Rightsmile, Inc. (RIGH)

[melmartin2006]

BG Medical expects ongoing and accelerated growth in state-approved medical cannabis patient
communities nationwide. However, sales revenue in the cannabis market segment is dependent on market
trthrough the ongoing clarification of state and federal positions on medical cannabis distribution. Cautious
growth rates are expected in emerging markets in Arizona, Maine, Michigan, New Jersey, Oregon,
Washington, and Washington DC, and latent markets in Alaska, Connecticut, Delaware, Hawaii, Montana,
Nevada, New Mexico, Rhode Island, and Vermont. BG Medical believes new market growth rates will
increase significantly as mature markets set non-volatile standards for emergent markets to emulate.
Further market changes are expected as a result of the 2012 United States elections, and from the results of
pending favorable cannabis legislation that has been introduced in seven states. Consolidation in the
quantity of regional cannabis dispensaries is occurring, leading to an expected decrease in revenue potential
for products and services based on dispensary density (such as advertising and location portals), and an
expected increase in revenue potential for products and services based on recurring patient services,
education, and medicine safety (such as the BudGenius product platform). BG Medical expects these trends
to continue similar to many market lifecycles in which newly implemented technologies lower long-term
operation costs, and create a price-competitive marketplace that becomes reliant on the efficiency of
underlying technology platforms.ends. Volatility in mature medical cannabis markets such as California and Colorado are expected