Shark Tank US | Three Sharks Come Together For First Defense Nasal Screen
Summary
TLDRIn 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.
Outlines
🛡️ Introducing First Defense Nasal Screens
Joe Moore, the President and CEO of First Defense Nasal Screen Corporation, enters the Shark Tank seeking $500,000 for 10% of his company. He introduces a nasal screen designed to reduce the inhalation of allergens, pollution, pet danders, molds, and viruses by up to 99%. Moore reveals that although they have not yet entered the market, they have a contract for 8 million units over six years from a client in the United Arab Emirates. The Sharks express interest, but also confusion, as Moore clarifies that they have not yet sold any units but have a significant order. The discussion revolves around the product's potential, the existing patent, and the intended use of the investment funds for raw material acquisition.
💸 Shark Offers and Negotiations
The Sharks begin making offers, with one offering $500,000 for 20% equity and a 15% royalty until the investment is recouped. Another Shark counters with a $1 million offer for the entire company, which Moore declines, expressing his belief in the product's potential in a billion-dollar industry. A third Shark offers $2 million for the business with a 10% royalty, which Moore considers but seeks clarification. The Sharks discuss strategies, emphasizing the importance of partnering with those who have experience selling billion-dollar products. Moore is torn between the offers, highlighting the complexity of the negotiations and the high stakes involved in the decision to sell equity or the entire business.
🤝 Final Deal and Reflections on Entrepreneurship
After a period of discussion among the Sharks, a new offer is presented to Moore: $750,000 for 30% equity and a 10% perpetual royalty. Moore considers the offer, asking to increase it to $1.2 million to cover his first order, but the Sharks refuse, stating they are now partners and will finance future orders. Moore eventually accepts the deal, emphasizing the importance of the Sharks' belief in his product and the potential for a long-term partnership. The Sharks reflect on the dynamics of the deal, acknowledging the entrepreneur's determination and the unique opportunities presented in the Shark Tank environment.
Mindmap
Keywords
💡Shark Tank
💡First Defense Nasal Screens
💡Allergens
💡Clinically Proven
💡Innovation
💡Investment
💡Equity
💡Royalty
💡Market
💡Patent
💡Billion-dollar industry
Highlights
Joe Moore introduces the First Defense Nasal Screen, a unique solution to protect against germs and allergens.
The First Defense Nasal Screens are the first non-inserted, almost non-visible nasal screens clinically proven to reduce inhalation of allergens and pollutants by up to 99%.
Joe is seeking $500,000 for 10% of his company, which has a product that could be revolutionary for treating nasal allergies.
The company has already secured a contract for 8 million units over the next six years from the United Arab Emirates.
The screens are designed to be easily applied, peel and stick, for instant protection against contaminated air.
The product could be popular in societies where face masks are common, indicating a potential for global market acceptance.
Joe has a patent for the First Defense Nasal Screens in the United States, Canada, and Europe.
The funds sought would be used for raw material acquisition to fulfill the large order from the Middle East.
The Sharks express doubt about the marketability of the product and the high cost of educating consumers about its use.
Joe reveals his personal motivation for creating the product, being a cancer survivor and wanting to improve people's quality of life.
A Shark offers $500,000 for 20% equity with a 15% royalty until recouping the investment, sparking negotiations.
Another Shark counters with an offer of $1 million for the entire company, but Joe is hesitant to sell out completely.
A third Shark joins the bidding, offering $800,000 for 30% equity with a 10% royalty, complicating the negotiations.
The Sharks discuss strategies, with one suggesting bringing a competitor into the deal to strengthen their position.
An offer of $2 million for the entire business is made, with a 10% perpetual royalty, indicating high confidence in the product's potential.
Joe considers the offers, valuing the potential of his product and his desire to remain part of the company's growth.
The final deal is struck for $1.2 million, with 30% equity and a 10% perpetual royalty, demonstrating a significant investment in the product's future.
The Sharks commend Joe for his belief in his product and his ability to negotiate a favorable deal.
Transcripts
next into the Shark Tank is Joe Moore
with a unique solution to protect
against germs and allergens hi my name
is Joe Moore I am the president and CEO
of the First Defense Nasal screen
Corporation and I'm seeking $500,000 for
10% of my
company every day people flought
emergency rooms doctor's offices and
pharmacies seeking relief from inhaling
contaminated air and one out of every
five commercials on TV today is about
the treatment of nasal allergies that's
why I invented First Defense Nasal
[Music]
screens First Defense Nasal screens are
the first and only lightweight
non-inserted almost nonvisible nasal
screen ever invented and they have been
clinically proven to reduce the
inhalation of allergens pollin
pollutions pet danders molds viruses and
more by up to
99% and the next time you're faced with
unhealthy contaminated air we remember
don't get sick just peel and stick thank
you any
[Music]
questions are you kidding
me
um um I'm I I'm I'm not um I just know
that like I said how big this really is
$500,000 for 10% of the company how many
have you sold actually right now about
1.7
million 1.7 million units or 1. 7
million in total sales 1.7 million units
how much you sell them for wholesale was
60 cents so your sales last year were
how much Joe actually we just we're not
we haven't gone to market yet sorry I'm
confused if you haven't gone to Market
how have you sold 1.7 milon actually we
have one big client out of the United
Arab Emirates that has actually put in
their first order and given us a
contract for 8 million over the next six
years so you have an order for $8
million yes sir right now yes sir matter
of fact
I have the contract right here that's a
prepared man right there good for you
thank you well all of a sudden you don't
look that funny with that stuff stuck up
your nose can I see that yes you can you
know you don't sound like the boo I
thought you were is this a product that
perhaps is is going to be very popular
in other societies where face masks are
more prominent than they're here State
Side definitely this is a worldwide
product cuz I mean you know you're
wearing them right now I can see them
it's probably an issue for many many
people that are going to look at that
and say what you got stuck up your nose
I see the actual product yes
ma'am sorry Robert the distributor
guarantees that he'll order one am I
reading this correctly 1,500,000
sets yes sir that's for Saudi Arabia
alone they've already ordered those and
how much is he guaranteeing you uh he's
guaranteeing me the 8 million over the
next um six years how does the filter
work basically how the Filter
Works is as you breathe in it's a
nonwoven material so it closes and as
you breathe out it flushes itself does
it stop viruses bacterial it does what's
the stop you from taking the germs in
through your mouth that's a great
question 90% of the air we breathe goes
through our nasal passages also viruses
do not grow in the mouth the esophagus
or line in the stomach they grow in the
nasal passage is there a patent that
protects this yes sir I have we have a
patent penny in the United States Canada
and Europe and have been for 3 years and
what would you use the money for the
money for right now is so that I can
keep producing it because of the raw
materialss I have to buy up front so
basically you need the 500,000 to make
the order correct okay tell me if I'm
putting these in right so I just take it
the best way to do it put it on your
finger like a contact touch your nasal
passage slide it around the outside
slide it around the inside Joe let me
ask you a question why not just go
license it to one of the big drug
companies um because I I did that
originally I went to one of the biggest
in the United States and they told me we
were actually a competitor and if they
took the product they would shelf it
because why would they prevent it for a
dollar when they could treat it for 14
how much money have you put into this I
mean we have almost one million do into
this and where did that money come from
um about 600,000 of it was mine the rest
is from friends and family I think I'd
have a very hard time understanding at
all what the product is about unless you
had these big photos with the noses and
unless you're standing there pitching it
because I think the cost of educating
people is the Big Kahuna here Joe based
on that I'm
out okay
I'm intrigued I got to tell you let me
throw an offer out to you I'll give you
the 500,000 and I want a 15% royalty on
every unit sold until I recoup my
$500,000 okay just the royalty no equity
are you kidding of course I want the
equity I took the risk now here's my
Equity I want
20% you have an offer for me what do you
want to do um I would definitely like to
hear what everybody else has to say
consider they're not interested they
never told me they were out because of
their silence you know they're not
interested not necessarily
true not necessarily true we can work
together on
this okay you got a deal yeah I like
[Music]
that I like how cuddly they are but I
want to give you $800,000 for
30% with 10%
royalty oh come
on screw that I'll give you a million
dollars for the whole company right
now I can appreciate and I appreciate
the offer I really do but um I would
definitely you just turned down a
million dollars yes
sir I I I I couldn't take a million
dollars I know that this is a billion
dollar industry is there a number you
would take
to sell the whole company one not
without a royalty no with a royalty very
possibly yes what's the
royalty I believe that with the
statistics and the research we've done
the royalty would have to be 10% wow and
then what's the number on the
company I I would like to stay part of
it to be honest with you because it's my
passion I um I'm going to show you
something I am a Cancer I am a I am a
cancer survivor I'm a cancer survivor by
the time I was 19 years old I've been
through the Army I've been through the
Marine Corps I've been Halfway Around
the World I fought all my life and doing
different things I believe in this more
than anything else because I've gotten
testimonials of people say you've
changed my life you've changed the
quality of my
life I'll give you a million dollars I
want 30% of the company also 10% royalty
until I recoup the
money Joe I'll give you $2 million for
the whole
business and the 10% royalty you ask for
back to
you I just love this whole thing we're
about to make you a millionaire just
like that but I I I have three offers
that I'm kind of confused I'd like to
have them a little bit more clear if I
can the first offer was
$500,000 for 20% Equity you're still the
80% owner and my partner Mark and I
apply a 15% royalty just till we get our
$500,000 back that's all then that
royalty excuse ex before you start let
me finish with one thought that's going
to stick in the back of your mind
there's only only two sharks here that
have ever sold a company for over a
billion dollars I'm one Cuban's the
other guy all right it's billions B
everybody else is an M Millions small
big big difference you want the billion
dollar Partners not the small
front I've sold billions I've sold
billions of dollars worth of product and
still doing it now actually in Asia
right now so I have the offer of $1
million 30% of the company and the same
royalty fee but less than theirs 10%
royalty until I'm recoup the money Joe a
fundamentally first difference in the
three offers is one is to sell your
whole business my offer is $2 million
for the entire business you get a 10%
royalty you're the guy that runs
a any interest in selling the entire
business today which is the road that
I'm trying to go
down not for $2
[Music]
million would you go to 4
million I would consider taking the very
first deal you were
offered you own 80% of the company we
only get 20 all right we're not Pigs
we're sharks we just want our money back
is is is is that your final offer but
think about it we're leaving you with
80% of the up so you're going to make a
lot more than $4 million down the road
with us as partners I understand that I
understand that's why I I haven't said
yes that's why I'm Joe are you going to
sell this business today or
not possibly very possibly I believe
that um the 4 million is a little
low but I think we're very
close um I think if you went to $5
million and
15% and whether you want me as an
employee which I would really like to to
do with an employee contract because I
want my royalty to be as much as I can I
can get my mind around the
four I can't go up to the
five so I'm
out
dang listen would you excuse us for a
moment
okay so listen it's a very simple
discussion amongst us
very often the best strategy is to take
a competitor like you even though
sometimes I find you distasteful I say
bring him into the deal at our price get
him back out of this what do you think
DJ uh but we need to go up on Equity you
guys want a 20% that's interesting fine
bring him in for a third and go up to 25
no no I think you gave away the farm you
you it was so unev likee when you said
15% only until we get our money back
once we bring Damon into our tent we and
we're the only offer left we can change
our deal so what do you want to do
[Music]
okay before you say anything you know
the currents constantly change in the
Rough Waters of the Shark Tank that's
why I love this place your enemies
become your friends your friends are
become your enemies and sometimes they
bite you in the hiney and sometimes they
don't so what's happened is Damon has
decided to join Mark and I into one
offer now it's great news for you
because there's going to be more money
and I let my partner Mark explain
exactly how great it is for you okay so
what we're going to do is raise our
offer to
$750,000 and then we're going to ask for
30% of the company and a 10% Perpetual
royalty that's our
offer um I would consider your offer I
would the only thing I would ask you to
do is if you go to 1.2 million for the
simple reason that will give me enough
to fill my first order we don't have to
do that because if we own a piece of the
company we're your partners and we have
to finance it but we don't have to pay
for it right now if you need more money
to fund new orders and grow the company
you think we're going to let our Equity
disappear because we couldn't fund a new
order of course not so you get us
without giving up any more Equity with
this
deal don't sell yourself short Joe
listen Joe you got to say yes or no life
is like business it's 20% what happens
to you and 80% how you respond you you
have a moment right now to take this
deal will you take
it does it come with season tickets
absolutely then you got a deal
amen congratulations appreciate it I'm
looking forward to working together
absolutely thank you good job thank you
pleasure meeting
you think about that that's remarkable I
just offered a guy $4 million which is
about as high as that's the beauty of
the show this guy we've never seen
before walked in and had the choice to
be a millionaire and he stuck with it
and he stuck to his guns and he believed
in himself that's what makes this
country great I feel warm and fuzzy I
just made some money
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