|1||Own a piece of the company that is innovating strength & mobility recovery in vulnerable populations|
|2||Help improve quality of life and reduce cost of care for individuals with mobility problems|
|3||Winner of the 2020 McKnight's Excellence in Technology Innovator of the Year Gold Award|
|4||More than a dozen issued and pending patents in the US and abroad|
|5||Combine discount perks with other investors to gift our technology to a facility of your choice|
|6||Participate in a venture that solves a critical problem in a huge and growing market|
Currently, I own a business that offers free senior housing services for individuals and families. After spending time with my own grandparents as well as so many of my clients who need full-time care due to the difficulty of walking, I knew there had to be other options than I had seen in the marketplace. The elderly want to remain independent and self-sufficient for as long as they can.
A few years ago, I was able to meet the owner and founder of VibeTech through a mutual acquaintance. I had heard of and seen so many different vibration technologies in the marketplace but I was immediately hooked on VibeTech due to the science and data behind the machines. Through my own business experiences I was able to see that there was tremendous financial upside for an investment in VibeTech which is why I invested $50K at an earlier stage.
This is no ordinary device.
The market for a product like this is already huge and then will grow even more. We will all face the prospect of declines in mobility for some reason and this will help. Once people suffer an injurious fall, the statistics indicate a quick decline of life quality and early death. It doesn’t need to be that way. A product like this can help any person recover quicker from an injury; and not just the elderly. The uses for athletes to recover quicker from injuries could have prolonged my athletic career in high school.
There is such a need for a product like this which is why I am thrilled to be the lead investor for VibeTech.
Early NASA Work Leads to Discovery
Bone Loss Reduction Technology Found to Have Generalized Human Value
Over the last 10 years, Dr. Jeff Leismer, PhD, has pioneered therapeutic vibration science and technology, starting with a grant from the National Institute on Aging. It was initially conceived as a means to reduce bone disuse atrophy in astronauts during long duration spaceflight (NASA Spinoff, 2015). After discovering that his technology could be used to involuntarily contract/exercise muscles and help restore tissues, he founded VibeTech to make the technology available to all people globally who suffer from impaired mobility (e.g., older adults, people with physical disabilities, people recovering from injury or surgery, etc.). The technology is based on the principle that vibration forces that act naturally on the body--through the feet and legs as people walk--could be replicated mechanically to stimulate tissues into being worked as they would be during normal physical exercise. Dr. Leismer is considered an expert in his field, and has recently been invited by ISO to form a committee to study and propose international standards for the safe use of applied therapeutic vibration on humans.
Technology That Can Benefit Everyone
But How to Narrow the Focus?
After learning that dysmobility syndrome—a term coined by gerontologists to characterize the physical deterioration that occurs in all humans as a result of lack of exercise—can be counteracted by therapeutic vibrations applied to the body in a scientific manner, it became apparent that many conditions could be successfully treated. People living with muscle atrophy resulting from diabetes, Parkinson’s, arthritis, stroke, osteoporosis, injuries, and surgeries are all candidates for application of therapeutic vibration. Chronic and acute pain can also be reduced or eliminated. Our advanced rehab system is based on Smart Dosing™, an AI feature we developed to ensure safe and effective levels of treatment—automatically. Other therapeutic alternatives cannot offer the capabilities of automatic safe and effective customized dosing. We are unique and different. But with limited resources, VibeTech needed to narrow its focus—otherwise no one would be helped.
First Selected Target – Those with Greatest Need
High Societal and Personal Costs
After soul-searching with team members and an outside health industry consulting firm, we at VibeTech decided to focus our initial commercialization efforts on the segment we deemed the most needy—older adults with a history of falling. The financial impact of older adult falls is huge and growing, reaching nearly $68 Billion/year in direct treatment costs in 2020. Traditional Medicare and Medicaid pays $33Billion, Medicare Advantage insurance plans $17Billion, Hospital systems $7B, Other $11B. In addition, indirect costs primarily impacting the skilled nursing and assisted living industry include increased regulatory paperwork, increased nursing and personal care time, poor consumer ratings, lawsuits, higher insurance premiums, caregiver burden and deteriorating patient attitudes. We all know someone who has fallen, broken a hip, and never recovered to their former mobility level. It is well documented that such a sequence of events normally leads to a significantly lower quality of life and shortened lifespan. Rocky Knoll Health Center in Sheboygan County WI, a nursing home with an innovation orientation, worked with VibeTech on a pilot study to apply therapeutic vibration to residents with memory issues (who coincidentally have the highest fall rate among older adults). After a highly successful 45% fall reduction rate observed during the study, the Frank G. and Frieda K. Brotz Family Foundation saw the results and agreed to fund a project—currently in progress—to expand and enhance the use of applied therapeutic vibration for memory care residents at Rocky Knoll.
Winner of the 2020 McKnight's Excellence in Technology Gold Award for Innovator of the Year, Skilled Nursing Track
On October 6th, the long-term care industry’s most trusted media outlet, McKnight’s, awarded our skilled nursing innovation collaborator, Rocky Knoll, the coveted 2020 Excellence in Technology Gold Award for Innovator of the Year, Skilled Nursing track (https://www.mcknights.com/news/102898/), for the ground-breaking work in reducing resident falls, featuring VibeTech's cutting-edge equipment.
Positive Societal Impact Will Drive Financial Success
Purpose Alongside Profits
We at VibeTech firmly believe that the positive societal impact from widespread adoption of therapeutic technology will also drive significant VibeTech financial success. We believe there can be “purpose alongside profits”. In addition to the economic benefits that our customers will see, it is now apparent that the COVID-19 impact on isolation and loneliness among adults in care facilities can be offset to a degree by the use of our therapeutic vibration device. During infection control lockdowns, such as those now occurring in our country and around the world, normal physical exercise routines are often severely disrupted or curtailed. Residents must often remain in their rooms, with no or significantly reduced opportunities for human interaction, which experts have quickly identified as leading to severe feelings of isolation, worthlessness, and loneliness, as well as to physical deterioration from muscle atrophy. Availability of the VibeTech portable exercise device will allow staff to bring physical therapy to the resident—quickly, simply, privately, and on an as-needed basis. Our device will be easily cleanable and portable, plus therapeutic vibration has been shown to produce ‘calming’ and ‘relaxing’ physical responses among users, which is a significant benefit to clinical staff interacting with residents with anxiety issues.
Our 11 person team varies in age from the 30’s to the 70’s and all team members are on deferred compensation arrangements—a strong indication of our belief in our ultimate financial success. Our technology is covered by 10 patents in the US and abroad with 3 additional patents pending, and use of our devices in care facilities is being reimbursed by Medicare, Medicaid, and health insurance. We are seeking to raise funds through Wefunder to complete development and commercialization of our new product version—which is smaller, portable, lighter, easier to operate so that caregivers and family members can also administer treatments, and significantly lower priced than earlier versions which were more suitable for research—and to ramp up marketing, sales, and customer service capabilities. Financial returns to institutional purchasers of our devices will be substantial, with payback periods measured in months. We have no direct competition with this new technology and our product pricing will be based on value provided. Our product will be Made in USA.
Reasons to invest in VibeTech
Down the Road – Home Use Devices and Other Consumer Segments
Aging at Home / Personalized Rehab
We’ve come a long way--from a slow, steady addition of team members who share our values, to receipt of the Wisconsin Innovation Award in 2017, to 18 Clinical Studies, to a focus on the most needy population among us, to over 20,000 treatments provided to nursing home physical therapy patients with no serious adverse events.
While our new product is aimed at institutional purchasers, VibeTech is already contemplating a home-use version which we expect to make available directly to consumers. Several significant national trends make this a sound strategy: the desire to age at home, bio-monitoring for early health warnings, and increasing consumer expectations for better software to promote user engagement and personalization. In addition, we see future markets among those consumers interested in simply maintaining their physical capabilities (e.g., the weekend warrior) and those seeking to improve or excel (e.g. elite athletes).
Thanks for your support!
VibeTech Enterprises LLC has financial statements ending December 31 2019. Our cash in hand is $20,537, as of October 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $20,884/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
We produce and sell a therapeutic vibration solution to health insurance companies, hospital systems, and older-adult care facilities that will reduce the rate of falls in older adults with mobility issues.
In five years, VibeTech hopes to be recognized as the world expert in vibration therapy and will be selling our devices throughout the world.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Vibetech Enterprises, LLC was incorporated in the State of Wisconsin in August 2018. It is a spin-off of VibeTech Inc. which was formed in 2007 and activated in 2010 when funded by a grant from National Institute on Aging.
VibeTech Enterprises, LLC is a 94.4% owned entity by VibeTech Inc. (Parent Co.), as of September 30, 2020.
VibeTech Inc. has only one owner over 20%, who is the CEO and Founder, Jeffrey M. Leismer, with an ownership stake of 62.8%. Therefore, effectively, Mr. Leismer has a beneficial ownership of 59.3% of VibeTech Enterprises LLC.
VibeTech Inc. is the sole Manager of VibeTech Enterprises LLC; therefore the Board of Directors of VibeTech Inc. are listed as the Board of VibeTech Enterprises LLC.
Since 2010, R&D was the primary activity, culminating in 2 product versions which were sold in minor quantities through 2018. 2019 saw no revenues as the Company was developing the VibeSit PRO--a smaller, lighter, portable, easier to use, and less costly version of the initial product. Along the way, the Company has received Wisconsin and national accolades for innovation in therapeutic vibration therapy, with the most recent award for ground-breaking results in falls reduction among older adults.
The company has built a staff of 10, including the Founder Jeff Leismer and CFO Ed Morgan. The entire team is taking deferred compensation based on future results, which shows the passion about the positive societal impact and financial prospects.
VibeTech Enterprises LLC (company) owns one patent outright, the rest have been assigned to WiSys Technology Foundation, Inc. under which VibeTech Enterprises LLC has an exclusive license to use the patents.
Historical Results of Operations
The Company has had limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $626,134 in debt, $1,112,754 in equity, and $222,246 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 months, assuming we only meet the target raise. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Vibetech Enterprises, LLC cash in hand is $19,034, as of October 19, 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $20,884/month, for an average burn rate of $20,884 per month. Our intent is to be cash flow positive in 8 months.
Since the date of our financials, dual sales staffs are being created--internal rep staff plus external consultants--for our two sales channels. New, improved product is being developed, nearing completion. Market visibility substantially increased. National recognition for innovation in falls reduction for older adults experiencing falls.
Revenues in next 3-6 months are expected to come from new product pre-sales and regular sales expected to deliver in late first quarter 2021, projected at $360K. Expenses will rise according to the amount raised and according to quantity of products sold, estimated at $575K.
The estimated cost per unit is $14K. We consider ‘first product run’ to be 6 units, so roughly $84K is needed.
Private, eligible investors are continually being interviewed for other sources of capital. Our long term goal is to connect with a strategic partner, and initiatives are continually being explored.
Insufficient Capital: If the Company is unable to raise sufficient capital, it may be impossible to create the customer fulfillment capabilities necessary to establish a solid beachhead in the marketplace.
Human Resources--Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
COVID 19--The Company has not been materially negatively impacted by COVID 19. However, the sales strategy of the Company calls for significant selling efforts into eldercare institutional businesses--primarily skilled nursing facilities, of which many have been adversely affected by COVID 19, and therefore it may be more difficult to attain sales traction at the rates anticipated.
Product Knockoffs--The Company's integrated patent portfolio is a major competitive advantage. However, in the event of a significant patent infringement incident, the Company has limited resources of its own to fight an infringement case and may lose market share.
Key Personnel Loss--The Founder/CEO is the key to the team and a loss of his services would be a major detriment to the Company's prospects, even though a $1 million life insurance policy is in place.
Inadequate Contract Manufacturing Capabilities--The need to sole-source the contract manufacturing and other key suppliers at this stage of the Company's development increases the risk of inventory supply interruptions.
Inability to Gain Marketplace Acceptance--The Company's technology and products are completely new, not incremental improvements to existing solutions. The Company needs to provide sufficient initial and continuing evidence and education through clinical studies and other research methods to convince the marketplace of the Company's value proposition.
Compliance Risks--If new laws or regulations are instituted by governments--domestic and foreign--and the Company can't comply, or inadvertently violates laws or regulations, the Company may be forced to pay fines or cease certain activities.
Country Risk--As the Company pursues foreign expansion opportunities, and foreign governments adopt populist, isolationist, or protectionist policies, the Company may be blocked from business growth opportunities or may suffer business reversals.
Credit Risk--As the eldercare industry continues to endure ever-changing government policies tending to reduce reimbursements for medical care, the Company may suffer credit losses if customer institutions can't pay.
Political Risk--If U.S. government health policy changes such that prices, competition, and quality of health care services is upended, the Company may find its opportunities limited or curtailed.
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