Investor FAQs

Our projections are grounded in our go-to-market strategy: partnering with enterprise healthcare organizations, not selling door-to-door to individual physicians.

The Enterprise Model:

Companies like UHS, Ascension, and HCA employ thousands of physicians across their networks. Our strategy is to contract at the enterprise level and roll out SoundBridge within their existing networks, which:

• Eliminates traditional sales costs: No pharma-rep style field force needed
• Provides immediate scale: One contract = access to 500-5,000+ physicians
• Reduces CAC dramatically: Customer acquisition happens at the organization level, not physician-by-physician
• Accelerates adoption: Internal rollout leverages existing employment relationships

Example scale math:

Assumptions per enterprise health system (2,000 employed physicians):

• Each primary care physician sees 2,000 patients annually
• 25-50% present with mental health issues (500-1,000 patients per physician)
• Each physician prescribes SoundBridge to 12 patients per month (144 per year)
• This represents 7.2% of total patients seen (or ~15-30% of patients with MH needs)

Adoption within network:

• 25% of network physicians actively refer = 500 physicians
• 500 physicians × 144 patients × $935 average revenue
• = $67.3M per year from ONE enterprise partnership

Revenue scaling:

• Year 1 ($2.5M): Pilot with 1-2 enterprise partners, validate model, partial-year rollout
• Year 2 ($28M): 1-2 partial-year enterprise rollouts reaching steady state
• Year 3 ($125M): 2-3 full-year enterprise partnerships operating
• Year 4 ($319M): 5-6 enterprise partners at full deployment
• Year 5 ($553M): 8-10 enterprise partners at full deployment

Why this works:

• Enterprise healthcare organizations are actively seeking behavioral health solutions
• Our model integrates into their existing care delivery infrastructure
• Value-based care mandates (Medicare 2030) create urgency for these solutions
• Partnership with Eleanor Health (17 states) provides proven rollout template
• Large health systems (UHS, Ascension, HCA) already employ 2,000-10,000+ physicians
• One contract = years of recurring patient flow

The enterprise model completely changes the math: We're not building physician-by-physician. We're deploying network-wide within organizations that already employ thousands of doctors and serve millions of patients.

Yes. We use established CPT codes that are currently reimbursed by Medicare and commercial payers:

Our CPT codes:

• 97530: Therapeutic activities (occupational therapy code currently used by music therapy)
• 98980/1: Remote therapeutic monitoring

Both codes are paid by CMS and private payers.

Pricing structure:

Our pricing is determined by Fair Market Value (FMV) assessment conducted by a third-party company to ensure compliance with Stark Law and Anti-Kickback Statute. While currently within the FMV exception range, pricing may shift slightly based on ongoing FMV analysis.

Our 10-session protocol: $935.60 average reimbursement

Reimbursement rates are based on CMS standards, though actual rates vary by payer and geography. Our FMV-compliant pricing ensures we remain within regulatory guidelines while maintaining viable economics.

Important clarifications:

• Under our basic enterprise model, we do not bill directly
• We assist practices in their pre-authorization process
• Physicians bill for services delivered through our platform
• Reimbursement rates follow CMS guidelines and commercial payer fee schedules

Our advantages:

• Not seeking new codes or FDA approval
• Not dependent on future coverage decisions
• Using codes with established payment history
• Operating within compliant FMV framework

Risk mitigation: If reimbursement takes longer than expected, we can pivot to cash-pay enterprise licensing channel or work with self-insured employers direct.

Yes, but let's clarify the "7 minutes":

The 7 minutes = the acute intervention time to shift a dysregulated nervous system back to baseline. Think of it as the tool itself.

The 10 sessions = teaching patients how to use this 7-minute tool independently whenever needed. Think of it as learning to use the tool.

The science behind it:

1. Polyvagal Theory (Dr. Stephen Porges): Specific sound frequencies stimulate the vagus nerve, shifting from sympathetic (fight/flight) to parasympathetic (rest/digest) states. Published research with 30+ years of validation.
2. Heart Rate Variability (HRV): Controlled breathing patterns measurably improve autonomic regulation. Effect sizes comparable to medication in peer-reviewed studies.
3. Music therapy: 75+ years of research documented by American Music Therapy Association. Music impacts emotional regulation through limbic system activation.
4. Neuroplasticity: Repeated structured interventions retrain the hippocampus and amygdala. Well-established neuroscience principle.

Our innovation: Combining these validated mechanisms into a structured, reimbursable protocol that can be delivered at scale by trained facilitators.

Current validation: Early beta testing shows 80%+ session completion rates and measurable improvements in self-reported anxiety, sleep quality, and stress markers. We're collecting data for formal clinical trials as we scale.

This is actually one of our key competitive advantages, and it's fully compliant.

Regulatory framework:

The CPT codes we use (97530 and 98980) do NOT require master's-level mental health licensure. These codes are designed for therapeutic activities and remote monitoring that can be delivered by trained facilitators under physician supervision.

Quality assurance:

• Structured protocol: Every session follows the same evidence-based sequence
• 40+ hour certification program: Comprehensive training for all facilitators
• Clinical supervision: Physicians oversee programs and protocols
• Ongoing monitoring: Session recordings reviewed, patient outcomes tracked
• Continuous education: Monthly facilitator training updates

Why this works:

We're teaching a structured self-regulation protocol, not providing psychotherapy or clinical diagnosis. It's similar to how:

• Physical therapy assistants deliver care under PT supervision
• Medical assistants perform procedures under physician supervision
• Certified diabetes educators teach self-management

The economics:

• Licensed therapist: $60-100/hour = $600-1,000 per protocol
• Our facilitators: $22/hour = $220 per protocol
• Same reimbursement: $935.60
• This creates 70-80% gross margins vs. 15-20% with therapists

Critical distinction: Aside from physician approval of our protocol, we do not make clinical decisions. Physicians remain responsible for their patients. We deliver the prescribed intervention.

If regulations changed: We can upgrade certification requirements, use licensed professionals in specific states, or focus on enterprise licensing where clients employ their own staff. Multiple contingency paths remain viable.

No. Our go-to-market strategy leverages existing enterprise healthcare networks, eliminating the need for massive capital raises to build a traditional sales force.

Why we're capital efficient:

1. Enterprise partnerships, not door-to-door sales:
• We contract with organizations that employ thousands of physicians
• No need to hire hundreds of sales reps
• One partnership = instant access to large physician networks
• One enterprise contract can generate $67M+ annually
2. SaaS platform structure:
• Digital delivery scales without proportional cost increases
• Automated facilitator training reduces onboarding costs
• Technology infrastructure built once, deployed everywhere
3. Partnership leverage:
• Eleanor Health partnership provides 17-state footprint
• Enterprise organizations have existing physician relationships
• Market-by-market penetration without national marketing spend
4. Minimal incremental costs to scale:
• Facilitator costs scale with revenue (variable, not fixed)
• Platform costs don't increase linearly with volume
• No massive infrastructure buildout required

Capital roadmap:

• This $5M seed round: Validate model, build enterprise partnerships, reach break-even
• Potential future capital (optional): Only if we choose to accelerate beyond organic growth rate

Dilution impact:

Because we don't anticipate requiring significant additional capital to scale, dilution will not be a significant issue. Your 29.4% ownership should remain largely intact through growth.

This is fundamentally different from consumer digital health companies that burn $50-100M building brand awareness and acquiring individual consumers.

We occupy a unique position that NO competitor currently holds:

Consumer Apps (Calm, Headspace, Talkspace, BetterHelp):

• ❌ Not reimbursable (subscription or cash-pay)
• ❌ Self-directed (5-10% engagement)
• ❌ No medical integration
• ✅ We're: Reimbursable, facilitated, physician-prescribed

Traditional Digital Therapy (Lyra, Spring Health):

• ❌ Require licensed therapists ($80-150/session)
• ❌ Limited by therapist availability
• ❌ 1-3 week wait times
• ✅ We're: Non-licensed facilitators, immediate availability, 70%+ lower cost

Biofeedback Devices (Muse, HeartMath, Apollo):

• ❌ Hardware dependent ($200-400 devices)
• ❌ Consumer purchase, not reimbursed
• ❌ Minimal clinical integration
• ✅ We're: Software-based, reimbursable, physician-prescribed

Prescription Digital Therapeutics (Pear Therapeutics - bankrupt):

• ❌ FDA approval required (Class II medical device)
• ❌ Difficult payer coverage
• ❌ Still self-directed (poor adherence)
• ✅ We're: Behavioral health CPT codes (no FDA), facilitated model

Our unique combination: ✅ Reimbursable (CPT-coded) ✅ Facilitated (not self-directed)
✅ Physiological intervention (not talk therapy) ✅ No licensed therapists required (scalable) ✅ Physician-prescribed (integrated into care) ✅ Enterprise B2B model (not individual consumer acquisition)

No competitor combines all six. That's not a crowded market—that's white space.

Large players face structural disadvantages, and history shows they prefer acquiring proven models:

Why giants struggle with our model:

1. Speed: Our decision-making is 90 days. Theirs is 18-36 months. We build a moat while they deliberate.
2. Culture: Large companies struggle with physician-facing B2B enterprise models. They think traditional enterprise sales or consumer marketing, not healthcare partnership models.
3. Risk aversion: They need $100M+ opportunities to pay attention. We prove viability at $5-10M, then become attractive.
4. Operations complexity: Healthcare operations—facilitator training, insurance contracting, clinical workflows, enterprise integration—is hard to bolt onto consumer tech or insurance companies.
5. Innovation inhibitors: They're protecting existing revenue streams (pharmacy, traditional therapy) rather than disrupting themselves.

What actually happens (historical pattern):

• We prove model (Years 1-3, $2.5M → $125M revenue)
• We become obvious acquisition target
• They acquire us for $500M-$2B
• They scale across their networks
• Investors get 50-200x returns

Recent examples:

• UnitedHealth acquired Refresh Mental Health, myNEXUS, Diplomat Pharmacy
• Anthem acquired Beacon Health Options ($2B+)
• Teladoc acquired Livongo ($18.5B), BetterHelp ($500M+)
• CVS acquired Oak Street Health ($10.6B), Signify Health ($8B)
• Amazon acquired One Medical ($3.9B)

Our moat isn't technology—it's operations. Facilitator networks, payer contracts, physician relationships, enterprise integrations, and clinical workflows take 2-3 years to build. By then, we're the acquisition target, not the competition.

Our team has collectively built and scaled $100M+ in healthcare operations before. This isn't our first rodeo.

Why our model doesn't require massive headcount growth:

1. Automated facilitator training program with instructor oversight
• Self-paced certification modules
• Scalable without proportional instructor growth
• Consistent quality across all facilitators
2. Enterprise partnership model
• We scale by growing within enterprise organizations
• No need for massive field sales force
• Organizations provide infrastructure and support
3. Strategic partnerships provide leverage
• Eleanor Health partnership operates in 17 states
• Gives us market-by-market penetration
• No need to build from scratch in each market
4. SaaS platform structure
• Digital delivery scales efficiently
• Technology enables operational leverage
• Minimal incremental cost per additional patient

Critical point: Aside from physician approval of our protocol, we do not make clinical decisions. Physicians remain responsible for their patients. This significantly reduces our regulatory burden and operational complexity.

What sets us apart:

Most digital health startups have tech founders who don't understand healthcare OR healthcare operators who can't build technology. We have both in-house.

Scaling roadmap:

• Year 1: 8-10 team, 6-10 facilitators (validate)
• Year 2: 25-40 team, 50-100 facilitators (prove scale)
• Year 3: 80-120 team, 200-400 facilitators (enterprise growth)
• Year 4-5: 200-500+ team, 1,000+ facilitators (market leadership)

We're not figuring it out—we're repeating what we've done before in a new market, with a more efficient enterprise model.

We've identified five critical risks with specific mitigation strategies:

RISK #1: Reimbursement delays or denials

• ✅ Using established CPT codes with documented coverage
• ✅ Hired billing specialists with 15+ years experience
• ✅ Starting with practices that already bill behavioral health codes
• ✅ Building 60-90 day cash buffer for claims processing lag
• ✅ Can pivot to cash-pay enterprise channel if needed

RISK #2: Provider adoption slower than projected

• ✅ Sequential rollout with early adopters (LOIs in negotiation)
• ✅ Revenue share model (20-30% to practices) aligns incentives
• ✅ Making it operationally easy (we handle everything except prescribing)
• ✅ Starting with enterprises that have explicit pain points
• ✅ Building case studies from pilots to accelerate adoption

RISK #3: Patient engagement lower than expected

• ✅ Facilitated model (not self-directed) = 80%+ completion vs. 5-10% for apps
• ✅ Physician prescription creates accountability
• ✅ Insurance-covered (no payment friction)
• ✅ Quick results (patients feel shifts in first session)
• ✅ Personalized to music preferences (increases ownership)

RISK #4: Facilitator quality and turnover

• ✅ Comprehensive 40-hour certification training
• ✅ Ongoing supervision and quality monitoring
• ✅ Competitive compensation ($22/hour for remote work)
• ✅ Mission-driven culture attracting people who care
• ✅ Career ladder (senior facilitator → trainer → manager)

RISK #5: Platform development delays

• ✅ Platform 70% complete (not starting from scratch)
• ✅ Experienced healthcare software team
• ✅ Phased feature rollout (MVP first, sophistication later)
• ✅ Can launch with existing telehealth infrastructure (Zoom + HIPAA)

Risk management philosophy: We're not ignoring risks—we're actively planning for them with experienced operators who've navigated similar challenges before.

No FDA approval required, and we're structured to avoid state mental health licensure regulations.

Why no FDA:

• We're using behavioral health CPT codes (97530, 98980), not medical device codes
• We're not making diagnostic claims or prescribing treatment
• We're delivering a physician-prescribed protocol, not an autonomous therapeutic
• Similar to: diabetes education, cardiac rehab, smoking cessation (none require FDA)

State regulations:

• We don't make clinical decisions (physicians do—except for physician approval of our protocol)
• We don't diagnose or treat (we deliver prescribed protocols)
• We don't require licensed therapists (using therapeutic activities and remote monitoring codes)
• This means we're NOT governed by state mental health practice acts

Compliance structure:

• Operating as Managed Service Organization (MSO) under contract to medical practices
• Physicians prescribe and maintain clinical oversight
• We deliver the prescribed intervention
• Full HIPAA compliance infrastructure
• Healthcare compliance experts on team

Regulatory advantage:

• Faster to market (no FDA approval process = no 2-3 year delay)
• Lower cost (no $5-10M FDA trial costs)
• Fewer ongoing compliance requirements
• Can operate nationally without state-by-state licensure

If regulations tightened:

• Could upgrade facilitator certification requirements
• Could operate in most favorable regulatory states first
• Could pivot to enterprise licensing (clients use their staff)
• Multiple viable paths remain open

Multiple factors drive high completion rates:

Current evidence:

• Early beta testing: 80%+ completion rates
• Compare to consumer apps: 5-10% completion
• Compare to traditional therapy: 40-50% dropout

Why our model drives completion:

1. Physician-prescribed: Creates accountability vs. self-downloaded
2. Insurance-covered: No out-of-pocket cost barrier
3. Facilitated: Personal relationship with facilitator (not alone)
4. Quick results: Patients feel physiological shifts in first session
5. Convenient: Telehealth (no travel, fits busy schedules)
6. Personalized: Customized to music preferences (creates ownership)
7. Daily support: App-based check-ins between sessions
8. Non-pharmaceutical: Appeals to 40-50% who refuse medication

Additional engagement features:

• Text reminders before sessions
• Progress tracking visible to patient
• Facilitator continuity (same person each session)
• Outcomes measurement showing improvement
• Physician check-ins at key milestones

If completion drops below 70%: We've modeled financials at 60-70% completion rates and still achieve strong unit economics. Our $935.60 revenue is per completed protocol, so we're inherently incentivized to maximize completion.

We're not replacing medication—we're an adjuvant (complementary) intervention. Physicians prescribe both.

Why doctors need this:

1. 40-50% of patients refuse antidepressants: They never fill the prescription. We give doctors an option for these patients.
2. SSRIs take 4-6 weeks to work: We provide immediate relief while medication kicks in.
3. Physician overwhelm: Primary care docs are drowning in mental health needs without tools. We make their lives easier.
4. Value-Based Care mandate: Medicare's 2030 mandate rewards patient outcomes, not just prescriptions. We help them hit quality metrics.
5. Combination therapy works better: Research shows multimodal approaches (medication + behavioral intervention) outperform either alone.
6. Patient preference: Many patients specifically ask for non-pharmaceutical options first. This gives doctors something evidence-based to offer.

Our positioning with physicians: "We give you another tool in your toolkit. Prescribe medication, prescribe us, or prescribe both. We handle the delivery, you maintain the relationship."

Our enterprise partnership model creates dramatically lower CAC than traditional digital health approaches:

CAC breakdown:

Enterprise Partnership Model:

• Enterprise partnership sales cycle: 9-18 months, $50-100K in total sales/legal costs
• Physicians reached per partnership: 2,000+ employed physicians
• Patients served annually (at 25% physician adoption): 72,000 patients
• CAC per patient: $0.70-$1.40 (vs. $200-500 for consumer apps)
• LTV per patient: $935.60 revenue, ~$700 gross profit
• LTV:CAC ratio: 500-1,000x (extraordinary economics)

Why enterprise CAC is so low:

• One sales cycle = access to thousands of physicians
• Internal rollout leverages existing employment relationships
• No individual physician cold-calling required
• Organization provides infrastructure and support

Sales strategy:

Year 1: Validate with 1-2 enterprise pilots

• Target: Mid-size health systems, behavioral health-focused organizations
• Sales team: 2-3 enterprise healthcare sales specialists
• Method: Executive relationships, healthcare conferences, strategic partnerships
• Proof points: Eleanor Health partnership, initial pilot data
• Goal: $2.5M revenue, proof of concept

Year 2: Scale to 5-10 enterprise organizations

• Target: Large health systems (UHS, Ascension, HCA), ACOs, integrated delivery networks
• Sales team: 5-8 enterprise account executives
• Method: Case studies from Year 1, physician testimonials, outcomes data
• Goal: $28M revenue

Year 3+: Major enterprise expansion

• Target: 15-25 enterprise partners, payer partnerships, national health systems
• Sales team: 12-20 enterprise sales + account management
• Additional channels: Licensing to behavioral health facilities, employer direct
• Goal: $125M+ revenue

Physician engagement and clinical monitoring features that drive adoption:

Our platform provides critical clinical oversight tools that make physicians confident prescribing:

• Every patient session is recorded for quality assurance and training
• Session notes automatically generated and sent to prescribing physician
• AIscribe technology monitors sessions with keyword detection
• High-risk keywords flagged (self-harm, suicidal ideation, crisis language)
• Instant alerts sent to physicians when concerning language detected
• Real-time dashboard showing patient progress and engagement
• Outcomes tracking with PHQ-9, GAD-7 scores pre/post protocol

This level of oversight:

• Gives physicians confidence to prescribe without liability concerns
• Ensures patient safety despite using non-licensed facilitators
• Provides documentation for reimbursement
• Creates feedback loop for continuous improvement
• Differentiates us from unsupervised apps and self-directed programs

Why this scales:

• One enterprise contract = continuous patient flow for years
• Internal physician networks provide organic referrals
• Success stories drive faster adoption within organization
• Organizations have incentive to maximize utilization (value-based care)
• Payer partnerships give instant access to millions of covered lives

The key: We're not acquiring individual consumers or even individual physicians. We're acquiring enterprise organizations that give us access to thousands of physicians and millions of patients.

We're designed to complement existing care, not replace it. Clear clinical protocols handle this:

Our scope:

• Mild to moderate anxiety, depression, stress
• Insomnia related to stress/anxiety
• PTSD symptoms (in conjunction with other treatment)
• General nervous system dysregulation

We do NOT treat:

• Active suicidal ideation
• Severe mental illness (schizophrenia, bipolar disorder)
• Substance abuse disorders (primary treatment)
• Crisis situations requiring immediate intervention

Clinical protocol:

1. Screening: Physicians assess patient appropriateness before prescribing
2. Facilitator training: How to recognize crisis signals
3. AIscribe monitoring: Keyword detection for high-risk language (self-harm, suicidal ideation)
4. Instant alerts: Physicians notified immediately when concerning language detected
5. Escalation pathway: Immediate referral back to prescribing physician
6. Emergency protocol: 988 Suicide Hotline, 911 if immediate danger
7. Care coordination: Regular communication with physician about patient progress

Legal protection:

• Facilitators are NOT clinicians and don't make clinical decisions
• Physicians maintain clinical responsibility
• Clear scope of practice defined in contracts
• Professional liability insurance in place
• Informed consent clearly states limitations

Positioning: We're nervous system regulation coaching, not psychotherapy. We teach self-regulation skills to appropriate patients as part of a comprehensive care plan overseen by their physician.

Our valuation is justified by significant de-risking and comparable company analysis:

What we've de-risked:

✅ Team risk: Healthcare executives with track record of building and exiting similar companies (not first-time founders)

✅ Market risk: 60M diagnosed patients, 46-57% untreated = validated, massive market

✅ Reimbursement risk: Using established CPT codes currently reimbursed (not speculative future coverage)

✅ Regulatory risk: No FDA approval needed, no state licensure requirements

✅ Technology risk: Platform 70% complete (not vaporware)

✅ Customer risk: Enterprise B2B model with organizational contracts (not individual consumer acquisition gamble)

Comparable valuations:

Pre-revenue digital health companies with experienced teams:

• Seed stage: $8-15M pre-money (typical range)
• With reimbursable model: Premium to consumer apps
• With healthcare ops team: Premium to pure tech founders

Our positioning:

• $12M pre-money = $17M post-money
• $5M investment = 29.4% ownership
• Conservative within digital health seed range

Value creation by this raise:

• Working product platform
• Validated clinical protocol
• LOIs with enterprise partners in negotiation
• Team assembled
• Regulatory pathway clear
• Go-to-market strategy defined with Eleanor Health partnership

Return scenarios:

• Conservative (10% of projections): 19x return
• Base case (25-50% of projections): 65-130x return
• Optimistic (100% of projections): 176x+ return

We're priced for investors to achieve venture-scale returns if we execute even moderate success.

Expected timeline: Break-even Month 12, acquisition discussions Years 4-5

Milestones based on our financial model:

• Year 1: Validate model with 1-2 enterprise pilots, reach break-even Month 12, generate $2.5M revenue
• Year 2: Scale to $28M revenue with 1-2 full enterprise rollouts
• Year 3: Hit $125M revenue with 2-3 enterprise partners, establish market leadership
• Year 4-5: $319M → $553M revenue, become obvious acquisition target

Potential earlier liquidity:

• Strategic partnership (Year 2-3): Major health system or payer takes equity stake
• Secondary sales (Year 3-4): If we raise growth capital, existing investors may have liquidity opportunity
• Early acquisition interest (Year 3-4): Once we hit $100M+ revenue with strong margins

Exit paths:

• Most likely: Strategic acquisition by digital health platform, payer, health system, or pharma company
• If we hit full projections: IPO at $500M+ revenue
• Fallback: Continue as profitable, dividend-paying company (break-even Year 1)

Historical comparables:

• Livongo: 4 years to $18.5B acquisition by Teladoc
• BetterHelp: 6 years to $500M acquisition by Teladoc
• Omada Health: 5 years to $600M+ valuation
• Headspace: 7 years to $3B merger with Ginger

Typical venture timeline for healthcare: 5-7 years is standard for this asset class and scale.

Based on our pro forma financial model and enterprise go-to-market strategy:

Platform & Technology Development (25% / $1.25M):

• Complete final platform features for enterprise deployment
• Telehealth infrastructure and integration
• Facilitator training portal (automated certification system)
• Patient mobile app and music recommendation engine
• AIscribe keyword monitoring and physician alert system
• Session recording and documentation generation
• HIPAA compliance and security infrastructure

Personnel - Core Team (40% / $2M):

• 2-3 executive team members (CEO, COO, CTO)
• 3-4 enterprise partnership/sales specialists
• 2-3 platform engineers
• 2-3 facilitator managers and trainers
• 8-10 certified facilitators (scaling to patient demand)
• Operations and compliance support

Enterprise Partnership Development (20% / $1M):

• Enterprise sales process and collateral
• Legal contracts and partnership agreements
• Pilot deployment support for initial enterprise partners
• Case study development and outcomes measurement
• Healthcare conference presence and relationship building
• Eleanor Health partnership activation

Legal, Regulatory & Compliance (10% / $500K):

• MSO structure finalization and compliance with state registrations for service providers
• Fair Market Value assessments for pricing compliance
• Stark Law/Anti-Kickback Statute compliance
• Insurance contracting and pre-authorization support
• Employment agreements and IP protection
• Healthcare regulatory counsel

Working Capital & Contingency (5% / $250K):

• Initial operating expenses
• Professional liability insurance (E&O, malpractice, cyber)
• Office/technology infrastructure
• Contingency buffer for unexpected costs

This gets us to: Month 12 break-even, $2.5M revenue, 1-2 validated enterprise partnerships, proven model for scaling.

Capital efficiency: Our enterprise model means we do NOT need multiple funding rounds to scale. This $5M validates the model and gets us to profitability. Future growth capital is optional to accelerate beyond organic growth rate.

We have modeled multiple scenarios:

Optimal: $5M (full raise)

• Launch with 2 enterprise pilots simultaneously
• Full team of 10-12 people
• Complete platform build with all features
• Reach break-even Month 12
• $2.5M revenue Year 1

Viable: $3-4M (partial raise)

• Launch with 1 enterprise pilot
• Lean team of 7-9 people
• MVP platform (delay some advanced features)
• Reach break-even Month 15-18
• $1.5-2M revenue Year 1
• Still achieves core validation objectives

Minimum: $2-3M

• Single enterprise pilot with extended timeline
• Core team of 5-7 people
• Basic platform functionality
• Reach break-even Month 18-24
• Proves model viability for future raising

What we will not compromise:

• Facilitator training quality and certification
• Legal/compliance infrastructure
• Core platform security and HIPAA compliance
• AIscribe monitoring and physician alerts
• Clinical quality and safety protocols

Team flexibility: Executives willing to defer 20-30% of salary if needed to extend runway and preserve capital for essential operations.

Bottom line: $5M is optimal for speed and competitive positioning. Less capital means slower growth timeline, but model remains viable and path to profitability exists at any funding level.

Given our team composition and business model, traditional medical advisory boards are less critical to our operations:

Core Team Medical Expertise:

• Dr. Herman Williams: Healthcare executive with deep clinical operations experience
• Nio Queiro: Healthcare management and reimbursement specialist
• Professor Kimberly Sena Moore: Music therapy academic and clinical expertise

Why medical advisors are less essential to our model:

1. We do not make clinical decisions: Physicians prescribe and maintain clinical responsibility. We deliver the prescribed protocol.
2. Experienced healthcare operators: Our team has successfully built and scaled healthcare operations, including clinical service delivery.
3. Protocol is evidence-based: Built on 75+ years of music therapy research, polyvagal theory, and established neuroscience.
4. Facilitator training includes clinical supervision: Our 40-hour certification program covers appropriate scope of practice, crisis recognition, and escalation protocols.

Advisory support we do utilize:

• Compliance counsel on healthcare regulations
• Billing specialists with CPT coding expertise
• Music therapy consultants for protocol refinement
• Neuroscience researchers for outcomes validation

Our operational model is fundamentally different from traditional clinical practices. We partner with physicians who maintain clinical oversight, allowing us to focus on operational excellence in protocol delivery.

Platform architecture:

Telehealth Delivery:

• HIPAA-compliant video infrastructure
• Integration with established platforms (Zoom Healthcare, Doxy.me)
• Mobile-first responsive design for patient access
• Web-based facilitator interface with session management

Music Recommendation System (Our Key IP):

• We do NOT host or stream music from our platform
• We direct patients to their own music streaming services (Spotify, Apple Music, YouTube Music, etc.)
• Our proprietary recommendation app suggests specific tracks based on:
• Patient music preferences and history
• Therapeutic session requirements
• Psychoacoustic engineering principles (tempo, frequency, emotional valence)
• Personalization algorithm matching patient to optimal tracks

App is embedded in our platform, not available to general public:

• Creates "stickiness" (patients must use our platform to access recommendations)
• Protects our IP under non-circumvention terms and conditions
• Allows us to update and refine recommendations based on outcomes data
• Avoids music licensing costs (patients use their own subscriptions)

Facilitator Training Platform:

• Automated certification program with video modules
• Knowledge assessments and competency testing
• Ongoing continuing education delivery
• Quality monitoring and facilitator performance tracking

Clinical Workflow & Monitoring:

• Every patient session recorded for quality assurance
• Automated session notes generated via AIscribe technology
• Keyword monitoring for high-risk language (self-harm, crisis indicators)
• Instant physician alerts when concerning language detected
• Patient outcomes tracking (PHQ-9, GAD-7, HRV measurements)
• Physician dashboard with real-time patient progress visibility
• Optional EHR integration for enterprise partners

Data & Analytics:

• Patient engagement and completion metrics
• Facilitator performance and quality scores
• Enterprise partnership dashboards
• Outcomes measurement and reporting
• Predictive analytics for patient success factors

Security & Compliance:

• HIPAA-compliant data storage and transmission
• End-to-end encryption for all communications
• Audit logging for compliance documentation
• Regular security assessments and penetration testing
• SOC 2 Type II compliance roadmap

Technology Partners: Working with established healthcare infrastructure providers rather than building from scratch. Platform is 70% complete and will be production-ready within 90 days of funding.

Our IP strategy focuses on multiple layers of protection:

• Protocol sequencing: Trade secret protection for our specific combination of music, breath, and movement techniques
• Training methodology: Copyright and trade secret protection for facilitator certification program
• Music recommendation algorithm: Proprietary matching engine (patent consideration in process)
• AIscribe technology: Keyword monitoring and alert system
• Brand and positioning: Trademark protection for SoundBridge Health and related marks

Critical point: We are not primarily relying on IP as our moat.

Our real defensibility comes from:

• FIRST MOVER ADVANTAGE in reimbursable, enterprise-deployed nervous system regulation
• PROFESSIONAL RELATIONSHIPS with enterprise healthcare organizations
• PARTNER NETWORKS including Eleanor Health's 17-state footprint
• Operational excellence in facilitator training, quality assurance, and clinical integration
• Enterprise contracts with multi-year commitments
• Outcomes data demonstrating effectiveness

IP provides baseline protection, but execution and relationships create the sustainable competitive advantage.

Phase 2 opportunity (not initial focus):

Current focus: 12+ years old

Pediatric adaptation considerations:

• Protocol would require modification for younger children
• Different music preferences and attention spans
• Developmental stage considerations
• Parental involvement in sessions
• Additional clinical validation required
• Potentially different CPT coding

Market opportunity:

• 17% of youth (ages 6-17) have diagnosable mental health conditions
• Even higher rates of anxiety and depression post-pandemic
• Significant unmet need in pediatric behavioral health

Expansion strategy: Focusing on adult market (12+) first to validate model and achieve profitability. Will expand to pediatric populations (under 12) AS MARKET SUPPORTS and as we have resources to properly adapt protocol and conduct appropriate validation studies.

The core science (nervous system regulation via music, breath, movement) is universal across ages, but delivery must be age-appropriate.

Yes, with adaptations:

Core science is universal:

• Nervous system physiology doesn't vary by country
• Polyvagal theory, HRV principles apply globally
• Music's impact on emotional regulation is cross-cultural

Adaptations required:

• Music preferences vary by culture (our personalization engine addresses this)
• Reimbursement models differ by country (must understand each system)
• Language translation needed for facilitator sessions and app
• Regulatory requirements vary by jurisdiction

Phased international expansion strategy:

Year 1-3: U.S. market focus

• Validate model and achieve profitability domestically
• Build case studies and outcomes data
• Establish operational excellence

Year 3-4: English-speaking countries

• Canada (similar healthcare system, strong telehealth adoption)
• United Kingdom (NHS interested in behavioral health innovations)
• Australia (Medicare-equivalent reimbursement pathways)

Year 4-5: Europe and Asia

• Translations and cultural adaptations
• Country-specific regulatory approvals
• Partnership with local healthcare organizations

International expansion is AN upside opportunity, not required for our base projections. The U.S. market alone (60M patients with mental health conditions, 46-57% untreated) provides sufficient opportunity for years of growth.

The founder's lived experience with PTSD is the origin story and provides authentic mission-driven purpose. However, this is now a professionally managed healthcare company:

Key points:

1. Experienced healthcare executives leading operations: The company is run by healthcare operators with track records of building and scaling $100M+ operations, not dependent on founder's personal experience.
2. Evidence-based protocol: The intervention is grounded in 75+ years of music therapy research, polyvagal theory, and established neuroscience—not just personal anecdote.
3. Scalable business model: Enterprise partnerships, automated training, SaaS platform—all designed for operational scale independent of any single person.
4. Professional team: Healthcare compliance, reimbursement specialists, platform engineers, clinical operators—full professional infrastructure.

The personal story provides:

• Authentic understanding of patient experience and pain points
• Mission-driven culture that attracts talent who care about impact
• Compelling narrative that resonates with investors and partners
• Credibility with patients and physicians (founder understands the struggle)

But it does NOT create single-point-of-failure risk. The company's success depends on execution by a professional team, validated science, and operational excellence—not on the founder's personal journey.

Patient-level metrics:

• PHQ-9 (depression screening) scores pre/post protocol
• GAD-7 (anxiety screening) scores pre/post protocol
• Sleep quality assessments using standardized instruments
• Self-reported stress levels on validated scales
• Heart rate variability (HRV) measurements showing autonomic regulation
• Session completion rates (targeting 80%+ vs. 5-10% for apps)
• Patient satisfaction scores and feedback

Physician-level metrics:

• Physician satisfaction with tool and patient outcomes
• Referral volume and growth over time within practices
• Time savings for physicians (we handle intervention delivery)
• Quality metrics achievement for value-based care contracts
• Prescribing patterns and adoption rates

Enterprise partnership metrics:

• Physician adoption rate within network (targeting 25%)
• Patients served per physician (targeting 144 annually)
• Revenue per partnership (targeting $67M at full deployment)
• Contract retention and renewal rates
• Expansion to additional service lines within organization

Business metrics:

• Revenue per patient: $935 average
• Cost per patient served: $220 facilitator + platform costs
• Gross margins: Targeting 70-80% at scale
• Customer acquisition cost (CAC): $0.70-$1.40 per patient via enterprise model
• Lifetime value (LTV): $700+ gross profit per patient
• LTV:CAC ratio: 500-1,000x (exceptional SaaS economics)

Clinical safety metrics:

• Adverse events: Tracked and reported
• Crisis escalations: Frequency and outcomes
• AIscribe alerts: High-risk language detection and response times
• Protocol adherence: Facilitator compliance with standardized delivery

All metrics tracked in real-time dashboards:

• Reported to enterprise partners monthly
• Reported to board/investors quarterly
• Used for continuous quality improvement
• Support reimbursement justification and contract renewals

Success definition: Achieving patient outcomes (reduced anxiety/depression symptoms, improved sleep, enhanced self-regulation) while maintaining strong business metrics (80%+ gross margins, high completion rates, enterprise partner satisfaction).