Financial Services to U.S. Healthcare Providers and Their Patients. Corporate Presentation

Transcription

1 Financial Services to U.S. Healthcare Providers and Their Patients Corporate Presentation

2 Forward Looking Statements and Statutory Rights of Action FORWARD-LOOKING STATEMENTS Certain statements in this presentation (the "Presentation") may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Inspira Financial Inc. ( Inspira"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this Presentation, such statements use such words as "may", "will", estimate(d), "expect", "believe", "plan", "intend", "should", "anticipate" and other similar terminology. These statements reflect current assumptions and expectations regarding future events and operating performance and speak only as of the date of this Presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements, including, but not limited to, the risk factors typical of businesses operating in Inspira's industry. Although the forward-looking statements contained in this Presentation are based upon what management believes are reasonable assumptions, Inspira cannot assure investors that actual results will be consistent with these forward-looking statements including management s expectation for future capital raises and the potential future valuation of Inspira included herein. Investors are cautioned that any such statements are not guarantees of future valuation and actual results may differ materially from those projected in the Presentation.. These forward-looking statements are made as of the date of this Presentation, and Inspira assumes no obligation to update or revise them to reflect new events or circumstances. STATUTORY RIGHTS OF ACTION If this Presentation is delivered to you for the purpose of assisting you in making a decision about investing in securities of Inspira and you decide to purchase such securities, this document may be considered an offering memorandum pursuant to securities laws applicable in the Province of Ontario. This means that if thispresentation contains a misrepresentation and it was a misrepresentation at the time of purchase of securities by you, you will be deemed to have relied upon the misrepresentation and will, as provided below, have a right of action against Inspira for damages or, while still the owner of such securities, for rescission, provided: (a) an action is commenced to enforce such right: (i) in the case of an action for rescission, not more than 180 days after the date of purchase; or (ii) in the case of an action for damages, not more than the earlier of (i) 180 days following the date you first had knowledge of the misrepresentation and (ii) three years after the date of purchase; (b) Inspira will not be liable if it proves that you purchased the securities with knowledge of the misrepresentation; (c)in the case of an action for damages, Inspira will not be liable for all or any portion of the damages that it proves does not represent the depreciation in value of the securities as a result of the misrepresentation relied upon; and (d) in no case will the amount recoverable in any action exceed the price at which you purchased the securities.if you elect to exercise the right of rescission, then you will have no right of action for damages against Inspira. The foregoing summary is subject to the express provisions of the Securities Act (Ontario) and the regulations, rules and policy statements thereunder and reference is made thereto for the complete text of such provisions.the rights of action described herein are in addition to and without derogation from any other right or remedy that you may have at law. 1

3 Vision Offer a Suite of Financing Solutions to Small U.S. Healthcare Providers and Their Patients Phase 1: A/R Credit Revolving lines of credit secured against government and insurance receivables Phase 2: Extended A/R Credit Revolving lines of credit extended to include security against patient receivables Phase 3: Direct Patient Lending Use A/R credit relationships to target patient leading to cover insurance deductibles Yield Opportunity 15-20% 20-40% 50%+ 2

4 Phase 1: Revolving Credit Lines Provide revolving lines of credit to smaller U.S Medical Providers secured by their receivables from: Inspira is able to yield 15-20% on AAA rated securities that typically yield less than 1% 23

5 Proven, Early Stage Opportunity Actual Inspira Client Profile Receivables: $900k Medicare: 50% Insurance: 45% Inspira Line of Credit Credit Extended: $750k Inspira Equity: $150k Warehouse Lender: $600k Projected Returns (over 36 months) Projected Inflows Interest (12%): $270k Fees (5%): $115k Total Inflows: $385k Projected Outflows Debt Lender (6%): Overhead (2%): ($135k) ($15k) EBITDA: $235k On average, each client is projected to deliver: IRR: 60+% ROE: 150+% 24

6 U.S. Healthcare: Healthy and Evolving Large, Growing Market Positive demographic trends - 10,000 people turn 65 per day in the USA Over 1M healthcare businesses between $1M - $50M in annual revenues 1 Healthcare spending to exceed $4.5 Trillion by Increasing Financial Pressures Reimbursements increasingly shifting to usage based procedures, requiring more up front investment in equipment Insurance companies taking longer to pay Greater Emphasis on Operations Medical providers forced to increase patient load, reduce visit time, delegate more to senior nurses in order to maintain / grow income levels Much greater need to invest in technology to increase efficiency New sources of working capital imperative to fuel growth 1 Study done by SK&Am A Cegedim Company 2 According to economists in the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS) 25

7 Healthcare Lending: Few Viable Options Traditional Bank (Loan / Line of Credit) Term Lenders (Loan) Equipment Lenders (Loan) Accounts Receivable Lenders (Line of Credit) Working Capital Lenders (Loan) Factoring (Asset Purchase) Maximum Size Application Process Personal Guarantees Collateral Based on personal wealth Based on business value Based on account receivables $100,000 Based on account receivables 2+ months 6+ months 1 week 1 week 1 week Comprehensive Comprehensive Fraud Only Comprehensive All Assets (Biz & Personal) All Business Assets Healthcare Providers Not Available to Small Account Receivables Only All Personal Assets Fraud & Recourse None (they own the A/R) Cost 5-10% 10-20% 10-20% 20% % By tapping smaller Canadian capital markets, Inspira creates a competitive advantage against larger US lenders and fills the void in this multi-billion dollar market 6

8 Management Team Robert Munro Michael Dalsin Co-Founder, Points.com $480M market cap; trades on Nasdaq (PCOM) Managed $500M wireless data services portfolio 10 successful CPC QTs $215M raised 478M shares traded to date in % share appreciation in 18 mos $130M market cap up from $6M Has originated billions in M&A transactions over 20+ years Jack Eskenazi Gary Mintz 25 years as Founder and Principle 1,000s of M&A transactions One of the most respected and known healthcare financiers in the U.S. Interim Director of Legal for LinkedIN EMEA Created first software-only offering generating $90M in revenue Founding Partner of DalsinLaw 7

9 Run Rate Snapshot at 25 Lines of Credit Revenue Assumptions / Notes Interest Income: $2,000,000 Setup & Variable Fees Income: 2,600,000 Total Revenue $4,600,000 Cost of Sales Origination costs: $ 250,000 Operational Costs $1M average line of credit $750k average draw $19M total credit drawn Loan Origination Partners Inspira Marketing Costs Debt Lender $1,100,000 5% - 7% Underwriting & Facility Administration: 400,000 Add l Overhead: 350,000 Management: 350,000 Total Operating Profit (EBITDA) $2,150,000 Variable Variable & Fixed Fixed 8