A Biotechnology company with a mission to accelerate the early development of substance abuse treatments.

1. 525 Vine Street
Suite 210
Winston-Salem, NC 27101
Email: alazarus@encepheal.com
Phone: 609-217-7517
Website: www.encepheal.com

3. CORPORATE LEADERSHIP
Aaron Lazarus
Chief Executive Officer
Ayana Martin
Chief Business Development Officer
Omeed Rahimi
Chief Operating Officer
Brad Keegan
Chief Science Officer

4. Dr. Jessica Beaver, Ph.D., R.A.C.
Director of Regulatory & Quality
Affairs, Keranetics
Dr. Steven Childers, Ph.D.
Director, Wake Forest Center for the
Neurobiology of Addiction Treatment
Dr. J.P. Strachan, Ph.D.
Medicinal Chemistry
SCIENTIFIC AND BUSINESS ADVISORY BOARD
Mr. Robert Anderson, M.B.A.
CEO, Causa Research
Dr. Peter Sheldrake, Ph.D.
Adjunct Professor, Wake Forest
University
Dr. Stan Mandel, Ph.D., C.P.A
Professor, Wake Forest University
Director, Angell Center for
Entrepreneurship

6. Great Unmet Need of Substance Use Disorders
• 24 Million Americans suffer from a drug
addiction and require treatment
• Nearly 8 million suffering from
Cocaine and Methamphetamine
• Substance Abuse has led to lost
Productivity Costing the United States
$700 Billion
• Only a Handful of FDA approved
Treatments
• None for Cocaine and
Methampehtamine

10. •Small group of companies historically
working in substance abuse
•Changing Landscape
•DSM-V listing addiction as treatable
mental disorder
•Affordable Care Act mandates all
addiction treatments must be covered
•Expansion of Medicaid
•Allow for new companies to enter this
space

12. ● Patented library of modafinil analogs invented at the NIH
○ Modafinil = FDA-approved for narcolepsy (safe & effective)
○ potential as a Stimulant Treatment (Wake Forest)
● Our compounds (developed by Amy Newman, Ph.D.):
○ ↑ selectivity for target = ↑ potency
○ unique binding at target = non-addictive
○ ↑ solubility = ↓ dose

13. Safety
&
Efficacy Compound 0
Modafinil
Compound 1
6g
&
Patented Lead
Compounds
2004 2012 2015
Driving Value through Targeted Chemical
Modification

14. Timeline to Value Creation

15. ● Currently, addicts are provided prescriptions off-label
○ Adderall
○ Ritalin
● Embera NeuroTherapeutics
○ EMB-001
Advantage:
■ Further along in development
■ $3.9 million in funding
Disadvantage:
■ Targeting secondary protein in pathology
■ Resources split between indications
The Competition: Current and Future

16. Best Case
Return
(First In Class
Medication)
$150-200 Million
Average Case
Return
(FDA Approval)
$65-100 Million
Worst Case
Return
(Fails after POC
Trials)
$30-35 Million
Revenue
0
10
20
30
40
50
60
70
Option
Agreement
Out-License
Upfront
Start Phase III NDA Submission NDA Approval
Revenue(InMillions)
Cumulative Milestone Payments
FINANCIALS

17. Stage 1: R&D $379,800
Stage 1: Manufacturing
Costs
$100,000
Operational Costs $148,000
Licensing Transfer Fee $2,000
Total $629,800
Maximum Time to
Complete Stage 1
96 Weeks
We will be asking for $800,000 Of
Grant and Equity Funding to cover
Our costs
Uses of Capital
FINANCIALS
Cumulative costs

18. NIH SBIR Grant $250,000
North Carolina Matching Grant $50,000
NC Biotech Company Inception Loan $75,000
Breakout Labs $250,000
Total $625,000
Potential Grant Funding
FINANCIALS

19. CAP Table
FINANCIALS
Pre Investment
Pre-Investment Post-Investment
Unit Holders Units Issued Valuation Ownership Ownership
Founders 840,000 $1,000,000 100% 51%
Employee Stock Pool 240,000 $400,000 29% 20%
Post Investment
Investors 336,000 $400,000 0% 29%
Total Issued 1,176,000 $1,800,000 0% 100%
Ask: $400,000 Equity Investment

20. 525 Vine Street
Suite 210
Winston-Salem, NC 27101
Email: alazarus@encepheal.com
Phone: 609-217-7517
Website: www.encepheal.com