High-Tech Innovation for the Footwear Industry

B&B Technologies LP & DAMPS™ I LP

 

 

PARTNERSHIP BUSINESS GOAL

B&B Technologies LP and the DAMPS™ I LP (the Partnership) are in a position to establish a commanding share of the technological side of the footwear industry by licensing its breakthrough, patented shock mitigation technology to footwear manufacturers. The Partnership's active propulsion/suspension system is the first of its kind and brings with it all the benefits of an emerging technology and opportunities for further market exploitation.

STRATEGIC PLAN

The overall strategic plan is to (1) establish further manufacturing and marketing viability for the technology, (2) license that technology to major shoe manufacturers and (3) develop ancillary suspension/propulsion and power generation technologies for continued DAMPS™ branding.

PRODUCT

The Partnership's patented suspension system dissipates normal motion shock to the body by 68% and, with its suspension/propulsion capacity, actually adds lift to a person's normal walking gait. The technology focuses on the prime contact area (the heel) with ancillary technology to dampen and distribute normal motion shock in the ball of the foot.

MARKETABILITY

The patents work. Testing for Special Operations Forces proved that. There are several sectors and niche's that can be validated refined and exploited, Military, Orthopedic Preventive Health, Therapeutic Heel strike injury recovery, Medical Application Diabetics podiatrist prescribed, extreme sports, uniform Safety, including Obesity. There is a boomer comfort market. Someone turns 50 every seven seconds.

Established in 1997, our web site DAMPS.com averages some 10,000 hits per month - evidence that people are searching for footwear technology. The footwear industry is looking for product innovation to boost stagnating sales.

Comfort has become the key buying influence in men's and women's footwear, outstripping fit, price and even style, and footwear with technology enhancements such as soft soles and cushioned insoles have become increasingly popular.

In response to the consumer demand for comfortable footwear, a redefined market has emerged, consisting of footwear that combines athletic construction with the styling of fashion footwear. This new category, dubbed "athleisure", has created opportunities for traditional footwear companies to regain some of the business that was taken from them by the giant athletic companies for so many years. Even some of the athletic firms have debuted casual footwear lines to satisfy this market.

Our research has identified performance technology, for the military, athleisure, boot and working shoe manufacturers as the most responsive to this cutting-edge technology.

Consequently, licensing discussions have been proposed with Wolverine, Timberland, Georgia Boots, Doc Martens, Red Wing, Nike, Reebok and Stride Right. While non-disclosure issues have prevented action with some of these companies, there is continuing interest on the part of several major industry players.

The U.S. Marine Corps Systems Command has shown interest in using the technology in military and combat boots. USSOCOM (U.S. Special Operations Command) provided a $ 75,000 contract for Soldier Enhanced Mobility System (SEMS) Smart Boots, utilizing DAMPS™ technology prototypes in 2004 and has current interest in DAMPS™ Power Generation technology.

Since 1998, SAIC (Science Applications International Corporation) continues to engage inroads with the military and the viability re the benefits and product future of DAMPS™ Technology. DAMPS™ technology Smart boot prototypes are scheduled for a showing to NATICK Soldier Systems Command in the near future.

Heel strike injury is the number one injury seen by podiatrists. As such, our exclusive technology is ideal for foot injury rehabilitation. Our consulting podiatrist has contacted the FDA regarding a 510(k) exempt classification for shock mitigation in medical applications, which would allow us to promote health benefits of shock mitigation. These ongoing health and productivity benefits will be further marketed to Workman's Comp insurance carriers and industry employers everywhere. We are in contact with GM Global Health & Safety.

For publicly traded footwear manufacturers, we believe that licensing DAMPS™ technology is a value added proposition that promulgates enhancing stock value which helps to offset the cost of proposed licensing. On a case-by-case basis, DAMPS™ will also consider accepting publicly-held stock as a part of a licensing agreement.

INTELLECTUAL PROPERTY

Our footwear technology has received two patents, one utility, one design with an additional improvement utility application filed and a formulation patent-pending/trade secret. Our DAMPS™ trademark and www.damps.com domain are included in our intellectual property. We also have one provisional patent filed for DAMPS™ Power Generation.

We have copy written the DAMPS™ Magnetic Heel Insert, the DAMPS™ Heavy Duty out sole, the DAMPS™ Balls, SEMS (Soldier Enhanced Mobility Systems), the Smart Boot, and the DAMPS™ Power Generation technology along with the tag line "The DAMPS™ One Step Difference".

REVENUES

Once licensing is in place, royalty income is very conservatively expected to climb to $6.2 million within the first year after startup, increasing to $9.8 million and $15.0 million the second and third years, respectively. Positive cash flow is projected at a royalty level of $1.5 million. On-going expenses to support licensing activity are minimal, except that the Company will support branding and continue research and development on DAMPS™ Power Generation.

MANAGEMENT TEAM

Our executive management is comprised of:
CEO/Marketing & R&D - Jeff Brown, as founder and inventor is responsible for formulating the Company's licensing and product development strategies for DAMPS™ technologies.
Vice President Marketing - To be named upon funding, the Vice President will be responsible for implementing the Company's licensing strategy.

The Partnership has recently added the President of Boot World management advisory team. Boot World has seven retail stores locally and one in Las Vegas. Boot World and the Company have agreed to utilize these stores as an initial test market for DAMPS™-enhanced footwear.

These, along with a consulting podiatrist, a patent attorney and others experienced in our industry, an equity-based virtual management team, have developed and actively support a quality technology product and a viable business strategy.

CAPITAL REQUIRED

The Partnership is now looking for $1,700,000 in capitalization to retain staff, set up pre-licensing manufacturing facilities, complete footwear component supply logistics, arrange licensing agreements, and market, promote, and sell the new "high-tech" footwear.

 

Funds will be used as follows:

Amount	Use
$600,600	Machinery & equipment and rent / utility deposits
$470,000	Marketing and promotion
$236,000	Six months general & admin (including capitalization fees) until initial royalties begin
$184,000	Pay back original investors / non-recourse loans
$209,400	Cash reserves
Total	$1,700,000

Based on the financial projections included in our detailed business plan the Company expects to be able to return 3 times the initial investment by the end of the third year after startup and 1 times the initial investment annually thereafter. In lieu of payback the General Partner offers 9% DAMPS I equity or will consider some agreeable combination of payback and equity. The offering subscriber also receives a first right for future funding of the DAMPS I LP.

Alternate Investment & Licensing Participation

Please note: that in the Private Placement Document (PPM) Item XIII Ways to Invest qualified investors may participate at levels beginning at $ 3,250 up to $ 100,000. Alternatively, interested licensing partners may also engage in discussions with the General Partner.

EXIT STRATEGY

As an exit strategy, we anticipate that the impact of our active propulsion/suspension system will make the company and/or the product line(s) an attractive corporate acquisition within 2 to 3 years. This would allow an investor to recover the original investment many times over. Alternatively, offering the company to the public through an IPO can increase equity value.

RISKS

Market acceptance of this footwear technology has not been fully established nor has the technology been extensively field-tested.

Download a Non-Disclosure Agreement for more information.

The Private Placement Memorandum will be sent immediately upon receipt of the Signed Non-Disclosure Agreement. Fax Non-Disclosure Agreement to 775-826-1322.

IpAuctions, Inc. makes no representation as to the suitability of any investment in DAMP 1. Qualified investors who are interested in licensing this technology should contact IpAuctions, Inc. at moreinfo@ipauctions.com