Dominic Senn Presents machineMD at LSI USA '24

Dominic Senn  0:04  
Good morning, everyone. It's a pleasure to be here. My name is Dominic Senn, I'm co-founder and CEO of machineMD. We are a Swiss digital health tech company. And we use AI and pupil movements in order to measure brain function. We do this based on VR and AI technology. Actually, that's clinically nothing new. These are exams that are done today, millions of time by of the ologists optometrists and neurologists in order to see whether the brain works as it's supposed to work based on our M pupil movements. The problem with these type of exams, as they are done today, is that they are done manual. So that's when you see your optometrist and he doesn't exercise like Follow my finger or he does prison bars to measure your strabismus angles. So all those measurements are highly subjective. There are many, many patients up to 50%. They get misdiagnosed today, the way the measurements are done, there is a severe lack of specialists which are called neuro ophthalmologists in this field, so patients who need to see a specialist they have to wait about 210 days in order to get an appointment with a specialist. That's just the median. And then the examination itself is very time consuming. So a thorough comprehensive examination takes up to an hour to do all the examination steps that are needed. And patients if you look at the patient journey, they typically present with symptoms like blurry vision, headaches, double vision, they often are mostly go to the dermatologist and then they have homologies needs to do these type of examinations in order to decide whether or not the patient is actually a problem in the eye itself. Or if it's a neurological problem, and then sends it to another specialist. In many cases, typically patients they go around and see about three, four or five specialists until they end up at the right place today. So it's a very cumbersome process highly inefficient. We are about to change this with our medical device that is market approved in the US, UK and Switzerland. As for now it's called NEOs. It is combining high end VR headset that we are buying. So we don't produce our own hardware with our own proprietary software and clinical data processing algorithms on top of it. It's completely scalable. As we don't have to produce any hardware on our side, it's completely automated. So what it does is actually, it puts together in one examination flow, eight single examinations. So these are eight clinical examinations that today in the clinic are done sequentially, one after the other, we have all within one device within one examination flow. And by doing so we reduced examination time from like 45 to an hour down to about 10 minutes, it's much more precise. The VR headset has a high frequency eye tracking system built into it. So we see much, much more from the eye. In total, we collect about 50 gigabytes of data during the examination that we then analyze with our own algorithms in order to come up with the right results for the clinician. For the clinics, this means they become more efficient, because they can save time, that's an important part for them. So these 10 minutes they fit well in like standard examination before the patient actually sees the ophthalmologist, they can provide better care to the patients because they can examine them much more comprehensive and with a better quality compared to what they can do today. And at the end of the day, they make more money because they are faster and more efficient. But they can also provide a more comprehensive service. And Bill basically here in the US more CPT codes with the good thing is in our case, as these examinations are already done today, the CPT codes who actually build them, they're all in place. If you look at the business model, it's a pay per exam business model. So our customers, they are buying the hardware, the full system, which is a VR headset, laptop, and then a connectivity to our cloud backend, where we do the data processing. They pay us an annual fee for accessing the cloud. And then they pay per exam. They earn they get reimbursed between 70 and $150. With the set of examination that we have right now in the US, they pay us $10 per exam. And if you look at the total cost perspective, from the clinics, per exam, they do including labor cost and everything. They do a profit of about $25 per exam. Today, if they do these exams, they rather lose money than they make money if they take all the costs into account. So if you look at an average of the ologists, who's doing between 1520 examinations per week, that would add up to a lifetime value over six year of about 70,000 You US dollars, so they make an average about 10,000. Or we make on average about 10,000 US dollars with these customers on a recurring basis per year. The total market, if you look at the US and Europe, it's about 2 billion, we think we can at least serve half of this, that these are potential customer of ours and with a market share of 40 50%. That's a 500 million recurring revenue opportunity here. We intend to increase market size considerably by improving the device in the direction that we don't just show the measurement results of the examination, but really provide a full diagnostic information whether or not the finding is pathological or not. For first examination, we are very close to do this. This will take us another two to three years to get there and the clinical studies to show that this is possible. The good thing is once we are there, the device can also be used by opticians. It can also be used by GPS. So this will increase market, I don't know by a factor five to 10. I would say if you look at the competition, there is right now no other device out there that can do a comprehensive assessment of brain function based on ion pupil movements. There are a couple of companies that have VR devices on the market for ophthalmic testing, they typically do visual field so a subset of tests but they mainly look at whether or not the eyes are okay. They don't look actually whether or not the brain is okay. When it comes to diseases. I didn't mention that main diseases that we are looking at this MS that's Parkinson that's mild strokes. These are brain tumors. So already today, about half of all brain tumors, they are detected because they show with first signs in the eyes with MS It's between 30 and 40% of MS patients, they get diagnosed through an ophthalmologist because that's the first time that they have that they get blurry vision, they go to the dermatologist and then finally they find out that they have an MS. And this is one exam, for example, where we have misdiagnosis rate of up to 50%. Which then means for those MS patients actually that they may go without the diagnosis. And then with the next relapse, they get damage to the brain that is irreversible, so it's super important to capture them as early as possible. From our perspective, the main competition is the standard of care as it is today. That's the manual examination. So we need to show that they can provide better care that it's economically profitable for them to move from manual examination that is subjective to fully automated examination. When we look at the roadmap, we have just launched commercially so last week, we have shipped the first devices to the US and to Swiss customers. We are about to raise a Series A later this year. We are right now self register class one but we are about to submit for CE marking in the coming two months and also for FDA so everything is prepared for a class two, and we expect to get the class two clearance from the FDA later this year at the latest by the end of the year and the same for the CE marking in Europe. The team we are a rather senior team in total about 20 FTAs. Most of us have been working for 1015 years on the topics they are responsible for at machine and D we have some of the top KOLs the ones that you see here are mainly from Europe. But we have are signing up. People like Theresa right now from the Harvard Medical School is Professor and Director of neuro ophthalmology at Messiah near or Bob Sergo from Jefferson University and will say hospital. So really kind of the top key opinion leaders on this specialty here in the US. If we look at financials, the goal is to get break even in 2026. If we look at the top row, we will start slow with just a couple like 4050 devices this year with KOLs and the first customers in the relevant customer segments which are often ologists and optometrists. And then we want to start scaling up starting next year in 2025. The goal is to onboard six and a half 1000 customers in the coming five to six years. This will lead to revenues of about 60 million half of these will be recurring revenues. The other half will be CAPEX expenditure and recurring revenues will increase as we go over the years. If you look at the fundraising, that's also for us the reason we are here so we are raising a Series A with a volume of 12 million. We have already closed the convertible note last September of 3 million so we're still looking for nine millions as a price drunk later this year,

Speaker 1  10:02  
if you're interested, please get in contact with us. We have also a demo device installed in the Pacific ballroom if you enter it, like on the right corner at the end of the room, so you're very welcome to visit us there and you can come try it out. We will not tell you if you have any problems. Or maybe you can leave us a card and then we can tell you later on. I don't hope so. But you're very much welcome to actually try it out yourself. It's super simple. It's basically putting on the headset pressing a button. So it can be run by a nurse that can be run by a technical assistant, there is no need for a physician anymore doing these type of examinations. So we will be thrilled if you join us on our mission to improve healthcare and patient outcomes in ophthalmology and neurology when it comes to diseases like Parkinson's, Ms brain tumors and others so that we can do a better job there. Thanks a lot.