Investors Q&A

NOTE WORD DEFINITION:

STARTUP refers to the Celestavia design, manufacturing and installation company.

ENTERPRISE refers to the operational companies for each country route.

    1. Will CELESTAVIA pay dividends, if so, when? Yes and no.    Each Celestavia enterprise company that is installed is expected to pay dividends; pretty much be the same as most utility infrastructure companies do, i.e. water, electric, cable TV, internet, etc. Depending on the economy of the country dividends could be in the double digits. Celestavia startup design company, has no plan to pay dividends.

    2. Do you see your investors as seeking an “Exit” (IPO or being acquired) to make money or, as being long-term investors seeking dividends? We see no reason why an enterprise basic transportation infrastructure investor would like to exit such safe, secure and lucrative business.  The price of the shares of these companies and yearly dividends should hold quite stable for many reasons, among them #1 no room for future competition, this is not like internet, where you can compete.

    3. What is the problem or opportunity that CELESTAVIA addresses? Celestavia gets rid of poor, slow, insufficient and unsafe transportation.  The opportunity lies in providing a complementary all-inclusive and in some cases only transportation system.

       

      Very high level of passenger safety; No contamination; Faster; Competitive cost.Society at large will also benefit enormously by saving time, minimal environmental impact; overall better mental health of the passengers, and most important by saving lives due to automotive accidents.

    4. What are the benefits that CELESTAVIA provides? To whom? The primary benefits are to the passenger via #1 Safety, #2 Comfort, #3 Guaranteed pickup and time arrival.  Secondly, all industries that use package and heavy load transportation.  Companies such as Amazon will benefit enormously from using our package door-to-door service and in partnership with us.

    5. What is the total market size? Based on city sizes we estimate about One Billion people living in 1,170  cities worldwide of population of 500,000 to 30,000,000.

    6. Do you understand this market; do you have experience in this market? This is a brand new market. That said, it is not a difficult sales pitch, since most cities and countries have many transportation problems, Celestavia offer a simple, low cost and profitable solutions to most of the transportation problems.

    7. Do you know how to sell to this market?  Celestavia is more of a political new legislation project than a technical one.  There is little to no technical challenges/obstacles, but there are some when it comes to the legal system, since there are no regulations in place for this news form of transportation.  For the legislation we are contracting out to companies that are experts and have offer us to have it done in 90-120 days in countries such as Ecuador and Peru.
      A key point about this market is that Celestavia is about 1/10 the cost of any other transportation system, such as train rail, asphalt/cement road, and bridges.

    8. Is this market growing? Absolutely, especially in all the undeveloped countries.

    9. Are you marketing on social media? Why not? Though social media can help, the target audience is Mayors, Prefects, Governors, Minister of Transportation and President/King/Prime Minister, etc.  Our main focus is on reaching this audience in a direct person-to-person contact not social media, which would reach many but not the needed audience.
      We also have plans of adverting in key association, such as the Mayor’s association, which is a quick, simple and low cost of reaching many mayors simultaneously.

    10. Does CELESTAVIA have a long sales cycle? Yes, selling multi-million to multi-billion dollar projects is a long sales cycle.

    11. How would you scale up in this industry? We can scale quickly by using present car manufacturing companies to build the carriage, chassis and cabins

      There are many construction and power-line companies throughout the world that would be quite competent to install the towers and cables.

    12. Describe your competitors? In the state-of-the-art aerial cable transport there are none.

      The present competition is not even close.   All have made the mistake of thinking that the world needs more speed, when in fact, it is easy to predict that the world is going in the exact opposite direction, speed will no longer be the ruling reason for the choice in transport.  Going 350-500MPH you cannot easily stop, therefore very few entry/exit/stops.  Celestavia city average speed is expected to be 35MPH, yes slow, but with as many entry/exits as needed to provide a very similar service as an automobile does.  Note: that in many if not most cities, a steady continues non-stop 35MPH service is 3-10X faster than what is available now on peak traffic hours.  On rural, straight runs, we expect to be able to go a bit faster, perhaps even reach 90MPH.

      It is hour observation and prediction, that in the future less and less people will want or need to go as fast as we do now.  Though we all know quite well that fast now is quite relative… we all often experience traffic jams, with Celestavia there are NO traffic jams, your arrival times is always guaranteed to the second.

    13. Is there a high or low barrier to competitor entry? ULTRA HIGH.  Not just money/funding, technologically it is quite complex to put all the technology in place for a CELESTAVIA system.

    14. In what way or ways is CELESTAVIA better than its competitors? Celestavia offers a very all-inclusive, complete system, where all the competition systems are limited in the types of service, also require significantly more expensive and complex infrastructure, such as:

      – Celestavia is able to go from mountain-to-mountain, where none of the competition can.  Celestavia in most cases does NOT require a bridge, except in very long over large bodies of water, where there are no mountains.

      – Celestavia offers a complete road replacement system, where the competition only offers a complementary system.

      – Celestavia is able to transport up to 48 TONS, where the competition is only for a few passengers at a time.

    15. In what way or ways is CELESTAVIA different from its competitors? Mainly, in the fact that the competition does not know about all the technologies that can converge, never mind how to make use of them. For example, AI, there are very few experts in AI available, fault-tolerant multi-processor technologies, in fact, we could not find even one, other than Joel who designed and built such ultra complex hardware for Texas Micro, a company that no longer sells these computers.

      NOTE: The fault-tolerant computer system is a additional source of revenue.  These computers should be a requirement by law for all autopilot systems and probably will be.  Imagine the computer failing on any autopilot AI system, you are dead, not to mention, where it lands or hits could cause even more damage and death.  This is why, we will develop and use such technologies, in order to reduce failure to almost zero, the chances of our computer failing is nil.

      Celestavia offers a complete transportation solution, where as the competition is only partial.  For example, Celestavia offers heavy container transportation, the competition does not.  Celestavia offers a short entry/exit every 250 meters, whereas the competition does not.

    16. Comparing alternatives: is CELESTAVIA faster, cheaper, safer, more efficient, more profitable, more luxurious than its competitors? How so? Celestavia is slower, BUT has the option of way more entry/exit points, wheres the competition does not.  Celestavia pricing is significantly more competitive.

      Celestavia is more profitable since upfront cost is less than the competition.

    17. Is it possible for you to build a Competitive Moat around CELESTAVIA? The expense and time to get to scale are very great to become a good competitor.

    18. Cost-wise, how does CELESTAVIA compare with a 60-passenger bus on the same route? Depending on the country, the cost of one kilometer of track only is $2M-$218M, plus the buses, which cost on average $125K each.  Celestavia cost can be as low as $4.8M Km including all the cabins and AI automation.  See  https://www.facebook.com/1536414893350391/posts/2034951740163368/

      For example:

      – The city of Loja, Ecuador has a population of 225,000 in an area of 285 km2, with approximately 25,000 autos, at an average cost of $25,000 for the autos, that is a total of: $625M, 2,000 taxis at an approximate cost of $50M, 208 buses at a cost of approximately $20M, approximately $100M in trucks, plus on the very low end $200M in roads.  Total: $995M.  Celestavia can provide better service for less than half the cost, and NO accidents and delays.

      – Celestavia Peru’s Pan-American route is at $9M / Km, including many high-rise stations.   The current competition doesn’t even come close.   Everyone has made the mistake of thinking that the world needs more speed, when in reality, it is easy to predict that the world is going in the exact opposite direction, speed will no longer be the dominant reason for choice in transportation.  Going 350-500MPH you can’t stop easily, so there are very few entries/exits/stops.  The average speed in the city of Celestavia is expected to be 35MPH, yes, slow, but with as many entrances/exits as necessary to provide very car-like service.  Keep in mind that in many, if not most cities, 35MPH continuous service is 3 to 10 times faster than what is now available during peak traffic hours.  On rural and straight runs, we expect to be able to go a bit faster, perhaps even reaching 90MPH.

      It is time to observe and predict that in the future fewer and fewer people will want or need to go as fast as we do now.  Although we all know very well that fast now is quite relative… we all often experience traffic jams, with Celestavia there are NO traffic jams, your arrival time is always guaranteed to the second.

    19. What is your business model? We design, develop, and manufacture Celestavia and support transportation systems.

    20. What is the source of CELESTAVIA’s startup main revenues? Sale of systems.

    21. What is the source of CELESTAVIA’s enterprise revenues? Sale of passenger tickets, last mile competitive delivery service, high-rise commercial, residential building rental and advertising.

    22. What is the source of CELESTAVIA’s startup main expenses? Engineering, test and validation.

    23. What are the sources of expense in for the Celestavia enterprise?  The main expense is electricity, followed by all the common basic operational expenses, which are minimal due to the fact that almost everything is automated, including mechanical real-time diagnostics of all critical components; early earthquake and bad weather detection system; AI use prediction. All these functions used to be done by workers, are now fully computer automated functions, that increase the reliability enormously and reduce all the used to be common expenses.

    24. What additional revenue streams do you see in the near future for the CELESTAVIA startup?  Future sale of Multiprocessor Fault-Tolerant computers to many key infrastructure industries, aviation, space, communication; which is a huge market on its own.

    25. What additional revenue streams do you see in the near future for the CELESTAVIA ENTERPRISE?
      – Targeted advertising
      – 5G services
      – Retail stores space rental in the stations
      – Aggregate last mile delivery services. This service is for all carriers such as FedEx, UPS, DHL, Amazon, etc.

    26. What new/critical technology or innovation for CELESTAVIA have you developed?  Celestavia’s main innovation is the convergence of many state-of-the-art technologies, such as 5G, fault-tolerant computers, and AI

      As a future side business Celestavia will sell the Multi-Processor Fault-Tolerant Computer system to various industries, such as aviation, communication, transportation and other critical applications.

    27. How do you use AI in CELESTAVIA? We use AI for many business applications such as scheduling, for example, to stage cars for repetitive passengers.

      -Planing
      – Real time service requests
      – Mechanical and electronic failure prevention
      – Passenger assistance
      – Fault detection, such as earthquake, fires, weather
      – Passenger safety
      – Security (terrorist attack, vandalism, theft, passenger safety)

    28. Do you use Machine Learning? How? ML is part of the AI reservation system, to enable optimum user experience.

    29. IP? Celestavia IP is mostly in the custom operational AI and reservation application software, which is protected by standard copyright international laws. It is impossible to copy, since it is all protected by standard file encryption technology, plus each installation has to be custom configured for the intended route.

      NOTE: IP tends to be for specific components and not for complex converging technologies.   For example, even though 5G is an integral component of Celestavia, there is no 5G IP in relationship to Celestavia.  We simply integrate and use this technology.  Nice thing is that 5G needs “LOTS” of close proximity towers, and Celestavia has them.

    30. How does your IP separate CELESTAVIA from its competitors? Due to the large-scale application, Celestavia custom software apps  run in the millions of dollars in development, something that any want to be competitor would have to come to us or develop their own at a very high price.  If they do not have the skilled management as we do, the cost can easily run into the $100M and in the many more development years, this is the main reason no one other than Celestavia has made the proposal of such complex interoperable merging of technologies.  Large airlines are the closest comparison to Celestavia reservation and operational systems

      There may be some IP coming out of the Fault-Tolerant Computer system.

    31. What are you funding enterprise requirements?  $200M-$14+B depending on the city, country and route.

    32. Are the any CELESTAVIA’s consumer related computer/mobile apps?  The main app for Celestavia is the reservation system app, customer service app,  these apps will also be used for targeted advertising, an additional revenue source.

    33. What are the organizational components of a CELESTAVIA enterprise implementation?Celestavia City  Installation & Maintenance, Control Facility, cable and tower system installation and stations.

    34. What sort of interface must you have with governments – city, county, state, federal? Legislation, building permits, pole permits. We will maintain a connection to all installations regarding maintenance, expansion plans, financial performance, etc., for the life of the operations contract

    35. What is CELESTAVIA’s “secret sauce”?  Founders’ 40-years experience developing complex systems.

    36. Is CELESTAVIA a technology company? Very much so, in fact if it were not for our vast knowledge of how various technologies converge, Celestavia would not be possible.  This is perhaps the main advantage we have over any competitor.

    37. What are the major risks that CELESTAVIA faces? Difficulty in getting local, state, federal, and international implementation legislation completed. Computer chip supply chain problems.

    38. How much noise or vibration does CELESTAVIA make for people below on the sidewalk and for buildings close by? Approximately or less than an electric car.

    39. What is your path to profitability? Selling enterprise operation(s).

    40. What is your ROI? (return on investment) For the Celestavia startup, you will need to sign an NDA first, suffice to say that is way more than you expect.  We recommend that you read: Paradigm Shift Exponential Growth Investing explained –  https://docs.google.com/document/d/1jGa2f4keEEP3JsuBGcbmxKxqfmgdCMcIGOeIOnIn_Jk/edit?usp=sharing  for an understanding of the ROI potential in project such as Celestavia.

      For the Celestavia enterprise operational systems we estimate an range of: 4-15% annually paid in dividend.  Note that these projection are extremity conservative by any accounting standard.

    41. How accurate are the design cost estimates and financial forecasts?  In the words of Ramsey Yunan, a former professor of engineering at Rutgers and a mechanical engineer with more than 40 years’ experience, all aspects of Celestavia fall under the category of: “Minimum Expected Circumstances”. Basically, this means “No Surprises”.  This is due to the fact that ALL aspects, components and phases of Celestavia are very well known to the engineering community. From architecture, mechanical, electrical, electronics, and computer components, to large-scale project management, timelines and financial projections, to politics and legal legislation requirements, it ALL has been done before. Therefore, ALL forecasts, cost estimates and financial projections are based on well-known facts, which leads to a minimum of errors.  Celestavia is the merger and convergence of many well-known technologies and business practices, as contrasted with the de novo invention of something that has never been done before.

      We have been brainstorming Celestavia since 2012. Since then, we have consulted with many engineers and financial analysts to perfect all aspects of our design, cost, and financial forecasts.

    42. Do you plan on doing a crypto ICO?  So far yes, it seems like a good idea for all the enterprise projects.  We are in the process of bringing ourselves up to date on this new way to reach investors.

      So far, we have learned that the total crypto market cap reached $1T in January 2021 and in just a few months it reached $3T; this is with only 200M worldwide users… No question this is the way to reach trillions of dollars in investment for all sorts of projects.

      Companies and individuals are using initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities. ICOs  typically involve the issuance of crypto tokens, which the operators create and distribute using the blockchain technology.

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Celestavia uses new approaches to transportation that take modern technology — mechanical, electronics, fiber optics, radio communication, and computers — that haven't been applied in the transportation industry as a whole before.