Company Overview

Biostance, LLC was formed in 2005 to bring breakthrough products and services to the Ski Specialty Retailers (SSRs) for skiers of all levels. The initial products is a proprietary Cant Angle Plate (the “CAP”), an electromechanical in-store fitting system (the “Biostand”) and a simple in-store ramp angle selection system for a quick fore-aft selection. These and future products will dramatically increase in-store SSR revenues and improve skier comfort, control and confidence on the slopes.

Background
For many years, millions of recreational skiers have suffered from ski equipment that is poorly selected and fitted. Based on extensive prototyping and testing in SSRs and on the slopes conducted by the founder, a Company was formed to bring breakthrough equipment solutions to market. The Company introduced its technology, products and methodology in the 2005-2006 ski season at three locations – Vail, Beaver Creek and Aspen.

Today, Skiing is growing again but the market is increasingly dominated by ski equipment and services that are designed for the older skier (40+ or Masters Age Group). According to ski industry data, approximately 4,200,000 purchases of skis and 4,200,000 of bindings occurred worldwide last season (the US is approximately 19% of the world market). The vast majority of these transactions occur with little or no beneficial alignment services performed due to a lack of knowledge and efficient means. The company believes that only one or two percent of the recreational skiers have been balanced or aligned in their entire ski-binding-boot system but that 85 % would benefit from such an alignment. The Company plans to provide its products and services through a network of authorized SSRs, initially targeting SSRs at major ski resorts and large city shops whose main customers are the older male skier and women skiers. While these skiers may lack the strength and ability to compensate for alignment deficiencies, they possess the desire and disposable income to afford new equipment and a more enjoyable skiing experience.

The Company's present technology includes proprietary methods and equipment for optimally balancing a skier in his/her ski-binding-boot system. Specially designed test equipment and an alignment platform, the “Biostand”, are used to determine a skier's optimum "stance prescription". This prescription is then used to customize the skier's own equipment or demo gear. The Company believes its strong proprietary position will create a demand for authorized dealer agreements with the best SSRs throughout the world. The company also anticipates that the major ski equipment manufacturers will want to produce "compatible" boots, bindings and skis for retail and rental markets worldwide. The Company’s first proprietary product, a device for canting the skier, the Cant Angle plate (“CAP”) takes seconds to install on the majority of bindings being sold versus the current devices and techniques that require hours to install. This is a novel and proprietary approach to balancing today’s skier.

Biostance has been established as a Limited Liability Company giveing us the greatest tax and operational advantages based on the nature of our business and our anticipated growth.

Biostance is located at 3960 Patterson, Oakland, CA 94619, with satellite offices in Vail, Beaver Creek and Aspen, Colorado. Planned expansion is to increase the number of ski areas served from the initial three in Year One to one hundred and fifty by Year Four.

Market Opportunity
In the last ten years the ski industry has changed radically due to several concurrent trends. One of these was the advent and rapid growth of snowboarding. The second was the change in skis and skiing to a shorter, wider, higher performance “shaped” ski, which created changes in technique and optimal body position, i.e., the center of balance moved from the front of the ski to equal weight over the ball and heel. A third trend is the economic importance of the 40+ skier population with their physical limitations and requirement for comfort and safety that accompanies the desire to continue in the sport. A fourth trend important to Biostance is the change in ski resorts to encourage and accommodate families and groups for longer stay, i.e., a week instead of a day or a weekend. A fifth change has been the progressively increasing cost of the sport and the equipment to enjoy it. The effect of these trends has been to reduce the number of skiers, the number of resorts and the number of SSRs while posting the largest number of skier days and the highest $/skier expenditures ever.

With the end of the 2004-2005 season these trends had matured to redefine the state of the ski industry. Snowboarding growth reached a plateau at 28% of the total skier/boarder days, shorter wider skis became the norm, a balanced stance was taught in the ski schools, most of the skiers chose to ski “groomers”, the age of skiers became bimodal with an increase in older skiers and younger skiers while the average age has remained constant, and the slopes are dotted with condos and homes.

According to the National Ski Areas Association there are approximately 7.5million people in the US who skied 40 million skier days. If 60% of them were male then our research shows that approximately 5.3 million US skiers would benefit from a Biostance CAP product. Based on our private research on well over a thousand skiers, we estimate the number of potential customers to be 25 million with the number we are likely to reach much smaller but still on the order of one million per year.