(page8)B. Distribution Methods of the Product
The company’s products will be sold to trading customers either directly or via the web and distributed through brokerages, exchanges, and value-added resellers.
D. Competitive Business Conditions, the Issuer’s Competitive Position in the Industry, and Methods of Competition
Competition for SpoozToolz comes from various data and software vendors who supply stand-alone programs with varying degrees of functionality, but generally, with little or no flexibility for customization. Trade Station, CQG and Aspen Graphics are high-end professional tools for market analysis. However, prices begin at $450 per month, plus exchange fees for live data, or $600 or more per month per screen for an execution platform plus additional transaction fees. To use Trade Station, a user must learn its proprietary programming language and trade through a Trade Station affiliated broker. Spooz intends to compete with its competitors by significantly undercutting their price, mass distribution (as discussed above) and enhanced functionality using Excel, which to Spooz’s knowledge is not being used by any other provider in its market.
(page9)On October 4, 2006, Spooz filed a patent application with the United States Patent Office for the technology behind Fractalz³. On January 7, 2007 Spooz filed a provisional patent application with the United States Patent Office for the technology and business processes relating to SpoozToolz and anticipates filing a non-provisional patent application for SpoozToolz later this year. Spooz will pursue an aggressive patent policy.
The company sub-leases office space of approximately 3,085 square feet in Suite 1250, 29 S. LaSalle St., Chicago, Illinois for a monthly rental rate of approximately $4,500.00. The sub-lease terminates on September 30, 2009. The company does not own any property or properties for which the book value amounts to ten percent (10%) or more of the total assets.
Spooz’s Board of Directors has authorized 1,500,000 shares of Series B Preferred Stock
(page10)Item X: The Number of Shares or Total Amount of Securities Outstanding for Each Class
........Year End 12-31-06................... QuarterEnded 3-31-07
Spooz Authorized Preferred Stock: 0 .............25,000,000
Spooz Outstanding Series B Preferred Stock: 0 .....1,000,000
Spooz Authorized Common Stock: 1,000,000,000..... 1,475,000,000
10
Spooz Outstanding Common Stock: 953,102,579....... 205,049,249
Spooz Freely Tradable Common (float): 302,006,650.. 670,239,832
Estimated Number of Shareholders: 1,800 ............1,800
Warrants: 11,493,144 ..............................10,993,144
Qualified Options: 11,961,872 ....................11,961,872
