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Intelligent Bioenergetics, Inc. Company Overview – August 2018

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Page 1: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Intelligent Bioenergetics, Inc.Company Overview – August 2018

Page 2: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

In 2012 John Thorp trained a well-known trainer’s son touse the evolving technology of the Electro-Equiscope on a 2-year old colt by the name of I’ll Have Another. This little colthad amazing speed but had chronic inflammation in hisankles. He lost his first two races before being purchased byJ. Paul Reddam and trained by Doug O’Neill. After 30 daysof training this little unknown horse came out at his firstrace with the odds of 43 to 1, a huge long shot! Since thetechnology had removed all of the inflammation from thechronically sore ankles, he was ready to run crushing thefield by six lengths. He went on to the win the KentuckyDerby and the Preakness in 2012. A little unknown colt thatwas purchased for $35,000 was sold to the Japanese forstud for $10 million dollars just 6 months after we beganworking on him.

Maximizing Cell Potential

Page 3: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Fast-forward to 2018, Itsinthepost, trained by Jeff Mullins has gone from obscurity to winning 5 of its last 7 races and $1 million.

Maximizing Cell Potential

Page 4: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Christophe Soumillon, jockey andwinner of the $10M Dubai World Cupriding Thunder Snow getting treatedwith Equiscope.

Darren Sproles, running back for worldchampion Philadelphia Eagles being treatedwith Equiscope.

Page 5: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

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The Electro-Equiscope gets athletes back on the fieldfast. In most cases, we cut the healing time in half, as wasthe case with Branden Oliver, the running back for the LosAngeles Chargers. After Branden’s torn off Achilles wassurgically reattached to the bone, Oliver recovered using theElectro-Equiscope and was game ready in 4.5months. Darren Sproles, a 13-year running back in the NFL,currently with the Super Bowl victors the PhiladelphiaEagles, recovered from his ACL injury in half the time as wellusing the Electro-Equiscope. The Electro-Equiscope was alsoinstrumental in bringing back Hall of Fame Jockey, GaryStevens, at 55 years of age is riding better than ever. AsGary says “I’m riding like a kid with a man’s brain!” Olympicand professional Volleyball player Lauren Fendrick Said aftera performance enhancement protocol with the Equiscope,“I felt more grounded, poppy fast, faster than normal.”

Maximizing Cell Potential

Page 6: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

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“The Equiscope has proven its utility byremoving inflammation, the root causeof all disease. I highly recommend it.”

– Stephen Sinatra, MD Cardiologist

“After my first treatment, I was amazed, the pain in my knee was gone.”

– Daniel Amen, MD Psychiatrist

“The technology is amazing and makes me a better physician”

– Richard Delany, MD Cardiologist & Internal Medicine

Advocacy

Page 7: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

The Science

Page 8: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Electrotherapy promotes re-connection andrepair of broken or damaged electricalcircuits and cells within the body, bystimulating correct wave form, current, andfrequency. When there is pain in the bodythere is electrical resistance, meaning theelectrical signals between cells aredisconnected, broken, suppressed orblocked. Consistent use of this healingmodality can help to restore the flow ofelectricity through painful areas so thatmeridian circuits may connect and healingcan be supported. Thus cellularcommunication is promoted.

Page 9: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Hours Days Weeks Months

Bleeding / Injury

Inflammation

Proliferation

Remodeling

Tissue Repair Phases and Timescale

Equiscope electrotherapy shortens the cycle.

Page 10: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Skin Surface

Epidermis

Dermis +

-Na+ K+

Cl-

Skin Surface

Epidermis

Dermis +

- -

+

-

Electrical Potential

Wound

Unbroken skin layers of theepidermis and dermis (A)maintain the skin battery acrossthe body through ionicmovement of Na+,K+, and Cl-,generating a polarity withpositive (+) and negative (-)poles. When wounded (B), thecurrent flows out of the wound(blue), generating an endogenouselectrical potential (green) withthe negative pole (-) in thewound center and the positivepole away from the wound (+).

A.

B.

Cutaneous endogenous bioelectric current before and after injury

Page 11: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Tissue damage / injury

Platelets

Adherence / aggregation / degranulation

Clot formation Releasing mediators

Vascular response Cellular response

Antibody production

Cellular immunity

Neutrophils

Phagocytosis

Macrophages

Monocytes Lymphocytes

Increased circulating cells

Increased heat Erythema Increased flow

Vasodilatation and increased vasopermeability

After an injury, the hemostasis(orange) leads to cessation ofbleeding. The platelets adhere toform a clot and release mediators toinduce additional plateletaggregation and mediate the phasesof the healing process. The releasedmediators trigger the inflammatoryphase (blue), divided into a vascularand cellular response.

Hemostasis

Inflamm

ation

Hemostasis and inflammation phases of wound healing

Page 12: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Proliferation and remodeling phases of wound healing

The proliferation phase is areconstruction step, wherecells are working to formgranulation tissues andrestore a functional skin.Several events are conductedsimultaneously: angiogenesis,granulation tissue formation,wound contraction, collagendeposition, andreepitheliazation. Activatedepithelial cells create newblood vessels by proliferatingand migrating toward thesource of the angiogenesisstimulus. The epidermal cellsproliferate and migrate at thewound edge to initiate woundrecovery.

ProliferationRem

odeling

Fibroblasts Angiogenesis Epithelial Cells

Reepitheliazation

Endothelial Cells

Migration Replication

New blood vessel formation

Reorientation of collagen fibers

Replacement with predominantly type I

collagen

Reabsorption of early predominantly

type III collagen

Matrix deposition

Collagen based scar tissue

Proteoglycan ground

substance

Collagen Synthesis

Myofiibroblasts

Final healed tissue

Increased tissue strength

Increased tissue strength

Page 13: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Cellular Level

Systemic Level

Proliferation RemodelingInflammation

Macrophages migration & activation Epidermal cell migration and proliferation

Antibacterial effect

Advanced Remodeling

AngiogenesisFaster inflammatory phase

Vascular endothelial cell migration

Fiibroblasts migration, proliferation and activation

Myofibroblast creation and activation

Wound contraction

Collagen synthesis

Re-epitheliaziation

Tissue oxygenation Blood flowSkin temperature

During inflammation, electrical stimulation increases macrophages migration and activity and decreases bacterial proliferation at the cellularlevel. At a systemic level, it induces a faster inflammatory response and an increased vascular vasodilatation that increases tissue oxygenation,blood flow and skin temperature. During the proliferation phase, electrical stimulation increases the migratory response and activity level ofepidermal cells, endothelial cells, fibroblasts and myofibroblasts. At the systemic level, it generates increased angiogenesis, collagen matrixformation, wound contraction and reepitheliazation. Finally, during the remodeling phase, the activity of fibroblasts and myofibroblasts isenhanced at a cellular level and produces advanced remodeling at a systemic level.

Effects of Electrical Stimulation on Wound Healing

Page 14: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Micro-Current Therapy is not new science, it has been around for decades. What is new is researchshowing that by keeping micro-current amperage in the pico Amp range actually increases the capacitanceand health of the cell.

The micro-current device we utilize is based on Nobel Prize winning research related to measuring thesmallest current ever recorded. These scientists placed probes inside ion channels of a single cell andmeasured a current down to a Trillionth of an ampere.

This is the electrical level our bodies neurological system operates within, and the output level of ourmachine, the Electro-Equiscope®.

This research found that cells have between 30 – 40 different ion channels that accept outsideelectrons and each channel only accepts certain frequencies. They also proved that after the cells arestimulated with current in the pico Amp range, they end up having a higher capacitance over time andwere healthier. With a TENS device, operating in the milli-Amp range, the cells ended up with less chargethan prior to the treatment. Additional charge makes the cells healthier and enable the body to heal itselfdramatically quicker.

Micro-Current Therapy

Page 15: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Products

Page 16: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Electro-Equiscope

The Equiscope combines the Electro-Acuscope and Myopulse technologies into one instrument and isdesigned for use with humans and horses / animals.

Electrically adjusting the impedance of the patient’s tissue, the Equiscope can stimulate theautonomic nervous system and reduce pain as well as help support cellular detoxification in the bodyby applying minute-focused patient-specific electrical currents directly to the targeted tissue. Thiscurrent is administered through specialized metal alloy probes or plates with botanically basedconductive gels and creams on the skin’s surface. Treatment is a non-drug, non-invasive and virtuallypain-free modality, which supports and even accelerates the body’s normal function.

Facilitator 1845 and Unifier 1945

The Facilitator and Unifier share the same smalllightweight housing and are easy to use and convenientfor travel. The instrument can e programmed as aFacilitator for deep meditation or pre-stem celltransplantation applications or as a Unifier for post-stemcell transplantation. Both the Facilitator and Unifier helpcalm the nervous system to decrease stress and supportthe body’s healing mechanisms.

Electro-Equiscope DLS (with diagnostic laser sensor)(not registered for use in the U.S.)

The Electro-Equiscope DLS incorporate a photonic sensorthat captures instantaneous rate of exchange and thevalue of changing quantities of targeted tissueimpedance, affording the device to response withequally fast corrective patterns of current to helpneutralize the pathological signature of the tissue.

Products

Page 17: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

• Increase range of motion (ROM) • Expedite healing• Reduce swelling and inflammation • Enhance athletic performance• Enhance cell function (ATP) • Stimulate detoxification• Reduce / often eliminate pain • Smooth and tighten soft tissue

• Arthritides • Nerve entrapment• Back injury (acute and chronic) • Neuropathy• Broken bones • Plantar fasciitis• Bursitis • Scar tissue repair• Carpal tunnel syndrome • Spinal injuries• Circulatory disorders • Sports injuries• Disc injuries • Stress reducing• Fibromyalgia • TMJ• Headaches

Electrotherapy can relieve pain associated with conditions such as:

Applications

Page 18: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Market Opportunity

Page 19: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Athletes Equine

Beauty Care Beauty Care

Target Consumer Base

The four fields we intend to concentrate on are the equine andveterinary market, the esthetics/beauty care industry (includingpre- and post-surgical plastic surgery), the sports industry and theacute and chronic pain management market.

1. Company estimates (see appendix).

$16,489,515,000

$6,300,000,000 $1,686,510,000

$18,699,590,000

Total Addressable Market Opportunity

Sports Market Equine MarketBeauty Care Market Pain Management

Page 20: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

25.3million

American adults suffer from daily

(chronic) pain

23.4million

American adults report a lot of

pain

25.4million

American adults experience

category 3 (of 4) of pain

14.4million

American adults experience the highest level of

pain (category 4)

Nearly 40 million adults experience severe levels of pain.

Pain in the U.S.

Source: Citation: Nahin RL. Estimates of pain prevalence and severity in adults: United States, 2012. Journal of Pain. 2015;16(8):769-780.

Page 21: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Equiscope Unit P&L

Equiscope Package $ 35,000.00 Shipping & Handling 250.00 Sales Discounts (5,000.00)Total Income $ 30,250.00

Cost of Goods Sold Equiscope 6,815.18 Accessories 618.99 Creams & Gels 73.14 Total Equipment $ 7,507.31

Commissions 3,000.00 Training 2,500.00 Royalties 1,500.00 Training Royalties 3,000.00 Total COGs $ 17,507.31

Gross Profit $ 12,742.69

Economics

Our goal, through volume purchasing, is to drive Cost of Goods sold from$7,500 to below $5,000 over the next five years.

At current retail price of $35,000, this would expand gross margin from 42% to48%.

Facilitator 1845 $ 4,000.00Cost of Goods Sold $ 950.00Gross Profit $ 3,050.00

Unifier $ 4,000.00Cost of Goods Sold $ 950.00Gross Profit $ 3,050.00

TrainingEquiscope $ 7,500.00Esthetics $ 4,500.00

Planned Equiscope II $ 15,000.00Target Cost of Goods Sold $ 7,320.00Implied Gross Profit $ 7,930.00

Page 22: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

2013-2017 $4.3 million revenuesProof of concept achieved

2018

Close A RoundLaunch brand awareness, sales & marketing campaigns Establish 3rd party financing Secure exclusivity distribution agreement for North AmericaCommence development of consumer model (Electro-Equiscope)Submit applications for EU Certification Secure option to acquire technology platform and IP Build C-level team and sales force

Commercial launch of consumer model (Electro-Equiscope)Acquisition of technology platform and IP 2019

Milestones Achieved and Planned

Page 23: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Reimbursement Strategy

Indiations for Use consistent with clinical evidence and code description, well-defined

patient population, endorsement from medical professional organizations, strong safety and

efficacy data, good economic rationale

Payer Coverage

Published pivotal trial data, FDA approval, evidence of widespread adoption

New Billing Code

Established payer coverage, inclusion in professional society guidelines, demonstrated

safety and efficacy, well-established clinical need, cost-effective, easy-to-use, strong market demand

Clinical Adoption

Our VisionWe intend to pursue a reimbursement strategy that if successful, we believe will exponentially drive sales.

1) Work in clinical research to design studies that show “medical benefit” and “added value”. We will focus in conditions of chronic regional pain that other modality and approaches have had difficulty showing success, where we believe the Equiscope will be able to demonstrate success.

2) Identification of code for the Equiscope3) Work with the FDA to phrase the

intended use and indications for use to fit coverage and coding

4) Presentation of the clinical trial date to the Centers of Medicare and Medicaid Services (CMS) for reimbursement approval

Page 24: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Key Financial and Offering Data

Page 25: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Key Offering Data

Pre-Offering Post-Offering Pro Forma Capitalization Shares Out % of Out Shares Out % of Out Founders 9,500,000 93.0% 9,500,000 60.8%Others 218,750 2.1% 218,750 1.4%Current Offering - 0.0% 5,400,000 34.6%2018 Stock Plan 500,000 4.9% 500,000 3.2%Total 10,218,750 100% 15,618,750 100%

Key Offering Data Max Corporate StructureShares Out 9,718,750 Warrants/Options Out 500,000 Convertible Debt $ -Shares issued on Debt Conv. -Shares Out Fully Diluted 10,218,750 Offering $ 2,700,000 Offering Price/Share $ 0.50 Offered Shares 5,400,000 Post Offering Shares Out (FD) 15,618,750 Post Offering Valuation $ 7,809,375

Use of Proceeds Max Research and Development $ 273,000 Inventory 750,731 Marketing and Sales 640,000 Operations 959,269 Misc. 77,000 Gross Proceeds $ 2,700,000 Offering Expenses 189,000.00 Net Proceeds $ 2,511,000

Page 26: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

2013 2014 2015 2016 2017 2013-2017Total Revenue $ 301,907 $ 1,376,596 $ 1,097,010 $ 677,726 $ 848,738 $ 4,301,977

Total Direct Costs 166,009 808,893 554,532 375,113 424,865 2,329,413 Gross Margin 135,898 567,703 542,477 302,613 423,873 1,972,564

Total Operating Expenses 41,607 327,566 489,408 296,135 371,398 1,526,115 Operating Income (Loss) 94,291 240,137 53,069 6,477 52,474 446,449

Total Other Income - 7 2,249 324 760 3,341 Income Taxes 12,838 53,859 3,030 1,550 1,675 72,952

Net Income (Loss) $ 35,227 $ 82,043 $ (2,767) (43,597) (52,839) 18,068 EBITDA (Loss) $ 94,291 $ 240,137 $ 53,069 $ 6,477 $ 52,474 $ 446,449

% 31.2% 17.4% 4.8% 1.0% 6.2% 10.4%

Historical Financial Performance

Page 27: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Pro Forma Financial Performance

2018 2019 2020 2021 2022Total Revenue $ 980,000 $ 2,830,000 $ 12,460,000 $ 26,470,000 $ 49,460,000

Total Direct Costs 470,000 1,330,000 6,080,000 12,920,000 24,260,000 Gross Margin 520,000 1,500,000 6,380,000 13,550,000 25,210,000

Total Operating Expenses 2,350,000 3,940,000 5,440,000 7,680,000 9,930,000 Operating Income (Loss) (1,830,000) (2,450,000) 950,000 5,880,000 15,280,000

Total Other Income 10,000 10,000 10,000 10,000 20,000 Income Taxes - - 250,000 1,280,000 5,210,000

Net Income (Loss) (1,830,000) (2,440,000) 710,000 4,600,000 10,090,000 EBITDA (Loss) $ (1,830,000) $ (2,450,000) $ 950,000 $ 5,880,000 $ 15,280,000

% -187% -87% 8% 22% 31%

Total Current Assets $ 1,000,000 $ 1,490,000 $ 2,620,000 $ 7,800,000 $ 18,830,000 Fixed Assets, Net - - - - -Total Other Assets - - - - -Total Assets 1,000,000 1,490,000 2,620,000 7,800,000 18,830,000

Total Current Liabilities 120,000 300,000 730,000 1,310,000 2,260,000 Total Long Term Liabilities - - - - -Total Equity 880,000 1,200,000 1,900,000 6,490,000 18,830,000 Total Liabilities and Equity $ 1,000,000 $ 1,490,000 $ 2,620,000 $ 7,800,000 $ 18,830,000

Total Cash From (For) Operating Activities $ (1,980,000) $ (2,700,000) $ (1,280,000) $ 1,680,000 $ 5,290,000 Total Cash From (For) Investing Activities - - - - -Total Cash From (For) Financing Activities 2,700,000 2,750,000 - - -Net Increase (Decrease) In Cash 730,000 60,000 (1,280,000) 1,680,000 5,290,000 Cash and Cash Equivalents-End $ 730,000 $ 780,000 $ (500,000) $ 1,180,000 $ 6,470,000

Enterprise Value Based Upon Multiple $ - $ - $ 9,500,000 $ 58,800,000 $ 152,800,000 Total Equity Value (EV-LTD+Net Cash) 730,000 780,000 9,000,000 59,980,000 159,270,000

Page 28: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Pro Forma Financial Performance

$(10,000,000) $-

$10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000

2018 2019 2020 2021 2022

REVENUE AND EARNINGS G ROWTH

Total Revenue EBITDA (Loss)

0%

20%

40%

60%

80%

100%

2018 2019 2020 2021 2022

P&L EXPENSE AND MARG IN MIX ANALYSIS

Gross Margin Total Operating Expenses Total Direct Costs

Page 29: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

2018 2019 2020 2021 2022Total Revenue $ 980,000 $ 2,830,000 $ 12,460,000 $ 26,470,000 $ 49,460,000 Net Income (Loss) (1,830,000) (2,440,000) 710,000 4,600,000 10,090,000 EBITDA (Loss) $ (1,830,000) $ (2,450,000) $ 950,000 $ 5,880,000 $ 15,280,000

% -187% -87% 8% 22% 31%

Enterprise Value Based Upon Multiple $ - $ - $ 9,500,000 $ 58,800,000 $ 152,800,000 Total Equity Value (EV-LTD+Net Cash) 730,000 780,000 9,000,000 59,980,000 159,270,000 Liquidation Preference 8,100,000 8,100,000 8,100,000 8,100,000 8,100,000 Liquidation Preference Value 730,000 780,000 8,100,000 8,100,000 8,100,000 Available to Common - - 900,000 51,880,000 151,170,000

Total Preferred Invested 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 Total Preferred Ownership 31.8% 31.8% 31.8% 31.8% 31.8%Total Preferred Equity Value $ 730,000 $ 780,000 $ 8,385,987 $ 24,585,590 $ 56,136,366 Total Preferred Return Multiple 0.3x 0.3x 3.1x 9.1x 20.8xTotal Common Invested $ - $ 2,750,000 $ 2,750,000 $ 2,750,000 $ 2,750,000 Total Common Investor Ownership 8.1% 8.1% 8.1% 8.1% 8.1%Total Common Investor Value - - 72,821 4,197,720 12,231,482 Total Common Investor Return Multiple 0.0x 0.0x 0.0x 1.5x 4.4xTotal Current Ownership 60.1% 60.1% 60.1% 60.1% 60.1%Total Current Value $ - $ - $ 541,192 $ 31,196,690 $ 90,902,152

Pro Forma Financial Performance – Valuation Analysis

Page 30: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Pro Forma Financial Performance – Valuation Analysis

$-

$50,000,000

$100,000,000

2018 2019 2020 2021 2022

Equity Value Accretion

Total Preferred Equity Value Total Current Value Total Common Investor Value

Page 31: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

Appendix

Page 32: Intelligent Bioenergetics, Inc. - Equiscope · 2018-08-02 · Therapy. Products. Electro-Equiscope. The Equiscope combines the Electro-Acuscope and Myopulse technologies into one

1. The addressable market opportunity is based on a purely hypothetical market penetration for the Equiscope of 100% is used forillustrative purposes only. At 1% market penetration of the Equiscope, we estimate the market opportunity at $430 million.

Notes to the Appendix