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•SMI has developed the Lumbar Matrix System •A unique spinal physiology imaging scan used to diagnose disc, facet and chronic LBP pathology

•SMI is the only company that offers this technology •10 issued US Patents (1 pending)•5 issued foreign patents (1 pending)•FDA approved•UL approved•4 functional CPT reimbursement codes•10 peer-reviewed published clinical papers

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We manufacture our own arraysWe will begin manufacturing our

hardware/software systems in July Control of vendors and W.I.P., provides as-needed

inventory management Adds significant value to the company

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Stage of Company

Launched the LMS System in February

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Customers Neuro and orthopaedic spine surgeonsLMS usage cascade of treatment (when and

how)

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Creation of Company

Technology Founder - Mark Finneran, MD Wooster, OhioTrained neurosurgeon / rehabilitation

physician who saw the need30-40% of L.B. spine surgeries result in

“failed back syndrome”Clearly points to the need for improved

diagnostic and better defined treatment pathways

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Market DemandLarge, strong market demographics21 million LBP hospital visits per year$145 billion spent annually on LBP patients

resulting in 1.5 million spinal surgeries60-65% success rate

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Entrepreneur/CEO Market Exposure

Twenty-Five Years experience in the ortho/spine marketplace

Theken Spine – President Wright Medical Spine, Trauma, Biologics, Sr. VPMedtronic Sofamore Danek, VP

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FinancingSeries A ($9.5 MM)

NationWide Insurance (OH) ABL Group (OH) Z2 Ventures (OH) X-Gen (OH) Ohio Innovation Fund (OH) Dan Kellogg (OH)

Series B ($8 MM) Psilos Group (NYC) (lead) ODOD (OH) ABL Group (OH)

*Follow-on is available

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Original Business Plan

To outsource development and manufacturing

Launch in the rehabilitation/workers’ comp. markets

Utilize Independent distribution network

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Revised Business Plan In-house manufacturing controlTarget neuro/ortho spine surgeonsUtilize published and defined clinical support

dataDirect sales organization

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FutureLarge MarketAdvantage-current cost savings environment

for medical proceduresNeed for outcome-focused reproducible

results No current competition for LMS System

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Impact Of NE Ohio On CompanyGovernor Strickland, Lt. Governor Fisher and

ODOD – very supportiveAkron Mayor Donald Plusquellic and his staff

– very supportiveBioEnterprise Interaction

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Challenges Recruiting at the Sr. Management levelMedical device vendors and contract

Manufacturing base to service small companies

Overall economic trends in the Akron region

Lack of larger (lead) VC firms in Ohio that focus on medical devices and have significant follow-on capacity

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Lessons Learned / Business PlanNever assume that previous device

development and manufacturing data has value

Adoption curve for something brand newIssues with third-party payers

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