Beamz Interactive, Inc. (OTCQB: BZIC) is an emerging growth technology company with a state-of-the-art interactive music product appropriately called “The Beamz”. This product may revolutionize the entertainment and music industries while also having a trickle-down effect for other uses such as education, gaming, and special needs therapy. The actual Beamz system is built around an interactive laser controller technology, which allows a user to create and play music by simply waving their hands through the laser beams.
According to the company, it’s easy enough for anyone to use regardless of age or experience but has the depth to allow professionals in the space such as DJ’s, artists, and musicians to perform and even compose simple or sophisiticated, interactive music. Beamz has a number of uses and cross-market functionality to allow the company entry into multiple segments.
In addition to this, Beamz has 5 utility patents, 11 patents pending, extensive proprietary software, and music licensing rights with companies such as Disney (NYSE:DIS), EMI, Sony (NYSE:SNE), Kobolt, Moog, Blind Pig, Digitrax, Sting Ray, Harry Fox & others. Beamz was previously chosen as one of the “Top Five” coolest products at CES by Billboard.com and one of the “Best of CES” by Leo LePorte on Regis and Kelly. The company’s new Beamz DJ product – which provides an integrated Beamz and Virtual DJ solution - received Gear Junkies award for the “Best DJ Gear At Musikmesse” in 2013. But a question for potential investors now may be, “If Beamz has this award-winning product with a proprietary software, how are they generating consumer awareness?
First, The Beamz product has been featured on television shows including The View and Extra, both, which have dedicated audiences. What may be even more effective in this consumer awareness campaign is the company’s newest celebrity addition. Beamz has recently secured a licensing agreement with nationally recognized Billboard Top 100 performing artist Flo Rida, and in doing so, has developed a new “Beamz by Flo Rida” product line. The potential benefits of this agreement would be based on Flo Rida’s extensive network of fans and online viewership. Flo Rida has over 600 hundred million YouTube views, 13+ million Facebook fans, and over 75 million downloads.
Another piece to this consumer awareness program is the company’s plan to release apps for Apple’s (NASDAQ: AAPL) iOS and Microsoft’s (NASDAQ: MSFT) Windows 8 that allow the user to experience The Beamz new interactive music format by using the touch screen on various mobile devices such as the iPhone and iPad. Through this multi-pronged approach, Beamz will be introduced to Millions of consumers, which will not only know about the product, but they will know about Beamz Interactive (BZIC).
“The Beamz” in the Mass Consumer Marketplace
Comparatively speaking within the music industry, a simple set of headphones was endorsed by a major recording artist, Dr. Dre who took the concept and made it a national phenomenon for a “new” way to listen to music. The cost of a set of “Beats By Dr. Dre” headphones starts around $200. Since 2008, the Beats brand has exploded into not only headphones and ear-buds, but to added computer enhancements and even car-audio (through “Beats Audio” speakers). Based on this growth in such a short time for the “Beats” brand alone, The Beamz product line may also set itself on the same path. Beamz has already collaborated with Virtual DJ -- the award winning leading DJ software company -- to create a combined Virtual DJ / Beamz product offering that is tailored to the needs of the mass DJ market. This now places the Beamz brand in the hands of a wide range of users who access and create music with Virtual DJ products.
“The Beamz” in Music Gaming
It doesn’t stop just stop at music creation with Beamz Interactive. The company has also focused on the interactive music gaming side as well; enter Activision’s (NASDAQ: ATVI) “Guitar Hero”. This began as a series of music rhythm games first published in 2005. Players use a guitar-shaped game controller to simulate playing lead, bass guitar, and rhythm guitar across numerous rock music songs. Following this in 2007 was the first “Rock Band” music video game, which allows up to four players to simulate the performance of popular rock music songs by playing with controllers modeled after musical instruments. Finally, in 2009, DJ Hero was released and is a game based on mixing music with a model turntable. Since the original releases of all of these games multiple sequels have been released. Rockband, previously mentioned in this paragraph, surpassed $1 Billion in North American Retail sales within its first 15 months. If The Beamz product and it’s newly signed endorsement from Flo Rida have the ability to capture even a fraction of that number, the revenue potential from the “interactive music gaming” arm alone may be extremely beneficial to the company during the development stages toward future growth.
“The Beamz” in Education
Beamz Interactive, Inc. has not only focused on the entertainment aspect of its product through music and games, but it has also broken ground for real-life applications. BZIC has applied its technology in the classroom setting through its universal design. This versatility allows accessibility to students with learning and physical disabilities. Curriculum applications include cognition, processing, sequencing, cause/effect, memory, motor skill development, and more. Added benefits of the Beamz product suite include:
- Display Beamz software on interactive whiteboards to deliver whole-class instruction and conduct organized collaboration
- Implement the principals of UDL (universal design for learning) by providing multiple means of representation and expression
- Record students’ creations to share with administrators, peers and parents
- Access to free lesson plans
Other “real life” applications include settings in physical and neuro-therapy sessions as well as senior living centers.
In a recent June 17 press release, Charlie Mollo, President and CEO of Beamz Interactive said, “We expect 2013 to be a pivotal year for Beamz Interactive. Over the past several years we have laid the groundwork for our revolutionary interactive music technology, and now we are ready to initiate a series of high growth initiatives, including the release of a new product line, signing a deal with a world-renowned artist for unique branding opportunities and continuing to capitalize on the increasing worldwide demand for innovative products that effectively combine interactive user experiences and digital media platforms.”
In the same release, the company stated that in the near term, it will focus on 3 key areas of the music market which include the mass consumer market, the DJ & pro-audio market, and the educational, special needs & senior care market. Following the announcement of closing a $2.5 million convertible debt deal, the company should have adequate funding to implement this plan.
Beamz Interactive may be well positioned to take advantage of the growth in the electronic music and entertainment markets. Key target markets include the mass consumer market, the DJ and professional musician market, and the education, medical rehabilitation, senior care & special needs markets. In the near term Beamz plans to focus on these multi-billion dollar market opportunities. Through the endorsement of Flo Rida and expansion into the apps marketplace, Beamz could also grab a large market share through increased consumer awareness. All of this together could pose a positive impact for current and future shareholders of Beamz Interactive, Inc as the product portfolio grows. According to the company, it looks to expand on its OEM licensing opportunities. Examples include:
- OEM relationship with PlayAbility Toys, a manufacturer and marketer of products for the special needs market, whereby the Company has created a unique special needs version of the Beamz for PlayAbility Toys
- A strategic distribution arrangement with Music TheraPlay in the senior care market
- A licensing arrangement with Cypher Entertainment.
- Beamz has also developed an SDK to allow third parties to use the Beamz technology to develop additional applications and markets for the Beamz products.
Beamz Interactive, Inc. Leadership
The products and company, of course, are only as strong as the leadership. At the helm of Beamz is Mr. Charles Mollo, President and CEO. Mr. Mollo was a co-founder and Chairman, President and CEO of Mobility Electronics, Inc. (now iGo, Inc.) (NASDAQ: IGOI). Mobility Electronics was focused on developing and marketing innovative products for the converging mobile electronics industry. Under his leadership, Charlie led the founding entrepreneurial team and raised over $100 million, including an IPO, PIPE and other financings. In addition, the Company grew sales to an annual run rate of just under $100 million per year.
Mr. Mollo also helped build Alliance Telecommunications Corporation in the late 1980s and early 1990s. In addition to this, Charles also managed a variety of venture investments, including a $150 million venture capital fund for Meadows Resources.
In the seats of Vice President are Al Ingallinera Jr., Product Manager, and Scott Coyle, Finance. Mr. Ingallinera Jr. has more than 20 years experience launching new hardware and software technology products into consumer, business and vertical markets. He has a track record of developing new markets, expanding sales channels, establishing marketing partnerships and increasing business unit profitability. Mr. Coyle has more than 25 years experience in a variety of finance related activities. Prior to working with Beamz Interactive Scott was licensed in the securities business from 1986 through 2011.
Beamz also recently appointed veteran financial executive Joan Brubacher as President and CFO in July. With over 30 years of experience, Ms. Brubacher is a leader with a strong track record of public company performance, including being the former CFO of iGo, Inc., where she took the company public in 2000 and actively participated in closing a variety of other financings and M&A transactions. She has extensive Wall Street experience and started her career on the audit staff of Ernst & Young (formerly Ernst & Whinney).
Conclusion
Beamz Interactive, Inc. has a multi-pronged approach, focused on reaching not only the mass consumer base but also attain a share in different vertical markets as well. These additional markets include education, special needs, and senior care in addition to professional music production. With about $340k in revenues in its last fiscal year, Beamz Interactive is an early growth stage company and with a seasoned management team, a proprietary software technology, and a newly implemented consumer awareness program lead by Flo Rida, this may be the company to watch for more in the coming months and well into next year.
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