MDB Capital Holdings, LLC Class A common Q2 FY2025 earnings call

• Financial Perspective: Revenue from financings was $0 this quarter; Pat and Vest is scaling, and goal is to offset operations with financings and equity. Cash utilization in first six months of 2025 was $3.4 million, with expectation to close financings in Feb 2025 to reduce cash usage.
• Public Venture Platform: Confident in the platform for curating market-leading companies with 10-100 bagger potential. Recently filed prospectus for a beverage company (Buddha Juice) in the ultra-fresh category, which has rapid growth and is expected to do well.
• Life Sciences Focus: Shifted focus to metabolic health as a major opportunity. Highlighted companies: Pollux Bio (potential to regenerate beta cells), NCTX (unbelievable potential in mobilizing pathogenic organ fat), and GT Metabolic (incisionless procedure for duodenal bypass with impressive patient data).
• Community Expansion: Partnered with Karetsu to form IPO Angels to build a syndicate of angel groups. Expanding investor community to include RIAs and family offices, with positive reception from these groups.
• Patent Vest: Scaling operations with increasing revenue. Plan to spin out as an independent public company in 2026, leveraging AI in IP law, and the practice of IP law is set to change with AI impact.

Revenue is largely from financings, but no financings were completed this quarter. Revenue from Pat and Vest is starting to scale. For the first six months of 2025, cash utilization was $3.4 million. Revenue contribution details: financings contributed $0 this quarter, while Pat and Vest is beginning to contribute to revenue but no specific percentage breakdown provided as it's in the scaling phase.

• Expect to close financings in February 2025 to reduce cash usage.
• Plan to spin out Patent Vest as an independent public company in 2026.
• Anticipate presenting metabolic health companies and other opportunities at the September 4 event.
• Aim to scale the investor community to support more companies going public.

• Investor hesitation towards deep tech life science investments.
• Low trading volume in some portfolio companies affecting distribution and valuation.
• Uncertainty in the timing and method of spinning out Patent Vest.

Q: Are there vulture opportunities in core life science market?

A: You know, vulture is a, as they say, ugly word, maybe not ugly, but it's I think listen. What happens in tough markets the opportunities get better. Right? When there's hot money around like there was when interest rates went to zero, there was too much money around, you know, so you didn't really have great opportunities. And that's why, you know, after COVID and all the stocks ran up, we kind of took our foot off the gas pedal in life science we I get, you know, we got back too we got back in too early. We thought it had dropped enough. And, you know, I think we were a bit early. You know, some of the companies we backed, you know, are again, it was just it was the companies are doing phenomenal. From a technical perspective, but it's not reflected in the market price. So being too early is the same as being wrong. You know, we love the technology that they're doing a great job, but if the stock goes down, you're wrong. Right? Well, now you know, what we're seeing is valuations are super reasonable. So, yes, you know, if you want to look at it from a vulture perspective, I think there's some great opportunities. If you look at what we're doing with Pollak, we're, you know, we're basically doing this funding at a $20 million pre-money valuation. That's super cheap. If we get a readout, you know, we if that you take that pill and you produce a bit more insulin, you know, you're talking about elephant country. That could be a multibillion-dollar valuation. Again, there's no promises here but you at least have that asymmetric upside. That asymmetric upside did not exist, you know, three or four years ago. And before. And so asymmetric upside is really available today where it wasn't available back then. Same thing with NCT and what we're gonna be doing with GT Metabolic. These are these valuations based on where they're at are super reasonable. And so, yes, I mean, in a sense, there are. I don't think that, you know, the most important thing that you have to look at investing in life sciences, you know, is it gonna work? That's the most important thing. If it works, then it covers up a lot of things. But before, there were some things even if they worked, you wouldn't make money. And so that's changing. And so, yeah, I think there's a huge opportunity and we have our finger on the pulse and I think we're gonna continue to curate some of the best ones possible in that sector.

Q: Plan for IRPR and low volume in portfolio companies?

A: Yeah. Well, listen, I think the first thing you have to do right as any public company is you have to have your narrative correct. Right? In other words, you have to recognize the environment that's changed. It's a different environment than what it was before. And so a lot of times, these companies have to come up with different strategies to basically say, hey. Listen. Gonna get through to the other side. We're gonna get through to either commercialization or we're gonna through to a major inflection point technically. And these companies are doing that, and I think you're gonna see them, you know, position themselves for success. In some cases, they may be cutting their budget down to deal with this current market environment. In some cases, they're gonna look to partner maybe a bit earlier than they normally would. They're gonna adjust their business models and their narrative to reflect the environment. That's job number one. Number two, is they've gotta focus on things that are near term. Right? They've gotta focus on inflection points that are super near term. Make it super clear to investors. And I think strategically, of our companies are doing that, and they're I think they're doing a super good job. And I think over the next, you know, ninety, hundred and twenty days, you're gonna see evidence of that. As far as getting it on the radar screen, that is, you know, as you reposition it, you open it to a different, you know, audience of investors as well. And so I think it's starting to happen. I mean, I think you can see, you know, volume really is a function of money coming into the asset class. Low volume a lot of times is a good is a good sign. It means that you might you're near the bottom. Right? And then, you know, they say price begets volume. And so I think that as, you know, we've seen a couple of these small biotechs that have good news. Go up dramatically. You know, one that we were tracking and we almost did a financing for, went up, like, 11 times in the last, you know, last month. Because they on good news. So I think that some of these things are primed and then the volume goes parabolic. So some of these things are trading no volume, trading at very low prices, and then all of a sudden something happens. And next thing you know, you've got a ton of volume. So that's the way I see it. I think that's what's gonna end up happening. IR is in my mind, has been overrated. It's have a good narrative. Get in front of the people that you should that care about it. I would tell you over the last two or three years, the problem major problem has been people don't care about it. And that's in venture at venture and, you know, public venture in the life science sector.

Q: Other companies like Buddha Juice in pipeline?

A: Yes. So you know what's kind of fun is, you know, I've been feeling down been feeling pretty, you know, as our socks are down, I'm, like, not feeling so smart. But we've had, you know, we've had a lot of calls from people. And, you know, the way Buddha came in, it was a relationship and someone just asking me for advice, and that's how it turned into an IPO. Had one of our community members call me recently and he's got a really exciting company. I can't tell you the sector or what they do, but I'm super excited about it. It's got, you know, significant revenue momentum. And really exciting space. And, you know, he said to me, you know, Chris, listen. I, you know, I think taking this company public makes all the sense in the world. And there's nobody else I would take it to except MBB to take it public. And that made me feel really good that, you know, twenty-eight years of working, doing what we're doing, that people recognize that, you know, our reputation and the value we can bring. But also GT Metabolic that's gonna be at the conference. What an unbelievable story and opportunity and, you know, someone like me that's battled metabolic disease my whole life, like roughly fifty percent of the country now is it's a wicked, wicked, wicked. It is a disease. Yeah. You know, eat too much. Right? And you're overweight, but it's way more complicated than that. And GT Metabolic again, Thierry Tore who's the CEO of GT Metabolic, he we he had been on the board of Pulse Biosciences that we took public. And he said, Chris, he goes, public venture. He goes, man. He goes, you know, he's talking to VCs. He's talking to other people and what have you, strategics. And he said, you know, I think going public is the best thing for us. You know? And, again, a relationship and an experience with our form of public venture is why he came to us. And so it makes me feel real good that our reputation and our experience and, you know, and rep and relationships that we're seeing a lot of really cool things. So stay tuned, whether it's GT or others. I think we're gonna end up having a deep pipeline. But more importantly, I think I'm super excited because I believe, you know, I've been hearing for the last twenty years. Why would I go public? Why would I go public? Why would I go public? It's for the first time in a long time that I've, you know, these companies are walking in going, jeez, you know, everybody's saying we should go public. And so it's really it's all changed. Right? And it's really what I see is kind of the death of traditional venture, at least in the small company space. You're still seeing billion-dollar deals happen in the big, you know, the big funds doing huge AI deals and things like that. But for these smaller opportunities, where they don't need a 100 or $200 million, those companies are struggling. You know, the VCs are coming to us. Ironically, the VCs are coming to us also bringing us deals. So the whole game has changed. From my perspective. And I think that, you know, we went from 8,000 public companies at the end of the Internet boom to 4,000 public companies today. It's been the worst thing you could ever imagine for going public. But I think that I'm a big believer that's that shift is occurring. I sense it. I'm not, you know, I'm only right half the time. So hopefully this half I'm right. And so I think that going public is gonna be the thing to do, and so we're crazily we're so well positioned, for that wave that I think is gonna come.