CONFIDENTIAL INFORMATION 1 · CONFIDENTIAL INFORMATION 8 Aesthetic Device Market Growing Rapidly,...

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1 CONFIDENTIAL INFORMATION CONFIDENTIAL INFORMATION

Transcript of CONFIDENTIAL INFORMATION 1 · CONFIDENTIAL INFORMATION 8 Aesthetic Device Market Growing Rapidly,...

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Aerolase Develops, Manufactures and Markets

the Next Gen Lasers for Aesthetics and Dermatology

Fast Growth Global Market, Fueled by: - Aging population mix

- Globally rising middle class

- Universal need to be young/attractive -- ”Look good, feel good”

Medical

Dermatology

Aesthetics/

Anti-Aging

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Unique Portability

Typical Competitor

Top Efficacy

1 Aerolase Laser Replaces

4 Rival Lasers

Unique Versatility:

Best Safety

Aerolase Has Reinvented Dermatology Lasers

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Portability Top Efficacy/Safety

All In One Device -- LightPod® Laser from Aerolase

Unique Versatility

Aerolase Is The iPhone of Dermatology Lasers

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Broad Takeaways on Aerolase Opportunity

• Next Generation Dermatology Laser Technology = The iPhone of Dermatology Lasers

• Rapidly gaining major share from all including largest rivals; 76% laser rev growth rate

2019

• 80%+ gross margin; EBITDA profitable.

• Replicating U.S. success worldwide

• Rich IP developed in-house, prized by world-class collaboration partners such as global

skincare giant Beiersdorf (Deutsche Börse: BEI) and cardio device innovator

Cardiovascular Systems, Inc (NASDAQ:CSII); also advanced topical companies such as

SENTÉ and PCA Skin

• Compelling comparable company datapoints

• Clear avenues to exit

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Aesthetic Device Market Growing Rapidly, Sustainably and Globally

• Botox, fillers, topicals lead base market but cannot deliver full

results without lasers

• Aesthetic lasers in high demand everywhere aided by managed

care devastating U.S. doctors’ incomes (aesthetic Tx are patient

self-pay)

• All such lasers except Aerolase are bulky and cumbersome, costly

to acquire and operate, and for patients produce pain/discomfort

and downtime

0

2

4

6

2020 2025

Global Aesthetic Device Market (in $B)

researchandmarkets.com

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Aerolase Serves Immense Medical Dermatology Markets

And Does So Better than Drug/Medication Solutions

0

5

10

15

20

25

30

2020 2025

Global Medical Dermatology Market (in $B)

Acne

Onychomycosis

Psoriasis

Sources: https://www.statista.com/statistics/717599/global-acne-treatment-market-size/ Onychomycosis Market Research Report - Global Forecast till 2025. ID:MRFR/Pharma/0832-CR | September, 2019 https://www.marketresearchfuture.com/reports/onychomycosis-market-1340 https://www.marketresearchfuture.com/reports/psoriasis-treatment-market-2769

• Acne, Psoriasis, Nail Fungus are widespread medical conditions that

have severe psychological impact on sufferers, frequent cause of

depression and suicide

• Drugs have serious risks/side effects: birth defects in pregnant women,

liver disorders, elevate risk of life-threatening infections such as HIV and

tuberculosis; many others

• Aerolase laser has no side effects and delivers efficacy similar to drugs

• Aerolase is gaining share of these huge markets

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Aerolase Laser Is A Compelling Buy for Each Segment

14K Dermatologists

7K Plastic Surgeons

275K Primary Care Doctors (mostly “GP’s”)

5.5K Medspas

Western Europe

Similar to U.S. (though managed care pressures on GP’s less

severe)

Market Profiles:

U.S.

Emerging Markets

Booming, bigger than U.S., fewer Medspas

Aerolase Winning in All Segments of Laser Dermatology Worldwide

Aerolase Growing Strongly in All Segments

39%

30%

25%

6%

2019 Revenues by Specialty

Spa Derm GP Plastic

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Plastic Derm Spa GP

2017

2018

2019

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Aerolase Gaining Market Share, Growing 6x vs. Competition

Percentage Revenue Change

Aerolase vs. Direct Competitors

Full Year 2019 Q4 2019 Guidance 2020

US TOTAL US TOTAL US TOTAL

Alma 7 9 NA NA NA NA

Cutera 4 12 11 14 1 9

Cynosure -9 -7 NA NA 0 3

InMode 52 56 61 63 26 24

Solta 5 44 4 42 3 38

Average 12 23 25 40 8 19

Aerolase 70 76 60 67 50 52

Sources : Publ ic company disclosed data; Alma and Cynosure closely approximated

due to reporting gaps

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Example: InMode IPO Aug 2019 (NASDAQ: INMD)

• Up 3x IPO price, $1.5B enterprise value, trading at 8x est 2020 revs and 17x EBITDA (at 2/20/20)

• Aerolase treats same aesthetic treatments but in addition delivers strong efficacy in key medical dermatology disease states

InMode (NASDAQ:INMD) vs. Aerolase Treatment Comparison

Treatments Provided/Promoted InMode Aerolase Aerolase Efficacy

Acne Scars Yes Yes Parity

Facial Rejuvenation Yes Yes Better

Hair Removal Yes Yes Better

Skin Tightening, face, neck Yes Yes Parity

Vascular/Pigmented Lesions/Rosacea Yes Yes Better

Skin Tightening, body/fat reduction Yes Coming 2020-2021 Targeted better

Vaginal Rejuvenation Yes Coming 2020-2021 Targeted better

Darker skintones, heat-based treatments Yes Yes Parity or better

Darker skintones, light-based treatments No Yes Best in device industry

Active Acne No Yes Best in device industry

Melasma No Yes Best in device industry

Nail Fungus No Yes Parity with best

Psoriasis No Yes Parity with best

Woundhealing/decubitis ulcers No Yes Parity with best

Ablative Resurfacing No Yes Parity with best

Note: Aerolase also better than InMode on key patient attributes like discomfort and downtime

Strong Investor Interest in Sector

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Analysis of Strategic Buyer Acquisitions in Aesthetic Sector

Total

Multiple Consideration

Deal Acquirer/ on: net of cash, debt

Date Target Enterprise Value/EBITDA Sales $M Remarks

2/2020 Eli Lilly/Dermira NM--negative EBITDA 30.1 1100

5/2019 EQT Consortium/Galderma -- 3.6 10,100 Galderma underperforming due to years of ownership uncertainty

1/2019 ConMed/Buffalo Surgical Filter 25.5 7.5 365 Includes synergies claimed but unclear; multiples higher ex-synergies

2/2017 Hologic/Cynosure 23.0 3.3 1457 Multiple bids, only 15% of revenues from innovative spaces

2/2017 Allergan/Zeltiq 59.3 6.8 2,412 Zeltiq growth rate probably peaked, competiton flooding into its space

5/2016 Pfizer/Anacor NM--negative EBITDA 24.9 5,200 Based on projected 2017 revenues if lead product approved

11/2015 Pfizer/Allergan 9.2 9.0 160,000 Withdrawn April 2016 due to government action

6/2015 Allergan/Kythera 30.8 9.0 2,100 Paid on 2017 projected metrics

11/2014 Actavis/Allergan then renamed Allergan 20.5 9.2 66,000

6/2014 Merz/Ulthera 27.0 6.7 600 Ulthera first ultrasound device for skin tightening certain facial areas

2/2014 Nestle/Galderma 22.0 3.9 4,247 for the 50% stake owned by L'Oreal

4/2013 Valeant/Obagi 19.7 3.5 420 Obagi considered badly managed

12/2012 Valeant/Medicis 16.2 13.2 2,570

6/2008 Medicis/Liposonix NM--negative EBITDA 150.0 300 $150M upfront +$150M milestones mostly for FDA approval which did occur

Median 22.5 8.3

Mean 25.3 20.1

Average of above 23.9 14.2

Intense M&A Activity in Aesthetics, Few Attractive Companies Left

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Aerolase is an Emerging Leader with Booming Market Recognition

• We are a vertically integrated company with all functions successfully built in house –

Aerolase invents, develops, manufactures, markets and sells

• 2019 vs. 2018 laser revenue growth = 76%

• Strong global IP protection 20 patents in US, 5 in 23 countries

• 1300+ lasers sold since inception in 45 countries (75% in US), dominant market share

in some regions

• 31 world-renowned Key Opinion Leader users; consumer brand equity from powerful

celebrity endorsements (e.g. Kathie Lee, Elle Macpherson) and prime media (e.g.

Today Show)

• Aerolase is attracting attention from dermatology pharma companies. Galderma

selected Aerolase for its global Innovation Centers (SHIELD).

• Best Laser 2020, 2019, and #1 Hair Removal Laser 2018 and 2017, as ranked from

30K user base of Dermascope/Aesthetic International Association

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Coming Soon:

Aerolase’s benefits prized/taught by top med schools, dermatology academies worldwide

Hamburg, Germany

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• Launched 2015, now 20K followers on Instagram, far more than larger revenue rivals such as Cynosure,

Candela, Lumenis, Cutera

• Aerolase follower community engaged: average per post = 500 likes, 25 comments, 10 direct messages;

average 6K views per video

• High visibility Aerolase practitioners/Instagram stars include:

Jason Emer, Beverly Hills: 175K follower

Aivee Teo, Philippines: 139K

Michelle Henry, NYC: 61K

Holly Cutler, Michigan: 50K

Nabil Fakih, Lebanon: 17K

Social Media Marketing a Distinctive Competence

Celebrity Patients Praising Aerolase Treatments:

Elle Macpherson

Kathie Lee

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Superiority on the key laser attributes >> compelling unmatched practitioner ROI

Aerolase Has Sweeping Advantages over All Competition

Gaining Share and Growing Much Faster than the Market

1. Efficacy

2. Versatility

3. Safety

4. Performance on darker skin tones (Mid Eastern, Asian, Indian, Black)

5. Reliability/minimal servicing

6. No patient pain

7. No/minimal patient downtime

8. Low cost of goods >>> affordable price to obtain

9. Low operating cost >>> no hidden costs to user

10. Only portable high power dermatology laser in world

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Key Differentiator #1:

Minimizes mechanical parts, needed only for water cooling, so through are gone

including their cost and need for repair, resulting in higher margins for Aerolase.

The only portable high power multi-application dermatology laser, enabled by

strongly patented air-cooled design:

1 6

Typical

Competitor

Aerolase

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Portability Brings Many Big Advantages for User

• Saves treatment room space – key in big cities

• Allows sharing device between locations--more

practice revenue out of same asset

• Highly reliable vs. frequent downtime (because

eliminates trouble-prone subsystems)

• Ease of service worldwide (units easily shipped for

repair by overnight carrier)

• Consistent w growing trend of at-home aesthetic

services by mobile practitioners, which could well

take off due to Coronavirus

-- U.S., Europe, Middle East leading the trend

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Key Differentiator #2:

Single Aerolase Neo® laser has EFFICACY AS GOOD OR BETTER in delivering

range of treatments that requires 4 separate devices from a typical competitor

Unique Versatility via Optimal Parameters, Novel 650-Microsecond Technology

1>4!

• Aerolase laser cost to practitioner – $115-130K; vs. $400K+ for 4 competitor lasers

• This is a winning proposition for every market from U.S./Western Europe to least developed regions

Melasma

& Hyperpigmentation Hair Removal

& Veins Acne &

Skin Rejuvenation Psoriasis

Aerolase Neo

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Key Differentiator #3:

Aerolase unique efficacy on acne desired in most advanced aesthetic practices

- 650 million individuals have acne globally, $7.35B market by 2025

- Acne drugs have severe side effects

Before and After 5 Aerolase Treatments

Clinical Assistant Professor at

Vanderbilt University School of

Medicine, Adjunct Assistant

Professor at Meharry Medical

College School of Medicine,

Visiting Professor of Dermatology

or Plastic Surgery at various

institutions in China.

Play from Movie Link #1 in

Email Or click - https://youtu.be/5-tWBYJhsKs

ACNE

Testimonial and Footage Courtesy of

Michael Gold, MD, Dermatologist

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Key Differentiator #4:

Aerolase unique efficacy on psoriasis was recently affirmed by randomized,

investigator-blinded, parallel-group study with 20 subjects with mild to moderate psoriasis

vulgaris

PSORIASIS

Before and After 4 Aerolase Treatments

8 million patients in the U.S.

2.5% of world population afflicted

Global market $13.1B by 2025

Laser psoriasis treatment is

reimbursable in the U.S. at ~$160-

170 per small lesion and ~$260-270

for a large area

Psoriasis drugs have severe side

effects

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Key Differentiator #5:

Aerolase increasingly acknowledged as the best laser/device option for melasma

Before and After 2 Treatments Leading dermatologist in

New Jersey and KOL for

acne, melasma, and

psoriasis.

Play from Movie Link

#3 in Email

Or click https://youtu.be/xCd6qngXSVk

Testimonial and Footage Courtesy of:

Karen Harkaway, MD, Dermatologist

Photos courtesy of Avanti Aesthetics Clinic – Harley St. London UK

Before and After 1 Treatment

Melasma: widespread pigmentation disorder hated by sufferers, has no clear solution

today. $8.5B Global Market by 2024.

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Key Differentiator #6:

Unique efficacy on most aesthetic treatments with less patient discomfort and

downtime than any competitor

Before and After 1 Aerolase Treatment

Beverly Hills-based

“Dermatologist to the stars”

Trained with top

dermatology laser experts

at Mount Sinai and Bay

Area Laser Institute. A

leading expert in facial and

body rejuvenation with

lasers.

Play from Movie Link

#2 in Email

Or click - - https://youtu.be/qWhcUQQ9kOg

FACIAL REJUVENATION Testimonial and Footage Courtesy of

Jason Emer, MD, Dermatologist

Photos courtesy of James Newman, Premier Plastic Surgery – San Francisco

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Key Differentiator #7:

Aerolase Delights Patients + Docs with Unmatched Treatment Comfort

Play from Movie Link #3 in Email or click https://youtu.be/EXqXSLfalqU

Footage courtesy of NBC Universal Today Show with

Kathie Lee Gifford, November 1, 2018

Patients

• No treatment pain without numbing (anesthetic)

• Highly hygienic -- device tip does not touch the skin

• Cooling gels application to skin is eliminated. No

more mess and expense for practitioner and patient

Practitioners

• Comfort Favorable Word of Mouth

• Lack of pain optimizes office throughput

• Patient not jumping off table mid-procedure

• Minimal patient prep due to no numbing

• Procedure time predictable and faster

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Key Differentiator #8:

Aerolase is Uniquely Safe and Comfortable on Dark Skin Tones and Tanned Light Skin

Play from

Movie Link

#4 in Email

Or click - https://youtu.be/sdIuwGnT-XY

Testimonial and Footage Courtesy of:

Wendy Roberts, MD, Dermatologist

• It is a major challenge for conventional

technology to treat dark skin -- Black,

Middle Eastern, Indian, Asian, even

tanned white skin

• Aerolase 650-microsecond technology is

a game changer for many U.S.

dermatologists who avoid treating skin of

color because of high risks

• Key advantage for largely untapped vast

emerging markets of China, India, Brazil,

Africa, other

Leading dermatologist for skin of color and founder of Roberts Skin Type Classification

Scale

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Key Differentiator #9: Aerolase Delivers Unmatched ROI to Practitioner

• Superiority on the key laser attributes >> compelling unmatched practitioner ROI

• Typical payback period on laser cost within 5 months, can generates revenue up to $1M/yr or more

-

Revenue Estimator for Aerolase LightPod Neo Elite Laser

Application

# of New

Clients per

month

Tx Time

(minutes)

Avg. Fee per

Treatment

($)

Avg. #

of Tx

Total Annual

Revenues ($)

Acne Clearance 4 15 350$ 4 67,200$

Spider Veins 8 5 300$ 2 57,600$

Rosacea 4 15 350$ 4 67,200$

Psoriasis (CPT codes 96920-22) 8 20 175$ 12 201,600$

Sun Spots, Pigmented Lesions 1 15-20 350$ 3 12,600$

Melasma 2 25-30 500$ 4 48,000$

Face/Neck Skin Tightening/Rejuvenation 4 25-30 450$ 4 86,400$

Decolletage Skin Rejuvenation 2 20-25 450$ 4 43,200$

Hands Photorejuv 2 20-25 250$ 4 24,000$

Hair Removal (upper lip) 4 10-15 100$ 6 28,800$

Hair Removal (facial area) 2 10-15 150$ 6 21,600$

Hair Removal (armpits) 4 10-15 250$ 6 72,000$

Scars 2 15-20 250$ 4 24,000$

Nail Fungus 2 15 250$ 4 24,000$

Warts/skin tags/angiomas 8 5 200$ 4 76,800$

$855,000

Psoriasis 96920-96922: Laser Treatment for Inflammatory Skin Disease (Psoriasis); --

$165-$252

Destruction of Lesions 17000-17004: Pigmented Lesions, Skin Tags, Other Lesions

Destruction, Benign Lesion, any method -- $75-$175

Port Wine Stains & Large Strawberry Hemangiomas 17106-17108: Destruction of

cutaneous vascular proliferative lesions (e.g. laser technique); -- $375-$875

Warts 17110-17111: Warts Destruction by any method of flat wart, molluscum or milia -

- $100

Debridement 97597: Wound Healing (Laser Debridement) Selective Debridement

without Anesthesia -- $50

CPT Codes and Reimbursement Rates For Aerolase Medical Treatments

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Expert User Testimony: Aerolase Neo® – Highest ROI

“The most constantly used, and biggest profit center laser in my practice of 45 lasers”

– Michael Gold, Dermatologist Gold Skin Care Center Nashville, TN

“I generated $1.5M in a year with one Neo laser” – Medi Neyastanki, CEO & Founder Spade Skin Care & More Los Angeles Metro

“ Neo delights my very most demanding and laser-savvy patients, and is so versatile that I generated new revenues in excess of the laser cost in just a few months. I’m vigilant on ROI and Neo stand outs on that.”

-- Roberta Del Campo, Dermatologist – Del Campo Dermatology & Laser Institute Miami

It’s versatile, with hardly any maintenance. It’s portable, it’s safe, it’s effective. It’s a no brainer.

-- Arusha Campbell-Chambers, Dermatologist Montego Bay, Jamaica

“Neo is our workhorse . We just purchased our third one. The office has many other devices, all of which are sitting untouched in the laser graveyard typical of many practices .”

-- Jason Staback, PA-C Dermatology Northern NJ

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Many Innovative Pipeline Products on the Way

Each Has Different Parameters Optimized for the Target Treatments and User Segments

Three Main Lasers in Present Line-Up

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Historic and Near Term Financial Profile, pre-growth capital raise

• +76% Laser Revenues 2019 vs. 2018

• Robust growth across all parts of the business

• Positive EBITDA despite substantial discretionary

long term growth investments in SG&A

Fiscal years ending Dec, $K:

2016A 2017A 2018A 2019A 2020

Revenues 4,205 6,556 7,528 13,063 18,000

EBITDA 335 1,378 1118 3,052 3,675

2019 Financial Highlights:

Notes: Gross Margin > 80%. 2018 and 2019 exclude non-recurring items and planned elevation of discretionary SG&A investment ahead of revenues to drive volume to critical mass levels.

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Q1 Q2 Q3 Q4

Quarterly Revenue

2017

2018

2019

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Financial Plan Post-Growth Capital Raise

2019A 2020 2021 2022 2023

Revenues 13,063 21,970 43,030 64,855 85,177

EBITDA 3,052 4,000 9,375 16,500 24,775

Conservative Base Plan Reflects sales of Aerolase products already in the market, assumes $10M raise Q1 2020:

Revenue upside ($K) from new product intro’s being accelerated, assuming additional $15M growth raise Q1 2020:

2019 2020 2021 2022 2023

0 1,294 13,868 42,163 109,186

($K)

($K)

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Aerolase Already Tripled Salesforce Within Last 12 months

VP US Sales = 1

Main Use of Investment to Expand U.S. Salesforce to Cover All Key Markets

Current and Near Term Targeted Coverage

Current U.S. = 23

Corp. HQ Tarrytown, NY

EMEA

Return on Salesforce Investment (ROSI)

Average Salesperson/Month:

$10K fixed all-in (incl t&e)

+ $6K commission

= $16K Total Cost

Revenue generated/mo $62.5K, <1 laser

Gross Margin 85% $53.1K

ROSI= 3.3x, (53.1÷16)

New hire typically sells 1st laser within 4 months -

already +$37K ROSI

To be added over next

12 months, resulting in

40 salesperson territories

covering major market areas

In training 6 of

fewer mos. tenure = 7

Semi-trained

6–12 mos. tenure = 3

Fully trained

12+ mos. tenure = 10

Regional Sales Manager = 2

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Main Use of Proceeds

Accelerating Financial Performance, Strategic Expansion via High Return/Low Risk Projects

Aerolase is growing rapidly through internal EBITDA but would apply

growth equity proceeds as follows:

• Accelerate U.S. direct sales expansion to cover all U.S. territories replicating successful sales model

o Buildout in line with major competitors should generate an incremental $100M revenues over 5 years

o Plan results highly visible -- Aerolase wins order on most demos (high close rate) including against biggest competitors

• Step up U.S. and global marketing

• Accelerate International channels buildout -- Int’l could well be > 50% of revs.

• Fund further KOL network and support globally to broaden awareness of Aerolase superiorities

• Accelerate commercialization of pipeline products which would also generate large recurring revenue streams

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Post New Investment Aerolase Revenue Ramp Plan Follows Classic Trajectory

Actual Revenues Demonstrated by Prior Aesthetic Device Innovators

During Their First 3 Years Post Full Commercialization Funding ($25M average investment) Graph indication is conservative as Aerolase has a bigger addressable market

1 2

3

120

100

80

60

40

20

0

Fraxel

Syneron

Ulthera

Zeltiq

Thermage

Reported

Revs $M

Years Post-Full Financing

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Management Skilled in Executing Growth Ramp and Adding Shareholder Value, part 1

Pavel Efremkin, PhD—Founder, CEO, CTO

Successful serial entrepreneur, built Aerolase from vision of unmet market need to a profitable global emerging leader. Built and led all functions in vertically integrated

medical device company including, at various times, IP creation, R&D, regulatory, clinical research, manufacturing, sales, and marketing.

Raised early seed growth capital from institutional and family office sources, and others

Entered into strategic collaborative development agreement with $2B market cap Cardiovascular Systems Inc. (NASDAQ: CSII), entailing multimillion dollar equity

investment in Aerolase

Author of 20+ U.S. patents + many international

Graduate degrees magna cum laude in physics, technology—Moscow State University (a premier science university of world class caliber); PE/VC Executive Program--

Harvard Business School

Joe Hurley—COO

Top executive at OK Industries, pivotal role in OK being acquired by Advent (PE firm) then sold to public conglomerate Dover Industries

Co-built Aerolase starting 2004, built and led sales, marketing quality management, and HR functions

Dual BS Mechanical Engineering & Materials Science-UConn, MBA magna cum laude-Northeastern Univ.

Kathy Walton—VP of U.S. Sales

9 years of sales management at Aerolase, Nestlé/Galderma and Eclipse medical, 16 years in dermatology sales

Leveraged relationships with Key Opinion Leaders in dermatology to accelerate sales and elevate brand profile

Rapidly scaled Aerolase U.S. sales team and productivity to achieve > 80% revenue growth year over year, turned around underperforming regions

Gary M. Giblen– Director of Corporate Development

Previously #1-ranked Wall Street analyst in sector/Director of Research; Recognized for finding/assisting major emerging growth winners

Leads strategic, partnering, investor and capital raising activities at Aerolase; created Aerolase Business Advisory Board of industry luminaries in finance, strategy

Instrumental in strategic collaborative development agreement with $2B market cap Cardiovascular Systems Inc. (NASDAQ: CSII), entailing multimillion dollar equity

investment in Aerolase

BA Yale, MBA Harvard

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Management Skilled in Executing Growth Ramp and Adding Shareholder Value, part 2

Nicolas Maurer --Director of Business Development/Marketing Europe, Middle East, Africa

Former CCO Establishment Labs (ESTA:NASDAQ -- breast implant co) as it flourished to $300M enterprise value IPO under PE sponsorship (now $550M )

Proven leader in global dermatology brand marketing and sales., VP Marketing Beiersdorf in German and US HQ, responsible for global skincare brands Nivea,

Eucerin, Aquaphor; 18 years in aesthetic marketing.

Successfully expanded Aerolase KOL and partner network in Europe.

John Lenihan--Director of Sales Europe, Middle East, Africa

Seasoned and successful sales leader built and managed EMEA sales organizations for Cutera and Cynosure; CCO Energist – a leading UK based aesthetic laser company. 24 years in dermatology laser sales.

Successfully launched 11 distributors for Aerolase since 2018.

Sean Johnson—Director of U.S. Marketing

7 years progressive responsibilities in all facets of dermatology laser marketing strategy and execution.

Led Aerolase marketing team from start up to acknowledged excellence particularly in social media.

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Aerolase Technology Advantages Can Be Swiftly Commercialized Into

Big Medical Verticals Outside Present Core

• Unique in-house R&D know-hows translate very well to other

verticals:

• Investment in the new verticals portfolio could be in a

separate entity or as part of core Aerolase Corp.

o Vast expertise in design and manufacturing of uniquely

portable high power medical lasers

o Deep clinical understanding of lasers’ effects on live tissue

o Proven leadership in inventing laser treatments delivering

new levels of efficacy and safety

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DISCLAIMER

This presentation is designed to help potential investors better understand the potential risks, costs and benefits of this company, but

it is not intended, and is not to be considered, as an investment offer or solicitation, which may be regulated by law. This presentation

does not purport to be all-inclusive nor to contain all information that a prospective investor may desire in investigating this company.

Each prospective investor must rely on his or her own examination of the potential investment and the terms of the proposed

investment, including the merits and risks involved in making an investment decision.

The contents of this presentation should not be construed by prospective investors as investment, tax or legal advice. Investors are

advised to exercise caution when considering investment alternatives because actual data may differ from projections. Prior to

making an investment decision regarding the proposed investment, a prospective investor is urged to consult his or her own counsel,

accountants and other advisors.

The information contained in this presentation is confidential and proprietary and is being submitted to prospective investors solely for

such investors' confidential use with the express understanding that such persons will not release this document or discuss the

information contained herein or make reproductions of or use this presentation for any purpose other than evaluating a potential

investment in the company.

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