Transcript Document

RISOFT
BEYOND THE NEXT GENERATION
What Is Risoft
 Risoft is a company that is developing state of the art software which
provides solutions that are beyond the next generation
 Risoft has developed security, video and artificial intelligence products
 These technologies far surpass the competition by providing solutions that other
companies have not yet considered
 These technologies are protected by pending patent applications that will be pursued
world-wide
 These technologies are ready to launch and be brought to market
 The markets that they are targeted to currently generate revenue which
totals billions of dollars
Risoft’s Management Team
 Mark Corrinet, J.D.—Chief Executive Officer and President
Mark has over 20 years in senior management IT positions with Bank of America, First Nationwide bank
and private management consulting firms. Mark has built several successful businesses and currently
heads his own law firm. He holds degrees in political science, history and law.
 Vincent L. Gilbert—Chief Technology Officer and Chairman of the Board
Vincent L Gilbert is the founder, Chief Technology Officer and Chairman of RISOFTDEV , Inc. Vince has
been working with, and developing technology, for over thirty years with a wide range of applications. He
started his first company in the late 1970’s, which produced a retrofit kit for the then popular ARP
synthesizer. Continuing in technology Vincent has worked in the film industry developing technology for
on and off camera use, as the head of electro mechanical engineering for Health Devices corp. Vince also
has experience as the CEO for several companies, including Light Speed Dynamics and Applied Reliability
Devices Inc.
Risoft’s Management Team
 Jim Boucher—Chief Financial Officer
Jim is the co-founder and a registered investment advisor of Wilson & Boucher Capital Management, LLC, which
currently has approximately $100 million in assets under management. Jim worked as a corporate finance officer
for several different divisions of Wells Fargo Bank where he developed, analyzed and implemented a wide variety
of budgets based on corporate objectives. After leaving Wells Fargo, Jim shifted his focus to portfolio
management for high-net worth individuals.
 Peter Weinstein, Ph.D., J.D.—Chief Intellectual Property Officer
Peter is the Chief Executive Officer of One3 IP Management, which works with start-ups and small technology
companies. Before that he was the legal and IP lead for Baxter Healthcare’s key hemophilia products and
development programs. Dr. Weinstein previously worked at Goodwin Procter and Fish & Richardson ,where he
worked on behalf of clients in all technologies, including Microsoft, Cypress Semiconductor, Sandel Aviation and
others in the hi-tech and biotech/pharmaceutical industries.
 Grover A. Perrigue III—General Counsel
Grover founded Marshall and Perrigue PC ,where he is also Senior Counsel. He has over 30 years of experience in
corporate, business and civil litigation and in corporate legal management. Grover is also a co-founder and
partner in Baker International Insurance brokerage , which specializes in transportation insurance.
Risoft’s Technologies
 It all starts with security
 No matter how good your software or internet experience seems to be, if it is not secure,
you are likely to suffer great harm
ID and data theft are serious concerns
 A week does not pass without another story of a major security breach
40 million customers of Target have their credit and debit card data stolen
3 million Adobe users had their credit card and personal information stolen from Adobe’s servers
465,000 individuals with JP Morgan prepaid cash cards had their personal data exposed in a breach
NY Times hacked by Chinese hackers looking for information on sources who had spoken about the
wealth of China’s Prime Minister, Wen Jiabao
Mark Zuckerberg’s Facebook page hacked by a security researcher
Risoft’s Technologies
 Risoft’s technologies all start with state of the art security software that
exceeds the ability of the current offerings to ensure user protection
 Most security software from companies like McAfee, Kapersky and others generally just
provide protection against viruses and means of attack that have already occurred
 Two-step authentication security technology assumes that your computer and/or
smartphone have not already been hacked and/or hijacked
 The best Black Key Technology generally relies on an encryption key of a specific length
that is configured using hardware on a computer
The Technologies: Security Software
 Risoft has developed security products that provide comprehensive and
continued protection for your data and programs
 The security products providesprotection that exceeds those offered by the
current industry leaders
 They can protect your computer, your tablet, your smartphone, your car and
your home
 They rely on proprietary algorithms that run through a Black Key type
security program or through an AI
The Technologies: Security Software
 Risoft’s Black Key Technology
 It relies on an algorithm that allows for encryption keys that can be of any length
 It allows “Long Block Authentication”
 The algorithm provides a level of security greater than anything else on the market, other
than that used by the National Security Agency
 One feature of Risoft’s Black Key Technology is that the device to decrypt the key is not
located in the hardware,
Instead, it is kept on a fob or dongle in the user’s possession that is separate from the
device
As a result, if a smartphone, PC or tablet is lost, it cannot be decrypted
 It can be used in any device that has a computer
e.g. automobiles, home security, smartphone, tablet, PC, home entertainment
The Technologies: Security Software
 Risoft AI-based personal software protection
 Risoft has also developed security software that relies on recognition of an individual user
by Risoft’s AI
 This software uses Search Engine Optimization (“SEO”) black hat techniques wherein the
AI collects information that would only be known by a user
 To access a device or a program controlled by the AI, the user must provide answers to
questions posed by the AI and a Long Block Token, which is similar to a password
To ensure that access is granted only to the appropriate user, the AI can ask questions that relate to
activities undertaken recently by the user that involved the AI
This step by step level of authentication ensures that only the user is able to access a device or
program
 If during the authentication process, the AI suspects that the user it is interacting with
does not have authority to access a device, a program or data, it will ask increasingly
personalized questions that only the appropriate user can answer
Risoft’s Digital Video Solution
The Technologies: Video
 Currently, digital video is provided to a consumer as a single large,
monolithic file
 These digital video files are generally quite large and require considerable bandwidth to
download or stream
 Due to their size, these digital video files cannot be delivered over HTTP via a standard
web server
 Because of their size and the time needed to encrypt the whole digital video file, these
files are generally encrypted and a watermark added by the commercial owner or seller
prior to their being offered for sale to a consumer.
As a result, the watermark includes general information that is not able to identify an individual who
downloads or streams the video
The watermark is also generally located in one location throughout the video, making it easy to black
out and mask
The Technologies: Video
 Risoft’s Asynchronous Simultaneous Downloading

Risoft uses an Extensible Video Format (“EVF”) that provides a specification defining parameters
for the encoding, storage, retrieval and delivery of digital content using Extensible Markup
Language (“XML”)

In this manner, the video is saved as individual frame pages that when viewed one after another
can make up a complete video that is stored in one or more frame libraries

The video is started instantly as soon as the first frame page is downloaded
In essence, the video is streaming without literally streaming

The video system can use HTTP
This means that the frame pages can be stored in any number of locations and so delivering a video is like
grabbing pages from a book in any order that is preferred or required and then reassembling them at the
destination into one coherent video

The use of frame pages instead of monolithic files should result in a significant reduction on the
use of bandwidth to download or stream videos from services such as Netflix
Currently, Netflix uses more than one-third of the total bandwidth of the internet
The Technologies: Video
 Risoft’s Asynchronous Simultaneous Downloading
 Risoft’s solution is to break each frame of a video into a single frame page
The frame pages are then stored individually in a frame library
The advantage of storing frame pages in sections in a frame library is that the consumer can
request the next series of frames in a given sequence from any number of servers where they are
stored—the whole video file does not need to be stored at one location
The video is viewed by viewing a first frame page, then the next and the next after that
Because the frame pages are stored individually, each frame of the video can include more data,
allowing a video to be viewed in higher resolution than current HD video files
The Technologies: Video
 Risoft’s Asynchronous Simultaneous Downloading
 The use of frame pages also allows for the encryption of one or more frame pages, instead
of attempting to encrypt a complete video file that can have a size of 1 GB or larger
It allows encryption or compression algorithms to be applied independently to a frame page, frame
library or even a single frame within a frame library
It allows watermarking to be applied as the video is encrypted and then downloaded, making it
practical to watermark a video with the individual consumer’s account information, including the
consumer’s account ID
Risoft calls this technology: “Encoded Positional Watermarking”
It also allows for starting a file immediately, rather than having to wait for the decryption of a large
file by the consumer’s system
The Technologies: Video
 Risoft’s Asynchronous Simultaneous Downloading
 By using frame pages, it is possible to include a consumer’s account information in the
header which can be used to watermark a video on the fly
It also allows the use of positional information so that the watermark is not stationary, which enables
the user to simply black the screen to avoid infringement issues
 The advantages of Risoft’s video system are numerous and when combined with other
technologies such as low flop encryption and Risoft’s security technologies, it truly forms
the apex of a commercial video delivery system
Risoft’s Artificial Intelligence
(“RICH”)
One AI to Rule Them All
 Risoft has developed an AI that accomplishes what has been the goal of the
software, hardware and telecommunications industry for two decades: a
single AI to control all computer-based devices
 To meet the requirements of an end user, such a system needs to be
customizable
 It also needs to be able to continually learn over time and develop a
personality that is acceptable to its user
 It needs to become a personal assistant
 As you will see, Risoft’s AI accomplishes all of these goals and it makes other
attempts at developing an AI look simplistic
The Technologies: Artificial Intelligence
 Risoft’s AI software is called the Realm of Illusion Cybernetic Human or
“RICH”
 In simple terms, RICH is an autonomous thinking program that can learn,
adapt and develop its own personality
 RICH was designed by breaking down the elements required to perform any
task into a single template module or neurone, allowing RICH to be infinitely
configurable to perform any task
 RICH is multifunctional
 It can be used to manage a smartphone, a PC, a tablet, an automobile, a home, farm
equipment, drones, manufacturing lines, etc.
The Technologies: Artificial Intelligence
 RICH also excels in its ability to function as the “intermediary” between
disparate systems
 An example would be integrating existing “smart” onboard automotive sensors with a
smart phone-like personal assistant
Using RICH, manufacture assistance to create interconnectivity is not required
 Once RICH is established on more than one device, RICH can move seamlessly from device
to device
For instance, from entry to an automobile to a user’s smartphone and then to the automobile’s
climate control, entertainment and GPS systems and back to the smartphone when the user exits
the automobile
The Technologies: Artificial Intelligence
 RICH has numerous immediate applications
 The best known and most immediately available is the personal assistant
 Other areas include:
The automotive industry
The home security and entertainment industry
The automation industry
The manufacturing industry
The military
The space industry
and many more
 RICH is also uniquely suited to integrate with RISOFT’s encryption and obfuscation
technologies
Compared to RICH, Current AI’s Are Rudimentary
 Current AI technology is rudimentary
 Apple’s® Siri® can answer simple questions based on search engine-like
algorithms, but it never learns and never becomes capable of anticipating its
user’s needs or wants
 Automobile-based systems are even more rudimentary and require user inputs
for each task
e.g. BMW’s ConnectedDrive, Cadillac’s Intellilink and Hyundai’s UVO for
automobile entertainment, navigation and climate control systems
Compared to RICH, Current AI’s Are Rudimentary
 A review of available AI technology shows that they all suffer
from similar problems, all of which have been overcome by
RICH
 These include:
Limited Functionality
Limited Ability to Customize
Limited Learning Ability
Current AI’s Are Rudimentary
 Currently, a user has two or more AI(s) integrated into their life
 For instance, a user generally has a voice-activated system in their car, a personal assistant
in their smart phone, and another PA in their desktop, laptop or tablet.
 Current AI(s) generally only control a few features of a device
 Dialing a telephone number, changing a radio station, setting a car temperature
 The number of AI(s) an individual user will have will only increase as
technology progresses
 This contrasts with RICH, which is a single AI that can be utilized to control any device
Current AI’s Are Rudimentary
 Current AI’s have a very limited ability to be customized
 Current AI’s are only minimally customizable to an individual’s tastes
E.g. sound and tone of the voice, male or female voice, foreign accent, speed of talking
 Current AI’s have difficulty understanding an individual with strong accents or a speech
impediment
How often has your AI asked you to repeat something you said clearly?
The television show The Big Bang Theory had an example with Siri®, where a
scientist who pronounced an “r” as a “w” could not get an understandable
answer to simple questions
 Current AI’s have minimal ability to be taught or anticipate their user’s actions, desires,
needs or expectations
Currently, a user is expected to input the same information (for instance, re-ask the
same question) each time they use the AI
Current AI’s Are Rudimentary
 Limited Ability to Learn
 Current AI’s only respond to immediate input
 To the extent that an AI retains memory, it is for simple functions
E.g. common internet sites visited, favorite restaurants
 Current AI’s do not learn the habits, likes and desires of their users
As a result, a user has to repeatedly input the same information over
and over during the ownership of the device
A Giant Leap Ahead
 Risoft’s RICH meets all of its user’s requirements
 RICH can control every device owned by a consumer that has a
computer brain
 RICH provides an enjoyable experience to the user
 RICH can stay with a consumer whether they are at home, on the road,
at work or out to eat
 RICH is secure and protects a user’s personal information by integrating
Risoft’s security software into the AI
 RICH can become a user’s friend
RICH is the Solution
 RICH is customizable and created based on information provided by the
consumer at the time the AI is built
 RICH can be updated over time as the AI is added to new devices or new
features are added to the AI
 RICH is not limited to a specific device or brand of product
 RICH is able to work on all operating systems and all electronic devices with a computer
brain
 RICH continually learns and adapts to the needs, desires, wants and
requirements of its user
 RICH is stored on Risoft’s cloud-based servers, so it requires a minimal
amount of memory in a device to fully function
How Does It Work, First Step Build It
 When a user buys a RICH compatible device, the first step is to build the AI
by collecting personal information from the user
 The information collected is used to:
 determine personal characteristics of the AI
Ensure that the AI meets its user’s demands, needs and wants
Ensure that the AI meets the personality requirements of its user
Gender, voice, accent, cadence, etc.
 determine the likely requirements of service by the AI
 identify all devices to be controlled by the AI
 The information is provided to Risoft’s computers and with this information,
an individualized AI is built that is uploaded to the consumer’s compatible
device(s)
How Does It Work?
 When you turn on a device, the AI is activated
 It begins by asking you what you would like to do
 Over time, it anticipates your requests and if appropriate starts with the
functions it anticipates you would ask for
 As time goes on, it also begins to converse with the user and through
conversation learns what the user needs, desires and wants
 RICH can also be tailored so that each individual user in a
household or who uses an automobile can have their own AI
that was built specifically for them
 For a home with children, parents can put limits on the AI
How Does It Work
 As a user moves from one device to another or one location to
another, the AI moves with you
 When you wake up in the morning, the AI is turned on as you turn on your smart
phone, your home entertainment system and interact with your home security
system and begins to assist the user
 When the user leaves the house to drive somewhere, the AI moves with the user by
transferring from the smart phone carried by the user to their car’s systems where
the AI responds to a user’s commands regarding the radio, climate control and other
car systems
 When the user returns home, the AI moves from the car back to the smartphone and
when the user enters the house, it moves into all the home-based systems
 As it is used, the AI takes what it learns and uploads it to Risoft’s servers and stores it
where the AI resides
Proof of Concept: RICH as a Chatbot
 RICH has been tested as a chatbot that was accessible to
individual users through the internet
 During the testing, Peter Wolff, a renowned computer programmer and expert
on AI’s, informed Risoft following his interaction with RICH in which RICH
showed independent thought and “brattiness” by calling Mr. Wolff - “Rose” that:
“If your AI really chose to call me Rose, it must have more potential
intelligence than 99.8% of the bots I know.”
 Other individuals had similar documented experiences with RICH
 In addition, internal work with RICH has found it to be quick learning and highly
adaptable
RICH as a Chatbot (Conversation with P. Wolff)
RICH as a Chatbot
RICH as a Chatbot
RICH as a Chatbot
First Uses of RICH
 Risoft believes that the first markets for RICH are personal productivity
devices such as smartphones, PCs and Tablets
 These three markets are potentially worth billions of dollars
 Following initial penetration into these three markets, Risoft will move into
Automobiles and Home Entertainment and Security systems
 Finally, RICH will be made available to the military, the agricultural industry,
manufacturing industries and any others that would find an AI of RICH’s
abilities valuable to increase efficiency and reduce costs
Smartphones, PCs and Tablets
 The most logical starting point are smartphones, PCs and Tablets

The market for Smartphones, PCs and Tablets is projected to grow rapidly over the
next few years
Smartphones, PCs and Tablets
 Integration of RICH into these devices will be straightforward and should allow
for significant market penetration in a few years
 In particular, there is no AI like RICH available to consumers of smartphones, PCs and
tablets
 Currently, the “Gold Standard” of AI’s in this market is Siri®
But Siri® has limitations that RICH does not suffer
Siri® cannot be truly individualized
Siri® can only answer some questions that it is asked
Siri® does not learn from its interactions with its user
Siri® is not capable of running a device or interacting with any device other than
an iPhone or iTouch
 RICH makes Siri® look like a kids toy and provides an opportunity to the right
company to market and sell products that will amaze their consumers and set a new
standard of AI interactivity
Automotive
 As stated previously, following the launch of RICH in the personal
productivity market, Risoft intends to move forward with the launch of RICH
in the automotive industry
 Starting with BMW’s iDrive, the automotive industry has attempted to develop a smart
system to manage all of an automobile’s user directed functions
 Currently, the systems adopted by various automotive companies are rudimentary and
require user input each time the radio, climate control or GPS are changed
 RICH can control all user input functions and as a continually learning AI, RICH will be able
to anticipate its user’s desires and preset the climate control, radio and even the GPS
based on what RICH has learned from prior experience with a particular user
 RICH will also make the experience better as it will be designed specifically for each user
No more annoying voice responding to a request when you are driving
Automotive
 RICH also provides a means to protect an automobile and the personal data
stored in its computers

An automobile is stolen in the United States every 26.4 seconds

People store personal information in their automobile’s computers such as addresses, names of
family members, and even credit card numbers.

RICH works by requiring a “security key” before systems are activated and the car’s computer
can be accessed
Normally this is accomplished when a user enters an automobile and RICH on a user’s smartphone
“handshakes” with the automobile’s computer system to unlock it or , alternatively, Risoft’s Black Key
Technology security system can be used
 Since part of RICH always has access to an automobile’s computer system, it can
be used to track an automobile and shut it down

In fact, it could be used to shut down an automobile, and lock the doors and windows until
police arrive to arrest the thieves
Automotive
 While Risoft’s intention is to roll out the use in automobiles after the launch
in personal productivity devices, Risoft is prepared to launch an automotive
application earlier with the right partner
Home
 It has always been a dream to have a system to automate the different
computerized devices in a house
 An early example of this is the X-10 home automation system which is still available today
 The reality is that this dream has now been achieved
 Currently, every major manufacturer of home entertainment systems, security systems
and appliances have already or have announced that they are in the process of developing
and selling “smart home systems and appliances”
 This has already begun with home security systems where consumers are now offered
systems that integrate with an owner’s smart phone
 However, each system available today and that is under development suffers
from the same flaw
 They are not able to integrate with one another in a cohesive fashion
Home
 Risoft’s AI does not have this problem
 Because RICH can work with any device with a “computer brain,” it is capable of
integrating multiple devices from different manufacturers
For instance, RICH can integrate with your security system, your home
entertainment systems (both receiver and cable or satellite service) and
your home appliances
As RICH never really leaves a location when you move, you can use RICH to
access, monitor and work the different systems from a remote location
 In the end, RICH is the first fully integrative home system that can run everything
in your house
RICH is the Answer
RICH will become the world’s first complete personal integration
system that can run everything a consumer uses while having a
pleasing user-driven personality that provides for every want,
need and desire of the user
PRODUCT MONETARY VALUATIONS
The Money Starts With Smartphones
 Valuation based on conservative market penetration rates and
discount rates
 Market penetration can be for Apple, Android or Windows
 Based on Siri® market penetration since launch, likely market
penetration of RICH is probably higher than projected
 NPV based on conservative market penetration and
discount rates and will likely be higher whether launch is in
year 1 or a later year
Smartphone Valuations and Discount Rates
SMARTPHONE VALUATION
Smartphone Annual Growth Rate
10%
License Cost
$6.00
Discount Rate Assumptions
Current 10 Year Treasury Yield
2.61%
Equity Risk Premium
7%
Small Cap Risk Premium
4%
Company Specific Risk Premium
7%
Estimated Discount Rate
20.61%
Smartphone NPV If Launched Quickly
Year 1
Year 2
Year 3
Year 4
Year 5
Number of worldwide smartphones
1.4 B.
1.54 B
1.684 B
1.863 B
2.05 B
Estimated Market Penetration
0.5%
1%
1.5%
2%
2.5%
Licenses Issued
7M
15.4 M
25.14 M
37.27 M
51.24 M
$42 M
$92.4 M
$152.5 M
$223.6 M
$307.46 M
Estimated License Revenue
Project Net Present Value $411.37 Mil.
Smartphone NPV If Launch Date Delayed
Number of Years to Launch
NPV based on discount rate
1
$341.1 M.
2
$282.8 M
3
$234.5 M
4
$194.4 M
5
$161.2 M
NPV of Auto and Home Security If Launched Quickly
Year 1
Year 2
Year 3
Year 4
Year 5
NPV
Auto License Revenue
$16 M
$26.4 M
$38.8 M
$53.3 M
$58.6 M
$101.7 M
Home Security Revenue
$46.7 M
$48.1 M
$49.6 M
$51.1 M
$52.6 M
$144.8 M
Auto and Home Security NPV If Launch Date Delayed
Number of Years to Launch
1
2
3
4
5
$69.9 M
$58 M
$48.1 M
$39.8 M
$82.6 M
$68.4 M
$56.7 M
Auto License Revenue
$84.3 M
Home Security Revenue
$120.1 M $99.6 M
Development Costs for Risoft are not Substantial
 The development of Risoft’s Security, Video and RICH
products is projected to be $1.5 million over a two
year period
 These costs include payroll, equipment, software,
legal/IP and contingency costs
This is Just the Tip of the Iceberg
 As the revenue projections show, RICH has the
potential to be a substantial financial success even
with very conservative estimates of its market
penetration over the first five years
 Based on the potential revenue streams available to
Risoft as detailed in this presentation, Risoft has the
potential to become a billion-dollar hi-technology
company
Risoft has the Solutions
Risoft is Ready to Work with You to Provide the
Solutions Consumers Need