About Our Company

SPIN’s services include clinic management and billing/collection of medical costs. The end result is that the accident victim receives the care he needs to return to a healthy life style and gainful employment while helping to avoid dependence on medications.

SPIN funds minimally invasive spine injection procedures during the differential diagnosis process. These spine injection procedures include: Epidural Steroid Injections (ESI) and Facet Nerve Blocks (Facets). In certain cases, minimally invasive spine surgery is performed when medically indicated. In the case of the spine injection procedures, the injection assists the spine surgeon in diagnosing the specific problem area, and in the second case, minimally invasive surgeries, provides a long lasting treatment to alleviate the patient’s pain.

SPIN funds diagnostic, non-invasive testing and surgical care by paying affiliated doctors a fixed rate for the diagnostic injection procedures (epidurals and facets) and services, at which point, SPIN takes ownership of the billing and collection process. For a typical injection procedure, SPIN bills the patient according to the AMA Current Procedure Terminology (CPT) code - billing rates. Since 2009, SPIN received approximately 50% of its billing once the case is settled. In line with its experience, SPIN recognized approximately 50% of its billing as revenue. It closely monitors this rate and adjusts it accordingly on a quarterly basis.

May 2012, SPIN acquired the IP for a patent-pending, video-enhanced platform system, Quad Video HALO Technology™ (“Quad Video HALO”), providing even greater transparent and impartial evidence to medical, legal and insurance entities. SPIN uses its Quad Video HALO Technology™ to create a quad screen multi-media view of the treatment process, which is incorporated into patients’ medical records. Quad Video HALO Technolog™ attaches to the video Fluoroscopic Guidance unit to hover above patients’ sterile field to capture a close-up video of the procedure. It features a clamp-lock system so as to not void warranty of the unit to which it is attached. The result: a clear, indisputable video of the overall procedure to further support claim review.

The evidence captured by Quad Video HALO Technology™ is tamper proof and provides the candid reality of what the patient experienced, which surgical method the affiliated surgeon applied, and how the patient was really impacted by the event. These views provide the insurance companies and legal entities an improved understanding of each patient’s case and potentially can hasten settlement.

SPIN’s service is beneficial to all parties involved. Doctors benefit from patient referrals and immediate payment, and are aided in the application of optimal treatments and implementation of business efficiency. Patients benefit from appropriate, necessary and reasonable treatment through a fast-trax™ process to settlement. Lastly, attorneys and liability insurance companies gain from impartial, rigorous evidence for injury claims, expedited case settlement (normally resolved outside of court) and are better suited to exercise fairness in claimant compensation.

The SPIN business model offers compelling economics. SPIN underwrites attending physicians and surgeons once the procedures have been completed at a fixed rate. From this point forward, SPIN has to wait until settlement to receive all or some portion of its invoiced amount at the time of final settlement. On average, settlement occurs within 12-18 months.

Typically, for every $1 invested (funded to physicians) by SPIN, $5 is generated in gross billings and $2.50 in recognized revenue. The Company’s gross margins average approximately 60%. In 2011, operating costs averaged 34% of recognized revenue, with net operating margins of approximately 25%. Since inception through June 30, 2012 over 2500 cases and a total of 4,400 procedures have been underwritten by SPIN. During this period, a total of 618 cases have reached conclusion totaling $3.74 million in settlement. 42 cases out of the 618 have failed to collect, representing a total of $80,000 in write-offs. SPIN has established an allowance for doubtful accounts to account for similar potential losses.

Currently the SPIN business model is in practice in Texas and Florida. With our clinics in Florida, we have the opportunity of providing service to approximately 40% of Florida's population. SPIN estimates that each of these centers has the current capacity to treat 50 cases per month. Historically, new centers achieve approximately 25% of operating capacity within the first 6 months of operation and 50% within 12 months, reaching full capacity in the second year of operation.

SPIN intends to continue to expand within its current regions as well as expand geographically, with the target of achieving an average of $200,000 in monthly gross revenue per center. To reach these goals, SPIN will from time to time seek additional “growth” working capital to strengthen its revenue base and achieve economies of scale resulting in efficient and reduced-cost production. In addition, in order to cost-effectively open clinics in new markets, SPIN has initiated a staged process. The Company strategically identifies a territory and credentials affiliates through an onboarding process to ensure superior results and maximum market penetration. Once this clinic proves its viability, it either becomes a preferred provider which can be a physician owned affiliate or corporate-owned clinic, depending upon the regulatory environment of the territory. Currently, SPIN has all doctor owned affiliates and no corporate-owned clinics. The Company intends to migrate a portion of affiliate clinics to company-owned over time when appropriate. Additionally, SPIN is interested in implementing a strategic marketing strategy for the patent-pending HALO Quad Video Tehcnology™ System that is synergistic to its core business and creates new business opportunities. Quad Video HALO Technology™ presents other potential avenues for growth and revenue.

SPIN is in a constant state of self-improvement and development in an effort to further advance its Fast-trax™ process and reduce time to settlement. Its objective is to create a cloud system that would improve the scalability and market penetration of SPIN services. Improved synergy and cooperation between all parties involved will achieve greater efficiency and result in an increasingly positive solution.