Life Magnetics

Life Magnetics

Early Stage

An at-home medical testing platform funded by the National Science Foundation

An at-home medical testing platform funded by the National Science Foundation

Overview

Raised this Round:
$94,794 - RegCF
$169,811 - Total

Total Commitments ($USD)

Platform

Wefunder

Start Date

10/15/2023

Close Date

01/25/2024

Min. Goal
$50,012
Max. Goal
$617,999
Min. Investment

$100

Security Type

Equity - Preferred

Series

Seed

SEC Filing Type

RegCF / RegD 506(c)    Open SEC Filing

Price Per Share

$64.95

Pre-Money Valuation

$5,537,052

Year Founded

2013

Industry

Healthcare & Pharmaceuticals

Tech Sector

Biotech

Distribution Model

B2B/B2C

Margin

Low

Capital Intensity

High

Location

Detroit, Michigan

Business Type

Growth

Life Magnetics, with a valuation of $5.54 million, is raising funds on Wefunder. The company has developed at-home medical testing solutions using carbon-based RNA extraction methods. Life Magnetics’ process allows easy extraction, processing, shipping, and storage of RNA for diagnostic purposes. The company has a quantum mechanical mechanism transport solution and a manufacturing capacity of $2 million a year in sales. Kevin Hagedorn founded Life Magnetics in October 2013. The current crowdfunding campaign has a minimum target of $50,011.50 and a maximum target of $617,999.25. The campaign proceeds will be used to complete a sales contract with CentralStar of Michigan for testing cows’ milk for Mastits and work on developing an oral mRNA delivery platform.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$44,083

$33,306

COGS

$176,716

$112,006

Tax

$0

$0

 

 

Net Income

$-287,133

$-232,759

Summary Balance Sheet

FY 2022 FY 2021

Cash

$193,716

$472,133

Accounts Receivable

$0

$0

Total Assets

$319,601

$574,193

Short-Term Debt

$174,244

$169,060

Long-Term Debt

$20,000

$20,000

Total Liabilities

$194,244

$189,060

Financials as of: 10/15/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Life Magnetics 01/24/2024 Wefunder $5,537,052 $169,811 Equity - Preferred Funded RegCF / RegD 506(c)
Life Magnetics 09/29/2021 Wefunder $3,046,434 $660,093 Equity - Preferred Funded RegCF
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Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Valuation History

Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Employee History

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Synopsis

With the rise of personalized medicine and the increasing importance of genetic information, the ability to extract, process, ship, and store RNA efficiently is crucial. Life Magnetics has developed a novel carbon-based RNA extraction method that solves three main problems with RNA: storage/transport, rapid release & side effects, and inefficiency in entering target cells. 

The company’s proprietary technology is based on discovering that carbon surfaces interact uniquely with single-stranded nucleic acids. This innovation, supported by funding from the United States National Science Foundation (NSF), has resulted in manufacturing technologies that create carbon surfaces precisely tuned for RNA extraction. The company boasts superior performance to traditional silica-based columns and beads, the industry standard.

Life Magnetics is currently in the growth phase, with a manufacturing capacity supporting sales of $2 million a year. The company’s product offerings have the potential to revolutionize the way RNA samples are prepared for a wide range of applications, from medical diagnostics and research to cost-efficient livestock testing. 

The proceeds from Life Magnetics’ current fundraising campaign on Wefunder are earmarked for key business developments. The company aims to complete a sales contract with CentralStar of Michigan for testing cow’s milk for mastitis, an important application in the livestock industry. Additionally, Life Magnetics is working on developing an oral mRNA delivery platform, which could have significant implications for future vaccine and therapeutic delivery methods.

With a pre-money valuation of $5.54 million, the company is offering investors a chance to join its journey as it seeks to expand its market reach and continue developing groundbreaking solutions for RNA testing and storage.

Next Section: Price

Price

Life Magnetics is currently valued at $5.54 million and is raising funds on Wefunder with a price per share of $64.95. With an annual revenue of $44,083, the valuation may appear steep. However, it should be noted that this revenue has been from working with research labs and not from the commercialization of any of its products. The broad application potential for this technology makes this valuation justifiable, particularly given the company’s strong revenue projections for its livestock testing kits. 

Life Magnetics’ manufacturing capacity of $2 million a year in sales suggests that the company has room to grow its revenues if it can secure contracts and increase product adoption. The company’s partnership with CentralStar of Michigan to test cows’ milk for Mastitis and developing an oral mRNA delivery platform are positive indicators of its potential to scale and diversify its product offerings.

While the valuation and revenue multiple may give pause, the company’s innovative technology and the growing importance of RNA-based diagnostics and therapeutics could provide significant upside. Investors should weigh the company’s technological advantages and market opportunities against the valuation when considering an investment in Life Magnetics.

Next Section: Market

Market

While niche, the RNA testing and storage market is an essential segment of the broader healthcare and pharmaceuticals industry. Life Magnetics has positioned itself as an innovator by using carbon-based RNA extraction methods to develop its testing solutions. The unique approach of Life Magnetics allows for the efficient extraction, processing, shipping, and storage of RNA, which is vital for diagnostic purposes.

RNA-based diagnostics and therapeutics are on the rise, with the global market experiencing a substantial growth rate of 17.6%. This market is driven by the increasing demand for personalized medicine and the development of RNA therapeutics. Allied Market Research has indicated that the RNA Testing Kits and RNA Storage and Shipping Solutions are currently at around $1.7B but are poised to grow significantly in the coming years.

Next Section: Performance

Performance

Life Magnetics is commercializing its livestock testing kits and has secured a lucrative partnership with CentralStar. CentralStar is one of the largest dairy laboratories in North America, serving 2,000 producers with over 600,000 animals. This should lead the company to profitability in the next year. In the meantime, the company can explore therapeutic use cases via its collaboration with Esperovax and Novo Nordisk. 

The company has raised $1.6M to date in funding. The company has raised $75k in its current offline Reg D round and another ~$60k on the current Wefunder raise. According to the Company, it will have 21-32 months of runway after this round, depending on how much they increase burn for product development and marketing. The company also received a $400,000 grant from the National Science Foundation, demonstrating excitement around this technology.

Next Section: Differentiators

Differentiators

Life Magnetics distinguishes itself in the RNA testing and storage market with its innovative carbon-based RNA extraction methods. Funded by the National Science Foundation, Life Magnetics has developed proprietary manufacturing technologies that create carbon surfaces specifically tuned for RNA extraction. This offers a significant advantage over traditional silica-based columns and beads, as carbon surfaces can consistently deliver superior performance when used correctly. Additionally, this technology makes extracting RNA from difficult liquids, such as milk and blood, far easier. 

Regarding Mastitis testing, its first livestock use-case, Life Magnetics, offers a far superior solution. The current testing options are either cheap and inaccurate (California Test, Culturing) or too expensive (current PCR tests). Life Magnetics makes PCR testing affordable to farmers with its innovative technology. 

On the therapeutics side, many large-scale pharmaceutical companies are developing RNA-based therapeutics, as we saw during the COVID-19 pandemic. However, given the superiority of this carbon-based extraction method, the therapeutic use case of Life Magnetics’ technology could be expansive.

Next Section: Team

Team

Life Magnetics is spearheaded by CEO Kevin Hagedorn, who brings over a decade of relevant industry experience to the company. He holds a PhD in Materials Chemistry from the University of Michigan and has been instrumental in developing the company’s RNA extraction technology. 

The team at Life Magnetics is compact, with only four members, and has not grown since the last funding round. However, the team has complementary skill sets from business development to science expertise. Given this, the company should be well-positioned to continue its growth trajectory. 

Next Section: Risks

Risks

Life Magnetics is in the pre-revenue phase with a relatively low annual revenue of $44,083, mainly from collaborations with research universities. This indicates that the company is still in the early stages of commercialization and may require additional time and capital to reach profitability.

High market approval or license regulations in the healthcare industry pose a risk to Life Magnetics, as the company’s products involve RNA extraction and processing for diagnostic purposes, which are subject to rigorous regulatory scrutiny. However, this risk is mitigated since Life Magnetics will likely license its technology to a larger pharmaceutical company with the resources to develop it into usable medicine/vaccines. 

Life Magnetics has a monthly burn rate of ~$20,000, which is high relative to its current cash of $80,000. However, given the success of the company’s current online and offline rounds, Life Magnetics should be in a strong position to sustain its burn for the next 21-32 months.

Next Section: Bullish Outlook

Bullish Outlook

Life Magnetics presents a compelling opportunity in the burgeoning field of RNA-based testing, an industry that has seen rapid expansion and increased relevance, particularly given the global health landscape shaped by the COVID-19 pandemic. The company’s innovative carbon-based RNA extraction methods for diagnostic purposes position it at the forefront of this technology. 

The proprietary technology developed by Life Magnetics, supported by funding from the United States National Science Foundation (NSF), has enabled the creation of carbon surfaces precisely tuned for RNA extraction. This technological edge offers superior performance compared to traditional silica-based methods. It paves the way for Life Magnetics to capture a significant share of the RNA testing kits and storage solutions market.

The valuation of $5.54 million on Wefunder, given Life Magnetics’ novel technology and strong go-to-market strategy, is reasonable for investors seeking to capitalize on the growing demand for efficient and reliable RNA-based testing solutions. 

With plans to expand into developing an oral mRNA delivery platform and completing a sales contract with CentralStar of Michigan for testing cow’s milk for Mastitis, Life Magnetics is diversifying its product offerings and addressing immediate and practical needs in human and livestock testing.

Next Section: Bearish Outlook

Bearish Outlook

Life Magnetics presents an innovative solution in the testing space with its carbon-based RNA extraction methods and medical testing platform. The company is on the precipice of commercializing its technology through its partnership with CentralStar. However, it is unknown how this rollout will ultimately go. Additionally, the company will rely on one customer to account for most of its revenue this year. While other testing companies may follow CentralStar’s lead in using Life Magnetics’ testing solution, this is still unknown and a risk to consider.

Next Section: Executive Summary

Executive Summary

Life Magnetics an RNA-based testing company that has developed a novel testing solution using carbon-based RNA extraction methods. This technology simplifies the process of RNA extraction, processing, shipping, and storage for diagnostic purposes. The company’s proprietary transport solution, coupled with a manufacturing capacity that supports $2 million a year in sales, positions it as an innovative player in the RNA testing kits and RNA storage and shipping solutions markets.

With a pre-money valuation of $5.54 million, Life Magnetics is currently seeking to raise funds on Wefunder, with campaign proceeds earmarked for completing a sales contract with CentralStar of Michigan for testing cow’s milk for Mastitis and for the development of an oral mRNA delivery platform. This fundraising effort follows previous rounds that have cumulatively raised $1.6 million. The company, founded in October 2013 by Kevin Hagedorn, has been funded by the National Science Foundation and holds patents for its technology.

Despite its innovations and partnerships, Life Magnetics is in the early growth stage and has yet to profit, with a net income of -$287,133 for the most recent fiscal year-end and annual revenue of $44,083. The company’s current monthly burn rate is $20,000, which suggests a high capital intensity level and a need for further investment to sustain operations and growth. However, the company is on the brink of commercializing its livestock testing product, which should give it more cushion to sustain its operations and become profitable.

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Life Magnetics on Wefunder 2023
Platform: Wefunder
Security Type: Equity - Preferred
Valuation: $5,537,052
Price per Share: $64.95

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