* Drugs, * Shots, or * Surgery

Transcription

1 The World s First Cloud based Therapeutic that can relieve the Pain of Millions without * Drugs, * Shots, or * Surgery 1 $1,000,000 Series B Capital Raise June,

2 THIS OFFERING IS MADE ONLY TO UNITED STATES RESIDENTS THAT HAVE VERIFIED THEIR STATUS TO THE COMPANY AS ACCREDITED INVESTORS, THE SECURITIES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK AND INVESTORS SHOULD BE ABLE TO BEAR THE LOSS OF THEIR ENTIRE INVESTMENT. THE COMPANY HAS HAD LIMITED OPERATIONS AND IS SUBJECT TO SUBSTANTIAL RISKS INHERENT IN A NEW BUSINESS ENTERPRISE. NO INVESTMENT IN THE UNITS SHOULD BE MADE BY ANY PERSON WHO IS UNABLE TO BEAR THE RISK OF LOSS OF THE ENTIRE AMOUNT OF HIS OR HER INVESTMENT. SEE "RISK FACTORS". THE SECURITIES ARE BEING OFFERED IN RELIANCE ON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, AND IN THIS OFFERING WE ARE NOT REQUIRED TO COMPLY WITH SPECIFIC DISCLOSURE REQUIREMENTS APPLICABLE TO REGISTRATIONS UNDER THE SECURITIES ACT. THE UNITS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. ACCORDINGLY, THE UNITS ARE CONSIDERED TO BE "RESTRICTED SECURITIES" AS SUCH TERM IS INTERPRETED UNDER UNITED STATES FEDERAL SECURITIES LAWS AND ARE SUBJECT TO LEGAL RESTRICTIONS ON TRANSFER AND RESALE. INVESTORS SHOULD NOT ASSUME THAT THEY WILL BE ABLE TO RESELL THEIR SECURITIES THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. INVESTORS ARE CAUTIONED THAT ALL FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTY. ALTHOUGH THE COMPANY BELIEVES THAT THE ASSUMPTIONS UNDERLYING THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN ARE REASONABLE, ANY OF THE ASSUMPTIONS MAY BE INACCURATE, AND, THEREFORE, THERE CAN BE NO ASSURANCE THAT THE FORWARD-LOOKING STATEMENTS INCLUDED IN THIS PRESENTATION WILL PROVE TO BE ACCURATE. 2

3 Investment Highlights The Internet of Things comes to HealthCare in the Home Platform Technology in Personalized Medicine arena Razor / Razor-Blade (Subscription) Model Revenue Generating: No Regulatory/ Reimbursement Risk Both Clinical & Consumer devices Think Delivers Therapy In Your Home 3

4 Our Install Base is Growing Partnerships Patient Stories Revenue is heading to $1M+ Device Subcription $1,400,000 $1,050,000 $700,000 $350,000 $

5 Our Market Opportunities (in Millions of People in US) Wound Care 6.5M Atrial Fibrillation 2M Parkinson's Disease 1.2M Arthritis 52M Diabetes 23.6M Sleep 120M Aging In Place 40M Sports Medicine 5M Complementary & Alternative-CAM Pain 95M 85M

6 6

7 The Big Problem: HealthCare Rankings (2014) EXHIBIT ES-1. OVERALL RANKING Dead Last COUNTRY RANKINGS Top 2* Middle Bottom 2* AUS CAN FRA GER NETH NZ NOR SWE SWIZ UK US OVERALL RANKING (2013) Quality Care Effective Care Safe Care Coordinated Care Patient-Centered Care Access Cost-Related Problem Timeliness of Care Efficiency Equity Healthy Lives Health Expenditures/Capita, 2011** $3,800 $4,522 $4,118 $4,495 $5,099 $3,182 $5,669 $3,925 $5,643 $3,405 $8,508 Notes: * Includes ties. ** Expenditures shown in $US PPP (purchasing power parity); Australian $ data are from Source: Calculated by The Commonwealth Fund based on 2011 International Health Policy Survey of Sicker Adults; 2012 International Health Policy Survey of Primary Care Physicians; 2013 International Health Policy Survey; Commonwealth Fund National Scorecard 2011; World Health Organization; and Organization for Economic Cooperation and Development, OECD Health Data, 2013 (Paris: OECD, Nov. 2013). 7 We Pay Twice as much

8 The Problem: we address Millions of People in Chronic Pain, Insomnia, Aging Poorly The Current Solution Drugs, Shots, and Surgeries Bankrupting our Country at over $2Trillion/yr spend Our Solution An Energy based personalized therapeutic that relieves Pain and helps Sleep issues Delivered via the internet to your own home for less than $200/mth 8

9 How the Dr s choose the Correct Protocol A. Our Decision Tree, hundreds of protocols to choose from B. Match Condition with Protocol 9

10 After the Doctor finds a Treatment that works for the Patient They Buy a Halo at $200/mth (or less) Personalized treatments delivered via the Internet to your own home 10

11 New for 2015 Halo Professional Lower Price point for Dr s (we can now sell either a Lexus vs Toyota) $25,000 Price Finance: $550/mth Tx Sessions: Cost $12/hr x Sessions: Price $60/hr Breakeven: 3tx/week $9,900 Price Finance: $200/mth Tx Sessions: Cost $15/hr Tx Sessions: Price $60/hr Breakeven: 5tx/mth 11 $3,950 Price Finance: $120/mth Tx Subscription: $80/mth

12 Net Sales ($1000 s) Magneceutical Health The Next 5 Years *United States *Ex-United States Total Net Sales Gross Profit: Clinical Units Gross Profit: HALO (home) Total Gross Profit EBITDA # Devices *Mag & H Pro (Clinical) cumulative active *HALO (Home Unit) cumulative active

13 Key Financial Assumptions Magnesphere/ HaloPro- Clinical Units * Magnesphere sells for $25k with a Gross Margin $10k after manuf, install/train/sales commissions and HaloPro sells for $9,900 with a Gross Margin of $5,400 Docs pay MH either $12-15/hr for Tx sessions. * Sales ramp split between US and ExUS - * Clinical Units US/ExUs /6, /12, /39, /69, /114 * Halos US/ExUS /1, /21, /74, /175, /351 * ExUS distributors added , , * HealthCare providers will ramp from 5% utilization to 26% (@ 2 treatments/ day) over 12mths HALO (home Unit) * Unit Price is $3,950 and costs $2,700 to manufacture and will be re engineered Price of $2,000 and cost of $1,000 cost by 2021 Patients will Finance at $120/mth (36mths) third party and monthly treatment cost is $80 1/2 the HealthCare providers sell the HALO to their patients at 2 Halos / year (plus patient referral sales) * Dr. makes $500 upon sale of a HALO, and 20% from patients monthly fee * Only 20% of patients that buy HALO will refer a patient, who buys a unit from the Dr. ( generating a free month credit for original patient against their monthly fee). * A patient that refers, will refer only 3 new patients over their lifetime. * Patients who purchase a Halo Unit will have an attrition rate at 20% annually Outside the United States * Two new Distributors added per year staring 2017 and every year thereafter * MH sells Clinical Devices (Halo Pro) to Sublicensee for $5,700 and Hourly rate at $12/hr * MH splits HALO device Treatment revenue with Distributor (ie 20%) and Doctor (20%) 13

14 Sales & Marketing (the key is never make a cold call) We Send 100,000 s per month 14

15 Competition magnetic therapeutics SwissBionic s Germany /private with imrs2000 general Health and Wellness. Neuronetics US / NeuroStar (rtms): FDA Depression, Venture backed Nikken Japan / Static Magnets / general health & wellness /private 15

16 What are the Differences between the Magnesphere and other magnetic devices 1.Design ours is the only one that provides a whole body immersion into a uniform magnetic field 2. Physiologic EMF... ours is the only one that provides a physiologic EMF (most all the others are at field strengths much stronger than those found naturally in the body) 3. Cloud based... Learning system... as our system analyses results, our Doctors get better... automatically 4. Research... most of our competition cites magnetic health related research from "others"... we've spent the last 25 years doing our own. 5. Platform technology in Personalized Medicine. patients buy their home devices AFTER their Dr. has determined which fields are effective for them, then treat themselves economically for the rest of their lives 6. Magneceutical University.Our Marketing & Practice building program that provides a Microsite / Drip campaign / Social Media campaign/ and paid patient referrals all geared to drive NEW Patients. 7. Business Model (Recurring Revenue / Razor-Razor blade model). For both the Doctors and our Shareholders. a Subscription based business model. 16

17 Capital Raise Terms Investment in Pico-Tesla versus Magneceutical Health (that way you participate in any future approvals we may get with actual medical claims) B Units at $10,000/unit plus 25% warrant coverage for 2yrs 1,200 A Shares issued (AMAG) / B (series 1) Units issued B Units have distribution preference over A Units Capital Raise is for $1,000,000 - or 100 B Units. Minimum investment is $5,000 or 1/2 Unit 17

18 Use of Proceeds Clinical Model & HALO Inventory $100,000 Sales Personnel & Affiliate Commissions $400,000 Upgrade Magneceutical University 50,000 SG&A / Personnel: Finance, Supply Chain, Customer Service, Information Tech. $265,000 Marketing Spend $100,000 Offering Costs (7%)+Legal costs $85,000 Total $$ 1,000,000 18

19 Magneceutical Health Team (Virtual, Talented & Committed) Allen Braswell President Dr Jacobson Chief Science Offc Adam Ehven IT/WebApp Chad Dike IT/Marketing Steve Frischman Director Sales Frank Caruso Engineer/Quality Panzer-2 IT Consultants Elance-2 IT Consultants Dr. Rob Epstein Dean of Mag Univ. Sparton Electronics Lynette Makowski Quality/Compliance Justin Rosen Accounting Kilpatrick IP Attorneys Supply Chain Bill Reid-Engr Hein & Co-Audit Bollenback & Forret 19 Mike Dierks-Engr

20 Strong Foundation in Patents and Trademarks 11 US patents Issued 29 Foreign patents Issued 11 applications pending Magneceutical trademark Registered Extensive opportunities in the magnetic therapeutics Intellectual Property 20

21 Why Now is the Right Time (a convergence of 3 Macro Issues) 1. Healthcare Reform... With the advent of the Affordable Care Act (ACA) Cost control will be driving ALL future decisions for our Government, Medicare and Health Insurance, therefore Healthcare providers will continue to work harder to make less, and continue to build upon Cash Pay products and services. Affordable Care Act 2. Demographics... Baby boomers 80MM joining the over 65 ranks over next 15 years, they represent the largest, best educated, wealthiest portion of our society 3. The Internet of Things: is now ubiquitous across many areas of our economy. The internet has come to Medicine, but primarily as a diagnostic, patient records, or monitoring service not a therapeutic. 21

22 Why Invest? Revenue Generating In & Out U.S. Razor / Razor-Blade Model... Cloud based therapeutic Cash Pay Model, no Regulatory or Reimbursement Risk Platform Technology in Personalized Medicine arena Strong Intellectual Property portfolio We can Change the Lives of Millions of People 22

23 Contact Information Allen Braswell Jr. President: Magneceutical Health Office: ext. 4 abraswell@magneceutical.com 23