DtheraSciences
ExecutiveSummary-Nov10,2016
DtheraSciencesisapublicly-tradeddigitalhealthcompanybasedinSanDiego,CAthatisworkingto
improveQualityofLife(QoL)andreduceanxietyinpatientswithAlzheimer’sandDementia.The
CompanywasformedthroughthemergerofKnowledgeMachineInternationalandEveryStory,Inc.and
theacquisitionoftheSeniorsInTouchintellectualpropertyportfolio.
TheCompany’sleadproduct,EveryStory,isanartificialintelligence-poweredDigitalTherapeuticthat
collectsphotosandaudiofromfamilymembersandcreatescalmingvideostoriessenttothepatients.
TheEveryStoryproductispresentlyenteringaclinicaltrialwiththeUniversityofCaliforniaSanDiegoto
testitseffectivenessasascalableformofReminiscenceTherapy.
CapitalStructureAsofNovember8,2016
TickeronOTCPinks*:
KNMXD**TemporarystocksymboltillDec2016
Intheprocessofup-listingtoOTCQB
Newtickeralreadygranted“DTHR”
SharePrice:
$2.20
SharesOutstanding:
36Million
MarketCap:
$79million
ManagementOwnership:
39%
TemporaryStockSymbol:http://www.otcmarkets.com/stock/KNMXD/quote
DigitalTherapeutics
DigitalTherapeutics(sometimescalled“software-as-a-drug”)isanewsubsectionofdigitalhealththat
strivestodirectlydeliveratherapyviauseorinteractionwithsoftwaretechnology.ThegoalofDigital
Therapeuticsistomirroraneffectivetreatmentalreadyinusebutdosothroughtheuseoftechnologyto
scaletoalargepatientpopulation,therebyamplifyingdoctors’andnurses’care,changingpatient
behavior,andmostimportantly,reducingcostofcare.https://en.wikipedia.org/wiki/Digital_therapeutics
TheDigitalTherapeuticsmarketiscurrentlyinitsearlieststage,containingjustafewdozencompanies,
isforecastedtogrowfromitscurrentsizeinthehundredsofmillionstonearly$6billion,madeupofa
fewhundredcompanies,overthenext5years.
http://mhealthintelligence.com/news/mhealth-spotlight-set-to-shine-on-digital-therapeutics
ReminiscenceTherapy(RT)
ReminiscenceTherapy(RT)involvesdiscussingandreviewingrecognizablememories,typicallyby
lookingatphotos,andhearingordiscussingthefamiliarstoriesrelatedtothem.RThasbeenshowntobe
veryeffectiveatreducinganxietyandincreasingtheoverallQualityofLife(QoL)inAlzheimer’sand
Dementiapatientsinnearlyadozenclinicaltrialsandhasbeeninusefornearly30years.Theproblem,
however,isthatalthoughRTisveryeffective,itisalsoverylaborintensiveandhardtoscale.
BusinessModel
https://en.wikipedia.org/wiki/Reminiscence_therapy
TheCompanyplanspartnerdirectlywithSeniorLivingmanagementfirmsbyofferingtheirfacilitiesa
revenuesharemodel.DuringQ42016andQ12017theCompanyintendstorolltheproductoutina
selectgroupoffacilitiesaspartofapilotprogram.Upontheannouncementoftheclinicaltrialresults(Q1
2017)theCompanywillbeginchargingasubscriptionfeefortheproduct.Theproductwillbepaidforby
thepatient’sfamilyandwillbeapproximately$30permonthor$300ayear.
PleaserefertotheCompany’sforward-lookingstatementpriortomakinganyinvestmentdecision
ExecutiveSummary-Nov10,2016
HowEveryStoryWorks
Byinteractingwiththeproduct’sAI,Rachel,familymemberscaneasilyreplytosimplequestionsby
sendingphotosorrecordingshortaudioclipsandEveryStorythenweavesthemtogetherintovideo
stories.Withjust2-3minutesofengagementfromthefamilyperweek,theplatformcantransformthose
shortaudionotesandindividualphotosintorichdocumentary-likestoriesthatarethensentdirectlytoa
lovedoneforthemtoview,therebydeliveringtheReminiscenceTherapy
Thewaytheresidentexperiencesthestoriesisviaatabletthattheyview.Theresidenthasnorequested
actions,norhastolearnanycustomUserInterface.Forthem,theproductissimplyaconstantlyupdating
digitalphotoframeofstoriesforthemtoviewattheirleisure.
KeyMilestones
þ TheclinicaltrialisunderwaywithUniversityofCaliforniaSanDiego
o Theclinicaltrialwillbecompleteanddatawillbeannounced(Q12017)
o TherollouttheproducttoafirstwaveofSeniorLivinghomesviaapilotprogram(Q12017)
o Initiaterevenuegenerationupontheannouncementoftheclinicaltrialsresults(Q22017)
PleaserefertotheCompany’sforward-lookingstatementpriortomakinganyinvestmentdecision