Dental Patient Care Amer (DPAT)

Dental Patient Care America, Inc. was incorporated under the laws of the state of Utah. It was organized in 1998 for the purpose of organizing dentists into a cooperative model of contractually networked practices, allowing member dentists to access a number of benefits. These benefits include programs to purchase supplies, laboratory and other operating services, insurance and employee benefits programs, opportunities for profit sharing through this business model, and more recently to offer preferential business and dental practice transition funding opportunities to its members. Various dental patient marketing programs are also provided, such as the organization of its member dentists into a network. The Company's business is conducted through three operating subsidiaries, Dental Cooperative, Inc. (Dental Cooperative), Dental Practice Transition, Inc. (Dental Transition), and U.S. DentistDirect, Inc. (U.S. DentistDirect). Dental Cooperative, its oldest operating subsidiary, was incorporated in Utah in 1998 for the purpose of organizing dentists into a cooperative model of contractually networked dental practices, allowing member dentists to access a number of benefits from the cooperative structure. Dental Transition is in the business of transitioning dental practices between dental practitioners who are exiting and entering their practice tenure, as well as arranging financing for these transitions. During 2007, it commenced implementing dental member practice transition funding models using the referral lending agreements it had concluded with a third party lender during 2006. The implementation of these models provides the ability to member dental practitioners who have chosen to retire or otherwise exit their practice to obtain financing toward the future transition of their practice to a member practitioner who wishes to assume the operations of the exiting member. U.S. DentistDirect was incorporated in Utah in 2004 to conduct a dental benefits plan business for the purpose of generating patient flow for the Dental Cooperative member dentists who participate as members of the provider panel. Dental benefit plans are highly regulated and it was subsequently determined that it would be preferable to establish relationships with an experienced outside party who would offer the benefit plans this dental plan subsidiary would choose to sponsor by providing the dental provider panel. In November of 2006, U.S. DentistDirect entered into a Memo of Understanding with Dentist Direct, LLC, wherein Dentist Direct LLC would offer the dental benefit plans and U.S. DentistDirect would provide plan design input and promote provider panel participation to its members who would receive the resultant patient flow. The Company plans to continue conducting the dental cooperative business of Dental Cooperative and the transitioning of dental practices through Dental Transition. It also plans to continue the business relationship between U.S. DentistDirect and Dentist Direct, LLC for the purpose of creating and directing patient flow. The Company is engaged in a highly competitive business and would compete directly with companies that have longer operating histories, more experience, greater financial resources, greater size, more substantial marketing organizations, established customer bases and are better situated in the market than it. The Company is subject to the local and federal laws that are applicable to businesses generally.