How 40 MBAs Helped Create a

Revolutionary Cyber Security Company

Santa Monica Ca: Cyber security may be the hottest, most talked about, fastest growing technology challenge facing companies of every size on the globe.  Huge enterprises are hacked daily picking off trade secrets and customer data.  Government agencies ranging from the IRS to national research laboratories are attacked upwards of 100,000 times per day. It is no longer an issue of who will be hacked, but how quickly you realize you have been hacked and how fast you can respond.

Gartner says cyber security is a $77 billion industry growing by 2020 to $175 billion.  Companies specializing in cyber security such as FireEye, Palo Alto Networks, CyberArk have multi billion-dollar market valuations, yet successful cyber attacks continue at an unprecedented rate.  With an estimate4d 500 new companies focusing on cyber security only one combines patented human knowledge and reasoning to combat the massive attack machines in this new computer generated war.

And it took 40 MBAs to realize that a latent software system created as a “person of Interest” tool by a Federal Government research lab sitting quietly on a virtual shelf in Richland Washington was a significant answer to today’s cyber challenge.  What gave these MBAs special insight into this software was the unique training they had received in the Entrepreneurship Program at the Graziadio School of Business and Management at Pepperdine University in Malibu California.

Larry Cox, PhD had created an entrepreneurship program at the Graziadio School based on the philosophy that creativity drives innovation.  Dr. Cox believed that most highly successful entrepreneurs identified a problem and then created an innovative solution to address that problem.  “We have developed a specific process to teach MBA students, business executives and researchers how to leverage internal assets to create innovative new revenue opportunities for their enterprises,” said Dr. Cox. 

Dr. Cox and a few colleagues created an independent 501c3 non-profit organization based on his innovation research called the Early X Foundation, headquartered in Santa Monica, CA. Early X was designed to work with the owners of intellectual property, i.e. patents, and help them identify multiple new commercial opportunities.  Opportunities that they had never thought of prior to Early X using its eXathon discovery process.  “It is an rewarding process to see these very smart researchers get excited as our teams of MBAs and business executives create new revenue streams for them right before their eyes. Its creative innovation in real time.”

In 2013 Early X connected with John McEntire, Technology Transfer Executive at one of the U.S. Dept. of Energy national research laboratories managed by Battelle Memorial Institute, – Pacific Northwest National Laboratory (PNNL)  Since the 1960’s PNNL, with its 5,000 employees and billion-dollar annual budget, had been one of the country’s top national security research facilities.  Early X and PNNL began to partner on ways to create new non-government funding sources for the lab through its latent patents.  This became critical to the lab due primarily to the funding cuts brought on by sequester in 2013. 

“We focused on the patented “person of interest” software PNNL called CHAMPION because it sounded so outrageous,” said Mike Sims, Early X co-founder. “Initially we had 10 Graziadio School MBA alums along with 35 business executives in one 90-minute eXathon session here in Santa Monica.  At the end of that 90-minute session we discovered 70 vertical market licensing opportunities for the CHAMPION software.”

Early X then hired 26 Graziadio School MBA Entrepreneurship alums and 10 MBA Entrepreneurship students, all trained in Dr. Cox’s distinctive creativity program, to develop market feasibility analysis and go-to-market plans for the CHAMPION software.  The MBAs were a very diverse group of young business people.  “One of our alums that helped had her day job at JPL steering the Rover on Mars,” said Dr. Cox. “With a highly diverse group of business people with different life experiences we were able to discover dozens of new opportunities for PNNL that their internal staff and engineers could never imagine.”

Subsequently, the Early X Foundation,, started a for-profit company, Champion Technology Company, Inc., CTCI (, licensed the software from Battelle, brought in some investors – including the founder of ServiceNow (NYSE:NOW) Fred Luddy, the co-founders of Skype, Europlay Capital Advisors LLC, and noted entrepreneur Louis Graziadio  – raised $1.75 million in a seed round and created a commercial version of the software to attack the cyber security challenge.  This software is called DarkLight computationalizes how a cyber analyst works and thinks to leverage human knowledge of the enterprise. 

“Our proprietary approach processes the massive amounts of data from network and security appliances with a patented formal Description Logic Reasoning Framework’, said John Shearer, CTCI CEO.  “We were most fortunate to hire the creator of the Champion software, Ryan Hohimer as our CTO, along with three of his highly regarded colleagues at PNNL.”

Today, CTCI recently launched version 2.0 of its first commercially available cyber security software DarkLight at PNNL to address the 100,000 cyber threats they have each day.  “We are in discussions and preforming demos for other major government agencies and several significant commercial entities globally,” noted Shearer. “Combining the muscle of computers with human knowledge of the enterprise is a powerful and swift response to the ever growing cyber security challenge we all face.”

Early X continues to leverage the more than 1,000 MBAs trained in Dr. Cox’s unique creativity process to work with companies looking to leverage internal assets into new commercially viable revenue streams.  “We have expanded from solely patented assets like Champion and DarkLight to internal employee training for companies that are not necessarily known as tech companies. Our process can be taught to any executive, manager or group of employees looking to grow their company, noted Dr. Cox.”

ABOUT The Early X Foundation. Early X is an IRS 501(c)3 designated nonprofit organization dedicated to educating and assisting researchers discover multiple new commercialization opportunities for their latent intellectual property assets.  Early X also helps train corporate executives, managers and employee teams to enable them to create internal innovation to drive new revenue.

ABOUT Champion Technology Company Inc. (CTCI).  CTCI was created by the Early X Foundation to leverage a specific patented software system created by Pacific Northwest National Laboratory, a Dept. of Energy national research lab. CTCI is the only company with a patented system to encode the human intelligence, enterprise knowledge and common sense reasoning of any analyst in any industry.  CTCI’s revolutionary DarkLight Cyber Security software performs complex enterprise user behavior analytics (UBA) through the ground-breaking creation of Programmable Reasoning Ontologies (PROs).

For more information,



2015 eXathon Generates 118 New Licensing Opportunities


Los Angeles Business Executives Focus Day on IP

From 3 National Research Labs


Los Angeles, CA.  The Early X Foundation invited 75 senior business executives and several MBA students and alumni to participate in its Spring eXathon event.  The eXathon was created to help owners of intellectual property assets discover multiple new revenue streams they had not thought of in the past.

“Out goal was to create 100 new revenue opportunities from the three IP assets we showcased,” said Early X Foundation President and Co-Founder, Dr. Larry Cox.  “By the end of the day we actually discover 118 new opportunities.”

 Mayor Eric Garcetti’s Economic Development team hosted the event in the Tom Bradley Tower at the Los Angeles City Hall Tower.  The three U.S. Government labs that participated were Lawrence Livermore National Laboratory presenting its 3D Graphene technology; Pacific Northwest National Laboratory presenting its Universal Parsing Agent technology; and Idaho National Laboratory presenting its Wide Spectrum Communications Technology. 

In addition to the Mayor’s office, the eXathon was sponsored by the Los Angeles Small Business Development Center Network, the Graziadio School of Business and Management at Pepperdine University, the Graziadio Family Foundation, T-Mobile and Primitive Feast Catering.




The Early X Foundation Presents the Spring 2015


e X a t h o nTM  

Intense. Collaborative. Commercial. 

100 New Business Opportunities

In 1 Day

Los Angeles, CA:  The Early X Foundation presents a day of IP discovery and commercialization featuring patents from three of the U.S. Government’s largest national research laboratories.

The eXathon challenge and opportunity: Create one hundred new business opportunities from three IP assets in one day.  May 20, Los Angeles City Hall, the Bradley Tower.  8:30am.

“We will demonstrate the Early X process for collaboration, discovery and creation of multiple new IP-backed businesses from a single IP asset,” reported Mike Sims, Early X Foundation Chairman.  “Our objective for the event is to create at least 100 new business opportunities from three remarkable government patents. It is a lofty goal but the combination of stunning Intellectual Property and successful business executives is a new formula for commercial success.”

The three IP assets that will be presented at the May 20 eXathon:

Lawrence Livermore National Laboratory - 3D Graphene.

Graphene is an allotrope of carbon in the form of a two-dimensional, atomic-scale, hexagonal lattice, in which one atom forms each vertex, has many extraordinary properties. It is about 100 times stronger than steel by weight, conducts heat and electricity with great efficiency and is nearly transparent (Wikipedia). This new type of graphene aerogel will make for better energy storage, sensors, nanoelectronics, catalysis and separations. The 3D printing technique to aerogels makes it possible to fabricate countless complex aerogel architectures for applications such as mechanical properties and compressibility, which has never been achieved before.

Pacific Northwest National Laboratory - Universal Parsing Agent (patented big data visualization software) -

Information workers using available extraction tools often spend more time cleaning, sorting, and reformatting data in preparation for analysis than analyzing the data itself. The Universal Parsing Agent (UPA) is a document analysis and transformation program that helps mitigate this problem by supporting massive-scale conversion of information into forms suitable for the semantic web. UPA provides reusable tools to analyze text documents, identify and extract important information elements, enhance text with semantically descriptive tags, and output the information that is needed in the format and structure that is needed. UPA is a prestigious R&D 100 winner. 

Idaho National Laboratory - Wide Spectrum Communications Technology  -

This R&D 100 winning technology is called Wireless Spectrum Communications (WSComm), which delivers a unique communication control channel breakthrough that narrows an existing technology gap in current radio frequency management of voice, video and data communications. It offers a patent-pending, robust solution that is spectrum-aware, spectrum-agile, and capable of coexisting with other services. This technology anticipates future requirements, fills an existing technology void, potentially expands the use of available radio spectrum, and offers secure, nearly undetectable control communication channels for use in public safety and national defense. WSComm is an innovative wireless technology platform based on a spectrum-agile algorithm that enables robust communications at or near the radio frequency noise-floor with maximum spectrum efficiency. 

The eXathon is being co-sponsored by Mayor Eric Garcetti and his Office of Economic Development; the Los Angeles Small Business Development Center Network; The Graziadio School of Business and Management, Pepperdine University; the Graziadio Family Foundation, and T-Mobile.

For more information:  Contact

The Early X Foundation

604 Arizona St.

Santa Monica, CA 90401



The Early X Foundation

 Is Pleased to Announce a Major Los Angeles

IP Discovery & Commercialization Event


e X a t h o nTM  

Intense. Collaborative. Commercial.


Creating 100 New Business Opportunities In One Day

Los Angeles City Hall Tower

May 20, 2015


The Event:  eXathonTM  is the Early X Foundation’s intense process where a diverse group of senior business executives, laboratory researchers and specifically trained MBAs collaborate using creative problem-solving techniques to identify multiple new commercial applications for latent intellectual property assets.  

The eXathonTM isIntense. Collaborative. Commercial.

The Hosts:  City of Los Angeles – Mayor Eric Garcetti and his Office of Economic Development. Sponsored by the Los Angeles Small Business Development Center Network; (and others to be named shortly)

The Presenter:  The Early X Foundation, a nonprofit IP commercialization organization.

The Intellectual Property:  Brilliant IP assets from Lawrence Livermore National Laboratory, ; Pacific Northwest National Laboratory, and Idaho National Laboratory  three of the largest and most important research labs run for the U.S. Government’s Dept. of Energy by Battelle Memorial Institute.

The Day’s Goal:  Create 100 new business opportunities from just three IP assets.  How will we do that?  We expect to identify 25 to 35 new commercial revenue opportunities for each of the National Research Lab assets.

The Place:  The 26th Floor of the historic Los Angeles City Hall Tower, 200 North Spring St. Los Angeles CA 90012

Date & Time & Program:  May 20, 2015 commencing with a 7:30am hosted breakfast, followed by two 90-minute eXathon IP discovery collaborations; followed by a lunch with 2 high profile panel speakers – Fred Luddy, Founder, ServiceNow (NYSE:NOW) a $12B IT Enterprise Management Company & TBA – Senior Partner, Sequoia Capital, one of the world’s most significant and successful venture capital firms; and the 3rd IP asset discovery collaboration.

 eXathonTM Sponsor Opportunities:  A few sponsor opportunities exist with this historic event: Title Sponsor. $7500.  Breakfast Sponsor:  $1500. Presentation Sponsors:  3 @ $3500.each  Webcast Sponsor: $2500. Media Sponsor:  $15,000.  Deadline:  April 30, 2015

eXathonTM  Participation Limited:  A limited number of senior business executives will be able to participate in the IP discovery collaborations.  All participants will have an “Early Look” at identifying amazing patent-backed business opportunities.  eXathon event collaborators will be invited to follow on events as these IP assets are developed with market feasibility analysis and go-to-market plans.  Please send an email to if you wish to join us as an IP “Early Look” collaborator.

Why Early Look & eXathon ?  Early X performed this same process on enterprise knowledge analytics software developed by the federal government’s Dept. of Energy (DOE) at Pacific Northwest National Laboratory, managed by Battelle Memorial Institute.  It was designed as ”person of interest” software that mimics the neocortex for homeland security related issues.  They called it C.H.A.M.P.I.O.N.  Subsequently our eXathon  collaboration identified over 70 vertical market commercial applications.  Early X created a for profit company – Champion Technology Company Inc. (CTCI), licensed the software and raised $1.54 million from investors including the founders of Skype and the founder of ServiceNow. Champion is currently finalizing beta projects in the cybersecurity and financial services for Spring 2015.

For More Information on this important and completely unique commercial opportunity, call Mike Sims at 310-924-2451 or email:

The Early X Foundation is an IRS 501c3 nonprofit organization




Early X Foundation receives IRS 501(c) (3)

status approval


The IRS approval was given with an effective

date of exemption as of May 16, 2012.


January 16, 2015. Santa Monica CA:  The Early X Foundation (EXF) is pleased to announce that the U.S. Internal Revenue Service (IRS) has officially designated EXF as a tax-exempt public charity under the IRS code section 501(c) (3).

“This is an important event in our history,” said Mike Sims, Chairman and Co-founder of EXF. “Over the past few years we have proven that our process to help find multiple new ways to monetize intellectual property assets can dramatically unleash revenue and employment opportunities.  This IRS designation gives us the ability to seek grants to help grow this unique process globally.”

“We want to thank our legal counsel, Mr. Douglas Mancino, JD with the Los Angeles law firm of Seyfarth Shaw LLP, for the diligent efforts in stewarding our application through the federal government. Additionally we want to salute our board members and early donors that have helped us over the past few years.”

In early 2014, EXF created and spun-out the Champion Technology Company Inc. (CTCI), a for-profit that licensed patented software from the Federal Government's Dept. of Energy Battelle Memorial Institute (  The EXF IP Discovery process utilizing many business executives and several dozen MBA students/alumni partnered with the Battelle inventors/researchers at Pacific Northwest National Laboratory ( to develop new commercial applications for the software.   The EXF team identified more than 70 new market opportunities for their knowledge driven data analytical software that mimics the human neocortex.  CTCI brought in over $500,000 in seed funds last August lead by the co-founders of Skype and the founder of ServiceNow (NYSE:NOW) and soon will be announcing its initial CyberSecurity application beta site.

The Early X Foundation’s mission is to become the world’s most respected and influential leader in educating business executives, MBA students, laboratory researchers and NGO’s in our unique creative problem-solving process to leverage and monetize latent intellectual property assets. 

For more information, please contact us 855-4-EARLYX (855-432-7599)

Mike Sims, Chairman

Larry Cox, PhD, President



Early X Announces Corporate Innovation Program - IdeaWorkxTM

Silicon Valley Telecommunications Company Executives and Employees

are Staying Ahead of the Challenge to Innovate


Santa Monica, CA.  The Early X Foundation has recently launched its unique innovation and creativity training program with a large Silicon Valley telecommunications company - IdeaWorkx.  Initial training sessions have focused on 60+ executives, senior managers and work teams to give them the tools to generate innovative business solutions to drive substantial new market revenue opportunities.

"While innovation is widely believed to be the key to success in today's economic environment, few companies have trained their leaders and employees in the principles, skills, tools and processes needed to actually obtain innovative results," according to Larry Cox, PhD and Early X President and co-founder.

"As a result, individual employees lack the ability to creatively and systematically solve the complex problems they face every day.  In addition, work teams are unable to develop the next generation of innovative products through working creatively together.  As a result, organizations are unable to stay ahead of the competition and are threatened by new entrants." 

The Early X Foundation is an independent, nonprofit organization dedicated to educating researchers, business executives and MBA students to discover multiple new revenue opportunities from internal and external intellectual property. In 2013 Early X spun out of the Graziadio School of Business and Management at Pepperdine University. 

Working with researchers at Pacific Northwest National Laboratory, Early X used its innovation processes to discover multiple market opportunities for software created by the Battelle Memorial Institute/DOE laboratory.  Early X recently created a new software company that licensed the software to develop market opportunities in CyberSecurity and Financial Services initially.

For more information about IdeaWorks, please click on the IdeaWorks page. To learn more about how Early X can help your company create new revenues streams from internal and external intellectual property assets, please contact us at:

Early X Foundation, 604 Arizona Street, Santa Monica, CA 90401.

855-4-EARLYX, 855-432-7599,