Global Market Opportunity $200B Worldwide Sales 250 Million cows need routine testing
• Udder infections (Mastitis) cost farmers more than $20B/year Bulk milk is discarded Incentive payments are lost Reduced milk production • A metabolic disorder (Ketosis) cost farmers another $6B/year Lower milk production • Conditions often go undetected for long time • Permanent damage due to delayed treatment
Inexpensive, Easy to use, On-Farm testing devices. Used for rapid detection of disease and early intervention. Somatic Cell Count (SCC) Test (Mastitis Detection ) NEW Udder Infection Test - LDH Ketone Test Formulations are protected by patents and a variety of trade secrets and proprietary synthesized chromogenic agents.
• 2011 & 2012 National Platinum Dairy Quality Award Winner • 2012 MMPA (MI Milk Producers Assoc.) Best Quality Milk Award • 250 cows
Production Level (lbs/cow/year) Somatic Cell Count (cells/mL) 30,000 Lower is better 250,000 3x milking 20,000 100,000 40,000
ROI = $262,000.00 • Increased income: $260 bonus+$800 additional production/cow/yr = $1,060/cow/yr • $10.00/cow/yr SCC test costs • ROI = $262,000.00 • Plus: • Improvement in overall cow health • Quicker breeding times • Less time & $ treating sick animals
Key Features CMT PortaCheck Lab Analyzers Delaval On Farm ʘ ʘ ʘ Easy to use ʘ ʘ ʘ Affordable ʘ ʘ Reliable ʘ ʘ ʘ Quantative ʘ ʘ ʘ Time to result ʘ ʘ ʘ
10,000 dairies; Large Dairies 15 mill cows >500 cows Average 750,000 dairies; dairies 112 mill cows 11-500 cows Micro 65 mill dairies; “dairies ” 130 mill cows < 10 cows
• Distribution: Manufacturers reps, wholesalers, retailers • Strategic Alliances: Dairy processors, Animal health companies • Licensing Opportunities : Private label
Inflection Point • Founded as research business • Ten years focused solely on research • Strategy Shift in 2011: become leader in on-farm diagnostics for dairy industry • Three consecutive years of consistent sales growth validates market demand • Outside investment needed to fill gaps, invest in sales strategy and accelerate growth
Michael Gavin – President/CEO • 25 years of diagnostic industry experience. • Commercialized more than 20 diagnostic products David Lee - Dairy Advisor • 35 years dairy industry experience • Dept. Head, Rutgers Cooperative Extension & Research Art Healy – Financial Advisor • CPA and Attorney with 13 years in public accounting • 13 years CFO for early stage companies Key Hire – Director of Marketing and Sales • With Extensive Dairy/Ag Experience • Experience with Distribution Management • International Experience a plus •
Marian Fabis, MVDr, PhD Consultant, Veterinary Diagnostics and Nutrition, Slovakia Nathaniel Makoni, PhD President, ABS TCM Ltd., Kenya Ignacio Pino, DVM President, CDI Laboratories, Puerto Rico Dr. Peter Zieger National Veterinary Specialist, Cattle Pfizer Animal Health Germany GmbH
• LDH – Launched Q4 2012 • New Somatic Cell Counter • Whole Blood Calcium - 2013 • Whole Blood Mineral Panel - 2014 • Whole Blood BHB • Laminitis Treatment
Fiscal Year 2011 2012 2013 2014 2015 2016 2017 1,060 1,280 1,522 2,5417 6,712 23,518 60,850 Total Revenue (260) (23) 50 (800) 1,994 13,225 34,000 EBIT Pre Money Valuation = $4M Seeking $1.5M in New Funding
Use of Proceeds • Fill gaps – Sales & distribution channel leadership – Production management • Implement targeted regional sales and marketing plans • Pursue strategic partners / licensing opportunities • Enhance manufacturing capacity
Exit Strategy • Acquisition by animal diagnostic company – IDEXX acquired RADIL in 2011 – Neogen acquires Scidera, Geneseek, others – DSM acquires 10 companies since 2010 • Acquisition by competitors / strategic partners • Typical Med-Tech Acquisitions – 3-4X Revenue – 8-10X EBITDA
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