The ChalkBites Inc. offering is now closed and is no longer accepting investments.

ChalkBites Inc.

Training & Gaming in an Extended Reality

ChalkBites Inc.

Training & Gaming in an Extended Reality

Davenport, IA
Business to Business
Gaming
ChalkBites is a virtual reality and augmented reality corporate training software company. The teaching and testing tool will be used by law enforcement, HR directors, manufacturers, and more. ChalkBites is an effective and affordable solution for offering training simulations whose real-world counterparts are dangerous, expensive, or need to be recreated on a large scale.

$168,885

raised
101
Investors
$4M
Valuation
$0.45
Price per Share
$200.70
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
0
Days Left

$168,885

raised
101
Investors
$4M
Valuation
$0.45
Price per Share
$200.70
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
0
Days Left
This offering ended on December 28, 2019 and is no longer accepting investments.

Reasons to Invest

We are a pioneer in VR and AR - we have completed projects for John Deere, Minute Suites and CBRE
Our brick-and-mortar location, Paradigm, hosts VR corporate training events as well as VR gaming and esports tournaments
We have retained one of the nation’s leading consulting firms to assist with the creation of law enforcement training and have distribution from Synnex, a multinational software distributor

Providing Proper Training for Rare or Dangerous Situations is Difficult and Expensive

Proper police training is a serious issue nationwide. There are 18,000 law enforcement agencies in the United States and 100% train their officers. It is difficult to effectively simulate Shoot/No-Shoot scenarios, crime scene management, and de-escalation in an affordable capacity on such a large scale. 


However, this is not an issue exclusive to law enforcement. Others working in electrical, construction, road building, machine operation, and logging, to name a few, also face difficulties in receiving proper training for the job. Their profession often requires them to use their skills in scenarios that are:


  • Rare - such as hanging electrical wire after a natural disaster

  • Impossible to Train - such as fixing underwater oil pipe bursts

  • Dangerous - such as managing explosives

  • Expensive - such as underground pipe repair for water companies

These industries employ thousands of people, creating a widespread need for a scalable and adaptable training solution.

As we choose industries to target, we will be flexible and nimble. If we see an opportunity that is low-hanging fruit, we will put it through our ROI matrix and potentially pursue it. During the early days of an industry, events, products and opportunities come and go quickly. We are poised to be able to take advantage of opportunities faster than others.


A Virtual & Augmented Reality Training Library

We are building a library of virtual and augmented reality training simulations accompanied by a slide deck curriculum. When purchased, the law enforcement agencies receive both the virtual reality headset and access to the simulation library.


Our virtual & augmented reality training tools offer a less expensive and more effective option for preparing for the high-risk scenarios faced by law enforcement and security personnel. For this reason, our technology is likely to be highly attractive to policymakers and law enforcement agencies.


In addition to providing a solution for law enforcement, our software will be applied to other industries. Our current roadmap calls for us to target large industries such as construction, machine operation, logging, and more, that have at least 10,000 potential customers and a need for an innovative training product. 

Multiple Potential Industries for our Product

All law enforcement agencies must train and there are 18,000 in the US alone [Source: US Department of Justice 2016]. If 10% of these agencies adopted our $15,000 software and library, that would put us at $27 million in business. 

Additionally, our product can be applied to a wide variety of industries:

For some industries, we believe a $5,000 startup cost for purchase of our content makes sense, while others may be able to absorb a larger number, in the range of $15,000.


The total of these six verticals puts our addressable market at $1.49 Billion in the US alone and increases substantially with doubles internationally expansion. Fortune 100 companies such as Walmart, UPS, and Caterpillar are leading the way in employing VR for training. Most companies cannot afford the high-price development costs associated with creating their own unique VR training program, so they will be able to turn to ChalkBites for a less expensive, off-the-shelf option. 

We've Created Virtual Reality for Large Companies

ChalkBites has completed virtual reality projects for CBRE, Minute Suites and John Deere. 


We have completed the design and construction of Paradigm, our training and gaming center, which has been in use since August 2018. We also deployed our mobile app-based training program. 


As for the law enforcement training virtual reality demonstration, we have retained our subject matter expert from one of America’s premier consulting companies, collected the curriculum to be created into VR, retained a curriculum writer, and put a development team in place. 

Safe and Scalable Virtual & Augmented Reality Training Programs

We work with experts to create virtual reality training programs for professions whose practical applications are difficult to simulate. Our VR programs provide an opportunity for workers to see, feel, and complete tasks for which they are hired in scenarios that are rare, dangerous, and even impossible to recreate through traditional training methods. Using a head-mounted VR display, we provide workers the opportunity to experience situations such as shoot/no-shoot scenarios for law enforcement, hanging wires for electricians, and managing explosives for firefighters.  


VR provides an engaging and emotionally positive training experience. The interactive element of VR provides better training than strictly video. ChalkBites technology and training software provides workers with a safe, effective way to train for high-risk scenarios, creating a safer world at large. 

Five Studies Prove Effectiveness

1. Study: A Modular Interactive Virtual Surgical Training Environment


Conclusion: Surgeons who used VR training for 2 hours improved their time on task by 83% and were more than 70% “more efficient” in movement and measurements. There was no comparison group in this study.


Published by: University of Michigan Medical School in partnership with Cybernet Systems


2. Study: Virtual Reality Training Improves Operating Room Performance


Conclusion: Surgeons trained via Virtual Reality (VR) to perform operations. Trainees performed 29% faster and made 6x fewer errors than those trained via conventional methods.


Supported with a grant from the Fulbright Distinguished Scholar Program (A.G.G.). Presented at the 122nd Annual Meeting of the American Surgical Association.


3. Study: Development and Analysis of VR Technician Training and Methods


Conclusion: In a technician training study, those who used VR versus those who did not use VR had equal results. But, the study suggests that because of the deployment advantages of Virtual Reality (cost, scalability, ability to iterate), it should be used as a primary means for training. Further, in surveys following the study, 85% of participants preferred VR training to traditional.


Published by: Brigham Young University


4. Study: Virtual memory palaces: immersion aids recall


Conclusion: Study participants trained via VR demonstrated a 9% better information recall and made 41% fewer errors than those trained via Non-VR.


Published by: University of Maryland


5. Study: Measuring Virtual Simulation’s Value in Training Exercises - USMC Use Case


Conclusion: Study includes data from 29 training events that featured both a live and virtual training component. The training value assessment results show that when you augment live training events with virtual training, you can provide the same value for reduced cost. This covered training for air combat element (ACE), ground combat element (GCE), and logistics combat element (LCE).


Published by: US Marine Corps

Build Once, Sell 10,000 Times

We are building an AR/VR product to fit the training market that can be adopted by many agencies. We will deploy through distributors and sell at an initial price that includes hardware, setup, and access to the training library. There is also an annual fee for a subscription to the training library and product updates that create annual recurring revenue from customers. 


Using LinkedIn's sophisticated business targeting, we will engage an advertising and marketing campaign that reaches executives and decision makers in a particular field. We will also use trade shows and road shows as a way to connect with our potential customers so they can try out our gear. Furthermore, we will target subscribers of trade publications through platforms such as LinkedIn and Facebook to reach those who would benefit from our product.

Business Experience and Industry-Leading Product

Our founders, Steve Grubbs and Jim Thomson, are seasoned business veterans. Steve has strong and deep relationships with most of the largest tech companies in the world in their AR/VR/Enterprise divisions including Oculus/Facebook, Qualcomm, Microsoft, HP, Acer, Intel, HTC Vive, Lenovo, Google and Pico. He is also the founder of four successful tech companies. Jim is a former high-level executive at John Deere and a serial entrepreneur. 

In addition to connections in the VR space and business experience, ChalkBites has also figured out how to produce high-quality AR and VR content. In Steve’s work at his K-12 curriculum company, Victory XR, his virtual reality simulation won the award for best in the world from HTC Vive. It has created VR scenarios for schools that have been so highly regarded that Microsoft licensed the content and HP signed a national co-marketing deal. Due to the complex nature of VR, there is little competition in the space, but ChalkBites is already positioned to be a leader.

Innovating Training Programs Nationwide

We aim to complete the law enforcement de-escalation and crime scene investigation training program by the end of 2019. We’ll be hiring a nationally-recognized director of law enforcement sales with relationships across the United States. From there, we will work to find our first ten agencies to purchase the training package and deploy our content in location-based facilities across the US by the end of 2020.


Also, by the end of the year, we will choose two more VR training verticals with equally large addressable markets. One area we are exploring is training electricians due to the dangerous nature of the field. Through accomplishing these goals, we aim to become a national leader in the space of VR training centers by year’s end. 


Virtual reality dissection was named HTC Vive's international best in education. It was created by VictoryXR, the first VR company Steve Grubbs founded to provide curriculum in virtual reality for K-12 schools. 

VR & AR Leaders and Enthusiastic Young Minds

Our company is made up of employees, contractors, and consultants that bring a combined deep experience of the field. Here are some of the notable highlights of our founding members:


  • Built the best VR experience in the world as recognized by HTC Vive

  • Subject matter expertise in running one of the most progressive and cutting edge law enforcement academies in the United States

  • Deep curriculum experience taking print-based training and converting to software-based technologies

  • More experience running VR and esports events than almost any entity in the United States

They bring with them an optimism about using technology and software to change the world. Our company culture nurtures an enthusiasm for coding, development, and a culture for gaming that can be integrated into our training software and the esports world.

The Time is Now for VR & AR Training

Creating a Safer World

From Ferguson to Chicago, from Minneapolis to Los Angeles, states across the country are dealing with providing proper police training when it comes to de-escalation, shoot/no-shoot scenarios, and crime scene management. Many states are appropriating millions of dollars to provide the necessary training. All of these areas can be trained more effectively, and affordably, with VR simulations. 


However, providing proper training isn’t just a law-enforcement issue. And it isn’t just in the US. There are multiple industries operating around the world whose workers seek training for high-risk scenarios. ChalkBites’ VR training simulations keep workers safe while training for these uncommon or dangerous scenarios, which translates to on-the-job preparedness. 


Invest in ChalkBites and join us in creating a safer world!

Development Stage 

ChalkBites mobile training app is in the market and is currently used by existing companies, like LeClaire Manufacturing.

ChalkBites VR Training and Gaming center - Paradigm - is in operation and hosting regular esports tournaments. As VR & AR training tools are created, it will become a place where we can ‘train the trainers’ before they go back and work in their own facilities.


Our law enforcement AR & VR products are currently in alpha. The script has been written and reviewed by Darrin Tanner, a crime scene instructor in Dallas. In addition, Traci Cull, an attorney in North Carolina who also teaches criminal law at the college level, has assisted in the creation of the scripts. ChalkBites has begun the creation of the crime scene and the initial alpha scene has been created. 

The AR crime scene simulator is expected to be complete by the end of 2019.

Offering Summary


Company

:

ChalkBites, Inc.

Corporate Address

:

5200 30th St SW, Davenport, IA 52802-3039

Offering Minimum

:

$9,999.90

Offering Maximum

:

$1,069,999.65

Minimum Investment Amount

(per investor)

:

$200.70











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

22,222

Maximum Number of Shares Offered

:

2,377,777

Price per Share

:

$0.45

Pre-Money Valuation

:

$3,999,825.00











*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below

The 10% Bonus for StartEngine Shareholders

ChalkBites will offer 10% additional bonus shares for all investments that are committed by StartEngine Crowdfunding Inc. shareholders who invested over $1,000 or made at least two investments in StartEngine's own offerings.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 1,000 shares of Common Stock at $0.45 / share, you will receive 100 shares of Common Stock, meaning you'll own 1,100 shares for $450. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement, unless their eligibility period has been extended through additional subsequent investments in StartEngine's own offerings.  

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

Perks

$500 investment: Every investor purchasing $500 of common stock will receive an autographed augmented reality training book when it's released in late 2019.

$1,000 Investment: Every investor purchasing $1000 of common stock will receive an autographed augmented reality training book when it's released in late 2019. 

+ $100 of playtime at Paradigm Training & Gaming Center

$2,000 Investment: Invitation to wine dinner with ChalkBites founder Steve Grubbs at 150-year old wine cellar.

+ Autographed copy of augmented reality book

$5,000 Investment: Every investor purchasing in excess of $5,000 of common stock will receive a PICO virtual reality headset with VR Education software installed. 

+ Invitation to wine dinner with ChalkBites founder, Steve Grubbs at 150-year old wine cellar. The dinner will be located in Davenport, Iowa and will be at the home of Steve and Kelli Grubbs. Transportation will not be provided to Davenport, but transportation will be provided from the airport to a hotel or the dinner. Lodging and flights to Moline International Airport are the responsibility of the investing party. Dinner and transportation from the airport are the responsibility of ChalkBites. 

$10,000 Investment: Set of three Pico VR headsets for the school, business or family of your choice. This includes free training software for a business or free education VR software for a school or family.

+ Invitation to wine dinner with ChalkBites founder, Steve Grubbs, at 150 year old wine cellar. 

The Company will not incur any irregular use of proceeds.


Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$386,385.00 USD
$27,031.00 USD
Cash And Cash Equivalents
$3,803.00 USD
$31.00 USD
Accounts Receivable
$0.00 USD
$0.00 USD
Short Term Debt
$116,825.00 USD
$0.00 USD
Long Term Debt
$342,437.00 USD
$11,350.00 USD
Revenues And Sales
$117,003.00 USD
$28,755.00 USD
Costs Of Goods Sold
$3,753.00 USD
$0.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$88,588.00 USD
-$37,382.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Notice of Funds Disbursement

over 2 years ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, ChalkBites Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in ChalkBites Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

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