Video Transcription
Rodney Schutt 00:02
Good morning. I'm Rodney Schutt, CEO of Orion Innovations. Orion Innovations is a healthcare company with a pilot-launched, revenue-generating portfolio of smart, simple, very low-regulatory, disposable, patented solutions. We're based in St. George, Utah. Arguably, we're being told it's the fastest-growing community in the United States. A lot of people still haven't heard about it. We're about an hour and a half north of Las Vegas, which most people do know. Orion has multiple high-growth solutions. We follow the ICE model. We're very intent. We're Covey fans. We start with the end in mind, or we work backwards. We incubate, commercialize, and exit. Don't let exit lead you to believe that we're in a big rush to do something to move our portfolio of products. Exit could be white label, private label, a host of different ways that we look at exit. You know, my job as a CEO is to grow very high-margin businesses that are attractive in a number of different ways. Since our soft launch in 2022, we've done about $600,000 in revenue. We have two products that are selling globally, small, but we planted our flags in first-world healthcare to demonstrate that if we can go there, we can probably go anywhere. Med ID is a patient safety clinician safety device. We eliminate drug-to-drug interactions in the IV called adverse drug events, worse, wrongful death. No gag in the oral healthcare solves and eliminates the gag reflex issue. Our branding and launch vertical is in dental; the future is somewhere different. I'm here raising our Series A growth round for $15 million plus. We have a very experienced team, almost 80 years in healthcare. We have worked in Fortune 500, medium-sized companies, and small companies. We have expertise in medical device imaging, ortho SaaS, artificial intelligence, disposables, consumables, direct to consumer, both publicly traded and privately held companies. We have done a little over 10 startups between the three of us, and we have approximately 10 exits between the three of us. Let's jump into the problem in the two products. On the acute healthcare side, it's Med ID, and we're fighting to solve infusion confusion, a technical term, real clinical term, the problem. Imagine yourself as the patient, someone you love, a friend; you find yourself or them in the ICU. What you're going to find is you have, on average, eight infusion lines going into your body. Sometimes it's 10, 12, 14, and as many as 18. The error rates are ridiculous. If the way we traveled across this globe was anywhere near this, we would not be getting on a plane to go home. 56% adverse drug event errors. 26% of those are life-threatening. The Kane Gill study says every infusion line you add to your body beyond the first one introduces an aggregate 3% error rate. Your heart goes out to the clinician, right, the nurse. You think about their managing your length of stay with 12 lines in you; they have over a 30% chance of making a mistake. Hospital economics are straightforward; whether it's litigation or settlement, it ranges from the hundreds of thousands to the hundreds of millions. From an operating budget, it's straight math: per 100 beds, it's about an operating expense of about $450,000 a year that Med ID will save. The globe has experienced, post-pandemic and during the pandemic, about 20% of the nursing workforce has left practicing. Competitors, decades old. This is what the typical ICU critical care department looks like. What is the solution to identify infusion lines? It's tape and labels, and they don't work, and those rates are getting worse. The solution is Med ID: three disposable, permanently attached, wirelessly connected lights and the family of 328-bit encryption. Of all those lines, 8, 10, 12, there's only one that is called the Safe Line, the carrier line, the keep vein open line. Nine. Which one is that? It's the one flowing saline, right? So our three lights are attached to that one line. That's the only line, if you're a clinician, if you're that ICU nurse that has to come in every two hours, generally, with a bolus drug that you're going to push into the patient, above all those other lethal drugs hanging from the IV pole, going through the infusion pump, you have to find that line, and sometimes you have to find it fast. Like I said, very low to no regulatory in the US. We're a Class I, 510(k) exempt, and the rest of the world we're seen as a piece of technology. What takes a nurse safely to trace this line through his or her hands, which takes two to three minutes, with Med ID, it takes 10 seconds or less. Part of our clinical team and advisors, I said, "How much time do I have to save you with this device?" They said, "If you can save us three seconds, you might save someone's life." We save, on average, two to three minutes. So this in a dark room, delirium setting, most ICUs and critical cares are always dimly lit, if not dark. Here's what you compare to tape and labels, or you walk in, you push any one of these soft buttons. All three of these light simultaneously, 100% accuracy, finding that port, pushing that drug, potentially saving the patient's life. In summary, soft launch Q2 22, we have eight granted utility patents that cover our Gen 2 and Gen 3 prototypes, which incorporate IoT, machine learning, and artificial intelligence into our lights. We communicate with all the big players in infusion pumps both directions, interoperability, and the data feeds the EMR, 51% gross margins, soft launched in the US, the EU, and the Middle East. Market trials are going now in Japan, a tier-one University Health System, multi-hospital system here in the US did our clinical study against tape and labels, 24% faster, zero errors at nighttime, 40% less task loading on the nurses. That's the NASA task loading scale; the rocket company, they submitted it to the premier peer-reviewed journal. We've been accepted and approved. You should see this publication before the year is out. Moving over to the dental major problem globally, it's a clinical and technical term, gagging. About 10% of the world population gags profusely anytime there's something in the back of their mouth. You think about dental bite wings, X-rays, deep cleaning. Some people can't brush the back of their mouth because they gag. Denied procedures, delayed appointments, frustration; the economics are pretty straightforward. Gaggers cost per patient: $24,000 in the office, $2.8 million office impact over time, lost procedures, scheduled overruns, bad referrals, unhappy staff, and customers. Simply, our patented precision blend of non-ionized ice, salt, and citric acid placed on the tongue dissolves in 10 seconds, swallow, removes the gag reflex for a minimum of an hour. FDA 182, it's a GRAS product, generally recognized as safe. Massive global expansion, over 3,000 dental offices in the US. We launched soft-launched in the EU in Q2, nine stocking distributors, 15 countries covered. We add one every week. So rapid expansion. Summary: five granted utility patents. Who thought you could get patents on blocking gagging?
Rodney Schutt 09:13
The future of this, as we knew upfront, wouldn't be dental; it would be pharmacy, OTC, and DTC, and that's where we push into next. Simply a $300 billion global TAM, huge SAMs and SOMs, five-year projections. Year one is post-close of our Series A call that 2025 a layup in 2025 revenue. We scale that rapidly because we have a de-risked business model. All our channel partners are in place, about 70% gross margins. Our OpEx flattens out because we are not a heavy FTE business model. We start printing cash, real, simply use of funds. We're revenue-generating in oral care, acute care, private. We have government tracks; we've raised $11 million to date. We have 3FTEs in the company, three, three and a half million already raised in this Series A. Obviously, the use of funds is to accelerate revenue production, smart scale, a direct sales force, expand IP, launch second, third-generation products. Expand the verticals. What strategics are already talking to us? Med ID, BD, ICU, medical B. Braun, Baxter, etc. No gag. Henry Schein, Medicom, all current dental partners. In closing, we have sold over 75,000 of these sticks already, this powder. We have sold over 13,000 Med ID. We are not a concept. We are not an idea. We are not getting funding to build a prototype or get FDA approval. We are a de-risked business model ready to scale. Appreciate your support. Thank you for your time.
