15x14 - Episode 14

[bunniefuu]

Narrator: Tonight on
"Shark t*nk"...

Whoa!

Hi, Sharks.

Whoa!

[ Gags ]

We're looking for
a strategic partner.

But what's the plan?

I'm so nervous. Greiner:
Okay, you know what?

Take a breath. Take a
breath. I'm so nervous.

[ Gasps ]

[ Laughter ]

I am the Shark for this deal.

That's the ultimate flex.

Well, then what are we
talking about here, Doc?

[ Cheering ]

O'Leary: We've never
seen this on "Shark t*nk."

Never. And we've been doing this

for 15 years.

Cuban: That's a big ass dog.

Herjavec: Did not
expect that to happen.

Narrator: First into the t*nk
is a business seeking to lend

a helping hand to those in need.

Hi, Sharks.

I'm Dr. Aadeel Akhtar
from San Diego, California.

I'm here seeking $1 million for


where we develop advanced
bionic limbs that are accessible for

both humans and robots.

When I was 7 years old,

I met someone missing
a limb for the first time.

She was my age, living
in poverty in Pakistan,

where I was visiting,
missing her right leg and using

a tree branch as a crutch.

That's what inspired
me to go into this field,

and that's why I
developed the Ability Hand.

It's the fastest bionic
hand on the market.

It's the first to provide
touch feedback to users,

and you can control
it with your muscles,

like Sergeant
Anderson over there.

It's also water resistant
and USB-C rechargeable.

You can even charge
your phone from your hand,

a superhuman ability.

The Ability Hand has
made a huge difference

in the lives of our users.

For example, Sergeant Anderson
can actually hold and feel his

daughter's hand again,
something he couldn't do

with any other
prosthetic before.

But he can also take Psyonic's
Ability Hand to the extreme.

[ Cheering ]

Wow!

That was so cool!

So the Ability Hand
isn't just for prosthetics.

It's also being used on
robots around the world,

including at major
tech companies

and even on missions into space.

So, Sharks, who wants
to join our bionic revolution

and change the world
one hand at a time?

I want to actually introduce you
to Sergeant Garrett Anderson.

Hi, Sharks. I'm retired
Sergeant Garrett Anderson.

I lost my arm in
Iraq in 2005 from

an improvised expl*sive device.

I've used a lot of
prosthetics in my



They're too heavy, too slow,
not functional and not durable.

So the Psyonic hand
has really changed my life

and given me a new way
to interact with society.

Thanks for your service.
Thank you. John: Thank you.

Tell us about you and
how you came up with this.

Absolutely. So
after I had met that


Pakistan, I ended up getting

a bachelor's degree
in biology from

Loyola University Chicago,

a master's degree
in computer science.

From there, I got
another master's in

Electrical and
computer engineering,

PhD in neuroscience, and
then I left medical school

because this was a
bit more fun. Wow.

When I was a graduate student,

we started 3-D
printing these hands.

What happens next?
You raise a lot of money.

[ Laughs ] Yeah. How
much have you raised?

So we've raised
$3.6 million so far.

Okay. And we're actually

in the middle of a
StartEngine crowdfunding

campaign where we
raised $2.2 million.

What money have
you raised in total,

and at what valuation?

Well, we raised $1.4 million
at the $12 million valuation.

And then we raised $2.2
million so far on StartEngine

at the $50 million...

Over what period of time?

Just almost a year now.

A whole year, you've only
been able to raise $2.2?

Well, we also get money
from grants, as well.

How much?

We've raised $2.4
million in grant funding.

And then we should be
getting another $2.7 million

next year from the DoD.

That just doesn't make any
sense to me that you would spend

all that time on StartEngine
just to raise $2.2 million

when given the impact,
if what you're saying

is accurate, there's
a thousand people

who would write that check.

There are several reasons
why we decided to go

to the equity
crowdfunding route.

So one of them is half of
our sales actually come from

social media. From social media?

Social media.

You said sales? So
you're actually selling?

We are actually selling this.

And so this is an FDA
registered medical device.

We got it covered by
Medicare in the US.

Oh, wow, okay. Wow.

Put that in perspective,
before this hand came along,

only 10% of patients
in the US could afford it.

How much does it cost, doctor?

Um, this costs $15,500.

What's it cost you to make it?

It costs us $1,800 to make it.

How many patients
do you now have?

We have over 100 patients.

But our biggest problem is
that we've got more demand

than we can produce,
and so we want to start

ramping up our production
so we can get these...

How many are you
producing a year?

Um, so right now,
we're actually about

a capacity of like 100 a year.

Why is your capacity just 100?

By next year, we're
looking at potentially

doing at least 500
hands per year and then

a thousand and more.

Why aren't the doctors
who specialize in

people in these
circumstances, the VA,

why aren't they just
all over you, just saying,

"We'll take all you can make"?

Yeah, they have been
taking all that we can make.

And so that's why
we're trying to build

our production capacity.

How much are you
going to have to invest to

increase the manufacturing
capacity to get

to a thousand units a year?

To get to a thousand
units a year?

Um, up to 5
million in this round.

Doctor, did you ever pitch

equity guys that only
specialize in health care?

What we've seen
in that space is that

it's either one or the other.

They like either go
into robotics purely

or either go into
the health care field.

But when you
pitch the equity guys

who are into robotics...

Yeah... what was the feedback?

Why didn't they invest?

Um, so some of
them didn't care for

the mission for humans, right?

They didn't care that...

I just cannot see that at all

for somebody who's in
the health care space.

I mean, look, if you would
have come to me and said,

"I just need $5 million, we
can dominate this industry."

And I'm saying, "Okay,
let's just negotiate

because $5 million
is a lot of money."

Sure. But to try to

change people's
lives like that...

In the scope of
things, it's not.

Scope of things aside, this
just does not add up to me.

So for those reasons, I'm out.

Understood.

Herjavec: Yeah,
Dr. Aadeel, when I was on

"Dancing With the Stars",
a good friend of mine

to this day, Noah Galloway,
you know, great veteran,

uh, he lost his arm and his leg.

And I know the pain of this.

It's not just as simple
as simply attaching it.

Absolutely.

There's a lot of infections,
a lot of issues with it.

How do I attach
this to the limb?

Yeah, absolutely. So this
is the hand right over here.

Um, and so...

So I need that, the doctor...

Exactly. The
clinician, the prosthetist

makes the socket, and
then they attach our hand

to it with all of
our electronics.

So how would
they... Custom fit it.

So that arm...

So you're making just the hand?

We make just the hand. Exactly.

I'm very bullish on this space.

I think it's going to
change people's lives.

But that knowledge
makes me skeptical,

that with a few million dollars,

you are what you are.

Perhaps it's my own skepticism.

I wish you all the best,
and incredible mission,

but I'm out.

Thank you, Robert.

Doctor, I just want to
clean up your presentation

a bit with some numbers.

First of all, lifetime sales.

Yeah, so lifetime
sales is about $2 million.

Okay. And what were
the sales last year?

So it was just over $1 million.

And you made money on that?

Yes. How much?

Uh, $100,000. Okay.

This year, what do you
think you'll do in sales?

So we'll probably be
around $200,000 at least.

My issue with this deal
is I don't get out of bed

for 2% of anything, because
what I'm worried about

is the more successful you
are, the more you have to raise,

the more I get diluted.

I know what the
answer is going to be.

I want 10% for a million bucks.

Uh, yeah, I mean, unfortunately
that's going to be too high.

I mean, like, I got
to wet my beak here.

Are there other
offers here, too?

Greiner: Daymond and I love it.

We believe in it.
We believe in you.

So we'd like to
give you an offer.

Narrator: Two Sharks are out.

Dr. Akhtar has
an offer from Kevin

for his robotic hand
company Psyonic.

But Lori and Daymond
are also interested.

We'd like to give you an offer.

We'd like to do
$1 million for 6%,

but you get both
Sharks. Both of us, yeah.

Got it.

But we don't want to be diluted.

That could be problematic.

So what do you think of that?
Or do you have a counter?

So yeah... So we want to
protect our valuation, right?

Because we want to
protect our investors.

So what if it were $1
million at 2% shares.

But then we can throw
in advisory shares.

And so let's say
an additional 1%

for each of you.
Would that work?

So 4%? 4%. Yes.

No.

We can get into the details
of how we structure it.

But the one
important detail is...

Right... we don't
want to be diluted.

Daymond, to be clear, you're
asking for preference shares,

and for viewers at
home, the problem with

preference shares is that,
as more money is raised,

your percent is
protected in perpetuity,

which means so you're
never going to get diluted

while everyone else is.

You sit on the top of the stack.

But we bring an
incredible amount of value.

O'Leary: But you understand

the problem for your
shareholders. I understand.

You're going to have
to disclose that to them.

We'd be willing to do the


but non-diluted.

Which really isn't bad,
considering what you get.

That's true. I
mean... but I mean,

we're going to be turning
this into a $1 billion company.

That's why we're
giving you an offer.

And we'll be helping
you do that a lot faster.

Um...

Well, it is the Shark t*nk.

You knew you were
going to run into this.

You are in a difficult
situation, doctor,

with this idea of putting
preference above others.

My offer is $1 million for 10%.

But they're just
standard common shares,

and I expect to have
the option to invest

in the future more if I
wish, but I will be diluted.

Anyway, you have
two offers on the table.

I have to agree with Kevin
on this one, where I can't...

I can't do the
non-dilutive shares.

No way you can do that.

So what if we were at the 6%?

Yeah, I mean, then
that's just too much.

That's just too
much equity that...

Well, then what are we
talking about here, Doc?

The offer that I'd given,
the $1 million for 2%,

and then an extra 2% in
advisory shares, that is dilutive.

So basically, Dr. Aadeel,

your counter is
$1 million for 4%.



What do you guys want to do?

Why don't we split the baby?

[ Laughs ]

Go to 5% total.

Go to 5%, and you've got a deal.

I would do that deal at 5%.

No. Also.

Ooh. No, no.

Wow.

We'll do the deal together.

I got two Sharks. That's right.

And two is better than that one.

No, I am the
Shark for this deal.

Would you want to go in
with Daymond and Lori?

Sure, I would, of course.

Um...

But here is my proposal. Okay.

If Kevin wants to
come in with Lori and I,

we would all get
two and a half shares.

Seven and a half, right?

It's two and a half, two
and a half, two and a half.

You know that would blow
you up huge on StartEngine.

Yeah, deal. That's a big deal.

Um, but then I'm
giving away more equity

for the same amount of money.

But you're getting three Sharks.

I personally think on this
deal, the more Sharks,

the better in terms of
getting the story out.

So seven and a half, according
to Daymond, three Sharks.

You'll have to take a
few hundred basis points

out of your own stash to do it.

And these are common shares.

Sure. I mean, I would do it

for six because I think
there's symmetry to that.

If he said six, would
you do the deal.

For all three of us? Yeah.

Daymond, would you do it?

I mean, I don't want...
Take 200 basis points.

I'll agree with
whatever you want.

Alright. I would do it.

Herjavec: $1 million for 6%.

You better take it
because you can see

they can't agree on anything.

[ Laughter ]

Dr. Aadeel, what will you do?

I think we've got a deal.

Whoo!

Alright, there we go.

I'm confused. Do you
give us the money?

[ Laughter ]

Well, you'll be
making money, right?

You're not shaking
me, my hand with that.

There you go.

Absolutely fantastic
presentation.

Thank you.

Good job.

Thanks for your service, sir.

Yeah! Yeah!

Let's do it. Let's do it. Boom!

[ Laughs ]

This is great.

Akhtar: Making this deal with
the Sharks is going to be huge

in terms of getting our
production capacity up there

and really helping
all the people

around the world that
could use this hand,

and that's what I'm
most excited about.

Narrator: In season 14,
Jeremy and Kaitlyn Carlson

made a deal with
Barbara Corcoran

for their European inspired
ice cream treat, Crispy Cones.

I am the person that
knows more about franchise

and food than anybody
here. Jeremy: Totally.

Barbara, we'll take
your offer. Okay.

Narrator: Let's see
what they're up to now.

Crispy Cones is a traditional
cinnamon sugar dough cone

that we grill rotisserie style

fresh to order right
in front of the guest.

Coming into the t*nk,
we were looking for a Shark

who specialized in franchising.

Partnering with Barbara
Corcoran gave us that expertise.

Within 24 hours of airing,

we had hundreds of
franchise applications.

In fact, we had a
franchise location

from every single
state in the country.

The franchisees are the
key to this whole operation.

The happier they are, the
better they do, the better you do.

I knew it was a great
product, but what I didn't know

is I had the makings
of a great franchise.

I think these
self-serving kiosks

are the best thing you did
the first year in business,

and look what
it's doing for you.

Crispy Cones became so
popular that they needed a solution

to how many people who
wanted them and wanted them fast.

So they used my money to
launch the self-serve kiosk

so no customers
would ever wait in line.

Hello, everybody!

Thank you so much for
coming to the grand opening

of our Crispy Cones
Tempe location.

Today, Crispy Cones has
sold 18 locations in Arizona,

Utah, Idaho, Florida, and Texas.

Jeremy: Our new
technology gathers data

which provides us
valuable feedback

on store cleanliness, store
experience, and quality.

It has increased our
overall revenues 60%.

In the five years
before "Shark t*nk",

we were just under
$500,000 in sales.

Kaitlyn: It's been seven
months since "Shark t*nk",

and we now have surpassed
over $2 million in lifetime sales.

Jeremy: I have been
watching "Shark t*nk"

since middle school.

I basically grew
up with Barbara,

watching her on television,

and never once
in my life did I think

that she would become
a partner in my business.

Whoo!

We were on top of the world

after we had left "Shark t*nk."

Kaitlyn: That moment
was one of the best

moments of our lives.

That is until a few months later

when we welcomed our first
baby girl into the world, Macy.

Hey, how are you, Macy?

Our advice to other
entrepreneurs is to dream big,

work like crazy for your
goals, and never give up.

♪♪

Herjavec: Oh,
this is dessert, Lori.

I think we will be chowing down.

Narrator: Next in the t*nk is
a professionally trained chef

with a line of surprisingly
decadent desserts.

♪♪

Hi, Sharks. My
name is Alejandra.

And I'm Rahmi.

We're from San
Francisco, California.

We're seeking
$100,000 investment

in exchange for 20%
equity in our business.

Sharks, we create
delicious, healthy,

protein rich desserts
like this petit gateau,

concocted with ingredients
like pasteurized chicken breast.

Greiner: What? Alright.

And even this
beautifully mouthwatering

crafted cake made with wild elk,

fermented goat milk,
and organic berries.

Was not expecting that.

Not at all.

Even nature inspired pastries

like this rose shaped
dessert made with

wild antelope heart. Heart?

And organic beetroot cream.

Oh.

Sharks... Don't
take our word for it

that these are
absolutely delicious.

You're gonna have to take
it up with our head chef.

[ Whistles ] Achilles.

Greiner: Oh.

Come on, big guy.

[ Sharks "Aww" ing ]

Herjavec: It's a mastiff.

John: Oh, my God.

Hello. Hello.

That's a big ass dog.

Good job, buddy.

Oh, he's so cute.

I did not see that coming.

Yeah, I didn't at all.

Rahmi: Sharks, we've
always felt our dogs

are an extension of our family,

and celebrating their
birthdays and special occasions

is something we love to do.

That's why we craft
this line of cakes

and pastries
specifically dedicated

to our animal family members,

inspired by my decades
of culinary training.

That's right. I'm a
professionally trained chef.

And I always knew my
prestigious Le Cordon Bleu degree

would go to good use.

Not only do we offer
incredible pastries

for our pups,

but Dogue hosts the
world's first tasting menu

where your pup
is the star guest.

That's right, Sharks.

Every Sunday at
our Bon Appetit Cafe,

we offer a prefixed... Aw.

multi-course tasting menu

with dishes made with

wild Moroccan
sardines and cuttlefish.

Ew.

Wait, there's more.

Not only do we offer
incredible pastries,

but we also offer
prepackaged meals

where all of their food is
made with fresh, whole foods.

Sharks, We've
always loved animals,

and we decided to turn
that love into a business.

So who wants to join our pack?

Bon appetit! Bon appetit!

Greiner: Oh, my
gosh. Herjavec: Wow.

Wow. In front of you

you have some of
our core offerings.

I know we're swimming
with the Sharks today,

but if you feel like
running with the wolves,

you can feel free to take a
bite if you're brave enough.

Well, like, really,
I'm kind of afraid.

[ Laughter ]

[ Gags ]

Are we supposed to eat it?

No, no, I said, if
you're brave enough.

Greiner: Oh, we're really not.

Cuban: Daymond is.

It was disgusting?

Daymond, why are you eating it?

Alejandra: They're all
human grade ingredients, too.

It looked good the way
he was eating it, man.

[ Laughs ]

So it's a retail establishment?

So we've got a retail
store in San Francisco,

a brick and mortar location.
How many square feet?

So it's a little bit
over 1,600 feet.

Ow, wow. Okay. It's
your only location?

It's our only location. Herjavec:
How long have you been there?

What do you gross a month?
What do you gross a month?

So we've been there
for just about a year,

and we're just starting to
get up to around 20K a month.

Okay. You're profitable
on a monthly basis?

We're basically breaking even.

So you're asking us to
invest in a retail location

because you're not selling
these any other way, right?

Essentially what we do is we
manufacture dog food, right?

The core of our business,
the core of our sales,

comes from prepackaged
fresh food for dogs.

What I'm asking you to invest in

is helping us bring this
to a much broader reach.

Our goals are to
get our pastries

all over the country, basically.

How are you going to do that?

That's why we're here, guys.

[ Laughter ]

That's what we need from you.

Is all the dog food like this?

No. Absolutely not. Okay.

What is the...

The prepackaged
meals look like slop.

With the bag of dog food,

what do you sell it for,
how much does it cost?

So it's going to
cost me, let's say,

about $2 per eight ounce pack.

To make it? Right.

And then you sell
it for how much?

I'm going to sell them
for about $8 or so, roughly.

Okay. Now let's go
to an individual pastry.

What does it cost
you to make it?

What do you sell it
for? So that white one

in front of you, I think
it's on your top right,

costs me about 85 cents
to make. I sell it for $15.

What?! So higher margins...

$15?

So wait. Why would anybody...

For the grams.

For the gram. $15.

For the gram. On this.

So this is our secret sauce.

This is really what
captures attention.

We know these days it's
all about capturing attention,

getting eyes on what you do.

And it's beautiful, by the way.

Thank you. Herjavec:
So the businesses

I've got an incredible
Instagram worthy hook,

I come in, hey, by the
way, buy our dog food.

How do you scale that then?

So the idea of scale is where
we come to you guys, right?

We know what we're good at,
and we see where we're lacking.

What percentage
of your overall sales

are these specialty products?

Last month, we
sold about 20 grand.

We made about 11 grand
worth of dog food sales.

Okay. Right.

The rest were
ancillary products,

including these pastries.

O'Leary: And that's
where I come in and say,

"Give me... " So
you're almost 50/50.

Let me buy some
fresh dog food from you.

Not in a pastry form,
just high quality food.

Right. How long does it last?

So if you keep it in the
freezer, they're vacuum packed.

They last well over a year.

Oh they're frozen.
They're frozen. Yeah.

The challenge you have is
shipping refrigerated goods

is a problem, right? Right.

It's expensive.

So the problem for me is,

is I don't see this as
something that is really scalable.

I see it as a great
little business for you,

but I don't see it as something

that you'll ship
nationwide and blow up.

I think it's too
difficult and too costly.

And for all those reasons,
I wish you very good luck.

Alejandra: Thank you
so much. But I'm out.

Cuban: Guys, I agree with
Lori. I think she nailed it.

It's a great business
for you guys.

You love it, obviously,
but it's going to be

really, really hard to
scale to return any money

at all to an investor.

So for those reasons, I'm out.

Thank you, Mark. Thank you.

We appreciate your
words. Thank you.

This side hustle with the
pastries is absolutely crazy

and fantastic
for social, I get it.

We've never seen
this on "Shark t*nk."

Never. And we've been doing this

for 15 years. Right.

So you have a hook
here and a big one.

And America's going
to see this and go nuts,

but you can't get it to them.

That's the problem
with the deal.

Look, I like you guys, but this
is not an investment for me.

I'm out. Thank you, Kevin.

Thank you.

You know, um, I
think this is brilliant,

but there are the
challenges, right?

It's refrigerated goods.

You will not be able to get
space in the traditional stores.

A lot of complications here.

But I think that you're
going to do good

if you just focus on this direct
to consumer just by yourself.

Great business. I'm out.

Thank you. Appreciate
it. Thank you.

Herjavec: I know the
pet space very well.

Had one of my best exits
out of it, one of the fastest.

But you know when you
come into the Shark t*nk,

you've got to have a game plan.

And what I heard you say is,
"We don't know how to ship it."

We don't know whether
we should do retail.

We don't know any
of that. Help us."

But you got to have a game plan.

You got to come up
here with some way

you're going to scale,
and you stood here...

We're looking for
a strategic partner

because we could raise the
money that we're asking for

from friends and
family. Like we...

But what's the plan?
What's the plan?

We need help with
getting the whole

packaging to do it right.

We don't want to just
jump in to start shipping.

We want to do it correctly
from the get go in order

to just save the
integrity of the product.

I guess as an investor,

I want to know what the
plan is, like Kevin said.

It's going to air.

Everybody in America is
going to say, "I want one!"

Robert... They're going
to go to your website,

and you know what
you're going to say?

"I can't ship it to you."

Look, guys, if you
came up with an answer,

not the perfect
answer, any answer,

I would have loved
to get on board.

I love animals, but you don't
have those answers today.

I'm out. Thank you, Robert.

But I'll buy the dog.

No, no, he's not for sale. No.

Never. Good luck, you guys.

Thank you so much.
Thanks for your time, guys.

Really appreciate it.

Good job. Thank you so much.

Alejandra: Achilles, ready?

Come on, let's go, let's go.

Come on.

Let's go. Let's go, big guy.

It's really exciting to
be able to come on to

a stage like this and hear
such invaluable insight

from the Sharks,
to be able to hear

their direction for us,
to give their opinions,

honestly, is worth
more than anything

we could put a price on.

Hello, "Shark t*nk" fans.

We'd like to alert you.

There are a lot of
deceptive ads out there

claiming to be
"Shark t*nk" products,

and in many cases, they are not.

To be sure, go to abc.com

to check out the full list of
"Shark t*nk" businesses.

If a business is not listed,

it is not a "Shark
t*nk" business.

Please be aware and
stay safe out there.

♪♪

Narrator: Next in the
t*nk is a kinder way

to deal with a pesky problem.

♪♪

Hey, Sharks! I'm Justin from
Orange County, California,

seeking $50,000 for


Imagine you're
hosting a dinner party,

and right as you're
about to serve the food,

an unexpected guest arrives.

Go ahead, Sharks, lift
your plate covers and dig in.

Oh.

[ Gasps ]

[ Laughter ]

That's right. Bugs.

Greiner: Oh, my God.

That scared the crap out of me.

Now, Mr. Wonderful might be
all about crushing cockroaches,

but what about those of us
who'd rather not take a life?

That's where Cup-a-Bug comes in.

We've made it...

uh, more convenient to
catch a bug than to k*ll it.

There's... there's...

That's okay. Start over.

Cuban: That's okay. You
made it more convenient

to capture a
bug than to k*ll it.

Than to k*ll it.
Huang: That's right.

Using it is super simple.

Just place the cup over the
bug and pull the handle back.

This closes the lid,

and now your bug is ready to
be released back into nature.

Cuban: Good for you.

Or on your neighbor's doorstep.

It's up to you.

[ Laughter ]

Cup-a-Bug features, a long arm,

and a tilt mechanism
that works like your wrist,

allowing you to catch
bugs from floor to ceiling.

Oh, God!

We even included a brush

for getting bugs
from out of corners.

Think of Cup-a-Bug as
an extension of your wrist.

Um...

You're good. Greiner: It's okay.

You know what? Take
a breath. Take a breath.

I'm so nervous. And
then think of it again.

Whether it's catching
bugs from off your ceiling

or catching cockroaches
from your kitchen floor,

Cup-a-Bug is the hero
we've all been waiting for.

So, Sharks, who's ready to
see what all the buzz is about

and infest in Cup-a-Bug?

Good job, Justin. Good job.

Yeah! Thank you, thank you.

In my household,
I am the bug guy.

My wife, my kids...
Yeah, women freak.

will not going
anywhere near a bug,

so it's like, "Dad!"

Exactly. You know,
from the whole house.

So, how much does this cost?

We retail it for $40,
including shipping.

What does it cost you to make?

It cost us to make,
uh, $10 landed

and then about $7 to make.

Herjavec: That's not bad.

Justin, do you have any sales?

We do. Yeah, we
did a Kickstarter

that did about 800 units.

So that was $28,000 roughly.

Not bad. Yeah.

And when was that? What month?

That was last year,
um, in, uh, March.

And then this year, we
started selling our first

production run in
beginning of June.

So it's been a little
bit over three months,

and we've done about


What is that in dollars?

That's $48,000, give or take.

Yeah. And that's
all been organic.

Justin, how did you
are you a bug guy?

Is this something you
came up with for fun?

Or a bug hater?

Yeah. Tell us the story.

I would be more on the
bug sympathizer side.

Um, I studied
mechanical engineering,

and then afterwards, I
went to work for my dad,

and we designed electric motors.

I decided that I wanted
to follow in his footsteps

and become my own entrepreneur.

So every night, I would just
keep studying engineering

through free online courseware.

My hero, my hero.
I know you guys

are lifelong learners, too.

I'm the same way.

And eventually, I was
able to get the skills

to design something
like Cup-a-Bug.

I'm just terrified of
bugs, even from a child.

I get it. And as I grew up,

I just started to feel bad,
you know, squishing them.

I feel bad when I
squish a bug, too.

That could be an
ancestor of mine,

for all I know, coming.

Probably is.

I don't know if I feel bad.

What other things do you design?

Um, yeah, I've done a lot
of board game accessories.

I did like planters,
certain desk organizers,

basically anything that's
under like the nerd umbrella.

You're a serial
inventor. I like this guy.

Justin, is this one of
them? What is this?

No, that's just something
I specifically designed

for you guys today.
You designed this?

Herjavec: You designed this?

Yeah. Greiner:
It's a bug-a-pult?

That is so cool.
It's a bug-a-pult!

It's a catapult for bugs?

Huang: Yeah, exactly. Yeah.

You guys are welcome
to have it if you want.

Wait, it doesn't come...
You're not going to sell these?

I mean, we could
expand the product line.

You could definitely.

Out of all your products,

are you most excited about this?

Yeah, this is really not
just a product for me,

but it's a showcase
of all the skills

I've put into my
studies in engineering.

I love it. You know what?

So this includes you.
It's 10% of you, right?

It's 10% of not just Cup-a-Bug,

but like the future of my
entrepreneurial experience.

So I'll give you. 50K for 20%.

Ooh.

Wow. Yes?

Greiner: Do it.
I'll do the same.

No, he's not gonna
do it. Just me.

Why don't why
don't we get one...

I'll give him a little
bit more. 60K for 30%.

Are you guys in together? Greiner:
Oh, you're going in together?

No. No! Yeah!

I want you to myself.

[ Chuckles ] Greedy.

Would either of you be willing,

since we're going up in equity,

would you be willing to go up?

I'll go up to 75K. How's that?

For 20%?

Geek to geek? Geek to geek?

All right, Mark, join me in
my entrepreneurial journey.

Let's go! Thank you so much.

That's great, man. Let's go.

John: That's great.
Greiner: Congratulations.

I love it, man. It's awesome.

We'll have so much
fun. I appreciate it.

Well, I'll be throwing
projects after you left and right.

Anytime you have an
idea, you can run it by me.

Code, hardware. Fun stuff.

I love that. Thank
you so much. Yeah.

I appreciate it. Thank you.

Herjavec: Great
job. Justin, fantastic.

That you guys so much. Yeah.

You got paid 75,000 to get
a filthy rich billionaire back

every idea you have
that he agrees upon

for the rest of your life.

I know, it's amazing.

He's gonna be
working for you later on.

I hope so. I hope so.

You know what? That is
the power of the cockroach.

[ Laughter ]

That's the power
of "Shark t*nk."

All right, man, congratulations.

Congratulations.
Congratulations.

Talk soon.

Oh my goodness.

I can't believe it.

Mark Cuban with me in my
entire entrepreneurial journey

is honestly amazing, and
I'm so happy right now.

Did not expect that to happen.

Entrepreneurship is
honestly a tough road,

especially when there's
not a whole lot of guidance.

And I thank you
guys on "Shark t*nk"

for helping me get a
connection like this.

This is life changing, honestly.

Oh, my God. He's great, man.

Hen he said that he
designed this just for us.

Yeah, I know. I think you like

the catapult more
than the bug thing.

Yes. No, this this
is utilitarian, right?

Sharks, I love to
create and invent.

When I was 7 years old,
I invented the Baby Toon.

The Baby Toon is a
combination of a baby spoon

and a teether all in one.

When Cassidy from Baby Toon
came out, she blew me away.

I want to show other
kids that they can be open

to opportunities
they have at school,

or even at home
to create and invent.

I just really hope
I inspire them.

It's a dream come true.

She did the whole pitch
herself, and I thought,

"I have got to just
go scoop up this girl

and give her a deal
and become her mentor."

You have a deal.

Cuban: Congratulations.

[ Applause ]

Greiner: Oh, my gosh,
you are just amazing.

Thank you. Amazing.

♪♪

Narrator: Next up are
entrepreneurs who believe

their product is
cooler than the rest.

♪♪

Together: What's up Sharks?

I'm Dave. And I'm Joe.

And we're the twins
that founded Coldest!

We started this company
in Naples, Florida!

And, Sharks, it
gets so hot out there.

And so we wanted to
create the coldest things.

To help you stay colder longer.

How cold, Dave?

This much colder!

[ Laughter ]

Greiner: Oh, my God!

We embarked on
a journey to create

the coldest products ever.

This is our water bottle.

We tested this bottle against


hydration brands out there,

and designed it to stay cold

for up to 36 plus hours long.

With thoughtful design
features such as this

non-slip rubber bottom.

It's 100% leak proof.

And we're not just a
hydration company.

We wanted to create the
coldest everything store,

so we designed and
developed the coldest pillow.

Because I was sick and tired

of sleeping sweaty at night.

We also designed and
developed the coolest dog bed

and the coldest dog bowl because

dogs like to sleep cold, too.

We're seeking $600,000
for 2% equity in our business.

Hello! Whoa!

That's cold. What
do you say, Sharks?

Ice cold. Who
wants to get burred

in an avalanche of
cash and join us on...

Together: Expanding the universe

of Coldest!

Greiner: Whoo!

[ Laughter ]

Oh, my gosh. Okay.
Wow. What do we got here?

Yes, what do we have?

Dave: So that's
a limitless series.

It comes with three lids
that are fully insulated

and it stays cold 36 plus hours.

Cuban: Tell us about you guys.

It sounds like an
interesting story.

So my parents are
both immigrants.

My dad's from Jordan, and
my mom's from the Philippines.

They're both engineers,
and so all our entire lives,

like we thought engineering
was the only route to go into.

They tricked you,
huh? They tricked us.

And every day, I'd listen
to business podcasts.

Because me and Joe, we've
always been obsessed with business

our entire life.

I had these side hustles.

They were software
businesses, building websites

for other clients, so we
knew how to build brands.

But all of our side
hustles, they kept on failing.

But every single one of them,

we've learned like a really
cool lesson along the way.

And then 2015 came, and
that's when Coldest begun.

And so I had $14,000 saved up.

It was all my money, and
I put it into the Coldest.

The Coldest Water was
what it was initially called.

I finally chose a factory.

I sent them the
money, all $14,000.

It was for 1,000 water bottles.

And my older brother
looks at me, and he's like,

"Do you really think
you're going to sell



You know how
competitive that market is?"

And I looked at
him. "You're right."

And so I messaged
to the factory, I'm like,

"We need to cancel that order."

[ Laughter ] And
she responds back

in like a few minutes.

"We can't cancel
the order. It's too late.

Your order's are already
on the factory line."

And then two years later,

we're doing about


Okay, so what happened
with the thousand dollars?

Yeah, you just casually
threw that out there.

We'll get into the
numbers shortly.

Yeah, but...

But what happened to that order?

That one order. The first order.



They sold out. They sold out.

Yeah, we sold out.
John: In how long?

You're horrible pitchers.

In what period of
time did that sell out?

I would say it was
probably within

the first five months.

We initially started on Amazon.

We were pure Amazon
Play, digital e-commerce,

D-to-C company.

In 2017, I said, "Let's
start up an alliance."

You create the
best, coldest product,

and I'll work just
focusing on the marketing.

And within a year, it
was about 2018 now,

we had hit $1 to
$3 million in sales.

What?

We're getting the numbers here,

because this is the part
you asked for $600,000.

That's not chump change.

Give us year by
year revenue, okay?



And then 2018, we did 2.5 mil.

John: Whoa.



So 2020, we hit $9.3 million.

Whoa! What?!

Whoa. Nice. Dave: It
started to scale nicely.

And then?



Whoa. It just kept on growing.

And last year?

Last year we hit $15.1 million.

Ooh!

I've got to ask,
why are you here?

What were your
profits last year?

Are you making any money on it?

Hold on. So last year
was negative-400K.

You lost 400,000?! Why?

Our inventory, it
just keeps flying out.

Of the warehouse.

Like it sells really fast.

And we keep buying a lot, too.

Joe: We keep buying a lot more.

We're adding more
colors. More SKUs.

Yeah. Uh, obviously,

as you can see, we're adding
more categories, as well.

All of our money since
day one has been going

back into the brand.

What is your inventory
worth right now?

Yeah, it's around $2.5 million.

How many SKUs is that?

There's over 350 SKUs in...

How many of those
SKUs are over a year old

and just probably
not going to sell?

I know this sounds weird,
but all of our stuff moves.

It just a matter of when
we want to discount it

and break even at that product.

And that is 2.5 retail or


Cost. Cuban: Cost.

That's cost. So what is the
average margin on here?

How much does a
bottle cost to to make,

and how much do you sell it for?

So that specific product
retails for $55.99.

Okay. And we get it for

around $10 to $12 landed.

What do you think you're
on track to do this year?

We're on track to
do $22 million up to...

That's on the lowest
end. Joe: On the low end.

You lost money last year? Yeah.

Why is it worth $30 million?

It's worth that
because our growth

has just been
scaling tremendously.

But the problem is, is
you're not making money.

The way that I see this,
honestly, you had clever idea,

but it's almost like you
fall in love with the sales

that you get caught
in that cycle of,

and let's get more
and let's do more

and let's bring in more.

And the problem is,
you're so heavily inventoried

that you said yourself

you're going to sell
it off to break even.

So... A business should run

where you're lean and mean.

For me, it's not a model I
like, so I'm sorry, I'm out.

Alright. Thank you
for your feedback, Lori

So... Cuban: What percentage

of your sales do you
spend on advertising?

A lot.

So last year, we did almost
$3.3 million in advertising.

Wow.

So, guys, you guys are a
marketing company, right?

Correct. But in order to be

a great marketing company,

there's got to be
science behind it.

There's got to
be more than just,

let me just try some
ads on Amazon,

because while I get that
you're trying to scale, right,

if you really want to scale
to be a household name,

you've got to be the best
at analytics for advertising.

I don't see that from
you guys. So I'm out.

Okay.

Herjavec: Look,
you've got the growth.

You started a
business from zero.

You're going to do $20
million. I mean, that's incredible.

But I still don't understand
why you're losing money.

So it was definitely cold.
It wasn't very hot. I'm out.

Why do you believe that,

you know, the
inventory is a plus?

I mean, because one
of the biggest things

that slowed FUBU down
was when we were doing,

you know, $400 million a year,

well, with broken
boxes, broken sizes,

styles that people don't
like, it starts to add up, right?

And that is your profit.

You're headed down a road
that I do not want to join you on.

I think is a very
dangerous road.

Be careful. I'm out.

So we're willing to
go up to 10% equity.

O'Leary: I thought your
presentation absolutely sucked

until I heard the sales.

[ Laughter ] Herjavec: Yeah.

Because to me it was,

oh, another water
bottle guy, please.

I've seen so many
water bottle guys.

The challenge is return
of capital on your deal

because you're not
worth 30 million bucks.

I definitely have to
have a royalty on this

to get my capital back.

And you can get a little
better at how you're spending.

Here's the deal.
I want 7% equity.

I'll give you the $600,000.
I want $2.25 an order

until I make back $3
million on the $600,000.

Then the royalty goes away,
and I ride the pony on the 7%.

We're not super
interested in a royalty deal,

but what we would be interested.

Well, you should
get super interested

because it's the only
offer you have right now.

Narrator: Four Sharks are out.

Dave and Joe have one
offer on the table from Kevin

for their brand of
cold products, Coldest.

O'Leary: Here's the
deal. I want 7% equity.

I give you the $600,000.
I want $2.25 an order

until I make back $3
million on the $600,000.

Then the royalty goes away,
and I ride the pony on the 7%.

We're not super
interested in a royalty deal,

but what we would
be interested...

Well, you should
get super interested

because it's the only
offer you have right now.

[ Laughs ] Yeah, so, what if we

offer this counter.

If we pay you back 1.5-X
of what you're offering,

say 600K, we'll give you


Oh, that's so uninteresting.

It's a guaranteed payback.

Oh, I fell asleep on that one.

[ Laughter ] You're
gonna make 50%

more than what
you're investing today.

Where else can you
do that? Listen, guys.

I put up $600,000.

I can't buy a watch with
what you're offering me, okay?

That's no good.

I'd rather just
take the $600,000

and buy a watch right now.

Like, you have to think in
terms of how many watches

can I get out of your deal?
That's what I'm thinking about.

What's wrong with my
offer? It's so reasonable.

So the 7% for $600,000,

you know, it's definitely
on the very low end.

But think of the opportunity
here for your brand.

He has the coldest
heart of any human being.

I have total respect
for what you've done

in growing revenue.

That's impressive.
There's a lot of

fine tuning you can do to
make that more profitable.

I'm not sure you're
doing the best job in terms

of digital spend right now.

The only guy you have
left is Mr. Wonderful.

Last offer, 5% equity.

$2.25 in order till I
get back $3 million.

And then I ride
the equity with you.

What do you want to do?

We'd like to counter. Yeah.

Uh, for $1.5 million,
for 5% equity, and at,

like, the three year mark,
if you wanted to get out,

you could give
us the equity back,

and we would pay you
out at one and a half times.

Greiner: They're getting colder.

I'm falling asleep again.
That's not the offer I made.

Cuban: So, Kevin...

Dave: We don't
like the royalty deal.

Yeah, we don't like the royalty.

Yeah, they need all
the cash they can get.

We got to figure out what
makes sense for the brand.

What makes sense for the
brand is me giving you $600,000

under the terms I just dictated.

Um...

I think...

[ Whispering indistinctly ]

Okay, so our
answer to that is no.

Tomorrow morning
when you wake up,

you're going to be cold.

Hey, guys, one of
my favorite sayings is

"It doesn't matter how
many times you fail,

you only have to
be right one time,

then everybody
can call you lucky."

You both talked about
how many times you failed

and you finally
got your one time.

Don't screw it up.

Appreciate it, Mark.
Herjavec: Make the most of it.

Greiner: Good luck, you guys.

Thank you so much. Cheers.

Dave: I think the Sharks
are going to regret 100%

that they didn't make an offer.

Mr. Wonderful is
going to regret that

he was too greedy, you know?

And, uh, we'll just have
to prove them wrong.

♪♪

♪♪

♪♪