Newtopia, Inc. · OTC:NEWUF
Newtopia — Investor Presentation (September 2023)
40 slides from Newtopia's investor presentation, September 2023
Slide 1: Corporate Overview Presentation
TSXV: NEWU OTC: NEWUF Corporate Overview Presentation September 2023
Slide 2: Forward Looking Information
Forward Looking Information Certain statements in this presentation are forward-looking information or forward-looking statements. Such information and statements, referred to herein as “forward-looking statements” are made as of the date of this presentation or as of the date of the effective date
Slide 3: Investment Highlights
Investment Highlights Third-Party Validation: the only tech-enabled habit change provider with Full-Plus CDC accreditation, incorporating genetic data, leveraging HIPAA-compliant technology Marquee Insurer Partners: partnering with a growing list of US Fortune 500 employers and health plans Proven C
Slide 4: Making Healthy Living & Medical Plans a Habit
MEET NEWTOPIA Making Healthy Living & Medical Plans a Habit Tech-enabled habit change provider for disease prevention Reducing cost of care and optimizing revenues for health insurers The only tech-enabled habit change provider with Full-Plus CDC recognition, incorporating genetic data and leveragin
Slide 5: Marquee Clients – Innovative Self-Insured Employers
Marquee Clients – Innovative Self-Insured Employers Population Access amongst Current Client Base 30% Current Access 70% Opportunity Amongst the client base listed to the right, Newtopia has provided access to roughly 30% of their population, providing significant opportunities for expansion. 5
Slide 6: Huge US Health Plans - 100M Private Insured Lives
Huge US Health Plans - 100M Private Insured Lives Total Medicare Private Health Plan Enrollment, 1992-2026 (in millions of people) HISTORICAL PROJECTED Medicare Advantage Age 65+ Represents 45% of all 29 30 28 Medicare enrollment in 2022 27 26 25 23 22 21 Commercial – Self-insured 17.6 19 Reseller O
Slide 7: What Problem is Newtopia Solving?
What Problem is Newtopia Solving? Health systems do not adequately support primary prevention, leaving insurers intervening too late. We make healthy living and medical plans into habits. IF YOU PREVENT THESE BEHAVIORS, YOU'LL SEE A CHRONIC DISEASE IS PREVALENT AND EXPENSIVE. DRAMATIC DECREASE IN CH
Slide 8: How Does Newtopia Work?
How Does Newtopia Work? ONBOARDING PROGRAM Tracking Risk eligibility Identified* Receive Welcome Kit Coaching Sessions (steps, weight and compliancy) and Registration and Genetic Test (Inspirator frequency depends on month in program) Newtopia App Scheduling, videos, worksheets, goal tracking, snap
Slide 9: Newtopia Performance Revenue & ROI
Newtopia Performance Revenue & ROI PARTICIPANT SUBSCRIPTION FEE OUTCOME WELCOME KIT Per Contracted MILESTONE Initial Onboarding Engaged Participant Target: 5% Body + Criteria + Weight Reduction or A1c Reduction One-time Fee, Recurring Revenue, Success Fee, Lower Margins [1] Higher Margins [2] 100% M
Slide 10: Habit Change Translated to Meaningful Metrics
Habit Change Translated to Meaningful Metrics Chronic Disease Newtopia Enriching Mental Health and Mental Health Risk Reduction and Well-Being Cost Reduction and ROI ↓14.5% Metabolic Severity Risk Score1 ~31% 36% Lost over 5% body weight by 12th month ↓$1,464 Participants improved their mental healt
Slide 11: Risk Factors that Contribute to Chronic Conditions
Risk Factors that Contribute to Chronic Conditions 1 5x Waist circumference as likely Untimely death Kidney disease or BMI to develop type 2 diabetes 2 Elevated blood glucose / A1C Vision disability Liver damage 3 Elevated blood pressure 2x as likely to develop Heart problems Weakness heart disease
Slide 12: Costs of Chronic Disease Risk to Health Insurers
Costs of Chronic Disease Risk to Health Insurers COVID-19 20% of the US population has diabetes, heart disease or 80% of the US population has has suffered a at least one stroke INDIRECT risk factor COSTS/ MENTAL HEALTH DIRECT COST/ PHYSICAL HEALTH Healthy 1-2 Risk Factors 3+ Risk Factors Diabetes,
Slide 13: Large & Growing Addressable Market
Large & Growing Addressable Market $4.1 trillion in US healthcare costs in 2020 estimated to grow at a CAGR of 5.3% and reach $6.2 trillion by 2028, outpacing the GDP and representing…. SELF-INSURED PRIVATE PUBLIC/GOV EMPLOYERS INSURERS INSURERS 150M 100M 100M LIVES (US) + 38M LIVES (CAN) LIVES LIVE
Slide 14: Third Party Validations: Clinically Significant Outcomes
Third Party Validations: Clinically Significant Outcomes Evidence Based & Grounded in Science Full-Plus CDC recognition: The U.S. Patent 9,554,754 weight, Aetna sponsored Randomized Case Study: Strategic Incentive Full-Plus 5-yr. distinction is lifestyle and/or disease Control Trial Published in the
Slide 15: Valuable Industry Data: Genetic & Phenotypic Data
Valuable Industry Data: Genetic & Phenotypic Data Aggregated & Anonymized Genetic, Phenotypic, Mental Health & Social Determinants of Health Data Provides Strategic & Commercial Advantages Collecting both Genetic and Phenotypic data is novel to Newtopia LONGITUDINAL DATABASE (>3 YEARS) Real-Time Ana
Slide 16: Path to Profitability in 2023
Path to Profitability in 2023 • Initiated strategic repositioning plan in November 2022 • Made sizable cuts in expenses in Q4 ’22 – Q2 ‘23, with opex reductions of 41% year over year and sequential cash burn reductions of 64% in the second quarter alone • Operating expense declines were achieved thr
Slide 17: Annual Revenue and Gross Profit Margin
Annual Revenue and Gross Profit Margin 12000 11.4 75% 11.2 10.5 65% 10000 55% 8000 45% Percentage 6.1 in C$ M 6000 35% 25% 4000 3.1 15% 2000 1.5 1.0 5% 0 -5% 2016 2017 2018 2019 2020 2021 2022 Revenue Gross Profit Margin 17
Slide 18: Participant Engagement: Steady Growth
Participant Engagement: Steady Growth 160,000 149,000 140,000 135,500 119,200 120,000 100,000 80,000 60,000 55,700 40,000 33,800 18,500 20,000 12,000 - 2016 2017 2018 2019 2020 2021 2022 # of Engagements Per Year 18
Slide 19: Quarterly Revenue & Gross Profit Margin
Quarterly Revenue & Gross Profit Margin Revenue Gross Profit Margin 19
Slide 20: New Front Door for Health Care
New Front Door for Health Care The only tech-enabled habit change provider with Full-Plus CDC recognition, incorporating genetic data and leveraging HIPAA-compliant technology with industry leading engagement. A growing list of partnerships with US Fortune 500 employers & health plans 80% of the Nor
Slide 21: Appendix
Appendix 21
Slide 22: Highly Experienced, Driven Management Team
Highly Experienced, Driven Management Team Jeff Ruby Lara Dodo Bill Van Wyck Collin Swenson Founder & Chief Executive Officer Chief Growth & Operations Officer Advisor: Technology & Product Chief Financial Officer Co-founded Cleveland Clinic CEO of TimePlay and Co-Founder Founder, CEO and CIO Zillio
Slide 23: Genetic Insights. Actionable Recommendations.
Genetic Insights. Actionable Recommendations. Body Fat Gene (FTO) Determines how body breaks down fat How easily do you gain weight? Caffeine Gene (CYP1A2) Determines how quickly we metabolize caffeine Is caffeine impacting your sleep, stress or anxiety levels? Eating Behavior Gene (DRD2) Regulates
Slide 24: Clinically Significant Outcomes: Detailed Version
Clinically Significant Outcomes: Detailed Version Accredited by the Centers of Disease Control (CDC) and US Patent for “Hyper Personalized Disease Prevention Platform” 1 2 3 4 5 6 Aetna Randomized Abstract: Weight Loss Abstract: Abstract: The Effect Santa Barbara Control Trial Published During the C
Slide 25: Aetna Randomized Controlled Trial
Aetna Randomized Controlled Trial Randomized Controlled Study (RCT) shows material savings for clients. 10% 10% Average Body Weight Reduction (%) US$1,464 in savings Annual reduction in medical costs 7.5% Newtopia continues to 2X in-year ROI replicate and improve on RCT results in our 4.3% commercia
Slide 26: Behavioral Economic Trial - 24 Month Insights and Outcomes
Behavioral Economic Trial - 24 Month Insights and Outcomes ENGAGEMENT* WEIGHT LOSS Over 12 and 24 months 88% & 83% ~48k LB 39% 14% Population engaged on ** Total weight loss Continuously engaged participants Continuously engaged participants average month far exceeding since inception achieved > 5%
Slide 27: Medicare Advantage Study
Medicare Advantage Study Santa Barbara Actuaries Research Report: Newtopia Over-65 Population Savings Estimate. Report Highlights 5.5% Anticipated average $1,700 $10.8M body weight reduction Cost savings per MA member Estimated one-year savings for plan with 100,000 members Source: “Newtopia Over-65
Slide 28: Our Patented, Scalable Virtual Care Platform
Our Patented, Scalable Virtual Care Platform Transformative Habit Change Platform Behavioral Technology and user Data AI Smart Economics and Inspirators experience design Analytics Deep Learning Automation Psychology CURRENT FUTURE 1 Inspirator for every 200 participants 1 Inspirator for every 350+
Slide 29: Debut Canadian Public Health Insurer
Debut Canadian Public Health Insurer 522,000 TOTAL POPULATION In 2020, 34% of the population in Newfoundland and Labrador had Diabetes (type 1, type 2 diagnosed and type 2 undiagnosed) and prediabetes combined. Eastern Health is now looking to expand the offering province-wide. 1. “Diabetes in Newfo
Slide 30: Participant Journey
Participant Journey 30
Slide 31: Meet Maria
Meet Maria Age 52 Maria is about to have a Height 5’5” life-changing experience Weight 168 Key Risk Eligibility Blood Pressure HIGH Criteria: Out of range A1C & BMI A1C 6.1% Health Goals: Lose weight - 18 Ib loss BMI 28 Decrease A1C, Cholesterol Increase energy, mood, Readiness CONTEMPLATIVE and sel
Slide 32: Maria’s Newtopia Journey
Maria’s Newtopia Journey Watch: Overview Video Invitation to Health Profile v Personality-Matched Inspirator Client Data Sharing & Integrations Welcome Kit Health Goals Achieved Genetic Engagement Engaging Workshops, Community, Gaming & Challenges Personalized Plan Care path referrals & curation New
Slide 33: Maria’s Habit Change Team
Maria’s Habit Change Team Humans helping humans. Amplified by technology & data insights. Expert Team Inspirators Care Specialists 33
Slide 34: Technology and Processes Drive Maria’s Personalization
Technology and Processes Drive Maria’s Personalization Newtopia 1.0 Platform Know Me Support Me Engage Me Partners • 3PL Personal Profile & Personalized Care 1:1 Coaching • Genetics Scripts, SDoH Journey Experience Labs, Clinics • Data (Connected Devices, iOT)) Biometrics Personality Matched Care Sp
Slide 35: Evolution of Technology & Data Insights for Maria
Evolution of Technology & Data Insights for Maria New Key Features Key Features Hello Maria • Real-time, in-app, live communications • Client specific program onboarding • Proprietary Habit change index (HCI) • Personalized program material • Daily check-in, emotional tracking delivery • Photo and n
Slide 36: Maria’s Genetic Engagement
Maria’s Genetic Engagement Genetic Results MC4R Leptin deficiency—delayed sense of feeling full- tendency to overeat DRD2 Dopamine deficiency—seek behaviors to fulfill reward center (often nutrition)- emotional eating FTO Difficulty metabolizing carbohydrates and fats, respond better to a higher pro
Slide 37: Actionable Recommendations for Maria
Actionable Recommendations for Maria NUTRITION ADDRESS THE DELAYED SENSE OF FEELING FULL AND THE EMOTIONAL EATING Higher protein diet: 40% protein 30% carbs • Fill your plate as usual, then put extras away 30% fats immediately • Drink 1-2 glasses of water prior to a meal EXERCISE Work up to • Practi
Slide 38: Newtopia GLP-1 Support Throughout Maria's Journey
Newtopia GLP-1 Support Throughout Maria's Journey MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB 12% WL 3.5% WL 10% WL (maintained) Healthy habits around nutrition, exercise Maria introduces healthier eating & Maria develops increased awareness of her emotional and wellbeing are now embedded in inc
Slide 39: Maria’s Outcomes: 12 months
Age 53 Height 5’5” Maria’s Weight 148 (-12%) Outcomes: Blood Pressure MEDIUM 12 months A1C 5.3% Readiness ACTION PROMIS® WITHIN NORMAL LIMITS Family History HIGH RISK Social Determinants HIGH RISK 39
Slide 40: Who Benefits Most From Maria’s Foundational Habit Change
Who Benefits Most From Maria’s Foundational Habit Change 1 Member Engagement 2 Improve Health/Life 3 Decrease Cost of Care/Increase Desired Benefits Utilization Behavior Change Eco System Program Champion Provider Amplification Employers Chronic Diseases Health Plans Primary Care Providers Habit C