Biomedical Designs Introduces SmartCathXtraTM Providing • Catheter Placement Assistance • Catheter Tip Monitoring • Key Vital Sign Monitoring January 2012 1 Clinician’s Pain Problem Solution Inconsistent Catheter Placement Rapid and Sure Placement Assistance Catheter Migration Location Tip Monitoring Lack of Integrated Vital Sign Monitoring Technologies Integrated Technologies for Vital Sign Monitoring BI O MEDICAL DESIGNS 2 Integrated Technologies 3 Endotracheal Tubes and Clinical Issues ET's positioned too high in the trachea leads to inadequate respiration, potential brain damage, cardiac arrest and death. Placed too far down in the trachea the tube enters the main stem bronchus (airway pipe which leads to one of the two lungs). ET migration can lead to acute respiratory distress (ARDS). Tube clogging - lung secretions or other substances block the tube, tube kinks or patient bites on tube excessively. Unplanned extubations - the tube comes out of patient's trachea. Occurs in 10% adult ICU patients. Over 25% of ‘out of hospital intubations’ were reportedly misplaced, with 66% being misplaced into the esophagus. 17% placement errors within the ER setting according to data released by the CDC in 2004. Esophageal Intubation - tube is accidentally placed in the esophagus (food pipe) instead of trachea. Tracheal cuff overinflation leading to tracheal stenosis; 55% to 62% incidence of cuff overinflation 4 Nasogastric Tubes Used for Enteral or Nutritional Feeding Approximately 1,254,000 NG tubes are used for enteral feeding with the following clinical issues noted: 1. Lung placements – 3.2% - 40,000 2. Lung punctures – 1.2% - 15,000 3. Pulmonary Injuries – between 3,600 and 8,800 4. Deaths per year – 6,000 5 Nasogastric Tubes used for other Clinical Procedures Approximately 7.5 million additional NG tubes are used in the United States to: 1. decompress the stomach after abdominal surgery 2. To remove a poison or toxic substance from the stomach to obtain an aspirate from the stomach for analysis Clinical issues associated with these procedures include: Puncture of esophagus Lung injuries - 6 Societal Impact and Consequences of Endotracheal Tubes (ET) and Nasogastric Tubes (NGT) Lack of Integrated Monitoring ET- 300,000 annual cases of ventilator acquired pneumonia - $40,000 per incident = NGT - 65,000 annual cases of aspirated pneumonia - $28,000 -$40,000 per incident = BI O MEDICAL DESIGNS 7 Societal Impact and Consequences of ETT and NGT Lack of Integrated Monitoring - II >$100 million annual Lawsuits from misplaced or migrating nasogastric or endotracheal tube that led to either severe injury or death. The “gold standard” x-ray to confirm NGT placement providing a “ momentary snap shot” - Costs $62.5 million annually. ET x-ray –Annual cost $600 million. Unknown cost associated with NG tube placement and migration errors. Unknown cost associated with ET misplacements and BI O MEDICAL DESIGNS unrecognized migrations. 8 The Solution: A Smart Catheter System Nasogastric tubes ( NGT) Endotracheal tubes (ET) BI O MEDICAL DESIGNS 9 SmartCathXtra Technology Key Components Base Unit - Multiple Integrated Technologies Encapsulated RFID & Sensors for NGT or ET tip Reader to send key health parameters to the Base unit for interpretation and display. BI O MEDICAL DESIGNS 10 Emerging Markets 11 SmartCathExtraTM Key Product Features of System •Provides multiple parameters in “real time” for accurate placement assistance of catheters – pH, air pressure differentials, sound recordation through electronic stethoscope. •Provides multiple parameters in “real time” for continuous catheter tip location monitoring – pH/temperature, air pressure differentials, sound recordation through electronic stethoscope. •Provides integrated “real time” vital sign monitoring - for detection of complications - pH, core temperature, pulse oximetry to assess oxygen levels in patients, Co2-“side stream” for lungs, electronic stethoscope to monitor respiratory/pulmonary function. BI O MEDICAL DESIGNS 12 Biomedical Designs Developmental Timelines Conforming to FDA and Industry Requirements Stages of Development Process: Catheter Controller FDA Clinical Testing Deliverable SmartCathXtra Disposable units SmartCathXtra Controller with RFID Development FDA regulatory process during development cycle Patient Testing 300 Patients Cost $250k $1.1M $75k $1.6M 10 months Conducted during SmartCathXtra development 12 months Timing Provider 10 months 3 independent sites BI O MEDICAL DESIGNS 13 ROI Assumptions 14 Projected SmartCathXtra Sales NGT Application Projected Sales $70 Sales Revenue (000,000) $60 $50 $40 $30 $20 $10 $0 1 2 3 4 5 Year BI O MEDICAL DESIGNS 15 Projected SmartCathXtra Sales ET Total Projected Sales $120 Sales Revenue (000,000) $100 $80 $60 $40 $20 $0 1 2 3 Year 4 5 BI O MEDICAL DESIGNS 16 Proforma Income 1 2 3 4 5 $ 59,264 $ 101,377 $137,249 $ 173,121 $ $ $ $ $ 1,163 13,085 14,248 2,617 11,631 $ 2,617 $ 20,358 $ 22,975 $ 4,072 $ 18,903 $ 4,072 $ 27,631 $ 31,702 $ 5,526 $ 26,176 $ 5,526 $ 34,903 $ 40,430 $ 6,981 $ 33,449 24,982 $ 47,634 $ 82,473 $111,073 $ 139,672 $ 7,408 $ 14,816 $ 25,344 $ 34,312 $ 43,280 $ 17,574 $ 32,818 $ 57,129 $ 76,760 $ 96,392 $ 5,272 $ 9,845 $ 17,139 $ 23,028 $ 28,918 $ 12,302 $ 22,972 $ 39,990 $ 53,732 $ 67,474 Years REVENUE Gross Sales $ 29,632 Cost of Sales Beginning Inventory Cost of Goods purchased / manufactured Total Goods Available Less Ending Inventory Total Cost of Goods Sold $ $ $ $ $ 5,813 5,813 1,163 4,650 $ Gross Profit (Loss) Selling and Administrataive Expenses Net Income Before Taxes Taxes Net Income * Post market introduction (all numbers in $000) Net Present Value Calculation Discount rate Investment ($000) 0.05 2,500 NPV= $ 161,671 BI O MEDICAL DESIGNS 17 Biomedical Designs Key Personnel Suzanne Biddiscombe, B.A., M.A., CEO – 20 years in sales, marketing and pharmaceutical sales. Responsible for the day to day operations of Biomedical Designs, specifically sales and marketing. • David Decker – CFO; V.P. of Personnel Communications. A highly successful entrepreneur in multiple fields. Provided capital to develop the two prototype controller units that comprise the SmartCathXtra System. • Dr. Jimmie Spraker, Jr. CSO; PhD, EE – Co-inventor of technology. 25 years experience in hardware and software development and engineering. Jimmie’s entire 30 year career has been dedicated to the advancement of the biotechnology field. BI O MEDICAL DESIGNS 18 Biomedical Designs Key Personnel Philip Rowe - 30 years experience in science. Co-Inventor of Technology. Holds multiple degrees including one in nuclear medicine. Philip has invented numerous technologies and has received one patent to date. C. William King – BSEE, MBA , CEO and President of Essential Research, Inc., A high tech entrepreneur with experience in four startups since 1998. Bringing more than 50 new products to the market with a cumulative value >$250 million, including >12 new products requiring 510 k approval. Kimberly Chafee – Dr. Sandra Perez-Spraker, MD, RN. Worked for over 10 years in ICU’s and ER’s abroad. Consulted during the development on issues germane to ICU’s and Surgical Units for Adult and Pediatric Patients. BI O MEDICAL DESIGNS 19 20 Intellectual Property Status All Patent Filings* are Pending: Filing Date Nasogastric Placement and Monitoring System Medical Device Placement and Monitoring Device Utilizing Radio Frequency Identification (CIP) July May 2007 2009 * All filings have been published BI O MEDICAL DESIGNS 21 Capital Required Biomedical Designs, LLC has raised and invested $650K to date Clinical Testing and FDA approval are the next significant inflection points Amount: $3,700,000 to complete Structure: Membership interests based upon percentage. Timing: 1st quarter 2012 BI O MEDICAL DESIGNS 22 Exit Strategy Biomedical Designs, LLC is a catheter development oriented company, with these key objectives: Be a research oriented company advancing numerous proprietary catheter technologies to engage designed electronics. Within 24 months complete technology, testing and FDA approval. Within 30 months return the principal of investments plus percentage on sale of technology. Create liquidity through sale of completed technology to tube manufacturer, medical device manufacturer, or recognized industry leader in respiratory care or equivalent. BI O MEDICAL DESIGNS 23 Contact Information Suzanne M. Biddiscombe, CEO Phone: 678-794-5657 e-mail: Suzanne4sure@yahoo.com Please Review Video Demonstration BI O MEDICAL DESIGNS 24