$100,000 invested

40

Investors

Complete

Status

Funded on NextSeed TX

Term Notes ?

Interest Rate 11.98%
Maturity 18 months
Minimum Target $100,000 ?
View Key Terms

The Snoring Center

Dallas, Houston and Austin, TX

  • 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)

Investment Details

$100,000 invested

40

Investors

Complete

Status

Funded on NextSeed TX

Term Notes ?

Interest Rate 11.98%
Maturity 18 months
Minimum Target $100,000 ?
View Key Terms

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.

Offering Summary

Issuer
Snoring Center USA, LLC
Entity Type
Texas limited liability company
Principal Office
6901 Snider Plaza, Suite 225
Dallas, TX 75205
Founded
June 2007
Business Model
Minimally invasive, office-based treatment for snoring and sleep apnea.
Use of Proceeds
Proceeds will be utilized for marketing expenses.
Key Personnel
Dr. Craig Schwimmer (MD, MPH, FACS), Founder & President, Director
David Norton, Director
Paul Savoldelli, Director
Bios of key personnel provided below.
Securities
Term Loan Agreements
Offering Amount
$100,000
Ownership % Represented by Securities
0%. Investors will not receive any equity interests in The Snoring Center or any voting or management rights with respect to The Snoring Center as a result of an investment in Securities.

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.

Key Terms

Minimum Investment
$100
Maximum Investment
Accredited investors: No limit
Non-accredited investors: $5,000
Interest Rate
11.98% per annum, accrued monthly
Term
18 months
Payments
During the term, the Issuer will make monthly payments of principal and interest to amortize the loan over the term.
Maturity
At the end of the term, the Issuer is required to pay the outstanding principal and accrued and unpaid interest.
Prepayment
Prepayment in whole or in part may be made by the Issuer without penalty at the time of any regular monthly payment.
No Security Interest
All obligations of the Issuer under the Term Loan Agreements are unsecured obligations.

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.

Leadership

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.

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

February 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

July 8, 2016

Halfway to completing payments

The Snoring Center has made 9 payments to investors!

September 23, 2015

$100,000 raised in record time!

The Snoring Center was fully reserved in under 21 days from 40 investors – thank you to everyone that invested! We look forward to expanding our sales and training efforts to grow the business.

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September 2, 2015

The Snoring Center opened for investments!

The Snoring Center launched its NextSeed campaign to raise $100,000 to promote the Pillar procedure for the treatment of snoring.

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