I-EXECUTIVE SUMMARY

Digital Theatrics Inc. is a pre-start up company who creates and franchises performing arts venue’s capable of projecting solid, virtual, 3 dimensional, professional holographic actors which can interact in real-time with live stage actors.

These solid, holographic characters, are viewable without wearing special glasses and can be computer manipulated to assume either human, surrealistic, or both forms simultaneously. Any distinction between fantasy and reality is obliterated in the audiences’ mind, who perceives live and illusionary actors, co-existing together on stage in the same time and space continuum.

Although this technology has been  temporarily demonstrated at various locations over the past 3 years, our company plans on establishing the worlds first, permanently operating, commercial venue that can be easily franchised. We have had recent conversations with Musion Systems Ltd., the equipments manufacture, regarding a corporate license of their Eyeliner holographic technology.

Just as Dolby and Surround Sound has changed the way we experience movies, so too, Digital Theater will revolutionize the performing arts industry, taking it into a new theatrical genre! One example would be watching the play, “A Christmas Carol”, by Charles Dickens; where the ghosts of Christmas Past, Present, and Future would be performed by these full featured holographic characters (which look just like real actors).

Digital Theatrics is currently soliciting visionary financier’s at every level to raise $2 million dollars to fund personnel, equipment, and working capital for building a pilot venue. At full vestment we offer an exit strategy of a 100% buy back after 18 months of operations and 22.5% return on investment, with a first choice on global franchise options.

An $175,000 alternative form of bootstrap financing is also possible with a 90 day return on investment. This would allow us to set up an office, register with Dunn & Brad street, then purchase and merge seven (7), five year old, shelf company’s with a $350,000 credit line. In this manner we can raise the necessary funding besides protecting your investment with a “Letter of Guarantee” from the bank.

Our business plan forecasts building the prototype venue by next summer and selling  licensed franchises shortly afterwards. Usually entertainment is consider a high risk, low return investment. We have uprooted that cliché by offering a feasible, unique, application capable of cornering an international market. Further steps have been taken to write an exclusive stage play highlighting this technology, the first being; “Merlin’s Legacy”, which will première at our pilot venue.

To ensure a successful marketing position, Digital Theatrics has chosen to place the pilot project in a viable geographical region, Niagara Falls, which already generates $1.5 billion dollars annually in tourism.[1] Statistically, we anticipate an average 58% share of the 1.333% local annual entertainment industry; or 103,816 audience members for a net revenue of $4.27 million dollars.[2]

Image watching theatrical performance of  “Charles Dickens: A Christmas Carol” where Marley, and the Ghosts of Christmas Past, Present, and Future look like regular stage actors then mysteriously vaporize and reappear elsewhere on stage. Welcome to the world of Digital Theatre.

Unlike Digital Theater, which semantically is a new form of High Definition Cinema;  a Digital Theatre (re instead of er), is a merger of holographic and live actors, performing in real-time, interacting simultaneously on the same stage. The holographic actors exhibit the same human characteristics as a normal person, are totally indistinguishable from the real live actors, yet because they are computer generated, can defy the laws of nature.

Just like Thomas Edison’s first movie projector, the Vitascope, wasn’t a successful invention until it gained international exposure at the 1907 Pan-American Exposition; so too we wish to débuted this unique application of the patented “Musion Eyeliner System”  in Niagara Falls which attracts over 14 million tourist annually[1], and generates $1.5 billion dollars annually, with $20 million spent on entertianment.[2]

 This will become the worlds first, permanently located, commercially operated, digital performing arts theatre; where we will set up our corporate headquarters’ and offer global franchising.

The performing arts section of our 10,500 square foot building will easily accommodate up to a 400 person occupancy with a 326 seat audience leaving 33% free space for building a stage, and 25% for offices and storage. This graph below indicates projected house fills based on monthly lodging occupancy statistics:

As the Cabaret Theatre will be the world’s first, permanent, commercially operated Digital Theatre; we anticipate heavy local, national, and world-wide media coverage during our grand opening. At first this will boost our recognition and attribute to the first years growth potential. Complimentary tickets will be given to radio stations covering this event as promotional gifts to their listeners.

Our main form of attracting attention will be a signature 5 searchlight pyramid display, illuminating the night sky. This will be clearly visible from the Canadian side, and due to a viewers perspective, appear right next to brink of the falls. The searchlights will change color along with the night time illumination of Niagara Falls, and dance in the sky, returning back to form its initial pyramid display.

Further marketing will be in the form of professional flyers distributed in hotel, motel, and main attraction literature racks. Some limited radio commercials will run utilizing the theme song jingle; “Come to the Cabaret”, with on-site, live, remote broadcasts.

Right now Niagara Falls generates approximately $1.5 billion dollars annually in tourism, of which 1.33%, or $20 million is spend by consumers on entertainment. As the only other venues competing in Niagara Falls, New York, are a Casino and indoor snow park, we project a 58% market share which equals 103,816 / 178,662 potential audience. Rather then viewing local venues as competitors, we believe in mutual complementation. These figures are adjusted based on seasonal hotel occupancy statistics.

Unlike restaurants, lodging, or other entertainment venues, Digital Theatrics Cabaret theatre provides a unique, once in a life time experience; which is why we can project such a large market share. Excluding the places listed above there are only two other attractions in Niagara Falls, New York: The Factory Outlet Mall located 3 miles away from downtown that offers inexpensive souvenirs due the currency exchange rate, and the Cave of the Winds where tourist walk behind the actual bridal falls.

In fact we can foresee a possible triple billing between the Cabaret Theatre, Snow Park Niagara, and the Casino on a single price ticket. Although run separately, each venue would compliment one another where tourist could stay at the Casino, go snow boarding in the summer sun, and catch a theatrical performance before dinner.

The Musion Eyeliner System which makes this technologically feasible, has débuted in live demonstrations for 10 years, and besides the initial investment, will cost us an additional $12,000 yearly for licensing. I have spoken with Ian O’Connell, CEO of Musion Systems Ltd, UK and have signed a mutual non-disclosure regarding our particular application. He assured me that his company is not interested in, nor will accept any petty or innovative patents on our particular usage.

Board of Directors

Founder, CEO

            Mr. James A. Missall

Jim has over 26 years in the performing arts industry, besides a life-long tenure track as an electronic technician. He brings this experience along with being a supervisor for POP RADIO in Buffalo, New York; and running a SOHO communications business.

Recently Mr. Missall led a unsuccessful crusade to save Melody Fair Theatre, a local landmark theatre built for the 100th anniversary of the Wurlitzer Manufacturing company. Although WalMart finally won approval to build a super center at the former Melody Fair site, Jim made valuable contacts and learned how to address city planning boards.

His technical theatrics started in high school staging; “A Bicentennial Celebration”, and extended into black-box lighting at the University of Buffalo, now volunteering at Trinity Catholic Academy as the students Lighting Director. Jim came up with idea of opening the worlds first digital performing theatre after watching a demonstration of Musion’s Eyeliner System on the 2003 Gammy Awards, and researched the markets viability for this particular application.

Mr. Missall will be responsible for the general oversight, technical planning, and financial obligations of Digital Theatrics, LLC.

COO, CFO

           Mrs. Angie N. Missall

Usually spouse’ do not make a good working team. In this case it is different, Mrs. Missall, Jim’s wife has a life time experience managing multi-million business chains.

Her background includes being assistant district manager for the McDonalds food corporation, Dunkin Donut-Baskin Robins stores, and a couple industrial cleaning company’s. She is quite knowledgeable on the day-to-day operations, customer satisfaction, employee motivation, profit-loss statements, balance sheets, scheduling, and end day closings.

Angie’s financial skills are second to none, being able to give a daily accounting without computer assistance (hard ledger). Mrs. Missall will be responsible for Digital Theatrics, LLC operations and bottom line costs.

CMO

          Miss Joanne Seers

Ms. Seers will be utilizing her life long experience in sales in marketing besides as an assistant operations manager for Digital Theatrics, LLC. She will be applying her local experience to attract tourism into our facility, booking tour buses, providing franchise options, and acting part time as a back up for operations management.

Her infectious personality creates the right atmosphere for a company spokesperson, and negotiation skills and asset for drawing business partners.

Advisory Committee Members

Technical Business Director

            Mr. Edward Smith

Mr. Smith has run several local entertainment businesses and has been on local tourism boards. He has started up and dissolved many venues, and posses the wisdom of a weathered businessman in his resume.

Ed and I have worked together on the Melody Fair project and have kept in communication regarding the viability Digital Theatrics, LLC. Although we might disagree, and not always follow his advice, his insight and connections into our local entertainment industry is a very insightful and mature analysis.

Architect and Preservationist

            Mrs. Bonnie Foit-Albrecht

I also met Bonnie working on the Melody Fair project where she voluntarily sat on our board. She has extensively travel worldwide studying different forms of ancient architecture and has authored a book journaling her investigations.

Mrs. Foit-Albrecht also sits on the cities tourism board and has regular meetings with Paul A. Dyster, Mayor of Niagara Falls. Her recommendations are highly regarded throughout all of  Western New York, with several beautiful designs being type accepted by local planning boards.

APPENDIX A: DEFINITIONS

Digital Theatre: Strictly, Digital theatre is a hybrid art form, involved in the encounter between real and virtual performers, between virtual beings in real spaces and real beings in virtual spaces. These encounters will be established by various means of digital technology transforming movements in time and space.

                                                                           Digital Theatre - an experimentarium

                                                                                                                at the Kaserne Scenen, University of

                                                                                                                Århus, Langelandsgade 139, 4th

                                                                                                                February - 12 June 1999

                                    www.daimi.au.dk/~sdela/dte/

Eyeliner: licensed by Musion Systems Ltd, UK; is a modern variation of a stage illusion called Pepper's ghost, uitlizing a high definition video projection system with a thin film streched across the entire stage as its reflective surface, allowing for moving images to appear within a live stage setting.

                           http://www.eyeliner3d.com/