A Paradigm Shift in Minimally Invasive Surgery Corporate Presentation | Spring 2019 - Aquarius Surgical Technologies Inc. (CSE: ASTI) - Surgical ...
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A Paradigm Shift in Minimally Invasive Surgery
Corporate Presentation | Spring 2019
Aquarius Surgical Technologies Inc. (CSE: ASTI)
Disclaimer
CSE: ASTI | www.surgicallasersinc.com
FORWARD-LOOKING STATEMENTS
Apart from historical data, this document may contain information and statements concerning the
future results of Aquarius Surgical Technologies Inc. (“the Company” or “Aquarius”) which should be
considered as prospective and forward-looking.
These statements, when utilized, reflect the current vision of the Company concerning future events;
they are based on information currently available to the Company and on assumptions which are
considered reasonable. These prospective statements are subject to risks, uncertainties and other
factors likely to influence the results, performance and achievements of the Company such that they
could differ substantially from the results, performance and achievements prospective statements of
this nature might imply.
2
About Us
An exclusive provider of innovative, minimally invasive medical laser systems and
CSE: ASTI | www.surgicallasersinc.com
consumables for multiple medical disciplines, principally in the field of urology.
Solutions also include clinical education, service, support and maintenance.
Focus on:
• increasing the availability of services for patients
• enhancing the quality of patient care
• improving operational efficiencies
• reducing total operational costs
Our lasers target these issues:
Benign Prostate Hyperplasia (BPH), urinary stones (bladder & kidney) and
incontinence.
3
Management Team & Board
• CEO has 35+ years of experience in medical laser business across multiple medical disciplines
CSE: ASTI | www.surgicallasersinc.com
• Core management comprise 90+ years of experience
David Hennigar Gordon Willox
Chairman President & Chief Technical Officer
Gary Van Nest Dr. Stan Swierzewski III MD
CEO & Vice Chairman Chief of Urology
Holyoke Medical Centre
Dr. Robert W. Francis MD
Founder & Chairman of
The MedCan Clinic
4
Highlights
• ASTI’s state-of-the-art proprietary FDA approved holmium laser fiber for kidney and
bladder stones gaining momentum in the market as a true innovation in laser
CSE: ASTI | www.surgicallasersinc.com
lithotripsy.
• Production is scheduled to begin in the first quarter of 2019. Future
consumable sales will grow as this will be the only fiber optic which will be
locked and matched to the high power HYPHO Holmium laser.
• With the versatility to deliver identical clinical outcomes in office-based procedures
and hospital outpatient settings, ASTI’s flagship laser for Benign Prostate Hyperplasia
(BPH) continues to grow market share with multiple product evaluations scheduled
at private practices, surgical centers and university teaching hospitals across the
country. Each laser sold will use one of ASTI’s single use consumable fibers per
treatment, for the life of the laser, further building sustainable consumable sales
growth.
• Multiple ongoing negotiations with leading manufacturers and distributors of
surgical instruments to the urology/gynaecology marketplace in the US.
“2018 was a busy year for ASTI with several important negotiations taking
place, which paved our way into an already busy start of 2019. There are
“
many initiatives planned for this year and we are looking forward to updating
the market on our further progress.
5 – Gordon Willox, President
The US Market Opportunity is Enormous
Laser Urinary
Laser BPH Market Laser Incontinence
CSE: ASTI | www.surgicallasersinc.com
Stone Market
Market
43 30 31
Million Men Million People Million Women
$5.5B $21.3B $16.3B
TOTAL ESTIMATED US MARKET: $40B+
6
Current Treatment Options
Benign Urinary
Prostate Stones
CSE: ASTI | www.surgicallasersinc.com
Incontinence
Hyperplasia (Bladder
(BPH) & Kidney)
Medication Shockwave Therapy Pads
• Limited outcome • Less reliable outcomes • Inconvenient
• Side effects • Legacy system, & Expensive
expensive to maintain,
220V
Traditional Surgery
Traditional Surgery
• Mesh & Slings
• Significant blood loss
• Mesh erosion, surgical risks,
• General Anesthetic Older Laser Technology FDA warning
• Requires operating • Expensive to purchase • Requires operating room
room resources & & maintain, 220V resources & overnight stay in
overnight • Less effective hospital
stay in hospital
7Our Technology Advantage
CSE: ASTI | www.surgicallasersinc.com
Benign Prostate Urinary Stones
(Bladder & Kidney) Incontinence
Hyperplasia (BPH)
Portable
Affordable
Outpatient
Minimally Invasive
Predictable Outcomes
On average our lasers cost 50% less than competitive systems
ASTI’s products cost less to purchase, are less expensive to operate (FIBER)
and unlock higher margin outpatient opportunities.
8Our Clinical Advantages
CSE: ASTI | www.surgicallasersinc.com
Benign Prostate Urinary Stones
Hyperplasia (BPH) Incontinence
(Bladder & Kidney)
Less Bleeding Greater Precision No Anesthetic
(smaller fragments)
Local or General 5 Min Procedure
Anesthetic Improved Safety
(stone stability) No Pharmaceutical
Faster Recovery or Surgery Risk
Shorter Treatment
Shorter Treatment Times Shorter Treatment
Times Predictable Outcomes Times
Predictable Outcomes Predictable Outcomes
ASTI’s solutions are all outpatient based, increasing patient acceptance
and eliminating the requirement for overnight stay.
9Our ROI Advantage for Doctors & Hospitals
CSE: ASTI | www.surgicallasersinc.com
Benign Prostate Urinary Stones
Hyperplasia (BPH) (Bladder & Kidney) Incontinence
Less Expensive Laser Less Expensive Laser Less Expensive Laser
Less Expensive Fiber Less Expensive Fiber Less Expensive to Maintain
Less Expensive to Maintain Less Expensive to Maintain
• The ONLY Office Based • Hospital makes more • Cash pay business model
solutions for Laser BPH money on lower cost • $3000 for series of
• Higher compensation for consumable 3 treatments
Urologist for Office • 5 minute treatment
Based procedure • Breakeven 43 Patients
• $1852.00 vs.
$715 per case
10Intellectual Property & Patents
• Patent pending on BPH fiber
CSE: ASTI | www.surgicallasersinc.com
• 31 Additional FDA approved fibers for multiple medical disciplines
• ASTI has input into engineering & design of all products
• Exclusive distribution rights with proprietary technology
• Growth opportunity to other market sectors with the same manufacturers: ENT,
ophthalmology, lung surgery, dermatology, neurosurgery, etc.
11Financial Forecast
CSE: ASTI | www.surgicallasersinc.com
Revenue and EBITDA Projection Operational Metrics
$ 25000000 133 Lasers
14,258 Fibers
16000 140
$20,181,662
14000 120
$ 20000000
12000 85 Lasers 100
6,979 Fibers
$ 15000000 10000
80
$11,532,057 8000
43 Lasers
60
$ 10000000 6000 987 Fibers
40
4000 12 Lasers
$4,381,749 287 Fibers
$ 5000000 2000 20
$755,000 0 0
2018 2019 2020 2021
0
2018 2019 2020 2021 Lasers Fibers
Sales EBITDA
12Capital Structure and Financial Status
• Calendar YTD Revenue as at December 2018 – CDN $755,000
CSE: ASTI | www.surgicallasersinc.com
• Current Burn Rate – CDN $115k per month
Stock Information (as of March 2019) Stock Chart
$0.70 .20mm
Share Price $0.20 $0.65 .18mm
$0.60 .16mm
Market Cap $3.9M $0.55 .14mm
$0.50 .12mm
Volume
52 Week High/Low $0.65/0.20
Price
$0.45 .10mm
$0.40 .08mm
Shares Issued & $0.35 .06mm
19.55M
Outstanding $0.30 .04mm
$0.25 .02mm
$0.20 0
Warrants & Options 4.3M
Oct-2018
Nov-2017
Aug-2018
Feb-2018
May-2018
Sep-2018
Dec-2017
Mar-2018
Apr-2018
Jul-2018
Jun-2018
Jan-2018
Fully Diluted 23.9M
13Exit/Liquidity
• Likely acquisition by established medical company, such as Boston Scientific, Bard,
CSE: ASTI | www.surgicallasersinc.com
Cooke or Olympus
• Industry Comparables
• June 2006 – AMS acquires Laserscope for US $715M
• May 2015 – Boston Scientific acquires AMS Urology Portfolio for US $1.65B
• February 2017 – Hologic acquires Cynosure for equity value of approx. US $1.65B
• Potential Return Scenario – 5 to 8 times revenue
• 2019 – 5 x CDN $4.4M = CDN $22M
• 2020 – 5 X CDN $11.5M = CDN $57.5M
• 2021 – 5 x CDN 20.1M = CDN $100.5M
14Key Takeaways
Cost-effective, portable, practical, FDA-approved technology which addresses the
CSE: ASTI | www.surgicallasersinc.com
demands of a growing market
Exclusive distribution rights including proprietary private label consumable
31 FDA-approved fibers (profitable razor/razor blade business model with high
margins)
Strong IP with long-term partner, influence on the engineering process, first right of
refusal on current patents
10 distribution contracts signed with projection of 10 new distributors per year
growth
Insurance reimbursement codes already in place with big positive financial impact for
doctors
Generating revenue from sales
15Near-Term Plans
American Urology Association (AUA)
Annual Meeting and Trade Show
CSE: ASTI | www.surgicallasersinc.com
Chicago, IL
May 3 – 6, 2019
Exhibit Booth and Sponsored Cocktail Seminar
Canadian Urology Association (CUA)
Annual Meeting and Trade Show
Quebec City, QC
June 29 – July 1, 2019
Exhibit Booth and Sponsored Cocktail Seminar
Multiple Wet Labs demonstrating laser systems in a clinical simulation environment
scheduled with a major manufacturer of clinical instruments, across the United States
over the next several months.
16Contact Us
CSE: ASTI | www.surgicallasersinc.com
Gordon Willox, President
E: gordonwillox@live.ca
T: + 1- 844-441-9090
Cathy Hume,
Investor Relations
E: cathy@chfir.com
T: 416-868-1079 x 231
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