nexeon corporate overview

Nexeon MedSystems Inc.Corporate Overview

www.nexeonmed.com

NEXEON MEDSYSTEMS INC. www.nexeonmed.com

Forward-looking Statements

This information contains forward-looking statements which may be identified by their use of words like "plans," "expects,""will," "believes," "intends," "estimates," "anticipates" or other words of similar meaning. All statements that addressexpectations or projections about the future, including statements about Nexeon MedSystems Inc.’s (“Nexeon”) growthstrategy, product development, regulatory approval, market position, anticipated benefits of acquisitions, timing ofanticipated benefits from restructuring actions, outcome of contingencies, such as litigation and environmental matters,expenditures and financial results, are forward-looking statements. Forward-looking statements are not guarantees of futureperformance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company's control. Some of theimportant factors that could cause the company's actual results to differ materially from those projected in any suchforward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new productsand optimally manage product life cycles; significant litigation and environmental matters; failure to appropriately manageprocess safety and product stewardship issues; changes in laws and regulations or political conditions; global economic andcapital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; securitythreats, such as acts of sabotage, terrorism or war, weather events and natural disasters; ability to protect and enforce thecompany's intellectual property rights; successful integration of acquired businesses and separation of under-performing ornon-strategic assets or businesses. The company undertakes no duty to update any forward-looking statements as a result offuture developments or new information.

NEXEON MEDSYSTEMS INC. www.nexeonmed.comNEXEON MEDSYSTEMS INC. www.nexeonmed.com

RETURN ON EQUITY

Minimal capital requirements to reach breakeven profitability

PROVEN LEADERSHIP

8 profitable exits to shareholders, Unmatched clinical experience

SLOW PUBLIC OFFERINGEarly investors can receive benefits of market

pricing forces before IPO

Investment Hypothesis


Expertise in active implantable medical devicesDeveloping & manufacturing devices & remote management software

100+ Patents Related to implantable medical devices & Internet of Medical things (IoT) technology

2017 Commercial Launch of Leading ProductDeep brain stimulation system for Parkinson’s Disease

Funded Development Pipeline$10M in awarded licenses/ subsidiaries to complement nearly $40M in development costs to date

Adaptive bioelectronics solutions

2012

The g lobal b ioe lect ron ics market w i l l pass $7 b i l l ion by 2020 2016 2020We are here

SCS (Spinal cord simulation)

DBS (Deep brain simulation)

SNS (Social nerve simulation)

VNS (Vargus nerve simulation)

Others

$4.5B$2.6B

$7.89B



Deep Brain Stimulation Market

$0

$200

$400

$600

$800

2014 2015 2016 2017 2018

Annual Sales (in millions of USD)

CAGR

Market for DBS devices to treat patients with Parkinson’s disease

projected to reach $3.21B globally by 2020

MDT9% STJ

1%

BSX1%

Untreated DBS Candidates

89%

Worldwide Landscape

MDT STJ BSX Untreated DBS Candidate


ü FASTER, PATIENT-SPECIFIC PROGRAMMING LFP recording, 32 controllable current sources with multiple stimulation frequencies, and delivery of most any conceivable waveform

ü ADAPTIVE SYSTEM Sensing & recording capabilities allow for improved monitoring of disease progression & therapy efficacy & provides foundation for closed-loop system

ü REMOTE MONITORINGIncreases patient independence while decreasing in-office visits with physician

ü RECHARGEABLE IMPLANTDiminishes need for future neurosurgeries

Synapse Therapy AdvantagesTHE ONLY SYSTEM THAT ALLEVIATES SHORTCOMINGS IN TODAY’S DBS THERAPY


First Clinical Result

• Very successful outcome for both patient & surgeon

• Patient reclaimed normal quality-of-life activities

• No adverse effects reported after 14 mosof post-op follow up

• Data accepted for presentation at EFSSN conference Sept 2012

Established DBS Sales ChannelAfter 20+ yrs proven efficacy (~135,000 DBS recipients worldwide)

> $ 3 1 , 0 0 0$ 1 , 7 0 0

> $ 2 2 , 0 0 0

Insurance paid per procedure:

Attractive economics for hospital, physician, &

manufacturer

Provider Network Medical codes (CPT for DBS) Reimbursement


Positioned for revenues to grow to ~$100M in 2022

Sales & Marketing Launch2017 Plan Overview

CE Mark Technical File

$10M in awarded non-dilutive funding

5% global effective tax rate

Synapse commercial launch with sales beginning in Q4 2017

Indirect sales in UK, Germany, & France

PMA Pivotal Study to begin 2018


Target Segment & DemographicsTerritory Coverage with Minimal Sales Force

EU territory coverage

comparable to New England


Conservative Market Penetration vs. Advanced Bionics Rate MARKET SHARE: FIRST 5 YEARS

0.0%

5.0%

10.0%

15.0%

20.0%

Year 1 Year 2 Year 3 Year 4 Year 5

Nexeon Share

Advanced Bionics

Commitment to InnovationInvesting in what’s next for device & system optimization

LFP Recording(Local Field Potential Recording)

Current Clinical Problem:DBS not well understood with open-loop systems

Our Solution:Recording neuron activity ~1uV allows objective

selection of electrode contacts, faster programming, better monitoring disease progress & therapy efficacy, all features necessary for closed-

loop therapy system

Targeted Stimulation (Directional field steering by split ring electrodes)

Current Clinical Problem: Uniform field distribution in normal electrode

stimulates target & non-target tissue the same

Our Solution:Split ring electrode with field steering allows more

selectivity, eliminating collateral stimulation of unwanted targets

Unique features sought after by most

clinicians

TOP VIEW

Split Ring Electrode

Indication Expansion

Deep Brain StimAdditional applications in development include dysphagia, obesity, cognition

Expansive opportunity in neurostimulation with Synapse’s

platform technology

Vagal Nerve StimFor Epilepsy, asthma, COPD2nd product launch with Synapse

Existing reimbursementPre-submission meeting complete

Funded preclinical work in progress

Peripheral Nerve StimManufacturing agreement with GlaxoSmithKline for their Bioelectronics programAdditional applications for Synapse planned in peripheral modulation


Leadership

WILL ROSELLINI

6 advanced degrees related to translational medicine

15-yr vet in neurotech3 successful exits in medtech

BRIAN BLISCHAK

Neuroengineer with 20 yrs in medical device field

Successfully led 3 neurostimproduct launches from new

product to US approval

CHRIS MILLER

15+ yrs serving as CFO, treasurer, and interim CFO for wide variety of early-stage & non-profit organizations, both

public & private

Chairman, CEO President, Chief Commercial Officer

CFO



13 Patents Granted

7Patents Pending

68 Patents Granted

6Patents Pending

Self-healing networks (Siemens portfolio)

Remote monitoring (Medtronic portfolio)

Internet of Medical Things(Siemens portfolio)

Proprietary ASIC(Synaptix acquisition)

Intellectual Property Position


Nexeon Market Cap ProfileOTC QB

Shares Issued & Outstanding 25,224,953

Fully Diluted 33,874,463

Potential Future Float ~7,765,000

Options 4,497,000(All exercisable at $1.00)

Warrants 4,152,510Warrants, 2 Years @ $2.00

Market Cap $23,224,953@ $1.00 Share (12/16 Pvt. Placement)

Cash Position ~$2,039,000

Ownership Insiders & Affiliates ~76.5%Includes Warrants & options


Investment Hypothesis


RETURN ON EQUITY

Minimal capital requirements to reach breakeven profitability

PROVEN LEADERSHIP

8 profitable exits to shareholders, Unmatched clinical experience

SLOW PUBLIC OFFERINGEarly investors can receive benefits of market

pricing forces before IPO

nexeon corporate overview

Health & Medicine