I'm Alex Hantman, and I serve as an equity research analyst here at Sidoti & Company. Today, we're pleased to be in conversation with Danny Yeung, the CEO and co-founder of Prenetics, ticker PRE. During the presentation, please feel welcome to submit questions using the Zoom Q&A interface at the bottom of your screen. After the presentation, we'll open to your questions. And with that, Danny, I'll turn it over to you. Great. Thanks so much, Alex. Hello, everyone. Good morning. My name is Danny Yeung. Just a quick background about myself, just about my entrepreneurial experience. I grew up in the U.S. I moved to Hong Kong approximately 15 years ago, launched an e-commerce company that was then acquired by Groupon. At Groupon, I was the East Asia CEO for about three to four years before I left and co-founded Prenetics back in 2014. Prenetics, we started actually as a life sciences diagnostics testing company. When COVID hit, we pivoted to doing significant PCR testing to the tune of over 28 million tests over a three-year period of time. We generated $800 million in revenue over those three years. We also used that opportunity to list on the NASDAQ in 2022. Now, why is this two experiences relevant for what we're talking about today? It just shows you my past experience has significant experience scaling very, very fast, very rapidly, because I'm sure when you scale to doing millions, millions of tests, supply chain operations, data security, headcount, everything needs to come together. And what we're about to share today with Prenetics is now we're positioned as the world's fastest growing consumer healthcare brand. Next slide. Just this gives you an overview in terms of where we are today. So far, the full year 2025, we projected revenues of approximately $90-$100 million. Our balance sheet is very, very strong. We have roughly about $70 million in cash. We also have another 510 BTC in our balance sheet. We've also projected next year we will do approximately $180-$200 million in revenue. And this is driven by IM8. IM8 is now the fastest growing consumer healthcare brand. It's a premium supplement, which I'll explain a little bit later on what exactly that is, and if you look at our total asset breakdown, we have significant cash and BTC holdings of approximately $117 million. We also have an investment interest of 35% stake in a company called Insighta, which is doing early cancer detection. The only other investor in this investment is Tencent. So our stake in this 35% is valued at $70 million. If you then look at the IM8 business value, which we've conservatively pegged at $380 million, we have a total net asset value of approximately $560 million. In terms of the investment thesis, again, we are already right now on a $120 million ARR run rate for IM8. Again, this is already on a billion-dollar trajectory. As mentioned, we have a very strong net asset base value. Next slide. This is an overview in terms of our legacy and different operating business units. Now, when you think about Prenetics, again, I can fully appreciate that it may look a little bit complicated and confusing because the last 10 years or so, we started off as a life sciences diagnostic company. What we have already publicly mentioned is that given the significant growth rate of IM8, we are in the process of divesting our other business units, which includes Europe, CircleDNA, as well as Insighta, which I mentioned has a value of approximately $70 million. When we think about the IM8 projections in its first year, first full year of operations, IM8 this year will achieve approximately $60 million in revenue. Next year, $180-$200 million. 2027, we believe we can generate $350-$400 million in revenue in IM8 alone. Next. IM8, what is IM8? IM8 is a brand that we co-founded with David Beckham. I met David approximately two years ago. We got along really well. As I'm sure you may know, David is highly, highly selective of who he partners with. For the last 30 years, many big brands, companies, people have asked him to put his face or name on the supplement brand. He's rejected ever since he's rejected, except for us. A big reason why he's basically chosen to work with us is in the last 10 years, we've taken a very clinical or scientific approach to our business, and we're putting that directly into a consumer health supplement brand. Next. Along with David as the co-founder, we've also brought along a world-class scientific advisory board, the likes of Dr. Dawn Mussallem from Mayo Clinic, James Green, a former chief scientist of NASA, Dr. David Katz from Yale. So all these individuals, they come up with the formulation together. And then this really separates us from all the other companies out there because you go onto the website, you actually have no idea who's formulating the product. But for us, we have some highly great accomplished experts that are doing our formulations. Next. Just this gives you an idea in terms of what we've been able to achieve since our launch in basically end of 2024, December. So we were able to achieve 100 million ARR in 11 months. So it is a subscription business. So that's the point about the ARR piece. Typically, other supplement brands, even if you're doing really, really well, it will approximately take you three years to get to 100 million ARR. The market leader right now, Athletic Greens, they took them roughly 10 years to reach 100 million ARR, and we did that in 11 months, so it's virtually unheard of, and we believe this is the fastest growing supplement brand in the history of the industry. Next. This gives you an idea in terms of the monthly trajectory over the past 12 months. We started last December at approximately $600,000 in revenue. Last month, we hit $10 million monthly revenue, so again, I think we're seeing no signs of slowdown. The growth has been tremendous. Next slide. This gives you an idea in terms of basically where we're selling to. We actually sell to right now 41 countries around the world. This is 100% direct to consumer, and as I mentioned, that was the previous CEO of Groupon. So all the language, the terms, consumer branding marketing, funnels, landing pages, LTV, the CAC ratios, these are all something I'm very, very familiar with. The key metric here to also understand is that our payback period is 3.9 months. So what does that mean? So that means our customer acquisition cost to acquire one new customer, we recoup that in less than four months. And just as a comparison, when you look at, let's say, Hims & Hers, Hims & Hers, which is a $10 billion company direct to consumer, their payback period is 12 months. As you can also see, our average order value, $145. We have an 80% subscription rate. So that means any individual that goes to our website and buys, 80% of the time they're on a monthly or a 90-day subscription. We've already delivered 12 million servings, over 400,000 customer purchases alone in the last basically 11-12 months. Next. So what does IM8 do? So I think at the core, our hero product is our Daily Ultimate Essentials. And then so the problem we wanted to fix is basically taking supplements. For a lot of people, you have to take 12-15 pills. It's actually quite annoying, quite cumbersome, especially if you're traveling. The same goes for David and Victoria. So we created a formulation where via a powdered drink, you just basically have a powdered shaker, you mix it with water, it gives you 16 different supplements and a tasty drink. So I think this is very, very easy. It makes it simple for a lot of people that want the best supplementation. You get all of your multivitamins, you get your prebiotics, probiotics, postbiotics, you get your CoQ10, your MSM, so everything that you would need in one go in an easy way, in an easy format. Next, you can see we've also, in the last six months, brought along another major ambassador, Aryna Sabalenka, world number one tennis player, and interestingly enough, she used the product on a suggestion by her performance coach earlier this year. She used it for three months, and at that level where she's number one, they're monitoring every little detail of her diet, nutrition, supplements, and after three months on the product, her team contacted me to say, "Yeah, you know what, Aryna's been using the product. Her recovery, energy, cognitive levels were significantly better," and she wanted to partner with us. So we've been very glad and happy to be able to have such a high-profile athlete using our product on a daily basis. Their whole team is also on the product. And of course, she just recently won the U.S. Open a few months ago. Next. We have amazing reviews online. We have now over, again, in just 11 months, 10,000 plus five-star reviews. Next. I think this is also interesting because while we are a 100% direct-to-consumer brand, every two to three months, we'll hold community events around the world in Miami. We've done it in New York. We've done it at the end of this month. We're in Dubai next month. We're in Australia because this really connects the community and puts a face to the brand. So in these events, we'll have David or Aryna or other high-profile celebrities and athletes attend these events. I think if you guys are on social media, it would be very, very difficult to miss IM8 because we're literally all over the place. On the left here, there you can see right before the U.S. Open, we ran an AI video, and we were so surprised at the results. We thought we were going to get maybe 2-3 million views. We ended up having 20 million views in the first 24 hours. After four weeks, we had 233 million views of a video that was showing IM8, so you guys can see the video. Go to our Instagram page on IM8 Health. Yeah, but that's been quite crazy to see the level of engagement on socials. Next. Again, this is what I shared earlier on the first slide in terms of our total asset breakdown with our cash and Bitcoin holdings, our value, our stake in Insighta, and our IM8 business value. We're looking at approximately $567 million in total asset value. So of course, I think given where we're trading at currently, I think we're at a significant under discovered gem, given that we have such a strong foundation here. Next. This gives you an idea in terms of how we came up with that $380 million value for IM8. If you look at all the comparables, Hims, Oddity, Nike, Athletic Greens, no one is on our growth trajectory. And we're pegging, again, 100 million ARR in less than 11 months. So when we do a multiplier of 3.8x of 380 million, we feel this is highly, highly conservative. And especially with the momentum that we're seeing, I think there's significant upside for us to create significant shareholder value here. This gives you an idea in terms of our growth trajectory because everything is online. So we have really great data in terms of how do we see the payback period, how are we looking at the LTV and CAC ratios. So that's why we can already predict for 2026 that IM8 alone will do approximately $180-$200 million in revenue. So that means by the end of next year, we should be at approximately $20-$25 million in monthly revenue heading into 2027. Next. And I think this gives you an idea in terms of, okay, given our strong trajectory, why are we trading at such a big discount? I think the reality is just to sum it up is that, hey, we've had a lot of legacy and complication in our storytelling because, again, we started off as a life science diagnostics company. We had the SPAC. We then are now divesting these assets. But now we realize, hey, for investors, simplicity is key. So that's why we are in the process of divesting those other assets. And on IM8, we've only had three public quarters of data. And that's why you also see this year we've had a significant increase in our share price because, say, people are seeing the data. But to be fair, we've only had three quarters. So I believe once we continually deliver our quarterly results, people will see, wow, there is a significant opportunity here because if you look at consumer and supplements, there's very few companies that are publicly listed. So this is a rare opportunity for people to get exposure to the $700 billion global supplement markets. Next, that just gives you an idea in terms of our strategic advantages over competitors. Again, we also have a great balance sheet that we can further invest into the brand and the business. We also have zero debt. So it allows us to have significant flexibility. Next. Yeah. So highlighting lastly, our management team, again, myself, we have Stephen, our CFO from Citibank, David, our President of Americas, Rahul, our Head of Marketing, Samantha, our Chief of Staff. And we also have a few individuals advising us on our Bitcoin treasury strategy. With that, I'll end it here. And I'll be taking questions right now. Alex. Hello? Danny, can you hear me? Yes, I can. Okay. Well, thank you for all of the great context. Maybe we could start with the shareholder letter. You published recently some great context on the business. You mentioned a couple of things I wanted to touch on. One is you're not trying to be a one-trick pony. You have plans to build two to three product launches per year. Could you talk a little bit about some of the infrastructure you've set up to make that happen and maybe what areas might be of interest for you? Sure. I think when we launched last December with IM8, we've only had one SKU. And I think that made it really simple and easy for consumers to understand is that Daily Ultimate Essentials. And again, it's a product that basically replaces 16 different supplements, 92 ingredients, tastes great. And predominantly, that generated roughly 80%-90% of sales until October when we launched Daily Ultimate Longevity. And so the longevity product is basically taking care of tomorrow and helping you slowing down the aging process. And then so when we launched that new product, our average order value went from $110-$145 approximately. So we had an increase of basically 35% in AOV overnight. And we believe that we're not going to be one of those brands that make 20, 30 different SKUs. We want to make it simple for our consumers. So we'll come out with two to three SKUs on an annual basis. But every SKU that we do come up with, we want to do the best in the market. And I do believe with our current two SKUs, if you ask doctors, scientists, or professors, they'll look at the ingredients list. They'll be like, "Oh, wow, this is truly next level." I think on top of that is that each one of our SKUs is NSF Certified for Sport. So that means it's tested for 280 banned contaminants, heavy metals. Every single ingredient dosage is third-party tested to also ensure whatever we say is on the label is actually in the product. Because the reality is with supplements, you really don't know what you're getting without third-party testing. And very few brands go to this level to ensure transparency. And we publish all of our results online. You can download our third-party testing results directly on our website. We even share who manufactures our product because ultimately what we're creating here is not supplements. We're creating a lifestyle brand, a community. And ultimately, we want to create a Nike but for supplements. We're getting top-tier athletes on board because athletes, I think the reason why they're so great is that they have so many options, so much choice in terms of products. But why are they choosing IM8? Because it works. Great answer, Danny. Maybe we can also touch on something else you mentioned in the shareholder letter, which is economics. So there are investors who may see the phenomenal growth and get excited, but maybe they're on the sidelines because they're not sure about the commercial pacing, the transition from today's unit economics to some of the longer-term unit economics, some of the profitability levers. So could you talk a little bit about some of the levers that you will eventually pull in that transition in profitability? Sure. I think if you look at even just, again, what do we have today? What can we share in terms of data-wise? So in Q1, as an organization, we lost $6.5 million. Q2 was like $4.3, Q3, $2.1. So we're shaving $2 million on a quarterly basis while having this rocket ship type of growth, which is also immensely rare in the direct-to-consumer space. Typically, you see brands that are easily burning $8-$10 million on a quarterly basis to achieve this type of growth. And the reality is, if we wanted to be profitable tomorrow, we could be because of our high recurring consumer base. But given the significant opportunity here, of course, we're not just going to stop now. So we're going to continue to acquire new customers and basically continue to create great product for retention of our existing customers. Noted. Thank you. And maybe we could shift gears a little bit. We have a couple of questions on supply chain and distribution, so the first is that you've been able to grow solely focused on direct-to-consumer marketing. Is there any interest in retail? And how does the team think about retail opportunities? Yes. Great question, so in direct-to-consumers, just to highlight-wise, one key thing why it allowed us to grow so fast is that from day one, we shipped to 31 countries, so this is just not a U.S. play in terms of distribution-wise. The U.S. right now represents roughly about 40-41% of our total sales. Canada and U.K. represent like 13-15%. Australia is number four. Singapore is number five, so we're truly a global direct-to-consumer brand, and then we feel that given that when we launch new products or we have new promotions, etc., having that customer data and email allows us to easily upsell and cross-sell. When you're in retail, that doesn't allow us to do so, so in fact, we've actually spoke to a few of the big box retailers in the U.S., and we decided to not go into retail. Just because we feel that at our growth rate now, our payback period, the LTV to CAC ratio, I don't actually see a need to go into retail in the U.S. market. We may try different retail outside of the U.S. as trials, but right now, we're fully focused on just being a DTC company. I do envision that we will predominantly be a DTC company. Also, on your question about supply chain, we have no issues on supply chain. Again, given my experience in the previous businesses, etc., wise, this is something that from day one, we wanted to select manufacturers that can scale and grow with us. It's manufacturing in New Jersey and in Dallas currently. We have three global warehouses, U.S. ships to U.S., U.K. to Europe, and then Hong Kong over to the rest of Asia. Great context. Thank you, Danny. And we have a few questions from the audience on Bitcoin. So maybe it would be good to talk about what gets you excited about Bitcoin and why it makes sense for Prenetics to hold it. Yeah. So great question. So of course, we started our Bitcoin treasury strategy in June of this year. And again, at that time, I saw the business growing. We had excess cash. Again, instead of putting into J.P. Morgan's 3%-4% fixed deposit, we decided that basically we bought an initial chunk of $20 million in Bitcoin. And afterwards, we've been buying one Bitcoin on a daily basis to a dollar cost average it out. And the reason why we've done so is that basically, I believe that's a great hedge on inflation. And we're not speculative, right? When I say that, and that's the reason why we've been buying one BTC every day. We're looking at this from a 5-10-year horizon, which we do believe having Bitcoin versus cash will significantly outperform that. Now, with that being said, I think we've been very prudent because we still have right now over $70 million worth of cash on our balance sheet. So we believe the Bitcoin to cash ratio will be approximately somewhere in the range of 30%-35%. So we want to make sure we always have enough cash for operating and growth rather than basically a lot of the times you see some of these other listed companies. They just have a BTC strategy, but they have zero operating business. So when Bitcoin goes down for us, yes, again, we have zero debt. So it doesn't concern us because of our strong operating business, which really separates us from all the others doing this. Makes sense. And so, Danny, you've spoken about the strength of the operating business. You've showed us some of the historical precedents for growth. For folks who say, "Okay, they have made some divestments, maybe there's more on the horizon." How do you help contextualize why Europe makes sense to divest and why the rest of the assets might also make sense? Yeah. I mean, simply, right? So I want my management team's focus to be all in on IM8 given the strong growth momentum and the opportunity we see with the brand. If you ask, if you go to all the major GNCs on the ground, you ask people IM8, I mean, almost everyone knows the brand already, which is really, really rare in the supplement space. So be able to get that type of brand, that type of traction is incredibly rare. So for example, for Europe, we made the acquisition before we launched IM8 because we wanted to have our own 3PL distribution channel. It just makes it easier. However, we outgrew them so fast that instead of making additional investment to Europe, we are in the process of divesting that to a much larger organization that can also help us scale globally as this demand keeps continuing racking up. For Insighta-wise, again, it's not an operating business, but it is an investment that we have valued at $70 million. And while we are very positive on the growth, on the potential of that business, it's still early days in that business where it'll easily take another four or five years for commercialization given clinical trials. And we feel divestment of that and getting cash back to us will allow us to be able to create more shareholder value than holding on to that investment. Makes sense. Thank you, Danny. And maybe as we're hitting time, just to sort of summarize the value proposition for folks who they see the fast growth, they're interested, maybe they're on the fence for continuing the conversation, what would you say to them? Yeah. I mean, I think this is, again, a very rare opportunity in terms of having a public company be in IM8, which is a fast-growing consumer company. Again, I think key thing also is that management has significant experience in terms of scaling direct-to-consumer as well as even when we did COVID. So this also has a really strong foundation built for us given that we have, again, more than $120 million in cash in Bitcoin. The IM8 value is easily $380 million or more. We have the Insighta divestiture. And so all of this builds a very low downside, but significant upside potential. Because even for myself, when I put my investor lens on, you're always thinking about downside. What's the downside? But right now, I think we're trading pretty much at cash or slightly above cash and asset value. So I do believe the opportunity is very significant that you can invest in IM8, which is co-founded by David Beckham, Aryna Sabalenka, now new ambassador. We're also working on a few other new, very high-profile ambassadors into new sports. So I think, yeah, this is a very rare, unique opportunity where, to be fair, I haven't really went out and pitched the Prenetics IM8 story in the past because we didn't have a story. We didn't have a growth story. So only in the last three to four months, I've been talking to more investors. I was just in New York, Miami meeting with investors. And once they hear the story, they're blown away at the trajectory because they've never seen anything like it. And if we're able to get to $200 million in revenue next year in our second year of operations, which I believe we can, I think this is a significant hidden value that a lot of upside and very limited downside for people to come in. Great. Thank you for walking us through that. We are at time. I'd also like to thank you for sharing the presentation and taking questions today. Thank you, everybody joining, for spending time with us today. Right. Thank you, Alex.