|1||First solution to integrate Telehealth / Telemedicine onto Blockchain to facilitate COVID-19 / Coronavirus patient self assessments|
|2||Patent (pending) six-way patient validation on the Blockchain utilizing AI driven smart workflows|
|3||Latest technology stack and security - Cloud, AI, IoT, & Blockchain|
|4||Integrative solution/interoperability (plug and play functionalities)|
|5||Value bundle solution (Security/Encryption, PHI Validation, Physicians Credentialing, revenue cycle management)|
|6||Our solution in use at Cedars Sinai TowerENT, Stemcell TherapeuticsLA, Pacific Stemcells, Health Centurion, Metrohealth International etc.|
We started our platform development two and half years ago. Successfully boot strapped the process to bring our Apotheka solution to market.
To understand fully the value stream of a hospital or clinical operations we built an Electronic Medical records platform. Thereafter we integrated Blockchain in key areas of Patient scheduling/Registration, Point of care and Revenue cycle (payment flow to include insurance companies).
In November 2018 we officially launched our platform to the healthcare and technology community in Los Angeles.
We are now activating our fundraising efforts through Wefunder so that we can start our marketing and client acquisition phase.
We look forward to all of you joining us in building the next unicorn venture!
Apotheka has financial statements ending December 31 2019. Our cash in hand is $10,950.92, as of April 2020. Over the three months prior, revenues averaged $2,500/month, cost of goods sold has averaged $2,000/month, and operational expenses have averaged $1,500/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.
Apotheka is SaaS solutions-focused company that uses blockchain given its iron-clad security and scalable, distributed design. Our solution integrates and transforms Electronic Medical Records platforms into secure Blockchain eco-systems.
We hope (but not guarantee) to pursue an IPO or acquisition by a healthcare software company.
Apotheka Systems Inc. was incorporated in the State of Delaware in September 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in September 2018 and has 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 $18,538.57 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 8 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. 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
Apotheka Systems Inc. cash in hand is $10,950.92, as of April 2020. Over the last three months, revenues have averaged $2,500/month, cost of goods sold has averaged $2,000/month, and operational expenses have averaged $1,500/month, for an average burn rate of $1,000 per month. Our intent is to be profitable in 6 months.
No material changes have occurred since the date of our financials. We hope to have additional paying clients. At the moment, we have four signed paying clients (physician groups). In the next 3-6 months, we expect expenses to rise 10-15% from beginning of our second phase solution development (Apotheka Digital Health Passport), operational and advertising costs from acquiring new customers.
Prior to the COVID-19 pandemic we were in talks with executive teams of major hospital systems (George town hospital, MD Anderson, Cedars-Sinai Nephrology group, CHOC) in exploring implementing our solution.
For additional capital, we can rely on our personal savings; however, we see our client list growing as well in parallel as we do our raise with WeFunder.
Industry adoption--there might be initial resistance to our new technology stack since healthcare sector tends to embrace digital transformation at a slower rate compared to other sectors. Traditionally, the health and pharma industries have been slow to adapt. According to McKinsey, almost 40% of pharma companies are unsure about how to align digital strategy with their customers’ journey while only 10% based strategic decisions on a granular understanding of how digital affects their business model and competitive environment compared with 22% across all industries.
Market entry limitations--companies in security or electronic medical records might hinder our collaboration to their exiting clients if we are viewed as threat to gaining their market share.
Unexpected resources constraints could negatively impact our ability to hit scaling milestones and would strain our ability to support daily operations.
Economy downturn due to COVID-19 pandemic might impact raising funds thus impacting our operational activities. Investors tend to be more engaged in a predictable economic environment.
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.
Early profitability is not guaranteed--we might require additional funding and in case it’s not secured, that might cause us to slow our scaling of operations. In addition, sales cycles tend to vary and a bit long for big clients with a huge accounts, which makes projecting recurring revenue difficult.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
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