Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope....
Transcript of Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope....
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Intelligent Bioenergetics, Inc.Company Overview – August 2018
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In 2012 John Thorp trained a well-known trainer’s son touse the evolving technology of the Electro-Equiscope on a 2-year old colt by the name of I’ll Have Another. This little colthad amazing speed but had chronic inflammation in hisankles. He lost his first two races before being purchased byJ. Paul Reddam and trained by Doug O’Neill. After 30 daysof training this little unknown horse came out at his firstrace with the odds of 43 to 1, a huge long shot! Since thetechnology had removed all of the inflammation from thechronically sore ankles, he was ready to run crushing thefield by six lengths. He went on to the win the KentuckyDerby and the Preakness in 2012. A little unknown colt thatwas purchased for $35,000 was sold to the Japanese forstud for $10 million dollars just 6 months after we beganworking on him.
Maximizing Cell Potential
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Fast-forward to 2018, Itsinthepost, trained by Jeff Mullins has gone from obscurity to winning 5 of its last 7 races and $1 million.
Maximizing Cell Potential
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Christophe Soumillon, jockey andwinner of the $10M Dubai World Cupriding Thunder Snow getting treatedwith Equiscope.
Darren Sproles, running back for worldchampion Philadelphia Eagles being treatedwith Equiscope.
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5
The Electro-Equiscope gets athletes back on the fieldfast. In most cases, we cut the healing time in half, as wasthe case with Branden Oliver, the running back for the LosAngeles Chargers. After Branden’s torn off Achilles wassurgically reattached to the bone, Oliver recovered using theElectro-Equiscope and was game ready in 4.5months. Darren Sproles, a 13-year running back in the NFL,currently with the Super Bowl victors the PhiladelphiaEagles, recovered from his ACL injury in half the time as wellusing the Electro-Equiscope. The Electro-Equiscope was alsoinstrumental in bringing back Hall of Fame Jockey, GaryStevens, at 55 years of age is riding better than ever. AsGary says “I’m riding like a kid with a man’s brain!” Olympicand professional Volleyball player Lauren Fendrick Said aftera performance enhancement protocol with the Equiscope,“I felt more grounded, poppy fast, faster than normal.”
Maximizing Cell Potential
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6
“The Equiscope has proven its utility byremoving inflammation, the root causeof all disease. I highly recommend it.”
– Stephen Sinatra, MD Cardiologist
“After my first treatment, I was amazed, the pain in my knee was gone.”
– Daniel Amen, MD Psychiatrist
“The technology is amazing and makes me a better physician”
– Richard Delany, MD Cardiologist & Internal Medicine
Advocacy
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The Science
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Electrotherapy promotes re-connection andrepair of broken or damaged electricalcircuits and cells within the body, bystimulating correct wave form, current, andfrequency. When there is pain in the bodythere is electrical resistance, meaning theelectrical signals between cells aredisconnected, broken, suppressed orblocked. Consistent use of this healingmodality can help to restore the flow ofelectricity through painful areas so thatmeridian circuits may connect and healingcan be supported. Thus cellularcommunication is promoted.
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Hours Days Weeks Months
Bleeding / Injury
Inflammation
Proliferation
Remodeling
Tissue Repair Phases and Timescale
Equiscope electrotherapy shortens the cycle.
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Skin Surface
Epidermis
Dermis +
-Na+ K+
Cl-
Skin Surface
Epidermis
Dermis +
- -
+
-
Electrical Potential
Wound
Unbroken skin layers of theepidermis and dermis (A)maintain the skin battery acrossthe body through ionicmovement of Na+,K+, and Cl-,generating a polarity withpositive (+) and negative (-)poles. When wounded (B), thecurrent flows out of the wound(blue), generating an endogenouselectrical potential (green) withthe negative pole (-) in thewound center and the positivepole away from the wound (+).
A.
B.
Cutaneous endogenous bioelectric current before and after injury
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Tissue damage / injury
Platelets
Adherence / aggregation / degranulation
Clot formation Releasing mediators
Vascular response Cellular response
Antibody production
Cellular immunity
Neutrophils
Phagocytosis
Macrophages
Monocytes Lymphocytes
Increased circulating cells
Increased heat Erythema Increased flow
Vasodilatation and increased vasopermeability
After an injury, the hemostasis(orange) leads to cessation ofbleeding. The platelets adhere toform a clot and release mediators toinduce additional plateletaggregation and mediate the phasesof the healing process. The releasedmediators trigger the inflammatoryphase (blue), divided into a vascularand cellular response.
Hemostasis
Inflamm
ation
Hemostasis and inflammation phases of wound healing
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Proliferation and remodeling phases of wound healing
The proliferation phase is areconstruction step, wherecells are working to formgranulation tissues andrestore a functional skin.Several events are conductedsimultaneously: angiogenesis,granulation tissue formation,wound contraction, collagendeposition, andreepitheliazation. Activatedepithelial cells create newblood vessels by proliferatingand migrating toward thesource of the angiogenesisstimulus. The epidermal cellsproliferate and migrate at thewound edge to initiate woundrecovery.
ProliferationRem
odeling
Fibroblasts Angiogenesis Epithelial Cells
Reepitheliazation
Endothelial Cells
Migration Replication
New blood vessel formation
Reorientation of collagen fibers
Replacement with predominantly type I
collagen
Reabsorption of early predominantly
type III collagen
Matrix deposition
Collagen based scar tissue
Proteoglycan ground
substance
Collagen Synthesis
Myofiibroblasts
Final healed tissue
Increased tissue strength
Increased tissue strength
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Cellular Level
Systemic Level
Proliferation RemodelingInflammation
Macrophages migration & activation Epidermal cell migration and proliferation
Antibacterial effect
Advanced Remodeling
AngiogenesisFaster inflammatory phase
Vascular endothelial cell migration
Fiibroblasts migration, proliferation and activation
Myofibroblast creation and activation
Wound contraction
Collagen synthesis
Re-epitheliaziation
Tissue oxygenation Blood flowSkin temperature
During inflammation, electrical stimulation increases macrophages migration and activity and decreases bacterial proliferation at the cellularlevel. At a systemic level, it induces a faster inflammatory response and an increased vascular vasodilatation that increases tissue oxygenation,blood flow and skin temperature. During the proliferation phase, electrical stimulation increases the migratory response and activity level ofepidermal cells, endothelial cells, fibroblasts and myofibroblasts. At the systemic level, it generates increased angiogenesis, collagen matrixformation, wound contraction and reepitheliazation. Finally, during the remodeling phase, the activity of fibroblasts and myofibroblasts isenhanced at a cellular level and produces advanced remodeling at a systemic level.
Effects of Electrical Stimulation on Wound Healing
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Micro-Current Therapy is not new science, it has been around for decades. What is new is researchshowing that by keeping micro-current amperage in the pico Amp range actually increases the capacitanceand health of the cell.
The micro-current device we utilize is based on Nobel Prize winning research related to measuring thesmallest current ever recorded. These scientists placed probes inside ion channels of a single cell andmeasured a current down to a Trillionth of an ampere.
This is the electrical level our bodies neurological system operates within, and the output level of ourmachine, the Electro-Equiscope®.
This research found that cells have between 30 – 40 different ion channels that accept outsideelectrons and each channel only accepts certain frequencies. They also proved that after the cells arestimulated with current in the pico Amp range, they end up having a higher capacitance over time andwere healthier. With a TENS device, operating in the milli-Amp range, the cells ended up with less chargethan prior to the treatment. Additional charge makes the cells healthier and enable the body to heal itselfdramatically quicker.
Micro-Current Therapy
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Products
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Electro-Equiscope
The Equiscope combines the Electro-Acuscope and Myopulse technologies into one instrument and isdesigned for use with humans and horses / animals.
Electrically adjusting the impedance of the patient’s tissue, the Equiscope can stimulate theautonomic nervous system and reduce pain as well as help support cellular detoxification in the bodyby applying minute-focused patient-specific electrical currents directly to the targeted tissue. Thiscurrent is administered through specialized metal alloy probes or plates with botanically basedconductive gels and creams on the skin’s surface. Treatment is a non-drug, non-invasive and virtuallypain-free modality, which supports and even accelerates the body’s normal function.
Facilitator 1845 and Unifier 1945
The Facilitator and Unifier share the same smalllightweight housing and are easy to use and convenientfor travel. The instrument can e programmed as aFacilitator for deep meditation or pre-stem celltransplantation applications or as a Unifier for post-stemcell transplantation. Both the Facilitator and Unifier helpcalm the nervous system to decrease stress and supportthe body’s healing mechanisms.
Electro-Equiscope DLS (with diagnostic laser sensor)(not registered for use in the U.S.)
The Electro-Equiscope DLS incorporate a photonic sensorthat captures instantaneous rate of exchange and thevalue of changing quantities of targeted tissueimpedance, affording the device to response withequally fast corrective patterns of current to helpneutralize the pathological signature of the tissue.
Products
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• Increase range of motion (ROM) • Expedite healing• Reduce swelling and inflammation • Enhance athletic performance• Enhance cell function (ATP) • Stimulate detoxification• Reduce / often eliminate pain • Smooth and tighten soft tissue
• Arthritides • Nerve entrapment• Back injury (acute and chronic) • Neuropathy• Broken bones • Plantar fasciitis• Bursitis • Scar tissue repair• Carpal tunnel syndrome • Spinal injuries• Circulatory disorders • Sports injuries• Disc injuries • Stress reducing• Fibromyalgia • TMJ• Headaches
Electrotherapy can relieve pain associated with conditions such as:
Applications
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Market Opportunity
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Athletes Equine
Beauty Care Beauty Care
Target Consumer Base
The four fields we intend to concentrate on are the equine andveterinary market, the esthetics/beauty care industry (includingpre- and post-surgical plastic surgery), the sports industry and theacute and chronic pain management market.
1. Company estimates (see appendix).
$16,489,515,000
$6,300,000,000 $1,686,510,000
$18,699,590,000
Total Addressable Market Opportunity
Sports Market Equine MarketBeauty Care Market Pain Management
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25.3million
American adults suffer from daily
(chronic) pain
23.4million
American adults report a lot of
pain
25.4million
American adults experience
category 3 (of 4) of pain
14.4million
American adults experience the highest level of
pain (category 4)
Nearly 40 million adults experience severe levels of pain.
Pain in the U.S.
Source: Citation: Nahin RL. Estimates of pain prevalence and severity in adults: United States, 2012. Journal of Pain. 2015;16(8):769-780.
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Equiscope Unit P&L
Equiscope Package $ 35,000.00 Shipping & Handling 250.00 Sales Discounts (5,000.00)Total Income $ 30,250.00
Cost of Goods Sold Equiscope 6,815.18 Accessories 618.99 Creams & Gels 73.14 Total Equipment $ 7,507.31
Commissions 3,000.00 Training 2,500.00 Royalties 1,500.00 Training Royalties 3,000.00 Total COGs $ 17,507.31
Gross Profit $ 12,742.69
Economics
Our goal, through volume purchasing, is to drive Cost of Goods sold from$7,500 to below $5,000 over the next five years.
At current retail price of $35,000, this would expand gross margin from 42% to48%.
Facilitator 1845 $ 4,000.00Cost of Goods Sold $ 950.00Gross Profit $ 3,050.00
Unifier $ 4,000.00Cost of Goods Sold $ 950.00Gross Profit $ 3,050.00
TrainingEquiscope $ 7,500.00Esthetics $ 4,500.00
Planned Equiscope II $ 15,000.00Target Cost of Goods Sold $ 7,320.00Implied Gross Profit $ 7,930.00
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2013-2017 $4.3 million revenuesProof of concept achieved
2018
Close A RoundLaunch brand awareness, sales & marketing campaigns Establish 3rd party financing Secure exclusivity distribution agreement for North AmericaCommence development of consumer model (Electro-Equiscope)Submit applications for EU Certification Secure option to acquire technology platform and IP Build C-level team and sales force
Commercial launch of consumer model (Electro-Equiscope)Acquisition of technology platform and IP 2019
Milestones Achieved and Planned
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Reimbursement Strategy
Indiations for Use consistent with clinical evidence and code description, well-defined
patient population, endorsement from medical professional organizations, strong safety and
efficacy data, good economic rationale
Payer Coverage
Published pivotal trial data, FDA approval, evidence of widespread adoption
New Billing Code
Established payer coverage, inclusion in professional society guidelines, demonstrated
safety and efficacy, well-established clinical need, cost-effective, easy-to-use, strong market demand
Clinical Adoption
Our VisionWe intend to pursue a reimbursement strategy that if successful, we believe will exponentially drive sales.
1) Work in clinical research to design studies that show “medical benefit” and “added value”. We will focus in conditions of chronic regional pain that other modality and approaches have had difficulty showing success, where we believe the Equiscope will be able to demonstrate success.
2) Identification of code for the Equiscope3) Work with the FDA to phrase the
intended use and indications for use to fit coverage and coding
4) Presentation of the clinical trial date to the Centers of Medicare and Medicaid Services (CMS) for reimbursement approval
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Key Financial and Offering Data
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Key Offering Data
Pre-Offering Post-Offering Pro Forma Capitalization Shares Out % of Out Shares Out % of Out Founders 9,500,000 93.0% 9,500,000 60.8%Others 218,750 2.1% 218,750 1.4%Current Offering - 0.0% 5,400,000 34.6%2018 Stock Plan 500,000 4.9% 500,000 3.2%Total 10,218,750 100% 15,618,750 100%
Key Offering Data Max Corporate StructureShares Out 9,718,750 Warrants/Options Out 500,000 Convertible Debt $ -Shares issued on Debt Conv. -Shares Out Fully Diluted 10,218,750 Offering $ 2,700,000 Offering Price/Share $ 0.50 Offered Shares 5,400,000 Post Offering Shares Out (FD) 15,618,750 Post Offering Valuation $ 7,809,375
Use of Proceeds Max Research and Development $ 273,000 Inventory 750,731 Marketing and Sales 640,000 Operations 959,269 Misc. 77,000 Gross Proceeds $ 2,700,000 Offering Expenses 189,000.00 Net Proceeds $ 2,511,000
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2013 2014 2015 2016 2017 2013-2017Total Revenue $ 301,907 $ 1,376,596 $ 1,097,010 $ 677,726 $ 848,738 $ 4,301,977
Total Direct Costs 166,009 808,893 554,532 375,113 424,865 2,329,413 Gross Margin 135,898 567,703 542,477 302,613 423,873 1,972,564
Total Operating Expenses 41,607 327,566 489,408 296,135 371,398 1,526,115 Operating Income (Loss) 94,291 240,137 53,069 6,477 52,474 446,449
Total Other Income - 7 2,249 324 760 3,341 Income Taxes 12,838 53,859 3,030 1,550 1,675 72,952
Net Income (Loss) $ 35,227 $ 82,043 $ (2,767) (43,597) (52,839) 18,068 EBITDA (Loss) $ 94,291 $ 240,137 $ 53,069 $ 6,477 $ 52,474 $ 446,449
% 31.2% 17.4% 4.8% 1.0% 6.2% 10.4%
Historical Financial Performance
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Pro Forma Financial Performance
2018 2019 2020 2021 2022Total Revenue $ 980,000 $ 2,830,000 $ 12,460,000 $ 26,470,000 $ 49,460,000
Total Direct Costs 470,000 1,330,000 6,080,000 12,920,000 24,260,000 Gross Margin 520,000 1,500,000 6,380,000 13,550,000 25,210,000
Total Operating Expenses 2,350,000 3,940,000 5,440,000 7,680,000 9,930,000 Operating Income (Loss) (1,830,000) (2,450,000) 950,000 5,880,000 15,280,000
Total Other Income 10,000 10,000 10,000 10,000 20,000 Income Taxes - - 250,000 1,280,000 5,210,000
Net Income (Loss) (1,830,000) (2,440,000) 710,000 4,600,000 10,090,000 EBITDA (Loss) $ (1,830,000) $ (2,450,000) $ 950,000 $ 5,880,000 $ 15,280,000
% -187% -87% 8% 22% 31%
Total Current Assets $ 1,000,000 $ 1,490,000 $ 2,620,000 $ 7,800,000 $ 18,830,000 Fixed Assets, Net - - - - -Total Other Assets - - - - -Total Assets 1,000,000 1,490,000 2,620,000 7,800,000 18,830,000
Total Current Liabilities 120,000 300,000 730,000 1,310,000 2,260,000 Total Long Term Liabilities - - - - -Total Equity 880,000 1,200,000 1,900,000 6,490,000 18,830,000 Total Liabilities and Equity $ 1,000,000 $ 1,490,000 $ 2,620,000 $ 7,800,000 $ 18,830,000
Total Cash From (For) Operating Activities $ (1,980,000) $ (2,700,000) $ (1,280,000) $ 1,680,000 $ 5,290,000 Total Cash From (For) Investing Activities - - - - -Total Cash From (For) Financing Activities 2,700,000 2,750,000 - - -Net Increase (Decrease) In Cash 730,000 60,000 (1,280,000) 1,680,000 5,290,000 Cash and Cash Equivalents-End $ 730,000 $ 780,000 $ (500,000) $ 1,180,000 $ 6,470,000
Enterprise Value Based Upon Multiple $ - $ - $ 9,500,000 $ 58,800,000 $ 152,800,000 Total Equity Value (EV-LTD+Net Cash) 730,000 780,000 9,000,000 59,980,000 159,270,000
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Pro Forma Financial Performance
$(10,000,000) $-
$10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000
2018 2019 2020 2021 2022
REVENUE AND EARNINGS G ROWTH
Total Revenue EBITDA (Loss)
0%
20%
40%
60%
80%
100%
2018 2019 2020 2021 2022
P&L EXPENSE AND MARG IN MIX ANALYSIS
Gross Margin Total Operating Expenses Total Direct Costs
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2018 2019 2020 2021 2022Total Revenue $ 980,000 $ 2,830,000 $ 12,460,000 $ 26,470,000 $ 49,460,000 Net Income (Loss) (1,830,000) (2,440,000) 710,000 4,600,000 10,090,000 EBITDA (Loss) $ (1,830,000) $ (2,450,000) $ 950,000 $ 5,880,000 $ 15,280,000
% -187% -87% 8% 22% 31%
Enterprise Value Based Upon Multiple $ - $ - $ 9,500,000 $ 58,800,000 $ 152,800,000 Total Equity Value (EV-LTD+Net Cash) 730,000 780,000 9,000,000 59,980,000 159,270,000 Liquidation Preference 8,100,000 8,100,000 8,100,000 8,100,000 8,100,000 Liquidation Preference Value 730,000 780,000 8,100,000 8,100,000 8,100,000 Available to Common - - 900,000 51,880,000 151,170,000
Total Preferred Invested 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 Total Preferred Ownership 31.8% 31.8% 31.8% 31.8% 31.8%Total Preferred Equity Value $ 730,000 $ 780,000 $ 8,385,987 $ 24,585,590 $ 56,136,366 Total Preferred Return Multiple 0.3x 0.3x 3.1x 9.1x 20.8xTotal Common Invested $ - $ 2,750,000 $ 2,750,000 $ 2,750,000 $ 2,750,000 Total Common Investor Ownership 8.1% 8.1% 8.1% 8.1% 8.1%Total Common Investor Value - - 72,821 4,197,720 12,231,482 Total Common Investor Return Multiple 0.0x 0.0x 0.0x 1.5x 4.4xTotal Current Ownership 60.1% 60.1% 60.1% 60.1% 60.1%Total Current Value $ - $ - $ 541,192 $ 31,196,690 $ 90,902,152
Pro Forma Financial Performance – Valuation Analysis
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Pro Forma Financial Performance – Valuation Analysis
$-
$50,000,000
$100,000,000
2018 2019 2020 2021 2022
Equity Value Accretion
Total Preferred Equity Value Total Current Value Total Common Investor Value
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Appendix
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1. The addressable market opportunity is based on a purely hypothetical market penetration for the Equiscope of 100% is used forillustrative purposes only. At 1% market penetration of the Equiscope, we estimate the market opportunity at $430 million.
Notes to the Appendix