Business Plan

Last update:  03/27/2005

1. Honda Motor Co  (Tokyo, Japan) has a new walking android called Asimo (Advanced Step in Innovative Mobility).  This android is 1.2m tall (47.25"), 0.45m wide (18"), and 0.44m deep.  Asimo weighs 43 kg (95 lb.).  Specs are here.  English version Asimo site. It has three pages of descriptions of the robot technology at page1, page2, and page3.  Asimo movies using a new media viewer from Viewpoint.


     asimo.jpg (25482 bytes)     25KB

        Asimo &  P3

2. Honda Motor Co    P3 - Humanoid robot:  P3 was finished in September of 1997.  This android is 160 cm tall (5'3") and weighs a mere 130Kg (=286 pounds).

   p3front.jpg (58321 bytes)   p3side.jpg (38614 bytes)

        57KB                      38KB

Here is an index of P3 events with lots of pictures.  Four events are listed: event1, event2, event3, event4.

Here are some MOVIES of the robot.

3. Honda Motor Co - P2 Humanoid

Honda built a battery powered android which can walk like a person and can even walk up and down stairs.  It looks like an astronaut in a spacesuit. It stands about six feet tall and it weighs about 460 pounds. Honda spent 10 years developing this android which was introduced in Tokyo, December 20, 1996. Honda has now revealed that they spent more than $100 MILLION (US) on that project..  This android is referred to internally as P2. Staff: unknown, project estimated to be at least 200 man years.

    p2.jpg (106846 bytes)      104KB

4. Honda Motor Co. showed the original P1 android at Robodex 2000.  It is 1.915 meters tall and weighs 175 Kg. Here is a link to 100 pix from Robodex 2000.  Fortunately, you can understand a picture in any language. Honda aparently built 7 experimental walking robots BEFORE P1.  Here is a link to E0 - E6.

   honda_monster.jpg (32270 bytes)  

    The original P1.

5. Sony (Tokyo, Japan) has finally entered the field. (You may recall that I put them on the secret android projects page a long time ago.) Sony has built a small WALKING android which they call SDR-3X.  It stands about 20 inches tall and is about 9 inches wide and 6 inches deep. The first press release was on November 21, 2000. Another article came out in Infoworld.   Four of these androids were  on display at Robodex 2000 in Yokohama the weekend of  (11/24/00 - 11/26/00).

  801038.jpg (16716 bytes)  bk23robot1.jpg (9203 bytes)


6. Jouhou System Kougaku laboratory at Tokyo University has a new project called H7.  Its another biped similar to H6. Another H7 link. (<=New link)

 H7_04.jpg (18248 bytes)   H7_05.jpg (13197 bytes)

   H7 is clearly very similar in size and capabilities to H6. They have an 18Meg video of H7 walking at the Kawada Industries airport where the above pictures were taken. 

7. Jouhou System Kougaku laboratory at Tokyo University has a project called H6.  Its similar to H5.

h6_02.jpg (17253 bytes)  h6_05.jpg (29095 bytes)  

H6 is 1.37 m (4'6") tall, about .59 m (23") wide, and weighs 55 kg (121 lb). It has 35 DOF.

Note:  Saika and H5 have been moved to the Historical Android Projects page.

8. Kawada Industries Inc. has introduced the HRP-2P for Robodex 2002.  This humanoid appears to be very impressive. It is 154 cm (60") tall, weighs 58kg (127 lbs) and has 30 DOF. Here is a news release. Notice the LACK of a battery pack.

   hrp-2p_1.jpg (15553 bytes)     hrp-2p_2.jpg (11072 bytes) 

9. The Aircraft and Mechanical Systems Division of Kawada Industries Inc. built the H7 android for Univ of Tokyo. They have now started a project of their own using some of the same technology from H6 & H7. Its called Isamu.

isamu1.jpg (35391 bytes)     isamu2.jpg (127611 bytes) 

Isamu is 1.5 m tall and .6 m wide and weighs about 55kg.  It has 32 DOF and you can see that the head is more anthropomorphic than H6 or H7.

10. It appears that there is a big android project going on at Institute for Applied Mechanics at the Technical University of Munich (TUM). Their android is called "Johnnie" and it can already walk. They are now trying to make it RUN. This means there are two major projects in Munich. Johnnie was on display at the Hannover Fair this spring. They have two videos on their site.

Johnnie2_Munich.jpg (129180 bytes)      

11. Japan Science and Technology Corp   (Kyoto, Japan) has recently    revealed a 5 year project to build a humanoid robot. This project began in October of 1996. The project leader is Dr. Mitsuo Kawato and they have a staff of about 18. Their humanoid robot is called DB (see below). They announced this project publicly on June 24,1999.

  JST_DB.jpg (33179 bytes)     32KB image

12. Hiroaki Kitano of Kitano Symbiotic Systems (Tokyo, Japan) which is a subsidiary of Japan Science and Technology Corp (see the entry on the left - #11) which is in turn funded by the Japanese government is building an android which he calls SIG (Symbiotic Intelligence Group). The photo below shows SIG and Tatsuya Matsui.  Kitano has challenged the world of android builders.  He believes that his android will be the archetype.  We shall see about that. By the way, they are looking for people to join their project.

  new_proj.jpg (45399 bytes)   sig2.gif (54289 bytes)   

     Matsui-san and SIG

13. Hiroaki Kitano of Kitano Symbiotic Systems (Tokyo, Japan) which is a subsidiary of Japan Science and Technology Corp which is in turn funded by the Japanese government is building an android baby called Pino. Pino has 29 motors and stands about 75 cm (30") tall and weighs 8 kg. Here is a link to a Time Magazine article. A new Pino link I recently found.   WOW! Kitano is now giving away software and hardware designs which were used for Pino.  Just go HERE and sign up.

    pino2.jpg (8605 bytes)  Pino - 8KB

SIG design link

PINO design link.

14. Early in October of 2001, Kitano Symbiotic Systems announced another project called "Morph".  This little android is unique in that it uses the Bluetooth wireless communication protocol to pass commands to the android and to send feedback from the android back to the main computer. Here is another article.  Murata is a co-developer in this project.  Morph has 26 DOF and stands about 13.6" (35cm) tall.  My best source, Gianluca sent me some links with pictures.        

morph2.jpg (9255 bytes)   morph3.jpg (7564 bytes)

15.  Waseda University Humanoid project (Tokyo, Japan) Their android is about 6 feet tall and weighs over 600 pounds.  It can       walk, but just barely. Both this android and Honda's android were featured on the PBS program called "Robots Rising" which aired three times in March, 1998. The Waseda Humanoid project is composed of six groups:

Below are images of Hadalay-2 and Wabian.

hadaly2.jpg (155913 bytes)    wabian.jpg (138219 bytes)       152K                       135K

16.  Waseda University Humanoid project has another project called " Wendy ".  "Wendy" is similar to Halady.  It has a total of 52 DOF.  Beware that their text is in white, so it won't print out correctly - at least on a color printer.  Here is a picture of Wendy.

   wendy.jpg (47007 bytes)      Image is 42K.

17. Now Waseda University has another project called iSHA. This humanoid has 26 DOF which are mostly driven by electric motors. It can operate autonomously for 2 hours. WOW! Very impressive!

isha.jpg (215256 bytes)     iSHA.

18. Waseda has another project (which I finally found) called Robita. It is designed to conduct conversions with people.  They have several movies on Yosuke Matsusaka's page. This project has been active since June 1999.

(* NEW *)

robita_waseda.jpg (37073 bytes)  Robita

19. Waseda University also has a project called Wamoeba.  Its being built at the Sugano laboratory. It seems there has been 3 versions since 1995. The picture below is the latest - called Wamoeba 2Ri. (If Waseda doesn't want this picture shown here - send an email and I will remove it).

   wamoeba2ri.jpg (11379 bytes)   Wamoeba - 2Ri

20. The Electrotechnical Laboratory  in Tsukuba, Japan   is building a humanoid at the Humanoid Interaction Laboratory under the direction of professor Yasuo Kuniyoshi. Their humanoid will be about 5 feet tall and weigh about 60 Kg (132 lbs.). They have been working on the project for about 2.5 years and have a staff of about 10 - 20 depending on who you count.

            etl_human.gif (8324 bytes)      

20b. The ETL has finally revealed their latest android who is called Jack, which may change to the ETL humanoid. Their android has cost way over $1,000,000 - and its still not finished yet.  Jack was also featured in this month's Wired Magazine article about Androids. (Sept. 2000, pgs 252 - 272).  The legs are just barely visible in the background. Gordon Cheng just sent me another picture of "Jack" and a link to a nice article. Jack has 46 DOF.

ETL_new.jpg (56990 bytes)   Jack_etl.jpg (54551 bytes)

     56KB                       53KB

   The new picture (above right) shows the fully assembled android. WOW!

21. Tohoku University also has a bipedal walking robot project.  This project is under the direction of Prof. Takashi Emura at the Emura Laboratory.   They have 4 professors and about 20 students. Their goal is to build a human-type autonomous robot.  They have been working on the project for at least a year. Below is an image of their bipedal walker - called Monroe after Marilyn Monroe.

   monroe.jpg (17426 bytes)   17KB image

22. Tohoku University now has another project called "Saika3". This android looks alot like the Honda androids. It is 1.27m tall and .5 m wide and weighs 47Kg.  Saika3 has 30 DOF

saika3-group.jpg (86587 bytes)

Saika-3 Group 

23. Toyota Motor Company has joined the competition to build a working android. I found a tiny announcement in Business Week Online (March 19, 2001) which stated that in December of 2000, Toyota kicked off a project to develop a biped/home robot. This is great news!  Now we have another major player and I'm sure we can count on seeing their robot soon. They have had 14 months to work on it.  (* NEW *)
24. The Korea Institute of Science and Technology now has a second android project.   It is being developed under the auspices of the AI and Multimedia Laboratory on the Taejon Campus in Taejon, Korea.

kaist2.jpg (42576 bytes)


25.  A Humanoid Robot System is being developed at the Advanced Robotics Research Center of the Korea Institute of Science and Technology in Seoul, Korea. The goal is to build a human-like autonomous robot. They have 20 movie clips. The name of this project is CENTAUR - after the half-human half-horse from Greek mythology - and it has 4 legs. Current staff is 14. The picture below is the human upper body part.

centaur.jpg (57614 bytes)  centaur2.jpg (30431 bytes)

26. The Shadow project  (London, England) This group is developing a humanoid bipedal walking machine.  They also have several products for sale.   Their staff includes about 14 people. Below is an image of their bipedal walker.

          shadow.jpg (212893 bytes)     208K

27. Osaka University has a bipedal walking robot project. This project is under the direction of Prof. Junji Furusho at the Furusho Laboratory. They have at least 20 total participants. Below is an image of their bipedal walker - called Strut. 

   strut.jpg (14450 bytes)  14KB image

28. Massachusetts Institute of Technology - the COG project   Cambridge, Mass, USA   This project is developing a humanoid too.  Their humanoid has a head with four eyes (two for close up and two for distance), two arms and a torso, but it has no legs yet. They have two professors and about 7 students.  They also claim about 10 alumni. The project leaders are Rodney Brooks and Lynn Stein. Some of the best pix of COG are on Rodney Brooks home page. Below are images of COG and a close-up of its head (with 4 eyes).

 cog1.jpg (9652 bytes)   coghead.jpg (24442 bytes)                                      

28b.  The MIT leg lab has built a set of legs which is intended to be married to the COG torso soon. The legs, called the M2 project, are featured in this month's Wired Magazine article about Androids. (Sept. 2000, pgs 252 - 272).

     MIT_M2.jpg (113179 bytes)     111KB

29. MIT has a new project called Coco. It is supposed to be a small or perhaps a baby gorilla. It has 15 DOF and weighs about 20 pounds. Coco  is about 12" (30 cm) square.

coco-front1.gif (92534 bytes)   coco-top.gif (34414 bytes)  

30. Chalmers University in Goteburg, Sweden has 3 projects now. They have the Elvis project which is now working with their second prototype, and a new small walking android called Elvina.  Their staff is about 13.

elvis_new.jpg (31557 bytes)   elvina.jpg (55663 bytes)

   Elvis #2                  Elvina

31. Chalmers University also has a full scale android project called Priscilla which was started in the summer of 2000. She is based on a full sized skeleton of a human. She will be powered by hydraulic cylinders.  You can see that she has binocular vision.

priscilla.jpg (150967 bytes)    Priscilla.

32. National Institute of Advanced Industrial Science and Technology in Tokyo (AIST) supports 15 research institutes throughout Japan including the 8 in Tsukuba Science City north of Tokyo. They are sponsoring a humanoid project which was begun in 1998. They actually have a large number of projects.

HRP_ETL.JPG (41062 bytes)   walker_etl.jpg (48202 bytes)  

Above we see a P3 and on the right are the legs of HRP learning to walk.

33. Yokohama National University has a bipedal walking robot project too. This project is under the direction of Prof. Atsuo Kawamura at the Kawamura Laboratory. They have at least 5 staff members. Their goal is to build a human-type autonomous robot.  They have been working on the project for at least a year. Below is an image of their bipedal walker.

   kawabiped.jpg (19691 bytes)    19KB image

34. The Korea Maritime University of Pusan, Korea has a major bipedal android project under way. It looks quite similar to some of the Japanese projects such as the Tohoku University project (see #17 above).  Here is the link - in Korean or English.

korean_3rdbiped.jpg (14358 bytes)      

35. Here is the "Headless Horseman" of the Castrol Motorcycle company of Pangbourne, UK.  The robot was actually built by Stahle Gmbh of Neuhaussen, Germany.

Headless_Castrol.jpg (26154 bytes)     

This robot has two arms and two legs and is mounted on the motorcycle.

36. A Chinese android was announced December 1, 2000. This android is 1.4 meters (55 inches) tall and weighs 20kg (44 lbs). It was built at China Science and Technology University for National Defense in Changsha, Hunan, China. Aparently they built another android back in 1990. They say "Pioneer" can walk and speak in several languages. See above article for details.

   china_robot.jpg (14271 bytes)   Pioneer (14KB)

37. Tsinghua University in Beijing, China has a bipedal humanoid robot project called THBIP-I.  This project is several years old.  Here is one news article.   Here are a few papers I found:

[1] “The Biped Humanoid Robot THBIP-I” Li Liu, Jinsong Wang, Ken Chen, Jiandong Zhao and Dongchao Yang (Tsinghua University, China)

[2] “Gait Planning of Humanoid Robot Based on Anticipant ZMP Tranck” Dongchao Yang, Li Liu, Jinsong Wang, Ken Chen (Tsinghua University, China)

[3] "A New Method of Gait Generation for A Biped Walking Robot" Kai Xu, Ken Chen, Jinsong Wang, Li Liu, Dongchao Yang, Jiandong Zhao
Institute of Manufacturing Engineering, Tsinghua University, China

38. Kumoh National University of Technology in Seoul, Korea has a project which is building a miniature humanoid robot. It is being built by the mechatronics group which is part of the mechanical engineering department. They claim that their humanoid robot can walk up and down stairs. WOW! Here are a couple of papers I found.

[1] Y. W. Sung, and S. Y. Yi, "A miniature humanoid robot that can walk up and down stairs", Proc. of International Symposium on Robotics'2001, Seoul, Korea, 2001

[2] Y. W. Sung, and S. Y. Yi, "The Development of a Miniature Humanoid Robot System", Proc. of International Symposium on Robotics and Automation 2000, Monterrey, Mexico, pp.133~138, 2000

39. The Institute of Measurement Science at the Bundeswehr University of Munich (Germany) has a big project called Hermes. My appologies to them for not listing them long ago. This project has been going since 1996. The principal investigator is Rainer Bischoff and there are 7 other staff members and about 35 past staff and students who have worked on the project. They have made good progress.

hermes.gif (51508 bytes)   hermes_body.gif (43553 bytes)  

40. Vanderbilt University School of Engineering has a humanoid robot called ISAC under development.   This project has four professors and 23 students. The project has been under way for about 5 years.Their current goal is to enable ISAC to learn from his own experiences and to interact with people in a natural way. Ultimately, ISAC will be an in-home care- giver for the elderly or infirm.  The Director of the Center for Intelligent Systems is Prof. Kawamura. Their staff includes Profs. Peters, Wilkes, Biswas, and Gaines.

          ISAC4.JPG (46768 bytes)  46KB image

41. Carnegie Mellon University (CMU) and the University of Pittsburg started a major project called the Nursebot, with a $1.4 million grant from the National Science Foundation.  This appears to be huge because they have as many as 50 people working on various parts of it. They seem to have two prototypes: Pearl and Florence. Its about 4 feet tall.

nursebot.jpg (46354 bytes)   50 KB

42. Tamim Asfour, a grad student at the University of Karlsruhe (Germany), is part of a major project which is building a humanoid called ARMAR. Number of staff: unknown to me.

     armar.jpg (127355 bytes)    

    ARMAR - 124K

43. The ProtoAndroid project (Austin, Texas) This project is financed by the Faustex Systems Corporation, whose founder and president is David Santos. This project has been under development since at least 1992.  It is  6' 4"  tall and weighs about 300 pounds. Size of staff is about 5. They have also built the H2 martial arts robot shown below. 

          h2robot.jpg (119199 bytes)    116K.

44. Thailand now has its first android project. King Mongkut's University of Technology at Thonburi is building an android too.

Thailand.gif (21086 bytes)  

45. Started in 1996, Aandroyds Inc offers a line of 2, 4, and 6 legged machines for sale. The machines are designed for home, office, and industry, with custom lab and space models available. Find them at
46. Dr. Jennifer Best at UCLA is leading a new android development project . Their main web link may not work because their server is down. You might try this one. With a major school like UCLA backing this project, I'm sure we can expect great things.














Androids - The Greatest New Industry of the 21st Century

March 2005

     The Android World business plan is not an offer or solicitation to buy or sell securities. The information contained on this website has been compiled from sources believed to be reliable, but its accuracy is not guaranteed. This is not a solicitation to buy or sell securities and does not give investment recommendations. This website may not be construed as investment advice. Investing in securities is speculative and carries a high degree of risk. Past performance does not guarantee future results. Independently investigate and fully understand all risks before making any investment.

  • Contact:      Christopher R. Willis, President
  •                    3311 Santa Monica Dr.
  •                    Denton, TX., 76205, USA
  •                    Telephone: 940-783-1364
  •                    Cell phone: 940-594-6840






This business plan was developed to introduce Android World Inc. to all interested parties. It also explains how future funds would be used to complete product development, begin manufacturing operations and implement the marketing plan detailed in this document..


Android World Inc. was originally founded in 1998 in Delaware as a normal corporation. It was incorporated in Texas in 2001 (again as a normal corporation). The principals, Christopher R. Willis and Jennifer O. Fung, own 100% of the assets. The company is headquartered in Denton, Texas. The business operates as a developer, manufacturer, distributor, and retailer of androids, android parts, and android software which are marketed under the name of Android World Inc. and Android World. The principals believe that androids will greatly enhance the quality of life of people across the country and indeed around the world by providing the in-home labor to perform the countless mundane tasks which must currently be done by the head of household and their spouse (if any).


Androids are robots which look like humans and have similar intelligence and abilities.

Androids will satisfy market demand for relief from endless mundane, boring, tiring, and time-consuming tasks around the home (or apartment). Androids will be capable of performing most common household chores such as cleaning, dusting, vacuuming, washing, drying, setting and clearing the dinner table, sweeping, painting, replacing light bulbs, and so on. In addition, the androids will function as round-the-clock security guards capable of phoning the police or fire departments in case of emergency.

Our initial market niche consists of home owners or apartment dwellers who wish to enjoy more free time - and the additional personal security which androids will provide by virtue of their constant vigilance against fire or burglary.

This market currently is devoid of actual available androids but numerous companies are striving to develop them. Honda Motor Company, Kitano Symbiotic Systems, Fujitsu Corporation, NEC corporation, and Sony Corporation, all of Japan are the current leaders in this field. Toyota Motor Company has recently (December 2000) joined the field. (See sidebar on left). They will be Android World's closest competitors. Androids are clearly a new high tech product. As such, we expect them to follow a similar market penetration pattern as have other high tech products in the past - most notably personal computers, cellular telephones, and the internet.

Our market potential is enhanced by the existence of complementary products, namely - the presence of home computers and the internet in nearly all middle and upper class homes and apartments not just in the US but also in Europe and Japan.


The key points of our marketing plan are:
1. Complete development of our initial android model
2. Publicize the android through the media and appearances 
   at trade shows
3. Sign up franchisees to both invest in our company and 
   distribute our androids
4. Attract sufficient investor interest to allow ramp-up 
   of a significant manufacturing capability

Most of our sales will come from franchisees and internet marketing.

We have been marketing the following products since December 2000.


      Product                                  SINCE:
1. Android Touch Sensor Board                 December 2000
2. Animatronic/Android Eyes                   December 2000
3. Gyro/Accelerometer Board                   December 2001
4. Animatronic Head (skull & skin)            July     2003
5. 90 MB Artificial Intelligence CD           October  2003
6. List of all Bird species in the world      August   2004
7. List of all Mammal species in the world    August   2004
8. List of all Dinosaur species in the world  August   2004

We are currently preparing to release the following products.


      Product                                 PLANNED LAUNCH:
1. Complete Android Head                      Fall   2005
2. Natural Language Processor                 Fall   2005
3. Android Hands                              Summer 2005
4. Android Knowledge Base Software            Spring 2006
5. Fully functional android                   Spring 2006

We will invest in market research and product development to continually improve our androids and launch follow-on products. Follow-ons will be introduced into developed markets before existing products enter the declining stage of their life cycles.

We expect to have several products and a small number of showrooms open within the next three years.

The following table shows our product development strategy in terms of product life cycles.

2006                 A            
2007                          A
2008                 B                  A
2009                          B                    A
2010                 C                  B
2011                          C                    B

A. In home domestic helper android called Valerie. 
B. Male android called Eric. 
C. Space assembly worker called Apollo.

Androids will comply with EPA & FCC regulations with respect to emissions. In fact we DO NOT anticipate any significant emissions of any kind.


The principals are uniquely qualified to nurture this opportunity, and we will seek legal advice and the advice of external consultants to assist in management decisions and other decisions requiring specialized expertise.

Our near-term business objective is to proceed with our product development and to operate at a minimum loss until the business reaches breakeven sales, which is projected to occur in the Summer of 2005.

So as not to jeopardize cash flow during the emergence of the business, the principals will forego salaries from the company over the next 18 months.

We will also work at home, subcontract manufacturing and production rather than invest in plant and equipment, emphasize internet marketing and solicit investors via the internet and SEC Regulation-A at some later date.


Looking further ahead, we envision the android business rivaling the automobile business in size and importance. Just as in any major industry, we believe that numerous android manufacturers will join the field as the popularity of androids grows and the general population recognizes their value. We expect that the impact of androids will be every bit as important as the impact of automobiles or computers or the internet.


Within two years we plan to develop a successful domestic android capable of performing common household chores without supervision in a manner very similar to the way humans perform the same chores.


We have made good progress over the past two years, as follows. 
o Established the premier android website in the world. 
o Completed development of our initial products. 
o Applied for the several patents which will protect our 
  exclusivity throughout the world. 
o Arranged for subcontractors to manufacture major components 
  of our products. 
We are now planning to implement the following steps:
o Complete the final phases of product development and advance 
  immediately into the publicity phase of our marketing plan.
o Augment our team of quality people.
o Ramp-up manufacturing and produce sufficient inventory to 
  meet initial orders and anticipated demand resulting from 
  our planned marketing activities. 
o Aggressively develop sales via a network of franchisees and 
  internet marketing.
o Appear on talk shows.
o Exhibit the android at robotics conferences and COMDEX.
o Get signed contracts from our existing list of interested 
o Generate sales through the use of direct response marketing 
  and our existing database of prospective customers.

Within the next 18 months we are planning to:
o Launch several new products as listed above.
o Sign up numerous franchisees and open several showrooms to 
  help popularize androids and generate sales.


The financial investment and personal labor the principals have invested in the business during the past four years have directly contributed to the present opportunity.

Since the spring of 2001, we have operated at a small loss funded entirely by capital invested by the owners. Total investment by the principals before 2005 was about $100,000 plus countless hours of labor. 


                              2004       2005       2006        2007         2008
Net sales                   $24000     $100,000  $1,000,000  $5,000,000  $10,000,000
Gross profit                $12000      $30,000   $300,000   $1,500,000   $3,000,000
Gross margin                   50%        30%        30%        30%          30%
Net income after tax        $12000     $25,500    $180,000    $975,000    $1,800,000
Profit margin after tax        -         25.5%       18%        19.5%        18%
Assets                     $130,000    $500,000  $1,000,000  $2,000,000   $4,000,000
Equity                      $50,000    $400,000    $800,000  $1,600,000   $3,200,000
(exclusive of intellectual property)
Return on equity               -        6.375%      22.5%      60.9%         56.25%
Return on assets               -        5.1%         18%       48.75%        45%
Debt-to-Equity Ratio           0        1 : 4       1 : 4      1 : 4        1 : 4
Debt Ratio                     0         20%         20%        20%          20%

USE OF FUNDS: ($500,000)

Professional fees, consultants               $100,000
Marketing campaign for launch                 $25,000
Working capital (incl. cash reserve)         $125,000
Plant and equipment                          $250,000
Total                                        $500,000

Our most likely case projections describe a vigorous growth business from which the investor can quickly derive excellent returns. The initial infusion of $500,000, assumed from the first month of 2005, is based on 500,000 shares of common stock at $1 per share, which represents about 95% of assets exclusive of intellectual property. The infusion includes working capital and a reserve to meet unexpected demands on cash and maintain some flexibility. The principals are confident that these funds are adequate for the business to reach positive cash flow in the second quarter of 2005 and operate at a profit from that point forward.



The principals believe that, next to our customers, our intellectual property is our most valuable asset. Hence, protecting our intellectual property will be a top priority for our management team and every employee or strategic partner of Android World. We intend to employ a patent attorney at the earliest opportunity.

We will share technical information in "Quality Circles." Groups consisting of management, staff, strategic partners will meet regularly to review operations and discuss ways to improve the quality of our current products and services; develop new products and services; develop our manufacturing, production, and delivery processes; control costs; improve relationships with suppliers, distributors, dealers, and with our customers.

We believe that our information-integrated operation will result in the following benefits to the company:

o Highly involved and motivated people; minimum staff turnover.
o Maximum productivity and cost efficiency.
o Maximum inventory and receivables turnover 
o Positive cash flow 
o High product quality. 
o High customer satisfaction. 
o Maximum profitability.


Christopher Willis and Jennifer Fung have excellent managerial and technical skills.

Christopher R. Willis, President & CEO

Mr. Willis holds the following degrees: Bachelor of Mathematics, Bachelor of Physics, and Master of Science in Computer Science. He has over 20 years experience in computer programming in a variety of languages. He is familiar with several operating systems and computer platforms.

Mr. Willis has researched and developed the Android World website over the past seven years. It is easily the finest android website in the world. He is familiar with many of the projects which are being developed around the world and knows their strengths and weaknesses.

Mr. Willis holds US patent 5,305,974 which is entitled "Spaceship Propulsion by Momentum Transfer" and has written five books including a book about the development of space called "JOBS for the 21st Century". He also maintains a website detailing manned missions to the outer planets.  He published the first practical manned mission to Jupiter in 1992.

Mr. Willis is currently involved in all aspects of the development of the Valerie android. He designed and built the android head which we are soon to offer.

Jennifer O. Fung, Treasurer & CFO

Ms. Fung holds the following degrees: Bachelor of Science in Accounting and Master of Business Administration. She is also a Certified Public Accountant and a Certified Government Financial Officer. She has over 20 years experience in accounting and taxation. She was an assistant professor at Hong Kong Polytechnic University and at Centenary College in New Jersey. She taught accounting and taxation for 11 years.

She has also worked in government for seven years. She was assistant finance director for the City of Haltom City a suburb of Fort Worth, Texas and is currently Finance Director for the City of McKinney, Texas - a post she has occupied for about four years. She directs a staff of 35 in McKinney.


To help us make the best management, marketing and legal decisions, we will seek expert advice from professional advisors as follows.

Management Consultant
Name:     Regis Serrat
Address:  1124 Plantation Court #B
          Las Vegas, NV 89117

Phone:    702-379-8991
Robotics Consultant
Name:     John Bergeron
Address:  83 Meadow Rd.
          Milton, VT., 05468
Phone:    802-893-4618
Marketing Consultant
Name:     To be determined.

Legal Counsel
Name:     To be determined.

Compensation for these consultants will be on a hourly basis.


We plan to operate, at least initially in strategic partnerships with service companies, consultants and subcontractors in order to reduce our product development time and costs. We will also sell franchises in order to expand our sales force at low cost and to help to sell our androids.

Four principles will guide our strategic partnerships.

1. Trust. In addition to contributing physical and human resources, each partner will contribute knowledge and information to the venture. To eliminate constraints, all partners will sign non-disclosure and non-circumvention agreements.

2. Information-Integration. A feature of our partnerships will be network communications and Quality Circles. Partners will meet regularly to measure progress and to help develop products and to improve our processes.

3, "High Product Quality." We will establish very high standards on all goods and services contributed by partners as well as on promptness of delivery. Pursuing perfection will reduce rejects, save time and directly impact customer satisfaction.

4. Customer sensitivity. We will regularly canvas our customers for suggestions of ways to improve our products and services. And we will also ask them for suggestions for new products and services which they would like to acquire.


Name of company:   Advanced Communications & Controls
Contact:           Regis Serrat
Address:           1124 Plantation Court #B
                   Las Vegas, NV 89117

Phone:             702-379-8991
Contribution:      Management expertise. Electrical engineering 
                   design and PC board manufacturing capabilities.

Terms of arrangement: project basis.

Name of company:   Matrix Metals Manufacturing
Address:           2097 McGee Lane
                   Lewisville, TX., 75067
Phone:             972-317-7679
Contribution:      Sheet metal fabricating capabilities.

Terms of arrangement: project basis.

Name of company:   Kit Model Design Ltd.
Contact:           David Ng
Address:           8680 Seafair Dr.
                   Richmond, Vancouver, BC,

Phone:             604-272-0886
Contribution:      Mechanical engineering design and manufacturing 

Terms of arrangement: project basis.


Some of the company's key posts have been filled. Those remaining are so indicated in the following table. Based on our business-development plans, these posts will need to be filled on the dates indicated in the table.


President and Chief Executive Officer
Christopher R. Willis
Ownership:  100%
Salary: $0
CEO TASKS: Gather, organize, and direct the use of any and all 
information that can advance the company's success in all areas 
of operations. Supervise product development.
Chief Information Officer 
To be filled by Summer 2005. Currently being performed by C.R. Willis
Salary:  To be determined.
CIO TASKS: Implement the successful evaluation, installation, 
integration, and maintenance of the company's information-gathering, 
-processing and communications network. Train management, staff, 
strategic partners, and customers in the use of our information 
Vice President Public Affairs
To be filled by Summer 2005
Salary:  To be determined
TASKS: Further the company's interests by keeping informed of all 
government and industry regulations affecting the company's 
operation. Stay in touch with regulating bodies and action groups. 
Work with lobbyists. Participate in industry association conferences. 
Keep abreast of all relevant journals, studies, and forecasts, both 
domestic and global.
Chief Operating Officer
Currently being performed by C.R. Willis
Salary: $0
TASKS: Coordinate all aspects of operations: R&D, manufacturing, 
production, distribution, sales, customer service. 


Vice President Manufacturing
Regis Serrat
Salary: $0
TASKS: Coordinate and supervise all aspects of the manufacturing 
and/or production process: plant layout, work cell design, materials 
sourcing, handling and just-in-time supply. Train work teams and 
integrate all human and technological aspects of manufacturing and/or 
production. Set work schedules and manage quality control.


Treasurer and Chief Financial Officer
Jennifer O. Fung
Salary: $0
CFO TASKS: Manage the company's financial affairs including inventory 
control and cash management. Set up accounting and billing procedures. 
Continuously track financial progress and update financial forecasts 
and budgets. Make sure we have the proper insurance coverage at the 
best price. 

CONSULTING STAFF    We currently have two staff consultants.

Consulting Electrical Engineer: Regis Serrat

Mr. Serrat holds the following degrees - Associate in Chemistry, Associate in Telecommunications, and Bachelor of Science in Electrical Engineering. He has over 20 years experience in business and manufacturing.   He has lots of valuable contacts in industry. He is an expert at designing and building PC boards. He built the two boards which Android World is currently selling (Touch Sensor Board & Gyro Board).   He is also very good at programming low level I/O interface routines.  Mr. Serrat has his own consulting company in California called Advanced Controls and Communications.  He also builds and flies model airplanes and is working on is pilot's license.

Consulting Robotics Engineer:   John Bergeron

Mr. Bergeron is a self educated robotics engineer. He has over 10 years experience building robots and specifically ANDROIDS.  Mr. Bergeron is also a very capable electrical engineer. He is working on a cheap absolute position sensor unit which we will be using on Valerie to measure cylinder positions. He is an expert at micro-controllers and programming them. He is familiar with many programming languages and operating systems such as DOS, Windows, ECOS, & Linux.  Also Mr. Bergeron has his own website and his android called Tara has been featured on our personal android projects page since its inception.

Other staff

Initially, we will need a staff of four people to support our operation. Staff will be expanded only as justified by growth. Staff will be remunerated on a salary plus stock options basis. Stock options are intended to reduce current salary costs and help to optimize productivity.


                  2006    2007     2008     2009     2010
Attorney            1        1        2        4        8
Engineer            1        1        2        2        4
Programmers         2        2        4        8       16
Staff payroll     $90K    $220K    $440K    $880K   $1756K

Android World will NOT be a union shop.


Sales to franchisees will be handled directly by our management team.

The following table shows our projected sales force strength for five years. Sales personnel will be remunerated on the basis of base salary plus commission plus stock options.


                        2005    2006    2007    2008   2009
Franchisees               0        8      16      32     64
(no salary)
Average commission       $0      $2K     $2K     $2K    $2K
(per unit)
Service personnel         2        4      16      32     64
(hourly as required)
Average salary         $30/hr  $33/hr  $36/hr  $39/hr  $42/hr

Field personnel will use their own cars instead of company-leased cars.

Total projected payroll for management, operations, and sales 
                     2006    2007    2008    2009     2010
Management payroll   $50K    $50K   $100K   $150K    $200K
Staff payroll        $90K   $220K   $440K   $880K   $1756K

Payroll taxes and benefits are estimated at 15%. Annual salary raises are estimated at 5% per year.



Consistent with our management philosophy, Android World will operate with a flat, flexible structure. Strategic decisions will be made by the management team with the assistance of our professional advisors and strategic partners. Emphasis will be on marketing, which includes product development and production and manufacturing (our manufacturing plan is detailed at the end of Section II). Day-to-day decisions will be made by the individuals responsible for our marketing operation, which integrates the following activities:

1. Product Development (R&D)
o Design packaging, merchandising and promotional materials.
o Identify reliable sources of supply for components. 
o Set up just-in-time delivery schedules with suppliers.
o Design work cells for manufacturing, including selection of 
  production equipment 
o Determine production cycles to meet market demand.

2. Production  & Manufacturing:
o Purchase components.
o Hire sales staff
o Train sales staff
o Manufacture products to specifications provided by R&D. 
o Prepare to distribute our products to the showrooms and 

3. Order Fulfillment:
o Design and implement sales, merchandising and promotions 
  strategies and campaigns.
o Develop sales to franchisees and end users.
o Develop and implement customer service and aftercare programs.
o Track customer satisfaction and feed information to R&D.

4. Total Quality Control:
o Establish zero-defect standards for all goods and services.
o Establish achievable just-in-time schedules with suppliers.
o Design and implement training programs to facilitate quick 
  product repairs.
o Develop diagnostic systems for locating and eliminating 
  problems in our androids.
o Continuously monitor customer satisfaction and recommend 
  improvements to product quality, manufacturing proesses, 
  and customer service.



Androids are robots which look like humans and have similar intelligence and abilities.

Here is our Valerie android.

      valerie.jpg (21655 bytes)   Valerie

Your android will listen to your commands and do what you ask it to do - if it can (and within certain limitations). The android will speak to you in English (or several other languages).

This android is capable of basically the same muscle actions which all (normal) humans can perform. This android is intended to function as a domestic servant. It will perform most of the mundane tasks around the home which now take up so much of our time. This will therefore give us humans more free time which we can enjoy as we wish. Examples of the tasks which Valerie will be able to perform are:

  Cleaning, Dusting, Clearing the table,  Setting the table,  
  Doing laundry,  Washing dishes, Sweeping, Picking up stuff, 
  Putting stuff away, Vaccuuming, Painting, Cleaning windows

The android will also function as a 24 hour a day security guard because it doesn't need to sleep like we do. It will also be capable of calling the police in an emergency or the fire department in case of fire.


Our consumer market fits the following profile.

SEX:  either but females may tend to buy more.
AGE:  adults
OCCUPATION:  any occupation
INCOME: middle income and up.
EDUCATION: better educated.
MARITAL STATUS: any - but may be more popular with single head of 
HOUSEHOLD: any - but more likely as number of children increases.
DWELLING: any except low income housing.
FAMILY ROLE: decision-maker or head of household

ATTITUDE/ PERSONALITY: anyone who longs for more free time.
MOTIVATION TO BUY:  android will give you more free time and 
   security for your home.
VALUES: anyone who longs for more free time.
ENVIRONMENTAL CONSCIOUSNESS: very low environmental impact
WORK ETHIC: busy or active lifestyle.
CHARACTER: willing to try out new high-tech products.

ASSOCIATIONS: nearly any.
RECREATION: those who are more active should tend to be more 
   likely to buy.
HOBBIES: those who are more active should tend to be more 
   likely to buy.
BUSINESS TRAVEL: those who travel more should be more likely 
   to buy because of the security aspects.
DRIVES: higher income seems more likely to buy.

Our typical customer can be characterized as follows: o trendy, middle to upper-middle-income urban and suburban active individuals who are looking for more personal free time


Android World will immediately begin to close sales among the following prospects.


  • K. Carmody
  • J. Casale
  • J. Greenidge
  • J. Prince
  • M. Ridley
  • D. Ramano
  • P. Soldex
  • you?


Our perceived market (for androids) is based on several factors: the very real need for personal assistants in the home (or apartment), the growing popularity of robots around the world, and the popularization of androids by various media including movies and the internet.

According to the Japan Robot Association, health care robots will reach sales of $250 million per year by 2005 and $1 billion per year by 2010. Japan sold $5.7 billion worth of industrial robots in 2000 of which $3 billion were exported. Japan has over 4500 registered robot engineers. Since Japan accounts for about 50% of all robot sales, we can assume the world market for industrial robots was over $10 billion in 2000.

The android market is currently extremely limited. Only Honda motor company has an android which can walk very well. But, their android, Asimo, has very limited use as a personal assistant because the functionality of its hands is very low. In fact, critics have called Asimo "the most expensive light-switch flipper ever built". However, IBM's main office in Tokyo has reportedly leased one to roam its main lobby for the not insignificant sum of $166,000 per year.

COMPETITOR       PRODUCT        PRICE           USE
Honda Motor Co.  Asimo        $166,000 (lease) Promotions
TMSUK            TMSUK - 4     $45,000         limited assistance
Fujitsu Corp.    HOAP-1        $41,000         toy or research
Sony             SDR-4X        $40,000??       entertainment
NEC              Papero       not for sale     entertainment
Kitano Sym Sys   Pino          $48,000         research
                 Morph          ???            toy


Currently sales are so limited that you must contact each manufacturer directly to purchase a unit.


Android's name            Valerie                Asimo                 TMSUK - 4
Manufacturer           Android World      Honda Motor Company         TMSUK, Japan
Degrees of freedom         111                    24                       23
Height                  68" (173 cm)         48" (122 cm)             47" (120 cm)
Weight                  64kg/140 lbs         43kg/ 95 lbs            100kg/ 220 lbs.
Customer service   does household chores   for entertainment only          ???
Responsiveness          1)talks               1)talks                  1) talks
to customers      2)can understand speech  2)can understand speech
                  3)has sense of touch
                  4)interface to internet
                  5)can print data for customer
Price                 $25,000 - $30,000      Rental $166,000/yr       $45,000
R&D spending            $100,000??            $100,000,000??              ???
Freq of follow-ons       two years              18 months               2 years?
Brand awareness            low                    high                    low
Internet connected         yes                    no                      no
Financial resources        low                    high                    ??
Production costs           low                    high                    ??


No doubt many readers will be wondering how we think we can compete against the likes of Honda, Sony, NEC, Fujitsu, and Toyota or the big universities like Waseda University, Tokyo Institute of Technology and Massachusetts Institute of Technology. The short answer is we have different goals and plan to use different approaches. The long answers are below:

1. Autonomy. Honda has spent millions to develop a short-time autonomous android. We have decided to begin with a tethered android and follow with an autonomous one later when we can finance its development. Sony, NEC, and Fujitsu all have developed small androids which are not suitable as household helpers. The universities are not trying to build anything marketable.

2. Muscle actions (referred to as degrees of freedom = DOF). None of the above manufacturers have more than 40 DOF. Our Valerie will have 111 DOF. We believe this is why they have had so much trouble making their androids walk. Their androids are barely capable of it due to their limited muscle actions. Imagine trying to walk without using your hips.

3. Hands. Honda’s Asimo can do almost nothing with its hands. This makes it useless as a household helper. The others are not much better. We plan to emphasize the hands and provide useful working hands with 21 DOF each.

4. Programming language. We plan to program our android in English. This will give us the power of the English language. We claim there is nothing you cannot describe in English. It is self-documenting and modifiable by anybody - not just highly trained programmers - which means that each user can modify their android's behavior as they wish (except for certain areas which will be protected).

5. Bureaucracy. We believe that large companies get bogged down in committee meetings and lengthy decision making processes which greatly impede progress. From many years of experience in American business I can tell you that none of the companies I worked for listened to the workers. The managers all thought they had all the answers. I have seen numerous reports about Japanese businesses also being very unappreciative of inventors in their ranks. NASA has no interest in my spaceship propulsion system in spite of the fact that it is far superior to rockets. My propulsion system can carry a manned mission to Mars in 5 weeks or less and NASA's rockets take 8 months.

6. Internet. We plan to interface our android to the internet to allow it to search the world for answers to their owner's questions or to provide their owners with service. I have seen no mention of others planning to do the same.

7. Artificial Intelligence.  We plan to use as many different approaches as we can think of (contrary to the plans of several of our competitors). We will use: fuzzy logic, neural networks, databases, internet search engines, propositional calculus, and predicate logic.


Our Valerie android can be differentiated in the marketplace on the basis of physical capabilities and a high level of artificial intelligence. Our unique positioning will be Valerie's vastly superior capabilities and intelligence. Our android has 111 degrees of freedom (this corresponds to 222 muscles) whereas the highest previous count of degrees of freedom was 52 - for the "Wendy" project at Waseda University, Tokyo, Japan.


Android World's pricing strategy satisfies the following 
o Optimize the perceived value of androids, thus fostering 
  market acceptance
o Ensure maximum gross margin.
o Foster high volume sales.
o Keep manufacturing costs low.

Our pricing structure, shown in the following table, is based on the cost of manufacture of each product.

Current Product                             Ave. Unit Price
Touch Sensor Board                                $595
Animatronic/Android Eyes                          $750
Gyro/Accelerometer Board                          $695

Planned Product               Timeframe     Est. Unit Price
Complete Android Head         Fall   2005       $10000
Natural Language Processor    Fall   2005         $200
Android Hands                 Summer 2005        $2500
Android Knowledge Base SW     Spring 2006         $300
Fully functional android      Spring 2006       $35000

Retail pricing will be approximately three times manufacturing cost and wholesale pricing will be approximately twice the manufacturing cost. Our average gross retail margin in 2004 is estimated at 60% and gross wholesale margin is estimated at 30%.

Wholesale pricing will be available at very low volume due to the high cost of our products.

Our selling price will not include S&H. This policy is standard practice in most industries. Hence, our policy will be consistent with the customer's expectations.

We are confident that our pricing strategy is realistic, for 
the following reasons: 
o No other companies offer similar products to ours and therefore 
  there is no pricing precedent.  
o Competitors' prices are far higher for a lower quality product.
o We have received strong support for our product from 
  prospective customers.


Our android will appear as human as possible. We believe this will foster rapid acceptance of the android as a full member of the family. We plan to offer our customers the option of a customized face. We believe this will be very popular among those people who have recently lost a dearly loved spouse. Our manufacturing associate, David Ng of Hong Kong will handle the manufacturing of the customized heads.


We plan to open a small number of showrooms where customers can observe our androids and even talk with them. These showrooms will be in major cities such as New York, London, Paris, Tokyo, Berlin, and Moscow. Our major sales outlets will be franchisee owned stores. Since we don't have sufficient funds to open large numbers of outlets, we will endeavor to find franchisees who will each operate one or more retail outlets.


Customers will be attracted to our showrooms and franchise outlets by media publicity and public appearances by our Valerie android.


The floor plan will be designed for personal contact between the Valerie androids and the customers. Valerie will talk with the customers and explain what she can do for them. The sales personnel will simply sign up the customers.


The showrooms will have several sales personnel available to assist customers and to sign contracts for delivery and installation of the androids.


The franchisees will be given wide latitude as to how they set up their outlets.



Android World plans to organize an international network of franchisees. We plan to attract candidates at trade shows and via a media campaign. The franchise selling price will include marketing support, materials and advertising support, brochures, and a functional android for display. We estimate that approximately 80% of Android World's sales will be through franchise outlets.

Distributors will learn about Android World as follows:
o Direct internet marketing
o At trade shows
o Media publicity
o Personal appearances

We will provide franchisees with selling tools, including brochures, videos, and most importantly, a functional android fully capable of doing her own sales pitch. We will provide technical training to distributors and institute customer support programs which will be actively promoted in advertising.


We estimate that approximately 15% of Android World's sales will be direct to end users. These customers will be reached over the internet.

Prospects will learn about Android World as follows.
o Direct approach by franchise owners.
o Internet email sales campaign.
o We will exhibit at COMDEX in the US & Europe.
o We will exhibit at ROBODEX in Japan.


Direct sales out of our own showrooms and from trade shows is expected to account for 5% of revenue.

Consumers will learn about us as follows:
o Media publicity
o Direct mailings
o Personal appearances.
o Brochures picked up by walk-in customers.


Our marketing scope encompasses primarily the economically advanced countries. However, we expect limited sales in even the poorest countries. We plan to develop the market in stages. The response in each of the introductory areas will determine how fast we expand into the surrounding areas.


                                       2006    2007    2008    2009
Introductory showrooms                   x       x       x       x
Advanced countries franchise outlets     x       x       x       x
Developing countries franchise outlets           x       x       x
Introduction of a larger male android                    x       x


We plan to introduce our android at one of the major technology conferences such as COMDEX in Las Vegas or ROBODEX in Tokyo. There are numerous other COMDEX conferences around the world which we could attend - and will if possible. Currently we are hoping to present Valerie at the November COMDEX in Las Vegas.


Our research indicates that sales in export markets identified in the following table could account for as much as 60% of our total sales within 18 months. We have targeted these markets on the basis of their historical interest in robots.

MARKET                 IN PRODUCT CATEGORY             LANGUAGE
Japan                        40%                       Japanese
Germany                      10%                       German
United Kingdom               10%                       English

To develop these markets, we plan to open showrooms, form alliances with foreign companies, and sign up franchisees in these countries. We plan to enter these export markets in 2007.


Android World's most valuable asset is our customers. We are pledged to surpass the customers' expectations for quality of service.


To ensure fast processing of orders, we plan to sell to customers directly over the internet as well as from showrooms and franchisee outlets. The result will be faster service, enhanced value and more satisfied customers. Real time electronic accounting will speed collections of accounts receivable. Due to the high cost of our androids, we will be offering our customers financing arrangements.


Shipping will be via first class mail or parcel post for small products and via UPS for our androids. Our selling price will not include shipping. This policy is standard practice in many industries. There will be special teams assigned to install and train actual customers in the use of their android.


We believe that our androids will be so unique in the marketplace that we will have difficulty keeping up with demand. We plan to distribute our initial production to various showrooms to promote sales and satisfy franchise agreements.


Our industry has no standard practice with respect to returns and adjustments. Our policy will be as follows. We will unconditionally refund purchase price less S&H to any original purchaser for a period of one year should the customer be dissatisfied with their android.


Android World is committed to a program of ongoing improvement to our products. Our research and development strategy integrates the following activities.

1. Information Gathering

o We will rely on customer feedback to learn what features or 
  improvements the customer wants. Based on this information, we 
  will continually improve our products so we can introduce the 
  right follow-ons at the right times and reduce the risk of 
  substitute products cutting into our market share. 

2. Development

o Design and test new concepts and features. 
o Conduct focus group research to verify acceptance of Androids 
  and promotional strategies. 
o Determine production cycles to meet market demand. 

3. Marketing

o Design and implement sales, merchandising and communications 
  strategies and campaigns. 
o Develop and implement customer service and aftercare programs. 

4. Quality Control:

o Establish zero-defect standards for all goods or services 
  purchased for production. 
o Establish zero-defect standards for all goods or services 
o Design and implement training programs for sales and customer 
  service staff. 


All members of the staff will participate in the promotion and marketing of our androids.


The following tasks have been identified as critical to the introduction of our android as planned.

1. Complete the development of android subsystems (products) 
   listed above.
2. Complete a full Valerie android.
3. Prepare franchise agreements, brochures, videos, and other 
   sales materials.
4. Prepare brochures, videos, and other sales materials for 
   our grand introductory appearance.
5. Sign up franchisees.
6. Produce limited quantities of androids for franchisees 
   and showrooms.
7. Develop production facilities.


Uniqueness of the android business

The android business is unique in that OUR PRODUCT CAN MANUFACTURE ITSELF. This has never happened before in history. This unique position will enable us to keep our manufacturing costs very low.

We will use subcontractors for manufacturing as many subassemblies as possible. We estimate that 75% of the components of our android can be manufactured by outside vendors.

The following is a list of components, suppliers, and costs which would constitute one android.

Computers                    $3000   HP, Dell, Compac, Nucleus1
Pneumatic cylinders           $500   Clippard Inst. Labs, Fesco
Pneumatic Valves            $10000   Dynamco Inc., Fesco
Hydraulic Servo-Valves       $5000   Android World
Touch Sensor Boards          $1000   Android World
Force Sensing Resistors      $1000   Interlink Electronics
Gyro/Accelerometer Boards     $500   Android World
Video cameras                $1000   Micro Video Products,
Servo motors                  $500   Hobby People
Controllers & Other boards   $1000   Scott Edwards Elect., 
                                     Imagenation Inc.
Silicone products             $500   Circle K Products,   
                                     Burman Industries
Miscellaneous hardware       $1000   various sources
Proprietary components       $2000   Android World

Androids will actually assemble themselves. They will be positioned along an assembly line and each one will perform a limited number of tasks which will eventually result in the creation of other androids.


Forecast :  Income & Expense

Our pro forma income statement for 2005 is shown below and projected for four years.

Annual Summary             2005 est.      2006        2007         2008         2009   
Net sales                   $20000      $100,000   $1,000,000   $5,000,000  $10,000,000
Cost of goods               $10000       $70,000     $700,000   $3,500,000   $7,000,000
Gross profit                $10000       $30,000     $300,000   $1,500,000   $3,000,000
Gross margin                  50%          30%         30%          30%         30%
Net income after tax        $10000       $25,500    $180,000     $975,000    $1,800,000
Profit margin after tax        -           25.5%       18%          19.5%       18%
Assets                     $130,000     $500,000   $1,000,000   $2,000,000   $4,000,000
Equity                     #130,000     $400,000     $800,000   $1,600,000   $3,200,000