Shark Tank US | Three Sharks Come Together For First Defense Nasal Screen

Summary

In a compelling pitch to the Sharks, Joe Moore, President and CEO of First Defense Nasal Screen Corporation, seeks $500,000 for 10% of his company. He introduces a unique, clinically proven nasal screen designed to reduce inhalation of allergens and pollutants by up to 99%. Despite an initial $1 million offer, Moore holds out for a deal valuing his company higher, eventually securing $1.2 million for 30% equity and a 10% perpetual royalty, showcasing his belief in the product's potential in a billion-dollar industry.

Takeaways

• 😀 Joe Moore is the president and CEO of First Defense Nasal Screen Corporation, seeking $500,000 for 10% of his company.
• 🏥 First Defense Nasal Screens aim to reduce the inhalation of allergens, pollutions, pet danders, molds, and viruses by up to 99%.
• 🌐 The product has potential worldwide appeal, especially in societies where face masks are common.
• 📈 Joe has an $8 million contract from a client in the United Arab Emirates for 8 million units over the next six years.
• 💡 The nasal screens are non-inserted, lightweight, and almost non-visible, using a nonwoven material that closes upon inhalation and flushes upon exhalation.
• 📝 Joe holds patents for the product in the United States, Canada, and Europe, and they have been in place for 3 years.
• 💰 The requested $500,000 investment is intended to cover upfront costs of raw materials for the large order.
• 🤔 Some investors expressed concerns about the high cost of educating the market about the product.
• 💼 Joe turned down multiple offers, including a $1 million offer for the entire company, believing in the product's potential in a billion-dollar industry.
• 🎯 The final deal was $750,000 for 30% equity and a 10% perpetual royalty, which Joe considered after other offers were declined.
• 🤝 The deal was closed with an agreement that included season tickets as part of the deal, reflecting a mutual enthusiasm for the partnership.

Q & A

Who is Joe Moore and what is he presenting in the Shark Tank?

Joe Moore is the president and CEO of the First Defense Nasal Screen Corporation. He is presenting First Defense Nasal Screens, a lightweight, non-inserted, almost non-visible nasal screen designed to reduce the inhalation of allergens, pollution, pet danders, molds, viruses, and more by up to 99%.

What is unique about the First Defense Nasal Screens according to Joe Moore?

The First Defense Nasal Screens are the first and only non-inserted, almost non-visible nasal screens that have been clinically proven to reduce the inhalation of various contaminants.

What is the financial ask from the investors in the Shark Tank?

Joe Moore is seeking $500,000 for 10% of his company.

How many units of First Defense Nasal Screens have been sold prior to the Shark Tank presentation?

Joe Moore mentions that they have not gone to market yet, but they have one big client from the United Arab Emirates with an order for 1.7 million units and a contract for 8 million over the next six years.

What is the wholesale price of each First Defense Nasal Screen?

The wholesale price for each unit of First Defense Nasal Screens is 60 cents.

What is the purpose of the $500,000 investment according to Joe Moore?

The $500,000 investment is needed to keep producing the nasal screens due to the requirement of buying raw materials upfront.

What is the patent situation for the First Defense Nasal Screens?

Joe Moore confirms that they have a patent for the product in the United States, Canada, and Europe, and they have held these patents for 3 years.

Why did Joe Moore decide not to license the product to a big drug company?

Joe Moore initially approached a large drug company, but they considered the product a competitor and said they would shelf it, preferring to treat the condition for $14 rather than prevent it for a dollar.

What is the total amount of money invested into the First Defense Nasal Screen project so far?

Joe Moore mentions that almost one million dollars have been invested into the project, with $600,000 of it being his own money and the rest coming from friends and family.

What was the final offer made to Joe Moore in the Shark Tank?

The final offer made to Joe Moore was $750,000 for 30% of the company and a 10% perpetual royalty.

How did Joe Moore respond to the various offers made by the Sharks?

Joe Moore considered the offers carefully and negotiated for better terms. He eventually accepted the final offer of $750,000 for 30% equity and a 10% perpetual royalty.