Our mission is to establish a new standard for efficiency, accuracy, and diagnostic yield in remote cardiac monitoring.VivaQuant is a digital health company with unique proprietary technology that provides fast, accurate, and efficient heart rhythm monitoring and reporting services from patients as they go about their normal everyday activities. We all know someone that has been asked by their doctor to wear a monitoring device to evaluate their heart rhythm. When this happens, VivaQuant is working behind the scenes with a high-tech wearable solution that assures that patients are getting the best care possible. Our FDA-cleared RX-1 Remote Cardiac Monitoring System provides high clarity ECG strips, insightful reports, a fast and accurate diagnosis for the physician, and a comfortable and satisfying experience for the patient. Our Medicare-certified monitoring center, located in Plymouth, MN, provides around-the-clock vigilance on monitored patients to assure timely service and patient care.
Our team has more than 125 years’ combined experience in medical devices and has successfully grown companies from startup to more than 250 employees and positioned for successful liquidity events. We are addressing markets that together represent an opportunity for VivaQuant of about $1 Billion. The company has an FDA-cleared product, is currently generating revenue, and as of June 30 has a backlog of firm orders of about $630,000. The company is at an inflection point, is positioned for strong near-term growth, and its technology platform will enable rapid growth well into the future.
VivaQuant is cultivating three revenue streams: a) Remote Cardiac Monitoring Services, b) Research Services, and c) Technology Licensing and Development. These three revenue streams are synergistic, mitigate risk, and leverage our proprietary technology and medical device development expertise.
Patients wear our FDA-cleared RX-1 device while they go about their normal activities for up to 30 days, but typically for about 15 days. During this time RX-1 identifies rhythm abnormalities and forwards the ECG strips to our monitoring center via the cellular network. Certified ECG technicians at the monitoring center review the ECGs and create a report of those strips that can be helpful in guiding the physician to provide the best care possible for the patient.
VivaQuant’s unique design and patented (22 issued, 10 pending) wavelet analytics and artificial intelligence extracts information more quickly, accurately, and efficiently than traditional technologies and provides superb ECG clarity for quick and easy review. In addition, our technology makes it possible for us to provide a small one-piece wearable device with long battery life that is simple to use and comfortable for the patient. The efficiency of the RX-1 also greatly reduces monitoring center costs and allows us to offer our service to clinics and hospitals under a partnering model that puts physicians in greater control of patient care and captures more insurance reimbursement.
In addition to providing remote cardiac monitoring services, we analyze ECGs collected in research studies performed by the pharmaceutical and medical device industries to assess heart safety and effectiveness. Our services have been provided to NAMSA, Merck, U.S. Army, Medibio, LivaNova, Setpoint Medical, CorDynamics, Complexa, Karos, Amgen, Grunenthal, and others. The verified accuracy and performance of our technology has led to a 5-year research collaboration with the U.S. Food and Drug Administration (FDA) targeted at improving the accuracy of drug cardiac safety assessment. We believe this business represents a $150 M opportunity for VivaQuant.
We license our technology and provide design services to companies with applications which we will not commercialize ourselves. For example, we have provided an algorithm to Adidas (Herzogenaurach, Germany) to measure heart rate in an athletic clothing, an algorithm to Heart Hero (Denver, CO) to detect abnormal heart rhythms in a defibrillator, and we have provided an algorithm to Cardionomic (New Brighton, MN) to remove stimulation noise in ECGs in patients undergoing a new neurostimulation therapy. This business represents a multi-million-dollar opportunity.
VivaQuant is at an inflection point and poised for strong growth. Our technology is proven, our RX-1 device is cleared for marketing by the FDA, we initiated a limited RX-1 launch in April, and plan to start scaling up in July. We project revenues of $1.4 M and near break-even cash flow in 2019 and 2020 (December 31 year end). As of June 30, we have a firm order backlog of $630,000. Proceeds from the MNvest offering will be used for marketing, sales, product development, and general business purposes.
We believe we will achieve positive cash flow in 2021 with sales growing to about $45 M in 2023. The premoney valuation of this offering is $15 M, about a 60% discount relative to valuation computed from discounted cash flow and future EBITDA. We are targeting a liquidity event within 5 years and expect that investors will receive an annual rate of return of at least 25%. Our team will work tirelessly to make this happen.
© 2019 Vivaquant. All rights reserved.
You must login to view the details of this offering.
