Predictive Recovery Management EXECUTIVE SUMMARY Mobile Patient Monitoring and Behavioral Data Analytics for Real‐Time Aftercare Our software services are powered by data sent from patient smartphones on a 24x7 basis. This data is analyzed by our server‐side software, which then escalates certain events for review by the HealthDesk, a team of non‐medical personnel. The relative omniscience created by a real‐time data feed on every patient enables healthcare providers to place their patients in a “virtual hospital” where they can receive optimal care at a fraction of the cost, and without the enormous inconvenience, of residential inpatient facilities. Furthermore, predictive analytics of this highly granular data gives treatment providers the foresight they need to avert adverse events before they occur, thereby enabling truly preventive, outcome‐based medicine. Addiction is at Epidemic Proportions Addiction has reached epidemic proportions, both in the United States and on a global level. In just the past 15 years, the growth rate of addiction has almost doubled, from below 10% CAGR to over 15% CAGR presently. The resulting epidemic (as so classiIied by the CDC) is huge and highly lethal. An estimated 23 million Americans have substance use disorder with signiIicant morbidity and mortality, and 10% seek treatment each year . Opioid overdoses alone now kill 1 more people than automobile accidents or Iirearms. Furthermore, substance use disorder is increasingly afIlicting younger and more vulnerable populations. By 2020, drug overdose will be the third largest cause of death in America, killing approximately 160,000 people per year – second only to heart disease and lung cancer. Addiction, known medically as “substance use disorder”, is likely to be the global epidemic of the 21 st century. Treatment for Addiction is an Enormous and Growing Market Patients with substance use disorder (addiction) are seeking treatment in record numbers. In 2013, over two million Americans received inpatient treatment for their addiction at a staggering cost to their families, their insurers, and government payers. Various sources put the total domestic spend on addiction treatment (by public, private, and insurance payers) above $50 billion. The market size and growth is even larger, per capita, in countries with single‐payer‐provider systems. These numbers reIlect direct spending on the illness, not the cost to society of its externalities, which has been estimated to be about 4.5x the direct spend. In short, the global market for direct treatment today seems to be well over $1 trillion, with the cost to society approaching $5 trillion – and both Iigures are growing steadily. Addiction is a public health crisis that also represents a huge market opportunity. Predictive Recovery Management, Inc. seeks to do well for its investors and do good for society by enabling ubiquitous access to the best long‐ term treatment available. Our socially responsible approach will be reIlected in appropriate reductions to our pricing for services and technology licenses to treatment providers that otherwise would not be able to afford our technology.