Growthink Business Plan Sample #1

URGENT CARE CENTERS NEWCO

BUSINESS PLAN

XX | PRESIDENT

TABLE OF CONTENTS

Table of Contents..................................................................................................................................................................................... 2
Executive Summary................................................................................................................................................................................ 3
Company Overview................................................................................................................................................................................. 5
Industry Analysis..................................................................................................................................................................................... 8
Market Analysis and Targeted Locations ...................................................................................................................................... 9
Competitive Analysis ...........................................................................................................................................................................19
Marketing Plan .......................................................................................................................................................................................22
Operations Plan......................................................................................................................................................................................23
Financial Plan..........................................................................................................................................................................................24
Appendix ...................................................................................................................................................................................................28

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EXECUTIVE SUMMARY

BUSINESS DESCRIPTION

Newco was founded in 2013 to manage and operate as a chain of OWNERSHIP:
urgent care centers initially located throughout the XX metro area Dr. XX
with the goal to expand beyond these markets. Newco will utilize Dr. XX
Dr. XX’s knowledge of the urgent care industry as he is currently a Dr. XX
part-owner and operator at XX located in XX, XX. Newco’s goal is to Dr. XX
open and manage four to ten urgent care centers within the next

three to five years. PRODUCTS & SERVICES:

BUSINESS MODEL Community Based Urgent Care

With the advent of recent significant changes in the health care MARKET:
industry, the need for non-emergent acute care facilities will be Dallas-Fort Worth Metro
paramount. These facilities will drive a large portion of the industry

growth over the next several years. The company derives revenue INDUSTRY:
from patient visits, procedures performed, medication dispensing, Urgent Care Centers in the U.S.
diagnostic testing and laboratory services. Occupational and 2015 Industry Revenue: $16.7B
business medicine as well as workers compensation are also
significant contributors to growth and revenue in the urgent care COMPETITORS:
field. Key costs associated with the business consist of personnel Concentra
expenses (payroll), medical supplies, marketing and equipment for
lab and x-ray. PrimaCare Medical Center
CareNow

VALUE PROPOSITION City Doc Urgent Care
Medpost
Newco’s priority is giving the best care to patients through a warm

and friendly staff, a highly qualified medical team and state of the Y1 INITIAL CAPITAL REQUIREMENT:
art technology. As a community based urgent care, the Company is $2,345,865
committed to serving its local residents and growing alongside the

community. The Company’s advanced electronic medical records system streamlines operations to make

walk-ins and on line scheduled appointments more efficient for the patient. Newco’s urgent care centers

are a child-friendly environment where families can feel safe and comfortable while taking care of their

medical urgencies.

INDUSTRY/MARKET SNAPSHOT

Newco operates within the urgent care center industry. This industry includes facilities that typically
deliver medical care on an unscheduled, walk-in basis. In 2015, the industry is expected to reach an
estimated $16.7 billion in revenue after growing by 8.2%. The compound average growth rate (CAGR) to
2020 is projected at 6.2% at which point industry revenue will top $22.6 billion. Overcapacity at primary
care offices will result in a greater number of patients directed to urgent care centers. Additionally,
insurance providers have implemented incentives for patients within their network to visit urgent care
centers, due to these centers typically being lower-cost than emergency room visits. As the Affordable Care

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Act expands the number of insured individuals, more individuals will be able to afford out-of-pocket costs
for visiting urgent care centers to address noncritical health ailments.

The target demographic for urgent care in the United States are married couples with children present in
the home and reside in single family, owner occupied housing. The head of the household is age 35 to 54
and has attended college. Their household income is greater than $100,000 per year; they have migrated to
growing suburbs of major cities and receive health insurance through his or her employer.

COMPETITIVE SNAPSHOT

Newco competes with other urgent care centers with multiple facilities throughout the Fort Worth – Dallas
Metro area. The most direct competitors include Concentra, PrimaCare Medical Center, CareNow, City Doc
Urgent Care and Medpost. Unlike many of its competitors Newco is not a national conglomerate, but rather
operates as a community based urgent care center and knows the importance of providing local families
with quality and trusted care. Newco serves as a consolidated management company servicing each
location to create economies of scale with overhead and avoid redundant costs.

SUMMARY FINANCIAL PROJECTIONS

In order to launch the next five to nine urgent care centers, Newco will require a Series A round of $2.35
million to sustain operations in Location 2 and open up Location 3 by the end of 2015. Locations four
through seven will require additional funding, which averages to about $1.5 million per location. Funding
for new locations include office build out, medical equipment, furniture, and twelve months of working
capital. The company is projected to generate total revenues of $2,517,508 at a net loss of $405,686 in year
one. By year five the company is projected to grow to annual revenue of $10,415,540 with a net income of
$1,389,527. The following figure shows the company’s anticipated growth from year one to year five.

Total Revenues FY1 FY2 FY3 FY4 FY5

Total Direct Cost $2,517,508 $3,824,520 $5,392,955 $7,292,289 $10,415,540
Gross profit
Gross Profit Margin (%) ($310,026) ($464,679) ($613,568) ($817,297) ($1,112,411)
Total Other Expenses $2,207,482 $3,359,841 $4,779,388 $6,474,992 $9,303,129
EBITDA 89%
Depreciation 88% 88% 89% 89%
Amortization & Impairment ($2,570,667) ($3,526,918) ($3,935,828) ($5,988,208) ($6,994,501)
EBIT $2,308,627
Interest Expense-Debt ($363,186) ($167,077) $843,560 $486,784 ($250,000)
Interest Expense-Leased Assets ($12,500) ($62,500) ($112,500) ($200,000) $0
Interest Income $0 $0 $2,058,627
Other Income (Expenses) $0 $0 $0
Pretax Income ($375,686) ($229,577) $731,060 $286,784 $0
$0 $0 $0
Income Tax Expense $0 $0 $0 $0 $0
$0 $0 $0 $0 $2,058,627
Net Income $0 $0 $0 $0 ($617,588)
Net profit (%) $0 $0 $1,441,039
($375,686) ($229,577) $731,060 $286,784 14%
$0 $0 ($37,739) ($86,035)
$693,320 $200,749
($375,686) ($229,577) 13% 3%
-15% -6%

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COMPANY OVERVIEW

Dr. XX founded Newco (also referred to as ‘the Company’)
in 2013 to manage and operate a chain of urgent care
centers initially located throughout the Dallas/Fort-Worth
metro area with the goal to expand beyond these markets.
Newco will give each community it serves accessible and
affordable urgent health care. The company is dedicated to
providing the community with top quality urgent medical
care for the entire family.

Newco currently manages two locations and will continue
to utilize Dr. XX’s entrepreneurial knowledge of the urgent
care industry along with his practical skills as clinic director and manager of both XX Urgent Care and XX
Urgent Care. XX is the first location which has been operating for the past five years and is already
generating steady income. The second location, XX Urgent Care just opened four months ago and is
expected to mature within the next several years. Newco’s goal is to open five to nine urgent care centers
within the next five years. Dr. XX and his partners Dr. XX, Dr. XX, Dr. XX & Dr. XX own XX UC and serve as its
managing directors. Dr. XX, Dr. XX, Dr. XX, and Dr. XX own the company and serve as its managing directors.

There is an opportunity for other outside investment and investors as the business gets ramped up. The
Company will seek private equity investors to help fund the immediate costs of the next five to nine
facilities. This may be in the form of a percentage of ownership, conventional loan, or other avenues which
can be negotiated.

Newco currently requires a Series A financing of $2.35 million. The allocation of funding will be used to
secure the growth of Location 2 and open Location 3, which requires capital for office build-out, purchase
of medical equipment, purchase office equipment, and working capital for the next twelve months. A Series
B investment will be needed in 2016 in Quarter 1, for the launch of Locations 4 &5 in the amount of $3.12
million. The last investment, Series C, will be about $3million and will be allocated towards Locations 6 &
7.

MEDICAL CARE SERVICES  HEADACHES  OCCUPATIONAL
 MINOR BURNS MEDICINE
 COUGH  EAR ACHES
 ALLERGIES  CUTS  OUT-OF-TOWN
 INDIGESTION  RASHES PRESCRIPTION
 DIZZINESS  MILD ASTHMA REFILLS
 BROKEN BONES
 COLDS  SINUS PROBLEMS
 SPRAINS  MINOR INJURIES

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 STOMACH ACHES  ANIMAL BITES

BUSINESS MODEL

The urgent care centers derive revenue from patient visits, procedures performed, medication dispensing,
diagnostic testing and laboratory services. Key costs associated with the business consist of personnel
expenses, medical supplies, emergency medical record (EMR) system, and other operating expenses.
Newco derives its revenue from management fees earned by providing comprehensive management
services to the urgent care centers.

VALUE PROPOSITION

Newco’s priority is giving the best care to its patients through a warm and friendly staff, a highly qualified
medical team and state of the art technology. As a community based urgent care center Newco is
committed to serving its local residents and growing alongside the community. The company’s advanced
electronic medical records system streamlines operations to make walk-ins and scheduled appointments
more efficient for the patient. Newco is a child-friendly environment where families can feel safe and
comfortable while taking care of their medical urgencies.

MANAGEMENT EXPERTISE

f

DR. XX – PRESIDENT
Currently, XX, D.O. works full time as an Emergency Room Physician and as the Medical Director and
Practice Manager at Company Confidential, where he is a part owner. Prior to this work and his partial
ownership of XX Urgent Care, Dr. XX worked in a variety of positions in the medical field. He started as a
full-time Family Physician and transitioned into full time Emergency Room work. Along the way he has
developed a very successful hospitalist program and has served as Medical Director at multiple Emergency
Departments in the XX area.

Dr. XX received his B.S. degree in Biomedical Science from XX University and attended the University of XX
Medical School where he received his Doctor of Osteopathy degree. He finished his medical training at the
University of XX, Family Medicine Residency in City, State.

DR. XX
Dr. XX has worked as a physician for nearly 20 years. His career began at the XX Medical Group in XX where
he practiced Internal and Emergency Medicine. Since arriving in the XX area in 1998 he quickly developed
into the Director of Hospitalist Services at several <State> Hospitals. Dr. XX also serves as the Program
Medical Director of Vista Care Hospice and the Regional Medical Director for a large physician staffing
company. As a contributing academic, Dr. XX co-authored several medical publications.

XX, M.D, S.F.H.M. received a Higher Secondary School Certificate from XX. His education continued in
Karachi where he received his M.B.B.S. graduate medical education from Aga Khan University Medical
College. Dr. XX performed his 3-year residency in Internal Medicine at the XX Medical Center through the
University of XX College of Medicine at XX.

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DR. XX
XX, M.D. began his medical career in the U.S. Army Medical Hospital in XX as a resident officer in the U.S.
Army Medical Corp. Dr. XX moved on to work at a variety of medical facilities in XX and throughout XX. He
served as a Staff Radiologist for the Trinity Mother Frances Health System for two years, which led him to
his current specialization in Breast Imaging Radiology. After some external experience, Dr. XX returned to
the XX Health System in the XX Breast Center as a Breast Imaging Radiologist where he currently works. He
also provides radiologic oversight and plain radiography interpretive services at XX Urgent Care.

Receiving a Health Professions Scholarship from the U.S. Army from which he was honorably discharged as
a Major in the Medical Corps; Dr. XX earned his undergraduate B.A. degree in Chemistry from XX College
and his M.D. degree from the University of XX Medical School. He served his residency at XX Medical Center
and his Fellowship at XX Health and Hospital System.

DR. XX
Dr. XX has about 20 years of experience in the medical field, holding a Board Certification in Internal
Medicine from the American Board of Internal Medicine and his License to practice in XX. Since 2004, he
has been with the XX Regional Medical Center in XX holding positions from chairman of the Department of
ICU, Chairman of the Department of Medicine, to his current positions as Chair of the Department of
Cardiopulmonary Therapy, Chief of Medical Staff, the Medical Director of the Hospital group, and an active
physician. Dr. XX currently serves on the following committees: Department of Medicine, Department
CPOE, Credentialing Department and Peer Review Committee.

Previous work experience includes working at XX Regional Hospital, a 400 bed in-patient facility, Health
Rehabilitation Hospital, XX Hospital as an attending physician and at XX Medical Services managing the
Internal Medicine Practice and Community Emergency Care Hospital. Dr. XX is a member of the American
Medical Association, American College of Physicians, and the Society of Hospital Medicine.

Dr. XX has an extensive educational background, receiving his O’ Level Certification (overseas
examinations) at Cambridge, Premedical Science Education from XX College in Karachi, Pakistan, Medical
School Education from XX University in Karachi, Pakistan, an internship as a Medical Officer at XX Hospital
Karachi, Pakistan, residency in Internal Medicine at the University of XX, and was a Diplomat for the
American Medical Board of Internal Medicine.

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INDUSTRY ANALYSIS

INDUSTRY OVERVIEW

Newco operates within the urgent care center industry. INDUSTRY SIZE: $16.7 BILLION
This industry includes facilities that typically deliver

medical care on an unscheduled, walk-in basis. Urgent CAGR: 6.2%
care centers are primarily used to treat patients who

have an injury or illness that requires immediate care but PROJECTED REVENUE ’15-’20: $22.6 BILLION
is not serious enough to warrant emergency room care.

In 2015, the industry is expected to reach an estimated $16.7 billion in revenue after growing by 8.2%.1 The

compound average growth rate (CAGR) to 2020 is projected at 6.2% at which point industry revenue will

top $22.6 billion.

The urgent care centers industry represents one of the fastest growing segments of the American
healthcare system. Over the past five years, a shortage of primary care physicians, coupled with rising wait
times at emergency rooms, has stimulated demand for urgent care centers to provide noncritical care. As
the growing elderly population demands more healthcare services and the insured population expands due
to the Affordable Care Act, more individuals will seek high-quality, cost-effective healthcare options at
urgent care centers. There are an estimated 5,299 urgent care centers in the United States.

The industry remains highly fragmented, with the majority of industry operators operating just one facility.
Although there are several companies with a national presence, the largest operators control less than
5.0% of industry revenue. Shortage of primary care physicians will prompt patient demand for urgent care
centers over the next five years. The likely shortage of primary care physicians, coupled with more
individuals using primary care providers as a form of preventive care, will result in more primary care
physicians referring patients to urgent care centers. In particular, urgent care centers will be increasingly
utilized to bridge the gap in healthcare from the emergency room to the primary care physician. Figure 1
shows the breakdown of services segmentation within the industry.

Figure 1: Industry Services Segmentation Other Industry Services Segmentation (2015)
10%
Medication Minor Procedures
Dispensing 60%

15%
Diagnostic Testing &

Lab Services
15%

1Ibis World Urgent Care Centers in the U.S. Industry Report Page | 8

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MARKET ANALYSIS AND TARGETED LOCATIONS

URGENT CARE DEMOGRAPHIC OVERVIEW

Typically, physician-owned, freestanding urgent care centers located in suburban areas are targeted
towards middle and upper income married home-owners with children. The reasons for targeting these
demographics are as follows:

 Children get sick and injured more frequently than adults
 Educated consumers tend to be more aware of urgent care as a cost-saving alternative to the ER
 Employed individuals are more likely to have private health insurance that covers urgent care visits
 Homeownership indicates affluence and stability in a community
 Suburban families are starved for time and value convenience

The target demographic for urgent care in the United States are married couples with children present in
the home and reside in single family, owner occupied housing. The head of the household is age 35 to 54
and has attended college. Their household income is $50,000 to $100,000 per year; they have migrated to
growing suburbs of major cities and receive health insurance through his or her employer.2

Therefore, geographic market statistics relevant to urgent care facilities include homeownership,
household income, households with children and education levels. Figure 2 is intended to portray the
target demographic for urgent care in the United States.

Figure 2

Married Couples with Head of Household is Resides in Single- Migrates to Growing
Children at Home age 35-54 and has Family, owner Suburbs of Major
attended College Cities
occuped Housing

Receives health Household Income is
insurance through his $50,000 to $100,000

or her employer

2 Alan A. Ayers, MBA, MAcc, Vice President, Concentra Urgent Care. Riches in the Niches: Target Demographics for
Urgent Care

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TEXAS STATE – MEDICAL PATIENT DEMAND

 The American College of Emergency Physicians (ACEP) recently ranked Texas 38th in the nation
with a grade of D+ in its annual "America's Emergency Care Environment: A State-by-State Report
Card"—much of which was due to poor access to ER care in XX3.

 Texas continues to struggle with numerous factors in Access to Emergency Care, including severe
financial barriers to care. The state has some of the worst rates of health insurance for adults and
children (26.9% and 15.4% uninsured, respectively), for which it ranks last and second to last in
the nation.

 Increased use of the emergency department is costing insurers billions of dollars per year, and sick
and injured patients are waiting hours to be seen due to overcrowding. Visiting an urgent care
center is an affordable alternative to using the emergency department for primary care4.

 In the state of Texas, there are about 385 non-federal, short-term, acute care hospitals and facilities.
 Of these total establishments, there are a total of 58,263 staffed beds available for patient use.
 According to the latest cost reports filed, there were a total of 2.5 million discharges processed

during the year, with a total of 11,626,067 in-patient days utilized.
 The total gross patient revenue totaled $212,512,156 annually in the last cost report.

MURPHY, TEXAS

Within the borders of Collin County, Texas, Murphy is located northeast of Dallas. Murphy’s population is
19,515 according to the United States Census. Murphy’s median household income is $118,231, which is
more than double the median household income of the state of Texas at just $51,900. Of the population,
95.1% are homeowners equating to 5,078 homeowners in Murphy. There are 4,636 family households with
2,783 of those being married couples with children. The city’s population aged 25 and older is 10,645 with
39.8% of those holding a bachelor’s degree and 17.6% holding a graduate or professional degree. Murphy
has a civilian labor force of 18,403 with just a 3.3% unemployment rate.

ZIP CODE: 75094
Zip Code 75094 is one of two located in Murphy, Texas and has a total population of 20,536. There are
5,850 households, which have a median household income of $116,344. The area has a civilian labor force
of 10,410 with just 3.4% unemployment. Of the population, there are 11,522 over 25 years of age and
39.3% has a bachelor’s degree and 18.9% have a graduate or professional degree. Table 1 shows the
distribution of household income in zip code 75094.

Table 1

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 73 1.3%
$10,000 to $14,999 27 0.50%
$15,000 to $24,999 100 1.7%
$25,000 to $34,999 163 2.8%
$35,000 to $49,999 372 6.5%

3 American College of Emergency Physicians Page | 10
4 Physicians Now Urgent Care

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$50,000 to $74,999 695 12.2%
$75,000 to $99,999 714 12.5%
$100,000 to $149,999 1,806 31.5%
$150,000 to $199,999 927 16.2%
$200,000 and above 853 14.9%

FRISCO/MCKINNEY, TEXAS

Frisco and McKinney, Texas are located 12 miles apart from one another. According to the United States
Census, McKinney has a population of 148,559 and Frisco has a population of 136,791. McKinney’s median
household income is $81,118 and Frisco’s is $108,284, both of which are significantly more than the
median household income of the state of Texas, which is just $51,900. Of the total population, an average of
72.7% are homeowners equating to 90,221 homeowners in the towns combined. There are nearly 70,000
family households with about 34,000 of those being married couples with children. Frisco’s population
aged 25 and older is 75,865 with 41.3% of those holding a bachelor’s degree and 17.4% holding a graduate
or professional degree. McKinney’s population aged 25 and older is 84,070 with 32.5% earning a bachelor’s
degree and 13.7% with a graduate or professional degree. Frisco has a civilian labor force of 66,606 with
just a 3.9% unemployment rate and McKinney has a civilian labor force of 70,135 and an unemployment
rate of only 3.0%.

ZIP CODE: 75035
Zip Code 75035 is located in Frisco, Texas and has a total population of 47,553. There are 17,387
households, which have a median household income of $102,913. The area has a civilian labor force of
28,641 with 5.1% unemployment. Of the population, there are 31,085 over 25 years of age and 41.3% have
a bachelor’s degree and 18.3% have a graduate or professional degree. Table 2 shows the distribution of
household income in zip code 75035.

Table 2

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 293 1.70%
$10,000 to $14,999 197 1.20%
$15,000 to $24,999 472 2.80%
$25,000 to $34,999 706 4.20%
$35,000 to $49,999 1,363 8.10%
$50,000 to $74,999 2,288 13.50%
$75,000 to $99,999 2,712 16.10%
$100,000 to $149,999 4,993 29.60%
$150,000 to $199,999 2,433 14.40%
$200,000 and above 1,434 8.50%

ZIP CODE: 75071
Zip Code 75071 is located in McKinney, Texas and has a total population of 36,090. There are 12,719
households, which have a median household income of $80,291. The area has a civilian labor force of

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18,958 with 2.5% unemployment. Of the population, there are 24,531 individuals over 25 years of age and
30.9% has a bachelor’s degree and 12.6% have a graduate or professional degree. Table 3 shows the
distribution of household income in zip code 75071.

Table 3

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 308 2.40%
$10,000 to $14,999 218 1.70%
$15,000 to $24,999 425 3.30%
$25,000 to $34,999 924 7.30%
$35,000 to $49,999 1,429 11.20%
$50,000 to $74,999 2,429 19.10%
$75,000 to $99,999 2,182 17.20%
$100,000 to $149,999 2,767 21.80%
$150,000 to $199,999 1,087 8.50%
$200,000 and above 950 7.50%

PLANO, TEXAS

The city of Plano maintains a population of 259,841 with a median household income of $82,484 which is
considerably higher than the median household income of the state of Texas at just $51,900. Of the
population, 64.0% are homeowners equating to 175,621 homeowners in Plano. There are 69,464 family
households with 28,748 of those being married couples with children. The city’s population aged 25 and
older is 178,220 with 34.0% of those holding a bachelor’s degree and 20.2% holding a graduate or
professional degree. Plano has a civilian labor force of 147,755with just 4.3% unemployment. 224,665
Plano residents have health insurance coverage equating to 84.5% of the population.

ZIP CODE: 75093
Zip Code 75093 is located in West Plano and has a total population of 47,187. There are 20,117 households
which have a median household income of $99,225. The area has a civilian labor force of 26,109 with just
4.4% unemployment. 39.9% of the population over 25 years of age has a bachelor’s degree and 24.9% have
a graduate or professional degree. Table 4 shows the distribution of household income in zip code 75093.

Table 4

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 554 2.9%
$10,000 to $14,999 345 1.8%
$15,000 to $24,999 686 3.6%
$25,000 to $34,999 1,564 8.2%
$35,000 to $49,999 1,392 7.3%
$50,000 to $74,999 2,961 15.6%
$75,000 to $99,999 2,069 10.9%
$100,000 to $149,999 3,260 17.2%
$150,000 to $199,999 1,967 10.4%
$200,000 and above 4,186 22.1%

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ZIP CODE: 75024
Zip Code 75024 is located in Northwest Plano and has a total population of 36,039. There are 17,144
households which have a median household income of $88,707. The area has a civilian labor force of
22,382 with just 4.0% unemployment. The population over 25 years of age is 24,531 and 30.9% has a
bachelor’s degree and 12.6% have a graduate or professional degree. Table 5 shows the distribution of
household income in zip code 75024.

Table 5

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 516 3.3%
$10,000 to $14,999 284 1.8%
$15,000 to $24,999 620 3.9%
$25,000 to $34,999 894 5.6%
$35,000 to $49,999 1,777 11.2%
$50,000 to $74,999 2,335 14.7%
$75,000 to $99,999 2,326 14.7%
$100,000 to $149,999 3,361 21.2%
$150,000 to $199,999 1,747 11.0%
$200,000 and above 2,002 12.6%

ZIP CODE: 75025
Zip Code 75025 is located in North Plano and has a total population 50,926. There are 19,151 total
households which have a median household income of $104,168. The area has a civilian labor force of
28,718 with 4.2% unemployment. There are 24,531 people over 25 years of age and 30.9% have a
bachelor’s degree and 12.6% have a graduate or professional degree. Table 6 shows the distribution of
household income in zip code 75025.

Table 6

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 578 3.1%
$10,000 to $14,999 225 1.2%
$15,000 to $24,999 771 4.2%
$25,000 to $34,999 678 3.7%
$35,000 to $49,999 1,204 6.5%
$50,000 to $74,999 2,855 15.4%
$75,000 to $99,999 2,441 13.2%
$100,000 to $149,999 4,342 23.5%
$150,000 to $199,999 2,859 15.4%
$200,000 and above 2,558 13.8%

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SOUTHLAKE, TEXAS

The city of Southlake maintains a population of 26,575 with a median household income of $172,951 which
is much higher than the median household income of the state of Texas at just $51,900. 93.9% of the
population are homeowners equating to 24,954 homeowners in Southlake. There are 7,467 family
households with 4,478 of those being married couples with children. The city’s population aged 25 and
older is 16,808 with 42.9% of those holding a bachelor’s degree and 24.8% holding a graduate or
professional degree. Southlake has a civilian labor force of 12,501 with just 3.3% unemployment. 26,009
Southlake residents have health insurance coverage equating to 96.3% of the population.

ZIP CODE: 76092
Zip Code 76092 is located in Southlake, Texas and has a total population of 26,669. There are 8,686 total
households which have a median household income of $173,507. The area has a civilian labor force of
12,620 with just 3.3% unemployment. 30.9% of the population over 25 years of age has a bachelor’s degree
and 12.6% have a graduate or professional degree. Table 7 shows the distribution of household income in
zip code 76092.

Table 7

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 211 2.5%
$10,000 to $14,999 180 2.1%
$15,000 to $24,999 147 1.7%
$25,000 to $34,999 318 3.7%
$35,000 to $49,999 340 4.0%
$50,000 to $74,999 516 6.1%
$75,000 to $99,999 530 6.2%
$100,000 to $149,999 1,403 16.5%
$150,000 to $199,999 1,228 14.4%
$200,000 and above 3,644 42.8%

FLOWER MOUND, TEXAS

The city of Flower Mound maintains a population of 64,669 with a median household income of $120,885
which is much higher than the median household income of the state of Texas at just $51,900. There are
21,011 households in total and 18,083 are family households with 15,808 of those being married couples.
The city’s population aged 25 and older is 40,842 with 46.9% of those holding a bachelor’s degree and
11.1% holding a graduate or professional degree. Flower Mound has a civilian labor force of 36,027. 62,007
Flower Mound residents have health insurance coverage equating to 93.4% of the population.

ZIP CODE: 75022
Zip Code 75022 is located in Flower Mound, Texas and has a total population of 22,545. There are 7,171
total households which have a median household income of $145,938. The area has a civilian labor force of
11,274 with just 2.0% unemployment. 43.5% of the population aged 25 years and older holds a bachelor’s

Proprietary & Confidential Page | 14

degree and 20.8% have a graduate or professional degree. Table 8 shows the distribution of household
income in zip code 75022.

Table 8

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 61 0.9%
$10,000 to $14,999 31 0.4%
$15,000 to $24,999 190 2.7%
$25,000 to $34,999 184 2.6%
$35,000 to $49,999 201 2.9%
$50,000 to $74,999 615 8.7%
$75,000 to $99,999 616 8.8%
$100,000 to $149,999 24.5%
$150,000 to $199,999 1,722 21.3%
$200,000 and above 1,497 27.3%
1,917

Flower Mound, Texas has only one competitor, Acute Kids Urgent Care on Cross Timbers Rd.

COLLEYVILLE, TEXAS

The city of Colleyville maintains a population of 22,807 with a median household income of $153,021
which is much higher than the median household income of the state of Texas at just $51,900. There are
8,395 households with 7,001 of those being married couples. The city’s population aged 25 and older is
15,743 with 40.1% of those holding a bachelor’s degree and 24.1% holding a graduate or professional
degree. Colleyville has a civilian labor force of 12,713 with just 3.4% unemployment. 22,485 Colleyville
residents have health insurance coverage equating to 95.8% of the population.

ZIP CODE: 76034
Zip Code 76034 is located in Colleyville, Texas and has a total population of 22,545. There are 7,171 total
households which have a median household income of $145,938. The area has a civilian labor force of
11,274 with just 2.0% unemployment. 33.9% of the population aged 25 years and older holds a bachelor’s
degree and 21.2% have a graduate or professional degree. Table 9 shows the distribution of household
income in zip code 76034.

Table 9

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 37 0.5%
$10,000 to $14,999 48 0.6%
$15,000 to $24,999 128 1.6%
$25,000 to $34,999 137 1.7%
$35,000 to $49,999 600 7.4%
$50,000 to $74,999 751 9.2%
$75,000 to $99,999 648 8.0%
$100,000 to $149,999 19.8%
1,607

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$150,000 to $199,999 1,245 15.3%
$200,000 and above 2,923 36.0%

Colleyville, Texas has two competitors, PremiER Urgent Care and Urgent Care for Kids, both on Colleyville
Boulevard.

ROYSE CITY, TEXAS

The city of Royse City maintains a population of 9,349 with a median household income of $65,213 which is
higher than the median household income of the state of Texas at just $51,900. There are 3,161 households
with 62.9% of those being married couples. The city’s population aged 25 and older is 5,136 with 14.2% of
those holding a bachelor’s degree and 7.1% holding a graduate or professional degree. Royse City has a
civilian labor force of 4,600 with a 6.8% unemployment. 8,175 Royse City residents have health insurance
coverage equating to 86.2% of the population.

ZIP CODE: 75189
Zip Code 75189 is located in Royse City, Texas and has a total population of 22,406. There are 7,595 total
households which have a median household income of $73,146. The area has a civilian labor force of
11,136 with a 5.8% unemployment rate. 15.0% of the population aged 25 years and older holds a
bachelor’s degree and 6.1% have a graduate or professional degree. Table 9 shows the distribution of
household income in zip code 75189.

Table 10

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 381 5.3%
$10,000 to $14,999 334 4.7%
$15,000 to $24,999 465 6.5%
$25,000 to $34,999 441 6.2%
$35,000 to $49,999 778 10.9%
$50,000 to $74,999 1,261 17.6%
$75,000 to $99,999 1,466 20.5%
$100,000 to $149,999 1,395 19.5%
$150,000 to $199,999 445 6.2%
$200,000 and above 179 2.5%

PRINCETON, TEXAS

Princeton, Texas maintains a population of 6,807 with a median household income of $45,880 which is
lower than the median household income of the state of Texas at $51,900. There are 2,963 households with
73.0% of those being married couples. The city’s population aged 25 and older is 4,767 with 16.9% of those
holding a bachelor’s degree and 5.1% holding a graduate or professional degree. Princeton City has a
civilian labor force of 3,412 with a 4.2% unemployment rate. 4,910 Princeton residents have health
insurance coverage equating to 68.3% of the population.

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ZIP CODE: 75407
Zip Code 75407 is located in Princeton, Texas and has a total population of 14,120. There are 5,704 total
households which have a median household income of $52,330. The area has a civilian labor force of 7,575
with a 4.5% unemployment rate. 13.3.0% of the population aged 25 years and older holds a bachelor’s
degree and 4.5% have a graduate or professional degree. Table 11 shows the distribution of household
income in zip code 75407.

Table 11

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 341 6.5%
$10,000 to $14,999 292 5.6%
$15,000 to $24,999 420 8.0%
$25,000 to $34,999 575 11.0%
$35,000 to $49,999 870 16.6%
$50,000 to $74,999 981 18.7%
$75,000 to $99,999 788 15.0%
$100,000 to $149,999 653 12.5%
$150,000 to $199,999 234 4.5%
$200,000 and above 88 1.7%

MT PLEASANT, TEXAS

The city of Mt Pleasant maintains a population of 15,564with a median household income of $37,197 which
is lower than the median household income of the state of Texas at just $51,900. There are 5,309
households with 73.5% of those being married couples. The city’s population aged 25 and older is 8,893
with 7.4% of those holding a bachelor’s degree and 4.5% holding a graduate or professional degree. Mt
Pleasant has a civilian labor force of 7,189 with 4.9% unemployment. 11,233 Mt Pleasant residents have
health insurance coverage equating to 71.8% of the population.

ZIP CODE: 75455
Zip Code 75455 is located in Mt Pleasant, Texas and has a total population of 28,293. There are 10,340 total
households which have a median household income of $43,701. The area has a civilian labor force of
13,086 with a 4.6% unemployment rate. 8.3% of the population aged 25 years and older holds a bachelor’s
degree and 6.2% have a graduate or professional degree. Table 12 shows the distribution of household
income in zip code 75455.

Table 12

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 695 7.4%
$10,000 to $14,999 402 4.3%
$15,000 to $24,999 1,317 14.1%
$25,000 to $34,999 1,354 14.5%
$35,000 to $49,999 1,476 15.8%

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$50,000 to $74,999 1,732 18.5%
$75,000 to $99,999 1,112 11.9%
$100,000 to $149,999 804 8.6%
$150,000 to $199,999 282 3.0%
$200,000 and above 176 1.9%

FORNEY, TEXAS

The city of Forney maintains a population of 14,661 with a median household income of $77,121 which is
higher than the median household income of the state of Texas at just $61,900. There are 5,253 households
with 66.7% of those being married couples. The city’s population aged 25 and older is 9,204 with 17.8% of
those holding a bachelor’s degree and 9.2% holding a graduate or professional degree. Forney City has a
civilian labor force of 8,367 with a 6.9% unemployment rate. 12,827 Forney residents have health
insurance coverage equating to 83.8% of the population.

ZIP CODE: 75126
Zip Code 75126 is located in Forney, Texas and has a total population of 33,396. There are 11,336 total
households which have a median household income of $85,677. The area has a civilian labor force of
18,579 with a 4.8% unemployment rate. 18.7% of the population aged 25 years and older holds a
bachelor’s degree and 7.9% have a graduate or professional degree. Table 13 shows the distribution of
household income in zip code 75126.

Table 13

HOUSEHOLD INCOME HOUSEHOLDS PERCENT DISTRIBUTION
Less than $10,000 229 2.1%
$10,000 to $14,999 163 1.5%
$15,000 to $24,999 337 3.1%
$25,000 to $34,999 445 4.2%
$35,000 to $49,999 1,216 11.3%
$50,000 to $74,999 2,316 21.6%
$75,000 to $99,999 1,782 16.6%
$100,000 to $149,999 2,999 28.0%
$150,000 to $199,999 715 6.7%
$200,000 and above 516 4.8%

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COMPETITIVE ANALYSIS

COMPETITIVE LANDSCAPE

Newco competes with other urgent care centers in their targeted locations. The company also faces indirect
competition from operators that exist as freestanding emergency room systems.

DIRECT COMPETITORS

CONCENTRA URGENT CARE

As a subsidiary of Humana, Concentra provides occupational medicine, urgent
care, physical therapy and wellness services from more than 320 medical
centers in 40 states. The company’s urgent care services offer posted pricing and extended hours at many
centers. The company has forty six locations in Texas, with three locations in Plano and one location in
Frisco, Texas. Concentra was purchased by Humana in 2010 for approximately $790 million; annual
revenues for all of Concentra’s services are estimated at $800 million.

PRIMACARE MEDICAL CENTER

PrimaCare which has been operating in the Dallas-Fort Worth area for over
thirty years consists of 11 PrimaCare Medical Centers offering a variety of
primary care, urgent care and occupational medicine. The physicians working
at PrimaCare Medical Centers are employed by PrimaMed Physicians
Association. The centers are staffed with a Center Medical Director, and Associate Medical Director, and a
Center Manager. All of the company’s 11 medical centers are open 7 days a week from 8 AM to 9 PM
Monday through Friday and from 8 AM to 5 PM on Saturday and Sunday. They are also open on all holidays
except for Thanksgiving and Christmas. The company has one urgent care center location in McKinney and
two urgent care center locations in Plano, Texas. PrimaMed Physicians Association has estimated annual
revenue of $15.2 million.

CARENOW

Established in 1993, CareNow provides family care, urgent care, occupational
medicine, travel medicine and medical certification to the Dallas-Fort Worth
area. The company has 23 locations throughout Dallas-Fort Worth with one
urgent care center in McKinney, two in Plano and two in Frisco, Texas. Clinics are open seven days a week
from 8 AM to 10 PM weekdays and 8 AM to 8 PM on Saturday and 9 AM to 5 PM on Sunday. The company
has an estimated $9.4 million in annual revenue.

CITYDOC URGENT CARE

CityDoc Urgent Care has three locations in Dallas and one location in
Mansfield, Texas. City Doc offers complete on-site X-ray and a full range of
available laboratory services including complete blood counts, chemistries,
cholesterol screening and other screening and testing services. The

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company’s centers are open seven days a week from 8:00am to 8:00pm, Monday through Saturday and
10:00am to 5:00pm on Sunday.

MEDPOST

MedPost serves adults and pediatrics, and has thirteen locations
in Texas- one in Dallas, three in San Antonio, one in
Nacogdoches, another in McKinney, three in El Paso, two in
Rockwall, one in Brownsville, and one in Rowlett. All locations
are open Monday-Friday from 8:00am to 8:00pm, and Saturday
& Sunday from 9:00am to 5:00pm, with the exception of the three El Paso locations, which operate from
9:00am to 10:00pm on the weekdays. MedPost also has locations all over the U.S. for a total of 44 locations,
in which 23 centers were invested into by Tenet Healthcare5 which is a Dallas based company.

MEDSPRING

MedSpring is located in Austin (9 locations), Chicago (6 locations),
Dallas-Fort Worth (4 locations), Houston (5 locations) and San
Marcos (1 location). Included in the Dallas-Fort Worth area count are
two locations in Keller, TX and Las Colinas, TX opening in the Summer
of 2015. All locations are open from 9:00am to 9:00pm daily. MedSpring Urgent Care services and
treatments include injuries, illnesses, vaccinations, x-rays, lab tests, splinting, stitches, drug tests, PPD/TB
skin tests, and more. In addition to urgent care services, MedSpring also offers occupational health services
and primary care for patient convenience.

OPTUM CLINIC + URGENT CARE

Optum Clinic has seven locations in Texas including one in Dallas-Plano,
and six in Houston: Houston-Baybrook Village, Houston-Copperfield,
Houston-Energy Corridor, Houston-Greenway, and Houston-Katy. Hours
of operation are from 7:30am to 8:00pm Monday through Friday, and
9:00am to 5:00pm Saturday to Sunday.

NR URGENT CARE

NR Urgent Care has one location in Plano, near the federal courthouse and offers services to the
communities around Plano, Frisco, Allen, North Dallas, Richardson, McKinney, Carrolton and the Colony.
NR Urgent Care is open seven days a week from 9:00am to 8:00pm on weekdays and 10:00am to 5:00pm
on the weekends. They are a part of the Texas Medical Association Collin County Medical Society and have
been in business for the last five years. Areas of service include illnesses, injuries and other medical needs.

5 The Motley Fool, 2014 Page | 20

Proprietary & Confidential

INDIRECT COMPETITORS

FIRST CHOICE EMERGENCY ROOM

First Choice Emergency Room facilities are freestanding and fully equipped
with diagnostic technology (CT scanners, Ultrasound, Digital X-Ray) and on-
site labs. All locations are staffed with board-certified emergency physicians
and emergency trained registered nurses. The company has locations in
Houston, Dallas-Fort Worth, Austin and Colorado Springs. In Dallas-Fort
Worth the company has one location in Plano and one location in Murphy, Texas.

COMPETITIVE ADVANTAGES

In addition to servicing its walk-in patients each Newco center can provide patients with online
appointment scheduling as well as free access to its online registration system that utilizes electronic
medical records to save time prior to arriving at the clinic. Newco only employ the highest quality of
individuals to ensure excellent service and medical attention. As a community based urgent care the
Company knows the importance of providing local families with quality and trusted care.

Each local urgent care implemented by Newco will be a community based business with local providers
and employees. Every urgent care will be involved in local community events as much as possible and
utilize local advertising to promote each facility. Essentially each location will be able to function
independently and mold to each individual community’s needs and expectations. Each location will carry
the local city/community name (i.e. Murphy Urgent Care) to the extent available, thus allowing residents to
identify each urgent care business as a local entity. This will encourage a community sense of pride and
loyalty toward each local center. A sense of community ownership and support will help give us a
competitive advantage over a more regionalized or franchised competitor.

Although each urgent care facility will essentially function as an independent business, there will be
centralized leadership, management and billing services provided by Newco. Consolidation of supply,
medication and medical equipment orders will also be done. Each facility will have cross-trained
individuals that can work at other locations should the need arise. The centralization of management,
essential services and cross training of employees creates a more streamlined, efficient, and cost effective
business.

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MARKETING PLAN

POSITIONING AND PROMOTIONS

Historically, health care decisions in suburban married families are made by women. Newco will position
its services to these women of the household as convenient, safe and cost-effective. The goal of the
company’s marketing efforts is to increase foot traffic to the location and build brand awareness of the
company’s initial locations by promoting a locally owned and operated community based company.

MARKETING CHANNELS AND TACTICS

DIRECT MAIL & E-MAIL
The company will build upon its existing database of patients to make those aware of the new XX Urgent
Care Center location via e-mail. In addition, the company will initiate a direct mail campaign to those in the
surrounding community of XX Urgent Care Center’s first location.

COMMUNITY EVENTS
In order to make families aware of Newco Urgent Care, especially mothers, the company will look to
sponsor local community events and organizations. This will provide the Company with visibility among
the community in addition to fostering positive word of mouth from residents.

MARKETING SOLICITOR
Newco is looking to use the services of a marketing solicitor that will contact doctors and businesses within
the area in order to refer business to the center. In the past Dr. XX has utilized a marketing solicitor with
great success at his first urgent care center, XX.

SOCIAL MEDIA
As another means to communicate with patients, Newco will utilize the low cost method of creating a
Facebook account to increase its online presence. Additionally, the company will look to purchase location
based advertisements through Facebook.

ONLINE ADVERTISING
Newco will create a company website in order for patients to find the company’s locations and learn about
the care provided. Additionally, Newco will list itself on the following directory websites:

 Yelp.com
 Yellowpages.com
 Local.Yahoo.com

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OPERATIONS PLAN

OPERATIONAL STRUCTURE

Newco Limited Liability Company is wholly owned by its founders Dr. XX, Dr. XX, Dr. XX, and Dr. XX. Newco
will serve as the overall managing entity of each urgent care center. Under this structure, Newco has a
unique opportunity for a non-physician, third-party investor to be a part of the Company.

XX Urgent Care will own each urgent care center and will be owned by physicians and physician’s assistant
investors. XX Urgent Care Center will partner with Newco LLC to reduce overhead in the long run, as
resources will be distributed amongst all locations.

NEWCO LLC

Dr. XX Dr. XX Dr. XX Dr.XX
(CFO/COO) (Secretary) (Vice President) (Treasurer)

XX Care Centers

Location 1: Location 2: Location 3: Location 4: Location 5: Location 6: Location 7: Location 8:
XX XX TBD TBD TBD TBD TBD TBD

KEY OPERATIONAL MILESTONES • Sustain Location 2
• Secure $2.5 million in capital (June 2015)
2015 • Open Location 3 (Dec 2015)

2016 • Secure $2.9 million in capital (March 2016)
• Open Location 4

2017 • Open Location 5
2018 • Location 2 generating positive net income
2019
• Secure $2.5 million in capital for Locations 6-7 (October 2018)
• Open Location 6
• Location 3 generating positive net income

• Open Location 7
• Location 4 generating positive net income

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FINANCIAL PLAN

CAPITAL REQUIREMENT

In order to launch and operate the company’s seven urgent care center locations, Newco will require three
rounds of funding. Series A will require $2,426,578 allocated towards paying off debt for Location 2 (Plano
Urgent Care) and the launch of the third location, which includes the office buildout, purchasing medical
equipment, office equipment, furniture and 12 months operating expenses.

The second investment round, Series B, is anticipated to be $2,865,000 and will be allocated towards the
launch and operation of Locations 4 and 5. In order to sustain cash flows, this injection of capital will need
to be implemented by March of 2016.

The last investment round, Series C, requires $2,548,614 in capital to be allocated towards Locations 6 and
7. This last round of fundraising is anticipated to be secured by October 2018.

Figure 3 shows the company fund requirements from year one to year five.

Figure 3

FY1 FY2 FY3 FY4 FY5

CAPITAL EXPENDITURES $250,000 $500,000 $0 $500,000 $0
Office Buildout $360,000 $360,000 $0 $360,000 $0
Medical Equipment $0 $60,000 $0
Office Equipment $30,000 $60,000 $0 $80,000 $0
Furniture $40,000 $80,000 $0 $1,000,000 $0
$680,000 $1,000,000
TOTAL CAPEX
$985,000 $0 $0 $0 $0
Other Assets $985,000 $0 $0 $0 $0
Debt- Loan at Benchmark Bank
$486,500 $973,000 $0 $845,000 $0
TOTAL OTHER ASSETS $275,078 $892,040 $0 $703,614 $0
$761,578 $1,865,040 $0 $1,548,614 $0
Working Capital $2,426,578 $2,865,040 $0 $2,548,614 $0
12 Months Salary
12 Months Operating Expense $680,000 $1,680,000 $1,680,000 $2,680,000 $2,680,000
$51,000 $219,000 $387,000 $923,000 $923,000
TOTAL OPEX
TOTAL INITIAL FUNDING $629,000 $1,461,000 $1,293,000 $1,757,000 $1,757,000

TOTAL ASSETS $51,000 $168,000 $168,000 $268,000 $268,000
Gross assets
Less : Accumulated Depreciation

Closing Balance

Total Depreciation

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REVENUE ASSUMPTIONS

Newco’s revenue is dependent upon the number of patients the center is able to service. The average
patient visit is estimated at an average of $275 which is based upon historical figures from XX Urgent Care.
Of this revenue the company estimates it will collect 50% of average patient charge, 35% from insurance
and 15% from the patient. This is also based upon historical figures from XX Urgent Care and XX Urgent
Care Center. The company assumes its first location will see 300 patients in its first month of operation
before growing to 550-620 patients in month twelve. Based on Dr. XX experience with XX Urgent Care
Center, a fully operational Newco will see an average of 1,250 patients in a given month. The Company’s
additional locations are projected to reach this level 25 to 30 months after opening. Figure 4 shows the
company’s projected revenue in year one.

Figure 4

Average Clinic Patients M1 % from Insurance % from Patient Patients M12
Visit 300 35% 15% 550-620

$275

NEWCO REVENUE/DIRECT COSTS

The Company’s direct cost is the management fee paid to XX. Management fees are 10% of revenue or
$10,000 if revenue is under $100,000. The chart below shows the increase in revenue from the direct cost
charged to XX Urgent Care Centers.

$1,200,000
$1,000,000

$800,000
$600,000
$400,000
$200,000

$0

Year 1 Year 2 Year 3 Year 4 Year 5

OPERATING EXPENDITURES
Figure 8 shows the breakdown of all operating expenditures from year one to year five for Locations 1-7.

Figure 5

Advertising Year 1 Year 2 Year 3 Year 4 Year 5
Bank Charges $75,153 $111,294 $147,436 $183,577 $225,706
Professional Services $33,130 $59,810 $93,524 $125,420 $156,030
Laundry and Uniforms $25,000 $37,440 $49,087 $49,703 $50,327
$1,771 $2,623 $3,475 $4,327 $5,321

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Dues, Subs and Licenses $10,217 $15,217 $20,217 $25,217 $31,051
Meals $1,198 $1,788 $2,351 $2,920 $3,632
Interest Expense $35,600 $35,956 $36,316 $36,679 $37,048
Insurance $18,200 $35,000 $68,600 $85,400 $105,000
EMR $50,350 $76,490 $107,859 $150,174 $208,311
Repairs and Maintenance $6,250 $9,310 $12,401 $15,522 $19,175
Refunds $2,888 $4,152 $8,089 $11,263 $15,623
Billing Services $201,401 $305,962 $431,436 $600,697 $833,243
Office Expense $54,000 $54,405 $55,939 $69,999 $86,568
Rent and Leases $486,524 $592,524 $602,524 $722,524 $862,524
Medical Supplies $125,875 $191,226 $269,648 $375,436 $520,777
Taxes- Other $37,000 $48,480 $49,844 $62,331 $76,943
Total $1,164,557 $1,581,718 $1,958,745 $2,521,188 $3,237,277

HEADCOUNT EXPENSE
In year one (2015) the company expects to employ 37 individuals at XX Urgent Care, XX Urgent Care and
Location 3 for a total personnel expense of $1,408,998. By year five the company plans to employ 70
individuals across its seven locations for a total personnel expense of $3,772,848. The Company’s
personnel expense from year one to year five is displayed in the chart below.

FY1 FY2 FY3 FY4 FY5

Headcount 2 3 4 5 6
Management 2 3 4 5 6
Practice Director/Manager 1 1 1 1 1
Nurse/Clinic Manager $274,374 $360,876 $372,864 $696,212 $741,327
Chief Operating Officer
Salary 2 3 4 5 6
2 3 3 4 4
Support 5 5 5 8 8
Physician Assistant FTE 7 8 8 11 12
Physician Assistant PTE 5 5 5 8 8
Nurse Practitioner PTE 5 5 5 8 8
Registered Nurse PTE 2 3 3 4 4
MA - X-ray Tech FTE 5 5 5 8 8
MA - X-ray Tech PTE $1,134,624 $1,588,476 $1,612,308 $2,782,071 $3,031,521
Technician/Paramedic PTE
Front Office PTE 37 41 46 66 70
Salary $1,408,998 $1,949,352 $1,985,172 $3,478,283 $3,772,848

Total Headcount

Total Salary

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SUMMARY FINANCIAL PROJECTIONS

The company is projected to generate total revenues of $2,517,508 at a net loss of $413,297 in year one. By
year five the company anticipates growth of annual revenue of $10,415,540 with a net income of
$1,428,439. Figure 10 shows the company’s growth from year one to year five.

Figure 6

For the Year Ending
FY1 FY2 FY3 FY4 FY5

Total Revenues $2,517,508 $3,824,520 $5,392,955 $7,292,289 $10,415,540

Total Direct Cost ($306,250) ($458,942) ($605,478) ($806,034) ($1,096,788)
Gross profit $2,211,258 $3,365,578 $4,787,477 $6,486,255 $9,318,752
Gross Profit Margin (%) 89%
Total Other Expenses 88% 88% 89% 89%
EBITDA ($2,573,555) ($3,531,070) ($3,943,917) ($5,999,471) ($7,010,125)
Depreciation $2,308,627
Amortization & Impairment ($362,297) ($165,492) $843,560 $486,784 ($268,000)
EBIT ($51,000) ($168,000) ($168,000) ($268,000) $0
Interest Expense-Debt $0 $2,040,627
Interest Expense-Leased Assets $0 $0 $0 $0
Interest Income ($413,297) ($333,492) $675,560 $218,784 $0
Other Income (Expenses) $0 $0
Pretax Income $0 $0 $0 $0 $0
$0 $0 $0 $0 $2,040,627
Income Tax Expense $0 $0 $0 $0
$0 $0 $0 ($612,188)
Net Income ($413,297) ($333,492) $675,560 $218,784
Net profit (%) $1,428,439
$0 $0 $0 ($44,267) 14%

($413,297) ($333,492) $675,560 $174,518
-16% -9% 13% 2%

EBITDA, Net Income, and Net Profit (%)

$12,000,000 FY1 FY2 FY3 FY4 FY5 20%
$10,000,000 $2,517,508 $3,824,520 $5,392,955 $7,292,289 $10,415,540 15%
$8,000,000 $2,211,258 $3,365,578 $4,787,477 $6,486,255 $9,318,752 10%
$6,000,000 ($362,297) ($165,492) $843,560 $486,784 $2,308,627 5%
$4,000,000 ($413,297) ($333,492) $675,560 $174,518 $1,428,439 0%
$2,000,000 -5%
-16% -9% 13% 2% 14% -10%
$0 -15%
($2,000,000) -20%

Total Revenues
Gross profit
EBITDA
Net Income
Net profit (%)

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APPENDIX For the Year Ending
FY1 FY2 FY3 FY4 FY5
INCOME STATEMENT
$1,761,375 $2,669,220 $3,787,907 $5,256,098 $7,290,878
Revenues $756,133 $1,155,299 $1,605,049 $2,036,191 $3,124,662
Insurance Revenue $3,824,520 $5,392,955 $7,292,289 $10,415,540
Patient Revenue $2,517,508
$458,942 $605,478 $806,034 $1,096,788
Net Sales $306,250 $(458,942) $(605,478) $(806,034) $(1,096,788)
Direct Cost $(306,250) $3,365,578 $4,787,477 $6,486,255
$2,211,258 $9,318,752
Direct Cost 88% 89% 89% 89%
Cost of Goods Sold 86%
GROSS PROFIT
$(1,164,557) $(1,581,718) $(1,958,745) $(2,521,188) $(3,237,277)
Gross margin (%) $(1,408,998) $(1,949,352) $(1,985,172) $(3,478,283) $(3,772,848)
$(3,943,917) $(5,999,471) $(7,010,125)
Operating Expenses $(2,573,555) $(3,531,070)
Total Non-Personnel General & Administrative $(362,297) $(165,492) $843,560 $486,784 $2,308,627
Total Personnel Expenses -14% -4% 16% 7% 22%
($51,000) ($168,000)
Total Operating Expenses $0 $0 ($168,000) ($268,000) ($268,000)
EBITDA
EBITDA % ($413,297) ($333,492) $675,560 $218,784 $2,040,627

Depreciation ($413,297) ($333,492) $675,560 $218,784 $2,040,627
Amortization & Impairment ($413,297) ($746,789) ($746,789) ($71,229) $0
EBIT $0
EBIT% $0 $0 $675,560 $71,229
Pretax Income $0 $0 $0 $147,555 $2,040,627
Cumulative Net Operating Loss $0 ($44,267) ($612,188)
Adjusted against Loss $0 $0 $174,518 $1,428,439
Taxable Income ($413,297) ($333,492) $675,560
Income Tax Expense 13% 2% 14%
NET INCOME -16% -9%
Net Profit Margin (%)

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BALANCE SHEET For the Year Ending FY5
FY1 FY2 FY3 FY4
ASSETS
Cash 1,543,263 3,234,710 4,063,455 6,170,175 7,846,757
Accounts Receivable 85,759 128,163 180,547 202,564 289,321
Prepaid Expenses 5,146 7,690 10,833 12,154 17,359
Inventory 55,781 71,124 93,192 100,754 137,098
Other Current Assets 5,146 7,690 10,833 12,154 17,359

Total Current Assets 1,695,094 3,449,376 4,358,859 6,497,801 8,307,895

Property & Equipment 680,000 1,680,000 1,680,000 2,680,000 2,680,000
Property & Equipment 0 0 0 0 0
Leased Asset
Accumulated Depreciation (51,000) (219,000) (387,000) (655,000) (923,000)
629,000 1,461,000 1,293,000 2,025,000 1,757,000
Property & Equipment, net
Intangible & Other Assets 0 0 0 0 0
0 0 0 0 0
Assets (IP) 0 0 0 0 0
Intangible & Other Assets 2,324,094 4,910,376 5,651,859 8,522,801 10,064,895
Amortization & Impairment
TOTAL ASSETS 37,188 47,416 62,128 67,170 91,399
268,479 310,441 358,509 499,956 584,177
LIABILITIES & EQUITY
Accounts Payable 5,146 7,690 10,833 12,154 17,359
Accrued Expenses & Payroll Taxes Payable 0 0 0 0 0
Other Current Liabilities
Current Portion of Long Term Debt 310,813 365,547 431,470 579,280 692,935
0 0 0 0 0
Total Current Liabilities 0 0 0 0 0
Long-Term Debt, net of Current
Due to Related Parties 310,813 365,547 431,470 579,280 692,935

Total Liabilities 2,426,578 5,291,618 5,291,618 7,840,232 7,840,232
Shareholder's Equity (413,297) (746,789) (71,229) 103,289 1,531,728
2,013,281 4,544,829 9,371,960
Paid in Capital 5,220,389 7,943,521
Retained earnings 2,324,094 4,910,376 10,064,895
Total Equity 5,651,859 8,522,801

TOTAL LIABILITIES & EQUITY

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CASH FLOW For the Year Ending
FY1 FY2 FY3 FY4 FY5
CASH FLOW FROM OPERATIONS
Net Income (Loss) ($413,297) ($333,492) $675,560 $174,518 $1,428,439
Plus Depreciation $51,000 $168,000 $168,000 $268,000 $268,000
Plus Amortization & Impairment $0 $0 $0
Changes in Working Capital $0 $0
Changes in A/R ($85,759) ($42,404) ($86,757)
Changes in Prepaid Expenses ($5,146) ($2,544) ($52,384) ($22,017) ($5,205)
Changes in Inventory ($3,143) ($1,321)
Changes in Other Current Assets ($55,781) ($15,343) ($7,563) ($36,344)
Changes in A/P ($5,146) ($2,544) ($22,068) ($1,321) ($5,205)
Changes in Accrued Expenses $37,188 $10,228 ($3,143) $5,042 $24,229
Changes in Other Current Liabilities $268,479 $41,962 $14,712 $141,447 $84,221
Net Change in Working Capital $5,146 $2,544 $48,068 $1,321 $5,205
Net Cash Flow from Operations $3,143
$158,981 ($8,101) $115,588 ($19,857)
CASH FLOW FROM INVESTMENTS ($14,815)
Purchase of Assets (IP) ($203,315) ($173,593) $558,106 $1,676,582
Purchase of Intangibles & Other Assets $828,745
Fixed Assets
Net Cash Flow from Investments $0 $0 $0 $0 $0
$0 $0 $0 $0 $0
CASH FLOW FROM FINANCING ($680,000) ($1,000,000) $0 ($1,000,000) $0
Paid in Capital
Debt ($680,000) ($1,000,000) $0 ($1,000,000) $0
Lease Payments
Net Cash Flow from Financing $2,426,578 $2,865,040 $0 $2,548,614 $0
$0 $0 $0 $0 $0
Net Cash Flow $0 $0 $0 $0 $0
Cash at Beginning of Period $0 $0
Cash at End of Period $2,426,578 $2,865,040 $2,548,614
$828,745 $1,676,582
$1,543,263 $1,691,447 $3,234,710 $2,106,720 $6,170,175
$0 $1,543,263 $4,063,455 $4,063,455 $7,846,757
$3,234,710 $6,170,175
$1,543,263

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