Bioxtrim 3 Page Es

BioXtrim (very) Short Executive Summary 2008 Company mission - Shortening dramatically the neuro rehabilitation therapy process and changing the economic model and structure of the industry. The company has probably the only proven technology today that reduces the total expenses on rehab therapy by 50%-70%, …..Time and Money. Scope BioXtrim is a leading innovator and pioneer in the booming market of Neuro-rehabilitation robotic devices, in the fastest growing industry estimated around $400B per year (referred to all rehab arenas). Bioxtrim state of the art technologies and sophistication gives a competitive advantages and positioning to the company as a leader in the rehab arena. The technologies, reduces the intolerable cost of rehabilitation by more than half, time and money wise. Current motor learning & therapy methods - During a repetitive practice in general and specifically in therapy, the therapist or existing technologies, direct, or physically assist the patient, to correct motor errors. A repetitive practice of motor tasks undoubtedly stimulates motor skills learning and recovery. Nevertheless, the standard approach to assist, physically or orally, to correct the motor tasks is not necessarily helping. The standard approach, which actually involves a high cognition of the subject to understand the correct motor, requires a long path for motor learning and a sufficient physical clinical shape of cognition, which not necessarily within the patient capabilities. BioXtrim method1 - The system enables the patient to perform a repetitive practice of various functional motor tasks, as the robotic arm engaged to patient extremity. The patient naturally needs to focus only on motor tasks. During a repetitive practice, the system applies environmental forces to the trained extremity, which are proportional to motor error values and been applied in error directions, as to extreme the errors. The basic concept utilizes a primitive natural motor learning effect, as the subject instinctively exerts its extremity in the opposite direction of “destructed” forces thus reducing motor errors by its own muscles. Those corrective acts, as being a correct experience of motor practice, create an improved memory of motor pattern in the brain. This automatic process dramatically reduces the amount of practicing cycles. During the motor learning progress, using the methods & system, from each motor cycle to the following one, the “destructed” force values by the system become smaller and smaller, as in no motor errors stage, there will be no applied forces by the system at all, thus any dependency between patient and system. Shortening the number of exercise and movement learning cycles, and accordingly shortening the overall duration of rehabilitative process by over 50%, compared with existing applications, will save in hospitalization days, treatments, and much more, alongside with improving quality of life of the patients. The economic savings resulting from the first application are estimated at $1M annually per unit. Beta test & preliminary clinical studies, mostly on stroke patients, was completed with tremendous success, with the successful outcomes of the study proving the integration of the system within the rehabilitative process at a rehabilitation center

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Patents and status BioXtrim technology is protected by a broad global patent pending, which currently stands at an advanced stage in the national phase, following a very positive response from the Patent Cooperation Treaty (PCT). Overview The spending today in the rehab arena exceeds $400 billion, which is spent over a year on Neurorehabilitation in the western world. The number of patients in the United States with diseases that are potentially treatable with neuro devices is currently 78 million, or about 28% of the total population. Over the last decade, however, the length of inpatients stay has been roughly cut in half, to about 20-30 days, due to barriers such as cost and distance. Stroke is the leading expense of disability in the USA and rehabilitation is estimated around $60 billion annually for the 5.4 million living with disability. Neurological impairment after stroke frequently leads to hemiparesis or partial paralysis of one side of the body. A robotic therapy device helps people regain strength and normal use of affected hands long after a stroke. Bioxtrim focused its efforts on developing the first distinctive computerized robotic technology & method (WRGH), which significantly efficient & shortens motor learning and Neuro-Rehabilitation. The current technologies automate the standard therapy approaches, and its benefits are limited compared to the efforts needed to embrace them. The method & products are protected by an advanced stage of a worldwide patent pending, to exclusively cover large groups of applications for various motor skills fields. Bioxtrim revolutionary approach for motor learning and Neuro-Rehabilitation, is implemented in unique computerized robotic technology, all developed by Bioxtrim own R&D. Background 1. There are basically three kinds of neuro injury a. Stroke b. TBI (Traumatic Brain Injury) c. SCI (Spinal Cord Injury) 2. The Neuro-rehabilitation is characterized as a very long term treatment, months or years. 3. Stroke is the number one factor paralysis in senior population. 4. Most of the rehab treatments today focus on repeating restoration of movement and cognitive response from patient. 5. The cognitive method is a long process which combines orally communication, concentration and cognitive process. 6. Many patients suffer from neurological deficiency that decreases the cognitive process. 7. Natural motor learning and acquisition of motor patterns are performed through a collection of motor experiences that improve from cycle to cycle. 8. Existing methods for Motor Learning: a. Cognitive aid - verbal and by means of force b. External rather than primal intervention in Motor Learning c. Internalizing cognitive aid requires time and cognitive processing 9. Many patients suffer from limitations that hinder proper use of cognitive facilities 10. A process involving cognition may confuse and delay progress The Bioxtrim Solution – Decisive competitive advantage - Motor Learning without Cognition Acquiring motor patterns is the most primal learning process in animal development, in evolution and maturation. The primacy of the learning process led to the development of instincts and the primary instinct in any encounter with a new environment of forces is to overcome and adjust in order to achieve results In the process of adjustment. Doing so, a new motor pattern is gradually achieved. Sep 2008

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Artificial stimulation of error enhancing forces will provoke a corrective adjustment primal reaction. Corrective experience is immediately stored in the motor memory, The outcome – quick motor learning without cognition. Effect of the Method in the System 1. Bioxtrim technology is based on stimulating basic instincts to engrave the right movement. This procedure skips the use of cognition and is not depending on patient movement skills or errors. 2. The automatic process efficient and shorten the procedure of learning by more than 50% in comparison to other existing methods. a. Forces proportional to errors acting to enhance them b. Forces calculated and operating throughout the motion cycle c. Forces are automatically adjusted to any type and level of impairment d. The procedure is very short, 15 minutes; the results are dramatic in short term, days till weeks. Patents and status Bionics technology is protected by a broad global patent pending, which currently stands at an advanced stage in the national phase, following a very positive response from the Patent Cooperation Treaty (PCT). Bioxtrim - Clinical Results • 10 subjects - inpatients & long post-stroke outpatient • Treatments length & frequency: • 2 types exercise, 5 min exercise, 3 times a week • Shorten recovery to healthy results by more than 50% • Excellence in patient reaction to method & system • No regression during inpatient period. The need and cost. Intolerable costs of hospitalization days & therapies cost $1,500 per day, for as long as one month (at the minimum). • The duration of reimbursed therapy has decreased due to economical pressures. • The elderly population in U.S. projected to skyrocket from 60 to 103 million by 2025 • Utilizing a primitive motor learning effect based on instinctive responds by the patient, eliminating his/her use of cognition. • Cost saving for mid size rehab center - (1 unit/1year) = $1M • Large patients volume, High short-term results • Easy to combine in existing rehab-process A huge market opportunity, A market leader potential The highly innovative Bioxtrim technology is uniquely positioned to maximize the leverage of the booming robot rehab market and rehab centers & hospital needs more than any competing technology today. It will lead the stand-up procedures from expensive long term therapy to effective, low-cost and natural way of treatment. Bioxtrim is a real alternative to the conservative rehab treatments, backed by clinical results held in one of the biggest rehab centers in Israel today (Reut Center). The distinctive advantage of the Bioxtrim method and technology will not only replace traditional methods but will expand the global market for robot use and conquer new markets that traditionally do not use robotics.

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A strong selling proposition Bioxtrim will offer two different distribution approaches • Distributing whole solution to rehab centers, at a cost of $80,000 per unit for use as a rehab robotic system. A system can serve up to 20 patients per day. • Pay per use – As a service module to the rehab center for a price as low as $25 per treatment/patient. The Competition & Technology trends • Trend - Robot-assisted therapy combined with virtual reality • Therapy method - Automation of regular therapy • Enable an intensive regular therapy to stimulate recovery • Non automated treatment. A Solid Business model. Break even in less than two years. The financial forecast is based on conservative income estimation which only partially reflects the definitive comparative advantage of Bioxtrim. The Offer. The company is seeking to raise a total of $5M in two phases. a) $750 to finish final stage of the prototype. b) $3.5M for regulation, marketing infrastructure, office in North America and R&D for next generation.

An experienced management teem has been building up the project for the past 5 years. •

Eyal Geron – CEO & Partner - Many years of experience in the hi-tech industry as business manager of Tadiran Communication, CEO of ISFAR IT (Sony Israel, video & communication). For full profile, please refer to http://www.linkedin.com/in/eyalgeron

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Nini Bluman – Founder , BSc-M.Eng, Exp in R&D management, medical & Robotics products development.

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Hanan Gothait – Founder Director BSc-M.Eng, BA economy & a serial successful business development founder: “Idanit”(“Scitex vision”); “Objet” & “Xjet”

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Prof. Avi Ohry – Founder Medical Director M.D, An expert & director of rehab medicine units, holding several relevant positions & known by world reputation

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Assaf Morag, MD, MBA – Bus. Dev. , over 20 years of experience in company and value creation specially in the medical field. Founded ‘Pegasus Medical’ and ‘RelayHealth’ both sold to McKesson. Large company experience McKesson, Elsevier & Intel.

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