Concept Innovate presents:ResveraTech

Chiao ChangPrateek DiwanLucas C Rodriguez

Chronic PainMan On Fire:

• 25% of Americans suffer from chronic pain

• Nearly 50% do not get effective relief from current therapies

• Post surgical pain often clear culprits

• In many common conditions such as diabetic neuropathy, no clear source of pain is found.

• The annual cost of chronic pain is as high as $635 billion a year, which is more than the yearly costs for cancer, heart disease and diabetes.

Innovation of tomorrows pain relief solutions

ResveraTech

Amare Stoudemire… Why are you in a tub of wine???

• All natural (homeopathic)

• Found in wine, and dark chocolate

• Potential usage:• Heart Disease• Cancer• Metabolism• Lifespan• Pain relief

Resveratrol

Types of pain…

How is it currently treated???

What can be done???

Types of Pain

Acute Versus Chronic

Types of Pain

Biochemistry of PainPain

ActivatorPain

Activator

Middle-Men

Middle-Men

Complex

Ribo

Efficacy

• OTC market as of 2013 ~ $6Billion• Internal Analgesic ~ 60%• External Analgesic ~ 15%• GIA estimates $34.6Billion in

analgesic market by 2015.

Market

Platform Technology

ResveraDermCreme

Pain Relief Patch

Post-Surgical Pain Relief Bandage

Pain Relief Sutures

ResveraDerm Clinical Feasibility StudyCustomer Acquisition and Backing

• Physical Therapists• Elderly post-surgery patients• Orthopedics• Sports injury

• Chiropractors• Homeopathic

• Medical spas and Compounding Pharmacists• Massage• Homeopathic• Western Medicine

• Pain Relief Centers • Desperate for pain relief

Marketing Plan

• Finish development of platform

• CMO manufacture agreement

• Data acquisition for downstream (IP protection)

• Website Design

• Clinical feasibility

• Large retail

Sales

• Website• Clinic / Retail

• Distributer

Strategy

Strategy

ResveraTech

• BASF is an international chemical manufacturer

• Agreement in place: ResveraDerm development

R&D Manufacturer

• Manufacture product for :• Fee for service• Royalty

• Save startup capital

Contract Manufacture

Timeline

2011 2012 2013 2014 2015 2016 2017 2018

Hard Launch Patch, Bandage, Sutures

Phase III Begin (Commercialization, Angel/VC Funding)

Phase II Complete (Patch, Bandage, and Sutures Ready for Launch)

Break Even

Phase II Approval (Development of Downstream Products)

Hard Launch ResveraDerm (Large Retail)

Downstream Product IP Acquired

Phase I End

Soft Launch ResveraDerm (Clinical Feasibility Study)

SBIR/STTR Phase I Approval

Submission of SBIR/STTR

Draft of SBIR/STTR

Business Planning Begin

Publication III

Publication II

Publication I

• Phase I:• Feasibility• Clinical Study• 6 months : $150k

• Hard Launch ResveraDerm• Phase II:

• Downstream Product Development • 2 years : $750k

• Phase III (Commercialization) • Angel/VC:

• Strong track via SBIR• Manufacturer contract• Ready for sales

8000

16,000

24,000

32,000

40,000

48,000

58,000

68,000

78,000

88,000

98,000

108,000

118,000

128,000

138,000

148,000

158,000

168,000

178,250

188,500

198,750

209,000

219,250

229,500

239,750

250,000

260,250

270,500

280,750

291,250

301,750

312,250

322,750

333,250

343,750

354,250

364,750

375,250

385,750

396,250

406,750

$0$500,000

$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000

Revenue vs. Unit Sales

Units Sold

Fixed Costs: $626,820Variable Cost per Unit: $3Unit Price: $7.20Unit Increments: 10,000

BREAK-EVEN POINT: 149,243

Projections

• Fixed and variable costs analyzed• Conservative Assumptions

• low price point• two marketing channels• Concentrate efforts on TX, NM, AR, LA• Market penetration based on Lidoderm

1999• Manufacturing keeps up with sales

2014 2015 2016 2017 2018 2019 2020$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

$0.10 $2.00 $5.00

$10.00

$50.00

$100.00

Sales in Millions

Revenue Projections

FinancialsTOP DOWN

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Market

$500,000,000.00

$500,000,000.00

$500,000,000.00

$500,000,000.00

$500,000,000.00 $500,000,000.00

Penetration 0 0.1% 0.2% 0.4% 0.8% 1.6%

Rev $- $500,000.00 $1,000,000.00 $2,000,000.00 $4,000,000.00 $8,000,000.00

Costs $- $650,000.00 $767,000.00 $905,060.00 $1,067,970.80 $1,260,205.54

Profit $- $(150,000.00) $233,000.00 $1,094,940.00 $2,932,029.20 $6,739,794.46

BOTTOM UP

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5Units 0 50000.00 87500.00 153125.00 267968.75 468945.31Locations (at 2:1 C:R) 0 125.00 218.75 382.81 669.92 1172.36

Sales Rev 0 500000.00 875000.00 1531250.00 2679687.50 4689453.13

Costs $

- $650,000.00 $767,000.00 $905,060.00 $1,067,970.80 $1,260,205.54

Profit $

- $(150,000.00) $108,000.00 $626,190.00 $1,611,716.70 $3,429,247.58

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

$(500,000.00)

$500,000.00

$1,500,000.00

$2,500,000.00

$3,500,000.00

$4,500,000.00

$5,500,000.00

$6,500,000.00

$7,500,000.00

$(150,000)

Financials

$(500,000.00)

$500,000.00

$1,500,000.00

$2,500,000.00

$3,500,000.00

$4,500,000.00

$5,500,000.00

$6,500,000.00

$7,500,000.00

(150,000)

Sales in Millions

Concept Innovate

• Well-Educated• R&D Experience• Marketing• Sales

• Motivated• Adaptable• Strong Strategy• Mentor Backing

Team

Madison PedigoJackie Kimzey

Greg Dussor Ted Price

Inventors

Mentors

• All-natural, homeopathic substance• Low cost• Available • No side effects• Proven Effectiveness• Multiple Usages (Platform Technology)

In Summary…