ZTAG Overview

Mission & Vision

Core Mission: Bridge digital games with physical sports to create inclusive, engaging experiences for modern kids. Transform after-school and camp programs by combining video game mechanics with physical activity.

Vision Statement: Get ZTAG into every single classroom in America — 60 million kids. Build the next Nintendo generation by creating a common platform for physical play that combines embodied movement with digital engagement.

Origin Story (2018): At a Comic Con, a 9-year-old boy named Logan played ZTAG for 4 days straight. His father thanked Quan because Logan was normally shy and bullied at school, but ZTAG transformed him into the hero of the game. This moment crystallized the vision: technology can unlock social connection for kids who struggle to fit in.

Company Background

• Founded: ~2016-2017 (10 years in development as of 2026)
• Founder: Quan Gan (EECS Berkeley '06, former theme park interactive systems engineer)
• Revenue (2024): $2.3M
• Target (3 years): $100M
• Business Model: Hardware platform (wearable devices) + software cartridges + services (training, PD, support)
• Current Status: Inflection point — proven product-market fit in after-school/camp market, ready to scale to district-wide and classroom integration

Product Philosophy

Core Insight: Digital + Physical Convergence

"Video games are becoming more physical (VR, motion controls), and physical sports are becoming more video game-like (TopGolf, tomorrow's golf league). ZTAG sits at this intersection."

Design Principles

1. Digital Devices Enforce Rules: Unlike traditional playground games where cheating happens, digital enforcement = self-regulation
2. Video Game Mechanics → Higher Coordination: Roles, character states, objectives unlock deeper co-play
3. Speak Kids' Language: Modern kids are digital natives — meet them where they are
4. Behavior Correction by Design: Good game design naturally regulates behavior without adult intervention
5. Platform > Product: Like PC revolutionized classrooms, ZTAG wearables are the next computing platform for education

Products & SKUs

ZTAG System Components

ZTAGGER (Wearable Device)

• Wrist-worn wearable with LED display
• IR sensors for tag detection
• ESP32-based (MicroPython firmware)
• Buzzer, accelerometer, wireless connectivity
• Version 3 (V3) is current generation
• Manufactured in China via M5Stack partnership

ZUES (Central Hub)

• Raspberry Pi-based control unit
• Manages 24+ ZTAGGERs via WiFi
• Runs game software (Python/LVGL GUI)
• Connects to iPad/tablet for operator control
• Firmware: Code5 platform (new architecture in development by Malachi + Ryan)
• Future architecture: ESP Now mesh network for reduced jitter

Product Packages:

• Standard Kit: 24 ZTAGGERs + 1 ZUES + charging case + accessories
• Extended Care: Insurance/warranty program for heavy use environments
• Pricing: ~$10,000+ per system (district pricing varies)
• Non-Profit Pricing: Available for 501(c)(3) organizations

Software "Cartridges" (Games)

Current Library:

• Zombie Tag: Role-playing infection game (red/green LED states)
• ZTAG League: Virtual ball soccer/basketball hybrid (Rocket League inspired)
• Freeze Tag: Digital version of classic playground game
• Red Light Green Light: Self-enforcing traffic light game
• Catch the Train: Newest feature (IR-based tagging mechanics)

Development Pipeline:

• New cartridge monetization model (like Nintendo game cartridges)
• Platform approach: Community-created games in future
• PD training bundled with new cartridge purchases ($2,500-3,000 value)

Celebrity Product Line

• Separate SKU for direct-to-consumer/entertainment market
• Firmware relaunch planned (Feb 2026 discussions with Steven + Emily)

Team Structure (As of Feb 2026)

Leadership

• Quan Gan: Founder/CEO, strategic vision, product design, systems integration
• Charlie Xu: Co-parent (Gantom), operations, analytics, strategic planning

ZTAG Core Team

• Kris Neal (Kristin): Partner Relations & Community Building (formerly sales lead)

  • District-level relationship cultivation
  • Conference coordination (NAA, SHAPE America, BOOST)
  • Trade show logistics
  • Role transitioned Feb 2026 from sales to community focus

• Carmee Sarvida: ZTAG Pathfinder/Sales Operations

  • Lead triage & pipeline management
  • Quote generation, forms, documentation
  • Routes demos to Steve, district conversations to Kris
  • Newsletter development (MailChimp)
  • 6-month review Feb 2026

• Steven (Steve) Hanna: Playmaker Certification & Training Lead

  • Onboards all new ZTAG customers (45-min initial training)
  • Demo coordination (owns equipment + laptop setup)
  • Field support & troubleshooting
  • Develops certification materials
  • Former game truck operator, now internal team

• Paula: Content & Documentation

  • Video production, marketing assets
  • Works with Carmee on document formatting

Engineering Team

• Malachi (Mal): Lead architect, Code5 platform development, firmware

• Ryan Summers: Junior developer (30 hrs/week + 20 hrs Starbucks)

  • Working toward full-time role (Q2 2026 target)
  • Learning from Mal via PR reviews
  • MicroPython, LVGL, architecture exploration

• UTF Labs (Pakistan): Offshore development team

  • Game implementation, maintenance work
  • Supplemental to core US development

Future Hires

• Benefits rollout Q2 2026 (health insurance via Justworks)
• Bringing core development stateside (reduce UTF reliance)

Revenue Model

Primary Market: After-School & Camp Programs

• California ELOP (Expanded Learning Opportunities Program): $4 billion annually
• 21st Century Community Learning Centers (CCLC): Federal grant program
• Title I Schools: High free/reduced lunch populations get prioritized funding

Revenue Streams

1. Hardware Sales: One-time system purchase ($10,000+)
2. Extended Care: Ongoing warranty/insurance
3. Software Cartridges (Future): New games/programs post-purchase
4. Professional Development: Training sessions ($2,500-3,000)
5. Playmaker Certification: Community-run events (revenue share TBD)

Sales Pipeline Structure

Trade Show → District → Pilot → Rollout

• Embodied experiences at conferences (NAA, SHAPE America, BOOST) convert well
• Direct online leads struggle (no social proof, reputational risk)
• Schools max $3,000 budget without upper approval
• New Strategy (2026): 2-month pilot program at $3,000
  • Reduces psychological risk for teachers
  • Builds social proof at single school
  • Converts to full district purchase after proof-of-concept
  • Unlocks 100x revenue potential vs. single-site sales

Pipeline Conversion Challenges:

• Social media leads lack peer validation (browsing alone on phone)
• Teachers risk-averse (don't want to fail publicly)
• Budget authority fragmented (teacher → principal → district)
• Need to guide leads "up the chain" to right decision-maker

Current Pipeline (Zoho CRM):

• 386 total deals, $6.64M value
• 216 closed won, $4.2M revenue
• Demonstrates proven sales track record

Target Markets

Primary: California K-12 After-School Programs

• Why California: $4B ELOP funding, centralized grant structure
• Target: 443,000 kids waiting for after-school programs (Oregon alone)
• Focus Districts: Title I, high FRPM (Free/Reduced Price Meals) percentages
• Entry Point: Site coordinators at California After-School Network events

Secondary Markets

• Physical Education (PE): SHAPE America conference focus, budget unknown
• Parks & Recreation: Community programs
• Entertainment/Party Rental: Game Truck operators, event companies
• Professional Development: Entrepreneurship/career pathway programs

Market Education Challenge

ED100.org Certification: All customer-facing team members should complete this free California education funding certification to understand:

• State → County → District → Site budget flow
• Grant structures (ELOP, CCLC, Title I)
• Decision-maker hierarchy
• How to "unlock the combination lock" (right ingredients, right order)

Competitive Positioning

Direct Competitors: Not well-documented in available sources (requires research)

Differentiation:

• Only platform bridging digital + physical at scale
• Self-enforcing rules (no cheating, reduces adult supervision)
• Wearable platform (not just a game, a computing platform)
• 10-year development head start
• Strong theme park + interactive systems engineering background
• Proven education market fit (not stuck in entertainment niche)

Comparison to Martial Arts/Sports:

• More inclusive than elite sports (rec vs. competitive)
• Lower barrier than traditional sports equipment
• Works for bench warmers, not just starters
• Creates instant engagement without months of skill-building

Strategic Partnerships

Playmaker Network

• Eric (Watch Out LLC, Wisconsin): PE teacher, independent operator

  • Bought system with own money
  • Runs weekly community events (3 years)
  • Beta tester for new features
  • Will present at SHAPE America 2026 (ZTAG sponsorship)

• Jae (Oregon): Sports academy owner, Taekwondo background

  • 12,000 sq ft facility
  • Interested in entrepreneurship pathway programs
  • Potential permanent installation with lighting integration (Gantom tie-in)

Technology Partners

• M5Stack (China): Manufacturing partner, Teresa contact for DHL shipments
• Gantom Lighting: Sister company (Quan's other business), theme park lighting
  • Potential for permanent ZTAG installations with effects (lighting, fog, smoke)
  • Universal, Disney client base
  • Tariff optimization research (Lisa Phillips contact)

Grant Cycles & Funding Windows

Note: Detailed grant timelines need research. Key programs:

• ELOP (California): Annual cycle, exact dates TBD
• CCLC (Federal 21st Century): Application windows vary by state
• Title I Funding: School year budget cycles

Action Item for Phase 4: Build detailed grant-cycles.md with application deadlines, requirements, and automated reminder system.

Key Conferences & Events

2026 Calendar (Confirmed)

• Feb 24-28: CA Site Coordinator Symposium (Long Beach) — ZTAG is front-page sponsor
• Mar 5-6: Region 3 Conference (Kris handles)
• Mar 11-14: NAA (National AfterSchool Association) Maryland (Steve solo)
• Mar 17-21: SHAPE America (Kansas City, Missouri) — Quan + Charlie + Eric
• BOOST: Dates TBD

Conference Strategy

• Exhibit at trade shows for embodied demos
• Invite existing customers to co-present
• Follow up 3 months post-conference (Paula + Kris workflow)
• Use big events to reconnect with warm leads (vs. cold sales calls)

Current Gap: Need system to track conference ROI (how many leads → sales?)

Technology Stack

Hardware

• ESP32 microcontrollers (ZTAGGER)
• Raspberry Pi (ZUES)
• IR sensors, LEDs, accelerometers, buzzers
• Custom PCB design
• Injection-molded enclosures

Software

• Firmware: MicroPython (V3 generation)
• ZUES: Python + LVGL GUI
• Code5 Platform: New architecture (Malachi lead)
• Future: ESP Now mesh network (reduce WiFi jitter)
• OTA Updates: Over-the-air firmware deployment (currently experiencing issues)

Development Tools

• AI-Assisted: Ryan using Claude + ChatGPT via Cursor
• Version Control: Git (internal)
• Testing: Beta customers (Eric, others)

Growth Trajectory & Milestones

Historical

• Pre-2020: Entertainment focus, struggled to find market fit
• 2020-2021 (COVID): Zero revenue, continued development on vision
• 2022: Pivoted to education market, found product-market fit
• 2023-2024: $2.3M revenue, Zoho ecosystem adoption
• 2025: SBA loans secured, team expansion, systematic sales process

Near-Term (2026)

• Q1: Role realignment (Kris → community, Carmee → sales ops, Steve → training)
• Q2: Benefits rollout, Ryan full-time, pilot program launch
• Q2: In-person team meeting (Kris, Steve, Charlie, Quan) for strategic planning
• Q3-Q4: District-wide pilots converting to full deployments

Long-Term Vision (3-5 years)

• Year 3: $100M revenue target
• 5-10 years: ZTAG in every classroom in America (60 million kids)
• 20+ years: "20 years to build an overnight success" (Jensen Huang wisdom)
• End Game: Next Nintendo — platform recognized by an entire generation

Challenges & Open Questions

Operational

• PD Monetization: Should free training convert to paid service?
• Entertainment vs. Education: Focus clarity needed (education is priority)
• International Expansion: Potential but not current focus
• Staffing: Small team, high demands, need to protect founder energy

Technical

• Firmware Stability: OTA update failures at some sites (Millstone 4/24 issue)
• WiFi Jitter: Timing sync issues in crowded environments → ESP Now solution
• SD Card Distribution: Operators not receiving upgrade kits (systemic failure)

Strategic

• Social Media Leads: High volume, low conversion (different psychology than trade shows)
• District-Level Sales: Complex decision chains, need better "combination lock"
• Career Pathway Curriculum: Entrepreneurship program idea needs development
• Newsletter Launch: Carmee to own, not yet active

Founder Philosophy & Decision-Making

Jensen Huang Principle

"It takes 20 years to build an overnight success." — Quan met Jensen at Berkeley (2003), took advice to heart. ZTAG is 10 years in, positioned for the next 10.

Risk-Taking & Systems Thinking

• Calculated risks (e.g., blue book cheat in college for strategic GPA)
• Pattern recognition (observing systems, finding workarounds)
• Long-term vision over short-term wins
• Bootstrap mentality (survived COVID with zero revenue)

Loss Function Optimization

• Embodied vitality > relational integrity > founder sovereignty > business momentum
• Skiing is state amplifier, not leisure (minimum frequency protected)
• Weekly Charlie time non-negotiable
• Deep work blocks protected from interruptions

Minnie AI Philosophy

"Minnie optimizes — it does not opine." Agent reflects tradeoffs, surfaces data, but never moralizes or tells founder what to feel. Human-in-the-loop always. No sending as Quan without explicit written authorization.

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Document Version: 1.0
Last Updated: 2026-02-10
Sources: Meeting transcripts (Ryan Summers, Jae, Kris Neal, Carmee), MEMORY.md, master-plan.md, user-timeline.md, daily notes
Next Update Trigger: VTO document review, additional team meetings, grant cycle research