NovaResp Technologies | Hamed Hanafi, President & Director

(Transcription)

Hamed Hanafi  0:05  

Hello everyone. My name is Hamid Hanafi and I'm the president and founder of NovaResp Technologies where we're aiming to revolutionize the treatment of obstructive sleep apnea with our artificial intelligence technology. Obstructive sleep apnea is a serious issue. During sleep, you could have blockage of airway for periods of 10 seconds up to two minutes. This could happen hundreds of times a night is estimated that 1 billion people globally are affected by it and it comorbidities could lead to type two diabetes, higher chances of stroke, higher chances of heart attacks. It's a huge market from everybody that's not diagnosed yet. And those who are diagnosed and don't use the treatment, we are aiming to reach obtain about $1 billion of this market with 50% going to hardware and 50% revenues from software. There are competitor technologies out there to CPAP 15% of the market belongs to oral appliances that are not effective on severe sleep apnea. Neuro stimulators that are very innovative, but semi invasive, and surgery that nobody volunteers to do it unless they have to. See perhaps are the only effective treatment out there. With the companies that dominate this market. However, nobody likes using them. There has not been an innovation in this market for years and years. I don't know if anybody in the audience knows anyone that uses a CPAP or should be using a CPAP. But he's avoiding it. My father has severe sleep apnea and doesn't use his machine do anything for me. And I need his data on that machine and he does not use his machine. patients complain about receiving too much air or too little or these machines are uncomfortable, you don't want to use them, they're plugged to the wall. Next on your bedside table. You're attached to your bed, and your bedside table, and you're immobile. They're uncomfortable, the hose and the mask and all of that. And they're also reactive. Obstructive still happen throughout the night. And it takes the machine 10 to 20 seconds to remove that obstruction by pushing air into your lungs. We solve that with our AI technology. We have a software that can be installed on any CPAP machine. It predicts the apnea before it would happen and it's tight and gently removes it. Airways like a balloon, if it's fully deflated, you need so much air to blow it up again. But if it's halfway blown up, and you know it's going to collapse, you need less pressure to keep it open. That's the key here. We use machine learning from data collected from a lot of patients and develop this technology that can predict and prevent apnea as gently. we are aiming to we already have a partner actually to install our software on the generic white label CPAP machine and bring that to market in 2024. And in the meantime, we're also designing or wearable CPAP because our software, our machine learning software is the basis of innovation in this market, we can drop the power consumption by not needing as much pressure and build wearables see perhaps the reason we're doing this in two steps. It's not just to commercial two devices. It's also a regulatory strategy because it is better to put an innovative software on an already established white label CPAP get that approved, and then revolutionize the hardware side. To prove this, so far, we've done an observational clinical study. And we're also looking at it in Canada and Atlantic Canada. We did in the in the queue to hospital there where we collected about 70,000 apnea. And we proved that we can predict apnea as before they would happen with over 90% accuracy. That's huge. And now we're running a study to show that we can use those predictions to prevent apnea and the preliminary results are outstanding. We're going to be on that white label CPAP and start our multicenter trials in the beginning of 2023. We have a very aggressive go to market strategy and that's why we're raising to have this CPAP sold in the beginning of 2024. So and then move on to our generation to also have a solid IP strategy. We have some trade secret in the company. However, four patents are filed And two more are going in this year regarding the wearable. All Star Team, Joe Lieberman has brought about 60 devices to market and Dr. Schmidt has over 60 plus patents. And there's not enough time to go through the whole team, but it's an all star team. But even more excitingly, we have partner in our key as key opinion leaders in charity Institute, Dr. Pindella and Dr. fiance. And in Cleveland, Dr. Mara, and in Pittsburgh, Dr. Patel, these guys write the clinical guidelines of sleep apnea therapy for European respiratory society and American Thoracic Society. And they share this vision with us. We're pretty excited to work with them. We expect to be in the market and start from Canada because we have an investor that is the largest privately owned CPAP selling company in Canada. That's our investor and he's going to start selling these CPAP apps in Canada as of 2024, then we move to the US and Europe. We expect to have about 50% of our revenues, five years down the line from software and accessories. We're also going to be cashflow positive within two years of the commercialization. While we do want to build a sustainable company with that provides liquidity to investors via public offering. We understand the expectations and we will not be surprised when noticed by bigger players that we're already talking to have an exit of a 20 to 30x. So for this round, again, to continue on what on what Mohamed was mentioning, we have leveraged the help in Canada and only have raised $1.1 million to date. But to follow our aggressive go to market strategy and be market in the beginning of 2024. With our Gen one device, followed by approvals, we need to raise $5 million in this round closing in August, which will give us 22 months of runway from there and we'll move on to series A after that. In summary, we're addressing the most important issue in the market, comfort of patients patient compliance, patient adherence is the acknowledged problem in this market. And it's a large and growing undeniably growing market. Everybody knows sleep apnea and sleeping is is a big issue. We have already demonstrated the predictive the predictable pregnant effectiveness of our predictive software. And we have an IP line of IP that not only shows protects us for sleep apnea, but also for any ventilation and prediction and prevention of respiratory failure. Thank you very much