Q2 2023 Pressure BioSciences Inc Earnings Call

Speaker 1: Good afternoon and thank you for standing by. Today's conference call will begin shortly. Thank you once again for standing by. Please remain connected at this time. Today's conference call will begin shortly.

Speaker 2: The the the the the the the, the the.

Speaker 2: That that.

Speaker 3: Please continue to hold, ladies and gentlemen. Your conference will begin momentarily. Thank you.

Speaker 2: One

Speaker 4: Good day everyone and welcome to the Pressure Biosciences second quarter 2023 Investor Call and Business Update.

Speaker 4: At this time, all participants have been placed on a listen-only mode. Again, time permitting, we will open the floor for your questions and comments after the presentation.

Speaker 4: It is now my pleasure to turn the floor over to your host, Richard Schumacher, President and Chief Executive Officer of Pressure Biosciences. Sir, the floor is yours.

Speaker 5: Thank you, Matthew.

Speaker 6: And welcome everybody to the PBIO second quarter financial review and business update.

Speaker 6: As always, we'll begin with a cautionary statement.

Speaker 6: The following remarks may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements.

Speaker 6: expressed or implied by such forward-looking statements. Such factors include, among others, those detailed from time to time in the company's filings with the Securities and Exchange Commission. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change.

Speaker 6: in our expectations or any change in events, conditions, or circumstances on which any such statement may be based.

Speaker 6: For the agenda today, first of all, I am pleased to welcome back to our call the company's Chairman of the Board, Jeff Peterson. Jeff, welcome.

Speaker 7: Hi Rick, hello to everybody. Glad to join you again.

Speaker 6: So for today's meeting, we're going to start with a brief discussion of the 2023 second quarter financial results. Of course, those were published last night and again today in a press release. So we don't need to spend time going through them by the number, but we certainly will talk to them and talk about them.

Speaker 6: Then we're going to highlight some of the operational and technical successes that we achieved during both the first

Speaker 6: as well as some of our goals and expectations for the rest of the fiscal year 2023 and after, and as part of our general business update.

Speaker 6: Afterwards, we'll answer a handful of questions that have been sent to Jeff and me with a request that we address them on today's call. And after that, if time is remaining, we'll be pleased to open up the phone lines and take a few questions.

Speaker 6: Live so, for the financial review, I'm going to discuss the, the second quarter and I'm also going to discuss not only the second quarter compared to the. 2nd, quarter of last year, but also the 1st, 2 quarters of this year.

Speaker 6: Basically, it was a good second quarter. We had, as you recall, a much better first quarter, a record first quarter. This was a record quarter for two quarters, quarter one and quarter two. But it was a good quarter, both financial, but particularly on an operational and technical basis.

Speaker 6: Our total revenue, our instrument sales, our consumable sales, and PBI Agri-Chem sales were all higher in Q2 2023 than they were in Q2 2022. It goes without saying that we're disappointed that we had no UltraShares revenue in the second quarter.

Speaker 6: We had intense focus during the first and second quarter of this year on the planned launch before the end of the quarter and we did launch in the around the 23rd of May our old this year process nano CBD topical spray So very happy that we were able to get that out and it'll a number of people on the phone call today

Speaker 6: have already purchased that spray and have already seen how well it works.

Speaker 6: So we knew it's going to be a tough quarter to get ultra-shear sales in Q2. But as mentioned in today's press release and certainly on the last conference call, we fully expect to post strong ultra-shear revenue in Q3 and Q4 of 2023.

Speaker 6: It also remains our goal to have at least one quarter with greater than 1 million in revenue in 2023. So it's our goal for one of the next two quarters to be over a million dollars in revenue. It also remains a goal for next year to have our first quarter ever where we have each month in the quarter.

Speaker 6: 1 million in revenue. These are lawfully goals, but we can we can hit them. We feel and believe that we can hit them. We've got a tiger by its tail. We are clearly very happy with the performance of our ultra sheer.

Speaker 6: nano CBD topical spray. We'll be releasing an oral spray later this year, perhaps in September , and we're excited about that. And the data to date's been extremely good. And so between the two of them, the topical and the oral spray,

Speaker 6: We do believe that it's possible that we could take our sales, which are generally about two and a half million for a year, and eclipse that in just one quarter next year to do about a million a year a month. A million, sorry, a month.

Speaker 6: per quarter next year at least once if not more often. So very excited about that. It's going to be driven by Ultra Shear. We've talked about that in the previous meetings here on the phone, investor meetings and in some of the comments we've made. We've talked about that for quite some time certainly for

Speaker 6: for all of 2023 so far. So I think there's two things on the financial highlights of the second quarter that I'd like to point out. The first is that our cash burn continues to be decreased. We are very, we're very close to the Poor's

Speaker 6: cognizant of our cash burn. We're very cognizant of needing to put that cash totally towards the use of getting the old DeSheer platform out and working. We're spending 90% roughly of all of our efforts in old DeSheer.

Speaker 6: And so between the efforts and the cash that's going into it, we've been able to make very good headway, both technically and in expanding our distributor base. We'll talk about that too, but most importantly, or just as importantly, we've reduced the cash firm.

Speaker 6: from operations. In the first quarter we talked about it it was a 44 percent

Speaker 6: decrease year over year from the first quarter of last year, 2022, to where we were just around 422,000 in the first quarter. And the second quarter of this year, we've decreased our cash burn year over year from last year, about 28%. So overall, we've...

Speaker 6: decreased our cash burn for the first half of this year compared to the first half of 2022. We went from $2 million in cash needed for operations in 2022 to $1.3 million in 2023. And that's about a 35% decrease. So it reduces the amount of cash that we need to either borrow or buy from the bank.

Speaker 6: still been able to make good headway in both the technical and the operational areas of ultra shear in particular. A lot of it's come out of our barefold and our PCT. We're still working in those areas but we're minimizing our efforts in those areas, taking care of our customers which is so important.

Speaker 6: but not working on anything new in those two areas right now as we put all 90% of our efforts into ultra shear. So, very happy to say that the cash burn has decreased tremendously over the first half of this year. In the press release that went out today, Jeff who's with us.

Speaker 6: mentioned a few things and Jeff I'm gonna I'm gonna ask if you could maybe take over the podium here and talk about several things that you mentioned today in the press release.

Speaker 8: Thank you.

Speaker 7: Sure, Rick.

Speaker 7: I think one of the things that we were particularly.

Speaker 7: about is a great deal of our attention has been focused on restructuring of the ballot sheet and on our path to being able to complete an uplift to NASDAQ or NYSC at the earliest opportunity.

Speaker 7: And in the course of this, one of our major long-term investors during the second quarter agreed to convert $10 million of debt into preferred stock. And that obviously has a very significant impact on the economy.

Speaker 7: beneficial impact on the balance sheet and is an important stepping stone toward our intended uplift efforts.

Speaker 7: We anticipate that a significant amount of additional debt position is also positioned to convert to equity as we complete financing efforts associated with uplisting.

Speaker 7: So we're pleased with the positive progress and how pieces of that puzzle continue to align for us.

Speaker 7: As part of these efforts I would just comment that the board has continued to put some strong attention on strategic opportunities that could help accelerate us either looking at non core assets that we could

Speaker 7: divest and help create some funding to assist that path. Or looking at some strategic merger acquisition opportunities that would be accretive but importantly would be strongly leveraged by.

Speaker 7: the impact of our ultra-shear platform.

Speaker 7: The the ultra sheer platform as I think our audience has been been learning over many months now is a transformational technology that will be game-changing in our view in a wide variety of industries from

Speaker 7: food and beverage, to nutraceuticals, to cosmeceuticals, agrochem, pharmaceuticals, and other areas.

Speaker 7: the ability to take an oil-based or oil-soluble active molecule, whether that's a nutraceutical like acid xanthine, the leading antioxidant in the world or retinol in a skincare product.

Speaker 7: or a wide variety of other products across the markets I mentioned. Obviously cannabis is one that we have looked at. THC, CBD, and various other cannabinoids are all getting a lot of attention in different applications.

Speaker 7: And they're all oil-based actives. And for our water-based biology to absorb them, we have to get these into tiny enough droplets of oil that our bodies can rapidly absorb the active molecules out of those droplets.

Speaker 7: and doing that and avoiding undesired chemicals for consumers, undesired damage to the product by competitive processes is highly desirable and the ultra-shear technology has been showing some truly revolutionary capabilities.

Speaker 7: or dose delivery. So we're very excited about the initial progress being demonstrated about some preclinical study results that should be released, results we've also been generating in consumer testing.

Speaker 7: So I'm excited about that and I think the path continues to be bright.

Speaker 9: Thanks Jeff.

Speaker 6: The last part of this before we get to some questions, we wanted to go over some of the operational technical highlights. Jeff touched on a couple of them, but they're in today's press release and they're in the queue. And they've come out, most of them have come out as press releases during the quarter.

Speaker 6: And so the first one relates to the Ultra Shear Nano-CBD commercial rollout.

Speaker 6: When we did this in the around the 23rd, 24th of May, we had four distributors and they each had a number of retail outlets. Some of them were brick and mortar and some were selling it through e-commerce or both. And Blue struct is.

Speaker 6: We started out with a very deliberate and conservative, you know, expansion of our commercialization. And we had these four groups and it took about, I don't know, six or seven weeks. And we felt comfortable that we were covering all the bases.

Speaker 6: and that everything was working well and so we announced about four weeks ago that we were going to enter into a phase two. And a phase two is a much more rapid expansion. And then three weeks after that, which was last week, we announced that we had more than doubled our distribution network. We've gone from four to nine.

Speaker 6: and that we had received around $300,000 in orders that are to be shipped over the coming, over the rest of the year. Much of it will be shipped before, much before the end of the year. We're working on an additional, and we told everybody at the time, expect to see us add additional distributors. We're a business-to-business company.

Speaker 6: we don't sell the final product, we make the product and we either sell it in vials in which a customer will put its label on it, we label it and sell it as their branded product or we will sell them a bulk material. It could be a liter, it could be a thousand liters that they will then dispense into their own vials and label them.

Speaker 6: sell them. We don't want to compete against our own customers. So our goal is to have a hundred distributors by this time next year. We initially said 50 but with the rate we're going we've now increased that by saying around this time next year by next Labor Day we hope to have

Speaker 6: That's 100 distributors. Each distributor has one, two dozens or even multiple dozens of retail outlets that are going to be selling to selling the product out. So we're very excited about that because one distributor could mean a dozen, two dozen or even multiple dozens of retail outlets.

Speaker 6: five dozen retail outlets that will be selling it to hundreds, dozens, hundreds, maybe even thousands of customers. So we're going to get it out there. Our goal is to get to a number 420 end retail outlets.

Speaker 6: More about that later, we'll be putting something together to put out in a press release. Why 420? Why is that important? And what does that mean to us? That will be out soon, but that's the magic number to us is 420 endpoint retail outlets that will be selling it.

Speaker 6: And again, those retail outlets could be selling to dozens, hundreds of customers. We think we can get to that within a year. It gets to that number. And we think that the number of distributors themselves will be between 50 and 100 and we're shooting for 100.

Speaker 6: We now have nine. We're working on a handful more and once those are under contract we'll be looking for even more. So I think every week or two you could expect to hear from us about adding on to the distribution network.

Speaker 6: because that's how we're going to be selling the product. And it's not just one product by the time we get to let's say the end of September , October 1st, we hope to have the the oral spray product out as well as the topical. We've had tremendous responses on the topical. So that is accelerating.

Speaker 6: We also had a press release out very interesting. I've been following the story for a couple of years. I've been seeing things in the news about people using CBD.

Speaker 6: And it needs to be nano CBD, it needs to be able to be absorbed into produce, fruits, and vegetables to slow down the ripening. I've seen pictures of strawberries in 15 days and everybody on the call probably knows what strawberries look like. We buy them in the store or at the market.

Speaker 6: and five days later if they're not eaten they're pretty grungy. I've seen pictures of strawberries that were 15 days old that had been sprayed with different coatings and if it's a natural coating like a nano CBD, I've seen pictures of 15 days where it looked like it was bought that day.

Speaker 6: And so, I'm very excited about this because we believe that we have the best delivery method to make nano-CBD in the world right now. We have reasons, many reasons to believe that. And if it's a CBD product, nano-CBD product, they can...

Speaker 6: slow down the ripening and give you a much longer term, two or three times the shelf life for fruits and vegetables. That's something we're very excited about and we're looking into. Jeff, you mentioned

Speaker 6: You mentioned a key academic publication that is, we believe, coming out. We were told it was submitted a few weeks ago, and we believe that the data are going to be very compelling. This is an academic publication.

Speaker 6: that's based on an animal model that looks at how well our nano CBD that is processed using ultra shear, how well it's absorbed in the animal, how quickly it's absorbed and how quickly it gets to 100% absorbance.

Speaker 6: And we believe the data will be extremely compelling. We are waiting on the edge to see this come out. Because we believe that it is going to show our nanoCVD made by UltraShear in the best light possible.

Speaker 7: Jeff, you already talked about it. You want to add to something to that, please? Yeah, I will expand a little bit around that and perhaps explain a little more clearly some of our excitement about the topical applications for nanoemulsions. We've specifically...

Speaker 7: course been recently focused on CBD and THC applications with partners, although we certainly have been doing work in other areas, a couple that I mentioned astaxanthin and retinol that have both

Speaker 7: come back with some remarkable early results in the hands of external evaluators. But just talking about the CBD and I'll specifically talk about THC, in that I think so many people can...

Speaker 7: can relate to this.

Speaker 7: relate to this. You know THC

Speaker 7: for consumers, whether it's for recreational use or other purposes.

Speaker 7: THC has traditionally been consumed in one of two primary modes. You're either inhaling it, smoking it, or vaping it and the big drawback of that is the long-term health impact to the lungs.

Speaker 7: and more broadly beyond that, but the concern about health impact in the lungs is the number one limiting factor on the inhalation side. A lot of folks don't care for all the equipment and stuff that is necessary and various other aspects of the messiness and so on.

Speaker 7: of consumption via the gastrointestinal tract, eating various forms of THC products.

Speaker 7: And the fundamental problems associated with that are the slow response. And the issue is if you're ingesting it, it takes a while to get down into the stomach to get absorbed.

Speaker 7: But even after you absorb it, the thing that so many people, I think, just aren't aware of is the fact that everything going into your bloodstream from the gastrointestinal tract is rooted directly into the liver. It doesn't go directly from the GI tract into your circulating bloodstream.

Speaker 7: gets a chance at chopping up and reducing the various nutrients and other inputs that it's received from the GI tract as the very first step.

Speaker 7: Well, that is so efficient in the case of THC, to use that example, that the actual amount of circulating product, whether we're talking about THC or CBD.

Speaker 7: in the bloodstream. If you look up Wikipedia and look at results through CBD you'll see a 5%, 6% bioavailability number and that's just in Wikipedia. You'll certainly see that in all kinds of scientific publications in that area.

Speaker 7: What that's telling you is no matter how efficiently you've absorbed it through the gut, the liver has reduced it to metabolites so efficiently that you're only getting five or six percent of that CBD or THC circulating in the bloodstream.

Speaker 7: The alternative of a topical product that you can spray into the cheek or under the tongue, not accumulating it to be swallowed and go through the gastrointestinal tract, but actually penetrate straight through the skin, or in many cases just applying it to the skin, certainly in the pain management arena.

Speaker 7: being done a lot with CBD and THC products as well.

Speaker 7: By spraying directly into the cheek and under the tongue, you have the ability to get very fast absorption through the skin and very effective payload delivery.

Speaker 7: we can tell from the studies that were done in RAP that Rick mentioned

Speaker 7: that the actual absorption efficiency is extremely high. It's just the first pass metabolism in the liver that is reducing the effective amount of the bloodstream. So if we bypass that and go through the cheek, under the tongue, or potentially through the skin.

Speaker 7: the efficiency of delivering a dose, whether it's THC, CBD, or a wide variety of other products that may follow that, is enormously increased. And we saw in some 50 patients answering questionnaires, I shouldn't say patients, 50 consumers answering.

Speaker 7: questionnaires as we did testing on THC oral spray formulations.

Speaker 7: but they were seeing first effect in many cases in a minute or less, in most cases in three to five minutes, in a small number of cases closer to 10 minutes, but nonetheless, when you compare that to gastrointestinal tract, where people are waiting 45, 60 minutes to get first effects.

Speaker 7: It's a story that I think so many have heard, if not experienced, over the years.

Speaker 7: the opportunity to have very fast action in an oral spray and

Speaker 7: a very high effective dose delivery happening, then within typically 15 to 30 minutes, is a complete paradigm shift. And it's something we expect to affect many different markets. As it happens, the cannabis market is one that's better at effect.

Speaker 10: Thank you.

Speaker 9: Thanks, Jeff.

Speaker 6: So the, Jeff touched on it, one, the last technical highlight and operational highlight I wanted to mention was the, was the study. We had about sixty-five consumers in three different focus groups.

Speaker 6: take a THC product that had been processed using Ultra Shear. So it's not our product, it's a product that's been made using Ultra Shear. And these were done in California and where Jeff is and people have been using THC for a while.

Speaker 6: product, a spray product, and as one of my fraternity brothers told me at a reunion just in May of this June of this year, he said Rick I need to take a gummy every night to sleep and I only want to take three or four milligrams. I don't want to get high I just want to get relaxed.

Speaker 6: so you'd have a winner if you could.

Speaker 6: close that window between the immediate effects of THC when you smoke or vapid versus the effects when you take it as an edible, like a spray or a gummy of usually for him 45 minutes and for many people 30 minutes to 60 minutes.

Speaker 6: And so material was made using our ultra shear and studies were done and by an independent third party group. And what they found was astounding. What they found is that that

as Jeff alluded to, the vast majority between three and five minutes were feeling the effect, some in one minute, some in eight or nine minutes. Usually those are the people that had to take many, many milligrams. And so we're looking at a very fast acting.

THC because of just the reason Jeff laid out. It was getting into the bloodstream extremely quickly versus.

the normally a much, much longer and slower route, because it was a spray that they made that was being sprayed under the tongue or in the cheeks. And it was getting to their bloodstream almost almost instantaneously. And people were feeling it within three to five minutes. So we are talking to a number of people about that. It teaches a little more difficult because every state has its own rules. We'd have to bring machines in every state. We are talking to multi state operators and we're talking to individual companies. But CBD is a lot easier because we can do that here in Massachusetts.

ship it and and Jeff is busy working on developing the the capabilities to do to do some of this also in California as we had mentioned over a year ago about having a bi-coastal having both East and West Coast available to our customers so that's all I wanted to go through there

I do have a bunch of questions that I wanted to attack. Some of them we already have, Jeff, as you can see from the list that you had. But one of them that comes up, I'm not gonna say a lot, but it's come up a lot lately, which is the value of our intellectual property, particularly our patents.

We have 39 issued patents. Eight of them are already issued in the area of ultra shear and there's 17 more pending in ultra shear. There's 39 total and especially if it's not ultra shear, which we have some very strong patents.

We have strong patents in the other two areas, PCT and Barifold. But I'd say particularly in Barifold since that's a newer technology that we acquired back in 2017. So we have some very good patents. In a previous life, I've hired people to...

to look at patent estates and come back. It's not cheap, not even close to being cheap. I said in a press release just a couple of weeks ago, my personal opinion is that I believe that these patents are worth.

much more than our market cap and much more than our enterprise value. That's my own personal opinion based upon 50 years of being in the business that these patents are worth a lot. We're looking at the possibility of getting them looked at by

by a group that could appraise him and the appraisal would be held up by others who would believe in that appraisal. I believe that appraisal will come in at multiples of our current appraisal.

value. So we're working on it now more later, but we'd like to get that done sooner than later. If we can find someone of good reputation that can do it for a reasonable price.

You know Rick I might jump on some points you made there as well. I was going to circle back around to this later anyway but you know I'll say I'm a little self-conscious you know when we spend all the time that we have on just even on this call.

talking about cannabis because it's certainly not a cannabis-centric company in terms of our overall focus and strategy. Within the ultra-shear area we have vastly larger opportunities across

so many other market sectors outside of it. Cannabis has been a very convenient vector for demonstration for us and where people can relate to personal experiences and so on. I mean to give a sense of that, you know, without divulging the specifics, you know, we've...

as an example, have had the president of a $40 billion multinational company not only make the effort to have initial meetings with Rick.

at a conference, but then to come to Pressure Bio outside of Boston and spend hours to meet the team, get acquainted with the technology, and literally stopped a clinical trial that was getting started in order to get ultra-shear treatment.

example of the kind of impact and import that this technology can have. This was in a nutraceutical type of application, but we expect this to be game-changing, again, in cosmeceuticals, agrochem, and beyond. So I'm excited about that..

But, you know, even in the historical segments where again we have significant patent estate and traction already in PCT, I think the audience may recall our announcement of a major Chinese distributor earlier this year with a commitment for a 16...

PCT machines, several of which have been built and delivered already and more remaining for the rest of this year. We have a new distributor in India that is getting started and we're flying out to, I shouldn't say we, not Rick and I, but we have

the first install about to be accomplished by a member of our team in India coming up here very quickly. And we expect that to proceed into again a significant growth sector for the established PCT business.

in the barrel fold area, which is unfolding and refolding proteins, which is critical in the biopharmaceutical development and manufacturing processes.

We've had a number of programs going on with some key partners from contract development manufacturing organizations to biopharma companies with specific needs to be addressed internally. And again, we are responding to requests to quote.

in that area now and getting indications of desires to put powerful facilities into

literally more than a couple of dozen sites potentially. So you know these are the other dimensions of what it continues to develop with excitement in the business and I think it's helpful.

more than a couple of dozen sites potentially. So you know these are the other dimensions of what it continues to develop with excitement in the business and I think it's helpful for folks to feel a little bit of that flavor.

Jeff, you mentioned big companies and that's one of the questions we were asked to comment on or one of the points you asked to comment on. It basically, to summarize what I was sent, it said that, you know, over the years, multiple people have asked, why haven't we landed a big Collider.

contract, why aren't we working on big company contracts? And I can assure you we are. We've already talked about one already, 40, roughly a 40 billion dollar company. We have another one that's about seven billion dollar company. We've had other companies.

that were in between those two numbers that we've worked with and plan to work with again. But my answer has been unchanged all along. Having done this for 50 years,

almost without exception when you start working with a company that big as a small company, they put you through the ringer and they ask many things of you that maybe a bigger company has the money and wherewithal and staff to do, but a small company.

When I say a small company, even a company under 500 people, small business association, definition of a small company, under 500 people may not be able to do all of that. And quite frankly, it's often not even necessary. It's just icing on the cake. And so it gets very difficult.

to work with big companies. You can go out of business trying to get a land a big company. So our business plan all along has been let's go after the smaller more nimble companies that we can turn into customers very quickly but let's always have several bigger companies because when you land them everybody knows it and so we are working.

I was ecstatic when the CEO of this $40 billion company called, or his local guy in the US, called and said, could we come in and visit you? We'll only be there half an hour. We said, that's all right. You can be here as long as you want. And they stayed for two and a half hours.

So, we are working with big companies and we are making headway. And we're also working with a lot of smaller companies and we're certainly making headway because we've already announced five new distributors of our one product. And we've mentioned everybody be aware that that others will be mentioned and signed up pretty soon.

So, we are working with big and with small and and so they hope that answers the question. Whoever sent this in most of these are are were put together by several people out there. I are people that we use and and sent in a bunch of questions. Another one talks about we had a press release about Isaiah Thomas about Adrian Dinesse different press releases.

with Isaiah Thomas who's an NBA All-Star. They have a company called One World Products. I can tell you it is one really exciting company. If you don't know it, you should look it up. One World Products, they're on the OTCQB, I believe.

and Isaiah and Ken there have done a great job of fighting the battle. We all fight as small companies on the OTC market and they're making headway. I spoke with Ken within the last five days and we are still talking about how we can work together and we spent a good half hour, maybe 40 minutes on the phone, I believe it was Sunday.

Dr Adrian is is the number one seller of of anti aging skin care on Q. V. C. and the history of Q. V. C. Twenty years half a billion dollars and we've been talking a lot with with Dr. Denise and her team.

and we are working on what we said we're going to work on. We said we're going to work on a retinol-based product that she could come out that we've said she calls the next generation of anti-aging skincare. So we're still working. I know there hasn't been any news out there, but I can assure you that in the past, there was just no?"

48 hours, 72 hours, we've spoken with people in both organizations. We intend to continue to do that. We intend to work with them as partners eventually in products that are run on the market. I might add on the work with Dr. Dinesse that

As I think I mentioned earlier, retinol is the skin tightening ingredient that is used in many different anti-aging formulations. And that was the test vehicle that we ran through Ultra Shear for Dr. Dinesse and provided samples back. We really think that mid- matchup and the able-bodiedabs for surgery, these are all effective m Then we also tried our hospitality

And of course, they have a standard testing protocol for products like this. And it was, you know, I think shocking for her and delightful for us to hear the feedback that she had never in her career seen.

skin tightening results at the level that the ultra shear retinol produced.

Thanks, Jeff. So, two more things. One is we've mentioned recently in a couple of press releases. We've had a number of employees who are upset because we have so much going on that our lawyers continue to tell us that we're in a...

We're in a blackout period both at the board level and at the company level. And so we can't be in there buying stock. So we started about a month ago and pulling together everything we need to set up an employee stock purchase plan. So it's sort of like a 10b5 so that employees will be able to participate and be able to buy stock.

several employees came to me and said, I thought it was cheap when we were at 225 just six months ago. This is crazy Rick, could you hurry up and get this plan going? So we're doing everything we can to get this installed here. And so any employee that would like to participate in the stock purchase plan from their automatic deduction from their payroll.

And the last question I have here, we've covered most of these, this one has to do with dilution of shares. And it's a bit complex and complicated, but what I can say is that we have an anti-dilution clause and a deal that we did six years ago, five and a half years ago that,

that doesn't allow us to sell stock directly out of the company for under $2.50 a share. So otherwise, we have to allow...

millions of shares to be or notes that apply to millions of shares to convert at that lower price and that would be a heavy hand of dilution and so what we've done is we've done a lot of notes that will convert at 250 a share.

and that's how we've gotten by this way for a number of years. And, but it makes it very difficult when the stock is at $2. We, Jeff and I were pretty successful in bringing people in even though they were paying up a bit because they saw the value.

But when you're below a dollar, it's even below a dollar fifty, it makes it much more difficult if not almost impossible. So we continue to look at debt as an instrument that can bring money in, bring capital in to help us.

commercialized this amazing technology of ulcer-shear and and in doing so You know, we've added a lot of debt to the balance sheet But as Jeff mentioned earlier our largest investor agreed to in the first quarter

to convert 10 million into of debt into equity and in the second quarter once we got the preferred stock effectuated through the state of Commonwealth of Massachusetts the Person did do the conversion and you'll see it. You'll see 10 million less of debt

on the balance sheet. Jeff and I both believe that there are multiple other investors who have so much to gain by having this stock go in the opposite direction of where it's gone for the last six months. That we believe there will be other people that will be willing to convert their debt to equity. I will say that the equity that this number one investor converted into

the answer is as far as I can tell no because the person converted into preferred stock and they have not converted the preferred stock into into common stock so it'd be very difficult for them to sell plus Jeff and I know this person very well and this is a person that a Terrific shareholder somebody that deserves to make a very good return

their investment have been very strongly supportive of us over the years and And doing things like this converting the debt to equity. So we're indebted to this investor This is not the investor who would be selling this in an investor Who is doing everything he can to help us out in our opinion? So

That's it. I got a notice here from, we're supposed to have 45 minutes and we've had 52. So I know that we need to summarize and then and get on with things. So, Jeff, any, I'm going to do a summary, but any last.

Things that you'd like to do before I do my summary? I think we've hit most of the points. I'll just say that we remain excited and confident about the path forward here with UltraShear, the positive activities going on in our traditional product areas and peop-

plus of our focus and attention is on Ultra Shear. We're delighted at the trend line in new partnerships, new distributors that are off and running with our activities in the cannabis area, not to mention larger strategic programs outside of cannabis.

So I think we're quite excited and optimistic about navigating the rest of the path as we try to move into an uplist to NASDAQ or NYSE at the earliest opportunity.

Thanks, Jeff. And for me, I can...

And can we change the world? And the answer is we did it. And yes, we can change the world. There's no doubt. I know that in my life, my first company, Boston Biomedical has saved millions of lives. And the 300 people that joined me after I started it, I commend them because the products that we came out with made blood bank testing and hospital testing for infectious disease far superior to what it was at that time. And many people, thousands, tens of thousands of people, maybe hundreds of thousands of people, did not get transfusions of blood-to-blood products because our products have not gone long and passed as simple. Not just in family homes I'm working in! There's already Elk Cove.

said no way this there's something wrong here do not transfuse that blood go back and retest and I feel like this technology we have is just as strong I actually feel it's stronger we had this is a platform this is a platform technology that we own the patents for we've proven it when the peer-reviewed journal article comes out which we think will happen in a matter of days or weeks

We hope so, that it will help prove it and the data we've already presented has helped prove that UltraShear works. We have eight issued patents, we have 17 more coming. We can take any oil-based active ingredient and we can make it more absorbable. We haven't found one yet.

that hasn't become more bioavailable, more stable, more essentially water soluble. And all we're doing is touching the proverbial tip of the iceberg. We're looking at a technology that has a reach that goes into everything from nutraceuticals. Think about the hundreds.

of nutraceuticals that are out there, that people spend billions of dollars a year, and yet, as Jeff pointed out, all of these things are probably in the 5, 10, 15, 20% level of bioavailability. They're not getting into the circulating blood the way they should.

And we just know that this company is worth multiples, in our opinion, it's worth multiples of what the value is, whether it's the enterprise value or the market gap. We believe we're worth multiples. And our goal is to show people. We need to show them that this is the real McCoy. This is it. And that's what we're going to do. So appreciate everybody's help. Appreciate everybody sticking with us. Appreciate you taking time today. And we think we're going to have one heck of a second half of this year. We've already said our goal is to do a million dollars on one of the quarters. And we had a record quarter the first quarter at 700 plus thousand. So we've got to waste.

leading towards profitability and leading towards a bang up company. And so that's what we're about to show. We flee the one hour you gave us.