Kenneth Paulus Presents REACT Holdings at LSI USA '23

Transcription

Kenneth Paulus  0:05  

Thank you. Good afternoon, everybody. You're doing good. All right. I know it's the lunch coma. Right? My name is Ken Paulus. I'm the founder of React Holdings. I want to talk a little bit about React and pelvic wave is we redefine rehabilitation. So, healthcare in general, as we all know, there's issues, right? We're all trying to fix these issues and specific markets that we work in, in physical therapy, for example, is a bit of an existential crisis. So the World Health Organization says we've got 10 million shortage of healthcare workers going on by 2030 $7 billion spent on neuromuscular blockade drugs. In a global population that's gonna exceed 1 billion over the age of 65. In the United States, we're looking at 200,000 nurses required to just fill the gaps today will be 120,000, doctors short by 2030. And we're going to have 30,000 Physical Therapists short by 2030. To give you some perspective on that 30,000 pt short means 10 million people are not going to have physical therapy treatments, and that's going to translate to over 100 million physical therapy treatments that cannot be performed as a result of the of the shortage. We've got surveys going out there talking about 75% of the workforce in healthcare is right now thinking about retiring and leaving the workforce. We see this in PT today, three to 4%. Right now, today and PT folks who have dedicated their lives within this particular space are leaving, and they're leaving because they're burnt out. You've got a sector in PT that has a 35% reduction in payments right now. So think about this problem, you've got a growing number of people that need PT, you've got less people in the field to cover that. And the folks graduating to be PTS have to be PhDs, so they expect to be paid more money. drugs and surgery are not the answer for everything. We know PT can be a great cost effective way to get people healthy. So our technology is a proven neuromuscular therapy, that reestablishes connectivity between the brain and muscles, we do this using a high powered by electric magnet that stimulates muscle tissue, four inches in depth without skin contact. So what it does is it addresses the root cause of a lot of the physical therapy ailments that people are dealing with. We've got over 60 publications that back the science, and two issued 510 Ks, one for our React table and the other for our pelvic wave chair. So these are our products, you can see here, the pelvic wave tail, the pelvic wave chair, to table and a chair, the chair that you sit on, we've cured over 5000 people have urinary incontinence over the last four years, and just over 15 clinics. REACT table has treated over a million patients in that same period of time, we're working on things such as musculoskeletal issues, such as knee replacement, two and a half months ahead of schedule, low back pain, shoulder reconstruction, or shoulder reconstruction data is actually quite interesting. So for example, a single eight minute treatment on React table will increase your forward flexion, inside abduction by an average about 48 degrees. That's the equivalency of five weeks of PT. So right now, a CPT code that pays about $35 for that eight minutes, is translating to a $1,500 savings for payers, if you're looking at it from a straight outcomes perspective. As a company, we've generated over $2 million in revenue, we've got about 50 clinics in 14 states using the technology. So again, this is how it works, I don't think our video is going to play but you can see some of the images here. So basically, that pulse goes into the muscle tissue, there's the depolarization of the potassium and sodium ions within that cell itself. The motor cortex fires down in contracts. The cool part is we actually have a demo table here. So if you haven't been in the innovation pavilion, yet, you wanted to come check it out. We've been doing lots of treatments on folks all day today. So it's been great. So our value drivers. So we're really establishing a foundation to provide maximum use for future payer movements. So if you've ever heard of MIPS, or VBC value based care is basically the future of healthcare is not transactional. It's not you working on somebody and getting paid to do that treatment, it's going to be value based care. So in other words, they're gonna say Ken's got a knee problem, Ken, we're going to the payer is going to pay $10,000, or $20,000, or $50,000, to fix Ken's knee. So the margin in which people are gonna make money on that is based on how quickly that they can get my knee resolved, and maintain that my knee is healthy, moving forward the rest of my life. And if it's not, then you as the provider on the hook, and if it exceeds that price that the payer paid, well, that's on you, that's how you lose money. So we've really focused over the last four or five years on five key value drivers, the first being higher patient satisfaction scores. If you don't know, this is quite interesting. This is actually valued higher than the outcomes, which is kind of hard to believe, but people and providers who are paying the bills want to make sure that patients are having a high quality, level of satisfaction with the treatment that's being performed. React and pelvic wave receive consistently 4.95 stars out of five stars each time measure clinical outcomes. Well, I just talked about the shoulder as an example, or total knee replacement and our ACL patients are averaging two and a half months ahead of schedule, in turn. So the recovery is particularly poignant for our athletes, right? But for regular folks as well, because time is money. So if we can reduce the cost of getting people healthier, obviously, there's more money to be had in terms of the profit and less money to be spent by the provider by the payers, we increase revenues, we do this through a series of operational efficiency, as well as the codes that which we built. So react falls under often codes that have higher reimbursement under insurance. But there's also a great cash pay model with this as well. So our clinics that have this as a cash pay premium for patients, they charge anywhere between 35 to $50, a session depending on where they're at, and they can increase their cash pay profits within the clinic itself. And then of course, increasing new patient referrals. That's really what healthcare is about, is is patient referrals, in most cases, especially in PT, and without a doubt, our technology is one of the highest referral modalities you will ever find. So here's our markets. We spent the last four years working diligently to get ourselves established within physical therapy, just 34,000 clinics, we've got athletic training, which has over 500 teams and professional collegiate athletics, chiropractic and other 34,000, clinics, hospitals, seven and a half 1000 facilities, and urology and OBGYN 12 12,000 clinics. You can see here on the total addressable market as we see it, REACT has a great applicability and uses adaptability within each of those sectors, and urology in particular, we've got a model that sets us up to do over a billion dollars in recurring revenue, leasing the equipment out within these spaces. If we're doing a billion dollars in recurring revenue, the clinics themselves are doing over four, almost $5 billion in revenue themselves. And this is particularly important because this is passive income. So the doctors themselves which again, are transactional, they get paid typically to do work one on one with patients to perform surgeries to do clinic visits, they can align their their patients up within these facilities, and simply hand them off to nurse practitioners and techs to get their therapy performed with their urinary incontinence issues. So it's a great model for them. It's a great model for us, it's great model for patients. And for the payers, this is particularly important as well. So to give you some perspective, United States spent about $9 billion last year I'm doing about 200,000 urinary Incontinence procedures are your illogical procedures. If you took that same amount of money $9 billion and applied it to pelvic wave, we would treat four and a half million people with their pelvic floor disorders. Right now, if you put 100 women who had to get a get a pelvic sling, because let's say they had a prolapse, you're gonna spend approximately, you know, $30,000 in each one of those surgeries, right? So you've got, you've got a pretty big knot to spend on that, let's say $3 million to spend on those on those patients. If you took those same patients, 100 100 women through our pelvic pay program, we've got $200,000. Right now our numbers play out, we're treating and curing about 85% of the patients that we treat, think about that number 85% out of 100. Now, if you think I'm full of crap, that's fine. You can ask our clinics and our in our providers, but one of the things about the numbers is we only have to be successful 5% of the time. So if we convert out of those 100 Women who are already prescribed to get a sling surgery, and five of those women's go go from non sling surgery to two resolved, we break even, and the other 95 women that we treated, and the payer is is is set in terms of just reducing the cost just from those five, just from those five surgeries. So our numbers and our bar to be successful in this don't have to be particularly high. But again, we make a really interesting, compelling case to make this move forward. The other really interesting thing that we found out recently about pelvic floor and specifically in doing the surgeries at a $30,000 surgery, anybody want to wager a guess on what the urologist actually gets paid to do the surgery in his own pocket. And he guesses let's let's pretend this is a game show how much $550. That's what the urologist gets paid on a $30,000 surgery. So he's not motivated to do that work that way. Right. He's motivated to bring people in on a passive income stream, through through a technology like pelvic wave to generate revenue for his practice. These are some of our sample customers. So we're working in the NFL, the NHL, the big 10. The SEC, so pretty high level sports programs, NASCAR USA Swimming, folks like Carolina urology, Mount Sinai in New York to name a few. We've got IP, our new IP and patents just got issued in 2022. We We filed 56 filed PCTs in 56 countries around the around the around the world. So we're pretty excited about that. And we're automating that process. We're an integratable platform that can go in tables and chairs, portable systems and hospital beds just the same. So it's a platform technology. That's a lot of applications where future development right now. So we've just we're about halfway through our next generation product, which is going to automate the REACT table to give you some sense of that. So we're already in production, and we're going to have that ready commercially available by April 2024. And that's our presentation. So again, to recap to prove Even FDA clearances proprietary design new IP issued through 2039. 50 clinics operating in 14 states over a million patients treated in the last four years. 5000 patients resolved urinary incontinence in the same period of time. And we're raising 12 and a half million dollars in a Series A round to build out the team, apply for new CPT codes, increase production and hopefully help a lot of people. So thank you for your time. Appreciate it.