|1||Almost 50% of all adults report that their mental health has been negatively impacted by covid-19.|
|2||38% month-over-month growth in organic traction — prior to any marketing efforts.|
|3||Most members of the leadership team each has over 20 years of experience in their respective fields.|
|4||The clinical team brings different types of proven clinical therapy and ancient wellness techniques.|
|5||EverStrong is the emotional intelligence app that has immediate access to mental fitness exercises.|
|6||The app has a low churn, two out of every three customers who sign up, stay subscribed.|
Zen Health Technologies, Inc. created the flagship product, EverStrong. We started in 2015. At the time, I was consistently working 80 hours a week for 3 years. I had burned out, but didn't know it. I was being reactive and making bad decisions. That job ended and I had time to reflect and understand what happened. We studied how the brain and body handle chronic stress (repeated stress over a long period of time).
Most people experience stress at some level. We wanted to find out who was the most stressed. As we continued to interview folks, we found that people who have the ADD, ADHD, depression and anxiety were the most stressed as they struggled to get through the day - everyday. We gathered data on how often they experience stress and what they do to deal with in daily lives.
We continued to learn and refine what type of product would help chronically stressed people have an easier time just getting through their day. We built an app for IOS and used it as a MVP.
We knew we were solving the problem well when we heard comments like "I think you're onto something." We made more refinements and started building an android version of the app.
Next came Marketing. We spent some time on strategy to make sure we found our place in the world and were able to articulate who we were clearly. We eventually found that people who are busy, have busy minds and going through big life changes would benefit the most from the EverStrong app.
Finding the right customers has taken a bit of effort. We thought once the product was launched, the hard part was over. We were so wrong. We are just now starting Marketing by using pay-per-click, social media marketing and being found easily in the app store and the google play store. We are now finding the right kinds of customers.
Here's the preview of the app:
On May 7th, 2020 - we had a press release go out titled "Strengthen Emotional Intelligence and Improve Mindfulness with EverStrong App".
EverStrong combines science with ancient mindfulness training to strengthen emotional intelligence. After selecting specific goals such as “Ease Stress” or “Stay Focused,” users complete 30-second mental exercises to help them reach those objectives. Unlike breathing and meditation apps, EverStrong develops mind muscles, emotional strength, and self-awareness.
In just a short time, we are seeing organic month-over-month growth of 38% before Marketing kicked in. After getting a lot more customers, we want to take what we have learned into the business-to-business arena as we believe this would be beneficial to groups of people who interact with each other everyday.
We are on a mission to help bring a sense of ease to everyday life using technology. We look forward to meeting you!
EverStrong has financial statements ending December 31 2019. Our cash in hand is $1,691, as of May 2020. Over the three months prior, revenues averaged $10,000/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $7,000/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.
ZHT builds mobile apps to help get your mind focused quickly so that you can practice not let things bother you in the future.
In 5 years, we want to have integrated technology with smart watches and IoT such as Amazon Alexa and Google Nest. We also want to build out our B2B area so that our enterprise-level applications work with corporate wellness programs, rehabilitation centers, first responders, insurance companies, hospitals, and the military. These restrictions cannot be guaranteed.
Zen Health Technologies, Inc. was incorporated in the State of Delaware in October 2015.
Since then, we have:
Historical Results of Operations
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 $477,633 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 5 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
Zen Health Technologies, Inc. cash in hand is $41,472, as of May 2020. Over the last three months, revenues have averaged $10,000/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $7,000/month, for an average net margin of $3,000 per month. Our intent is to be profitable in 5 months.
For additional capital, the founder used to work as a consultant testing medical devices with actual users and writing documentation for the FDA. Since the pandemic all the consultant work that was scheduled came to a halt. This work requires that the founder is in close proximity to the test subjects. Until it is safe to be around other people, she cannot conduct testing. The work is scheduled to resume after shelter in place restrictions are lifted.
The open contracts, sales and other mechanisms already in place have the potential to generate $75k in the 3-6 months, although it cannot be guaranteed. We predict expenses will be $50,000 during this time.
We are currently running a promotional campaign for our product. The promotion comes with an extended 6-week trial period which will hopefully generate more traffic with some of the customers converting to paid subscriptions.
This app was designed to fall in between therapy and meditation. Once we show that there is a market for this space, there will be competitors in this new market.
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.
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.
The infrastructure that the application is built on may be upgraded, become obsolete or may develop security issues over time.
The company needs to hire a business development person to help look for other ways to sell the app and find new opportunities. It may take a while to find this role.
Market demand may fluctuate due to market conditions such as COVID-19 and may affect customers ability to pay subscription fees.
COVID-19 and outside conditions may affect the owner's ability to generate revenue to support business expenses.
The Development and Marketing teams consist of outside vendors. Rates and availability are based on their own company priorities.
Therapists and other clinical personnel are essential to the business as they develop content that customers are paying for. Their availability and rates may fluctuate depending on variables outside the control of the company.
Other than the owner who works on a W2 basis, all the other team members are 1099 contractors. All team members work on a part-time basis. With recent legislation in California, these contractors need to be turned into employees. The company has hired an employment lawyer to assess the situation and make recommendations. Once the company gets enough funding, all the contractors will get converted to W2 employees.
All the team members other than the CEO work part-time. They either go to school full-time or have another full-time job.
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