MagCorp provides a medical authorization solution called MED1 that automates Medicaid eligibility transactions, cutting response time from 5 minutes to 2 seconds and saving customers over $25,000 per month. The solution involves installing a small, remotely managed computer appliance called a P1 that uses MagCorp's proprietary SheerPower and SPINS software to quickly and securely access eligibility data without printing screens. MagCorp aims to sign up 40,000 medical providers as customers by offering a free 14-day pilot program and low monthly subscription fees without long-term commitments.

1. Medical Authorization Solutions
MAGCORP
June 2012

2. MAGCORP
MagCorp's service speeds up, automates, and saves significant costs for
Medicaid Eligibility Transactions, focusing on performance and privacy:
Like Dial-up to High-speed Cable
No goin’ Back!
Scalable Model always Unique Combination
profitable Hard to Resist
66M Patients
Benefits Seen
300,000 Providers
from First Login
2Billion Txns
Prospects don’t go away ‘til
they signup!

3. MAGCORP
1-Speed, 2-automated Eligibility answers, 3-data storage
We fix Cloud performance problems by automating the process
Once the MED1 is installed, Customers will immediately see
◦ 5 minutes cut to 2 seconds
◦ Automatic Eligibility Answers: Yes/No/Maybe
◦ All Patient Data Stored Locally without printing screens
 Private, secure, local
And
◦ They’ll Save $25,000 or more from first month on
 Time, errors, denials, printing, filing, retrieving

4. MAGCORP
 We Loan all the HW/SW for each MED1: no purchase, only service
◦ Start with 14-Day Pilot to show speed, benefits
◦ Convert with $995 Registration Fee
◦ One-page agreement for all phases of customer relationship
◦ Month-to-month only, no commitments
◦ Pay first full month at 45 days or go back to being slow, manual, error-prone,
“papered up”
◦ 5-minute Heartbeats, 60-minute database reporting to insure uptime
◦ Automated 30-day billing
 The key to our Unfair Advantage is that this HW/SW combination
◦ can exist on a small, remotely manageable platform and
◦ can address customer performance and feature issues that would otherwise be ignored.

5. MAGCORP
 Technology: Field-tested over a year: 4 sites in Washington
◦ Win 7 PC with SheerPower, SPINS, “P1” = Medicaid Eligibility Appliance
◦ VPN mgmt, External Hard Drive / Flash Drive for Patient Data [HIPAA focus]
 Sales: Contacting 99 hospitals in Washington for Pilots in March
 Team is ready to jump in upon basic funding
 First Target Audience: 40,000 Providers – same webservers
40,000
Targets
 We are evaluating the Medicaid Electronic Health Records (EHR) Incentive
Program: if certified, the Feds would pay cash to any Medicaid provider to
use our gear / services: this could make a compelling offering even more so…

6. MAGCORP
 Technology 30 years in the making:
◦ Touch Technologies, Inc. founded in 1982:
 Software design / invention / patent licensing / consulting company
◦ Built SheerPower for $4.5M in 98-2002, SPINS for $240K in 2003
◦ SheerPower is the smallest, fastest database engine on the market
◦ SPINS [SheerPower Inter Net Server] is webserver add-on
◦ Long-standing TTI client wanted a solution in 2009 for coming Medicaid webservers
◦ TTI designed and built what we call the “P1” application in a month for $15K
◦ Suggested that Mr. Myers create a sales/marketing/support company to market this
nation-wide, with an exclusive software license agreement for All Medical
Applications
◦ TTI is SW partner, provides technical and product development support

7. MAGCORP

8. MAGCORP
 Prospects may not jump at first chance, not knowing how good this solution is
 It is a unique solution to Cloud performance problems
 No one else has the software tools to do this readily, And
 If you don’t have a local processor installed, you can’t do this
 On top of our technology answer, we crafted an innovative marketing
approach
 A. Ease of sign-up, B. no real “evaluation”, C. no product purchase are Keys
 All other medical software companies around Medicaid are doing large
application sets – and they take months to sell, evaluate, implement
 Our solution is “invisible” to our users – just faster and easier
 We will not “usually” disclose the technical details – it’s an Appliance

9. MAGCORP
 Marketing with lower profile at the start
 Direct Sales to hospitals, pharmacy chains, larger clinic groups
◦ Smaller customers done via telesales, internet sales follow-up
 Easy to consider, easy to Pilot, easy to sign-up – Hard to resist!
◦ We loan a $500 PC “Appliance” with all SW, remotely supported at low costs
 There are 2000 to 20,000+ providers per state, and 50 states
◦ Each server bills at $2500 per month [avg.]
◦ But Saves over $25K per month for the average clinic -- $100K/Hospital
◦
 These transactions are $40 apiece, We Save $10 each and charge $1
 40 Million transactions in Washington State yearly, 2+ Billion nationwide
 We will hit 25,000 customers before we worry about branding

10. MAGCORP
 TTI partnership / product completeness means we are ready for business, long past initial
product development, just tailoring to new State configurations
 Over $250,000, the amount of investment we take in will determine the speed of our
rollout: primary use of funds over that level will be additional field sales executives
focusing on major customers in more states, then more service and support folks
 Our plan is very scalable: small startup team, add resources as needed
 Net-net is 50+%: allows “relevant” discounting
 Key employee compensation a combination of higher salaries, non-taxable additions
 Exit is investor buyout by corporation, corporation stays private.
2012 2013 2014 2015 2016
Customers 2000 9000 24000 45000 73000
Revenue $14 $108 $386 $820 $1,400
Expenditure $4.9 $38 $134 $288 $493
Profit $9.1 $70 $252 $532 $907

11. MAGCORP
◦ Daniel Myers, CEO
 With a 30-year background in Technology Consulting, Sales, Marketing, and Management,
Daniel Myers is a proven contributor, manager, and consultant. Broad operational experience
ranging from marketing, business development, and project management to customer support
operations coupled with experience in all key information technologies.
◦ Daniel Esbensen, Chief Scientist
 40 years of system design, implementation, support, management. Has held teaching positions,
given regular seminars, worked with HP, DEC, IBM and other major vendors over the years.
Founder, CTO, and President of Touch Technologies, Inc. (1982 on), holder of many design
patents
◦ Linn Whiteside, Operations Director
 Day-to-day operations, human resources, accounting and payroll, supporting marketing and
sales tools, corporate communications. Background is in business consulting, coaching, fund-
raising and communications, working with various Silicon Valley Companies and CEO’s over
the past 14 years.
◦ Key Advisors:
 John Zott – Finance
 Jobie Flores – Sales, Marketing