EXECUTIVE SUMMARY

Introduction

Today’s healthcare organizations are trying to navigate, not only a transitioning technology
landscape, but also a payment reform shifting from a Fee for Service to a new Value Based
payment model. Healthcare providers are continuously assessing how they can enhance patient
care and grow revenue, while also improving cost, risk management, and outcomes. Many
clinicians, policymakers and health economists agree that improving healthcare quality while
controlling costs and risk requires greater patient engagement. Improved patient engagement can
result in better disease prevention, by giving patients the tools to self-monitor and change behavior;
greater treatment success, based on increased compliance with lifestyle changes, therapy; and
better clinical decision making, as a result of more information sharing between the patient and
clinician.

Clovis Router provides the avenue for greater patient engagement and a world class platform as
unique as the patient, whether they prefer their smart phone, tablet, laptop, or nothing but the
Router. Clovis allows the care team to provide automated messaging and reminders of upcoming
daily activities including medication adherence, physical fitness routines, wellness and education
videos, doctor appointments, etc. This type of daily interaction enables the care team to virtually
become part of the patients’ life.

Telemedicine is a part of an evolution of a more connected, patient-centered healthcare ecosystem.
Clovis offers a user-friendly platform that not only analyzes real time patient diagnostic data in
order to identify trends or episodic events, but also offers unprecedented, automated patient
engagement using the patient’s Clovis router as the communication portal.

Medical Need

As the ongoing management of serious, chronic diseases impact healthcare infrastructures, new
ways to solve the urgent need for cost effective, reliable and consistent patient monitoring have
become paramount in attempting to decrease the burden healthcare organizations are currently
experiencing.

75% of hospitals are being fined by Medicare because of their high re-admissions rate.
According to Touchstone survey, virtual care will be one of the main deflators in an industry full
of escalating healthcare costs projected to reach $3.207 trillion this year, roughly $10,000 per
person (Source: National Healthcare Expenditure).

According to a report published by the National Health Council, “generally incurable and
ongoing, chronic diseases affect approximately 133 million Americans, representing more than
40% of the total population of this country. By 2024, that number is projected to grow to an
estimated 157 million, with 81 million having multiple conditions. About half of all adults have
a chronic condition. More and more people are living with not just one chronic illness, such as
diabetes, heart disease or depression, but with two or more conditions. Almost a third of the
population is now living with multiple chronic conditions. In 2020, 7 out of 10 deaths in the
U.S. were  due to chronic diseases. Heart disease, cancer and stroke account for more than half of
all deaths each year. According to the New England Journal of Medicine, people with chronic
conditions receive only 56% of recommended preventive health care services. A 2018 study
reported that seven chronic diseases – cancer, diabetes, hypertension, stroke, heart disease,
pulmonary conditions, and mental illness – have a total impact on the economy of $1.3 trillion
annually. By the year 2023, this number is projected to increase to $4.2 trillion in treatment costs
and lost economic output.”

A few years ago, in a first-of-its-kind move, Centers for Medicare and Medicaid Service (CMS)
made remote patient monitoring (RPM) a separately reimbursable service under Medicare. Now,
CMS has proposed three new codes for RPM services, retitled “Chronic Care Remote
Physiologic Monitoring,” which do a far better job reflecting how providers can more effectively
and efficiently use RPM technology to monitor and manage patient care needs, including chronic
care management.

Medicare already offers separate reimbursement for RPM. The service is defined as the
“collection and interpretation of physiologic data (e.g., ECG, blood pressure, glucose
monitoring) digitally stored and/or transmitted by the patient and/or caregiver to the physician or
other qualified health care professional, qualified by education, training, licensure/regulation
(when applicable) requiring a minimum of 20 minutes of time.”

The new Chronic Care Remote Physiologic Monitoring codes are:
▪ CPT code 99457: “Remote monitoring of physiologic parameter(s) (e.g, weight, blood
pressure, pulse oximetry, respiratory flow rate), initial; set-up and patient education on use
of equipment.”
▪ CPT code 99453: “Remote monitoring of physiologic parameter(s) (eg, weight, blood
pressure, pulse oximetry, respiratory flow rate), initial; device(s) supply with daily
recording(s) or programmed alert(s) transmission, each 30 days.”
▪ CPT code 99454: “Remote physiologic monitoring treatment management services, 20
minutes or more of clinical staff/physician/other qualified healthcare professional time in a
calendar month requiring interactive communication with the patient/caregiver during the
month.”

Chronic Care Remote Physiologic Monitoring is not a telehealth service. Providers frustrated
with the labyrinthine and narrow Medicare coverage of telehealth services can take comfort in
the fact that RPM is not considered a Medicare telehealth service. Instead, like a physician
interpretation of an electrocardiogram or radiological image that has been transmitted
electronically, RPM services involve the interpretation of medical information without a direct
interaction between the practitioner and beneficiary. As such, Medicare pays for RPM services
under the same conditions as in-person physicians’ services with no additional requirements
regarding permissible originating sites or use of the telehealth place of service (POS) 02
code. This means Chronic Care Remote Physiologic Monitoring does not require the use of
interactive audio-video, nor must the patient be located in a rural area or a qualified originating
site. Patients can receive RPM services in their homes.

Companies currently offering Chronic Care Management (CCM) services should be particularly
focused on expanding their business lines into RPM. Not only do CCM companies have current
customers who can benefit from RPM services, the non-face-to-face technology and clinical
integration requirements are fairly similar. Moreover, CCM and RPM can both be separately
billed for the same patient in the same month, allowing additional revenue.

According to the American Medical Associations (AMA), the inclusion of the remote patient
monitoring codes “reflect how healthcare professionals can more effectively and efficiently use
technology to connect with their patients at home and gather data for care management and
coordination,” while the inter-professional internet consultation codes “have been added to
reflect the increasing importance of using non-verbal communication technology to coordinate
patient care between a consulting physician and a treating physician.”

A proven technology solution is urgently needed to alleviate the strain on the medical system and
provide new monitoring options to patients with chronic diseases that will help mitigate the high
rates of re-admissions, resulting in lower costs overall and better patient care long term.

Market Need

Clovis offers healthcare providers a Telemedicine platform to monitor patient populations thus
reducing re-admissions and easing concerns of emergency room utilization. A recent CDC report
showed that 80 percent of adults between the ages of 18 to 64 who visited an emergency room
during the first half of 2020 did so because they lacked access to other providers. Telemedicine
also advances the legislative intent of CMS to provide evidence-based medicine and engage
patients. Telemedicine referred to as telehealth in the CMS rule is a central element to this end.
As written in CMS’ final rule for the Medicare Shared Savings Program, “Accountable Care
Organizations must define processes to promote evidence-based medicine and patient
engagement, report on quality and cost measures, and coordinate care, such as through the
use of telehealth, remote patient monitoring, and other such enabling technologies.”
Being able to engage and educate the patient is the only way to ultimately change their behavior
and accomplish the goal of Triple Aim healthcare – Better Health, to More Patients for Less
Money.

However, connecting with patients outside of the office visit, and providing ongoing access and
transparency to care and support resources, is challenging, particularly when it requires
coordination between patients, physicians, clinical staff and third-party resources. To meet
consumer demands, healthcare providers need new ways to connect with patients and deliver
value-added information in a cost effective, easy to access and simple manner – and in a way that
maintains consistency and continuity throughout the entire treatment process. Today’s healthcare
providers need digital solutions that are custom-tailored specifically for their businesses. The
Clovis platform provides the right digital solutions that are incorporated strategically into a
provider’s business leaving little question that Clovis can improve each patient’s overall
experience.

Products

With Clovis telemedicine tools, patients can virtually engage a physician or care coordinator
anytime, anywhere. They are not limited by distance or cost and time spent driving to and from
appointments.

Background

Platform Description: Clovis adopted a “hub and spoke” architecture for its platform. The central
‘hub’ is a single control device that communicates with a heterogeneous collection of end point
devices into a functional team irrespective of what protocols or connectivity options a particular
device uses. The platform provides the coordination intelligence and allows seamless access to
broad range of services at home thus providing consumers with a degree of choice in what devices
from various vendors they can add to the network.

The Clovis Router can stand on its own and transmit data collected through the embedded sim card.
Patients can view their diagnostic Data on their PCs, Tablets and mobile phones as soon as the measurement is taken.

The system will also send notifications to the care team if the readings are not normal.

System Details: The Clovis Router and content was developed by a team of engineers financed by
Home Monitoring Equipment Inc. Highlights of the system and content are as follows:

Automated Coaching: The Clovis platform was designed with automated messaging
capabilities that enable case managers to leverage technology in their delivery and access of
healthcare. Most episodic events go unnoticed or not addressed simply because there are more
pressing or higher cost scenarios monopolizing their resources and attention. Case managers
can create their own automated triage of events, which not only enables them to deliver
consistent messaging with documented read receipts from the patient but allows them to touch
the patient based on exception, even when it is something minor. This provides case managers
latitude to focus on more severe situations and events that warrant their personal touch.

Patient Reward: Modifying patient behavior is challenging but maintaining the patients’
motivation and keeping them engaged over time may be even more difficult. Gamification is
a term used to reward someone for performing a chore. Clovis has Gamification technology
built into the architecture and enables any healthcare organization to create a myriad of rewards
to offer to their patients for adherence to their prescribed treatment plan. Each population can
be divided into subgroups that are driven by different rewards, whether it is monetary,
entertainment, gifts, and the like. Gamification is pinnacle to keeping patients engaged and
having a successful population health management program.

“Connected” Diagnostic Devices: Clovis approved diagnostic devices have kept pace with
scientific and technological advancement. All the diagnostic devices are incorporated with
ability to connect out of the box to the Router and transfer biometric data collected.

Patient Health Management System: The Clovis Patient Health Management System is the
backbone of the Routers’ platform. It offers healthcare providers the ability to develop
personalized programs that aid the patient in monitoring their health and forming positive
health habits. Each program is comprised of intervention strategies that improve patient
adherence and increase the clinical benefits of doctor prescribed therapies.

Additionally, Clovis Patient Health Management System generates all the reports and
analytics that are required by the healthcare professionals. It allows the healthcare
professional to customize reports and schedule them to be printed or faxed.
The system provides instantaneous vital sign feedback, health coaching with virtual visits,
and patient rewards, all of which encourage the patient to remain engaged in the
management of their health.

The system also allows access to patients whereby, patients can update his or her contact
information, review reports, search for notes and add notes. Most importantly, patients can
review their logbook settings and make changes to their daily schedule. Further, patients
can customize how they would like to view reports by selecting the time frame to view
reports (such as last 30 days, or last 14 days), They can also select multiple reports to add
to their “On-Demand Reports”.

The Clovis Patient Health Management System makes it easier for the patient and their health care
team to stay up to date on the patient’s current status with the software ability to create a five star
rating for the patient and the doctor. The star rating capability embraces Medicare current structure
used today that determines how much a doctor is reimbursed based on their star rating.

Competition

As with any industry, there is competition in the telemedicine arena. According to mHealth
Intelligence, “Telemedicine technology first began as a form of healthcare delivery in the late
1960s due to the needs of the National Aeronautics and Space Administration (NASA) and the
Nebraska Psychology Institute, according to a paper written by researchers from Saint Louis
University and Bentley University and published in the International Journal of Environmental
Research and Public Health. Throughout the last fifty years, there have been multiple barriers
standing in the way of widespread adoption of telemedicine technology and remote monitoring
tools. Financial, regulatory, and technological challenges made it more difficult to advance
telehealth adoption, but current healthcare reforms may bring about a change in this arena. The
lack of broadband infrastructure has proven challenging for the advancement of many forms of
telemedicine, specifically high demand video and store-and-forward services, which require
expansive health networks,” the research paper stated.”

With the proliferation and improvement of broadband networks across the United States,
telemedicine can now be utilized to its maximum potential. Additionally, electronic medical
records and other health technology systems have advanced to the point where telemedicine can
communicate effectively to the care giver. The Clovis platform has been under development for
several years, waiting for this moment, and stands tall above the competition in the following
ways:

Full suite of products – Clovis is designed as an all-in-one system whereby the care giver can
order a full suite of products that already connect and interact with the platform and thus with
the care giver.

Future proof – the Clovis system is designed to accept most, if not all, other technology patient
diagnostic devices which may be required by the care giver.

Clinical and non-clinical – The system is designed to provide the clinician and patient with
non-clinical information as well. The system can accept other IoT devices such as motion
sensors and electronic light switches in order to establish patterns which may assist in
establishing patterns important in the patients’ life.

Price Point – The system is very well positioned price wise due to the number of years the
founders of the Company have in the industry as well as their long-established relationships
with manufacturers in Asia.

Flexible Open Source – the platform is designed in a way to allow other devices to connect
into the system easily.

The primary competitors and their telemedicine systems are:
▪ Phillips – IntelliVue
▪ Honeywell – Lifestream
▪ McKesson – Homecare
▪ Vivify – Pathways +Home

There are several other companies in the market, but only the Clovis platform gives the competitive
advantages described above.

Target Markets

Clovis anticipates on attacking the United States and International markets in three primary
channels:

Payor Patient Management Groups – these represent organizations responsible for managing
chronic care patients on a capitation basis (a set amount on each patient for a period of time).
These organizations need ways to cost effectively and efficiently care for the patient in order
to maintain profitability.

Direct to Doctor – Clovis is contracting with organizations on a wholesale basis to sell the
platform directly to physicians whereby the physicians utilize existing fee for service billing
codes for remote patient care.

International – Most international health systems and institutions
are not prepared for the entire Clovis platform but are in need of improved Diabetes
management. Therefore, the Company will assist international customer/partners in setting up
the server in their country. The sim card built into the Router will accommodate the majority
of the world’s cellular transmission sites.

In the United States, the Company has entered into agreements with Early Adopter Care Givers;
Georgia Physician Group
Test-n-Share
Heath Observation Platform (HOP)
Remote Smart Health
Pinnacle RX
Anderson Health

Corporate Structure

Clovis ai llc is registered in the state of South Carolina.

The Offering

Clovis is seeking an equity investment of $3,000,000 to be used for inventory and operating
capital. The funds will be used as follows:
▪ Purchase of initial inventory required until cash flow can self-fund inventory purchases.
▪ Increase staffing in the sales, operations and management areas.
▪ General and administrative expenditures to operate the company.

Summary of the Offering

The following material is intended to summarize information contained elsewhere in this Limited
Offering Memorandum (the “Memorandum”). This summary is qualified in its entirety by express
reference to this Memorandum and the materials referred to and contained herein. Each prospective
subscriber should carefully review the entire Memorandum and all materials referred to herein and
conduct his or her own due diligence before subscribing for member units.