TOCCA-Slide-Deck-On-line

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Tyler Cornell: President and CEO 1721 N O Street, Lake Worth, Florida, 33460 Tel: (216) 30-SOBER Email: [email protected] Web: http://toccalife.com The Other Cancer Called Addiction

Transcript of TOCCA-Slide-Deck-On-line

Tyler Cornell: President and CEO

1721 N O Street, Lake Worth, Florida, 33460

Tel: (216) 30-SOBER

Email: [email protected] Web: http://toccalife.com

The Other Cancer Called Addiction

THIS DOCUMENT CONTAINS PROJECTIONS OF

FUTURE OPERATING RESULTS OF TOCCA.

ALL FINANCIAL PROJECTIONS AND OTHER STATEMENTS

CONCERNING ANTICIPATED REVENUE, FUTURE FINANCIAL

RESULTS AND ANY OTHER STATEMENTS THAT ARE NOT

STATEMENTS OF HISTORICAL FACT ARE, OR MAY BE

DEEMED TO BE, FORWARD-LOOKING STATEMENTS.

FORWARD-LOOKING STATEMENTS INVOLVE A VARIETY OF ASSUMPTIONS, ESTIMATES, RISKS AND UNCERTAINTIES THAT COULD RESULT IN ACTUAL EVENTS BEING

MATERIALLY DIFFERENT FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.

ACCORDINGLY, INVESTORS SHOULD NOT RELY ON PROJECTIONS

AND OTHER FORWARD-LOOKING STATEMENTS IN MAKING AN INVESTMENT DECISION.

TOCCA LIFE Coaching, Inc. Sober living facilities near the Delray Beach community, the ‘Rehabilitation Capital of

America’ according to the New York Times

Offers a desirable location for customers throughout the country

Expansion protected by federal laws that supersede local, country and state zoning

requirement via Americans with Disability Act and the Fair Housing Act

Utilize the benefits of a public vehicle by acquiring existing businesses and

partnering with property investors

Rapid Expansion via conventional investor mortgage derivative and direct marketing

Industry Large societal costs, about $200 billion per year, from illegal drugs, alcohol and

tobacco impact every major developed country

Many Americans have a serious attachment to one or more of the three substances

About 56% of the illegal drug use is related to crimes, while only 8.7% accounts for

health costs

Final averaged scores ranking alcohol and tobacco numbers as 3 and 10,

respectively on the scale of the most harmful drugs, measured in three dimensions:

physical harm, dependence and social harms

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0.50

1.00

1.50

2.00

2.50

3.00 MEAN HARM SCORES FOR 20 SUBSTANCES

Out of the total 24.6 million illicit drug users, 8.8% is 12 to 17 years adolescents and

21.5% is 18 to 25 year old users

68.9% of illicit drug users were employed either full time or part time

About 9.9 million persons reported driving under the influence of illicit drugs during

the past year, with young adults between the ages of 18 and 25 being the largest group

of offenders

Illicit Drug Users

19,800,000

1,500,000

681,000

1,300,000

615,000

595,000

1,909,000

2013 Illicit Drug Users by Category

marijuana

cocaine

heroin

hallucinogens

psychotherapeutic drugs

methamphetamines

other drugs

Source: US Dept of Health & Human Services, Substance Abuse and Mental Health Administration

Over 23 million people are abusing substances currently and over 100 million people are

directly affected; however, according to Dr. McLelan, former Deputy Director of the White

House Office of National Drug Control Policy,

Market

Currently, just 2.3 million Americans receive any type of substance abuse

treatment, which is less than one percent of the total population

of people who are affected by the most serious of the

substance use disorders—addiction.

TOCCA Life offers a unique “oasis” of sobriety, within an increasing drug epidemic

and has the support of licensed treatment facilities in Palm Beach County

The existing 300 known homes and smaller apartment type complexes are not

utilizing the growth potential simply waiting to be welcomed!

TOCCA Life will offer a Structured Housing based off of 12 Steps and 12 Traditions of

Alcoholics Anonymous within a safe, sober and accountable environment

The facilities will be located within 2 miles of accessible meeting places, unskilled

labor employment opportunities and recreational areas

Clinical Laboratory Toxicology Testing will be conducted as prescribed but randomly

Thereafter, the program will increase the supervision to include:

Services

Exercise Program Exercise program is vital and virtually never

offered by the competition. It offers a better

physical health, self-esteem, fun, participation

and competition. Further, it stimulates natural

endorphins that ‘burnout’ the clients’ desire to

abuse.

Employment Placement Help clients to rekindle a stable

lifestyle. With job placement we

increase the client retention, lower

client turnover and optimize the

client success rate.

Community Service Community Involvement increases the clients’

opportunities, participation and accountability

within the community, promotes the program and

most importantly raises the clients' self esteem

while lowering their desire to abuse substances.

Employment Overviews

Help addicts understand the world of

opportunity waiting for them after

finishing the TOCCA Program via

volunteer presentations high-lighting

“fun” work.

Sales Tactics: focus on targeting tenants referred by treatment centers to gain momentum

in the industry. By using tenant success stories, and garnering support from key opinion

leaders in the industry, the company will build brand awareness.

Advertising: strategically invest in multimedia marketing that promotes our brand and

brings a direct return on investment. Successful mediums will be acquired.

Targeted Online Marketing: select niche and targeted websites, such as local health

community sites, for our online partners.

Database Marketing: conduct targeted e-Blasts to inform existing and potential customers

of new product releases or enhancements, and special promotions.

Social Media: Facebook and Twitter will be used to increase brand awareness and build

support within the community

Website: a new video platform website will roll out called TOCCABOUTIT.com, and will

drive awareness and interaction to our cause, while helping our client base engage with

others. TOCCABOUTIT.com and our network of sites will enlist clients, therapists, business

professionals and celebrities into a community awareness campaign called Help or Share.

Strategic partnerships will be formed through tradeshow attendance and networking efforts

Sales & Marketing Strategy

Milestones:

1. First Facility Opening

2. Public Vehicle Structure & Contracts

3. Clinical laboratory goes live

4. Open additional facilities

5. Community Awareness Campaign

6. Facility Expansion

Completion of set of facilities and

laboratories; expand number of facilities to

7 by the end of 2015 and 240 by the end of

2019

Create brand awareness though community

outreach programs such as our Big Brother

Program, TOCCA Foundation, Magazine, and

website

Launch advertising campaign though print,

online, targeted marketing and social

media marketing

Growth Strategy

Competition

American Addiction Centers

With just 6 locations nationwide and $116 million in revenues for the year ended March 31, 2014, AAC had a

successful $75 million IPO in July 2014

Richard J. Caron Foundation

With total revenues of $74 million in 2011 and total expenses of $72.8 million, the Caron Treatment Centers

are a non-profit organization with annual working budget of over $38 million.

Our competitive edge is the support, accountability, safety and referrals inherent of

TOCCA Life. The standard of living arrangements and the rewarding challenges

undertaken will spawn an attraction to TOCCA Life similar to how the AA Program

has expanded to have a worldwide membership in the hundreds of millions.

Expanding upon this concept with testimonials and sponsoring community events will

connect our Company to the community, branding our name as the helpful neighbor.

Competitive Edge

One of the only, if not the only, physically traded Sober Living Facility ensuring client

safety and fiscal accountability

The curriculum, accountability, safety and referrals inherent of TOCCA Life

The standard of living arrangements and the rewarding challenges undertaken will spawn

an attraction to TOCCA Life similar to how the AA Program has expanded to have a

worldwide membership in the hundreds of millions

Expanding upon this concept with testimonials and sponsoring community events will

connect our Company to the community, branding our name as the helpful neighbor.

Team

Tyler Cornell President & CEO

Has held numerous executive roles in a variety of

industries utilizing his unique skill sets and management

style that has been proven effective. As one of 3

creators of the first 95% No Income, No Asset, No Closing

Cost mortgage programs, his concept became quite

popular throughout the US on the retail and wholesale

levels. Simultaneously, his concept of ‘franchising’

mortgage banks or ‘net branching’ was launched

successfully across the country.

Steven Sherlip VP of Marketing

A veteran of media, Steve began his career as

Manager Client Services for Independent

Television Network. He has held position with

Bohbot Communication, Toys R Us and Disney

owned ESPN. Throughout his career he has

demonstrated the ability to relate and consult

businesses about their total strategy.

Robert Duncan Advisor

A leading international entrepreneur for nearly 30

years. His extensive experience lies in DNA testing,

drug and alcohol testing, and testing for toxic

substances, chemicals, medicines, and abused

substances for civil, criminal, domestic, DSS, and

federal cases.

Dan Jenkins Advisor

A managing partner and the primary therapist

at Empathic Recovery in West Palm Beach,

Florida. He was a Founder and Director of

Foundations Sober Living, a 20 bed

Transitional Living facility where he tracked

all clients, developed, trained, and directed

Resident Managers.

Financial Summary

Year 1 Year 2 Year 3 Year 4 Year 5

Revenues $2,297,000 $9,269,000 $35,354,000 $87,019,000 $144,581,000

Cost of Goods

Sold 1,272,000 3,111,000 11,748,000 28,087,000 41,316,000

Gross Profit 1,025,000 6,158,000 23,606,000 58,932,000 103,265,000

Selling Expenses 515,000 923,000 2,342,000 5,752,000 12,861,000

General & Admin

Expenses 1,275,000 2,396,000 5,994,000 31,972,000 45,150,000

Net Income

(EBITDA) $(765,000) $2,839,000 $15,270,000 $21,208,000 $45,254,000

Financing Timeline

Raised to date: $

Capital Needs: $3 million

$1,050,000: rollout full-scale marketing campaign

$950,000: to secure additional facilities

$240,000: for lab equipment rental

$760,000: for working capital

Y1 Y2 Y3 Y4 Y5

EXIT

Open 7 facilities

105 facilities and 4 labs

240 facilities and 12 labs

Exit Strategy

Forecasts are attainable from the Florida market alone

We have recently been invited by the CEO of one of the largest privately

owned, national laboratories in the country, to utilize his nationwide contacts,

compliance consultants and network of non-profit sober living organizations to

increase our expansion rate. He has also offered to entertain any and all joint

ventures including cash investment and use of his national sales force that work

directly with sober living facilities and can identify qualified takeover

candidates.

Recent Deals:

Recovery Centers of America received $200 million in investment in Oct 2014

Elements Behavioral Health acquired COPAC in 2014

CRC Health Group acquired Habit OPCO in 2013

The Other Cancer Called Addiction

Tyler Cornell: President and CEO

1721 N O Street, Lake Worth, Florida, 33460

Tel: (216) 30-SOBER

Email: [email protected] Web: http://toccalife.com