wellness center profile

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Institutional Analyst Inc Page 1 Wellness Center (WCUI) $0.40 Anti-Counterfeiting Technology Gaining Momentum Wellness Center (WCUI), is a Chicago-based incubator for companies combining the best in class technologies, software, and devices with an emphasis on healthcare technology. The Company added Stealth Mark, an anti- counterfeiting company to its portfolio in 2014. Stealth Mark gained considerable momentum in 2016, landing two high-profile partnering agreements in the motorsports industry (luxury goods & auto-parts), including protecting products from companies like American Indy Car/Formula One in association with RevBranding. Stealth Mark’s technologies enable manufacturers to thwart the emergence of counterfeit and non‐compliant parts in the motorsports industry, as well as in dozens of other industries - including the medical industry using near invisible microparticle technology. In addition to protecting Companies from losing sales to counterfeiters, sub-par products can also endanger the lives the drivers (or patients), when cut-rate parts or pills fail. Wall Street’s Oldest Newsletter Covering Internet and Technology Stocks

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Page 1: Wellness Center Profile

I n s t i t u t i o n a l A n a l y s t I n c Page 1

Wellness Center (WCUI) $0.40

Anti-Counterfeiting Technology Gaining Momentum Wellness Center (WCUI), is a Chicago-based incubator for companies combining the best in class technologies,

software, and devices with an emphasis on healthcare technology. The Company added Stealth Mark, an anti-

counterfeiting company to its portfolio in 2014.

Stealth Mark gained considerable momentum in 2016, landing two high-profile partnering agreements in the

motorsports industry (luxury goods & auto-parts), including protecting products from companies like American

Indy Car/Formula One in association with RevBranding.

Stealth Mark’s technologies enable manufacturers to thwart the emergence of counterfeit and non‐compliant

parts in the motorsports industry, as well as in dozens of other industries - including the medical industry using

near invisible microparticle technology. In addition to protecting Companies from losing sales to counterfeiters,

sub-par products can also endanger the lives the drivers (or patients), when cut-rate parts or pills fail.

Wall Street’s Oldest Newsletter Covering Internet and Technology Stocks

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I n s t i t u t i o n a l A n a l y s t I n c Page 2

Stealth Mark doesn’t make products, it makes sure products made by others (in any industry) are authentic.

BACKGROUND:

In 2016, ABC News reported that NIKE was among the most counterfeited goods in the World. In fact, you could

be wearing a fake pair of Nike’s right now– if you ventured out of the Official Nike store network.

The market for fake goods is on the rise, with international trade in counterfeited or pirated products valued at

almost a half a trillion dollars.

The Organization for Economic Cooperation and Development (OECD) released a report that said the

international trade of ‘fakes’ represented 2.5

percent of overall world trade, or $461 billion,

in 2013. Most of the fake goods appear to

originate from China.

Almost 20 percent of the total value of seized

fake products violate the intellectual property

rights of holders registered in the U.S., followed

by Italy at 14.6 percent, France at 12.1 percent,

Switzerland at 11.7 percent, Japan at 8.2

percent and Germany at 7.5 percent.

Rolex, Nike, Ray Ban and Louis Vuitton are

brands that "seem to be more intensely targeted by counterfeiters," according to the report. The results

corroborate a previous World Customs Organization report that identified Nike as the most frequently

counterfeited brand in 2013.

Consumer Reports' senior projects editor Tod Marks told ABC News. "You’re unlikely to get burned by

counterfeits if you stick with established stores, legitimate retailer websites, and authorized seller. Otherwise,

you could be playing with fire. Fakes are sold everywhere: At flea markets, on eBay, via marketplace merchants,

at independent deep-discount and no-name stores -- like some of those “electronics and luggage storefronts in

New York City, purse parties, salons, swap meets, 'copycat' websites that mimic those of well-known merchants,

and rogue Internet pharmacies."

Of course, there is a natural assumption that when you buy from a ‘nice looking’ site, that it’s authentic. No one

after-all would buy from a poorly built site. The problem is the impostor sites are making so much money, they

often have the best-looking sites. And being on eBay or Amazon adds little protection from counterfeiters.

And many think “what’s the big deal.” With some products, to the consumer, it isn’t a big deal. But if you look

closer, there have been reports of paint in tubes of Crest and volatile organic compounds (toxic) parts in

children’s toys, as well as fake Viagra and even fake antibiotics and heart medications.

The problem is frightening for Corporations who lose can lose hundreds of millions individually, as in Nike’s

case. A lot of companies are losing a lot of money - to add up to $460 billion. In addition luxury brands like Kate

Spade, can lose reputational status, as expensive bags may fall apart on a consumer who wasn’t even aware

CLICK TO VIEW VIDEO

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they are fake. Handbags/Wallets ranked as the number one seized product in the US with an MSRP of $700.2

million. So one can only imagine how large the market is for the ‘ones that got away.’ The losses are staggering.

And finally, with better counterfeiting methods, there is a greater challenge of

detection. Consumers can no longer take for granted obvious signs of imitation

such as poor stitching or bad zippers. Now, the quality of fake products has

improved so dramatically that criminals have been able to charge at prices closer

to the price of the genuine article. A serious, serious problem indeed.

Even the US Army isn’t safe from counterfeiting, In 2010, the U.S. military

unknowingly purchased 59,000 counterfeit Chinese microchips that could have

been hacked and used to shut down the country's missile defense system. And

let's not forget fake cigarettes, of which China produces 400 billion a year, into a

market which buys 2.2 trillion cigarettes a year. They also contain 80 percent

more nicotine and 130 percent more carbon monoxide, no extra charge.

STEALTH MARK SOLUTION

In 2014, Wellness (WCUI) announced the closing of its asset acquisition of Stealth

Mark Holdings, Inc. (SMI). The assets of SMI were acquired by StealthCo, Inc., a

wholly-owned subsidiary of Wellness with a combination of stock and warrants.

Stealth Mark® is a global product authentication solutions provider, that offers the most advanced product

security technologies available today within the security and supply chain management vertical sectors. Stealth

Mark® provides customers true brand protection from counterfeiting and diversion while maintaining the

integrity of product authentication.

It’s a simple to use, easy to implement, and cost-effective turnkey system, that is extremely difficult to

compromise. Stealth Mark's intellectual property portfolio is inclusive of numerous

patents issued and pending in software, hardware, and manufacturing.

Stealth Mark has demonstrated its emerging market awareness through encryption

and state of the art software products that aim to put an end to counterfeiting and

diversion via encrypted microparticle technology, state-of-the-art printing

technologies, and a reader that can be used with iPhone and other smartphones.

The reader working in conjunction with the StealthFire™ Software authenticates the

Microparticle Mark and captures the unique ID, GPS validated location, and QR code.

This software suite equips users with critical information and the flexibility needed

when tracking products in real-time.

Stealth Mark® Intelligent Microparticles.

Unduplicatable and undetectable to the human eye, Stealth Mark® Intelligent

Microparticles provide absolute authentication.

IPHONE READER APP.

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Stealth Mark is the only Intelligent Microparticles available with virtually unlimited codes and supported by a

security management portal, code verification software that is portable, fast and accurate. Stealth Mark®

Intelligent Microparticles are innovative advancements of the original taggant technology as developed by 3M.

A taggant is a chemical or physical marker added to materials to allow various forms of testing. Physical taggants

can take many different forms but are typically microscopic in size, included at low levels, and simple to detect

with a device such as a smart-phone. They can be utilized to differentiate the authentic product from

counterfeits, provide identifying information for traceability purposes (e.g. lot number, company name),

determine mixing homogeneity and cross-contamination, and to detect dilution of proprietary products.

Common taggant anticounterfeiting applications.

• Tax Stamp authentication

• Banknote authentication

• Cigarette anticounterfeiting

• Alcohol anticounterfeiting

• Pharmaceutical anticounterfeiting

• Building materials

• Consumer products

And while taggants has become a common term in the industry, not all taggants are equal. Stealth Mark®

taggants are created with a proprietary material that creates a unique numeric code that is assigned meaning

by the customer and is machine readable without the use of rare earth or chemical tracers.

Stealth Mark® Intelligent Microparticles have been used successfully in both covert and overt operation with

easy to implement technology and do-it-yourself in-the-field forensic caliber verification.

The application is non-intrusive and complimentary to brand strategy. With trend setting affordability, Stealth

Mark® Intelligent Microparticles are supported by a security management portal, code verification software that

is portable, fast and accurate, with a Stealth Mark® App now available on iPhone.

While primarily used for Authentication, Anti-Counterfeiting and Diversion, Stealth Mark® Intelligent

Microparticles can also help protect a brand’s reputation, create a marketing advantage, and in many cases safe

guard the public. In combination with Stealth Mark® Anti-Counterfeit Digital Threat Awareness program, aka

ActiveDuty platform, it can empower a company with actionable business insight and then help create strategy

to protect their assets.

Stealth Mark® ActiveDuty.

While Stealth Mark® Intelligent Microparticles protect the physical goods, Stealth Mark® Active Duty scours the

Internet for suspicious activity when it’s impractical to examine physical goods (online sales). In plain English,

microparticles on products can be scanned at the port, in a warehouse or in a retail store. But they can’t be

scanned when purchased on the Internet and shipped to the consumers home.

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The ActiveDuty platform uses leading-edge digital sociology algorithmic technology, to provide actionable

intelligence that gives Companies more than just data. It gives any Company’s fraud detection team insight to

empower senior management to make effective decisions on how to direct anti-counterfeiting budgets.

ActiveDuty platform stands on-guard, around-the-clock (scouring auction sites, chat rooms, e-commerce sites

and more), providing a unique algorithmic platform for deriving at data-driven research, essentially comprised

of; advanced computational linguistics, deep data mining, heuristic learning, socio-psychological and network

science research model. It’s like have an army of fraud detectives listening and watching.

On top of Stealth Mark® Intelligent Microparticles and Stealth Mark® ActiveDuty, is a team of determined

Stealth Mark individuals dedicated to the restraint or elimination of illicit Counterfeiting activities, the accurate

identification of the sources of Product Diversion, and accurate authentication of items and products.

Once fraudulent activity has been detected, (counterfeit, diverted, lost or stolen item) is identified, the team can

alert the brand owner who can then properly activate their investigators, inform law enforcement, and even

reward consumers for assisting in the fight against counterfeiting.

RECENT EVENTS

April 2016. LUXURY BRANDS. The company announced that it partnered with RevBranding. Rev Branding has an

elite clientele in the motorsports industry including, but not limited to, American IndyCar / Formula One (F1)

standout driver Alexander Rossi, Manor Racing team, and the premier Circuit of the Americas racing venue

where Rev Branding provides exclusive, high-end, limited edition

collectible VIP gifts for F1 guests.

Through the partnership, Rev Branding will actively market Stealth

Mark’s cutting-edge authentication technology to its clientele via

specialized security labeling, that can be accurately and easily read in

the field using the Stealth Mark® Mobile App.

In addition, a full-service suite of complete authentication and diversion

resources and strategy for individual clients, tailored to meet their

unique security needs, will be offered.

The agreement provides the Company with the opportunity to move

into both the popular and expansive world of motorsport, and that of

celebrity authentication, protecting fans who purchase items drivers and team-related memorabilia. The

Company stated initial efforts with Rev Branding, would commence immediately, with the delivery of Stealth

Mark® particle-authenticated security labeling.

Gaining a high-profile client in the luxury memorabilia sector of auto-racing could lead to new accounts

throughout the luxury goods sector - which loses $100’s of millions each year to counterfeiters. Can Michael

Kors, Rolex, and Nike be far behind? Only time will tell.

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August 2016. AUTOMOTIVE-PARTS. The company it is working with SFI Foundation, Inc. (SFI), a non‐profit

organization established to issue and administer standards for the quality assurance of specialty performance

and racing equipment.

The SFI Foundation has served the automotive aftermarket and motorsports industry since 1978 with a system

of developing and administering various standards, certifications and testing criteria for use in motorsports. SFI

strives to equally serve the manufacturers, consumers, sanctioning bodies, racers and government agencies

through fairness, efficiency, and respect.

The agreement reached between SFI and Stealth Mark signifies significant advancement in SFI’s technology in

their certification process, ensuring compliance with SFI quality standards, and to thwart the emergence of

counterfeit parts and non‐compliant parts in the motorsports

industry.

Initial efforts to integrate into SFI’s existing processes are already

underway and production‐ level activities utilizing the complete

Stealth Mark™ technology suite, including its software, hardware, and

marking systems, are scheduled to commence immediately and

expand at various intervals over the coming year.

Jennifer Faye, Vice President of SFI. “Our decision to use Stealth

Mark’s labels is nothing less than our concern for the safety of racers

around the world. With this in mind, it is so very important that we do

everything possible to not allow non‐compliant parts on the track. We

recognize the importance of our role in the racing industry and the

team at Stealth Mark shares our passion and respect for motorsports which helps us do our job efficiently and to

our fullest potential. We are pleased to be working with them to upgrade and enhance our quality assurance

program!”

SFI has an international presence with approximately 250 member and affiliate sanctioning bodies and well

over 500 individual equipment manufacturers who participate in more than 110 specification programs.

Lee Anne Patterson, VP of Sales and Marketing for Stealth Mark noted. “Our technology is at its best when we

are protecting lives threatened by counterfeiters and cut‐rate parts. While drivers accept a certain amount of

risk every time they roll on track, we can all still do our part to keep them safe as they push limits of themselves

and their cars.”

Again, like with the luxury goods sector, Stealth Mark appears to be using a top-down approach to marketing.

If the most prestigious automotive industry certification firm in the world deems Stealth Mark to be the number

one authentication service out there, can the actual OEM manufacturers be far behind? Again, only time will tell

– but it’s an impressive start.

December 2016. TECHNOLOGY PRODUCTS. The Company announced it would be opening an office in Silicon

Valley, to deploy its advanced anti-counterfeiting technology to protect brands and consumers from fake

smartphone batteries, chargers, components, and more.

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Second, only to luxury goods, the technology industry is losing $100’s of millions, if not billions. China even has

fake Apple stores! It’s so bad, USA Today reported that Alibaba formed a coalition that will leverage the power

of big data to crack down on purveyors of fake goods.

Stealth Mark's push into Silicon Valley comes after Apple's announcement to file a lawsuit against Mobile Star, a

company making fake Apple chargers and cables and selling them on Amazon.com disguised as authentic goods.

Apple is warning consumers to stay

away from these fake products as

they are a risk to the public and

could cause fires, injury, and even

death, due to their poor

construction, inadequate insulation,

and inferior components.

As per Apple's statement in Wired's

article, "Consumers, relying on

Amazon.com's reputation, have no

reason to suspect the power

products they purchased from

Amazon.com are anything but

genuine.” Apple further stated, it

bought more than 100 products sold

on Amazon that carry the "Apple" branding. Apple says that nearly 90% of the products it purchased weren't

actually made by Apple and were instead counterfeit goods.

The Company has retained serial entrepreneur Michael D. Metcalf in the role of Executive Vice President of

Business Development to manage Stealth Mark's new office in Silicon Valley and pursue strategic partnerships

with top brand name companies. Mr. Metcalf is an accomplished executive and is listed in the top 100 in

Technology, Entrepreneurs, and Silicon Valley. He is a proven technology leader with multiple patents who

previously won 25 top industry awards by evangelizing new products. "Mr. Metcalf is tech savvy and has a great

reputation with other top executives. We feel honored to have him join the team to lead our business

development efforts," said Andrew Kandalepas, CEO & Chairman of WCUI, the parent company of Stealth Mark.

Metcalf stated. "The top tech companies in Silicon Valley are primary targets, and Stealth Mark's patented

microparticle technology is the best solution for major firms seeking brand protection. The biggest brands in the

world will be very excited once they see the 3D microparticles for themselves and learn how they can be used to

protect their intellectual property. Stealth Mark microparticles have the potential to be as common as bar

codes, yet impossible to duplicate making counterfeits extremely difficult. We intend to pursue the best OEM's

branded products at the microparticle level. Imagine if Apple, came knocking on Stealth Marks door.

January 2017. AUTOMOTIVE-PARTS. The Company announced it rolled out the first of SFI’s new label designs

for the 2017 racing season, all of which are marked with Stealth Mark™ Intelligent Microparticles or “Stealth

Marked” for future authentication.

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The new Stealth Marked labels will add assurance that the SFI labels are 100% authentic and will allow

verification by sanctioning bodies during event technical inspections to be handled quickly and with confidence.

This roll out of the first 135,000 labels of their new design, carrying the mark of authentication, is complete and

will continue to escalate throughout the year as the different label styles deployed by SFI come up for renewal.

The primary users of SFI standards, or specifications (specs), are equipment manufacturers whose products are

tested and self-certified to the appropriate procedures. SFI Specs are included as part of the rules of race

sanctioning organizations. Ultimately, the consumer benefits from the SFI program because it establishes

recognized levels of performance or quality for a given product which results in a safer racing environment.

Jennifer Faye, Vice President of SFI stated, “I’m excited to have the first Stealth Marked labels on the way to our

manufacturers as we start the 2017 race season. I am very pleased with the process and the result of these

initial labels, and look forward to continuing to work with the Stealth Mark team as we expand the program to

encompass the variety of labels that we use in certifying products.” As previously stated, “Our decision to use

Stealth Mark labels is nothing less than our concern for the safety of racers around the world and with this in

mind, it is so very important that we do everything possible to not allow non-compliant parts on the track. We

recognize the importance of our role in the racing industry and the team at Stealth Mark shares our passion and

respect for motorsports, helping us do our job efficiently and to our fullest potential. We are pleased to be

working with them to upgrade and enhance our quality assurance program!”

Lee Anne Patterson, VP of Sales and Marketing stated “The variety of labels that SFI uses to certify the wide

range of race car components and safety equipment makes this project particularly interesting. Finding the

correct adhesive and suspension solutions in which to apply our Intelligent Microparticles is a substantial portion

of the work we do with our clients. Every application is unique, whether we are marking cloth labels in the

manufacturing process or the rear wing of a race car. We are honored to work with SFI and to support the vital

work that the SFI team is doing to keep racers safe. Our technology is at its best when we are protecting lives

threatened by counterfeiters and cut-rate parts, and while drivers accept a certain amount of risk every time

they roll on track, we are proud to do our part to keep them safe as they push limits of themselves and their

cars.”

Echoing the sentiment, Michael Metcalf, EVP of Business Development stated, “When brand authenticity

becomes mission critical, Stealth Mark is the leading choice available providing absolute authentication.”

April 2017. MONEY LAUNDERING.

The Company announced that its Internet scouring ActiveDuty for covert applications (including money

laundering) has already begun, with initial deployment planned to begin in the next 30 to 45 days. Recent

government estimates show that money laundering in current US Dollars is $800 billion to $2 trillion. That’s 2%

to 5% of the global GDP. The scope of the work is being conducted in collaboration with prominent

organizations and is classified in nature.

“When we created our ActiveDuty system, it was designed knowing that the advancement of the internet has

made the selling of illicit goods online easy and very accessible. We knew we needed to build a powerful

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weapon to help defend against that threat,” explained Lee Anne Patterson, VP of Sales and Marketing for

Stealth Mark.

“Some of our initial ActiveDuty reports have provided us powerful insights demonstrating that the links between

counterfeiting, human trafficking, and money laundering are heavily entwined. The same tools that we

developed to fight the online battle of counterfeiting are providing a global understanding of the inter-

workings of criminals that move in these circles. The opportunity to support the efforts of organizations and

law enforcement to pursue criminals in this fashion is something that we are excited to be a part of and we

believe this work will be impactful on numerous battle lines,” Patterson added.

Sounds like a Government or potential Government contract in the works. Time will tell.

SUMMARY

Early in its monetization efforts, the Company is understandably tight-lipped about its pricing schedules so it is

impossible to estimate potential revenues, with even the slightest level of confidence. Nonetheless the

addressable markets are so enormous, that even if they were able to earn a fraction of a penny from each

application of a 3D microparticle, the numbers could be mind boggling.

With 80 million shares outstanding and a $0.40 current market price, the market capitalization is $36 million.

With no pricing guidance from management, it is challenging to gauge if the share price is undervalued, fair-

valued or even over-valued.

What we do know is having a technology that’s been vetted by SFI, a leading certification firm which would not

risk its reputation working with a product which didn’t ‘absolutely, positively’ work, we are excited about the

potential due to the depth of the counterfeiting problem. This isn’t a problem which would be nice to solve. This

is a problem any manufacturing executive will tell you (including Apple) must be solved.

As with any speculative investment, investors can sit on the sidelines until further transparency with regards to

client wins and/or revenues surface. Of course, the risk is if an investor is on the sidelines when significant news

is released, in all likelihood they will not be able to get invested at a price AFTER the news, anywhere near where

the stock would be trading BEFORE the news was released – which could result in a doubling in price, quickly as

news can spread instantaneously.

Imagine if Nike came knocking. Regardless of the size of a Nike contract, it would tell the world a solution to

counterfeiting has finally arrived. What we wonder, would that do the price of the stock?

INSTITUTIONAL ANALYST INC. NY - CHICAGO - BEVERLY HILLS - ROLAND RICK PERRY, EDITOR.

[email protected]

310-594-8062

Past performance of other companies added to Institutional Analyst’s various newsletters or otherwise mentioned in its research reports, newsletters or communication is no indication of future performance

of any current of future companies mentioned. This publication is a Corporate Profile and may not be construed as investment advice. This profile does not provide an analysis of the Company’s financial

position and is not a solicitation to purchase or sell securities of the Company. Readers should consult their own financial advisors with respect to investment in this or any company covered by the Reviews.

An independent financial analyst should verify all of the information contained in this profile with the profiled company. Institutional Analyst, Inc. the parent company of the Internet Stock Review is an

investment research and public relations firm and associated firms, which has in the past been compensated from the Company with ten thousand dollars and fifty-thousand restricted shares. In preparing this

profile, the Publisher has relied upon information released from the company, which although believed to be reliable, cannot be guaranteed. This profile is not an endorsement of the shares of the company

by the publisher. The publisher is not responsible for any claims made by the company. You should independently investigate and fully understand all risks before investing in this and any company profiled or

covered by the publisher. The majority of startup companies have factors, which create an uncertainty about their ability to continue as a going concern. These concerns are typically related to dilutive of toxic

financing (or lack of), competitive environments, lack of operating history and operating at loss levels which is typical of most start-ups. These statements can be found in their most recent 10Q filings and

should most definitely be read. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this profile are forward-looking

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statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new

products or services, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company’s

filings with the securities and Exchange Commission. Email: [email protected]