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

And this webinar is being recorded. So we will be sending it out to everyone, too, so not to worry if you do have to leave for whatever reason. And I think we can begin now as we do have most people in. If anyone else is joining, we can let them come in now. So I'll pass it off to our CEO, Shane Madden.

Thank you, Abbey. Welcome, everybody. So looking forward to going through the 2024 earnings. I'm going to pass it to Vahid first of all -- Vahid may be first of all, to go over some financing in the first few slides, and then we'll go back over some pertinent information.

Thank you, Shane. Thank you, Abbey, and thanks, everyone, for attending the webinars and opening this time in your schedule. I also would like to thank everyone in our team, our investors and partners that have supported us in the last few years. So today, we're going to talk very highly about the Hydreight for the people that joined us and don't know much about the Hydreight. We'll review the financial for 2024, and then we'll talk about the 2025, including the VSDHOne, what we're seeing today, the reason that we don't see -- we haven't seen any indication for us to change our goals for end of the year for VSDHOne and how we're approaching that. Please keep in mind that in our presentation today, there are going to be numbers, projections and figures that we're sharing that based on the best evidence that we see today and the projections that we recommend you to review our forward-looking statements as well. Now before I walk you through Hydreight, I would love to go back the last 3, 4 years and quickly summarize the journey that we have come so far. Hydreight Technology went public in late 2022 in one of the hardest time in the capital market from a small cap perspective. It has been one of the hardest time in the economy in the last 1.5 years for any business, especially in North America, has been one of the most challenging time when it gets to the medical and the pharmaceutical processes and regulations. However, we made it work. We had our heads down focused on the operation and the growth. Hydreight went public in December 2022 with the idea and the vision of creating the largest mobile clinical network in the United States, a network that has nurses, has doctors, has a pharmacy network and has a way for customers to be able to have access to all the medication treatments with no pain. Now when a business goes public or any start-up or small business, they usually focus on one thing to be able to create a value for the shareholders or have justifications for their valuation. They either focus on assets that they have valuable asset that is hard to replicate. It has a moat that they can't take it -- other people cannot replicate it easily, and there is a value for that. Or they're going to focus on that they have cash in hands or cash in the bank account that they can make bold moves with the cash in the tough markets. Some of the businesses, they focus on the past revenue and the growth records that they have to create a value for their business. And some of the businesses, they focus on the projected revenue and what's coming based on the market, based on the asset that we have. Hydreight has them all. We are -- in Hydreight, we're in the strongest position that we've ever been in the history of the company. When you look at the cash balance, we brought the company from less than $1 million revenue to over $20 million top line revenue last year with the cash that we generated through the operation for the business. Yes, there was a cash in the CPC when we went public, but most of that were used in the capital market side. So we spend money very responsibly on where they're going to bring the most results. Now besides the cash hand down we had, we finished a live offering of over $5 million offering, $1.55 that put our cash over $6 million, but now we're in the office. We're going to use that cash for marketing, for investment, for acquisitions that is going to help with our projections. When you look at from the market perspective, our stock is trading at an acceptable level that can be used as our second currency if we want to go after investments, if we want to acquire other businesses in the time that we see so many distressed asset with the good revenue and the good asset in the market. When you look at from the revenue perspective, we've been on this track that we've had 20%, 30% growth year-over-year without even having our third vertical kicking in from a revenue perspective. And if you want to look at from projected revenue, you can see what's coming from what we've built in the last few years and what's coming from our new line of product, which is VSDHOne. So when you look at this and then marry that with the industry that we're in it, that it's very regulated, so assets is hard to create. And more importantly, it's so behind from a technology perspective that create a massive opportunity for the companies like Hydreight that has been first movers into that and the capital market structure that is very tight. And we've been super grateful and lucky to have investors been supporting us along the way in the last few years. And our end goal is creating a company that worth over $1 billion by injecting revenue into the company. So when you look at that, we're in the strongest position we've ever been. When you look at this, the company has assets, has cash, has existing revenue and projected revenue that we're going to build on top of that. We can use the cash and our stock for acquisition, investment to create margin for the company, to use it for marketing purposes and hiring the right people that can help us and take us to the next level. With no further ado, I'm going to walk you through the story of the Hydreight. So Hydreight, as shared at the beginning, the vision was creating the largest mobile clinic network. The first verticals that we focused on was the nurses. The nurses that in the United States, in most of the states, it's illegal for them to work outside of the brick and mortar. We create an infrastructure that they can pay a subscription, come on board and start offering their services at home in your office or in the hotel. We grew that to over 3,000 nurses that have been coming on board with us in the last few years, and we're making it easier for them to come on board. We're going to talk about what's happening this year. After that, the COVID era, the med spa space grew really fast in the United States. But there was not many rules and regulation because of the COVID. When the pandemic was over, the rules came back. All these locations that were open they needed to have a turnkey solution that they just put it in place and they can connect to pharmacy, to a doctor network, to a medical direction and more importantly, to define the flow of every service. So we went back and tweaked our technology and created a white label solution for these franchises to bring them on board. Now, last year and the year before, we started focusing on a way for people to sell direct to the consumers in the most compliant way. And we came up with the VSDHOne virtual that the businesses can start selling directly to the consumers, any of the medications, any of the treatments that we have, without worrying about the operation. That was a new initiative and innovative solutions in the market that we got many different -- we got so many incoming requests to go live. And again, we've been tweaking many things, including the onboarding, but we haven't seen any evidence that we want to change our goal from the beginning of the year for the VSDHOne. We basically packaged from the PC network to a doctor network, to medical direction, to the pharmacy to offering to the patient-specific and mobile into one solution. More importantly, not only we're a Software-as-a-Service company, but also we're a 50-state medical company that we can easily offer these services. Now, when we started Hydreight, when Shane Madden, the founder, the original founder of the Hydreight had this vision in 2018 to create Hydreight, it was just an idea. Now it's becoming a top leader in the industry that we have to say with many boards, we have a new and innovative way for the pharmacies to start offering different services and creating a pattern for many businesses to be able to start offering new services. When you look at the revenue, our GAAP revenue from 2020, we went from $452,000, and last year to 2024, we finished with about $16 million. Our top line revenue went about -- from $1 million to over $22 million. As we projected at the beginning of last year that we want to have our focus to pass $21 million mark from the top line, become a profitable company, and get more exposure for stock. That was what we promised at the beginning of last year. We try to focus them on. Now the revenue has gone up year-over-year, and this is based on the first 2 verticals, which is the nurses and brick and mortar. With the same evidence that we're talking about what we've done and what we're doing right now, we're projecting and we're aiming to -- achieve another 30% growth mark from our first 2 verticals. That again, that by itself creating a massive value for Hydreight as a company with such market cap. Now the VSDHOne, which is the third vertical, is not even included in that. So, our revenue, if you look at the graph, we have a very -- with the same slope, the graph has gone up. So we don't see any reason to question the 2025 projections from the first 2 verticals. Now, when you're building a business, you have to spend money, especially business like ours that we have to invest in legal. We have to invest in research and development. We have to invest into our product management. So from 2020 to 2023, we had to reinvest into the business, but responsibly. We didn't take a $0.10 at the loan or we didn't do any financing at the lower -- prices in the -- from 2020 to end of 2024. We planned -- and we executed very responsibly to be able to create assets and revenue with the money that we have. So our EBITDA --adjusted EBITDA, which is non-cash payments is not included -- it was negative, and we had to invest to get to the point that we can start generating enough revenue. Last year, from Q2, as we promised, we tried to focus on creating a positive adjusted EBITDA, which we ended at 2024 with a positive adjusted EBITDA. And again, this graph is very healthy when you look at the SaaS model as long as you're not risking the existing shareholder position with the cheap financing or getting a very expensive money from the loan perspective, which we didn't, and we focus on creating value for everyone involved. Then we look at our cash flow from the operation that the money that was spent on the operation as a cost and not the investment that we made because some of the technology that we created it is going to go as an asset. It's going to go as an investment that we've done after being measured by the auditors that is sellable and there is a real deal. So, if you look at that also, we started focusing on a positive cash flow from the operations year-over-year. And now in 2024, we got to that point. Now our cash in hand by end of 2024, if you look at it, when 2022, we went public, we had some cash in hand and we started spending it very responsibly. But again, we still had enough cash end of 2024. Now in 2025, we did -- a live offering over $5 million at the price of $1.55 that put the company in a better position from the cash perspective to be able to make bold moves in the market that can be from investments into different units such as pharmacies that we can get better margin, investment into the business or acquiring business that bring more products, they can bring more IP or they can bring more revenue for us. So, we're putting us in a very strong position from the cash in hand perspective. Now from the revenue perspective, in the Q4, we had dip in -- compared to the Q3. We had quarterly over -- quarter-over-quarter growth. Q4, we had just a little bit of a dip. The reason for that was something that was out of our hand. So, we had a North Carolina hurricane that came around that time that because of the emergency, all the bags -- that IV bags that was produced by any of the pharmacies should have gone toward the emergency use. So automatically, that's not something that we deal with that on a day-to-day basis. We also have to be supportive to that. So, we had a -- our sales in month of October was a little bit lower. November, mid-November started picking up and December got to the highest again because of that part. But again, that was one of the reasons and the main reasons that the Q4 revenue was a little bit lower. But again, we made it to the numbers that we were hoping to get. Also, the other thing, last year, there was some concern about the tax provision that we had, sales tax provision that we -- as we explained in the market, that was not something that had been assigned by the government. That was something that our auditors felt maybe a tax -- sales tax component. But when you go to the medical board, it's super complicated. And most of the prescribed medicines and offering, it's not taxable. So, we started -- as we promised, we started a new project last year with a tax accounting firm and legal firm in the U.S. to review every single product, every single year, every single state that in Q4 2024, our provision was about $700,000. That went down to about $363,000, which was lowest than the 2023, even though our sales went up and was another year of the revenue being added, that's accumulated. We're still working on that project, and we believe that's going to be next to nothing. But again, that's something that we're working with the professionals to get that. We just wanted to add some color into that one. So that's the position that we have. We're trying to always -- we don't feel that we're there from being perfect. We're always open to feedback. We're always trying to upgrade our team, bring the right people on the board, as we announced earlier this week that can help us in many ends and focus on the end goal, which is the result, which is the over 1.3 million orders on the VSDHOne one way or the other, growing our existing business and making it easy for people to have access to. Last year, we were recognized for a bunch of different awards, including 56 fastest-growing company in North America by Fast 500 Deloitte, one of the fastest-growing company in Canada, Top 50 TSX Venture as well as one of the -- we were one of the only tech stock in that award. Mostly it was mining and resources because of the year that the tech companies have. So now moving to 2025, what we're doing this year and what is happening today, I'll pass it to the Founder, CEO and the Board member of the Hydreight, Shane Madden, to walk you through what is happening in 2025.

Thank you Vahid. That was a fantastic overview. So I'm not going to go over much old ground from a call perspective. A few things I'd like to touch on, I think, as they're going to be very pertinent to what we discussed here over the next sort of 10, 15 minutes is nexus point and offense, I think, are the key words here for 2025 for this company. And the reasons why are -- I think it's important to go back to where we founded the company from, and it's going to all tie into why we feel 2025 is the nexus point or the coming out party as I like to call it, in some regards, 2026, of course, as well. We founded the company because there was 3 ways that medicine was going to go in the U.S. It was in a completely reactive state. It was in a very poor situation. There was many factors. I don't like to harp on about the COVID scenario, but there was many factors that shine a light on that for -- a lot of the non-educated in a deeply educated sense in the health care industry. So there's 3 areas that was going. It was one in the direct-to-consumer, patient-specific product at home, telemedicine. It was going health care professional, giving a service in a remote environment and the non-traditional physicians' office. So health and wellness facilities, but they're not technically a doctor's office, but they have to operate within all the guidelines. That's the 3 areas that the U.S. health care system, which is a $5 trillion industry per year, of which, again, people have heard me talk about this a lot, 90% of that is chronic management, diabetes, obesity, lifestyle choices, essentially things that are preventable. So that's the direction it was all going. Now the reason I bring that up at the very start here as we talk about where this company is going and why we feel 2025 is a massive nexus point is we haven't had quite the stabilizers on the company, but we've been growing in a very structured manner as bigoted and overlay there. And we are certainly -- we've been reinvesting in the company from a tech perspective, from a legality perspective, from a compliance perspective because that's our biggest moat. At the end of the day, we're a 50-state medical company that had a vision that was a little bit ahead of its time. Even legislation, we're still ahead of our time in certain regards regarding states and laws and things like that. And sometimes you're just a little bit ahead of what's happening. A little bit of vision, a little bit of luck. Let's be real. That's what everybody needs in the business. So that's where the business is at. Now when we take each vertical, our nursing vertical, which doesn't get talked about too much because of the scalability of our third vertical and the growth potential there. It's not something that we are absolutely not focused on. We have been very, very focused on. But to Vahid's point, the structure of the company within -- internally with divisions and onboarding success management and all those things were very, very important. The reinvestment into tech to be able to leverage, and this is the key point here across all 3 verticals, to be able to leverage the moat that we created from a compliance perspective with tech as the medium. This was very, very important. And this has been the focus of the company for the last 2 years. The vision was sound, the execution was sound, and we feel 2025 is where we're going to be able to exploit the potential out of each of these 3 verticals. So to get into a little bit more specifics, our nursing vertical, we have a number of accelerators that we have been working on that are now coming to fruition. So for the first time in the history of the company, we have partnered with some carriers where we can -- the nurses can apply for financing for their subscription. So we all know our model is essentially a subscription model. The independent contractor, i.e., the nurse, joins our medical platform. Our moat is so high that they pay to be a part of that medical practice where they can monetize their credentials. So again, this is not a nice to have. This is a must-have because it's illegal otherwise. So allowing a nurse to not have that financial burden right away and be able to finance this over a 12 month and then refinance for the next year if they need to, is huge. So we are very excited about that. It is being rolled out this month. Obviously, there's quite a bit of integration to that, quite a bit of testing and so on and so forth. So extremely excited about that. In parallel to that, we're also working on the services being done on the platform. Up till now, our company has been very much an empowering type of model. So we have success department, success management that works with the nurses, helps them get their first services, helps them onboard, roll out, attract clients and there's a certain level of scalability that, that provides. This year, from a medical perspective, from a core corporate medical perspective, we're going to be able to promote different types of at-home tests, which will be the accelerator to client acquisition. So from a corporate perspective, again, for the first time in the company's history, we're actually rolling out nationwide marketing of a product, not just marketing that is very, very easy to fail, promoting a service in a state for involving a nurse. We're actually going to be promoting some of these at-home tests, which will be the first step of the client acquisition to start the care. So again, the results of those tests, the corporation can make money from the actual sale of the product itself. We're gaining a customer, we're introducing to the nurse, and the care kicks off from there. So those 2 accelerators are going to be quite significant. One thing that gets forgotten about, I think, on the nurse's side is we were first movers in this space. We're still first movers. We're the only company that has allowed nurses to essentially monetize their nurse's license. And we are the platform that is the go-to platform. There's 4.5 million nurses, specifically RNs. There's actually a lot more in different classifications than that. But specifically, RNs was 4.5 million in the U.S., of which 3,000 on our platform. So there is quite a bit of offense to be done here in this space, especially with those 2 accelerators that we just discussed. The second thing, again, is obviously around our franchise, white label. We built this very specific type of tech, again, that had compliance at its core to connect EMR, to connect doctor network, to connect medical direction, and pharmaceutical ordering. Obviously, franchises were perfect because each of them have to operate the same, and there's normally quite a number of them. So it makes a lot of sense on both sides. However, we're introducing a point of sale as well to our current existing tech that we have been adding to. The American Medical Association had documented that there -- was over 10,000 bricks-and-mortars in the U.S. as of 2025. So we, up to this point, had not gone on offense again, you'll hear me saying that quite a bit. A lot of our sales was inbound or through network connections, and we kind of specifically kept it around franchises. Now this opens up basically the entire bricks-and-mortar non-traditional doctor's office, tying it back to the original vision for all of those. As well as other connections, not only the monetary side of having a POS from the merchant processing to different types of areas and way to monetize it. It ties in kind of an all-in-one package where we can go to them with the mode of compliance, the medium of tech, the convenience of the doctor network, the power of the online pharmaceutical network that we have, so increasing their margins, all that stuff. And again, in 30 of the 50 states, this is illegal to do it any other way. So a huge thing that's going to be launched around August of this year, and we are in the process of a full outbound sales team and structure around that. So from those 2 verticals, we feel there's huge accelerators there. We're, again, very excited. There's been a lot of work that has gone into that over the last 18, 24 months. And again, these kind of projections of 30% year-on-year growth, I think, are very conservative even when it comes to our current organic growth. So that's the first 2 verticals. The third vertical, obviously, which is one of the verticals that are the most exciting. Again, we were the first mover there. The model, again, not to go over all ground and not to take up too much of the call on this, but the model was to create essentially a medical marketplace, okay, where we have leveraged our compliance structure across 50 states to allow businesses to either get in, expand or grow in any number of ways, their current business. So again, we wanted to focus on -- we were the medical company. We have figured out the moat, the compliance, the structure per state across 3 different areas: medical, pharmacy, and nursing. Obviously, this one is mainly around the medical and the pharmacy side in the direct-to-consumer space. This area has been glamorized by the Ozempic and the GLP-1 space, but it's much, much more than that and has been around for quite a long time. We are the first movers again to consolidate it into one platform to allow people to go in. And I'll go into the type of businesses again. We really wanted to add some details around this vertical on today's call because we're very proud of what we've created. We're very proud of what we've launched, and we see nothing so far that is going to impinge on our goals for 2025 and certainly 2026. So again, our platform there is one of a medical marketplace. We take away the liability. We bring in the seamlessness of a doctor network, medical direction in the direct-to-consumer space. So you see a patient, the patient sees a doctor, medicine goes out. And all of these, in almost every case, are recurring medication. In the case of TRT, you actually never come off it, male or female. In the case of the GLP-1s and the peptides, it's a 12 to 24 months, sometimes 36 months, and that can lead to other services as well. So these are ongoing recurring medications, which is, I think, very, very important to understand here. When it comes to the type of customer that we have on that per vertical, it varies. Essentially, 1.3 million orders is still our goal. We have -- communicated that, I think, with investors directly, indirectly conferences. And that again is from data that we see. So there's a few different types of businesses that are on this, and not all licenses are equal, and some of them have obviously got a lot more opportunity to do larger orders than others. So, a brand-new business. Technically, somebody who wants to get into this space doesn't want to have the hassle of finding a medical direction group, figuring out and becoming an expert in corporate practice of medicine, creating tech, malpractice insurance, finding a doctor network, all of these things -- pharmaceutical procurement, all of these things that are incredibly difficult. So we're the perfect -- we're the perfect plug-in for that. I'll get down to the kind of matrix table as to how this applies to each user type. But there's typically going to be subsets of this, but typically 3 sets of user types. The second one is existing businesses who want to get into the direct-to-consumer. So a good example of those would be the DRIPBaR Direct, who were already a client of ours on the second vertical, very much inbound in-person at facility services to increase the LTV of those patients and to offer additional services that they currently couldn't offer and the convenience of that and they launched DRIPBaR Direct, which is essentially VSDHOne. Somebody comes to the website, orders a direct-to-consumer product, and it goes from there. So I think even some of our investors from conversations that I've had have even ordered from that. So that would be a second type of customer. The third type of customer would be an existing business who is already in the direct-to-consumer space. But for a number of reasons, we're a perfect fit. So again, a lot of these businesses, and I'm not saying specifically this, but this is one of the things that comes into it. They launched during very relaxed laws. So they launched during COVID when times were much more relaxed to keep the healthcare industry afloat. Laws came back. They're just simply not structured to actually operate compliantly. So again, this is not a nice to have. It's a must to have in some cases. Other ones that are less serious, but again, apply just as much is outside of the corporate practice of medicine states. The other 20 states, they need to expand. They may be operating compliantly in 20, but not in all 50. They want to expand there. Other way is product expansion. They might be very focused on TRT or GLP-1 or specific peptide or at-home testing, but they haven't got the legal structure and the medical structure to go into other services. So again, there's not one reason. There's multiple reasons. And we're -- we're not a one-trick pony. We can integrate in many ways. We can start in different ways. We can start with the pharmaceutical procurement and move into tech. We've been obviously improving, as Vahid said earlier, our onboarding processes as time has gone on. And obviously, our goal is to have a more seamless transition because the interest in this particular vertical is incredible. So just to kind of go into a little bit more specifics, each user type has obviously slightly different challenges when it comes to going from becoming a customer, understanding the moat that we solve, to actually doing business. So starting kind of from the highest up. So the direct-to-consumer businesses, you'll see there on one of the slides that just across some of those types of partners that we have, they're doing almost 100,000 -- 150,000 orders per month currently. Now obviously, that's a business doing that. They're joining us for one of a myriad of reasons. We're either solving a few problems or one problem in particular, whatever. But at the end of the day, they're doing this business. So there's a few migration process, this one, I would consider more migration than onboarding. Obviously, there's an onboarding portion to it that can be done kind of in the background, but there's a migration process as well. That migration process can involve medical direction, the product itself as to what pharmacy it's coming from. Does that apply to 50 states? Or is it multiple pharmacies across 50 states? And again, because the prescriptions can be different for each product, i.e., every month, every week, every 6 months, every 3 months, there could be a different migration process to the prescription itself. So that has to be handled very sensitively. You won't have partners for very long if you're dropping orders during the migration process. On top of that -- so that client. Most time those types of clients already have LegitScript, are already pretty well set up. They're joining for more compliance and possibly margin -- profit margin pharmacy ordering, portal capability with a full team as opposed to trying to figure it out themselves. So there's a number of reasons there. So that migration is obviously really, really important. Other businesses, LegitScript, as most people on the call would know, is a -- it's a compliance for the social media advertising. So, if you are not LegitScript certified, you cannot advertise on social media in this space. You can do some educational marketing, but you can't do some paid marketing. Now VSDHOne is approved at an enterprise level, which means that this process gets expedited. But even expedition is 4 to 8 weeks. If you go on to LegitScript, you'll see that a new applicant can take 16 to 24 weeks is what they say, but I've seen it take up to 9 months. Most of them don't get approved either because 70% of the questions are based around medical direction, pharmaceutical partners, et cetera. So most of them actually don't get approved. So that's another moat that we have there. But again, that takes a little bit of time. Migration of the current business we talked about and then expansion of the product marketing. So depending on the business, which type of customer we're talking to, whether they're brand new into the space and have to come up with a marketing plan, get a foothold in that space, whether it's TRT or peptides, we have over 40 treatments right now on this direct-to-consumer platform, complete with policies and procedures that are just plug and play. They come on, they offer, added to their suite of offerings and off you go. We're going to grow that to 70, 100. Our at-home testing, which we'll talk about in a little bit, is going to be a huge accelerator for this because if we bring it all back, individualized health care is where this is all going, not direct-to-consumer for one thing that you think might work, tying it all to 360 health care, which is get a test, find out specifics about yourself as an individual, exactly what's wrong and what's the care from there. Now there is no platform out there that has the all 3 connected. So at-home test, you need a health care professional immediately to do an IV or a blood -- a blood test to further or something like that. You need to do it to a bricks-and-mortar nearby or you need a direct-to-consumer aspect. So we have it all tied from our 3 different verticals, but the at-home testing is going to be something that is going to be - you're going to be hearing a lot more about this from the DNA genetics side of things. So again, the marketing side of things, obviously, we have our own tech onboarding ourselves as well. So again, depending on the customer type, depending on whether they're doing business right now, depending on whether they're brand new or they're doing -- they already have customers and are expanding into the D2C side. Again, you can see roughly what they have to deal with from a going-live perspective. So we wanted to add some details to these types of businesses. I think it was very, very important to kind of showcase what type of customer we have, the moat that we solve, and what needs to be done to connect that gap from sign up to do business. And that's a lot of the reason that you'll hear us talk about Q3 and Q4 as being the inflection point here is we already have the direct-to-consumer business partners that are already doing essentially enough to do the entire goal, right? That migration process has to be handled very carefully. We also have other partners that we haven't even factored into the goal that have come on since like being Dr. Frank's, which is an expert in this area. Dr. Franklin Joseph himself was involved in writing the white papers for Novo Nordisk and Eli Lilly. It's a huge validation of our platform that a company like that who has done business in the U.K. for 15 years, other countries around the world had huge success in this program, decided to join us to figure out U.S. because it was so complicated. And again, that's one of our customers who would be essentially a brand new. So they just have to figure out marketing LegitScript. That one probably takes 2 months. So we launched that last week. So we're expecting them to see something toward the end of Q2 to be getting going. But again, even a customer like that wasn't even involved in our goals. So just kind of wanted to bring everything back around the 3 verticals. We talk a lot about the third vertical right now and rightfully so, but there is accelerators. In the other 2, there's been some tremendous investment and growth and structure across all 3. And that's why I say nexus point is 2025 and the offense from a -- from all 3 verticals is our goal this year. And that just doesn't apply into focusing on our 3 verticals. We're going to do some mergers and acquisitions, some partnerships to expedite on this. So, the company is in a transitional period. The growth that you see so far, I wouldn't consider growth in a sense that we've never had the 3 verticals in this position. This has always been the goal. And that's why you probably hear me sometimes talk about Q4 of 2024 when we actually announced the release of the third vertical and 2025, those are the nexus points for me. For this company, the completion of the vision of Hydreight Technologies and now it's about execution. So, execution is our big one this year. So, I'm going to pass it back to Vahid to talk about some of the average orders and margins.

Thank you, Shane. So, as we explained and showcased, we're -- we're still keep our goal as it was based on the evidence that we see, based on the existing customers that we brought on board, again, they have enough orders for us. It's just a matter of us moving them successfully on our platform. Now last time we talked about the VSDHOne, we talked about the average orders and margin. And we talked about the fact that the average orders that we're looking at about $100 to $150 from the average orders. Now because our catalog of the product has grown, now the average orders can be anywhere between $70 to $250. We have more expensive ones. Sometimes, we see some of these existing businesses coming on board, as Shane mentioned, because they want to offer more to the customers. Some of the customers and potential customers that we've talked to, they focus in 1 state or 10 states and they only sell in TRT because they don't have the structure to sell 3 other products or treatments. So, the average order's actually, it varies. And we feel as we move forward, that is going to go up because they all need a hook to get the first customers and slowly upgrading them, which we're going to talk about some of the things that we are adding to the platform to make it easier from the marketing perspective. When going from the margin perspective, our goal has always been to keep between 20% to 30% margin. We're still on that. Now when we're talking about the third category of the customers, the customers that they already have existing orders. The approach that we're taking is we're probably going to get a hit to start with to get their orders. We may take down our margin to a lower mark to bring them on board. Then we have the buying power that either we're just going to go and invest as we've been trying to find the right candidate in the pharmacy, so we get the preferred rate as owners that is going to add to the margin to go even higher than 20% to 30% or when we secure that many orders that is running through our system, then our buying power to the pharmacy is a lot greater than we can go and negotiate a better buying price. So, when you look at the graph, our goal is still to be profitable on the VSDHOne. Our margin may go down for a short period of the time for us to secure all these orders. After processing that, the next step will be either negotiating with some of these compound pharmacies through our network to get a better cost pricing to keep that margin, if not greater, or actually invest or acquire a pharmacy so we can start doing that. Just to let you know, we've been very active on that part. We had a few that through the due diligence, we decided not to because that industry and that market is a very sensitive market that some of these pharmacies, they come and go. Our business model is around the compliance and is around 50 states. So, it makes it very -- we have to be very sensitive and very precise by making that decision and partnering up with the right company. Now and lastly, we're going to talk about what's coming, right? What's coming from the product perspective, we continue adding more product and treatments. And when you're talking adding more product and treatments, it's not as simple as just adding it. When one comes our legal offer, our medical and legal team, our Chief Medical Officer, our doctor of the pharmacies, they have to get together. They have to come up with the policy and procedure per stated and per type of the customers. Then that will be passed to our tech team to start creating the flows, then we're just going to start offering it to our customers, educating and they can market them. So, we continue adding that. We're over 42 -- over 40 products and treatments as of today under VSDHOne. We're not only the GLP-1. We're not only just weight loss. It's all in one solution that people can pick and choose. Now one of the most important ones that we've been working in the last few months to add at-home testing around the genetic testing and DNA testing. Now, the reason that we're very keen to add that to our catalogue of offerings because marketing that is easy. If somebody receives a test at home, do the [indiscernible] -- send it back, they see the results and doctor sees that. Based on that, they will recommend a different treatments and different medications is a lot easier from a marketing perspective. We're adding at-home testing, genetic test and DNA test, and we want to make sure that we have a piece of the IP one way or the other, either by exclusivity, either by being a preferred vendor or owning it. And that's why some of our negotiation takes longer because we don't want to introduce a product to the market that our competitors can actually go and it's the replicate. Now, since the beginning of this year, as I said 2 of the -- the 2 strongest area that we have right now is cash in hand and the second is our stock price that it makes it easier for us to go on the offense for M&A investment. However, we don't want to just invest in M&A on anything and everything. We're putting a proper due diligent and investment protocol in place that we make sure the money that we put into it, we can get something back out of that, that there's a benefit for the company and for the investors. Obviously, getting somehow involved with the pharmacy as --as an owner, as a founder, as an investor has a massive benefit for the company because our margin is going to go up. We can produce our own product and especially with number of orders across the 3 verticals that we're securing is going to have a massive -- return for us. Now that's not the only area. We're looking at our areas from a medication and treatment perspective that we can have our own IP from the investment and M&A, from existing businesses that they can bring volume and again, continue working on the accelerator program that we created, that we had -- we've tried a few -- companies going through that to see if they can pass our milestones to be able to invest in them and bring them on board. And lastly is the marketing partnership. As Shane mentioned, in the last 3, 4 years, we focused so much on building and creating a platform and infrastructure that creates value for the customers and for the partners and our investors. Now it's the time for us to go on the offense on the marketing side. From helping our existing businesses with the D2C marketing offers and services to create our own marketing arm to help our nurses, to help our brick-and-mortars, to help our D2C customers that they need help with, and we can help them with those services and also for our own to have a proper marketing approaches. That's what's coming in 2025. Again, we are a big fan of transparency, and we would love to have more staff and info for our shareholders. The challenge that we have right now is the VSDHOne is in the verge of going into the market and the first year in the market. So there is no straight line, especially with the complication that is coming in the medical industry. So there's always new learning that we have to adjust our way. Sometimes orders coming as a pharmacy to start with then going on the tech, sometimes the tech and slowly adding to our doctor network because their prescription should be upgraded and renewed based on the medication. When we settle very similar to the first 2 verticals at this stage that this factory -- is a well factory that there is an input and output, we're going to do a better job in communicating with the different touch points from the KPI perspective that you can see it. Now internally, we have KPIs. from number of the licenses, from existing business that they already have orders, what it takes for integration that we're adjusting, we're watching, we're monitoring that. And that's basically our source to continue having some sort of goals and projections for end of the year that we're following. But as soon as the first group of the customers get settled and they get to the high volume that we're expecting, then it's going to be better KPIs that we communicated to the market. Now apologies that we went longer than what we should have. We just wanted to make sure to communicate anything and everything. There are a few questions. We can answer a few questions. And then if anything is left, please feel free to send us an e-mail. We would love to share more information as much as legally we can share with you guys to get your feedback on every area of the business.

I'm just going to go over quickly over the questions. If you license $500 product, you sell patients for $150, then if license price, they're talking about the profit and the average orders, which we already addressed in the presentation. I believe Hydreight would benefit an increased transparency among the institutional investors community, would Hydreight considering increasing the disclosure such as reducing your monthly orders booking numbers. Again, as I address this, that's the goal. We would love to get there. We already -- you have to understand we're a $22 million, $23 million revenue company, but we have only 20-plus team members. That's why we got it to profitable. We're trying to also scale our operations, and we're trying to get to the level that we can start offering all these staff. And yes, we're going to try to have these numbers more often send it to the investors. Are there any active efforts underway secure for -- coverage increasing? Yes, there have been 3 that they showed interest that they want to cover us, obviously, because of the way that they work with their independent. None of them is paid. They cannot disclose any timing for that. We're hoping to get them this year. But again, we've got soft confirmation from 2, 3 parties already. None of them are paid, and they showed interest both in U.S. and Canada that they like to cover us. How many clients are currently onboard and started using pharmacy? We have over -- I believe we have over 400-something licenses sold without one of them that is about -- that there's active members that we will bring them on board. Over 250 already onboarded in different stages of the onboarding that Shane mentioned, about 300 of those -- some of those stages. And we're seeing pharmacy orders coming in, but the pharmacy orders depends on other factors, including the renewed time of the existing patients, the doctor network and all that. So the volume may not be on par with what they have right now, and it may take time, as you saw in the Gantt chart to get there. So TSX uplisting the progress, we're getting a lot of requests and feedback both for NASDAQ listing and TSX. We want to make sure that we're ready for that and what is the best step for our investors. We want to graduate from high school before we're starting our master degree. When we're talking about going to NASDAQ, which I think that's the eventual goal because of the U.S. story base, we need to make sure from the finance team, we're ready. Right now, our cost for the capital market per year is about 400 -- $350,000 to $550,000 for audit, D&O insurance, legal, all that. Going into some of these exchanges is going to push that to over $1 million, $1.5 million based on our researchers that we've done. So yes, we're looking at all that, but we want to make sure to make this decision when the time is right and the company is ready to do that. To be clear, will initial margin be under 20% at the beginning? So it's a mix because some of these existing orders that are coming -- that combination over 150,000 order per month they already have, they're going to be below that. The new customer is going to be higher than that. So the cumulative percentage, when I feel after end of Q2 that some of these start going through, we have a better idea to do that. Is account payable responsibility of the company or licensees or product dropship from the manufacturer after paid product? Shane, maybe you want to answer this. Is accounts payable the responsibility of the company or licensees or the product drop shipped from the manufacturer after licensee pays for the product?

Exactly. Product gets drop shipped after getting paid.

And last question, what keeps Hims from doing what Hydreight is doing in D2C? Shane, do you want to address that?

Yes. Well, Hims has basically launched its own brand. So you've often heard me talk about instead of being a competitor, we are a marketplace to allow people to be their own version of Hims & Hers and Roman and Henry Meds and all these things. So it would be a monumental shift in their business model to actually go to now allowing other partners to be on their medical platform. And also Hims is very specific around 1 or 2 products. And so from a structural perspective, it would be a complete 180 in their business model. Again, we were first movers to do a marketplace -- a medical marketplace and with all barriers to entry solved to allow people to either expand or get in. So again, it's a similar industry, same industry, of course, but completely different viewpoints and completely different business models.

Thank you, Shane. Thank you all for attending the webinars. Apologies that we went 15 minutes over, but we thought it's needed for us to communicate all the details. At the end of the day, we're not perfect. We're always doing our best to do what's best for the business and investors. Our goal hasn't changed. We're going to focus on that. We're going to continue communicating with the shareholders as much as we can and trying to make that happen. As I said, it's not a straight line, but we're getting it there. We're in the strongest position we've ever been from the cash perspective, from the asset perspective, from a revenue perspective, existing revenue and projected revenue. And we appreciate everyone's support, guidance, and feedback. We'll continue doing our best, and we're hoping that we all can celebrate at the end of 2025 as well with everything that we're trying to achieve together. The recording of the webinar will be sent to everyone. Again, we recommend you to review our financial statement that is filed with all the disclosures as well as our forward-looking statements. Thanks again, and we appreciate your time.

Thank you.