Hydreight Technologies Inc. (HYDTF) Earnings Call Transcript & Summary

Good afternoon, everyone. Thank you so much for joining us for the Hydreight Technologies Q2 investor webinar, we're going to go over the earnings today that were just released. So we'll just give a few moments while we let everyone join as I see people are still joining in the wait room. [Operator Instructions] And we are going to be keeping this webinar to about 30 minutes. So -- yes, we're going to get through it pretty fast. But if you do have additional questions that we don't get to, please send them to our Investor Relations e-mail at ir@hydreight.com. I'll also put that in the chat section for you. And just a reminder that we will be going over -- just a reminder to take a look at our forward-looking statement as we will like to remind everyone that today's presentation will include forward-looking statements. These statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected. So forward-looking statements may include, but are not limited to, statements about our growth, strategies, product development, financial performance, regulatory outlook and market opportunities. So we do not take -- undertake any objection to update these statements, except as required by applicable securities law. So for a full discussion risk factors and uncertainties, please refer to our filings that are available on SEDAR+ under Hydreight Technologies there. And I will pass it off to Shane for you, our CEO, Shane Madden.

Thank you, Abbey. Hi, everybody. As the great Conifer Gregory once said, "what's you're going to do and go and do it." So that's how I would describe 2025 so far, especially the -- especially Q2. Obviously, we have some new shareholders here from the activity for the last few weeks. So I will go over kind of a high level again. I know some people have heard me talk about this to the point of nausea, but we'll go over it one more time. And then we'll circle back to Q2 and some other exciting things. But Q2 essentially for me, has been just an organic evolution of the first 2 verticals that we've talked about for a while. We're quite confident in the growth that we communicated at the start of the year on those verticals. We've established them very well. Our moat is very high. And we've obviously extrapolated that into the third vertical, which we'll talk about, which is developed for the [indiscernible] right now, VSDHOne. So high level, again, for anybody that's new. Hydreight Technologies essentially attempted to capture 3 key areas of the health care industry in the United States. We came at it from a compliance perspective, building tech on top of 3 key areas that we had identified that the health care industry was going to go. Obviously, there's been a couple of accelerators between COVID and the Ozempic craze that have shown a light on the need and validated the direction of the company in many ways. Our first was Mobile Health and Wellness, which is known as our Hydreight nursing platform, first business to allow nurses to work as independent contractors, allow them to monetize their credentials in a never before done way. We were first movers, still are. No company has attempted to have a 50-state medical mobile workforce. So that was our first vertical. The second vertical was addressing the nontraditional doctor's office. So health and wellness facilities that are providing true health care, a myriad of services, but it's true health care, requiring oversight from a medical director, physician network, access to compliant pharmaceuticals. And obviously, there's a tech component to be able to marry all of those. But again, everything needs to be built of compliance. The third vertical, which again, will go into shortly, is the direct-to-consumer self-administer. Again, first movers in terms of a model, we didn't want to be another runner in that space. We wanted to basically be the home for health care in that space, allowing a wide range of different types of businesses, whether it was a business with a large amount of clients in the health -- in the greater health and wellness space that just weren't structured to be in the medical side of things or whether it was people who had structured their business. But structurally could only do a few treatments of a few states or had structured themselves actually uncompliantly during relaxed laws and everything in between. The goal with that third vertical is, of course, to be the Shopify for health care in a sense. Instead of being another player, we want to have 5,000, 10,000 businesses all operating on our medical network, our tech, our pharmacy through that third project. So high level, that's what Hydreight Technologies is. The overall market spend is $5 trillion. Everybody has hardly talk about -- to date, in the U.S., 90% of that is what's called chronic care management, which essentially means it's preventable. And there's only 3 areas this can go. So individualized health care is where this movement is going, controlling one's own wellness. The awareness has shifted between what happened during COVID, but also the Ozempic, Mounjaro, crazes I call it, because two years ago, nobody knew what a GLP-1 was or a self-administered service at home even to extrapolate away from the GLP-1 space into the peptides and the sexual health and the hair care, nobody knew that existed. Now half of the U.S. are saying they'd like to try a self-administered at-home service. So the awareness is there, which is obviously a huge piece of positioning yourself as an offering. So as a company, 50 state medical company that has addressed 3 different areas of this $5 trillion market. We're positioned very, very uniquely because our moat is compliance. We're not a nice to have in any of the 3 verticals we're a must have if you want to be compliant. Obviously, we've married that with tech to make the connection with the customer. And yes, that's where Hydreight Technology is set out to go and that's where we're there. Q2, and I'm going to pass it to Vahid to go into some numbers right now, but Q2 for us was -- for me, nothing majorly exciting there, but it was just more of a validation of the first 2 verticals execution from the team. We've been putting a lot of work into strengthening the departments for growth, for the growth that we know is coming, and I feel that was an excellent performance in Q2 and validation of what we built. So I'm just going to pass it over to Vahid to go into some numbers.

Thank you, Shane. Hi, everyone. I appreciate everyone joining the webinar. As promised, we tried and we did file earlier than -- before end of the period that we had time to do and sort of a earnings call right away to provide updates. Before I go to the Q2, I'd like to walk everyone through the trend, the trend of the business, because when you were talking about the SaaS company, and as a Software-as-a-Service that has recurring revenue, trend is a lot more important than having revenue from point -- one point because you may do a great Q2 or Q3 or Q4, but then the trend is there, and that's what we're focusing on, the trend on the revenue, the trend on profit, on margins and what it takes for us to take us where we want to go. In 2020 that -- the business got into action. Obviously, there was a few years before that to create the such infrastructure and framework to be able to do that. The first 2 verticals that we had took us from about $1 million to last year, our top line revenue about over $22 million. Now we didn't have the third vertical last year. I'd like to remind everyone, the VSDHOne that right now is in full speed, and we're fulfilling the numbers. We're surpassing the numbers, is a brand-new business, a business that contains legal compliancy, technology in multiple different dependent factor, doctor network, medical directions, pharmacies and all that. Not only it went live, but also is generating revenue, real revenue for the business that is helping the revenue of the business in higher and higher in the very first year that is in action. So that's why the trend is the key. That's why not only we invested it not only we created it as such infrastructure and technology, but also is in action and is working. When we started this year for the first 2 verticals, we're expecting and projecting based on the evidence that we had in hand that we're going to have about 27.5% growth in our -- with our first 2 verticals that would have shown the graph like this that, but again, it's based on the historical data that were going on. In the mean time, we're also focusing on our adjusted EBITDA that in 2020, 2021, 2022 and 2023, we finance our own growth. We paid to create the legal structure, to create a technology and update the technology without borrowing any money, without raising any money after going public to be able -- but at the same time, we're looking at our bottom line to see is going to be a positive -- to be a real business. We could achieve that in 2024. And in 2025, we continue doing that in -- not only in the adjusted EBITDA perspective, but from the GAAP perspective as well. Same thing with the cash flow. So the reason I went back is for you to see the trend, the trend of the business, it's not like you go down one quarter or the next quarter, you go up. Then when we walked into the 2025. We walked into 2025, we had a very strong Q1. We surpassed our projections from the revenue perspective. We could end up being GAAP positive. We finished a life offering successfully at $1.55, have enough cash in the bank and then we walk into the Q2. Our goal at the beginning of the Q2 that was communicated with everyone when we sent the release out was focusing on the revenue, focusing on the number of the orders coming in, continue focusing on our profitability, trying to add more product, including a generative test into our offering. And then also looking at some tuck-in acquisitions or investments. The investment that is purposeful is not an investment that's just for sake of doing investment that we're going to do that, an investment that is going to help either with the revenue or with the margin, it helps with either of those, that's what we're looking for. Now we didn't want to be a company that keeps sending a release out on the LOIs and not completing that. We send a binding LOI, released out around the 503A, but that was after, I would say, a handful of -- advanced conversation with other players in the market or have some sort of agreement between -- with them, but they failed in the due diligence side of it. We walked into the Q2, the Q2 -- with that focus, we continue having the same growth. We could have -- we achieved -- we surpassed the growth percentage that we're looking for, not only we focus on the VSDHOne to make sure that we can onboard our clients. And again, I'd like to remind you, that's a brand new business. So you can do so much planning based on the evidence in hand. But the nature of the beast is you have to adjust. You have to monitor, adjust and move forward. We learned so many things as we pushed it through, but we try to keep the goal that we have for end of the year consistent. We had to make a lot of adjustments from the onboarding perspective from going and focus on the businesses that they have, the orders and make it easy for them to come through our system by being modular if somebody wants to use the whole thing or 1 module or 2 modules at the end of the day, bringing them through and serving their customers. So all that was learning, but we grew as we -- and met the expectations that we had as we learn and as we adjust. Q2, we finished strong. Our revenue was higher than expected, ended up being cash flow positive again. Now being a cash flow positive and also having money in the bank, everyone would have asked, why do you need to launch a convertible notes if you don't -- if you have that all in hand. And we couldn't talk about these when we launched it, because the financial was not out, but we're going to add more color into that and the reason for that. So Q2, from the GAAP perspective, we had about $5 million revenue. Our top line was about $7 million of revenue. We are cash flow positive now. In Q3, we're investing heavily into the company on some of the areas that is going to expedite the growth of the company and the VSDHOne H1 in Q3 and Q4. We had some major hire that we brought on board, people that they have a very extensive experience in different areas that can help us, including marketing. One of the things that we've been working hard in the last 45 days to create our own marketing agency as a subsidiary in the Hydreight to help every single business that goes on the VSDHOne that they need the marketing health. That's the biggest challenge that we see they're dealing with. We invested heavily into the technology, and we're constantly adding more. We made a modular. We're adding more features, new versions is coming out. We invested heavily into our product. We invested it heavily into the scalability of our company in every single department. So we are investing as we grow to make sure by end of the Q4, we achieved the numbers that we're looking for with the acceptable margin that we go through with. So our cash flow from the OPs was over $200,000, cash in the bank, about $6 million that -- again, it's -- we're going to use it only on the growth and investment side. So when you look at the growth trend and the graph that we initially showed at the beginning of the year are the orange line and the blue line. Now we're not changing our expectation from the company from the perspective that we're going to change the numbers that we're hitting. But based on the trend that we have in the Q1 and Q2, just with the first 2 verticals, the trend is going to show the yellow and the gray line that is going to be higher than what we originally started at the year with that we're going to continue focusing on that, and we try to even surpass that in Q3 and Q4. Some of the major updates that we had, for 2024, we focused a lot on rather than increasing the -- while we're increasing the number of the nurses, but the main focus to be helping them to get more services for them instead of taking them 3 to 5 months going live, helping them to go live within 30 days. There were so many things from the service perspective that we try to improve that is paying off. In Q2 2025, the number of the new license holders. And again, keep in mind, every license holder in our nurse network that comes on board with us, they usually bring 2 or 3 other nurses to deliver the services. The license holders, we went up by 77% in compared to the Q2 2024. And that trend is continued going up. That helps with the pharmacy orders. That helps with the services orders. That helps with our reach across 50 states because the nurse network is not only from the revenue perspective. We created that as part of our mobile clinical network that creating a white glove service for some of the second and third verticals that we haven't put in place that is coming in Q4 and it's going to make it easier for everyone to deliver those services. The pharmacy orders that from our second vertical, which is a white label has gone up by almost 50%. Now the nature of the pharmacy, sometimes you see the prices goes down a little bit. But again, for us, it's focused on the numbers. It's going up. Now these numbers, we'll talk about this more why now having ownership in the pharmacy is the key, because we focus on getting these orders coming in. We focus on creating the margin on every orders. We focus on creating the revenue from every 3 verticals. Again, I remind you on the model that we had in mind. Most of the SaaS companies won't make money from subscription, because your A players pay only so much, B and C players either cancel or go out of the business. The way that they make money is mostly tying a service to your technology and platform. We see a lot of SaaS companies tying a payment processing to the services. Now in our case, we're trying to do that with the pharmaceutical sales and tie it to the compliance and tie it to the IP that doctor of the pharmacy our Chief Medical Officer, they put together these dosages. They put together these IPs that is produced for only for our own clients. In the VSDHOne, when we started at the VSDHOne, we grouped our customers into 3 groups. The group that they're brand-new customers that they have marketing budget, they have the customers that they have members, but they don't have any pharmaceutical cells and the customers that they come with ready-to-go orders. Those groups should have satisfied our goal for this year, the third group. However, it's a brand-new business. We had to learn as we move forward. We're dealing with bringing over patient data. We made a modular to make it easy for them to come at any stage of the game into our flow if it's a doctor network, it's a pharmacy, if it's a medical direction, if it's end-to-end to make it easy for them to come in to everything go through it and it slowly bring them over through the migration plan. So that's the group that we came up with our entire year ago. We didn't count on the first 2 as those 2 are growing as well, creating a marketing agencies in the support of the first 2 to help them to grow on all that. Within the June, July, August, internally, we had a matrix that we're going to hit to between 70,000 to 80,000 range within the first 3 months. The first month, we hit the numbers, we surpassed the numbers. July, we hit the numbers, surpassed the numbers. We went over 42,000 orders. August, same thing. We fulfill the range that we have and surpass that. The August -- starting in late July, because we keep adding more product into the pharmacy, now we see a wide range of the products coming in from the order perspective. So we see some cheaper products that it wasn't in the original range of the revenue threshold that we have -- that, again, it's a business that is coming in. So we're adjusting that. And one of the reasons that in August, we are surpassing our goals from the product sales perspective. But we're taking time to wait until end of the August to qualify them from -- grouping them from the revenue perspective and tie them to our matrix. But at the end of the day, right now, we are focusing on the growth of this third vertical. We are focusing on a number of new orders. We're focusing on the revenue secondarily after a number of the orders. And thirdly, our margin, because we get this trend going. This is the very first year of this business, that if we get this real turning, next year and the year after and the year after, this is going to be accumulated. Now for -- and we're going to continue doing that in September. Just for you to know, the focus of the company, Shane Madden, the CEO of the company, he -- his name focus himself at directly working with the team and the top customers and the pharmacies on the VSDHOne, because the business is there. We already secured enough businesses to help us to get to our numbers and surpass that, but there is so much details into taking them live. It's on us to take these orders on our platform. It's not just the turning on and turning off the switch, it takes time for us to do that, and we want to make sure we don't sacrifice the quality over the time. But in the meantime, we hit our numbers. In the meantime, we bring the revenue. This quarter, we -- as we promised, we launched a personalized genetic test and wellness that ties to our vision later, we're going to talk about that on the acquisition side. We'll talk about that. We received some unpaid analyst coverage. We know more is coming. We're not -- our focus is quality. We've been super grateful with the analysts, with banks, with the investors that we have behind us. We are not spending money on the typical promo marketing to just give it a hype. We take our time to spend time with the investors shipping chain, everyone in the team try to meet new investors story. Now from every 3 investors, maybe one of them will be interested in our story, but at least they're investors, they -- we fall within their thesis, we're going to continue doing that. As you remember, for those of you who were with us for the past 2 years. Last year, we didn't spend much time on that. We're focusing on building a business. We promised we're going to do it this year. We've already done that. We're sharing our plan for the rest of the quarter on different events that we're going to do different investor conversations that we're going to go. So that's where we are. Now we launched a $10 million convertible, business is profitable. You have $6 million in the bank. Why do you need this convertible? It's a very good question. But again, sometimes because we're a publicly traded company, has a lot of advantages, but trust me, they have some disadvantages. We cannot share everything going on in our head and in the company, and we have to follow the rules and regulations of the exchange and regulators. So at a time that we launched this, we saw our numbers, but we couldn't discuss that in details. We had to wait the financial to go out. Business from the operation perspective, we're good. We don't need money. Business is paying it for itself. However, this is the time that we look at the value of every dollar that is coming into the business. If [indiscernible] into the business can lead to $10 in the business in the 12 months, 24 months or 36 months. It's -- based on the evidence, it's a good decision that we can take. So right now, based on the number of the orders that we're getting on VSDHOne across 3 verticals. And based on different pieces that we can see how quickly it can help with the revenue increase or margin increase, there are many investments an acquisition and growth drivers evolve in the market. It's every day counts with the level of the growth and the orders that we're seeing. So we wanted to make sure that we can take advantage of that, that if we have enough around us that we can use it for those purposes to support our growth to see where we're going with that. As you've seen the numbers that are being filed, the business from an operational perspective is not believing. We actually have enough cash in the bank and we keep adding to it. But we're looking at this in the long term, and we're looking at this as a bigger picture, how we can, again, based on the best evidence, based on the best knowledge that we have, what can be done to add the maximum value for our investors and for our company. So we launched that with Canaccord that -- other banks and other firms is helping us with that through the whole process. And again, I think the closing is next week that we're going to do that. I think it's September 3, but please go back to the press release for more details. Now we focused on potential M&A and investment since late last year. But again, we don't want to just spend money even our shares on something that is not going to add value. There are 6 -- 5 or 6 areas that we're looking into for investment on acquisition. Pharmacy 503A, pharmacy 503B. Shane will add more color into that. But has 2 parts. It's not only about the margin. Margin is one thing. The second reason for that is the full control over the offering. We're not dependent to other players. And thirdly, we have this volume coming in. Right now, it adds value from the revenue and profit perspective in our balance sheet. Why not using the same, the various same orders and creating the assets in our balance sheet, creating an asset for our company. This is all orders that is going through. Yes, we make money off that. But why not also that to be part of an asset that is creating value for our business. We'll talk about this shortly. So 503A after -- like again, I would at least 8 or 10 serious conversation and a handful of advanced conversation within those, we found the right group. We signed a binding LOI. We extended it outside debt by 5 days because we've done a very extensive due diligence on the whole thing, and we're closing it and we push it by 5 days, which is, I think, early next week to finalize that and then start on the 503B side of it with them. The technology side, we wanted to have a prescription software, which we achieved that with the #1 acquisition that we announced through the perfect script, that ties to our point of sales and also cornering the brick and motor with Shane will add more detail to that. Point of sales, we've been talking about this. We have all these brick and motors coming on board that they're using us. If we can tie them to our technology in a way that they don't need any third player, not only we have full control, but also is going to add a new revenue stream for us, which is the payment processing that we already secured the agent licenses to be able to do their payment processing. We just need to tie it to the point of sales. Also, we've been talking about AI and treatment plan on the technology side. AI is a cliche award nowadays. AI means nothing if you don't have the data and if you don't know how to monetize those. We have the data. One of the reasons that we wanted it to launch the genetic test was pioneer to this one. And also treatment plan, again, Shane will add more colors into that. And also, we want to have medications that we're going to put on our pharmacy on [own IP ]. So these are the areas that we're focusing that the $10 million convertible and also supporting this from the operational perspective and supporting the existing growth is going to be used. From the technology perspective, we have started it working on all these 3 internally, but if we find an opportunity that is going to fast-track this one that is going to go live and start generating revenue for the company, it makes sense for us to go that path and start getting it in action right away. So before I go any further into our capital market events, I'd like to pass it to Shane to add more colors into the -- this one or the previous slide, which was about the [ update ].

No, that's great. Thank you, Vahid. No, -- very eloquently put as always. Just kind of go back to where we're at now and where we're going. I guess that's kind of -- Vahid covered a lot of ground there. So we've talked since Q4 of last year of the release of our third vertical. We hope to have put it across very well in previous meetings as to the migration plan, the challenges from moving people from one medical company over to another and Q3 and Q4. The reason I said I was -- there was nothing overly exciting about the first 2 verticals is because we essentially knew where those verticals were and what the company was going to do. We've been talking about the third vertical for quite a while and the party has officially started in Q3, and it's going to continue to grow, and we're very, very excited about the execution that the team has done. But the first 2 verticals also have accelerators coming that are all feeding the same, because remember, the ecosystem is the entire health care industry. I talk about 3 different areas, but there's a lot of synergy below in terms of everything ends up in the pharmacy. So we have 2 distinct accelerators in our first 2 verticals. The nursing, we already released obviously some notes about financing and things like that, that has helped boost. We have a version 2 comment of that, which is quite dramatic. Again, it's -- it kind of showcases our position in the industry with some of these very, very large banks and the history of the company and the support. So there's a lot of good news coming shortly on the nurses, which is going to remove essentially a barrier to entry, and we see a huge expedition of the amount of nurses coming on there. The second vertical, we are actually releasing -- we've been reinvesting in tech, as everybody knows, for the last year very aggressively across all 3 verticals to help with scale, to help with automation, to help with the volume that we know is coming and we're in the middle of migration and a lot of it. But we have a hardware addition to our fully digital offering for our second vertical that's going to be released in Q4. Our goal behind that is to essentially capture a very large portion of the 100,000-plus med-spa industry, a very aggressive strategy. We've hired a new head of sales to basically spearhead that. And we are going to essentially try to capture a very large portion of that market, which, again, it's just an addition to our existing bricks-and-mortar offering, but it offers a lot more in terms of control of that pharmaceutical, of the telemedicine, et cetera. So that's an exciting one and that we're really excited about. Obviously, the third vertical then is what we're currently migrated businesses, giving updates on the volume. We all know our projections for the end of the year, and everything is going great there. Now if we zoom out for one second, knowing what's coming. Obviously, the communications we've been giving since Q4 of last year wasn't projections. Essentially, it was goals for the company based off of the businesses that we knew were coming under third particle and what they were currently doing. So again, we know and we're excited about the execution of that, and we're always very happy to share the numbers because, again, it validates everything that we have been saying. But if we want to scale and we want to control the scalability of that vertical, we need to start really thinking about controlling the pharmaceutical itself. That's why for a number and this wasn't a thought that popped into our head the last couple of weeks, this has been since last year. So the A is obviously a 50-state dispensing pharmacy, so the A can dispense across the various states. The B, however, is kind of the bulk creation and obviously, the $10 billion industry that you see there by 2033 that Forbes predicted. That is controlling all of the 3 verticals. So we want a strategic tuck-in, strategic partnership that basically is going to protect all verticals. It's going to increase our control from a pharmaceutical perspective, which all 3 verticals end up in increased profit margin, increased control of the product itself from a compliance perspective, from a product expansion perspective, Vahid touched earlier that we have some clients migrating now that have asked for other things, wonderful. So the future on that side is all about vertical integration, and we're ahead of the game on that. And we've announced, obviously, there are certain things we can't go into. But the company is in a very strong position. We obviously know what Q3 and Q4 from a numbers perspective has looked like. So that's why -- that's why this transaction from a convertible made a lot more sense. So the other side of it then is just if I zoom back out and it's the last thing I'll say, I know we've kind of gone over time here is the full end-to-end flow here and the way all of this is going, is individualized health care and accessible health care. What do I mean by that? Individual, get a test, at your house, at your home, at your office wherever, get results back in a timely fashion to some type of technology that tells you exactly that. Now there's an AI component. If you're not looking at AI, you're looking in the wrong direction at the moment as a company, unfortunately. There's an AI component that needs to be plugged in there to basically expedite the level of care, the predictions, the accuracy, what can be given and then tucked into your other technology. So that's something we're also looking at the moment and with a number of companies. That flow from individualized health care to almost immediate, accurate projections, recommendations to the telehealth, to the pharmaceutical health. That's the flow. That's the flow, whether it's a nurse in the mobile setting, whether it's self-administered at-home or whether it's in a bricks and mortar. That is the full end-to-end of where all of this is going. We've positioned ourselves pretty well, I would say, to now. And we are doing some vertical integrations at the moment that are basically just going to add on to what we already know. So again, I know we went over. So I just want to talk high level on where we're going.

I appreciate it, Shane. So on the same note, so we talk about like these acquisitions that is going to help you 2 things: one, our investments, with our margin and also with our revenue and volume. Now one thing that I mentioned earlier is how our existing business can create big value an asset for our business by having ownership in those. Forbes came up with how the compound pharmacy is going to be valued nowadays, especially if you have a turnkey to send the orders and manage the orders in full compliance, which is our technology and our corporate structure. That's something that no other players in the market have something similar to this. Now just to give you an idea, and again, for numbers, I want you guys to do your own research. This is based on a very high level. But like for example, a 503B pharmacy or 503A pharmacy, if you get in at the right time that the business don't have -- they have the structure, they have their compliance, they have 50 state license. It's ready to go. You're getting a devaluation of anywhere between like $50 million to $60 million or $70 million or $80 million valuation to come in to get a piece of that, because it's kind of a gold mine. When you see in the market usually those businesses, it will be valued at 10x of the revenue. Again, I recommend you to do your own research. This is high level based on our researches, but we do more details. But I just want to talk about the idea. Us putting our own revenue and our own pharmacy orders through that pharmacy and going at the $50 million, $60 million, $70 million, $80 million valuation and get the 10x multiple of that from the value perspective as an asset under the company you're looking at. And again, that we won't be the only client of that. But if you look at that, adding $50 million revenue from the pharmacy going through that, that is a $500 million business within 6 to 12 months. So again, the numbers can change. And again, I recommend you to do your own research, but that's the thought process. We're trying to create an ecosystem. We're trying to create a company that has assets, has technology, has customers, has compliance, has legal structure and it's an end-to-end solution to serve this market. To wrap up the call, as promised, we're going to do -- we're going to continue going around and talking to the right investors to share our story with them rather than spending money on onetime promo marketing that, again, there's nothing wrong with that, but we don't believe in that. We rather to focus on quality conversations. There are 3 events from now until end of October that we're going to go. Besides that, there are multiple events that we're going to from the medical perspective that we always talk with different similar minded people within the industry, and we actually talk to them. Now -- again, we pass the time, but there are a bunch of questions. We try to go to answer as many questions as we want in the next few minutes. But if anything is left, please feel free to send an e-mail to the IR and we'll be more than happy to answer. We're always very open and very grateful for all the feedback and all the discussion points and support that we're getting from investors, as we said before, by no means we're perfect. We're trying to do our best to bring the best value for the company, for our team, for our investors, for our clients. And this is -- again, this is a brand new -- and the third industry is a brand-new business that we learn as we move forward. We've done in our researchers. We created enough. It's already showing -- is already showing results. So I'm just going to go on a bunch of the questions and between Shane and I will answer that.

How do you see 503A and potential 503B acquisition impact, the targeted 20% to 30% margin figures you probably previously shared. So we already talked about the margin. We talked about the assets and all that. When are you going to NASDAQ? Has that process started? No, that process hasn't started it. We always say we want to graduate high school before we go to the master program. We have so much to do. We don't want to get diluted for no reason. We want to make sure from the -- we're ready to go to NASDAQ. That's the goal. That's what we're hoping to do. That's what we're planning to do. But right now, just the cost for the capital market side going to NASDAQ, we rather spend on the growth side. When we hit the real numbers that we have in mind within the next 12 months, that's the time to start looking at it. That's definitely part of our goal to go to do that, but we want to focus to master this what we do right now and go there. So yes, it's part of the plan, the process hasn't started it. Can you provide a high-level split revenue between the TRT, GLP, IV right now that is trending in the future? Shane, do you have those stats handy or you want us to send the release on that?

We can say, can you read the question again?

They wanted the split revenue between TRT, GLP and IV -- but it's a lot more than that. We have like right now, we have like over 55 products, and that was one of the things that I said about August. The orders is above the numbers that we're expecting. It's just -- it's so -- because we added so many products and a lot cheaper and a lot more expensive. That's kind of the value. But Shane, please free to add any comments on that one.

I'll just give 2 minutes. The IV is obviously administered by a health care professional. So that's on the first vertical with the nurses. And that's obviously one of the major services that are being done by those. The other third vertical, which is self-administered, there's over 45 treatments there. TRT is obviously one of the big ones, GLP-1, of course. And obviously, the peptides and sexual health and things like that. So the IVs wouldn't fall into that category whatsoever. But I would say pretty evenly spread between TRT and GLP-1 at the moment. TRT is huge.

Okay. You've been outlining a fairly aggressive growth trajectory on the monthly orders. Last 4 months, 100,000, 200,000, 300,000, 400,000 where do you see this trajectory picking? You have not shared any 2026 projection order. So all great points, as I said, we haven't seen any evidence for us to change our numbers that we had set as a goal. The 100,000 for September is again, with the numbers that we saw in July and August and June, we're not too worried about the next few months based on the numbers, but we'll continue updating the market on that. At end of September, we're going to work on our 2026 numbers. As I said, it's a brand-new business that got from 0 to about 100,000 orders within the first 3 months. So it's very aggressive. But again, I want to emphasize on the fact that the businesses that we secured with the existing orders is supporting our 2025. It's just a matter of us being -- doing a good job and successfully bringing them over to our platform at one of the stages coming over.

If I could just add in a little bit there a bit, and I hate to sound like a broken record, because I know a lot of people have heard me say this before, but we need to really always kind of go back to where we've positioned this company. The growth is in front of us. When we talk about our first vertical, there's 4.5 million RNs. We're talking about thousands that are on it right now. Our second vertical there's 150,000 that would fall into the med-spa nontraditional doctor office. We're talking about hundreds on there. The third vertical is untapped as we know, and we've obviously given some projections as to the current clients that we have. But when people talk about what are your projections. The projections are very hard actually at the moment, because we have positioned the company with a compliance mode that the future is looking fantastic. So we will give communication towards the end -- towards Q4 for 2026. But I know I'm saying this, but the growth is in front of us because of where we've positioned the company, and we will give us as accurate information as we can for our goals.

Great progress over the year, congrats to the team. How confident are you that the guided 1.3 million orders will be reached by end of the year. That will mean that in second half in every month, they must be 150,000 orders, thanks for the update. Appreciate the kind words. The goal that we set for 1.3 orders, again, we haven't seen any evidence for us to change that. But again, we're focusing on the trend. We're focusing on the trend more than just having one month for 500,000 orders and going down to 2,000 right? The trend -- we're sharing the trend, you can see the trend. We'll continue updating the market as much as we can based on the rules and regulations on the progress. You mentioned GLP-1 charges in the last webinar, but you can elaborate, can you provide the color to this? Shane, I don't know how much we can do because that's through one of our clients. But if you want to just add high level...