- 3 months ago
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00:00Tonight, Michael Strahan from Good Morning America and the NFL returns to the tank.
00:06You know what makes people have a better time? Making money.
00:08Sharks, say hello to Peace Fork.
00:12Who's ready to swing a deal with flight time?
00:15Are you making any money?
00:16We sold 3.4 million dollars.
00:18Wow, this is a...
00:18You are a hustler. You gotta run fast.
00:21Help us make better decisions. Help us grow this.
00:24That's what I offered you.
00:25You know, the worst part of the story is you told it as a victim.
00:28I've totally screwed it up. That was horrific.
00:31Now I'm kind of mad.
00:32How do you feel about that?
00:33I don't love it.
00:40First in the tank is a convenient way to answer nature's call while on the go.
00:54What's up, sharks?
00:55My name's Henry, and it's a beautiful day for a road trip.
00:59The top's down.
01:01The sun's out.
01:02The road's wide open in front of me.
01:04And there's nothing for miles.
01:07Then, out of nowhere, nature calls.
01:10And I really gotta go pee.
01:12There's not a rest stop around.
01:14There's not a tree to hide behind.
01:16Nothing for miles.
01:17Well, sharks, going on the go just got easier.
01:25Say hello to Peasport, the world's first performance pee bottle that lets you go anywhere.
01:33Peasport has a discreet, ergonomic, and eco-friendly design.
01:38It's leak-proof, stink-proof, odor-free, and judgment-free.
01:43And it doesn't discriminate for men, for women.
01:46Whatever you're working with down there, Peasport's universal design is super easy to use.
01:51All you gotta do is open up the lid, expand it like this, then let it go, and let it flow.
01:59It's perfect for truckers, festival goers, nurses, pilots, anyone that pees.
02:07Sharks, I'm asking for $150,000 for 10% for you to not worry and pee happy.
02:16I'm relieved that's over.
02:19Oh, boy.
02:21You each have your own Peasports in front of you to check out for yourselves.
02:26And know that our Peasports are super durable and made to last.
02:29So this is one size fits all?
02:31It's one size fits all, yeah.
02:33Well, listen, it's well made.
02:36Let's just speak to that, regardless of the size.
02:39And the expandability is good.
02:41It does almost look like a toilet seat cover.
02:43I'm sure you did that, though, for women.
02:45Yeah, it's unisex, yeah.
02:47So that it can come up to your body.
02:49The use case you showed us, you're in the desert, you pull the jeep over, you step outside, nobody's around, you get it over with.
02:56Why would you need this?
02:58This is true, but there's so many use cases you can use it for, like pilots of small planes, truckers, Amazon drivers.
03:04And let me show you guys, let me show you something.
03:07There's more?
03:08You see this?
03:09Yeah.
03:09This is our competition.
03:10Mr. Waterford, do you want to be seen with this and with your pee in here in your car somewhere?
03:16Kevin carries one of those around all the time.
03:18I didn't know what it was.
03:19How much is the plastic pee jug cost versus this?
03:22These go around 20 bucks in the pharmacy.
03:24What's this?
03:24And we sell that for $39.99.
03:26So it's a premium pee jug.
03:28What does it cost you to make?
03:29It costs us $3 to make.
03:31$3?
03:31We sell it for $40.
03:32How do you sell it?
03:34Only on our website so far.
03:35Are you making money?
03:36We are making money, yeah.
03:37So last year, our sales were $500,000.
03:40What?
03:41Wow.
03:41You sold $500,000 a single year of a pee pee bottle?
03:44Yes.
03:45We're building a premium product.
03:47Henry, what is your background?
03:48How did you even come up with this?
03:49I was just an entrepreneur since I was young.
03:51I was selling things on eBay when I was like nine, packing things, having garage sales.
03:56I had my first online business when I was 11.
03:59And I was making like $50,000 a year, you know, pretty good for a teenager.
04:03Teenager, yeah, yeah, yeah.
04:04I wish you were my kid.
04:05Happy, that's for sure.
04:06And then I traveled a lot, you know, I ran different online businesses.
04:11I just thought like, what would be fun, what would be exciting and useful?
04:16And I tested all these different ideas and this one just started selling.
04:19A pee bottle?
04:20It just started selling like crazy.
04:22So last year you did $500,000.
04:24Yeah.
04:25Did you make a profit on that?
04:26Yeah, we made about $130,000 in profit.
04:29You haven't given us the CAC model.
04:31And our CAC is $17.
04:33And our average order value is $60.
04:36But I've been learning how to do manufacturing.
04:39And now is the time where we really, we got it fixed.
04:42So we're going to order 100K units.
04:44We're really going to start go crazy.
04:45That's what you want the $150,000 for?
04:48That's, yeah.
04:48We want to expand to distribution.
04:51Because we've only been selling on a website.
04:52Yeah, I think you're great.
04:54You did a good job.
04:55But as far as a business for me, I just don't think it's the right fit.
04:59So I'm sorry, I'm out.
05:00You don't think the luxury market is the higher-end pee bottle market?
05:04I'm a premium guy.
05:06And I believe in high-end.
05:07And even when it comes to pee-pitoriums like this, I want the premium version.
05:12I like pee-pee.
05:13So let me make you an offer here, okay?
05:15I mean, that's the only way I'm going to do this.
05:17I'm not negotiating on urine at all.
05:19Okay.
05:20I'll give you the $150,000 for 15%.
05:22I want, of course, a royalty on this deal.
05:25Two bucks a pee-pitorium, or this thing.
05:29Two bucks per piece of it?
05:30Two bucks per unit until I get back my $150,000.
05:33I'm sorry, Kevin, I can't tell you right away.
05:35We can't do two bucks for royalty.
05:36That's the quickest no I ever heard on this deal.
05:37Let me finish the offer.
05:39So $150,000, 15%, two bucks a unit until I get the $150,000 back.
05:44Then it drops all the way down to $0.50 in perpetuity.
05:47What a deal.
05:50Let me tell you where I'm at.
05:51When I go for dinner and people say to me,
05:53Robert, what are you into?
05:55Do I want to say, I'm into pee?
05:58Yes.
05:59It's funny.
06:00Is that something?
06:01I just don't see it as a category that's good for me.
06:05I'm out.
06:06Okay, thank you.
06:07Barbara, you like pee.
06:09I'm uncomfortable with it for the same reason.
06:11And also, I'm the type of girl that could pee anywhere.
06:14I really am.
06:15I have to go, I have to go, and I do it right away.
06:18I find a spot.
06:19I'm the only one I know that could spend 12 hours on a beach and never use a bathroom or
06:23go in the water because I know how to part the sand just right.
06:27Oh, okay, okay.
06:28So I don't really have a need for the product.
06:30But I have to tell you, you're a terrific entrepreneur.
06:33You did it exactly how you're supposed to do it.
06:35So I'm out.
06:36But I wish you the best of luck because you've done a great job.
06:38Michael, think about this.
06:39You could be the pee-pee king of the world.
06:41The one thing I like about what Henry's done is something we all do.
06:45I mean, it's no secret.
06:46And if you don't, you're probably...
06:46Yeah, we're trying to destigmatize peeing.
06:48I did a lot of money with the spotty patty.
06:49If you don't, you're dead.
06:51I'm never going to the beach with Barbara.
06:53Ever.
06:54Ever.
06:55I'm a big car guy, and I take a lot of drives, a lot of road trips.
07:00It's very hard.
07:01All of a sudden, you have to use the bathroom to find a rest stop.
07:03Pull over.
07:04Oh, could you imagine pull over the side of somebody driving?
07:06Oh, I'm like a straight hand.
07:07I'm just sitting.
07:08It doesn't work that way.
07:10We have tens of thousands of customers that keep it in their cars.
07:13A lot of our customers are 60-plus, and they've got to pee every hour.
07:17That's our number one customer right now, actually.
07:19I believe it.
07:19We have many customers, but this is the number one.
07:22Hmm.
07:22What am I going to do?
07:23Three sharks are out.
07:37Henry has an offer on the table from Kevin for his pee bottle, P-Sport, and Michael is on the fence.
07:43Hmm.
07:43What am I going to do?
07:45It's not a boring brand.
07:46It's useful, fun, exciting.
07:48The team has a good time.
07:50Everyone's laughing.
07:51Everyone's having a great time.
07:52You know what makes people have a better time?
07:54Making money.
07:56I'm looking at Kevin's offer.
07:58Makes a lot of sense, doesn't it?
08:00Kevin, too much royalty.
08:01I'm sorry.
08:01But see, I may be a little...
08:03I'm going to change it up a little bit.
08:04I'll give you 150.
08:0717.5% of the company, though.
08:09Okay.
08:10A dollar per unit until I'm paid back.
08:13Okay.
08:15And after that, nothing in perpetuity.
08:17That sounds fair.
08:18That sounds good.
08:20Why 17.5%?
08:21Because it's better than his offer?
08:25Would you do $150,000 for 11%?
08:27No.
08:2817% is way too high.
08:29We can't do that.
08:30I have 75%.
08:31My business partner has 25%.
08:33We're a brand new company.
08:34We're going to grow fast.
08:35You have two offers here for a pee-pee bottle.
08:39So you would not be willing to do 11%?
08:41No, absolutely not.
08:42Kevin, what about you?
08:43I have zero flexibility.
08:45I can't go beyond 12%.
08:47That is the maximum.
08:48So you're telling me you'd take my terms if I drop from 15% to 12%?
08:52Would you take his royalty?
08:53With the $2 royalty?
08:54Yes.
08:54I wouldn't know.
08:55I can't do the royalty.
08:56Well, you don't like anything, any of the deals.
08:58$150,000 for 12%.
09:00And no royalty.
09:01And no royalty.
09:02No, it's got to have a royalty because that's how an investor like me offsets their risk.
09:08We can do a royalty until the $150,000 is paid off.
09:12How unexciting is that?
09:15I could be flexible on the amount of equity, but no, not on the royalty.
09:20This is a classic shark tank, peepatorium royalty deal.
09:24When you say royalty until he's paid back, that's what I offered you.
09:28But the equity was too high.
09:29You offered 17.5%.
09:30Yeah, because I'm taking a risk.
09:32Would you be willing to do 12%?
09:35No.
09:37Now I'm kind of mad.
09:40I can't do more than 12%.
09:42I can't do more than 12%.
09:43I said I do the deal with my royalty structure as I detailed it at 12%.
09:48But I'm not going to give up on the royalty because that is mitigating my risk.
09:52Henry, I've got to sell 75,000 peepatoriums before I even get the money back.
09:57Okay.
09:57How about a $2 royalty until $150,000?
10:00And 12% equity.
10:03No.
10:03No, I've got to get the 50 cents.
10:05This is a big opportunity.
10:07Think about it.
10:07It is.
10:08You're only going to be on that carpet once.
10:10This is your big moment.
10:11And you're going to let 50 cents get in the way.
10:1450 cents, lifetime.
10:15Yeah, yeah.
10:16But you know, look, Henry, think about this.
10:18You're going to walk out that door.
10:19My life is not going to change.
10:21But if you do this deal, your life is going to change to the upside because you've got
10:26to deal with Mr. Wonderful.
10:27That's what you've got to focus on.
10:28Think hard about that.
10:31Henry, what are you going to do?
10:32Are you flexible on the 50 cents, lifetime?
10:39Okay, 35, but that's it.
10:41Would you go down to 20?
10:43No.
10:43Good for you.
10:44Wow.
10:45If it's a billion-dollar company, we have, you know, pee testing, urine testing.
10:49But it's better for you to have a piece of something that big than nothing.
10:55It's true.
10:55It's true.
10:56Yeah.
10:56What are you going to do?
10:58You know what I'm going to do for you, Henry, right now?
11:00It's the last.
11:01You've got to say yes or no.
11:02It's $150,000 for 12% equity.
11:04Then $2 a peepitorium until I get my $150,000 back.
11:09Then it drops to 30 cents in perpetuity.
11:12Okay.
11:16Um...
11:16Okay, Kevin, let's do it.
11:19Wow, yes!
11:22He's so excited to be in business with you.
11:24I think it could be really good.
11:26Welcome.
11:26I'm excited.
11:27Congratulations, Kevin.
11:27Henry, you almost had me, man.
11:29You are a hustler.
11:30It was close.
11:31You know, I think this is going to do well.
11:33Thank you, Henry.
11:34Bye, Henry.
11:36Now that I have Kevin on my team, what's next for P-Sport is to get into retail, get more
11:41stock, get 100,000 P-Sports in stock, and just grow from here.
11:44In season 16, we watched Tammy and Michael DeLue and Judah Hauser make a deal with Damon
11:52John for their nasal diffuser company, Essence.
11:55Place the Essence nasal diffuser over the septum of your nose and inhale deeply.
11:59It's like having a personal air freshener.
12:00Let's see what they're up to now.
12:02When we entered the tank, we were averaging about 500,000 a year.
12:06Within the first week of being on Shark Tank, we did over 500,000 in sales.
12:11It was not easy.
12:11There were 24-hour days.
12:12I mean, we really did have to pull in neighbors to fulfill these orders.
12:16It was a literal community outreach.
12:18It's now been five months since we closed our deal with Damon, and we have done over
12:22$1.2 million in sales.
12:25All the essentials you need when flying.
12:27I love it.
12:28Damon is an incredible brand advocate.
12:30He wears it.
12:30It's part of his life.
12:31And it's really interesting to see how doors open with just his name associated with your
12:36brand.
12:36People realize you are legit because you work with Damon John.
12:39He's introduced us to airport kiosks, which is a very cool thing because this is where
12:43the idea was born.
12:44It was on an airplane.
12:45That's what a huge door that he's opened for us.
12:47I think launching a tabletop diffuser is a great extension for the brand.
12:50I invested in Essence because of the entrepreneurs, but I also have been wearing essential oil for
12:55years.
12:56So now the ability to keep it on you in a space where you get that scent for hours, I love
13:01the concept.
13:02One of the biggest things that's happened since Shark Tank is we've been able to move
13:05from our rental 1,800 square foot building to purchasing a 5,000 plus square foot building
13:10to help us expand into the global markets that we're going into.
13:14We're living examples of if you just stick with it and you keep leaning on the people
13:18around you, this is where you end up.
13:20Thank you again for all of you guys.
13:21We've been able to double our workforce and bring other members of the community into
13:27the Essence team.
13:30What's next for Essence Room?
13:32Well, retail expansion, collaborations, expanding into international territories like Korea,
13:37Taiwan, servicing airlines.
13:39There's no end to where this business is going.
13:42It is exploding.
13:43We are more energized than ever to keep this momentum going.
13:45And if this past year is any indicator, the future smells like more success.
13:51Close to your butt.
14:02Hey, I've got to say, it stings a little bit when they don't pick you.
14:06Yeah.
14:06Yeah, it does.
14:07Well, sharks are humans.
14:08Are they?
14:09I thought they were fish.
14:10Sharks are humans.
14:11They have feelings.
14:16Next up is an innovation to an overlooked piece of golf equipment.
14:20Hello, sharks.
14:29I'm Caroline.
14:30And my name is Michael.
14:31We're from Orlando, Florida, and we're seeking $300,000 in exchange for 10% of our company,
14:38Flight Pass.
14:40Sharks, golfers are relentless in their pursuit of improving their game.
14:43They spend tons of money on custom clubs, special shoes, even coaching.
14:49Yet most golfers still overlook one key piece of equipment, the golf tee.
14:55And most golfers are still using wooden tees that haven't been involved in over 100 years.
15:02What if there was a tee that was super durable and actually helped you improve your game?
15:11Sharks, we're excited to introduce Flight Pass Performance Golf Tees, the most innovative golf tees in the world.
15:18Our tees are the first tees that are robotically tested, proven to increase distance and accuracy.
15:24And the best part is they're approved for play and made in the USA, baby.
15:30Sharks, it starts with our innovative directional diamond design.
15:34It strategically reduces backspin and sidespin, which are the enemies of a perfect drive.
15:40Our tees are the only tees that offer a smart arrow where you can aim in the direction you're hitting the ball.
15:47These things are incredibly tough.
15:48You can use the same golf tee for over 100 drives.
15:52Sharks, with your investment, we can increase production, enhance our marketing, and drive forward into new markets.
15:59So, Sharks, who's ready to swing a deal with Flight Pass?
16:03Good job.
16:04Good job.
16:04Good job.
16:05Well done.
16:06You did it.
16:06So, I have to ask.
16:08I'm a golfer.
16:09Better distance, better accuracy.
16:11Yes.
16:11I know that you said it does that, but how do you prove it does that?
16:15Our golf tees have been robotically tested, and under controlled conditions, it should help about three, three and a half yards.
16:22It's going to help reduce the spin on the ball to help your ball fly straighter through the air.
16:26You can aim the direction of the arrow.
16:28So, the last thing you think about before teeing off is the fairway, and it's not the trees on the left or the water on the right.
16:33But, you know, the tees are free in most clubs.
16:36The value point that we drive with the tee is, hey, it is going to be, like, the last tee you ever buy.
16:41What do you sell it for?
16:42So, we sell a box of eight.
16:44You can buy it for $25.
16:46$25?
16:48Oh, jeez.
16:48Oh, jeez.
16:49Yes.
16:49But how much have you sold?
16:51So, we have $11.8 million in lifetime sales.
16:54You've got to be kidding.
16:56Wow.
16:56Four years in business.
16:57This is our fifth year.
16:59What did you sell last year?
17:01$4.3 million.
17:02And how much profit did you have?
17:04So, we did approximately $46,000 in profit.
17:09Why?
17:09That's all?
17:10We're going to go get into that.
17:11How about we go back to the beginning and then walk you guys through it?
17:14In 2020, we launched the brand.
17:16That year, we did $650,000 in sales.
17:19We lost $60,000 that year.
17:21Customer acquisition cost.
17:23It was crazy.
17:24That's the problem.
17:24Year one.
17:25Just from ad spend.
17:26Yeah.
17:26So, year two, we do $60,000 in sales with $30,000 in profit.
17:30Year three, we do $300,000 in sales with $60,000 in profit.
17:35What did you spend on ads?
17:37It's probably, like, $2 million in total.
17:40The total was $2 million.
17:42Wow.
17:43So, now we can explain why last year we really got kicked in the teeth.
17:47Okay.
17:48There's two things that contributed.
17:50The first one was we switched our 3PL because we had a terrible relationship with them.
17:56So, we negotiated a cheaper pick-and-pack rate with the new 3PL, moved everything over there.
18:02And?
18:02And they charged us a much higher postage rate than we were paying before.
18:07We were paying $2 extra per unit.
18:09But why did your revenue go way down?
18:11That's problem number one.
18:13So, the second thing was we sold 40,000 units to a company, and they turned around and sold it directly to Amazon as a one-piece seller.
18:23And after a few months, they probably sold 38,000 units.
18:27Give me a second.
18:29You just gave me a litany of ways on how you screwed up.
18:32Your story is we screwed up this way, then we screwed up this way, and then we screwed up this way, and by the way, we screwed up this way.
18:39Here's how we're back, though.
18:40I mean, you know, right now you're back in the bottom of the toilet.
18:44You know, the worst part of the story is you told it as a victim.
18:47I've invested in a lot of businesses, and I separate the men from the boys and the women from the girls on a little test I do.
18:54Usually about eight months to a year, somebody screws up.
18:57The attorney did this, the production was wrong.
19:00The minute they sit there and they're talking about, they did this to us, they did that, instead of we screwed up.
19:06They don't take ownership, but that's what I heard in your tone.
19:09So for that reason, I'm out.
19:11Understood.
19:12You've got amazing sales, but the story for me had a lot of loose dots.
19:17I couldn't quite connect them.
19:19Wish you the best.
19:20It's not for me.
19:20I'm out.
19:22How did you even come up with this?
19:24So we actually own a digital marketing company, and we started investing into different direct consumer products.
19:30And Caroline met the inventor of the product.
19:33So it's not your innovation.
19:35It's this other guy.
19:36No.
19:36So he's a partner in the business.
19:38But what is the equity breakdown between you two, and is the inventor still a partner?
19:42We own 90% of the business.
19:44What did you pay to get 90% of the business?
19:47We have a seller financing deal for $800,000.
19:51Have you paid him back yet?
19:52We've currently paid $55,000.
19:55Of the 800?
19:55Of the 800, yes.
19:56Oh, you've got a lot of work ahead of you.
19:58It's a long way to go.
20:00Look, your story is a lack of executional excellence.
20:04You know, you had your opportunity.
20:05You totally screwed it up.
20:07That was horrific.
20:08The back end of your presentation was F minus.
20:11Can I address this year and how we've resolved these problems?
20:14No, I'm out.
20:18I will say, you've had a hard road.
20:21You have a lot of money that you owe.
20:24And I don't want to take on the problems of your journey.
20:28So I'm sorry, and I wish you good luck, but I'm out.
20:32So guys, I'm looking, and there's just so many ups and downs along the way.
20:39I think that you two found something you thought was interesting.
20:42You took out the $800,000.
20:43And we fought.
20:44We're swinging.
20:45We're going.
20:45We're not giving up.
20:46You're taking a chance.
20:47That's the entrepreneurship.
20:48You take a swing at it.
20:50But I just think there have been so many mistakes along the way and so much catching up to do.
20:55Michael, can I pause you for a second?
20:57Go ahead.
20:57I ask you, I understand there have been some ups and downs, but the first year is the only year that we haven't made profit.
21:04There's been profit every year, right?
21:06In any business, there's going to have ups and downs, right?
21:08Hard work will put you where good luck will find you.
21:13We've been punched.
21:14I'm sure every shark invests into businesses, and then they get punched afterward.
21:18We've already had the punches, guys.
21:20So what would need to be true for you to be able to invest today and feel comfortable?
21:25You know what my thing is?
21:26The past mistakes, as I did in football, I have to retire from this deal.
21:32I'm out.
21:33I have one more idea that has no risk if you'd be interested.
21:39What is that?
21:40What's your idea?
21:41I am proposing a $300,000 royalty, and we would pay you 50 cents per unit.
21:48Until you make double your money.
21:50Yes.
21:51And we'll do a 5% equity kicker.
21:53Wow.
21:53Even though we've had a crazy year last year, this year is going to be completely different.
21:58We're projected to do $5 million this year, so help us make better decisions.
22:02Help us grow this.
22:03But you already owe $800,000 to your existing partner.
22:06Right.
22:07Now you're, in fact, adding just more debt to the business.
22:09Our business is cash-flowing.
22:11Our business is profitable.
22:12We feel confident.
22:13We've met with our finance team.
22:15We've looked at the numbers.
22:16Michael, have they swayed you?
22:20No.
22:21No.
22:22You are convincing.
22:24You really are.
22:25But I just can't make sense of the numbers.
22:27Michael, you're a mean guy.
22:30Thank you, guys.
22:31I'm kind of like the big negotiator of our business.
22:37I was ready to make a deal happen come hell or high water, so I'm just doing the replays
22:42so I can play better tomorrow.
22:43Next up is a product the founder believes can stop an embarrassing problem for millions of Americans.
23:08Hi.
23:09I'm Josh Lippiner, and I'm the managing director of Nampons.
23:13And I'm here today seeking $350,000 for 5% equity in my company.
23:17Wow.
23:19Sharks, did you know that every year, 60 million people in the U.S. alone get a nosebleed?
23:24That's one out of every five people who wake up in the morning and at some point today will get an annoying, messy,
23:32and often very embarrassing nosebleed, and they're just simply not prepared for it.
23:37So how are we taught to deal with that?
23:40Well, by shoving tissues up our nose?
23:43Yes.
23:44Yeah.
23:44Or my personal favorite, a tampon.
23:48Oh, my gosh.
23:49That's a lot.
23:49I've never seen that.
23:51I've never gone that far.
23:52This isn't embarrassing at all.
23:53That's why I created Nampons, the leading product for treating nosebleeds quickly and with less mess and less embarrassment.
24:03Nampons are super small and convenient, so you can bring them with you anywhere.
24:07When you get a nosebleed, simply open up the Nampon and stick it in your nose.
24:13That's it.
24:14The Nampon will immediately expand, absorbing 10 times more blood than tissues, so less mess.
24:21Wow.
24:21And they have an advanced clotting agent in them, which will stop the bleed fast so you can get back to your day.
24:28Best of all, once it stops, you simply remove the Nampon.
24:32You don't have to worry about it restarting.
24:34So, Sharks, who wants to help me get Nampons into every medicine cabinet and first aid kit in the America and eventually the world?
24:43Because, well, nosebleeds happen.
24:48And nosebleeds need Nampons.
24:50Oh, no.
24:51Oh, yeah.
24:52So, right in front of you there, you have a little fun science demonstration, kind of like those old dinosaurs that used to explode when they were a kid.
24:59You got a little dropper here with some blue water.
25:02Don't worry, not blood.
25:04Just take it and drip it onto one of the Nampons there.
25:08Oh, it's very absorbent.
25:09And it should blow right up there.
25:12Very absorbent.
25:13So, now imagine that actually happening in your nose when you have a nosebleed on the soccer field and in the office, wherever y'all.
25:20They really expand.
25:21Yeah, they expand extremely fast.
25:23They expand usually within 10 seconds.
25:24Is there any risk that your head explodes?
25:27Because this thing's expanding very quickly.
25:29So far, we have sold well over a million of them and nobody's head has exploded.
25:33Do you have a patent on this?
25:35There's no patents on it.
25:36We have the IP on the trademarks for it, the designs.
25:39But because of prior art, we weren't able to get any kind of patent on that.
25:43However, we have some new products coming out that are completely revolutionary.
25:47You'll like this, Michael.
25:49Nampons Sport.
25:49It's going to come out next year.
25:51It allows athletes to put the Nampon in their nose, get back into the game, and still be able to breathe while they're out there.
25:59Oh, that's through the nose.
25:59Wow.
26:00Through the nose.
26:01Even through the device.
26:02It's got a mesh airway inside of it that allows them to breathe and get back out.
26:07Josh, you said you were the managing director.
26:08Are you the founder and owner?
26:10I am.
26:10You are.
26:11Wow.
26:11Are you a doctor?
26:12Do you have any medical background?
26:13I'm not a doctor.
26:15We have medical advisory board.
26:16We've got hematologists.
26:18We've got ENTs on our board.
26:20I just happen to like how the scrubs look on me.
26:23What are you selling it for?
26:24So that box you're holding there, that's a 12-pack.
26:27That's $24.99.
26:28You're talking about retail now.
26:30That's retail, yeah.
26:31Yeah.
26:31Six-pack, which is our biggest seller, is $15.99.
26:34Is that it?
26:34When does it cost you to make it?
26:36The six-pack costs us $3.61 to make, and we sell it for $15.99.
26:40What about the 12-pack?
26:41The 12-pack costs us $7.86 to make.
26:44Josh, did you say you sold a million dollars of it?
26:47No.
26:49Last year, we didn't sell a million dollars.
26:51We sold $3.4 million.
26:53Wow.
26:53Last year.
26:54Last year was $3.4 million.
26:56How long have you been in business?
26:57We launched in 2021.
26:59Tell us the sales the year before.
27:01$1 million, $100,000 the year before, $3.4 million the next year,
27:05and this year we're on track to do $3.8 million.
27:08And before you say how come your growth isn't as strong between the two years...
27:12How come your growth isn't as strong?
27:13I'm glad you asked that question.
27:14Last year, we had a very large wholesale order from a global first-aid kit company
27:20that decided to put it in all of their first-aid kits,
27:23so they front-loaded that purchase.
27:24Got it.
27:25So they bought for a couple of years.
27:27Last year, we did $2 million in direct-to-consumer and Amazon.
27:29This year, we're on track to do $3 million.
27:31What about in drugstores?
27:33Do you sell this in retail?
27:34We are in a major big-box retailer starting in April of this year.
27:38Which one?
27:39We're in 1,200 Walmarts.
27:40Can you tell me what you're going to make off this $3.8 million this year?
27:43So last year, we did 3-4.
27:45We made $800,000.
27:46Yeah.
27:46Wow.
27:47This year, we're on track to net around $200,000.
27:49$200,000?
27:50That's it?
27:51Yeah, because we've been reinvesting back into the new products that are coming,
27:54plus in awareness and marketing.
27:56So you're making $200,000.
27:58I know you're reinvesting, but you've priced this valuation at $7 million for the company, okay?
28:04Mm-hmm.
28:05So I have to pay you 35 times what you make to buy any equity in this thing.
28:13In today's market, very few companies get 35 multiples.
28:18The stock market itself doesn't trade at a 35.
28:20Yeah, I mean, if you're looking at it from the net, from the EBITDA perspective...
28:23Why wouldn't I look at it?
28:24Well, that's the only way to look at it.
28:25Because when you look at comps, right now what's going on in the health and wellness space,
28:28the lowest that any company that's right now looking at is 2.2 times revenue, not times...
28:34Well, the revenue days are over, so that's a problem here.
28:37So who is your competition in something like this?
28:40Is there any?
28:41We basically created the category, and that's been the challenge here, right?
28:45Since then, you've had a bunch of knockoff companies come and try to gain market share.
28:50Oh, really?
28:51They don't have the clotting agent.
28:52We have that proprietary.
28:53No clotting agent.
28:54They just have either expanding foam.
28:56It's a cotton ball.
28:57And can you do anything to stop them?
28:59Innovation is the only way we can stop it.
29:01Your only barrier to entry is the trademark and the brand.
29:05The brand, trademark, or distribution, and yes.
29:08Listen, I'm impressed, and the only problem I have with it is valuation.
29:13I would never, ever pay 35x for this.
29:16I actually think your company's worth about $2 to $2.5 million, so I'm out.
29:21But I wish you the best of luck.
29:22You've done something remarkable.
29:23No, I appreciate it.
29:24Thank you very much.
29:25I think it's very cool, but I have to say I'm in the same camp as Kevin.
29:29I think your valuation, I don't love.
29:32Well...
29:32And I like a little more skin in the game, so for that reason, I'm out.
29:38You know what I'm bothered, right?
29:40That you had $3.8 million in sales, but you only had $200,000 in profit, and I understand
29:45because you're putting it back into the business.
29:47However, you are the kind of person that's always going to be putting it back into the business.
29:52I'm just wondering how the cash will come out.
29:54I agree with wholeheartedly everyone else here, thinking it's totally overpriced.
29:58So for that reason, man.
29:59Look, when you go into a very large category like Band-Aids, the mistake people make is
30:06to try to take on the entire category.
30:08You found a very narrow point of entry, and you want to own that category.
30:13There are competitors.
30:15Your valuation is high, but I'm more creative than the other sharks.
30:21The premise of our show is, if I don't like your valuation, I can simply choose to offer
30:27you a valuation that I feel comfortable with.
30:30Or something else creative.
30:32So, I will give you the $350,000, because I think you're the real deal, my friend.
30:37Appreciate it.
30:38I'll give you the $350,000, the valuation I feel comfortable with is 25%.
30:4425%?
30:46Wow.
30:47It's chihuahua, caramba.
30:48Wowza.
30:49So, you're valuing it at roughly $1.6 million on $3.4 million in revenue from last year?
30:55How do you feel about that?
30:57I don't love it.
30:58Well, are you in?
31:01Michael, are you in or out?
31:02What are you doing?
31:02You know what?
31:03I'm intrigued by it.
31:05I don't know if I'm comfortable doing this alone.
31:08Well, go in on Robert's.
31:09But Robert's got to agree with that.
31:11I think he will.
31:13Yeah, I would do that.
31:14Sure.
31:15Michael knows a little bit about sport.
31:17I'm comfortable with the offer with Robert.
31:20$350,000 for 25%.
31:22Can I propose something creative?
31:25And I'm actually surprised Mr. Wonderful didn't bring this up.
31:27Well, let's hear what you got.
31:28I might come back in.
31:29Three sharks are out.
31:45Josh has an offer on the table from Michael and Robert for his first aid for noseblades,
31:50nampons.
31:51But he has a counteroffer to make.
31:52Can I propose something creative?
31:55And I'm actually surprised Mr. Wonderful didn't bring this up.
31:58Well, let's hear what you got.
31:59I might come back in.
32:02Royalty.
32:03What royalty?
32:03Well, these two gentlemen believe in me a bit.
32:06But I believe in royalties.
32:08So what if I was to offer you a royalty until you made your investment back?
32:13Right.
32:13And then after that point, you would have equity in the company.
32:17How much?
32:18How much?
32:18What would be the royalty and what would be the equity?
32:20Same $3.50 for same 5%, but $0.05 royalty on every individual, not box, individual nampons
32:28sold until you've made your money back.
32:31So that means in a six-pack, $0.30, so forth and so on.
32:35Josh, here's my view.
32:36Uh-huh.
32:37Unlike Kevin, I don't need the money along the way.
32:40I am happy to invest in the entrepreneur and the business.
32:43I don't want to speak for Michael.
32:44No, I'm with you.
32:45This is, for me, very binary.
32:46You're creating a new category.
32:48Competitors are chomping at the bid.
32:50You've got to run fast.
32:51For me, the interest is to build this company, not take money out of it, and then hopefully
32:57sell it.
32:58You would have to sell 7 million nampons for us to get that $3.50 back.
33:02How long would that take?
33:04With your involvement, less than two years, in my opinion.
33:07I don't want to do it for the 5%.
33:08Yeah, me either.
33:10Okay.
33:11Would you do it for 10%?
33:13And steal the royalty?
33:14And steal the royalty.
33:15Would you up the royalty?
33:17You're not even in, but I respect you, so I'll...
33:19I might be.
33:20I would do the deal for 10 cents a unit, and I'd do it for 7.5% equity.
33:2810 cents royalty.
33:30Yeah.
33:30I'll do the royalty until you've made back $500,000.
33:3310 cents, you make back $500,000, and you still get the 5%.
33:37I would do that for 10% equity at the end.
33:40Not to speak for Michael.
33:42Michael, would you do that?
33:43I'm in on that.
33:44Would you do it for 7.5%?
33:46No, but I'd do it for 10%.
33:47Would you put more money in?
33:52You said it yourself.
33:53This has got to move fast.
33:54I would do the $350,000 for 10%.
33:57Kevin, what was your offer again?
34:02I said I'd do it for 10 cents and 7.5%, but I want the bump to 5...
34:08What did you offer, $500,000?
34:09I've got to get a lift on the capital.
34:10What did we say?
34:11$350,000, 10%, 10 cents until we get back.
34:15$350,000, 10% until we get our money back.
34:18Until we get our money back.
34:20I don't need the bump to $500,000.
34:2110 cents until you get your money back.
34:23Yeah, we don't need the bump to $500,000.
34:25And I get both of you.
34:26Yes.
34:29You got a deal.
34:30Woo!
34:30Hey!
34:31You know what?
34:35I'm going to go around and start bunching people in the nose.
34:38Man, I love this.
34:40I don't want to get too excited by a brand new category.
34:43Michael!
34:44Very exciting.
34:47Nice.
34:49Going into the tank today, I was definitely hoping to get a deal with Michael when I heard
34:53he was the guest shark.
34:54Super excited.
34:54And Robert, I think those two together, incredible combination, dynamic duel.
34:59They're going to do wonders for Nampons.
35:01Next into the tank is a product that can transport you to the location of your dreams anytime.
35:17Hello, Sharks.
35:25My name is Mitch Braff, and I'm from San Rafael, California.
35:29I'm seeking $250,000 for 2.5% of my company.
35:34Wow.
35:34Sharks, how many of you have ever lived or worked in a room without windows?
35:40Horrible.
35:41I have.
35:41It's soul-crushing.
35:42When you're cut off from the outside world, your stress goes up, your sleep is affected,
35:47and your work suffers.
35:49Windowless rooms are silently affecting the mental health of millions of people every day.
35:55That's why I created Liquid View, virtual windows with beautiful and gorgeous 24-hour views that breathe life into any room.
36:09Wow.
36:09Beautiful.
36:09Sharks, welcome to Hawaii.
36:11Wow.
36:12Yeah, it's really pretty.
36:12Shot in stunning 8K with motion picture cameras, our high-resolution views dynamically sync to your circadian rhythms.
36:22God, it looks so real.
36:23When it is sunrise in your house and outside, it is sunrise in Liquid View.
36:30Let me give you an example.
36:32Here is sunrise at Rodeo Beach, and now you can see if it was then sunset.
36:40Check this out.
36:41The magic hour in Northern California.
36:44Wow.
36:44How beautiful.
36:45This is what you can experience.
36:46What a great idea.
36:47Thank you so much.
36:48Really pretty.
36:48Now it feels, and with our stereo sound design, sounds like you're really there.
36:55With our growing library of 24-hour views, we can take you anywhere you want to go with a simple click.
37:02How about Miami?
37:06Wow.
37:06Yeah, this is Miami.
37:07That is so cool.
37:08Venice.
37:10I'm coming, baby.
37:12I'm coming.
37:12I seriously love this.
37:13This is great.
37:13It's like we've been on vacation everywhere.
37:15And in the meantime, I don't know about you, but when I like to close a deal, I like to be in the south of France.
37:22Woo-hoo.
37:23Yes.
37:24I want to go on vacation with you for sure.
37:26Yeah, we like going there.
37:26Yeah.
37:27How many locations do you actually have to offer?
37:29We have 10 views, 10 24-hour views that we shot.
37:33Is it a loop?
37:34It's a 24-hour loop.
37:36It matches wherever city you are and whatever date it is.
37:39It's going to know the sunrise and sunset of that day in your specific location.
37:44But, Mitch, where do you think the value is actually captured here?
37:47Because I don't want to pour water on the presentation, but I'm living through this right now.
37:50I'm building a den for my buddies to watch Sunday football.
37:54And I learned you can now build a complete digital wall.
37:58And it comes in panels that are seamless.
38:00Bigger than that wall, $22,000.
38:03And, Mitch, how much is yours?
38:04The system we're looking here, turnkey, including the hardware, everything and three 24-hour views, is $48,000 for this system.
38:15It's only for the rich.
38:17Wow.
38:17And I would say the profit on us as a business is 45%.
38:21Somebody comes to you like me with a wall already installed at 6K and wants to license your 10 images.
38:28I'm interested.
38:28How much does that cost me?
38:29Right now, we're going to have a media player alone, since you don't need everything else.
38:33You already have the display.
38:34All I need is an HDMI input.
38:36Correct.
38:37We're going to charge you around $2,000 for the media player and $299 a month.
38:42I get all $10 for $299?
38:44And you get one of you a month.
38:45That's our business model.
38:46So, the hardware is just a way for you to get your content.
38:50Exactly.
38:50We're a content company.
38:51So, why aren't you just pitching that model here?
38:54Because that's interesting.
38:56I mean, I'm thinking about the average person.
38:57I think this is priced out of the price range of most people, unless you're really wealthy.
39:02But I'm just curious.
39:03Are there different price points for this?
39:05I'm really glad that you mentioned that.
39:08So, I should say two things about our business.
39:1080% is commercial.
39:1120% is residential.
39:13Commercial is not as price conscious.
39:15We are in hospitals.
39:17We are in assisted living, in memory care.
39:19It's perfect for that.
39:20Oh, that's a really good package.
39:21You're already out there selling this.
39:22Yeah, we're already out there selling this.
39:24Last year, we had $1 million in sales and $750,000.
39:28About the time we heard that.
39:28$1 million in sales.
39:29You didn't mention that.
39:30Yeah, on the million last year, what did you make?
39:32We are going to be profitable by the middle of next year.
39:36You haven't made any money yet.
39:37You're still burning.
39:38I think this is one of the coolest things I have seen come into the Shark Tank.
39:43Don't you all feel better sitting here looking at the different scenes?
39:47I mean, I would love to be in Venice one day.
39:50In the south of France, the next.
39:52But to me, I'm a consumer product person.
39:55I love products at an affordable price.
39:58And so, while I adore this, it's not really the right investment for me.
40:03But I commend you so much for something so cool.
40:08And I wish you good luck, but I'm out.
40:10Yeah, Mitch, I think this is unbelievable.
40:12To see actually movement and the time and it equals up to wherever you are, it is fantastic.
40:18For me, the price point, when you said it, I went, like, I took a deep breath in because
40:24I think that would be the reaction of most customers.
40:27And I know that, you know, it's more commercial applications that you're looking for.
40:31I just think this is a little too niche for where I'm at.
40:34So, with that being said, I wish you the best, but I'm out.
40:38I do object to the price as well.
40:43But I do think the commercial application is enormous, especially because I live in a city
40:48called New York.
40:49Yeah.
40:50And there's vast commercial spaces and you walk into a vacuum of a whole city block and
40:56there's no view.
40:57I think even for sales purposes, bringing it to life and putting a view on the wall, I
41:01think would help tremendously.
41:04So, I think there's a lot of application, but I think the price is just too high for what
41:08you're going with right now.
41:09So, unfortunately, I'm out.
41:12I think it's really early and this model is for 1% of the market.
41:17It's so expensive.
41:18I want to get into it when it's for 50% of the market.
41:21And I'm watching this market develop.
41:23This is crazy pricing.
41:25I'm out.
41:26All right.
41:27Look, I disagree with the other sharks.
41:29I don't think for the application you're going with, your price is too high.
41:33I'm in enterprise sales.
41:35I'm in commercial sales.
41:36That's more my world than the consumer world.
41:39There's a saying in that world, which is where there's mystery, there's margin.
41:44And it's beautiful.
41:46I mean, it's got a real wow effect.
41:50The challenge I have is I don't think this is going to scale to something really big.
41:58I'm out.
42:00All right.
42:01It really is fantastic.
42:03Just blown away by how great that is.
42:06Thank you very much.
42:07Good luck.
42:07Bye.
42:08Thank you, guys.
42:09Bye.
42:09I wish we got a deal, 100%.
42:13We just have to find a better way to position it.
42:15There are millions of people with windowless rooms, and it made me feel good that the sharks
42:19loved our product.
42:19People with another half.
42:26Get to the gym.
42:29Bye.
42:39Bye.
42:41Bye.
42:43Bye.
42:43Bye.
42:44Bye.
42:44Bye.
42:44Bye.
42:45Bye.
42:45Bye.
42:46Bye.
42:46Bye.
42:46Bye.
42:47Bye.
42:47Bye.
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