Fitness And Business Solutions

Published Date: 02 Nov 2017

Employee Wellness & Active Lifestyle

More Active Logo_Sq 2.png

Alan Wesen, [email protected]

Don Hoskyns, [email protected]

EXECUTIVE SUMMARY

Through the social and organizational support structures of the workplace, wellness programs can be integrated effectively into the lives of a demographically shifting workforce that is becoming less healthy. Because more than 60 percent of Americans obtain their health insurance coverage through an employment-based plan, employee wellness programs are aptly positioned to respond to the varied health needs of a multigenerational workforce.

Business Description: TrainerSphere Fitness LLC based in Chesterland, Ohio and incorporated in April 20, 2005 has partnered with MoreActive, based out of Arizona, to become the leading provider of web-based fitness & nutritional software solutions within the rapidly-growing Active Lifestyle sector, a $60+ billion market. The Company is seeking to complete initial round of funding to complete the roll-out of MoreActiveHR (Built on the existing FitnessInsite platform) and continue to ramp up the customer support of MoreActiveF. For a total investment of $100,000, MoreActive is offering investors an opportunity to invest Capital and / or Database and Web Development skillsets With a total investment of $150,000. The Company, through its MoreActive platform, provides the following variations of one single application depending on each customer’s needs and audience:

MoreActive - Consumer direct platform which seamlessly interface with Best in Class Franklin Coveys PlanPlus Online (PPOL) Platform. With MoreActiveRewards (R), individuals and their families are rewarded for completing tasks and action items in PlanPlus area of MoreActive. Reward Points are also generated automatically through FitBit, Wifi devices such as scales, Heart Rate Monitors and upon entering a preferred partner fitness Club. MoreActive Merchant Rewards Points can be redeemed inside well known merchant stores. Lastly and more important MoreActiveR is an enhancement to what an individual’s already busy schedule, greatly increases successful outcomes. Using MoreActiveVF, individuals and their families are given access to a Preferred Wellness Specialist Network. Revenue model – monthly fees from employee and or participant’s venue model – monthly subscription fees from clubs

MoreActive Workforce Wellness(WW) – Targeting Mid – Large companies, Hotels, Assisted Living Communities health clubs, weight-loss centers, spas and other fitness businesses; tools include dynamic websites, online fitness and nutrition programs, sales management software and member communication tools

MoreActive - VersaFit (VF) - Consumer direct platform developed on FranklinCoveys PlanPlus Online (PPOL) Platform. MoreActive’s VP, rewards individuals for completing tasks and action items. Points are also generated automatically with technologies which automatically detect and report BMR, GPS, HRM and other standard fitness technologies available through preferred merchant locations…Employees, families and employers all benefit from heightened performance. In turn MoreActive Merchant Rewards Points can be redeemed inside well known merchant chains local or nationwide. Lastly and more important MoreActiveCW is an enhancement to what an individuals already budy schedule, which greatly increases the success for the program. Using MoreActiveVF, individuals and their families are given access to a Preferred Wellness Specialist Network. Revenue model – monthly fees from employee and or participant’s venue model – monthly subscription fees from clubs

MoreActive – Healthy Relationships (HR) – Geared towards the preventative marketplace, provide Personal Trainers and Wellness Coaches with easy to adapt "CloudBased" Healthy Customer Relationship (HCR) tools, which interface with both mobile and tablet technologies. MoreActiveHCR increases value for both the wellness specialist and the client. HCR has been developed to be turnkey, allowing Wellness Professionals to get started immediately. The platform is also completely customizable allowing Fitness facilities, trainers and nutritional specialists the ability to apply their own unique programs. Will also feature optional Web Conferencing technologies which gives Fitness Specialists a unique ability to virtually train their clients. Revenue model – monthly fees from PT’s, Fitness Specialists and Wellness Professionals.

MoreActive – HealthCare (HC) – Using MoreActive HC tools, develop a secure platform strictly designed for interfacing with medical industry applications. Provide Nurses and Medical Providers with Health Risk Evaluation (HRE) and assessment tools. Deliver secure Case Management tools for monthly annual subscription. Revenue model – monthly fees from corporations, Nurses, Providers, Hospital Systems and Medical agencies

THE PROBLEM

"The health of the modern workforce is changing; employees are older and the numbers of employees with chronic conditions, including depression, anxiety, and diabetes are sharply increasing." [i] The overall decline of workforce health contributes to an increase in health related expenses, in both direct medical payments and indirect costs from absenteeism and presenteeism. [ii] With these changes come obstacles to employee wellness. Nevertheless, these changes also bring about opportunities to strengthen the health and productivity of the evolving U.S. workforce.

UNHEALTHY BEHAVIOR: A lifetime of unhealthy behaviors (poor diet, smoking, inactivity, etc) has led to chronic diseases that accounts for more than 70% of Healthcare Costs. The weight of our nation has reached epidemic proportions, "with 69% of Americans are either Obese or Overweight." [iii] ivIn a 2008 study detailing annual medical spending due to obesity, "Overall estimates show that the annual medical burden of obesity has risen to almost 10 percent of all medical spending and could amount to $147 billion per year in 2008." [v] "32% of Children and adolescents are either obese or overweight," [vi] with another percent already showing signs of Cardiovascular Disease (CVD). Take a good look around you because predictions say these numbers will gradually increase to 2020.

OBESITY DISEASE RISK: "Obesity drives and is related to be a cause over 19 preventable non-communicable diseases" [vii] including CVD, Diabetes, Cancer, Stroke and Mental Illness. The fact that our country is in such poor health not only degrades performance inside the workforce but is costing mid to large size companies trillions of dollars in healthcare costs to the workforce

AGING WORKFORCE: Old age is no longer a rarity; most people who reach 65 may continue living an additional 18 years (5). The 55-and-older age group, which made up 13 percent of the labor force in 2000, is projected to increase to 20 percent by 2020 (6). The aging of the labor force contributes to the complexity of health needs, with chronic disease as a major concern for employers.

DEPRESSION: Wellness is not just about physical health, but mental health as well. Depression and stress have been shown to be major sources of lost productivity in the workplace. The World Health Organization (WHO) estimates that depression will be the most prominent disability at work in the next decade. Depression symptoms have an effect on productivity and work time lost. Furthermore, many people with depression may have other health problems. Workforce conditions are also changing. The decrease in acute traumatic injuries from work and the increase in chronic conditions like depression and anxiety reinforce the need for improving the availability of wellness programs.

VISION… provide personalized, reliable and innovative solutions that "empower our partners" to guide, educate, motivate and inspire greater health and fitness to people, companies, communities and organizations.

THE OPPORTUNITY

"The workplace has the advantage of reaching large segments of the population that are not exposed to or engaged in organized health improvement efforts." [viii] "In companies with a strong culture of health, employees are three times more likely to report taking action on improving their health." [ix] Additionally, "companies with a strong culture of health achieve significantly better financial outcomes and lower employee turnover." [x] "Unfortunately, fewer than 26 percent of employees believe their company has a strong culture of health." [xi] 

GROWING FIELD

Mid-Large size employee Populations "The Prevention and Public Health Fund provision of the Affordable Care Act (ACA) (2010) represents the largest national commitment to investing in wellness and prevention. Congress appropriated $15 billion to the fund over the period of 2011 — 2021 to support implementation of evidence based intervention to prevent disease and injury, and to create the National Prevention Council to oversee the government’s prevention efforts. The Prevention and Public Health Fund contains almost $18 billion in mandatory spending, including $200 million for small business wellness plan grants, and is a major component of health reform." [xii] 

PREVENTION IS KEY

Prevention can reduce the significant economic burden of disease in addition to improving the length and quality of people’s lives. Treatment, lost productivity, and health care cost share significant burdens to the economy, families, and businesses. Prevention policies and programs often are cost-effective, reduce health care costs, and improve productivity.

Participants presented the following examples to reflect why prevention is a wise investment:

Prevention lowers health care costs

Annual health care costs are $2,000 higher for smokers, $1,400 higher for people who are obese, and $6,600 higher for those who have diabetes than for nonsmokers, people who are not obese, or people do not have diabetes

Increasing use of preventive services including tobacco cessation screening, alcohol abuse screening, and aspirin use to 90 percent of the recommended levels could save $3.7 billion annually in medical costs

Medical costs are reduced by approximately $3.27 for every dollar spent on workplace wellness programs

Prevention increases productivity

Indirect costs to employers from employees of poor health — lower productivity, higher rates of disability, higher rates of injury, and more workers’ compensation claims — can be two to three times the costs of direct medical expenses. [xiii] 

Workers with diabetes average two more workdays absent per year than workers without diabetes. [xiv] 

Absenteeism costs are reduced by approximately $2.73 for every dollar spent on workplace wellness programs, according to a recent study. [xv] xvi

WHY MOREACTIVE?

MoreActive interactive portals serve as a daily destination for participants; motivating, teaching and supporting them in the attainment of their lifestyle goals.

Exclusive brand and backing by Franklin Covey Software

Existing channel base of Health Club clients throughout the United States

Unique National Merchant rewards which interface with Merchants Point of Sale (POS) System. We will drive millions of employees to our preferred merchant store base and in return merchant base will invest in delivering deep discounts offering

State of the Art Predictive modeling Healthcare engine which captures participant healthcare going 2 years back, very accurate for predicting healthcare costs of large populations

Superior Fitness, Dietary and Nutrition tools for specialists and trainers

Step by Step easy to follow wellness journey with support network, which changes based upon participants wellness needs

Extensive evaluation tools to assure member is enrolled in the most appropriate training programs

Online Self Care Fitness and Nutrition Programs

Online Self Care & Evidence based Behavior change programs

Nationwide team of Case Managers coaches to cover more chronic health issues

PRODUCT & SERVICE

With MoreActive Corp-Performance, MoreActiveFit, MoreActiveCoach MoreActivePlan, MoreActiveRewards & MoreActiveNutrition products, MOREACTIVE is well on its way to becoming the ‘standard’ for mobile/web-based, active lifestyle solutions in the health and wellness market.

Health Club Market (Includes Personal Trainers & Coaches)

By managing the customizable fitness and nutrition software, sales, and CRM platforms for thousands of health clubs in this rapidly-growing market, MoreActive is positively positioned to become ‘embedded’ within thousands of club operator, trainers and fitness specialists who, in turn, own relationships with an average of 1,600 members per club. This market consists of 28,000 health clubs, and more than 41 million members.

Corporate Wellness

MoreActive delivers Next Generation health & wellness tools, which positively co-exists with the lifestyles of individuals and families. MoreActive represents multiple software platforms, many of which are resold through channel partners nationwide. MoreActive platforms are built on secure Cloud (SaaS-Based ) technologies which can be easily accessed and adapted by multiple firms and practices… corporations, fitness & country clubs, healthcare specialists, providers, nurse practitioners and insurance companies. The More Active ™ platform adds value and largely differentiates channel partners from their competition.

Consumer Direct Market

The United States currently spends $1.7 trillion on medical care, most has been diagnosed as "preventable" Non Communicable Diseases. Through existing channel partnership with 100’s of recognized fitness companies and direct relationships with mid to large size companies, More Active has a solution in place to capitalize on this emerging trend and tap into a target market of over 250 million consumers.

BACKGROUND, MANAGEMENT AND CAPITALIZATION

The Company, with corporate offices in Phoenix, Arizona and Cleveland, Ohio is the successor company to Hoskyns & Associates, an interactive fitness and nutrition technology company founded in 1991. Fitness Plus, Inc. (d/b/a Fitness Venture Group) was re-incorporated as a C corporation in September 2000 by its three senior executives. MOREACTIVE is 70% owned by management and is capitalized through a combination of debt and equity.

Management Team

Alan Wesen – CEO, responsible for Business Development and cultivating Strategic Partner Alliances. Alan has (15) Years’ designing and implementing Change Management and Business Process Optimization solutions for mid to large companies. 7 years’ experience in designing and managing nutritional and fitness eStorefronts. Alan has an Associates in Business and with a concentration in Education and Promotion Alan is actively working towards completion of his Bachelors in Public Health at Kent State University

Edward Mulacek – COO, has 16 years’ experience in supporting operations for large companies such as Penske and Eaton Corp. As a Six Sigma Blackbelt Ed actively designs and manages multiple blackbelt project which significantly improves performance and bottom line costs. Ed’s primary responsibility will be to implement and oversee quality process for More Active. Ed also is co-partner in TrainerSphere Fitness , with over 7 years experience in developing logistics, warehouse and distribution processes. Ed also holds a BA Degree in in Industrial and Systems Engineering which he earned from Ohio State University

Don Hoskyns – President (16 years in interactive and marketing technologies as owner of several businesses and managing projects with a number of leading companies in the fitness market.. Don was founder and instrumental in the creation and development of FitnessInsite online network of fitness sites. Don has also been extremely involved in the development of online wellness sites including: CorePerformance.com and APEXfitness.com

Ryan Whaley - Chief Athletic Officer (CAO) for MoreActive, Ryan work closely with both external and internal customers. Ryan also oversses the capture and development of Sports and fitness Content  worked which he gleans directly from NFL, MLB and NBA strength coaches. As CAO, Ryan’s responsibilities will also include the development and management of MoreActives Wellness Program, which will become a benchmark used for clients. Ryan brings 13 years’ health and fitness experience, primarily in rehabilitation, strength & conditioning, weight management, Sports training & nutrition. Ryan holds a majority of the required sports certifications and graduated with a BA, in Sports Management. Ryan also serves as a paramedic in the United States Army Reserves.

CURRENT STATUS AND FINANCIAL PERFORMANCE

Financial Projections: The ongoing focus of the Company is to build a strong recurring revenue base, derived from monthly usage fees generated by its core business (Strategic Partners and Corporate clients). Upon full rollout of the MoreActiveFitness and MoreActiveVF platforms, management will focus on increasing revenue from other vertical markets and new partnerships. The Company delivers, maintains, and upgrades its technology across all sites at the same time (bi-weekly) thereby minimizing development and maintenance costs. Unlimited capacity and negligible incremental costs make MOREACTIVE highly scalable. In addition, an actively growing database of members provides strong value for share-holders and strategic partners.

REVENUE STRATEGY

MoreActive (ELP) Essential Life Planning… the Convergence of Fitness Insite & Franklin Covey PlanPlus to emerge MoreActive Organizer

Low cost between $2-3 per individual (tiered up or down based upon volume of employees

Partners include Hotels, Fitness Clubs, Supermarkets, Retailer who sell fitness equip, Drugstores and perhaps TrainerSphere Nutrition Centers (Similar to Max Wellness)

MoreActiveCRM for Personal Training, Fitness  & Rehab Specialist and Case Managers

Cost per seat is $9.95 per month for  a full blown lead and sales management system that works and increase customer value

Partners include all individual practices mentioned, Disease Mgmt Companies, Hospitals and Clinics

MoreActiveVersaFitF - Consumer Direct Product

VFlite Subscription Purchase - $9.99 monthly, $29.95 6-month, and $79.95 12-month

MOREACTIVE has revenue share of 45% of each subscription purchase

VersaFit Online Trainer - MoreActiveWebFitness - Personal Training via Web Conference. Live one on One training with certified personal trainers, yoga & rehab specialists

MoreActive Nutrition and Fitness Gear (Will compete against Lucky Vitamin and  Drugstore.com (more streamlined for Employee wellness)

Average revenues per individual $50 per month based upon 10,000 purchase per month and growing at rate of 1-2% per month

Includes Employees, Families, partners, etc

More Active(R) Mobile Merchant Rewards

Costs is $100 per month per merchant location

(Example: merchant has 50 locations ($100 x 50 = $5,000 pm)

Partners include  partners mentioned in Revenue 1 and 30 to retailers in the state of Ohio

Sherwin Williams, Key Bank,  Panera Breads, Pet Smart, Performance Cycles, Restaurants

More Active(CM) Case Management Solutions for Lifestyle and Disease Mgmt. practice

For partners, Pricing comes to $25-75 per seat per month and will require redesign of Nurse Navigator in the Cloud (We have the Code)

Includes products from #3 and will expand to incude Medical devices and other technologies ( like a max wellness)

Health Risk Evaluations / Predictive Model Reporting

Fee - $75 per employee

Advertising

National Sponsorships – Platform Wide Advertising

Website Design & Development

Small - Mid size company - $400 - $2000 depending upon web development competencies

Large Company – $3,000 - $5000

Fitness Club & Hotels - $3,000 - $15,000+

PHASE I - Green is immediate                                               $35,000

PHASE II - Orange requires further development         $15,000

PHASE III - Last Phase with largest Investment            $50,000 - $150,000

LEVERAGING MOREACTIVE’S DATABASE

MOREACTIVE currently has a rich database of small business owners as well as access to millions of consumers in the health and wellness niche. As the gatekeeper of these databases, the Company will have the same market leverage as the largest club companies and will be able to develop partnerships and licensing arrangements with major companies in many industries including: credit card companies; the hospitality, retail, leisure and travel industries; ticketing/event companies; healthcare products and services; product companies that view health club members as a desirable market; and others. As an example of a comparably positioned business, Core Performance has entered into joint venture agreements with Adidas, EAS, Keiser, Sheraton, Intel

INVESTMENT OPPORTUNITY AND USE OF FUNDS

By February / March 2013, MoreActive plans to have software design and development resources in place to complete Phase 1 of 3 software development. Since Fitness Insite’s inception in 2004, private investors have provided over $1.8 million in working capital to design and build the platform to what it is today. Over 200 Fitness companies continue to subscribe to Active Insite and are prepared to move into a more efficient version, which MoreActive is going to provide.

MoreActive’s / TrainerSphere’s objective is not to reinvent the wheel, but rather improve upon what already exists today. With this in mind, we are seeking either $400,000 in working capital and / or the required development resources to take MoreActive and our client base to the next level. This in turn will improve MoreActive’s ability short term to secure funds and revenues for future product development.

PHASE I - Maximum estimated cost for phase I is $35,000 (or development resources), which will go towards 2-3 of interfacing MoreActive with the Best In Class Customer Relationship Management (CRM) toolset built on Franklin Covey’s PlanPlus Online (PPOL) Platform. Tools will include an impressive array of lead Generation tools which will be utilized by sales partners. With client permission, partners also have access to client information and can communicate real time via the PPOL Portal. This will also include integrating MoreActive Fitness with scheduling tools and automated process features. Planning and prioritizations program, based upon FranklinCovey 7 Habits, will also be available to assist end-user on their journey to achieving optimal health.

PHASE II – Minimum estimated investment for this portion of the project will require an additional $15,000 (or development resources) to go towards 3 months design and interface with key strategic prevention partners such as ProChange, SparkBase and Microsoft HealthVault. Rollout will include Evidence Based Learning & Behavior change programs. We will also release MoreActive’s Mobile Merchants rewards, backed by at least 20 national merchants and a fully functional eCommerce site which will be private labeled for our channel partners.

PHASE III - Minimum investment is $150,000 (or required development resources) to go towards 3-5 months of work to complete the Healthcare portion of our platform, MoreActiveHealthCare and will have fully integrated components which interface or replace a private label Case Management Application delivered by partner Triune Health Group. This platform will be available for larger companies, Hospitals or Healthcare Practices who require a comprehensive Case Management platform for their team of Nurse Practitioners. This phase will include tight integration with private label version of Verisk Health Risk Evolution & Assessments. MoreActiveHC will take the results of an employee’s HRE and "prescribe" activities which will be auto scheduled inside the employees PlanPlus Calendar. This will also tightly interface with MoreActiveMerchantREwards providing incentive and accountability for those with perhaps more chronic conditions. .

In PHASE IV, we predict additional Full Time resources will be required to manage sales, customer service, operations..

EXIT STRATEGY

With the objective of developing maximizing shareholder value, the Company is not necessarily dependent upon an exit strategy. The Company’s value will be maximized when liquidity options become available. These include a sale, a merger, a recapitalization, or an IPO. The Company will position itself for a liquidity event and will likely be an attractive acquisition target to businesses such as Franklin Covey, Cleveland Clinic, Facebook,

The Company has the potential to be highly profitable, possess valuable data and proprietary information, and is an industry leader with ‘bricks and mortar’ relationships and millions of member relationships through the brands we serve.

BARRIERS TO ENTRY

Management believes its customer-centric approach, plus switching costs, non-portable data, and low user monthly fees can create barriers to competitors seeking to take market share. However, Cloud technology advancements have facilitated the emergence of well-capitalized competitors. Capital constraints, especially at this time, are an imposing barrier for companies not already in the market.

Reliance on Outsourcing

The Company out-sources certain components of its product offering including hosting, e-mail fulfillment, mapping software, and messaging services. There is no guarantee that these parties will continue to execute seamlessly

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Access to Future Capital

MOREACTIVE may need to raise additional capital in the future to fuel growth or acquisition opportunities.

RESOURCES