YOUR FOOD Isabel Hoffmann Founder and CEO, Tellspec lnc. The Problem: What’s in My Food? 2012 Food & Health Survey, IFICF Sample Size – 1,057 U.S. Adults 52% say it’s harder to figure out how to eat healthly than to do your taxes 48% count calories 76% cut back on: solid fats, added sugars and salt 51% concerned about chemicals in food 25% concerned about unlabeled allergens in food 47% concerned about pesticides in food 49% try to avoid trans fats Tellspec Confidential/ 2015 The Solution: Predictive Intelligence about Food Tellspec Con?dential 2015 The Solution: Predictive Intelligence about Food Tellspec Inc. is a digital health company that provides predictive intelligence about food, by combining NIR spectroscopy, bioinformatics techniques & deep learning algorithms in a revolutionary technology that analyzes consumer foods at the molecular level Tellspec’s mission is to help create a clean food revolution by providing consumers with information about what is really in their food beyond the nutrition label Tellspec Confidential/ 2015 The Solution: Digital Health in The Connected Kitchen Tellspec’s food sensor and other food sensors integrated into the connected kitchen feed data to Tellspec’s database Tellspec Confidential/ 2015 The Technology: Mobile Application TELLSPEC’S FOOD SENSOR enables those that who desire weight loss to automatically track their calories and identify food sensitivities by simply scanning their food. TELLSPEC’S FOOD SENSOR also helps diabetic patients to analyze their diet, and in particular count calories and carbohydrates, so they can adjust their insulin doses accordingly. Tellspec app also helps track the total intake of macronutrients and allergens, per day, per week, per month, as well as per quarter and year. Tellspec Confidential/ 2015 The Technology: Predictive Models Tellspec Macro Tellspec Allergen Tellspec Food Safety Detection of: • Carbohydrates • Fats • Proteins • Calories • Glycemic Index • Fiber Presence or Absence of: • Gluten • Dairy • Soya • Peanuts • Egg • Seafood Presence or Absence of: • Contaminants • By-products • Additives Target Market: Target Market: ! For diabetic, pre-diabetic and weight-loss consumers ! For consumers needing to avoid certain allergens Target Market: ! Hospitals ! Public Health Organizations ! General Consumer ! Food industry ! Researchers and Analysts ! For “quantified self” consumers Finalized ! For consumers with autoimmune disorders and/or with diabetes In progress Target: 2017 Tellspec Confidential/ 2015 Technology: Infrastructure Consumers Tellspec Servers 8: Algos Enterprises . . I Third-Party Tellspec Databases Databases Pub Chem End User Analytic Chem Chemical Profile Lab Data Descriptors Nutrition Data Scan Data Ingredients 8. Health ("mammal r- Tellspec Con?dential 2015 SDEUBEWUWBWF Technology: Algorithms are Agnostic to Hardware Product Generations Reference Data Transfer Functions OO"PDA TI#DLP#0.2 Collection of Standardized Reference Spectra Tellspec Confidential/ 2015 The Technology: DLP-based Spectrometer Technical Specifications Pros " Digital Mirroring Device Chipset 0.2” WGA " " NIR 900nm – 1700nm " FWHM optical resolution 8nm, InGaAs Detector " Integrated with Bluetooth LE " Physical Dimension: 65 x 58 x 36 mm (without battery) " Signal-To-Noise Ratio: 2000:1 in 1 s acquisition time Cost: Low since it requires single photo-diode detector " No need for manual calibration process: calibration done at the firmware. " Enabled for economies of scale. The Technology DLP chip or DMD Array of micromirrors Tellspec Confidential/ 2015 The Technology: Food Industry Insights • • Food Manufacturers Food Retailers Tellspec’s data can provide insights for recommendations to: ABOUT • Food Services • Food trends • Individual food preferences • Validation of food analytical methods • Monitoring food quality • Monitoring food safety • Feed-back on ingredient innovation • Tracking growth of specific food sales • Strengthening food brand • Analyzing the potential sales opportunity for a new product • Food Industry Consultants • Forecasting annual sales volume of comparable products Tellspec Confidential/ 2015 The Technology: Tracking Commitment to Health • WHO • Labelling, production information and nutritional claims • Tracking food industry stances on diet, nutrition and health • Engendering better corporate responsibility for diet, physical activity and health • Developing new, or strengthen existing, systems of food governance • Measure actual performance and practice of food companies commitment to health • Broadening public involvement in the auditing of corporate responsibility for diet, physical activity and health (World Health Organization) Tellspec’s data can provide insights for recommendations to: • National Governments • Food industry ABOUT • Investment groups • Civil Society • Researchers, analysts and academics Promoting healthy diets by limiting the levels of free sugars, Salts, trans-fats, pesticides, carcinogens, neuro-toxins Tellspec Confidential/ 2015 The Market: Connecting Food & Wellness (Digital Health) Global diabetes market is expected to reach $44.70 billion in 2015, compound annual growth rate (CAGR) of 7.5%. The WHO projects the world’s diabetic population: 366 million by 2030. The market for food allergy and intolerance is estimated by Global Industry Analysts to be US$26.5bn by 2017. This market has grown at 18.5% over the past decade. Cumulative economic impact of the Internet of Things, according to John Chambers (CISCO), will be $10 Trillion by 2020 “By 2020 there will be 50 Billion devices connected. The big winners will be remote sensors and big data” Prof M. Bachman UCI The biggest areas of innovation in the smart, connected home over the next decade will be the kitchen; a fast-growing market opportunity which will grow from $694M in 2015 to over $10B by 2020 # Sources: 2012 Food & Health Survey, IFICF; J. Clin. Immun. v. 119 (2007) p.1504; U.S. Weight Loss & Diet Control Market (2013), MarketData Enterprises; Medical Expenditure Panel Survey 2013 U.S. Dept. Health.; US Nutraceuticals Market Forecast to 2017, RNCOS. Business Strategy: Connecting Food Data Tellspec Technology 0 (Human: Wthy?] Owe:de Comm Analysis r- Tellspec Con?dential 2015 SDEUBEWUWEWF Business Strategy: Go-to-market Ecosystem Online Awareness " Social Media Strategy • • • • • • " YouTube Google Digital Strategy Facebook Twitter Instagram Heart It Wellness Partnerships • • • • • • • • Weight Control Clinics Wellness Clinics Diabetic Association Allergy Clinics Celiac Association Fitness Organizations Gyms Pharmaceutical Direct Sales to Selected Retailers • • • • • El Corte Ingles Best Buy FNAC Wholefoods Apple Stores Online sales: Tellspec’s site, Amazon, Alibaba Tellspec Confidential/ 2015 The Leadership Team: founder and CEO THE ENTREPRENEURIAL SPIRIT From Zero to :2 Mu ulna companies Irom LO SUCCESSFUL a 8 companies founded ovsn LAST YEARS Raised over a eqmty and warrants HOFFMANN AND CLO, TELLSPEC INC 5 Negotiating GoIdman Sachs, INC Banngs, Mitsubishi. 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II. - The Leadership Team Isabel Hoffmann Founder & CEO Gail Christine Gannon VP Strategy Mark Bloore Senior Software Architect Carolyn Lund Marketing Director Jason Coulls VP Software Development Bahador Khaleghi Director, R&D Software Research Nazanin Samadifard Machine Learning Manager Tellspec is/also/affiliated/with/the$Manchester$University$in/the/UK,/ and/with/the$AZ$TechCelerator in/Arizona./ Advisory Board Dr. Louis Florence Finance Advisor Dr. Pablo Carbonell Chief Science Advisor Dr. Rafael Grossmann Health Advisor Simon Mou Asia Investment Advisor Nathaniel Amsellem European Investment Advisor James Tjan Food Science Advisor Larry R. Wilson North America Investment Advisor Competitors Consumer Physics, SCiO: not a data company but a hardware company • Uses a filter to separate light into its component wavelengths, while Tellspec uses a grating. Typically filters give poorer resolution than gratings • Patent application limited to hardware, with little on algorithms or user interface • No comprehensive spectral food database, plans to use crowd sourced database, therefore not able to detect beyond the label • Not focused on building predictive models for food analysis • Not able to detect allergens or give sugar estimation • Not focus on educating consumers about what they eat • Narrower spectral range where organic bonds have a weaker expression Spectroscopy (BWTek, ThermoScience) • • • • Bulky, awkward, hard to use. For industrial applications. Slow – 2 min or more. Expensive – $20k to $60k. Food Testing Services (B2B) (Foss in Denmark) • B2B testing for Meat, Dairy and Wine industries. • Invasive testing. • 30+ sec. Competitive advantage Several apps target the weight loss industry by offering ways to count calories, some even count macronutrients, but none can detect allergens that a user may react to, because no app can scan, at the molecular level, the actual food. Many medical devices help diabetic people manage their blood sugar ranging from glucose meters to pumps, but none connect this information to the food that the patient eats. • • • • • • U. S. Patent Application 2013/0958909 Hardware agnostic comprehensive food analysis engine Proprietary procedures (secret sauce) for food data collection Extensive proprietary database of NIR food scans Several strategic potential OME partnerships and clinical trials Unique agreement to customize Tellspec’s technology for the Connected Kitchen Tellspec Confidential/ 2015 Traction • $519,710 pre-orders with 2181 units pre-sold • Secured 15,000 sensors in verbal commitments from eager retailers • Selected to be part of the HIVE at TED Med 2015, November 2015 • Participated in mhealth Grand Tour 2015, an event to demonstrate digital solution for diabetic patients organized by Orange Telecom, September, 2015 • Letter of Intent (LOI) signed with Samsung Electronics • Forbes selected Tellspec as one of the 10 top companies revolutionizing entrepreneurship • Request for collaboration in clinical studies from Harvard Center for Clinical Investigation at The Harvard Clinical and Translational Science Center, Brigham and Women's Hospital, Boston • Request from Augusta Akademie, Bochum Germany, for collaboration in clinical studies • TED Global 2014, A presentation by I. Hoffmann on Nutritional Detection • TEDx Zwolle, 2015: Local food and Health, a presentation by I. Hoffmann Tellspec Confidential/ 2015 Use of Funds - Overview Late-stage development and early-stage commercialization: • Deliver series A milestones in 6 to 9 months • Increase team • Finalize the delivery 150 beta food sensors to initial testers • Deliver initial units to earlier adopters • Implement a go to market strategy • Negotiations with large retailers • Final NRE costs • Food testing lab costs • Initial distribution strategies Tellspec Confidential/ 2015 Isabel Hoffmann Founder and CEO isabel@tellspec.com Providing the most relevant and useful information about your food Tellspec Confidential/ 2015