Healthy Clinic Confidential Business Plan - Sample The mission of Healthy Clinic is to become a primary provider of European integrative medicine in the United States. Through the Osteolitic Treatment Centers and the “Five Steps to Health” it will offer a combination of both alternative and western treatment modalities, providing patients with a unique and innovative approach to medicine. The company slogan is: “INNOVATION THRU INTEGRATION”
The following dashboard highlights the results of the financial analysis, expected company performance, and summary of market break down. The reader may use this page as a quick reference visual aid to quickly understand the expected financial performance of the company.
1. Executive Summary Healthy Clinic, LLC is affiliated with Healthy Clinic (also referred to as “HC”), a German-based entity that utilizes a global network of doctors, practitioners, clinics, universities and hospitals to promote better health and patient care through the integration of alternative and cutting edge modern medicine. The Osteolitic treatment concept implements this integrative approach, offering patients treatment modalities that may not be available in conventional medicine and integrates them into their current therapy. At the same time Osteolitic patients also get access to a global network of treatment centers and medical professionals including a flagship treatment facility in Frankfurt, Switzerland. Healthy Clinic invested in the U.S. since a large proportion of its current client base originated in the United States and there is increasing demand for local access to the innovative range of treatments the company offers without having to travel abroad. Healthy Clinic, LLC will therefore do business in the United States and has received around $2.1 million in funding to date, enabling it to acquire state-of-the-art medical equipment, appoint a team of highly talented professionals and to engage in an exhaustive marketing campaign to promote its services. As part of its overall growth strategy, the company has been constructing a 3,000 sq. ft. penthouse facility in Beverly Hills. To help develop this new center and to fund the subsequent expansion of its U.S. presence, the company has secured an additional $1.5 million in funding from its co-owners, with prospective E-2 visa petitioner Mr. John Smith, who currently holds German citizenship contributing the significant sum of $722,000 from his personal funds. Mr. Beyer, who is the founder and current CEO of German-based affiliate Healthy Clinic Ltd., will further be installed as CEO of Healthy Clinic, LLC under the aforementioned E-2 visa petition, using his considerable entrepreneurial, leadership and industry skills to successfully direct and develop the growing U.S. operations. Under the experience leadership of Mr. Beyer, the company plans to broaden its reach across the U.S., partnering with an increasing number of satellite centers as well as investing considerable resources in actively promoting its services. Securing high-profile clients, including celebrities, will help generate consumer awareness, as will the hosting of engaging events and launch shows. These marketing activities will be underpinned by strong result driven approach to patient services, with clients benefitting from leading edge holistic care delivered by highly credentialed industry professionals. The chart to the right illustrates the growth potential of the company by highlighting key financial metrics – annual sales, net profits, gross margin, and personnel headcount – over the next five years. 2
In 2015 the company will achieve sales of $2.3 million, an increase on existing revenue levels, as a result of its investment in marketing and on the strength of the services offered. The new flagship center in Beverly Hills will help drive future revenue growth, with sales forecast to rise from $3.1 million in 2016 to over $9.2 million by the end of 2019. Growth in net profits will eventually mirror this upward trend following a small profit of around $5,500 in 2015 as the company absorbs expansion costs. Net profits for 2016, are expected to reach $273,000. Improvements in the net Synergy Health 5-Year Highlights
coupled
with
increasing
demand for services, to over $2.7 million by 2019. The improvement in profits and continual growth in market exposure and
Sales
Thousands
efficiency,
Gross Margin
Net Profit
Personnel
$10,000
20
$8,000
15
$6,000
10
$4,000
sales revenues will naturally lead to a
$2,000
growth in the net worth of the business,
$0
which is expected to reach around $6.7
5
Personnel
margin, as the business reaches optimal
0 2015
2016
2017
2018
2019
million by 2019.
1.1 Objectives Strategic
Firmly establish Healthy Clinic, LLC as a leading provider of holistic, integrative medical treatments in the U.S. developing a high profile medical practice.
To franchise the Osteolitic concept to 20 doctors’ offices throughout the United States in major metropolitan areas in the next 2 years
To develop a broad network of satellite centers across the U.S. and North America.
To market and introduce German Aminopeptide and Thymus products to the U.S. doctors.
Operational
Successfully launch 3,000 sq. ft. penthouse treatment center in Beverly Hills.
To expand its current staff to 15 full-time U.S. professionals by the end of 2019.
To install John Smith from Healthy Clinic Switzerland office as CEO to oversee the corporate administration operations in the United States.
3
2 Company Summary Healthy Clinic Ltd. was established by Mr. John Smith in 2009. The company is based in Switzerland and operates a medical tourism business facilitating travel and medical care for patients by matching them throughout a global network of healthcare professionals and institutions. The company opened in the United States (California) in November 2010 installing Mr. Mark Knight as the President of Healthy Clinic. In 2011 the Osteolitic Treatment Center was opened in Frankfurt, Switzerland with Philip Battiade joining Healthy Clinic Ltd. as its Medical Director. From this point on Healthy Clinic Ltd. offered in-house treatments as well as referring patients to partner clinics. In late 2011 the Osteolitic concept was introduced to the U.S. through a temporary partnership with Dr. Leigh Erin Conneally; this was carried out in a specially designed three-room treatment facility at the Center for New Medicine in Irvine, CA. During the same period a similar partnership was developed with the Sanoniv Medical Institute in Rosarito, Mexico. In December 2013 Healthy Clinic, LLC opened a small one-room treatment center in Greater Los Angeles, before identifying a premium location in Beverly Hills as an ideal position to develop a permanent treatment facility with work commencing on the new 3,000 sq. ft. facility in 2014 with completion due in early 2015. The Osteolitic Treatment Center’s are managed by Healthy Clinic, implementing and promoting integrative medicine, who’s holistic approach addresses the full range of physical, emotional, mental, social, spiritual and environmental influences in the diagnostic and treatment of a patient. It is not a new form of alternative medicine, but the integration of proven scientific medicine with safe supportive methods, while putting emphasis on patient education regarding treatment options, lifestyle and nutrition. The guiding principle for the choice of treatment is to be: as non-invasive as possible and as non-toxic as possible. The Osteolitic Treatment Centers are designed and managed to create a healing atmosphere in a luxury “spa-like” environment with the goal to set itself apart from conventional doctor´s offices. With the Five Steps to Health treatment approach developed by Philip Battiade, Osteolitic provides patients with a roadmap for optimal health and rejuvenation. It consists of immune modulation therapies, vitalizing infusions of vitamins, minerals, amino acids, and trace elements, bodywork, massage, aromatherapy, osteopathy, homeopathic supplements and herbal treatments as well as cutting edge modern treatment modalities such as regional hyperthermia, genetic testing and whole body thermography. This complex rehabilitation program has 4
3 Services Healthy Clinic offers seven (7) different services in the United States. If the company is successful in achieving the desired market penetration, then it plans to introduce further services, including:
Amino peptide Therapy
Biological Cancer Program
Stem Cell Therapy
Autoimmune Program
Bodywork
IV therapies
Lyme Program
The table below summarizes the most popular services offered by the company, highlighting key characteristics – typical margins, average profit per development etc. – associated with each type.
Services Aminopeptide (therapy & product) Integrative cancer care program Stem cell therapy program Autoimmune & lyme programs Bodywork & IV therapies
Average Unit Sales per Month in Year 1
Price
Direct Unit Cost
Contrib. Margin %
Average Monthly Margins in Year 1
20 1 3 5 77
$3,750 $20,000 $18,500 $6,800 $130
$450 $5,500 $9,600 $1,250 $45
88% 73% 48% 82% 65%
$66,000 $18,125 $25,217 $27,750 $6,566
3.1 Service Description Amino peptide Therapy includes 30 minutes of consultation with an Osteolitic practitioner HC health coach at a partner facility before going through the procedure. The therapy consumes 15 vials of nutritional supplements imported from Switzerland. Follow-up consultation is scheduled normally after three (3) to six (6) weeks of the therapy. The complete therapy including the initial consultation costs $3,750 when done in-house. If sold to other practitioners Healthy Clinic charges $1,550. If sold as a product directly to a consumer the cost is $1,275. The Lyme Program is also offered in two variations, either the Lyme Support Program or the Lyme Treatment Program. The Lyme Support Program can be performed at any of the Osteolitic Treatment Centers or satellite offices in the United States. This consists of a series of IV treatments performed within a 4-6 week period. The 5
cost of the program is approximately $7,500. At this time, the Lyme Program including stem cell therapy can only be performed at the Osteolitic Treatment Center in Switzerland. Bodywork, Massage, and IV Therapies are performed at the Healthy Clinic offices in Beverly Hills or San Anselmo. These may also be part of a follow-up or maintenance treatment for patients planning to travel to Switzerland for treatment or returning from there. Bodywork and Massage treatment consists of four (4) to six (6) consecutive sessions, take 30-90 minutes and require the constant presence of a therapist. These elements drive up the cost of sales. IV Therapies treatment take approximately three (3) hours. Several patients can be supervised at once by just one nurse or therapist. These therapies usually consist of four (4) to eight (8) consecutive IV sessions. The graph below illustrates the key characteristics of the company’s core services.
Synergy Health Services Price
Direct Unit Cost
Contrib. Margin %
$25,000
100%
$20,000
80%
$15,000
60%
$10,000
40%
$5,000
20%
$0
0% Aminopeptide Integrative (therapy & cancer care product) program
Stem cell therapy program
Autoimmune Bodywork & & lyme IV therapies programs
6
4 Marketing Analysis This section will examine the key market characteristics, both locally and nationally, that the leadership of Healthy Clinic, LLC consider essential to the strategic planning and decision-making processes of the company.
4.1 Geographical Summary Healthy Clinic, LLC is located in the city of Beverly Hills, California. Beverly Hills is an affluent city with a population of 34,6581, forming part of Los Angeles County, a wider metropolitan region of over 9.8 million residents. The city, and neighboring West Hollywood, are entirely surrounded by the city of Los Angeles, bordered by the neighborhoods of Bel Air, Holmby Hills, Santa Monica Mountains and Brentwood. Beverly Hills has long been associated with actors and celebrities since Hollywood icons Douglas Fairbanks and Mary Pickford built their mansion here in the 1920s. Nowadays, the city is synonymous with wealth, success and stardom and forms part of the so-called ‘Platinum Triangle’, an informal name for a concentration of adjacent wealthy districts, with Bel Air and Holmby Hills. Beverly Hills residents have an average per capita disposable income of almost $76,000 per year, almost three times the State and national average, while median household income is over $88,000 annually; again significantly higher than the national average ($51,000).
4.2 Market Segmentation The chart to the right highlights the typical market distribution of Healthy Clinic, LLC. As the chart illustrates, the majority of patients (70%) are usually referred to Healthy Clinic by doctors from partner clinics in the U.S. Within this segment, one group of patients consists of Americans looking for complementary or alternative treatment options for their
Healthy Clinic, LLC Market Distribution Direct Patients
Referrals from Partnered Clinic
condition, while the other group of patients is considered incurable by their physician and according to their doctor no further treatment
70%
30%
option is available in the US.
1
U.S. Census Bureau - 2013 www.quickfacts.census.gov 7
5 Sales Strategy Healthy Clinic, LLC combines a set of local and latest advertising technologies to effectively market its services across the local and domestic markets. The company has secured the services of Goldman Marketing, a leading local Public Relations agency, to provide promotional, advertising and Public Relations expertise, and this relationship will enable Healthy Clinic, LLC to deliver a highly effective, persistent marketing campaign which will include grand opening events for its new Beverly Hills penthouse treatment facility, as well as targeting promotion of Thymus wholesale products for U.S. medical practitioners. Educational seminars and public lectures on the effectiveness of integrative and alternate treatments will be the mainstay of its local marketing campaign these will also include television and radio appearances. In addition to this Healthy Clinic will regularly publish articles in local lifestyle and national medical publications. Healthy Clinic will also rely on word of mouth advertisement and referrals. Additional customers will be the direct result of referrals from partner clinics and satisfied clients. The ongoing sales strategy will focus on the following key areas: 1. Developing high-profile clients such as celebrities to increase awareness of the range of treatments available, and hosting regular events; 2. Maintaining a strong marketing focus, ensuring that sufficient resources are available to exploit potential opportunities; 3. Developing relationships with an increasing network of partner centers to increase referral opportunities and to broaden network of patient treatments; 4. Engage in research and development to retain innovative focus; 5. Build on exceptional customer service, patient management and overall holistic treatment programs to maintain and improve industry reputation.
5.1 Primary Marketing Campaign Strategy The initial marketing efforts concentrate on the local market around Beverly Hills with particular focus on the grand opening of the new Osteolitic Treatment Center in Beverly Hills. Ongoing marketing efforts will take place in a continuous manner on a local and national scale, with the company working closely with Goldman Marketing to deliver a highly professional, persistent and effective marketing campaign that will include the following channels: 8
5.2 Sales Forecast Healthy Clinic, LLC is expecting significant revenue growth over the next five years with sales forecast to rise from $2.3 million to just over $9.2 million by the end of 2019. As the table below shows, this revenue growth is primarily driven by Aminopeptide Therapy (and product) and Stem Cell Theraphy together.
Sales Forecast Unit Sales Aminopeptide (therapy & product) Integrative cancer care program Stem cell therapy program Autoimmune & lyme programs Bodywork & IV therapies
Total Units Aminopeptide (therapy & product) Integrative cancer care program Stem cell therapy program Autoimmune & lyme programs Bodywork & IV therapies
Total Sales Direct Unit Costs Aminopeptide (therapy & product) Integrative cancer care program Stem cell therapy program Autoimmune & lyme programs Bodywork & IV therapies
Subtotal Direct Cost of Sales
2015
2016
2017
2018
2019
240 15 34 60 927 1,276
240 24 60 60 1,044 1,428
384 38 96 96 1,670 2,284
499 49 125 125 2,171 2,969
649 64 163 163 2,822 3,861
900,000 927,120 1,527,936 2,044,902 300,000 494,400 806,284 1,070,895 629,000 1,143,300 1,884,192 2,527,000 408,000 420,240 692,544 928,750 120,510 139,896 230,460 308,282 $2,357,510 $3,124,956 $5,141,416 $6,879,829
2,739,429 1,440,704 3,393,986 1,247,439 412,012 $9,233,570
2015
33% 2016
65% 2017
34% 2018
34% 2019
108,000 82,500 326,400 75,000 41,715 633,615
111,360 135,960 593,280 77,280 48,024 965,904
183,552 221,730 977,760 127,392 78,490 1,588,924
245,508 294,490 1,311,375 170,875 104,208 2,126,456
329,043 396,160 1,761,378 229,504 138,278 2,854,363
9
6 Personnel Plan This section examines the internal staffing structure of the company, highlighting the relevant skills and experiences of the prospective E-2 visa beneficiary. It will also provide an insight into the expected progression of the company staffing requirements over the next five years, summarizing the anticipated timetable and salary costs of any future appointments.
6.1 Company Structure Healthy Clinic is organized as a Limited Liability Company (LLC), providing a flexible taxation structure for the owners and the company. The company operates within a straightforward organizational hierarchy as illustrated by the chart below, which shows the internal structure as of mid-2015 following the appointment of Mr. John Smith as full-time U.S. CEO.
Managing Director Personal Assistant R&D Director
CEO Personal Assistant
Medical Staff
COO Office Manager Acountant PR Manager
10
6.3 Hiring Plan Prior to the end of 2014 Healthy Clinic, LLC operated with five (5) U.S. employees, most of which were appointed to focus on establishing the administrative and marketing framework of the company; this team included an Office Manager, Public Relations Manager, a Physicians Assistant, and a Research & Development Lab Director to help establish scientific protocols and research. The table below shows the expected growth in staffing requirements following the appointment of Mr. John Smith as CEO in 2015. This expectation will lead to a team of fifteen (15) full-time U.S. professionals by the end of 2019; the company will engage its medical staff through self-managed medical corporations in order to comply with Californian State law. Headcount Table Employee Names/Titles
2015
2016
2017
2018
2019
Medical Team
5.0
5.0
6.0
9.0
9.0
Philip Battiade (Managing Director)
1.0
1.0
1.0
1.0
1.0
Naturopathic Doctor
1.0
1.0
2.0
3.0
3.0
Medical Doctor
1.0
1.0
1.0
2.0
2.0
Nurse
1.0
1.0
1.0
2.0
2.0
Tara Havens (R&D and Lab Director)
1.0
1.0
1.0
1.0
1.0
Other
0.0
0.0
0.0
0.0
0.0
Sales and Marketing
1.0
1.0
1.0
1.0
1.0
Katherine McDevitt (PR Manager)
1.0
1.0
1.0
1.0
1.0
Other
0.0
0.0
0.0
0.0
0.0
General and Administrative
3.0
3.0
3.0
3.0
3.0
Stephen Cox (Office Manager)
1.0
1.0
1.0
1.0
1.0
Assistants
2.0
2.0
2.0
2.0
2.0
Other
0.0
0.0
0.0
0.0
0.0
Executives
2.0
2.0
2.0
2.0
2.0
Daniel Beyer (C.E.O.)
1.0
1.0
1.0
1.0
1.0
Gina White (C.O.O.)
1.0
1.0
1.0
1.0
1.0
11.0
11.0
12.0
15.0
15.0
Total Staff
11
7 Financial Plan In addition to the previously stated information regarding the company’s mission, corporate objectives, operating activities, and sales and marketing strategies, this section will further examine the long-term viability of the business model and appraise the relative risk and return to investors, by presenting a series of robust financial projection and modeling outcomes.
7.1 Projected Profit and Loss The company is expected to increase profits over the next five years. The chart below left shows the corresponding progression in the gross margin over the same five-year period, which will rise gradually from 53% to 58% with slight fluctuations as the company absorbs periodic costs associated with increasing its U.S. team. This underlying stability in the gross margin reinforces the viability of the core business model, and will contribute to significant profit growth over future years, and help drive further growth in the U.S. market.
Synergy Health Gross Margin Forecast
Synergy Health Net Profits Forecast
Gross Margin %
$6,000
Net Earnings
Net Margin
60% $3,000
Thousands
Thousands
Gross Margin
$4,000
40%
$2,000
40% $2,000
20% $1,000
$0
20% 2015
2016
2017
2018
$0
2019
0% 2015
2016
2017
2018
2019
As the chart above right illustrates that the company is anticipating a small net profit of almost $5,500 – after taxes – during 2015, primarily as a result of the costs involved in rolling out its new treatment center in Beverly Hills. The additional investment will help the company drive growth during subsequent years, with a strong Marketing and Public Relation focus supporting the nascent expansion strategy that will see new satellite centers becoming affiliated; as a result of this the company forecasts net profits rising from $273,000 to just over $2.7 million over the four year period to 2019. Over the same period the company’s net margin will improve from 9% to 30% as its operational and internal efficiencies stabilize. The full five-year profit and loss projection table is shown on the following page. The gradual growth in gross margin is clearly evident, and once stabilized will empower the leadership with the confidence to make informed strategic and operational decisions, helping the company to achieve its long-term profit and growth objectives: 12
Profit & Loss Statement 2015
2016
2017
2018
2019
Sales Direct Cost of Sales Medical Team Payroll Other Total Cost of Sales
$2,357,510 633,615 498,800 0 1,132,415
$3,124,956 965,904 513,764 0 1,479,668
$5,141,416 1,588,924 677,703 0 2,266,627
$6,879,829 2,126,456 995,256 0 3,121,712
$9,233,570 2,854,363 1,025,113 0 3,879,476
Gross Margin Gross Margin %
$1,225,095 52%
$1,645,288 53%
$2,874,789 56%
$3,758,117 55%
$5,354,094 58%
80,000 84,000 72,000 30,000 $266,000
82,400 86,520 74,160 30,900 $273,980
84,872 89,116 76,385 31,827 $282,199
87,418 91,789 78,676 32,782 $290,665
90,041 94,543 81,037 33,765 $299,385
180,000 30,000 221,970 14,400 84,000 24,000 102,880 12,000
185,400 30,900 228,629 14,832 86,520 24,720 105,966 12,360
190,962 31,827 235,488 15,277 89,116 25,462 123,998 12,731
196,691 32,782 242,553 15,735 91,789 26,225 157,440 13,113
202,592 33,765 249,829 16,207 94,543 27,012 162,163 13,506
$669,250
$689,328
$724,860
$776,328
$799,618
270,000 0 0 $270,000
278,100 0 0 $278,100
286,443 0 0 $286,443
295,036 0 0 $295,036
303,887 0 0 $303,887
$1,205,250
$1,241,408
$1,293,502
$1,362,030
$1,402,890
$19,845 0 12,067 2,333 $5,445
$403,881 0 13,164 117,215 $273,502
$1,581,287 0 13,164 470,437 $1,097,686
$2,396,088 0 13,164 714,877 $1,668,047
$3,951,203 0 13,164 1,181,412 $2,756,627
0%
9%
21%
24%
30%
Sales and Marketing Expenses Sales and Marketing Payroll Advertising/Promotion Auto Travel Total Sales and Marketing Expenses General and Administrative Expenses General and Administrative Payroll Subcontractors Rent Office Expenses Supplies (Medical & Business) Utilities Payroll Taxes, Insurance, Benefits Other Operating Expenses Total General and Administrative Expenses Other Expenses: Executives Payroll Audit Fees Consultancy Fee (Accounting, Tax etc.) Total Other Expenses Total Operating Expenses EBITDA Interest Expense Depreciation Taxes Incurred Net Earnings Net Margin
13
Appendix The following information is presented in this plan to illustrate financial details, projections, general assumptions, and expected results. As in any business plan, success is solely dependent on the business execution and the circumstances that surround its operations. The objective of these projections is therefore to aid the entrepreneur on understanding the business model, along with the feasibility of such business development in current market conditions and with the underlying assumptions considered only as part of this study.
Table 1: Sales Forecast Sales Forecast Unit Sales Aminopeptide (therapy & product) Integrative cancer care program Stem cell therapy program Autoimmune & lyme programs Bodywork & IV therapies
Total Units Aminopeptide (therapy & product) Integrative cancer care program Stem cell therapy program Autoimmune & lyme programs Bodywork & IV therapies
Total Sales
1Q 60 3 4 15 213 295
2Q 60 3 7 15 222 307
3Q 60 4 10 15 237 326
4Q 60 5 13 15 255 348
225,000 225,000 225,000 225,000 60,000 60,000 80,000 100,000 74,000 129,500 185,000 240,500 102,000 102,000 102,000 102,000 27,690 28,860 30,810 33,150 $488,690 $545,360 $622,810 $700,650
Direct Unit Costs Aminopeptide (therapy & product) Integrative cancer care program Stem cell therapy program Autoimmune & lyme programs Bodywork & IV therapies
Subtotal Direct Cost of Sales
2015
2016
2017
2018
2019
240 24 60 60 1,044 1,428
384 38 96 96 1,670 2,284
499 49 125 125 2,171 2,969
649 64 163 163 2,822 3,861
900,000 231,780 231,780 231,780 231,780 927,120 1,527,936 2,044,902 300,000 123,600 123,600 123,600 123,600 494,400 806,284 1,070,895 629,000 285,825 285,825 285,825 285,825 1,143,300 1,884,192 2,527,000 408,000 105,060 105,060 105,060 105,060 420,240 692,544 928,750 120,510 34,974 34,974 34,974 34,974 139,896 230,460 308,282 $2,357,510 $781,239 $781,239 $781,239 $781,239 $3,124,956 $5,141,416 $6,879,829
2,739,429 1,440,704 3,393,986 1,247,439 412,012 $9,233,570
240 15 34 60 927 1,276
1Q 60 6 15 15 261 357
2Q 60 6 15 15 261 357
3Q 60 6 15 15 261 357
4Q 60 6 15 15 261 357
2015 27,000 16,500 38,400 18,750 9,585 110,235
27,000 16,500 67,200 18,750 9,990 139,440
27,000 22,000 96,000 18,750 10,665 174,415
27,000 27,500 124,800 18,750 11,475 209,525
108,000 82,500 326,400 75,000 41,715 633,615
27,840 33,990 148,320 19,320 12,006 241,476
27,840 33,990 148,320 19,320 12,006 241,476
27,840 33,990 148,320 19,320 12,006 241,476
27,840 33,990 148,320 19,320 12,006 241,476
33% 2016
65% 2017
34% 2018
34% 2019
111,360 135,960 593,280 77,280 48,024 965,904
183,552 221,730 977,760 127,392 78,490 1,588,924
245,508 294,490 1,311,375 170,875 104,208 2,126,456
329,043 396,160 1,761,378 229,504 138,278 2,854,363
14
Table 3: Wages by Quarter Expected Wages Employee Names/Titles
1Q
2Q
3Q
4Q
2015
1Q
2Q
3Q
4Q
2016
2017
$124,700 37,500 35,000 16,750 16,250 19,200 0
$124,700 37,500 35,000 16,750 16,250 19,200 0
$124,700 37,500 35,000 16,750 16,250 19,200 0
$124,700 37,500 35,000 16,750 16,250 19,200 0
$498,800 150,000 140,000 67,000 65,000 76,800 0
$128,441 38,625 36,050 17,253 16,738 19,776 0
$128,441 38,625 36,050 17,253 16,738 19,776 0
$128,441 38,625 36,050 17,253 16,738 19,776 0
$128,441 38,625 36,050 17,253 16,738 19,776 0
$513,764 154,500 144,200 69,010 66,950 79,104 0
$677,703 159,135 297,052 71,080 68,959 81,477 0
Sales and Marketing Katherine McDevitt (PR Manager) Other
$20,000 20,000 0
$20,000 20,000 0
$20,000 20,000 0
$20,000 20,000 0
$80,000 80,000 0
$20,600 20,600 0
$20,600 20,600 0
$20,600 20,600 0
$20,600 20,600 0
$82,400 82,400 0
$84,872 84,872 0
$87,418 87,418 0
$90,041 90,041 0
General and Administrative Stephen Cox (Office Manager) Assistants Other
$45,000 25,000 20,000 0
$45,000 25,000 20,000 0
$45,000 25,000 20,000 0
$45,000 25,000 20,000 0
$180,000 100,000 80,000 0
$46,350 25,750 20,600 0
$46,350 25,750 20,600 0
$46,350 25,750 20,600 0
$46,350 25,750 20,600 0
$185,400 103,000 82,400 0
$190,962 106,090 84,872 0
$196,691 109,273 87,418 0
$202,592 112,551 90,041 0
Executives Daniel Beyer (C.E.O.) Gina White (C.O.O.)
$67,500 37,500 30,000
$67,500 37,500 30,000
$67,500 37,500 30,000
$67,500 37,500 30,000
$270,000 150,000 120,000
$69,525 38,625 30,900
$69,525 38,625 30,900
$69,525 38,625 30,900
$69,525 38,625 30,900
$278,100 154,500 123,600
$286,443 159,135 127,308
$295,036 163,909 131,127
$303,887 168,826 135,061
$257,200
$257,200
$257,200
$257,200 $1,028,800
$264,916
$264,916
$264,916
11.0
11.0
11.0
11.0
11.0
11.0
Medical Team Philip Battiade (Managing Director) Naturopathic Doctor Medical Doctor Nurse Tara Havens (R&D and Lab Director) Other
Total Wages Total Staff
11.0
11.0
2018
2019
$995,256 $1,025,113 163,909 168,826 458,945 472,714 146,425 150,818 142,055 146,316 83,921 86,439 0 0
$264,916 $1,059,664 $1,239,980 $1,574,401 $1,621,633 11.0
11.0
12.0
15.0
15.0
15
Table 6: Quarterly Balance Sheet Pro Forma Balance Sheet 1Q
2Q
3Q
4Q
2015
1Q
2Q
3Q
4Q
2016
2017
2018
2019
1,562,591 440,993 7,049 -1,053,100
1,533,053 450,438 7,049 -1,053,100
1,535,796 470,078 7,049 -1,053,100
1,588,935 479,718 7,049 -1,053,100
1,588,935 479,718 7,049 -1,053,100
1,686,104 483,519 7,049 -1,053,100
1,787,074 483,519 7,049 -1,053,100
1,888,044 483,519 7,049 -1,053,100
1,871,799 483,519 7,049 -1,053,100
1,871,799 483,519 7,049 -1,053,100
2,768,423 697,745 7,049 -1,053,100
4,162,974 984,405 7,049 -1,053,100
6,548,034 1,369,137 7,049 -1,053,100
Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets
Total Current Assets
957,532
937,440
959,822
1,022,601
1,022,601
1,123,571
1,224,542
1,325,512
1,309,267
1,309,267
2,420,117
4,101,327
6,871,119
Long-term Assets Long-term Assets Accumulated Depreciation
219,386 2,194
219,386 5,485
219,386 8,776
219,386 12,067
219,386 12,067
219,386 15,358
219,386 18,649
219,386 21,940
219,386 25,231
219,386 25,231
219,386 38,395
219,386 51,559
219,386 64,723
Total Long-term Assets
217,192
213,901
210,610
207,319
207,319
204,028
200,737
197,446
194,155
194,155
180,991
167,827
154,663
$1,174,724
$1,151,340
$1,170,432
$1,229,920
$1,229,920
$1,327,599
$1,425,278
$1,522,957
$1,503,422
$1,503,422
$2,601,107
$4,269,154
$7,025,781
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
302,207 -87,579 20,489
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
Total Assets Liabilities and Equity Current Liabilities Accounts Payable Current Borrowing Other Liabilities
Total Current Liabilities Long Term Liabilities
Total Long Term Liabilities
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Liabilities
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
235,118
Equity Paid-in Capital Retained Earnings
1,561,838 -622,232
1,561,838 -645,615
1,561,838 -626,524
1,561,838 -567,036
1,561,838 -567,036
1,561,838 -469,357
1,561,838 -371,678
1,561,838 -273,998
1,561,838 -293,534
1,561,838 -293,534
1,561,838 804,152
1,561,838 2,472,198
1,561,838 5,228,826
Total Equity
939,606
916,223
935,314
994,802
994,802
1,092,481
1,190,161
1,287,840
1,268,304
1,268,304
2,365,990
4,034,036
6,790,664
$1,174,724
$1,151,340
$1,170,432
$1,229,920
$1,229,920
$1,327,599
$1,425,278
$1,522,957
$1,503,422
$1,503,422
$2,601,107
$4,269,154
$7,025,781
$939,606
$916,223
$935,314
$994,802
$994,802
$1,092,481
$1,190,161
$1,287,840
$1,268,304
$1,268,304
$2,365,990
$4,034,036
$6,790,664
Total Liabilities and Equity Net Worth
16