Earnings call transcript: Hydreight Technologies Q2 2025 reveals growth plans

Hydreight Technologies Inc. (NURS) presented its Q2 2025 earnings results, showcasing a strong operational performance despite a 3.15% drop in stock price following the announcement. The company reported a Q2 revenue of $7 million, with a GAAP revenue of $5 million, and maintained a cash flow positive status. According to InvestingPro data, the company’s trailing twelve-month revenue reached $13.57 million, with an impressive 32.6% growth rate. The stock is currently trading near its Fair Value based on comprehensive analysis. However, the stock’s decline suggests investor concerns, possibly due to the absence of specific earnings forecasts or surprises.

Key Takeaways

• Hydreight Technologies reported Q2 revenue of $7 million.
• The company achieved a cash flow positive status in Q2.
• Stock price fell by 3.15% following the earnings call.
• Expansion into emerging healthcare markets continues.
• 77% increase in nursing license holders year-over-year.

Company Performance

Hydreight Technologies demonstrated solid performance in Q2 2025, with revenue reaching $7 million and achieving a cash flow positive status. The company is capitalizing on growth opportunities in mobile health, non-traditional healthcare facilities, and direct-to-consumer services. This performance aligns with broader industry trends towards personalized and self-administered healthcare solutions.

Financial Highlights

• Q2 Revenue: $7 million
• GAAP Revenue: $5 million
• Cash in Bank: $6 million
• Cash Flow from Operations: Over $200,000
• 77% increase in nursing license holders compared to Q2 2024
• 50% increase in pharmacy orders

Outlook & Guidance

Hydreight Technologies is targeting 1.3 million orders by the end of 2025, reflecting a strong growth trajectory. The company is exploring potential mergers and acquisitions in the pharmacy sector and plans to announce its 2026 projections in September. InvestingPro analysis indicates strong momentum, with the stock delivering a remarkable 1,561.9% return over the past year and analysts forecasting continued sales growth. The company maintains a moderate debt level with a debt-to-equity ratio of 0.22. A potential NASDAQ listing is also under consideration, signaling confidence in future growth.

Executive Commentary

CEO Shane Madden emphasized the company’s strategic vision, stating, "We want to be the Shopify for healthcare," highlighting their ambition to revolutionize the healthcare industry with innovative solutions. Madden also underscored the company’s commitment to executing its plans, saying, "Say what you’re gonna do and go out and do it."

Risks and Challenges

• Potential dilution concerns as discussed during the earnings call.
• Uncertainty due to the lack of specific earnings forecasts or targets.
• Competitive pressures in the rapidly evolving healthcare market.
• Regulatory challenges in expanding healthcare services across states.
• Economic factors that could impact consumer spending on healthcare.

Q&A

During the Q&A session, analysts inquired about the company’s partnership with Doctor Frank, the focus on growth over immediate exit strategies, and potential dilution concerns. Hydreight Technologies confirmed an even split between TRT and GLP-1 treatments, emphasizing its diverse product offerings and growth potential.

Full transcript - Hydreight Technologies Inc (NURS) Q2 2025:

Abby, Moderator/Investor Relations, Hydrate Technologies: Over the earnings today that were just released. So we’ll just give it a few moments while we let everyone join as I see people, still joining in the weight room. If you do have any questions, please don’t hesitate to put them in that q and a section. And we are gonna be keeping this webinar to that thirty minutes. So, yeah, we’ll we’re gonna 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 email at ir@hydrate.com. I’ll also put that in the chat section for you. And, just a reminder that we will be going over, you know, 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. The 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 laws. So for a full discussion of risk factors and uncertainties, please refer to, our filings that are available on SEDAR plus, under Heidrick Technologies there. And I will pass it off to Shane for you, our CEO, Shane Madden.

Shane Madden, CEO, Hydrate Technologies: Thank you, Abby. Hi, everybody. As the as the great Conor McGregor once said, say what you’re gonna do and go out and do it. So that’s how I would describe 2025 so far, especially the especially q two. 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 q two and some other exciting things. But q two essentially for me has been just an organic evolution of of of the first two verticals that we’ve talked about for a while. We’re we’re quite confident in, you know, the growth that we communicated at the start of the year on those verticals. We’ve established them very well. Our mode is very high, we’ve obviously extrapolated that into the third vertical, which we’ll talk about, which is the bell of the ball, the girl that everybody wants to date right now, VSDH one.

So high level again for anybody that’s new, Heidrick Technologies essentially attempted to capture three key areas of the health care industry in The United States. We came at it from a compliance perspective, building tech on top of three 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 shone a light on the need validated the direction of the company in many ways. Our first was mobile health and wellness, which is known as our Heidrate 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, myriad of services, but it’s true health care requiring oversight from a from from a medical director, physician network, access to 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 off to compliancy.

The third vertical, which, again, we’ll 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 the home for health care in that space, allowing a wide range of of different types of businesses, whether it was a business with large a amount of clients in the health in the in the the greater health and wellness space that just weren’t structured to be in med medical side of things or whether it was people who had, you know, structured their business, but structurally could only do a few treatments or 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 five, ten thousand businesses all operating on our medical network, our tech, our pharmacy through that third vertical. So high level, that’s that’s what Hydra Technologies is. The the overall market spend is 5,000,000,000,000 is everybody has heard me talk about. Today, in The US, 90% of that is what’s called chronic care management, which essentially means it’s preventable. And there’s only three 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 craze as I call it because two years ago, nobody knew what a GLP one was or a self administered service at home, even to extrapolate away from the GLP one space into the peptides and the sexual health and the and the and the hair care. Nobody nobody knew that existed. Now half of The US are are 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 three different areas of this of this $5,000,000,000,000 market, we’re positioned very, very uniquely because our mold is compliance. We’re not a nice to have in any of the three verticals. We’re a must have if you want to be compliant. Obviously, we’ve married that with tech to make to make the to make the, you know, connection with the customer. And, yeah, that’s that’s that’s where Hydro technology set out to go, and that’s where we’re there.

Q two, and I’m gonna pass it to Vid to go into some numbers right now, but q two for us was was for me, nothing majorly exciting there, but it was just more of a validation of the first two verticals, execution from the team. We’ve been putting a lot of work into into strengthening the the departments for growth, for the growth that we know is coming. I feel that was an excellent performance in q two and validation of of what we’ve done. So I’m just gonna pass it over to to Vahid for to go into some numbers.

Vahid, CFO/Financial Lead, Hydrate Technologies: Thank you, Shane. Hi, everyone. I appreciate everyone joining the webinar. As promised, we we tried and we did file earlier than, yeah, you know, before before end of the period that we had time to do and set up a, you know, earning call right away to provide updates. Before I go to the q two, I’d like to, you know, walk everyone through the trend, the trend of the business.

Because when you were talking about the SaaS company and, you know, as a software as a service that has recurring revenue, trend is a lot more important than having revenue from point to from one point because you may do a great q two or q three or q four, 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 few years before that to create the such infrastructure and framework to be able to do that. The first two verticals that we had, you know, took us from about a million to last year, our top line revenue, about over 22,000,000. Now we didn’t have the third vertical last year.

I’d like to remind everyone, the VSTH one that right now is in in 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, and multiple different dependent factor, doctor network, medical directions, pharmacies, and all that. Not only it’s it went live, but also is generating revenue, real revenue for the business that is helping, the the the the the the revenue of the business goes in in a 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, such infrastructure and technology, but also is in action and is working. When we started this year for the first two verticals, we’re expecting and projecting, based on the evidence that we had in hand, that we’re gonna have about 27 and a half percent growth in our base with our first two verticals that would have shown the graph like this.

That, again, it’s based on the historical data that that were going on. At this in in the meantime, 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 a technology and update the technology without borrowing any money, without, you know, raising any money after going public. To be able but at the same time, we’re looking at our bottom line to see it’s gonna be a positive, to be a real business. We could achieve that in 2024.

And in 2025, we continue doing that in in not only in the adjusted 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, the next quarter, you go up. Then when we walked into the 2025.

We walked into 2025. We had a very strong q one. We we surpassed our projections from the revenue perspective. We could end up being gap positive. We finished a life offering successfully at dollar 55¢, have enough, you know, cash in the bank, and then we walked into the q ’2.

Our goal at the beginning of the q two that was communicated with everyone, you know, when when we send 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 a genetic test into our offering, and then also looking at some tuck in acquisitions or investment. The investment that is purposeful is not an investment that just for sake of doing the investment that we’re gonna do that. An investment that is gonna help either with the revenue or with the margin. If 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 on the LOIs and not completing that.

We send a binding LOI release out around the May, but that was after, I would say, handful of converse 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 q two. The q two, with that focus, we continued having the same growth. We could have you know, we we achieved we surpassed the growth percentage that we’re looking for. Not only we focus on the VSDH one 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 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 one module or two modules, at the end of the day, bringing them through and and and serving their customers. So all that was was was learning, but we grew as we and met the expectations that we had as we learn and we as we adjust. Q two, we finished to the strong. Our our revenue was 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 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 gonna add more coloring to that and the reason for that. So q two from the gap perspective, we’ve we had about 5,000,000 revenue. Our top line was about 7,000,000 revenue. We, you know, are cash flow positive now.

In q three, we’re investing heavily into the company on some of the areas that is going to expedite the growth of the company and the VSTH one in q three and q four. We had some major hire that we brought on board, people that they have a 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 forty five days to create our own marketing agency as a subsidiary in the Hydrate to help every single business that goes on the VSTH one that they need the marketing help. That’s the biggest challenge that we see they’re dealing with. We invested it heavily into the technology, and we’re constantly adding more.

We made it modular. We’re adding more features. New versions is coming out. We invested it 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 q four, we achieve the numbers that we’re looking for with the acceptable margin that we go through it. So our cash flow from the ops was over 200,000, cash in the bank, about 6,000,000 that, again, it’s we’re gonna 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 our expectation from the company from the perspective that we’re gonna change, you know, the the the numbers that we’re hitting. But based on the trend that we have in the q one and q two, just with the first two verticals, the trend is gonna show the yellow and the gray line that is gonna be higher than what we originally started at the year with, that we’re gonna continue doing, you know, focusing on that, and we try to even surpass that in q three and q four.

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, you know, three to five months going live, helping them to go live within thirty days. There were so many things from the service perspective that we try to improve that is paying off. In q two twenty twenty five, 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 two or three other nurses to deliver the services.

The license holders, we went up by 77% in compared to the q two twenty twenty four. And that train is continue going up. That it helps with the pharmacy orders. That helps with the services orders. That helps with our reach across 50 states because the the the the nurse network is not only from the revenue perspective.

We created that as part of our mobile Clinica network that creating a white glove service for some of the second and third verticals that we haven’t put it in place that is coming in q four and is gonna make it easier for everyone to deliver those services. The pharmacy orders that from our our second vertical, which is a white label, has gone up by almost 50%. Now if the nature of the pharmacy, sometimes you see the 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 pharmacy 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 on creating the revenue from every three 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 compliancy and tie it to the IP that our far our doctor of the pharmacy, our chief medical officer, they put together these dosages. They put together these IPs that is is is produced for only for our own clients.

In the VSD h one, when we started at the VSD h one, we’ve grouped our customers into three 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 sales, and the and the customers that they come with ready to go orders. Those group 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 it 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 into everything, go through it, and 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 even count on the first two as those two are growing as well, creating a marketing agencies in the support of the first two to help them to grow on all that. Within the June, July, August, internally, had, you know, a a matrix that we’re gonna hit to between 70 to 80,000 range within the first three months. The first month, we hit the numbers. We surpassed the numbers. July, we hit the numbers, surpassed the numbers.

We went over, you know, 42,000 orders. August, same thing. We fulfill the range that we have and surpassed that. The August, know, starting late 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 surpassed it by we’re surpassing our goals from the product sales perspective, but we’re taking time to wait until end of the August to to qualify them from the 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 number of the orders. We’re focusing on the revenue, secondarily, after the 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 you get this wheel turning next year and the year after and the year after, this is gonna be accumulated. Now for and we’re gonna continue doing that in in September. Just to for you to know the focus of the company, Shane Madden, the the CEO of the company, he his main focus himself directly working with the team and the top customers and the pharmacies on the VSDH one because the business is there. We already secured enough businesses to help us to get to our numbers and surface 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 wanna 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 personal personalized genetic test and wellness that ties to our vision later. We’re gonna talk about that on the acquisition side that 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 with with the analysts, with the banks, with with the investors that we have behind us. We’re not spending money on the typical promo marketing to just give it a hype. We take our time to spend time with the investors, Shafin, Shane, you know, everyone in the team try to meet new investors, our story. Now from every three investors, maybe one of them will be interested on our story, but at least their investors then, you know, they they they we fall within their thesis.

We’re gonna continue doing that as as you remember for those of you who worked with us for past two years. Last year, we didn’t spend much time on that. We’re focusing on building a business. We promised we’re gonna do it this year. We’ve already done that.

We’re sharing our plan for rest of the quarter on different events that we’re gonna do, different investor conversation that we’re gonna go. So that’s that’s where we are. Now we launched a 10,000,000 convertible. Business is profitable. You have 6,000,000 in the bank.

Why do you need this convertible? It’s a very good question. But, again, sometimes because we’re we’re a publicly traded company, it has a lot of advantages. But trust me, they have some disadvantages. We cannot share everything going on in in our head and in the company, and we have to follow the rules and regulations of the exchange and regulation 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 it come into the business. If a dollar into the business can lead to $10 in the business in the twelve months, twenty four months, or thirty six months, it’s a it’s it’s based on the evidence, it’s a good decisions that that we can take. So right now, based on number of the orders that we’re getting on, BSDH one across three verticals and based on different pieces that we can see how quickly can help with the revenue increase and margin increase, there are many investment and acquisition and and and and growth drivers available 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 have been filed, the business from operational perspective is not bleeding. We actually have enough cash in the bank, and we keep adding to it. But we’re we’re looking at this in a long term, and we’re looking at this as a bigger picture, how we can again, based on the best evidence, based on the 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, you know, other banks and other firms is helping us with that, you know, through through the whole process. And and, again, I think the closing is is next week that we’re gonna do that.

I think it’s September 3, but please go back to the to the press release for more details. Now we focused on potential m and a and investments since late last year. But, again, we don’t wanna just spend money, even our shares on something that is not gonna add value. There are six five or six areas that we’re looking into for investment and acquisition. Pharmacy five zero three a, pharmacy five zero three b.

Shane will add more more color into that. But has two parts. No. 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 add value from the revenue and and profit perspective in our balance sheet. Why not using the same the very same orders and creating the assets in our balance sheet, creating an asset for our company?

This is our orders that is going through. Yes. We make money off them. 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 five zero three a after like, again, I was at at least eight or 10 serious conversation and handful of advanced conversation within those, we found the right group. We signed the binding LOI. We extended it the outside of outside it by five days because we’ve done a very extensive due diligence on on the whole thing, and we’re closing it. And we pushed it by five days, which is, I think, early next week to to to to finalize that and then start on the five zero three b side of it with them. The technology side, we wanted to have a prescription software, which we achieved that with the number one acquisition that we announced through the perfect script.

That is that ties to our point of sales and also cornering the brick and mortar. Well, Shane will add more more detail into that. Point of sales, we’ve been talking about this. We have all these brick and mortars 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 it’s gonna add a new revenue stream for us, which is the payment processing that we already secured the agent licenses to be able to to do the 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 on the technology side. AI is a cliche word 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 the genetic test was tying it to this one and also treatment plan. Again, Shane will add more colors into that. And, also, we wanna have medications that we’re gonna put on our pharmacy and we own the IP. So these are the areas that we’re focusing that the 10,000,000 convertible and also supporting this from the operation perspective and supporting the existing growth is gonna be used. From the technology perspective, we have started it working on all these three internally.

But if we find an opportunity that is gonna fast track this one, that is gonna 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 I go any further into our 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 updates.

Shane Madden, CEO, Hydrate Technologies: 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 q four of last year of the release of our third vertical. We hope to have put it across, you know, very well in previous meetings as to the migration plan, the challenges from moving people from one medical company over to another and and and q three and q four. The reason I said I was you know, there was nothing overly exciting about the first two verticals is because we we essentially knew where where those verticals were and and and what the company was gonna do.

We’ve been we’ve been talking about the third vertical for quite a while, and and the party has officially started in q three, and it’s gonna continue to grow. And we’re very, very, very excited about the execution that the that the team has done. But the first two verticals also have accelerators coming that are all feeding the same. Because remember, the ecosystem is the entire health care industry. I talk about three different areas, but there’s a lot of synergy below it in terms of everything ends up in the pharmaceutical.

So we have two distinct accelerators in our first two verticals. The nursing, we already released, obviously, some notes about financing and things like that that has helped, you know, boost. We haven’t we have a a version two coming of that, which is quite dramatic. Again, it’s it’s it kinda showcases our position in the industry with some of these very, very large banks and and and and the the history of the company and the support. So there’s a lot of good news coming shortly on the nurses, which is gonna 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 three verticals to help with scale, to help with automation, to help with the, you know, the the volume that we know is coming, and we’re in middle of migration and a lot of it. But we have a hardware addition to our fully digital offering for our for our second vertical that’s gonna be released in q four. 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 basically spearhead that, and we are going to essentially try to try to capture a a very large portion of that market, which, again, is just an addition to our existing bricks and mortar offering, but it offers a lot more in terms of control of the pharmaceutical, of the telemedicine, etcetera.

So that’s an exciting one that we’re really excited about. Obviously, the third vertical then is is is what we’re currently, you know, migrating businesses, giving updates on 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 q four of last year wasn’t projections, essentially. It was goals for the company based off of the businesses that we knew were coming on the third vertical 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 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 isn’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, you know, pharmacy.

So the a can dispense across the across the various states. The b, however, is the is kind of the bulk creation and, obviously, the the $10,000,000,000 industry that you see there by 2033 that Forbes that Forbes, you know, predicted. That is controlling all of the three verticals. So we want a strategic tuck in strategic partnership that basically is gonna protect all verticals. It’s gonna increase our control from a pharmaceutical perspective, which all three verticals end up in, increase profit margin, increase control of the product itself from a compliance perspective, from a product expansion perspective.

We had touched earlier that we have some clients migrating now that have asked for other things. Wonderful. So the future on that side is is is all about vertical integration, and we’re ahead of the game on that. And we’ve announced, obviously, there’s certain things we can’t go into, but the company is in a very strong position. We obviously know what q three and q four from a numbers perspective has looked like.

So that’s why the that’s why this transaction from a from a convertible made made a lot more sense. So the other side of it then is just if I zoom back out, and this is the last thing I’ll say. I know we’re kinda 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 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 the, you know, the level of care, the predictions, the the accuracy, what can be given, and then tucked into your other technology.

So that’s something we’re also looking at the moment with a number of companies. That flow from individualized health care to almost immediate accurate projections, recommendations to the telehealth, to the pharmaceutical itself, that’s the flow. That’s the flow whether it’s a a nurse in the 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 to what we already know is coming.

So, again, I know we went over, so I just wanted to talk high level on on where we’re going.

Vahid, CFO/Financial Lead, Hydrate Technologies: I appreciate it, Shane. So on the same note, so we talk about, like, these acquisitions that is gonna help with two things. One, our investments with our margin and also with our revenue and volume. Now one thing that I, you know, mentioned earlier is how our existing business can create big value and asset for our business by having ownership in those. Forbes came up with how the compound pharmacy is gonna be valued nowadays, especially if you have a turnkey to send the orders and manage the orders in full compliancy, 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, you know, based on very high level. But, like, for example, a five zero three b pharmacy or a 503 a pharmacy, if you get in at the at the right time that the business don’t have they they have the structure. They have their compliance.

They have 50 state license. It’s ready to go. You get in at the valuation of, you know, anywhere between, like, 50 to 60 or 70 or 80,000,000 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 a value that 10 times of the revenue. Again, I I recommend you to do your own research.

This is high level based on our researches, but we do more details. But I just wanna talk about the idea. Us putting our own revenue and our own pharmacy orders through that pharmacy and going at the $50.60, $7,080,000,000 valuation and get the 10 times multiple of that from the value perspective as an asset under the company, you’re looking at, you know, the and and, again, that we won’t be the only clients of that. But if if you look at that, adding, you know, 50,000,000 revenue from the pharmacy going through that, that’s is a 500,000,000 business within six to twelve months. So, again, the numbers can change.

And and, again, I 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 compliancy, has legal structure, and it’s a end to end solution to serve this market. To to wrap up the the call, as as promised, we’re gonna do we’re gonna continue going around and talking to the right investors to share our story with them rather than spending money on one time 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 three events from now until October that we’re we’re gonna go. Beside 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 we’ll be again, we passed the time, but there are a bunch of question. We try to go to answer as many questions as we want in the next few minutes. But if anything’s left, please feel free to send an email 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 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 as we move forward. We’ve done enough researches.

We created enough. It’s already showing it’s already showing it’s already showing results. So I’m just gonna go on bunch of the questions, and Difeun Shane and I will answer that. How do you see five zero three a and potential five zero three b acquisition impact that target 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 yet. 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 wanna make sure from the we’re ready to go to the 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 just the cost for the capital market side going to Nasdaq, We’re added to spend on the growth side. When we hit the real numbers that we have in mind within the next twelve months, that’s the time to start looking at it.

That’s definitely part of our our our goal to go to do that, but we we want to focus to master this, what we do right now, and and go there. So, yes, it’s part of the plan. The process hasn’t started it. Can you provide a high level speech revenue between the TRT, GLP, IV right now that in trending in the future? Shane, do you have those stats handy, or you want us to send the release out on that?

Shane Madden, CEO, Hydrate Technologies: We can send can you can you read the the the question again?

Vahid, CFO/Financial Lead, Hydrate Technologies: They want a 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 thing that I said about August. The the the orders is above the numbers that we’re expecting. It’s just it’s so because we added so many products, some a lot cheaper, some a lot more expensive, that’s kind of the various.

But, Shane, please feel free to add any comments on that one.

Shane Madden, CEO, Hydrate Technologies: I’ll just give two minutes. The IV is obviously administered by a health care professional, 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 one of the big ones, g o p one, of course, and obviously, the peptides, sexual health, things like that. So the IVs wouldn’t fall into that category whatsoever.

But I would say I would say pretty evenly spread between TRT and GLP one at the moment. TRT is huge.

Vahid, CFO/Financial Lead, Hydrate Technologies: K. You’ve been outlining a fairly aggressive growth trajectory on the monthly orders. Last four months, 100 k, 200 k, 300 k, 400 k. Where do you see this trajectory peaking? 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 we set as a goal. The 100 k for September is 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 based on the numbers, but we continue updating the market on that. At at September, we’re gonna work on our 2026 numbers. As I said, it’s a brand new business that got from zero to about 100,000 orders within the first three months.

So it’s it’s very aggressively. But, again, I wanna I wanna emphasize on the fact that the the businesses that we secure with the existing orders is supporting our 2025. It’s just a matter of us being a doing a good job and successfully bringing them over to our platform at one of the stages coming over.

Shane Madden, CEO, Hydrate Technologies: If if I could just add in a little bit there, hit it. 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 we need to really always kinda 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 4,500,000 RNs. We’re talking about thousands that are on it right now.

Our second vertical, there’s a 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, you know, when 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, you know, the the the future is is is is looking fantastic. So we will give communication towards the end of you know, towards q four for for 2026.

But I know I’m I I know I’m I’m always saying this, but the the growth in front of us because of where we’ve positioned the company, and we will give as as accurate information as we can for for for our goals.

Vahid, CFO/Financial Lead, Hydrate Technologies: Great progress over the year. Congrats to the team. How confident are you that the guided 1,300,000 orders will be reached by end of the year? That will mean that in second half, in every month, there must be 150,000 orders. Thanks for the updates.

Appreciate the kind words. The goal that we set for 1.3 orders, again, we haven’t seen any 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 two two two thousand orders. 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 regulation on on the progress. You mentioned GLP one churches in the last webinar, but you didn’t 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 wanna just add high level

Shane Madden, CEO, Hydrate Technologies: What was what was the first part of the question? I heard GLP one.

Vahid, CFO/Financial Lead, Hydrate Technologies: You mentioned GLP one to churches in the last webinar but didn’t elaborate. Can you provide more colors this time?

Shane Madden, CEO, Hydrate Technologies: Yeah. Well, I can I can give a high level because, again, it’s it’s it’s a client on the third vertical that has a unique relationship with with a ministry across The United States that has a tremendous following? So they they’re a perfect example of of of of a client that is not structured for medical, but has a large following. They’re in various stages of of of launch. And, yeah, we can provide more color, I think, in the coming weeks, actually.

Vahid, CFO/Financial Lead, Hydrate Technologies: K. Shane and the team, three questions. How are large partners onboarding going unlike doctors Frank? Just to let you know, our our large partners, doctor Frank, is not one of The large partners that we’re talking about are the one who already have orders. They’re already processing forty, thirty, 25, 100,000 orders a month.

Doctor Frank is a big brand. It was it took us a while to bring him on board, but they’re starting from scratch in The United States. So we don’t look at him as a as a as as a large partner. The doctor Frank’s, Shane, do you wanna provide there are three questions. So that’s that’s that’s one of them.

Shane Madden, CEO, Hydrate Technologies: They’ll eventually be a huge partner with their experience in this space. And, obviously, they’re a large company, so they have a large marketing budget. But, again, The US is new to them. That’s that’s obviously one of the reasons they wanted to join forces with us. So, yeah, they’re they’re kind of they’re logged.

They’re onboarded. They’re ready to go. They’re basically just fleshing out their marketing strategy. Do they want to go with a certain number of services and then branch out, or did they want to go across multiple categories right away? So that’s where they’re at.

But, again, coming weeks, I believe they are I believe they’ve already started kind of their first dates and then obviously ramp up from there. But we will be the first to update everybody on on on success. As we as we communicated through q one and q two, we said, guys, once once migration starts and once q three and q four hits, we’ll be the first to update everybody. And I I think we’ve I think we’ve started doing that.

Vahid, CFO/Financial Lead, Hydrate Technologies: I think the the they’re gonna send the release out soon on that and update the market. What are the next products VSD h one will be rolling out? Would VSD h one be fulfilling palzable orders? What is the new new what’s the new products that VSDH one will be rolling out?

Shane Madden, CEO, Hydrate Technologies: So across the categories, obviously, we all know about GLP ones. The peptide space is just gonna grow continually. So there’ll be a continuation of those of of of that category. The sexual health, the the the the hair loss, the sensitive stuff. The at home testing will also broaden because, of course, that’s the first piece of the individualized health care.

So, again, it’ll be more of an expansion of the categories rather than a specific product. You know, obviously, the TRTs, the HRTs, there’s different administration types of those coming now, same way that this that the GLP one has numerous types of administration from sublingual to sub bank to to a patch to all that stuff. So it’ll be versions of of those categories.

Vahid, CFO/Financial Lead, Hydrate Technologies: Perfect. I’m going through with a question. There’s bunch of question about the m and a strategy. Talk about m and a or how you’re gonna use the cash flow convertible. These are I believe they were posted before we go to that slide, so I’m just passing.

I’m not ignoring the question. New products that respond to add to the platform. We just talked about that. You recently referenced the potential partnership exit sales in 2026 and the retail conference calls. Do you feel an exit might be premature at this point given the trajectory?

Again, that’s that might be the end goal, but right now, our focus is growth, number of the orders, profit. And in order to do that, we may we’re gonna do it organically, acquisition, investment, supporting the growth in different ways, including initiatives that we have internally doing that. Could you provide some color in addition to operational costs that are expected to be incurred as the VA stage one continues to grow? So we need to focus. Like, we are building this business as a process oriented business that is around automation more than anything.

We don’t want to be cornered by by people or mistakes or errors because human human being will create errors no matter how precise we are. So it’s gonna be we’re gonna invest more and heavily around the technology that we have, around the offerings that we have, around the operation that we have. But, again, we are monitoring that. We have our numbers. We’ll look at those, and we continue planning for our next ninety, hundred and twenty, hundred and eighty days, and we adjust it as we move forward.

Can you provide insight into the current view? I believe your current measure and the potential reach to 20,000,000. Never mentioned any specific revenue for ’20 oh, for 2026. We haven’t provided any specific number on 2026. But as Shane said, we’re we’re looking at the numbers.

We’re focusing on the orders. By September, we’re hoping and we believe we’re gonna have a clear projection for next year. And and, also, we have a better idea from the dollar per order side that that we can we can work on that. How do you feel about the August numbers relative to your previous cited? So, yeah, we the August originally, we had it about, like, you know, in the original matrix before we get into the July, we had about 35,000 to 75 70,000, average 55,000 orders.

As I said, we fulfill and surpass that. It’s just that we’re not because some of the orders is coming is a new product that is cheaper than the the the the numbers that we had. So we need to wait for the month to be over and start organizing those so we can tie the number of the orders coming in with the revenue generated and dollar per order. But from the order perspective, product order perspective, we’re very excited and happy for month of August as well. How do you can we discuss dilution in the future?

There are many times where the topic was addressed in the calls and the answers that Heidrick has enough capital to meet their growth. So the problem is not dilution itself, but communication in front, how sure we are that we’ll not under dilution in three months. There is no dilution. You are looking at this business. The question is, do you wanna have a a big piece of a small pie, or you wanna have a a bigger piece a a a a bigger a small piece of a bigger pie?

Right? We we didn’t raise any money since we went public at 63 until earlier this year, a dollar 55¢. We make sure the the revenue goes from a million to 22 and a half 22 and a half before we do the raise. We made the company to be profitable. We have done our researches to do our best to make sure the money that is coming in is gonna be used properly.

We got diluted by create by by by issuing RSUs to the team who’s been with us over the years and and made this growth possible. We got diluted by creating bringing more investment, a dollar 55¢ to diversify that and also getting coverage. We got diluted by getting a piece of a five zero three a pharmacy that is a gold mine. And it’s in their benefits now that they do well because they are shareholders of the Heidrate. We got a convertible, not this rate raise because we believe the value of the shares.

So when you look at the dilution, we still saying what we said before, but we have to see what’s gonna bring the most benefit for the shareholders, the management, the board, the CEO, everyone working day in, day out to see, you know, what’s gonna bring the most value for for the shareholders. So I think I added like, I’m going over the question. Most of the question we addressed, and a lot of it is very similar. I know we already passed about twenty five minutes over over the webinar. Apologize for taking your time longer.

Appreciate your time. Appreciate your support. Any other question, feel free to send us an email, I I r you know, to IR emails, and our team will get on the phone with you, respond back to your email. Again, we’re overwhelmed with the support that we have, and we appreciate it. We’re doing our best based on the best of the knowledge, best of the effort that we can put in to deliver the results.

I appreciate it. Thank you so much.

Shane Madden, CEO, Hydrate Technologies: Thanks, everybody.

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