*Market Analytics
The new technology is known as Cone-Beam Computed Tomography (CBCT) or Cone-Beam Volumetric Tomography (CBVT) and is an x-ray imaging approach that provides high resolution 3-dimensional images of the jaws and teeth. CBCT images provide invaluable information that is not contained in conventional 2-dimensional films. The quality of CBCT images is comparable to conventional medical CT scans but at a fraction of the radiation dosage, ensuring that radiation exposure is kept to a minimum.
Cone-Beam CT fulfills a much needed diagnostic imaging need in dentistry. The technology is derived from its medical counterpart, the computed axial tomography, which is one of the most important radiological exams world-wide. While cone-beam CT is very different from medical CT, it also produces 3-dimensional images. Clear advantages of CBCT are its rapid imaging time (under 40 seconds) and its much lower radiation dose compared to medical CT.
According to Millennium Research Group's US Markets for Dental Imaging 2008 report, the benefits associated with dental imaging devices such as dental cone-beam computed tomography (CBCT) and digital X-rays will fuel sales in the overall market. Robust sales will translate into market revenues in excess of $1.4 billion by 2012, representing a compound annual growth rate of over 16% from 2008 to 2012. More adventurous analysts forecast this number to be $2.2 billion in cone beam machine sales.
This Market Trend has several variables that support rapid & sustainable growth. Here's what it comes down to: 1. more dentists are retiring than graduating (this trend is expected to continue as the need for dental care increases (baby boomers, perio/systemic link)) & 2. cone beam imaging offers better clinic care in diagnostics & superior surgergy guided technique solutions.
More Dentists are Retiring than graduating & baby boomers are coming of age ~ for implants that is. This translates into an "out with the old & in with the new" philosophies. This younger generation of Dentists are technology embracers & each of their practices will be booming with the displaced patients from the retiring Dentists. The number one market catalyst for cone beam sales & sales generated by the imaging center is clinical philosophy. As these younger, tech savvyer Dentists unleash their practices on the american public, the average dental practice will increase their average number of referrals for a 3-D image/ month from .08 to 3 by 2010. Additionally, the paradigm has shifted... this new technology will reallocate the concentration of referrals that traditionally come from specialists back into the hands of the younger, tech savvyer, Dental office.
*148,000 (Dentists) x's 3 Cone Beam scans/month yields $90,000,000/month or $1,080,000,000/yr in 3-D scan sales.
Cone Beam Is Better. It offers better diagnostic data & better outcomes in cosmetic dentistry & restorative dentistry. The cosmetic craze (Money is No Object) coupled with a better clinical approach & outcome will continue to support this trend. Dental Implants continue to grow by 25 - 30% annually, Airway assessment need & TMJ is on the steep & the substantiated hype that surrounds the Periodontal disease/Systemic illnesses is finding its way to the masses.
Where The Market Is Going? Advancing Clinical Philosophies, Better Clinical Care & the Cosmetic Connection will drive CBCT machine sales & the sales they genereate for patient scans. This is further evidenced by the number of cone beam machines by manufacturer being brought to market. 2004: 1 CBCT machine. 2005: 1 CBCT machine. 2006: 3 CBCT machines. 2007: 9 CBCT machines.
How The Market Segmentation Looks: Trends & Clincal uses include: Dental Implants 5, Impacted Teeth 3, Temporo-mandibular Joint (TMJ) 5, Oral Pathology 5, Orthodontics 3, Periodontics 5, Airway Assessment 4, Cervical Spine?, Specialized Visualization Technique ?,
*1 is significantly decreasing market. 2 is decreasing market. 3 is a neutral market. 4 is an increasing market. 5 is significantly increasing market.
The Market Drivers. The Customer Profile in Houston/US market with respective per capita potential for Dentists: 3,500/152,000 referring 2 - 3 patients per month. This long tail totals 5,000 to 7,500 potential scans per month in Houston. Periodontists: 8,339 in the US (Perio.Org Stats) are scanning 10 to 120 patients per month. Oral Surgeons: 8,200 in the US are scanning 20 to 80 patients per month. Endodontists, Orthodontists, Plastic Surgeons & ENTs should be considered.
*Vertical Market Analytics: Dentistry
River Oaks Center For Dentistry ~ Houston, TX based company is our business. Here is a snapshot as it relates to our perspective of this market, where we believe it is going & why, and the customer profile.
An Insider's Overview of the Game
All players are winners in this game the market continues double to triple digit annual growth ~ Fortune Phi's: 200% growth, favorable margins in the dental practice, dental laboratory & dental imaging centers (25 - 40%), less than 1% of dentists default on a financial obligation (ADA, 2007) *
Significant barriers to entry limit the pool of player selection ~ no globalization here, 10 yrs of schooling to become a dentist, small business "percieved" risks & no business training, more dentists are retiring than graduating (ADA), shortage of dentists per capita is projected to grow for 5 yrs, the law of supply & demand supports opportunity.
Competition is side-lined ~ all players are winners! the effect that insurance & HMOs on medical practices don't exist in cosmetic dentisty ~ it's elective! the perio/systemic link is now being reviewed by major medical ~ ins. may support, 50% of Americans do not see a dentist on a regular basis, dentists lack business leadership
dentists are the CEOs of their successful multi-million dollar companies ~ despite no business training less than
1% of dentist default on a financial obligation, no big business threat ~ only 2 to 3 organized group practice companies exist
We're changing how the game is played. radical thinking! search engin.uity. clinical philosophy development ~ driving economics. It's good for all stakeholders. vertical market mgmt ~ collaboration, IT construction, innovation ~ vision. research, development & deployment ~ it's aggressive resource allocation planning that puts research & development in position to continually co-create the future of Dentistry ~ see Fortune Phi's Business Plan for Details
3-D Imaging At Full Capacity & Considerations
Both the I-CAT & Galileos Cone Beam have the capacity to produce a full scan every 5 minutes or 12 scans/hour. 130 scans/day x 22 days/month = 2860 scans/month x $300/scan = $858,000/month x 12 = $10,296,000/ yr.
*Economics
Earnings Potential in Months (Houston):
Expenses in Months (Houston):
Lease: $3,200/month (see River Oaks Centre) Equipment: $10,800/month [Cone Beam ($4,500), Computers $ (800), IT Infrastructure (5,000), FF&E (500)]
Cone Beam Support: $800/month
Supplies: $500 - $1,800/month (CDs, IT Infrastructure, Drinks)
Human Capital: $6,000 - $20,000/month [Reception/Scheduler: $20/hr or $3,000/month. Imaging Tech $20/hr or $3,000/month. Sales: Principal $. Profit Share w Investors]
Marketing: $10,000/month (Dinner Events, Sponsorships, PPC, Print Ads, Lunches, PR, Underground Mktg, Speed of Trust Mktg, etx.)
R&D: % of profit (courses to grow market, IT development, expansion, etc.)
Operating Costs & Considerations: $28,000 to $30,000/month x's 6 month is $180,000 for start up.
- 100 scans/ month is the break even (2 - 3 months).
Margins
*First Fiscal Forecast & Growth Opps
2 -3 Dentists/month: referring 5 - 7 scans/month. 0 to 1 Periodontists/month: referring 30 - 50 scans/month. 0 to 1 Oral Surgeons/month: referring 30 - 50 scans/month. 0 to 1 Endodontists/month: referring 10 - 15 scans/month.
Q1 2008 (June - August): $140,000
- margins: 5 - 10% (Jun $17,000 = 50 - 70 scans, Jul $49,500 = 60 - 84 scans, Aug $76,000. )
Q2 (Sept - Nov): $358,000
Q3 (Dec - Feb): $612,000
Q4 (Mar - May) $734,000
*The Sustainable Competitive Advantage
We will be the first organized company to enter a clinician dominated market, that's booming.
Our co-ownership model will serve to incent as well as disincent clinicians from starting their own imaging center.
Demand creation courses. Business Consulting in the practice. (see in Fortune Phi BP)
IT Infrastructure + heavy R&D will keep us leading edge & integrated into their practice.
Ability to connect the dots in the minds eye ~ vision, in a market place that is continues to climb.
Beta testing CBCT & CAD/CAM will give us exlusivity rights.
River Oaks Centre beta sight.
Search Engin.uity
In a culture of Synergy, growth is the way of life. Learn more at
http://synergyplaygrounds.com/SynergyCulture.aspx This is the culture that keeps the sustainable competitive advantage in everything, in anything. No one else is organizing around this with as much drive, ingenuity, innovative ability, industry knowledge, vision & synergy.
3-D Smile Imaging & Diagnostics provides a full range of diagnostic imaging services to support any implant, oral or maxillofacial surgical treatment planning needs, 3-D image interpretation, complete surgical guides, TMJ, orthodontic, cepholometric & the full range of assesments.
3-D Smile Labs provides 3-D Lab Design for the implants & esthetics lab ~ full mouth reconstruction to diagnostic tools & templates. Diagnostic wax-up's, radiographic guides, virtual treatment planning & assisting.
3-DSmile, Corp. A unique value proposition is that the client dentist may purchase membership shares in the Co. & become “co-owners.” Thus, the dental practice’s business expense of lab & imaging fees become assets for profit distribution. 3-DSmile Corp's proprietary business model enables vertically integrated incentives to support sustainable synergy ~ it's self-directed IRAs invested in a private company by becoming a "co-owner" & "profits partner" in 3-DSmile centers. 3-DSmile, Corp. has structured the ownership of membership shares for maximum profitability and minimal income tax consequences. Through our proprietary corporate operating agreement, doctors may own their membership shares in their IRA, instead of owning the membership shares personally. Thus, all profits derived from the ownership stake in the lab accrue as pre-tax investment. Because the earnings are flowing into the IRA as profits distribution and not earnings, there are no annual maximum contribution levels to contend with.
Dear Investor,
Thank you for your interest in this rich opportunity. 3-D Smile, Corp is seeking $180,000 to $300,000 by May 12th, 2008. Investment entry is $20,000 with a contribution cap at $120,000 per person. 3-D Smile, Corp will close investment considerations at $300,000. If you would like additional information, please click on the following link http://synergyplaygrounds.com/NDA.aspx to complete our NDA.