Michael Gardner Presents NSite Medical at LSI USA '24

Michael Gardner  0:02  
Thank you. Mike Gardner, co founder and CEO of NSite Medical. And we're building the national scoliosis clinic to reinvent scoliosis care using AI. So Evelyn is like so many people with a similar story who's a patient of ours. She had mild scoliosis when she was a kid. And she was told it would never be a problem. Don't worry about it. She actually forgot about then into her early adulthood, she started getting some intermittent back pain. Her primary care doctor didn't have an explanation. But because back pain is so common, was told to go away and things would be fine. So over the next few years, her back pain got worse. And though so she finally gets an x ray by her doctor, and now she's got a structural diagnosis for her back pain that went unnoticed for years. So she gets her the boiler plate treatment package from the mainstream medical system, which includes standard physical therapy, anti inflammatories, pain medication, steroid injections. And she tries this for about a year and none of this works. So now her doctor tells her to go see a surgeon, and she's completely freaked out, has no more hobbies and is unable to really live her life anymore. So interestingly, Evelyn is like one of 76% of scoliosis patients who tell us that the healthcare system has failed them and has abandoned them. And the main problem is the treatments that she's had, like everybody gets, they don't work. And this is one of a dozen studies that have rigorously looked at these standard treatments that show absolutely no benefit for scoliosis related pain. So interestingly, this meta analysis here demonstrated that 38% of adults, over 40 years old, have scoliosis. So that equates to 65 million adults. Now, they don't all know it, and they're not all symptomatic from it. But about 51% or so 33 million adults have symptomatic scoliosis or curvature of the spine. So at the National scoliosis clinic, we develop the scoliosis solution to address this problem. So this is a monthly membership, a program that consists of multiple components. The first component is our core technology. So this is an AI enabled 3d scanning software that runs on a mobile device in the form of an app recently FDA cleared that allows a scan to be taken of the patient's back both bending and standing, that very accurately, assesses the patient's anatomy quantifies the scoliosis, so it can be used for a diagnosis without an x ray. It can be used to track progress or changes of the structure of the spine, which can occur over time. And then third, we use this scan to personalize a virtual scoliosis specific exercise program. So we've partnered with the largest and most prestigious scoliosis specific exercise school in the country, to help us deliver and develop this virtual on demand content. And so and this is, this is a proven modality that works for the first time it's being it's being customized by the 3d scan, and delivered virtually to improve access. And this works so our first 176 patients have reported over 40% decrease in pain during the first three months of the program. The third component of the scoliosis solution is community building and a patient centric approach to delivering all aspects of what the scoliosis patients need who have been essentially marginalized by the mainstream healthcare system. We provide education, brace, application, nutritional support, cognitive behavioral therapy virtually, that's effective for those with chronic pain. So we're starting from a go to market perspective by acquiring patients directly. For the purpose of demonstrating the market need, we talk to our customers every day to improve the user experience. And we're also starting down some some b2b pathways and partnerships as well. By doing by starting here, we're gathering a lot of data. We're improving the algorithm improving the product. And we're now beginning to acquire real world evidence on both functional outcomes and healthcare cost utilization with a plan to bring this data to payers by early next year to obtain benefit coverage. So we launched about five months ago, we've had a rapid enquete increase in customer acquisition, and a rapid decrease in customer acquisition cost. Our churn is right now at about 11%. And in parallel our MRR has risen quickly as well. On the mobile scanning side, we've run a number of trials. Most recently, our FDA trial run out of Stanford and Duke essentially showing that the software is extremely accurate to determining the details and the severity of the scoliosis. We've got some really exciting partnerships in development some in earlier discussion some in later discussions. And this is a huge market, just the sheer number of adults who are improperly and effectively treated. To healthcare system spends $800 per month for ineffective treatment for the scoliosis patients. So we're going to demonstrate that we're will decrease that spend to 10% of the baseline these patients don't need any more standard physical therapy. They don't go to the ER for flare up back pain. They don't need steroid injections. And this is kind of a tam perspective. So on an obtainable market, if just three of every 100 adults with symptomatic scoliosis signs up for the National scoliosis clinic, we reach a billion dollars in revenue. Our team has deep business and clinical experience myself and Malcolm Tobon are the two orthopedic surgeon co founders. Cave on Sabir Stanford GSB, alum, former CEO of a digital health company, go check kids, or had a product came to us from Amazon, cetera. So a brief timeline we launched at the end of 2023 through 2024. We're planning to scale our D to C membership continuing to iterate on the product, and gather data. We're planning there are codes that are available to bill for these services. And we're going to stand up and operationalize those later this year, and planning to integrate in our first integrated delivery network planning to be Kaiser 2025. We plan to obtain coverage from the first first coverage from a national payer and then 2026. As our ARR grows, and the scoliosis program is up and running. There are some extremely interesting other verticals for MSK uses of this scanning technology. We recently published a pilot study out of Stanford looking at the diagnosis of osteoporosis, to essentially eliminate a DEXA scan from home to estimate the bone mineral density. So really excited for other verticals down the line. We're focusing currently on the scoliosis solution right now. So right now we're raising a $1.2 million dollar financing. This gets us through 2024 with specific milestones of 10k and MRR 500 customers and an LTV to CAC ratio of greater than three, as well as at least one channel partnership. During this time, we'll be continuing to improve the product, adding features, collecting data and continuing with our payer benefit discussions ahead of a Series A later 2024. So we're reinventing scoliosis care as we speak, why invest today, the system is clearly broken, there is no patient, provider or health care system that would argue that and there's a huge opportunity to reinvent this as a first mover in this in this space, we've got an innovative product that fills a clear market need and that our customers love to this point. We've got a passionate team that's laser focused on solving this problem. And we've significantly de risked many aspects of this company including the team, the technical, the regulatory hurdle. We built a product and launched it successfully. And that's it. Thank you