mhealth app exec-a

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    mHealthGlobal

    C o n f i d e n t i a l Page 1

    mHealth Global Applications

    Executive Summary

    (March 16, 2012)

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    Opportunity

    Its no secret that todays advanced communication technology is a catalyst to the growing

    disappearance of human, personable interaction. In fact, some forms of communication have

    completely replaced the need for a human-to-human relationship. We see it more so than ever in the

    Healthcare industry. Doctors and their medical advice are being replaced with self-medication and self-diagnosis websites. International Pharmacies advertise on these sites, then sell untested, unregulated

    medications to these same consumers following free medical information that these very sites

    provide.

    With that, the market is beginning to realize the importance of certain human-to-human relationships

    (ie Doctor Patient) and utilize the current technology NOTas a replacement, but rather as way to

    enhance the accountability, the attention, and medicinal communication that occurs between these

    intimate parties. This communication technology would thus allow for more efficiency and more

    meaningful visits to the doctors office.

    mHealth Global has created a solution and, in this executive summary, will address the following

    questions, and provide a sound solution:

    Why is there no software platform that highlights, enhances, and re-strengthens the bond between the

    doctor and their patients?

    Why is there no trusted platform to handle (secure and track) the enormous amount of data between

    doctor and patient?

    Why is there no platform that provides enhancement/reward to the patient for following prescribed

    advice and medication instructions by their primary care physician?

    Why is the doctor being circumvented by technology and, if the tech is present, are these companies

    including the doctor in their revenue stream?

    Why is there no mobile platform/app answer to these issues for the ailing population in rural areas or

    developing countries?

    Why are there no mobile Health platform/apps with agnostic characteristics as to who the cell carrier

    and provider are?

    mHealth Concept and Description

    The design of the software platform is elementary. Our platform will be the front-end of a larger service

    offering within the cloud. The content and functionality that the platform encompasses is much more

    detailed and, as you will see, will bring value to several micro-verticals markets in the Healthcare

    space.

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    The front-end design will have the look and feel of most user-interfaces (see screen shots below &

    hyper-link) Customers identity will be protected through the use of avatars (a widely accepted form

    of online protection). With this personalized user-interface, doctor and patient will be able to converse,

    auto-SMS for medical advice reminders or prescription intake, recommend other medical applications to

    download or articles to read.

    site_profile.cfm.htm

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    The support, or Back-end, of the platform will allow Doctors to be able to track data of patients

    compliance and advice given and, provide a Gamification (Rewards) atmosphere to the patients for

    following the prescribed advice and/or medication given by their doctors. This Gamification, or

    Reward, model is a multi-billion dollar market that has captured the human conditioning application

    opportunity. Through our contracted network of APIs (see API model below), the platform can provide

    rewards for following doctors advice or prescription instructions (Rewards would include a monthly (or

    bi-monthly) $10.00 gift card to Target, itunes, Best Buy, etc.). This would serve as a motivating factor to

    adhere to medical given by their primary care physician, allow for the doctor to track and document

    when instructional notifications (take medicine, check blood sugar, etc) are being sent out, and would

    allow our mHealth to track and store all data (medications being taken, advice being given, retailers that

    customers are using) as a future IP Asset. This would also warrant consideration in the form of a

    monetary return for those patients coming out of pocket for the service.

    What will all of this do?

    1) It will allow the doctor-patient relationship to become the focus again.

    2) It will provide incentive for the patient to adhere to the advice given by the doctor and the pharmacy.

    3) It will allow the doctor to track and monitor the patients progress so face-to-face meetings are more

    meaningful and substantive.

    4) It will provide a shared revenue stream for the doctor thus incentivizing them to use and

    recommend the service.

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    5) The platform with carry agnostic qualities and will be available to every cell phone owner,

    regardless of content-carrier.

    6) Since the platform will be bi-lingual (English & Spanish), it will capture a larger audience.

    7) Additional traffic will be drive to our Urls (we own):

    - www.mHealthapps.com

    - www.mHealthgames.com

    Lastly, the mode by which auto-notifications are sent (SMS) is critical. This allows us to reach a larger

    economic demographic and, studies show that SMS communication is responded to 80% of the time

    over email correspondence (Application-to-Person (A2P) messaging showing that just revenue from

    A2P SMS alone is projected to reach more than $70B by 2016. The data also suggests that A2P

    messaging will overtake person-to-person texting by 2016 Textmarketer, Jan 2012.)In addition, EMS will

    be able to receive SMS notification when necessary.

    Software Platform will be meet HIPAA compliance.

    Mission & Vision

    Our mission is simple. Utilize the current state of technology to provide and re-establish a

    communication and security bridge between the doctor and their patients. Provide this invaluable

    service to everyone with a cell phone, regardless of language and economic barriers. Include the doctor

    in the revenue stream, provide open lines of communications and patient-data tracking, and provide a

    higher security against malpractice complaints.

    Vision: Domestically, Doctors (and Nurses) will eventually be able to fulfill the CME/CNE requirements

    through this platform. This should save time and capital coming out directly out of their pockets.

    On a larger, global scale, we see this type of platform/application being driven in developing countries.

    Governing Medical bodies using the cloud capabilities to inform, educate, and notify via SMS medical

    patients in last-mile or rural areas. Since 89% of the worlds population has a cell phone (30% in

    China), it is the most efficient way to communicate.

    In essence, this platform can provide a scalable solution in the mobile Health Platform/Application

    marketplace that will allow for a long-term, large-scale, economically viable and sustainable medical

    service, a rudimentary user interface, complete identity and content protection and privacy, and an OSthat overcomes language barriers so developing nations and their governing bodies

    (private/public/hybrid) can access, implement, manage, and educate their populous in a more efficient

    and streamlined manner.

    We will eventually have the elements necessary for the successful scale up of mHealth. This includes

    building sustainability and scale into the projects from the beginning, ensuring the solution is locally

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    appropriate, securing buy-in from key stakeholders, creating strategic partnerships, ensuring alignment

    with local and national health priorities and integrating into local healthcare structures.

    Lastly, we will have the capacity to assist governments in the creation of an enabling environment for

    scale up mHealth system, mainstreamed into existing healthcare structures, agencies, and national

    health authorities policies and priorities frameworks. We will provide data and interoperabilitystandards that are in place to ensure that health information being collected is fed back into the system

    and informs resource allocation decisions. For the global community including donors and institutional

    players, it is essential that monitoring and evaluation is planned and budgeted for within programs to

    ensure sustainability beyond a successful pilot phase. Organizations need a global network and

    repository of information that they can rely on for best practices, recommendations, frameworks for

    success, applications and an evidence base of what works and what doesnt for various contexts.

    Management Team (Brief)

    Steve Epstein -Steve Epstein is the Founder and Chief Technology Officer for mHealth Global.

    Steve has over 30 years of experience in the eCommerce/mCommerce Space. Steve will head up all

    project development and ongoing updates to the product and service MHealth offers.

    Prior to mHealth Global, Steve was a CTO consultant to Mobile TV, NFC (Near-Field Communication),

    RFID (Radio Frequency Identification) in US, Japan, Korea, and China. In 2001, He was Director of

    eCommerce for Qwest in the US-West managing 14 state intranets. In 1993, he acted as a Director of

    Risk Management (RTC Portfolio) for GE Capital. Post-graduation, Steve joined the Navy where he was

    directed to Naval Intelligence as a Cryptography Lt. at the Japanese Station.

    Steve holds a MBA in Finance from UCLA and has a degree from Columbia University in Chinese and

    Japanese

    CEO -We are discussing this potential opportunity with three different

    Doctors.

    Chris McGhay -Chris McGhay will direct Operations and Finance (initially) for mHealth

    Global. Chris has 15 years of experience in Operations and Senior Business Development positions

    within various vertical markets. Currently, Chris is the Founder and CEO of Small Axe Capital, Inc (SAC).SAC is an underwriting outlet for small to mid-cap companies needing assistance in Recapitalization,

    Structured Debt, PE, and/or Public Offerings. To date Chris has successfully settled over $200MM in

    capital transactions.

    Prior to Small Axe Capital, Chris was President of the Capital Markets Division for SIXON Group. In 2005,

    he was a partner in Blue Cap Funding, a commercial/residential mortgage firm based in Baltimore, MD.

    In 2000 Chris acted as Director of National Sales for a Technology Start-up in the home/light-commercial

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    automation sector. Chris got his start in corporate finance in 1996 with Mackenzie Commercial Real

    Estate, a Mid-Atlantic Regional Firm with full-service, CRE amenities.

    Chris holds a B/S in Environmental Science from Towson State University, in MD.

    Chris Driggs - Chris Driggs will direct Business Development and Sales for mHealth

    Global. With over 18 years of experience in Business Development, Sales, & Project Management in

    various vertical markets, Chriss network in the Healthcare space and his knowledge of structured

    alliances will bring much needed support to the mHealth Team. He has a proven track record of growing

    companies from the ground-up and is currently structuring a short-term (3-year) M&A of his current

    business located in Orange County, CA. A company he has grown from Seed in 2004. Prior to that,

    Chris Owned and Operated a wholesale and retail mortgage banking business with over 20 full time

    employees.

    Chris holds a BS from the University of Virginia.

    Dan Nease -Dan Nease will act as Chief liaison into Domestic and Foreign

    Government agencies for mHealth Global. Dan currently acts as Founder and President of D&D Capital

    Group. D&D aids domestic/foreign Governments with large project-based structured finance. D&D has

    been successful in bridging over $1B in large, Structured Capital for various developing countries. D&Ds

    relationships with high level contacts inside various, developing national government will allow for

    direct access to decision makers inside these large bureaucratic systems.

    Prior to D&D Capital, Dan spent over 8 Years in Asia acting as both Managing Director and Owner of twodifferent Water Filtration/Delivery Service Companies (Waterman Asia, LLC & Offshore Marine Labs,

    Inc.) working with both the private and public sector. In 1987, Dan headed west coast operations for

    Optrotech International, an electro-optical systems manufacturer that was able to become the market

    leader in its field helping transform the printed circuit board, enabling companies to begin the first of a

    series of dramatic productivity improvements.

    Dan holds a MS in Industrial Engineering from Arizona State University and a BS in Science &

    Mathematics from Cal State Poly-tech U.

    Objectives

    Projected Gross Revenues for fiscal year 2012, without external (PE/Debt) funding, are expected to be

    $180,000. That would reflect a customer base of 5000 single users. Growth in 2013 is projected to be

    300% (15,000 single users, PGR $540,000) and another 300% every year through 2017. Within three (3)

    years mHealth Global will be in a suitable position for further expansion or a profitable M&A. At this

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    time, our objective is to establish a foothold in a new and emerging industry and, to seize an

    opportunity to fill a market gap in the mobile Healthcare industry.

    To achieve our objectives, we plan to establish strategic partnerships with the Healthcare Tech Space

    and leverage our already well-positioned network of Doctors within the Primary Healthcare Market. This

    will require extensive travel, AMA based trade show attendance, and a very savvy marketing pitch.

    MARKET ANALYSIS

    MARKET SIZE

    The mHealth Industry that Mobile Health Visions is venturing into experienced total sales of $1.7 Billion

    in 2011, which is a 233% increase from 2010, according to statistics from Parks

    Research (http://mobihealthnews.com/7270/mhealth-predictions-1-9b-4-4b-4-6b/). Mobile Health

    Visions has recognized the opportunity, and is implementing the necessary marketing strategies tobreak into the market. The overall Mobile Phone Platform/Application market for the mHealth Industry

    is projected to be $23 Billion by the end of 2017 according to PriceWaterHouseCoopers

    (http://edition.cnn.com/2012/02/29/tech/mobile-health/index.html). Approximately 5.6 Billion mobile

    phone devices are active today in 2012. Because healthcare applies to all people, some more than

    others, the demographic for mHealth Platform is 5 and up (or earlier, just depending on when a child

    can read and understand how to operate a mobile phone). There are approximately 320 medical

    applications for mobile devices in this specific market today. Epocrates, Voxiva, GE, PharmaSecure, &

    NeuroVigil are five of the top mHealth companies as reported by Fast Company in March of 2011.

    We consider broad-based exposure a large chunk of our emerging market.

    Demographic evaluations will be used to determine the areas which are most appropriate to conduct

    business. While understanding the United States is the best place to begin because many people have a

    home computer, work computer, and mobile phone, one must understand that in many undeveloped

    countries, mobile devices are the only source of connectivity. Most people in undeveloped countries do

    not own a home or work computer. It is the mobile phone that serves as their online gateway.

    Our market research has helped to identify our niche market. Because we can seek out small segments

    of the larger markets, we can generate a regular income stream by targeting and serving a loyal

    customer base.

    MARKET CONDITIONS

    Market conditions in our industry are increasing and projected by most experts to continue at that

    trend. Between 2010 and 2011 the market grew 233% (600 Million to 1.7 Billion - Parks Research). An

    expected growth rate of 1350% over the next 60 months is anticipated (23 Billion by 2017 according to

    PriceWaterHouseCoopers). Management will use several forms of marketing to take advantage of the

    favorable market conditions.

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    GEOGRAPHIC SEGMENTATION

    Geographic segmentation allows us to divide and understand the area in which we are establishing our

    business. By categorizing and identifying the regions around mHealth Global will allow us to understand

    the market within our area, and where they are located. Below you will find descriptions on the Area,

    Counties, and Regions that we will offer our business in.

    Region Description: UNITED STATES

    DEMOGRAPHIC SEGMENTATION

    Analyzing the demographics of our specific market allows mHealth Global to examine and identify the

    ages, gender, and income levels of our particular target market. This will enable us to appropriately

    design a marketing strategy based on this information. The following identifies the demographics of our

    likely target market.

    Research suggests that mHealth Global's target 5 years old and up mHealth Global's typical customer will be any person that needs healthcare. Family Size: Any Size The nature of mHealth Apps will be targeted towards all people.Our segmentation analysis indicates our primary customers are those that have health issues that

    require daily, weekly, or monthly care (ex. diabetes patient).

    TARGET CUSTOMERS

    Our initial target to Market penetration will be through the primary care givers. Initial revenues willcome from our end-user market, the Patients. Future targets for revenue verticals include both

    Pharmaceutical Companies and Insurance Companies. Potential Ad Revenue will occur once critical mass

    is reached in user/account numbers.

    STABILITY OF MARKET

    As mentioned before, sales in this market have increased 233% from 2010 to 2011. This vertical

    continues to be in the growth stage and different firms are seeking to build market share by maintaining

    quality and routinely adding new features to mHealth apps. More and more mHealth Companies and

    Spin-offs are forming as a result of increase in demand. mHealth Global will plan accordingly

    to accommodate this growth in the market.

    SWOTANALYSIS

    mHealth Global's mobile platform brings a considerable pool of products and marketing strengths to the

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    mHealth marketplace. In terms of product strength, mHealth Globals mobile platform has several

    distinct advantages over the competition. First, is its marked advancement in software development for

    cloud operated applications and network agnostic qualities. Second, the structured alliances with our

    API Family allows for the "Gamification or Rewards program incentivizing the patient to properly follow

    Medical advice and/or Prescription Instructions. Third, SMS communication and Bilingual

    (English/Spanish) would increase our target market across a larger economic spectrum. Fourth, all

    tracked, stored, and analyzed date will add to the IP Asset revenue stream (Ins Co, Pharms, Retailers,

    Etc). Lastly, our revenue stream will include the Primary Care Physician thus incentivizing the service

    for their customers and eliminating any doubt of capital circumvention.

    The Founder and CTO of mHealth is fluent in Chinese and Japanese so, Asia is a market for future

    growth. The mHealth Global team has a strong network and relationships to hospitals, doctors, and

    insurance companies. These established relationships will be leveraged for immediate Sales and

    Business Development.

    Strengths:

    mHealth Global's greatest strength is the innovative approach it has taken to designing and building

    mHealth Apps operated in the "cloud" environment and providing both a front and backend that

    supports and highlights the relationship between the Doctor and patient. Being a smaller company,

    mHealth Global has greater flexibility than its larger competitors to try different methods since it does

    not have to consult with an entire panel of IT engineers or obtain unanimous approval from multiple

    divisions to implement a viable new customer-approved solution. This means that the latest

    breakthroughs in design will be implemented and tested before comparable products are even off the

    drawing board at competitive companies.

    In marketing, our most powerful assets are:

    Sales Executives with strong database of doctors, insurance companies, and associations Executives based on East and West Coast's Adding doctors to mHealth Platform Revenue stream to differentiate ourselves from all competition Partners with previous start-up experience Exceptional promotional materials Appropriate pricing as it relates to competitionWeaknesses:

    Because of its relatively small size, mHealth Global is not yet a "household" name among doctors,

    patients, and insurance companies. If mHealth Global had the resources to finalize the final product, it

    would be possible to create sales revenues in the lucrative market that is made up of hospitals & private

    practices that are anxious to find a new revenue stream to offset today's astronomical operating costs

    and want a product that will reduce liability and improve doctor patient care.

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    There are some minor handicaps inherent in our product. In order for the platform to work properly,

    doctors and patients must develop a habit of using it. That means breaking routines that doctors and

    patients have followed for decades. The only notable marketplace disadvantages caused by this

    weakness are updating current systems and trusting that a new way will work.

    Company weaknesses, at this time, consist only of our cash position. However, we are taking steps toraise capital to allow us to grow and provide a very realistic return for the investor. We feel these

    measures should eliminate or significantly reduce the problem.

    Research has shown that this market annually generates total sales of $1.7 billion in the United States.

    Currently, software companies in the U.S. and Europe dominate this market.

    mHealth Global has a substantial amount of work to do in order to secure a portion of the United States

    market.

    Opportunities:

    The upside potential for growth will support substantial revenue increases in the immediate future.

    Over the next two years, our current mHealth Global App products are expected to perform at rapidly

    increasing levels in Unites States markets where until recently, likely customers lacked access to the

    technology required to use mHealth Global products.

    Based on current and projected market conditions, it is apparent that mHealth Global will be able to

    develop new mHealth apps and upgrade already developed apps, to take full advantage of the projected

    1350% growth of the mHealth space between 2012 and 2017. Allowing for economically or politically

    driven drops in sales, market trends indicate that mHealth Global stands to realize a significant jump in

    revenues, due to the market being so new.

    Unexploited Opportunities:

    mHealth Global could create a completely new product platform/ application by using the current

    platform and applying it to other businesses like the teacher and student relationships, thus entering the

    Education market and positioning mHealth Global products as an educational tool rather than the

    healthcare use for which it was originally designed.

    Further opportunity for our product exists in numerous other market(s).

    Threats:

    Known threats include the newness of the market and a failure to act quickly as more companies are

    deciding to enter the mHealth space.

    Vertical Stats below

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    Revenue and Billing

    (please see financials for other associated costs & NOI)

    The revenue model will address the growing concern by Doctors/Physicians about capital

    circumvention they are facing with the Governing Legislation and other technological advances and care

    offered direct to patients.

    mHealth will dedicate 20% of the its revenues to the Doctors who utilize and recommend our product

    and service This will obviously add incentive to refer mHealth to their clients as well as to other doctors

    in the community. Furthermore, the data we collect, store, and analyze may act as a deterrent to

    malpractice torts. This will be treated as a cost to the company and Doctors and/or private practices will

    be regarded as ICs and 1099d.

    Price Points:

    Single user $2.99 monthly ($35.88 annually)

    Family of 8+ $4.99 monthly ($59.88 annually)

    Billing can be handled 3 ways:

    -Direct from Client

    -Direct from private practice

    -Direct pass-thru billing from Carrier (AT&T, Verizon)

    -Insurance provider (TBD)

    Other than direct-to-market revenue, mHealth will have the capability to sell/lease the data we collectand store (once we have reached critical mass in users) to Pharms and Ins carriers. Valuation of this IP

    Asset is TBD.

    Investment Opportunity

    Friends and Family:

    Given the market conditions and similar start-up business models in this space, pre-money valuation

    of mHealth Global is $2,000,000.00 (Two Million Dollars). mHealth Global is raising $100,000.00 in

    Convertible Notes with a 15% return (simple interest), for 3 years (ending June 1st 2015).

    Voluntary Optional maturity conversion: The Notes and any accrued interest shall be convertible, at the

    option of holders of a majority-in interest of the outstanding principal amount of the Notes (Majority

    Holders), on the June 1, 2015 (the Maturity Date), into shares of Non-Participating, Preferred Stock at a

    conversion price equivalent to a pre-money valuation of $2 million USD.

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    Our goal is to secure an initial capital raise of $50,000.00 by April 15 th of 2012 and the balance of the

    $100,000.00 raise by May 1, 2012. This will allow the development begin immediately and

    sales/business development to commence contiguously.

    FinancialsStart-up costs

    Owners' Investment (name and percent

    ownership)

    Steve Epstein/Dan Nease 40%

    Chris McGhay 20%

    Chris Driggs 20%

    Angel

    Equity for Leverage

    5%

    15%

    Total Investment % 100%

    Angel/Seed

    Inv 1 $20,000

    Inv 2 $20,000

    Inv 3 $20,000

    Inv 4 $20,000

    Inv 5 $20,000

    Total Equity Sold $100,000

    Other Loans

    SBA $100,000Source 2 -

    Total Loans $200,000

    In the event its deemed

    necessary

    STARTUP EXPENSES

    Legal

    Corp Register $1,000.00

    OpAg Legal Counsel $ 500.00

    Alliance Contracts (API) Oversight/Retainer $4,000.00Other -

    Total Legal $5,500.00

    Demo App

    English Working App (Demo) $2,500.00

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    Spanish Working App (Demo) $1,000.00

    Total $3,500.00

    App Framework

    WireFrame/UI Design English $2,500.00

    Spanish $1,000.00

    iOS/Android/HTML Front End Design &

    Implement (Eng) $5,000.00

    Spanish $2,000.00

    Java/Database/Analytics/Mult API Test and

    Implement $20,000Total Capital Build-Out $30,500

    Admin Expenses

    E/O $ 500.00

    salaries (2000 x 4) $8,000.00

    Total Admin Expenses $8,500.00

    Advertising and Promotional Expenses

    Printing $ 400.00

    Travel/entertainment $4,000.00

    Other/additional categories -

    Total Advertising/Promotional Expenses $4,400.00

    Other Expenses

    web design and host $3,000.00

    Other expense 2 -

    Total Other Expenses $3,000.00

    Working Capital $34,600

    SUMMARY STATEMENT

    Sources of Capital

    Owners' and other investments $ 1.00

    Bank loans(SBA) $100,000

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    Investors $100,000

    Total Source of Funds $200,000

    Startup Expenses

    Demo App $3,500.00

    Legal $5,500.00

    App Framework $30,500

    Location/administration expenses $10,500

    Salary/Expense Coverage $8,000.00

    Advertising/promotional expenses $4,400.00

    Web Design/Host $3,000.00

    Working capital (COH) $34,600.0

    Total Startup Expenses $100,000

    CASH ON HAND $134,600 With additional SBA

    One-year projections

    (Please See Attached for Capital Breakdown)

    Fiscal Year 2012 (6/1)

    Single Users @ $2.99

    June 100

    July- 500

    August- 1000September - 1500

    October 2000

    November- 2500

    December- 3000

    January- 3500

    March- 4000

    April- 4500

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    May- 5000

    Multi-Family Users (8 or more) @ $4.99

    June 10

    July- 50

    August- 100

    September - 150

    October 200

    November- 250

    December- 300

    January- 350

    March- 400

    April- 450

    May- 500

    Exit Strategy

    While its hard to determine future positions in this New vertical market mHealth believes that once

    enough market share has been gathered and/or penetrated, a larger outfit (Competitor at that time, Ins

    Co, Pharm Co, etc.) will want to discuss potential M&A offerings.

    Thanks in advance for your time and consideration. For more information or to arrange a time to

    speak/meet, please contact either:

    Chris T. McGhaySmall Axe Capital, LLC

    PO Box 1242, Carefree, AZ 85377

    (Cell) 480-273-6734

    Skype chris979797

    Chris Driggs

    4334 North Charles St

    Baltimore, MD 21218

    (Cell) 949-300-7710Skype chrisdriggs

    Please read a few articles on the following pages supporting our mission and the market

    opportunity

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    Articles

    Why mHealth will go main-stream in 2012

    http://www.mhimss.org/news/why-mhealth-will-go-mainstream-2012

    March 14, 2012 James Monaghan

    The start of a new calendar year often ushers in a raft of bold predictions from industry experts and

    pundits alike. Depending on what you read, 2012 could be the year we ditch plastic en masse and start

    waving our smartphones to pay for groceries or, perhaps even less likely, we sound the death knell for

    SMS by migrating to a proprietary OTT messaging system. Some predictions are nakedly over-optimistic,

    while others sound eerily familiar because the technology's ascendance has been heralded many years

    in a row.

    At first glance, healthcare, with its labyrinthine regulations, antiquated reimbursement models and

    reticence to yield to mainstream IT practices, seems like a highly unlikely industry to "go mobile" this

    year and experience the surge of innovation and adoption associated with the payments, gaming and

    communications sectors. However, a perfect storm of factors is coming together to ensure that mHealth

    explodes into mainstream consciousness by the end of 2012.

    Follow the money

    Like any massive industry, U.S. healthcare is rife with inefficiencies, and since spending on health and

    medicine in this country accounts for 16 percent of the GDP, both incumbents and entrepreneurs alike

    understand that a small incremental efficiency in this market could yield tremendous opportunity.

    Anyone who has been to a doctor's office has experienced long waits due to sub-optimalscheduling, filling out paperwork with details already shared on a past visit, or presenting

    multiple credentials (ID, insurance information, payment information) to receive care. But it

    doesn't have to be this way there are many ways mobile technology can make this process

    more efficient and cost effective.

    With integrated GPS and adoption of open APIs, patients can find nearby practitioners withopen appointment slots minimizing wait times and unbillable practice hours just as diners

    search for last-minute restaurant options.

    Low-cost, self-service platforms for SMS alerts will soon replace manual phone calls andhandwritten notes for appointment reminders and prescription refill notifications, ensuring that

    billable services and products are used and patients receive their scheduled care. Cloud-based electronic medical record (EMR) platforms, backed by sizeable government

    incentives for adoption, will render paper-based filing completely obsolete and streamline care

    with accurate, detailed and portable information.

    NFC and emerging mobile wallet technologies will go beyond just payment information and actas unified, secure credentials for accessing insurance information and personal health records,

    completing forms and paying for services with one easy tap.

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    Wide adoption of these examples in the hospitality and finance industries proves that the technology is

    ready, and it presents an opportunity to save healthcare providers the cost of missed appointments and

    drive timely prescription refills. The chance to take a piece of that revenue is attracting both traditional

    investors with a track record in health technology, such as Qualcomm Ventures, and upstart incubators

    like RockHealth looking to help entrepreneurs with a traditional web background break into healthcare.

    With revenue models and venture capital in place, we can expect a slew of exciting announcements and

    product launches this year.

    Let the gamification begin

    The revenue opportunity doesnt stop at the patient and provider end of the spectrum either. Insurance

    companies and other payers have large incentives to foster better communication with their members

    and provide greater access to health information, because healthier people use fewer healthcare

    services and cost less to insure. Recently, hospital networks, insurers and charitable foundations have

    tested various informational alerts and wellness programs from finding the nearest HIV testing center

    to getting weekly pregnancy tips via SMS and many have been a big hit with consumers.

    Today, addictive gaming and social reinforcement models the game mechanics" pioneered by Zynga

    and Foursquare are helping people adopt healthier behavior. Setting goals, tracking progress bars,earning badges for achieving milestones, challenging your friends and sharing your stats on Twitter or

    Facebook all of these elements can make healthy actions such as picking salad over french fries,

    walking to work, losing a few pounds or even getting a prostate exam almost addictive.

    For a long time, the healthcare industry assumed that providing enough facts or incentives was the only

    way to encourage healthier choices. Now many believe that the secret lies in basic psychology and

    reinforcing positive behaviors. Several applications applying this principle have debuted in recent years;

    smartphone food tracker The Eatery and social exercise stream Dailymile are two popular examples.

    Venerable favorites like Nike Plus and even Wii Fit now incorporate many of these features, but never

    have the mechanics been so well understood (thanks, Farmville), the technology available to so many

    consumers or the tide of entrepreneurs wanting to do something good been so strong.Research2guidance estimates that the size of the mHealth app market will nearly double in 2012 to $1.3

    billion, up from $718 million in 2011.

    Know thyself

    A huge challenge in healthcare is the perception that care only happens when a patient is in front of a

    doctor. In fact, daily decisions often have the greatest effect. Of course, all the fancy visualizations and

    game mechanics in the world can't operate in isolation, no matter how incented a consumer is to use

    them or stakeholders in their wellbeing are to fund them. Data drives everything. In order to change

    something, you must be able to measure it and much more frequently than at an annual physical exam.

    Fortunately, there has been a huge proliferation of devices aimed to provide crucial data points for

    those on the path to the quantified self. Recent advances have made them small enough to be mobile,

    cheap enough for consumers to buy and, in many cases, connected to wireless networks for ready

    aggregation and sharing of data. Vibration and GPS-driven pedometers, electromagnetic and optical

    heart rate monitors, blood pressure cuffs, glucose meters, scales and body composition analyzers and

    sleep trackers all of these sensors are either available for home use or packaged in wearable

    wristbands or smartphone accessories.

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    Mobihealth predicts that the U.S. market for wireless home-based healthcare applications and services

    will become a $4.4 billion industry in 2013. To say there is demand for these devices would be a massive

    understatement. The first batch of Nike's FuelBand, a new goal-based activity tracking device, reportedly

    sold out online in just four minutes.

    Pulling it all together

    All of these trends maturing technology, willing consumers and available funding are promising, but

    things get really exciting when data is freed from proprietary, vertically integrated silos and made

    portable. Consumers should be able to selectively share their exercise data with their health team. Data

    from a weight tracking application is most meaningful when displayed alongside activity and caloric

    intake data. A host of mash-ups bringing together not just disparate sources of ones own health data,

    but local and regional trends, social graphs and demographic statistics are possible if this information is

    set free.

    This presents both a technical and marketing challenge. Sensors need reliable carrier connectivity for

    M2M messaging to upload their measurements. Data exchange formats and centralized hubs are

    necessary for the interconnection of these applications. Finally, we must establish consumer trust

    around identity management, privacy and security of data. Startups and enterprises alike are innovatingin this area, with Runmeter's Health Graph API and the AT&T mHealth Platform representing two

    prominent examples of cloud solutions tackling these complexities.

    Even simple components delivering an alert to remind someone to take their medication, for example

    require integration with multiple wireless carriers and OEM platforms to reliably reach every user, but

    new platforms exist to tackle this challenge. With these strategies and other pieces in place, the pace of

    innovation for mHealth is sure to accelerate this year.

    James Monaghan is director of solutions innovation and consulting at OpenMarket. Follow him on

    Twitter at @james_monaghan.

    mPrescribe Prescribing Health Apps 3/5/12via HIStalk Mobile by travis.good on 3/6/12

    The BBC had a story last week about general practitioners (GPs) in the UK prescribing health apps to

    patients. The idea is that prescribed apps would be free to patients, even if they had a cost associated

    with them, so Im assuming that the NHS would pick of the tab for such apps.

    The story has gotten a lot of attention, and I think with good reason. Ive written before and believe that

    physicians need to prescribe health apps, whether they are mobile or web, in order for patients to

    signup and use them on an ongoing basis. There are several huge benefits that exist from this approach:

    Enhancing, not replacing, the doctor-patient relationship. As eroded as it has become, thedoctor-patient relationship is a powerful thing capable of very positive things for our health

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    system. In my utopia, health apps are used to enhance that relationship, providing constant

    touch points between provider and patient, even if some of the content from the provider is

    somewhat generic and/or canned. I think that constant contact and accountability for the

    patient, whether real or perceived, will be a huge driver of ongoing usage. Also, collecting

    additional data and summarizing it for the provider, potentially with clinical decision support

    built in, makes the time spent face-to-face that much more valuable.

    Minimizing disruption. If the provider can have select apps for each condition or cohort ofpatients then it makes disruption of clinical flow less for them as they only have to learn to view

    and act on results from a small subset of apps. Also, if these targeted apps are then integrated

    into the EMR, even as attached reports, that is less disruption. Or maybe more app developers

    start making physician apps for viewing patient data. Again, the number of apps has to be

    limited. If all app makers agree to push data to one platform, such as MS HealthVault or Dossia

    or whatever, then this problem is solved, but I dont see the convergence of one storage

    platform to be very realistic in the near future.

    Reducing silos. This relates to disruption above. Reducing the number of apps used by patientsreduces the number of silos of data from different app makers. It also filters the huge number of

    potential apps out there.

    Virtually linking patients and providers. If a doc prescribes an app, ideally they could do it withan invite code or QR code or someway for the patient to choose them as part of the app

    registration process. I realize very few apps do this today but were going to be seeing more and

    more of this coming. Instead of walking out with directions memorized or on printed

    documents, prescribed apps can pull data into the app and present it a more meaningful way, or

    maybe automatically add events to a calendar, or create a specific health calendar. This is

    definitely future-state but has a ton of potential. Linking the two makes access to data easier

    and also enables messaging between parties, once both patients and providers are ready to

    message.

    Lowering the cost of care. Regardless of provider involvement, I think engaged patients that usehealth apps on an ongoing basis will be healthier. I think patients feel more accountable if

    something is prescribed to them and can be tracked. Accountability leads to more activeengagement, which then leads to better outcomes and lower costs.

    With so many benefits, why arent physicians prescribing apps? Unfortunately, I believe we are a long

    ways off from seeing most docs prescribe health apps to patients. The UK has a bit of an advantage

    because it is a more centralized health system. Systems that are similar in the US, like Mayo, Kaiser,

    Intermountain, and Geisinger, I could see being some of the first to start having providers prescribe

    institutionally approved apps.

    But, for the vast majority of providers and, by extension, patients, several very large obstacles remain:

    The vast majority of providers dont know anything about health apps. If youre a providerreading this post, Im not talking about you. Most practicing physicians dont have any idea what

    apps are out there for their patients. Heck, most providers dont have much of an idea of what

    apps are out there for themselves (Epocrates and UpToDate excluded, although my wife only

    knows UpToDate has a mobile app because I installed it on her phone).

    Assuming providers knew about apps, they need guidance on what apps are safe. I believe docsare never going to prescribe an app unless a trusted organization confirms its value and

    accuracy or a trusted colleague tells them about how great it is. Maybe that is where the FDA

    comes in? But, even with FDA approval, apps dont fit into nice categories like drugs do (its

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    easier to compare two statins than it is to compare two diabetes apps). Im not sure how this

    will work exactly but I know there needs to be some higher authority validating, and in essence

    taking some of the responsibility, from providers. This is what Happtique is trying to do; well

    just have to see how well it works from a clinical buy-in perspective.

    Providers dont know how it fits into practice. Providers are going to want to know how the appsfit into their practice. Right now I think thats still unclear. Obviously more data on mood trends

    as somebody is starting new meds for depression is great, as long as it is presented to the

    provider in a digestible way. But, what if the patient is suicidal according to the app and there is

    no feedback mechanism to trigger an alert. If providers are now prescribing patients to enter

    this additional information, are providers on the hook to assure they know when an immediate

    response is warranted and then to respond to it?

    Lack of payment. Unfortunately this might be the biggest obstacle. In the NHS story referencesabove, the apps were going to be free to patients. In the US, that is not the case, at least it isnt

    today. Prescribing patients to spend additional money is likely going to prevent widespread

    uptake. Or maybe different payers will have different app formularies so providers will have to

    wade through lists to see what approved apps are free based on payer. That would be great.

    Also, if providers arent paid for responding to app messages or alerts its likely not going to

    happen.