The Complete Smoking Solution

A Standardized Behavioral Support System using Scientifically Verified Techniques

PROBLEM #1PEOPLE ARE NOT SUCCESSFUL AT QUITTING

A lot of people smoke….and most try to quit…and most fail

• 6 Million Deaths/year

• 19% US ~ 1.3B Smokers World Wide

• 70% Want to quit

• 93% Failure Rate

• 41% Fear of weight gain

• People aren’t quitting

PROBLEM #2$3B INDUSTRY IS IN TROUBLE

Fewer quit attempts due to failure rateCarbon Copy Products ~ Dilute Market Share

E-cigs capitalize on this fear: current sales = $2 Billion Estimated to grow to $10 Billion in 10 years

New Product is Shrinking Market Size

Down 8% in 5 years

Leading Brands are losing sales

THE SOLUTION FOR THE INDUSTRY

B. Gain Consumer ConfidenceIncrease customer base~ Expand Market Size

A. Enhance: Product Differentiator Gain a competitive advantage ~ Increase Market Share

THE SOLUTION FOR THE PRODUCT

Both the NIH and ACS have stated

Behavioral Support is what has been proven effective

HOW?

BEHAVIORAL SUPPORT WORKS

The only method available is by individual therapists

So why isn’t it being used?

$$$ Efficacy vs EfficiencyNo Standardized MethodologyNo Efficient Delivery SystemLeaving NRT products without a way to enhance their product.

OUR SOLUTION: BUSINESS DOING THERAPYStandardized Mass Distributable Effective

REACH FOR THE APP INSTEAD OF THE PACK

Scientifically tested and documented techniques that enhance the prefrontal cortex

The program is the content, the app gives you actual tools to use Breathing techniques to stimulate the para sympathetic nervous system Visualization techniques used by athletes to strengthen neural connections Affirmations that enhance cognitive awareness Group support via FB or private social network To Do list integrated into NRT program with Push Notifications, keeping smokers

on track

Trigger Tracker TM, first tool to track moods, behaviors, usage Data collection process with vast amounts of market research data that pharma

currently pays millions for

Audio Program for hand and eye free content delivery

CEO: 20+ years in industry

Devlyn Steele

CPO: CBT Specialist 6+ years

Domenic Weber

CTO: Ruby, Python, SQL

Vyacheslav Kim(Kane)

WE HAVE SOLVED THE PROBLEM

Enhanced Product(Grows Market Share)

+ Consumer Confidence(Grows Market Size)

INDEPENDENT STUDY

ENHANCED SOLUTION EXIT (B2B)

Competitive Advantage: Increase Market Share

Consumer Confidence: Expands Market Size

We are the only product to address weight gain

Eg. GSK increases sales by 5%= $35M

Objective: $21M-$100M1-1.5 Years

NRT = Instant fix but not permanent

CBT= Permanent fix but not instant

The First Complete Solution

Data Acquisition Platform

MARKET DEVELOPMENT EXIT (B2C)

Raise between $2-$5 million

CAA Spokesperson and/or Guthy-Renker

Talk Show & Radio Circuit

Grow to 1M subscribers @ $10/mo

Then Exit 4-7 years

7x-10x EBITA

THE PLAN: WHAT WE NEED

Task / Roll $Admin / Operations (Core Team Salaries) $90kPh. D. Adviser 1-3%Program Production $80kApp Development $50kStudy $100kLegal + Patent $42.5kSUB TOTAL $362.5kContingency $137.5kTOTAL $500k

• 33% equity stakeor

• 6-8% convertible debt• 20% discount shares

Pre Revenue Valuation $1.5M

B2B Exit: 1-1.5 Year ROIB2C Exit: 4-7 Year ROI

APPENDIX

MARKET ANALYSIS:“INTENSIVE BEHAVIORAL SUPPORT IS USED IN MOST STUDIES” ~ BO ZHANG, PHD

Enhance a Product Number Value

Smokers 1.3 B n/a

Trying to quit 970.9 M ~$3 B

GSK (Nicorette/Nicoderm) 55.9 M ~703M

Pfizer (Chantix) 2.75M $648 MRJ Reynolds (Zonnic) n/a $44 MNew Products

eCigs 2.5 M $2.1

Stats Percent

Believe “Support System” Necessary 25

Interested in Therapy 37

Interested in APP 30

Can quit anytime 48Interested in Sprays 41Interested in Prescription Inhaler 41Interested in Lozenge 40Willing to Try Nicotine Free Smokes 38Failure Rate with current products 93Don’t want cravings AFTER treatment 61Weight Gain a major issue 41Concerned on Cost 59Easy to Understand 54

These numbers point to one sure thing, the smoker is uneducated on what works.

Initial Target demographic:35-60, Female$50,000College Education

Marketing education can alleviate the concerns in red

RISKS

No one wants to buy it or not willing to give us what we project Aim for Distributors not Manufacturers

OR With study in hand we can go to market Once we prove out we are taking market share, they will acquire us

Product/Market Fit CAA Celebrity Spokesperson Interview Testers and Create Infomercial VC Funding Full Marketing Campaign

The Product doesn’t work Customer re-development program with VC funding

COMPETITION

No Originality

All the same things based upon old FDA suggestions

Telling people how to do things is easy, giving them tools to do it is our differentiator

DIFFERENTIATORS

First Scheduled Program with a set lesson plan so it doesn’t read like a book

Only Online CBT program ever created

Text Msg support based on CBT lesson plans not generic motivations

TO DO lists that build, allowing users to set their own pace

App tools that allow you to complete your To Do list, not just tell you about it

Scientific Database explaining where all research comes from

Specific Content to work in conjunctions with NRTs

Data Acquisition system for further customer development

Private Database

Push Reminders for keeping your patch/gum schedule

Audio content as well as text and video

TM names Trigger Tracker Thought Detective “Reach for the app instead of the pack”

STUDY: EFFECTIVENESS OF A STANDARDIZED CBT BEHAVIORAL SUPPORT SYSTEM FOR THE USE OF SMOKING CESSATION

QS 24/7

Patch only

QS 24/7 + Patch

1. We prove NRT rates

2. We prove CBT alone is better

3. We prove CBT + NRT works better than NRT

4. We monitor and track weight, mood, triggers, number of cigarettes and gum

5. Randomizing 28 in each group using “urn randomization”

6. This data gives us multiple options

A. We take this product to market because we proved we are not only more effective, we have developed the only solution that shows no signs of weight gain and we shrink your market share (Pitch to VCs)

B. You buy QS 24/7 and not only not lose market share but increase market share

C. You market this product as effective and a pain free way to quit and expand the user base by attacking eCigs

D. We are in talks with your competitors and a competitive offer is needed

STRATEGIC PARTNERS

Robin Apple Ph. D

Stanford: School of Medicine

CBT based practices for eating disorders and behavioral change

Howard Rachlin Ph. D.

SUNY: Emeritus Distinguished Professor

Decision-Making the psychological and economic basis for self control, addiction and social cooperation

Hal E. Hershfield Ph. D.

UCLA: School of Mgmt

Judgment and Decision Making in Social Psychology as well as future consequences

John Monterosso Ph. D

USC: Director of Self-Control Neuroscience Research Lab

Addiction focused research specializing in neuro-economics

Sarah Adler Psy. D

Stanford: Dept of Psych and Behavioral Science

Focus on CBT in eating disorders and addiction as well as published papers on the efficacy of App technology for CBT

Jeff Beeler Ph. D

CUNY: Behavioral Neurologist

Focused on proving the detrimental effects of NRTs

WHY CBT + NRT WILL WORK BEST

Nicotine Dopamine Desire

Nicotine Desire

Synapseaka thought

DesireThoughts Dopamine Desir

eCBT Thoughts Instant fix but not permanent

Permanent fix but not instant

• EURO MONITOR• 2003 Journal of Tobacco

http://whyquit.com/studies/2003_Hughes_TC_Meta_Analysis_OTC_NRT.pdf• 2011 Hilliel Alpert

http://tobaccocontrol.bmj.com/content/early/2012/01/10/tobaccocontrol-2011-050129.abstract• Pfizer: 2013 Annual Financial Report• GSK 43% and Zonnic

http://myfox8.com/2014/09/05/reynolds-to-go-national-with-sales-of-nicotine-therapy-gum/