HDSCORESDEMOCRATIZING HEALTH DEPT INSPECTION DATA

Matthew Eierman

@HDScores · Matthew@HDScores.com · HDScores.com443-494-9156

TEAM

CEO COO CTO CFO

TEAM

ADVISORSSEAN MURPHY - DATA SCIENTIST Keith ROGERS – HOSPITALTY ADVISOR

EDWARD MCKEOWN & KAREN RECKER - SANITATION ExpertsAARON SICHEL – TECHNICAL WRITER

MIKE KAVIS – BOARD OF DIRECTORS

IN 2013:56 PERCENT$3 BILLION$77.7 BILLION$1.6 TRILLION

48 Million PEOPLE3.8 Million PEOPLE128 Thousand PEOPLE3 Thousand PEOPLE$7 MillionEVERY ESTABLISHMENT IS REQUIRED TO HAVE A LICENSE TO SELL FOOD to the Public FROM THE HEALTH DEPARTMENT & CONSENT TO INSPECTIONS.

BIG DATA FOOD SERVICE

· UNIQUE Existing FRAMEWORKS· Legacy Infrastructure· Data Aggregation & Entry · UNSTRUCTURED DATA · DATA STANDARDIZATION ISSUES· DATA NORMALIZATION ISSUES· LOCAL VARIANTS IN DATA· LOCAL POLICIES & PROCEDURES in Data · OPEN DATA Requirements

· INSPECTOR BIAS & HABITS· Restaurant Habits & Policies· RESTAURANTS ASSOCIATIONS· CONSUMER HABITS & EXPECTATIONS· lOcal/State/Federal Policies & Procedures in Food Code

2550 JURISDICTIONS each with PROBLEMSIN THE UNITED STATES

GOVERNMENT Program· Interactive Mapping System · Querying Interface· Rest Based API - for gov developers· Mobile and Web Applications· Real-time Big Data Analysis · Report Digitization Systems · Data Hosting & Management · Safe and Secure Data Access· Economic Development Program

with Marketing Campaign

Inclusive Pricing$50 per Establishment

Per Year(3-5 Year Contract)

Interactive Mapping SystemClustering

By Neighborhood By Jurisdiction

Jurisdictional Borders are Now Useless

New York CityIn 2010, NYC instituted a New Inspection Scoring System. Posting of Establishment Inspections at the Door of the Establishment &

Online.

- 91% of New Yorkers approve of posting restaurant scoring.- 88% of New Yorkers factor inspection score into decisions when dining out. - 76% of New Yorkers feel more confident about the restaurant if they have an A Score.

-Food borne Illness infections of Salmonella fell by 14% in the first year of program.-10% drop in violations for signs of mice in restaurants in NYC.

Year

2008

2009

2010

2011

2012

New York City’s Inspection Program Generated

Growth Rate % & $

(2.1%) $245,196,000

(2.7%) $324,000,000

(9.3%) $1,200,000,000

(6.7%) $884,400,000

(5.5%) $774,642,000

Sales Tax

8.875%

8.875%

8.875%

8.875%

8.875%

New Sales Tax Revenue

$21,761,145

$28,755,000

$106,500,000

$74,940,500

$68,749,478

BY MAKING DATA Transparent and Easy to read and search, HDSCORES believes that we Can

Replicate those HISTORICAL RESULTS.

Cut Food Borne Illness by 15% in a Given Jurisdiction

Creating ECONOMIC DEVELOPMENT EFFECTS IN A Given JURISDICTION, Increase Restaurant Sales Tax Revenue by

3X over the course of a Year

Increase consumer confidence in restaurant industry & HEALTH DEPARTMENTS

HDScores LEAD SYSTEMGenerates Short Sales Cycle Transactional revenue for HDScores

EASY TO READ AND SEARCH FORMAT

Creates detailed Targeted TIME SENSETIVE BUSINESS LEADS from INSPECTION DATA

FREE TO SEARCH

ONLY PURCHASE LEADS THAT MEET YOUR REQUIRMENTS

· Revenue $10.6 billion· Wages $3.6 billion· Profit $803.2 Million · 6.3% Annual Growth Rate· # of Businesses in the US 98,514· 78.7% of Businesses are local or regional Companies· 63% of Operators buy leads or use lead generation programs· Average Targeted Commercial qualified lead cost $120

Pest Control Industry HDSCORES Leads

LEADS Come Straight from the Health Dept, Time Sensitive,

Targeted, Detailed & Qualified

Selling FOR $30 PER LEAD

Cost HDScores $0.03 Aggregate a LEAD

(Currently)

BiteScore

Competition

THIS Presentation Focuses ON THE MARKETWE SO HAVE DATA, CLIENTS, AND PARTNERS IN…

Use of ProceedsWorking CapitalKey Employee HiresTechnology AdvancementsFile Patents on our TechnologyBUSINESS DEVELOPMENT

CUSTOMERS & CAPITAL

OUR ASK

HDSCORESDEMOCRATIZING HEALTH DEPT INSPECTION DATA

Matthew Eierman

@HDScores · Matthew@HDScores.com · HDScores.com443-494-9156

BONUS SLIDES

Rhode IslandIn November 2007, the State of Rhode Island went to a Digital Health Department

posting all inspection scores online. By May 2008, they had 1.6M page views, there are only 1.3M people in the State of Rhode Island. They still receive over a 1 million pages

views a year.

Los Angeles In 1996, the average establishment inspection score was a 75% after requiring posting of inspection data by the front door in 2 years establishment inspection scores jumped

to 90%. LA had a 13.6% drop in food borne illness related hospitalizations. A similar results happened in NYC as well.

In March 2001, 61% of UK citizens were concerned about food poisoning. In March 2011, 32% of UK citizens were concerned about food poisoning.

The UK Food Standards Agency rolled out a new sanitation program in 2010. Public awareness of the UK Food Standards Agency is extremely high

at 81 percent and an amazing 64 percent Approval of the agency to do its job.

United Kingdom

United States Restaurant Industry1,500,000

Establishments

In 2012, there were Places to buy food in the United States.

$1.6 Trillionin Sales

In 2012, the United States for Restaurant, Grocery, and Retail

Food Sales.

13,100,000People

In 2013, restaurants account for 13,100,000 jobs in the US 10% of

employment in the Country.

For Every$1 spent

in the US restaurants generates an

additional $.89 in sales for the US Economy.

For Every $1 Million spent

in the US restaurants generates

an additional 24.6 jobs in the country.

In 2023 Restaurants in the US are projected to

employ 14,300,000 people.

HDScores SOLVEDData Aggregation Data AutomationData Standardization Data Transparency Distribution Strategy Data IntegrityData Monetization Domain Expertise

Without REQUIRING HEALTH DEPTS TO MAKE ANY CHANGES IN ESTABLISHED LAWS, POLICIES, or

Procedures

Under the HOOD

Technology Partners

CREATING THE World’s Largest Health Dept Inspection Database

WEB 2.0 Standard Technology Stacks

Break even in 3rd

Quarter after receiving funding.

5 Year Financial Projections

EBITDA breaks even in the 4th Year

$10,427,909 $5,518,073 $2,173,636 $116,514 ($251,449)Profit (Loss)

$7,692,080$5,949,048 $4,030,666 $2,555,785 $1,153,116 Expenditure

$18,119,989 $11,467,121 $6,204,302 $2,672,299 $901,667 Revenue

54321Year

Exit Strategy

HDScores would make an amazing acquisition choice for a company involved in

Local Search or Data Aggregation.