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Table of Contents
1.0 Executive Summary.....................................................................................................................1

Chart: Highlights...........................................................................................................................3
2.0 Company Summary......................................................................................................................3
2.1 Company Ownership................................................................................................................3
2.2 Start-up Summary....................................................................................................................4
Table: Start-up Funding.............................................................................................................5
Chart: Start-up..............................................................................................................................6
Table: Start-up..............................................................................................................................6
2.3 Company Locations and Facilities.......................................................................................7
3.0 Products............................................................................................................................................7
3.1 Product Description..................................................................................................................7
3.2 Competitive Comparison......................................................................................................10
3.3 Sourcing......................................................................................................................................11
3.4 Technology.................................................................................................................................11
3.5 Future Products........................................................................................................................12
4.0 Market Analysis Summary.......................................................................................................12
4.1 Market Segmentation............................................................................................................12
Chart: Market Analysis (Pie)...................................................................................................15
Table: Market Analysis..............................................................................................................15
4.2 Target Market Segment Strategy.....................................................................................15
4.2.1 Market Needs....................................................................................................................16
4.3 Industry Analysis.....................................................................................................................17
4.3.1 Industry Participants......................................................................................................18
4.3.2 Distribution Patterns......................................................................................................18
4.3.3 Competition and Buying Patterns.............................................................................19
5.0 Strategy and Implementation Summary...........................................................................19
5.1 Marketing Strategy.................................................................................................................20
5.1.1 Pricing Strategy...............................................................................................................21
5.1.2 Promotion Strategy........................................................................................................21
5.2 Competitive Edge....................................................................................................................22
5.3 Sales Strategy..........................................................................................................................22
Chart: Sales Monthly.................................................................................................................23
Table: Sales Forecast................................................................................................................24
5.3.1 Sales Programs................................................................................................................24
5.4 Milestones..................................................................................................................................25
Chart: Milestones........................................................................................................................25
Table: Milestones........................................................................................................................25
6.0 Regulatory Issues.......................................................................................................................26
7.0 Management Summary.............................................................................................................26
7.1 Management Team.................................................................................................................26
7.2 Management Team Gaps.....................................................................................................27
7.3 Personnel Plan..........................................................................................................................28
Table: Personnel..........................................................................................................................28
8.0 Financial Plan................................................................................................................................29
Page 1
Table of Contents
8.0 Financial Plan................................................................................................................................29

8.1 Break-even Analysis...............................................................................................................31
Chart: Break-even Analysis....................................................................................................31
Table: Break-even Analysis....................................................................................................31
8.2 Important Assumptions........................................................................................................32
Table: General Assumptions...................................................................................................32
8.3 Projected Profit and Loss.....................................................................................................33
8.3 Projected Profit and Loss.....................................................................................................33
Chart: Profit Yearly.....................................................................................................................33
Table: Profit and Loss................................................................................................................34
8.4 Projected Cash Flow...............................................................................................................35
8.4 Projected Cash Flow...............................................................................................................35
Chart: Cash...................................................................................................................................35
Table: Cash Flow.........................................................................................................................36
8.5 Projected Balance Sheet......................................................................................................37
8.5 Projected Balance Sheet......................................................................................................37
Table: Balance Sheet.................................................................................................................37
8.6 Business Ratios........................................................................................................................37
8.6 Business Ratios........................................................................................................................37
Table: Ratios.................................................................................................................................38
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: General Assumptions.............................................................................................................4
Table: General Assumptions.............................................................................................................4
Table: Profit and Loss..........................................................................................................................5
Table: Profit and Loss..........................................................................................................................5
Table: Balance Sheet...........................................................................................................................7
Table: Balance Sheet...........................................................................................................................7
Table: Cash Flow...................................................................................................................................8
Table: Cash Flow...................................................................................................................................8
Page 2
MedNexis, Inc.
1.0 Executive Summary
MedNexis, Inc. (the company) is a medical device development company that has designed and
patented medical devices which it plans to produce and market. A magnetic muscle
stimulator/field generator has been designed with the participation of leading medical personnel
and biomedical engineers. One patent is initially incorporated.
Allopathic Medicine
One market addresses the unanswered need of atrophy prevention/treatment in conditions

resulting in patient immobilization for greater than two weeks. After two weeks of
immobilization, the average muscle loses over 30% of its mass, resulting in an increased time
to complete recovery. A new and innovative design, dubbed the MedStim system, has been
created to answer this need for an effective, easy-to-use atrophy prevention/treatment device.
The number of indications for this device is expected to rise as further research on the benefits
of pulsed magnetic fields unfolds. For example, pulsed field magnetism has recently been
shown in controlled studies to be an effective treatment in accelerating the healing of skeletal
fractures.
The market for magnetic stimulation devices in allopathic medicine is existent, but in the
embryonic stages and subject to explosive growth once the technology proves cost-effective.
This potential market has reached an estimated 4.2 million patients in the United States. The
new and innovative device designed to target this market has been named the MedStim
system.
Alternative Medicine
Another market addresses an unanswered need in the alternative medicine market for a device
which will provide a more powerful and consistent therapeutic magnetic field. Dynamic
magnetic field therapy (the treatment of soft tissue with variable magnetic pulses) is currently
thought to have beneficial effects on circulation, immune system function, wound healing, etc.,
in the alternative healthcare sector and these effects are thought to be proportional to the
strength of the magnetic field generated. The new and innovative design created to answer this
need for a more powerful therapeutic magnetic field in alternative medicine has been named
the TheraMag system. This market is in existence and is expected to have the potential of
approximately 40 million customers in the United States on our starting date.
Technology
Patent applications on the company's first market entries have been filed using a patent agent
specializing in biomedical device patents. MedNexis' technology utilizes the principal that a
current in a coil will generate a magnetic field which will, in turn, generate a current in any
conductive material within this field. This model is currently effectively applied in diagnostic
studies in which single nerves are stimulated with magnetism for diagnostic purposes alone.
Using this model, and considering the human nerve to be the conductive material, MedNexis
has developed an electromagnetic device which will painlessly stimulate human muscles to
contract. Applications of this technology are numerous, with the following devices being those
initially marketed:
MedNexis' patented device will be tailored to effectively stimulate muscle. This will require
larger electrical currents, greater functionality, and a wider range of settings. This device will be
marketed for mainstream, allopathic medicine
Page 1
MedNexis, Inc.
TheraMag- MedNexis' patented device will bathe tissue in a magnetic field without causing
contraction of the muscle. This device will be marketed for alternative applications.
Strategy
MedNexis will target the following two markets: allopathic and alternative medicine. In order to
effectively distance the two products from possible negative connotations associated with
alternative medicine in the field of allopathic medicine, the two devices will be given separate
and distinct names: MedStim for the allopathic medicine device and TheraMag for the
alternative medicine device.
MedStim will be distributed through channels dominated by large distributors and strategic
association with these players will be key to gaining acceptance in this market. Furthermore,
physicians will demand randomized, controlled study data, the production of which will be the
focus of the bulk of MedNexis' early efforts in this market.
TheraMag will be distributed to alternative medicine centers which are less centralized and
direct sales will also be possible. Less scientific proof is required by this market, and entrance
will be immediate once the FDA issues an Investigational Device Exemption.
Regulatory Issues
Through obtaining an Investigational Device Exemption and clearly labeling the product "For
Investigational Use Only," FDA regulations will be satisfied and market entrance will be
expedited. Acceptance of these products based on successful research results will drastically
increase demand and allow for expansion to foreign markets
Major Milestones
Animal stage Research and Development underway, early Year One.
 Extend patent coverage to Australia, Europe and Canada, middle Year One
 Human clinical trials underway, middle Year Two.
 Research studies published, end of Year Two.
 TheraMag for sale, end of Year One.
 MagnaStim for sale, labeled as ‘For Investigational Use Only', end of Year Two.
 Profitability established by Year Four.
Competitive Advantage
While the MagnaStim and TheraMag devices are effective and user-friendly, with multiple home
healthcare applications, all the competing devices currently on the market are only partially
effective or difficult and awkward to use for the recommended therapeutic treatment. MedNexis
will use its patented designs to fill the need in the market for an easier to use, more effective
magnetic stimulator/field generator.
Financial
Based on detailed financial projections, if the company receives the $750,000 in funding, it will
operate profitably by Year 3. The company projects $23.5 million in sales with a formidable net
profit in Year 3, with projections based on penetration of less than 3% in any market segment.
Page 2
MedNexis, Inc.
Chart: Highlights
Highlights
$200,000,000
$180,000,000
$160,000,000
$140,000,000
Sales
$120,000,000
Gross Margin
$100,000,000
$80,000,000
Net Profit
$60,000,000
$40,000,000
$20,000,000
$0
Year 1 Year 2 Year 3 Year 4 Year 5
2.0 Company Summary
MedNexis will research and develop biomedical devices, including the MedStim and TheraMag
systems, to aid in the treatment of a variety of diseases. Its customers are patients afflicted
with any condition resulting in muscular atrophy, as well as those patients interested in the
proposed alternative benefits of magnetic therapy. The company is currently developing its
patent-applied technology to final product and approval stage. It is also seeking to establish its
corporate identity in the medical products field. The company's growth strategy involves the
following objectives:
 Complete the patent process.

 Establish corporate identity, brand names, trademarks.
 Set a clear business direction and both long-term & short-term goals to be achieved.
 Build staff and company infrastructure.
 Complete clinical trials and obtain FDA approval.
 Continue R&D and product development.
 Maintain market performance by linking remuneration packages for key personnel with the
performance of the company through stock options and other salary schemes.
2.1 Company Ownership
The company will be incorporated in North Carolina. It will have authorized 15,000,000 ordinary
shares and 150,000 preferred shares. The rights and privileges of these shares will be stated in
the company's Articles of Incorporation.
The proposed share capital of the company prior to capital raising
Owner Percentage of Shares Owned

Daniel Burnett 40%
Mike Marriott 20%
Page 3
MedNexis, Inc.
Nathan Wain 20%

Brian Bell 20%
The company is expected to raise seed capital of approximately $750,000 prior to the
commencement of its business operations. Additional working capital is anticipated and will be
raised in year 2 of operations. Capital raising exercises are anticipated to be conducted in 2
portions (i.e. Year 0 and Year 2) raising approximately $6.75 million in funds.
2.2 Start-up Summary
The key elements in the start-up plan for the company are:
 The legal expense for filing all patent applications.

 The establishment of a corporate identity.
 The location of business.
 Funding of working capital requirements, purchases of other equipment and assets deemed
necessary for the principle operating activities of the company, and additional capital raising
alternatives.
 Salary for key managers and staff of the company.
 Formulation of the strategic business plan.
Costs of raising capital through private placement
Approximately $250,000 was raised from the founders of the company for these purposes. This
funding will be available in early 2001 and these tasks have either been completed successfully
or are in the final process of completion.
These are treated purely as start-up expenses and initial working capital by this plan. The
$250,000 is treated as cash-on-hand as of the start of this plan on January 1, 2001. The
remainder of the start-up capital required, as well as capital required for the continuation of
operations in the first 6 months will be provided by selling the shares via a private placement to
key investors. The capital obtained through this fund-raising exercise is expected to provide an
additional $750,000 and the business plan calls for these funds to be infused for the purposes
of operating the business, in accordance with this business plan.
Page 4
MedNexis, Inc.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $168,000
Start-up Assets to Fund $82,000
Total Funding Required $250,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $82,000
Additional Cash Raised $0
Cash Balance on Starting Date $82,000
Total Assets $82,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Daniel Burnett $100,000
Nathan Wain $50,000
Mike Marriott $50,000
Brian Bell $50,000
Additional Investment Requirement $0
Total Planned Investment $250,000
Loss at Start-up (Start-up Expenses) ($168,000)

Total Capital $82,000
Total Capital and Liabilities $82,000
Total Funding $250,000
Page 5
MedNexis, Inc.
Chart: Start-up
Start-up
$240,000
$210,000
$180,000
$150,000
$120,000
$90,000
$60,000
$30,000
$0
Expenses Assets Investment Loans
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $50,000
Stationery etc. $500
Brochures $3,000
Consultants $3,000
Insurance $3,000
Rent $1,000
Research and development $100,000
Expensed equipment $6,500
Other $1,000
Total Start-up Expenses $168,000
Start-up Assets
Cash Required $82,000
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $0
Total Assets $82,000
Total Requirements $250,000
Page 6
MedNexis, Inc.
2.3 Company Locations and Facilities
The company will initially be based in the Research Triangle Park area in North Carolina.
In view of the strategic plan to contract with a third party for all manufacturing requirements,
the facilities needed will be mainly offices for personnel and storage space for inventory. After
Year 5, when the market for our products reaches our anticipated milestone, the company will
explore the feasibility of constructing its own manufacturing facilities.
3.0 Products
MedNexis will initially market its MedStim system to the atrophy prevention/treatment market,
while the TheraMag system will be marketed to the alternative medicine market. The primary
differences between these two products will be the amplitude and frequency of the magnetic
field generated and the programmability/capability of the logic controllers. The amplitude of the
magnetic field generated by the TheraMag system will be significantly less than that generated
by the MedStim system in order to avoid functional stimulation of the underlying muscles. The
frequency of stimulation, though, will be greater in the TheraMag system in order to provide a
more consistent therapeutic magnetic field desired for alternative medicine applications.
Both systems will be sold in two parts, the programmable logic controller (LC), which will
generate the electrical impulses, and the array of overlapping coils (AOC), which will generate
the magnetic fields. The AOC will be available in multiple designs, each of which will contain the
signature overlapping coils and will be simple to apply. Every design will be available in multiple
sizes to accommodate patients of various dimensions. The technology used in these products is
the subject of a patent which is currently in the application process.
3.1 Product Description
A detailed and technical description of both the MedStim and TheraMag systems follows:
Therapeutic Magnetic Field Generators: The MedStim and TheraMag Systems
Applications: The prevention/treatment of muscular atrophy in conditions resulting in

immobilization and the generation of a non-stimulatory magnetic field for alternative medical
therapy purposes.
Scope: This innovation applies to both stimulatory and non-stimulatory magnetic field
generation used in the treatment of a variety of diseases and ailments. The MedStim and
TheraMag systems are two-component devices designed to deliver a powerful magnetic field to
the subcutaneous tissue. The logic controller (LC) generates the electrical current impulse
through powerful capacitors and the array of overlapping coils (AOC) provides the necessary
pathway for the current to generate the desired magnetic field.
Page 7
MedNexis, Inc.
Current Technology:
Atrophy Prevention/Treatment
Currently bulky, difficult to use technology exists which provides for therapeutic, functional
stimulation of musculature using magnetic induction of neural impulses. These devices, though,
consist of only a single focus of stimulation and must be manipulated by a trained, experienced
user in order to effect a useful therapy. The main limitations of the existing magnetic
stimulation devices are:
 Inability to treat multiple muscle groups, or even adequately treat a single muscle group,
without a highly skilled, trained operator manipulating the device throughout the lengthy
process.
 Inconsistent treatment regiments which are time intensive and costly due to the necessary
continued presence of the trained operator.
 Limited effectiveness due to lower ranges of both gauss (a rating of the strength of the
magnetic field) and joules (a measure of the actual energy flowing through the coil).
There is also technology which stimulates musculature using transdermal electrical stimulation.
Electrical stimulation is a well-developed field in sports medicine and this form of therapy is
currently widely used. The main limitations to electrical stimulation are as follows:
 Stimulatory levels of electricity are frequently painful and may result in contact burns.
 Muscle groups that can be stimulated are restricted to those which are superficial and easily
reached transdermally. Deep muscle groups cannot be stimulated without more powerful
electrical impulses which cause significant discomfort. Due to this limitation, stimulation of
superficial muscles is usually submaximal as well.
There is currently technology for providing non-stimulatory magnetic fields for alternative
medicine applications, but none with an overlapping series of coils activated by powerful
capacitors. The main limitations of current non-stimulatory magnetic field generators are as
follows:
 Limited strength of magnetic field due lack of powerful field induction mechanism.
 Inability to penetrate deeply throughout the treatment area due to discreet, nonoverlapping
magnetic field generators of lesser power.
 Difficulty of use due to constant manipulation of the single coil required to treat any
significant region of the body.
MedNexis Technology:
In generating a magnetic field, impulses of electric current originating from the LC flow through
the AOC in a predetermined sequence. The flow of electrical current through the coil induces a
strong magnetic field (Faraday's Law), which in turn induces a current in motor neurons
perpendicular to the magnetic field, causing involved muscles to contract. Sufficient muscle
activity is induced to prevent atrophy of the muscle group affected. Therapeutic stimulation of
peripheral motor neurons and muscle tissue for the prevention of atrophy and/or the
augmentation of muscular mass may be clinically indicated for a variety of medical conditions
including fractures immobilized beyond 2 weeks, Induced Paralysis for Mechanical Ventilation,
Page 8
MedNexis, Inc.
Persistent Vegetative State, Traumatic Paralysis, and Guillain-Barre Syndrome. Potential

indications now being researched include: bone healing, preventing deep venous thrombosis,
and increasing range of motion.
Logic Controller- Requires both a powerful 40,000 microFarad capacitor and a 2:1 step-up
transformer capable of generating 250 Volts for the MedStim system. A less powerful (and less
expensive) 10,000 microFarad capacitor will be sufficient for the TheraMag system and a
transformer will not be necessary. Both systems will require multiple discrete discharge
channels so that coils in the AOC may be activated individually. A standard 110 Volt power
source will be needed to generate the necessary electrical impulses. Any channel not being
used for stimulation will be grounded to prevent electrical interference of the stimulated coil.
The frequency and amplitude of stimulation will be determined by the Logic Controller console.
(See Fig.1, 2, and 3 in Appendix)
Array of Overlapping Coils- Each copper insulated coil in the series will be connected to a single
channel on the Logic Controller. Current, will flow in through the logic controller with discharge
of the capacitor then out through a grounded lead in the logic controller. The firing of individual
coils will occur in a rapid, yet controllable, sequence and, in the case of the MedStim system,
will result in the stimulation of motor neurons in the subcutaneous tissue perpendicular to the
induced magnetic field. (See Fig.1 and 4 in Appendix)
Clinical Advantages:
The main clinical advantage of the MedStim system is that it is able to provide maximal
stimulation of deep musculature without significant discomfort to the patient. This is in direct
contrast to the frequently painful, submaximal electrical stimulation currently used. The LC is
an easy-to-program device and the AOCs are easily applied in any environment, making them
an attractive option in home health situations. Due to its ease of application and use, the
MedStim system will provide a means of preventing, not just reversing, disuse atrophy with
daily use on immobilized patients. Also, as additional indications arise for magnetic field
therapy, the MedStim system will be in an ideal position to fill these needs due to its highly
consistent, thorough generation of pulsed magnetic fields.
In summary, the clinical advantages of the MedStim system are:
 Magnetic field generated is safe, comfortable, and effective, even in the stimulation of deep
musculature.
 Logic Controller is easy to program and operate, allowing for possible home health
applications.
 Array of Coils is easy to apply so as to provide effective, maximal stimulation of the
underlying musculature with no need for a highly skilled operator once settings on logic
controller are established.
 Array of Coils can be used multiple times on a single patient, helping to make the device
more cost-effective.
 Flexibility of configuration of Array of Coils allows treatment of a variety of conditions
including systemic processes, such as Guillain-Barre, and local processes such as isolated
fractures.
 Use of the MedStim system will result in a more rapid return to functionality for patients and
will decrease subsequent Physical Therapy required after the period of immobilization. Due
to these factors, implementation of the MedStim system is a cost-effective therapy.
Page 9
MedNexis, Inc.
It is postulated, that there are less well-defined benefits to magnetic stimulation, such as
increasing blood flow, activating the immune system, and promoting wound healing. This will
allow entry of the TheraMag system into the alternative medicine market in an altered form in
which maximum magnetic fields generated will be non-contractile to underlying musculature.
The TheraMag system, though, will still be able to provide magnetic stimulation greater than
any device currently available in the alternative medicine market in a more user-friendly
fashion.
In summary, the clinical advantages of the TheraMag system are:
 Flexibility and ease-of-use identical to the MedStim system.

 Generation of dynamic magnetic fields with greater amplitude than existing devices in a
systematic and controlled manner.
 Competitive price structure
3.2 Competitive Comparison
Current competition for the MedStim system consists mainly of the following devices: Neotonus'
Neotone, MagStim's Model 200, 220, 250, and Quadropulse 500. These devices use pulsed
magnetic fields to induce muscular contraction. The base cost of Neotone, MedStim's primary
competitor, is $20,000, while MagStim's model 200 starts at $19,800. What these devices lack,
though, is an easy-to-use, cost-effective means of inducing this contraction. Due to the fact
that all of these devices employ a single, focused coil in inducing muscular contractions, they
also require a skilled, trained user at the controls. While this may be practical for diagnostic
purposes, which is the main use of the MagStim devices, it is not cost-effective for the
treatment of atrophy, and it is surely not cost-effective for the prevention of muscular atrophy.
In summary, the key advantages of the MedStim system over Neotonus' and MagStim's devices
are:
 Much easier to use and apply with possible applications in a home healthcare setting.
 Allows for a more consistent therapy due to ergonomic wrap targeting key nerves and no
requirement for a highly trained operator to constantly manipulate the device for adequate
therapy.
 Allows treatment of multiple sites in a sequential, timely fashion due to multiple ports on
the logic controller and multiple coils stimulated by each port, as opposed to the single
stimulatory coil of competing devices.
Page 10
MedNexis, Inc.
The only other main field of competition for the MedStim system is the alternative electrical
stimulation technology, which is considered less effective. To summarize, the key advantages of
the MedStim system over electrical stimulation are:
 Magnetic field generated is safe, comfortable, and effective, even in the stimulation of deep
musculature.
 Logic Controller is easy to program and operate, allowing for possible home health
applications with leasing of the system.
 Array of Coils is easy to apply so as to provide effective, maximal stimulation of the
underlying musculature.
 Array of Coils can be used multiple times on a single patient, helping to make the device
more cost-effective.
 Flexibility of configuration of Array of Coils allows treatment of a variety of conditions
including systemic processes, such as Guillain-Barre, and local processes such as isolated
fractures.
The TheraMag system is also a new innovation whose competition will include currently existing
alternative medicine magnetic field generation devices. Key advantages of the TheraMag
system over these devices are:
 Flexibility and ease-of-use identical to the MedStim system.

 Generation of magnetic fields with greater amplitude than existing devices in a systematic
and controlled manner.
3.3 Sourcing
Primary raw materials needed for MedNexis products are as follows:
 Electrical components (capacitor, wiring, etc) for Logic Controller and Arrays of Coils.
 Molds for external console of Logic Controller.
 Material for wraps in which induction coils will be placed.
All of these components are easily sourced and multiple suppliers have been identified.
MedNexis will establish business relationships with these suppliers to be negotiated for
preferred pricing structures without compromising quality standards. Two viable manufacturers
have been identified: Colorado MedTech in Boulder, CO and JCD Manufacturing in Nashville, TN.
Both companies specialize in manufacturing electronic medical equipment.
3.4 Technology
A patent has been authored and filed for the MedStim and TheraMag systems. This patent takes
into account both offensive and defensive postures in its claims. Opinions of legal counsel are
strong that MedNexis' patent applications are enforceable and defensible.
Care has been taken to file all potential claims of the invention in order to protect it from
possible competition from other technologies.
All patent application documents will be made available for examination by potential investors.
Trademark applications are in process on the names MedStim, TheraMag and MedNexis. No
conflicts or other use of these names has been found in an initial search.
Page 11
MedNexis, Inc.
3.5 Future Products
Plans for future development by MedNexis include new concepts and technologies to be created

by the company. For example, the company intends to expand its MedStim line by introducing
more specialized products that offer highly technical users more sophisticated features, such
as advanced logic controllers that provide enhanced control and generate detailed patient data
relative to current and past treatments. These units will also incorporate more durable
componentry.
Additionally, the company will expand its TheraMag line by developing new products tailored to
specific consumer segments, as well as alternative medicine providers such as wellness
centers. In addition, MedNexis may seek to acquire technologies developed by other
companies and individuals to strategically achieve market penetration and additional business
for the company, once it attains sufficient capitalization to do so. It is the objective of MedNexis
to both innovate and market its products to other potential market segments and geographical
regions. Once an industry reputation has been achieved and marketing channels are feasible,
expansion into other medical device areas should be highly rewarding.
4.0 Market Analysis Summary
The market for our two-component device currently consists of two key market sectors:
1. The healthcare field for the prevention and treatment of muscular atrophy; and
2. The alternative medicine field for the application of potentially therapeutic, non-stimulatory
magnetic fields.
The potential healthcare market sector consists of patients with diseases that result in
immobilization of musculature for any length of time. The alternative health market consists of
those patients who believe in the therapeutic effects of non-contractile magnetic fields.
The two key factors influencing discussion of MedNexis, Inc.'s markets are as follows:
 The prevalence of conditions in which the MedStim system would be indicated.

 The size and growth of the alternative medicine magnetic stimulation market in which
TheraMag will compete.
4.1 Market Segmentation
Currently there are two main markets for our two-component device: healthcare applications
for the prevention/treatment of muscular atrophy (MedStim) and alternative medicine
applications in which the device will be used for the potentially therapeutic benefits of non-
contractile magnetic field stimulation (TheraMag).
In estimating the sale of logic controllers, obsolescence and machine failure are the only
reasons for the replacement of the devices. Due to wear and tear, we have assumed a useful
life of 2 years for each logic controller and in our projections, we have also assumed that the
logic controllers are replaced after their useful life has expired. Due to the multiple
configurations of AOCs, the sale of AOCs is expected to be approximately five AOC's per LC.
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MedNexis, Inc.
U.S. Market
The U.S. market will be the initial target market. This market can be broken down into the two
main applications: (1) Prevention and Treatment of Muscular Atrophy and (2) Alternative
Medicine Applications.
Prevention and Treatment of Muscular Atrophy Market
Prevalence of medical indications for use of the MedStim system in the U.S. are as follows:
All Fractures 9,600,000

Induced Paralysis for Mechanical Ventilation 963,000
Persistent Vegetative State 106,000
Paralysis of one or more Extremities 2,430,000
Guillain-Barre Syndrome 3000
Source: National Center for Health Statistics- 1997
The estimated percentages of these patients that are treatable with the MedStim system are as
follows:
Fractures 10%
Mechanical Ventilation 75%
All others 100%
Using this data, and assuming both that hospitals will require one unit of the programmable
logic controller and five arrays of coils per ten patients treated, the potential annual U.S.
market for the MedStim components in 2001 is projected to be: 421,825 LCs and 2,109,125
AOCs.
Although there has been little activity to date in this sector, Neotonus has developed a
magnetic device for urological uses that has gained FDA approval and has been received by
allopathic practitioners. In the fourth quarter of 1999, the company sold 73 systems vs. just
one during the same period in the previous year. The number of patient treatments performed
on this installed base increased over 70% from third quarter 1999 to fourth quarter 1999. More
than 20,000 treatments have been administered through January 2000. In October 1999,
Neotonus received $7.3 million in a second round of venture capital funding, bringing its total
funding to $12.2 million.
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MedNexis, Inc.
Alternative Medicine Market
The current U.S. market for alternative medicine applications is growing rapidly. Total visits to
alternative medicine providers increased 47.3% from 427 million in 1990 to 629 million in
1997. Expenditures during this period increased 45.5% and is estimated at $21.2 billion in
1997, with at least $12.2 billion paid out of pocket, exceeding out-of-pocket expenditures for all
U.S. hospitals. Further growth is anticipated as U.S. insurers offer more and more alternative
medicine programs and benefits. Moreover, in 1994, there were 59,000 licensed alternative
medicine practitioners in chiropractic, oriental medicine (acupuncture and herbal medicine), and
naturopathy (Health Affairs 15(3), Fall 1996, pp. 226-238.).
Additionally, 15 million adults took prescriptions concurrently with alternative medicine

remedies. The potential market for energy therapy devices, of which magnetism is the most
popular, is 40 million (source: JAMA Vol 280, No 18, pp 1571-1573). Conservatively, assuming
only 20% of these consumers would employ magnetism as their source of energy therapy, the
size of the market for magnetism in alternative medicine is approximately 8 million consumers.
Assuming less leasing in the alternative medicine industry and more out-of-pocket purchases,
we expect to sell 1 LC for every 5 patients and conservatively estimate one AOC per patient.
The potential size of the U.S. market under these assumptions is 1.6 million LCs and 8
million AOCs per year.
Insurance Concerns
While some health plans and self-insured employers, as well as Medicare, voluntarily cover, or
are considering covering alternative medicine, some states have issued mandates. For example,
a law in New York that went into effect on January 1, 1998, requires insurers to cover up to 15
chiropractic visits per year. Altogether, in early 1995, 41 states reportedly required private
insurers to offer chiropractic, either as a rider or mandated as a benefit services (National
Journal Group, Inc., "Access/Quality/Cost - Alternative Treatments: Acceptance is Increasing,"
American Health Line, January 30, 1995). Additionally, according to Oxford Health Plans, 8
states currently mandate that insurers offer acupuncture treatments.
Of all 50 states, Washington state has had the most extensive mandate. A law that took effect
on January 1, 1996, requires health plans to provide access to licensed providers of alternative
health care. It states that all categories of providers will be given equal treatment by insurance
companies. The law initially mandates that, in every health plan, insurers must cover visits to
chiropractors, acupuncturists, naturopaths, and other alternative care providers. However, after
12 of the state's largest insurers challenged the mandate, a federal judge ruled that the
mandate was preempted by the Employee Retiree Income Security Act of 1974 (ERISA). In
turn, the ruling was changed so that the mandate applied only to state-regulated health plans.
As of April 1998, an appeal by the state was pending (National Journal Group, Inc., "Statelines
- Washington: Insurance to Cover Alternative Medicine," American Health Line, December 18,
1995, National Journal Group, Inc., "Statelines - Washington: Insurers Challenge Alternative
Care Mandate," American Health Line, January 10, 1996, National Journal Group, Inc.,
"Statelines - Washington: Insurers Freed from Alternative Care Mandate," American Health
Line, May 8, 1997).
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MedNexis, Inc.
Chart: Market Analysis (Pie)
Market Analysis (Pie)
U.S.- Atrophy Prevent/Treat
U.S.- Alternative Medicine
Other
Table: Market Analysis
Market Analysis
Potential Customers Growth CAGR
U.S.- Atrophy Prevent/Treat 5% 4,218,250 4,429,163 4,650,621 4,883,152 5,127,310 5.00%
U.S.- Alternative Medicine 5% 8,000,000 8,400,000 8,820,000 9,261,000 9,724,050 5.00%
Other 0% 0 0 0 0 0 0.00%
Total 5.00% 12,218,250 12,829,163 13,470,621 14,144,152 14,851,360 5.00%
4.2 Target Market Segment Strategy
Our Market Segment Strategies will be tailored to the targeted markets as follows:
Muscular Atrophy Prevention Market
Our primary markets in this segment are large medical institutions (i.e. universities, regional
hospitals, and HMOs) that are more likely to purchase our products in large volumes due to the
frequency of new patients. The key in this market is to gain acceptance of the MedStim system
as a cost-effective therapeutic device among healthcare providers. Our strategy involves "push"
tactics at the outset, in which we hope to establish our MedStim System as the standard
instrumentation used in key/renowned medical institutions for the treatment of muscular
atrophy. As our products gain acceptance among medical institutions, a "pull strategy" will
result, leading to demand of our products by other medical institutions. Initial sales of our
products will primarily be through demonstrations and introductions made by our marketing
personnel to medical institutions. Upon gaining market acceptance, the products may be sold
on proprietary websites, leading to penetration of a larger market segment.
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MedNexis, Inc.
The primary market for this segment will be individuals who subscribe to the effectiveness of
non-contractile magnetic field stimulation. This is a highly fragmented market that is naturally
segmented both by ailment type and preferred alternative remedy. More recent research
investigated the characteristics of persons who have used alternative medicine. First,
individuals with college or graduate degrees were found to be more likely to use alternative
medicine than those with high school education or less. Second, individuals reporting serious
health problems were more likely to use alternative medicine than healthier individuals.
Furthermore, the majority of individuals who used alternative medicine did so largely because
they viewed these practices as being compatible with their own values, beliefs, and philosophy
toward life and health, not because they were dissatisfied with conventional medicine (JAMA
279 (19), May 20, 1998). Subscribers source related information and products largely at the
local level, but with the proliferation of the internet have been able to effectively
access pertinent information. We plan to use existing channels to access the 40 million
alternative medicine users. Direct consumer sales will be encouraged by targeting alternative
healthcare forums and the consumers themselves. Catalog and website sales will be the main
channels of distribution for the TheraMag system.
4.2.1 Market Needs
There is a large unfulfilled need for devices that prevent atrophy of the musculature in today's
large health care facilities. While outpatient care is the fastest growing segment of the
healthcare industry, there is still a large percentage of patients each year who require extended
hospitalization time. Atrophy of the musculature of such patients can seriously impede recovery
time for such patients, and raise the costs of overall health care.
In addition, there are a significant number of individuals who suffer from paralysis of one form
or another. With the current research in genome and DNA promising the possibility of curing
such conditions, many patients with such conditions need to prevent serious muscle decay from
occuring if they wish to eventually lead normal lives.
Finally, there are those individuals who desire alternative methods of seeking good health and
solving existing medical problems. The use of magnetism in alternative medicine has been
around for decades, and more and more people are using non-traditional methods as the
popularity of such practices becomes more mainstream.
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MedNexis, Inc.
4.3 Industry Analysis
Our Industry Analysis is based on each individual market segments and breaks down as
follows:
Muscular Atrophy Prevention Market
The reason the market for atrophy treatment/prevention devices is untapped is due to the lack
of any user-friendly devices. The existing devices in the market, both Neotonus' and MagStim's
products, are difficult and awkward to use, requiring intensive training and skilled operation for
an effective therapy. While the trend in healthcare is expected to be towards magnetic
stimulation for treatment/prevention of muscular atrophy, these devices are not expected to
capture significant market share for the following reasons:
 Difficult and expensive to use with cost-intensive, skilled medical personnel required to
operate effectively.
 Awkward to use and inconsistent stimulation due to the single focused coil requiring
constant manipulation.
 Further inefficiency in the treatment of multiple muscle groups due to the single focus of
magnetic stimulation.
Atrophy is currently treated using electrical stimulation. Electrical devices, though, cannot

penetrate deeply enough to affect important musculature. Magnetism has been shown to
penetrate much more deeply than the current electrical stimulation, and much less painfully.
Magnetic stimulation also has potential indications that do not overlap those of electrical
stimulation. Due to its painless nature, magnetic stimulation can be used more frequently and
over a larger area of the body a disease, such as Guillain-Barre, would require virtually full-
body stimulation of key muscle groups. This would not be treatable with painful electrical
stimulation but can be treated using magnetism. Many of the potential indications for muscular
atrophy prevention, therefore, are not currently encompassed in the available electrical
stimulation industry data.
In summary, the healthcare industry can be expected to experience a trend towards magnetic
stimulation for the following reasons:
 Much less painful than electrical stimulation at submaximal thresholds and no risk of burn at
contact sites.
 Penetrates much more deeply than electrical stimulation.
 More frequent indication than electrical stimulation.
The alternative medicine industry is experiencing phenomenal growth in many arenas. Magnetic
stimulation is no exception. Industry estimates for potential markets incorporate current
magnetic field applications and projected growth of these fields. This market will likely provide
less resistance to entry than the data-intensive muscular atrophy prevention market.
The alternative healthcare market has experienced a trend towards use of magnetic stimulation
because of the proposed beneficial effects on circulation, immune system function, and wound
healing.
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MedNexis, Inc.
4.3.1 Industry Participants
To date, the company is not aware of any products that provide therapeutic care that is as cost
effective as the MedStim or TheraMag systems.
Prevention and Treatment of Muscular Atrophy
The only significant competitors in the therapeutic functional magnetic stimulation field are
Neotonus and MagStim. As detailed earlier, each of these companies produces a device with a
single stimulatory coil which requires intensive, skilled operator involvement. Even with a
skilled operator, treatments are lengthy (greater than 15 minutes per muscle group) and
inconsistent because constant manipulation is required to effect the desired result. These
devices are more suited to the diagnostic field, in which MagStim has captured the majority of
market share due to this fact. These devices, though, are not tailored to therapeutic application
of magnetic fields.
Medtronic Dantec, Digitimer, and Schwarzer GmbH are also involved in the magnetic
stimulation business, but have only produced devices for diagnostic purposes to date. Nihon
Kohden produces diagnostic stimulators, which are sold only in Japan.
Alternative Medicine Applications
Major companies competing in the alternative medicine magnetic therapy field include: BioFlex,
Tectonics, Nikken, MagnetRelief, Homedics, BMI, and Sota Instruments. Only Sota Instruments
has a dynamic magnetic therapy device, the Magnetic Pulser, which functions through induction
of a magnetic field through a conducting coil. This device, though, consists of only a single coil
and, therefore, will not cover a large region without constant manipulation. Also, this device is
significantly weaker than the TheraMag system.
All other products are either static magnets or not similar enough to the TheraMag device to
compete directly.
4.3.2 Distribution Patterns
Distribution patterns in the healthcare industry are such that the large buying groups dictate
what products are used for certain conditions throughout their sphere of influence. Thus, our
products could be mandated or forced out for thousands of patients due to endorsements by
their health plan or hospital group. Others recommend several alternatives which require
physician education and intervention, similar to pharmaceuticals.
In the alternative medicine industry, patients frequently choose their own therapy and method
of treatment. Due to this fact, this industry will require a much more intensive advertising
campaign than would be recommended for the healthcare industry. In addition, the company
expects to penetrate this market through direct marketing of our products on our proprietary
websites.
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MedNexis, Inc.
4.3.3 Competition and Buying Patterns
In the medical industry, product cost in and of itself is not paramount. However, the
effectiveness of the device is a major consideration for medical practitioners. The product must
deliver performance as promised in order to effectively treat the patient with the desired
results. It will be imperative to have data showing the cost-effectiveness of the MedStim
system. More rapid recovery, and thus less missed work, and reduced physical therapy costs
are the key economic parameters.
In the alternative medicine arena, more emphasis is placed on anecdotal accounts, and
advertising will be crucial for the TheraMag system. Beneficial trial results, though, could also
prove highly favorable for TheraMag sales.
MedNexis will succeed based upon the capability of its product in the healthcare industry and
the positioning of its product in the alternative medicine industry. After initial market resistance
to any new product, MedNexis' product can grow to dominate two market segments: the
market for prevention and treatment of muscular atrophy and the market for magnetic therapy
in alternative medicine. Both are large and growing markets.
5.0 Strategy and Implementation Summary
General
Our strategy will be to target both the market for prevention/treatment of muscular atrophy
and the alternative medicine market for non-stimulating magnetic therapy. The latter use will
require no FDA approval while the former use will for widespread market acceptance. The
device will be marketed separately and under different names in each market, and will have
decreased power in the alternative medicine market ensuring that its magnetic fields will be
non-stimulatory.
MedNexis will pursue specific market segments with a multi-tiered, multi-channel approach in
each market. We will leverage our technologies with a direct sales and distribution strategy in
both the alternative medicine and atrophy treatment/prevention markets. The former market
will also be targeted using more consumer-directed advertising while the latter will be targeted
using a sales force approach and contract sales. Insurance company reimbursement will provide
for more wide-spread acceptance and is expected by Year 3. Currently, competitors in the
industry are applying for insurance reimbursement codes and expect that they will be granted
within the next year. This will make the process quicker and easier for our devices due to
similar functionality. Even prior to insurance reimbursement, though, the expected benefits are
great enough that out of pocket purchases are expected and accounted for in projected sales.
Manufacture of the devices will be accomplished through external contracting for Years
1 through 5 to minimize risk for potential investors. Upon realization of its projected level of
sales, the company will seek to study the feasibility of manufacturing facilities of its own to
improve on its cost structure and increase its profitability.
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MedNexis, Inc.
The company will seek to market to all regions in United States through the establishment of
our products at key medical institutions throughout the country. A strategic partnership has
already been formed with the Physical Therapy department at Duke University. Once 510(k)
approval has been obtained and a fully functional prototype is made available, clinical studies
will commence with the assistance of Dr. Daniel Dore, Director of Clinical Services in the
Physical and Occupational Therapy department at Duke University. Dr. Dore is excited to begin
the studies and to be a part of a technology which he feels has the potential to revolutionize the
industry.
5.1 Marketing Strategy
Marketing will follow from industry and trade and physician awareness campaigns to specific
executions directed at specific customer segments. The top tier of 20 to 30 customers in each
segment will be the initial focus. These include the following organizations:
Facility City
Alamance Regional Medical Ctr. Burlington
Cape Fear Valley Medical Ctr. Fayetteville
Carolinas Healthcare System Charlotte
Central Carolina Hospital Sanford
Duke University Medical Ctr. Durham
Durham Regional Medical Ctr. Durham
Frye Regional Medical Ctr. Hickory
Grace Hospital Morgantown
Harris Regional Hospital Sylva
Haywood Regional Medical Ctr. Clyde
Highsmith-Rainley Memorial Hospital Fayetteville
Hilton Head Medical Ctr. Hilton Head
Iredell Memorial Hospital Smithfield
Margaret R. Pardee Memorial Hospital Hendersonville
Memorial Mission Medical Ctr., Inc. Asheville
Morehead Memorial Hospital Eden
Moses Cone Health System Greensboro
Park Ridge Hospital (Adventist) Fletcher
Presbyterian Healthcare System Charlotte
Rex Healthcare Raleigh
Rowan Regional Medical Ctr. Salisbury
University Health System of Eastern Carolina Greensville
University of North Carolina Hospital Chapel Hill
Wake Forest University Baptist Hospital Winston-Salem
Wake Med Raleigh
Watauga Medical Ctr. Boone
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MedNexis, Inc.
We intend to market MedStim through direct sales efforts. Direct sales are necessary because
our product is so revolutionary. Also, we do not believe that distributors would be efficient to
develop, nor would they be effective at promoting our product. We believe that the high-cost
nature of our product in the allopathic market is well suited to a direct sales effort, and we
intend to pursue this method as our channel of choice for the foreseeable future.
Customers will also be able to view our products online. The online information will allow
potential customers to become educated on the applications, benefits, and costs of our
products.
MedNexis will achieve its initial sales goals from direct and distributed sales of the MedStim and
TheraMag systems. The alternative medicine market is targeted first since it is an existing, well-
defined market and will require no FDA approval. The atrophy treatment/prevention market will
follow. While sales of MedStim are expected to be less than sales of TheraMag, sales of
MedStim are expected to provide significant cash flows and should develop into a "cash cow"
as the product's reputation is established. Thus, it will provide quality earnings to the company.
Because the alternative market is highly fragmented, our initial focus will be cities in the
following regions: North Carolina, Southern Virginia, and Washington DC, with the possibility of
Southern Florida. These are target markets because each has a high concentration of Sports
Medicine Clinics, Wellness Centers, and Massage and Physical Therapy Offices. In Phase 1, we
plan to send out informational videos with testimonials from physician's involved in the trials.
We will follow these mailings with office visits and product demonstrations. This targeted
marketing will be accompanied by advertisements in several popular health and fitness
magazines such as Prevention, Healthy Living, Golf Digest, Runner's World, and others. We plan
to build relationships with alternative medical products distributors such as painfreebody.com
and medfaxxinc.com to further penetrate the alternative medicine market. Online marketing
will be conducted by placing advertising links to our website on several sites geared towards
alternative medicine and chronic pain.
5.1.1 Pricing Strategy
The MedStim and TheraMag systems are priced in two components, both in keeping with
industry standards.
MedStim:
 The logic controller is expected to retail at $18,500.

 The array of overlapping coils at $1,500.
TheraMag:
 The logic controller at $300 (reflects decreased power requirements and decreased
functionality)
 The array of overlapping coils at $80.
All collections in this plan for cash flow purposes are based on an average 45-day collection
span.
5.1.2 Promotion Strategy
Public relations and industry media will help in over-all industry awareness plans. Feature
articles and product reviews will help launch awareness. Direct mail to buying groups and ads in
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MedNexis, Inc.
trade publications will help with buyer impressions. Finally, all will be integrated with physician
materials and training videotapes to increase point-of-therapy usage.
MedNexis has already worked closely with physicians to design its products. The importance of
working with physicians is well known. Initiation of clinical studies with the eager assistance of
Dr. Daniel Dore, Director of Clinical Services in the Physical and Occupational Therapy
department at Duke University will be invaluable in the promotion of MedStim as a viable
medical therapy. It is expected that once the device is found to be effective, Duke University
will use it as a high-profile example of its technological advancement.
5.2 Competitive Edge
MedNexis' competitive edge in this field arises due to the fact that it has filed a patent
application for the MedStim and TheraMag systems. It is the patent agent's strong opinion that
the patents will defensible and enforceable.
Competitive Strengths:
(1) Currently no similar product in the market that is as effective as the MedStim or TheraMag
system
There is currently no product which will be able to provide consistent treatment as cost-
effectively the MedStim System. The launch of our products is expected to be warmly welcomed
by the medical and healthcare industry as a breakthrough.
(2) Magnetism is seen as one of the key energy healing techniques used in alternative medicine
It is documented that there are numerous groups in the world (i.e. ethnic, religious, etc.) that
believe that magnetic energy possesses healing properties, though not always proven. There is
currently medical research being conducted to examine and evaluate these healing properties.
This presents a potential market for the company to further increase its prospective sales in the
alternative medicine industry.
Vulnerabilities:
Alternative technologies
We recognize that potential alternative technologies may arise which may provide similarly
cost-effective, user-friendly treatments in the healthcare industry. However, with monitoring of
developments within the bio-medical industry and keeping abreast with the latest innovations in
the industry, Mednexis will seek to maintain its lead in its field of expertise and compete
effectively against potential entrants, thereby maintaining its market position and competitive
edge.
5.3 Sales Strategy
MedNexis' sales strategy is to open U.S. alternative medicine markets on a limited basis at the
start of operations with the TheraMag system. Assuming 510(k) approval is obtained, MedStim
will be introduced during this period as well. In domestic markets, insurance company
reimbursement will provide for more wide-spread acceptance and is expected by Year 3. Even
prior to insurance reimbursement, though, the expected benefits are great enough that out-of-
pocket purchases are expected and accounted for in projected sales. The strategy will then be
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10 M
9 Month
8 Month
MedNexis, Inc.
7 Month
6 Month
to grow the atrophy prevention/treatment and alternative medicine markets through Year 5 up
to 10% and 15% penetrations, respectively. International markets will follow.
5 Month
4 Month
The sales strategy for the atrophy prevention/treatment market will be to pursue large
3 Month
contracts with HMOs and medical groups and increase its reputation amongst physicians. The
strategy in the alternative medicine market, however, will be to target the end-user with
2 Month
intensive advertising campaigns.
1 Month
Month
Month
Chart: Sales Monthly
Sales Monthly
$60,000
$50,000
MedStim- Logic Controller

$40,000
MedStim- Array of Coils
$30,000 TheraMag- Logic Controller
$20,000 TheraMag- Array of Coils
$10,000
$0
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MedNexis, Inc.
Table: Sales Forecast
Sales Forecast
Unit Sales
MedStim- Logic Controller 1 44 465 1,302 3,416
MedStim- Array of Coils 5 221 2,790 9,115 27,346
TheraMag- Logic Controller 250 4,200 26,460 83,349 194,481
TheraMag- Array of Coils 250 4,200 26,460 83,349 194,481
Total Unit Sales 506 8,665 56,175 177,115 419,724
Unit Prices Year 1 Year 2 Year 3 Year 4 Year 5

MedStim- Logic Controller $18,500.00 $17,619.05 $16,780.05 $15,981.00 $15,220.00
MedStim- Array of Coils $1,500.00 $1,575.00 $1,653.75 $1,736.44 $1,823.26
TheraMag- Logic Controller $300.00 $315.00 $330.75 $347.29 $364.65
TheraMag- Array of Coils $80.00 $84.00 $88.20 $92.61 $97.24
Sales
MedStim- Logic Controller $18,500 $775,238 $7,802,721 $20,807,256 $51,991,506
MedStim- Array of Coils $7,500 $348,075 $4,613,963 $15,827,628 $49,858,851
TheraMag- Logic Controller $75,000 $1,323,000 $8,751,645 $28,946,066 $70,917,861
TheraMag- Array of Coils $20,000 $352,800 $2,333,772 $7,718,951 $18,911,430
Total Sales $121,000 $2,799,113 $23,502,101 $73,299,901 $191,679,647
Direct Unit Costs Year 1 Year 2 Year 3 Year 4 Year 5

MedStim- Logic Controller $3,000.00 $3,090.00 $2,809.09 $2,553.72 $2,321.56
MedStim- Array of Coils $300.00 $309.00 $280.91 $255.37 $232.16
TheraMag- Logic Controller $200.00 $190.48 $181.41 $172.77 $164.54
TheraMag- Array of Coils $50.00 $47.62 $45.35 $43.19 $41.14
Direct Cost of Sales

MedStim- Logic Controller $3,000 $135,960 $1,306,227 $3,324,942 $7,930,458
MedStim- Array of Coils $1,500 $68,289 $783,736 $2,327,715 $6,348,545
TheraMag- Logic Controller $50,000 $800,000 $4,800,000 $14,400,000 $32,000,000
TheraMag- Array of Coils $12,500 $200,000 $1,200,000 $3,600,000 $8,000,000
Subtotal Direct Cost of Sales $67,000 $1,204,249 $8,089,964 $23,652,657 $54,279,004
5.3.1 Sales Programs
Sales programs will include direct wholesale sales. Sales materials, video training tapes, and
support materials will be produced. Physician materials will be included.
Direct sales will be through personal contact, direct mail, public relations, and media directed at
key industry segments. In addition, electronic marketing will be deployed whenever it fits with
the buying patterns of a key group. A commerce-enabled website will be utilized to cultivate
direct sales to key industry groups.
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MedNexis, Inc.
5.4 Milestones
The following are the key milestones for the first year of operations:
1. All patents will be applied for by January 1, 2001. The total legal fees are expected to be
less than the $50,000.
2. Start-up capital will be raised by October 1, 2001
3. Completion of strategic business plan.
4. All other first year milestones are currently on schedule in accordance to the business plan.
Chart: Milestones
Milestones
Patent Applications Complete
Corporate Identity
510(k) Application Submitted
Sales Launch / Road Show
Engineering/Manufacturing Personnel
Investment - Tranche 2
3/31/2000
9/30/2000
3/31/2001
9/30/2001
3/31/2002
9/30/2002
3/31/2003
9/30/2003
3/31/2004
9/30/2004
3/31/2005
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department

Business Plan 12/5/2000 3/22/2000 $3,200 Burnett Finance
Patent Applications Complete 12/1/2000 6/1/2000 $55,000 Callahan Legal
Supplier Selection 3/1/2001 5/1/2000 $18,000 Marriott R&D
Corporate Identity 5/1/2001 8/1/2001 $2,250 Bell G&A
CEO Hire 7/1/2001 10/1/2001 $25,000 Management G&A
510(k) Application Submitted 6/1/2001 9/1/2001 $5,000 Callahan Legal
Set-up Information Systems 8/1/2001 11/15/2001 $68,000 Marriott G&A
Sales Launch / Road Show 10/1/2001 12/1/2001 $60,000 Bell Marketing
Global Marketing Plan 6/1/2002 12/1/2002 $150,000 Bell Marketing
Engineering/Manufacturing Personnel 6/1/2003 10/1/2003 $26,000 Marriott Operations
Investment - Tranche 1 8/1/2001 10/1/2001 $0 Chia/Wain Finance
Investment - Tranche 2 6/1/2002 8/1/2002 $0 Chia/Wain Finance
Name me 9/1/2005 9/15/2005 $0 Chia/Wain Finance
Totals $412,450
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MedNexis, Inc.
6.0 Regulatory Issues
While it is expected that FDA approval will be gained quickly based on the approval of similar
devices, MedNexis' products will be produced and marketed prior to this approval. By clearly
labelling the device "For Investigational Use Only," MedNexis will be able to market and sell the
device to interested parties prior to FDA approval. An example of such expedited market
entrance can be seen with the laser vision correction procedure LASIK. Prior to its approval by
the FDA in Winter of 1999, LASIK had been performed on 900,000 patients through labeling the
laser as "For Investigational Use Only." We hope to similarly expedite market entrance.
Once FDA approval is obtained for MedNexis' products, the market is expected to expand
dramatically and entrance into foreign markets will be possible. At this stage, as well, it is
expected that insurance companies will begin reimbursing for magnetic therapy, greatly
increasing demand for MedNexis' products. There is past precedent in 510k approvals (in an
average of 3 months) in documented cases.
7.0 Management Summary
The founders of MedNexis are Daniel Burnett, Loy Hong Chia, Michael Marriott, and Nathan
Wain. Daniel will serve the company as Director of Research and Development, Nathan Wain
will serve as interim Chief Financial Officer, and Michael Marriott will serve as interim Chief
Operations Officer. Loy will serve the company as Director of Finance & Corporate
Development. A Chief Executive Officer will be recruited.
Their biographies follow in the Management Team section. Several key people are being
sought, and they are summarized in Management Team Gaps.
7.1 Management Team
Principals:
Mr. Loy Hong Chia: Mr. Chia graduated from Griffith University (Brisbane, Australia), with a
triple major in Accounting and Finance, Economics, and Management of Information Systems in
1993. He joined PricewaterhouseCoopers (Singapore) in the Audit Division upon graduation. His
experience includes industry bases such as information technology, manufacturing, trading, and
other key industry sectors. Subsequently, Mr. Chia joined a leading investment bank in
Singapore covering the Asian markets. His responsibilities included corporate advisory work and
management of teams for Initial Public Offerings and Mergers & Acquisitions. Mr. Chia is a CPA
(Australian Society of Certified Public Accountants) and is also currently a director of a start-up
company in Singapore involved in the providence of banking intelligence. The company was
incorporated in 1996 and its principle activities include a banking journal publication,
proprietary research reports, and round-tables for senior bankers in the Asia Pacific region. Mr.
Chia is currently enrolled at the Fuqua School of Business, Duke University, Class of 2001.
Mr. Daniel Burnett: Currently an MD/MBA student at Duke University, Mr. Burnett has a long
history of biomedical device design and testing. During his undergraduate career at the
University of Pennsylvania, Mr. Burnett concentrated in Biomedical Engineering with a
cumulative GPA of 4.0 in his major. While pursuing his undergraduate degree, he led a team
which designed toys for children with cerebral palsy and was subsequently awarded the
Excellence in Senior Design Award by the Department of Bioengineering. To augment his
academic experience, Mr. Burnett spent a total of 10 months at the FDA, both testing devices
and writing congressional reports on the current state-of-the-art devices. In addition to
currently pursuing an MD/MBA, Mr. Burnett also has invented a myringotomy tube insertion
Page 26
MedNexis, Inc.
device (patent pending) and has worked on the development of the MedStim and TheraMag
systems (patent pending).
Mike Marriott: Mr. Marriott graduated from the University of Utah with a degree in History and
Economics in 1995. Subsequently, Mr. Marriott has had experience developing businesses in the
retail and hospitality industries. He designed and develop the Switchback Grille and Trading
Company, the Countryside Grille and Pizza Company, and functioned as a franchisee for
Country Kitchen Restaurant. Mr. Marriott handled the business development responsibilities for
each organization and served as the general manager of each property. Currently, he is a
candidate for an MBA from the Fuqua School of Business in May 2000
Nathan Wain: A candidate for MBA, class of 2001 at Duke University's Fuqua School of
Business. Mr. Wain's experience consists of founding and operating United Fitness Centers of
America (UFCA) Marketing, Inc. UFCA provides marketing and management consulting services
to fitness centers. Mr. Wain was president of the company from November 1991 to May 1999.
Mr. Brian Bell: A Georgetown graduate and currently an MBA student at Duke University,
Brian spent over seven years flying for the Navy as a Naval Flight Officer and Flight Instructor
in P-3's and T-1's. His Navy background also includes scheduling and operations management,
as well as material procurement and aircraft maintenance.
Consultants:
Dr. Daniel Dore: Dr. Dore is currently the Director of Clinical Services in the Physical and
Occupational Therapy department at Duke University. He has assisted in the launch and
management of multiple clinical trials which have set the standard for physical therapy care.
Dr. Dore will be assisting MedNexis in the management of its research.
7.2 Management Team Gaps
An experienced CEO is actively being sought. The founders of the company will conduct the
search. The desired profile is for a CEO experienced in the medical device arena, ideally who
was part of a previous successful start-up venture.
The CEO will help to identify and bring in a Vice President of Sales and Marketing.
The company will search for design engineers and consultants.
Page 27
MedNexis, Inc.
7.3 Personnel Plan
The Personnel Plan chronicles the growth of the organization to approximately 40 - 60
employees in the first five years. The third year could require a few additional people besides
those indicated, based on the growth of the company in accordance with the business plan.
Table: Personnel
Personnel Plan
Production Personnel
Production Manager $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0
Sales and Marketing Personnel

VP Sales/Marketing $36,000 $90,000 $95,000 $180,000 $210,000
Sales Manager $0 $65,000 $160,000 $240,000 $420,000
Field Sales Manager $0 $55,000 $130,000 $180,000 $280,000
Marketing/Product Manager $0 $65,000 $140,000 $156,000 $250,000
Sales Reps $0 $280,000 $560,000 $1,120,000 $1,820,000
Sales Administrator $0 $60,000 $130,000 $240,000 $560,000
Other $0 $20,000 $25,000 $40,000 $70,000
Subtotal $36,000 $635,000 $1,240,000 $2,156,000 $3,610,000
General and Administrative Personnel

CEO $72,000 $150,000 $180,000 $230,000 $300,000
CFO $48,000 $120,000 $160,000 $210,000 $270,000
VP Corp Development $10,000 $85,000 $92,000 $100,000 $120,000
Executive Assistant $4,000 $30,000 $70,000 $80,000 $140,000
Executive Secretary $0 $24,000 $80,000 $120,000 $130,000
Controller $0 $0 $48,000 $56,000 $78,000
Adminstrative Staff (4) $0 $0 $88,000 $96,000 $120,000
Other $0 $10,000 $13,000 $18,000 $24,000
Subtotal $134,000 $419,000 $731,000 $910,000 $1,182,000
Other Personnel
VP Research & Development $48,000 $90,000 $120,000 $130,000 $150,000
Quality Contol Engineer $0 $50,000 $60,000 $68,000 $75,000
Design Engineer $36,000 $75,000 $80,000 $88,000 $100,000
Research Engineers (2) $0 $0 $140,000 $154,000 $170,000
Junior Engineer $15,000 $45,000 $52,000 $60,000 $68,000
Other $0 $0 $0 $0 $0
Subtotal $99,000 $260,000 $452,000 $500,000 $563,000
Total People 7 20 33 45 60
Total Payroll $269,000 $1,314,000 $2,423,000 $3,566,000 $5,355,000
Page 28
MedNexis, Inc.
8.0 Financial Plan
CAPITAL RAISING ("THE OFFER")
The company intends to raise an amount of approximately $750,000 of seed capital. $250,000
has already been committed by management.
Current Capital Structure
Shares Authorized Shares Issued

15,000,000 common 1,500,000 common
1,000,000 preferred 0 preferred
Current Shareholders:
Daniel Burnett
Mike Marriott 300,000 shares
Nathan Wain 300,000 shares
Brian Bell 300,000 shares
For $750,000, the investing party will receive 750,000 preferred shares, or 33.3% of the
company. Preferred shares will include senior debt and anti-dilution provisions as negotiated.
Utilization of Proceeds:
Working capital
The proceeds from the offer will be used to fund the working capital requirements of the
company (and its subsidiary and associated companies, if any).
Acquisition of assets
Land & building, plant & machinery, and other fixed assets will be purchased as and when
deemed necessary to maximize the profits of the company
Cashflows incidental to the normal business operations of the company.
Funds will be used for the purpose of business operations of the company.
Exit Considerations
The most likely exit afforded investors will be through acquisition. If the company's actual
operational and financial results are in any reasonable range of the projected results herein, the
company will become an attractive asset to an acquisitive competitor or larger medical device
company. No particular competitor or medical device company is thought to be more likely than
another to be interested in MedNexis' technology.
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MedNexis, Inc.
To the extent that actual operational results materially exceed those projected herein,
the probability of an IPO exit increases. Exceptional results would enhance the Mednexis brand
name and financial position, making new product development and the likelihood of new
product success more plausible. In this scenario, the opportunity to raise capital and provide an
investment exit to shareholders becomes more likely.
A third exit possibility for investors may be an acquisition after IPO. This strategy would allow
an investor to delay exit until after capital from an IPO is invested in successful projects, further
raising the value of the firm.
Page 30
MedNexis, Inc.
8.1 Break-even Analysis
The break-even analysis below is based on estimates for fixed costs, average revenue per unit
and average variable cost per unit for both MedStim and TheraMag systems.
Chart: Break-even Analysis
Break-even Analysis
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
($10,000)
($20,000)
($30,000)
($40,000)
($50,000)
0 100 200 300 400 500 600 700 800 900 1000 1100
Table: Break-even Analysis
Break-even Analysis
Monthly Units Break-even 545

Monthly Revenue Break-even $130,241
Assumptions:
Average Per-Unit Revenue $239.13
Average Per-Unit Variable Cost $132.41
Estimated Monthly Fixed Cost $58,124
Page 31
MedNexis, Inc.
8.2 Important Assumptions
Demand
 Using 1997 data, 10% of all patients with reported fractures (the approximate rate of
fractures that result in muscular fibrosis), 50% of all patients with reported long-term
immobilization, and 100% of all patients with reported paralysis or coma were considered
potential customers for MedStim.
 20% of consumers who visited an energy healer in 1997 (202 consumers per 1,000 in
population) were considered potential customers for TheraMag (magnetism was the most
frequently used modality reported among energy healers between 1990 and 1997). Total
Energy healing devices used between 1990 and 1997 were 40 million.
Product Mix
 TheraMag will be leased less frequently than MedStim, thus the total potential market for
logic controllers (LC) will be 1 for every potential customer. MedStim will be owned by
hospitals and leased to patients more routinely and the total potential market for LCs will
be 1 for every 10 potential customers. The potential market for the arrays of overlapping
coils (AOC) will be as follows: single AOC per potential customer for the TheraMag system
and 5 AOCs per 10 potential customers for the MedStim system.
 In evaluating the breakeven volume, a unit was taken to be 1 LC and the AOCs sold along
with the LC in that market, ie for TheraMag, 1 unit was an LC and an AOC. For MedStim, 1
unit was an LC and 5 AOCs. The cost/unit and revenue/unit were then assumed to be the
average cost/unit and revenue/unit of the 2 products.
Sales/Revenues
 The maximum penetration of any market segment was conservatively estimated to be no

more than 3% by Year 5.
 Assume 5% growth of both costs/unit and price/unit.
 Insurance company reimbursement will be approved by year 3.
Table: General Assumptions
General Assumptions
Plan Month 1 2 3 4 5
Current Interest Rate 13.00% 13.00% 13.00% 13.00% 13.00%
Long-term Interest Rate 12.00% 12.00% 12.00% 12.00% 12.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0
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MedNexis, Inc.
8.3 Projected Profit and Loss
Barring any unforseen circumstances, MedNexis is anticipated to break-even by Year 3 of

operations. Profits for the company in subsequent years will accelerate with the increase in
anticipated sales volume.
Chart: Profit Yearly
Profit Yearly
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
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MedNexis, Inc.
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $121,000 $2,799,113 $23,502,101 $73,299,901 $191,679,647
Direct Cost of Sales $67,000 $1,204,249 $8,089,964 $23,652,657 $54,279,004
Production Payroll $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0
Total Cost of Sales $67,000 $1,204,249 $8,089,964 $23,652,657 $54,279,004
Gross Margin $54,000 $1,594,864 $15,412,137 $49,647,244 $137,400,644

Gross Margin % 44.63% 56.98% 65.58% 67.73% 71.68%
Operating Expenses
Sales and Marketing Expenses

Sales and Marketing Payroll $36,000 $635,000 $1,240,000 $2,156,000 $3,610,000
Advertising/Promotion $45,000 $50,000 $200,000 $300,000 $500,000
Travel $18,000 $40,000 $80,000 $150,000 $200,000
Research and Design Expenses $240,000 $1,000,000 $1,500,000 $2,250,000 $2,500,000
Miscellaneous $3,000 $10,000 $15,000 $22,000 $30,000
Total Sales and Marketing Expenses $342,000 $1,735,000 $3,035,000 $4,878,000 $6,840,000
Sales and Marketing % 282.64% 61.98% 12.91% 6.65% 3.57%
General and Administrative Expenses

General and Administrative Payroll $134,000 $419,000 $731,000 $910,000 $1,182,000
Sales and Marketing and Other Expenses $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0
Leased Equipment $0 $0 $20,000 $20,000 $20,000
Utilities $12,000 $12,360 $12,731 $13,113 $13,506
Insurance $30,000 $40,000 $40,000 $40,000 $40,000
Rent $24,000 $24,720 $25,462 $26,225 $27,012
Payroll Taxes $56,490 $275,940 $508,830 $748,860 $1,124,550
Other General and Administrative
$0 $0 $0 $0 $0
Expenses
Total General and Administrative Expenses $256,490 $772,020 $1,338,022 $1,758,198 $2,407,068
General and Administrative % 211.98% 27.58% 5.69% 2.40% 1.26%
Other Expenses:
Other Payroll $99,000 $260,000 $452,000 $500,000 $563,000
Consultants $0 $0 $0 $0 $0
Contract/Consultants $0 $20,000 $20,000 $20,000 $20,000
Total Other Expenses $99,000 $280,000 $472,000 $520,000 $583,000
Other % 81.82% 10.00% 2.01% 0.71% 0.30%
Total Operating Expenses $697,490 $2,787,020 $4,845,022 $7,156,198 $9,830,068
Profit Before Interest and Taxes ($643,490) ($1,192,156) $10,567,115 $42,491,046 $127,570,575
EBITDA ($643,490) ($1,192,156) $10,567,115 $42,491,046 $127,570,575
Interest Expense $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $3,170,134 $12,747,314 $38,271,173
Net Profit ($643,490) ($1,192,156) $7,396,980 $29,743,732 $89,299,403

Net Profit/Sales -531.81% -42.59% 31.47% 40.58% 46.59%
Page 34
MonthMo
8
MedNexis, Inc.
MonthMonth
6 7
8.4 Projected Cash Flow
Month 5
It will be noted that the company's cash flow will be steadily declining for the first year of
Month 4
operations. This is expected due to large capital investments and initial slow sales. the company
3
has calculated its financial plan so that it will have enough cash from investors and debt to
Month
survive until profitability reaches acceptable levels.
MonthMonth
1 2
Chart: Cash
Cash
$800,000
$700,000
$600,000
$500,000
Net Cash Flow
$400,000
Cash Balance
$300,000
$200,000
$100,000
$0
Page 35
MedNexis, Inc.
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $30,250 $1,119,645 $9,400,840 $29,319,960 $76,671,859
Cash from Receivables $40,470 $799,239 $7,218,971 $27,425,670 $75,654,839
Subtotal Cash from Operations $70,720 $1,918,885 $16,619,812 $56,745,630 $152,326,698
Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $750,000 $6,000,000 $342,000 $0 $0
Subtotal Cash Received $820,720 $7,918,885 $16,961,812 $56,745,630 $152,326,698
Expenditures Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from Operations

Cash Spending $269,000 $1,314,000 $2,423,000 $3,566,000 $5,355,000
Bill Payments $450,767 $4,325,205 $15,689,787 $39,319,931 $97,110,604
Subtotal Spent on Operations $719,766 $5,639,205 $18,112,787 $42,885,931 $102,465,604
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $30,000 $100,000 $150,000 $150,000 $150,000
Dividends $0 $0 $0 $0 $5,000,000
Subtotal Cash Spent $749,766 $5,739,205 $18,262,787 $43,035,931 $107,615,604
Net Cash Flow $70,954 $2,179,680 ($1,300,975) $13,709,699 $44,711,094

Cash Balance $152,954 $2,332,633 $1,031,658 $14,741,357 $59,452,451
Page 36
MedNexis, Inc.
8.5 Projected Balance Sheet
The table below presents the Balance Sheet for MedNexis.
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Current Assets
Cash $152,954 $2,332,633 $1,031,658 $14,741,357 $59,452,451
Accounts Receivable $50,280 $930,508 $7,812,797 $24,367,068 $63,720,018
Inventory $26,950 $1,984,126 $4,981,823 $6,339,058 $11,418,137
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $230,184 $5,247,267 $13,826,278 $45,447,483 $134,590,605
Long-term Assets
Long-term Assets $30,000 $130,000 $280,000 $430,000 $580,000
Accumulated Depreciation $0 $0 $0 $0 $0
Total Long-term Assets $30,000 $130,000 $280,000 $430,000 $580,000
Total Assets $260,184 $5,377,267 $14,106,278 $45,877,483 $135,170,605
Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5
Current Liabilities
Accounts Payable $71,674 $380,913 $1,370,944 $3,398,417 $8,392,136
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $71,674 $380,913 $1,370,944 $3,398,417 $8,392,136
Long-term Liabilities $0 $0 $0 $0 $0
Total Liabilities $71,674 $380,913 $1,370,944 $3,398,417 $8,392,136
Paid-in Capital $1,000,000 $7,000,000 $7,342,000 $7,342,000 $7,342,000

Retained Earnings ($168,000) ($811,490) ($2,003,646) $5,393,334 $30,137,066
Earnings ($643,490) ($1,192,156) $7,396,980 $29,743,732 $89,299,403
Total Capital $188,510 $4,996,354 $12,735,334 $42,479,066 $126,778,469
Total Liabilities and Capital $260,184 $5,377,267 $14,106,278 $45,877,483 $135,170,605
Net Worth $188,510 $4,996,354 $12,735,334 $42,479,066 $126,778,469
8.6 Business Ratios
The ratios contained herewith are not based on a post-diluted enlarged capital base. The figures
come from the Standard Industry Classification (SIC) Index code 3845, Electromedical
Equipment.
Page 37
MedNexis, Inc.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Year 4 Year 5 Industry Profile
Sales Growth n.a. 2213.32% 739.63% 211.89% 161.50% 0.00%
Percent of Total Assets

Accounts Receivable 19.32% 17.30% 55.39% 53.11% 47.14% 0.00%
Inventory 10.36% 36.90% 35.32% 13.82% 8.45% 0.00%
Other Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%
Total Current Assets 88.47% 97.58% 98.02% 99.06% 99.57% 100.00%
Long-term Assets 11.53% 2.42% 1.98% 0.94% 0.43% 0.00%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities 27.55% 7.08% 9.72% 7.41% 6.21% 0.00%

Long-term Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Liabilities 27.55% 7.08% 9.72% 7.41% 6.21% 0.00%
Net Worth 72.45% 92.92% 90.28% 92.59% 93.79% 100.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 44.63% 56.98% 65.58% 67.73% 71.68% 0.00%
Selling, General & Administrative 576.44% 99.57% 34.10% 27.15% 25.09% 0.00%
Expenses
Advertising Expenses 37.19% 1.79% 0.85% 0.41% 0.26% 0.00%
Profit Before Interest and Taxes -531.81% -42.59% 44.96% 57.97% 66.55% 0.00%
Main Ratios
Current 3.21 13.78 10.09 13.37 16.04 0.00
Quick 2.84 8.57 6.45 11.51 14.68 0.00
Total Debt to Total Assets 27.55% 7.08% 9.72% 7.41% 6.21% 0.00%
Pre-tax Return on Net Worth -341.36% -23.86% 82.97% 100.03% 100.62% 0.00%
Pre-tax Return on Assets -247.32% -22.17% 74.91% 92.62% 94.38% 0.00%
Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit Margin -531.81% -42.59% 31.47% 40.58% 46.59% n.a
Return on Equity -341.36% -23.86% 58.08% 70.02% 70.44% n.a
Activity Ratios
Accounts Receivable Turnover 1.80 1.80 1.80 1.80 1.80 n.a
Collection Days 38 107 113 134 140 n.a
Inventory Turnover 10.91 1.20 2.32 4.18 6.11 n.a
Accounts Payable Turnover 7.29 12.17 12.17 12.17 12.17 n.a
Payment Days 27 18 19 21 21 n.a
Total Asset Turnover 0.47 0.52 1.67 1.60 1.42 n.a
Debt Ratios
Debt to Net Worth 0.38 0.08 0.11 0.08 0.07 n.a
Current Liab. to Liab. 1.00 1.00 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $158,510 $4,866,354 $12,455,334 $42,049,066 $126,198,469 n.a
Interest Coverage 0.00 0.00 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 2.15 1.92 0.60 0.63 0.71 n.a
Current Debt/Total Assets 28% 7% 10% 7% 6% n.a
Acid Test 2.13 6.12 0.75 4.34 7.08 n.a
Sales/Net Worth 0.64 0.56 1.85 1.73 1.51 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.06 n.a
Page 38
MedNexis, Inc.
Page 39
Appendix
Table: Sales Forecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
MedStim- Logic Controller 0% 0 0 0 0 0 0 0 0 0 0 0 1
MedStim- Array of Coils 0% 0 0 0 0 0 0 0 0 0 0 0 5
TheraMag- Logic Controller 0% 0 0 0 0 4 6 10 15 30 45 60 80
TheraMag- Array of Coils 0% 0 0 0 0 4 6 10 15 30 45 60 80
Total Unit Sales 0 0 0 0 8 12 20 30 60 90 120 166
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
MedStim- Logic Controller $18,500.00 $18,500.00 $18,500.00 $18,500.00 $18,500.00 $18,500.00 $18,500.00 $18,500.00 $18,500.00 $18,500.00 $18,500.00 $18,500.00
MedStim- Array of Coils $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00
TheraMag- Logic Controller $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00
TheraMag- Array of Coils $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00
Sales
MedStim- Logic Controller $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $18,500
MedStim- Array of Coils $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,500
TheraMag- Logic Controller $0 $0 $0 $0 $1,200 $1,800 $3,000 $4,500 $9,000 $13,500 $18,000 $24,000
TheraMag- Array of Coils $0 $0 $0 $0 $320 $480 $800 $1,200 $2,400 $3,600 $4,800 $6,400
Total Sales $0 $0 $0 $0 $1,520 $2,280 $3,800 $5,700 $11,400 $17,100 $22,800 $56,400
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
MedStim- Logic Controller 0.00% $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00
MedStim- Array of Coils 0.00% $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00
TheraMag- Logic Controller 0.00% $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00
TheraMag- Array of Coils 0.00% $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00
Direct Cost of Sales

MedStim- Logic Controller $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,000
MedStim- Array of Coils $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,500
TheraMag- Logic Controller $0 $0 $0 $0 $800 $1,200 $2,000 $3,000 $6,000 $9,000 $12,000 $16,000
TheraMag- Array of Coils $0 $0 $0 $0 $200 $300 $500 $750 $1,500 $2,250 $3,000 $4,000
Subtotal Direct Cost of Sales $0 $0 $0 $0 $1,000 $1,500 $2,500 $3,750 $7,500 $11,250 $15,000 $24,500
Page 1
Appendix
Page 2
Appendix
Table: Personnel
Personnel Plan
Production Personnel
Production Manager $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales and Marketing Personnel

VP Sales/Marketing $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Sales Manager $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Field Sales Manager $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Marketing/Product Manager $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Reps $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Administrator $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
General and Administrative Personnel

CEO $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
CFO $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
VP Corp Development $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,000 $5,000
Executive Assistant $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,000 $2,000
Executive Secretary $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Controller $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Adminstrative Staff (4) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $17,000 $17,000
Other Personnel
VP Research & Development $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Quality Contol Engineer $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Design Engineer $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Page 3
Appendix
Research Engineers (2) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Junior Engineer $0 $0 $0 $0 $0 $0 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Total People 5 5 5 5 5 5 5 5 5 5 7 7
Total Payroll $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $22,500 $22,500 $22,500 $22,500 $29,500 $29,500
Page 4
Appendix
Table: General Assumptions
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00%
Long-term Interest Rate 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page 5
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $0 $0 $0 $0 $1,520 $2,280 $3,800 $5,700 $11,400 $17,100 $22,800 $56,400
Direct Cost of Sales $0 $0 $0 $0 $1,000 $1,500 $2,500 $3,750 $7,500 $11,250 $15,000 $24,500
Production Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $1,000 $1,500 $2,500 $3,750 $7,500 $11,250 $15,000 $24,500
Gross Margin $0 $0 $0 $0 $520 $780 $1,300 $1,950 $3,900 $5,850 $7,800 $31,900
Gross Margin % 0.00% 0.00% 0.00% 0.00% 34.21% 34.21% 34.21% 34.21% 34.21% 34.21% 34.21% 56.56%
Operating Expenses
Sales and Marketing Expenses

Sales and Marketing Payroll $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Advertising/Promotion $0 $0 $0 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Travel $0 $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Research and Design Expenses $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Miscellaneous $0 $0 $0 $0 $0 $0 $500 $500 $500 $500 $500 $500
Total Sales and Marketing Expenses $23,000 $23,000 $23,000 $30,000 $30,000 $30,000 $30,500 $30,500 $30,500 $30,500 $30,500 $30,500
Sales and Marketing % 0.00% 0.00% 0.00% 0.00% 1973.68% 1315.79% 802.63% 535.09% 267.54% 178.36% 133.77% 54.08%
General and Administrative Expenses

General and Administrative Payroll $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $17,000 $17,000
Sales and Marketing and Other
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Insurance $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll Taxes 21% $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,725 $4,725 $4,725 $4,725 $6,195 $6,195
Other General and Administrative
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
Page 6
Appendix
Total General and Administrative
$19,700 $19,700 $19,700 $19,700 $19,700 $19,700 $20,225 $20,225 $20,225 $20,225 $28,695 $28,695
Expenses
General and Administrative % 0.00% 0.00% 0.00% 0.00% 1296.05% 864.04% 532.24% 354.82% 177.41% 118.27% 125.86% 50.88%
Other Expenses:
Other Payroll $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Contract/Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Other Expenses $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Other % 0.00% 0.00% 0.00% 0.00% 460.53% 307.02% 250.00% 166.67% 83.33% 55.56% 41.67% 16.84%
Total Operating Expenses $49,700 $49,700 $49,700 $56,700 $56,700 $56,700 $60,225 $60,225 $60,225 $60,225 $68,695 $68,695
Profit Before Interest and Taxes ($49,700) ($49,700) ($49,700) ($56,700) ($56,180) ($55,920) ($58,925) ($58,275) ($56,325) ($54,375) ($60,895) ($36,795)
EBITDA ($49,700) ($49,700) ($49,700) ($56,700) ($56,180) ($55,920) ($58,925) ($58,275) ($56,325) ($54,375) ($60,895) ($36,795)
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($49,700) ($49,700) ($49,700) ($56,700) ($56,180) ($55,920) ($58,925) ($58,275) ($56,325) ($54,375) ($60,895) ($36,795)
Net Profit/Sales 0.00% 0.00% 0.00% 0.00% -3696.05% -2452.63% -1550.66% -1022.37% -494.08% -317.98% -267.08% -65.24%
Page 7
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet

Assets Starting Balances
Current Assets
Cash $82,000 $59,010 $757,310 $705,610 $653,677 $595,287 $535,666 $474,724 $412,592 $351,485 $288,340 $217,096 $152,954
Accounts Receivable $0 $0 $0 $0 $0 $1,140 $2,242 $3,648 $5,605 $10,545 $16,815 $23,085 $50,280
Inventory $0 $0 $0 $0 $0 $1,100 $1,650 $2,750 $4,125 $8,250 $12,375 $16,500 $26,950
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $82,000 $59,010 $757,310 $705,610 $653,677 $597,527 $539,558 $481,122 $422,322 $370,280 $317,530 $256,681 $230,184
Long-term Assets
Long-term Assets $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $25,000 $30,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $25,000 $30,000
Total Assets $82,000 $61,010 $761,310 $711,610 $661,677 $607,527 $551,558 $495,122 $438,322 $388,280 $337,530 $281,681 $260,184
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $28,710 $28,710 $28,710 $35,477 $37,507 $37,458 $39,948 $41,422 $47,705 $51,330 $56,376 $71,674
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $28,710 $28,710 $28,710 $35,477 $37,507 $37,458 $39,948 $41,422 $47,705 $51,330 $56,376 $71,674
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $28,710 $28,710 $28,710 $35,477 $37,507 $37,458 $39,948 $41,422 $47,705 $51,330 $56,376 $71,674
Paid-in Capital $250,000 $250,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Retained Earnings ($168,000) ($168,000) ($168,000) ($168,000) ($168,000) ($168,000) ($168,000) ($168,000) ($168,000) ($168,000) ($168,000) ($168,000) ($168,000)
Earnings $0 ($49,700) ($99,400) ($149,100) ($205,800) ($261,980) ($317,900) ($376,825) ($435,100) ($491,425) ($545,800) ($606,695) ($643,490)
Total Capital $82,000 $32,300 $732,600 $682,900 $626,200 $570,020 $514,100 $455,175 $396,900 $340,575 $286,200 $225,305 $188,510
Total Liabilities and Capital $82,000 $61,010 $761,310 $711,610 $661,677 $607,527 $551,558 $495,123 $438,322 $388,280 $337,530 $281,681 $260,184
Net Worth $82,000 $32,300 $732,600 $682,900 $626,200 $570,020 $514,100 $455,175 $396,900 $340,575 $286,200 $225,305 $188,510
Page 8
Appendix
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $0 $0 $0 $0 $380 $570 $950 $1,425 $2,850 $4,275 $5,700 $14,100
Cash from Receivables $0 $0 $0 $0 $0 $608 $1,444 $2,318 $3,610 $6,555 $10,830 $15,105
Subtotal Cash from Operations $0 $0 $0 $0 $380 $1,178 $2,394 $3,743 $6,460 $10,830 $16,530 $29,205
Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $750,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $750,000 $0 $0 $380 $1,178 $2,394 $3,743 $6,460 $10,830 $16,530 $29,205
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations

Cash Spending $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $22,500 $22,500 $22,500 $22,500 $29,500 $29,500
Bill Payments $990 $29,700 $29,700 $29,933 $36,770 $38,798 $38,836 $41,376 $43,067 $49,475 $53,274 $58,848
Subtotal Spent on Operations $20,990 $49,700 $49,700 $49,933 $56,770 $58,798 $61,336 $63,876 $65,567 $71,975 $82,774 $88,348
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $5,000 $5,000
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $22,990 $51,700 $51,700 $51,933 $58,770 $60,798 $63,336 $65,876 $67,567 $73,975 $87,774 $93,348
Net Cash Flow ($22,990) $698,300 ($51,700) ($51,933) ($58,390) ($59,620) ($60,942) ($62,133) ($61,107) ($63,145) ($71,244) ($64,143)
Cash Balance $59,010 $757,310 $705,610 $653,677 $595,287 $535,666 $474,724 $412,592 $351,485 $288,340 $217,096 $152,954
Page 9

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This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary.....................................................................................................................1

8.0 Financial Plan................................................................................................................................29

1.0 Executive Summary

One market addresses the unanswered need of atrophy prevention/treatment in conditions

Animal stage Research and Development underway, early Year One.

2.0 Company Summary

 Complete the patent process.

2.1 Company Ownership

The proposed share capital of the company prior to capital raising

Owner Percentage of Shares Owned

Nathan Wain 20%

2.2 Start-up Summary

 The legal expense for filing all patent applications.

Costs of raising capital through private placement

Table: Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses) ($168,000)

Total Capital and Liabilities $82,000

Total Funding $250,000

Total Requirements $250,000

2.3 Company Locations and Facilities

3.1 Product Description

Therapeutic Magnetic Field Generators: The MedStim and TheraMag Systems

Applications: The prevention/treatment of muscular atrophy in conditions resulting in

Persistent Vegetative State, Traumatic Paralysis, and Guillain-Barre Syndrome. Potential

In summary, the clinical advantages of the MedStim system are:

In summary, the clinical advantages of the TheraMag system are:

 Flexibility and ease-of-use identical to the MedStim system.

3.2 Competitive Comparison

 Flexibility and ease-of-use identical to the MedStim system.

Primary raw materials needed for MedNexis products are as follows:

3.5 Future Products

Plans for future development by MedNexis include new concepts and technologies to be created

4.0 Market Analysis Summary

 The prevalence of conditions in which the MedStim system would be indicated.

4.1 Market Segmentation

Prevention and Treatment of Muscular Atrophy Market

All Fractures 9,600,000

Source: National Center for Health Statistics- 1997

Additionally, 15 million adults took prescriptions concurrently with alternative medicine

Chart: Market Analysis (Pie)

Market Analysis (Pie)

U.S.- Atrophy Prevent/Treat

U.S.- Alternative Medicine

Table: Market Analysis

4.2 Target Market Segment Strategy

Muscular Atrophy Prevention Market

Alternative Medicine Market

4.2.1 Market Needs

4.3 Industry Analysis

Muscular Atrophy Prevention Market

Atrophy is currently treated using electrical stimulation. Electrical devices, though, cannot

Alternative Medicine Market

4.3.1 Industry Participants

Prevention and Treatment of Muscular Atrophy

Alternative Medicine Applications