Thor Rx – An Effective Cure for Alcohol Hangovers

ReLife Technologies, Inc. David Comfort, DPhil, Founder & CEO

Revised December 9, 2014 Confidential

“Don't Get Floored, Get Thor'ed!” ThorRx.com

01 – The Problem – Alcohol Hangover A hangover is the set of unpleasant effects of excessive alcohol consumption and typically has the following symptoms:

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Symptom Class Symptoms

Cognitive Decreased attention and concentration

Constitutional Fatigue, weakness, thirst, drowsiness and dry mouth

Gastrointestinal Nausea, vomiting and stomach pain

Mood Depression, anxiety and irritability

Pain Headache and muscle aches

Sensory Vertigo, sensitivity to light and sound

Sleep and biological rhythms Decreased sleep, decreased REM and increased slow-wave sleep

Sympathetic hyperactivity Tremor, sweating, increased pulse and systolic blood pressure

Scientific researchers have largely neglected the topic of alcohol hangover.* There is no theoretical model explaining the pathology of hangovers and no effective animal model. Thus, hangovers are poorly understood.

Current scientific evidence suggests that the primary causes of a hangover are:

(1) The direct toxic effects of alcohol.

(2) The toxic effects of compounds produced by the metabolism of alcohol, especially acetaldehyde and acetate.

(3) An imbalance in the immune system after excessive alcohol consumption.

• Congeners (substances present in alcoholic beverages, which are either naturally-occurring or added during production), particularly methanol, may aggravate the severity of a hangover.

• For more information about the symptoms of a hangover, the potential causes of a hangover and the science of hangovers, please visit our website at http://thorrx.com/. We also have a comprehensive bibliography of the scientific literature about hangovers.

*Penning, R., M. van Nuland, L. A. Fliervoet, B. Olivier, and J. C. Verster. "The pathology of alcohol hangover." Current Drug Abuse Reviews 3, no. 2 (2010): 68.

“Hammer out your Hangover!” ThorRx.com

01 – The Problem – Alcohol Hangover

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Acetaldehyde is highly reactive and can cause tissue damage due to its toxic effects, which may lead to hangover symptoms such as nausea, sweating, rapid pulse and headache.

Ethanol Acetaldehyde Acetate

Alcohol dehydrogenase

Catalase

Cytochrome P450

Aldehyde dehydrogenase

Interleukin 12 (IL-12)

Interferon-gamma (IFN-γ)

Interleukin 10 (IL-10)

An increase in production of IL-10 supports the suggestion of impaired cellular immunity during a hangover.

Therefore, studies suggest that a hangover and dehydration are two independent, yet co-occurring processes, that have different underlying mechanisms.

A recent study suggests that the accumulation of acetate, not acetaldehyde, results in hangover headache. [Maxwell, Christina R., et al. "Acetate causes alcohol hangover headache in rats." PloS one 5.12 (2010): e15963.]

After ingestion and absorption, alcohol (ethanol) is metabolized.

An increase in the production of IL-12 and IFN-γ during a hangover supports the suggestion that hangovers are associated with immune functions.

Alcohol has been shown to interfere with immune functions, particularly the cytokine pathway.

Alcohol promotes urine production and subsequent dehydration may affect electrolyte balance.

Urine Production Electrolyte Balance Dehydration

However, studies suggest that electrolyte changes play little to no role in the genesis of a hangover.

“Crush your hangover!”

Penning, R., M. van Nuland, L. A. Fliervoet, B. Olivier, and J. C. Verster. "The pathology of alcohol hangover." Current Drug Abuse Reviews 3, no. 2 (2010): 68.

ThorRx.com

02 – The Market The US market size for the THOR Rx Hangover Cure can be estimated by the number of binge drinkers*.

• How many binge drinkers are there and how often do they binge drink?

*Binge drinking is defined as consuming four or more alcoholic drinks per occasion for women and five or more for men during the past 30 days. †Based on survey of more than 400,000 people in the 2009 Behavioral Risk Factor Surveillance System; Centers for Disease Control and Prevention (CDC). Behavioral Risk Factor Surveillance System Survey Data. Atlanta, Georgia: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, 2009.

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Frequency, Binge Drinking by Age Group†

35 million Binge Drinkers in US (Ages 18 to 64) Binge Drinkers Drink 4 Times per Month

“Party like a Rock Star at night, wake up like a god in the morning!” ThorRx.com

• Do binge drinkers consume enough alcohol to get a hangover?

*BAC =Blood Alcohol Concentration. †Verster, Joris C., Richard Stephens, Renske Penning, Damaris Rohsenow, John McGeary, Dan Levy, Adele McKinney et al. "The alcohol hangover research group consensus statement on best practice in alcohol hangover research." Current Drug Abuse Reviews 3, no. 2 (2010): 116. ‡Average BAC based upon average US man and woman’s weight and average number of drinks consumed per binge drinking episode.

02 – The Market

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Intensity, Binge Drinking by Age Group

Binge Drinkers average 7.5 Drinks per Episode

0.00%

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BAC required forHangover

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BAC* after Binge Drinking Episode

Thus, Binge Drinkers consume enough to get a hangover

†

‡ ‡

ThorRx.com

02 – The Market • How many hangovers are there per year in the US?

• What is the total addressable US market size?

• How much is each customer worth per year?

*Howland, Jonathan, Damaris J. Rohsenow, and Erika M. Edwards. "Are some drinkers resistant to hangover? A literature review." Current Drug Abuse Reviews 1, no. 1 (2008): 42-46. †Based upon average frequency of binge drinkers.

211222222

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26.3 million Potential customers X X

$3.49 Average

transaction = $4.52 Billion X

4.1† times per

month

12 months

1customer Each customer

potentially worth $172 per year

X X $3.49

Average transaction

= X 4.1†

times per month

12 months

35 million binge

drinkers X 4.1†

times per month X

_ ~25% of people immune from hangovers 12

months = 1.29

Billion Hangovers

per year 26.3 million

Potential customers =

*

• The sales of products taken for hangovers is estimated to reach $785 million in 2018, versus $695 million last year (2013), according to Euromonitor.

• “If you could actually cure hangovers, that would be a billion dollar idea,” says Christopher Schmidt, consumer health analyst at Euromonitor.

ThorRx.com

02 – The Market - Functional Beverages as a Comparison

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• In 2012, total U.S. sales for the energy drinks and shots market was worth more than $12.5 billion (Mintel).

• The energy drinks and shots industry is expected to continue this growth path, by rising to a valuation of $21.5 billion by 2017.

• The market for coconut water beverages grew 100% in 2011 taking the combined retail sales value of the US and European markets to over $265 million. The market is expected to grow another 50% in 2012 (Research and Markets).

FUNCTIONAL BEVERAGES can be defined as beverages which have physiological benefits beyond basic nutrition, i.e., they contain bioactive compounds.

• The US functional beverage market—including energy drinks, sports drinks and functional waters; ready-to-drink tea and coffee; and yogurt drinks and smoothies—approached $23.4 billion in 2010, up from almost $19 billion in 2006, for a compound annual growth rate (CAGR) of 5.5%, (Packaged Facts).

• The global functional drinks industry grew by 3% in 2010, to reach a value of $48 billion. In 2015, the global functional drinks industry is projected to have a value of $62 billion, an increase of 29% since 2010 (Packaged Facts).

ThorRx.com

03 – The Solution: THOR Rx -The Hangover Remedy Thor Rx is a revolutionary remedy for hangovers, which consists of a two-capsule packet that is consumed prior, during, or after an alcohol drinking episode to counteract a hangover.

INGREDIENTS: Thor contains a proprietary blend of naturally-occurring ingredients, which we have demonstrated to be highly effective in counteracting hangovers. Our claim has been proven in small-scale studies and has support in the scientific literature. Thor’s active ingredients include plant extracts which have been demonstrated to have anti-inflammatory and anti-oxidative properties, naturally-occurring oils, as well as vitamins and minerals.

PATENT VS. TRADE SECRET: Based upon discussions with patent attorneys and regulatory consultants, we believe it is advantageous to keep our combination of ingredients a trade secret. A patent can be “hacked” by a good chemist or a patent attorney, as well as being “knocked off” in countries such as China and India with a less than rigorous intellectual property environment.

Thor’s key active ingredients are obfuscated by binding them to dextrose and listing them on the label as a dextrose complex, as well as listing them as a proprietary blend.

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Production Run Cost of Ingredients

COGS Price Point Gross Profit margin

100,000 $0.08 $0.44 $3.49 87%

10,000,000 $0.06 $0.29 $3.49 92%

Unit Economics

Thor Rx can be classified as a dietary supplement, so we do not need to obtain FDA preapproval before production or sale.

ThorRx.com

03 – The Solution: Efficacy of THOR Rx to Reduce Hangover Symptoms

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ReLife Formulation #1

*Hangover symptoms and their severity were scored using the Acute Hangover Scale (AHS) on a scale ranging from 0 (absent) to extreme (10). † The mean of the nine scores of hangover symptoms (except concentration) is the AHS total hangover severity score.

N = 100 subjects P = 0.0001

THOR

ThorRx.com

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ReLife Formulation #2

03 – The Solution: Improved THOR Rx Formulation Demonstrates Increased Efficacy

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N = 10 subjects

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Strongly Agree Agree Not satisfied Not effective

“Does THOR Rx reduce hangover symptoms?”

ReLife Formulation #1 N = 100 subjects

An optimized formulation of THOR Rx completely eliminates several symptoms of a hangover in test subjects. Additional testing is underway to validate these claims.

An independent clinical research organization can conduct a randomized, double-blind, placebo-controlled, crossover, adaptive-design study on the efficacy of Thor Rx at a cost of $39K to $60K, depending upon the number of test subjects.

THOR

THOR

ThorRx.com

Thor Rx has multiple product extension possibilities including:

“No-Hangover” Thor Vodka: The active ingredients can be added directly to the alcohol, thereby circumventing the “purchase-timing problem,” whereby consumers do not necessarily plan for a hangover and hence do not purchase a hangover remedy prior to needing it and are reluctant to leave home once they have a hangover. In addition, the required amount of active ingredients to prevent a hangover is directly related to the amount of alcohol consumed, hence providing “automatic dosing.”

*Watanabe, A., Hobara, N., & Nagashima, H. (1985). Lowering of liver acetaldehyde but not ethanol concentrations by pretreatment with taurine in ethanol-loaded

rats. Experientia, 41(11), 1421-1422.

03 – The Solution: Thor Rx Product Extensions

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“Thor Recovery”: Fruit juices such as guava or acai can be added to the Thor hangover formulation and marketed as a general recovery drink.

“Thor Rx Shot”: We are formulating Thor Rx into a 2oz. Shot similar to a 5-Hour Energy.

“Thor Energy”: The Thor Hangover Remedy shot can be formulated into “Thor Energy” with caffeine and taurine. [Indeed, taurine could blunt the rise in blood acetaldehyde following ethanol consumption.]*

Can also be have a second brand, e.g., ReLife Recovery, for upscale recovery drink for Napa Wine Tours and other luxury markets.

ThorRx.com

04 – The Competition “There are no effective hangover cures to date (besides drinking in moderation).”

- Joris Verster, Professor, Utrecht University, Netherlands, Editor-in-Chief of Current Drug Abuse Reviews, Alcohol Hangover Research Group. [Personal Communication]

Competition: There are several products on the market which claim to be remedies for a hangover, but there has been no significant market penetration by any of these brands. These include Hangover Joe’s, NoHo and Never Hungover. Most hangover cures offered on the market contain herbal ingredients, vitamins or food. In general, there is no scientific rationale for including these ingredients.

Only a very few hangover cures have been scientifically investigated. Most of the hangover remedies that have been scientifically studied show no efficacy, or have been only successful in reducing the presence and severity of some hangover symptoms.*

Home remedies: People use a variety of home remedies for a hangover including: painkillers such as aspirin, Tylenol® and ibuprofen; greasy food; Gatorade or other sports drinks; water; extensive sleeping. etc. However, these obvious and frequently applied remedies to relieve hangover symptoms have not been the subject of scientific research. In addition, Tylenol® (or acetaminophen) can cause liver damage and Ibuprofen can cause stomach bleeding.

* Verster, J. C., and R. Penning. "Treatment and prevention of alcohol hangover.“ Current Drug Abuse Reviews 3, no. 2 (2010): 103-109. †McGregor, N. R. (2007). Pueraria lobata (Kudzu root) hangover remedies and acetaldehyde-associated neoplasm risk. Alcohol, 41(7), 469-478.

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In particular, Hangover Joe’s active ingredient is kudzu, which has been found to increase the risk of acetaldehyde-related disease and neoplasms † and could represent a significant health risk, particularly with chronic use in subjects who have a higher alcohol/smoking consumption. NoHo’s active ingredients are prickly pear fruit extract and ginger root extract. There is evidence that prickly pear fruit extract could be beneficial in the treatment of hangover, but only if the extract is processed in a specific manner. There appears to be no evidence in the literature which suggest that ginger root extract would be beneficial. Never Hungover’s proprietary formulation does not appear to contain any ingredients which have been shown to be effective in treating hangovers.

ThorRx.com

Traction Channels Maximize chances of getting traction: We will drive traction for Thor Rx by optimizing for the following marketing / traction channels:

05 –Marketing & Distribution Plan

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Branding The relationship between customers & Thor Rx • Build strong brand for Thor Rx • World Party Website • Thor Smartphone App • Sponsorships - Music Festivals,

Alt events • Thor Action - Cause Marketing

to support Climate Change solutions, Activism Social Network

Brainstorm

Rank

Prioritize Test

Focus

Affiliate Programs

Business Development

Community Building

Content Marketing

Email Marketing

Engineering as Marketing

Existing Platforms

Offline Ads

Offline Events Public Relations

Sales

Search Engine Marketing

Search Engine Optimization

Social & Display Ads

Targeting Blogs

Trade Shows

Unconventional PR

Viral Marketing

ThorRx.com

05 –Marketing & Distribution Plan

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Target Locations • Urban Nightlife clusters (LA, NY, Chicago, Miami)

• LGBT villages (Chelsea, WeHo, Castro)

• Tourist Destinations (Las Vegas, New Orleans, Ibiza)

• College towns (Boulder, Tucson, Bloomington)

• Sports venues

• Large Bars and Nightclubs

• Napa and Sonoma Wine tours

• Music Festivals, Prides & Street Festivals

Primary Customer Segments • College Students (Fraternities, Sororities) • LGBT • Sports Fans • Clubbers and Bar patrons

Sales Channels / Distribution Harvest demand for product

• Online Direct (website, mobile)

• Amazon, Google, eBay

• College Affiliate Program

• Distributors

• Nutrition Stores

• Natural Foods markets

• Liquor/Beer & Wine Stores

• Drug store chains (CVS, Walgreens, etc.)

• Convenience Stores (7-11, Circle-K)

• Casinos, Resorts

• Walmart, Costco

• Supermarkets

Sales and Marketing Strategy 1. Bulls eye framework for online traction…

• Targeting Customer Segments,

• Using Online Direct Sales (website) as well as existing platforms

2. Focus on Trendsetters…

• In Customer Segments,

• In targeted local markets,

• Using bulls eye framework to ID and optimize traction channels

• Implementing one to a few sales channels.

3. Expand from one locale to additional locales

4. Expand Customer Segments

5. Expand Sales Channels

ThorRx.com

06 – The Thor Rx Team, Barriers to Entry, & Ethical Issues

Barriers to Entry / Unfair Advantage:

Market leader using “breakthrough” technology.

Trade secret with potential for patent protection.

Novel approach by putting active ingredients directly into alcohol and drink mixers.

Ethical Issues: There is no scientific proof to support the assumption that the development of effective treatments for hangovers will result in increased alcohol consumption, due to the diminished negative consequences. Moreover, research has demonstrated that people generally do not adjust their drinking behavior after having experienced hangovers.*

For more information about whether or not a hangover cure would cause people to drink more, see our webpage on the topic. *Epler, A. J., Tomko, R. L., Piasecki, T. M., Wood, P. K., Sher, K. J., Shiffman, S. and Heath, A. C. (2014), Does Hangover Influence the Time to Next Drink? An Investigation Using Ecological Momentary Assessment. Alcoholism: Clinical and Experimental Research. doi: 10.1111/acer.12386.

Copyright © ReLife Technologies, Inc. 2014 / Confidential p15

Founder and CEO David Comfort, DPhil Doctorate in Biochemistry, Oxford University Post-Doc Biochemistry, UCLA BS, Engineering, University of Maryland Technical Lead, Startups (Search Beat, Cognia, Tacitus) Sales, Marketing, and retained executive search for

Pharmaceutical and Biotech Companies

First Hire - Vice President, Marketing Maximilian Buschman Senior Publicist, BKPR 8 years in leading public relations / marketing

strategies in entertainment industry. Specializes in corporate, personal and media project

communication, strategy development and management, in addition to crisis communications.

Non-profit communications and community relations. BA Film and Digital Arts, Long Beach State

ThorRx.com

07 –Usage of Funds and Milestones Proceeds from the seed funding round will be used to fund the optimization of flavoring, sweetening, coloring, as well as manufacturing and shipping. The remainder will be used for operating costs including payroll and marketing.

Copyright © ReLife Technologies, Inc. 2014 / Confidential p16

Stage Garage Stage Seed Stage Venture Stage

Structure

• 1 founder • $30K investment/Self-funded

• 2 person team • $350K investment

• 5-10 person team • $5M investment

Product

• Developed effective formula • Tested formula and optimized • Built Functional Prototype • Packaging Format & Design

• Ship product • Additional product produced and

packaged

• Manufacture and ship product (1,000,000+) • Ramp up production • Product extensions

Milestones • Demonstrated efficacy • Packaging Design & tested • Customers surveyed • Built initial sales channel • Initial product produced (50,000 units)

• Micro-Market marketing and distribution • Optimize product/market fit • Test Customer adoption, customer satisfaction • Demonstrate concept, reduce product risk, test functional use

• Optimize and segment marketing channels • Regional marketing and distribution • National marketing and distribution

Customer & Revenue Goals

• 14K cust/month after 1 year • $48K/month after 1 year

• 200K cust./month after 2 years • $692K/month after 2 yrs. • 600K cust./month after 3 years • $2 mil/month after 3 years

Time Period 3 years 1 year 2 years

ThorRx.com

08 –Financials

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Problem/ Solution Fit

Copyright © ReLife Technologies, Inc. 2014 / Confidential

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09 – Thanks & Contact Info

Thank You!

Thor Rx David Comfort, DPhil

ReLife Technologies, Inc.

P.O. Box 692036

West Hollywood, CA 90069

310-880-7791

davidmichaelcomfort@gmail.com

Copyright © ReLife Technologies, Inc. 2014 / Confidential p18

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