The developed Pulse Wave Analyzer is a personal health monitoring tool which can be integrated in a cell phone, web camera, computer mouse, or operate as a stand-alone device

1. Consumer-Oriented Pulse Wave Analyzer (PWA)
June 2011
Len Malinin 617 304-1690

2. Business Overview
Production ready prototypes
• The developed Pulse Wave Analyzer is a personal health monitoring
tool which can be integrated in a computer mouse or operate as a
stand-alone device connected to the USB port.
• Heart Rate Variability, together with the form of the pulse wave,
characterize the status of the cardio-vascular system (CVS) and
stress level of the user. The device reports to the user the principal
characteristics of his/her CVS, or assigns the user a score on the
scale from 0 to 100 and compares this score with a baseline for the
user. Additional applications include monitoring of stress, alertness,
OpticalSensor
Optical Sensor
drug side effects.
• The device is positioned as a consumer, not medical, product.
• Addressable market in the US: $550 million. Profit margin, at
volume production, is more than 70%.
• When presented at MIT Start-Up Clinic, 20% of the attendees
expressed interest in buying the device in its current shape.
• Further source of revenue is licensing of the technology to strategic
partners.
2 Confidential

3. Unmet Market Need
• Sedentary life style, high stress, fatigue, overweight and obesity adversely affect cardio-
vascular health of US residents.
• To prevent complications and to alert a person to change the lifestyle, it is vitally important
to have an easy-to-use and unobtrusive instrument for continuous monitoring of the status
of cardio-vascular system.
• As of today, there are no consumer-oriented Pulse Wave Analyzers on the market. This
unmet market need is fulfilled by the proposed technology.
3 Confidential

4. Product & Technology
Relaxation Contraction
Principle of Operation
Relaxation
of heart muscle Vessel
Detector IR diode
Pulse wave
Contraction of heart
muscle and vessels
4 Confidential

5. Product & Technology
• An infrared emitter and sensor in the device are used to register pulse wave at the finger.
• In the existing prototype, the sensor signal is amplified, pre-processed and fed through the USB port to a
personal computer. The signal can also be sent wirelessly to a PDA or a remote server.
• In the PC, the signal is further processed to extract three groups of pulse wave parameters:
• The heart rate and heart rate variability (HRV indicates tension, stability and balance of the autonomic
nervous system)
• Durations of the four phases of PW (indicate tonus and strength of the heart muscle)
• Position of the reflected wave (related to elasticity of blood vessels)
• An overall score, derived from these parameters, or the whole set of parameters are then presented to the user
and compared with normal (reference) values for the respective age group.
• A correlation between the overall score and status of cardio system has been confirmed in numerous trials.
Heart rate
Sy
Pa m
ra pa
s ym th
et
pa ic
t he ac
tic tiv
ac ity
One of conclusions of the HRV analysis is t ivi
ty
estimate of the balance between the two branches
HRV
of the autonomous nervous system (ANS)
5 Confidential

6. Market Size and Growth Trends
As of today, there are no consumer-oriented Pulse Wave Analyzers on the market. A close product
categories are Heart Rate Monitors and computer mice. While the developed PWA offers functionality
exceeding that of either an HRM or a mouse, both can be taken as proxies.
More than 15 companies market heart rate monitors:
• Polar, Sunnto, Cardiosport, Nike, Reebok, Timex et al.
• The leading company, Polar, had net sales 140 million Euros (2003)*, 162 million Euros (2004)**,
reflecting a market size of 400 million Dollars***
• The second leading company in the market, Cardiosport, has $8.5 million sales with a 41 percent
increase over 2002.****
• In 1998 the HRM market was a $40M industry with estimated growth 15% per year*****. The
today’s 400 million market size implies Compound Annual Growth Rate of 26%.
• CAGR of a similar category, Wearable Computers for HealthCare/Bio-Monitoring, was estimated
between 91.5% and 150%.******
*www.pursuit-performance.com.au/polar/html/polar/about_polar.html
**www.us.design-reuse.com/news/11558/nordic-has-completed-asic-polar-electro-oy-intelligent-sports-equipment-platform.html
***www.alterna-fitness.com/images/Alterna_Presentation.ppt
****http://antilium.engin.umich.edu/pdf%20files/APD-2003-08.pdf
***** Frankel, Alex. Tracking the Heart to Train the Body, New York Times. Jul 2, 1998. pg. G.10. Available at:
http://query.nytimes.com/gst/fullpage.html?res=9F03E0D6113FF931A35754C0A96E958260&sec=&spon=&pagewanted=2
******Rick Barnard, J. Timothy Shea, How Wearable Technologies Will Impact the Future of Health Care
In: Wearable Ehealth Systems for Personalised Health Management, By Andreas Lymberis, Danilo E. De Rossi (Eds). IOS Press 2004, ISBN:1586034499
6 Confidential

7. Market size estimate based on Heart Rate Monitors
US population participation in selected activities*
Household Total, millions
Age The addressable market includes users
Activity Income
> 18 years who are 18 years or older, engaged in
> $75K/year
physical activities, have household
Aerobic 11.8% 13.1% 4.6374
income over $75K/year, own an HRM
Exercising
and replace it every 7 years.
Bicycle Riding 10.0% 17.4% 5.22
Running / 8.2% 11.1% 2.7306
Jogging
Total = 12.6
*50% = 6.3
*US Census Bureau. Income, Poverty, and Health
Insurance Coverage in the United States: 2005
The US population is approximately 300 million people, with 75% of the population 18 years old or older and
28.3% of households making over $75K per year. Of individuals participating in cycling, running, or multisport
activities, approximately 50% already own a HRM. Then the total market size for HRMs is 6.3 million units.
Assuming the average individual purchases a new HRM every 7 years, this yields an average annual market size
of about 900,000 units.
At an industry-wide average unit cost of $225 per unit, this equates to an estimated annual market size of $202
million.
Additional revenues can be based on monthly subscription to data processing and user’s monitoring.
7 Confidential

8. Market size estimate based on after-market computer mice
After-market computer mice: U.S. Sales*
The addressable market includes users
who are 18 years or older, engaged in
physical activities OR obese, have
household income over $75K/year, and
purchase after market computer mice.
All figures in millions. Source: Mouse Information: IDC Report December
2002/US PC revenue information: Gartner Dataquest Report October 2002/PC
Sales Information: eTForecasts Market Research Report May 2002.
*http://www.cyberhand.com/investorrelations.htm
Of the total US population of 300 mln, 12.6 mln are fitness-oriented, >18 years old, and live in households making over
$75K per year. Applying the 12.6/300 ratio to the 21.6 mln units sold, the total market size is 840,000 units/year (similar
to the estimate based on HRM market).
Since the PWA does not require any level of fitness to be used, an additional segment is obese adult Americans (39
million)*. This segment roughly doubles the market size (additional 736,000 units, based on the computer mouse
market).
At an industry-wide average unit cost of $225 per unit (for HRM), this equates to an estimated annual market size of
about $355 million.
Additional revenues can be based on monthly subscription to data processing and user’s monitoring.
Yet another big market segment is comprised of teenager users of video games, whose stress level can be monitored by
the device.
*http://www.secinfo.com/d11MXs.2A9u.d.htm
8 Confidential

9. Competitive Advantages
• As of today, there is no low cost, user friendly, consumer oriented Heart Health & Stress Assessment
Device on the market. The developed technology enables high quality Pulse Wave Analysis in a low cost,
small volume device.
• The production ready prototype provides fast to market advantage.
• The Pulse Wave Analyzers available for purchase over the Internet or in the doctor’s office are either
expensive, or oriented for R&D rather than consumer applications, or determine only some parameters of the
pulse wave (such as pulse wave velocity or heart rate variability). The developed PWA offers comprehensive
analysis of the PW and therefore more reliable and versatile assessment of status of the cardio-vascular
system (CVS).
• The low cost, high quality PWA can serve as a platform for multiple applications, such as monitoring of
stress level of children playing videogames, traders at financial institutions*, monitoring side effects of pain
killer drugs** et al. The latter one alone offers significant savings for the pharmaceutical companies.***
• The technology is protected by national patents and know how. Additional patent applications can be filed
for specific application areas.
*http://mitsloan.mit.edu/faculty/pdf/physiology.pdf
**http://www.egms.de/en/meetings/ice2006/06ice132.shtmll
***http://money.cnn.com/2006/04/06/news/companies/merck_outlook/index.htm
9 Confidential

10. Competition. Medical office equipment
Measurement of HRV usually requires a high-quality electrocardiogram (ECG) with a sampling rate above 250 Hz and an
accurate algorithm to detect the QRS complex. The cost and the complexity of this equipment, however, made the HRV
.
analysis difficult outside the laboratory.
Vessel stiffness Heart Rate Variability Arterial Oxygen Saturation
*www.nellcor.com/prod/pulseoxtech.aspx
SphygmoCor HRV* (AtCor
The VitalSines Package* Medical )
Uses a 3-lead ECG to non-
Measures changes in wave Nellcor® OxiMax® Pulse Oximetry
invasively assess sympathetic
reflection properties caused by System* (Tyco Healthcare)
and para-sympathetic
increased stiffness of arterial walls.
autonomic function in the time Other pulseoximeters:
and frequency domains.
The VitalSines System is
$1995.00 CAD + 7% GST. *www.atcormedical.com/sphygmocor_hrv.html
*www.vitalsines.com/products.htm
Note. Pulse oximeters show pulse wave, but do
not determine pulse wave parameters. Pulse
oximeters provide an indirect measurement of the
arterial oxygen saturation (SaO2).
10 Confidential

11. Competition. Consumer products
BPro® device impinges upon the radial
The Digital Pulse Analyzer
artery over the radius bone to measure PW
estimates PW velocity and
and evaluate Central Aortic Systolic
arterial wall stiffness. “The
Pressure (CASP) and radial Augmentation
price for quality used DPA’s
Index (rAI)
range is $3-8K”
http://www.digitalpulsewaveanalyzer.
com/
DanTest offers a range of devices that measure PW and ECG and evaluate
balance of ANS, stress level, cardio health and other parameters, for
research and educational purposes (as opposite to the proposed consumer
product).
http://www.cardiograde.com/technology/
11 http://www.dantest.com/dtp_hardware.htm Confidential

12. Competition. Consumer products (cont’d)
The available biofeedback devices lack the proprietary solutions that allow the proposed PWA to record the fine shape of the
PW. Because they are based on a crude signal, these devices “simply tell user when to breathe”.
Crude shape, not differentiated PW
The emWAve The StressEraser Fine shape (proposed device)
http://www.amazon.com/StressEraser-SE-1-Portable-Biofeedback-Device/dp/B001B8PIIE/ref=sr_1_cc_1?s=sporting-goods&ie=UTF8&qid=1319552612&sr=1-1-catcorr
http://www.amazon.com/emWave-Personal-Stress-Reliever-Silver/dp/B000IHX9U8/ref=sr_1_cc_2?s=sporting-goods&ie=UTF8&qid=1319553083&sr=1-2-catcorr
The Polar Heart Rate Monitor determines
HRV, without analysis of the shape.
Instant Heart Rate for Android
measures heart rate using built-in Polar RS800CX G3 Heart Rate Monitor
video camera (without any $375.49
external hardware). This
relatively crude application, while
providing limited information
(heart rate only), reflects interest
of the prospective audience to
monitoring the conditions of CVS
(>250,000 downloads,
http://www.appbrain.com/app/instant-heart-
rate/si.modula.android.instantheartrate) Heart rate, speed, average speed, distance,
and heart rate variability (HRV)
http://www.amazon.com/Polar-RS800CX-Multi-Heart-
Monitor/dp/B003RZ96IW
12 Confidential

13. Competition
Company Products Application Price, $ Comments Advantages of our
device
Biocom Technologies •Heart Rhythm Scanner PE Health Assessment $2795 Geared towards R&D users. Broader applications, lower
•HRVLive! $2595 Site not updated since 2008 cost
www.biocomtech.com •Inner Balance Scan 2.0 $795
•Heart Tracker Home Stress Management $295
•Heart Tracker Professional $1795
HeartMath •emWave Desktop Biofeedback $249 Raised in Oct. 2010 $1.1 mln Higher quality signal,
www.heartmathstore.com •emWave Health $655 from two “socially application not limited to
Professional responsible” funds. biofeedback.
Yolo Medical Digital Pulse Wave Analyzer Basic PW analysis price of “used Does not use external Broader applications, lower
www.digitalpulsewaveanal DPA” is $3- computer cost
yzer.com 8K
CardioGrade BPro® •Central Aortic Systolic Device impinges upon the No impingement of the artery.
www.cardiograde.com Pressure radial artery over the radius With BPro®, may be hard to
•Radial Augmentation bone to measure PW get a good signal.
Index
DanTest HW5, HW6, HW8 •ANS Balance The products are designed to Consumer product
•QHRV Prof’l •PW Velocity monitor physiology for
http://www.dantest.com/
•QHRV Lite •Stress Assessment research and educational
purposes
•QHRV Live •Fitness Test
•QHRV Corporate •ECG Analysis
•QHRV Fitness •Biofeedback
•Overall Health Level
WPI application for Android Heart rate Free, or $3 Uses built-in video camera A cell phone produces
www.appbrain.com/app/in as a sensor. Does not need relatively crude signal,
stant-heart- additional hardware. suitable only for heart rate.
rate/si.modula.android.inst
antheartrate
13 Confidential