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e-Healthcare Systems, Inc.1231W 540S

Orem, UT 84058

Phone (Tom): 801-615-6920Phone (Paul): 801-423-0126 Fax: 801-423-0126

Emails: tom@e-healthcaresystems.com paul@e-healthcaresystems.com

Webs: www.e-healthcaresystems.com/heartbeat

www.heartbeatEMR.com

•Dr. Tom Schuler, MD, PhD – Founder, CEO•Paul Berney – Senior VP Marketing, Investor, Business

Advisor•Spencer Robertson – Attorney•Annie Seely – CPA•Doug G. ware – PR Person•Alec Swan – IT•11 Programmers - Outsourced

Business Description – Electronic Medical Records targeting Long Term care Industry (LTC)

Purpose for Meeting - Looking for 250K to take us to revenue

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Team Introduction

Problems/Solutions

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• EMRs are Mandated for 2014. The change is real and mandated.• Errors & Omissions Greatly Reduced• Reduction in Wrongful Giving of Medications

Solution - Government Mandate for EMRs & Utilizing Innovated technology

Liability Issues - Reduction in law suits, Medicare reimbursement reduction and possible loss of certification

Cost Benefits - SaaS (Software as a Service) payments (lower cost to the facilities), Reduces fines & penalties, fully integrated facility types (11 different facility types within one software program).

Market Opportunity• Improves quality, safety, efficiency and reduces health disparities• Access to comprehensive patient health data – Better ROI• Competition has not gone to Open Source yet• Competition does not have the Uniqueness we offer• Competition using platforms, languages & technology from year 2000• Competition doesn’t have the speed and easibility we offer• We will be 4 years ahead of competition

Overview of the Market - Approx. 70,000 facilities in the US broken down into eleven different types. Aging of America

defining the growth of the market.

Customer acquisition - Defined by the SaaS model for each facility (average cost will be between $600-$5,000)

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The Total Market

PHR

EMRLTC

Niche Market

EMR/EHRProviders

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The Niche Market – LTC 70,000+ Facilities – 11 Segments

RCFE

Home Care

Respite Care

Independent Care

Hospice

Health & Wellness

Intermediate Care

CCRC

Assisted Living

Adult Day Care

SNF

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• EMR (Electronic Medical records), 3 months before beta testing

• Copyright obtained

• Demonstrations available via the Internet

• We have current alliances established with patented technology and others in negotiation

• Current LOIs in place for beta testing which should lead to purchasing

Product & Technology

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Competitive Overview

• We have identified 50 major competitors offering within the market

• Our competitive advantage is our technology, alliances and our SaaS offering for all eleven segments of the industry within one software program

• Barriers to adoption - Name recognition, established relationships

• Competitors generally only offer up to three different types of software programs that are stand-alones each are priced separately.

• Our sustainable advantages are our use of today’s technology and alliances with patented technologies.

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Strategy

• 3-5 year goal - To capture a minimum of 10% of the market

• Development status - 3 months to beta testing

• Positive cash flow requirement - 250K required, within 6 months after infusion of investment money we should be in revenue

• Expected risks/challenges - see assumptions handout

• Targeting customers - Shows, emails, word of mouth, Cold calls, (regional rollouts), and contacting past customers

• Alliances and partners - Joint marketing agreements

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Financials

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Revenues, Cash Flow & P&L

FY1 FY2 FY3 FY4 FY4

Gross Revenue

$2.75M $5.5M $15.84M

COGs $378,700 $521,400 $681,400

Gross Margin ($)

$2.372M $4.98M $15.2M

Operating Expenses

$87,669 $1.387M $1.666M

Earnings $2.28M $3.6M $13.54M

SaaS Monthly Pricing Model

• Number of Patient Beds • Number of Facilities • Number of Work Stations• Number of Staff Using Software• A Factor based on Support, Maintenance, Customization,

Training

Monthly Estimated Payment Range: $600-$5,000/Mo.

Average Monthly Payment @ $3,000/Mo.

100 Fac./Mo. @12 Months = 3.6 Million/Yr.

1500 Fac./Mo. @12 Months = 54 Million/Yr.

OUT OF 70,000 FACILITIESPage 11

Scalability, is to define the specific requirements for scalability on dimensions which are deemed important. It is a highly significant issue in electronics systems, database, routers, and networking. A system whose performance improves after adding hardware, proportionally to the capacity added, is said to be a scalable system. An algorithm, design, networking protocol, program, or other system is said to scale if it is suitably efficient and practical when applied to large situations (e.g. a large input data set or large number of participating nodes in the case of a distributed system). If the design fails when the quantity increases then it does not scale. We meet all these definitions for our EMR software program.

Scalability

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Domain & Startup Experience - Dr. Tom Schuler and Paul Berney

Advisory Board

• Lynn Ventura – Advisory Board, 5 RCFE Facilities (California)

•Chad Godfrey – Advisory Board, Willow Creek Healthcare (Home Care Business) (Utah)

•Mary Monroe, CMT – Advisory Board, PHR Specialist (Florida)

Positions to be filled - CEO, CFO, Sales People (4), HR, IT Person

Why this team will win – We are utilizing only experienced healthcare professional people from the Industry segments we are marketing to.

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Management

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Funds required & use of funds – 250K, Salaries, Shows, Programmers, equipment – next round $2,000,000 (6-12 mo.)

Time & money Invested – 4 years development, over $1,000,000 invested

Milestones for 250K:

Milestones Time LineFinish Programming 3 months

Beta Testing 3-6 months

Shows 1-3 months

Marketing Materials 1-3 months

Funding & Milestones

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Exit Startegy

How do investors make money - Debit/Equity, Loan interest , IPO, or Divesture (Acquisition)

Example of successful exit - GE, Microsoft, IBM Google, One of our top 10 competitors

Time frame for exit - 3-5 years within the mandated EMR time by the US government

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Summary

The government has mandated EMR implementation for 2014 and has allocated 19.1 Billion dollars in grant money - The government has defined our market and are helping to fund it. We have identified the niche market that the big boys are not tarketing.

We have a grant writing team in Washington that is writing a grant template for us that will allow both our business and to offer to our customers a potential means of funding for our software. A point of differentiation that our competitors are not offering at this time.

Our SaaS model will generate revenue from each client on 3-5 year contracts. This will be a steady flow of revenue for the company.

We are not just looking for money but expertise at many levels

Bottom Line!

Times are a' changing

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