IRegained | Vineet Johnson, CEO

(Transcription)

Vineet Johnson  0:03  

Good evening everyone. My name is Vineet Johnson, founder and CEO of IRegaineD. When someone gets a stroke, a part of the brain is damaged and as a result, their hand function is compromised. There's nothing wrong with the hand itself. But the connection from the brain to the handle this last week, IRegained use advanced engineering, advanced technology and deep neuroscience research to help restore the hand function through a process called neuroplasticity. I am a physical therapist and a neuroscientist by training. This is a massive problem. More than 850,000 people get a stroke in US and Canada each year. And 70% of these individuals have varying level of hand function paralysis, there are no effective solution there at this point of time, and they're forced to live with their disability for the rest of their lives. Fortunately, with the benefit of neuroplasticity, a lot can be done as long as it's structured in the most appropriate way. Our solution is the my hand system. It's a platform system, which has the smart device on one end, when it provides little slots for each fingers to be inserted into those slots. And once you insert the fingers into the slots, the feedback that you know what you what the patient needs to do is provided on the tablet, step by step. Think of yourself for example, doing maybe picking up a bottle of water, take that task, and like a flipbook, split it into 4000 5000 parts, and then teach them part by part. And that's kind of what we do. And that's automated into the system. Now you could provide this in the form of a exercise, or you could provide the form of games to make it more engaging and make it more entertaining. The devices will come with telemedicine enabled, as a result, it allows for remote supervision or remote monitoring. So, from a market opportunity perspective, the global market space is about a 17 billion market opportunity. In North America, it's about $7 billion. That's markets and markets research on a top down analysis. If you do the same thing bottom up, there are over 15,000 rehab centers in US and Canada and about 40,000 clinics in US and Canada. And that presents us with a business opportunity of $1 billion. So our goal over the next four years is to acquire 500 of these centers as our clients, which presents us with the business model of about $50 million. So in terms of validation, eight patients participated in a six week trial or 18, one hour sessions. And as you see the EMG, or electrical activity of the muscle, which combines the brain and muscle activity together, you see very little activity right at the start in the pre therapy. And in the post therapy not only does the activity increase, it stays for the duration of that task. And it's very skidding towards the healthy control margin. This is only six weeks. And from a physiological side that looks interesting. But a patient doesn't care about the physiology they're more interested in I couldn't pick up a coffee mug, now I can is that that's all they want to see from an objective point. kaha is a standardized tool that the clinician is given rate, the function of each task, and that was that represented a 20% increase. The ABLE hand is a subjective tool. It's a survey where the patient is asked what can you do, and there was a 28% increase. So both objective and subjective scales indicated significant improvement over the time. So because of COVID Of course, like everybody else, we lived under that COVID Rock. As a result, we could not continue our clinical validation process. Even though we started in March of 2020. We have to stop. We have now everything else in place, we did not stop we continued getting things in place. Everything is ready to go over the next 12 months. Our goal is to complete clinical validation both in Canada and the US and clinical pilots. That's the goal of the next 12 months for the company 12 to 15 months. Our product pathway despite all the challenges from COVID all the all their lockdowns and restrictions. We continue our product development, our device went from a green box you see on the left end, a proof of concept device to something that looks like a beta prototype, which will be a part of our clinical launch in our clinical validation studies. So our go to market plan over the next three years. In the first 12 months complete our clinical validation plan or evidence generation including pilots. In the second phase, take the same centers that we used in these parts and apply our beta device into those system on a loan to own program and initiate our commercial launch. And as that market matures, you move into other verticals in the space eventually translate into a b2b see business model, where we could start selling the devices to a patient's home On. Our revenue model is a razor razor blade model where 40% of our revenues comes from the platform device, the my hand system, and about 55% of our revenues comes from recurring revenue platform or protocols, games and the telemedicine. These are based on three year post launch projections. From a competitive advantage perspective, there are four different groups of competition. The passive devices and functional electrical devices are largely more like a crutch. Once you take them away, there's no long standing neuroplastic changes to the brain. As a result, they don't provide long standing benefits. The virtual rehab does not play in the hand area because of the level of complexity. The robotics, though impactful and effective, are very complex, very expensive. Most importantly, the results are inconsistent, depends on how good the clinician is finishing is, for a fraction of that cost at $8,000. US mind you a robotic device could set you back 300,000 to 500,000 dollars. For a fraction of that cost and $8,000. US ASP our system is easy to use. It's affordable, it's portable, a patient can take it anywhere, use it as a laptop, desktop, beside the bed beside a couch. And most importantly, our unique value proposition of protocols. These are granular exercise regimen from which we collect data over time. And that data that we collect could translate into our AI platform over the next two years. from a patient perspective, we provide personalized therapy. From a clinician perspective, we give them diagnostic prognostic details. And from a business point of view, we will be the only one in that space collecting that kind of data, which allows us to potentially dominate that space. From IP point of view, it's a very strong competitive barrier. We've we've completed our systems and methods claim in all of the markets we plan to enter. From a regulatory point of view, it's a class one device US Canada and EU as sort of so that we don't have to do expensive clinical trials, it's a very quicker time to market. And the trials that we do are largely focused on clinical and market adoption. From a financial projections we break even by end of year to post launch, we present a net margin of 50 plus 50% or higher by year five and revenues 50 plus million by year five. The dark blue area represents revenue from hardware. And the gray area on the graph represents revenue from the recurring revenue from SAS platform, which basically says the amount of resources we put into that is far lower, but the incremental revenue over time is quite quite impactful. We have a pretty solid well accomplished management team myself 25 plus years in the space, runs it, mostly in the clinical and research space runs it Stanley and I went to Sunday school together. He's got 25 plus years in the clinical space. Laura Carrick 22 plus years in the industrial design space. Mike taller Narsil entrepreneur himself has recently taken over a CTO about 22 years experience in the technology space semi so he has extensive experience in the marketing and sales particularly in medical device in the US and Canada with Zimmer Biomet, Joe Lederman, 45 plus years expertise in the space, and he's actually companies built 60 plus companies over that time. We are currently completing a $1 million round that's about 250,000 or $250,000 left on the round. Our goal of that fund is to complete our clinical validation and pilots up current plan race that we present here is for q4 of this year, where we will raise a $5 million or $20 million pre money with standard NCV NVCA terms with primary focus on commercialization. There are a couple of companies that we listed in the space that were I think, in the last 12 months was has raised with free money of 25 million. The other one was undisclosed, both our pre revenue and that kind of company, a company comparison recently put that in there. We plan to be most probably will be acquired by a number of companies out there by renters is one of those companies in the space that recently acquired a couple of companies in that area. In summary, it's a large but poorly mid market, compelling value proposition very strong IP, low risk regulatory sustainable revenue presenting a sustainable business model, most importantly, a clinically effective system. We want every patient every clinician, every investor to say I Regained. thank you all very much