Juan Costello: Good day from Wall Street. This is Juan Costello, Senior Analyst at the Wall Street Reporter and joining us today is Charlie Mollo the CEO for Beamz Interactive. The company trades on the OTCQB and their ticker symbol is BZIC. Thanks for joining us today there Charlie.
Charlie Mollo: Good morning Juan, I’m delighted to do it.
Juan Costello: Morning. Now starting off give us a brief history an overview of Beamz for some of our listeners here that are new to your story.
Charlie Mollo: I’ll be happy to do it. Beamz Interactive has developed a very exciting laser controller technology that has brought applicability in many different markets including music, gaming, therapy, education, senior care and really many others and it works very simply, with our different products you can interrupt the laser beams that are included on the products and trigger all different types of events. The initial product offering is centered around interactive music and you can literally play with songs that you have in your music library or ones that we have created or licensed for many other people, and interact with them and bring in literally hundreds of different instruments to play along with different tunes that you enjoy and anyone can do it. It’s set up so that it’s sound great no matter what you do and if you’re an accomplished musician or an amateur musician or DJ, we have a professional model that allows you to do very fancy things and really get into it in a very big way.
Juan Costello: Certainly. So yeah and talking about some of the products or the main, you know, the main platform which is the laser beam, you know, as the company is name of the company refers to, how, you know, talk a little bit about how it works you know I guess it’s like a synthesizer which…
Charlie Mollo: Yeah it’s actually it is expect that you trigger the different music clips, sound effects, vocals or whatever you like literally by waving your hands through the laser beams and depending on how you wave your hands through the laser beam you can play the instrument differently and you can play it along with the background rhythm track so you can be pointing things like Funky Town or Hotel California so of the latest Black Eyed Peas, Lady Gaga, any of the different types of music that you like and literally just get in there and start waving your hands in different ways and you’ll create and bring in pianos, guitars and literally any type of instrument trumpet, saxophones that you like and create this really phenomenal music through connecting with your computer and sound system.
Juan Costello: Right. And so I can imagine as far as the way that technology works it allows for novices to be able to create music and so how, talk about that and some of the other trends right now in the sector and how our position the company is to capitalize on them.
Charlie Mollo: Yeah we – you can literally if you don’t know anything about music, it’s very simple to begin to play but if you do know a lot about music, you can create your own music bring in your own recordings, your own sound effects or any different creative ideas that you want to play along within device you can also control other music programs for example with our profession DJ program, you can control virtual DJ or Serato or any of the major music production software’s Ableton Live and so forth with the laser beams so you have a really visual fun way of presenting what you’re doing. We’re really playing in to the transfer interactive music this is a way for individuals and consumers that enjoy different artist to literally interact with that artist music and we have a lot of music created by folks like David Ellefson did a whole album for us he’s the legendary bassist with Megadeath, and we have a whole range of other artist that DJ that are creating and creating unique things for us as well.
Juan Costello: Certainly. And so talk a little bit about what are some of your current distribution partnerships for the product?
Charlie Mollo: You bet. We really are focused in three major markets segments. One of them is a consumer market and with that we partnered with a company by the name Cypher Entertainment based in New York to create a smart phone version of the product and they will taken into all the major retail channels we are working with a number of distribution channels such as the mom and pop music stores that are there. We just announced yesterday literally that we’ll be in the Best Buy music stores there’s about 85 of them with our professional version of the product. We’re in Amazon of course, we have our own website and we’re building channels, we are just getting going with the product. We’ve completed the technology we have completed the first product offering, we have about 10,000 units in the field. So we’re at the point where we are trying to create awareness and beginning to build those channels and as I just noted, we’re starting to have success in doing that.
The second major category is in [Indiscernible] [0:05:18] education, music therapy and retirement home centers and we partnered with a couple of companies in those spaces one by the name of Playability Toys in Tucson, a small a company that works with various music therapy applications and with a company by the name of Music TheraPLAY that is focused on the retirement home centers where this has been very successful.
And then finally sets of channels that we are working on is the DJ and professional artist and we work with a lot of those professional artist to reach out to their fan bases through unique music they have created for the Beamz and for other channels. So we’re on the front end of all of that the product that we have lots of IP and patens around the product and technology and we’re really off and running and really working to create the awareness as we look into this holiday season and next year.
Juan Costello: Well great and so what would you say are some of the factors that makes either the company or your product or perhaps both unique from some of the other players in the sector?
Charlie Mollo: We have very unique patented technology and therefore, we have a mode if you will around what we are doing with our company. It’s completed, so it’s now a matter of rollout, it’s not a big development cycle we address multiple market segments that are each literally multi-billion market opportunity such as the home DJ and professional artist market, the consumer markets, the gaming markets and so forth, so we have lots of different avenues to take this and grow the company in a very big way. We have some great strategic partnerships already in place today and we have terrific intellectual property around everything that we are doing.
We also have a great opportunity as we go forward to provide lots of different content for the Beamz as we begin to grow our installed base. So as we go forward, today we have literally hundreds of songs that are interactive for the Beamz use on our website. As we go forward, we expect to have thousands of them and really grow the content business portion of this which is a very high margin business and will give us excellent ongoing pretax margins as well as another major growth category for us.
Juan Costello: Certainly. And perhaps you could walk us through your background experience Charlie and talk a little bit about the strength there with the management team.
Charlie Mollo: We are – we have a really great core team I’ve been a serial entrepreneur for a number of years. The last company that I found – cofounded with a number of other individuals was iGo Inc. It’s traded today on the NASDAQ and we founded the company, I took it public with Alex Brown and BOFA Securities back in June of 2000 and we grew it to just under a 100 million or so in revenues at that time that I retired from there about six years. And a lot of the core group that are in Beamz today are relationships partners or individuals that I have worked with in the past both through iGo or in other areas that I’ve worked in the industry.
So we have a core team. We use an outsourcing model as much as we can, so it’s a small group and a small overhead structure, we’re working with partners for example we manufacture in the laser with a partner that I’ve known for many, many years. We have an outsource distribution fulfillment partner. And as a result, we have great leverage in our financial model both with the product which has great margins and with the future content but the core group has worked together before very successfully. We’ve been able to do a lot of interesting things entrepreneurially and I think we’re as a result extremely well positioned when you combine it with our IP and large market opportunities to build a major company here very quickly.
Juan Costello: Great. And so what are some of the goals and milestones that you and the team are hoping to accomplish over next year?
Charlie Mollo: So over the next year we really want to accomplish getting all the foundation pieces in place to build the major growth pattern that we are anticipating and focusing on, so we have the core technology and product since I indicated we have the management infrastructure in place, we are in the process of doing financing at this point as we complete that we will expand our sales marketing activity so we can tell the world that we exists, right now we are pretty well kept secret and secondly we want to expand the partnerships that we have, we have three or four great partnerships in place today, we are looking to expand those by partnering with folks in the gaming space, in the music space and in other areas and that will give us the rest of the pieces of the foundation that can build a major company over the next three to five years.
Juan Costello: And speaking of it what are some of the goals that you and the company are hoping to accomplish here over the course of the next 12 months?
Charlie Mollo: Over the next 12 months it’s really a matter of creating awareness for example we just announced a major contest that we are doing in Q4 for the holiday season we have a number of great artist that are working with us, I will be on the judge panel as well help promoting this and we want to create awareness by doing viral techniques and social media techniques such as this as well as putting in place the reminder of the partnerships that we want so that we can really see turbo charged growth as we get into the next several years.
Juan Costello: And as far as investors and the financial community are concerned Charlie do you believe that as you are recently presenting at the Nebo [Phonetic] [0:10:59] conference and so as you continue speak with investors and members of the financial community do you believe that the Beamz story and your message and the companies upside are completely understood and appreciated by them and if not what do you wish investors better understood about your company?
Charlie Mollo: I think when we are able to present directly and especially when we can give folks a chance to interact with the useful instrument and the product that we have they get it very quickly when you put your head in the beams and you see this incredible music event and, and performance come out you typically see a big smile and grin, bright at that moment people get that this something special it’s a major new revolution and in the way to approach interactive music as well as the number of these other areas that we are looking at, so it’s a really a matter of getting in front of the investors explaining the story and I think we’ve had a terrific reception whenever we can do that especially if we get them to see the product but even as we begin to talk through the strategy and the pieces so it’s more a matter of awareness than it is a matter of messaging.
Juan Costello: Well good and so once again joining us today Charlie Mollo the CEO for Beamz Interactive the company will commence trading on the OTCQB under their ticker symbol is BZIC and before we conclude here Charlie to recap some of your key points why do you believe investors should consider the company as a good investment opportunity today?
Charlie Mollo: Primarily because we have all the key strategic pieces in places to create a major new category in the industry and to really create a substantial growth path as a result. We have a great core team that’s very experienced in place. We have an excellent financial model especially with the ongoing laser blade opportunity with music content and other kinds of content. We had multiple market opportunities and multiple product opportunities with the core technology that’s already developed, we have the core strategic partnerships in place and we have terrific intellectual property, four issued patents in the US and many more filed, as well as extensive software and music licensing rights. So all the pieces are in place to build a major new category and a new company in the space and really you have to put the turbo charger on over the next three to five years.
Juan Costello: Well, we certainly look forward to continuing to tract the companies growth and report on your upcoming progress and we like to thank you for taking the time to join us today Charlie and update our investor audience on Beamz.
Charlie Mollo: You’re very welcome thank you very much.