Pressure BioSciences, Inc. (PBIO) Acquisition of Uncle Bud’s Conference Call (Transcript)

Pressure BioSciences, Inc. (OTC:PBIO) Acquisition of Uncle Bud’s Conference Call February 5, 2024 4:30 PM ET

Company Participants

Richard Schumacher – Founder, President and CEO

Jeff Peterson – Chairman of the Board

John Hollister – Head of Sales and Marketing

Bruno Schiavi – President of Uncle Bud’s

Garrett Greller – Director of Marketing and Co-Founder of Uncle Bud’s

Toni Braxton – Brand Partner

Operator

Greetings. Welcome to the Pressure Bioscience Investor Call to discuss the recent Uncle Bud’s Acquisition and other opportunities. At this time, all participants are in a listen only mode [Operator Instructions]. Please note this conference is being recorded.

I will now turn the conference over to your host, Richard Schumacher, President and CEO. You may begin.

Richard Schumacher

Thank you, John. Appreciate and appreciate everybody joining us today. And we’re excited to introduce some new voices. We have two familiar voices, Jeff Peterson — or actually three, myself, CEO and Founder; Jeff Peterson, our Chairman of the Board; and John Hollister, who is our Head of Sales and Marketing. We also have Bruno Schiavi. Bruno is the President of our new subsidiary, Uncle Bud’s Health and Wellness; and Garrett Greller, who was — Garrett was one of the Co-Founders with Bruno who heads up marketing at Uncle Bud’s. We’re going to hear from everybody in just a few minutes. But as always, I need to read a cautionary statement. The following remarks that we may have in this conference call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, those detailed from time to time in the company’s filings with the Securities and Exchange Commission. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which such statements are based.

So we’re here today, not for our normal quarterly or yearly call, because we’re going to talk about the acquisition of Uncle Bud’s, we’re going to talk about how I like to say one plus one is going to equal 10 in this case. We’re also going to talk about our move. We’ve talked about this for over a year but we literally are moving this week to a new facility, which is going to change our lives, it’s going to change the company for the better. We’re going to talk about some new products that we’re working on and some areas that we can get into. And we’re going to hear from Bruno and Garrett in particular about Uncle Bud’s. But before we do, I’m going to ask Bruno and we’ll keep it short. But these guys are terrific, they’ve got terrific background, they got a terrific story. So Bruno, if you could kindly just give everybody a short synopsis of your background I’d appreciate it.

Bruno Schiavi

Thank you, Rick, and thanks, everybody. We’re super excited to be part of PBIO. And Garrett and I have been looking forward to this day, because we’ve got some amazing, amazing things lined up. I’ve personally been in retail for about 25 years, I’ve launched many brands, a lot of them that you’ve probably heard before and generated billions of dollars in retail sales with the various brands that I’ve launched over the last 25 years. Really excited to jump into this new venture and really expand what we’ve already achieved with Uncle Bud’s. We’ve worked really hard to build a brand that’s a community, a brand that is recognized, and our logo has always been about family values and a trusted family formula. So we’re super excited to be working with Rick and everybody at Pressure BioSciences, and looking forward to showing you some great results over the next 12 months.

Richard Schumacher

Awesome. Thanks, Bruno. And Garrett, maybe a little background from you as a Co-Founder of Uncle Bud’s. And a little bit about where you want to take it, because we’re going to spend more time in just a few minutes about that.

Garrett Greller

Of course, and thanks for the intro. And Bruno and I are both looking forward to being on the PBIO team. Just a quick background about myself and why Uncle Bud’s was started. I was diagnosed with arthritis when I was 14 years old and wanted to create a more natural solution. And Uncle Bud’s has all started originally with one amazing pain relief product and we’ve grown the brand from that one product to around 70 different products within hemp, CBD and just normal cosmetic space. And we’ve really become a leader within this category. In the trusted brand, as Bruno said, due to our affordable price points and what people come to us for trusted and quality formulas, and we’re excited to be partnered with PBIO to continue to create high quality products and bring them to market and tap into our community of around 800,000 people across social media and email and looking forward to what we can do to keep growing this brand.

Richard Schumacher

Thanks, Garrett. So John Hollister, very briefly, because you’ve been on the call before, maybe you could remind everybody of your role here at PBIO, a little bit about your background?

John Hollister

Sure. So I’m primarily focused on our traditional technologies, PCT, Barofold and the commercialization of UST. And I’m a 30 plus year veteran, although, I will deny that number, starting in big pharma and then in biotech for big brand names and got the pleasure of launching big products. But the last 20 years have been in roles with startup companies. So I’ve seen the big companies and the small companies all in healthcare, and I’m very excited about the Uncle Bud’s team, because they are out there doing it particularly through social media channels and have developed quite the brand, so very exciting.

Richard Schumacher

Thanks, John. Jeff Peterson?

Jeff Peterson

Sure. It’s great to be back with everybody again today. In terms of my background, 18 years living overseas in the Middle East, Europe and Africa, educated in MIT, picked up a couple of chemical engineering degrees, career in engineered materials businesses in General Electric, a career in Abbott Laboratories, initially in diagnostics and then running all of Abbott’s business for Sub-Saharan Africa. I’ve been involved as an entrepreneur since the late 1990s and started up a couple of companies out here in California in the proteomics and high performance computing space, got involved with Pressure Bio as an enabling technology for us in the early 2000s been on the Board, chairing the Board for close to a dozen years now. And very involved in the entrepreneurial community, have helped a number of companies, chaired another public company in the medical imaging space, working in the diabetes space as well as with the companies that I started here.

Bruno Schiavi

And, Rick, I actually have a very special guest. By the way, this is Bruno Schiavi. I’ve got a very special guest, one of our brand partners. She’s been with us from the very beginning of the Uncle Bud’s journey, and she is the one and only Toni Braxton and I know she wants to say a few words while we’re on the phone today.

Richard Schumacher

Thank you. Welcome, Toni. Wonderful. I’m not hearing anything yet…

Toni Braxton

Hey, guys. Hi, everyone. Can you hear me? I’m so sorry. My chunky cheek hit the phone on and put it on mute for you today, Monday, Happy Monday. Can you hear me now?

Richard Schumacher

We hear you fine. Yes.

Toni Braxton

I got to tell you I was so thrilled and excited to learn about the merger, and you all know I’m a part of the Uncle Bud’s family. But not only am I a member of the family, I’m also a customer, I’m a client. It’s the product that I believe in. I know you guys know I have lupus and this product has helped improve the quality of my life. And just to know that the rest of the world is going to know about this on an even broader level, that’s a fantastic goal. And when you have something you believe in and we want everyone to know about it. And I can’t wait to meet you guys, I have a residency in Vegas. And Bruno told me you guys, some of you are going to come see me. So I can’t wait to meet you all, that’s something else to look forward to. Where’s Rick? Hey, Rick…

Bruno Schiavi

Rick’s right here. And by the way, Rick grew up outside of Annapolis, Maryland. And I understand that that we could have been neighbors.

Toni Braxton

We could have been neighbors. We’re affiliated at least, that’s great. What part of Annapolis? Are you from — I mean, Annapolis is Annapolis. But like near Crownsville area, Oldsville area…

Richard Schumacher

No, a place called Arundel on the bay about 10 miles south down by the Thomas Point Lighthouse.

Toni Braxton

I know exactly where that is. They used to have banquets nearby there, I know where that is, ffantastic area.

Richard Schumacher

Absolutely.

Toni Braxton

So we’re like old neighbors and friends. I like that.

Richard Schumacher

We are. I’m looking forward to coming out. And everybody on the call, please know that that Toni is headlining several months. Shows in April, May?

Toni Braxton

Yes, and June.

Richard Schumacher

At the Cosmopolitan, is it?

Toni Braxton

Yes. At the MGM Cosmopolitan.

Richard Schumacher

Yes, that’s terrific. So everyone’s invited and we intend to come out. And it’s very nice to meet you finally and hear your voice and I look forward to meeting you. And I think I have a saying at one plus one should equal 10. In this case, it does. When Uncle Bud’s and Pressure Bio, when you mix the amazing science that we have at Pressure Bio with the amazing ability to market and sell a product that Bruno and Garrett and their team have, we’re going to make one plus one equal 10. So thanks for taking the time. I know you’re working on your show to come visit.

Toni Braxton

Yes. I had to do a quick hello and say hi to my new team and my new family. And just to let you guys know how excited I am that we’re all coming together, and this is going to be fantastic.

Richard Schumacher

Well, thank you, Toni. We really appreciate your time.

Toni Braxton

Of course. You’re my family now.

Bruno Schiavi

We’ll speak to you soon. Thank you.

Richard Schumacher

We’ll look forward to meeting you, Toni.

Toni Braxton

You too. Bye.

Richard Schumacher

That’s what a surprise, Bruno. Thank you.

Bruno Schiavi

Absolutely. Toni’s been one of our great ambassadors. But more so than that, she’s part of the family. We’ve gone through a lot of different product formulations and ideas with her, and happy that she can be part of the team.

Richard Schumacher

And I bet she knows a few people that she can crow about to about Uncle Bud’s and what you’re doing.

Bruno Schiavi

Absolutely.

Richard Schumacher

So let’s start with you guys, Bruno, you and Garrett. Can you give us a brief overview of Uncle Bud’s and maybe include in there what the company does and how you sell and who your customers are, and what you’re — maybe a little bit about the products? And I’ve gotten a number of questions I’ve been sent in and several of them have said, how are they ever going to increase their sales threefold, because we put that into several press releases, as you know, Bruno. So I’ve had several people write in and say, please have them talk about how they’re ever going to increase your sales threefold and then take it up from there?

Bruno Schiavi

Absolutely. So when Garrett and I really started Uncle Bud’s, we had a vision for the brand. We wanted to be a health and wellness brand for everyone. We wanted to bring products that were 100% made in the US. We wanted to bring product to the market that worked. We wanted to focus on products that people really needed. We’ve been on this great journey for the last four and a half years. And again, super excited to be partnering with PBIO. But we’ve got a very clear strategy of the next steps. We’ve been in retail, we have a great online community, retail with more than 70 products currently and are developing more. We’re actually launching a brand new premium collection with Nano UltraShear technology, and that should be out in the next two to three weeks. So we’ve really hit the ground running. But also, we’re really focusing on growth strategy and where the best margin for the brand is going to be. And we find that direct-to-consumer in this age in retail is the best path forward, simply because of what we’ve learned over the last four years. We know exactly who our customer is. We want to acquire new customers with the injection of capital from PBIO, and we’ve got such great brand partners that have been aligned with the brands from Toni Braxton, all the way to other celebrities that have been part of the brand. But for us it’s about making sure that we stay focused, we keep costs down and we always look at opportunities to increase revenue.

One of the opportunities that we’ve worked really hard about is licensing the brand and our name, Uncle Bud’s, which we’ve done successfully twice now. We signed, a drink license, which we’ve just launched collagen water. This is the first time in its world. It’s a hemp and collagen water, which is launched through our licensing partners. And the other one is a health immunity bar and this is a snack, and this will be launched in the next eight weeks through our licensing partners as well. So we have different revenue streams coming to Uncle Bud’s. We’ve got our direct-to-consumer, DTC. We have Amazon. We have our licensing partners. We have our retail partners. And we’re waiting on a couple of other ventures that will prove to be successful for the brand and really try and increase revenue quite quickly, which we’ve done in the past. We know we can do it. And now with the great team behind us, I know Garrett and I are super thrilled to get going.

Richard Schumacher

Great. Maybe Garrett can get into some of the products.

Garrett Greller

Yes, I was just going to tap into that. What we’ve really learned over the last four or five years since selling Uncle Bud’s online is we have a lot of data around our customers and a lot of data around what products work best for our customers. So we’re going to be leading with some of our top categories, pain relief, sleep and stress, feminine hygiene, sexual wellness, these are all categories that we’re a leader in both the hemp and CBD space. So we’re able to take the data that we’ve learned amongst our customers and use in this increased marketing budget from PBIO and tap into different forms of digital marketing. It’s an omnichannel mix between CTV, Facebook advertising, Google, YouTube, which is really targeted just towards ROAs. That’s really important to us is using the data we have to get a return on investment and that’s really important to us. And those are the main products that we’re using to ensure that we can keep growing on a steady profitable path.

Bruno Schiavi

And when Garrett — this is Bruno again, sorry to jump in. But when Garrett talks about return on investment for the ad spend, we focused on several different platforms that we’ve really tested over the last three to four years. Everything from online, digital, Facebook, Instagram, CTV as well as infomercials featuring, people like Toni Braxton. We have a great infomercial that we’ve activated and it’s going to be playing on air in the next 10 days. So all those different approaches layered together are really something that are going to prove to be very successful. And we have to prove we’ve done it. Now we have a bigger engine behind us. And we have science and technology, which we’re happy to roll out several new products over the next six months with the nanotechnology.

Garrett Greller

We’re excited to tap into that community that we’ve already built to be able to launch this UltraShear product at a higher price point, knowing that that community of people are looking for the highest quality pain relief products on the market or recovery product in this instance, because it’s a CBD product. And we’re looking to hear their feedback on this new higher price point UltraShear Nano product and all the other products that we’re going to be launching over this next few months in the year.

Richard Schumacher

So in today’s press release, we talked about premium collection of products. These are going to be available, Bruno mentioned, maybe as early as two to three weeks from now. We had a link to the early landing site already in today’s press release. And I think the way you described it to me Garrett and Bruno is, it’s like walking into a liquor store where you have a lot of the everyday wines, but you also have a lot of the premium wines and people will buy both. And up to now, you’ve had the everyday health and wellness products but you haven’t had the premium, but all premium products are going to be using UltraShear in their manufacturer. So basically, it’s a way of tying the two companies together, our patented proprietary UltraShear technology, which is the one of a kind around the world. As far as we’re concerned, we’ll be using this method and developing products with your help that you believe will be able to be sold as premium products at a much better for the company higher price point. Is that the thinking right now?

Bruno Schiavi

Yes, absolutely. For us, it’s about making sure that we always strive to have the best products on the market. And this amazing technology that you have developed at Pressure Biosciences, we see this applied into a lot of various categories from pain relief to skin care, to hair loss. So for us, we’re excited about engaging the consumer that we have already built. We’ve got about 865,000 people that are very loyal to the brand and that follow us on various social media platforms through email. We have very strong community. And we really want to get these products out there as soon as possible under the premium collection. And stay tuned, you’ll be hearing a lot more in the press about this as well.

Richard Schumacher

So when John comes to me, John Hollister, who is on the phone and says, we need some extra money in our marketing budget, and we find that money. Sometimes the reward is around the corner, but many times it’s planting a seed. How does it — and that seed will germinate down the road, maybe it’s a few months from now, maybe it’s six months from now, and hopefully grows into a big tree. But in your case, how does it work, are you marketing driven and exactly how does that work? And how long do you need? Do you need months to see that payback from any marketing expenditures?

Bruno Schiavi

You really do need a little bit of time and not a long time between six to eight weeks once we put out a new campaign. But in some instances, you will see the rewards very quickly. One example is when we launch something on our Web site. Again, we have a very engaged customer and they react very quickly to products that we bring out. We had a collagen product, as an example, that it was very hard to keep on the Web site always sold out. Our pain relief, roll on, both sold on Amazon and also on our Web site. Again, a very popular product. So we know that our customers will give us honest feedback and we’ve learned to listen to them. And I think as a brand, you have to put yourself to the side and put your ego to the side sometimes and really listen to what the customer is telling you. So again, we’re excited about the premium collection. We know customers want something that’s more scientifically backed. We know customers want something that’s more powerful. And this new product that we’re launching is four times faster, better absorption. So we’re excited to introduce this to them.

Richard Schumacher

That’s awesome. And Garrett did mention and you did a number of categories, so you’re not — I think some people think that this was a CBD play. This is far from a CBD play. So Bruno, maybe you could mentioned just kind of roughly how much of your product line is CBD, how much is THC, that’s a leading question? How much is hemp and how much maybe none of the above?

Bruno Schiavi

So it’s a great question. And people always look at our brand, and since we launched the brand, we did not want to pigeonhole ourselves as a brand that’s selling hemp and CBD products. We’re a health and wellness brand first and foremost that uses these amazing ingredients like hemp and CBD. We have no THC in any of our products. And we use these amazing ingredients as a vehicle to these great products and active ingredients that we put into the product. But currently, about 60% of our sales are hemp products. And when I talk about hemp, it’s hemp seed oil, because a lot of the big box retailers are looking for hemp seed oil products, then about 35% or 30% are CBD. And then we have some new products that are coming out that have no hemp or CBD in them. Example is our protein snack immunity bar, which launches through our licensees in the next six to eight weeks that contains no hemp or CBD. So we’re a health and wellness brand. Put hemp and CBD to the side, that’s an ingredient that we use in combination with a lot of amazing other ingredients in our products.

Garrett Greller

And people are coming to us for better for you products just higher quality. And we just offer something from head to toe that’s an alternative to what’s out there that’s just better for going in and onto your body.

Richard Schumacher

So I think we need to jump a little bit and not spend a lot of time, but spend a little bit of time, John Hollister with PBIO. It’s a dual approach. Right now, we –I’ve always believed in my career and I’ve started and run four publicly traded companies, several private companies and worked as a research scientist. And I’ve always believed that growth should be a combination of organic growth and acquisition growth. We’ve been growing organically, not nearly as fast as we wanted. I think that’s about to change and I think people on the phone are going to be seeing that very quickly. One of the reasons is that this week, we’re moving, we’re leaving the office park where we’ve been for over 10 years where 90% of what I come to every day are offices and 10% is our labs that we kind of turned a receiving area into a lab and a couple of offices into labs. We’re moving to a manufacturing facility 10 or 12 miles away that is 85% to 90% labs and manufacturing and 10% or 15% offices. It’s what we need and it is absolutely what the answer is for us for our growth. So John Hollister, who heads up all of the sales and marketing at the core company, Pressure Biosciences. John, maybe just a couple of minutes on your outlook for 2024?

John Hollister

Certainly, Rick. So as Rick was suggesting, we’re one on the capability of being able to produce material and this is particularly relevant to UltraShear in accommodating customers in new segments that are going to be in front of us, whether it’s cosmeceuticals, nutraceuticals. I know we’ve spoken a lot about the cannabis side of the business. But we are engaged with a number of very big names that we hope to be able to announce in the near term in these other categories, but they require us to be in a place where we can produce. And that has been a constraint in the facility that we’re still currently in. But as Rick was saying, very quickly, we’ll be in a facility that will much better provide us the opportunity to produce much larger volumes of product and that’s really exciting. And so in the same way as Bruno and Garrett provide us with Uncle Bud’s an opportunity to immediately engage channels that we’ve not been able to or — and have had no history with, which are big box or mass retailers or DTC campaigns, the same is we will be, at the same time, in a position where we can actually produce materials in large amounts. And that’s very exciting, for me, to be able to actually not only sell the product but actually produce the product and really change the revenue streams for the company. I hope that helps Rick?

Richard Schumacher

It does. So Jeff is not just our Chairman, but he’s a superb engineer and very technical and gets involved in the company to our benefit more than most Chairman probably get involved. Jeff, you and I coined a phrase a year ago, we said we’ve got the best-in-class nanoemulsion technology in UltraShear and its day will come. And as we just heard from John, we think that day is coming, it’s not months away, it’s weeks away. We’re moving in four to six weeks, we’ll be up and running in the new facility, maybe less. And there are very few limitations. Where we are now, we’ve said this on previous calls, tremendous limitations to our growth here, which is primarily going to be in UltraShear. The number of products, the amount of revenue that we can do is mind boggling in our opinion, but we can’t do it here in Easton. But in Canton, in the Canton facility, we’ve got two big warehouses, we’ve got a number of other laboratories, it’s very exciting. So Jeff, we’re putting a lot on UltraShear. Is that a good thing to do? Do we really have something to stand on there? Why do we think we’ve got the best-in-class? Why do we think that essentially we don’t think anybody can make a better nanoemulsion in nutraceuticals, cosmeceuticals or even pharmaceuticals, and we can right now. What makes us so good?

Jeff Peterson

Well, that’s a great question. Happy to explore that a little bit. So the term nanoemulsion gets thrown around a lot in the marketplace. Emulsions are any mixture of oil and water based materials. And of course, many of the things that we need as nutrients or as active molecules in therapeutics are oil soluble. So in our water based biology, it’s very hard to absorb things from oil. And when emulsions of oil and water go into the body, most of that oil just gets excreted out and a modest amount may be absorbed in the GI tract and then you go through the liver where a lot gets metabolized. So the challenge is, one, how do we get this absorbed. And the problem with the nanoemulsion is it passes through the body and of course with emulsions they pass through or get excreted. As you get the droplet size reduced enough, and from emulsions that are drops in millimeters in size to millionths of a meter or micrometers in size, we’re now talking billionth of a meter in the nanoemulsion arena. But frankly, once you get down below a millionth of a meter, people say, well, we’re in the nanoemulsion range now. You may be 100s of nanometers in size or even getting down to a 100 or 200 in size. but it’s really not so you get into that sub-100 range and we often are down into 50 nanometer range for a lot of the product that we have been developing for folks. It’s when you get in that range that you get a tremendous breakthrough in performance.

And fundamentally, what it means is the little tiny droplets of oil down at 50 nanometer size are so small that the active oil molecules that you want to get into your body have only a modest number of other oil molecules left around them in that droplet. So the droplet is small enough that its journey through the body, you’ll pull the active materials out that your body needs. Whereas in a larger scale droplets, it’s like golf balls in a swimming pool or a large swimming pool in relative scale, and there’s so much oil around those active molecules, your body doesn’t get them. So this is a technology that allows us to precisely set what size droplets we want and control that size within a very narrow margin or variation, so you get the terrific performance where you get very fast absorption, very fast action and first action upon introducing it to the body, whether it’s swallowing it or rubbing it on the skin or spraying in the cheek or any of variety of other methods. So you get that very fast initial absorption and action but you also have very effective delivery of the — almost the entire intended payload. So normally when someone eats a gummy with a oil soluble active, whether it’s a CBD or it’s a vitamin or it’s an antioxidant and so on, most of that is going to get excreted through the system. We showed it with a clinical study or preclinical study partner with work done on rats at the University of Mississippi that something like CBD, when you eat it and normally end up with maybe 6% of it in the bloodstream, we had 80% of it absorbed in the gut and even with the liver metabolizing it like crazy, we still got to 25% in the bloodstream. So we were 4 times to 5 times more prevalent in the blood.

So that is fundamentally the huge breakthrough. The other two things that really stand out with this kind of quality of nanoemulsion is, one, you’re so far below the wavelength of light, the products turn transparent again. So it’s terrific when you’re introducing it into a consumer product like a beverage. Some products, it’s going to be enclosed in an opaque bottle and you don’t even know that it’s transparent in there. But for things like a beverage, that’s very important and a great quality assurance indicator in the processing as well. It’s also a process that shreds the microbial content. So you are providing an effective sterility capability that gives you long term room temperature stability on the shelf without having to introduce preservatives that are not desired by most consumers. So you have that long term shelf stability, you’ve got the transparency but most importantly, that fast action, fast and complete delivery of payload that is the differentiating factor for UltraShear and makes it stand out above all other nanoemulsion technologies.

Richard Schumacher

Thanks Jeff. So trying to pull this all together, this is an amazing year, an amazing month for us. We had tried to increase our space about a year ago and we thought we had a neighbor 6 miles away where we are going to get a couple of thousand feet that would have helped, that didn’t work. But now we have a 12,000 foot facility. We’re moving our team that’s north of Boston, our R&D team, down into Canton and we’re moving ourselves up into Canton, so that all 10 or 12 people will be together in the same facility. The facility is exactly what we need to grow. I don’t see any limitations on growth. Everything from the fact of it being on sewer and not septic and having 2,500 square foot warehouses that can fit multiple instruments in them and clean rooms and all the things that we need that we could never do here, all of that bodes extremely well for where we’re headed. We have a lot of irons in the fire, we’ve talked about them. But this is a year that we hit that, in my opinion, we hit that inflection point on some of these. We’ve talked about multiple areas where oil based active ingredients are not well, we know they’re not well absorbed. And they can become much better absorbed when they are truly nanoemulsified, as Jeff says, down to under 100 nanometers, they become more stable, they become aesthetically pleasing, but most important they become more bioavailable.

We’ve had people, we’ve had groups call us about putting together some oil based antioxidants, like curcumin and astaxanthin, which are very highly effective antioxidants that are oil based, we can make them more absorbable. So we are talking to groups about that. We’re talking to groups about super vitamin spray that might have three or four vitamins like vitamin D3. A lot of people take D3,they don’t realize that that vast majority of that D3 is being excreted from the body. So there’s other vitamins, vitamin Ds, vitamin As, vitamin Ks, vitamin Es that are all in oil and we can make them more stable and more absorbent, so we have several groups that have come to us about an idea of doing this with vitamins. We’ve had one group in particular come and talk about putting together some things like melatonin and others that are sleep enhancers and that we could work in that area. We’ve had other people come to us even recently about appetite suppressants, known natural compounds that can do this. But many of them are in oil and therefore they’re really not that effective or they could be more effective cosmetics. We’ve mentioned on other calls that we are currently working with one of the top three or four cosmetics firms in the world.

And Bruno, I mentioned this to Bruno and Bruno said, Rick, Rick, Rick, I know three or four smaller cosmetics firms that can probably move much faster and maybe ultimately, they won’t have the sales of maybe one of the big three or four, but they’ll have great sales, they’ll be easy to work with, and they can move fast. So Bruno and I are talking about retinol and other oil based compounds that could be quite well received by smaller companies, and getting product out the door very, very quickly. So there’s half a dozen things right there that honestly we could never do in our current facility. But a month from now, two months from now, they’re all fair game in the new facility. And we have done work in all of them to some extent. And many of them, we’ve actually made nanoemulsified and we still believe we’ve got the best method in the world to do that. Now we have a partner in Uncle Bud’s that has access. Bruno, you’ve had a great background, you worked with a lot of very famous people, sometimes before they were famous. You’ve done a lot in that area and you’ve worked with some cosmetics people and firms, and I’m looking forward to sending out some samples of our of our retinol. I think we’re going to blow them away.

Bruno Schiavi

I’m very excited about the opportunities, not just at the Uncle Bud’s level, but again, I’ve been in retail for 25 years and I really want to introduce this product to, not just the big cosmetic companies but also to retailers that do their own private label. I think this will be a game changer to a lot of the retailers that I’ve worked with, such as Walmart, Target, Costco, just to name a few. If they can include the technology into their own private label to make them stand apart from all their competitors, this is something that everybody needs. This is a product that I think is life changing. And I think from a consumer’s perspective, we always want something better. And I think this is not better, but this is brilliant. So excited to delve into that side of it as well.

Richard Schumacher

So one of the — I mentioned before a couple of the questions that have come to me are, how in the world are you and how in the world is Uncle Bud’s ever going to get to that very [Indiscernible] [lawfully] number, and it is. It is a [lawfully] number that we put out, but we believe in that number, we believe we will do that. We believe this company has historically done $2 million a year is not going to go to $2.2 million or $2.5 million, or $3 million. We believe that we can take this company to upwards of $10 million in revenue over the next year. And one of the reasons that we believe it is — historically, we’ve looked at your history, Bruno, and I know that there’s been a lack of marketing spend for the last couple of years. But you know two years ago, you were doing $5 million and handling it quite well — and three years ago. And two years ago, you were doing close to $3 million. So, you told me that it all comes from the marketing spend as we talked about earlier. And you mentioned that internally you guys usually see at least a 3:1 ratio of marketing spend to revenue and sometimes you’ve seen, depending on the product, numbers of 5 or 6:1. And so if — and we’ve committed to you to spend a minimum of $1 million this year on marketing, which is your lifeblood. So that $1 million historically tells me and tells you correct that you should see a return on that investment of at least $3 million to $4 million of that $1 million spend, and that doesn’t count the royalties that you’re talking about for the collagen drink, is that right and the immune bar?

Garrett Greller

Protein bar…

Bruno Schiavi

Yes, that’s correct. And we’re also currently in discussions with another licensee for a whole line of gift packs for the holiday season in the beauty category. This company has a lot of experience into selling into retailers like Walmart, Target, CVS, Walgreens, gift packs. So that’s a licensing play. Again, that revenue will go directly to the bottom line. So our revenue will come from a couple of different sources in 2024. Number one is the marketing that we’re going to be injecting into the brand, and we’ve done this before. We have a track record on getting great results on that. This is not a fly by night maybe but we’ve seen those results. Number two is the licensing revenue. Number three is the expansion of adding the premium collection to the brand. And then number four, is introducing the new Pressure BioScience technology and the nanotechnology to retailers that we already have great relationships with, and not just here in the US but also internationally. Over the last 25 years, I’ve worked with everybody from Harrods in the UK all the way to Lane Crawford in China. I have a very good relationship with the Alibaba team and Jack Ma in China. So we’re looking at various different strategies. Now that we’re part of a publicly listed company, we’re excited for next steps. But most importantly, growing the revenue and delivering results.

Richard Schumacher

Another question that’s come in, and we’re limited on what we can say is, they wanted to know more about the acquisition, the price, the responsibilities, et cetera. What I will say is that, to the extent that it’s needed, we will disclose whatever we should and need to disclose going forward in our press releases as we already have and in our SEC filing documents. We will disclose everything that’s needed to the extent that more information is needed. We have said that this acquisition did not include cash. This acquisition was a all stock acquisition. We did say that it would be in the vicinity of up to $4 million. We did say that there is an earnout that we have agreed to with you Bruno and Garrett and your team. And I’ve said to several people that I love for you to earn the maximum amount of that earnout, because we are going to do great if you do. So go to it, hit that number, exceed that number and earn everything you can possibly earn, because we, as a company, are going to be the beneficiary of that.

Bruno Schiavi

We’re excited for that. And hopefully, we can show you some great results with everything that we have planned.

Richard Schumacher

I’m duly — as you know, duly impressed in just a couple of months that we’ve met, in a couple of weeks that — since the close. So with that we’ve said, in the asset purchase agreement that we acquired certain assets, including, Uncle Bud’s trade receivables, inventory, assigned contracts, Web site, other IP, other intangibles. We’ve also assumed a limited number of liabilities, including trade payables, and two notes. One is a basically a line of credit from your company’s largest equity holder who’s been a great supporter of yours, you’ve explained over the years, and he’s very excited for this new opportunity. And we hope that he not only will continue to be a great supporter but be a great investor for us going forward. So that’s the deal in a nutshell. Anything more specific as needed will be disclosed in future press releases and in future filings.

I’m looking at other questions that have come on. We were asked about One World Products, Isaiah Thomas’ company, and we haven’t said much on that. I have been speaking to them. I spoke with them in the past week, so perhaps more to come on that in the coming weeks. We’re asked to talk about other things like Ohio State. Ohio State is very, very rare for a small company like us to have a friend and colleagues at the University as prestigious as Ohio State University, especially in the area of food and agriculture. They do have two instruments, they do have a larger instrument and a smaller instrument. They continue to published papers two or three a year and they continue to talk to some amazing food and beverage companies, primarily on our behalf. So we expect that will continue. And we are colleagues and partners with Ohio State University, so that’s terrific. So that kind of goes through the bulk of the questions. There was one here, why did we pick Uncle Bud’s. We kind of didn’t. It was brought to us. It’s one of those cases where we weren’t really looking for a company like Uncle Bud’s, but it was brought to us from a mutual friend that knew them and knew us and said this might fit. And sure enough, once we looked at it, my gosh, it fits, and it fits great. This is kind of — this is the beginning of a great relationship between the two companies, which is now one company. Uncle Bud’s is a wholly owned subsidiary, owned by Pressure BioSciences, a standalone wholly owned subsidiary, a Massachusetts company. Not all the T’s are crossed or I’s out of it, but that’s the way it will be going forward.

Just to find Garrett, guys like you and Bruno, and Peter, and Debbie, and Laura, who all have the same mindset as us, who all want to do the right thing, that all want to look at natural products. I think what caught your eye was our CBD product, which is all plant based, all natural, no preservatives, no GMO, just right up your alley. I think that helped sell us to you. And the fact that you believe in that sold you to us. So it’s terrific. And so we do believe that this company is — combined company is going to skyrocket not next year, not the year after, but this year and we’ll accelerate and build on that in 2025 and 2026. We need a few more weeks to get ourselves into the new facility and get everything unboxed and up and running and humming, which hopefully will be sometime at the — maybe the end of end of November, hopefully, not — end of February, beginning of March, so that we can end the first quarter well and the next three quarters are going to be terrific for sure. And Bruno and Garrett just keep every day, keep coming up with new ideas, new thoughts, but the main thing is you have the baseline. Anything you want to add, Bruno or Garrett?

Bruno Schiavi

No, just to say that we’re very excited. We want to make sure that we keep everybody informed of all the new products that we’re launching. And you’ll hear from the press releases of strides that we’re making and excited to be part of such a great company. Rick, you’ve built an amazing company, we’re excited about the technology and we really want to bring it to everyone.

Garrett Greller

And I agree with Bruno, just looking forward to what we have in store for this next year and seeing how well we’re already working together. We have a lot of exciting opportunities ahead.

Richard Schumacher

John, anything to add? We’ve got about a minute left. And then, Jeff?

John Hollister

I just think we’ve encapsulated it all. Thank you for the listeners for listening to the newest and greatest news and all your support and all your feedback because, we take it — like Uncle Bud’s group, we care about what you think and so please keep communicating with us and keep supporting us.

Richard Schumacher

Jeff final 30 seconds.

Jeff Peterson

I’ll just add to some of your final comments about Uncle Bud’s. We certainly have looked at a number of different companies for partners acquisitions over the last two years. And Uncle Bud’s was one that hit the mark in a way that others haven’t. They were not just another financially driven, let’s get a deal done, flash in the pan, make a story, whatever. This was a quality team, people with the right stuff who were focused on scientific differentiation, focus on quality of products, US manufactured and who had a clearly established capability to access major celebrities, spokespeople, both hollywood and the sports scene, and had expertise well demonstrated across retail and online and e-marketing and so online marketing. It was just the ideal size people and fit for growing into multiple new areas. And we’re just incredibly excited to see this come together, and to welcome Bruno and Garrett and the team to Pressure Bio.

Richard Schumacher

I just got a text. Someone said, please tell us about the Annual Meeting. We’ve had a couple of starts and stops, primarily because of just the move and some other things. But the Annual Meeting, which is normally held by the end of December was postponed until 2024. Right now, it looks like it’s going to be on Thursday, April 18th. So that is the date of the Annual Meeting right now. And other than that, I just want to say thanks to everybody. I know it’s — I hope we’ve answered your questions. I hope we gave you a lot of information that you didn’t have before. I’m glad you’re able to meet Bruno and Garrett and hear them directly, because they are the Real McCoy. As Jeff said, they have the right stuff and we’re very honored to be working with them and excited. So thanks to everybody. We believe this is our year. We’re very excited about 2024. I’m going to go from a 15-minute drive to a 30-minute drive, but I’m going to be smiling the whole way, because we finally, finally, finally have a facility that it would be tough for us to grow into it. And if we do and we run out of space, we are kicking a lot of but, because there’s 12,500 square feet almost all manufacturing and it lends itself for tremendous growth for our company. And then add that to what you heard from Bruno and Garrett, and boy, what a great future we think we have. Thanks again, John. We’re all set.

Operator

Thank you. This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.

Question-and-Answer Session

End of Q&A