The document proposes a sunglass-mounted action camera called Sunglass Action Camera. It would have multiple models at price points between $249-$399. The camera would integrate compactly into sunglasses, providing a more convenient alternative to helmet or body mounting. It aims to address the growing action camera market, estimated at over 1.3 million devices annually. Key challenges include design, battery life, and establishing market presence against competition. Opportunities exist in filling the need for a more discreet, theft-resistant camera and creating prescription-friendly models.

1. Sunglass Action Camera
Charter Presentation to: Jxxxxx Vxxxxxxxxx
By: Kevin Otterman
February 27, 2012

2. Executive Summary
Sunglass Action Camera – multiple models
USP: More convenient than helmet/chest/dash mounting; less conspicuous or
theft prone
Dedicated innovation: compact integration into sunglass platform; optional
path to support prescription lenses
Price Point (RRP): US$349, US$249 at launch (optional: $399)
Time-to-market/ Lifecycle: Flagship release Q4/2012, 3 year LC (min)
Addressable Market: Action Cameras, Estimated market size >1.3MM devices
per year
Planned (total) volume: ~60,000/year across models
Product EBITDA target: TBD
Regional Market Focus: All Regions, split TBD
Sales Channel Split: TBD
Main reference/ competitor products: GoPro HD Hero2, Contour ROAM,
Oregon Scientific ATC9K
Pro
ide
Target
Positioningin
Portfolio
TargetMarket
(End-customer&
channel)

3. Market Overview
• Action (Helmet) Cameras are hot
sellers in today’s market
• Sales of action cameras tripled from
CY2010 to CY2011 to 1.3MM units
(source: Chris Chute, International
Data Corp)
• Generally retail for $200-400
• Most today are ‘wearable’ or
‘helmet-mounted’

4. Competitive Landscape
$250 $350 $400
Flagship HD Model ($349)
GOPROBUSHNELLCONTOUR
$200
ROAM ($199)
HD Helmet Hero
($239)
$300
HD Hero2 OD ($389)
HD Hero 960 ($229)
Others
HD Hero2 MS ($299)HD Hero2 MS ($299)
Base Model ($249) OPTIONAL:
Prescription Frame
($399)
GSI ($99)
Coleman CSXSWP ($99)
Drift Innovation HD ($429)Drift HD ($359)
Oregon Scientific
ATC9K ($349)

5. Competitive Landscape
GoPro HD HERO GoPro HD HERO 960GoPro HD HERO2 Contour+ V.I.O. POV HD Sony HXR-MC1 Drift HD Oregon Scientific ATC9K
Sensor Type
5 MP 1/2.5"
CMOS
5 MP 1/2.5"
CMOS
11 MP 1/2.3"
CMOS
5 MP CMOS 1/2.7" CMOS
4MP 1/5" Exmor
CMOS
9 MP CMOS
5 MP 1/3.2"
CMOS
Lens
Fixed Focus
f/2.8
Fixed Focus
f/2.8
Fixed Focus
f/2.8
Fixed Focus
f/2.8
Fixed Focus
f/2.0
Carl Zeiss 10x
Optical Zoom
NA
Fixed Focus
f/3.2
Max. Video Resolution
1920 x
1080/30p
1280 x 960/30p
1920 x
1080/30p
1920 x 1080 /
30p
1920 x
1080/30p
1920 x 1080/60i
1920 x 1080 /
30p
1920 x 1080 /
30p
Storage Media SDHC SDHC SDHC Micro SD SDHC MS PRO Duo Micro SD SDHC
Display Size 1.5" status only 1.5" status only 1.5" status only None 2" 2.7" 1.5" 1.5"
Waterproof 180' with case 180' with case 180' with case No 3.3' No No Yes
Inputs None None Mic None Mic None Mic None
Outputs
Audio,
Composite
Video, USB 2.0
Audio,
Composite
Video, USB 2.0
Audio,
Composite
Video, USB 2.0,
HDMI
USB 2.0, HDMI
Audio,
Composite
Video, USB 2.0
Audio,
Composite,
Component,
USB 2.0, HDMI
HDMI USB 2.0, HDMI
Built-in Speaker No No No No Yes Yes Yes Yes
Battery Type Lithium- Ion Lithium- Ion Lithium- Ion Lithium- Ion 4x AA Lithium- Ion Lithium- Ion Lithium- Ion
Other Features Battery Warmer Battery Warmer
Battery Warmer,
LED Lights
Pivoting Lens Wireless remote Dual Recording
4x Digital Zoom,
Pivoting Lens
Optional GPS
Dimensions 1.6 x 2.4 x 1.2" 1.6 x 2.4 x 1.2" 1.6 x 2.4 x 1.2"
1.34 x 2.28 x
3.86"
1.57 x 2.36 x
6.57"
1.5 x 1.9 x 3.5",
3.3 x 4.8 x 1.8"
1.30 x 1.97 x 4.09"1.73 x 2.17 x 3.94"
Weight 5.9 oz 5.9 oz 5.9 oz 5.29 oz 11.7 oz 1.1 lb 4.23 oz 7.04 oz

6. The Product Concept
• A limited effort has been made
toward camera Sunglasses (ref:
www.sunnycamglasses.com)
• No mount attachment necessary
(vs. typical action cameras on the
market)
• The pinhole camera is located
between eyes, so the camera sees
what the user sees
• What is needed: Compact HD video
recording unit embedded in stylish
sunglasses

7. Challenges
• Make compact and attractive
• Retain good battery life
• Cost
• Establishing market presence
• Suitable higher-res camera sensor
• Other Sunglass cameras exist today
(check for patent/IP issues)

8. Opportunities
• Most of today’s action/helmet cameras
are awkward/inconvenient
– chest mounts
– helmet mounts
– surface mounts
• Existing action cameras are conspicuous
– Stand out in crowd vs. stealth
– Prone to theft and breakage
• A more convenient HD recording device
would be popular

9. Opportunities (cont.)
• Models could exist for multiple brands
– High-end HD model for higher-end optics
brand (Serengeti?)
– Lower-resolution model for mid-range optics
brand (Bolle or Cebe?)
– Economies are realized in mfg/scale
• Additional opportunity exists by creating
a prescription-friendly frame and
partnering with an optics retailer (ex.
Wal-Mart)

10. Risks
• Busy competitive landscape
– Shakeout in the future likely
– Pricing pressure
• Smartphone apps, some free, provide
action camera functions

11. Road Map – Camera Eyeware
2H 2012 2H 20131H 2013
HD (4Q12)
USP’s
Best in class
convenience/ease
Compact
integration to
minimize profile
and theft risk
Direct storage to
social friendly
format(s)
Standard Res (2Q13)
USP’s
Best in class convenience/ease
Affordable
Low profile minimizes theft risk
Prescription (4Q13)
USP’s
Best in class convenience/ease
Flexibility for prescription users
(unique position in mkt)
Low profile minimizes theft risk

12. Financial Summary – best case
Project / Product
Lifecycle
Product HD Std Res Prescription
Total
Estimate Lifecycle Volumes 0 0 0 0
Net Distributor Price $244.30 $174.30 $279.30
Total Lifecycle Revenues $0 $0 $0 $0
Total BOM Cost $119.85 $109.05 $113.04
Total Lifecycle COGS $0 $0 $0 $0
Total Gross Margin $0 $0 $0 $0 #DIV/0!
Internal and NRE Costs $0 $0 $0 $0
SGA Costs $0 $0 $0 $0 6%
Warranty Costs $0 $0 $0 $0 2%
EBITDA effect - 3 year lifecycle $0 $0 $0 $0
Net EBITDA Present Value (2012 $) $0 $0 $0 $0 10%
Discount rate
Return on Investment #DIV/0!
Action Cam Eyeware
2012-2015

13. Financial Summary – worst case
Project / Product
Lifecycle
Product HD Std Res Prescription
Total
Estimate Lifecycle Volumes 0 0 0 0
Net Distributor Price $244.30 $174.30 $279.30
Total Lifecycle Revenues $0 $0 $0 $0
Total BOM Cost $119.85 $109.05 $113.04
Total Lifecycle COGS $0 $0 $0 $0
Total Gross Margin $0 $0 $0 $0 #DIV/0!
Internal and NRE Costs $0 $0 $0 $0
SGA Costs $0 $0 $0 $0 6%
Warranty Costs $0 $0 $0 $0 2%
EBITDA effect - 3 year lifecycle $0 $0 $0 $0
Net EBITDA Present Value (2012 $) $0 $0 $0 $0 10%
Discount rate
Return on Investment #DIV/0!
Action Cam Eyeware
2012-2015

14. Internal and NRE Costs
Internal R&D Costs
FTE COSTS Rate Hours Utilization Total
Product Manager $70.00 0 50% $0
Project Manager $70.00 0 50% $0
HW Engineer $70.00 0 50% $0
SW Engineer $70.00 0 50% $0
Mech Engineer $70.00 0 50% $0
PMM $70.00 0 50% $0
TOTAL $0
NRE COSTS
Tooling
1
$0
NRE ODM
1
$0
NRE Application
2
$0
Compliance
1
$0
ID development
3
$0
SW development $0
Travel
4
$0
Documentation
5
$0
TOTAL $0
TOTAL $0

15. Margin Calculations
HD Standard Res Prescription
Monthly volumes 0 0 0
Annual volumes 0 0 0
ODM BOM cost FOB Hong Kong
1
$0.00 $0.00 $0.00
3rd party application license fee
2
$0.00 $0.00 $0.00
Air Freight to KC $3.10 $3.10 $3.10
Total BOM cost $3.10 $3.10 $3.10
Launch price ($) $349.00 $249.00 $399.00
Distributor margin
4
30% 30% 30%
Net distributor price $244.30 $174.30 $279.30
Gross Margin $241.20 $171.20 $276.20
GM % 99% 98% 99%

16. Helmet Camera Manufacturers
• Dongguan Gaoki Electronics Industry Factory
• Shenzhen Asmile Technology Co., Limited
• Shenzhen Zhongshixun Technology Co., Limited
• Shenzhen Laesent Technology Co., Ltd.
• Shenzhen Futian SEG Plaza Excellence Exploiter Electronics Business Department
• Shenghong Electronic S&T Co., Ltd.
• Shenzhen Avery Electronic Co., Ltd
• Shenzhen MHC Technology Co., Ltd.
• Shenzhen Campark Electronics Co., Limited
• Somax (Shenzhen) Tech Co., Ltd.
• Shenzhen Adika Tech Co., Ltd.
• Shenzhen CG Electronics Co., Ltd.
• Shenghong Electronic S&T Co., Ltd.
• Shenzhen Risest Technology Co., Ltd.
• Shenzhen Kome Technology Co., Ltd.
• Shenzhen Speed Sources Technology Co., Ltd.
• VG (Shenzhen) High Tech Ltd.