excutive sum 8 pps

Have you ever wondered just how long

you will live?

The answer can be found in one drop of your blood.

Introducing BioSpan. Intelligent life management.

Executive Synopsis

There is a problem in financial markets that is potentially bigger than the housing bust, student loan debt and derivatives, combined: Longevity risk. BioSpan was conceived to mitigate that risk before it develops into the next international crisis.

BioSpan is a blood test that will be developed from paradigm-shattering research proposed by Life Metrics, LLC. The research team is headed by globally-recognized epidemiologist Dr. Albert Hofman from the Erasmus Clinic in the Netherlands, using clinical records and blood samples from the world’s pre-eminent cohort study of degenerative diseases in the elderly—the Rotterdam Study—and the protein analyses of the samples are being done by a U.S. company that leads the world in large-scale protein identification using minimal sera quantities (±60 μl).

The proposed research is large-scale, predictively valid and the sera content consistency will render findings statistically conclusive and reproducible. As such, this research into the lifespan predictive value of proteins is not just the first serious piece of work done in this area, it is one of the boldest studies ever undertaken in the field of proteomics.

The application of the research findings will be aimed at addressing longevity risk markets: financial, insurance and pension planning. There is already a (confusing) glut of “one off” predictive studies aimed at specific individual diseases and designed for use in diagnostic markets. The objective of Life Metric’s research is to discover an “all cause” mortality signature in an individual’s blood proteins that will, in conjunction with other biometric and demographic data, yield an individual estimate of lifespan expressed in number of months remaining.

Financial markets present no FDA hurdles for the company to overcome as long as the blood test is used to make a longevity prediction, and as long as the person being tested is not given any clinical diagnosis regarding specific underlying diseases.

The only lifespan estimator currently available to insurance adjusters, annuity brokers, pension plan sponsors, financial planners and individuals is to rely upon population actuarial tables and/or make a “blind” guess based on a review of family or clinical histories.

Actuarial tables are based on population averages, not individuals. An individual might have an average lifespan of 74.9 years at birth according to the actuarial tables. In reality that only means that half of all similar individuals will die before age 74.9, and half will die after 74.9 years of age. The bell curve that represents this individual’s cohort may begin at age 10 and end at age 120, with individuals dying all along the curve. Granted, there is a bulge in the middle of the curve—usually

Life Metrics, LLC Class B Summary Page 1

representing about 20 years of life—but there is no way to determine where an individual may be on the overall curve, much less in the “bunch” spanning the 20 most-likely years of mortality.

Not only is Life Metrics’ research the only advance in longevity prediction in decades, it is a paradigm-shifting, giant leap forward.

The Company expects that life insurance and annuity products will be redesigned to reflect new certainties in individual’s lifespans. Individuals will be able to make more intelligent life choices—especially those that involve financial matters like when to start taking Social Security payouts. Pension sponsors can make more intelligent decisions regarding long-term benefit programs, and long-term care underwriters will be able to bring new, sustainable products to an industry that has been ravaged by longevity miscalculations.

In short, Life Metrics new BioSpan blood test will make it possible in the future for hundreds of billions of dollars of financial decisions to be made based on each individual’s biometric profile—rather than making all individuals conform to population averages.

The Protein Assay Technology

SomaLogic, our protein assay partner, was founded by Dr. Larry Gold fifteen years ago. They are the only assay company in the world capable of measuring 1,129 proteins in a single test using just 60 microliters (μl) of blood. A microliter is about one drop of sera. Other companies measure one, two, a couple of dozen or even a few hundred in single tests, but only SomaLogic can scan so many proteins using so little sera. This last distinction is critical because only 120 μl were available to Life Metrics from the Rotterdam Study blood reserves. Most other tests require hundreds or thousands of microliters per test. SomaLogic offered the Company the optimum solution for its research: the most number of proteins evaluated using the least amount of sera.

The Markets

There will be applications for the BioSpan blood test in all financial markets over time. The Company plans to pick the “low-hanging” fruit, illustrated in the market projections in the chart below.

At Year 10 (7.5 years of operations) Market/Industry Application Market Share Annual Revenue ($Millions)

Senior Life Settlements Life Expectancy Reports 35% 31,800,000 Life Insurance $1MM+ policies 15% 23,000,000 Annuities Impaired underwriting 15% 53,600,000 Financial Planners Client support 20% 236,800,000

Direct-to-Consumer Social Security decision-making support 1.5% (avg) 295,200,000

Long-term Care Insurance policies 25% 60,700,000 TOTAL $701,100,000

Figure 1.


The Research Team

The staff at the Erasmus Clinic’s Department of Epidemiology are recognized worldwide as leading experts in the field of etiological research of common diseases and mortality in the elderly. The team is led by Dr. Albert Hofman, who is among the top 1% of most-cited scientists in both clinical medicine and molecular biology & genetics (Thompson Reuters, 2014). In 2011, Hofman was ranked as the 7th most influential scientist in the world. Researchers in Hofman’s Department of Epidemiology have devoted decades of research to unravelling the processes behind the development of common diseases related to aging; the results of these efforts are evident from the over 1,000 scientific publications in the world’s leading journals including Nature, New England Journal of Medicine and JAMA. In recent years, their efforts have been further strengthened by the development of advanced “-omics” technologies. Genomics has succeeded in identifying thousands of genes related to disease. Transcriptomics, epigenomics and metabolomics have begun to shed light on biological pathways involved in total longevity. Proteomics has so far been the missing piece of the puzzle (due to methodology challenges in accurately determining protein levels in blood).

“We believe that your proposed research will successfully identify and map blood biomarker profiles that reliably predict mortality.” ― Dr. Albert Hofman, MD, PhD, Erasmus Clinic

The Research Design

The quest for a protein-based longevity signature began by turning the current research model upside down: The biological patterns of a large group would be allowed to speak for themselves rather than testing “guesses” in small environments and then “trying them out” in larger and larger circles (a la clinical trials). To accomplish this, the research design required a cohort of individuals 55-years old and older who had been studied—with all clinical records and sera collected—for a period of decades. There is only

one such cohort study in the world: The Rotterdam Study. After a year of negotiations, the Company has arrived at an agreement to use both the sera and the clinical records from this 24-year study in Life Metrics’ research program. The research is designed to uncover the longevity signature from the cohort’s biometric facts, and then aggregate individual proteomic and clinical data with other proven biomarkers and known actuarial (demographic) data into a revolutionary new algorithm to predict longevity.

Dr. Albert Hofman, M.D, PhD


Next Steps

As of December 1, 2016, over $800,000 has been invested by the Founders to attract world-class research partners, negotiate the terms of the proteomic data usage, design the research, identify and vet the assay vendor and put a pricing agreement in place—all described in the Seed Offering Memorandum. The Company anticipates offering Class B units of its equity to raise approximately $40 million to fund the research, transfer technology, file patents and launch the Company. The Class B offering is expected to be handled by an investment bank following the successful completion of the Company's $2 million seed round offering of Class A units.

The Bottom Line

For the first time ever, trillions of dollars of longevity-based markets will have an accurate and intelligent answer to an age-old question: How much longer will I live? The financial, social and personal ramifications are staggering.

Pro Forma ROI and Exit Strategies

Following the successful close of the $40 million Class B offering, the research will be conducted which is expected to result in a product being called BioSpan. BioSpan is a blood test that accurately determines the number of months of remaining lifespan of an individual 55 years of age or older. BioSpan is a proprietary, patentable longevity estimator. Using just one drop of blood, this test evaluates the blood’s protein “signature” that is unique to each individual.


Research Design & Timetable

Blood samples gathered from 9,807 individuals (part of the Rotterdam Study--the world's largest and most-cited cohort study of diseases of the elderly), aged 45 years old and over, will be sent toSomaLogic, Inc. to measure over 1,129 protein targets critical to normal and disease biology. At the heart of SomaLogic's unique proteomic assay platform are SOMAmerTM (Slow Off-rate Modified Aptamer) protein-binding reagents, each of which are highly specific for their respective cognate protein8. The research will require the efforts of 10 scientists, one research assistant, one project manager and one medical informatics professional.

Use of Research Round (Class B) Proceeds

30-MONTH RESEARCH & PRE-LAUNCH MARKETING BUDGET [$ 000,000] $ 6.43 12.21

2.95 1.85 1.91 4.00 1.90 6.84

Blood Databank [The Rotterdam Study] Blood Assays [SomaLogic] Algorithm Development [The Erasmus Clinic] V.A.T. (European tax) Patent, Legal & Technology Transfer Brokerage Limited Founder's Units Buy-Back G&A Contingency 1.91

TOTAL $ 40.00

Markets

As illustrated (in Figure 1, above), marketing efforts are focused on financial markets. While there may be substantial BioSpan applications in healthcare, obtaining FDA approvals is a long and costly process. Financial markets do not have these barriers and can be entered immediately upon the completion of the research. Dollars will be concentrated first on those markets that are the most advantageous in terms of speed of entry, revenue potential and marketing cost per dollar of projected revenue.

The Company projects $392 million revenue in the fifth year of commercial operation (following the close of the research phase, as illustrated in Figure 2, below), with a net operating income of $85 million (22% of gross sales).

In addition to the opportunities for BioSpan in financial markets, future plans of the Company call for it to aggregate its own portfolio of senior life settlement assets. This may be done exclusively by the Company, or in partnership with an existing SLS aggregator or in conjunction with a large insurance/annuity carrier. If this project is consummated, the Company projects a 15-year profit of nearly $100 million.

Investor Return & Exit

The Company estimates that Class B units will be offered at about $2.00 per unit. Class A units are being offered at $0.20 per unit. The chart below illustrates a scenario in which the Company’s management distributes net earnings to all equity classes during each of the first five years of commercial operations. Note that the chart assumes that sales and earnings conform to the Company’s projections, that both the A and the B rounds are fully-subscribed at the projected prices, and that no other units are issued other than those illustrated in the December, 2016 Class A Terms published by the Company. These estimates would result in a total of 42 million units outstanding. The value of any losses distributed to the investors was included in the performance estimates at 40 cents per each dollar of loss.


The return on investment for the Class A investors is estimated to be 45% per year over a nine-year period (including the capitalization phase), and for the Class B investors ROI is estimated at 12% per year over a seven-year period. If the Company is valued at three times sales at the end of the fifth year, each unit would have an imputed value of $27.92.

Gross Revenue Net Earnings Per/Unit Year One 9.33 (4.74) ($0.11) Year Two 36.77 (11.64) ($0.28) Year Three 249.86 37.78 $0.90 Year Four 316.98 34.41 $0.82 Year Five 391.75 84.88 $2.02

TOTALS 1,004.69 157.07* $3.35* Figure 2.

Gross Revenue & Net Earnings in millions of dollars; Per/Unit are whole dollar amounts *Losses are distributed exclusively to investors, but no value has been estimated; earnings

distributions, if any, are made on a pari passu basis to all equity classes

It should also be noted that the BioSpan algorithm, once patented, is a saleable commodity in and of itself even if commercial sales should not materialize. The Company has not secured an independent estimate of BioSpan’s value as a saleable asset, nor does the Company have any current offers to buy the proposed algorithm. That said, it is management’s opinion that if the algorithm were to be offered for sale, it would have a value of three times the raw cost of the research, or approximately $75 million.

While Life Metrics does not currently have any offer to purchase the BioSpan algorithm, nor does it have any offer to purchase the company entirely, nor does it have any plans in place to conduct a public offering of its equity, these options—among others—will be considered in the future as exit strategies for its investors.

Contact

Mr. John Holland, CEO LIFE METRICS, LLC 5635 East Lincoln Drive, No. 33 Paradise Valley, AZ 85253 480.283.3863 [email protected] Biomarkers for Business


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