Introducing the All-Purpose
Wheelchair
patent no. 11/835,963
Industry:
$3.2 billion in
2010 growing 4-10%
depending on segment
Goal:
To sell 2000 units
in 5th year for $31.8M or
1% market penetration
Leadership:
Ed Johnson, Founder, Veteran
Phil Brown, Founder
Alan Hammond, Attorney
Advisory Board:
Rayford G. Johnson,
RRT, RPSGT & Director
of the ETSU Innovation
Laboratory
Ralph Lillard,
retired CEO of
Oak Ridge, TN
Keith V. Johnson, Ph.D.,
Chair Dept. of
Engineering Technology
at ETSU
Key Relationships:
Blackburn, Childers, and
Steagall, PLC has been
retained to prepare
financial statements
and taxes and consulting
Peter Axelson,
Founder & Dir. of
Beneficial Designs Inc.
& serves on RESNA
board for wheelchair stds
Dr. Hugh Rogers,
expert in Lean Mfg
& Six Sigma
|
Executive Summary
Mission: Our mission is to help people with walking disabilities by providing practical
mobility for every day needs as well as greater access to the unpaved slope-filled world.
The Problem:
50,000 people per year are injured in tip-over wheelchair accidents. No other wheelchair lowers
the center of gravity significantly enough to effectively eliminate this risk. Additionally, people in wheelchairs
are practically confined to horizontal smooth surfaces and cannot safely venture out into their own yard much less
a park, pasture, or wood. Transferring to other surfaces (e.g., the ground, a low bed, etc.) is another challenge
for the wheelchair-bound.
The Solution:
We offer a regained passion for life to our customers through the All-Purpose Wheelchair (APW) that
provides unparalleled safety, freedom, and access. The Patented APW is the only wheelchair that can safely maneuver
on any slope when in its “exploration” mode (low center of gravity) and is small enough in the upright position to
fully maneuver indoors. The patent covers extending the wheelbase and leg support.
Life Changing Chair:
• Ed Johnson, injured in ’99, worked with Phil Brown in ’05 to design and build the 1st prototype to address his family’s worries and his freedom.
• The 2nd prototype was built in 2006, and the patent application was filed.
• In 2007, angel investor Al Robinson provided $150K to produce the beta prototype, support patent efforts, and begin understanding the market through trade shows.
• While at a trade show, the director of a pediatric rehab center wanted 42 chairs @ $15K/ea, because she saw real potential to improve the children’s outlook and health.
• In 2009, Terry Seaman, a professional engineer with extensive business training and experience in project management, joined LCC to position the company for investment, develop key relationships (i.e., advisory board, industry experts, & marketing contacts), facilitate the regulatory and approval processes, lead the assembly start-up effort, and manage the company for growth and profit.
• In November, LCC won the “Will This Float?” entrepreneurial competition in Kingsport.
• In 2010, Al Sandy, developer of Orison Corp’s regulatory and QC documentation, agreed to provide LCC with similar support and has already provided a budget/timeline.
• And finally, the University of Tennessee’s Senior Capstone Design project recently confirmed that the current prototype should pass the FDA’s rigorous physical testing.
Business Model:
• LCC will outsource everything except for assembly which will be done in Kingsport, TN.
• We will aggressively pursue current suppliers as well as Durable Med. Eq. (DMEs) providers for license or contract-build agreements.
• Initial sales will be built to order and sold to individuals for cash (10% are cash buyers).
• 2nd yr. sales of 100 units will get suppliers’ attention (i.e., license) while we aggressively pursue sales through the Veteran’s Admin (congress/DOD access to VA) and DMEs
• Significant focus will be on accessing veterans and obtaining coverage (Medicare/Ins.).
Use of Proceeds/Timeline (by year):
1. LCC will use funds to protect IP, develop market/customer information, finalize product, obtain regulatory approval, file 510K, and initialize marketing efforts.
2. LCC will use funds to continue above efforts, sell the first 100 units, and aggressively license/contract-build and access VA/DMEs –-- and become cash-flow positive.
3. LCC will sell 400 units and generate $6.1M revenue and $1.4M profit.
Exit Strategy:
Transformational Outcome --- We intend to build a long-term company that rewards investors and stockholders while delivering quality products to the disabled, empowering disabled people to work, and upholding the value of “setting up for yourself treasures in heaven.”
Competition:
Differentiation is currently a major challenge for leading producers. Permobile offers a chair that lowers user to the ground but is immobile in that position (safety lock-out).
|
