[0:01]Next into the Shark Tank is Joe Moore with a unique solution to protect against germs and allergens. Hi, my name is Joe Moore. I am the President and CEO of the First Defense Nasal Screen Corporation, and I am seeking $500,000 for 10% of my company. Every day, people flood emergency rooms, doctors' offices, and pharmacies seeking relief from inhaling contaminated air. And one out of every five commercials on TV today is about the treatment of nasal allergies. That's why I invented First Defense Nasal Screens.
[0:39]First Defense Nasal Screens are the first and only lightweight, non-inserted, almost non-visible nasal screen ever invented, and they have been clinically proven to reduce the inhalation of allergens, pollens, pollutions, pet danders, molds, viruses, and more by up to 99%. And the next time you're faced with unhealthy, contaminated air, remember, don't get sick, just peel and stick. Thank you. Any questions?
[1:08]Are you kidding me? Um, I I'm I'm not. Um, I just know that, like I said, how big this really is. $500,000 for 10% of the company. How many have you sold? Actually, right now, about 1.7 million. 1.7 million units or 1.7 million in total sales? 1.7 million units. And what do you sell them for? Wholesale was 60 cents. So your sales last year were how much, Joe? Actually, we just we're we haven't gone to market yet. Sorry, I'm confused. If you haven't gone to market, how have you sold 1.7 million? Actually, we have one big client out of the United Arab Emirates that has actually put in their first order and given us a contract for 8 million over the next 6 years. So you have an order for 8 million dollars right now? Yes, sir. As a matter of fact, I have the contract right here. That's a prepared man right there. Good for you. Thank you, sir. Well, all of a sudden you don't look that funny with that stuff stuck up your nose. Can I see that? Yes, you can. You know, you don't sound like the bozo I thought you were. Is this a product that perhaps is is going to be very popular in other societies where face masks are more prominent than they're here Stateside? Definitely, this is a worldwide product. Because, I mean, you know, you're wearing them right now. I can see them. It's probably an issue for many people that are going to look at that and say, what have you got stuck up your nose? May I see the actual product? Yes, ma'am. Sorry. Robert. The distributor guarantees that he'll order one. Am I reading this correctly? 1,500,000 sets? Yes, sir, that's for Saudi Arabia alone. They've already ordered those. And how much is he guaranteeing you? Uh, he's guaranteeing me the 8 million over the next, um, 6 years. How does the filter work? Basically how the filter works is as you breathe in, it's a non-woven material, so it closes, and as you breathe out, it flushes itself. Does it stop viruses bacterial elements? It does. What's to stop you from taking the germs in through your mouth? That's a great question. 90% of the air we breathe goes through our nasal passages. Also, viruses do not grow in the mouth, the esophagus or line in the stomach. They grow in the nasal passage. Is there a patent that protects this? Yes, sir. I have we are patent pending in the United States, Canada, and Europe and have been for 3 years. And what would you use the money for? The money for right now is so that I can keep producing it because of the raw materials I have to buy up front. So basically, you need the 500,000 to make the order? Correct. Okay, tell me if I'm putting these in right. So I just take it. The best way to do it, put it on your finger like a contact, touch your nasal passage, slide it around the outside, slide it around the inside. Joe, let me ask you a question. Why not just go license it to one of the big drug companies? Um, because I I I did that originally. I went to one of the biggest in the United States and they told me we were actually a competitor, and if they took the product, they would shelve it because why would they prevent it for a dollar when they could treat it for 14? How much money have you put into this? I mean, We have almost $1 million into this project. And where did that money come from? Um, about $600,000 of it was mine, the rest is from friends and family. I think I'd have a very hard time understanding at all what the product is about unless you had these big photos with the noses and unless you're standing there pitching it. Because I think the cost of educating people is the big kahuna here. Joe, based on that, I'm out. Okay.
[4:33]I'm intrigued, I got to tell you. Let me throw an offer out to you. I'll give you the 500,000 and I want a 15% royalty on every unit sold until I recoup my $500,000. Okay. Just the royalty, no equity? Are you kidding? Of course I want the equity. I took the risk. Now, here's my equity. I want 20%. You have an offer for me. What do you want to do? Um, I would definitely like to hear what everybody else has to say before I even consider that. They're not interested. They're not interested. They never told me they were out. I'm Because of their silence, you know they're not interested. Not necessarily true. Not necessarily true. We can work together on this.
[5:29]I like how cuddly they are, but I want to give you $800,000 for 30% with 10% royalty. Oh, come on. Screw that. I'll give you a million dollars for the whole company right now. I can appreciate uh and I appreciate the offer. I really do, but um, I would definitely You just turned down a million dollars. Yes, sir.
[5:55]I I I couldn't take a million dollars. I know that this is a billion dollar industry. Is there a number you would take? To sell the whole company. Not the without a royalty, no. With a royalty, very possibly, yes. What's the royalty? I believe that with the statistics and the research we've done, the royalty would have to be 10%. Wow. And then what's the number on the company? I I would like to stay part of it, to be honest with you, because it's my passion. I um going to show you something. I am a cancer I am a cancer survivor. I am a cancer survivor by the time I was 19 years old. I've been through the army. I've been through the Marine Corps. I've been halfway around the world. I fought all my life and doing different things. I believe in this more than anything else, because I've gotten testimonials of people say you've changed my life. You've changed the quality of my life. I'll give you a million dollars. I want 30% of the company, also 10% royalty until I recoup the money.
[8:04]Joe, a fundamentally first difference in the three offers is, one is to sell your whole business. My offer is $2 million for the entire business. You get a 10% royalty. You're the guy that runs it. Any interest in selling the entire business today, which is the road that I'm trying to go down? Not for $2 million. Dang. Would you go for 4 million?
[9:16]Um, I think if you went to $5 million and 15% and whether you want me as an employee, which I would really like to to do as an employee contract, because I want my royalty to be as much as I can. I can get my mind around the four. I can't go up to the five. So I'm out.
[9:47]Dang. Listen, would you excuse us for a moment? Okay. So listen, it's a very simple discussion amongst us. Very often the best strategy is to take a competitor like you, even though sometimes I find you distasteful. I say bring him into the deal at our price. Get him back out of this. What do you think, DJ? Uh, but we need to go up on the equity. You guys want to 20%. That's interesting. Five. Bring him in for a third and go up to 25. Well, no, no. I I think you gave away the farm. You you it was so un-Kevin-like when you said 15% only until we get our money back. Once we bring Damon into our tenth, we and we're the only offer left. We can change our deal. So what do you want to do? Okay, before you say anything. You know the current's constantly change in the rough waters of the Shark Tank. That's why I love this place. Your enemies become your friends, your friends are become your enemies. And sometimes they bite you in the hiney and sometimes they don't. So what's happened is Damon has decided to join Mark and I into one offer. Now, it's great news for you because there's going to be more money. But allow my partner, Mark, explain exactly how great it is for you. Okay, so what we're going to do is raise our offer to $750,000. And then we're going to ask for 30% of the company and a 10% perpetual royalty. That's our offer.
[11:20]Um, I would consider your offer. I would the only thing I would ask you to do is if you go to 1.2 million for the simple reason, that will give me enough to fill my first order. We don't have to do that because if we own a piece of the company, we're your partners and we have to finance it. But we don't have to pay for it right now. If you need more money to fund new orders and grow the company, you think we're going to let our equity disappear because we couldn't fund a new order? Of course not. So you get us without giving up any more equity with this deal. Don't sell yourself short. Joe, listen. Joe, you got to say yes or no. Life is like business. It's 20% what happens to you and 80% how you respond. You have a moment right now to take this deal. Will you take it?
[12:08]Does it come with season tickets? Absolutely. Then you got a deal. Amen.
[12:15]You too. Appreciate it. I'm looking forward to working together. Absolutely. Thank you. Good job. Thank you. Pleasure meeting you. Pleasure meeting you. Think about that. That's remarkable. I just offered a guy $4 million, which is about as high as I'll go. But that's the beauty of this show. This guy we've never seen before walked in and had the choice to be a millionaire. And he stuck with it. And he stuck to his guns and he believed in himself. That's what makes this country great. I feel warm and fuzzy. I just made some money.
