Confidential MPR and ProtoLytic.

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Presentation transcript:

Confidential MPR and ProtoLytic

ProtoLytic® Overview

Proto-Link™ Product Medical evidence-based guidelines (ODG, AEOCOM, State) Management-set thresholds for handling procedure authorizations and actions Client specific workflows for processing requests for service Client network for service fulfillment Monitoring tools to measure adherence to thresholds, productivity, etc. Supervisory tools to assign claims and user access ProtoLytic Engine Connect to medical guidelines sources Process rules to determine proper workflows Fulfill using client network and select providers Capture data for Proto-Logic™ analytics engine Provider communications Alerts Follow ups Update claims and PBR system

Proto-Logic™ Product Proto-Logic™ Portal Query portal What-if analysis or thresholds and workflows Network optimization and identification of outlier MDs Vendor analysis of cost and treatment outcomes Correlation ICD-10 to procedure codes Dashboard Reporting Trend analysis Company & Global Database ODG, AOECOM, State sources Patient ICD/CPT/HCPCS Vendor performance Network provider performance

ProtoLytic® Assets Financial Resources Intangible Assets $1.3 million cash 2+ year runway Possible access to future investment Achievable breakeven projections Intangible Assets Patent protection Utility Patent filed – Patent Pending Trademark Registrations ProtoLytic®, Proto-Link™ and Proto-Logic™ Software Assets $700,000+

ProtoLytic® Breakeven Analysis Burn Rate $636,000 annual expenses Plus $264,000 additional staff Revenue Total Revenue $900,000 Breakeven Point 500 users ProtoLytic® Breakeven Analysis

ProtoLytic® Future Projections Feb 2019 Jun 2019 Apr 2020 Dec 2021 PILOT 500 users 1,000 users 5,000 users Timeline Revenue 5,000 users $9.1 million SGA Expenses Operating Costs $1.0 million EBITDA Projection > $8 million/year + $11 million ProtoLytic® Future Projections Non-strategic 5X $ 51 million Healthcare Services (e.g., TechHealth) 14X $123 million Technology sector 20X $171 million Valuation

Merger Proposal ProtoLytic® and Medical Pay Review

MPR Status At current burn rate and MPR available cash MPR realistically has 5-6 months of “runway” left MPR must raise ~$1.5 million to extend runway about 12 months Difficulty raising more capital Cap table will be a problem (employee stock options, dilution) Revenue prospects are not sufficient to significantly affect runway Current customers projections are not profitable in time to have an effect

Options for MPR Board Option 1 Option 2 MPR immediately shuts down operations, returning available cash to investors ProtoLytic, LLC outright purchases all MPR back-end software currently associated with ProtoLytic’s systems Cash goes to investors ProtoLytic takes over support infrastructure Option 2 MPR immediately executes drastic “survival plan” prior to merger Reduce MPR monthly burn-rate to $45K (reduction of 64%) MPR and ProtoLytic, LLC Merge to form new company ProtoLytic, Inc.

MPR Survival Plan (Prior to Merger) Immediately reduce staff with no (or minimal) severance Terminate all sales personnel (2) Discontinue Recovery personnel (3) Terminate IT personnel (1) Reduces $700,000 annual cost for personnel Reduce operating expenses $70,000 annual Sales conferences and travel Results in reduced burn-rate from $125,000 to $45,000 (64%) Jeopardizes only $170,000 estimated annual revenue for 2018 Recovery currently results in loss to earnings in 2018

Option 2 Merger Proposal Execute Survival Plan prior to merger agreement Form new company, ProtoLytic, Inc. Ownership of ProtoLytic, Inc. is 40% MPR and 60% ProtoLytic, LLC Combined burn-rate $87,000/month for a ”runway” of >24 months Conservatively assumes $0 revenue or profit contribution Includes staffing of sales and other functions for ProtoLytic, Inc. Improved prospect for raising additional capital for ProtoLytic, Inc. Stronger company with longer horizon to achieve success More robust product set Saves MPR investors from loss

ProtoLytic, Inc. (NewCo) Improved time frame to market for ProtoLytic More robust product with end-to-end (authorization to payment) coverage Better value proposition for combined company

Merger Future Projections Mar 2019 August 2019 Jan 2020 Dec 2021 PILOT 500 users 1,000 users 5,000 users Timeline Revenue 5,000 users $10.5 million SGA Expenses Operating Costs $2.0 million EBITDA Projection > $8.5 million/year + 5 million Merger Future Projections Non-strategic 5X $ 48 million Healthcare Services (e.g., TechHealth) 14X $124 million Technology sector 20X $175 million Valuation

Proposed Organization Structure Chairman and CEO Company vision Industry executive contacts and initiatives Funding and investment initiatives President Payment Integrity Senior VP Professional Services Senior VP HR and Compliance Vice President Sales Director Information Technology Oversees payment integrity and prevention services Oversees finance and accounting Develop license fee structure for company products Leverage current software to enhance other products Automate services and streamline processes Oversees Proto-Link and Proto-Logic products Delivery of client, partner and web products Data profiling, metrics, trends, performance and gap analysis Risk modeling and benchmarks Proactive interventions Corporate Secretary Legal compliance Contracts Certifications Payroll Talent management Compensation Benefits Training Employee development Stock option plans Customer acquisition and retention Cross functional sales team and integrated product experience Oversee marketing initiatives Creative oversight Content Client education Field marketing Development and implementation of technology Consultative approach to development Automate services