Hydreight Technologies Inc.

Thank you everyone for joining us today to Hydrate's investor webinar. We're excited to have everyone here today. Just before we start, I want to remind everyone to take a look at the forward-looking statements as management may be discussing such statements that investors are cautioned that forward-looking statements to take a look at them. So please double check the forward-looking statements throughout. And before, if you do have a chance, please do so. And we are joined today with CEO of Hydrate, Shane Madden, and also management team, Vahid Shababi. So I'll pass it along to Vahid, who will take it away.

Thank you, Abby. Thanks, everyone, for attending the webinar. Before I start, if you can hear me and see the screen, can you please type yes in the chat box? Just want to make sure that you hear and see the screen. Perfect. Thank you. So first of all, I appreciate everyone for attending this webinar. I'm just going to have a few housekeeping items before Shane and I go through this. Shane Madden, the CEO of the company, the founder, board member, and the brain behind the whole thing has asked me to start the webinar on a few of the areas and pass it to him. A few housekeeping items. One, first of all, I apologize for having this update earning call with the delay. Both Shane and I have been under roadshows. We had a... I'm basically remote online roadshow two weeks ago. We were at the CEM Bermuda event last week and beginning of this week, been in Toronto meeting many different institutions, banks and people to to share our story. So that's one thing. The second I like to walk through our story and how we started it, not too much in details because we want to get to the updates. But one thing that has been our goal and been doing our best to do in the management team is not to get distracted with the noises that comes our way, if operationally or even on the capital market side. We try to set a goal for the company from the beginning and we continue going that way. We have tried to do our best to get to the goals that we set year over year and continue delivering the results and not get distracted on the capital market share price. Now, with all saying that, we also try to do our best to share the story of our company with more people. We didn't spend money on marketing or promo in this company. We maybe spent about $30,000 a few months ago on a very light program that when we talk to our investors, they provide a very good feedback that they rather story to be shared with the investors that see this company. This is not a company... that overnight the share price get to this point or the result get to this point. This is the company that has been built based on the fundamentals. And it's been creating revenue, real revenue, profit and all that. And this momentum will continue. Now, our goals are set, but it doesn't end there. This is not an event. It's a journey that we're going through it. In the meantime, we try to do our best. to be responsive and communicate with the market, with the facts, with what is happening, update our investors. We've been very grateful that our investors have been great supporters and provided great feedback. By no means we claim that we're perfect. There's always things can be done better. But those are the fundamentals that we want to keep in mind when we're moving the company forward. So with no further ado, I go through our stories and numbers. So as you know, High Grade was created based on The opportunity that we saw in the broken and fragmented healthcare system in the United States. The goal was to create the largest mobile clinical network that we do have nurses, we do have doctors, we do have pharmacies, and more importantly, we do have a structure and a technology that create a very easy and compliance way for the patient to have to access them tomorrow. We started with the very first vertical of the three, which was creating a legal way for nurses to be able to offer their services at patients' locations. In order to do that, we had to create a 50-state medical company. We had to review the legislations for three boards, pharmacy board, medical board, and nursing board of the 50 states, that they're all different, and creating a legal structure under the PC and a technology that defined the flow of the service and connected to any complimentary part that is needed to stay compliance from a doctor network to a medical direction to the pharmacy. Our model was very similar to other successful and fast growing SaaS companies. The SaaS companies that you see they're growing 30, 40% year over year, they usually don't make their money from the subscription because subscription won't go high for your A players. However, Your BNC players, either they cancel or they're going to go out of the business. The SaaS company will make money with the additional service that is tied to your technology. And you see a lot of them making money with the payment processing. We went back and rewrote our future in a way that we want our technology and compliancy lead to the pharmacy orders for us. One way or the other, we want to increase that and increase our margin and eventually have our own. So that's going to be the whole overall picture for us. Nurse Network has been growing really fast in the last four years. We paused the growth. I better say slow down the growth in the last 12 months to just focus on more onboarding them successfully and create more business for them while we're working on the second and third piece. This year, we started it in last 60 days, as was provided an update in our last earning call to make it easy for nurses to come on board with us. And again, the numbers is reflecting that we'll talk about that. Then while we're working on that, we realized that the medical spine industry in the United States has been growing really fast, especially during the COVID. However, during the COVID rules and regulation were relaxed. When the pandemic was over, we realized that many of these break and mortar franchises they have to either close the door or they have find a turnkey solution to make them all compliance. So we started white labeling our solution with the few tweak and mandate them that they have to use our technology and they have to use our pharmacy. On the technology piece, we were a little bit easy on them because our plan is coming that how we're going to and monetize that, we'll share about that. The first two verticals from 2020 to 2024 took us from over a million to over 22 million revenue while we were working on the third and the most exciting piece of the puzzle, which is the DSDH One Virtual. The VSD on virtual is a way for any business who's offering any direct to consumer or they cannot offering it because of the compliancy to take advantage of that and start offering that. We'll talk more about that. Our goal when we started this and we looked at the best information that we had in hand was to get to the above 1.3 million by end of this year. And we still don't find any evidence to change that goal. Now, it's it's it's not It's not easy, but it's a very doable based on the evidence that we see. The timeline for onboarding has been changed based on what we have been dealing with. Like any other tech company, when you start implementing, you start learning. As much as you want to do research and develop beforehand, you're going to start dealing with different things. And we also had some improvement on technology that we're going to talk that we made a very modular business that they don't have to go all or nothing. They can come and use us for different purposes as long as we receive the pharmacy order. We'll talk about that shortly. Now, Right now, Hydrate has become the thought leader industry. Again, before we get to the Q1, for those of you who started monitoring us, I want to remind everyone that we are a SaaS company that over four years, year over year, we had at least 30% growth. both on GAAP and top line revenue. We went from a million to 22.2 million last year. And this is only the first two verticals. The numbers that we are projecting for 2025 for the first two vertical is not based on just guesstimation, is based on historical data that we had. We were estimating 27 and a half percent to 30% growth for our first two verticals. And our Q1 was indicating only our first two verticals. And we'll talk about the onboarding and what we're expecting to see the numbers for the VSDH ones coming in. Now, not only that, we were a business that we didn't take any loan or we didn't raise any money until this year because we ran the business very efficiently. We focus how we can grow the business to be a profitable business. Another piece to our formula, when you want to look at a re-evaluation, we're not only a SaaS company that we had year over year 30% growth. This company has also become a just set of positive in 2024. And in Q1, we also ended up being gap positive. We'll talk about that as well. Cashflow from the operation, same thing. We invested in the business heavily, but 2024, as we announced and we talked to our investors, one of our focuses was to be cashflow positive. Cash in hand, same thing. The business went up. Now, let's take a look at the Q1 2025 and what happened. Q1 2025, the goal for the company was to have 27.5% to 30% growth with our first two verticals. Now, we achieved 34% growth in the first two verticals. So from the first two verticals, we're ahead of the curve in the Q1. Now, we did a live offering earlier this year at $1.55, and we received over $5 million in. The purpose of that, to diversify our investor base, bring some institution behind us, getting coverage, and we know the fact a few coverage is happening for us this year. But because we don't want to go after paid coverages, we don't know the timing, but we have received the confirmation that the report are coming out by institutions. In Q1 2025, our gap revenue went to over 4.5 million when a similar figure last year was 3 million. And if you go back only four years ago, it was about $206,000. This is the company that year over year on the timeline and gap revenue, we see that at least 30% growth. Top line revenue, same thing on 2024. We had about 4.8. We finished with 6.5. EBITDA, adjusted EBITDA from the negative 45,000. We ended up being a positive 163,000. Gap. From for the first time, from 308, we went to about 20,000 gap profit and loss in our balance sheet. Cash flow from the business, over 350,000 positive. And cash in hand, it's over 6 million. Now, we have become a company that not only we grew 30 to 35% year over year, now we're profitable with over $6 million in cash in hand. We're going to talk about some of our plans, how we're going to use that to increase the margin of the company. Now, we know the fact Q2 and Q3, we're going to invest into the business that our EBITDA may be impacted. However, that is going to lead to the end results of the year end for the margin and the revenue that we're hoping to get based on our plans. But we're going to continue running the business in a way to stay cashflow positive and profitability is one of our point now. With the first two verticals for the nurse network and franchises, one of the things that we introduced was, and that was the results of the few months. We talked about it in the last earning call that we're trying to finalize that. For the very first time, now our nurses will be financed by a finance company. We'll receive our money right away. However, the nurses can pay in the multiple payments. And we started seeing the results of that in our nurse network because affordability to pay average about $3,000 a year was a little bit hard for some of the nurses. Now, I just want to remind you that market by itself, there are 4.5 million nurses in the United States that they can use our system. And that's the only one. Shane is going to more talk about the necessity versus good to have. If they want to have a side hustle or if they want to have a full-time business that they leverage their skill set and their certifications, this is the only way and this is the only show in town. Now, from January 1st to May 31st, roughly we saw 78% growth in the new signups for the nurses. These are the paid signups. Again, I want to remind you guys that any new sign-up come on board, on average, they can bring up to three nurses to the network as a service provider to be able to serve their area. Now, from January 1st, May 31st to in 2024, in compared to 2025, in compared to 2024, we roughly have 70% growth. Our pharmacy orders, number of the orders from January 1st to May 31st from 2024 and 2025, we saw roughly about 45% growth. And again, our third vertical is kicking in in Q2. And we're seeing in June the numbers that are coming in for the businesses that we signed up, even though it's still we're in slowly migration, live migration process to slowly bring their customers over when All the basics are done. The religious script is done. Their record is over. Slowly we're rerouting their pharmacy orders, which is the last piece of the puzzle for us to bring it through our system. So we start seeing that and realizing that day in, day out in June. And we're hoping to in July and August is going to go up and achieve the numbers that we're looking for. Now, one of the things that I mentioned earlier is with all these break-in motors that we signed up, one of the reasons that we had the enforcement of using technology whenever we trigger that was because we wanted to have a secondary revenue stream attached to our technology to be payment processing. This is a very high risk payment processing. Not too many people can do that. We already received the confirmation of the agent of that from our gateways. So we can do that. Now we're bringing the POS, the point of sales to our technology. So right now, if they're only using it for booking and scheduling, online booking, doctor network, seeing the doctors and pharmacy orders, Now, the goal is to either acquire a POS company or build that piece because we started that piece last year, but due to the VSDH1 development, and again, running the company very efficiently, we had to delay that. When that piece comes over, every dollar that goes through any of these breakout motors, we're going to make a piece of that because the payment processing will be with us and we'll make money through that. So, in a nutshell, the Q1, that was a reflection of the first two verticals we had roughly about 34% growth, which is higher than 27.5% to 30% that we were hoping to do. Now, With no further ado, I want to pass it to Shane to talk about the BSDH1, the platform, the structure, why this is only not a 2025 play for us. This is just the beginning of a journey. And as this business has shown that we have year-over-year growth and where we're going to go with that, and then we'll continue with that. Shane, please go.

Thank you, Vihit. Hi, everybody. Vihit, beautiful as always. Thank you for framing the company in such a great way. So we've had a lot of volume over the last few weeks on the market side. So I'm going to kind of go back over some old ground for some of the shareholders here. But please, please allow me to do so. What we have created here with Hydra Technologies is a holistic solution for the direction that the US healthcare system was going. So the US healthcare system is $5.9 trillion spent every single year. 90% of that is based off of chronic conditions, diabetes, obesity, and many conditions, you know, lifestyle related that are technically preventable. What we identified back in 2018 was the direction that the solution of this U.S. healthcare issues were going to go was in three areas. Mobile health and wellness, i.e. a healthcare professional physically giving a service in a remote setting. the non-traditional doctors, health and wellness facilities, but your non-traditional doctor's office, that was the second direction or vertical that was going to go, your medical spas, your IV therapy lounges, anything that is providing health and wellness, but not a traditional doctor's office. uh still needs all of the compliance etc um it's just a different direction for healthcare and the third uh direction was obviously the direct-to-consumer model um where that is self-administered by the patient but under the governance of of compliance via telemedicine So those are the three areas. That market has only expanded with obviously COVID shone a light on accessibility to health care without it being a physical hospital or a doctor's office. The glamorization of the Ozempic and Mungero and GLP-1s has again shone a light on the direct-to-consumer model. But the awareness has now started. 50% of United States citizens in a poll recently said they would like to try GLP-1. So that awareness, whereas two years ago they didn't even know what that thing was. Being the CEO of your own body, controlling your own wellness, that movement has happened. Now, where we've positioned ourselves to the hit point of this is not a quick sprint or this is not a chart that is doing well for right now but might taper off is we've created a mode of compliance. Our model is different. Our strategy was different. Our direction was different. Just like the nurses, where we get called the Uber for nurses, we were the first movers and are still the first movers to allow nurses to be independent contractors across 50 states and be able to monetize their credentials outside of a bricks and mortar setting. We were the first to do that. But our entire platform is first mover. Our third vertical, which is obviously the most exciting from a revenue generation perspective and an accelerating of the company. That also is a first mover. We are essentially a platform to do business. We get referred to as the Shopify for healthcare in that regard. But again, that's a little bit of a slight on the company because we're not the marketplace, we're the market essentially. And we've created this mode of compliance that doesn't go away. That's the reason our graph looks The way it does is as people join us and as people partner with us, as we solve the problems to allow their companies to grow, they stay with us. So what actually is VSDH1 and what have we created there that is so powerful? Well, I'll go into it a little bit more deeply now. So during COVID laws, there was a lot of stuff relaxed. People were popping up with health and wellness businesses, putting a website on. or adding additional services to their existing business that wasn't technically healthcare, supplement related, etc. So we've leveraged our 50-state medical company, our vertically integrated pharmacy network, our doctor-physician network, and our overall compliance with corporate practice of medicine. um to allow these businesses to stay compliant uh or to expand now um we're not a nice to have we're a must-have so the same way it's illegal for a nurse to um to basically monetize a medical service it's the same for businesses so corporate practice of medicine is exactly how it sounds it's the prohibition of corporation getting into medicine, unless you have a structure like we have created. It's incredibly difficult. It's incredibly complex. And to tie all of this together through the medium of technology for those three verticals is the reason we're kind of a one stop shop. We'll move on to kind of talk about the different types of customers here and how that relates to our goals. We've been very clear about our goals for 2025, the nexus point or the inflection point this company has reached. Our first two verticals have still a lot of growth, as Vihit touched on, 4.5 million RNs. There's only more and more traction happening on that vertical, adding treatments, getting busier from the patient perspective. And we're very excited about these first two verticals that in itself is a very successful company for these last five years and has tremendous growth potential. But the third vertical is a little different because it's a B2B2C play, essentially. And these are recurring treatments. And so across the 53 treatments across five or six different categories, whether it's at home testing, which we have, I'll get into in a little bit, we have very creatively worked with a lab that not only has the genetic piece, but it has the technology piece. That's what most most laboratories are missing is the business side of it. So being able to get your results back to your technology and then be able to see the next steps of ordering a treatment that's specific to your results. Now you're getting into the individualized healthcare and now you're closing the loop on the individualized healthcare cycle. So essentially we have obviously created a beautiful mode, a turnkey solution for businesses that are looking to do a particular thing. So there's a few different types of businesses that we're attracted to. So you have the businesses that already have clients, but are not technically in healthcare. So they would have to obviously join, use our tech, use basically everything. The slowdown for them would be obviously LegitScript certification. which were enterprise levels. So that takes between 12 and 16 weeks, depending on the client. And they basically would be the easiest, I would say, to onboard. But obviously, they have to gain traction in the market from a marketing perspective. So the easiest to onboard, but possibly the slowest to big results. Those are the ones that we've been focusing on. Well, we focus on everything, but those ones are the ones that we'll possibly see in the Q2 results, you'll see traction from that type of customer. Our other businesses are obviously the larger volume businesses. So these are businesses that are actually doing large numbers. And we've communicated obviously in previous webinars that we have some businesses that are doing 150,000 orders a month. Nothing that we have done This year has taken away from our goals of basically 1.3 million orders. We're going to see a lot of that in Q3 and Q4 for a number of reasons. We're technically solving one of maybe five or six problems for these bigger businesses that are doing a lot of volume. uh created on maybe structurally uh unsound uh premises um want to expand into other states want to expand into other products perhaps to increase the ltd but just from a practical perspective so everybody that's not deeply into the healthcare side of things in the us can understand is you're literally taking a medical company who's doing large numbers and you're taking everything across to our medical platform for it from md uh which would be medical directors to um the physicians, they're now our physicians, to the patient data, to the product itself. In some scenarios, it's customized medications. So that involves the pharmacy. They have to be on our pharmacy network because some of these pharmacies that have popped up to take advantage of the GLP-1 craze and the peptide craze are not all that credible, from the product itself to their state licenses, et cetera. We have to move the entire thing across and you only get one chance to do something the first time. So we've been very, very hands-on, very goal and execution orientated on those larger businesses, but everything is working smoothly. And again, we are very excited about seeing that nexus point from of those businesses in Q3 and Q4. However, in Q2, we're gonna see the other category of business owner, which is the ones that are branching into this model with their existing customers or branching into gaining new customers. That's kind of an oversight of the mode that we've created, where we are as a company from our third vertical, what we're expecting this year and why we're going to be around for quite a while. This is not 2025 as kind of our sprint to the finishing line. This is essentially the the kind of evolution of the overall platform. And now it's just coming to fruition from a revenue generation perspective. So I'm going to pass it back to Vihid maybe to talk about some accelerators. Actually, I'll just stay on this slide for one second because it's a good way to kind of visualize The various onboarding times for the different clients that I just described. So again, depending on which type of category of customer we're talking about, whether it's low volume and needs the tech, needs full migration of their customer data. needs full migration of their existing high volume, possibly needs a customization of their actual pharmaceutical, which of course will take time with our partner pharmacies, that can range. So again, I hope I did a good job of explaining kind of in more detail, because I know we have some great shareholders out there that are very excited about 2025. And I just wanted to add a little bit more flavor to how this is going to pan out and how this is actually going to be reflected in Q3, Q4.

Thank you, Shane. Before I go to what's coming, from what Shane described very beautifully, I just want to add a few pointers to that. One, as I said, this business, any SaaS company is not a straight line. You come up with the idea, you come up with your mode, you come up with your technology, then you start targeting your customers. When the customers start coming on board, you're going to start seeing things that doesn't matter how much you spend on the research and development, it's going to be new to you. So you have to do it. So Our goal for 1.3 million order this year, when we started at the beginning, the implementation has been pivoted and modified and improved since we introduced that and was very open about that with all the shareholders. Now, we could secure businesses that they have 100,000, 150,000 orders a month currently. And they are going through migration. And we're trying to bring the entire order in and goes back to our migration process to make sure we do a good job to bring their orders over. But this is the platform. Not only their order is going to be compliance, but they feel opportunity to either add more products to that or just go to more estates and even make more money because of our prices. So in month of June, many of those The chart that you saw, they passed every single stage and started rerouting their orders to our platform. And we see that numbers in the last 10 days is slowly going up. Still, it's not even close to their full number of the orders that the plan is to come within the next 45 days. But we're going through that now. The other piece that last time we talked about that was the genetic test that we were working on that and we announced it. Now, why that piece is important? Not only we keep trying to keep adding more offering to our platform to make it easier for people, but that genetic test is going to go a long way from the business strategy perspective. Right now, as Shane mentioned, the direction of the personal health in the United States has been pivoted since COVID and is getting more and more into everyone's hands. However, everyone's going after the products that they feel they needed. they go after TRT or semi-glutide or this or that. Obviously they have to go through the qualification and seeing a doctor's blood test here and there, but the initiation was by them. So there is no value that some of these people at the very beginning as a direct to consumer offering, you wanna put on that if I wanna spend this much money. Now, we try to change that in few different angles. We try to introduce an at-home, very low-priced test that these people can start with that. Our clients can start only marketing that to their patients and future patients. Now, when the result comes back, our doctors will connect them. Now, they're going to talk about the deficiencies that the body has from the genetic perspective. Now, the treatment plan will be based on that. So now is a scientific and logical offering behind what they're going to go on, not only this month, not only next month, but long run. And they can see that. Now, that's one piece that is going to help from engaging more people. Two, the data that we're capturing with all that and the existing data, not individually because we can't use the individual patient's data, but accumulatively is going to help us with the tools that we're thinking, you know, we've been working on planning to bring with AI in a way that not only Like right now, AI is a very buzzword, especially in the capital market. Everyone is trying to have one, but there's two problems with that. Data and monetization. They don't know how to do it. For us, we're trying to have enough data and see what can be done with this data in a way that we can help for better and healthier people at the end and do that. So that genetic test, it took us about like, if you go back about six months to finalize that and get them over in a way that we know is going to be our product, is full integration to our system. how we're going to utilize that and go from there. Now, what's coming? M&A investments, we have 6 million in the bank. We do have a second currency, which is our stock. That's the reason we're public, but we're not one of those companies who just wants to create on the story. I can tell you that in the last 12 months, especially in the last four months, there has been many deals that either passed the LOI or got close to the LOI and we never announced them because we don't want to just be on the story. We do a very detailed due diligence. Two, make sure the company that we're bringing over, the investment that we put in, is the best of interest of our shareholders and is going to add value to our bottom line. Again, we focus on the goal, not the noise. We've been looking at labs. We've been looking at the pharmacies. Not one, not two, still going on. We know the fact that we want, hopefully, close either an investment in a large pharmacy or acquiring a pharmacy somewhere this, sometimes this year if possible, to help with our margin. But the due diligence in that industry requires so much that we make sure that we don't put our money that it's going to go somewhere that there is no results. So um we try to communicate when things is done we don't want to just have another news release out so in the past 12 months there has been a loi that was signed but we didn't announce because it wasn't passive intelligent there are many deals that went to the due diligence even the pharmacy product pharmacy 503 503p in the last four months that again we went to the full diligent they didn't pass so and more talks is happening right now. So our goal with any M&A and investment is if it's going to help with the offering that is going to help to a revenue such as a POS company, such as the companies that is going to help with the revenue from the product perspective, or they're going to help with our margins, which on top of the priority is somehow either own or be part of or be a founder of a 503A, 503B compound pharmacy. And the reason that we, part of our analysis that instead of being a big owner of the small one, we also considering a small investor owner of the very small one, it's like a big one that has full automation and we can have our own product at the pricing that we want, but it can produce three shifts of eight hours rather than manual production. We continue looking at additional product and treatments. That way is not as simple just adding. There are three different layers to that. Our chief medical officer, Dr. Pombo, our doctor of the pharmacies, Dr. Lindsey, and our legal team on the medical side, they have to review that. We have to do a due diligence. We have to tie it to our service. we have to come up with the compliance flow per state we have to translate it into the technology and we don't want to introduce a product or treatment that we don't either have the ownership or exclusivity or we have a long-term contract with them we don't want to just introduce something that somebody else comes and goes now we're always looking at new things something branded or non-branded We'll announce when it's done. We don't want to just talk about what's happening. But again, I want to remind you guys, we're still a 25, 26 people company. And the revenue, the profit and all that we've been growing, but we have limited resources and we don't want to spend too much on areas and lose that fiscal responsible factor that we've had to run the company. We're also working on a marketing partnership, mostly on the D2C side by either bringing people on board and creating a subsidiary of the marketing agency underneath to help our clients or work with someone that can expand us to that because marketing is the name of the game right now after setting up everything very beautifully. Before we go to a question and answer, a quick summary. Right now, if you want to look at the valuation of this company, this is a medical SaaS company that has 30 to 40% year over year growth since 2020, is profitable. It has a moat, has a technology, has a structure that is very unique. Now, we're pushing to get about 27.5% to 30% growth from our first two vertical. We're pushing to get to 1.3 million orders for our third vertical, but that's not the end of the story. That's the momentum that we're creating, that if it's a little bit less or a little bit more, we're not going to pause. That will continue year over year. Our goal is very set. We want to get to the revenue that we have in mind. And we know the fact this company is going to be valued at that. So when you look at the SaaS businesses and the health tech businesses in private and public sector with our growth percentage in last few years, and projections with the adjusted beta positive, with the actual gap positive, then that's the re-evaluation of the business that we feel, based on those evidences, we're still a very undervalued business. BSDH1 Momentum hasn't started it. Now, yes, we still have... We see some... challenges for that or a better word. That if I feel if you don't see the challenges, you're not doing something right. We're not a company that we're trying to sell them a story with no growth in the past and no growth in the future. We have started at seeing the rerouting some of the existing orders into our platform in June, and that will continue, but we have to watch a lot of hog to make sure everything's going well. Now, not only that, some of the businesses that started doing marketing, they're getting engagement. We have businesses that they're dealing with I think, I don't want to misquote it with 5,000 churches on the GLP-1 and all that, that they are on the BSDH-1 that started going live this week after eight weeks of onboarding and also configuration with them. Now, We have to understand where we are and what we have from complexity of the tech, of the structure, how unique our structure is. We're not good to have, we're a necessity. Where we have become from 2020 from the growth perspective and where we're gonna go this year and the next year. And that's where the focus of the management team and our board of director, Shane Madden as the CEO, board member, founder, and the brain behind the whole thing is to get the business there. Everything else that comes, we know we're going to see the noise. We had offers. We had offers that is giving us not one, not two, that they're suggesting to take us on NASDAQ. But are we ready for it right now or not? We need to graduate the high school first before we go to the masterclass. We have to focus right now on the growth, growth and profitability as the two priority for this company that everyone is trying to achieve that and meeting more people, telling them a story, not in a promo way, but in a meaningful way. And that's okay if one of the two is not interested in our story. Maybe they're looking at different type. But if we get someone who's based on the facts and is based on where we're going with that. Now, once again, I want to thank every single one of you and all the investors and supporters that haven't made it on this call. You guys have been amazing. We're super grateful to have such great people behind us. All I can tell you is we're heads down focusing on delivering the results. Now, there are always things that is out of our control. By no means we're going to say we're the best or we're perfect, but I can tell you we're doing everything we can and we're doing our best to deliver what has been communicated and we'll continue communicating with you guys. Before we go to question and answer, Shane, if you'd like to add any comments, I'm going to start reading the question and answering them.

No, I think we can go to questions and answers. That was very comprehensive and just like to echo the support and actually knowledge that our shareholders have. And we're not one of those promo companies and we value the story because we know what we have. We're excited for the future and we're just heads down running the company as professionally as we can because we know the upside. We know what's coming.

Thank you, Shane. So the first question, I'm just going over all the questions that was on the chat. I know we had it for 45 minutes. We're going to continue answering some of the questions. Anything we didn't get to answer, please send us an email. The first question for Shane, there has been many lawsuits on the GLT-L1 compound lately. What are the thoughts on that risk to hybrid? And maybe, Shane, if you can add a few things that we have been proactive about that would help the investors.

Yeah, a lot of noise in that space. So the GLP-1 lawsuits are essentially nonsense in many cases. They're cease and desist in a lot of, okay, some of the pharmacies have gotten lawsuits because they were too close to the patent itself. But most of the well-structured pharmacies, the ones that we work with mainly on our network, have a product additive into the actual base compound that is far enough away from the compound that that goes on. And then remember, the part of that doesn't come out in the media is this is essentially a prescription. So it's individualized health care. Right. So that never goes away. There's no patent on that one. So what they'll do is they'll add glycine, they'll add B12, they'll add for specific conditions, not just a broad stroke GLP-1, a specific condition. to the customer. So again, some of the lawsuits, some of the noise that you hear is from some of the maybe unreputable pharmacies that have gone too close to the sun from a patent perspective. But there is no slowdown in GLP-1. But again, that's one of a massive range of direct-to-consumer products, guys. Yeah, so hopefully that answers it.

Just add to that, we're also, as part of our investment strategy, there are so many new companies coming out with the patent, with the different type of the delivery on the GLP-1 that we've been very active in communication with them. We're close to investment with one of them to have some sort of ownership. So that's how we'll look at things. But again, we don't want to just announce things until things are done. As I said, being companies, labs and pharmacies very close to uh you know after due diligence or even we've signed the loi with our exit on that that we didn't announce just because we want to make sure what is delivered is done uh thank you shane how likely will 1.3 orders will be hitting 2025 for the third vertical we talked about this uh we're still uh don't see any evidence to change that will we look at the momentum We look at the existing businesses that they have that much order, heads down, focusing on the migration of them. And we're doing our best to bring all their orders, which is going to be around or more than that. Um, any talks with the veteran clinics is still going on, or just one question from the U S agency. So we signed the contract with the company that their, uh, their, um, focus was the government contract and it still is the government contract. Um, uh, we're still working with them. It's not a quick turnaround. we're still in some conversation to be part of a contract or get the contract. So that's not the end of the road. It's not, we didn't close that chapter. We're working on that, which is going to heavily help on, uh, on our third vertical and our first vertical, which are nurses. Um, So that's to answer to that question. How many medical providers companies now split among how many licenses? I believe you were talking about the doctors. We work with independent doctor networks. We have access to as many as we want right now. We're over 300 based on the availability and number of the orders that we're getting across the board. At the beginning of every month, we provide a projection based on last month and what's coming on board. And it's a full meeting with our onboarding and success team for availability per state that they need to add it and the licenses that is needed per state. um area and then also we have i think uh uh roughly about over 80 uh roughly uh medical directors that uh is overseeing you know everything that they're all under uh dr plumbos as our chief medical officer um can non-prescription product join the platform to help the distributor help product across 50 states uh shane would you like to answer that

Non-prescription products. Well, yeah. So the downstream, one of the things that's going to come from the aftercare of the genetic results will be possibly some maintenance type products like supplements. We're actually in talk with a few very large supplement companies to add this. So it's not just the prescription drugs, even though themselves are recurring. It's the maintenance that go along with those, the maintenance products that go along with those. So the short answer is yes. And the short answer is we are in talks with such companies at the moment.

There are a few questions around the same topic, so I'll read one of them, but I'll answer them all. Regarding the 1.3 million order estimate for VSDH model for 2025, what sort of matrix with respect to the average selling price and margin should investors use this model for business? It's a great question. We talked about the margin in the last, in the last earning call. So right now our goal is to be, you know, around 25 to 30% minimum. If we acquire or invest in a pharmacy, that is going to even be a lot higher than that. However, in order for us to get these businesses that they already have orders, we had to make to move. One, the prices and the margin come down to make sure that we can get the orders. Because again, this is not a sprint. It's long term. So when we have the orders in, either we can enforce our providers and our network to bring their prices down, but there's going to be a period, a grace period, that we have to deal with that, and then they're going to see the volume. The second, that we've been very active on investment or acquisition of the pharmacy, automatically our margin is going to go back up. So right now, the prices and... And the margin is all over the place, especially the larger customers. We have some that were around 10%, 12%. We have some that is around 18%. But that varies. And we keep adding more product to them. Right now, our main focus is to get to that 1.3 million orders. Now, the other thing that we invested in the business on the VSDH1, we made VSDH1 to be modular. For those of you that understand technology and being part of technology, that's a very expensive but very impactful move. Meaning, these businesses, they don't have to come all or nothing. They can slowly bring their business to us. They can just bring the doctor network. They can just bring the structure. They can only bring the pharmacy. They can only bring whatever they want. they all have to have the pharmacy with us. So that makes it easier for us to slowly bring some of this. So now we have a modular technology that it may start with one piece and is going to ultimately get to all, but they're all going to end to the pharmacy order and soon payment processing for that. So that's another area. any latest on looking into the pharmacy acquisition, how far could it possibly for POS business? As I said, pharmacy being our number one acquisition and investment target that everyone in the management in putting their time, we have gone so close to the few of them. They failed on the due diligence. We still have a few on the queue that we are working on very hard. And we will announce that soon, We're going to announce that basically when it's getting summer, but this is something that is a priority from the acquisition perspective and all. I'll ask two more questions because we already passed about six, seven minutes. Shane, two questions in one, there are two different questions that came. One, what's the latest update with Dr. Franks and if you can add more about the doctors Frank in general and what is the current already onboarded migrated or order run rate additionally on the VSC discord it was mentioned that some big pilots were currently in progress what's the status of those clients maybe talk about the Dr. Frank the you know the churches and all that that question

Yeah. So again, please excuse me if I go back over all ground here, but for any new shareholders here. So Dr. Franks, basically Dr. Franklin Joseph, he was involved with writing the white papers for Eli Lilly and Nova Nordic for the product 15 odd years ago and has been a has been a big brand in the Dr. Frank's weight loss program for over 15 years, UK and other countries around the world partnered with us because the US is such a complex problem to solve and wanted to bring their brand over wanted to basically bridge the gap of molten compliance via partnering with us. And onboarding has been going great. Obviously, they are a new entity over here. So The creating of the websites and then the logistics certification has taken time, but they're going live this month. They have their marketing in place and that side of it is going well. There's also some interesting talks going on through that relationship that hopefully we will have maybe some exciting announcements further down the line.

The second question, Behid, I believe was around current licenses and current... Current licenses, some of the bigger clients that have been on board and the stage of where they are.

Yeah. So again, as I described earlier with the various classifications of licenses, we, of course, in Q2 brought on and migrated because we were working on it through Q1. We brought on some of the businesses that were quicker. Obviously, those would be businesses that were branching into this space, using us from a compliance perspective. And then obviously, the ones that took a little bit longer were the larger volumes. So we're just starting to see those trickle in. As Vahid said, the larger clients obviously come with larger complexity. So we are happy to announce that we are seeing the larger clients getting into that phase, whether it is one state with one product or one product, we're starting to get that movement going. It's super important to transition those larger clients because they're doing very, very big numbers. So when you move to a new platform, you have to execute perfectly. So I think anybody will understand why this is so important to take your time. Q3, Q4 is when we're going to see the full brunt of that transition. But we are seeing them and they will be reflected from this migration process in Q2. But Q3 and Q4 is when every shareholder is going to be able to see that complete process and how we will hit our goals of 1.3.

And lastly, average selling price on these 1.3 orders. You didn't answer either of my questions. So we talked about the, again, we talked about the margin. Right now, our focus is orders. We want to be profitable and we're getting clients. We have clients right now that they can add extra 100, 150,000 orders to this per month. And so we're not going to just be, you know, either we're going to get our 30% margin or we don't want them on board. No, we want them on board because by the pieces that we're putting in place, as long as we're making money, we're going to make more money with them. It's a long term. From the prices, prices hasn't changed. Prices, we had new products that are a bit cheaper, but the prices has been what has always been communicated. We said it's anywhere between $70 to $150, $200. Now we have some products that are cheaper on the $30, $40, $50, but the prices hasn't changed on any of that. We're trying to... you know, focus on the volume and make sure the volume coming at the right time. So I think we answer almost all the questions that came in. Once again, I would like to thank you all. You know, we're, we're heads down focusing on the goal that we communicated. We're not a story company. Please look at us as a company that in last four or five years has been grown 30, 40 years, 40%. year over year will have a very good opportunity with what we have invested in from the structure, from the software, from the technology perspective to continue this growth. And this growth is not going to stop when we get the 1.3 million order. This is just the momentum that we're starting. And again, we're going to focus to get as many orders as we can and continue growing this company month over month year over year and communicate with shareholders as much as we can you have to understand some of the things uh it's they are private companies that we're dealing with now not one they don't want to share their names because they're using this as a as a white label two some of the orders to have any matrix or anything with some other larger one is going to put us in a position that they understand that they're running the show for some of the orders that we brought on board So we have to be careful on what is the best decision for the shareholders and the company. We would like to be as communicative as we can. And lastly, we are going to make and we are trying to make some bold moves on the acquisition side, on the investment side to help with the margin. But we don't want to waste the money of this company. Our investors have been trusting us on an investment or acquisition that is not going to lead anywhere. uh once again thank you all appreciate the time and the support any question feel free to send us an email and we'll do our best to continue growing this business as per plan thank you thank you guys