Oxys stonegate deck august 2014 redchip
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OxySure Systems, Inc. (OXYS)
Corporate Presentation August 2014
2
Forward Looking Statements
The following may contain forward-looking statements that involve risks and uncertainties, including uncertainties associated with the medical device industry. Except for the historical information contained herein, the matters set forth in this communication, including statements relating to our growth strategy, financial results, product approvals, and development programs, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. You should not put undue reliance on any forward-looking statements. Important factors that could cause actual performance to differ materially from the forward-looking statements we make include: range of treatment options, clinical applications, and market acceptance of products and other risks detailed from time to time in our filings with the Securities and Exchange Commission. Our actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors.
3
Introduction
Medical Device Company Mass markets
• Business • Consumer
Launch product • OxySure Model 615 • FDA approved, OTC • CE Marking approved
Oxygen from Powder Dry, Inert, Safe: Oxygen on demand
Ready Market AED Companion Market
• US: 2 million unit installed base, growing 8% annually
• Worldwide: 3 million unit installed base, growing 10% annually
4
OxySure Model 615: It’s About Time.TM
• Non-Compressed Source • No Training required • Safe • No Prescription Required • Lightweight • Disposable Cartridge • Easy Operation • 6 liters per minute, 15-20
minutes • 99% + Medical oxygen • Rest is moisture
Advantages Benefits & Features
• Safety • No maintenance required • No hydrostatic testing
required • Can be shipped "rescue
ready" • No licenses or permits
required • Ideal AED companion
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We’re Saving Lives!
2,500+, and counting!
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Where is OxySure needed?
• “Bridging the Gap” • Gap = Emergency Onset Arrival of First
Responders • USA Today: Gap is 6 - 15 Minutes • AEDs Address This Gap
“OxySure enables a loved one, bystander or even the person himself to provide oxygen while awaiting the arrival of emergency medical responders.”
Dr. Vincent Mosesso, University of Pittsburgh Medical Center Founder, Sudden Cardiac Arrest Association (SCAA)
7
Just like AEDs…
– Average Price: $1,500 (started in $5,000 range) – Batteries and pads replaced every 2 years ($400)
USA, approx. 2 Million units – Growing approx. 8.8% p.a. $1.7 Billion in 2015, USA only ROW, approx. 3 Million units – Growing approx. 10% p.a.
*Rise in demand for AEDs from alternate care and public access segments fueled by Legislation: (1) Cardiac Arrest Survival Act (CASA) (2) State Mandates; and Increasing awareness.
Automated External Defibrillator (AED):
Units sold and pre-positioned since 2001:
8
Just like AEDs…
Except… 300x more likely to need
Oxysure vs. AED!
9
Problems w/ Existing Emergency Oxygen
• Compressed Cylinders – Explosion hazard – Heavy – Expensive to purchase and maintain
• Chemical Generators
– No widespread consumer application – Produces high heat – Explosion hazard – Highly toxic
• Costs – Range $369 - $899 (OxySure Model 615 - $349)
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• 20,000,000 OSHA Compliant Buildings • 116,000,000 Homes and Apartments • 7,000+ MRI Centers • POC Markets, Alternate Sites • 100,000 K-12 Schools • 6,000,000 Residential Swimming Pools • 925,000 Restaurants • 350,000 Manufacturing Facilities • 325,000 Places of Worship • 16,000 Golf Courses • Airports, Public Use Facilities, Sports Facilities
Where is OxySure Needed?
“Placement” Markets
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Who Needs OxySure?
• Cardiovascular Disease – 40 Million Diagnosed – 40 Million Undiagnosed
• Chronic Obstructive Pulmonary Disease (COPD) – 16 Million Diagnosed – 14 Million Undiagnosed – 1.6 Million on Long Term Oxygen Therapy (Back-up)
• Asthma – 22.3 million • General medical & civil emergencies • Travelers to higher altitudes • Private pilots – 400,000 • Over 50
“At Risk” Markets
12
How Do We Sell?
OxySure
Distributor Reseller Strategic Accounts Teams
Sales/Marketing Support
Marketing support: Trade shows Media National Safety Congress, ECCU (US) Industrial Hygiene News Medica (Germany) Sports magazines RETTMobil (Germany) Education newsletters Hospitalar (Brazil) Online
13
Where Are We Today in US?
Municipalities
Manufacturing/Commercial
Churches/Places of worship
Colleges • U Texas, Purdue, Michigan State, etc.
K-12 education • 40 States+
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Where Are We Today Outside US?
Others pending
Hong Kong, Macau, Chile
Netherlands, Belgium, Luxembourg
Australia, New Zealand, UK
Brazil, Turkey, South Africa
15
Manufacturing/Operations
GMP / ISO 13485 Scalable
100% Made in USA
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Product Diversification
Model 615
Wall boxes
Resuscitation bags Thermal bags
Automated External
Defibrillators (AEDs)
Accessories
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Future product development
OxyPak Military Special Forces / Commercial First Responders
Self-Contained, Self-Rescuer Solution Mining / Navy markets (30 M + units)
Consumable Flex-Pak Sports & Recreation (100 M + units)
Aviation Lav units / specialty applications
Automobile market “Drop down” for deployment in any accident
Wound care / Skin care markets
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Key Facts Share Statistics
Trading Symbol.............................Other OTC:OXYS
Stock Price (as of 5/28/2014)…..........................$0.84
Shares Outstanding……..……………..…………25.97M
52wk Range...………………………………..$0.51- $0.90
3 Month Avg. Volume...…….…………………...19,013
Market Capitalization..….………………….…$21.81M
Enterprise Value..…………………................$22.09M
Financials
Revenue (TTM)……..……………………………..$1.92M
Operating Income (TTM) ………………...….($0.56K)
Cash Flow from Operations (TTM)…….($906.42K)
EBITDA…………………………………………....($427.38K)
EPS (TTM)……………………………………..………($0.03)
Cap Structure
Cash on Hand…………..…………………….….…$150.67K
Quarterly Cash Burn Rate…………………..........$200K
Total Debt……………………………...................$684.93K
Shareholder Equity…………..……….….….…....$2.77M
Other
Full-time Employees………......................................24
Fiscal Year Ends………………....…………….December 31
Website…………………………………………....oxysure.com
Corporate HQ………………..……………………...Frisco, TX
0.550.750.951.151.351.55
OxySure Systems, Inc. (OTCPK:OXYS) - Share Pricing
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FY 2013 Financial Highlights
• Revenues were $1.8 million, up 566% • Gross profit up 55.4%; gross margins up to 72.8% from 46.8% • G&A expense was down 3% • Notes payable down 26.3% to $349,975 • Working capital increased $2,173,647 to a surplus of $747,473 • Current ratio up to a healthy 1.88 • Stockholder equity increased by $2,339,709 • Net loss per share down to $.03 from $.06 last year
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FY 2013 Financial Results
47 $127
$270
73
$1,310
$1,800
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Gross margin (%) Gross profit Revenues
FY 2012FY 2013
Up 566%
Up 934%
Up 55%
Y/Y Results – FY13 v FY12 (in thousands)
21
FY 2013 Financial Results
14
$(1,426)
$916 $879 658 $748
$1,423
$2,352
(2,000)
(1,500)
(1,000)
(500)
-
500
1,000
1,500
2,000
2,500
3,000
Cash Working capital Stockholderequity
Total assets
FY 2012FY 2013
Y/Y Results – FY13 v FY12 (in thousands)
22
2Q 2014 Financial Highlights
• Revenues were $678,111, up 42% • Gross profit up $89,656 or 27.7% to $413,255 • Other income up 123% to $42,465 • SG&A up 26% to $689,248 • Net loss per share flat at $.01 for the quarter • Model 615 shipments up 65%
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2Q 2014 Financial Results – c
68
$324
$476
61
$413
$678
-
100
200
300
400
500
600
700
800
Gross margin (%) Gross profit Revenues
2Q20132Q2014
Up 42%
Up 27%
Down 10%
YOY Results – 2Q14 v 2Q13 (in thousands)
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Income Statement Trends ($ in thousands)
Annual Q1 Q2 Q3 Q4 Annual Q1 Q2
12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 12/31/13 3/31/14 6/30/14
FY12 FY13 FY13 FY13 FY13 FY13 FY14 FY14
Sales 270.4 240.4 476.1 545.8 538.0 1,800.3 356.2 678.1
YOY % Growth 46 % 747 % 655 % 428 % 612 % 566 % 48 % 42 %
Cost of Goods Sold 143.8 53.2 152.5 111.1 173.6 490.3 205.6 264.9
Gross Profit 126.6 187.2 323.6 434.7 364.5 1,310.0 150.6 413.3
Gross Margin% 46.9% 77.9% 68.0% 79.6% 67.7% 72.8% 42.3% 60.9%
Operating expense:
Research/Developmt 25.8 36.7 183.4 134.4 1.5 356.0 1.5 276.0
SG&A 1,239 364.0 259.0 344.2 475.0 1,442.1 433.7 413.3
Operating Income (1,138.2) (213.4) (118.8) (43.8) (112.0) (488.1) (284.6) (276.0)
Operating Income% (420.9%) (88.8%) (25.0%) (8.0%) (20.8%) (27.1%) (79.9%) (40.7%)
25
Target Growth Metrics
• US Automated External Defibrillator (AED) Market • US Base of 2 million units with 8% annual growth • ROW Base of 1 million units with 10% annual growth
• 10% companion OxySure Model 615 market share • US Base of 200,000 units growing 8% annually
$50 million revenues with 60% gross margins ROW: Base of 100,000 units growing 10% annually
$20 million revenues with 45% gross margins Worldwide base of 300,000 units growing 8.68% annually
$70 million revenues with 55% gross margins • Beyond AED companion market, “fire extinguisher market,” “At Risk” markets
$100+ million revenues with 55% gross margins
26
Growth Strategy Next 3-5 Years
• Grow distributors; US +
ROW • Grow strategic
accounts teams • Pursue legislation /
mandates • Aggressively pursue 3
million+ unit ‘AED companion’ market, and 100 million+ unit general placement markets
• Services
Grow Placement Markets Grow At Risk Markets New Vertical Mass Markets
• Pursue insurance
reimbursement (Medicare, private)
• Execute rolling short/long form commercial campaign(s) targeting 100 million+ US and 500 million+ ROW ‘at risk’ customers
• Services
• Military • Mining • Aviation • Sports/Recreation • Skin care • Wound care • Automotive
+ Strategic Alliances
27
Summary
• Rapid growth mode • Great market position • Intellectual property • First mover advantage • Key regulatory approvals in place • Large growing and natural markets • “No brainer” strategy to piggy back off of AED growth • Validated lifesaving emergency treatment • Future products, verticals and markets
28
OxySure Systems, Inc. OXYS: OTCQB
10880 John W. Elliott Road, Suite 600 Frisco, TX 75034 USA Tel: (+1) 972-294-6450 [email protected] www.OxySure.com
Stonegate Securities, Inc. Renmark Financial Communications, Inc. (214) 987-4121 (416) 644-2020 [email protected] Bettina Filippone: [email protected] http://www.stonegateinc.com/ John Boidman: [email protected] www.renmarkfinancial.com/
Contact Information
29
Appendix
30
OxySure Leadership
• Julian T. Ross, MBA – Chairman & CEO OxySure founder, technology developer (holds 9 patents) and CEO since inception 25+ years experience in technology, manufacturing, and finance Managed development of our production capabilities, partnerships and alliances, managed the development of
sales, distribution and licensing partnerships, raised in excess of $14 million in debt and equity to fund operations, and took OXYS public in 2011 through an S-1 registration with the Securities and Exchange Commission.
Other experience: Roll-up, technology companies; $315 million high yield debt offering (Merrill Lynch/Salomon Brothers in lead, plus Deutsche Morgan Grenfell, Nomura Securities)
• Jeremy “Jerry” Jones, Director 35+ Years in healthcare leadership Former Chairman/CEO of Apria Healthcare (sold to Blackstone for $1.7 billion) Chairman of On Assignment (NYSE: ASGN), $1.6 billion healthcare services leader
• Vicki Jones, MBA, Director 30+ years experience in management, sales, and customer service , in both B2B and B2C spaces. SVP for AT&T, runs $18 Billion TV and Internet business; leads a team of 18,000 people
31
OxySure Leadership • Dr. Vincent Mosesso, Jr., MD, FACEP – Advisory Board
Founder of Sudden Cardiac Arrest Association (SCAA) Medical Director for Pre-hospital Care at the University of Pittsburgh Medical Center (UPMC) Associate Professor of Emergency Medicine at the University of Pittsburgh School of Medicine "Physician of the Year," 1998, Pennsylvania Emergency Health Services Council
• Dr. James R. Winn, MD – Advisory Board 38 Years’ experience in the healthcare industry, both as a policy maker and as a physician in practice Former Chief Executive Officer of the Federation of State Medical Boards (FSMB) of the United States
• Dr. Thomas D. Franklin, Jr. – Advisory Board 40 Years’ experience in medical research, education and leadership Sr. Scientific Advisor to North Texas Enterprise Center for Medical Technology Former President of the Texas Health Research Institute
• Dr. Jonathan E. Burke, DMD – Advisory Board Significant experience in hyperbaric oxygen therapy and received an Attending Hyperbaric Medicine
Certificate in 1996 Oral and maxillofacial surgeon for the Philadelphia Flyers and Phantoms professional hockey clubs
since 1994 • Dr. R. Dean White, D.D.S., M.S. – Advisory Board
35+ Years’ experience in medicine and private practice Past President of the American Board of Oral & Maxillofacial Surgeons
32
Recent Milestones 2005 – 2014 FDA
approval (OTC), CE Marking, ANVISA
(Brazil), MOH (Israel)
2010-2006 Nine Patents Issued; Several Pending
2008 GSA contract approved
2013-2012 Recent Distribution Contracts: Medizon, Aero Health,
Grainger; Systemax; AED Professionals
2010 United Nations Vendor
Approved
2010 Expanded into Brazil, Turkey and South Africa
2011/2 Went public via S-1 (OTCQB:OXYS); DTC
Approval; DWAC Approval
33
Recent Awards
2011 MedVentures Award
2010 Lone Star Award for Innovation in
Respiratory Technology
2010 IMPACT Awards
2008 World’s Best Technologies
2008 Tech Titans Innovation Award
2009 Featured in Fortune Small Business and
CNN.com
2010 Featured news story on WFAA
Channel 8
2013 US Patent & Trademark Office selects OxySure to first United States Innovation Expo
at Smithsonian Museum
34
Sales
Awareness&
Education
Growth Catalysts
Legislation
OxySure Circle of Success
Insurance
Legal
Regulatory
35
Annual Trend Analysis
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OxySure Systems, Inc. (OTCPK:OXYS) - Gross Profit (FY) OxySure Systems, Inc. (OTCPK:OXYS) - Operating Income (FY)
OxySure Systems, Inc. (OTCPK:OXYS) - Total Revenue (FY)
36
Quarterly Trend Analysis
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OxySure Systems, Inc. (OTCPK:OXYS) - Total Revenue (FQ) OxySure Systems, Inc. (OTCPK:OXYS) - Operating Income (FQ)
OxySure Systems, Inc. (OTCPK:OXYS) - Gross Profit (FQ)