Facts to Know

Question 1

How many people in the US suffer from mental illness?

Answer 1

80%+ will suffer from mental illness in their lifetime, and any given year in the US it’s 18.9% of adults, 21.4% youth ages 13-18 and 13.1% of children aged 8 - 15. The rough math about 17.6% of the US population in a given year suffers from mental illness.

Question 2

How many clinicians practice solo and don’t take insurance?

Answer 2

51%+ as practicing solo, and 56% not taking insurance

Question 3

What is mental health spend in the US?

Answer 3

In 2014, Mental Health spend in US was $221B for direct costs. That does not indirect costs such as company absenteeism or lost wages.

Question 4

What has serious mental illness cost the US in lost wages?

Answer 4

Serious mental illness cost the US $193B in lost earnings per year, according to Agency for Healthcare Research and Quality, The Department of Health & Human Services. (2009). .

Question 5

What will mental health spend be in 2027 if it grows linearly?

Answer 5

If mental health spend grows linearly with the expected growth of national healthcare spend, then it would grow to $443B by 2027

Question 6

What percentage of adults received treatment for their mental health condition in 2014?

Answer 6

Only 41% of adults in the U.S. with a mental health condition received mental health services in 2014

Question 7

What percentage of adults with a serious mental health illness received treatment in 2014?

Answer 7

62.9% received mental health services 2014

Question 8

What percentage of children with a mental health condition received treatment in 2015?

Answer 8

Just over half (50.6%) of children with a mental health condition aged 8-15 received mental health services in 2015.

Question 9

When does mental illness begin?

Answer 9

Half of all chronic mental illness begins by age 14; three-quarters by age 24.

Question 10

How many patients does Brooklyn Minds have?

Answer 10

524 total patients since Sept 2016 founding (100%)

Question 11

How many active patients does Brooklyn Minds have?

Answer 11

450 active patients (active = seen in last 24 months AND not formally discharged) (86%)

Question 12

How many patient inquiries does Brooklyn Minds receive over a 2.5 month period?

Answer 12

356 potential patient inquiries over 2.5 month period approx. 127 per month / 32 per week (100%) note: this is May 13-Jul 24, 2019 which includes “slower” months. We will update stats with busier Sept-Oct months, then again Dec - Jan months.

Question 13

How many intakes does Brooklyn Minds do in a 2.5 month period?

Answer 13

24 patient intakes over same 2.5 month period in the preceding bullet point approx.13 per month / 3 per week (7%)

Question 14

What has been the reduction in utilization of ER visits by patients since joining Brooklyn Minds?

Answer 14

ER Visits: 38 patients /  6 patients 84%  reduction
# of ER Visits: 75 times /  11 visits - 85%  reduction

Question 15

What has been the reduction in utilization of psych hospitalization by patients since joining Brooklyn Minds?

Answer 15

Psych Hospitalization: 31 patients / 5 patients - 84%  reduction
# of Psych Hospitalizations:  60 times / 8 times - 87% reduction 
# of days Psych Hospitalization: 284 days / 7 days - 98% reduction

Question 16

What has been the reduction in utilization of residential programs by patients since joining Brooklyn Minds?

Answer 16

Residential Program: 21 patients / 2 patients - 90% reduction
# days in Residential Program: 112 days / 56 days - 50% reduction

Question 17

What has been the reduction in utilization of intensive outpatient facilities by patients since joining Brooklyn Minds?

Answer 17

Intensive Out Patient / Partial Hospitalization: 18 patients / 4 patients - 78% reducttion
# times attended IOP/PHP: 32 times / 4 times - 88% reduction

Question 18

How much revenue has Brooklyn Minds made?

Answer 18

$6.496 million total patient revenue (cash collections) since Sept 2016 founding to July 24, 2019

Question 19

How much revenue has Brooklyn Minds made per patient on average?

Answer 19

$12,397 per patient average revenue

Question 20

How much revenue is coming from patient pay vs. insurance?

Answer 20

$5.991 million patient direct pay / 92% of revenue

$505K insurance payments / 8% of revenue

Question 21

What is Gross Margin?

Answer 21

revenue less costs of services (Labor & benefits of Clinicians, Admins, Coaches, Med Supplies, Office Expenses)

Question 22

What is clinical net profit?

Answer 22

Gross Margin less clinical costs (Rent, software, utilities, malpractice, training, travel, meals, CPE/Conferences, recruiting)

Question 23

What are SG&A expenses?

Answer 23

labor & benefits for management, operations, marketing, tech, finance depts plus overhead such as rent, travel, legal, auto, and insurance

Question 24

What is EBITDA?

Answer 24

earnings before interest, taxes, depreciation and amortization expenses, or clinical net profit less SG&A costs

Question 25

By year six ‘maturity’ where should we be in terms of patients and revenue?

Answer 25

We reach 475 patients and $5.88M revenue by year 6 “maturity”, $3135M/53% gross margin; $2.415M/41% clinical net profit

Question 26

When will $600k cap ex be paid back?

Answer 26

$600K cap ex is paid back within 22 months of opening

Question 27

When will unit profitability be achieved?

Answer 27

8 months after opening

Question 28

When will unit break even be achieved?

Answer 28

12 months after opening

Question 29

How big will a standard clinic be? What does that look like?

Answer 29

2,750 square feet at $600K cap ex for standard clinic, includes 7 clinical offices (shared by 10 providers staggered morning/day/evening/weekend visits), 2 TMS rooms, reception/waiting area, kitchen/break area, ADA bathrooms, group room and small admin office

Question 30

How big will a flagship clinic be? What does that look like?

Answer 30

4,000 square feet for flagship office - one flagship per new market which houses conference room, manager office, flex/training space, and larger admin office, also adds $250K cap ex in addition to $600K standard capex, or $850K cap ex for flagship

Question 31

What is our financial forecast by 2024?

Answer 31

Almost $100M revenue by 2024, 38 locations, 41% gross margin, 29% clinical net profit adn 21% EBITDA

Question 32

How many offices do we plan to have in 2020? 2024?

Answer 32

Number of new offices annually 2020 to 2024 are 3 (2020), 5, 7, 9, and 11 (2024)

Question 33

How much do we expect to raise in each capital round?

Answer 33

Series A, B and C capital raises 2019, 2020 and 2021 estimated at $8M each round

Question 34

When will operating cash flows cover new office openings?

Answer 34

By 2022/2023 operating cash flows are expected to be able to fund new office openings and no further capital raise required