MEDICAL EXERCISE INC.

Medical Exercise Inc.

Overview

• In the fiscal year ended March 31, 2026 the company pivoted from legacy owner-operator clinics to an asset-light international franchising platform under the OnCore Longevity Centers brand.
• The business now operates as an intellectual property, technology integration, and franchise-support platform that licenses a 4‑Pillar longevity model to independent franchisees and Area Development Managers (ADMs).
• Core offering combines automated fitness hardware, AI-driven nutrition, biometric tracking, and external medical affiliation partnerships within a private-pay subscription framework.

Core business model

• Franchise licensing and turnkey operations:
  • License the OnCore 4‑Pillar model to franchisees and ADMs and provide standardized operating manuals, a technology stack, and ongoing support.
  • Generate recurring revenue from upfront initial franchise fees, ongoing royalties on franchisee gross sales, and technology-related fees.
  • Maintain an asset-light structure with no owned real estate; centers are micro-studios optimized for high throughput.
• Four‑Pillar program:
  • Pillar 1 — Smart Strength Training: automated EGYM circuits (HIST) with autonomous machine adjustments, real-time resistance, and automatic progression.
  • Pillar 2 — Precision Nutrition: Google Gemini AI delivers dynamic, hyper-personalized meal plans and grocery lists.
  • Pillar 3 — Dynamic Assessments: medical-grade biometric tracking (InBody 770, EGYM Hub) and the EGYM BioAge score to stratify clients and tailor programs.
  • Pillar 4 — Medical Affiliates: a digital referral network for age-optimized therapeutics, including telehealth pathways to U.S. and Canadian partners (e.g., PeterMD in the U.S. and Science & Humans in Canada) for hormone optimization and metabolic therapies.

Digital ecosystem and operations

• Central cloud-based platform integrates client data, EGYM hardware outputs, InBody 770 results, and Gemini AI nutrition prompts.
• Automated billing runs through a centralized SaaS framework; services are cash-based with no insurance processing.
• Client-facing mobile app/dashboard displays real-time BioAge metrics, nutrition plans, and progress tracking.

Growth strategy and organization

• Territory-driven expansion via Area Development Agreements (ADA):
  • North American plan segmented into 55 territories: 50 U.S. regional territories and 5 Canadian master territories.
  • ADMs recruit and develop sub-franchisees; each ADM must first own and operate an initial local OnCore center to ensure operational familiarity.
  • ADMs receive a share of upfront initial franchise fees and ongoing royalties within their territories to support multi-unit growth.
• Real estate and operations:
  • Standard micro-studio footprint: 1,600–2,000 square feet per center, positioned for high throughput and premium retail presence.
  • Corporate maintains a lean footprint with shared or co-located administrative spaces rather than owned facilities.

Canadian flagship (Regina, Saskatchewan)

• Franchise Agreement executed May 5, 2026 with Degco Fitness Ventures Ltd., led by Matthew Degelman, a company President and OnCore executive.
• Flagship lease secured for approximately 2,100 square feet at 4057 Albert Street in a premium retail corridor.
• Pre-launch marketing and subscription onboarding planned to commence in September 2026.
• The Regina hub will coordinate with Canadian partner Science & Humans for cross-border medical referrals (HRT, GLP-1 weight management) while structuring relationships to protect franchise units from direct clinical liability.

Marketing and franchise recruitment

• Recruitment targets experienced personal trainers and fitness professionals; promotion combines centralized corporate funnels with local ADM-driven outreach.
• Centralized web portal (www.oncorelongevity.com) includes location sub-portals, automated territory verification, and access to franchise documentation.
• Pre-launch marketing funnels, branding collateral, and centralized ad spend are optimized for the 40+ longevity demographic.

Intellectual property and technology

• Trademarks and brand identity for OnCore Longevity Centers are planned for U.S. and Canada; common-law rights are in place.
• Proprietary Franchise Operations Manuals and the 4‑Pillar blueprint are protected by NDAs and non-compete restrictions.
• Digital assets and middleware include custom data‑routing APIs linking EGYM outputs and Google Gemini AI prompts, prompt libraries, and middleware integrations.
• Centralized web properties support investor relations, franchisee onboarding, automated lead routing, and subscription management.

Customers, employees, revenue model, and financial position

• Customer offering: the Regina flagship is planned as the inaugural international center, with pre-sales and subscription onboarding scheduled for September 2026.
• Staffing model:
  • On-site centers typically operate with 1–2 floor staff per shift.
  • Corporate functions are organized into four disciplines: Executive Leadership, Franchise Development & Compliance, Technology & Systems, and Brand Management & Marketing.
• Revenue model:
  • Primary revenue streams are upfront franchise fees, ongoing royalties on franchisee gross sales, and technology fees.
  • Client subscriptions are cash-based; an entry subscription is priced at approximately $99 per month.
• Financials and liquidity:
  • The company has a history of net losses and is in early-stage rollout, with ongoing corporate expenses as it scales.
  • Cash balance as of March 31, 2026 was $43,449 (up from $450 on March 31, 2025).
  • The company may require external financing to support rollout and scaling activities.
• Public market and capitalization:
  • The company trades on the OTCQB; future equity dilution is possible and dividends are not planned in the near term as capital is reinvested in growth and platform development.

Facilities and regulatory environment

• Corporate facilities: no owned real estate; statutory compliance office in St. Petersburg, FL; Canadian administrative space within Degco’s Regina facility (approximately 110 square feet dedicated).
• Regulatory and compliance:
  • Compliance with the U.S. FTC Franchise Rule, state franchise registration requirements, and Canadian provincial disclosure regimes, including Saskatchewan’s Franchise Disclosure Act effective June 30, 2026.
  • Data privacy and AI governance cover biometric data (InBody 770), camera-based mobility tracking (EGYM Hub), and AI nutrition (Google Gemini) under applicable frameworks (e.g., BIPA, MHMD, CPRA, PIPEDA).
  • Cybersecurity and errors & omissions considerations are addressed through multi-factor authentication, encryption, and data-isolation practices, with vendor dependencies on EGYM and Google Gemini.

Summary

• Medical Exercise Inc. has repositioned as an asset-light franchising and platform company under the OnCore Longevity Centers brand, licensing a 4‑Pillar longevity model that combines automated strength training, AI nutrition, biometric assessment, and medical referral partnerships.
• The company’s growth plan centers on territory-based ADMs and micro-studio franchise units, with an inaugural international launch in Regina, Saskatchewan in 2026.
• Financials reflect an early-stage business with limited cash on hand and a need for additional capital as the company executes its rollout and validates unit economics.