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As a result of the strategic alliance with Design Edge Inc., of Merrick New York, they now have several more unique toy configurations that have been developed and are owned by the Company. Design Edge is currently working on more designs, with another 4 products planned for production within the next 4-12 months, in conjunction with this contract design team in the USA.
In October of 2006, the company released an offer document under Section 708 of the Corporations Act (through the Australian Small Scale Offerings Board) which provided for two rounds of capital-raising, each of $1,250,000. The first of these rounds was completed in February of 2007 and the second in August of 2008. All of the milestones set in that offer have been achieved, on time and on budget.
The company has now consolidated its position, with an agreement for the acquisition of production facilities, design facilities and suitable new premises. Information on these agreements is contained in Section 7 of this document. They are also intending to undertake further product development to increase their range from one to seven products, as well as completing additional marketing, distribution and logistics planning.
The company has entered into an agreement to acquire the assets of its design partner, Intellec Development Group of Wangara W.A., as well as purchasing some as-new medical/food-grade plastic injection moulding equipment to extend their operations to include in-house manufacture. The company has also negotiated the purchase of a new factory with offices in Wangara, W.A., as the new Head Office of the company.
Further details of these agreements are contained in the Material Contracts section of this document. The intellectual capital of 3d FunTimes Limited started with a puzzle toy concept which is adaptable across many different platforms. This is protected by a fully-converted patent for Australia and the USA, with patents pending for Canada and the EU. The Company also owns a production prototype, as well as complete moulds to produce 960,000 of these arks per year, complete with 44 animals each and a digital game CD-ROM to complement and extend the learning.
The design partners in the USA (DesignEdge Inc) have completed the concept designs for the next 6 products and all seven will be launched into stores in USA and Europe in 2009-2010. The current Wangara facilities can cater for production of up to 960,000 units per year, with many more being able to be produced in Hong Kong, within the secure manufacturing premises of DesignEdge East.
Tier Toys now has digital designs for the next four products, which they can use to produce mould dies for plastic injection moulds capable of manufacturing approximately 2,400,000 of the new toy designs per year within the Wangara plant and substantially more through subcontract. These products are:
The Barn Yard
This product is a farm setting encased in a barn. It contains several of the Ark animals and many more, as well as farm vehicles, fencing and other equipment associated with farming activities. Children can use the fencing to set up the barn as an activity centre and arrange the animals into several fields. The product stores all of the items into itself as a puzzle, as with the ark.
The Sea Explorer
This product has several layers containing fish and other sea animals, as well as a submarine which can be winched from the deck of the ship, as part of the learning activities. The ship is also a puzzle, with all of the components packing into each of the layers. The Castle(s)
There are two variants of the castle, with a girl’s version having dragons, unicorns, a tiara, butterflies, a magic wand etc. The boy’s version has swords, dragons, pirates.
Monster Truck
The monster truck features a racetrack and several slots for existing toymakers micro-machine cars, all configured in a layered puzzle activity centre.
The Pet House
The Pet House consists of several layers containing pets, accessories and play toys for kennel pets, all configuredin a layered puzzle activity centre.
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The Company has appointed Richard Gottlieb from Gottlieb and Associates of New York, the World’s most successful toy and games representative, as Global Sales Coordinator. Richard will operate from his New York office. Richard has assessed the first product and the next four concepts and has prepared conservative marketing projections into some 21,000 stores in USA and another 11,500 stores across Europe and Japan. As Richard has a working relationship with these stores he is confident of his projections to date. Richard has become a shareholder in 3d FunTimes Limited, after working closely with the company over the past 12 months.
The company is in the process of acquiring the latest German injection moulding technology in the Wangara factory and intends to manufacture the first of the range of products in Australia, using a proven, inexpensive plastic injection moulding process.
The Company has already completed the Class 1 moulds on the first product, which are contained within their own in-house tooling facilities. This tooling is expected to be able to produce 960,000 units per year. Cursory testing shows this product appeals to boys and girls, from ages 2-4 years (for the assembly and disassembly), and 3-6 year-olds (for development of fine motor skills in developing years and for fun activities associated with the objects removed from within the puzzle layers.) The toy allows for children to disassemble and reassemble puzzle layer(s) and use the 3-dimensional shapes and outlines for other activities, thereby broadening the appeal.
The product range will be manufactured from solid injection moulded plastic components, which will produce a safe and sturdy colourfast product that will be long-lasting. There are no sharp edges, no toxic materials used and the product has been designed to be light and compact (for storage).
There are several key factors that differentiate the 3d FunTimes Limited product range from most other toys available on the market today. These include:
• Dual function as a puzzle and activity centre.
• Designed as a durable learning toy to enhance motor skills in toddlers.
• Scores very high in cost to play value (CPV) assessments.
• Intricacy of design of all components.
• Activities differ across age ranges (making the toys suitable for short-term entertainment of a wide age-range of children in
surgery waiting rooms to child care centres), with diversity of appeal.
• Fully patented in key markets.
• Patent covers a wide variety of designs and applications.
• The toys allow for children to disassemble and reassemble puzzle layer(s) and to use the 3-dimensional shapes and outlines
for other activities, thereby broadening the appeal and extending the play value.
• Product meets global child toy safety standards in design, materials and application.
• The interactive CD-ROM game and audio-book story complete and extend the playtime activities. The Company has developed a range of innovative toy puzzle activity centres, for ages 2-8 years (across wood, foam and plastic). These toy centres have scored exceptionally high on the total play value scale, as the range of activities includes playtime activities as well as puzzles. The first product of the range has a CD-ROM game and over 40 stand-alone animals for playtime activities.
The next approved products for the Tier Toys range include the Castle, the Farm Barn, the Monster Truck set, the Dog Kennel and the Sea Explorer. These will all be dissected puzzle activity centres, complete with characters (or cars) in each of the layers of each product.
The concepts for these and future products are being designed and developed in Merrick, New York, by one of the USA’s leading toy design companies, DesignEdge Inc. DesignEdge have an impressive record in the toy industry, providing advice, design and overhaul services to many of the top toymakers. They also have a manufacturing plant in Texas and another in China. The directors of DesignEdge Inc. have elected to invest in 3d FunTimes Limited, on the strength of their assessment of the product. The target markets for Tier Toys, the trading arm of 3d FunTimes Limited, are the toy retailers and catalogue resellers in the USA and Europe. The company’s Global Sales Coordinator, Mr Richard Gottlieb, has access to over 27,000 stores across the USA and a further 11,500 stores outside of the USA. ↑ TO TOP ↑
Of these, he has accessed over 21,000 stores in the USA and a further 6,500 stores outside the USA for stocking and reselling the Tier Toys range. For conservatism, current projections have been calculated on just 15% of these stores becoming stockists.
The target market for Australasia is toy and educational games distributors. These distributors service the larger toy and discount department store retailers. It is anticipated that an acceptable market penetration could be achieved from a single wholesaler, given that each of the major wholesalers deal with most major retail chains. As a result of the early work by Richard Gottlieb in North America, a distribution warehouse network has been secured to hold and ship stock to retailers. The company has also appointed a merchandising representative, with a network of toy sales personnel, who will establish shelf displays and promotions, into all of the 21,000 stores that Mr Gottlieb has within his network. This sales and merchandising company represents several other non-competing toy lines and was selected from a field of the top three companies in the toy industry. They have extensive experience in toys and specialise in learning and activity lines.
A similar arrangement with a suitable warehousing and a sales merchandising representative firm is currently being negotiated for the European market. A final representative company has been selected and the contracts are due for signing in 2009. 3d FunTimes Limited recently entered into an agreement to acquire selected assets of Intellec Development Group Pty. Ltd (IDG). This major acquisition will provide an in-house design and tooling facility for the company, as well as production facilities for at least the first product. IDG offers the ability to produce a workable prototype sample once the client is satisfied that the product design meets their needs. This process is extremely cost effective as there is no need at this point to physically produce injection moulds. The client may use these samples to conduct their own market acceptance research before entering into the manufacturing of injection moulds. The prototype’s physical quality is comparable to that of an injection moulded component and the resemblance is identical. IDG provides Computer Numerical Service (CNC) services for the manufacturing of injection moulds. The generated solid model files developed within the tool design phase are utilized to produce Computer Aided Machining (C.A.M.) files, which are downloaded into Computer Numerical Control (C.N.C.) machining centres. This is the actual cutting and machining of complex tooling cavities. This process is the ultimate procedure for complex shapes to be cut directly into the injection mould cavities. IDG’s core facility will service the manufacturing of plastic injection moulds, blow-moulds and complex jig and fixture tooling. This is the mainstream demand within the plastics manufacturing industry. IDG’s machinery inventory is a comprehensive selection of machine tools capable of machining to above industry standards. The ability to provide CNC machining is in extremely high demand within the plastics tooling industry. CNC machining is highly regarded as a cost effective process when compared to that of conventional machining methods. This machine service is a core aspect of the tool room. The production room has seven Krauss Maffei injection moulding machines, complete with automatic feeding systems, chillers and conveyors. These machines range from 40 tonne (4) and include an 80 tonne, a 110 tonne and a 200 tonne machine. These have contained clean-room environment casings, to control the atmosphere in which they operate. The moulding machines are complemented by a robotic system for removal of components, as well as high-pressure chiller systems and compressed air systems for high-cycle manufacturing. Each of the moulding machines has automated feeder systems for drying and delivering plastic pellets to the injectors at very high cycle rates. ↑ TO TOP ↑ |
