Sun Dental Holdings, LLC: A leading global dental technology and device manufacturing company

Sun Dental Holdings, LLC is pursuing a Tier 2 offering under Regulation A. We recommend that prospective investors carefully review our Form 1-A Offering Circular which has been filed publicly with the SEC and is available on our company website (www.sundentallabs.com/investor-relations). 

Founded in 2004, Sun Dental Labs is a leading global dental technology and device manufacturing company. The Company provides traditional manufacturing as well as a unified digital technology manufacturing platform that fully integrates digital scanning, a cloud-based data management system and 3D printing into the manufacturing process to produce a comprehensive line of over 400 different branded custom dental devices, including crowns, bridges, partials, dentures, implants and orthodontic devices. Our brands include SUNTECH, SUNCAST, SUNFLEX, SunDenture and SunOrtho. We have seven design and manufacturing facilities with computer-aided design / computer-aided manufacturing (“CAD/CAM”) technology in the U.S., United Kingdom, Sweden, Netherlands, Germany, France and China. Our design and manufacturing facilities adhere to some of the most stringent quality standards in the world for dental labs. We believe our global presence positions us to capture significant growth opportunities in the highly fragmented U.S. and international dental lab markets. We currently have active customer relationships with over 5,000 dental practices which order devices from us directly for their patients and over 1,800 dental labs which order devices from us to supply their dental practice customers. In 2014, we manufactured and sold over 235,000 custom dental devices. Since inception, we have sold over 2 million custom dental devices worldwide.

We believe that the standard of dental care should and will evolve from traditional labor intensive methods to a digital solution. Traditionally, dentists have created physical dental impressions by having patients bite into an uncomfortable mouth tray filled with molding material and hold in the mouth until a mold is completed, typically taking 15 to 20 minutes from start to finish. The dentists then ship the mold to a dental lab for manual creation of a custom dental device and receive the finished device 2 to 3 weeks later. Inherent in this traditional method are inconsistencies in quality due to an intensive manual manufacturing process, slow turnaround times and added costs for impression materials and shipping. We believe that with our proprietary SunDigital Solution, we are leading the digital technology evolution in the custom dental device manufacturing process to address and resolve issues associated with this traditional method.

Building on our history of developing innovative custom dental devices and a global manufacturing footprint, Sun Dental Labs has spent the last three years creating a design and manufacturing infrastructure that integrates the latest digital workflow, CAD/CAM and 3D printing technology into our manufacturing process. In 2014, we began using in-house 3D scanners to create 3D digital models of physical dental impressions sent to us by dentists and dental labs and then transmitting the digital models to our design and manufacturing facilities. By eliminating the need to ship physical dental impressions to the manufacturing facilities and incorporating other process efficiencies, we successfully created industry-leading turnaround times of five days for high quality custom dental devices. We believe our recent introduction of digital scanners to our customers will accelerate the adoption of our SunDigital Solution by dental practices and dental labs worldwide and generate significant revenue growth for the Company. In the first six months of 2015, 28% of our revenues were generated by custom dental devices manufactured in our digital process versus traditional manufacturing process. Furthermore, 4% of our revenues in the same period resulted from digital files that originated at customer locations in the U.S. With our infrastructure and high quality product and service offering in place in the U.S., we are well-positioned to devote more resources to sales and marketing to generate greater sales volumes. In 2016, we expect to roll out our SunDigital Solution in Europe, Latin America and Asia.

We believe that our proprietary SunDigital Solution is the only unified, fully-integrated digital technology manufacturing platform which seamlessly integrates digital scanning and a cloud-based data management system into an advanced manufacturing process. The SunDigital Solution is designed to provide an effective turnkey solution that streamlines the process for dentists and dental labs, enables our customers to quickly and efficiently deliver custom dental devices of consistent high quality to their patients, improves turnaround times and reduces costs relating to impression materials and shipping. Furthermore, we believe that our closed product supply chain with our customers will generate a sustainable source of recurring revenue and significant growth for the Company. Our SunDigital Solution includes the following:

• Our SunDigital Solution business bundle for dentists includes the CS 3500 digital intraoral scanner which enables dentists to create a highly accurate 3D digital dental impression in minutes directly from the patient’s mouth. This allows for enhanced impression accuracy and a better patient experience when compared to the uncomfortable and messy traditional tray and impression method. Unlike many intraoral scanners on the market, the CS 3500 is portable and comfortable in both the dentist’s hand and in the patient’s mouth.
• Our SunDigital Solution business bundle for dental labs includes the SunScanM impression scanner which allows technicians to quickly create a 3D digital dental impression from traditional impressions, verify the quality of the impression and communicate with their customers.
• Whether originating from a dentist’s office or a dental lab, the encrypted 3D digital dental impression file is transmitted to Sun Dental Labs via our SunCloud platform. Our cloud-based case management and communications system allows for the secure transfer of customer and patient information directly to our design and manufacturing facilities around the world and allows for efficient production allocation to match our manufacturing capacity. The SunCloud provides customers with case tracking capabilities through computer and mobile applications, data analytics, direct communication with technical advisors and access to billing information. The SunCloud platform provides us the ability to track and monitor devices throughout the production process and ensure quality control over every device at every step in the process.
• Once transferred from the SunCloud, our state-of-the-art manufacturing facilities ensure the production of high quality custom dental devices which are then shipped back to our customers.

Traditional Manufacturing Process: In 2013, 100% of our custom dental devices were manufactured using a traditional manufacturing process. 

SunDigital Solution Utilized In-House: In 2014, we began using our SunDigital Solution in-house. 

SunScanM Introduced to Dental Labs: In September 2014, we introduced the SunScanM and SunDigital Solution to dental lab customers. 

CS 3500 Intraoral Digital Scanner Introduced to Dentists: In August 2015, we introduced the CS 3500 intraoral scanner and SunDigital Solution to dentist customers. 

28% of custom dental device revenues were attributed to the SunDigital Solution in the first six months of 2015, and 4% of custom dental device revenues originated from digital files created by customers; we expect to continue to increase these figures. 

Sun Dental Labs is helmed by a highly experienced management team with more than 90 years of combined experience in the dental industry:

Derek Diasti, CEO
Derek Diasti has been a leader and visionary for very successful companies in the dental field and is currently the Chief Executive Officer of Sun Dental Labs, which he founded in 2004. Dr. Diasti was a co-founder of DDS Lab LLC in 2006, which he then sold to a private equity fund in July 2014. He was also a co-founder of Coast Dental Services, Inc. and served as Chief Executive Officer and Chairman of the board of Coast from 1992-2005. While there, he built the company from a single dental practice into one that now has offices throughout California, Florida, Georgia, Nevada and Texas. In 1997, Dr. Diasti guided Coast Dental through its successful initial public offering and NASDAQ listing. Under his leadership, Coast Dental was recognized by Business Week as one of the Fastest Growing 100 Companies in America in 1997-1998, and by the Wall Street Journal for Best Stock in the South East USA in 1997. Dr. Diasti himself was recognized by Ernst & Young as Entrepreneur of the Year and received the Grant Thornton Blue Chip Award both in 1998.

Chuck Stapleton, COO
Chuck Stapleton started his career in his family business, Pacific Dental Arts of California, where he worked his way up from dental technician to Vice President. Chuck then moved into the software industry and was a key member of the team at Geomagic Software, in their quest to develop the first computer-assisted design and 3D software for the dental industry. After Geomagic Software, Chuck served as Chief Technology Officer for Reliable Dental Labs, where he gained knowledge in international manufacturing, working with their operations in Taiwan, China and Japan. Prior to joining Sun Dental Labs in June 2012, Chuck served as Senior Director of R&D for Den-Mat Holdings, LLC. Chuck received a Masters in Business Administration degree from Arizona State University, W.P. Carey School of Business and a Bachelor’s degree in Mathematics & Computer Science, and Economics from University of California, San Diego. Chuck brings an exceptional mix of industry knowledge and technological know-how to the Sun Dental Labs team.

Elizabeth Szeltner, CFO
Elizabeth (“Liz”) Szeltner, a Certified Public Accountant, has served as Sun Dental’s Financial Officer since October 2014. From January 2013 to March 2014, Liz served as a Financial Consultant for Intelident Solutions, a dental practice management company. Prior to that, she served as Founder and Chief Financial Officer of Superior Services, an accounting consulting firm. Liz worked with Derek at Coast Dental as a Controller and played a key role in the Company’s successful initial IPO in 1997 and managed financial resources through the extended IPO process. She also managed due diligence on potential acquisitions and played a leadership role in successfully integrating acquisitions into existing accounting systems. Liz received her Bachelors of Science degree in Accounting from the University of Texas at El Paso. Liz specializes in accounting and financial system conversions and has been recognized for her ability to bring conversion projects in on time and under budget.

Sara Yuan, President, Asian Operations
A graduate of Mechanical Engineering at Gansu Industrial University in China, Sara Yuan is a native Chinese speaker with a superior command of the English language. A proven business coach and linguistics consultant for American executives with business interests in China, Sara joined Sun Dental in 2004 when the company began exploring opportunities in China. Since then, she has been part of the international team involved with the growth of Sun Dental Labs presence in China, including the building and staffing of our 40,000 Sq. ft. state-of-the-art modern lab in Shenzhen. Sara is responsible for quality training and manufacturing, and for the operations of the production and distribution cycle.

Joost Jorna, President, European Operations
With a technical background in the production of custom dental devices, Joost Jorna has a history of innovation and success in the dental industry. Known as a dynamic leader with an understanding of both the sales & marketing and technical & manufacturing sides of the business, Joost was the Chairman of Fries Tandtechnisch Laboaratorium in the Netherlands, and later was Chief Technology Officer of Excent Dental Laboratory Group, which at the time was one of the largest dental labs in Europe. Joost has served as President of European Operations for Sun Dental Labs since January 2015. In his role at Sun Dental, Joost is responsible for sales and marketing and operations activities throughout the EU.

Mike Brown, Chief Sales & Marketing Officer
Mike Brown began serving as our Chief Sales & Marketing Officer in August 2015. Mike is an experienced sales and business development professional with extensive history of devising and executing sales, account management and marketing strategies. From November 2012 to August 2015, Mike served as Vice President of Sales, U.S. and Canada, for Carestream Healthcare, Inc., a company that provides integrated IT solutions to healthcare providers to streamline workflow and efficiently manage medical images. Prior to serving as Vice President of Sales, Mike served as Carestream Healthcare, Inc.’s Vice President of Corporate Sales, U.S. and Canada, for more than nine years. From January 1998 to September 2003, Mike served as Director of Corporate Sales for Eastman Kodak-Health Group.