|1||HealtheMed has a contract with the Minnesota Medicaid program targeting 77,000 potential subscribers.|
|2||Company will be paid up to $3,600 a year for each Medicaid special needs subscriber.|
|3||77,000 potential subscribers in Minnesota and a market value of $280M in annual revenue. U.S. market value of $16B.|
|4||Exclusive contract with MMCAP Infuse, who will market HealtheMed to its 12,000 institutional customers in 50 states.|
|5||Provide PERS and remote patient monitoring services to assist this population stabilize their health and avoid Covid-19.|
|6||Medicaid enrollees with chronic diseases are the most likely to die from exposure to COVID-19. We help avoid this.|
|7||Initial pilot program resulted in medication adherence increasing from 43% to 92%.|
HealtheMed is the perfect opportunity for Investors to do well by doing good!
HealtheMed (pronounced Health-E-Med) was founded to help the 4,000,000 people in the U.S. who live confined in their homes with chronic conditions like quadriplegia and diseases like bipolar disorder and muscular dystrophy. Treatment of people with special medical needs through the HealtheMed telemedicine platform will save state Medicaid programs an average of $1,700 a visit to a hospital emergency room. This is why the state of Minnesota was happy to award HealtheMed a B2B contract that will pay the company $10 a day for every special needs person who enrolls. The special needs market for HealtheMed services in Minnesota is $280 million each year and $16 billion in the U.S.
The HealtheMed telemedicine platform consists of a smart television, a medication dispenser, a thermometer, and other health monitoring devices placed in the home and connected to doctors through the cloud. When a medication is missed, or a person’s temperature goes up caregivers and HealtheMed are notified so that the problem can be addressed quickly. Doctors and nurses can examine their special needs patients through their smart TV or anywhere on mobile devices with cameras. The HealtheMed service is free to special needs people and their doctors, nurses, pharmacists, therapists and caregivers.
Special needs people take multiple medications every day. When they forget to take their meds or take the wrong dose, complications that result may require hospitalization. Special needs people are also the likeliest to get sick or die from exposure to viruses like COVID-19 and the Flu. The HealtheMed telemedicine platform in the home will reduce the risk of viral infection during a pandemic.
HealtheMed has a second contract with a state-run pharmaceutical purchasing group called MMCAP Infuse with 12,000 customers in all 50 states. Investor funds will be dedicated to special needs enrollments and operations in Minnesota. Once HealtheMed operations in Minnesota have passed breakeven in the first year, HealtheMed will begin marketing its services to other states through the MMCAP Infuse national sales force.
HealtheMed is currently working with accredited investors to raise $600,000 of the $1,070,000 seed round. HealtheMed will raise up to $400,000 of this seed round through the Wefunder campaign. Once $600,000 in total has been raised, HealtheMed will commence operations and fulfillment of it's B2B contract with the state of Minnesota.
HealtheMed, Inc. has financial statements ending December 31 2019. Our cash in hand is $592, as of July 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $100/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 provide telehealth services to Medicaid Special Needs Populations, including medication management, medication therapy, and primary or specialty care. We place an Internet enabled TV in the patient home as the portal to the healthcare community, as well as an internet enabled medication dispenser. The platform will also help minimize Covid-19 infections through telehealth.
In five years we hope to be in all 50 states servicing their Medicaid Special Needs Populations, competing in a $12 Billion market segment, as a $100,000,000 in annual revenues company. These projections cannot be guaranteed.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
HealtheMed, Inc. was incorporated in the State of Delaware in June 2018.
Since then, we have:
Historical Results of Operations
Our company was organized in June 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $30,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 24 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 18 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
HealtheMed, Inc. cash in hand is $592, as of July 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $100/month, for an average burn rate of $100 per month. Our intent is to be profitable in 12 months.
In 2020 we anticipate a possible reduction in platform costs due to negotiations with BestBuy for fulfillment.
If we are able to raise the full $1.07M from accredited investors and the Wefunder campaign, we anticipate monthly revenues to go from $22,000 three months after the raise to $68,000 6 months after the raise, and expenditures from $188,000 to $500,000 during the same period.
We need a minimum of $600k to help us meet initial demand in this space. If we're able to raise that, revenue generation begins in month 2 when we begin offering our service to Minnesota special needs enrollees. Since over 4,000 special needs enrollee contracts come up for annual renewal each month we expect that $600K will be necessary to help us meet this initial demand for services.
State and federal government policies and reimbursement rules may not stay the same and can be changed on a short notice. This could affect billing and reimbursement rates for HealtheMed.
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.
Sufficient numbers of county case managers, home nursing agencies, Medicaid health professionals, and other social workers may not be willing to refer HealtheMed to their patients, and minimize any HealtheMed subscriptions.
Direct sales/marketing to Medicaid SNBC populations could be ineffective and costly. Marketing and sales relationships with home health agencies and home health nurses will require capital expenditures.
There is no guarantee that Medicaid SNBC patients or their nurses will utilize the HealtheMed platform even if installed. Ease of use, connectivity issues, installation issues, and other unforeseen problems can affect platform usage.
HealtheMed's leadership team are all currently part-time and are not paid. Once funded, there will be four employees that will work full-time on the venture.
The current economic downturn due to the pandemic could impact the market, government policies, and billing/reimbursement rates for HealthMed.
Temporary Rule 201(z)(2) provides temporary relief from certain financial information requirements by allowing issuers to omit the financial statements required by Rule 201(t) in the initial Form C filed with the Commission. This offering has commenced in reliance of Temporary Rule 201(z)(2) and, as a result, the following must be disclosed: (i) the financial information that has been omitted is not otherwise available and will be provided by an amendment to the offering materials; (ii) the investor should review the complete set of offering materials, including previously omitted financial information, prior to making an investment decision; and (iii) no investment commitments will be accepted until after such financial information has been provided.
Ronald Mandelbaum, Allan Swartz and Robert Arnold are part-time officers. As such, it is likely that the company will not make the same progress as it would if that were not the case.
|11||We need a minimum of $600k to help us meet initial demand in this space. Since over 4,000 special needs enrollee contracts come up for annual renewal each month we expect that $600K will be necessary to help us meet this initial demand for services. If we're unable to raise those funds through this offering or concurrent ones we may be unable to generate revenues, and investors may lose all or some of their investment.|
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