HyGenesis preliminary investor pitch 2016

1. Proprietary Technologies
that reduce
Community Acquired Infections
Infection Control System
Rob Kosnik
robkosnik@hygenesis.com
(248) 342-8040
Bob Gillow
bobgillow@hygenesis.com
(248) 379-4638

2. Hospital Acquired Infections
Sources: CDC’s National Nosocomial Infection Survey (NNIS), New England Journal of Medicine,
Journal of the American Medical Association, Infection Control Today
Healthcare Acquired Infections: (HAI)
4% of Admissions
100,000+ Deaths/year
$43,000/Incident Expense
$147+Billion National Expense
Antibiotic Resistant Strains:
MRSA (1 of 3)
VRE
CRE

3. The Problem – Short-lived Technologies

4. MRS
A
Long-lasting Antimicrobial
• Mechanical Killing Mechanism
• Broad Spectrum / Non-Selective
• Cannot Genetically Adapt
Virus
Pathogens
Germs
Mold

5. The Solution…
Hand Armor (FDA Registered)
- Hours of Protection
Long-lasting anti-microbial protection!
Surface Armor
- Months of Protection
-Textile Armor
30+ Wash Cycles

6. Intellectual Property
Trade Secret – Considerations
 Patents are easy to copy
What is Unique?
 The HyGenesis Ingredients & Formulation Process
 What we use
 How it is formulated/mixed
Head Start to Market
 From Concept to Market = 2+Years

7. Technology Validation
 Henry Ford Health Systems
- American Journal of Infection Control (Peer Review)
 U of M – School of Public Health
- Xi Wu, Ph.D, Alex Ricard, Ph.D
- Letters in Applied Microbiology (Submitted)
 Beaumont/OU School of Medicine (In Process)
- Dwayne Baxa, Ph.D
- BCBS Study
 Customer Studies

8. HFHS – Infectious Disease Research
Source: Henry Ford Infectious Disease Research Laboratory – Dr. D. Baxa

9. Kill Time – U of M Study

10. Long-term Kill – U of M Study

11. Ambulatory Care – 4+ Years

12. Hand Studies
• 2010 Study*
• Study 1: Non-Alcohol vs. Alcohol Based
• 769 students (ages 5-12)
• 33% decrease in absences
• Double blind, placebo controlled study
• Study 2: Non-Alcohol vs. At-will Hand Washing
• 420 students vs. alcohol based hand sanitizers
• 41.9% decrease in absences
• 31.7% decrease in gastrointestinal illnesses
• 44.2% decrease in respiratory-related illnesses
* Dr. Shiyou Li, Cancer Research Professor, University of
Texas

13. Hand Sanitizer Market
Global Industry Analysts, Inc. 2015
US Market

14. Competitive Advantage
Kills
99.9%
Long-
Lasting
Hydro-
phobic
Sooth Odor Cost
Cost/
App.
Cost/
Day
Alcohol 11 .02 .86
Hand
Armor
.05 .10

15. Competitive Advantage
Kills
99.9%
Long-
Lasting
Hydro-
phobic
Sooth Odor Cost
Cost/
App.
Cost/
Day
Alcohol 11 .02 .86
Hand
Armor
.05 .10
Competitors Cost/App.
Goldshield .04
Qore24 .05
Prefense .07
fiteBac .10
PureBioguard .10
Skin Guard 24 .23

16. Target Markets
Ambulatory Care
Ambulatory Care:
• Out patient clinics
• Physician Offices
• Dental Offices
• Chiropractor Offices
• Urgent Care Centers
• Surgery Centers
• Public Health Clinics
• Imaging Centers
• Oncology Clinics
• Dialysis Centers
• Behavioral Health Clinics
• Physical Therapy
• Rehabilitation Centers
• Adult Day Care

17. Channels Partners Markets 2016 2020
Resellers Ambulatory Care $60-200K $7M
VARs & Ambulatory Care $40-250K $21M
Direct HNI/HNV Ambulatory Care $52-100K $3M
Distributors
Federal &
Commercial
$100-400K $12M
WEB Consumer $30-150K $2M
Private
Label
BacDefense Consumer $30-60K $4M
Go to Market - Channel Strategy
GLOBAL NUTRITION
$312K-1,160M $49M
Brian Whitne y, Inc.

18. Milestones
10th Channel Partner
20182016 2020
90th Channel Partner
Surface Armor
BCBS Study
1st Hospital
Textile Armor
Scale-up!

19. Management Team
 Bob Gillow – Founder/CEO (University of Michigan)
– Hospital Computer Center
– American Hospital Supply Corporation
– Alamance Knit Fabrics
– Military Veteran
 Rob Kosnik – Founder/COO (Albion BA, MSU MBA)
– Multi-Channel Sales & Distribution
– NASDAQ, SVP Sales & Marketing Catuity

20. Five Year Plan (000)
Income 2016 2017 2018 2019 2020
Sales 312 810 2,430 9,720 48,600
COGS 125 324 972 3,888 19,440
Gross Profit 187 486 1,458 5,832 29,160
Expense
Marketing 90 150 300 600 1,200
Sales Comp. 70 100 200 500 950
G & A 76 222 525 1,897 2,807
FDA/EPA 75 4 4 4 4
Total 311 476 1,029 3,001 4,961
Net -124 10 429 2,831 24,199
Exit = Merger / Acquisition

21. Funding Request - $350,000
$312K
Positive Cash Flow
Month

22. “Works Better / Costs Less”
Infection Control Solutions
Rob Kosnik
robkosnik@hygenesis.com
(248) 342-8040
Bob Gillow
bobgillow@hygenesis.com
(248) 379-4638

23. U of M Study - Video
The Treated Surface - 10% dilution of Hand Armor prior to challenge.
Both membranes were challenged with Staph.
Study: Co-funded by MEDC
Scale: 30um (micro meters)
Untreated Surface: Treated Surface:
Viable Pathogens Dead
Pathogens

24. Germs - Everwhere
44% – Patient Surroundings
22% – After Touching Patient
21% – Before Touching Patient
8% – Before Aseptic Procedure
5% – After Bodily Fluids