AcuFAB™ Is Epic's Engine For Growth And The Foundation For Epic's Fundamental Value Of $1.06 Per Share
AUSTIN, Texas, Dec. 18, 2012 /PRNewswire/ -- EPIC Corporation (OTC: EPOR) (the "Company"), a preventive healthcare technology company, announced that AcuFAB™ is the engine that drives its future growth and AcuFAB™'s intangible asset value of $17,005,963 is the foundation for EPIC's Fundamental Value of $1.06 per share .
"AcuFAB™ a proprietary acupressure industrial and medical textile took approximately one year to develop and is produced in the United States," said Ronald Tucker, CEO of EPIC Corporation. "It is a specialty therapeutic spacer fabric with a complex architecture and a new and unique but simple design. It was developed and is produced by Highland Industries, Inc., a Takata Company and a leader in the industrial textile markets, in a 700,000 square foot production facility in South Carolina."
AcuFAB™'s unique design has a single flat surface with alternating ridges running down the length of the knitted 100% polyester fabric. The ridges provide a defined and flexible space and limit the pressure points contacting the body and give a gentle message effect, while the channels between the alternating ridges allow for greater circulation and ventilation.
AcuFAB™'s features include:
- Limits pressure points against surface tissues of the body;
- Is antibacterial – it is resistant to mold and mildew;
- Is hypoallergenic;
- Is hydrophobic and quick drying;
- Retains its shape;
- Is resistant to dyes, solvents, and most chemicals; and
- It has a high melting point.
AcuFAB™'s Benefits include:
- Supports body weight across the fabric;
- Allows for more blood and oxygen to reach the surface tissues of the body;
- Reduces hypertension stress;
- Enhances air circulation which reduces sweating;
- Provides for a more temperate body temperature;
- Can be antibacterial to repeal infectious diseases; and
- Is machine washable and dryer safe.
AcuFAB™ is unique due to its ability to be used in fabricating various different types of products in human and animal market segments. These products can be sold in at least three large human market segments, medical, home healthcare, and consumer. In most instances the products made from it do not require FDA approval.
In July 2012, an independent company commissioned by EPIC published a market report regarding the healthcare and medical niche market segments for AcuFAB™ and its AcuPAD™ products. Click here to download a copy of the report.
The report only evaluates the mattress overly market relating to the prevention of pressure sores, and does not discuss the market for mattress overlays that provide a more comfortable and restful night's sleep, chair pads, car and truck seat pads, compression bandages, regular and diabetic shoe inserts, and other products that can be made with AcuFAB™.
The Market Report provides in-depth (segment) analysis and market potential for mattress overlays relating to pressure sores. The AcuPAD™ Mattress overlays provide a more comfortable, deep un-interrupted sleep. Chair cushions and car and truck seating pads made from AcuFAB™ provide comfort and relief from lower back, shoulder and neck pains.
Market Report Summary
The US Supreme Court's decision to uphold the Affordable Care Act gives more significance to the report. The decision means, like the report states, healthcare will " gravitate more and more into preventative medicines and chronic therapeutic regiments . . . because of large spikes in obesity, diabetes, and an ever increasing sedentary life style, we are dealing with the increasing need for handling wounds preemptively . . . . [I]t really will always be about low blood circulation to surface tissue." (Market Intelligence Report, June 25, 2012, "Market Summary")
EPIC's AcuPAD™ products, made with AcuFAB™, "can optimize the way that both the blood vessels and lymphatic system distributes fluids to and from the surface tissue. By so doing, it is quite possible that we can avoid pressure ulcers, diabetic ulcers, and various other surface tissue lesions caused by a lack of oxygen to these tissues . . . By facilitating blood flow and by extension oxygen offload to surface tissues, not only can the inception of these debilitating sore be prevented but also those that have started to come about can be addressed early with combination of antibiotics and circulation management." (ibid.)
Due to the current economic conditions "and incredible pressure on the healthcare system . . . it would figure that one of the best ways to handle this is to mitigate . . . bed stays. Not every one can be helped by prudent [and effective] pressure overlay methodology, but many patients definitely can be helped and the amount of money that could be saved is staggering and is in the billions." (ibid.)
Valuation Summary for AcuFAB™
AcuFAB™ as a physical fabric is a tangible asset valued at cost, but as an intangible asset its Intrinsic, Fair or Fundamental Value is determined by a Weighted Average Cost of Capital based on an estimated gross profit generated from the sale of products made with AcuFAB™ within a fixed period of time. The Fundamental Value of projected net revenues and gross profits from AcuFAB™ products for a 5 year fixed period from the production of one Highland knitting machine is $17,005,963.
Valuation of EPIC and its Common Stock
The valuation of EPIC's estimated Firm Value and Equity Value makes use of two Absolute Value Models ("AVM"). One AVM model being a Present Value Model or Discounted Cash Flow model which derives value from the present or discounted value of its expected future sales and income. The two main definitions of cash flow models are Free Cash Flow to the Firm Model ("FCFF") and Free Cash Flow to Equity Model ("FCFE"). The Fundamental Firm Value under the FCFF model is $20,562,126 and the equity value under the FCFE model is $20,383,171.
The second AVM model is the Relative Valuation. This is an estimate of an asset's value relative to the value of another asset. A Relative Valuation is typically implemented using price multiples or enterprise value multiples in comparison to peer companies. The relevant price and enterprise value multiples comparisons are with SPAN, IVC, HRC, the Industry and the projections of EPIC.
The Relative Values for the Firm is $27,186,777 and the Equity is $27,388,516 with a per stock value of $1.06
EPIC is a preventative healthcare technology company whose mission is to provide people with better healthcare through technology. Visit www.epiccor.com for corporate information and www.otcmarkets.com for investor information.
Ronald Tucker CEO
Telephone: (866) 737-1413
SOURCE EPIC Corporation