Q&A with Steve Loyd of Latitude Recovery

When Beth Macy was writing her book Dopesick she interviewed me at length. Dr. Samuel Finnix’s character, played by Michael Keaton in the Hulu series, is based on me and my experiences. During residency, I developed an addiction to opioids. At the height of my addiction I was taking up to 40 Vicodin tablets per day. Since I’ve been in recovery, I’ve spent my time and energy helping people through their recovery journey. In my roles as CMO of a major treatment and recovery center, as Drug Czar of Tennessee, or working with vulnerable populations I have seen first-hand what works and doesn’t work in our treatment and recovery industry.

That’s a great question! I think there are two major challenges facing the industry. The first is that lack of an FDA approved treatment protocol for methamphetamine addiction. The majority of meth is now adulterated with Fentanyl which makes it very difficult to treat. The retention rates for meth programs are shocking and most programs are based on a 12-step model which simply does not work for this type of addiction. This effects the revenue of doctors, therapists and treatment centers, and we are seeing insurance companies starting to push back against treatment centers wanting value-based contracts to insure better outcomes. Latitude Recovery’s digital treatment protocol for methamphetamine addiction is evidence-based and uses contingency management to keep patients engaged. Our technology platform also provides real-time reporting to the doctor, therapist or treatment centers and insurance companies.

The second challenge is that a large portion of the treatment center market is underserved by current software solutions. Small practices with one doctor or therapist cannot afford large enterprise software solutions for case management, telehealth, or electronic health records. Latitude Recovery will be providing a suite of cloud-based software solutions with a subscription licensing model to meet the needs of this market segment.

Latitude Recovery is providing services that are already fully or partially reimbursed by insurance, medicare or medicaid. Our business plan calls for average monthly revenue per person of $20. By offering the different services we will no doubt match or eclipse this revenue target. In developing our model, we looked at various states and their reimbursements for services under insurance, medicare and medicaid. For example, in the state of Tennessee, Latitude Recovery services qualify for all or part of the following reimbursements:

- Fully integrated Telehealth platform – $20 per licensed user/ per month
- Contingency Management – $12.50 per month for six months
- Case Management – $15-$25 per 30-minute visit
- Telemedicine medical visit – $190*
- Tele-therapy visit – $23* per 30-minute session; $36* per 45-minute session
- Tele-case management visit – $15-25 per visit
- Stimulant Use Disorder treatment protocol – $310 bundled medical and therapy per visit ($190 medical only per visit)

*under current emergency declaration status

We are currently raising our SEED round of $2,000,000. This means investors can get in early and have potential high rewards. We are currently offering 30% of the company in this round with 428,000 shares on offer at $4.67 per share. Our implied pre-money valuation is $4,666,666.67

We recognize that as early investors you have more risk. We are therefore offering seed investors added protection. In the event that the next fundraising round is a Down Round then the valuation of this round will be adjusted downward to equal 80% of the valuation applied to the Down Round. Each investor will then be issued additional shares to meet this goal.

The market is currently growing and poised for our solution. We envision a high growth solution with an EBITDA of over $20,000,000 by year five.