Archimax Strategy

Archimax Strategy

• The development of virtual reality experiences for the entertainment market
• Original, and current company goal is to release the “C21”

• Image generator and control system specifically for virtual reality applications in entertainment.
• Would give them an industry leading position in low cost, high quality graphics.

Customers

• Primary Customer: Sell C21 to equipment Integrators
• Secondary Customer: Theme parks and Shopping malls

• Would be done through alliances with design firms and software houses
• Turnkey product and merchandising service to these customers.

• Not yet released (delays).

Tactics

• Acquisition of PS Technologies, an Austin, Texas-based developer of image generators.

• Short-term cash flow → PS has an attractive inventory of finished/unfinished PS 100’s (a weaker/cheaper C21)

• Worth $2.8 million → Most likely sold at a discount of 40-60%

• Opportunity to obtain a NASDAQ listing
• Bought for $900,000, $1.4 million in liabilities and Archimax shares values at $1.8 million.

• SIGGRAPH & IAPPA

• Company & industry exposure to potential investors and customers

Key Success Factors

• Need cash flow for product development
• Need good, technical people
• Ability to produce a product to release on the market

• Needs a product to obtain a reliable stream of revenue

• Needs exposure to attract investors as well as alliances with other firms

• Being present at SIGGRAPH & IAPPA.

Evaluating Options

1. No changes

• Pros: Plan is already underway, no extra time and resources have to be moved.
• Cons: Archimax needs to attract investors at SIGGRAPH as a last ditch effort to operate. Not allocating enough towards its budget may be detrimental.

• Could go bankrupt by October

1. Improve Exhibit

• Pros: Increase chances of picking up investors
• Cons: difficult to come up with the extra $500,000 in 6 weeks

• Would have to cut budgets to budget the extra $500,000 (Take from the IAPPA budget?)

1. Cancel SIGGRAPH

• Pros: Save cash in the short-term & focus on C21 completion
• Cons: No interaction/exposure to investors → less foreseeable cash in the future.