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40 Investors
18 Payments made
The Snoring Center
$100,000 invested
11.98% Interest Rate
HighlightsUpdates
4
Investment TermsUse of ProceedsCompany DescriptionBusiness ModelHistoryThe TeamTotal Payment CalculatorComments
2

Highlights

Traditional treatment options (such as surgery) can be very painful, time-consuming and difficult to maintain, and may not be acceptable solutions for millions of patients. In contrast, The Snoring Center delivers state-of-the-art, patient-friendly treatment options marketed directly to consumers. Treatment offerings at The Snoring Center include the proprietary Pillar Procedure (related patents and IP were acquired by The Snoring Center in 2014 from Medtronic), which is a simple procedure performed on over 50,000 patients with no significant adverse effects and a satisfaction rate of over 80%.

The nation's leading provider of minimally invasive treatment for snoring and sleep apnea
2014 revenue of over $3 million; 2015 projected revenue of over $4 million
Featured on Dr. Phil (CBS), The Doctors (CBS) and Good Morning Texas (ABC)

Updates
4

The Snoring Center
Feb 9, 2017

2017 is Looking Great for the Snoring Center

I wanted to give you a quick update on how things are going over at the Snoring Center.

We are doing very well since our raise on NextSeed. We were able to use the funds to increase our sales and marketing efforts, and anticipate adding two new Snoring Center licensees in the next month. We’ve also been able to solidify our relationship with our contract manufacturer by increasing demand for Pillar Palatal implants nationwide.

We are excited to see what the rest of 2017 holds for the Snoring Center!

Thanks for all your support,

Dr. Craig Schwimmer

Investment Terms

Issuer
Snoring Center USA, LLC

Type of Offering
Texas Intrastate Crowdfunding

Offered By
NextSeed TX LLC

Offering Min

$100,000

Offering Max

$100,000

Min Individual Investment

$100

Type of Securities

Term Note

Maturity 18 months
Payments

Monthly

Security Interest None
Ownership % Represented by Securities

0% Investors will not receive any equity interests in the Issuer or any voting or management rights with respect to the Issuer as a result of an investment in Securities.

Interest Rate 11.98%

Use of Proceeds

The Snoring Center is seeking to raise $100,000 on NextSeed to help finance efforts to promote the Pillar Procedure. Specifically, The Snoring Center plans to build a small, focused direct sales organization to accelerate licensing efforts and rebrand the Pillar Procedure as a consumer product (similar to Invisalign and LifeStyle Lift).

To date, The Snoring Center’s sales and marketing efforts have been focused on the ENT physician market. While The Snoring Center will continue to service this market, a new market is expected to add significant growth: over 10,000 dentists are actively treating snoring and sleep apnea, and they are focused almost exclusively on dispensing “snoring mouthpieces.” Many of these dentists have never before been exposed to the Pillar Procedure, but are excited about using it as a part of their snoring treatment protocol because the Pillar Procedure provides an additional attractive service to their patients. Initial training sessions for dentists has been effectively administered in the context of larger Continuing Education seminars, and this method of delivery makes the training especially cost-effective and scalable.


Company Description

Founded in July 2007 in Dallas, TX, The Snoring Center is the nation’s leading provider of minimally invasive, office-based treatment for snoring and sleep apnea. Snoring and sleep apnea affect more than 75 million adults in the US (nearly 50% of adults), and the problem worsens with age and obesity.

Traditional treatment options (such as surgery) can be very painful, time-consuming and difficult to maintain, and may not be acceptable solutions for millions of patients. In contrast, The Snoring Center delivers state-of-the-art, patient-friendly treatment options marketed directly to consumers. Treatment offerings at The Snoring Center include the proprietary Pillar Procedure (related patents and IP were acquired by The Snoring Center in 2014 from Medtronic), which is a simple procedure performed on over 50,000 patients with no significant adverse effects and a satisfaction rate of over 80%.

The Snoring Center currently owns and operates 3 locations in Texas (Dallas, Austin and Houston) and has licensing agreements with other clinics across the US. The Snoring Center offers a variety of convenient, minimally invasive solutions for snoring and sleep apnea that conveniently meet a patient’s needs in an office setting. In 2014, The Snoring Center earned over $3 million in revenue, and is expected to further increase revenue in 2015 as it helps an increasing number of patients with snoring and sleep apnea. The Snoring Center also plans to grow its business further by increasing Pillar Procedure offerings in the growing dental market for snoring treatment.


Business Model

The Snoring Center delivers state-of-the-art, patient-friendly treatment options for snoring and sleep apnea, marketed directly to consumers. Since it officially opened in 2007, The Snoring Center has become one of the most prominent snoring treatment providers in the nation. In addition to company-owned offices throughout Texas (Dallas, Houston, and Austin), The Snoring Center licenses its brand to other physicians across the country.

In January 2014, The Snoring Center acquired the Pillar Procedure business from Medtronic (NYSE:MDT). The Pillar Procedure is a minimally invasive treatment for snoring and sleep apnea, originally developed by Restore Medical and acquired by Medtronic in 2008. Given that The Snoring Center accounted for nearly 50% of Medtronic’s US sales of the Pillar Procedure, The Snoring Center recognized the potential synergies of acquiring the Pillar Procedure and subsequently purchased the related patent portfolio (and all related domestic business assets) from Medtronic.

The Pillar Procedure is FDA-approved for snoring and sleep apnea treatment. Over 50,000 patients have been treated with no significant adverse effects, with a satisfaction rate of over 80%. The procedure is completed under local anesthesia in 10 minutes, and works by placing small stitches in the soft palate and allowing the body’s natural reaction to stiffen the soft palate. The entire progression generally takes 4-6 weeks following treatment.

The Snoring Center seeks to grow sales by encouraging clinicians to offer patient-friendly, minimally invasive treatment protocols to their patients, built around the Pillar Procedure. The economics of such an approach are compelling for the clinician and represent a good value for the patient, as avoiding surgery makes treatment much less expensive. The cost to consumers for the Pillar Procedure is determined by the clinician, but most prices range from $2,500 to $3,500 for 5 implants. Clinicians are trained to offer the Pillar Procedure in conjunction with other treatments for maximal efficacy.

Additional information about The Snoring Center and its product offerings can be found online at www.snoringcenter.com.


History

2007
Founded in Dallas, TX by Dr. Craig Schwimmer to address the needs of a large and growing market for snoring and sleep apnea treatment
2010
Opened Houston office
2013
Opened Austin office
2014
Acquired the patent portfolio (and all related domestic business assets) related to the Pillar Procedure from Medtronic

Meet the Team

Craig Schwimmer, MD, MPH, FACS
Founder & President, Director

Dr. Schwimmer is a Board Certified Otolaryngologist (surgical speciality of the Ear, Nose, and Throat). A 1991 graduate of the Emory University School of Medicine, he completed his otolaryngology training at Henry Ford Hospital in Detroit, Michigan, studying under some of the leading clinicians and scientists in the field of snoring and sleep apnea. He has co-authored numerous articles on the subject, including pioneering work on the relationship between obstructive sleep apnea and gastroesophageal reflux. After six years of residency training, he practiced in Baltimore, Maryland, where he was also a member of the teaching faculty at Johns Hopkins University from 1997-2000 and actively involved in training otolaryngology residents. Since 2001, he has practiced in Dallas, where he founded The Snoring Center in 2007.

David Norton
Director

Partner at Shackelford, Melton, McKinley & Norton, LLP

Mr. Norton is the head of his firm’s aviation law practice and a member of the firm’s management committee. He has a nationally recognized aviation law practice that encompasses a broad range of regulatory, transactional and commercial issues. His work has earned him a place on Thomson Reuters Legal’s Texas Super Lawyers listing seven times, from 2008 through 2014. Mr. Norton was an officer in the U.S. Air Force from 1984 to 1993 and received several military decorations, including the Meritorious Service Medal and the Aerial Achievement Medal for his contributions in Operations Desert Shield, Desert Storm and Restore Hope. Mr. Norton is also active in numerous professional and civic organizations, including service as a member of the board of trustees of the Frontiers of Flight Museum, located at Dallas’ Love Field Airport, and served as president and a trustee of Challenge Air for Kids & Friends, Inc., a Dallas-based nonprofit corporation that provides instructional, therapeutic and educational aviation experiences for disabled children.

Paul Savoldelli
Director

CEO of Americas Management Group (AMG)

Mr. Savoldelli has more than 25 years of international transactional experience, with a primary focus on Latin America, and is currently the CEO of Americas Management Group (AMG). AMG works with international private equity groups to create and manage transactions in the region. Mr. Savoldelli has initiated, managed or led the development or funding of more than $2 billion of transactions, including several of the largest cable, media and logistics companies in Latin America. In addition, Mr. Savoldelli has founded several highly successful start-ups and participated in an international legal practice spanning the United States, Europe and the Middle East.

Total Payment Calculator

Interest Rate*
11.98%
Term
18 months
Principal
$100.00
Total Payment*
$109.75
1815Months$0.00$30.00$60.00$90.00$120.00
  • Projected total payment

* Payment for any given month (including the total payment at the end of the final month) indicates the cumulative amount contractually required to be paid to an investor after the end of that month, assuming the loan is not prepaid. This calculation is a mathematical illustration only and may not reflect actual performance. It does not take into account NextSeed fees of 1% on each payment made to investors. Payment is not guaranteed or insured and investors may lose some or all of the principal invested if the Issuer cannot make its payments.

Comments

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Joshua
Sep 17, 2015
It looks like the Issuer will be making 18 monthly payments to pay this loan back. How much will those payments be and how much will be netted by those that are loaning the funds?
The Snoring Center
ISSUER
Sep 17, 2015
Joshua, thanks for your message. The monthly payments to an investor (and the amounts netted) are described in detail in the Term Loan Agreement, which is available for review once the investor’s account has been funded. In short, each monthly paymen ...
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Issuer Statement

The information contained on this campaign page (the "Campaign Information") is furnished solely by the Issuer to prospective investors in the investment opportunity described herein. All Campaign Information is intended to be a summary of the terms and information contained in the Disclosure Statement and the Note Purchase Agreement, and is fully qualified by reference to those documents. In the event any Campaign Information conflicts with the terms of the Disclosure Statement or Note Purchase Agreement, the terms of those documents will control. The Issuer has provided the Campaign Information for inclusion on the website located at www.nextseed.com, and in no way will the Campaign Information be deemed to have been created or provided by NextSeed Securities, LLC, NextSeed Services, LLC, or their affiliates.
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