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DUE DILIGENCE REPORT Benjamin J. Garber 18 November 2010 Prepared for BlueTree Capital Group | BlueTree Allied Angels

Ib2 c due diligence report

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Page 1: Ib2 c due diligence report

DUE DILIGENCE REPORT

Benjamin J. Garber

18 November 2010

Prepared for BlueTree Capital Group | BlueTree Allied Angels

Page 2: Ib2 c due diligence report

Due Diligence Team

Kirk Vincent David Charlton Dwayne Bucko Jenny Karlsson Jason Matzus Ben Garber

Page 3: Ib2 c due diligence report

Company

Intimate Bridge 2 Conception (Ib2C) is a medical device company focused on fertility

Initial sales driven online and through infomercials

Ib2C is hoping to raise $1.5MM this round CEO, Steve Bollinger

Market Advisors, Messrs. Swenson & Tovian Medical Advisors, Drs. Pelekanos & Hoffman Legal Advisors, Foley Hoad LLP

Page 4: Ib2 c due diligence report

Company

Intimate Bridge 2 Conception (Ib2C) is a medical device company focused on fertility

Initial sales driven online and through infomercials

Ib2C is hoping to raise $1.5MM this round CEO, Steve Bollinger

NO FEMALE PRODUCT OR MARKET ADVISORS

Page 5: Ib2 c due diligence report

Product

Focus Touch Kit is a cervical cap devise featuring a unique delivery method

Page 6: Ib2 c due diligence report

Key Considerations

No indication of market acceptance No prototype or claim of product efficacy No Freedom to Operate Study Large market potential Few competitors

Page 7: Ib2 c due diligence report

Problem

7.3MM women in the U.S. and 100MM+ worldwide having trouble conceiving

1.2MM in the U.S. are actively seeking assistance

Existing IUI and IVF treatments are costly, invasive, uncomfortable, and unnatural

Page 8: Ib2 c due diligence report

Solution

The Focus Touch Kit is: Inexpensive at $80 (IUI is $2k and IVF

is$20k) Do-it-yourself low technology devise; no

surgery Used within the privacy of your own home Reduces stress associated with conception Hormone free utilizing natural mechanical

techniques

Page 9: Ib2 c due diligence report

Sales

BlueTree investment will primarily be allocated to product and strategy refinement and initial marketing efforts

Internet search marketing powered by GoogleAdwords... later social media, Yahoo, Bing

Infomercials supported by GoogleTV

Page 10: Ib2 c due diligence report

Sales

BlueTree investment will primarily be allocated to product and strategy refinement and initial marketing efforts

Internet search marketing powered by GoogleAdwords... later social media, Yahoo, Bing

Infomercials supported by GoogleTV $4.2MM marketing expense budgeted

for first 200,000 unit sales represents the lower bound

Page 11: Ib2 c due diligence report

Forecasts

Pending 510(k) approval in Q3 2011 25,500 units IN Q3/Q4 2011 (6,375

customers) for revenue of $2.04MM $12.5MM in 2012 to $22.5MM in 2013

OTC and international launch

Page 12: Ib2 c due diligence report

Forecasts

Pending 510(k) approval in Q3 2011 25,500 units IN Q3/Q4 2011 (6,375

customers) for revenue of $2.04MM $12.5MM in 2012 to $22.5MM in 2013

OTC and international launch Risk that sales will not accelerate as

anticipated and Ib2C will need additional capital potentially diluting BlueTree’s interest

Page 13: Ib2 c due diligence report

Document Review

Terms offered to BlueTree are same as PLSG including convertible promissory note and warrants Received $200k from IW and $275k from

PLSG If the company sells for $20MM, PLSG

would receive $1.55MM for it’s $275k in notes

PLSG conversion to 450k or 580k shares based on $4.5MM and $2.5MM valuations

Page 14: Ib2 c due diligence report

Internet Marketing