Business: The Functional Pharmacy 5114 Kavanaugh Boulevard Little Rock, AR 72207

Purchase Price: Pharmacy ($798,000) Property ($650,000)

Amount: $1,204,800

Terms: 16-year term loan Set interest rate 6.3% Extended line of credit $100,000

SUMMARY OF LOAN REQUEST

VISION STATEMENT

The Functional Pharmacy aims to be the pioneer pharmacy for adapting functional medicine practices, integrative nutrition, and telehealth services for our patients. We focus on the promotion of individual wellness through a variety of patient-centered techniques that optimize a multitude of factors to improve health, nurture relationships, and expand the role community pharmacists as healthcare professionals.

MISSION STATEMENT

The Functional Pharmacy will provide high quality, cutting-edge pharmacy, nutrition, and functional medicine services to our patients. Our aim is to improve population health, provide the best patient experience possible, and reduce the cost of healthcare, per capita. We also strive to empower our patients to become their own “agents of change” by providing them with the tools necessary to adequately manage their health, time, and resources. Our commitment to excellence and providing high-quality patient-centered care is the core of our business.

MANAGEMENT STRUCTURE

Pharmacist in Charge Byron Johnson, PharmD

Functional Pharmacist Patrick Gurley, PharmD, MSCN

Staff Pharmacist Brittany Butterfield, PharmD

Silent Partner Marissa Johnston, PharmD, MPH

PRODUCTS AND SERVICES

• Dispensing Medication

• Prescription Transfers

• Free Contactless Delivery

• Non-sterile Compounding

Traditional

Pharmacy Services

• Med Synchronization

• MTM’s

• Immunization Services

• Point of Care Testing

Enhanced Pharmacy

Services

• Nutrition Status & Food Sensitivity Testing

• Pharmacogenomic Testing

• Wellness & Micronutrient Status Bloodwork

• Complete Hormone Profile Monitoring

Functional Medicine Services

FUNCTIONAL MEDICINE TESTS

• Analyzes 23&Me Data • Supplement

Recommendations • Consult Fee: $50 • Free to use for Pharmacists

• 23 SNP’s Analyzed • Monitors Genetic

Influence • Consult Fee: $120 • Medicare Covers 100%

• Wellness Panels + Food Sensitivity

• Vitamin and Mineral Status • Consult Fee: $120 • Same Day Local Lab Draws

• Complete Hormone Profile Monitoring

• Consult Fee: $120 • At Home Testing

FINANCIALS

Assets Current % NCPA % Year 1 % Year 2 % Year 3 %

Cash $103,767 16.8% 16.0% $77,431 16.0% $195,309 16.0% $293,516 16.0%

Accounts Receivable $125,736 20.3% 20.9% $101,145 20.9% $255,123 20.9% $383,405 20.9%

Inventory $249,918 40.4% 31.8% $153,895 31.8% $388,177 31.8% $583,363 31.8%

Other Current Assets $26,814 4.3% 11.9% $57,590 11.9% $145,261 11.9% $218,302 11.9%

Total Current Assets $506,235 81.9% 80.6% $390,061 80.6% $983,870 80.6% $1,478,586 80.6%

Net Fixed Assets $90,218 14.6% 13.3% $64,365 13.3% $162,351 13.3% $243,985 13.3%

Other Assets $21,596 3.5% 6.1% $29,521 6.1% $74,462 6.1% $111,903 6.1%

Less Accumulated Depreciation $0 0.0% 0.0% $0 0.0% $0 0.0% $0 0.0%

Total Long-Term Assets $111,814 18.1% 19.4% $93,886 19.4% $236,812 19.4% $355,888 19.4%

Total Assets $618,048 100.0% 100.0% $483,946 100.0% $1,220,683 100.0% $1,834,474 100.0%

Liabilities Current % NCPA % Year 1 % Year 2 % Year 3 %

Accounts Payable $106,509 17.2% 15.0% $72,592 15.0% $183,102 15.0% $275,171 15.0%

Notes Payable <1 year $0 0.0% 6.0% $29,037 6.0% $73,241 6.0% $110,068 6.0%

Other Current Liabilities $32,040 5.2% 7.0% $33,876 7.0% $85,448 7.0% $128,413 7.0%

Total Current Liabilities $138,548 22.4% 28.0% $135,505 28.0% $341,791 28.0% $513,653 28.0%

Bank Loan $0 0.0% 15.0% $72,592 15.0% $183,102 15.0% $275,171 15.0%

Notes Payable to Owner $40,557 6.6% $0 0.0% $0 0.0% $0 0.0%

Other Long-Term Liabilities $84,856 13.7% 17.0% $82,271 17.0% $207,516 17.0% $311,861 17.0%

Total Long-Term Liabilities $125,413 20.3% 26.0% $125,826 26.0% $317,378 26.0% $476,963 26.0%

Owner’s Equity Current % NCPA % Year 1 % Year 2 % Year 3 %

Retained Earnings $237,727 38.5% $0 0.0% $0 0.0% $0 0.0%

Net Income $116,361 18.8% $0 0.0% $0 0.0% $0 0.0%

Payment to Owners $0 0.0% $0 0.0% $0 0.0% $0 0.0%

Total Owner Equity $354,087 57.3% 46.0% $222,615 46.0% $561,514 46.0% $843,858 46.0%

Total Liability and Owner's Equity $618,048 100.0% 100.0% $483,946 100.0% $1,220,683 100.0% $1,834,474 100.0%

Proforma Balance Sheet

Current Asset

Long Term Assets

Current Liabilities

Long Term Liabilities

Revenue Current Year 1 Year 2 Year 3 Percent NCPA %

Prescription Sales $4,608,601 $4,754,289 $4,912,930 $5,063,341 92.8% 93.1%

OTC, Gifts, MISC $243,172 $250,692 $253,225 $258,392 4.7%

Supplements $0 $25,452 $49,314 $81,925 1.5%

POCT $0 $4,938 $11,920 $20,221 0.4%

Consulting Income $0 $10,471 $20,288 $33,705 0.6%

Total Front-End Sales $243,172 $291,555 $334,747 $394,244 7.2% 6.9%

Total $4,851,772 $5,045,843 $5,247,677 $5,457,584

Cost of Goods Sold Current Year 1 Year 2 Year 3 Percent NCPA %

Prescription Sales $3,944,311 $3,979,659 $4,024,282 $4,053,196 74.3% 73.6%

OTC, Gifts, MISC $80,234 $82,728 $83,564 $85,270 1.6%

Supplements $0 $11,454 $22,191 $36,866 0.7%

POCT $0 $2,074 $5,007 $8,493 0.2%

Consulting Income $0 $0 $0 $0 0.0%

Total Front-End Cost $80,234 $96,256 $110,762 $130,629 2.4% 4.6%

Total COGS $4,024,545 $4,075,915 $4,135,044 $4,183,825 76.7% 78.2%

Gross Margin $827,227 $969,928 $1,112,633 $1,273,759 23.3% 21.8%

Expenses Current Year 1 Year 2 Year 3 Percent NCPA %

Advertising $16,000 $39,569 $24,839 $25,074 0.5% 0.4%

Payroll Expenses $415,918 $371,500 $402,243 $463,728 8.5% 13.2%

Rent $50,400 $0 $0 $0 0.0% 1.6%

Computers $11,336 $13,336 $13,336 $13,336 0.2% 0.7%

Util ities $17,384 $17,384 $17,384 $17,384 0.3% 0.4%

Total Expenses $709,866 $830,793 $797,621 $860,540 15.8% 19.7%

Total Profit/Loss $116,361 $139,135 $315,013 $413,219 7.6% 2.1%

ProForma Income Statement Year 1-3

Net Worth = $1.8 Million

SWOT ANALYSIS

STRENGTHS

• Personalized care • Strengthen

pharmacist/physician relationships

• Improve health outcomes • Unique services with

state-of-the-art software programs

• Leader in functional medicine

WEAKNESSES

• Building rapport with a new name and ownership

• Cash payment model • Early adopter of

functional medicine practices

OPPORTUNITIES

• Improved patient adherence, satisfaction, and engagement

• Interventions focused on chronic disease prevention

• Implementation of COVID-19 point of care testing

•

THREATS

• Mail order pharmacy • 3rd party laboratory

shutdowns related to current pandemic

• COVID-19

TrueHealth Pharmacy is a member-managed LLC blending the classic pharmacy experience with afresh take on what it means to be an independent community pharmacy. Patient outcomes andaccess to care are the primary goals of TrueHealth Pharmacy: driving development of newservices, excellent patient care, diverse health management opportunities, and patient conveniencewith new technologies.

Strengths• Accessibility• Pharmacy layout• Drive up kiosks • Diverse services • Educated staff• Location

Weaknesses• Competitors nearby• Physical size• Lack of reputation• Lack of customers• Lack of existing inventory

Opportunities• Partnerships• Easy access pharmacy• Large population• Nearby assisted living facilities • Surrounding clinics

Threats• Competitors offer delivery• Other drive through aaapharmacies• Competitors have existingaaaaresources • Competitors already have patients

Drive-up kiosksFree delivery services available CLIA waiver eligible for point-of-care testing Glass security panels doubling as sneezeguards to protect patients and staff 6 feet of distance between curbside pickupbays and social distance markers indoors

Steven Landa

Aaron McDonough

Patrick McFadden

Jessica Satterfield

Matthew Yeates

Assumptions: 20% participation by Sioux City Community School District employer-based contract$55.13 sale per prescription (average per NCPA Digest) 85% generic prescriptions, 15% brand 1.5% total sales as DIR fees per year OTC and services revenue trends based on Google Trends data from 2015-2019

Prescriber-targeted Employer-targeted Patient-targetedEmphasis oncollaborative patientcare Chronic diseasemanagement

Preventive care Cost saving benefitsHealth coaching Delivery

Free coffeeCommunityengagementHealth and wellnessseminars

Steven Landa

Aaron McDonough

Patrick McFadden

Jessica Satterfield

Matthew Yeates

Location and Patient Population:

Prescription Dispensing, Medication Synchronization, andMedication Therapy Management ServicesCPESN Involvement Free Delivery within a 10 mile radiusImmunizations with Therapy Dog PresentFunctional Medicine ConsultationsPoint of Care Testing for Infectious DiseasesDiscreet and Compliance PackagingMental Health Screenings by Trained Staff with a ReferralProtocol to Local Psychologists and PsychiatristsPrEP counseling and HIV treatmentIn-house Multi-Purpose Room with Mind, Body, andSupport ClassesMental Health and American Red Cross First Aid TrainingsMindWell Pharmacy Membership Program

MindWell"A modern pharmacy fostering healthy minds and bodies for all"

1318 Pecan Dr. Charlotte, NC | (704) 867-1234

Vision: To become a trusted community leader at the forefront of providingcomprehensive health and pharmacy services, with

an emphasis on mental health and well-being.

Products and Services:

Pharmacy

MindWell Pharmacy is located in the trendy, rapidly growing neighborhoodof Plaza Midwood, east of Uptown Charlotte.There are 3 Psychiatry Clinics, 9 Counseling Centers, 2 Hospitals, and 2Universities located within 3 miles of the pharmacy.Within the 3 mile radius, 86% of patients are insured.Average household income is $83,039.Average age of individuals living in Plaza Midwood is 34.MindWell Pharmacy seeks to provide care to all people.

Marketing Plan:

Financial Overview:

Pharmacy Floor Plan:

Summary of Loan RequestAsking for $300,000 to be re-paid over 10 yearsat 5% interestOwners Contribution = $100,000Initial Inventory = $100,000Up-fit, Fixtures, and Equipment = $75,000

Numerous Diversified Revenue StreamsOTC and Supplement SalesFunctional Medicine ConsultsPoint of Care TestingMindWell Membership ProgramCPR and Mental Health Training Fees

Three Year Projections For:Profit, Expenses, and RevenueCash on Hand, Accounts Receivable, andInventory ValuationNetworth and Liabilites

Business Plan Team: Anna Brown, Sydney McEachern, and Daniel RuizBusiness Plan Advisor: Dr. Patrick Brown

UNC Eshelman School of Pharmacy

Utilize Digital PharmacistOne Post Per Day onFacebook and InstagramFocus on Education,Community, and Products

1. Internet Marketing

The Pharmacist will Visit Local Providerswith a "Provider Pack" of Branded Items,Prescription Packaging, and ServicesMutually Beneficial Referral ProgramsSeek Collaborative Practice Agreements

2. Strategic Provider Partnerships

Join Like-Minded Provider NetworksSupport and Sponsor Organizations likeNAMI, PFLAG, etc.Be Present at 5Ks, Holiday and PrideParades, Wellness Fairs, etc.

3. Community Engagement