Seed Deck Addendum

ADCC — Abu Dhabi Combat Club hosts the Submission Fighting World Championship, one of the most prestigious No-Gi grappling tournaments.

ACV (Annual Contract Value) — Annualized value of a B2B account/contract; e.g., $1k–$10k+ per account.

AD (Athletic Director) — School administrator overseeing athletics; buyer/approver in Contact Sports.

ANZ — Australia & New Zealand; priority international markets in Horizon 3.

AOV (Average Order Value) — Average dollar amount per transaction; D2C AOV $24–$48.

ARPU (Average Revenue per User) — Per-athlete annual plan revenue; deck anchor ≈ $95.

AT (Athletic Trainer) — Licensed sports-medicine professional and key specifier in schools/clubs.

B2B (Business-to-Business) — Institutional/organizational sales (gyms, teams, Military & Tactical).

BJJ (Brazilian Jiu-Jitsu) — Core combat-sport cohort for launch.

BLS (Bureau of Labor Statistics) — Source for athletic-trainer employment growth used in Tailwinds.

Buddy Taping — Mobile splinting where an injured finger is taped to an adjacent healthy finger for stability.

CAC (Customer Acquisition Cost) — Spend to acquire a customer/account; target payback ≤ 6 months.

CAGR (Compound Annual Growth Rate) — Protective-equipment market growth (~5–6% this decade).

CIF (California Interscholastic Federation) — State body cited for girls' flag football data.

CO (Commanding Officer) — Unit leader endorsement in Military & Tactical pilots.

COGS (Cost of Goods Sold) — Basis for gross margin; improved via tooling/packaging/3PL.

COI (Certificate of Insurance) — Vendor onboarding document noted in Contact Sports mitigants.

CPG (Consumer Packaged Goods) — Products sold quickly at relatively low cost via retail or e-commerce.

CPG-Health — CPG focused on health; potential acquirer class for platform expansion.

CPT / HCPCS — Procedure/coding pathways noted in Med-Tech exploration.

DME (Durable Medical Equipment) — Clinic/coverage context referenced in Med-Tech pathway.

DoD (U.S. Department of Defense) — Source for O&M budget/tailwind; Military & Tactical buyer.

D2C (Direct-to-Consumer) — Core early channel; part of staged go-to-market.

DIP (Distal Interphalangeal Joint) — Outermost finger joint, often affected by fingertip and tendon injuries.

EV / Revenue Multiple — Valuation shorthand for payoff path ranges (e.g., ~4–6× early, ~7–12× at scale).

EU (European Union) — Priority international market in Horizon 3.

FX (Foreign Exchange) — Modeled neutral through Year 2 in financial inputs.

G&A (General & Administrative) — Operating expense category with efficiency target < 8% by Year 5.

GM (Gross Margin) — Target ~68–70% steady-state; minimum ≥ 60% for tranche gates.

GSA (U.S. General Services Administration) — Federal contract vehicle for Military & Tactical channel.

GTM (Go-to-Market) — Commercialization roadmap (channels, ambassadors, retail, procurement).

IBISWorld — Market research source for studio/venue growth.

IBJJF — International Brazilian Jiu Jitsu Federation; hosts major tournaments worldwide.

IP (Intellectual Property) — Valuation driver at scale and risk/mitigants area.

KOL (Key Opinion Leader) — Athlete/coach influencers who drive adoption, especially in Combat Sports.

KPI (Key Performance Indicator) — Operating proof points (e.g., sell-through turns, renewal).

LEO (Law Enforcement Officer) — Included in Military & Tactical cohort definition.

LTV (Customer Lifetime Value) — Paired with CAC; target LTV/CAC ≥ 3×.

MMA (Mixed Martial Arts) — Multidisciplinary, core combat cohort/sport.

Mobile Splinting — Recovery method allowing limited motion in injured joints to promote healing without immobilization.

MOU (Memorandum of Understanding) — Used for pilot success metrics in Military & Tactical mitigants.

NA (North America) — Launch market; projected to deliver ~85% of revenue through Year 3.

NAIA — Collegiate governing body; recognition of women's flag (invitational) used in Tailwinds.

NCAA / NFHS — U.S. college and high-school governing bodies cited for participation data.

Next-Gen Recovery Gear — New equipment category designed for performance demands and functional PAR.

NPS (Net Promoter Score) — Satisfaction/advocacy metric tracked in pilots.

NTM / TTM — "Next Twelve Months" / "Trailing Twelve Months," used in valuation notes.

O&M (Operations & Maintenance) — DoD budget area supporting training/equipment spend.

OEM (Original Equipment Manufacturer) — Company producing components or finished products rebranded for resale.

OPEX / OpEx (Operating Expenses) — Guardrails and mix targets in financial inputs.

OTC (Over-the-Counter) — Consumer-health channel; optional acquirer pathway.

OUSD (Office of the Under Secretary of Defense) — DoD source cited for tailwinds.

PAR (Post-Injury Active Recovery) — Category/approach: stabilize without immobilizing so athletes keep training while healing.

Penetration (Y5) — Disciplined, segment-specific adoption rate used to derive SOM by Year 5.

PIP (Proximal Interphalangeal Joint) — Middle finger joint; common site of sprains and dislocations.

Pool (Cohort) — Annual, de-duplicated participants/personnel in a segment's geography used for TAM/SAM/SOM math.

PO (Purchase Order) — Institution-friendly buying method referenced in Contact Sports pricing.

PT / OT (Physical/Occupational Therapy) — Clinical protocol bundling noted for Med-Tech.

SAM (Serviceable Addressable Market) — Reachable subset in plan × recovery-relevance × ARPU/ACV.

SKU (Stock Keeping Unit) — Product variants/extensions referenced in roadmap (wrists, knees).

SOM (Serviceable Obtainable Market) — Modeled Year-5 share of SAM (penetration × SAM).

SOP (Standard Operating Procedure) — Quick-start training documents for unit pilots.

TAM (Total Addressable Market) — Pool × recovery-relevance × ARPU/ACV.

3PL (Third-Party Logistics) — Outsourced logistics partner; margin lever via optimization.

WC (Working Capital) — Inventory/cash cycle efficiency; discussed in use-of-funds and value levers.

WHO / CDC — Health bodies cited for injury/epidemiology references.

Y1–Y5 — Year-1 to Year-5; used for revenue ramp and penetration modeling.

YoY (Year-over-Year) — Growth framing used in participation tailwinds and valuation targets.

TAM–SAM–SOM inputs. SAM = Y5 Reachable (NA + selected international), harmonized with Market Segmentation slide

All pools de-duplicated; ARPU = $95 annual plan; B2B ACV priced by site/kit. Mid-case tie-out: ≈ $38M (matches Market Segmentation Slide)

Formulas (audit shorthand)

Notes & Definitions

Disciplined Path to ~$38M Y5

Growth Drivers

Segmented pools + disciplined penetration = a clear path to ~$38M Y5.

Purpose. Granular assumptions behind each segment used in Slide 4 and A2. Sources trace to A1 — Sources & Method. PAR = Post-Injury Active Recovery.

Global notes (applies to all segments)

Risks & Mitigants

These mitigations are designed to ensure operational readiness and protect value creation trajectory.

These trends lead to larger feeder pools + more on-site decision-makers. This means faster standardization and repeat purchasing for PAR (Post-Injury Active Recovery) solutions.

1. Girls' Flag Football — Crossing the chasm

• Data: National HS participation ≈ 68–70k (2024–25); ~+60% YoY; ~1,000 additional schools. California ≈ 19.9k, +84% YoY.
• Ecosystem signals: NAIA recognition (2025–26 invitational); NFL–Nike $5M program seeding; state media running Top-15 rankings.
• Implication: Contact-adjacent growth expands PAR relevance and school/club safety budgets.
• Sources: NFHS; CIF; NAIA; NFL/Nike program notes; state media.

2. Combat Sport venue growth

• Data: U.S. martial-arts/BJJ/MMA studios industry has grown (sites & revenue) in recent years.
• Implication: Denser distribution base for DTC + retail pilots; larger injury/prevention addressable pool.
• Sources: IBISWorld (martial arts/fitness studios).

3. Specifier cohort expansion

• Data: Athletic-trainer employment +11% (2024–34).
• Implication: More professional gatekeepers to select, standardize, and replenish recovery solutions across HS/college.
• Sources: U.S. Bureau of Labor Statistics.

4. Sustained Tactical readiness spend

• Data: FY2025 DoD O&M request emphasizes training/equipment priorities.
• Implication: Supports standardized unit-level recovery kits in Military & Tactical channels.
• Sources: DoD, Office of the Under Secretary of Defense (Comptroller) materials.

5. Protective & Recovery spend trend

• Data: Global sports protective-equipment market projected ~5–6% CAGR this decade.
• Implication: Consistent category budget growth for prevention/recovery where we slot.
• Sources: Market research (e.g., Grand View Research).

Deeper Dive Acquirer – Buyer Types & Appetites

Athletic Wear Leaders

Nike, Adidas, Under Armour, Lululemon; performance gear incl. Hyperice

Med-Tech / Sports Innovators

Arthrex, Enovis/DJO, Smith+Nephew, Össur

Performance Equipment Roll-ups: Health & Performance Gear players

Illustrative revenue multiples and maturity indicators

Footnote: Multiples refer to enterprise value as a multiple of next-twelve-months (NTM) revenue. Ranges are illustrative, not guidance. Actual outcomes vary with growth rate, margins, channel mix, and IP position.

To optimize valuation range, our job is to hit the operating proofs — category leadership first, optionality follows.

Performance targets designed to elevate valuation range:

Signaling attractive market trajectory with proof of retail velocity and early clinical adoption.

Comparable Transactions

Selected comparable exits within sports, recovery technology, and performance gear sectors. These provide directional insight into potential valuation multiples.

Sources: PitchBook, Crunchbase, press releases, industry analyst reports. Multiples are indicative estimates based on public disclosures and market norms for similar transactions.

These transactions are intended to be directional indicators only. They share characteristics in brand positioning, product innovation, IP defensibility, and addressable market that are in line with FF, illustrating a range of valuation multiples (revenue and EBITDA) that may inform exit expectations under different growth and profitability scenarios.

Med-Tech option: DME, CPT/HCPCS, PT/AT protocols

A staged evidence + compliance plan expands permissible claims, unlocks AT/PT and clinic workflows, and builds strategic acquirer readiness—without slowing our current commercial plan.

1) Claims ladder (what we say grows with what we prove)

Claims hygiene: do / don't. Do: supports, stabilizes, helps maintain mobility, may reduce missed training days (per study). Don't (until supported/cleared): treats, heals, prevents fractures, disease-specific claims.

2) Evidence package (settings, designs, endpoints)

3) Evidence Endpoints & Targeted Claims Metrics

Primary endpoints that unlock claims progression and Med-Tech acquirer interest:

4) Regulatory posture (right-sized today, expandable later)

Classification hypothesis: non-powered orthopedic support/splint (low-risk class, often 510(k)-exempt). Validate early with regulatory counsel. Near-term posture: commercialize under consumer/performance claims with labeling discipline, quality-minded manufacturing, and a materials file. If claims escalate: stand up QMS-lite aligned to ISO 13485; risk (ISO 14971); usability (IEC 62366); biocompatibility (ISO 10993 screen); UDI/labeling; basic post-market surveillance.

5) Coding & reimbursement (DMEPOS + services)

Near-term reality: cash-pay, retail, school POs, HSA/FSA—then selective clinic stock once protocols/evidence are published. (Confirm code selection with a reimbursement specialist before any payer statements.)

6) PT/AT protocol integration (the playbook)

PAR protocol: assessment → sizing → supervised first use → progression (ranges, reps, grips) → return-to-train decision aid.

Trainer tools: quick-start card, cleaning SOP, contraindications checklist, QR video library.

Docs & templates: injury log, adherence checklist, QuickDASH/pain before/after, reinjury/incident log.

Site success KPIs: ≥70% adherence, ≥30% reduction in missed training days, ≥25% reduction in tape usage.

7) 12-month workplan & budget bands (order-of-magnitude)

Dependencies/assumptions. Access to anchor sites; consistent AT participation; legal review cadence for claims copy.

8) Risks & mitigations

9) Exit relevance (why this raises strategic appetite)

10) Clinical Pathway

Clinical Trials → Data → Data-Backed Claims → DME — Durable Medical Equipment Classification → FDA Class II Claims Approval → Code Assignment:

• Diagnosis (ICD-10): S63.6XX — sprain of finger joint / ligament
• Coverage Policy (LCD / NCD): Medicare coverage policy
• Device (HCPCS): L3924 — hand / finger orthosis, prefabricated, off-the-shelf
• Procedure (CPT): 29131 — application of finger splint; dynamic + 97760 — orthotic(s) management and training, initial encounter (assessment / fitting)

Targeted Claims Metrics:

• Faster functional recovery
• Improved performance during healing (grip strength, mobility, dexterity, QuickDASH)
• Reduced reinjury rates
• Higher comfort, convenience, & compliance driving higher protocol adherence = better outcomes

Path Summary

Consumer claims (now) → Protocol outcomes (12 mo) → Optional clinic/DME SKU (18–24 mo).

Finger injuries, particularly to the middle knuckle (PIP - proximal interphalangeal joint), are high frequency, impacting one of the most crucial joints for functional gripping and hand strength.

Recovery requires supported mobility to restore strength, range of motion, and function.

Fight Fingers fits seamlessly into this continuum—an upgrade from buddy taping to purpose-built mobile splinting gear that delivers greater comfort, convenience, and superior hand performance during post-injury active recovery.