0001751930-18-000001.txt : 20181011
0001751930-18-000001.hdr.sgml : 20181011
20181011112321
ACCESSION NUMBER: 0001751930-18-000001
CONFORMED SUBMISSION TYPE: 1-A
PUBLIC DOCUMENT COUNT: 2
FILED AS OF DATE: 20181011
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Heugenis Inc
CENTRAL INDEX KEY: 0001751930
IRS NUMBER: 824377598
STATE OF INCORPORATION: MI
FILING VALUES:
FORM TYPE: 1-A
SEC ACT: 1933 Act
SEC FILE NUMBER: 024-10907
FILM NUMBER: 181117619
BUSINESS ADDRESS:
STREET 1: 1528 MEADOW LANE
CITY: GRAND HAVEN
STATE: MI
ZIP: 49417
BUSINESS PHONE: 6165027296
MAIL ADDRESS:
STREET 1: 1528 MEADOW LANE
CITY: GRAND HAVEN
STATE: MI
ZIP: 49417
1-A
1
primary_doc.xml
1-A
LIVE
0001751930
XXXXXXXX
true
false
Heugenis Inc
MI
2018
0001751930
5900
82-4377598
1
1
99 Monroe Ave NW; Suite 200
Grand Rapids
MI
49503
6165027296
Kim Lavine
Other
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Artesian CPA LLC
Class C
500000
0
none
Series A Preferred
1250
0
none
0
true
true
false
Tier2
Audited
Equity (common or preferred stock)
Y
N
N
Y
N
N
625000
0
16.0000
0.00
0.00
0.00
0.00
0.00
Sageworks Capital LLC
10000.00
Artesian CPA LLC
3500.00
CrowdCheck Law LLP
5000.00
TBD
121500.00
false
true
AL
AK
AZ
AR
CA
CO
CT
DE
DC
FL
GA
HI
ID
IL
IN
IA
KS
KY
LA
ME
MD
MA
MI
MN
MS
MO
MT
NE
NV
NH
NJ
NM
NY
NC
ND
OH
OK
OR
PA
PR
RI
SC
SD
TN
TX
UT
VT
VA
WA
WV
WI
WY
AL
AK
AZ
AR
CA
CO
CT
DE
DC
FL
GA
HI
ID
IL
IN
IA
KS
KY
LA
ME
MD
MA
MI
MN
MS
MO
MT
NE
NV
NH
NJ
NM
NY
NC
ND
OH
OK
OR
PA
PR
RI
SC
SD
TN
TX
UT
VT
VA
WA
WV
WI
WY
false
Heugenis Inc
Class C Common
500000
0
Sweat Equity
Heugenis Inc
Series A Preferred
1250
0
Sweat Equity
Shares were issued to Founders under Section 4(a)(2) of the Securities Act
PART II AND III
2
heugenisedgar2.txt
PART II
AN OFFERING STATEMENT PURSUANT TO REGULATION A
RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. INFORMATION
CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS
SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES
MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED
BEFORE THE OFFERING STATEMENT FILED WITH THE
COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING
CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY
SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH
OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE
REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH
STATE. WE MAY ELECT TO SATISFY OUR OBLIGATION TO
DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A
NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION
OF OUR SALE TO YOU THAT CONTAINS THE URL WHERE THE
FINAL OFFERING CIRCULAR OR THE OFFERING STATEMENT IN
WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE
OBTAINED.
PRELIMINARY OFFERING CIRCULAR DATED OCTOBER 8, 2018
HEUGENIS INC
Up to 625,000 Shares of Class A Common Stock - Minimum
purchase: 40 Shares ($640.00)
This offering (the ?Offering?) consists of Class A
Common Stock. The Class A Common Stock is being
offered on a ?best efforts? basis, which means that
there is no guarantee that any minimum amount will be
sold. There are 625,000 shares being offered at a
price of $16.00 per share with a minimum purchase of
40 shares per investor. The maximum aggregate amount
of the shares offered is $10,000,000 (the ?Maximum
Offering?). Provided that an investor purchases shares
in the amount of the minimum investment (40 shares),
there is no minimum number of shares that needs to be
sold in order for funds to be released to the Company
and for this Offering to close, which may mean that
the Company does not receive sufficient funds to cover
the cost of this Offering. The Offering will terminate
at the earlier of (1) the date at which the Maximum
Offering amount has been sold, (2) the date that is
twelve months from the date of this Offering Statement
being qualified by the Commission, or (3) the date at
which the Offering is earlier terminated by the
Company in its sole discretion, which may happen at
any time. The Company anticipates that it will hold
its initial closing on some date after the date of
qualification and will hold additional closings at
various times thereafter in the Company?s discretion.
See ?Plan of Distribution? and ?Securities Being
Offered? for a description of our capital stock.
Except as required by law, the Class A Common Stock
will have no voting rights and no holder thereof shall
be entitled to vote on any matter. Each holder of
shares of Class B Common Stock will be entitled to one
vote for each share; each holder of shares of Class C
Common Stock will be entitled to ten votes for each
share. The Company?s Founders currently hold ninety
percent of Preferred Shares and one hundred percent of
Class C Common Stock, which means that the Founders
currently hold over ninety percent of the voting power
of the Company?s equity.
Generally, no sale may be made to you in this offering
if the aggregate purchase price you pay is more than
ten percent of the greater of your annual income or
net worth. Different rules apply to accredited
investors and non-natural persons. Before making any
representation that your investment does not exceed
applicable thresholds, we encourage you to review Rule
251(d)(2)(i)(C) of Regulation A. For general
information on investing, we encourage you to refer to
www.investor.gov.
There is currently no trading market for our common
stock. We intend to apply to have our shares of common
stock quoted for trading on the OTCQX marketplace and
expect to trade under the symbol ?HEUG? upon
acceptance of our application by OTC Markets, which
will occur after the termination of this Offering.
The Company has engaged Sageworks Capital, LLC.,
member FINRA/SIPC (the ?Broker-Dealer? or ?Broker?) to
assist in the placement of its securities. Sageworks
Capital, LLC will not solicit or recommend the
security and will act only as a registered agent for
the offering. See ?Plan of Distribution; Selling
Security Holders? for details of compensation paid to
the Broker.
These are speculative securities. Investing in our
shares involves significant risks. You should purchase
these securities only if you can afford a complete
loss of your investment. See ?Risk Factors? beginning
on page 10.
Does not include expenses of the offering, including
costs of Investor Escrow Setup, Technology and
Accounting Fee and posting and marketing offering,
estimated to be $250,000 for the Maximum Offering
amount. See ?Plan of Distribution.?
The United States Securities and Exchange Commission
does not pass upon the merits of or give its approval
to any securities offered or the terms of the
offering, nor does it pass upon the accuracy or
completeness of any offering circular or other
solicitation materials. These securities are offered
pursuant to an exemption from registration with the
Commission; however, the Commission has not made an
independent determination that the securities offered
are exempt from registration.
Sales of these securities will commence on
approximately _____.
We are providing the disclosure in the Offering
Circular format of Form 1-A.
99 Monroe Ave, NW; Suite 200, Grand Rapids, MI 49503;
www.heugenis.com
The date of this Offering Circular is XXXX, 2018
?
TABLE OF CONTENTS
OFFERING SUMMARY 9
RISK FACTORS 14
USE OF PROCEEDS 23
DILUTION 26
ABOUT HEUGENIS INC. 34
THE PROBLEM 37
AN ALTERNATIVE TO CONVENTIONAL TREATMENT 42
MARKET OPPORTUNITY 61
RESEARCH AND DEVELOPMENT 67
COMPETITORS 69
MANAGEMENT?S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION 73
DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES 78
COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS 88
INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS 89
OWNERSHIP 90
SECURITIES BEING OFFERED 92
PLAN OF DISTRIBUTION 106
APPENDIX 108
FINANCIAL STATEMENTS 108
NOTES TO THE FINANCIAL STATEMENTS 114
EXHIBITS 118
SIGNATURE PAGE 119
FORWARD LOOKING STATEMENTS
This offering circular contains forward-looking
statements that involve risk and uncertainties. We use
words such as ?anticipate?, ?believe?, ?plan?,
?expect?, ?future?, ?intend?, and similar expressions
to identify such forward-looking statements. Investors
should be aware that all forward-looking statements
contained within this filing are good faith estimates
of management as of the date of this filing. Our
actual results could differ materially from those
anticipated in these forward-looking statements for
many reasons, including the risks faced by us as
described in the ?Risk Factors? section and elsewhere
in this offering circular.
?
OFFERING SUMMARY
The following summary highlights selected information
contained in this offering circular. This summary does
not contain all the information that may be important
to you. You should read the more detailed information
contained in this offering circular, including, but
not limited to, the risk factors beginning on page 4.
References to ?we,? ?us,? ?our,? or ?the ?Company?
mean Heugenis Inc, a Delaware Corporation incorporated
on February 12, 2018.
Our Company
Heugenis (trademark) Inc. is focused on bringing hope
to millions suffering from Alzheimer?s disease through
an easy to use, low cost, non-invasive and non-drug
approach utilizing wearable-tech glasses to deliver
stroboscopic therapy. Building on decades of clinical
and university studies, Heugenis Inc is committed to
developing a new generation of affordable non-drug
related medical solutions, offered direct to consumers
on an expedited timeline through the rapid-adoption of
pioneering research. Our company is built on the past
success of our Founders, who have a demonstrated track
record for bringing innovative ideas to the global
marketplace. Our first priority at Heugenis Inc will
always be to serve the urgent need of Alzheimer?s
sufferers and their caregivers with empathy, respect,
and integrity, with the goal of delivering hope to
millions living with this debilitating disease.
This Offering
We have authorized capital stock consisting of
10,000,000 shares of Class A Common Stock, $0.00001
par value per share (?Class A Common Stock?),
5,000,000 shares of Class B Common Stock, $0.00001 par
value per share (?Class B Common Stock?), 500,000
shares of Class C Common Stock, $0.00001 (?Class C
Common Stock?, and together with the Class A Common
Stock and the Class B Common Stock, the ?Common
Stock?) and 5,000 shares of Preferred Stock, $0.00001
par value per share (?Preferred Stock?). We have
500,000 shares of Class C Common Stock and 1,390
shares of Preferred Stock issued and outstanding.
After this Offering, we will have outstanding a total
of 625,000 shares of Class A Common Stock.
Securities Offered
RISK FACTORS
An investment in our shares involves a high degree of
risk and many uncertainties. You should carefully
consider the specific factors listed below, together
with the cautionary statement that follows this
section and the other information included in this
offering circular, before purchasing our shares in
this offering. If one or more of the possibilities
described as risks below actually occur, our operating
results and financial condition would likely suffer
and the trading price, if any, of our shares could
fall, causing you to lose some or all of your
investment. The following is a description of what we
consider the key challenges and material risks to our
business and an investment in our securities.
RISKS RELATED TO OUR BUSINESS AND INDUSTRY
We have a limited operating history and have not yet
generated any revenues.
Our limited operating history makes evaluating
the business and future prospects difficult and
may increase the risk of your investment.
Heugenis Inc. was formed in February 2018 and we
have not yet begun producing or delivering our
first product. To date, we have no revenues.
Adoption of our technology requires significant
education of the consumer to achieve commercial
success and may never be successfully adopted by
the consumer marketplace.
If we are unable to raise the capital requirements
identified in this offering circular, it is unlikely
that we will be able to continue as a going concern.
Our auditors have issued a ?going concern?
opinion. Our ability to continue as a ?going
concern? is dependent on many factors, including,
among other things, our ability to raise the
necessary capital to fund our operations as
identified in this offering, growth in product
orders and shipments, and improved operating
margins. If we are unable to achieve these
goals, our business would be jeopardized and the
Company may not be able to continue. If we ceased
operations, it is likely that all of our
investors would lose their investment.
We anticipate that we will experience losses prior to
and early in the launch of our first product.
We have no revenues and expect significant
increases in costs and expenses before realizing
revenues. Though we have successfully identified
a need for our wearable-technology and a design,
manufacturing, marketing and distribution
strategy, there can be no assurance that we will
be commercially successful.
Terms of subsequent financings may adversely impact
your investment.
We may have to engage in common equity, debt, or
preferred stock financing in the future. Your
rights and the value of your investment in the
common stock could be reduced. Interest on debt
securities could increase costs and negatively
impacts operating results. Preferred stock could
be issued in series from time to time with such
designation, rights, preferences, and limitations
as needed to raise capital. The terms of
preferred stock could be more advantageous to the
preferred investors than to the holders of common
stock. In addition, if we need to raise more
equity capital from the sale of common stock,
institutional or other investors may negotiate
terms at least as, and possibly more, favorable
than the terms of your investment. Shares of
common stock which we sell could be sold into any
market which develops, which could adversely
affect the market price.
We face significant barriers in our attempt to achieve
speed-to-market-advantage with our wearable-
technology, and if we cannot successfully overcome
those barriers the business will be negatively
impacted
The design, manufacture and distribution of new
consumer products for the retail industry has
traditionally been characterized by significant
barriers to entry, including large capital
requirements, investment costs of designing and
manufacturing products, long lead times including
potential delays in bringing products to market
from the concept and design stage, the need for
specialized design and development expertise,
insurance requirements and establishing a brand
name and image. As a product developer of
wearable technology, we face a variety of added
challenges to entry that a traditional health and
wellness company would not encounter including
educating the consumer on the advantage of this
new technology and the proper use of it in
highly-specific training regimens, and unproven
high-volume customer demand for our wearable-
technology. We must overcome these barriers to be
successful.
Additional approval and regulation of our product by
the FDA may be required.
Though we believe we do not require FDA approval
to sell and distribute our product as a ?memory
aid,? the wearable technology is currently
categorized as a Class I device by the FDA, (for
example, dental floss is classified as Class I
device), and additional review and approval may
be required that could significantly set back our
timeline for product introduction, delaying
potentially for years our realization of
revenues. Possible unforeseen changes in FDA
regulations governing our technology may also
force us to delay our product introduction to the
consumer marketplace.
We plan to subcontract our manufacturing.
We do not own any manufacturing facilities, nor
do we plan on purchasing any equipment or leasing
any manufacturing facilities. We do not foresee
any capital expenditures in the next five years
for this purpose. We will be subcontracting or
licensing the manufacturing, quality control and
distribution of products to strategic partners
with valuable relationships with offshore
manufacturers of high-end consumer electronics,
designed to our exacting specifications.
Unforeseen risks are attached to the reliability
and performance of our outsourced manufacturing.
We are critically dependent on the ability of our
outsourced manufacturing partners to deliver
high-quality product on a reliable timeline at a
cost that allows us to sell our product at a
profit. Many unknown risks that could contribute
to our failure include production setbacks,
quality control failure, delivery of faulty
product, and the financial viability of our
subcontracted manufacturers none of which we will
have control over.
The successful protection of our market through the
filing of patents, trademarks and other intellectual
property contains risks.
The Company has no guarantee that any patent(s)
we have filed will be accepted by the United
States Patent and Trademark Office. Additionally,
there is a risk that potential competitors who
have received patents for their technology will
seek to block the approval of any patents or
related intellectual property that we apply for.
Our dependence on any patents secured by our
outsourced manufacturing partners may also come
under scrutiny by potential competitors and
existing patent holders who may attempt to block
the manufacture and distribution of our products
for an extended timeframe, limiting our ability
to generate revenues.
Management of the Company is currently concentrated in
the hands of a small team.
The Company has no salaried employees at this
time and its development and growth is reliant on
a small management team and its Board of
Directors. The failure to quickly raise working
capital to support an expedited hiring process to
fill key positions would critically delay the
Company?s successful launch and potentially its
long-term financial viability.
Unforeseen product liability issues and related costs
could produce significant risks contributing to our
failure.
Required product liability insurance costs could
prove to be so significant that they would
negatively impact the Company?s ability to
produce and deliver an affordable consumer model
of our product. Additionally, unforeseen
performance issues related to the mass
distribution of our product to a consumer
marketplace could result in malfunctions and even
potentially consumer injuries, resulting in
lawsuits and product recall.
Our success is dependent upon consumers? willingness
to adopt wearable training technology.
If we cannot develop sufficient market demand for
stroboscopic technology through our direct efforts,
we will not be successful. Factors that may
influence the acceptance of wearable training
technology include:
* perceptions about stroboscopic goggles quality,
safety, design, performance and cost;
* perceptions about the ease or difficulty of
wearable training technology and the successful
adoption of training regimens needed to produce
desired results with consumers,
Pressure from competitors may limit our success.
If our competitors introduce new stroboscopic
goggles that compete with or surpass the quality,
price or performance of our technology, we may be
unable to satisfy existing customers or attract
new customers at the prices and levels that would
allow us to generate attractive rates of return
on our investment. Increased competition could
result in price reductions and revenue
shortfalls, loss of customers and loss of market
share, which could harm our business, prospects,
financial condition and operating results.
RISKS RELATED TO THE INVESTMENT IN OUR COMMON STOCK
The ownership of our preferred stock is concentrated
among existing executive officers and directors.
Upon the sale of all of the shares offered in
this Offering, our executive officers and
directors will continue to own beneficially, in
the aggregate, a vast majority of the outstanding
shares of common and preferred stock. As a
result, they will be able to exercise a
significant level of control over all matters
requiring shareholder approval, including the
election of directors, amendments to our Articles
of Incorporation, and approval of significant
corporate transactions. Except as required by
law, the Class A Common Stock will have no voting
rights and no holder thereof shall be entitled to
vote on any matter. Each holder of shares of
Class B Common Stock will be entitled to one vote
for each share of Class B Common Stock held as of
the applicable date on any matter that is
submitted to a vote or for the consent of the
stockholders of the Company. Each holder of
shares of Class C Common Stock will be entitled
to ten (10) votes for each share thereof held at
the record date for the determination of the
stockholders entitled to vote on such matters or,
if no such record date is established, the date
such vote is taken, or any written consent of
stockholders is solicited. The largest
shareholder is the Company founder, as
demonstrated in the Ownership Table on Page 36.
There currently is no public trading market for our
securities and an active market may not develop or, if
developed, be sustained.
There is no trading market for our stock
currently. If an active public trading market for
our securities does not develop or is not
sustained, it may be difficult or impossible for
you to resell your shares at any price. Even if a
public market does develop, the market price
could decline below the amount you paid for your
shares.
?
USE OF PROCEEDS
We estimate that, at a per share price of $16.00, if
the maximum number of 625,000 shares is sold, the net
proceeds will be approximately $9,860,000 after
deducting estimated offering expenses of $360,000.
The net proceeds of this offering will be used
primarily to fund product development, prototyping,
marketing and distribution of our wearable technology,
along with the professional fees necessary to support
those operations including offering costs and
commissions, accounting, legal, and consultant fees.
This stage is anticipated to take eight months.
Accordingly, we expect to use the net proceeds as
follows, assuming we raise 25 percent, 50 percent, 75
percent and all of the Maximum Amount in this
offering:
Asterick: FINRA filing, Transfer Agent, Merchant Fees,
Marketing, Payment Processing, Website
* Salaries will be primarily spent on executive
managers critical to the Company?s operation. We
will add employees as growth and capital allow.
* Professional fees include attorney services for
the filing of our patent and trademark, as well
as general business management. Additional
contracted professional services will include
website development and manufacturing contracts.
* Equipment will include computers, printers and
general office equipment.
* Insurance and research and development will be
spent on product liability insurance, the
development of product prototypes, securing
clinical trials and FDA approval.
* Travel expenses include airfare and hotel costs
for our management team necessary to support
sales and marketing operations as well as product
development.
* Marketing will be devoted to advertising our
product through our website, tradeshows, media
buys and public relations.
* SGA include all general, office and
administrative expenses.
* Lease proceeds will be dedicated to securing
leased office space.
The foregoing information is an estimate based on our
current business plan.
Because the offering is a ?best efforts? offering with
no minimum offering size other than the minimum
purchase requirement, Heugenis may close the offering
without sufficient funds for all the intended purposes
set out above, or even to cover the expenses of the
Offering. In that event it will ?bootstrap? its
expenses and only spend funds on marketing and product
development when it has revenues to do so.
We may find it necessary and/or advisable to re-
allocate portions of the net proceeds reserved for one
category to another, and we will have broad discretion
in doing so. Determination of any changes in the use
of proceeds will be at the sole discretion of the
Company?s management team and its Board of Directors.
Such reallocation of proceeds may produce a
significant change in expected revenues and/or their
timeline.
?
DILUTION
The term "dilution" means the reduction of any one
share as a percentage of the aggregate shares
outstanding. If all of the shares in this offering are
fully subscribed and sold, the Shares offered herein
will constitute approximately 3.83 percent of the
total shares of the Company on a fully diluted basis.
The Company anticipates that subsequent to this
offering the Company may require additional capital
and such capital may take the form of other stock or
securities or debt convertible into stock. Such future
fund raising will further dilute the percentage
ownership of the shares sold herein in the Company.
Immediate dilution
An early-stage company typically sells its shares (or
grants options over its shares) to its founders and
early employees at a very low cash cost, because they
are, in effect, putting their ?sweat equity? into the
company. When the company seeks cash investments from
outside investors, like you, the new investors
typically pay a much larger sum for their shares than
the founders or earlier investors, which means that
the cash value of your stake is diluted because all
the shares are worth the same amount, and you paid
more than earlier investors for your shares. If you
invest in our Class A Common Stock, your interest will
be diluted immediately to the extent of the difference
between the offering price per share of our Class A
Common Stock and the pro forma net tangible book value
per share of our fully diluted capitalization.
The following table compares the price that new
investors are paying for their shares with the
effective cash price paid by existing shareholders.
Investors in this offering will pay $16.00 per share.
The table reflects all transactions since inception
As of June 30, 2018, the net tangible book value of
the Company was $52,150. Based on the number of
shares of stock issued and outstanding as of the date
of this Offering Circular (501,390 shares total,
consisting of 500,000 shares of Class C Common Stock
and 1,390 shares of Series A Preferred Stock, which is
convertible into 3,475,000 shares of Class B Common
Stock) equates to a net tangible book value of
approximately $0.01 per share of common stock,
assuming conversion of the Series A Preferred Stock to
Class B Common Stock (Scenario A); or, equates to a
net tangible book value of approximately $0.01 per
share of common stock, assuming conversion of the
Series A Preferred Stock to Class B Common Stock,
conversion of 1,500,000 Class A Common Stock options
that are issued and outstanding but not yet exercised,
and conversion of 1,180,000 Class B Common Stock
options that are issued and outstanding but not yet
exercised (Scenario B); or, equates to a net tangible
book value of approximately $0.00 per share of common
stock, assuming conversion of the Series A Preferred
Stock to Class B Common Stock, conversion of 1,500,000
Class A Common Stock options that are issued and
outstanding but not yet exercised, conversion of
1,180,000 Class B Common Stock options that are issued
and outstanding but not yet exercised, and 3,610
shares of Series A Preferred Stock reserved for
issuance under the Company?s stock option plan that
would become exercisable into shares of Series A
Preferred Stock that are in turn convertible into
Class B Common Stock at a 1:2,500 conversion rate
resulting in an effective reservation of 9,025,000
shares of Class B Common Stock (Scenario C).
Without giving effect to any changes in such net
tangible book value after June 30, 2018, other than to
give effect to the sale of 650,000 shares of Class A
Common Stock being offered by the Company in this
Offering Circular for the net proceeds of $9,640,000
($10,000,000 maximum offering, less commissions and
estimated offering costs), the pro forma net tangible
book value, assuming full subscription, would be
$9,692,150. Based on the total number of shares of
common stock that would be outstanding assuming full
subscription (625,000) equates to approximately $2.11,
$1.33, and $0.59 net tangible book value per share
under Scenario A, Scenario B, and Scenario C,
respectively.
Thus, if the Offering is fully subscribed, the net
tangible book value per share of Class C Common Stock
owned by our current stockholders will have
immediately increased by approximately $2.09, $1.32,
and $0.59 per share for Scenario A, Scenario B, and
Scenario C, respectively, without any additional
investment on their behalf and the net tangible book
value per Share for new investors will be immediately
diluted by $13.89, $14.67, and $15.41 per share for
Scenario A, Scenario B, and Scenario C, respectively.
The following table illustrates this per share
dilution:
Asterick: Before deduction of offering expenses
Future dilution
Another important way of looking at dilution is the
dilution that happens due to future actions by the
company. The investor?s stake in a company could be
diluted due to the company issuing additional shares.
In other words, when the company issues more shares,
the percentage of the company that you own will go
down, even though the value of the company may go up.
You will own a smaller piece of a larger company. This
increase in number of shares outstanding could result
from a stock offering (such as an initial public
offering, another crowdfunding round, a venture
capital round, angel investment), employees exercising
stock options, or by conversion of certain instruments
(e.g. convertible bonds, preferred shares or warrants)
into stock.
If the company decides to issue more shares, an
investor could experience value dilution, with each
share being worth less than before, and control
dilution, with the total percentage an investor owns
being less than before. There may also be earnings
dilution, with a reduction in the amount earned per
share (though this typically occurs only if the
company offers dividends, and most early stage
companies are unlikely to offer dividends, preferring
to invest any earnings into the company).
The type of dilution that hurts early-stage investors
most occurs when the company sells more shares in a
?down round,? meaning at a lower valuation than in
earlier offerings. An example of how this might occur
is as follows (numbers are for illustrative purposes
only):
In June 2014 Jane invests $20,000 for shares that
represent 2 percent of a company valued at $1
million.
In December the company is doing very well and
sells $5 million in shares to venture capitalists
on a valuation (before the new investment) of $10
million. Jane now owns only 1.3 percent of the
company but her stake is worth $200,000.
In June 2015 the company has run into serious
problems and in order to stay afloat it raises $1
million at a valuation of only $2 million (the
?down round?). Jane now owns only 0.89 percent of
the company and her stake is worth only $26,660.
This type of dilution might also happen upon
conversion of convertible notes into shares.
Typically, the terms of convertible notes issued by
early-stage companies provide that in the event of
another round of financing, the holders of the
convertible notes get to convert their notes into
equity at a ?discount? to the price paid by the new
investors, i.e., they get more shares than the new
investors would for the same price. Additionally,
convertible notes may have a ?price cap? on the
conversion price, which effectively acts as a share
price ceiling. Either way, the holders of the
convertible notes get more shares for their money than
new investors. In the event that the financing is a
?down round? the holders of the convertible notes will
dilute existing equity holders, and even more than the
new investors do, because they get more shares for
their money. Investors should pay careful attention to
the amount of convertible notes that the company has
issued (and may issue in the future, and the terms of
those notes.
If you are making an investment expecting to own a
certain percentage of the company or expecting each
share to hold a certain amount of value, it?s
important to realize how the value of those shares can
decrease by actions taken by the company. Dilution can
make drastic changes to the value of each share,
ownership percentage, voting control, and earnings per
share.
?
ABOUT HEUGENIS INC.
MISSION: ?To bring hope to millions suffering from
Alzheimer?s.?
Groundbreaking Technology
Dutch for ?memory,? Heugenis is a wearable-tech
company focused on bringing emerging medical
solutions direct to consumers through non-
invasive appliances that are easy to use.
Hope for Millions
Our flagship product MEMORY LENSES (tm) is
bringing hope to millions suffering from
Alzheimer?s disease through an easy to use, low
cost, non-invasive and non-drug approach.
Pioneering Research
We?re leveraging cutting-edge research to develop
an exciting, device-based treatment, proven in
non-human university studies and early clinical
human studies to decrease harmful chemical
processes in the brain directly related to the
disease.
Non-Drug Solution
Building on decades of research, Heugenis
manufactures, markets and distributes a unique
and novel wearable technology appliance to
Alzheimer?s sufferers, going beyond passive
monitoring to actively address the underlying
neurological causes of the disease.
Easy to Use
Now, as easy as putting on glasses, Alzheimer?s
sufferers can apply beneficial therapy with
Heugenis MEMORY LENSES in the comfort of their
own homes, or in any setting, for as little as
twenty minutes a day, while allowing them to
watch TV, spend time with loved ones, or partake
in other normal activity.
Speed to Market
Heugenis Inc is committed to bringing a new
generation of non-drug related medical solutions
direct to consumers on an expedited timeline at a
reasonable cost through the rapid-adoption of
pioneering research.
Patient Owned
We?re taking control of potentially life-saving
technology away from pharmaceutical companies and
putting it in the hands of Alzheimer?s patients
through equity ownership opportunity in our
company through the revolutionary new Regulation
A investment platform.
A Track Record of Success
Our company is built on the past success of our
Founders, who have a demonstrated track record
for bringing innovative ideas to the global
marketplace. Our first priority at Heugenis Inc
will always be to serve the urgent need of
Alzheimer?s sufferers and their caregivers with
empathy, respect, and integrity, with the goal of
delivering hope to millions living with this
debilitating disease.
?
THE PROBLEM
According to the Alzheimer's Association,
approximately 5.5 million people in the U.S. today are
affected by Alzheimer?s Disease (AD) and that number
could triple by 2050 . There is an urgent need to
develop new treatments for Alzheimer's disease and
make them available to sufferers on an expedited
timeline at a reasonable cost.
* Despite the growing need, Alzheimer?s research
into drug-therapy treatment has seen the failure
in the last two years in clinical trials of two
major drugs in the FDA approval process pipeline.
* Current treatments are limited to five drugs and
new alternatives are expensive to develop with
long runways and extremely high failure rates.
* Of the five approved medications, tacrine poses a
risk of liver damage and is rarely prescribed.
The four others can cause side effects including
nausea, vomiting, dizziness, loss of appetite,
muscle cramps, tremor and weight loss and in rare
cases, slow heartbeat, heart block,
gastrointestinal bleeding, ulcers, convulsions
and seizures.
* No new drugs for the treatment of Alzheimer?s
have been approved by the FDA since 2003.
* Costing up to more than $400 per month,
Alzheimer's drugs are expensive with steep out-
of-pocket costs, even with insurance or Medicare
coverage.
* Alzheimer?s treatment costs are more than cancer
and heart disease, estimated at $259 billion a
year with an additional $221 billion in unpaid
care being borne by 15 million loved ones and
caretakers.
* Medicare and Medicaid are expected to cover $175
billion, or 67 percent, of the total health care
and long-term care payments for people with
Alzheimer?s , putting an exponentially-growing
burden on taxpayers.
ABOUT ALZHEIMER?S
Alzheimer?s disease is the leading cause of dementia
of the brain. The disease progressively destroys brain
cells preventing basic functions like memory and motor
skills.
Alzheimer?s is caused by the progressive accumulation
of the protein fragment beta-amyloid (plaques) outside
neurons in the brain and twisted strands of the
protein tau (tangles) inside neurons. These changes
are eventually accompanied by the damage and death of
neurons, resulting in a loss of synchronised brain
activity, known as gamma oscillations, which is linked
to attention and memory. While the root cause of the
disease is still being studied, autopsy results always
show characteristic beta-amyloid plaque buildup
between dying cells and ?tangles? within the brain?s
neurons from the disintegration of a protein called
tau.
According to the Alzheimer?s Association:
* AD is the fifth leading cause of death among
people age 65 years and older in the United
States.
* 1 in 9 adults over 65 have Alzheimer?s. The U.S.
population age 65 and older is projected to
nearly double from 48 million to 88 million by
2050.
* Alzheimer?s ranks as number 1 in the 10 leading
causes of deaths in the United States that cannot
be prevented, slowed or cured.
* There has been an 80 percent increase in deaths
due to Alzheimer?s between 2000 and 2014. Deaths
from Alzheimer?s have nearly doubled during this
period while those from heart disease ? the
leading cause of death ? have declined.
* Diseases like breast cancer, prostate cancer,
heart disease, stroke, and HIV ALL show a decline
from 2000 to 2013. Alzheimer's is up 71 percent
in the same time frame.
* Statistics show that you are two times more
likely to die before 80 if you have Alzheimer's.
* Alzheimer?s is a very burdensome disease in that
a long duration of illness, disability and
dependence precedes death.
CURRENT ALZHEIMER?S TREATMENTS
The U.S. Food and Drug Administration (FDA) has
approved five medications to treat the symptoms of
Alzheimer's disease. The effectiveness of these drugs
varies from person to person and is limited in
duration.
* Two new major drugs in the FDA approval process
pipeline have failed in the last year and a half
in clinical trials. Eli Lily?s drug trial in
November of 2016 failed in clinical trial stage
after promising results in rodents did not
translate into clinical improvements for
patients. In September of 2017, Axovant Sciences
announced the failure of its drug at the Phase
3 clinical trial stage, when patients with mild
to moderate Alzheimer's disease (AD) did not see
minimum efficacy requirements.
* In the United States, it takes an average of 12
years for an experimental drug to travel from the
laboratory to your medicine cabinet.
* Most trials are sponsored by the
biopharmaceutical industry.
* Only 5 in 5,000 drugs that enter preclinical
testing progress to human testing. One of these 5
drugs that are tested in people is approved. The
chance for a new drug to actually make it to
market is thus only 1 in 5,000.
* In the decade of 2002-2012, 244 drugs for
Alzheimer?s were tested in clinical trials
registered with clinicaltrials.gov, a National
Institutes of Health registry of publicly and
privately funded clinical studies. Only one of
the 244 drugs successfully completed clinical
trials and went on to receive approval from the
FDA.
Three of the five available medications ? donepezil,
galantamine and rivastigmine?are from a class of drugs
called ?cholinesterase inhibitors.? These drugs
prevent the breakdown of a chemical messenger in the
brain that is important for learning and memory. The
fourth drug, memantine, regulates the activity of a
different chemical messenger in the brain that is also
important for learning and memory. Both types of drugs
help manage symptoms but work in different ways. The
fifth medication is a combination of one of the
cholinesterase inhibitors (donepezil) with memantine.
* There are 105 agents in the AD treatment
development pipeline, of which 25 agents are in
29 trials in phase I, 52 agents are in 68 trials
in phase II, and 28 agents are in 42 trials in
phase III.
* Seventy percent of drugs in the AD pipeline are
disease-modifying therapies (DMTs). Fourteen
percent are symptomatic cognitive enhancers, and
13 percent are symptomatic agents addressing
neuropsychiatric and behavioral changes (2
percent have undisclosed mechanisms).
AN ALTERNATIVE TO CONVENTIONAL TREATMENT
Now, as easy as putting on glasses, Alzheimer?s
sufferers can apply beneficial therapy with Heugenis
MEMORY LENSES (tm) in the comfort of their own homes,
or in any setting, for as little as twenty minutes a
day, while allowing them to watch TV, spend time with
loved ones, or partake in other normal activity.
* New research out of the Massachusetts Institute
of Technology (MIT) and published in the journal
NATURE in November of 2016 demonstrates that
stroboscopic therapy offers a possible
alternative to drug therapy for Alzheimer?s
patients.
* According to the study, strobe lighting has been
shown to reduce levels of the toxic proteins seen
in the brains of those suffering from Alzheimer?s
disease, demonstrating the possibility of non-
drug treatments for the disease.
* Heugenis has developed a non-invasive, non-drug,
wearable stroboscopic appliance called MEMORY
LENSES that produces stimulation of the brain?s
visual cortex to naturally manage beta-amyloid
plaques.
* Heugenis MEMORY LENSES offer the possibility of
early intervention in disease progression and
preserved brain function when administered either
at the MCI stage or during the proposed
preclinical stage.
* The successful use of stroboscopic technology to
improve cognitive functions is supported by
decades of clinical and university research and
has been adopted by prominent athletes in the
last few years, widely-documented in respected
national media outlets.
* Heugenis?s MEMORY LENSES have comparatively a
very short timeline for clinical testing and FDA
approval compared to conventional drug treatment
protocols Categorized as a Class I device by the
FDA, (for example, dental floss is classified as
Class I device). On average, medical device
companies waited 177 calendar days (about six
months) for their device to get cleared by FDA
during 2016 .
* MEMORY LENSES have a functionality of blocking
ambient light by electronically switching the
lenses from clear to opaque, much like shaded sun
glasses. There is no obtrusive light that enters
the eyes except natural daylight. MEMORY LENSES
are not unlike a flashing image on a computer
screen or video game in terms of its potential
risk of triggering photosensitive epilepsy
(seizures).
* Alzheimer?s patients can augment their current
drug treatment regimen with Heugenis MEMORY
LENSES with no detrimental effect.
* Heugenis MEMORY LENSES actively address the
underlying neurological causes of the disease
through passive, non-invasive stimuli. The result
is sharpened cognitive and fine motor performance
at a reasonable cost with minimum effort.
* While there are five prescription drugs currently
approved by the U.S. Food and Drug Administration
(FDA) to treat its symptoms, none of them slows
or stops the damage and destruction of neurons
that cause Alzheimer?s symptoms and make the
disease fatal.
* Research indicates that stroboscopic training can
also lead to general improvements in higher-level
visual cognition. After under-going stroboscopic
training, participants revealed an improved
ability to retain visual information in short-
term memory. Furthermore, this improved ability
was still present 24 hours later.
* Alzheimer?s sufferers can engage in normal
activities while using Heugenis MEMORY LENSES,
including watching TV, thus supporting easy
adoption of our technology.
* At an average forecasted cost to the consumer of
$3,500, Heugenis MEMORY LENSES offer a more
economical treatment alternative to costly drug
therapy.
* The speed-to-market advantage, reasonable
consumer cost, and safety of this Class I medical
appliance are all favorable factors for the rapid
adoption of our wearable tech by the current 5.5
million Alzheimer?s sufferers in the United
States.
STROBOSCOPIC TREATMENT OF ALZHEIMER?S
Stroboscopic technology offers a non-invasive, non-
drug treatment that has in one case shown some promise
of addressing the cause of Alzheimer?s. Specifically,
in clinical research from MIT performed on
representative mice, flashing light was able to become
somewhat of a ?pacemaker? for the brain. The rhythmic
flashing enabled neurons to fire at their ?healthy?
normal rate, and recruit microglia to destroy beta
amyloid brain pathogens--. According to the research,
one hour of flashing light therapy yielded lower
levels of beta amyloid over the next 12-24 hours.
The study, in mice, found that exposure to flickering
light stimulated brain waves, called gamma
oscillations, that are known to be disturbed in
Alzheimer?s patients. Boosting this brain activity
appeared to act as a cue for the brain?s immune cells,
prompting them to absorb the toxic beta-amyloid
proteins, or plague, that are the hallmarks of the
disease in the brains of people with Alzheimer?s.
After an hour of stimulation, the researchers found a
roughly 50 percent reduction in the levels of toxic
beta amyloid proteins in the hippocampus, the brain?s
memory center. Closer inspection showed that the
amyloid had been taken up by microglia, the brain?s
immune cells. In a healthy brain, microglia act as
chemical rubbish collectors, clearing up unwanted
compounds, but in Alzheimer?s these cells can lose
this function and switch into an inflammatory state in
which they secrete toxic compounds instead.
Strengthening gamma oscillations appeared to switch
the microglia back into a productive state.
Next, the scientist showed that gamma oscillations
could also be stimulated non-invasively in the visual
brain region simply by exposing the mice to a
flickering light. At 40Hz the flicker of the light is
barely discernible and would be ?not offensive at all?
for a person to have in the background. After being
given one hour of flickering light each day for a
week, the scientists saw a 60percent reduction of
harmful amyloid plaques in the brains of the mice.
Ed Mann, an associate professor of neuroscience at the
University of Oxford, was quoted in THE GUARDIAN: ?I
was surprised, and it?s exciting, that such a simple
stimulus can target a molecular pathway and have such
an effect in an hour.?
?If humans behave similarly to mice in response to
this treatment, I would say the potential is just
enormous, because it?s so non-invasive, and it?s so
accessible,? said Li-Huei Tsai, director of the
Picower Institute for Learning and Memory at MIT, and
the paper?s senior author.
The latest intervention, scientists predict, should be
quicker and cheaper to confirm in humans than
pharmaceuticals, which typically take more than a
decade to develop and assess for safety before the
clinical efficacy is even examined.
HOW OUR STROBOSCOPIC THERAPY WORKS
Unlike conventional strobe lights, which emit burst of
flashing lights (an invasive stimuli), Heugenis MEMORY
LENSES do not emit any type of light whatsoever. In
fact, it produces a strobe-like effect by momentarily
blocking out natural ambient light (a noninvasive
stimuli) in much the same way as blinking does. By
using LCD (Liquid Crystal Display) lens technology,
MEMORY LENSES have a functionality of blocking ambient
light by electronically switching the lenses from
clear to opaque, much like shaded sun glasses. There
is no obtrusive light that enters the eyes except
natural daylight.
* The MIT study employed invasive light projection,
whereas we have developed an appliance that
produces the same effect with non-invasive light
occlusion, enabling greater patient comfort and
adoptability, allowing them to watch TV or
partake in other normal activity while undergoing
treatment.
* To achieve measurable gains with strobe
technology, it usually requires a minimum of
three 20-minute sessions per week, for three
weeks. The threshold of measurable gains is
achievable in less time if the rate of training
is increased from three to five times a week. To
sustain gains, maintenance session is required.
One 20-minute session per week has been shown to
be sufficient. A significant loss of gains will
follow after five weeks if all training has
stopped.
* Almost all wearable tech devices on the market
now are monitoring systems like fitness trackers,
which track and report physiological conditions
in our body, and smart watches, which deliver
updated information to us in sync with our other
devices. Our wearable tech is notably different
in that it goes beyond simple monitoring to
effect neurological and physiological training
challenges through passive, non-invasive stimuli
via eyewear. The result is sharpened cognitive
and fine motor performance at a reasonable cost
with minimum effort.
FDA APPROVAL
Heugenis will be seeking FDA approval for our MEMORY
LENSES by hiring a third-party consultant that
specializes in the process, immediately upon meeting
our capital goals.
CLINICAL TRIALS
In addition to seeking FDA approval, Heugenis will be
vetting clinical trials through leading research
hospitals nationally to explore other promising
medical applications beyond the treatment of
Alzheimer?s for our technology. Just like in
professional sports, training with our wearable tech
may help medical practitioners mitigate sensory
fatigue overload and improve fine-motor reflexes and
concentration, particularly in surgeons.
Clinical trials are research studies that evaluate and
validate a new medical approach, device, drug, or
other treatment. We believe stroboscopic training for
surgeons could result in quantitative improved results
across the board in every surgical environment,
translating into savings through reduced insurance and
hospitalization costs, while generating improved
patient outcomes with less complications, speedier
recovery, and reduced fatalities. Revenue forecasts do
not include any ancillary uses of our technology in a
surgical application.
HISTORY OF STROBOSCOPIC TECHNOLOGY
Stroboscopic technology is not new. Decades of
clinical and university studies have resulted in the
adoption of stroboscopic technology for the
improvement of cognitive functions in everyone from
Mir astronauts to current-day superstar athletes.
NASA
The benefits of stroboscopic technology were explored
by NASA as early as 2006, when it was demonstrated
that stroboscopic goggles that simulate a strobe-
lighting effect could prevent the nauseating effects
of space sickness - and that of more down-to-Earth
travel. Designed by Millard Reschke at JSC, with
George Ford and Jeffrey Somers at Wyle Laboratories in
Houston, the goggles were honored at the Inventors'
Luncheon 2006 at NASA's Johnson Space Center in
Houston, Texas. Reschke came up with the idea for the
glasses after observing a particular astronaut who had
returned from a long stay on Russia?s former space
station, Mir. A 1981 study suggested that strobe
lighting might help with motion sickness, but it was
not clear why. Reschke?s team noticed that the
astronaut?s eyes darted back and forth more than
normal. The team suspected these eye jitters ? known
as square wave jerks ? were helping to ?freeze? the
moving visual scene on his retina, protecting him from
space sickness. After Reschke observed a Mir
astronaut, he wondered whether strobe lighting might
also be freezing images on the retina. So his team
created glasses with lenses made of LCD "shutters"
that switch from dark to clear very quickly, providing
a strobe effect. In a study published in January 2006
through the National Institute of Health , Reschke's
team tested a pair of the glasses. The LCD shutters
allowed four 10-millisecond "flashes" of light to come
through each second. The subjects using the glasses
were able to endure simulated motion sickness for the
entire 30-minute duration of the study - those without
the goggles lasted only 24 minutes on average.
National Science Foundation
More than 40 years ago, Jack A. Adams proposed that
effective learning depends on the formation of
perceptual-motor feedback loops, which he called ?the
perceptual trace.? Funded by the National Science
Foundation, researchers at Saint Olaf College in
Minnesota tested his theory. They used strobe lights
flashing at 2, 4, 10, 15 and 20 times a second to
distract subjects from a task requiring precise eye-
hand coordination. Confirming Adams, the more sensory
feedback that subjects received, the better they did.
Even more intriguing, performance improved at faster
strobe rates of 10, 15 and 20/seconds?but not at
slower flashes at 2 and 5/ second. And the training
worked best at 15 flashes a second. The researchers
wondered, was this some kind of ?sweet spot?? They
suggested that for a perceptual trace to form and
performance to improve, the kinesthetic feedback must
be backed up with reasonably precise visual
information. If that visual information was not
precise?because the flashes were too slow or fast?no
perceptual trace could be developed. This
discovery was certainly intriguing, but how could it
be applied to sports?
Some earlier research provided a clue. Drawing on
research dating from 1952, scientists in 1964 advanced
the theory that the brain has a ?rhythmic scanning
mechanism? running at about 100 milliseconds. (This
is very much like the clock in every computer, which
synchronizes all the signals handled by the system to
a basic frequency.) If this was so, researchers
reasoned they could disrupt the visual input for some
interval up to 100 msec before any subjects ?start
losing temporal information at the neural level.? Sure
enough, experiments showed that performance was
significantly affected by flicker-rate. Test results
got worse from 0 to 9 flashes/second?the closest
interval to the brain?s hypothetical sampling rate?and
then improved again up to the fastest rate they
studied, 24/second. Many questions remained: If the
brain has a ?sampling rate? of 10 Hertz, how would it
cope with training exercises done at faster or slower
rates? Could we actually train the brain to form a
perceptual trace faster? And would that improve any
related visual or auditory skills? Researchers from
the world of high-performance sports were already
looking for those answers.
Precedents in Elite Sports Performance
A recent study at the University of Montreal showed
that professional athletes have an extraordinary
ability to learn complex and dynamic visual scenes,
far better than amateur athletes or non-athletes. The
researchers concluded, ?these remarkable mental
processing and learning abilities should be
acknowledged as critical elements for world-class
performance in sport.? The question is, how can
elite trainers build on these strengths to counter the
effects of BAR and develop true champions?
Past a certain threshold of sensory distraction,
trainees fill in any missing details by instinct or
experience. A recent literature survey that compared
elite training methods for sports and military touched
on an intriguing technique that provides a likely
answer. First devised during the 1960s, this is called
?temporal-occlusion training.? It works by temporarily
blocking the view of the action, so the trainee has to
?guess? what?s going to happen. For example, in one
study tennis players watched film shot from the
viewpoint of a player on the court. Just as the
opposing player?s racket made contact with the ball,
the screen would go dark. The player being trained had
to decide where their opponent?s shot was headed. With
training, the participants significantly improved how
quickly and accurately they could predict the
direction of an opponent?s shot.
Further studies in temporal occlusion followed, using
various devices:
* Film of baseball pitches and special helmets that
blocked the hitter?s vision as he stepped onto
the plate (Burroughs, 1984)
* More filmed tennis shots (Williams et al, 2002)
* Near-life-size video intended to train
outfielders to play goalkeeper (Williams, Ward,
and Chapman, 2003)
In all cases, the athletes who practiced using
temporal occlusion improved their accuracy, reaction
time, or both. Even though some critical information
was hidden from them during practice exercises, they
still managed to acquire a perceptual trace that
generated effective recall?some form of ?muscle
memory??even when the occlusion was removed.
What can we make of these findings? It seemed that
past a certain threshold of sensory distraction,
trainees could fill in missing details by instinct or
experience; in effect, they learned how to visualize
an unfolding event by drawing on their previous
knowledge. In any event, this approach to training
seemed to work. And it wasn?t long before the biggest
name in sports took notice.
* Oregon Ducks college football team trained with
prototype stroboscopic glasses for several
successful seasons, then won the Rose Bowl in
2012 and the Fiesta Bowl in 2013
* Green Bay Packers receiver Greg Jennings reduced
his incomplete passes from 8 per season to 3,
saying the stroboscopic glasses enabled him to
?see the ball a little better and react
quicker.?
* Florida Junior Blades hockey team trained with
the prototype stroboscopic glasses and racked up
an impressive record of 100 wins with only 19
losses and 5 ties, plus league records for most
goals scored, fewest goals against, and most
short-handed goals.
Academic research into the benefits of this vision
training continues, mainly at Duke University.
Researchers there gave hundreds of participants?
varsity players and non-athletes alike?both lab and
field exercises wearing the prototype stroboscopic
glasses, followed up by computerized visual testing.
?Results revealed that stroboscopic training led to
significantly greater re-test improvement in central
visual field motion sensitivity and transient
attention abilities,? say the researchers from
Duke. These benefits appear to be ?relatively
robust? since they appeared after only two days of
training, affecting both varsity athletes and non-
athletes alike. ?Visual attention is a critical
ability for many domains, and even a small increase
can have profound effects,? concluded the researchers.
?A small percent improvement in motion perception and
focused attention may mean the world to an athlete
engaged in a competitive sport.?
Stroboscopic Research and Athletes
The dynamic aspects of sports often place heavy
demands on visual processing. As such, an important
goal for sports training should be to enhance visual
abilities. Recent research has suggested that training
in a stroboscopic environment, where visual
experiences alternate between visible and obscured,
may provide a means of improving attentional and
visual abilities in athletes. The study explored
whether stroboscopic training could impact
anticipatory timing?the ability to predict where a
moving stimulus will be at a specific point in time.
Anticipatory timing is a critical skill for both
sports and non-sports activities, and thus finding
training improvements could have broad impacts.
Participants completed a pre-training assessment that
used a Bassin Anticipation Timer to measure their
abilities to accurately predict the timing of a moving
visual stimulus. Immediately after this initial
assessment, the participants completed training
trials, but in one of two conditions. Those in the
Control condition proceeded as before with no change.
Those in the Strobe condition completed the training
trials while wearing specialized eyewear that had
lenses that alternated between transparent and opaque
(rate of 100ms visible to 150ms opaque). Post-
training assessments were administered immediately
after training, ten minutes after training, and ten
days after training. Compared to the Control group,
the Strobe group was significantly more accurate
immediately after training, was more likely to respond
early than to respond late immediately after training
and ten minutes later and was more consistent in their
timing estimates immediately after training and ten
minutes later.
Use of Stroboscopic Technology in Major League
Baseball
In the elite world of Major League Baseball, teams who
once shunned prospects who wore glasses are now using
goggles to enhance player?s visual training and
cognitive reflexes. Teams across baseball are
working with companies like Neuroscouting to introduce
vision and reaction-time to their evaluation and
training processes. ?Hitters have three tenths of a
second on a 90-mph pitch to make a decision,? says Dr.
Keith Smithson, the Nationals? team. ?If we can buy a
tenth in there somewhere, we gain the ability to foul
it off if we were gonna miss it or put it in play if
we were gonna foul it off.?
Smithson uses a three-tiered approach to eye care: He
tests and corrects visual acuity (the average major
leaguer has 20?121?2 vision, and he?ll prescribe
lenses for anyone at or above 20?20); trains the seven
muscles around the eye to focus through drills, both
high and low tech; and tries to improve visual
processing, the communication between the eyes and the
brain. "It used to be that we had the science, but
technology hadn?t caught up,? says Smithson. ?Now
we?re starting to have the technology too.?
That?s one of the benefits of vision training?unlike
with a lifting program, where an athlete might see a
result only after several weeks of training, the
difference can show up after 15 minutes of ocular
workouts, so it?s easy to get players to buy in. As
often as possible, Smithson tries to incorporate
vision training into other exercises, so it doesn?t
even take up extra time. Players wear strobe glasses
that blink cloudy and clear while sprinting or catch
Wiffle balls at random while doing squats.
Use of Stroboscopic Technology in Professional
Hockey
Published research proves that strobe glasses
dramatically improve the performance of professional
hockey players. Players who trained with special
eyewear that only allowed them to see action
intermittently showed significant improvement in
practice drills, according to a Duke University study
with the NHL's Carolina Hurricanes. Earlier research
using the stroboscopic eyewear during training showed
improved vision, visual attention, and ability to
anticipate the timing of moving items. But the small
pilot study with Hurricanes players is the first to
directly explore whether those effects can improve
sports performance. Players who trained with the
strobe eyewear experienced an 18 percent performance
improvement in a series of on-ice skill tests. A
control group showed no change.
In a study conducted through Duke University, Stephen
R. Mitroff collaborated with Hurricanes athletic
trainers and strength and condition coaches Peter
Friesen and Doug Bennett to test players during the
team's 16-day pre-season training camp. Eleven players
completed the full study wearing prototype
stroboscopic glasses. The athletes were randomly
divided into a five-player control group that
completed normal training and a six- player strobe
group that wore the eyewear once daily during normal
training. Each group completed a performance
assessment before and after training. Forwards were
asked to perform a task that involved difficult
skating before taking shots on goal, and defensemen
were asked to skate in a circle before completing long
passes. ?That 18percent improvement for on-ice skills
for professional players is huge," Mitroff said. "This
is a dramatic improvement observed in professional
athletes."
Sensory Training Technology Takes Hold in the NFL
A Duke University study confirms stroboscopic
technology offers improved vision for elite
professional athletes and NFL players are turning to
sensory performance training to improve their vision
in an effort to up their game performance. Green
Bay Packers wide receiver Greg Jennings has used that
technology, boosted by the use of the prototype
stroboscopic glasses that features liquid-crystal
display lenses that cloud a player?s vision in 100-
millisecond patterns, forcing athletes to more
intensely focus on the main task at hand: spying the
quarterback, finding the hole, spotting the open
receiver or, in Jennings? case, simply catching the
ball. ?Your eyes are open to a level you are not going
to have them open to,? Jennings says. ?You are in tune
to everything around you.? Jennings says he didn?t
need a study to know his focus has increased on the
field, especially in difficult lighting situations.
?You wear those strobes and it gives you that contrast
and you see the ball a little better,? he says. To get
that extra focus in games, practice offers a new
wrinkle. Jennings says one of his favorite drills is
to get ?like a bull in a ring and stand in the middle?
and have people around him yelling ?ball? and firing a
football or tennis ball to him. With the strobes
pumped high, he must tune in, focusing on the ball.
And only the ball.
Stroboscopic Technology Enhances Visual Memory in
Athletes
Sports often rely on the ability to keep fleeting
information in memory (e.g., a basketball player
making a no-look pass must remember the locations of
his teammates and opponents), and any boost in visual
memory abilities could manifest in improved
performance. Previous research has shown that
intermittent, or stroboscopic, visual training (i.e.,
practicing while only experiencing snapshots of
vision) can enhance visual-motor control and visual
cognition, yet many questions remain unanswered about
the mechanisms that are altered. Another study used a
partial-report memory paradigm to assess the possible
changes in visual memory following training under
stroboscopic conditions, exploring the impact of
altering how visual information is accumulated over
time by assessing how intermittent vision influences
memory retention. In comparison to the control group,
both stroboscopic groups (immediate and delayed
retest) revealed enhanced retention of information in
short-term memory, leading to better recall at longer
stimulus-to-cue delays (640-2,560 ms). These results
demonstrate that training under stroboscopic
conditions has the capacity to enhance some aspects of
visual memory, that these faculties generalize beyond
the specific tasks that were trained, and that trained
improvements can be maintained for at least a day.
MARKET OPPORTUNITY
According to the Alzheimer's Association, about 5.5
million people in the U.S. today are affected by AD,
and that number could triple by 2050 .
CONSUMER PROFILE
As the size and proportion of the U.S. population age
65 and older continue to increase, the number of
Americans with Alzheimer?s or other dementias will
grow. This number will escalate rapidly in coming
years, as the population of Americans age 65 and older
is projected to nearly double from 48 million to 88
million by 2050. The baby boom generation has already
begun to reach age 65 and beyond, the age range of
greatest risk of Alzheimer?s; in fact, the first
members of the baby boom generation turned 70 in 2016.
Age is the greatest of these three risk factors, with
the vast majority of people with Alzheimer?s dementia
being age 65 or older. The percentage of people with
Alzheimer?s dementia increases dramatically with age:
3 percent of people age 65-74, 17 percent of people
age 75-84, and 32 percent of people age 85 or older
have Alzheimer?s dementia. It is important to note
that Alzheimer?s is not a normal part of aging, and
older age alone is not sufficient to cause Alzheimer?s
dementia.
* 1 in 10 people aged 65 and older has Alzheimer?s
dementia.
* The percentage of people with Alzheimer?s
dementia increases with age: 3 percent of people
age 65-74, 17 percent of people age 75-84, and 32
percent of people age 85 and older have
Alzheimer?s dementia.
* According to one study using data from the
Established Populations for Epidemiologic Study
of the Elderly (EPESE), approximately 480,000
people age 65 or older will develop Alzheimer?s
dementia in the United States in 2018.
* Because of the increasing number of people age 65
and older in the United States, particularly the
oldest-old, the annual number of new cases of
Alzheimer?s and other dementias is projected to
double by 2050.
* Every 66 seconds, someone in the United States
develops Alzheimer?s dementia.
* By 2050, someone in the United States will
develop Alzheimer?s dementia every 33 seconds.
* Between 2000 and 2014, deaths from Alzheimer?s
disease as recorded on death certificates
increased 89 percent, while deaths from the
number one cause of death (heart disease)
decreased 14 percent
* In 2010, there were an estimated 454,000 new
cases of Alzheimer?s dementia. By 2030, that
number is projected to be 615,000 (a 35 percent
increase), and by 2050, 959,000 (a 110 percent
increase from 2010).
* By 2025, the number of people age 65 and older
with Alzheimer?s dementia is estimated to reach
7.1 million ? almost a 35 percent increase from
the 5.3 million age 65 and older affected in
2017.
* By 2050, the number of people age 65 and older
with Alzheimer?s dementia may nearly triple, from
5.3 million to a projected 13.8 million, barring
the development of medical breakthroughs to
prevent or cure Alzheimer?s disease. Previous
estimates based on high-range projections of
population growth provided by the U.S. Census
suggest that this number may be as high as 16
million.
* The average annual out-of-pocket medical costs
for older adults with Alzheimer?s and other
dementias are nearly five times higher than costs
for people without those conditions ($10,315
versus $2,232), according to the Alzheimer?s
Association report 2017 ALZHEIMER'S DISEASE FACTS
AND FIGURES.
Costs of care for individuals in the U.S. with
Alzheimer's disease to Medicare and Medicaid from 2017
to 2050 (in billion U.S. dollars)
This graph presents the costs of care for individuals
with Alzheimer's disease to Medicare and Medicaid in
the U.S. from 2017 to 2050. In 2017, Alzheimer's
disease was estimated to cost Medicare and Medicaid
around 175 billion dollars in care costs. This number
is expected to grow to approximately 758 billion
dollars by 2050.
MEDICAL DEVICE MARKET ANALYSIS
The global medical wearable devices market was worth
more than USD 5.31 billion in revenue in 2016 and is
expected to cross $12.14 billion in 2021, growing at a
healthy CAGR of over 18 percent during the forecast
period. Sports & fitness dominated the market in
2016, however, home healthcare end uses to grow at the
second highest CAGR during the forecast period.
The medical simulation market is estimated to grow at
a CAGR of 15.2 percent from 2016 to 2021 to reach
$2.27 billion by 2021. The market was $1.6 billion in
2016. This is primarily attributed to the
increasing focus on training of medical practitioners,
rising healthcare costs, growing focus on patient
safety, and rising demand for minimally invasive
technologies. The anatomical models market accounted
for the largest share of the global market in 2015 and
covers patient simulators, task trainers, surgical
simulators, endovascular simulators, ultrasound
simulators, dental simulators, and eye simulators.
* More than 80 percent of consumers said an
important benefit of wearable technology is its
potential to make healthcare more convenient.
71percent of Americans believe that wearable tech
has improved their health & fitness.
* By 2018, 70 percent of health-care organizations
worldwide will invest in consumer-facing
technology including apps, wearables, remote
monitoring and virtual care.
98 percent of all wearable technology consists just of
monitoring systems; our technology involves training
challenges through passive, non-invasive stimuli via
eyewear, apparel, and body gear.
FACTS AND STATISTICS ON WEARABLE TECHNOLOGY
* According to estimates by the market measurement
firm Gartner, the wearable technology market was
approximately worth $28.7 billion in 2016. It is
projected to reach US$ 30.6 billion by 2020 and
USD 42.75 billion by 2021. The United States
represents the largest market worldwide.
* The wearable-tech industry will treble in the
next five years ? with 245 million devices
expected to ship in 2019. That?s a growth in
market size of 64 percent; from $15 billion in
2015 to $25 billion in 2019.
* The global market for wearable electronics is
projected to reach US$ 30.6 billion by 2020 & USD
42.75 billion by 2021, driven by increasing
adoption of healthcare and fitness monitoring
wearable, rising demand for wearable in
entertainment & enterprise applications, and
development of advanced wearables with multiple
sensors and advanced communication features. With
the development of sophisticated sensors and low-
power radio chips, electronic gadgets are
witnessing new users in healthcare and medical
fields, where real time connectivity is crucial.
The United States represents the largest market
worldwide. The growth in region is driven by
increasing preference for wearables by young
adults, higher living standards, and rising per
capita healthcare spending.
RESEARCH AND DEVELOPMENT
Through her previous employment as Partner/CFO in a
wearable technology company, our Founder Kim Lavine
has spent the last two and a half years engaged in
research of the efficaciousness of stroboscopic
technology in the improvement of cognitive functions
in the human brain, and the development and
application of that research in the design of wearable
appliance technology. Some of the resulting research
has been indirectly correlated with the work of
doctors who are recognized leaders in the field.
During this time, Ms. Lavine has been involved with
the development of a wearable tech stroboscopic
appliance that will serve as a model for the appliance
that will deliver our noninvasive therapy to
Alzheimer?s patients.
Currently, it is our strategy to preserve the
confidentiality of our technology though trade secrets
and patents on hardware in the form of our Memory
Lenses.
We believe speed-to-market advantage is the most
critical element of our technology?s success and will
be pursuing additional patents and trademarks as the
Company develops upon completion of our Regulation A
funding event.
PATENTS and TRADEMARKS
Heugenis has filed a Provisional patent as well as the
following trademarks through the United States Patent
and Trademark Office.
* PATENT: Serial number 62/742171; filing date
October 5, 2018
* TRADEMARK: ?Heugenis? Serial No. 87/927326;
Filing Date 5/18/2018
* TRADEMARK: ?Memory Lenses? Serial No. 87/927336;
Filing Date 5/18/2018
?
COMPETITORS
COGNITO THERAPEUTICS
Cognito Therapeutics was founded by a co-author of the
MIT study published in Nature, and reportedly backed
by $10 million in venture capital funding. Though the
researchers pioneered the application of stroboscopic
therapy for the possible treatment of Alzheimer?s, the
study employed invasive flashing strobe lights they
bought online from Amazon. They have not to our
knowledge to date developed the stroboscopic appliance
to deliver the therapy. Heugenis already has developed
an effective and consumer-adopted wearable tech
appliance that employs a non-invasive light occlusion
strobe therapy. Cognito engaged TheraNova in San
Francisco for the human feasibility study last January
2016. Initial results reported by a patient included
experiencing improved memory almost immediately.
Despite the positive results, the trial ended and was
reportedly moved to Boston. A patient in the TheraNova
study reported an almost immediate worsening of
Alzheimer?s symptoms and felt angry and abandoned at
being denied continued use of the treatment.
CONSUMER SPORTING GOODS MARKET
Competitors already exist in the consumer sporting
goods market, though there is no indication they are
developing an Alzheimer?s treatment strategy.
* SENAPTEC: Senaptec LLC develops a portfolio of
tools to improve brain health and performance for
sport, tactical/military, and health
applications. The company was incorporated in the
year 2013. Its technology is designed to access
an individual?s sensory performance (e.g.,
brain?s visual response time), compare those
results to others with similar demographics
(e.g., NFL quarterbacks), and improve areas that
are relatively weak. The company is currently
offering the strobe through its online store at
$325 per unit. Products Offered: Sensory
Station; SENAPTEC Strobe.
* VIMA (INSTINCT PERFORMANCE LLC): The company has
been founded by Dr. Alan Reichow and Steve
Swanson. Dr. Alan was the Director of Research
and Development for Nike Sports Sensory Training
(?SST). The Nike team has basically shifted out to
launch Vima. Special Features: Impact-resistance
and ballistic rating, Unique flicker rates,
Wireless charging, Custom-tinted lenses, Built-in
Bluetooth and sealed, water-resistant components.
Products Offered: Rev Tactical; Rev Sport.
* NIKE: Nike previously entered the marketplace
with an inferior product that did not find
acceptance in the professional athletes?
community after continuous quality control issues
and defective technology. Their patent expired in
2013 and the leadership team in charge of the
program has since left the company. In 2009, Nike
introduced the Sensory branch of Sparq Training
to the market. Nike Sparq Sensory Training
consisted primarily of two products; the first
being a large stationary testing station which
retailed at $80k and the second being a pair of
Vapor Strobe Glasses that retailed at $300. Nike
unveiled their strobes through a soft launch
exposing some of their endorsed athletes to their
product. This specific model of strobe glasses
was unable to withstand the rigors of sport and
had some technical shortcomings, namely they were
extremely fragile and would often short-circuit
when athletes would perspire. Nike's strobe
glasses were aesthetically marketable but lacked
durability. This has resulted in the dismantling
of the Sensory Department within Nike.
The Company expects competition in industry to
intensify in the future in light of increased demand
for wearable-technology, continuing globalization and
consolidation in the worldwide sporting goods
industry. Factors affecting competition include
product quality and features, innovation and
development time, pricing, reliability, and perceived
safety. Increased competition may lead to lower unit
sales and increased inventory, which may result in a
further downward price pressure and adversely affect
its business, financial condition, operating results
and prospects. The Company?s ability to successfully
compete in industry will be fundamental to its future
success in existing and new markets and its market
share.
HEUGENIS COMPETITIVE ADVANTAGE
We have over two years of research and development
behind us with a go-to-market prototype already
sourced with a very short timeline for delivery to the
consumer marketplace. Our manufacturing partners in
place have exclusive contracts with the few global
manufacturers capable of reliably delivering the
sophisticated technology to high quality control
standards. The strobe algorithm can?t be patented so
the hardware or technology is the major barrier to
entry in the stroboscopic treatment of Alzheimer?s.
The need is great, patients are desperate and there
are procedural accommodations that significantly come
into play. We believe that we have speed-to-market
advantage over our developing competition in terms of
our manufacturing and distribution schedule.
?
MANAGEMENT?S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
We are considered to be a startup company, since we
are devoting substantially all of our efforts to
establishing our business and planned principal
operations have not commenced. We have aggressively
been building our business model through research and
relationships with physicians, manufacturers,
retailers and marketers.
OPERATING RESULTS
We have not yet generated any revenues and do not
anticipate doing so until fourth quarter of 2018 at
the earliest.
Operating expenses have been borne entirely out-of-
pocket by the current shareholders in exchange for
shareholder interest in the Company.
LIQUIDITY AND CAPITAL RESOURCES
As of February 12, 2018 we had cash on hand of $000
with no current working capital deficit. There are no
outstanding notes, loans, warrants, or liens or
liabilities of any kind on any assets of the company.
We are currently raising an additional $150,000
through the sale of preferred shares to accredited
investors to support our Reg A marketing campaign. We
have not yet explored other conventional financing
options including bank loans or lines of credit. Our
Founders? contributions have been limited to their
time in the form of sweat equity and it is unlikely we
will be able to raise additional funds from them.
PLAN OF OPERATIONS
Much of the development of our product has been
completed and we are developing plans to support our
milestone of retail availability of our product in the
4th quarter 2018. We are now seeking $10 million in
funding from this Regulation A offering to fund
operations including manufacturing, salary, marketing,
research and development and the formulation of
additional market. We do not anticipate raising
additional funds in the next 12 months if we raise the
maximum sought in this offering.
* We anticipate initially selling direct to
Alzheimer?s sufferers via our website as well as
Amazon.com, beginning nine months after we raise
the necessary funds through our Reg A campaign to
pay for our subcontracted manufacturing. Once our
product has gained market traction demonstrated
by hitting first year?s sales goals of 2,750
units, we will explore a strategy of retail
distribution through brick and mortar retailers
and medical distributors.
* We are anticipating an average wholesale cost of
$1,750 for our MEMORY LENSES, and an average
retail cost of $3,500, averaging a 40percent Cost
of Goods Sold We will use $1.9 million of the $10
million we are raising through the offering to
pay cost of goods gold (COGS) for our first-year
sales goal of 2,750 units
* We are assuming a 40 percent COGS but expect to
negotiate a more favorable rate as we gain
economy of scale manufacturing.
* Our first-year sales goal of 2,750 units
represents 0.0005 percent of the total potential
5.5 million Alzheimer?s sufferers in the U.S.
market. We plan on taking pre-orders for our
Memory Lenses through our Regulation A offering
marketing campaign. Though we believe FDA
approval of our Memory Lenses is not specifically
required to sell our product, we will devote part
of the funds from our offering to the goal of
gaining FDA approval as a means to gain access to
additional markets, specifically Medicare and
Medicaid.
* These plans do not account for development of new
SKUS or penetration of global markets, nor do
they account for development of new medical
markets for our wearable-tech appliances.
COST ANALYSES
We are anticipating launching two models of MEMORY
LENSES for the Alzheimer?s patient market; a basic
model priced at $3,000 MSRP and a higher-end model
with more sensory features for augmented cognitive
stimulation priced at $4,000 MSRP.
Our market research with target end-users has
demonstrated that our forecasted retail price is
acceptable and reasonable in comparison to current
annual prescription costs:
* Averaging about $177 to more than $400 per month,
the Alzheimer's disease drugs are costly and may
not be worth it if a person takes many other
medications for other health conditions. This is
true even if insurance or Medicare coverage helps
pay since out-of-pocket payments can still be
quite steep.
* Annual prescription drug costs for people with
Alzheimer?s are estimated at $3,000, three times
the average cost for the average Medicare
beneficiaries. This high cost is due to the fact
that people with Alzheimer's disease often rely
on prescription medications to help manage the
behavioral symptoms of the disease.
* It costs an average $47,752 per year to care for
an Alzheimer's patient. If that patient is being
cared for by a residential facility, the cost
sky-rockets to $75,217 per year.
* The future of Medicare depends upon finding ways
to manage chronic disease and disability to drive
down the costs of avoidable acute care crises and
excess disability.
* Heugenis operates with a vertical model of
design, sales, manufacturing and distribution.
PRODUCTION PLAN
Currently, it is our plan that all manufacturing will
be sourced through a third-party supplier who has been
engaged for the last twelve months with the
development of consumer-ready prototypes. They have
vetted manufacturing partners specializing in high-end
wearable-technology, visiting their facilities both
domestically in California and offshore in Taiwan, and
secured detailed production quotes based on the
articulation of design specifications, while
simultaneously putting in place rigorous quality
control standards. They will oversee manufacturing in
Taiwan, including quality control, while also handling
logistics including customs, duty and brokerage
through management of the supply chain.
SALES AND DISTRIBUTION
With a goal to achieve speed-to-market advantage in
this sector, Heugenis Inc will focus on a vertical
model of design, manufacturing, sales and distribution
direct to consumers via our website, as well as
through established national retailers.
PROPERTIES
Our principal office is located at 99 Monroe Ave, NW;
Suite 200, Grand Rapids, MI 49503. It is our plan to
secure company offices with the funds gained from this
offering.
LEGAL PROCEEDINGS
There are no legal proceedings material to our
business or financial condition pending and, to the
best of our knowledge, there are no such legal
proceedings contemplated or threatened.?
DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT
EMPLOYEES
Our directors, executive officers and significant
employees, as of February 17, 2018 are as follows:
All of our executive officers and significant
employees work full-time for us. There are no family
relationships between any director, executive officer
or significant employee. During the past five years,
none of the persons identified above has been
convicted in a criminal proceeding, excluding traffic
violations and other minor offenses.
KIM LAVINE ? FOUNDER and CEO
Critically-acclaimed bestselling business author Kim
Lavine has transformed the lives of millions through
her appearances on the Today Show, Rachel Ray, Good
Morning America, NBC & ABC news, CNN, CNBC, FOX, NPR,
Oprah & Friends Radio Network, and features in USA
Today, Country Living, Guideposts, Inc, Business Week,
Entrepreneur, Women's World, and Forbes, to name a
few. Her startup bible MOMMY MILLIONAIRE was called
by Publisher?s Weekly in a Starred Review, ?A top-
notch, how-to guide on launching a business, a rare
gem.? Based on Lavine?s personal journey, the
nonfiction bestseller chronicles her story of taking
her simple consumer product into almost every major
retail chain in America within two years, while
recruiting world-class talent to work for her company.
USA TODAY says, ?MOMMY MILLIONAIRE is loaded with
resources for a fledgling business person armed with a
good idea and boundless energy." Barbara De Angelis,
Number 1 NEW YORK TIMES Bestselling Author says,
"MOMMY MILLIONAIRE is an inspiring gift and road map
to success for anyone who's ever had a dream."
Strategy and Business Magazine chose Mommy Millionaire
as one of the best business books of the year: "Kim
Lavine's memoir-cum?business-primer breaks new ground
in the crowded field of startup sagas. By seamlessly
blending the epiphanies that she gained through
launching a business with practical lessons, Lavine
has packaged a core set of new-venture tenets into
something fresh and relevant."
LinkedIn Profile: https://www.linkedin.com/in/kim-
lavine-0b595a9/ and http://www.kimlavine.com
Experience
FOUNDER / CEO
HEUGENIS INC; Jan 2018 ? Present
PARTNER / CFO
SENSORY PERFORMANCE TECHNOLOGY; June 2015 ? Dec 2017
Mission: To give the world technology that changes the
possibility of human performance. Sensory Performance
Technology, Inc, is a research and development tech
company producing innovative and patent-pending
wearable tech product solutions to athletes, consumer,
military, law enforcement and medical industries
worldwide.
Kim Lavine spent three years developing a go-to-market
strategy for stroboscopic therapy as Partner/CFO of
Sensory Technology Inc. During her tenure at Sensory
Technology, the company?s stroboscopic technology was
enthusiastically embraced by celebrity athletes
including NBA MVP Steph Curry, as documented in major
media outlets including ESPN, where it was recognized
as an ?Idea of the Year: a look at the people, moves
and moments that changed sports.? Mr. Curry?s use of
Sensory Technology?s stroboscopic technology was also
referenced in the magazine GQ, in an article titled
?How Steph Curry became the NBA?s Best Player.? In
Digital Trends, it was reported that Mr. Curry was
seen working out in practice wearing Sensory
Technology?s stroboscopic goggles, ?designed to
enhance reaction time and visual awareness.? NFL
Tight End and Superbowl champion Tim Wright publicly
credited on Twitter Sensory Technology?s stroboscopic
goggles for ?designing the future? of sports.
ESPN cited Mr. Curry?s use of Sensory Technology?s
stroboscopic goggles in an article titled ?How do
Kawhi Leonard -- and Steph Curry -- train their
brains? Strobe lights (yes, really),? in November of
2016, The article quotes: ?Steph Curry embarked upon
stroboscopic sensory training after the 2014-15
season. The result? An increase of 116 made 3-pointers
and the league's first unanimous MVP.?
During Kim Lavine?s tenure at Sensory Technology, the
company was approached by a surgeon from one of
America?s leading research hospitals about their
interest in conducting a clinical trial with the
premise that stroboscopic technology could improve
cognitive and fine-motor reflexes of surgeons.
PRINCIPAL & FOUNDER
MOMMY MILLIONAIRE MEDIA; Jan 2009 ? Present
Founded by critically-acclaimed bestselling business
author Kim Lavine, MM MEDIA is an integrated
multimedia marketing company bringing together world-
class award-winning creative talent with cutting-edge
engagement and distribution strategies to create
ground-breaking formats around historic events.
In January of 2009, Lavine was called upon by Michigan
Governor Jennifer Granholm to design an
entrepreneurial initiative around the Governor's
women's agenda. Lavine and her team worked with the
best representatives of Michigan's public and private
sectors including the Michigan Women's Commission, the
Michigan Women's Foundation, and Terry Cross, Founder
of the Michigan Venture Capital Association, Great
Lakes Angels, and Automation Alley's Entrepreneurial
Initiative of Southeast Michigan. Called Connecting to
Success, the ambitious and innovative program's
mission was to leverage historic economic and social
influence of today's women to gain access to the
capital and resources necessary to start and grow
successful businesses, creating economic opportunity
for all.
Using her personal connections with private equity
leaders in Michigan, Lavine raised $100 million in
commitments from Angels and VC in exchange for her
promise to personally vet and present "money-ready"
women entrepreneurs. The program costs of $1.8 million
were greenlit by the Michigan Economic Development
Commission at the same time the Great Recession was
creating catastrophic budget shortfalls for states
dealing with historic levels of unemployment,
foreclosures and corporate bankruptcies and bail-outs.
Though MM MEDIA spent 18 months of time, talent and
resources building this landmark program it did not
get funded as a result of the budget crisis.
With the model for her most important mission ever
proven with the spectacular success of this very
small-scale experiment, Kim Lavine resolved to "Think
Huge" in making her dream of holding a Private Equity
Summit a reality. Within months she had $100 million
in commitments from investors, with A-Level meetings
with Fortune 100 companies, who all wanted to learn
more about how they could join her in her historic
mission. In 2011 MM MEDIA evolved into an integrated
multimedia marketing company bringing together world-
class award-winning creative talent with cutting-edge
engagement and distribution strategies to create
ground?breaking formats around historic events. After
recruiting world-class talent, MM MEDIA developed its
first groundbreaking project, THE NEXT BIG DREAM:
Millions Will Compete and Millions Will Win ...
Millions.
FOUNDER & PRESIDENT
GREEN DAISY; Jan 2002 ? Dec 2008
The story of Green Daisy is documented in Kim Lavine?s
critically acclaimed bestselling business saga MOMMY
MILLIONAIRE. Starting with a product Ms. Lavine made
at her kitchen table called the WUVIT, she took
successful products, including a line of designer
pajamas, into almost every retailer in America in just
a matter of years, raising capital from world-class
investors with a company valuation of almost $10
million.
In 2002, after her husband lost his job, Lavine took
her kitchen table idea, the WUVIT(registered
trademark) a designer spa therapy pillow you heat in
the microwave - to $225,000 in sales in just 8 weeks.
She followed up by designing a kid's Wuvit, called
SleepyHead Fred (tm), recognized by the Atlanta
Journal Constitution as a "Top 5 Gift Pick," and a
partnership with WAVERLY, the nation's premiere
manufacturer of home fabrics, designing the nation?s
first fabric featuring a pink ribbon motif celebrating
breast cancer awareness, titled ?Faith, Hope and
Love.? In 2004, Lavine rolled the Wuvit product out to
250 Saks Inc stores in just 4 months, quickly followed
by Macy's, Gottschalks, Von Maur, Bed Bath & Beyond,
Whole Foods, and Tabi International, a 90-store chain
in Canada, taking her kitchen table idea to millions
in sales, earning a nomination as an Ernst & Young
Entrepreneur of the Year. In 2004, Lavine was granted
a license by the Collegiate Licensing Company to apply
collegiate logos to her Wuvits, marking Green Daisy's
entry into the $3 billion a year collegiate market.
She accomplished these feats of design, sales,
manufacturing and distribution with little more than
determination, the equity in her home and personal
savings.
In 2006, Lavine realized that if she was going to take
her successful product lines into greater distribution
she was going to need to raise serious capital.
Without any former business experience and no business
degree, Lavine penetrated the exclusive world of
private equity, successfully raising angel capital and
recruiting world-class management to work for her
company. That same year Lavine and her team
researched, sourced and oversaw the design and
overseas manufacturing of Green Daisy's line of
designer pajamas, which debuted at Saks, Inc and
Gottschalks, racking up record sell-throughs at Saks
Inc and earning a prestigious spot in their sales
circular, featured next to premiere brands like
Chanel, Oscar De La Renta, and Betsey Johnson. With
another winning product line in the marketplace, Green
Daisy's board of directors gave Lavine and her
creative team a mandate to expand the company from its
beginning as a manufacturer of a single product into a
true lifestyle brand, focused on BALANCING LIFE WITH
LOVE. Within a year, Green Daisy had designed,
developed and launched a home decor line in New York's
premiere showplace for home textiles on Fifth Avenue,
offering consumers bedding collections featuring a
youthful modern aesthetic, with a mission to bring
extraordinary design within reach of the everyday
consumer. Just months after beginning the transition
of her company from the kitchen table to the
boardroom, Green Daisy was valued by an expert in the
private equity market at just under $9 million.
CRAIG TIGGLEMAN ? ADVISOR
Craig Tiggleman is the Chairman, CEO, and Co-Owner of
his family?s dynamic and successful third generation
business. He has led the 86-year-old entity for over
20 years, navigating through numerous acquisitions,
the sales of major divisions, and repositioning
through the Great Recession. He brings skills in
leadership, fiscal management, sales, and contract
negotiations.
Mr. Tiggleman has been involved with numerous startups
in services, investment real estate, and technology.
He also helped initiate, and continues to lead and
advise, urban education, arts, and addiction treatment
organizations. He is eager for the opportunity to
offer his expertise to such an exciting business with
a meaningful purpose of helping those suffering with
Alzheimer?s Disease.
As Advisor, Mr. Tiggleman will play a critical role in
guiding business development, strategy, capitalization
and possible acquisition. He will be physically
located in the Company?s home office in Grand Rapids,
Michigan and is expected to initially contribute a
minimum of 20 hours per month towards his duties.
Experience
CEO / OWNER
CANTEEN SERVICES, Inc; November 1991 ? Present
Since 1932, the Tiggleman family has provided its
customers with superior food and service. Over the
course of this time, Tigg's Canteen Services has
evolved from selling penny peanuts to being a major
provider of food and commissary services to county
jails, elderly nutrition programs, half-way houses,
drug rehabilitation centers, and other at-risk
population centers. They offer the latest innovations
in food services, technology and equipment. They serve
approximately 600,000 meals a month and do so at the
highest levels of service and integrity.
?
COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS
The Company currently has no employees and all
functions have heretofore been performed by the
Founder and Advisor. For the fiscal year 2018 to date,
no compensation was paid; therefore there are no
highest-paid officers.
COMPENSATION OF DIRECTORS
We do not compensate our directors for attendance at
meetings. We reimburse our officers and directors for
reasonable expenses incurred during the course of
their performance. We have no long-term incentive
plans.
?
INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN
TRANSACTIONS
At this time, there are currently no related party
transactions.
FUTURE TRANSACTIONS
Pursuant to the Company?s bylaws, all future
affiliated transactions will be made or entered into
on terms that are no less favorable to us than those
that can be obtained from any unaffiliated third
party. A majority of the independent, disinterested
members of our board of directors will approve future
affiliated transactions, and we will maintain at least
two independent directors on our board of directors to
review all material transactions with affiliates.?
OWNERSHIP
A total of 3 Preferred Shareholders currently hold the
1,290 issued shares.
Currently there are no Class A Common or Class B
Common shares issued.?
SECURITIES BEING OFFERED
We are selling a maximum of 625,000 Shares of Class A
Common Stock. The Corporation is authorized to issue a
total of 15,505,000 shares of capital stock, divided
into classes as follows: (i) 10,000,000 shares of
Class A Common Stock, $0.00001 par value per share
("Class A Common Stock"), (ii) 5,000,000 shares of
Class B Common Stock, $0.00001 par value per share
("Class B Common Stock"), (iii) 500,000 shares of
Class C Common Stock, $0.00001 par value per share
("Class C Common Stock"), and (iii) 5,000 shares of
Preferred Stock, $0.00001 par value per share
("Preferred Stock"). As of June 15, 2018, 1,390
Series A of Preferred Stock and 500,000 shares of
Class C Common Stock are issued and outstanding.
The Company has engaged Sageworks Capital, LLC as its
broker-dealer to assist in the placement of its
securities. Sageworks Capital, LLC under no obligation
to purchase any securities or arrange for the sale of
any specific number or dollar amount of securities. As
compensation for these efforts, the Company will pay
Sageworks Capital, LLC a one-time set up fee of
$10,000 and 100 basis points on the aggregate amount
raised by the Company from investors. The following is
a summary of the rights of our capital stock as
provided in our Articles of Incorporation and Bylaws.
For more detailed information, please see our Articles
of Incorporation and Bylaws, which have been filed as
exhibits to the Offering Statement of which this
Offering Circular is a part.
Common Stock
The voting, dividend and liquidation rights of the
holders of the Common Stock are subject to and
qualified by the rights, powers and preferences of the
holders of the Preferred Stock set forth herein. A
statement of the designations of each class of Common
Stock and the powers, preferences and rights and
qualifications, limitations or restrictions thereof is
as follows:
VOTING RIGHTS. Except as otherwise provided or by
applicable law, the Class A Common Stock will have no
voting rights and no holder thereof shall be entitled
to vote on any matter. Each holder of shares of Class
B Common Stock will be entitled to one vote for each
share thereof held at the record date for the
determination of the stockholders entitled to vote on
such matters or, if no such record date is
established, the date such vote is taken or any
written consent of stockholders is solicited. Each
holder of shares of Class C Common Stock will be
entitled to ten (10) votes for each share thereof held
at the record date for the determination of the
stockholders entitled to vote on such matters or, if
no such record date is established, the date such vote
is taken or any written consent of stockholders is
solicited. Except as otherwise expressly provided
herein or as required by law, the holders of Class A
Common Stock (to the extent any provision of
applicable law grants such holders any voting rights),
Class B Common Stock and Class C Common Stock will
vote together and not as separate series or classes.
DIVIDENDS. Subject to the preferences applicable to
any series of Preferred Stock, if any, outstanding at
any time, the holders of Class A Common Stock, the
holders of Class B Common Stock, and the holders of
Class C Common Stock shall be entitled to share
equally, on a per share basis, in such dividends and
other distributions of cash, property or shares of
stock of the Corporation as may be declared by the
Board from time to time with respect to the Common
Stock out of assets or funds of the Corporation
legally available therefor; provided, however, that in
the event that such dividend is paid in the form of
shares of Common Stock or rights to acquire Common
Stock, the holders of Class A Common Stock shall
receive Class A Common Stock or rights to acquire
Class A Common Stock, as the case may be, the holders
of Class B Common Stock shall receive Class B Common
Stock or rights to acquire Class B Common Stock, as
the case may be, and the holders of Class C Common
Stock shall receive Class C Common Stock or rights to
acquire Class C Common Stock.
LIQUIDATION RIGHTS. In the event of any voluntary or
involuntary liquidation, dissolution, or winding up of
the affairs of the Corporation, subject to the rights
of any Preferred Stock that may then be outstanding,
the holders of Class A Common Stock, the holders of
Class B Common Stock, and the holders of Class C
Common Stock shall be entitled to share equally, on a
per share basis, in the assets of the Corporation
legally available for distribution to stockholders.
Preferred Stock
Five thousand shares of the authorized Preferred Stock
of the Company are designated "Series A Preferred
Stock" with the following rights, preferences, powers,
privileges and restrictions, qualifications and
limitations, as defined in Article V of the Company?s
Restated Articles of Incorporation.
CONVERSION RIGHTS. The holders of the Series A
Preferred Stock shall have conversion rights as
follows (the "Conversion Rights"):
Conversion Ratio. Each share of Series A
Preferred Stock shall be convertible, at the
option of the holder thereof, at any time and
from time to time, and without the payment of
additional consideration by the holder thereof,
into such number of fully paid and non-assessable
shares of Class B Common Stock as is determined
by dividing the Series A Original Issue Price by
the Series A Conversion Price (as defined below)
in effect at the time of conversion. The "Series
A Conversion Price" shall initially be equal to
One Dollar ($1.00). Such initial Series A
Conversion Price, and the rate at which shares of
Series A Preferred Stock may be converted into
shares of Class B Common Stock, shall be subject
to adjustment as follows: If the Corporation at
any time subdivides (by any stock split, stock
dividend, recapitalization, or otherwise) its
outstanding shares of Common Stock into a greater
number of shares, the Series A Conversion Price
in effect immediately prior to such subdivision
will be proportionately reduced and the number of
shares of Common Stock obtainable upon conversion
of the Series A Preferred Stock will be
proportionately increased. If the Corporation at
any time combines (by combination, reverse stock
split, or otherwise) its outstanding shares of
Common Stock into a smaller number of shares, the
Series A Conversion Price in effect immediately
prior to such combination will be proportionately
increased and the number of shares of Common
Stock obtainable upon conversion of the Series A
Preferred Stock will be proportionately
decreased.
VOTING: On any matter presented to the stockholders of
the Company for their action or consideration at any
meeting of stockholders of the Company (or by written
consent of stockholders in lieu of meeting), each
holder of outstanding shares of Series A Preferred
Stock will be entitled to cast the number of votes
equal to the number of whole shares of Class B Common
Stock into which the shares of Series A Preferred
Stock held by such holder are convertible as of the
record date for determining stockholders entitled to
vote on such matter. Except as provided by law or by
the other provisions of the Restated Articles of
Incorporation, holders of Series A Preferred Stock
shall vote together with the holders of Common Stock
as a single class.
DIVIDENDS: From and after the date of the issuance of
any shares of Series A Preferred Stock, dividends at
the rate per annum of 8 percent (8percent) per share
shall accrue on such shares of Series A Preferred
Stock (subject to appropriate adjustment in the event
of any stock dividend, stock split, combination or
other similar recapitalization with respect to the
Series A Preferred Stock) (the ?Accruing Dividends?).
Accruing Dividends shall accrue from day to day,
whether or not declared, and shall be cumulative.
Accruing Dividends shall be payable only when, as, and
if declared by the Board of Directors and the Company
shall be under no obligation to pay such Accruing
Dividends. The Company shall not declare, pay or set
aside any dividends on shares of any other class or
series of capital stock of the Company (other than
dividends on shares of Common Stock payable in shares
of Common Stock) unless (in addition to the obtaining
of any consents required elsewhere in the Articles of
Incorporation) the holders of the Series A Preferred
Stock then outstanding shall first receive, or
simultaneously receive, a dividend on each outstanding
share of Series A Preferred Stock in an amount at
least equal to the greater of (i) the amount of the
aggregate Accruing Dividends then accrued on such
share of Series A Preferred Stock and not previously
paid and (ii) (A) in the case of a dividend on Common
Stock or any class or series that is convertible into
Common Stock, that dividend per share of Series A
Preferred Stock as would equal the product of (1) the
dividend payable on each share of such class or series
determined, if applicable, as if all shares of such
class or series had been converted into Common Stock
and (2) the number of shares of Common Stock issuable
upon conversion of a share of Series A Preferred
Stock, in each case calculated on the record date for
determination of holders entitled to receive such
dividend or (B) in the case of a dividend on any class
or series that is not convertible into Common Stock,
at a rate per share of Series A Preferred Stock
determined by (1) dividing the amount of the dividend
payable on each share of such class or series of
capital stock by the original issuance price of such
class or series of capital stock (subject to
appropriate adjustment in the event of any stock
dividend, stock split, combination or other similar
recapitalization with respect to such class or series)
and (2) multiplying such fraction by an amount equal
to the Series A Original Issue Price (as defined
below); provided that if the Company declares, pays or
sets aside, on the same date, a dividend on shares of
more than one class or series of capital stock of the
Company, the dividend payable to the holders of Series
A Preferred Stock pursuant to this Section 1 shall be
calculated based upon the dividend on the class or
series of capital stock that would result in the
highest Series A Preferred Stock dividend. The
?Series A Original Issue Price? shall mean Two
Thousand Five Hundred ($2,500) per share, subject to
appropriate adjustment in the event of any stock
dividend, stock split, combination or other similar
recapitalization with respect to the Series A
Preferred Stock.
LIQUIDATION, DISSOLUTION OR WINDING UP; CERTAIN
MERGERS, CONSOLIDATIONS AND ASSET SALES: Preferential
Payments to Holders of Series A Preferred Stock. In
the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company or Deemed
Liquidation Event, the holders of shares of Series A
Preferred Stock then outstanding shall be entitled to
be paid out of the assets of the Company available for
distribution to its stockholders before any payment
shall be made to the holders of Common Stock by reason
of their ownership thereof, an amount per share equal
to the greater of (i) the Series A Original Issue
Price, plus any dividends declared but unpaid thereon,
or (ii) such amount per share as would have been
payable had all shares of Series A Preferred Stock
been converted into Common Stock pursuant to Section 4
immediately prior to such liquidation, dissolution,
winding up or Deemed Liquidation Event (the amount
payable pursuant to this sentence is hereinafter
referred to as the ?Series A Liquidation Amount?).
Our board of directors is authorized by our Articles
of Incorporation to establish classes or series of
preferred stock and fix the designation, powers,
preferences and rights of the shares of each such
class or series and the qualifications, limitations or
restrictions thereof without any further vote or
action by our shareholders. Any shares of preferred
stock so issued would have priority over our common
stock with respect to dividend or liquidation rights.
Any future issuance of preferred stock may have the
effect of delaying, deferring or preventing a change
in our control without further action by our
shareholders and may adversely affect the voting and
other rights of the holders of our common stock. At
present we have no plans to issue any additional
shares of preferred stock or to adopt any new series,
preferences or other classification of preferred
stock.
The issuance of shares of preferred stock, or the
issuance of rights to purchase such shares, could be
used to discourage an unsolicited acquisition
proposal. For instance, the issuance of a series of
preferred stock might impede a business combination by
including class voting rights that would enable a
holder to block such a transaction. In addition, under
certain circumstances, the issuance of preferred stock
could adversely affect the voting power of holders of
our common stock. Although our board of directors is
required to make any determination to issue preferred
stock based on its judgment as to the best interests
of our shareholders, our board could act in a manner
that would discourage an acquisition attempt or other
transaction that some, or a majority, of our
shareholders might believe to be in their best
interests or in which such shareholders might receive
a premium for their stock over the then market price
of such stock. Our board presently does not intend to
seek shareholder approval prior to the issuance of
currently authorized stock, unless otherwise required
by law or applicable stock exchange rules.
CERTAIN ANTI-TAKEOVER EFFECTS
GENERAL. Certain provisions of our Articles of
Incorporation, our bylaws, and Delaware law may have
an anti-takeover effect and may delay or prevent a
tender offer or other acquisition transaction that a
shareholder might consider to be in his or her best
interest. The summary of the provisions of our
articles, bylaws and Delaware law set forth below does
not purport to be complete and is qualified in its
entirety by reference to our articles, bylaws and
Delaware law.
SPECIAL MEETINGS OF SHAREHOLDERS. Our bylaws provide
that, except as required by law, special meetings of
shareholders may be called by a majority of our Board
of Directors, the Chairman of the Board, the
President, or shareholders who hold in the aggregate
at least 25percent of the voting power of the
outstanding capital stock of the Company (?Requesting
Shareholders?). Requesting Shareholders must meet
certain qualifications and must submit a written
request to our Corporate Secretary, containing the
information required by our bylaws. A request for a
special meeting made by Requesting Shareholders may be
rejected if (1) a meeting of shareholders that
included an identical or substantially similar item of
business, as determined in good faith by our Board of
Directors, was held not more than 90 days before our
Corporate Secretary received the request; (2) our
Board of Directors has called or calls for a meeting
of shareholders to be held within 90 days after our
Corporate Secretary receives the request and our Board
of Directors determines in good faith that the
business to be conducted at such meeting includes
similar business to that stated in the request; or (3)
the request relates to an item of business that is not
a proper subject for shareholder action under, or
involves a violation of, applicable law.
SHAREHOLDER PROPOSALS AND DIRECTOR NOMINATIONS. A
shareholder can submit shareholder proposals and
nominate candidates for election to our Board of
Directors in connection with our annual meeting if he
or she follows the advance notice and other relevant
provisions set forth in our bylaws. With respect to
director nominations at an annual meeting,
shareholders must submit written notice to our
Corporate Secretary at least 180 days prior to the
date of the meeting. With respect to shareholder
proposals to bring other business before the annual
meeting, shareholders must submit a written notice to
our Corporate Secretary not fewer than 90 nor more
than 120 days prior to the first anniversary of the
date of our previous year?s annual meeting of
shareholders. However, if we have changed the date of
the annual meeting by more than 30 days from the
anniversary date of the previous year?s annual
meeting, the written notice must be submitted no
earlier than 120 days before the annual meeting and
not later than 90 days before the annual meeting or
ten days after the day we make public the date of the
annual meeting.
A shareholder must also comply with all applicable
laws in proposing business to be conducted and in
nominating directors. The notice provisions of the
bylaws do not affect rights of shareholders to request
inclusion of proposals in our proxy statement pursuant
to Rule 14a-8 of the Exchange Act.
AMENDMENT TO ARTICLES OF INCORPORATION AND BYLAWS.
Both the Board of Directors and the shareholders must
approve amendments to the Company?s Articles of
Incorporation, except that the Board of Directors may
adopt specified ministerial amendments without
shareholder approval. Unless the articles of
incorporation, Delaware law or the Board of Directors
would require a different quorum, the vote required by
each voting group allowed or required to vote on the
amendment would be:
* a majority of the votes entitled to be cast by
the voting group, if the amendment would create
dissenters? rights for that voting group; and
* in any other case, if a quorum is present in
person or by proxy consisting of a majority of
the votes entitled to be cast on the matter by
the voting group, the votes cast by the voting
group in favor of the amendment must exceed the
votes cast against the amendment by the voting
group.
The Board of Directors may amend or repeal the
Company?s bylaws unless either: (1) the articles or
applicable law reserves this power exclusively to
shareholders in whole or in part or (2) the
shareholders in amending or repealing a particular
bylaws provide expressly that the Board may not amend
or repeal that bylaw. Our bylaws may not be amended or
repealed without the vote of a majority of the Board
of Directors then in office or the affirmative vote of
a majority of votes cast on the matter at a meeting of
shareholders.
TRANSFER AGENT AND REGISTRAR
VStock Transfer, LLC, 18 Lafayette Place, Woodmere,
New York 11598 is the transfer agent and registrant
for our common stock.
DETERMINATION OF OFFERING PRICE
Since our shares are not listed or quoted on any
exchange or quotation system, the offering price of
the shares of common stock was determined by us using
best estimates and is based on our own assessment of
our financial condition and prospects, limited
offering history, and the general condition of the
securities market. It does not necessarily bear any
relationship to our book value, assets, past operating
results, financial condition or any other established
criteria of value. Although our common stock is not
listed on a public exchange, we intend to seek a
quotation on the Over the Counter Marketplace as soon
as possible following closing of this Offering. To be
quoted on the OTCQX, a market maker must file an
application on our behalf to make a market for our
common stock. That may take several months.
There is no assurance that our common stock will trade
at market prices in excess of offering price in this
offering, as prices for the common stock in any public
market which may develop will be determined in the
marketplace and may be influenced by many factors,
including the depth and liquidity of the market for
the common stock, investor perception of us and
general economic and market conditions.
?
PLAN OF DISTRIBUTION
We are offering a maximum of 625,000 shares of Class A
Common Stock on a ?best efforts? basis
The Company has engaged Sageworks Capital LLC as its
broker-dealer to assist in the placement of its
securities. Sageworks Capital LLC under no obligation
to purchase any securities or arrange for the sale of
any specific number or dollar amount of securities.
INVESTMENT FEE ON SALES OF SECURITIES
Sageworks Capital, LLC will act as a referring broker-
dealer, in which all sales will be placed through the
efforts of Sageworks Capital, LLC. As compensation for
these efforts, the company will pay Sageworks Capital.
LLC a one-time set up fee of $10,000 and 100 basis
points on the aggregate amount raised by the company
from investors.
The www.heugenis.com website will be the exclusive
means by which prospective investors may subscribe in
this offering. In order to subscribe to purchase the
shares, a prospective investor must complete a
subscription agreement and send payment by credit
card, wire transfer or ACH. Investors must answer
certain questions to determine compliance with the
investment limitation set forth in Regulation A Rule
251(d)(2)(i)(C) under the Securities Act of 1933,
which states that in offerings such as this one, where
the securities will not be listed on a registered
national securities exchange upon qualification, the
aggregate purchase price to be paid by the investor
for the securities cannot exceed 10percent of the
greater of the investor?s annual income or net worth.
In the case of an investor who is not a natural
person, revenues or net assets for the investor?s most
recently completed fiscal year are used instead.
Heugenis employees are assisting with preparing the
materials sent via email to persons who have submitted
non-binding indications of interest and posted on
Heugenis websites. They do not have direct telephone,
email exchanges or other contact with persons
interested in purchasing the offered securities,
except to gather additional information or
clarification from persons who have subscribed to
purchase securities on the www.heugenis.com website.
?
APPENDIX
FINANCIAL STATEMENTS
?
?
NOTES TO THE FINANCIAL STATEMENTS
?
?
?
EXHIBITS
1. Exhibit 1: BD Agreement Heugenis Inc
2. Exhibit 2.1: State of Delaware Certificate of
Incorporation
3. Exhibit 2.2: Bylaws
4. Exhibit 3: Shareholders Agreement for Heugenis
Inc
5. Exhibit 4: Subscription Agreement
6. Exhibit 11: Auditor?s Consent
7. Exhibit 12: Opinion Letter
?
SIGNATURE PAGE
Pursuant to the requirements of Regulation A, the
issuer certifies that it has reasonable grounds to
believe that it meets all of the requirements for
filing on Form 1-A and has duly caused this offering
statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of
Grand Rapids, State of Michigan on October 1, 2018.
/s/ HEUGENIS INC
By Kim Lavine, CEO and Chairman of the Board
This offering statement has been signed by the
following persons in the capacities and on the dates
indicated.
/s/ Kim Lavine, CEO & Chairman of the Board
October 1, 2018
?
Does not include any warrants to purchase stock at a
later date.
https://www.alz.org/documents_custom/2017-facts-and-
figures.pdf
Miller SC, Lima JC, Looze J, Mitchell SL. Dying in
U.S. nursing homes with advanced dementia: How does
health care use differ for residents with, versus
without, end-of-life Medicare skilled nursing facility
care? J Palliat Med 2012;15:43-50.
Alzheimer?s Association,
http://www.alz.org/braintour/3_main_parts.asp.
Alzheimer?s Association. 2017 Alzheimer?s Disease
Facts and Figures. Alzheimer?s Dement 2017;13:325-373.
https://www.nytimes.com/2016/11/23/health/eli-
lillys-experimental-alzheimers-drug-failed-in-large-
trial.html
http://www.prnewswire.com/news-releases/axovant-
announces-negative-topline-results-of-intepirdine-
phase-3-mindset-trial-in-alzheimersdisease-
https://www.medicinenet.com/script/main/art.asp?articl
ekey=9877
https://www.nature.com/articles/540207a
https://www.theguardian.com/science/2016/dec/07/strobe
-lighting-provides-a-flicker-of-hope-in-the-fight-
against-alzheimers#comments
https://www.emergogroup.com/resources/research/fda-
510k-review-times-research
Nature Journal 540, 207?208 (08 December 2016)|
Article; Gamma frequency entrainment attenuates
amyloid load and modifies microglia; Hannah F.
Iaccarino, Annabelle C. Singer[?]Li-Huei Tsai;
Subjects: Alzheimer's disease, Immunology,
Neurodegeneration; DOI 10.1038/540207a; Published
online 07 December 2016
https://www.emergogroup.com/resources/research/fda-
510k-review-times-research
https://www.theguardian.com/science/2016/dec/07/strobe
-lighting-provides-a-flicker-of-hope-in-the-fight-
against-alzheimers#comments
New Scientist (May 19, 2006).? Flashy Goggles Combat
Space Sickness.? Retrieved from
https://www.newscientist.com/article/dn9196-flashy-
goggles-combat-space-sickness/
Reschke MF1, Somers JT, Ford G. ?Stroboscopic
Vision as a Treatment for Motion Sickness: Strobe
Lighting Vs. Shutter Glasses.
? Neurosciences Laboratories, NASA Johnson Space
Center, Houston, TX, USA. millard.f.reschke@nasa.gov
Retrieved from
http://www.ncbi.nlm.nih.gov/pubmed/16422446
Jack A. Adams, ?A Closed-Loop Theory of Motor
Learning,? Journal of Motor Behavior, 1971, 3, pages
111-149
Howard Thorsheim et al, ?Visual and Kinesthetic
Components of Pursuit-Tracking Performance,? 1973,
pages 6-7
M. Russell Harter, Robert Eason, Carroll White,
?Effects of Intermittent Visual Input Disruption,
Flicker-Rate, and Work Time on Tracking Performance
and Activation Level,? Perceptual and Motor Skills,
1964, 19, page 832
Harter et al, page 840
Jocelyn Faubert, ?Professional athletes have
extraordinary skills for rapidly learning complex and
neutral dynamic visual scenes,? Nature Scientific
Reports, January 2013, 3:1154, DOI: 10.1038/srep01154
M. J. Haskins, ?Development of a Response-
Recognition Training Film In Tennis,? Perceptual and
Motor Skills, 1965 August; 21 (1), pages 207-211
W. A. Burroughs, ?Visual simulation training of
baseball batters,? International Journal of Sports
Psychology, 1984, Vol 15, pages 117-126
A. M. Williams, P. Ward, J. Knowles and N.J.
Smeeton, ?Anticipation skill in a real-world task:
Measurement, training, and transfer in tennis,?
Journal of Experimental Psychology: Applied, 2002
8(4), pages 259-270
A. M. Williams, P. Ward, and C. Chapman, ?Training
perceptual skill in field hockey: Is there transfer
from the laboratory to the field?? Research Quarterly
for Exercise and Sport, 2003 74(1), pages 98-103
Tim Newcomb, ?Visions of Perfection,? Sports
Illustrated, 9 January 2012
?Florida Jr. Blades: Empire team celebrates
reaching 100-win milestone?, USA Junior Hockey
Magazine, 27 January 2013
L. Gregory Appelbaum, Julia E. Schroeder, Matthew
S. Cain and Stephen R. Mitroff, ?Improved visual
cognition through stroboscopic training,? Frontiers in
Psychology, 2:276, 28 October 2011
Appelbaum et all, page 11
Sports Illustrated (April 13, 2015). ?Seeing the
Benefit: MLB Teams Focus On Enhancing Players' Visual
Training.? Retrieved from
http://www.si.com/edge/2015/04/21/seeing-the-benefit-
mlb-vision-training-tampa-bay-rays
Athletic Training & Sport Health (Nov/Dec 2013).
?Strobe Glasses Improve Hockey Players' Performance,"
Stephen R. Mitroff, Peter Friesen, Doug Bennett, Herb
Yoo, Alan W. Reichow., Nov/Dec, 2013. Retrieved from
http://www.healio.com/orthopedics/journals/atshc/2013-
11-5-6/percent7B9cf36fe8-9769-4909-acae-
5419d69ab6b5percent7D/enhancing-ice-hockey-skills-
through-stroboscopic-visual-training-a-pilot-study
Time Magazine (January 2012). Tim Newcomb.
?Sensory Training Technology Takes Hold in the NFL.?
Retrieved from
http://techland.time.com/2012/01/03/sensory-training-
technology-takes-hold-in-the-nfl/
Attention, Perception, & Psychophysics (November
2012). L. Gregory Appelbaum & Matthew S. Cain Julia E.
Schroeder & Elise F. Darling & Stephen R. Mitroff.
?Stroboscopic Visual Training Improves Information
Encoding In Short-Term Memory.? Retrieved from
http://link.springer.com/article/10.3758percent2Fs1341
4-012-0344-6
https://www.alz.org/documents_custom/2017-facts-
and-figures.pdf
ibid
https://www.forbes.com/sites/nextavenue/2017/03/07/cos
ts-exploding-for-alzheimers-and-other-
dementias/#28c2bcf11570; https://www.alz.org/facts/
https://www.statista.com/statistics/643072/alzheimers-
medicare-medicaid-care-costs-us/
http://www.openpr.com/news/504634/Wearable-
Medical-Device-Market-worth-12-14-Billion-USD-by-
2021.html
ibid
https://www.recode.net/2015/5/19/11562770/is-the-
wearable-health-movement-sustainable
ibid
CCS Insight?s Wearables Forecast, Worldwide, 2015-
2019.
http://www.prnewswire.com/news-releases/global-
smart-wearables-market-2017-2021-smart-wearables-is-
projected-to-cross-us-30-billion-with-kids-and-pets-
wearables-likely-to-cross-1-billion---research-and-
markets-300394121.html
http://www.Cognitotx.com
https://www.salon.com/2017/12/13/brain-wave-
treatment-for-alzheimers-is-promising-but-the-first-
human-subject-is-left-behind_partner/
https://www.crunchbase.com/organization/senaptec#/enti
ty
https://www.alz.org/join_the_cause_prescription_drugs.
asp
https://www.fool.com/investing/general/2015/04/04/the-
truly-staggering-cost-of-alzheimers-disease.aspx
https://www.gq.com/story/steph-curry-nba-best-player
https://twitter.com/tim_wright81/status/66462790107411
6608
http://www.espn.com/blog/truehoop/post/_/id/74617/how-
do-kawhi-leonard-and-steph-curry-train-their-brains-
strobe-lights-yes-really
raiYou add this on qualification
We are finalizing this currently and will update asap.
1
1