The world will forevermore need wellness screening. Just in the last two decades we have had global pandemics of SARS, MERS, Ebola and now Covid-19. Even the seasonal flu kills up to 60,000 people a year in the US alone and costs US businesses $15B annually. Major commentators, from Dr. Fauci to Bill Gates, have cited the need for permanent wellness infrastructure investment to protect humanity from the next pandemic.
Originally founded to deliver alerts that a child or pet left alone in a vehicle is in distress, ARI pivoted its patented MutliSensor FusionTM technology to address the immediate need for wellness entry screening. This technology serves as the basis for ARI’s first product and service offering: The WellnessDetectorTM screening device with the connected WellnessOSTM cloud service.
Additionally, MultiSensor Fusion and the WellnessOS cloud infrastructure can be leveraged for additional product and service offerings that are in the outer years of our current roadmap, including identity access control and activity detection, presenting upside markets for the company.
Current practice is to have one person point a temporal scanner at another person’s forehead or wrist. If you want to keep track of the results, often another person with a clipboard or tablet records the reading and identity information while others impatiently wait in line.
Many of these devices are not high quality and provide inaccurate or inconsistent temperature readings. Any kind of record keeping requires elaborate and time-consuming entrance systems of people and logs.
Even still, wellness is not just a matter of skin temperature as a proxy for body temperature, and wellness is not just a matter of body temperature either. As a result, these practices are inefficient, unsafe, unscalable, and ultimately unreliable.
Furthermore, a scanning device alone simply gives you a skin temperature result at a single point in time, with no ability to learn over time, spot trends or understand more broad, regional activity.
The world needs automated, accurate, quick, scalable and connected wellness entry detection.
ARI’s first connected device, the WellnessDetector, fuses multiple sensors, including photo and thermal cameras, radar and environmental sensors, to give a more accurate assessment as to a person’s wellness.
The WellnessDetector instantly takes multiple measurements (heart rate, respiratory rate, skin temperature) and factors in real-world considerations (ambient temperature, activity level, distance, etc.) to deliver an automated, touchless result in seconds. These results can be identified or anonymous depending on the desired application.
Beyond MultiSensor Fusion, edge computing in the WellnessDetector performs continuous machine learning, improving speed and accuracy over time. We call this “Complicated Made Simple.”
ARI’s WellnessOS multi-tenant cloud service is an artificially intelligent analytics and management platform with licensable APIs. The management platform allows end customers or third-party service providers to manage a single device or networks of devices for multiple customers. The artificial intelligence in the analytics platform monitors the overall system, identifies trends, and provides early warning of potential exposure or increasing positivity rates.
Because the data can be anonymized, ARI or third parties can access “big data” through WellnessOS or APIs to perform analysis and research on large, regional data sets. The value of providing actionable data through artificially intelligent cloud systems not only differentiates the WellnessDetector from almost all other screening devices, WellnessOS delivers long-term recurring revenue to ARI and supports our industry leading lifetime warranty.
The need for automated ingress wellness screening that is accurate, quick and scalable will be the “new normal,” particularly in high-occupancy and high-risk environments where it is paramount to help keep employees and visitors safe and prevent outbreaks.
As a result, the total accessible market for the WellnessDetector and WellnessOS is literally every multi-person ingress point in the world.
However, we believe that healthcare, education, lodging and service locations have a heightened need to ensure their employees, patients, students, residents, guests and customers feel safe and are taking steps to avoid the spread of viruses. In the United States alone, there are 1.5M such locations with approximately 10 million screening points representing close to $35B in hardware sales and $14B in recurring SaaS revenue just in the initial two years of a deployment (which is our minimum, and mandatory, cloud service offering).
Business Model and Go-To-Market
To quickly reach what we see as the “low hanging fruit” of an infinite market, we are employing a two-tier distribution model that we successfully deployed during our time together at Ruckus Wireless (NYSE: RKUS) and leveraging those relationships we built over many years.
We have established distribution partners in North America and Asia and have past relationships to expand in South America and Europe as and when desired. But importantly, we and our distribution partners have established relationships with managed service providers (MSPs), that already provide services to these verticals for IT, ethernet, Wi-Fi, TV or similar services.
These MSPs leverage their established customer relationships in these verticals to offer additional value-added services and support, offering the WellnessDetector with WellnessOS with sales, marketing, installation, management, troubleshooting and telephone support.
We sell the WellnessDetector through distribution at a competitive cost per unit, along with a small activation fee for connection to WellnessOS. We then sell multi-year service subscriptions for the cloud platform. Since MSPs generally already employ a monthly recuring revenue (MRR) model, they can amortize the cost of the hardware into their already existing service pricing model and manage multiple customer deployments through the WellnessOS.
With this established ecosystem growing our end-user base, we can focus on growing the infrastructure in our business. With additional infrastructure, we will establish additional, more specific channels to expand into additional verticals, service large enterprises and WellnessOS subscribers directly (thereby increasing our margins) and enable OEMs for specific markets.
We’re able to speak with confidence to the capabilities of this product and our ability to successfully drive revenue by fulfilling hardware sales that serve as the beachhead for our SaaS business because we have done this before. Our small management team was part of the larger leadership team that launched and scaled Ruckus Wireless, pioneering a two-tier distribution model to provide Wi-Fi hardware and subscription SaaS offerings that ultimately culminated in the $1.5B sale of the business to Brocade Systems. Our core engineering team has mostly been together for the last four years.
Beyond our breadth and depth of experience in innovation, product development, sales, business development, corporate development, channel marketing and business operations, this is a team that knows and trusts one another.
Other companies offer devices to screen for temperature, but for the most part these are simply off-the-shelf thermal imaging cameras installed in various form factors that attempt to measure skin temperature. Unlike our “complicated made simple” MultiSensor Fusion devices, these devices can be characterized as “simple but unreliable,” and yet our hardware is cost competitive. These companies include 98.6 Labs, Turing Shield, Seek Scan, and Sentry Kiosk.
Nobody, however, combines the machine learning of our MultiSensor Fusion hardware approach with a multi-tenant, multi-site management and analytics SaaS platform like WellnessOS.
Current trial customers have told us that no other ingress screening device on the market can compete with the efficiency and accuracy of the Wellness Detector. Current trial MSPs are enthusiastic about the multi-tenant WellnessOS cloud platform and its potential to drive increased revenue for them and us.
The company is currently very lean with a low burn rate, and yet on the verge of product launch. A cost reduced platform will be introduced later this year, further improving margins. The company expects to achieve profitability by the end of the year and remain so thereafter. Revenue is conservatively forecasted at $1.5M in 2021, $12M in 2022 and $45.8M in 2023, when the hockey stick of our recurring revenue stream from the WellnessOS cloud service really takes off from our established and growing global footprint of devices.
The company is in the process of completing a seed round of funding with the goal of raising roughly $1.5M. This funding will allow us to scale our cloud, back office, customer-facing and customer-supporting infrastructure.