KEY HIGHLIGHTS

The Huygens™ Catheter

• • The first Electrophysiology (EP) catheter to bring all the processing of bio-detection and processing into a micro-miniaturized control system contained in the catheter tip.
  • This proximal-end processing translates to a 200x increase in signal fidelity and image resolution.
  • Nine active mapping electrodes in the tip provide a dramatic increase in field sampling of bioelectric signals necessary for accurate tissue mapping.
  • Advanced signal processing allows for enhanced bio-based energetic events capture by relating the inherent characteristics of time, magnitude, and direction into correlated data points that are used to create a high-resolution map.
  • All processing including, signal amplification, analog to digital signal conversion, noise reduction processing, far-field signal elimination, and data computation are managed here before being sent by optical fiber back to the mapping station.

The Proteus Robotic Arm™

• • • A portable bench-top technology that brings robotic-assisted guidance to catheter navigation inside the dynamic environment of the human body.
    • Precision control of a catheter to a ± 2mm degree of movement.
    • Complete directional control on 3 degrees of the axis as well as 360° of deflection rotation.
    • Ability to execute a pre-programmed path of navigation based on EP surgeon’s generated ablation point mapping at the touch of a button.
    • The Proteus Catheter Handle™ can be used with any standard EP catheter to bring the precision control of the Proteus to its operation.
    • The Proteus Catheter Handle™ can also be used manually as a standard catheter navigation handle.
    • Control of the system is handled by the NKC Intelligent Catheter Mapping and Guidance System.
    • A Haptic Control device allows the surgeon dynamic control of the catheter movement with force-feedback signaling responsive to tissue density.

INVESTMENT OVERVIEW

By packaging this startup equity investment within a proven revenue-generating program at PFD Management Opportunity Fund 3001, LLC (PFDMOF3001).

The investor receives:

• 5% annually on invested capital, distributed on a quarterly basis.
• 165% of invested capital back at the end of year 5 ($1.00 gets $1.65 at term)

The internal rate of return is 18% annually

• 5% annually for 5 years is 25%
• 165% at term is an additional 13% annually for 18% IRR

The investor has little else to be concerned with should the exit of this project take longer to exit, or the projected valuation varier from initial projections.

• Upon exit of this portfolio company, the fund will distribute the net proceeds to fund members proportional to their ownership in the fund.

Projected additional equity return:

• The targeted additional return is estimated for a 112% one-time distribution.

PRESENTATION

The NKC Huygens™ Catheter and the Proteus™ Robotic Arm along with the NKC Intelligent Catheter Mapping and Guidance System represent a significant breakthrough in providing Electrophysiology physicians a toolkit that will bring new levels of diagnostic control and information that will enhance their ability to bring a cure to their patients while at the same time saving much of the costs associated with competitive alternatives.

TAKE A LOOK AT THIS PRESENTATION TO SEE WHY THE NKC SMART CATHETER AND ROBOTIC-ASSISTED GUIDANCE SYSTEM WILL HAVE A FUNDAMENTAL POSITIVE IMPACT ON THE ENTIRE FIELD OF ELECTROPHYSIOLOGY

PAIN POINT

Reinventing The Map

The science and art of Electrophysiology have not seen much of a change in the past fifty years. At the core, a surgeon must still push a thin wire by hand into a patient’s body to create a map of their heart to determine where the roadblocks are that are keeping the heart’s electrical signals from getting from point A to point B.

An Accurate Map IS The Key To Achieving Effective Cure

Measuring the electrical biopotential has always been the choke point in heart mapping because the voltages are so small that detecting desired signals from the sea of electrical noise in a hospital room is daunting. It is like trying to map a location to find the road from the ditches, the rocks,  and trees that have fallen, while in a fog as the sun is going down, from an aircraft 10,000 feet above the ground using a pair of binoculars.

How Do You See The Forest From The Trees?

But what if the detection equipment was on the ground, with fog lamps and infrared radar? Now the map becomes something that can better guide the traveler.

This is what the NKC has done. By first creating a mapping system capable of separating the important bio-signals from the noise with 200x more fidelity to create an unprecedented leap in the quality of the map the surgeon has to work with; and then giving him a GPS system that will remember where they have been, where they want to go, and how to get there; all with the push of a button.

The NKC Huygens™ Catheter and the Proteus™ Robotic Arm along with the NKC Intelligent Catheter Mapping and Guidance System bring EP Navigation into the next century…

…and BEYOND

ELEVATOR PITCH

• A first-mover breakthrough in mapping catheter technology that has NO competition.
• A technology capable of increasing the fidelity of EP mapping by 200x.
• A technology that moves a room full of equipment onto a flexible micro-circuit board located at the tip of the catheter to eliminate the signal-to-noise issues that have plagued the EP field for decades.
• A disposable consumable market of $450B and growing
• An intelligent robotic-assisted guidance system that fully integrates the catheter, the surgeon, and the map into a synchronistic navigation ability.
• A price point for a complete technology package that is far lower than any of the competition on the market today.

ADDRESSING THE MARKET

The current Electrophysiology market is $5B and is expected to reach $10.6 billion by 2025 growing at a CAGR of 9.1% from 2020 to 2025(1).

• Atrial Fibrillation (AF) is the most common issue diagnosed in clinical practices accounting for 6.1 million people in 2018. This is estimated to rise to 12.1 million by 2030.
• Global ablation procedure numbers are predicted to grow from 973,220 in 2017 to 1,455,000 per year by 2022; within this category, complex ablations (AF and VT) are expected to increase by 13.5% annually from 440,629 in 2017 to 830,390 in 2022
• Currently, the electrophysiology market is extremely competitive in terms of pricing because of the premium cost associated with products such as cardiac 3D mapping systems, EP recording systems, and the emerging robotic-navigation systems.
• Emerging markets are expected to offer significant growth opportunities for players in the cardiac mapping systems market, mainly due to their increasing patient population, rising adoption of cardiac mapping systems, growing awareness of CVDs, rising disposable incomes, improving healthcare infrastructure, and comparatively lenient guidelines as compared to developed countries.

NKC is poised to be able to make a significant impact in this market based on its key differentials:

1. 1. The Proteus Robotic Arm™ offers an option in the growing robotic guidance sector of EP that not only exceeds the capabilities of existing systems but does so at an entry point cost that is substantively lower than any technology currently on the market.
   2. The Huygens™ Catheter provides the ability to bring a 200x increase in 3D mapping fidelity that will not require any additional dedicated hardware costs.

The Timing and Technology Advance that NKC Brings, May Be A Key Disruptor In The EP Market

SCALABLE BUSINESS MODEL

NKC has set a strategic path for the growth and positioning of its Huygens™ Catheter and the Proteus™ Robotic Arm along with its NKC Intelligent Catheter Mapping and Guidance System technology. The company has finalized its initial proof-of-concept and prototyping phase and is entering into its first clinical trials. Set to complete the initial trials by the third quarter of 2022, the company will then use the data it has gathered to complete its initial regulatory requirements and present the technology for its CE certification. It is anticipated the CE Mark certification will be obtained by the end of the fourth quarter of 2022 at which point the company will be allowed to begin commercialization in the EU.

At this point, NKC will begin its human trial testing for the next phase of regulatory and commercialization purposes. The company plans to perform independent auditing to determine its market valuation once these benchmarks have been achieved. Based on the results, NKC for its exit point; will then begin to consider offers to purchase the technology from the large medical-technology players in this space.

Purchase of the technology from companies such as Medtronic or Johnson and Johnson; will enable the technology to be scaled and marketed to the consumer space on a global scale. These companies have the infrastructure and experience to move the technology into a viable and accepted option for broad-spectrum use in the Electrophysiology field.

COMPETITIVE LANDSCAPE

NKC’s Huygens™ Catheter and the Proteus Robotic Arm along with the NKC Intelligent Catheter Mapping and Guidance System technologies are creating a very dynamic and disruptive breakthrough in the field of Electrophysiology. Its Huygens™ Catheter has NO competition in its space and its projected price point will make it highly competitive with even the existing “Dumb” catheter products currently in use.

The Proteus Robotic Arm™ does have several competitors in its space, but as the information below shows, none of the systems provide the portability, integration with mapping and guidance software, and price-point advantages the system brings to the market.

SKILLED LEADERSHIP TEAM

NKC was founded in 2016 to capitalize on the work of Josh Shachar and his engineering team in their more than a decade and a half of research and development efforts in developing advanced robotic-assisted catheter navigation systems and cutting-edge biosensor technologies. The NKC Executive Management team is comprised of leading individuals in business startup and growth as well as accredited physicians in the electrophysiology and neuroscience fields.

RISK FACTORS

The following is not an exhaustive list of risk factors that may impact the PFDMOF3001 and or this particular portfolio company’s ability to fulfill its goals and/or negatively impact stakeholder value.

In evaluating the PFDMOF3001, the Company itself, and the portfolio company described within these pages and its business, the following risk factors should be considered.