Company Presentation Advanced Development of Additive Manufacturing, Inc - twid creative studio
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Disclaimer This presentation and the information contained herein (the “Presentation”) is being presented to a limited number of parties who may be interested in reviewing information regarding the Company. This Presentation does not purport to be all-inclusive or to necessarily contain all the information that a prospective investor may desire to know or need to know to evaluate the ADVANCED DEVELOPMENT OF ADDITIVE MANUFACTURING, INC. (the “Company”) or the merits of a future investment. The information contained herein has been prepared solely to assist prospective investors in deciding whether to proceed with a further investigation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this information. This Presentation is strictly private and confidential and, without the prior written consent of the Company, is not to be disclosed to any other person, company, partnership or other entity, nor reproduced or published in whole or in part. THIS PRESENTATION IS SUPPLIED SOLEY FOR INFORMATIONAL PURPOSES AND DOES NOT REPRESENT AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES OF THE COMPANY. NO RELIANCE MAY BE PLACED FOR ANY PURPOSE ON THE INFORMATION OR OPINIONS CONTAINED IN THIS PRESENTATION, OR ON ITS COMPLETENESS AND NO LIABILITY IS ACCEPTED FOR ANY LOSS HOWEVER ARISING FROM ANY USE OF THIS PRESENTATION OR ITS CONTENTS. THIS PRESENTATION IS NOT, AND UNDER NO CIRCUMSTANCES IS TO BE CONSTRUED AS, A PROSPECTUS, AN ADVERTISEMENT OR A PUBLIC OFFERING OF ANY SECURITIES IN THE UNITED STATES OR ANY OTHER JURISDICTION. This Presentation is not intended to be, and may not be, relied upon as the basis for a future investment decision and is not, and should not be assumed to be, complete. The contents of this Presentation are not, and may not be relied upon in any manner as, legal, business, or tax advice. The Company does not make any express or implied representation or warranty as to the accuracy or completeness of the information contained in this Presentation or in any additional evaluation material, whether written or oral, made available in connection with any further investigation of the Company. The Company expressly disclaims any and all liability which may be based on such information, errors therein or omissions there from. Only those particular representations and warranties, if any, which may be made to a party in a definitive agreement regarding a transaction involving the Company, when, as and if executed, and subject to such limitations and restrictions as may be specified therein, will have any legal effect. The information contained in this Presentation is derived solely from management of the Company and otherwise publicly available information and does not purport to be all-inclusive. The information has not been independently verified. In furnishing this Presentation, the Company does not undertake any obligation to provide the recipient with access to any additional evaluation material. This Presentation shall neither be deemed an indication of the state of affairs of the Company nor constitute an indication that there has been no change in the business affairs of the Company since the date hereof or since the dates as of which information is given in this Presentation. Some of the statements made in this Presentation constitute forward-looking statements. These statements relate to future financial and other performance or anticipated plans and are identified by words such as “may,” “will,” “should,” “expect,” “could,” “scheduled,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “potential,” “propose” and “continue” or negative variants of such terms. You should read these statements carefully because they discuss the Company’s future expectations and plans. The Company believes that it is important to communicate these expectations and plans to you; however, these statements are only estimates of future performance. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it reasonably believes may affect its business, financial condition and results of operations. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in these forward-looking statements may not be achieved or occur and actual performance or events may not meet such expectations or estimates and may, in fact, differ materially from those projected in the forward-looking statements. Although the Company believes that the expectations reflected in the forward- looking statements made herein are reasonable, the Company cannot and does not guarantee future results, levels of activity, performance or achievements. We do not plan and, subject to applicable law, undertake no obligation to update any of the forward-looking statements made herein after the date of this Presentation in order to conform such statements to the Company’s actual results. RISKS:AN INVESTMENT IN THE COMPANY IS SUBJECT TO SIGNIFICANT RISKS AND SHOULD ONLY BE MADE AFTER A CAREFUL REVIEW OF THE COMPANY’S OFFERING MEMORANDUM FOLLOWING CONSULTATION WITH YOUR LEGAL, TAX AND OTHER ADVISORS. INVESTING IN THE COMPANY IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK AND IS NOT SUITABLE FOR ALL INVESTORS. INVESTORS THAT PURCHASE SECURITIES PURSUANT TO THE COMPANY’S OFFERING MEMORANDUM SHOULD BE ABLE TO BEAR THE HIGH ECONOMIC RISKS OF SUCH INVESTMENT, WHICH INCLUDES, BUT IS NOT LIMITED TO, LOSS OF ALL OR A SUBSTANTIAL PORTION OF THEIR INVESTMENT. 2
Investment Overview • A.D.A.M. develops an on-demand personalized implant 3D-printing infrastructure with a full scope of related services, provided remotely or on-site. • A.D.A.M. bundles the following services in its TAAS model: medical data storage, implant 3D-modelling, on-demand 3D-printing for bone implants using proprietary 3D-printing technique, and optional hardware installation at the POC • Business model designed to decrease costs and to improve patient outcomes VS existing alternatives (i.e. titanium implants and emerging alternatives) • We have developed a superior technology and possess a strong IP Portfolio • Developed two biodegradable material composites, superior to metals and plastics in biocompatibility and patient outcomes • Currently developing upgraded BJP and FFF printers with proprietary advancements for high-quality, fast and cost—efficient production • IP Portfolio: 4 provisional patents (2 for materials and 2 for printers) in the U.S., 2 patents for materials in Ukraine • Regulatory 510(k) pathway validated by FDA; Animal Trials to start Q3 2021 • FDA responded positively to A.D.A.M.’s Q-Sub regarding 510(k) eligibility requiring only successful animal studies (no human trials) for the FDA 510(k) clearance • Draft Protocol for Animal Studies to be submitted to the FDA in May 2021; animal studies to begin in September 2021 • FDA 510(k) Clearance expected in Sep 2022 • Potential to disrupt growing markets • 3D printing for the medical industry - $1.8 billion (17% CAGR 2019-2029); segment – implantable devices (17% CAGR 2019-2029) • Orthopedic implant market - $47B (2019) & $64B (2026); segments – 3D-printed bone implants ($3.8B in 2026) • Growth in markets driven by ageing population, augmented incidence of orthopedic diseases. FDA endorsement of additive manufacturing in healthcare industry • Solid management team and advisors • CEO with international medical trials regulations and defense applications expertise • Strong Advisory Board of 9 professionals in Orthopedics, 3D-printing, Strategy, Business Development and Digitalization • The Board of Directors consists of 3 officers with 2 seats open 3
Market Opportunity problem • Orthopaedic market is currently dominated by technology video titanium implants, which are costly, rarely personalized, and typically require the click to play second surgery to extract metal fixation elements • Implants made from alternative materials are expensive and have long delivery times solution On-demand personalized bone implant 3D-printing infrastructure with a full scope of related services, provided remotely or on-site • 3D-printed patient-specific implants (PSI) -> reduced surgical time and improved surgical results • Biodegradable and bioresorbable materials -> no need for revision surgeries -> reduced patient suffering and health costs • Proprietary printers installed at the point of care or at the company’s facilities -> delivery time of 1-3 days 4
Market 3D Printing for Medical Devices market, $B • 3D-Printing for Implantable Device Segment – 17% CAGR for 2019-2029 6.1 • Total addressable market for ADAM not limited by $1.8B of 3D 5.2 printing for medical devices 4.5 market 4.0 • A.D.A.M. can target and disrupt 3.4 orthopedic implants market, 3.0 estimated at $47B in 2019 2.5 (expected $79.5B in 2030), 3D- 2.2 1.8 printed segment expected to reach 1.6 1.3 $3.8B in 2026 • Market growth driven by: ageing population, augmented incidence of 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 orthopedic diseases, FDA 3D Printing for Medical Devices endorsement of 3D-printing in healthcare Source: Report “3D Printing for the Medical and Dental Industry 2019-2029”, Technology, Market Opportunities and Outlook, Dr Bryony Core and Dr Nadia Tsao, IDTechEx, 2020 5
Therapeutic Target Markets Orthopedic Oncology CMF, neuro-, surgery and plastic surgery 6
Product Overview Technology-As-A-Service Model charging medical centers a fee for implant production and system usage Materials Printers Digital Platform QMS ▪ Bioceramic and ▪ BJP and FDM printers ▪ MVP developed for ▪ Quality Management biopolymer with proprietary medical data cloud System in place from composites developed advancements under storage the start of R&D for flat and tubular development ▪ Features under ▪ ISO certification bone implants ▪ 2 provisional development: implant ▪ 2 provisional patents in the U.S. 3D-modelling, patents in the U.S.; medical staff 2 patents in Ukraine training 7
Technology Validation Histological sections of the implantation into the soft tissue of wistar rats ▪ No hematoma, edema, scarring, degenerative changes, tumors, tissue necrosis and other abnormalities were detected Ceramic implant Connective Connective tissue tissue capsule capsule ▪ Implants are biocompatible ▪ In the fourth week, due to the porous structure of the ceramic Ceramic implant material, cell migration and germination of the connective tissue (T) deep into the implant was observed; in the twelfth week the process has intensified 4 week observation 12 weeks observations after implantation after implantation 8
Implants and Intellectual Property Bioceramic Bone Implants Biopolymer Bone Implants Application: non-weight-bearing bones Application: weight-bearing bones reconstruction replacement Material: ceramic bio-glass composite Material: modified biopolymer • Highly bioactive • Imitates natural bone structure • High porosity • High level of strength and • Stimulates osteogenesis recoverability Printing Technique: BJP Printing Technique: FFF • Proprietary printing powder • Proprietary sterilization system compression system feature feature Intellectual Property • 2 provisional patents for materials (US) • 2 provisional patents for novel FFF and BJP printers (US) • 2 permament patents for 3D-printed hernia meshes creation method (Ukraine) A.D.A.M. plans to to file all patents under the PCT (Patent Cooperation Treaty) with a focus on primary markets in EMEA and APAC regions in Q2 2022. 9
Benefits VS Alternatives • Production speed is substantially higher while price of finished product is substantially lower • No need for re-operation to extract metal fixation elements • No need to traumatize a patient for the purpose of bone marrow autoplasty • Implants stimulate osteogenesis processes • Sufficient strength indicators to withstand implant loads for use in maxillofacial surgery • The components from which the implant is made do not have allergic, toxic, teratogenic properties • 3D modeling technique allows printing individualized implants for each specific clinical case 10
Customer Lifecycle John needs no Medical team revision John is orders John’s surgeries, the admitted to implant from implant degrades the hospital A.D.A.M. while John’s own with a bone facilities or bone tissue fracture prints it on-site regrows John has his Medical team Surgeon MRI/CT scans models an operates John stored on individualized on the same day A.D.A.M. implant for with improved Digital John’s accuracy and Platform specific case speed 11
Next Product Lines Heart Valve Bronchial Major Blood Implants Implants Vessel Implants 12
Product Development and Clinical Timeline Product Development Timeline R&D of heart Lab Advanced Material Project Digital platform Established HQ at valve, blood Market Launch for set-up; QMS Printers MVP Composites R&D initiation MVP TIP at UCONN vessel, bronchial Bone Implants launch Completed implants launch | | | | | | | | Aug 2018 Feb-May 2019 Oct 2019 Sep 2020 Nov 2021 Dec 2021 Jun 2022 Oct 2022 Clinical Timeline Draft Protocol FDA Confirms Pre-Clinical Trials for Animal Implant Testing Animal Studies 510(k) Submission to 510(k) FDA Clearance completed Studies sent to Samples Ready Kickoff FDA Eligibility FDA | | | | | | | Oct 2019 Aug 2020 May 2021 June 2021 Sep 2021 May 2022 Sep 2022 13
Competitive Landscape • Majority of competitors are highly specialized on system, software, materials, or services segment whereas A.D.A.M. develops a holistic TAAS model. • All competitors have long delivery times (2 weeks on average VS A.D.A.M.’s 1-3 days) • Most competitors offer implants made of either biopolymer or bioceramic implants, whereas A.D.A.M. offers both • OPM, the market leader, does not offer biodegradable materials • A.D.A.M. bone implants can be used in oncology applications (i.e. surgical replacement of the damaged bone with the implant) • Due to the integrated approach of the A.D.A.M. implant-manufacturing process, it is expected that the final cost for patient will be cheaper compared to the existing and emerging alternatives 14
Projected Budget $4.93M (17 months financing) to reach FDA clearance and product readiness for market launch. $1.12M Product Development Completion of animal studies for bioceramic and biopolymer bone implants • R&D - $530k • Software Development - $100k • Platform Development - $120k • Scientific Consulting - $240k 2 material composites and 2 printers ready • IP - $130k for market launch $1.46M Clinical FDA 510(k) Clearance • Animal Studies - $1.2M • Regulatory Expenses - $260k Global IP Coverage Secured $0.18M Marketing $2.17M OpEx Digital Platform Ready for Commercial Use 15
Partners Long-established Technology Incubation Boutique investment bank, Industry-oriented Top-Tier law firm bioscience Program at the financing over $50 billion center dedicated to in the area of ecosystem University of of public and private pre-competitive “FDA Law” Connecticut capital raises, research in additive restructurings, and mergers manufacturing and acquisitions Top 3D-printing One of the biggest Fortune 500 American Early-stage Largest commercial company network of seed manufacturer of industrial venture capital research center in accelerators in US tools and household hardware firm North Carolina 16
Management Denys Gurak Andy Pedtke, MD CEO Chief Medical Officer Formerly a top executive of industrial Practicing orthopaedic surgeon, founder conglomerates; expert in global medical of innovative limb prosthetics company, trials regulations advisor to startups, VC investor Ada Bovsunovsky Arkadii Bohdan, MD COO Head of R&D Formerly an analyst at a VC firm Practicing surgeon, researcher in 3D BA, Economics (Boston University), MSc bioprinting, writer of materials’ Finance (Bocconi University) patents Dmytro Skomorokhov Mykhaylo Pluzhnik VP of Business Development R&D Project Manager 3D printing industry expert; Techstars Engineer focusing on thermal processing, accelerator program experience materials chemistry, project management Markian Silecky, Esq. Yuliya Shapovalova General Counsel Head of Ukraine Office, Legal Corporate Counsel with over 30 years of Counsel international experience; co-founder of Startup manager in IT and investment various multinational entities projects; legal support 17
Advisory Board Dr. Anthony Tether Dr. Phillip Karber Chief Scientific Advisor Chief Strategy Advisor Former DARPA Director, expert in President at Potomac Foundation, former innovative research and development Head of Strategy at Department of Defense, strategic advisor to NATO, governments and corporations Dr. Mark Horowitz Tamir Harosh Chief Trials Advisor Business Development Advisor Professor at the Department of Professional advisor, leads the BD, Orthopedics and Rehabilitation, Yale negotiations, and consulting teams for University School of Medicine companies and individuals Dr. Anson Ma Den Burykin Chief Technology Advisor Digital Strategy Advisor Associate Professor at UConn, site Experienced entrepreneur with executive director at SHAP3D, expert in complex and board positions in ICT and fluids and 3D printing technology driven organizations Dr. Adnan Mjalli Eugene Fedorchenko Chief Development Advisor Digital Strategy Advisor Internationally recognized entrepreneur Strategic business advisor with over in pharma and biotech industries decade of track record in management, law and go-to-market domains 18
Summary • One-stop shop for implant production • Potential to disrupt outdated healthcare models and $47 billion orthopedic implant industry • Advantages: reduction in costs for all Parties, improved surgical outcomes and reduced patient suffering For more information, • Pre-clinical trials successfully completed; please contact: animal studies start in Q3 2021 • No human trials required DENYS GURAK, CEO • Expected time of FDA 510(k) clearance: September 2022 dg@adamproject.org • Results-driven management team and strong Advisory Board 19
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