ConnecTiss, LLC

Restoring, Preserving Elastin in Aging Skin

Terence A. Walts , MBA- President, CEO, Co-Founder

tawalts@yahoo.com, 678-860-3725

Naren Vyavahare, PhD - CSO, Co-Founder

narenv@clemson.edu, 864-650-7155

I.
INDUSTRY:

OVERVIEW
COSMETICS - >$300B GREENVILLE, SC

Restoring, Preserving Elastin in Aging Skin

COMPANY HQ: FOUNDED:

OCTOBER 2013 SKIN CARE COSMECUTICALS - $13B WW

TARGET MARKET: TECHNOLOGY: STAGE:

SKIN ELASTIN STABILIZATION & REGENERATION

DEVELOPMENT (PRE-CLINICAL) 500K first round

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FUNDING SOUGHT:

II.

PROBLEM

Restoring, Preserving Elastin in Aging Skin

AGING SKINSAGGING CHINS, WRINKLES

Primal , universal desire to maintain youthful appearance Natural function of aging, sun exposure, gravity Natural degeneration, loss of skin elastin production over time
Elastin is a tissue rubber band that keeps it tight. With age it degrades and not restored
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III.

ConnecTiss SOLUTION

Restoring, Preserving Elastin in Aging Skin

COSMETICS CLINICALLY PROVEN* TO STABILIZE/RESTORE SKIN ELASTIN

Elastin defined:
oFound in all elastic connective tissue (skin, arteries, lungs) oHelps maintain youthful looking skin (prevents sagging, wrinkles) oBoosting elastin important in successful skin rejuvenation oLargely neglected by industry oNo product today clinically proven to restore elastin
4 * In cardiology and future ConnecTiss clinical studies

IV.

VALUE PROPOSITION

Restoring, Preserving Elastin in Aging Skin

1st cosmetic to truly restore, maintain skin elastin...

...restoring, maintaining skin elasticity, recoil... ...dramatically reducing skins visible signs of aging
Sagging skin Fine lines Deep wrinkles Drooping, rough texture
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VI.

MARKET

Restoring, Preserving Elastin in Aging Skin

COSMECUTICALS
Cosmetics that purportedly deliver medicinal or drug-like benefits Large growing market: $31B (worldwide); $10B (US); +7%/yr
(GBI Research, 2013)

ConnecTiss target market Skincare cosmecuticals ~43% market Europe (5 countries), US dominate; huge potential in China, India & Japan Not recognized, regulated by FDA (claims monitored by FTC) Highly fragmented; low barriers to entry Consumers, dermatologists overwhelmed by # products, product claims Product info often not scientifically sound, clinically proven
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VII.

COMPETITION
MAJOR COMPANIES
(>400 mfgers, suppliers)

Restoring, Preserving Elastin in Aging Skin

COSMECUTICALS
MAJOR BRANDS

7 companies = ~ 50% market

Allergan, Beiserdorf AG, Avon, Darma Labs, Claris SA, Colgate-Palmolive, Dermal Group, Elizabeth Arden, Estee Lauder, GlaxoSmithKine, Henkel AG, J&J, Kao Corp, KOSE Corp, LOreal, Medicis Parma, Physicians Formula Holdings, Revlon, Proctor & Gamble, ROHTO Pharma, Sanofi-Anventis SA, Royal DSM, Shiseido, Strivectin Operating Company, Unilever Algenist, Amorepacific, Avon, Botox, Caudalie, Clarins, Clarius, Clinique, Covergirl, Dr. Andrew Weil, Dr. Brandt Skincare, Dr. Dennis Gross, Elemis, Elizabeth Arden, Kate Somerville, Loreal, Maybelline New York, Murad, Neutrogena, Nu Skin, Olay, Olay, OLE Henriksen , Origins, Perricone MD, Peter Thomas Roth, Philosophy, Retin-A, ROC, SK-II

VIII. MAJOR SKIN ANTI-AGING Ais

Active Ingredient Major Brand Manufacturer Patented WW Revenues (2011) Rx & OTC Application Botulinium Toxin BOTOX Allergan YES $1.7B YES Injection (3x/yr) Retinoid (Vitamin A) RETIN-A (acne) RENOVA (wrinkles) J&J, Others Expired $1.6B YES Topical (1x/day)

Restoring, Preserving Elastin in Aging Skin Connect Complex TBD

ConnecTiss
YES ? YES TBD

Therapeutic Effects in
Side Effects

1st few days

Respiratory, swallowing, bladder problems Relaxes muscles NO $1,000-$2,000

6-24 wks
Skin irritation, burning

? ?

Mode of Action Reverses Skin Damage, Wrinkles, Sagging Cost/Treatment/Yr

Skin renewal, growth NO $300-400

Prevents elastin degradation YES (TBD) ~$500

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IX.
TEAM

MGT TEAM, MILESTONES

Restoring, Preserving Elastin in Aging Skin

TERENCE A. WALTS, MBA President, CEO, Co-Founder.

Twenty-six years bus experiences in life sciences , incl. SVP-CIBA Vision/Novartis, CEO of 3Ti, Refocus Group & Cambium Medical Technologies; Pres, COO Oncose. Director of VirtualScopics since 2005 (NASDAQ:VSCP) & Metaclipse since 2013. Experiences w/ 13+ medial start-ups. Took 2 start-ups public; 3 subsequently acquired by industry leaders/strategic investor. Raised $60M+ in start-up financing. 1971-88 in consumer packaged goods marketing - Unilever, General Foods & Hanes Corp. BS-Indiana; MBA-Notre Dame.

Naren Vyavahare, PhD. - Chief Scientific Officer, Co-Founder.

Hunter Endowed Chair, Professor of Bioengineering and Director of NIH-funded SC Center for Biomaterials and Tissue Regeneration, Clemson University. Research interests include extracellular matrix, heart valve and elastin. Inventor, co-inventor of 13 patents. Author, co-author of over 5 book Chapters & 100+ refereed-journal publications. Fellow, American Institute of Medical & Biological Engineering. Clemson awards for faculty excellence and outstanding research achievements. Prior Professors at University of Pennsylvania School of Medicine and University of Michigan. PhD-University of Pune (India).

KEY MILESTONES:
Proof of concept in animal models, related publications 1 issued, 2 filed patents Founders funding to date License option pending w/ CURF CEO on board late 2013

XII.

FUNDING

Restoring, Preserving Elastin in Aging Skin

SEEKING:
First outside financing (500K)

USE OF PROCEEDS:
Secure Clemson license option Prototype formulation development Initial skin absorption studies Business Plan Next round funding

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XIII. TIMING, FUNDING

2014 Qtr Fund Raising Formulation Dev. Permeability, Diffusion Studies Q1 $25K Q2 $475K x x x Q3 Q4 Q1 $2.5M 2015 Q2 Q3 Q4

Restoring, Preserving Elastin in Aging Skin

2016 Q1 $2.0M Q2 Q3 Q4

Stability Studies
Packaging Dev. Clinical Trials Contract Mfg. Commercial x

Ph-I

Ph-II

Ph-III
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OTC

Rx

XIV. FINANCIAL PRO FORMAS

2014
PROFIT & LOSS Revenues (000s): Commercial Grants, Spon Research Outside Funding $0.0 $0.025 $0.475 $508 $2,500 $3,455 $2,000 $11,600 -

Restoring, Preserving Elastin in Aging Skin

2015

2016

2017

2018

2019

$28,564 -

$47,085 -

Gross Profit (75% GM)

Expenses EBITDA Net Income CASH FLOW SUMMARY Beginning Cash Ending Cash

$0.0
$0.45 ($0.45) ($0.45)

$381
$2,450 ($2,069) ($2,200)

$2,591
$4,278 ($451) ($739)

$8,700
$7,380 $1,320 $592

$21,423
$16,710 $4,713 $2,428

$35,314
$25,897 $9,417 $5,183

* $0.05

$0.05 $0.476

$0.476 $0.789

$0.789 $2,109

$2,109 $4,922

$4,9 $9,272

EMPLOYEES
PRE-MONEY VALUATION

2
$2.0M

16
$4.5M

25
$7M

35
$23M

76
$57M

108
$94M
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SUMMARY
STRONG CORE, COLLABORATIVE TEAM

Restoring, Preserving Elastin in Aging Skin

LARGE, GROWING, UNREGULATED MARKET

HUGE UNMET NEED (aging pop. want anti-aging products that work) LOW DEVELOPMENT, ENTRY COSTS, TIME TO MKT ELASTIN RESTORATION OVERLOOKED OPPORTUNITY

ConnecTiss ELASTIN TECHNOLOGY

Proof of concept est in animal models, cardiology Strong IP (1 issued, 2 pending patents, several publications)
Thank you!
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