# Soaak Financial Model Holistic health technology company combining in-clinic neurofeedback/functional medicine, virtual telehealth, and a consumer wellness app with sound therapy and AI/ML features. - Canonical: https://finamodel.com/startups/soaak - Excel download: https://finamodel.com/startup-models/soaak.xlsx - Category: Health-tech - Model type: 3-Statement - Funding round: Series A - Funding: $28M - Founded: 2024 - Geography: US-based (Pentagon DoD contracts); app used globally - 133 countries noted. [DECK slide 2] - Customer: B2C ## About the company Soaak combines neurofeedback and functional-medicine clinics, telehealth, and a consumer sound-therapy wellness app. Its multi-channel model spans in-person services, remote clinical engagement, and digital consumer products rather than relying on a single healthcare delivery route. Revenue and capacity differ by channel: clinics depend on practitioner time and location utilisation, telehealth on member engagement and care teams, and the app on consumer conversion and retention. The model must keep these economics distinct while identifying cross-sell opportunities. The model separately forecasts clinic visits, telehealth members, app subscriptions, practitioner capacity, service costs, and churn. It includes facility expense, clinician labour, digital acquisition, product investment, gross margin, operating cash flow, cash burn, and runway. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition Three integrated service lines: 1. **In Clinic** - Brain mapping, neurofeedback, talk therapy, functional medicine, thermography. 2. **Virtual Health** - Telehealth, functional lab tests, diet/supplement protocols, lifestyle guidance. 3. **Soaak App** - Frequency compositions (sound therapy), daily mindful intentions, courses & programs, AI/ML virtual concierge, biometric measurements. Amazon Alexa Enterprise partnership (2021). Native American / minority-owned. ## Revenue model Four revenue channels declared: B2C, B2B, B2G, B2B2C. - **B2C**: Consumer app subscriptions + in-clinic patient fees. - **B2B**: Corporate wellness (enterprise app licensing per slide 5 milestone: "B2B Vertical Integrated" 2022). - **B2G**: DoD contracts - 2 awarded, 3rd in negotiation; $30M non-dilutive DoD matching funds qualified. - **B2B2C**: Third-party distribution / white-label (implied; no pricing detail given). Specific pricing not disclosed in deck (no per-seat, per-session, or subscription price shown). ## Traction & metrics - Pre-money TTM revenue (as of Dec 31, 2023): $4,970,000 - verified by third-party earnings review. - Pre-money TTM EBITDA: $841,000 - Post-money projected revenue (2025, first year post-raise): $52,933,617 - Post-money projected EBITDA (2025): $26,000,000 - App usage: 21 million minutes of digital therapy delivered across 133 countries - DoD: 2 contracts awarded (Pentagon); 3rd in negotiations; qualified for $30M matching funds - Acquisitions: 3 completed in 2023 (virtual health vertical) - Amazon Alexa Enterprise partnership: 2021 ## Unit economics - EBITDA margin (TTM pre-money): ~16.9% ($841K / $4.97M) - EBITDA margin (post-money 2025 projected): ~49.1% ($26M / $52.9M) - No CAC, LTV, payback period, or gross margin data disclosed. ## Competition / moat Implied moats: DoD contract relationships (B2G incumbency), proprietary sound-frequency IP, Amazon Alexa integration, multi-acquisition roll-up in virtual health, minority/Native American ownership (potential set-aside contract eligibility). ## Team & funding ask / use of funds **Leadership:** - Henry Penix, Drhc - Co-founder, CEO & Chairman - Laura Widney - Co-founder & President, Soaak Clinics - Kevin V. Cox, JD - CSO & General Counsel - Madison Fournier - Co-founder & CMO - Josh Sanders - CTO - Scott McElroy - COO & CFO - Aaron Fournier, JD - Co-founder & President, Soaak Digital - Dr. Paul Harris, ND - Medical Director **Board:** 17 members including Dr. Michael Beckwith, Dr. Trey Dyer (PhD), Dr. Nor Ahmed (DO). **Funding ask:** - Series "A" total target: $28,000,000 - Raised to date: $5,100,000 - Remaining available: $22,900,000 - Instrument: Preferred B Shares at $6.00/share; $100,000 minimum investment; liquidation preference; no voting rights; minimum 5% annual dividend - Close date: August 31, 2024 - Non-dilutive DoD matching funds available: $30,000,000 Use of funds: Not explicitly broken out in deck. --- ## Recommended financial model - **Archetype + why:** Multi-segment operating P&L / 3-statement model. The business has three materially different revenue streams (clinic services, app subscriptions/B2B licensing, and government contracts) that carry different margin profiles, growth rates, and cash flow timing. A consolidated 3-statement with segment build-up is appropriate. Not M&A or SPAC. - **Forecast horizon & granularity:** 2024–2028 (5 years, matching deck projection period); annual granularity with monthly detail for 2024–2025 to model the fundraise and DoD contract ramp. - **Key drivers & assumptions:** *Revenue - App (B2C/B2B):* - TTM app revenue split vs. clinic revenue: ~40/60 app/clinic based on multi-channel positioning; no split disclosed. - App subscriber count and MoM growth rate: derive from 21M minutes engagement; assume ~50K MAU at ~$15/month avg. blended ARPU - validate against TTM $4.97M total. - B2B enterprise seat pricing: $5–10/employee/month; deal size TBD. *Revenue - Clinic (In-Clinic + Virtual Health):* - Clinic visit volume and average revenue per visit: based on 2023 acquisitions adding capacity. - Virtual health consult volume: ramps post-acquisition integration. *Revenue - Government (B2G):* - DoD contract 1 & 2 annual contract value: - no dollar amount per contract disclosed; must be confirmed. - DoD contract 3 close probability and timing: 70% probability, Q2 2025. - $30M DoD matching funds: drawn over 2–3 years, non-dilutive (grant-like), flows as non-operating revenue or cost offset. *Post-money revenue jump (2024 → 2025: $12.2M → $52.9M):* - These are management projections. The ~4.3x single-year jump implies either DoD contract ramp + matching funds recognition + full-year B2B contracts kicking in simultaneously, or M&A. No acquisition pipeline disclosed for 2024–2025. This driver must be stress-tested. *Margins:* - Clinic gross margin: ~50–60% (labor + facility costs). - App gross margin: ~70–80% (digital delivery). - Government gross margin: ~60–70% (service delivery contracts). - EBITDA margin expansion from ~17% (TTM) to ~49% (2025 post-money): driven by operating leverage on fixed clinic costs + high-margin DoD and app scaling; needs explicit cost build to validate. *Capex & Working Capital:* - Minimal capex for app; clinic expansion capex moderate; DoD contract working capital float may be significant (government payment timing). *Fundraise mechanics:* - $28M Series A: $5.1M already raised; model remaining $22.9M close by Aug 31, 2024. - Preferred B shares at $6.00; 5% annual dividend on preferred:. - **Scenarios (Base / Bull / Bear - which variables flex):** - **Base:** DoD contract 3 closes Q2 2025; $30M matching funds drawn 2025–2027; app grows ~30% YoY; Series A fully closes. - **Bull:** DoD contract 3 closes Q4 2024; additional enterprise B2B wins; matching funds accelerated; app growth 50%+ YoY. - **Bear:** DoD contract 3 delayed or lost; matching funds delayed; Series A only partially closes ($15M); app growth 15% YoY; EBITDA margin stays ~20%. - **Required sheets / outputs:** 1. Assumptions - segment-level drivers, hiring plan, DoD contract schedule. 2. Revenue Build - three segments (App, Clinic, Government) rolled up. 3. P&L (Income Statement) - consolidated with segment EBITDA. 4. Balance Sheet. 5. Cash Flow Statement - flag government AR timing carefully. 6. Fundraise & Cap Table - Series A preferred B mechanics, 5% dividend, liquidation preference waterfall. 7. DoD Matching Funds Schedule - non-dilutive cash inflow timing. 8. Dashboard - KPI cards: TTM revenue, EBITDA margin, DoD contract status, app MAU, runway. ## Frequently asked questions ### Is the Soaak financial model free? Yes. The Soaak model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.