12x19 - Episode 19

[bunniefuu]

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

Conway: PHOOZY is the
world's first thermal capsule.

It's like a space
suit for your phone.

You guys are my heroes.

Maxfield: Who wants the
soon-to-be-most-successful

"Shark t*nk" product ever?

Ugh!

Tired of grabbing
germy door handles?

Which of you is ready to fix
this door-handle dilemma?

The retailer that
rolls this out first

is going to own the front porch.

What are your sales?

$7 million in sales.

What?!

You're living the
inventor's dream.

I want to own 51%.

-I think that's a garbage
offer. -Screw you.

I've got to go live with myself

when I walk out of here.

Walk away.

That's how you do a deal.

♪♪

Narrator: First into the t*nk

is a simple product
designed to avoid germs.

♪♪

Hello,
Sharks. My name is Mike Sewell.

I'm from Springfield, Missouri,

and I'm here today on behalf
of my two business partners.

We are seeking $300,000

for a 3% stake in
our company... Ooh!

...StepNpull. Whoa!

-Whoa! -Wow!

Tired of grabbing
germy door handles?

Well, we've got the solution

that will let you
step right past them.

Sharks, I'm sure you've
been in a public restroom...

[ Pants zip ]
...washing your hands,

when the person next to you

has questionable
hygiene habits. [ Laughter ]

Take a look at this
guy. Greiner: Oh!

-Oh, Kevin! -Oh, my gosh.

Let's see if he washes
his hands after -- Ugh! --

all of that.

-[ Laughing ] Oh, gross. -Ew.

Disgusting.

♪♪

[ Chuckles ] Unbelievable.

Well, watch this.

♪♪

-Ha! -Alright.

[ Greiner chuckles ]

I didn't see that coming,
I have to admit.

Thank goodness that's a
StepNpull-equipped door,

so you'll worry no more.

StepNpull is a small device

that mounts on the bottom of
a commercial latchless door.

It offers the option of pulling
the door open with your foot

instead of grabbing
that germy door handle,

because we all know those
handle-bacteria battlegrounds

are a common touch
point for all of us.

The StepNpull is a great
option on any latchless door

where hands-free
operation is beneficial.

You can install it
in office buildings,

restaurant patio doors,

or clean-room environments
for healthcare professionals.

Although germs have been
a big concern for many years,

the COVID-19
pandemic has triggered

hyper awareness
around this topic globally.

Sharks, which of you is ready
to fix this door-handle dilemma

and take a step into our world?

-It's pretty clever. -Mike,
it's a great innovation.

Is there not other products
that do the exact, same thing?

There are products that are similar,
yes.

We do have that patented,
though.

What's the patent? What's
different about your product?

-The teeth? -About -- Yes,
it has the teeth.

Sewell: It has --
just the design.

You step down and
pull the door open.

It's a low cost to manufacture
because of the design.

So tell us about your business.

Yeah, so,
this is our 13th year in business.

Me and my two partners,
we had full-time jobs,

and it was a sideline business.

And the first five years
were fairly flat with sales.

We maybe sold $35,000.

And then, this year,
we've had a nice bump in sales.

I would imagine.

And we sold more in March
than we sold the whole time

we've been in business.
What'd you sell in March?

About a million seven. What?!

-Yeah. -Million seven?

-You guys are killin' it,
then. -$1 million?

-Wow. -Of course.

Our year-to-date right now is,

we're approaching
$7 million in sales.

What?! You what?

Wow.

How much do you sell
these to -- to wholesalers,

and what's it cost you to make?

Well, retail is $29.95.

Our U. S. cost to manufacture
is between $8 and $9... Uh-huh.

...although we've just worked
with one of our manufacturers

in southwest Missouri and
got the price down to under $7.

Yeah, 'cause he's thrilled to death,
too, right...

Oh,
yeah...'cause he's crushing it.

That was one of the
best things about it,

was the people we
employed during all this --

So -- So what percentage
of your business

is online versus wholesale?

About 25% distributors
and 75% direct.

Damn! Yeah, 75%.

You are k*lling it! Yeah.

Yeah, our website sales
are the highest sales channel

with about over 30 --
probably 35% of our sales.

Mike, I mean,
I always talk about the American Dream.

You're living the
Inventor's Dream.

You know,
the most valuable asset

we can never own is our time.

And you have an opportunity
here to make a choice --

take an investment
and hope you can just

take this back up to
millions of dollars a month,

or you can grow it the
way you always have

and it's worked for you,
and enjoy your time.

Not every business has
to grow to maximize sales,

because, again,
the one asset that's more valuable

than any dollar
you will ever earn

is your time and your
ability to enjoy that time.

So I'm out, but I'm telling you,
you don't need an offer.

Alright, thank you.

Herjavec: Mike,
you're k*lling it.

I think you'll continue,

but more at the $300,000 level.

I think you've hit a peak.

I don't want to
buy in at the peak.

For that reason, I'm out.

Okay, thank you.

I don't know how to value
this 'cause of the peak COVID.

I think I can add a
lot of value maybe

in cutting
customer-acquisition costs.

I don't know. I'm gonna
do the $300,000 for 10%.

I have a-a level of interest.

Have you ever gone to IDA?

-To where? -Ah-ha!

[ Laughter ]

International Door Association.

There's an International
Door Association?

There is something for
everything. I have not.

So,
I think that I could take it there.

But I also have a-a
fully automated factory

in New York that
I'm a partner in.

So I can reduce your cost,
probably,

and I can also
increase your sales.

Kevin wants 10%.
He brings nothing to it.

I'm gonna do it for 12%.
I don't agree with that.

$300,000 for 12%.

So,
I'm gonna tell you what I'm gonna do.

I see you have, like,
a commercial end,

and I see there's a consumer
end to this... Mm-hmm.

...because -- Why would people
put this in their homes, Lori?

No, I think people will
put this a lot of places.

I want to make you an offer,

and my plan would be to
do an infomercial with this.

I would do $300,000
for 5% equity.

I would want 50
cents back a unit.

And then once I've hit $500,000,

then the royalty will
drop to 20 cents per.

I think that's a garbage offer. Yeah,
I --

But I can help
you to blow this up

and get this into every retailer,
get it...

We all can do that.
We all can do that.

...onto television,
get it digital.

I don't believe that. Lori -- Lori,
I appreciate the offer.

I-I struggle with the
infomercial because

it isn't a consumer
product. It isn't.

No, but it can be a consumer
product. To get that ROI...

It's never gonna be that.
...outside of commercial,

I-I don't know that
we would get that

because businesses will buy.

Yes. People in a home will not.

No, no, I totally get that,
but what I'm saying to you is,

if we do it effectively,
right, so...

O'Leary: Not a consumer product.
Lori -- Lori, is your pitch over?

Greiner: ...I think what
happens is when --

Mike,
Mike -- I have -- You got three offers.

What do you want to
do? Let me just finish.

I want to -- I mean,
I want to -- You're being so rude.

You're saying the same thing. Lori,
we got your infomercial.

Your infomercial's done. I'm just
gonna keep going just to make him crazy.

Oh, my gosh. When you do that,

there's tons of people out
there that have businesses

that aren't gonna be in
that distribution channel

that you are already in.

I think I've heard enough.

So,
I'm gonna give you $300,000 for 8%.

Ooh, going down.

Ooh, I like that.

Um, Daymond, can you do 6%?

I just went from 12% to 8%.

Stick to your g*ns,
Mike. Stick to your g*ns.

And I'll help clear the
air. I'm gonna go out.

♪♪

Thank you.

Mike, down to two offers.

Yeah. Cuban: Stick to your g*ns,
Mike.

♪♪



I'll do it at 7%.

♪♪

Daymond? I know
the value I bring.

I'll -- I'll do it at 8%.

You got a -- You got a lot of margin
there... You don't need him, Mike.

...and I can bring
down those prices.

Beyond the manufacturing help,

what's your vision for --

Well, I-I told you about a trade
show you didn't even know about.

Right. Well, that's true, yeah.

[ Laughs ]

O'Leary: I'll put more
pressure on if you want.

I'll do it at 6%.

Mike, what are you gonna do?
Now we're just begging, Kevin.

No, no, I'm just -- Look,
you're not gonna get what you want

'cause I'm gonna keep
squeezing. Walk away. Walk away.

♪♪

Mike, Daymond's $300,000 for 8%.

Kevin's $300,000. He's at 6%.

Yeah,
he's at 6%. What are you gonna do?

♪♪

-Tough call. -Yeah.

♪♪

Kevin, let's do it.

Yes!

You made the right decision,
Mike. [ Greiner laughs ]

Mike, you've built a great
business. Congratulations.

-Congratulations.
-Congratulations.

I think you made a
really bad mistake,

but I wish you all the best.

Alright, thank you. And
congratulations on your success.

Good luck, Mike.

-Thank you. -Yes!

That's how you do a deal.

Sewell: A lot of businesses are
not making it through this time,

and we've been blessed
to have an opportunity

that does help
businesses open back up.

It helps keep their
employees and customers safe.

And for us to be in this
position is very humbling.

And we're -- we're so grateful

that, you know,
we have the opportunity.

♪♪

♪♪

Narrator: Next up is a safer
way to receive deliveries.

♪♪

Oh, God.

♪♪

Hi, Sharks, I'm Rebecca.

And I'm her husband, Eric.

We're from Arizona,
seeking $150,000

for 15% equity in...

DynoSafe! DynoSafe!

People are ordering home
delivery for everything now --

clothing, electronics,
and, more importantly,

food, medication,
and other perishable items.

Yeah, the are. Line, please.

[ Laughter ] Line, please!

-Thank you very much.
-You can start over.

Yeah, feel free to start over.

People are ordering home
delivery for everything now --

clothing, electronics,
and, more importantly,

medicine and food...

Eric: [ Whispering
] "Other essential."

...and other essential items.

[ Laughs ] Oh,
my gosh. I'm so sorry.

You know,
we all need essential items, so...

-You can start over. -Essential,
perishable items.

-Oh, my gosh. Oh,
my gosh. Okay. -Yeah, take a breath.

-Tell me the line. -
"Other essential items."

"Other essential
perishable items."

And other essential
perishable items.

[ Mumbles ] Okay.

And other essential
perishable items.

But how do we keep them safe,
secure, and fresh

until someone can get them?

Introducing...

DynoSafe! DynoSafe...

...the patented smart-home
temperature-controlled safe

that secures to the porch

and is essential for
contactless deliveries.

Here's how DynoSafe works.

Customers place an order

and assign a temperature
to it on our easy-to-use app.

And because it is
climate-controlled,

it protects perishable
items like groceries,

takeout food,

and medication...

from the elements,

keeping them safe,
secure, and protected.

Whenever a simple, one-click,
contactless delivery is made...

The DynoSafe app sends
an alert to the customer

that their delivery has arrived

and they have
sa-- p-- they have...

♪♪

[ Chuckles ]

They -- They're
happy that it's protected

at the right temperature.

[ Laughter ]

Sharks,
the retailer that rolls this out first

is going to own the front porch

and push their
competitors to the curb.

Thanks to DynoSafe,

we can now safely
deliver our pitch...

To you. to you.

[ Laughter ]

-Good job. -Whoo!

-Yay! -Rebecca, you did it!

How did you come up with this?

I came up with this idea
because I owned a business

in the Dallas area,
and it was very successful. Yeah!

What business? It's a medi-spa.

I came up with the idea
because as a business owner,

I had a patient that asked me

to send them some things,
and I did,

and she claimed she
never received them.

So,
we all dread that phone call.

So,
you pull another one off your shelf

and you send that one to them,
too.

And it's really
eating into our profit.

And where are you now at
the stage of the business?

I started out with
a lot of research,

and I -- I got the patent
completely issued.

And so we've tested it in
Scottsdale and in Seattle.

-I mean,
how many homes? -How many physical homes?

Oh, okay, three.

Now, how did you engage
with the large online retailers?

There's one really,
really big one... [ Laughs ]

...that everybody orders from.

What happens with them?

We have had lots
of conversations

with those big people
and also grocery.

So, during this process,
what I learned was

grocery is the most
desperate to roll this out.

And I learned this
before coronavirus.

Coronavirus has just
catapulted everything forward

about three years. Right.

After you tested in
only three homes...

Right... did you
actually sell any?

No. So,
this is a prototype. That's all we have.

Our business model
is to license this out.

Our conversations with
grocery has revealed

that they desperately
want to roll this out

as part of a subscription model.

Are you licensed to any of them?
You're not selling this to the consumer.

I haven't licensed any yet.

I'm in conversations
with someone --

a-a great big-box retail
in the United States.

Let me tell you the thing that's

the -- the most
special about this.

My patent protects
having the ability

to do one-click unlock

and adjust the temperature inside,
the thermostat.

So you want to have
a subscription for it.

And I'm guessing it
sends a unique code.

The software sends
a unique code... Right.

...to whoever's
doing the delivery.

That's right. That's --

So there's not one code that
everybody uses all the time. That's right.

I go to the DynoSafe app and say,
"Hey, yeah,

I'm gonna order some groceries."

A random code --
one-time-use random code,

and I assign a
temperature to that.

So if I know I
have frozen items,

or if it's just produce,

I'll set that temperature,
and I'm done.

Here's my problem. Okay.

If I went and talked to my
relationship guy at Amazon

and say, "Look,
theft is a huge problem.

What are you guys
doing about it?"

Now, am I to assume that
they're not working on that?

Yeah. That Rebecca
is working on it?

Well,
I've actually spoken with them

and Walmart and
grocery executives.

And everybody's saying,
"We can't do it.

Only Rebecca can do it."

I-I own the patent. Yes.

And they cannot add

the temperature control
and smart together.

The combination is really smart,
right... Yeah.

...because the temperature
control really is the key,

right,
because there's a dozen different ways

to do a smart unlock.

Yours having to do a code

is going be outdated very quickly,
right,

because it'll just be an
app that you walk up,

it says, "Oh,
I recognize my app via Bluetooth, RF,

whatever it may
be." Eric: Right.

And it sends a code to that
app that allows it to be unlocked.

And so because you have so
far to go in terms of catching up

with state-of-the-art,
in terms of walk-up unlocking,

that's a real challenge,

and it's going to be very
difficult for you to keep up.

And so for those reasons,
I'm out.

Okay. I am devastated to hear that,
honestly.

Why would a retailer take
such a big investment risk

to then lease it to a customer

who may not be a
lifelong customer?

I just think it's gonna
be really challenging

to get the retailer
to take this in

and then issue it back out,
so I'm out.

And -- And I just --
I need to go back.

I think I was kind of,
you know --

obviously,
I was incredibly nervous.

Rebecca,
I think we understand -- No, no, no.

Let me ask you a question,
'cause I can see... Yes.

...you're so passionate about this... Yeah,
Lori.

...and I understand,
you know. And I, obviously --

I know you're nervous
being here today.

Tell me, how much of your
own money did you put into this?

We're about $500,000 in.

-Whoa! -$500,000?

-Whoa! -And that's your own?

We're all in. We're definitely all in,
Lori.

No,
there's -- there's no joke. Yeah.

I think what you
did is so smart.

I love that you have a patent.

But what I don't love is,

is that I'm still a little
confused about all of this.

I just can't think of,
what are gonna be all the steps

that I'm going to
do to help you?

So, unfortunately,
for these reasons, I'm out.

♪♪

[ Exhales sharply ]

Rebecca, is the $500,000 gone,

and what did you spend it on?

So, it's on IP,

and it's also on the engineering

and trade shows and
securing relationships.

I have a distributor who
has a current relationship

with a large-box retailer

who they -- they -- they
already provide to them,

they distribute to them
the locker systems --

the temperature-controlled
locker systems.

But, Rebecca,
it doesn't work that way.

If the distributor was truly
interested and you said to them,

"Look, I have this IP,
I have this patent,

but I don't have the
money to make the box,"

they would do it.

They would do it. You're
not a product company.

With all due respect,
you're not a software company.

To Mark's earlier point,

the -- the way you're
describing the software

and the locking working,
it's, like, 20 years ago.

I can tell you about technology

that can secure
a device like that

just by somebody
walking up to it.

There's better ways to do it.

But if the patent holds
true for the old way,

it would also hold true
for the new way. Yes.

Robert, where are you gonna do?

[ Sighs ]

Ye--

My new-world ways of doing this,
securing stuff,

makes me very interested
if the patent holds.

But I don't want
to own 15% of it.

I want to own 51% of it.

Oy.

♪♪

♪♪

Narrator: Three Sharks are out,

but Robert is interested
in Eric and Rebecca's

temperature-controlled smart locker,
DynoSafe.

But he wants a much
bigger stake in the company

than the 15% for $150,000
they came in offering.

I don't want to own 15% of it.

I want to own 51% of it.

Oy.

O'Leary: Let me take a
different s*ab at it, okay?

I also don't know if
your patent has merit.

I just don't. But I'm
gonna do the $150,000.

But I don't want control.

I'd like to get 40%,
'cause either this is binary... Oh!

...it's either gonna
work or it isn't.

We're going to go and
license the technology.

That's my offer.

You have two offers.
You have to pick one.

What do you want to do? Well...

♪♪

The thing is, Robert,

I can't give away the
majority of my business.

I mean,
I've worked at this for three years.

We've got
everything on the line,

and I've got to
go live with myself

when I walk out of here.

Um...

Here's -- Here's what I'll do.

[ Sighs ]

You came in looking
for $150,000 for 15%.

I will give you the $150,000

for... 25%.

But...

we create a board
of directors. Certainly.

I get more seats
than the two of you.

That's original.

If the three of us
get in a room... Yeah.

...and there's two
paths in front of us...

Right.

...I need the ability to say --

Robert, do you want me to be
one of those board seats? For...

Yeah, I'd love to have Mark.

Greiner: He wants to
be a controlling member.

I-I-I understand that. So that's
why he wants more board seats.

Lori, thank you.

I would love that.
I would love that.

Thank you. Just to work with the
two of you -- So tell him you got a deal.

Is that a yes? Yes, yes, yes!

Yes! Virtual high five!

-Ooh! -Congrats.

-Thank you,
Robert. -No. Thank you.

-Thank you. -Congrats.

Rebecca: I'm super excited.

You know, at the end of the day,
I have two people

who are incredible
in the tech industry

and Robert, especially,
with security.

And, you know,
I think it's -- it's amazing,

and it's just gonna
propel us forward faster.

Creative, Rob. I like it.

No, hey, Robert,
it's either Ring or it's nothing.

Yeah.

That's exactly
what I was thinking.

I-I don't want to
make that mistake.

If the patent holds up,
which it sounds like it is,

'cause it could be huge.

This is a big problem.

If the patent -- If the patent holds
up for what it suggests it can be...

It has big potential,
yes... then it can be done.

♪♪

Narrator: Earlier this season,
we watched Michael Pan

make a deal with Mark Cuban

for his plant-based
jerky company,

Pan's Mushroom Jerky.

It's now or never, Michael. No,
you can't do that.

Mark, you got to deal.

[ Cheering ]

Narrator: Let's see
what he's up to now.

Pan: We expected a sales
bump for our mushroom jerky,

but what happened after
airing on "Shark t*nk"

completely blew
away our expectations.

The year before "Shark t*nk,"
we did $750,000 in sales.


we did $650,000 in sales.

And within four days,

that number grew to
$1 million in online sales.

We immediately sold out,
and in a time when people needed jobs,

we went from a team
of 10 to 30 employees.

We're working very
hard 24 hours a day

in order to catch up
and meet demand.

For those of you who are
still waiting for your order,

I can't thank you
enough for your patience

and your support as we go
through these growing pains.

Cuban: Never in my wildest dreams
did I think it would be that huge.

I knew it was gonna be big,
but, oh, my goodness.

Pan's Mushroom Jerky
is currently being sold

in over 800 locations
around the country.

In the next few months,
we plan to launch

in over 1,000 new
locations nationwide.

Having success with a
food product is difficult.

But when you have
a great product,

when you have a passionate,
smart entrepreneur,

you have that chance
to break through.

It's really easy for me to
see when concepts are good

from a business perspective.

It's harder to know
a great entrepreneur

when they first
walk on the carpet

in the short time we have.

But when you put the
two together and you click,

the results are astounding.

Pan: I've been working to
make mushroom jerky a thing

for a very long time.

I've been told no
over and over again.

Having the trust of Mark
Cuban to invest in our company

and also the response from
the orders from the show

is completely overwhelming
and tremendously satisfying.

For those of you who are
wanting to follow your dream,

I encourage you to never give
up and to keep pushing forward

and find a way to make
your dreams come true.

♪♪

♪♪

Narrator: Next up
is an affordable way

to make a trendy
health food at home.

♪♪

Hello, Sharks.

I'm Merrick Maxfield from South Jordan,
Utah.

For only 150K,
you can own 7% of a new technology

for something we all need.

Did you know humans
can't live without probiotics?

Probiotics are microorganisms
that live in our bodies

and help us in hundreds of ways,

including boosting
your immune system,

fighting diseases,
even improves sleep.

You can get probiotics
from healthy foods like yogurt

or even from pills.

But pills are super expensive.

Now, we have eight kids,

so I bought four
cases of yogurt.

Guess how long those


[ Laughing ] Not even two days.

So we bought four yogurt makers,
but it took forever

and would fill the
sink with dishes.

So, Sharks,
that's when I decided

to stop the madness
and went to work.

[ Laughter ]

After 27 generations
of prototypes,

we ended up with the perfect,
inspired solution.

Introducing the Probiotic Maker.

Cuban: Whoa! [
Greiner chuckles ]

So, simply add a starter packet
with 11 types of probiotic seeds

to a bottle of milk
or milk alternative.

♪♪

Then slide on the
Probiotic Maker...

[ Laughter ]

...and plug it in
overnight. That's it.

-That's it? -I don't understand.

It's as easy as
making eight kids.

That's it! [ Laughter ]

That's not easy, I'll tell you.

My wife will tell you.

[ Laughter ]

So, here's some probiotics that
have been cultured and cooled.

So, let's go ahead and
make a giant parfait here.

You can see the
thickened probiotics.

-Wow. -Add the --

you got some granola,
you can add some fresh berries.

Now let's flavor
an entire bottle

with some fresh strawberries.

Ooh. It is so good.

Don't spill it.

Give it a little shake there.

So -- Aah!

[ Greiner chuckles ] Alright.

I'm making more
mess than my kids.

So,
best part is you control the sugar,

the fat, the milk type,
the flavorings

to make yogurt,
kefir, smoothies.

Just one batch is
equivalent to hundreds of pills

and can save over 100
pieces of plastic and garbage

from polluting our
oceans and landfills. Wow.

-One batch. -Wow.

So, who wants a taste of the
soon-to-be-most-successful

"Shark t*nk" product ever?

[ Laughter ]

I-I-I got a que-- Is this safe?

[ Chuckles ]

Yeah. Cuban:
You're gonna find out.

It is 11 types of
fresh probiotics.

So if you start
with the green one,

that one is made
from a high-protein

almond and cashew
milk alternative.

Oh, it tastes good.

Oh, it's really good. Yeah.

Okay. No,
it's -- it's like desirably good.

Like,
I want to go buy it. Very good.

- "E" is good. -Yeah,
it's like cream.

Now try "B." "B" is
my personal favorite.

It has a little sugar
or sweetening in it.

Yeah, I-I flavored these.

[ Smacks lips ] That's
yogurt-y. That's very yogurt-y.

Ugh!

Are you worried at all about

somebody not doing
the process correctly,

tainting the milk,
and poisoning themselves?

Is there any risk of that?

So, as long as you start with

a fresh, unopened bottle of milk

that's been purified, you're --

there's not the
bad seeds in there.

O'Leary: So you're
not worried about that?

Merrick,
all you're doing is you're heating --

This is just really a heat pad?

Yes. It does it all
magically overnight.

It's all a*t*matic.

And this targets
body temperature.

I had the inspiration --

If you want probiotics to
thrive at body temperature,

then why not grow it in
the body temperature?

Why has no one
thought of this before?

What are your strains
of probiotic in here?

So, this, um...

Yeah,
the lactose -- the most common, uh...

lactobacillus, "bifidobim,"

and, uh, "rhasmosus,"
"acidmophilus," so...

Listen, I gotta tell you --

When you sell something
that people ingest,

it is really important to know

and have on your
packaging... Yep.

...because every
probiotic will tell you,

what are the exact probiotics in
it... The exact probiotics. Well --

...the names of them. Herjavec: Merrick,
I may not know

the names of all the strains... Oh,
yeah.

...but I do know the name of,
what are your sales?

[ Laughs ] Okay, so in 2018,

our sales were about $22,000.

How much?

-$22,000. -$22,000.

$22,000.

And then last year's sales

increased by, like,
almost 350%...

To what? ...to about
$76,000. And then --

How are you worth $2.5 million?

Hold on. And then?

We went to the -- the
International Housewares Show.

There, we were told that we
needed to get UL certification. Got it.

And so we lost most of last year

working through the
UL certification process.

And your sales this year?

And our sales this
year -- like $18,000.

What? Because --

Oh, wow! So, what it is --

Okay,
let's talk about anger management.

I have been working
very hard this year,

as you may know,
on anger management.

You came in here...

Greiner: [ Laughing
] He's failed today.

...at $2.5 million valuation
with $18,000 in sales.

Do you see anything
wrong with that at all?

That is -- during the COVID,
there's been $18,000.

Lifetime sales is
about $150,000.

I get it,
but the trajectory of sales is this.

This is not good. This is good.

Not good. Good. Yeah.

Merrick,
what does one of these cost?

-Yeah. -Okay.

The Probiotic Maker
sells for $99.95 MSRP.

$99 for this? Yeah.

Right now,
it's just under $20 to make them.

John: I think it's -- it's --

With me, I think that you have
a huge market because I'm a --

I'm a -- you know,
someone who takes the stuff.

But I don't know
enough about science.

I'll be very honest.
I don't know.

And Lori and some
of the other Sharks

really know, like,
FDA approval and stuff like that.

So I just don't know if
it's worth the risk for me.

So I'm out. Okay,
sorry to hear that.

I do think that this
is really interesting,

because I'm a probiotic taker,
believer.

They tasted great.

The only problem for me is I
just don't see anything on this

that gives me all the already
tried-and-true safety testing

and things that I
would want to see

to say, "Okay, now I feel safe."

Herjavec: Is that your
only problem? This is all...

It truly is my only
problem... FDA-certified.

You're not there yet for me

to feel comfortable
with it as an investor...

So, we can put whatever...
...regardless of the valuation.

So I'm sorry. I'm out.
...whatever you would like.

Alright,
I'm sorry to hear that. I'm sorry.

O'Leary: Why in the
world would you want to

waste your time with this?

The mountain you have
to climb to tell consumers

how to use this thing,
convince them to try it,

even educate people around
the benefits of probiotics --

that's crazy.

Like,
why would you even attempt to do that?

I don't even want to talk
about the $2.5 million valuation.

You know that was a mistake.

This is a horrific idea and,
in some ways, evil.

That bad. That bad. Greiner: [ Laughs ] Oh,
come on.

-Alright. -I think there's evil.

Cuban: What are you gonna do,
Kevin?

Oh. Oh, I'm out.

Merrick, look,
I don't see the $2.5 million valuation.

I'm out.

The concept is really good,
right?

You just aren't quite there yet.

I mean,
as smart as you are, right --

I am having people
from a hospital of --

a liver doctor called me,
a gastroenterologist.

Merrick, Merrick,
hold on, hold on.

What I'm gonna tell you is,
functionality-wise,

I understand completely,

and everything
you're saying rings true

and makes perfect sense, right?

But the hard part is the marketing side,
right? Yes.

Because you're
having challenges here.

There's just too many things

that I'm uncertain about from
the marketing side. We could --

And so for those reasons,
I'm out.

We could do a
contingency on whatever --

You're just early. If
you didn't come in here

saying this was
worth $2.5 million,

you would have gotten
a deal. I just had no idea.

I know why you
said $2.5 million.

You got eight kids.
So make me an offer.

I'm sorry,
Merrick. You're not quite there yet.

Alright, so everybody's out?

-Everyone's out.
-Yes. Good luck.

-Good luck, Merrick. -Good luck.

Thank you.

Greiner: Good luck,
Merrick. It tasted good.

Oh.

I-I just can't fathom
why they wouldn't want

to take a chance on this
tremendous opportunity.

It's the lowest-cost probiotics,
the most convenient,

the best tasting,

and you can save the
planet at the same time.

What -- What more do they want?
What more do the Sharks want?

He was doing
$18,000 in sales. Oh!

He said the company
was worth $2.5 million.

I really do think that he
has a good idea here, but --

-Kevin, plug it in. -Lori,
Lori, Lori, Lori.

[ Laughs ]

I'm gonna go plug my head in,
okay?

-Please do. -That was the worst.

♪♪

♪♪

Narrator: Next into
the t*nk is protection

for an important
part of modern life.

♪♪

Hi, Sharks. I'm Kevin Conway,

and I'm from Charlotte,
North Carolina.

And I'm Josh Inglis from Atlanta,
Georgia.

We're here seeking $500,000

for 10% of our company, PHOOZY.

Now, that may sound expensive,

but you know what's
really expensive?

Our phones, our laptops,
and our tablets,

especially when you have to
replace them because of damage.

Just leaving your
phone out in the sun

can cause permanent
battery damage.

Drop it in the lake? It's sunk.

And I could've taken a selfie
on that double black diamond

if my phone hadn't d*ed. Sure,
dude.

"Double black diamond." No,
I swear.

My phone d*ed from the cold.

Anyway,
that's why we invented PHOOZY.

PHOOZY is the world's
first thermal capsule

to protect your
expensive devices

from overheating in the sun,

extend battery life in the cold,
float in water,

and provide m*llitary-grade
drop protection.

Did we mention that it's made
from space-suit technology?

It's like a space suit for your phone,
literally.

But don't just
take our word for it.

Sharks, we want you to put

our patented
technology to the test.

Daymond, can we invite you
up to the climate-testing lab?

-Yeah. -Okay.

Get in the suit,
Daymond. Get in the suit.

-Let's go. -Send
him to outer space.

We have a lab coat for you,
along with safety glasses.

Sharks,
we'll be using this thermal-imaging camera

so that you can see the
hot and cold temperatures

through each of the simulations.

[ Light laughter ]

So, what we've done is we've
placed an unprotected device

and a phone inside of the
PHOOZY thermal capsule

for each of your simulations.

The first one is gonna
be the extreme heat

of the solar simulation.

So go ahead and touch the
unprotected device right there.

It's pretty hot. John: Yeah,
it's really hot.

I don't even know if this
phone probably would work.

Now pick this up?

-Sure. -Pick up the PHOOZY.

Uh-huh. And then you can
open it up with those tabs on top

and remove the device,

and you can feel the
temperature difference.

Wow. It's almost
-- it's almost cool.

You guys can
actually see right there.

That is the phone that
was inside of the PHOOZY,

and then that phone...

Yeah, and this bag is not hot.
...right there is well over 100 degrees.

-This protector is
not hot. -Not hot at all.

-Okay. -Correct.

So, now your next mission
is going to be to experience

the freeze of the
Arctic simulation. Okay.

You can carefully touch
that unprotected device

because that is
negative-50-degree dry ice. Whoa!

Be careful there. It's very,
very cold.

But you can see the
temperature there.

Now go ahead and pick up the PHOOZY,
and same thing.

Remove the device.

Let's check the
temperature of that device.

This is cold, though.

Yep,
you can see the difference there --

about 65 degrees of
that device... Uh-huh.

...but it's still
gonna work... Okay.

...where the other
device is gonna be

completely frozen and dead.

You see the temperature there --

it's going greater than
negative 40. Okay.

-Wow. -Be careful.

So, Daymond,
your final simulation

is gonna be what we call our
"Ohhh No!" simulation. Okay.

So that PHOOZY there has
a phone inside the blue one.

Go ahead and drop it in.

-Drop the whole one in? -Yes,
sir.

Drop the whole thing in.

As you can see,
our sink-proof technology

keeps your device at
the surface of the water

so you can quickly retrieve it.

Okay, I got it.

-Yeah. -Very cool.

So, thank you,
Daymond. Good job, Daymond.

Good job, Daymond.

Thank you. It was nothing.

Tell us about you guys.

So, for the past 25 years,

I've been a professional
race car driver,

having raced at
the highest levels

of motorsports in America.

I raced in the
NASCAR Cup Series.

You raced the NASCAR Cup? I did.

I was a Rookie of
the Year in 2010

and transitioned to racing
sports cars with Lamborghini.

Inglis: And prior to PHOOZY,

I spent over 15
years as an executive

at one of the largest
home-improvement retailers,

helping grow online
revenue from $100 million

to over $5 billion in 2017.

-Wow. -Wow. How did you guys --

How did you get together
to start the company?

We've been great
friends for over 20 years.

We're always talking
about business ideas.

But finally, in 2016,
Kevin came to me with this great idea,

and, honestly,
I was ready for a -- ready for change.

I know this space from
a bunch of products

over the years on "Shark t*nk,"

and there are many, many, many,
many case companies... Sure.

...and are you telling
me there isn't one other

that gives me protection
against heat and cold

and drop protection?

I'm having a real hard
time believing that.

Sure. There is not.

In fact,
we have an issued utility patent

around our thermal technology

and also the drop and the
float components of our product.

Is there even a demand for this?

In the 36 months since launch,

we've done $1.9
million in sales.

-Hello! -Okay.

We did $700,000
in sales last year.

This year,
we'll be at $1.5 million.

We're projected to be
at $4.5 million next year.

Is this through retail?

It's almost all
direct-to-consumer.

Now, that's great.

That's impressive.
That's very impressive.

What will you make on that?



Why does one cost?

Our blended gross margin is 88%.

Cuban: That's your gross margin?

-Yes. -Yes.

Damn!

Landed cost is
anywhere from $3 to $15.

Retail is anywhere
from $30 to $70.

This one that's silver
that has an iPhone in it --

Is this the lowest...?

It is. That's the entry point.

That is our entry point.

That is just under $3,
and that sells for $29.99.

The black one -- that
cost is about $3.85.

That product retails for $34.99.

The silver one
there is just under $5,

and that retails for $50.

You guys are my heroes. Oh,
my God.

Herjavec: Have you
raised a lot of money,

and how much
money have you put in?

Sure. So,
we have not raised any money.

We have bootstrapped
this entire thing.

Josh and I have put in $85,000.

We've been profitable every
quarter since launch. [ Clapping ]

-Wow. -Wow.

And we've just slugged it out.

I was not expecting that answer.

You guys, look,
the product's phenomenal.

Your accomplishments
are phenomenal.

I'm not the rugged outdoors type,
you know?

It's just not my scene,
so it would be really hard for me

to support you promotionally.

So for those reasons, I'm out.

But congratulations.
What you've been able

to accomplish so
quickly is phenomenal.

-Thank you. Thank
you. -Thank you.

So what do you need
my $500,000 for?

So, the biggest thing
for us is scaling our team

to add a few key positions,
because it's just Josh and I.

It's really hard
for us to keep up

and -- and to
support that growth.

If I give you $500,000

and I participate
in 10% distributions,

it's gonna take me 10
years to get my money back?

Or how fast do you
think you're gonna grow?

It should be more
like three to four years

to get your money back.

Guys,
let -- let me put it this way --

Rather than fight
about the equity here,

because I-I actually think
you're overvalued a little bit,

I would do the deal this way.

I'd give you the
$500,000 for 4% equity,

and I'd want a dollar a unit,

'cause your margins
are so crazy high,

until I get back a $1.5 million,

and then the royalty
goes away forever.

But, I mean,
I think you guys are fantastic operators.

What do you say, guys?

Would you do that royalty
till you get $1 million back?

I'd do it $1.2 million.

Can we go to $1 million?
Can we make it $1 million?

I'd do that deal.

I'd do the deal.

Now you got some action going,
don't you?

♪♪

♪♪

Narrator: One Shark is out,
and there's a bidding w*r over

Kevin and Josh's
device-protection company,

PHOOZY.

Can we go to $1 million?
Can we make it $1 million?

I'd do that deal.

I'd do the deal.

Now you got some action going,
don't you?

I will do the
$500,000 for the 4%

until I get the $500,000 back.

Same royalty.

Okay.

Let me tell you what I think of this,
okay?

You blow me away at the
job that you did by yourselves

in design, manufacturing,
marketing.

So what's your offer?

$500,000, 4% equity,

a dollar per unit to $1 million,

and then the
royalty will go away.

I'll stick it to $500,000.

Guys,
this is -- you are great operators.

This is an operations business.

I love the B2B play.
That's where I can help you.

You realize you're just getting
your capital back, Robert.

More is great. You
don't need to do that.

Yes, you do,
because what you don't know

is what can get you
in trouble. Absolutely.

So you need experience,
and you need someone

that can help you from
falling into some pitfalls.

Would you guys
want to work together?

I would partner with Robert if
we each got 4% equity. Yeah.

At the $500,000 royalty?

Will you match
Robert's deal on that,

till you get your money
back and you each get 4%?

Come on, Lori. What's $500,000?

I mean,
this is an operations thing,

Let's just get our money
back. I think that's super fair.

My feeling is

if you go $1.50 royalty per,

then I'm good with that deal.

You have a great margin.
It's not gonna matter to you...

Just to put pressure...
...but it's gonna matter to me.

...let me modify my offer,

just to squeeze
their heads a bit.

I want the royalty to be $1.50.

Then tell them
what the offer is.

Okay. I'll do this deal --

$500,000 for 2.5%,

and I'd want $1 a unit
until I get $1 million back.

Why give up 8%

if you really believe
in the equity?

Why would you give up 8% equity

and only get $500,000?

Why would you do that? That's a great deal,
Lori.

They get the both of us.

Because you get the both of us,

and think about it.
They're not that valuable.

I mean, that makes no sense to
me. But you guys think about it.

That is not an
economic decision.

Think how much faster
you're gonna grow.

You're gonna dominate
the market with these. Yeah.

She's right.

♪♪

Let's do it.

-Whoo! -Whoa-ho!

Cuban: Congratulations,
guys. Well done.

Ahhhhh!

Yeah, whatever Robert just did.

-Lori! -[ Laughs ]

Both: Whoo!

Robert, I gave up my seat at
Le Mans to be here this weekend,

so [laughs] that's how
much -- how important this is.

Oh, that's -- You are all in,

'cause I don't know if I
would have done that. Wow.

-Thank you,
guys. -Congrats. Well done.

-Thank you. -Thank you, guys.

♪♪

Inglis: Robert and Lori
were very passionate

about our product,

and they were such
big fans of Kevin and I,

we had to do the deal with them.

They even gave us a higher
valuation than we came in with.

We've seen a lot of
episodes of "Shark t*nk"

where that was not the case,
so we're very grateful.

O'Leary: That's
the stupidest deal

I've ever seen you
do on "Shark t*nk."

That's an unbelievably
dumb deal.

The thing that you
didn't really focus on

or think about is licensing.

The man is loaded with
patents. It doesn't matter, Lori.

-Yes. -Yes!

This product is so amazing.
You have no upside on your capital

and only equity risk.

They are the Sharks,
and you are the tin foil. N-N-No!

No! Kevin, screw you.

Learn, grasshopper.

Listen to the Shark and learn.

Dumbest deal I've ever seen.

♪♪

♪♪

♪♪