Callan JMB Inc. ($CJMB)

Good day, and welcome to the IAccess Alpha Virtual Best Ideas Spring Investment Conference 2026. Our next presenting company is Callan JMB Inc. [Operator Instructions] I'd now like to turn the floor over to today's host, Wayne Williams, Chief Executive Officer at Callan JMB, Inc. Please go ahead.

Welcome, everybody. I'm glad everybody was able to join. Hopefully, everybody is having a bless day. I'm going to run through the slide deck fairly quick because I really want to focus on questions. It's great to be here again today presenting Callan JMB and everything that we're doing. Some of you have obviously seen the slide deck from previous presentations. There are some minor changes, but we'll -- I'll definitely highlight those pieces. So as you know, Callan JMB, we focus on emergency response and preparedness with special packaging. So our mission, of course, is to deliver reliability to our customers by anticipating, responding and overcoming the most complex situations with precision and compassion. Some nice buzzwords, but if all of you have been watching the news lately, you know what's going on in our world, and that is our space. Callan JMB has been in the preparedness and response, protecting packaging, protecting vaccines, things like that, basically from 2007 when we started this. So the 4 hot buttons as I always like to refer to is the integrated logistics, the expertise in supply chain, our gold standard when it comes to protecting product through distribution and our packaging and then, of course, all the electrons that go around to make all of that happen. So with that, the legacy business, which is the hot topic right now is in the emergency preparedness and response. I'm actually up in Chicago today sitting down with the city going through their formulary in preparedness for any sort of event that may be going on. And as you all know, we're in a heightened alert situation right now with what's going on over in the Middle East. So that has the states certainly nervous, and that's where we come in and ensure them that we are prepared for anything that has thrown their way. The one of the main things that comes out of these type of preparedness conferences and meetings is moving the product, moving vaccines, moving blood product, moving those things that have temperature-sensitive requirements. And that was really where we initially cut our teeth way back in 2007. We designed and developed a reusable platform that allows us to put the best of the best out there, but not have the client have to buy that. So we have a lease fleet. Our customers lease from us to move their time temperature-sensitive product. It comes back to our reclamation sites and then we refurbish and send it back out just kind of like a rental car type of approach. Again, these numbers real quick are just kind of showing you the billions that are out there in the specialty packaging and the growth. And as most of you know, when we went public just a little over a year ago, one of our key things was to launch in the food space, specifically the samples that the growers and the bakers and the butchers are pushing because they're already paying top dollar to move that product. And so the second area that we looked at was certainly in the GLP-1, the pharmaceutical space. We were already in the pharmaceutical space, but that was a market that was growing. We did discover that, that market has its challenges, certainly, the -- what's called the 503A, that is the compound pharmacy that is pushing directly to the patient. That is very challenging. But the area that pushes to clinics and hospitals, that is where we're growing, and you're going to see a little bit more of that in the slide portion of it. We were also successful in initial launch within the food space. We had signed a contract with Keychain. They introduced us to several customers. And as we speak, they are beta testing our reusable shipping fleet, and we've had very successful initial movements of their products. So onshoring, and everybody has heard this buzzword, President Trump when he took office, made it his priority to bring active pharmaceutical ingredients and other products. But in our space, it's the active pharmaceutical ingredients back to the United States. And so that has been one of our key focuses out the gate. We were very successful in getting an LOI with Walker Pharmaceutical out of India, and they will be one of the first companies that are going to build and bring their product back here to the U.S. And we are basically managing that entire process. We actually have several companies that have lined up that like our approach. And our approach is a turnkey approach. We are not saying, hey, you come in, we'll get you over here, but then you're on your own. We're talking about providing housing for helping them build out their facilities, bring in manufacturing equipment, et cetera, and then dealing with like work visas and everything like that. So it's a complete turnkey process. We're the facilities manager, if you will, for these type of organizations. And one of those key pieces was partnering with Revival Health. And so they bring in the science and the revenue and the money, and we bring in the expertise to make that occur. So one of the recent announcements that you saw here, again, was within the onshoring piece, and that was with Attune Biotech. So Attune basically approached the federal government with saying we would like to manufacture a long COVID product that is already being done by compound pharmacies. So it's an approved process, but we're going to take it to the state-of-the-art manufacturing level. And that has been bringing out great, great results. I would just encourage you to watch the press releases because there's a lot more to follow in reference to that piece right there. I do see that there are some questions popping up. I'm going to try to flip through the slides real quick, and then I will get to your questions, I promise you. So I've talked about the oral drug delivery. Obviously, that's key with our GMP facilities that we operate and run. So we are looking very forward to that as we onshore and manufacture these products. And these are just some examples. I would encourage you to go on to our site, look at these slides. This is just a case study that shows our emergency response and preparedness during COVID and what we do every day. Like I said, we're up here right now managing their mobile hospitals, all of their life-saving drugs and ventilators and radiation portals, et cetera. So it's something we've been involved with since 2009. It's our sticky money, if you will. These are long-lasting contracts that typically are 7 years, and we're like in our third iteration with the city of Chicago. We're in Oregon. We're in Texas. We're in Florida, Alabama. So these are all very good pieces of constantly bringing that baseline. Again, I don't want to read this slide to everybody. Obviously, one that's a little outdated here because the stock market has definitely not been in our favor, I think, mostly because folks want to see every week something happening. But when you're in this space, when you're in the black swan space, it doesn't happen every day, but when it does happen, it's very, very big. It brings lots of revenue to the table. And this just shows some of the investment highlights that we've done over the past year. Again, the company is still owned by myself and my brother-law, our Medical Director, doctor. We have roughly 70% of the company and still manage and control that process. So that was really quick. I really wanted to make sure that we had an opportunity to get to the questions. So I'm going to actually -- let me get to these questions right here, Q&A.

So one of the first questions we asked, how does Callan stay in prepare mode to deal with health care crisis? So that's a great question. So we're constantly in a state of readiness. So some of the health care initiatives that are out there are obviously -- if you look at COVID, it was providing like vaccines, testing platforms, the VTMs, the viral transport media, so we could determine if somebody has the bug, if you will. So we actually store those. We have facilities throughout the United States that we store at the state and federal level, emergency equipment, emergency supplies, PPE and everything like that. And our staff, depending on the contract requirement are in a constant state of on-call readiness. So to give you an example, here in the city of Chicago, we have to be able to respond to the facilities and have the first product moving within 90 minutes. And we literally train and practice that daily. And then we use a lot of electrons as well. We have cameras. We have satellite communication whole on yards, so we can be in that constant state of readiness. So that is how we handle the health care type of crisis. One of the things that we're doing with the onshoring is looking at one of the biggest health care crisis that's out there every day, and that is the shortages of critical products. To give you an idea, the U.S. for the last 13 years has been in a critical shortage of just IV bag solutions. So we're bringing companies over that can manufacture those, but manufacture them here in the U.S. and bring over all of the science in reference to that. So that's what the onshoring is going to do. It's going to help tackle a lot of the day-to-day health care crisis that we're in with like epinephrine and oral medications, et cetera. The next question I have here, what big opportunities in health care space do you see as the key growth for Cowen going forward? Our biggest opportunity right now is the onshoring. I was -- last week, as you saw an announcement, I was at a conference where the FDA and several universities and representatives were there. And one of the biggest things we talked about was the onshoring and what we as a company are doing. And that we are doing with Revival Health and partnership to where we've got several states talking with us to look at the possibility of bringing the type of facilities that I used to manage when I was at CDC in the stockpile. How do we have stockpiling more down at the state level versus at the federal level. And so that is where we're going to see tremendous growth in 2026 and on. The next question I've got here is which other sectors does Callan have potential to expand into? So as I had mentioned and really quick, and I apologize, certainly in the packaging space, one of the areas that was brought to my attention just before going public a year ago was why don't we look at taking our successful lease fleet shippers to the food space. And so I was reluctant because I was thinking of like HelloFresh and Blue Apron, very inexpensive and probably very lack in protecting type of shippers. But it was when it was brought to my attention about the samples where these growers and farmers and bakers and stuff, they are sending their sample to a purchasing entity like at a restaurant at grocery store chain, et cetera, and they're already spending anywhere from $200 to $400 to send that sample. And they have a onetime opportunity to press the buyer. So our packaging it arrives, there's no question with it. It's temperature because it's if it's supposed to be frozen, it's frozen when it gets there. Plus we have all the data. We have data loggers that mapping all of this, and we can show all this information. And so we foresee in this year a tremendous growth in that space. We've got several pilots going on right now. And right now, all of the feedback from those organizations is very, very positive. So that is certainly the growth. Obviously, the onshoring is going to be a big growth. And then we have our continued space with -- at the state level, where they're constantly looking at their state of readiness. And we had brought on Christopher Shields, who was the Deputy Commissioner for Public Health and Response in Chicago, and he's already making great headway with the other states in trying to open up those capabilities. Next question we have is, how much of the projected $50 million to $75 million of agreement revenue is contractual versus continued on federal awards? That's a very good question. I mean, right now, the initial grant that was put out there by the federal government is $16 million with obviously a benchmark that have to be met for that anywhere from $50 million to $75 million. Obviously, when you're dealing with an IND, an investigational new drug, even though it's not, it is already an approved recipe, if you will, and it's made by compounders. What we're doing is we're taking it in and making it by machinery. We're state-of-the-art manufacturing. And that is really what our approach was, was to take a product that compounders are making and it's not exactly it's a little different based off of everybody who makes it because it's like baking a cake. The ingredients are just slightly different. So your potency and efficacy may be a little bit stronger, a little bit weaker. When you run it through a reactor and a state-of-the-art manufacturing process, you are spot on 99% of the time. And so that was really our approach to BARDA and the FDA was allow us to make this at this level so we can take care of our veterans and our VA and our soldiers, our troops, everybody who is affected with long COVID. And so like I said, you'll be seeing some very nice information coming out over the next few weeks in reference to that. So that is moving forward greatly. Next question we have here, what milestones must occur before Callan begins recognizing meaningful revenue under the Attune partnership. You will see that here very shortly. Unfortunately, I'm not allowed on this call to release the specifics, but there has already been some significant movement at the government level. So you will see that. And then most likely, you'll probably see weekly updates because that one is a fast-moving piece of business. Next question, can you talk a bit more about Revival? And how well capitalized they are? So Revival is a private company. The founder came out of the tech world, but he was instrumental and received many, many accolades and awards on integrating at a completely vertical approach when it came to the electronic world, and that had to do with like tablets and things like that. So he's taking his expertise there to do a completely vertical integrated approach to manufacturing, which in the pharmaceutical space is not done. So what I mean by that is the facilities that we are wanting to run and build out in different areas throughout the U.S. for the onshoring piece would be you would actually have raw material, you would have finished API, which is the active pharmaceutical ingredient, you would have finished product and then you'd also be pushing out product. And this would all be vertical from start to finish. So cradle to grave, all those different expressions. And so that is what is going to be the difference. And we've talked all the way up to the White House level in reference to that, and we have everybody's support to make that happen. The fact that we've already got at least Walker Pharmaceuticals and other companies that have the APIs over in, say, Korea and India and Indonesia that have agreed that they will come over to the U.S., land on these facilities and move forward is just huge in reference to accomplishing that feat. Okay? The next question I've got is, how does the pipeline of emergency response deals look? Are they all different? What are the margins? Are the deal sizes getting bigger? There's a lot of questions in that one question there. But emergency response is always -- so there's 64 project areas in the United States. So the 50 states, several large cities in all of our territories, and they all get federal funding to be in a constant state of readiness. It's called the FEP program, which is public health emergency preparedness. And so those dollars go out every year. And what we're doing is we're working with each of the project areas and helping them write their grant proposals to meet the government's requirements so they can get the funding. And so what we're doing is we're taking our successes from Texas and Chicago and Oregon and then helping them plug that in where it's appropriate. Bringing Chris Shields on board certainly helped with that because he was at the state level. I was always at the federal level and understood the federal dollars being pushed down to the state. He's able to actually sit down with his old counterparts and help them do that. And Chicago was like the success story during COVID. So a lot of people want to mirror and match those type of pieces. Yes, you will have different size events because it's based off of population base. So a Montana of 1.3 million versus Mississippi or an Alabama of 7 million or 8 million people, there are different, but they all have the same requirement. They all have to have enough preparedness and readiness to support every man, woman and child within their boundaries, okay? The next question I have, does the agreement require Callan to commit incremental capital personnel? No. With Attune, it does not. So all of the capital and everything like that, that is being provided by Attune. Attune is paying us to basically be their logistics and compliance gurus experts. And so the partnership was brought in because we have the cage code. We have the reputation with BARDA and everything like that. So when we wrote the whole proposal, we put ourselves first and then Attune second. They're the science. They've got the lined up the patients and everything like that. But because of our knowledge within the FDA and BARDA and everything like that, we were listed as first and then second, even though we're a 50-50 partnership in reference that. But there won't be any capital coming from us. Obviously, we'll utilize our personnel and our infrastructure, all of our electronic systems and platforms that we've designed specifically for this, okay? One of the systems that I would like to highlight there that is crucial to this is when we were under contract with GRAIL, one of the things that we developed was able to trace and track that kit, that blood collection kit all the way down to the patient. And it's HIPAA approved, HIPAA that meets all of the regulatory requirements and stuff like that. So with -- when you're doing an investigational new drug or an approach where you have to maybe test 300 to 1,400 people around the United States, it becomes very problematic and very arduous if you don't have an electronic system that cannot only track the medication, the lot number, all of that, but also the patient information all the way back to the accessioning lab where it's being tested. And that was one of the key pieces that we brought to Attune was a fully integrated electronic platform. The next question I have here is what differentiates your federal logistics platform from other cold chain and medical deployment providers? Wow, that's a really good question. Yes, certainly, there's companies out there that talk about cold chain. There's packaging companies like ThermoSafe and Pelican and CCT, all of them that certainly make packaging and they're very good platforms, but they sell that packaging. They sell that packaging to the UPSs of the world, the FedExes of the world, the manufacturers of the world. And then they're responsible for getting everything validated, tested, pushing it out everything like that. We're a service company. So we go not necessarily to the big folks, even though we play with them all the time, the Eli Lilly's, the Johnson & Johnson and everything like that. But we're talking like the Tier 2 companies, which probably make up 80% of the industry out there. They don't want to build a logistics arm and everything like that. So they hire us and reference do that. And we bring in compliance. We bring in monitoring platforms. We bring in the packaging, and they don't have to pay for the packaging. They just pay to use the packaging. So that is one of the biggest changes within the cold chain side of the house. And then when it comes to the medical deployment providers, we've always been at the federal level. I cut my teeth as a quarter master officer in the Army. So I understand logistics. And then I was evacuated to Fort Sam Houston, got put back together, and that's when I learned everything about the medical side of the house. So our company takes an approach a little bit different. We always want to protect the tip of the spear. So we're looking at constant ways of working through those walls that everybody throws up at us in. To give you an example, when we were supporting -- or well, we are still supporting Iraq, but they came to us in 2013 to figure out how to move all of their product in there because they were having spoilage. They could never keep the proper temperature or anything like that. And so we said we will show you our platform to prove that we know how to deploy in the most austere environment. So we sent a package took 7 days to get there. We were on a Skype meeting with the kernel. He opens it up and there's frozen ice cream there for them and their staff. And it was 120 degrees outside. So that's how we show our clients that, look, you throw everything at us, we will figure out how to get it there. And so that's what makes us different when it comes to deploying the medical assets. We look at it as an austere environment. That's all it is, but we will still maintain the same integrity as if we were in peace time. So with that, let me refresh because it looks like there's a couple more questions that popped up here. I'm trying to get through all of them. So I don't want to leave anybody out. How scalable is your infrastructure? Again, a lot of it is electrons, so very, very scalable. And then, of course, where myself and my team have come from, we can tap into, especially folks that are getting out of the military that have been in the medical logistics side. We have a large cadre of folks when we're in an emergency, that's when we need people when we're in a peace time, we don't. We need just a small skeleton crew. So when COVID hit, we just reached out to all of our trained extra folks, and they all landed on our facility. So we see no issues there whatsoever. Can you discuss how your technology is superior to others? I don't know if it's superior. I think it's just -- we're constantly looking at all the things that people aren't thinking about. One of the things that we look at is shelf life extension. Manufacturing will look at that because that takes away their resale dollar. We look at that, especially on the government side of the house, we can test it, prove that it's still valid, why not extend it? Because, again, we're only using these things for emergencies. So that's kind of where we come from is just constantly looking. So I'm not in the forest. I'm outside always looking what's best out there. Another question is, how does the pipeline of emergency response deals look? So the pipelines, like I said, are part of the grant process, and there are several lined up. They just don't happen right away because you have to write the grants, you go in and adjust the budget. Sometimes we look at redirect funds saying, okay, we can initially get started because they didn't spend all of their 2026 money or they have redirects from 2025. Those are typically how we get into it. But they're not something that takes 2 or 3 weeks. They take 3 to 6 months. But when they happen, you're in it for life. And that's what's the beauty of that. Do emergency response contracts get bigger over time? Absolutely. When we started with Chicago, our initial contract started off at just about $600,000 a year, now it's up to $5.3 million. City of Chicago had a budget of then only $9 million. Now they're up to $23 million. And so we're -- we actually help them find the federal dollars so they can expand and grow. Can you talk a little bit about your discussion with Truking? Truking King is a manufacturer in China of medical equipment. So obviously, when we talk about sites that are going to do start to finish manufacturing, that was one of the things that we were looking at. Are there manufacturers out there that can build this type of state-of-the-art equipment in a very short, short window. And folks, I apologize. I know we're at the top of the hour. I had 2 other questions, but I think I answered them in previous answers. So again, I really appreciate everybody. That was a lot in a short period of time, but just keep your eyes open on us. You will see what we're doing and great things in 2026. Thank you.

Thank you. That concludes Callan JMB Inc.'s presentation. You may now disconnect. Please consult the conference agenda for the next presenting company.