XVII. Additional Information

Each prospective investor may ask questions and receive answers concerning the terms and conditions of this offering and obtain any additional information which the Partnership possesses, or can acquire without unreasonable effort or expense, to verify the accuracy of the information provided in this Memorandum. The principal executive offices of the Partnership are located at 124 Lake Grove Road, Simpsonville, SC 29681.


Key Assumptions

The financial projections are believed to be reasonable and attainable within the projected 5-year period but are for illustrative purposes only. We are projecting sales growth to increase up to an average of 500 new RPM accounts each month by the second half of year one and into year two, then increase annually thereafter. The accounts are projected on an annually averaged figures over the projected 5-year period, but we anticipate unpredictable swings in actual account volume on a month-to-month basis. We have built in a 2-month ramp-up period before full operations and RPM account installations commence, thus projections begin as of September 1st, 2022, yet the exact timing is still arbitrary and dependent upon inventory deliveries and the speed at which medical practices can place patients on the Program.

The projections assume a churn rate of 1% per month of all total accounts, or an attrition rate of 12% per year. Clovis ai has implemented procedures to reduce churn, especially from non-compliance vitals testing as the system sends missed measurement alerts for immediate support team or chronic care management follow-up. Patients who have difficulty adhering to measurement protocols can be issued wrist watches that monitor and report their vital signs automatically on a continual basis. Our rewards program is an added incentive to maintain program adherence.

Direct Costs include payment for the suite of Bluetooth monitoring equipment and the Clovis cellular router for each new account, plus the recurring monthly nurse consulting fees (Angel Support) and data transmission costs for all active accounts.

Long term assets include the capitalized value of $1,350,000 from HME Technology’s contribution of research and development of the RPM router and system. The contribution by the Managing Director of an active contract RPM is valued at $900,000 in future receivables and has been amortized over three years in the Financing section along with net proceeds from the maximum Offering of $890,000.

Early cash flow will be reinvested into operations, marketing, and growth. Not shown in the projections are the potential for Partnership distributions in years two and after on a pro rata basis to Unit Holders. There is no federal Income tax liability shown since the Partnership is a flow-through entity for tax purposes and gains and losses will be passed through to Units Holders via IRS Schedule K-1.



Use of funds

Funds raised in this Offering will primarily be used to purchase routers and monitoring equipment inventory to fulfil orders for our Remote Patient Monitoring (RPM) Program. Initial overhead is minimal as operations are currently overseen from a residence and no salaries are being paid or have accrued. Margins are sufficient to operate the Partnership at reduced levels with even the minimum Offering amount being raised.

The projections herein assume the maximum Offering amount of $1 million will be raised, thus dramatically increasing revenue growth and operational flexibility. The net proceeds
from a maximum raise will be approximately $890,000 and will be purposed as follows:

Sources of Funds

Management of the Partnership has contributed intellectual property and active receivable contracts worth approximately $2.3 million and have personally funded initial start-up expenses to date without taking any compensation and will continue to do so until the minimum Offering amount is raised and escrow on the funding account is lifted.

This Offering will be presented to select medical professionals and a limited number of referrals for the opportunity to participate in the Partnership. Management expects the Offering to be fully subscribed to and funded prior to the end of the 180-day stated offering period.

Please refer to the accompanying Confidential Private Offering Memorandum for complete details and Offering documents.

Beginning Balance Sheet

The Clovis ai Partnership is newly formed and has been funded by the managing members of the LLC by covering all origination costs and contributing assets prior to beginning any operations. Please review the beginning balance sheet and accompanying notes on the following page.