First into the tank is an eco-friendly version of a household staple. Hi, I'm Sarah. And I am... And we're here seeking $270,000 for 2% of our company, Blueland. Wow!
Sharks! This is what an average household uses in one year in cleaning products. Any of these products, they're over 90% water, which means that you're overpaying for plastic packaging and a ton of water.
This is such a waste! Which is why we created our revolutionary, eco-friendly brand, Blueland. We've turned this into this.
So now your pantry can look like this. How does it work? Simply fill your bottle of water, drop in a tablet, minutes later, you're ready to get cleaning.
And our tablets come with a beautiful reusable forever bottle, so you never have to throw away another plastic cleaning bottle ever again. Together, we can eliminate approximately 5 billion plastic cleaning bottles each year. So, Sharks, let's save money and space without the plastic waste.
Bam! We have samples to pass out. So please take the hand soap. This one?
Yep, for you. And then take a tablet with that, too. Do you have anything with packaging?
Yes, we have a wrap tablet as well, and I can bring around more. Thank you. Is it one product cleans all windows and surfaces, or are there multiple products, multiple tablets?
Yes, so we have four products. We have a foaming hand soap, and we have three cleaning sprays. That includes a multi-surface cleaner, a bathroom cleaner, and a glass and mirror cleaner. So, Sarah, what do I pay for it?
Our starter sets, which include one bottle and one tablet, that costs $12. And our essentials kit, which includes one hand soap and three cleaning sprays, that retails for $39. And what's a refill cost? One tablet costs just $2, which is unequivocally cheaper than going out and buying a full new plastic bottle of cleaner. And what's your background?
Are you a chemist? I went to Harvard for undergrad. I majored in economics.
After that, I worked in private equity, and then I returned to Harvard for business school. But I actually ended up dropping out in my first year to pursue my first startup. So you're a total slacker. My first startup was a mobile shopping app.
And I ended up selling that to one of the world's largest shopping search engines at the time. That's impressive. And Saeed, what about you? I actually was born in Pakistan. I moved here when I was 10 years old.
I grew up here. My parents both passed away. Sorry.
That was a difficult thing. I'm the youngest of nine. I have seven sisters.
I graduated from University of Pittsburgh with my chemistry degree. Most recently I was a director of formulation at one of the world's largest non-toxic cleaning companies. We are all aware of the problem with plastics. We're trying to do everything we can to not destroy our planet before it's too late. What's your unique selling proposition or differentiation?
So, we have really formulated these products to be really, really effective. And again, I come from huge companies. We know I know how to formulate these products better than like the normal traditional chemist. Come on, Syed. So the premise is you have the one guy in all the world in chemistry that made a better product.
In the face of entrepreneurs, there's three important phases. One is the creative process, which you clearly have done. The second one is the critic. And the third is a crusader, the three C's.
That's great. The creative you've done. The critic, you need to be your own worst critic. You need to figure out what is it that Is your competitor to understand whether you really can differentiate yourself from the others? And then if you go through that second phase, then you go to the third phase and then you're the crusader and nobody's gonna stop you.
Yes. But if you like to skip the second phase, please explain to me what differentiates you other than you being a really great chemist? We have EPA approved third-party studies that show that our products were more effective. Laboratory studies. Laboratory studies.
We outperformed all of our leading competitors. Guys, how much money have you raised? So we've raised $3 million. What?
At what valuation? At the $13.5 million valuation. And who did you raise it from? A mix of venture capital, as well as successful entrepreneurs just like yourselves.
And you've been selling for how long? So we've been live for just over a month. We've done $200,000 in sales. Okay, that's not horrible. So today, we are 100% direct-to-consumer, selling online.
However, we are launching in a big box national retailer at the beginning of next year. I don't think I like that you have just one talent One tablet, one bottle. I think when you see tablets, you buy a bag of dishwashing pellets and you get a whole bag of them, like 36 in a bag.
So I feel like this needs a strip with it of a whole bunch of tablets. It's much more appealing to a customer that's looking at it. Listening to Lori, I realized that there's a piece of this she understands far better than I.
So I would propose, without consulting with Lori, that we invest a million dollars. Whoa. For 25% of the company. Whoa! If you're the only one in on it, I'm in on it.
And if not, I'll be in on it by myself. Every single mistake that you're about to make, we've probably made before, and we're going to be able to help you prevent those mistakes. And I really, really resonate with your immigrant story.
I came from Mexico. My father and my mother didn't have a higher education, and I was able to, from nothing, to be a part of the American community. build a pretty successful company, Kind, that is now in 300,000 distribution points in every retailer you want to be.
I think everything you've done is really brilliant. I'm a huge fan of Kind bars and I like your theory of the word kind. Why did you even put it as kind?
Because you wanted to spread kindness. You know why I put it on Kind? Because my father was liberated by American soldiers from a concentration camp. And in spite of a horrible situation, he always remembered not just the horrors, but the kindness that people showed to him and helped him survive. So it's an honor of, in the tough moments, always being kind to one another.
Oh, it's a great story, Daniel. It is very. I think you need a me.
I'm not happy to give them even more money. Are you in the deal or not? I think I'm going to change the deal if Daniel's interested.
I'm going to make you an offer that's probably more close to what you actually wanted to do. Because I don't think you're going to sell 25% of your company here today. All right. What I'd like to do is do 270 for 5% and I want 1% advisory shares. Because, frankly, I bring a lot to the table.
There's only one Mr. Wonderful. While you're mulling that over and while these guys are trying to take 25% of your business, let me tell you why I'm mad. The product is easy to use.
Changing consumers'minds? Super hard. I'm out.
Sorry to-Alright, we've changed our offer. We're gonna do $270,000 for 8%. Ouch.
Four and four? That's the offer. What are you doing, Mark? Guys, look, I don't think you really came here for a deal. You came for the commercial.
I'm out. But you still have two offers. My offer is $270,000 for 6% and the other is $270,000 for 8%.
What do you want to do? Two sharks are out. Sarah and Syed came in seeking $270,000 for 2% of their eco-friendly cleaning product company, Blueland.
Lori and Daniel have offered $270,000 for 8% and Kevin has offered $270,000 for 6%. What do you want to do? We can't give away that much.
You guys know as much as we do. Shocking. That it is critical for us to have a lean, high-growth business. Do you have a counter for any of us?
270 at 3%. Ooh, you guys really gave in. I would love the opportunity just to say one more thing.
In the theme of compromise, I'll go to 5% for the 270. We're not going down. It's like already too little. So Kevin. Yes. We know you like a good royalty.
We kept you at 3% for 270, but then we give you a royalty of $0.50 per kit until you make your money back. Done. Ha ha ha. Woo!
Oh my god! Oh my god! Oh my god!
Oh my god! Oh my god! Oh my god!
Oh my god! Congratulations. Oh my god!
Congratulations. Thank you so much. Oh my god!
Oh! Oh my god! Really excited. Oh my god!
Great job, Sarah. Good luck guys. Congrats guys.
Thank you guys. Thank you so much. Thank you guys so much.
Congrats. Thank you guys so much. Oh my goodness. Love it.
Oh my God. The way we were just started, I thought there was no way we were off limits. What a shot. Oh my goodness. There's a woman who understands me.
Next into the tank is what the entrepreneurs believe is a solution to a growing problem in America. My name is Barrett Jocks and I'm from Nashville, Tennessee. And I'm Krom Carmichael, also from Nashville.
Tennessee. The name of our company is Minus Cal. We're seeking $500,000 for 20% of the business. Damn. Now, 45 million Americans go on a diet each year, but the fact that 70% of adults are either obese or overweight means that something's not working.
We need more lettuce and fewer french fries. That's easy to say, harder to do, and it's always a lot less fun. That's where Minus Cal comes in, a science-based snack bar and diet tablet that block fat when you eat it. And how does MyScout block fat?
So imagine your digestive tract is a party. And our ingredient, the co-leave, is the bouncer. When the fat shows up at the party without an invitation... Co-Leave escorts the fat out of the party and out of your system, keeping you from absorbing those calories from fat.
It's that simple. Co-Leave is not a sketchy chemical. Co-Leave is a proprietary, all-natural blend coming from fermented tea.
That's our trade secret. And we're able to put co-leaves in a variety of delicious foods. Minus Cal is a great way to lose weight and to achieve better health. So Sharks, who's ready to have your cake and eat it too with Minus Cal?
Do we get samples? I'm gonna give them to you right now. Lori.
Thank you. Thank you so much. You're very welcome. Oh. Is this pill like in the Matrix?
That's right, one red one, one blue red, one blue. If you take two of those pills before a meal, it will help lowering cholesterol. I've been taking the product for about 12 years. Doesn't taste great.
What? Doesn't taste that great. Can you walk us through the Co-Leave again and what is it?
You spoke about it very fast. Sure. Sounds like that's the essence of your business. Yeah, Co-Leave is an all-natural ingredient that's derived from fresh green tea.
And what we do is there's a particular molecule, the active ingredient in green tea. We extract that and we increase the potency of that particular molecule by 20 times. So explain to me actually the result.
It'll do two things. It will help lower your cholesterol. We have a clinical trial that we did 12 years ago. It lowers cholesterol 17 to 20 percent. And then our chief science officer, he went back and looked at the test results when he said, the evidence shows that the people who took our product versus the placebo also lost weight.
And so we went to the University of Kansas and they came back to us and said, said what your product does as it works through the lower intestines as it leaves the body it takes about 100 calories worth of fat is there anybody that should avoid this product or is it safe for everybody it's safe for everybody it's all natural that doesn't necessarily make it safe for everybody but at the same time look guys you know i'm a skeptic on all this stuff you can't claim that it's going to reduce 100 calories out of what you eat by taking two pills we don't make that claim That's what he said. We are going to make the claim that it's going to block fat at a percentage dependent on the individual. Your t-shirts say, Minus Cal. That's the brand name of the company. When a consumer looks at it, what do you think he's going to think?
Minus Cal. Minus calories. Right. What is your strategy? What is your distribution?
The strategy is to make you think that this is going to reduce your calories. Let me ask my question. How long has this product been around? We just launched, so I assume you have very little sales, is that right? That's correct.
Guys, I'm stunned you guys are dealing and asking these questions. Do you guys really just invented this product out of nothing and gave it a name? What's...
Here, if my understanding is right... I'm trying to understand what I'm investing in, Mark. You have a bar that's high fiber weight. You have a bar, it has natural things in it.
You're saying... Mark, let me just say this. Mark, Mark, it's not air. Yes, it is. It's not a...
No, I got that. So you took green... Mark, let me say this.
Go ahead. I have the data to back it up. So listen, if you want to get out, get out. But you're wrong.
No, I'm not wrong. So listen, you took green tea extract, right? And you invented a product called...
No, it's not green tea extract. That's what you said. I said it's derived from green tea.
We take a particular molecule, we increase that concentration by 20 times. Because that green tea molecule can lower your cholesterol by 20%, right? Yes.
Everybody knows that. Everybody knows what. So listen, I find Mark's points potentially persuasive, but in my philosophy, the way I like to eat is ingredients you can see and pronounce, real food, and I feel nature over thousands of years has nurtured us in such ways that we can just eat the real stuff. Best of luck to you, but I'm out. Here's where I'm at.
$500,000 for 20% of a startup that has no revenue is way too high. You asked for too much. You made a strategic error.
I'm out. I don't know about CoLiv, and I know that it's... It's dangerous to claim that certain products will do miraculous things like not have fat stay in your body or whatever. So I don't like to associate with those things. I have no problem with you, but I'm out.
Look, I'm so frustrated. I have no idea. I really don't know what your business is.
I don't know what your strategy is. I really don't know anything. Mark, sometimes your level of arrogance really pisses me off. And I, Mark, can I, let me...
And I only say that you don't give people a chance. I wish I knew what their business was if you would let people talk. You know what their product is Robert? Your level of arrogance sometimes just surrounds the room and you're a great guy. I'll be respectful to you Robert.
I won't say it when I'm thinking. It intimidates people. It intimidates people.
And I'm just telling you I have... You might be 100% right. I just wish I had the opportunity to hear it.
I know how hard people work to get on that floor. You know what's even harder, Robert? And you don't give them a chance. You know what's even harder? I know.
Let me just say one thing, please. Neither one of us claimed that if you take this product, you'll lose weight. Look at your shirt! I said neither one of us said we would lose weight.
Look at your shirt! What does your shirt say? It says fewer calories, Mark.
Right, how do you lose weight? Wait, wait, may I please finish? We're not claiming that you're going to lose weight. weight we're saying that we are going to take some fat out of your body now I don't care what you say I know what my science is and you're wrong you're just plain wrong that that particular molecule that extract also will help you on your weight it won't It won't make you lose weight. What did you just say?
It won't make you lose weight. It will help you. Will help you lose weight, but it won't make you lose weight.
Actually, Carl, now you're pissing me off. Yeah. You're digging a deeper hole. And it's got nothing to do with me.
You're kind of losing credibility. You just said you're not losing weight. What does it say right here? I will stand behind the fact that the goal is to help.
Did you? Yeah, is to help people lose weight. I am happy to say that.
Okay, guys, I think we're done here. To everybody who's watching, Don't buy it. I'm out.
Thank you gentlemen. Thank you. Go in peace.
Thank you. Mark's never going to invest in a supplement. Millions of people take supplements. It's like saying to a personal trainer who says, I can help you lose weight, and then you hire him, and you don't lose any weight, that it was a scam. That's not exactly fair or logical.
Daniel, welcome to our very dysfunctional family. dysfunctional family. We need to get the crap out of these guys.
They deserve it. But it's fair passion. They deserve it.
It's not fair. That's my point. Take the green tea and cheers. Let's all hold hands.
Let's all hold hands. I don't want to hold hands. It's all about love.
Come on. Pink hug. Next up is a product that began as an elementary school project. Hi Sharks, I'm Cassidy Crowley. And I'm Lori Crowley, Cassidy's mom.
And we're from Honolulu, Hawaii. I'm seeking $50,000 in exchange for 50% of my company. Wow.
Sharks, I love to create and invent. When I was seven years old, My baby sister, Emily, would always plant her spoon. And my mom would always get worried that she might accidentally poke or stab her throat.
So I wanted to create a product that eliminated that long and sharp design of a traditional spoon. So I invented... The Baby Tune. The Baby Tune is a combination of a baby spoon and a teether all in one. The rectangular body makes it easy for babies to grasp and self-feed.
The Baby Tune is made of 100% soft silicone. There are no sharp edges such as gums on babies'gums, and it works great for teething. Sharks, all parents know that babies love throwing their spoons on the floor.
Well, we have a solution for this. Just put a pacifier clip on clip around the Baby Toon and attach it to the baby's shirt. No more baby spoons getting thrown on the floor.
But wait, there's more. What? The Baby Toon is made right here in the USA, and it was designed and created by me. So sharks, who's ready to take a bite out of the Baby Toon?
Together, we can bring Baby Toons to every baby in the world. Wow. Nice.
Good job, Cassidy. That was great. Oh my gosh.
So we have some samples we'd like to pass out to you, sharks. How old was Cassidy? I'm 10. She's 10. 10 going on 34. Oh, are we going to eat?
This one's for Lori. That's for me? Yep. OK. Should I feed Lori?
We brought from home. In Hawaii we have poi, which is a Hawaiian baby food. How did you come up with the design and what did you do to figure that out? So in first grade I entered a local science fair when I was seven years old.
Then we have... my sample if you guys want to see it too right here. Me too. Oh wow, so that's your prototype? Yeah, this is the one that I made in first grade.
Look at this. I mean, partially why I'm just very thankful I'm here is I want to show other kids that that they can be open to opportunities they have at school or even at home to create an event. I just really hope I inspire them.
It's a dream come true. So are you selling it already or is it? Yeah, we sell our products.
So since September of 2018, we had $5,000 in sales. Wow. Thank you.
What does it cost? Our total cost is $6.60. And you sell it for how much? We sell it for $15.
Good for you. Cassie, are you gonna be a superstar at your school because you run Shark Tank? Well, that's obviously not why I'm here. Oh!
You have a better answer. Oh, my God, I love you. Cassidy, it's pretty rare that somebody comes in here and offers us 50%.
Why did you do that? I mean, let's face it. I'm only 10 years old.
I need a partner. I mean, I still have to go to high school. I think you're more of a shark than we are. Cassidy, you've done an amazing, amazing job. I mean, it's incredible.
Thank you. To have started a business, to develop a product, to see it through, to make your way here. I mean, just, I can't even imagine what's next for you. The challenge I have is just, it's really not a fit for me. So, I'm out, but great, great job, Cassidy.
Cassidy, I've been doing little businesses since I was a kid. I can already tell from your presence, from your poise, from your... Grit that you're gonna go very very far.
This was three years ago, and you didn't give up you know Manufacturing can be very tricky. I find it fascinating that you push pull this up Well actually just recently we had to change a durometer silicone We're using so we had to lower it so change what change the durometer of so the durometer drop A durometer is how you measure the firmness of silicone. For example, if you have something that's a higher durometer, Who are you, lady?
If you have something that's a higher durometer of silicone, it's gonna be more stiff and hard. And if you have something that's a lower durometer of silicone, it's gonna be more flexible. Cassie, do you have a patent on it? Yeah, we have our patents right here, actually.
Wow. Cassidy, I am beyond impressed. I know you're not allowed to do this in the United States of America, but if in 20 years you want to marry one of my kids, I'd be very delighted. But in all seriousness, you're so impressive.
But I don't understand the baby space, and for those reasons, I'm out. Thank you so much. Cassidy, I'm torn because I don't feel that you're willing to quit elementary school. I can go straight to college.
Honestly, I don't want you to quit school. It's a little early. I'm out. Cassidy, this is a great product.
You just absolutely blow me away. You said you always wanted to go on Shark Tank, and I'm so proud if we had any part in your wanting to become an entrepreneur. So guess what, young lady?
I'm gonna make you an offer. Because I have to be along with this journey. I'm giving you $50,000 for 50%.
Wow. Lori. You have a deal. Congratulations. Yay!
That was great. Oh my gosh. Thank you.
You are just amazing. Amazing. I'm so excited.
Thank you. Bye bye. I'll see you soon.
Ashley, Ashley, before you leave, come up here. Sit in the shark chair. Oh, yes. That's where you're going. Let's see you.
How does it feel? Yeah, it's good. Cassidy, look at Kevin and say, you're dead to me.
Congrats Cassidy. Thank you. Thank you. Congrats Cassidy.
Thank you. Thank you. My gosh.
Can't believe we got a two. What's fascinating about Shark Tank is I have four kids. My youngest is six years old and she gets gluten to eat. It's very engaging.
Isn't that amazing? It's amazing. A burst into the tank is a way to bring I'm Amber Leung and I'm seeking $750,000 in exchange for 10% of my company, Circadian Optics.
Wow. Sharks, close your eyes and imagine you're inside a dark windowless room. Now open your eyes and picture yourself outside on a bright sunny morning with sun in your eyes. Since the beginning of time, the sun has risen in the morning and set in the evening. This is the cycle of life itself.
Just like diet and exercise, light is vital to our physical and mental health. We used to spend all day hunting. and foraging outside.
But today, all of us slog away inside a dark office all day. We're not getting enough light. This is disrupting our body clock and is making us tired and unhealthy.
But what if there was a way we could bring the sun right to your desk? Now you can with circadian optics. We make bright light therapy lamps that mimics the color and the brightness of the sun. Using this for minutes will help set your body clock for the day ahead.
It's a mini sun on your desk. Sharks, help us bring more light into people's lives. who's ready to turn on their day with circadian optics. Amber, what was your inspiration behind this?
So I'm originally from Malaysia, but I currently live in Minnesota. Oh boy, that explains right there, you've given me the answer. In Minnesota, you see the sun six months out of the year. But because I was working at a corporate job, I didn't see the sun 12 months out of the year.
And the lack of light was really affecting my health. I was feeling sluggish at work. I couldn't sleep at night. And I realized the importance of circadian rhythm and light.
So I bought a light therapy lamp. I felt better. in a couple of days, but the problem was my coworkers would tease me endlessly because of the design of it.
It was this big, white, fluorescent lamp that took a lot of space on my desk. It made me look like the crazy person in the office. So there was a gap in the marketplace for a light therapy lamp that is effective, but at the same time, stylish. You're putting a real valuation on the table, right?
Yes. My company is worth $7.5 million, and therefore you must have blockbuster sales. I do. My lifetime sales is $7.4 million.
I hate lifetime sales. What about the last 12 months? Can you give me annual sales, please?
Last year, I sold $4 million. Wow. That's fantastic.
Thank you. Are all of your sales online? All of our sales are online.
What is your average sale online? Average sale is $57.99. What are your margins, Amber?
My margin is 70%. So you've got to be making money hand over foot. I have been doing okay, but I have... So if you have 70% margin, you're selling all online, either you have ungodly returns or something really wrong.
So last year, I have made $652,000. What's this year going to be? This year, I'm projected to do $5.6 million. What are you going to make on the $5.6 million? I'm going to make...
$1.3 million with the tariffs accounted for. So you're making 20 plus percent margins per take, right? Yes, 25 percent.
Why do you need a shark? Yeah, so I am here because I am looking for a strategic... A partner that can help take my company to the next level. Right now, I'm a five million dollar company and I sell only online. That might be a good thing.
If I want to go into retail and it's a different, it's such a different ballgame, I want it to be worth the work. Amber, what is your backstory? My personal background, so I'm originally from Malaysia. I grew up pretty poor. I actually, the house that I lived in, didn't have indoor plumbing.
But I always had the dream of coming to America. I think too many episodes of Full House. And when it was time to go to college, I told my parents I wanted to come to America. And they said, okay, let's do this together.
They cashed out their retirement fund. They borrowed money from their family and friends to send me to school here on a one-way ticket and school fees and living expenses for one semester. But they gave everything they could to me.
So, like, that is how much faith they have in me. Um... Nine months after coming to America, I was diagnosed with toxic shock syndrome.
I was given a 50% chance of surviving, but my parents couldn't come because they didn't have an American visa. But I survived. That was a gift.
It gave me a new perspective in life. And it made me ask myself, what am I going to do with my one wild and precious life? So at undergrad school, I got a six-figure job. And I gave back. I sent money home.
And when I have enough savings, I asked myself, I want to do something courageous. I have to take a chance. So I had this idea. And...
I need to choose creativity over certainty. And that drives and motivates me every single day. How lucky and blessed am I?
Great! Thank you! You represent why we all do this show.
You represent to everybody in America, everybody around the world that watches this show, that it doesn't matter where you come from, if you put your mind to it, anything is possible. You represent everything great about entrepreneurship, the American dream. You are freedom.
So thank you for sharing that with us. No balls, no babies. Amen, baby. To me, with an entrepreneur, if you look at a field of dandelions, do you see a field of weeds? Do you see a field of wishes?
Right? I want to invest in people that see a field of wishes. And that's who I think you are.
I would like to help you. And to blow all your wishes all over America, this product. But I'd like another shark with me.
Okay. Okay. All sharks are still in.
Lori is interested in Amber's light therapy business, Circadian Optics. But she wants to partner with another shark. I would like to help you.
And to blow all your wishes all over America, this product. But I'd like another shark with me. Okay. Okay. And I am looking over at Mark.
So Mark, would you be interested in going in with me? Yeah, I'm open to it for sure. You would go in with me?
Yeah, of course. Well, why don't you hear what it is first? Mark and I need to have a conference for a moment. So what do you want to do? If I give you $750,000 and I'm an outside investor, an investor, I'm not an operator, how do I get it back?
So you will get it back when we scale. So I... You're going to give me 10% of distributions when you pay yourself? We will have that discussion, but I'm open to that. What do you need the money for? You seem so self-sufficient.
I'm wondering why you need any help. The $750,000 we're going to spend on inventory. There are a lot of things on social and.com.
Okay, we have an offer. Yes. And it's coming from the boss. Before they go in then, I think you're an amazing human being.
Thank you. Like your immigrant story I bond with in a massive way. I've taken risks, but not the way you did with your entire family's background on the line. So I take my hat off to you on that. Thank you, Rohan.
But I'm not seeing, honestly, the value that I could... could provide I'm out okay thank you Barbara and I will put our offer out first okay all right because I think we bring a lot to the table okay I think Laurie first because then they discuss longer so to be fair okay here's our offer mark and I are gonna give you the 750,000 for 20% because you got us both thank you thank you for the offer Can I listen to Barbara's and Kevin's offer? We're going to give you exactly the same offer. I look at this and say, we can probably help you double your sales very, very quickly and probably help you a lot in your manufacturing because I have a lot of products. We'll give an extra 50 for your parents who are unbelievable people.
They would cry! It's the same offer. I don't know about the parental thing.
Is that coming out of the $750 they're giving you? Or are you giving them an extra $50? We'll give them an extra $50.
Amber, you have to decide. No balls, no babies. No balls, no babies!
So... Okay. Hey, I know I should negotiate, be a good business partner, but I am here for Lori and Mark.
Both of you, you have a deal! Oh my God! That's awesome.
Lori! Lori! Thank you!
Thank you so much! Congratulations! Thank you, Mara!
Thank you! One of the best presentations. One of the best.
Thank you! Thank you very much! Congrats, Amber!
Thank you! I've never dreamed this big. I'm just a girl from a small town in Malaysia. I went to the bathroom in an outhouse. And now I'm in LA, fishing to the sharks.
If you have the chance and the opportunity to reach for your dreams, reach for your dreams. Next up is a quick boost of a life essential. Hello Sharks, my name is Rob Nooner, I'm the CEO and founder of Boost Oxygen. Hi Sharks, my name is Mike Grice, I'm the Chief Operating Officer of Boost Oxygen.
Oxygen is the most essential element for the heart, for the brain, and for the muscles to function. We've all seen supplemental oxygen being utilized by professional football players in the sidelines, by aviators, by mountaineers, and by many other people for many different purposes. Boost Oxygen! Boost Oxygen is 95% pure avianers breathing oxygen compressed into affordable and portable aluminum canisters. It's an all natural product for health and wellness, but it's not a medical device.
Our mission at Boost Oxygen is to make compressed oxygen as available as a bottle of water. And Kevin, if we sucked all the oxygen out of this room, we'd all be literally dead to you right now. So sometimes you want more. We believe that by partnering with one of you, we'll be able to reach millions of people who want to improve their quality of life and their performance.
So what we're going to do, we're all going to try the oxygen at the same time. So you take the mask, you put it under the nose and over the mouth, then you press the trigger. Right here at the top. Inhale it for a couple of seconds. We're going to do it at the same time.
So you ready? One, two, three. So what we're asking for is a $1 million capital investment for a 5% equity stake and boost oxygen. Whoa, whoa, whoa. $1 million?
I'm out. What are your sales? This year will be $6.4 million. Oh, my God. And are you profitable?
We are profitable. In 2018, we had $705,000 in net income. And how much will you make this year, you think? This year, we're going to make about $1.5 million.
Okay, really? Who's using this? We really started at altitude because it's an intuitive product.
When you go up from Florida to Vail and you go skiing and you're breathing hard, you see oxygen like, I'm going to try that. You try it and you like it. You use it when you're there.
When you go back to Florida and you're breathing hard, you're exercising, any time that you're breathing hard, your body tells you. telling you need more oxygen. Okay, so talk about competition, because I know the Mavs use a different type of canister than this. Yeah, we do have competitors, but what we're trying to do is we're trying to create a new space, a new market, a new vertical, because there is no oxygen vertical right now.
Very nice to hear, but where do you rank with your competitors? We have roughly 95% market share in the United States. Whoa. So what's the cost of this to the consumer?
$14.99, $9.99. $7.99 for the 2-liter. The cost is $2.05 to manufacture an aggregate for all of our different... All of it? How many hits do you get?
200 inhalations. Is this FDA approved? It's not FDA.
It's not regulated by the FDA. Someone here gives you a million bucks. Great. Now, what are you going to do with that?
First thing you do is... we're going to do is we need to expand our staff. We would like to have greater control over our sales force.
Right now we work with brokers, we work with distributors, we work with retailers. This is all retail? Yeah.
You really want to go to retail? Yes. Why not just stay the course online?
Sure. Because what I'm worried about is there'll be a lot of delistings in stores that don't turn this stuff. It's an impulse purchase. So the problem at the moment is the impulse purchase means I'm in the mountain.
I feel like I need oxygen or I'm out of breath, I'm going to impulse buy. That's a decent market. The great market are brands you have to use on a routine basis.
Right. My concern is you're trying to educate people on a problem they don't really know they have. And so unfortunately for that reason, I'm out. Okay. Okay.
Yeah. Appreciate it. I had an experience with your particular brand when I was in Utah with my husband, Bill, who has breathing issues.
I wholeheartedly agree with you that you need to do retail because I don't think people take the time to think let me order a supply online but as you've already learned it's a very expensive proposition. More importantly I saw a beach house last week that was exactly a million dollars and it was beautiful. What beach?
Oh it was cheap and I'm not telling you because you'll probably try to overbid me. I'd much rather have that beach house for the million dollars, so I'm out. Okay, I appreciate that. Even when I love people, I don't always feel like it's the right deal for me. Love you.
I'm sorry I'm out. Okay, thank you. I appreciate it. Guys, it's rare that we have a company come on that has 95% market share. Just doesn't happen so congratulations.
But in looking at the five of us, none of us took it and said, wow, this is a no-brainer. We all had to like, wait, do I feel anything? That's not good.
Normally I can come up with an angle for anything to get it on a ubiquitous path. I just, I don't see it. And so for those reasons, I'm out.
I'm gonna make you an offer but before I do I want you to take a big breath because you're gonna need it. Let's do it together. You're not gonna like the number and it's not gonna be equity that's for sure. I feel better about this offer than I even felt a few seconds ago.
So here's what it is. You have good cash flow in this company so you can support some debt. I'm going to give you the million bucks in a loan.
36 months, 3 years, okay? 9% interest and I want 7.5% equity. The great thing about being a shark is every buyer calls you back.
Always. So that's an offer that I think is a very good one for you because there's only one Mr. Wonderful. I don't know why you wouldn't accept that. I think it's a great offer. I'm still concerned about taking on debt when we don't need to take on debt, especially 9%.
But you asked for a million dollars. I have no choice but to give you a million dollars. It was more of a buy-in, though.
It wasn't really, it's like we don't need the cash. We need someone just to buy in. No shark up here is going to give you a million bucks for 5% because they never get their money back until there's an exit. We don't know when that's going to happen. You're allowed to counter.
Yeah. Or he'll pull it. Okay.
What are you talking about? I think it's a very valid question. Right, so we'll do a million for 6% of the, not 6%, sorry, the interest rate.
So the deal now is you're countering me, instead of giving me 9%, you want to give me 6, but I keep my 7.5%, right? 5%, for 5%. 5. Alright, because we're all reasonable, we meet in the middle. Okay. That's how we get this deal done.
So I'm at 9, you're at 6. Yeah. 7.5% interest, no problem. Above 10. And 6% equity?
6 and a quarter. Pretty sharp little numberonis there when we're cutting it down. I think the deal's reasonable, let's go.
Good, we'll take the deal. Thank you guys. I like it.
I appreciate it. He's gonna pick up coupons. He's clipping coupons.
We're gonna thank you. Thank you. Bye.
Good luck. Gonna need it. No, I'm kidding. Quite honestly, I was very surprised to be shaking hands with Mr. Wonderful talking about a million dollar deal. And the input that we received from the entire tank of sharks, it's gonna do nothing but take us from good to great.