The problem

Aesthetic practices are adopting a new wave of regenerative products, such as PDRN, exosomes and growth factors. Today those products are either applied topically, where little of the product gets absorbed, or injected with many needle sticks, which is painful and keeps needle-averse patients away. Practices need a way to get these products into the skin without needles, without downtime, and without a physician performing every treatment.

Our solution

DermoElectroPoration (DEP) uses controlled electrical pulses to temporarily open pathways in the skin, so applied products move into the dermis without needles. It delivers products uniformly 3–5 mm deep with no puncture trauma, and trained staff can perform the treatment, which fits how med spas are actually staffed.

The DEP device is FDA 510(k)-cleared and has been in U.S. clinical use for about five years.

Traction

1. Over 300 DEP units are in U.S. practices today. About 100 were placed directly by DEP Medical; about 200 were placed by earlier distributors.
2. In 2024, our first full year selling under DEP Medical, we sold 32 units, most by video call, with no sales team.
3. Last full-year revenue was $332K, about 24% of it from disposables and add-on products.
4. 25% of DEP-placed units are reordering.
5. In March 2026 we presented to Keiretsu Forum, and eight members expressed interest in investing.

Business model

1. Razor and blade. Every treatment uses DEP disposables, so each placed device produces recurring revenue for as long as it is used.
2. Add-on products. We sell hyaluronic acid, exosomes, nitric oxide and more into the same practices, including through our online store.
3. Installed base. The roughly 200 units placed by earlier distributors are a low-cost source of disposables revenue and upgrades.

Customers

Med spas, plastic surgery practices, dermatology practices, hair restoration clinics, and a fast-growing segment of longevity clinics.

Go-to-market

1. Distribution partnership with Carestream: 52 sales reps and about 7,200 industry contacts, replacing a one-person sales effort.
2. Vue Lab serves as our fractional CMO for marketing and content, with a CRM built for lead follow-up and reorders.
3. Our unit targets are 300 in FY2027, 600 in FY2028 and 900 in FY2029. These are projections, not guarantees.

What this raise funds

We are raising $1.75M of Series A preferred stock at a $5M pre-money valuation, on the same terms as our Series A term sheet. The first $700K tranche is allocated as follows:

1. $297,000: U.S. assembly with Occam Designs in Kentucky, using Mattioli-made components. This includes a $2,000 royalty to Mattioli Engineering for each unit built, under an agreed LOI that transfers the FDA 510(k) and DEP trademarks to DEP Medical.
2. $100,000: marketing, sales enablement and regulatory work
3. $303,000: working capital

The second tranche ($1.05M) funds inventory and growth toward our FY2027 unit target.

Milestones

1. First tranche: 510(k) and trademarks transferred to DEP Medical; first 50 U.S.-assembled units
2. January 1, 2027: target launch readiness, with Carestream reps active and U.S. supply in place
3. FY2027 to FY2029: 300, 600 and 900 units (projected)

Team

1. David Brown, Founder & CEO. Nearly 30 years in aesthetics. Sold 48 units in his first year selling DEP, mostly by video call, while running the company lean. Board member.
2. Dr. Gregory Chernoff, MD, Medical Director. Triple board-certified cosmetic and reconstructive surgeon with 30+ years of clinical leadership. Board member.
3. Lori Samuelson, Operations.
4. Fractional CFO for finance and operations. A full-time CFO and marketing lead will be added as we hit milestones.

Key risks and how we address them

1. The 510(k) and trademarks are held by a third party. Mattioli Engineering holds them today. Under an agreed LOI, they transfer to DEP Medical in exchange for a $2,000 royalty on each unit built. Until that transfer closes, DEP Medical does not own the clearance.
2. Single-source supply. We plan U.S. assembly with Occam Designs and will sell from existing finished inventory during the transition.
3. Founder-led sales. Carestream's reps and a funded marketing program are meant to replace a one-person sales effort. That model is not yet proven at scale.
4. Small revenue base. The installed base and 25% reorder rate give us a recurring floor, but growth depends on this raise.
5. Projections. Unit and revenue targets in this memo are estimates and may not be achieved.

Beyond aesthetics

Longer term, the platform may support medical uses such as irradiated skin and peripheral neuropathy, subject to further FDA clearances.