUSTRY SEGMENT – CONSTRUCTION USING AUTOMATED “ON SITE” PRODUCTION OF STRUCTURES IN RAPID TIME AT AFFORDABLE COST 1. THE PRODUCT The “QUIKIEHOME INDUSTRIES, INC.” entity provides a unique product to harness interest in the three productive areas of: • • •

DIRECT SALES, RETAIL DEALER SALES and COMMERCIAL SALES.

These prime avenues for promotion of a technology breakthrough with a substantial revenue stream return are believed to be easily tapped by generating entity and product awareness within the framework of a scientifically supported, fully explained engineering posture. In contrast to typical ROI opportunities, the cost to sell ratio of “QUIKIEHOME” branded products is most favorable to profitability and the potential for competition against marketing of the product line is protected by established capability to produce “on site” and unique tooling, together with a major lead due to media “hype” and the substantial flooding of homes in six states. 2. UNIQUE DEVICE Protected by unique production technology, the primary concept of the structure known as “QUIKIEHOME” (QH) uses application of the science of construction technology to produce complete residential and commercial structures to attract a potential purchasing audience. “Fine tuning” of the media exposure opportunity through “beta” testing of media release thrusts has confirmed the ability of the media to generate encouraging results from potential end users, developers, contractors, dealers , wholesalers of home improvement products, and throughout the generalized construction industry, all of which continually seek better ways to enhance their sales. 3. REVENUE STREAMS Both the consumer retail and commercial areas represent substantial noncompetitive revenue streams for successful product marketing. Industry share in both the retail and commercial product areas is generally dependant upon and associated with provable marketing claims. No evidence of any claims similar to those of the “QH” product line has been identified. There have been other incorporations of panel construction and the use of production panels is extensive throughout the world for both residential and commercial structures but the “QH” concept for “on-site” construction of wall sections supported by steel components and steel mesh facings shows it to be unlikely that a competitor could easily enter the field. The makers of the prevailing style of panels have found substantial acceptance and the substantial benefits of the “QH” design offers and encouragement that it can develop industry leadership

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The benchmark within this area of construction product is usually set by exposure of test results and endorsements confirming the product’s ability. These are usually empirical and related to opinion or reflective of those who issue positive comments in some manner and inclusion in or support from those who act as experts on some manner print product carried in newspapers, magazines, Internet comments, or blogs. The substantial review of the product by a paid consultant to FEMA and the distribution of the extensive report related to structural and design aspects coupled with the proof that it withstood major damage afflicted on surrounding structures is viewed as a promising means of supporting product superiority claims. The recent trend in mirroring major department store approaches to “branded” products (in particular in the cosmetic “owned” counter approach now seen in dealerships where the public is offered slick, costly printed materials listing attributes and options against the background of a fixed, standard price is envisioned as a suitable means for harness of shopping mall traffic to promote “QH” construction. The visible success of “high tech” consumer product introductions by Nike, Adidis, and Garmin which have linked media delivered promotional efforts and endorsements to successful in-store sales confirms the ability of those with the proper “high-tech story” to harness dealership traffic within the media environment. With the extreme “high tech” aspects of the “QH”, its appearance as “typical” construction, the promotional thrust of “QH” as a brand is considered suitable. 4. CLAIMS UNLIKE THOSE OF OTHERS The most popular, heavily promoted construction results in residential housing are based on perceived reputation for quality and the “look” of the finished design, not necessarily scientifically based and with reliance upon more than the attributes or the “look” appeal. In the case of a “QH” home, it captures the same interest as a “stick built” home at a far more modest price level and can be put in place in a far shorter time period. This is viewed as a substantial appeal factor. The wide diversity of designs for residential and commercial structures is staggering in scope but a “QH” constructed model can “mimic” any such exterior. The impact of the finished “QH” home visually contrasted with that of a “stick built” supports the wide variety of options available to “QH” purchasers and trim packages which make “QH” sell itself. The “QH” product approach is contrary to the normal construction sale because it is firmly technology based and depends upon a production environment which is easily demonstrated. It establishes a unique promotional posture based on the science behind its ability to deliver its own particular type of appeal both for its “automated formula” construction and look of the finished structure. While other attempts at promoting panel construction have relied upon cost alone, the “QH” precept sells on the basis of delivering “on site” a better stability and a second passenger as a means of deriving sales ability, the design, advantages of water, fire, termite, and even drive by shooting resistance, and a performance ability in

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reducing heating and cooling costs in extensive number of ways never before delivered. “QH” provides • Predictable construction time, • Predictable cost to produce and purchase, • Internal environment control of costs even in extreme conditions, • An exacting duplicate of typical construct results. These and other attributes give “QH” the advantage of not having to meet or overcome competitive claims. This also makes possible a number of advantageous selling methodologies linked to: • revenue from financing “floor plan delivery” for dealers, • establishment fees for dealer locations funded by those with high disposable income to spend, • Ease of appearances at high traffic locations linked to radio and television media promotion, • Multi-level marketing (MLM), • Party plan, • info-mercial lead acquisition, • catalog “hype”, and • a wide variety of other areas. As “QH” is intended to be sold directly to end users or through the involvement of existing builders, subcontractors, Realtors, and agents, and through “third parties” with a vested interest, all those involved are motivated by the recognition of the substantial markup. The means to offset advertising allowances, cooperative advertising, and promotional giveaway postures provides those co-venturing with “QH” considerable leeway in creating their own “product buzz” and profiting from it as they develop sales. By employing affiliate marketing techniques, leads an easily tracked and compensation guaranteed. 5. UNUSUALLY HIGH AUDIENCE INTEREST RESULTS Prior to the initial research period, the initial building of the “QH” model in Texas provided proof of its ability to reject the effects of “Mother Nature” on adjacent housing. This unusually high test result record confirmed the key factors of the Marketing Plan elements related to overcoming concerns over the stability of the “QH” product. Reaction to the media exposure resulted in print evidence of the “QH” remaining in place while other conventional construction was destroyed. 6. RESULTS INCLUDED IN MARKETING PLAN DESIGN This very substantial result confirming the viability of the “QH” product and the subsequent report generated by a paid consultant to FEMA which reflected positively on the design and construction have been used to develop the marketing plan for the “QH” products. The completion of the portable transport platform called “QUIKIEHOME MAKER” to deliver the “QH” products at the building site will mark yet another advantage of the “QH” concept. While the decision was made to confirm the critical factors

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necessary to establish suitable production within the “QHM” before producing multiple units, the detailed plan for: • the product posture of the prototype, • awareness generating ability, • media response, • positioning of the concept, • initial exposure, and • initial generation of both the individual purchaser and potential dealership organization or the products during the planning stage, all have been considered as critical to the unveiling of the “QHM”. The unexpected volume of interest linked to the extensive 6 state flooding and extensive damage to homes has resulted in a faster timetable for “QHM” and “QH” product introduction than expected. One of the cross benefits of establishing the “viral” Internet “buzz” is that information distributes before a product is an actuality ( some of it unintended) that results in purchase interest or information demands that do not exactly match the intended release date for products. 7. UNEXPECTED ATTENTION The carefully crafted timetable announcement was tested using YouTube as a means of encouraging media interest. Subsequent discussions with media personnel suggest that certain aspects are more likely to require detailing to insure the correctness of coverage. Three unexpected interest areas were disclosed: • Contemplation of immediate export either of completed product, assembly elements, or establishment of satellite manufacture of “QHM” and/or assembly in the export marketplace • Establishment of the “grass roots” network to promote awareness in addition to a more formal dealer network. • Lack of technical writers within the media construction editorial staffs that would require models, scientific details, and other supportive content in addition to the expected “QH” details. 8. THE MEDIA SETS THE “TUNE” Media discussions resulting from request to do their “own” story signaled support for the assumption that the “niche” was not generally limited to the construction industry and was more in keeping with the demographic of the ability to “post construction” add the necessary flooring, wall treatments, and exterior embellishments by the purchaser rather than by contractors. This was viewed as critical to stations that carried the news reports or the audience for the Internet feeds. With the targets of diverse media ranging from the “Drudge Report” to “Discovery Channel” it being obvious that a higher than expected interest level would be generated by women and those seeking a second home, many of which were technically interested in the construction aspect but interested also in the low cost or ownership. The additional impact of the large number of flood-related

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victims with available foundations was also viewed as a factor in short term establishing of the “QH” brand. This further encouraged the Company o consider the potential for establishment of individuals as free-standing dealerships and possibly linking the display of the “QH” in “MLM” structures. Typically, high disposable income earners are a solid basis for such purchase and “QHI” has subsequently formulated an additional marketing plan for utilization of that market segment in addition to direct sale through construction-related outlets, developers, and licensed “QH” dealership establishments. “QH” has discussed relationships with expert Internet developers to enable the “QH” site to service the media and also evaluated the need to create an extensive professionally created and maintained Internet presence that incorporates requestors to get additional information, credit applications for both individuals and dealers, and display of various media reports. This site also includes am investor relations component I n the anticipation of additional offers to participate with “QHI” in its expansion. 9. “SPECIAL SITUATION” NO DEBT - ALL PROFIT Encouraging “co-venturers” usually requires facing the up front costs of product purchase, fees, and other particulars of such sharing activities. Such is deliberately not the case with “QH” concept. The “up front” expense structure related to development costs, inventory purchase, good will, and other such costs, particularly when an IPO entity has to shoulder the long term development debt, usually affects the long term ROI projections and overall venture profitability. It has to affect and be considered as part of the eventual sales numbers and the linked return on investment calculations. Not so for “QHI” which represents what it considers is a”Special Situation” due to several unique factors.

,

The combination of technology breakthrough positioning; linked to the demonstrated eager interest of the media;

The existence of the fully paid for extensive ability to create the prototype readiness of the “QHM” portable factory already in place and expended by management,

The existing contractual relationship which allows for the ability to devote 100% of influx funding to marketing since the public entity is totally responsible for production and assembly using the existing technology which is incorporated into the “QHM”, and the perceived interest in placing orders or actively pursuing dealerships.

These factors provide the co-venturers who support sales efforts by funding assembly against sold orders and those who enter into agreements with “QHI” to provide long term financing with what can only be described as a “turn-key” deal.

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This rather unique opportunity allows for a capital investment in either marketing for order development, ownership of options for conversion to buyer orders at a profit, and insures the benefit of substantial gross ROI for both the co-venturers and “QHI” as it develops from the direct marketing and dealership exposure without consideration of shouldering any substantial tooling or manufacturing equipment costs. . 10. VOID OF RESTRICTIVE CONTROLS Despite the scientific basis for its design, with no prospects of potential restrictive government or industry controls that might adversely affect profitability and all of the fundamental markets for the “QH” products deemed suitable, there appears to be no identified “downside” likely to develop from claims against the use of the product. This is not to say that the possibility of local Building & Zoning response may affect certain aspects of the construction process; however that would be dealt with on a case by case basis. Although basic product liability concerns always are a factor, the fact that “QH” has an included advantage that the component systems are manufactured and delivered and built in a predictable manner which insures viability of responsibility for their performance offers minimal risk. The potential for normal product liability claims would likely be offset by the extensive studies done by “QHI” and the issuing approval process for titling of the Company products as successfully completed by Building & Zoning inspections. Interpersonal risk seems far reduced than from association with any other construction product as there is limited use of dangerous tools, the unskilled labor performs the assembly process by hand, and easily avoids the far more dangerous conditions on a “normal” job site. Any unexpected injury would be no less defendable then “normal” and since “QH” requires a training course as a prerequisite and treats most work providers as self employed, independent contractors who have agreed to be self insured, any mishap is more likely to be a result of personal error. The ability of co-venturers to develop their own dealer relationships or to establish their own “branded” dealer infrastructure with associated delivery medium of a “QH” order is the only perceived restriction to limit what appears to be a highly volatile yet immediate short-term growth and substantial long term profit situation. 11. PROTECTIVE ELEMENTS OF THE TRANSACTION Certain safeguards have been put in place to insure the typical concerns related to such ventures are overcome. • The activity of the co-venturer is contractually stated and reserved; • There is little or no “good faith payment” required of co-venturers nor any requirement as to start-up activity; • No control of solicitation activity required governing the actions of the co-venturer in presenting a potential distributor, licensee, developer, or participant in the option program, • The full weight of the media exposure, the trade style, and supportive purchase interest from users may be used;

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• • •

each co-venturer may develop product sales for its specific area of activity; The agreed to revenue share paid by a client of the co-venturer goes directly to the co-venturer apart from any responsibility of “QHI”; The co-venturer receives specific guarantees related to purchases prior to any initiation of activity: (a) The exact cost of the product is confirmed as the stated price the co-venturer will use; (b) The exact available inventory of the products on hand is provided and the schedule of the produced “QH” components confirmed; (c) The product assembly location is known and “QHI” provides a guarantee that upon receipt of a purchase request, confirmation will be provided and the start of operations date specified; Co-venturers soliciting dealerships are self-employed, independent contractors, self insured, and required to adhere to the commonality of specific claims related to the “QH” products performance and value. (a) The co-venturer promotes within its specific area of activity and orders for dealership relationships go directly to the co-venturer, not to the product owner before presentation for ”QHI” approval. (b) The co-venturer submits a purchase request to the product owner who verifies receipt and stands ready to process the credit standing of the proposed purchaser on behalf of the co-venturer establishment of a dealership either direct with the dealership or through the coventurer; (c) The co-venturer gains direct profitability from the “earnest money” and either the benefit of using the existing “QH” financial arrangement or may enter into financing agreements with those who will offer an affiliate benefit.; (d) The “QHM” produces the exact ordered product with options selected by the customer or the dealer;

FINANCIAL CONSIDERATIONS The Company is debt free. All costs of development and manufacture, tooling, and other required components of the model development have been fully paid. The manufacturing entity has been fully funded up to and including the creation of the final prototype. Construction of the initial “QHM” is almost complete awaiting confirmation of the “roll out” for either inclusion in existing plans to begin construction of the “QH” models “on site” for customers or as part of a “model center” concept display. There are no outstanding accounts payables and all assets are free and clear. The balance sheet for QUIKIEHOME INDUSTRIES, INC. reflects no debt.

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DETAILS AS OF NOVEMBER 13, 2012 provided under the terms of a Non Disclosure Agreement. Forward thinking comments are not to be relied upon NOTE: The Name “QUIKIEHOME”, “QUIKIEHOME MAKER” the Internet presence for “QUIKIEHOME.COM, and all manner of content related to the proposed entity and its products is the property of the nonprofit EMERGING GROWTH INSTITUE to designate the products described. The trade styles and associated media awareness activity and suggested means of promotion and marketing have been developed by the nonprofit FLORIDA INSTITUTE OF VIDEO EDUCATION. All materials, and Public Relations materials and activity including news and photographs are provided subject to the terms and conditions of co-venturer involvement or acquisition consideration are considered under confidentiality of a non disclosure agreement. THIS DOCUMENT IS NOT AN OFFER TO INVEST OR PARTICIPATE AND IS FOR INFORMATIONAL USE ONLY

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