Executive Summary

Panoptic Systems, Inc.


Inspired by the heightened need for counter-terrorism technologies brought on by the terrorist attacks of 9/11, Panoptic Systems, Inc. was formed by Roger Barry and Philip Van Nedervelde.

The Bush Administration's fiscal year 2008 budget proposal calls for $53.4 billion in total funding for homeland security. For the most part, the funding reflects the maturing of programs in the Department Of Homeland Security and, equally important a bolstering of domestic security, counter terrorism, critical infrastructure protection and preparedness programs in other federal agencies.

Drawing on Van Nedervelde's extensive experience in the design and implementation of 3D user-interface systems, both partners believed that facilities' security monitoring systems, protecting both governmental as well as private business venues, could be made to be dramatically more efficient.

This is the core of the Panoptic Systems solution.

This was the genesis of the C-Thru System technology empowers current security agents, with limited training, to better monitor several orders of magnitude more camera feeds and other security related data-feeds.

Our proposed Panoptic C-Thru surveillance solution enables one or more surveillance agent(s), using a single-high-resolution (auto-stereoscopic) display, to at-a-glance remotely monitor the security situation of an arbitrarily large number of locations.

In essence, the system significantly empowers surveillance agents with abilities akin to X-ray like "God's Eye View" super-sight. The agents have compre­hen­sive overview. They can see, hear and transport their focused viewpoint through walls; floors and ceilings; can zoom into and monitor a specific location.

Our system enables an agent to effectively have eyes and ears in hundreds if not thou­sands of places at the same time. By design, our transit-site security surveillance system still neither overwhelms nor tires the agent with the massive amount of information being processed and dis­played.

On the contrary, the surveillance agent's mental load is radi­cally optimized towards monitoring only what is most critical to security: presence and movement of (groups of) people and vehicles inside a campus/site and its buil­ding(s) as well as security-sensitive events such as fires, smoke, badge access, assem­blies, gun-shots, people running etc.

These security-critical events and alerts are adapted into one system then, correlated against each other based upon defined security policy and rules. This automated root cause analysis enables disparate real-time security data to be combined into an integrated panoptic security command center (over)view.

All information streams and elements which may detract from the overarching goal of transit-site security surveillance are dynamically sub­tracted and not displayed unless desired. The agents exclusively monitor what they need to see and hear from the point of view of surveillance and transit-site security.

With funding in place, it is anticipated that the finished core solution based on the C-Thru technology should be ready for marketing within as little as 9 months. In the mean time, the company -together with its technology/R&D partners (see corporate website) is developing three additional proprietary companion products which could have a market introduction as early as July 2010.

They are: A patented facial recognition system that is not limited by the need for a "static read" on a suspect's face or limited lighting.

A patented Video-over-IP camera-phone which can be utilized by on-site security agents to better communicate with their central control and their security peers. This product may also be sold to the military.

A digital flight recorder that records digital info, audio input as well as video input. This can be used in the panoptic system to retrace the actions of an identified security risk identified by the Panoptic System. The R&D on these three products has been completed and they are ready for productization. Further information about these, including published White Papers, are available upon request.

At this time, we are in the process of applying for governmental development grants from appropriate federal agencies such as the Department of Homeland Security. It is hoped that we can obtain $2M+ within the next 6 months through these channels. Note that this approach historically also leads to the acquisition of governmental and other customers for the technologies developed with the aid of the grants.

In a swiftly growing market estimated at upwards of forty billion dollars annually, the company will focus on three categories of physical venues.

- Military Bases / Hotels / Casinos/ Entertainment Venues

- Federal Buildings/ Courthouses / Hospitals

- Large retail operations, e.g. Wal-Mart outlets

Additionally, we are planning to equip selected airports with the C-Thru Panoptic Security System. This longer term goal is constrained by local requirements and political support that will be required for such undertakings. It's important to note that the 2005 Homeland Security Budget for protecting ports-of-entry and our borders is $17 Billion.

The management team includes highly qualified personnel chosen for their expertise both in the areas of systems design, particularly in optical physics, data management and 3D user-interfaces. Resumes available on the corporate website: http://www.panopticsystems.com/.


The company plans to rise $6M in exchange for 25% ownership. To accomplish the above stated goals and exceed solvency, minimal financial requirements will be $3M.

In 2001 the Department of Homeland Security was organized and funded with $11 billion. By 2007, this budget had increased by four hundred percent. The report from the Office of Management and Budget in January 2005 states that the Department of Homeland Security (DHS) now will target first-responder grants to high-threat area facing greatest risk, including over $890 million to support aviation security and other transportation security activities with emphasis on improving greater efficiency in existing systems.

In addition, the report goes on to say that $3.6 billion is budgeted to support first-responder grants and assistance with better targeting to high threat areas of public infrastructure vulnerability facing the greatest risk.

It is estimated that it will take approximately five months to our first grant money with a goal of $2,000,000.00. There will be other grant applications to follow as new technologies appropriate to "Home Land Security" are identified and developed.

It is anticipated that in nine months, Panoptic Systems, Inc., will begin marketing a number of its core technologies (See Business Plan) and begin generating profit. Currently, new customer sales commitments already exceed projected profits of $50,000,000.00. At this time, management proposes to initiate a second round of financing to raise $20,000,000.00.

The original investors will be offered the opportunity to receive their original investment back if they agree to a fifty percent dilution of ownership. For example; if they originally invested the full $6 million, they would receive these funds back and still own 12.5% of the company's ownership which will then be valued at over $50 million.

The balance of the funds will be used to purchase an ownership position in a number of our "Co-Development & Marketing Partners" (See Business Plan). These investments will be made only when these companies agree that, if and when Panoptic Systems decides to create a Public Offering, they will combine their company with a number of others under the Panoptic Systems corporate banner, thus creating a very large Security IPO offering that will have lots of investment sizzle.

Panoptic Systems, Inc.
6269 W. Olympic Blvd., Los Angeles, CA. 90048


(310) 601-8234
Contact: Roger C. Barry, Chairman