Good afternoon, everyone. Thank you for coming. My name is Hylton Karon. I'm President and CEO of iFabric Corp, out of Toronto, Canada. My presentation today is—it's quite a big deck, so I'm going to go at quite a pace. Please feel free to stop me at any point in time, because I'd like to leave some M&A time at the end. There's a lot to cover, so I'll try to do it in as efficient a manner as I can. Feel free to stop me. What iFabric is, is rather unique in that we're—we're not pigeonholed. We're a textile company that develops our own technologies. We use these technologies in products that we design and manufacture ourselves. We're rather unique in that we're not a chemical company. We're not an apparel company. We are this hybrid company.
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We are this hybrid company. The markets that we've gone after, one of the biggest markets that we long-term—our long-term strategy is going after the medical market. In doing this, we had to find what we call our low-hanging fruit. We're in everything other than those are what we call the low-hanging fruit. Those are products that we can incorporate our technologies into while we have developed our medical applications, which I'll get into a little bit further. Some of our company highlights of late. We just came with the biggest share of the company: five consecutive years of sales growth, 2024 ended at $27.3 million, up 20%. Our largest division enjoyed a 25% increase year- over- year. Net earnings: $0.05 a share. Gross GP is around 41%. Working capital: close to $20 million.
The growing enhanced textile market, that is really a global market that we're working in that's in the multimillion market potential. Major brands that are customers that are using either our technology or we're actually supplying a finished product to. Some of them are the likes of Under Armour, LULU, Walmart, Costco, Target, TUMI, The North Face, which is part of the VF Corp, Roots, Hanes, Kohl's, and Amazon, to name a few. Really, the intelligent fabrics, which is really our biggest driver, is to address unmet consumer and medical needs. We have developed a unique proprietary application that's actually in the marketplace already, and I'll show you in a little bit further, and how that's applicable to the kind of growth the company has enjoyed over the last couple of years.
We really have got a significant upside potential in that the variety of markets, if one thinks of soft surfaces and textiles, from apparel to carpeting to curtaining, it's almost limitless. The areas of potential that this company in the market that we can sell into long-term. We do have a strategy. We're not just running after anybody and everybody day one. Just to give you a synopsis, five years ago, we were a $10 million company. We just hit $27 million. It's not going to take us five years to double the company from where we are today with core organic growth. That's with no M&As. Lastly, when one talks about skin in the game, we're 67% management-owned. Just a basic operation of the business. Our revenue is generated by our functional textile technologies, which I've alluded to. We do design and manufacture 95% of everything we sell.
We design it. We incorporate one or a multitude of technologies in the offer, and then we send these tech packs off overseas to be manufactured overseas. We do all the importing, all the distribution to the retailer ourselves. We really go from inception right through finished product packaging and shipping to the retailer. Licensing is a real good strategy for us. There is another deck showing some of the brands where the retailers want a strong brand to resonate with their consumer. Licensing is a strong part of what we do. We do own a number of our own brands as well. Operational elements, as I said, we do our own product research and design development. Lab testing services. Everything that we make a statement to our markets is based on third-party laboratories.
We do not, as some of our competitors do, design a lab test that is going to put their best foot forward. We only use outside services. It is based on purely independent studies that we are able to show our customers what our technologies do for them and their customer. We are pretty proud of that. It has served us very well. Technical support. While headquarters is Toronto, we have a warehouse and operations in Texas. We own a business in Taiwan, and we have R&D in both Japan and China. Key element drivers. The healthcare textiles is an area that I have alluded to. That is really our long-term area of business that we want to get into. Athleisure and sportswear have been very strong for us. I will get into a couple of years of revenue showing that.
We have other areas like military and defense. There is also hospitality and hospital. There is a variety of industries we have not even set our toe into in the long term. That is why when I say it has taken us five years to go from $10 million to $30 million, it is not going to take us another five years. There was a pandemic in there, which we probably lost 18 months' worth of growth. We are pretty proud of what we have got coming up in 2025 and 2026 to really be very bullish in terms of putting out that kind of a forecast of what our future growth looks like. Antimicrobial textiles market is growing by leaps and bounds, not only in the U.S. It is really an international problem. That speaks to our acceptance of our technologies and our products on a global basis.
We believe while we've primarily focused on the North American market in the short term, we really have a global application in the long term. Cooling textiles, infection control. There's just a multitude of technologies that we have. A lot of our competitors will really compete with one technology in one segment, and that's their business. I can show you this deck here. This speaks to all the various technologies. I couldn't do it in this presentation because each line is a couple of hours in terms of what each of these technologies do. I'm just going to bring your attention to the top left, which is PROTX 2, which is a family of antimicrobial products that we started developing in 2007. I was told putting in six and seven figures' worth of R&D in 2007 is a waste of time because infection control's not a problem.
We had a movie in 2011 called Contagion. I was told that it only happens in Hollywood. There is no such thing as a pandemic. It is not going to happen in real life. We stayed true to it. We know the rest of how that played out. We are in it for the long term, having applications for the medical market. We believe that, unfortunately, there are more problems down the road. Pathogens only mutate. They do not go away. We want to be there to help in what we do from a social impact. The beautiful thing is, what do these technologies do? Besides the obviousness of what a garment is, we are about either making the wearer experience that much better or, in fact, protecting the wearer.
We're not only a company manufacturing products, but it's nice being a company that what we do has a nice social impact as well. We have a variety of technologies from antimicrobial, from a DWR or durable water repellent. The like of an Under Armour that sell their ski jackets, they want their jackets to repel water and may dry. The problem with DWRs is they're carcinogenic, and they have fluorocarbons, which is a big Teflon. Everybody knows the problem with Teflon. We developed the C0, a fluorocarbon-free application. This is actually about the people working in the dyehouses being affected by all the effluent from the manufacturing chemicals. These are very aggressive carcinogenic chemicals. We also got a great eco story in that we are being environmentally responsible to the manufacturing people that are manufacturing product.
We really do have an encompassing strategy in terms of what we do with our technologies. The company goes back to the late 1980s, where we were a specialty lingerie company. That is, we were manufacturing for other manufacturers, their cups. We started manufacturing our own products ourselves and really got into retail with the lingerie business. It is still to this day a division unto itself of the company. We have proprietary. We patent a lot of our designs. It has been a great cash driver for many, many years. It is not what is going to take us to $100 million, but it is a great bottom line additional business that we have had for a long time. It still contributes to the growth of the bigger corporation. Our brand partners, the major, once again, as I say, we are not in high fashion.
Really, our real focus has been the mass merchants. We really are in the utilitarian product range. When times turn bad, the beauty of what we sell into is core everyday product that the consumers are needing in good times and bad. From a recession point of view, it's been a great strategy for us and very well. As I alluded to, licensing. These are some of the brands, either that we license the brand from them or we do the private label with their own brand for them. These are brands that we've developed. Of course, retailers want exclusivity. By giving each one their own brand, it just gives them something exclusive in terms of their offer to their consumer. These brands being owned by ourselves, there's no royalty to be paid.
Either we're just more price competitive or we can offer them a price concession. We remain very competitive. This picture does a lot of—I don't know if you remember the slide where I showed you the PROTX 2 technology that we own, which is our antimicrobial. This is scrubs in 4,400 Walmart stores. Our customer who has the license for the Dickies brands of scrubs, what are they doing? They're promoting our company. There is our brand and how pertinent our brand and what our technology means to their offer. This picture speaks volumes about how the medical practitioner who's buying their own product is looking for any level of protection in terms of going into the medical market. Every day they're in hospitals. They're being exposed to pathogens. We're offering them just one level of extra added protection.
Financially, from 2020, as I say, to 2024, we went from touching the $10 million to close to the $30 million. For those of you that are not Canadian, 2024, there was a strike in Vancouver. We were not able to actually ship our last almost two months of three months in the final quarter, or we would have been over $30 million. The good news is we did get the goods in. Eventually, we shipped them in Q1 of 2025. There was no cancellation of goods, but we certainly would have exceeded the $30 million mark in 2024. As I say, the light blue shows the lingerie division, fairly consistent, straightforward business. That growth, which is the intelligent fabrics division, is really the division that is on its way to probably $50 million-$60 million in the next, I would say, three-four years.
Just at EBITDA, I'm going to take 2021 out. It was an anomaly year. It was a year where everybody jumped on scrubs and masks. We did no different and jumped on that market. It really isn't indicative of the growth curve of the company. I think if you look at 2022, 2023, 2024, you just see a nice consistent growth of the company. In 2025, as I say, we're looking for double-digit growth there as well. Working capital, I touched on. We've had a very good equity to debt. It's probably over 20 to 1 in terms of our equity of the corporation cash in hand. We just did a press release last week. We've got no loans on the book. We've got multi-million, probably $5 million-$6 million in the bank as we speak today.
$12 million line of credit was just doubled from six at the bank, and it's not being utilized at all. Plus deposits, plus inventory, plus receivables, you very easily get into the low $20 million. We own our own building in Ontario, Canada, which is our warehouse. There's nearly close to another $10 million in equity lying on the side, not on the books. Recent milestones, as I said, we had a phenomenal 2024. We received EPA registration of bioFRESH. We continue to get, whether it's EPA, whether it's FDA, we continue to look for certifications of our products to incorporate into products. That is an ongoing effort of our company. It's a strategy we will always continue doing. We actually wrote, we were invited down to Washington about five, six years ago. We wrote the protocol for the EPA to do with an antimicrobial application.
We got it granted to us. The only part is there is an additional study. They gave it to us in everything except apparel. Whether it's flooring, once again, tablecloths, curtaining, every textile besides a worn apparel. They will give it to us. They've asked us for one last, what's called a leaching study, which we're in the works of doing. We will be the world's first company with an EPA-registered kill claim. There is nobody in the world that is allowed to make a pathogen-specific kill claim. We wrote it for the EPA, and we will be the world's first and only for I don't know how many years until people catch up, but we've already got next generation in the works. We will have a pathogen-specific medical product kill claim that nobody, if anybody has it, it's on a website.
I do not believe everything that's on the internet. Great milestones. I've spoken about our strong financials. Point two, expansion into new product categories. So 2025, really where our growth, where we've enjoyed such growth is working with our retailers and our customers is what next can you do for us? We usually work a year, 18 months out. So 2025, from our product developments already put to bed, we're working on 2026 and beyond What we worked on last year on new products that have never been made by our company before, which is growth and new areas of business. I can't tell you what the products are until we release them at retail because our retailers would not be too happy with us.
We're giving them new level of category with medical kill claims that have never been put in the marketplace before, and we're pretty proud of that. Clinical trial. We did a clinical trial in California for scrubs at a healthcare facility. We got what was called statistically significant result, which is over a 95% efficacy rating, which our own epidemiologist termed hitting it out the park. We've now handed it over to a medical journal because we've got to get their peer review and their release in order to market it to the medical community. We've already got the empirical data that we did very, very well. We're happy to, and we look forward to getting a peer-reviewed medical paper released by a medical journal. The structure of the company, 30 million shares outstanding, 1.9 million in options, no warrants, fully diluted.
You're looking just over 32 million shares, working capital, as I said, where we can touch on easily $20 million plus, probably closer to $30 million. We've got just under $1 million of debt in the whole company. We've got a real strong balance sheet, pretty proud of what we've developed over the years. With our growth being in the double digits and overhead does not grow at that rate, we are cash positive and continue to grow in that vein. We're pretty proud of what we've developed. That, as I say, is unique, that we are going to be a world's first. We've got next-generation product in the works. We're never going to rest on our laurels. That concludes my presentation. I just would like to open it up to anybody who's got any questions.
Yeah. It sounds like you have a lot of growth upcoming. Can you talk about any capital expenditure needs or CapEx needs as you grow?
Our real only cash crunch is purely inventory requirement, which is fantastic. There is really no heavy R&D required. In fact, there is almost nothing additional. We do spend, and I just want to be very clear about this, we spend close to $600,000 a year on, as I alluded to, independent testing. Every dye batch of every fabric, whether we manufacture it or our customers manufacture it, a sample has to be sent to us, goes to a third-party laboratory, and it has to be certified. We are not only protecting our IP, but we are protecting our customers to make sure that their third-party manufacturing facility has what they get what they are paying for. We really hold their hand to make sure that when they are putting on a label at retail of what the product can do, we are ensuring that it does do what they say it does.
To your point, there really is no capital expenditure for R&D. It's just financing growth. Yes, sir.
The growth of medical.
Yep.
Is that for scrubs? Is there other?
Scrubs is going to be a big part of it. Where in the past people have used our technology to promote their brands, it's something that we're going to take in-house and start doing that. There are certain segments. There are areas we've got agreements. There are certain areas of the scrub game that we're going to leave to others who are still going to use our technology. There are other areas of the market that they haven't gone after. That's what we're going to get into, that game. It's a broad area. In a lot of cases, laundries, the synthesizers of the world where they supply a hospital facility with laundered product, and they own the product themselves. That's one avenue. There are a lot of facilities where the healthcare provider buys their own scrubs. They take it home. They launder them themselves.
Another thing that we're very proud of is in the scrub game, it's durability to washing. It's not just about initial efficacy. We have to make sure that there's long-term durability in what we're doing. We're making a premium product. It's very competitively priced, but we've got to make sure that we give them the value. We do a lot of long-term testing to make sure that what we're giving them has that long-term efficacy.
I think there is a pathway for it to be a standard of care for hospitals.
We believe that we're trying with this PROTX2 brand because I don't want to get into the textile thing. I've got two minutes left. Nylon, cotton, polyester, rayon are all different animals. PROTX2 is a family of formulations. We have to know what our customer wants in their end product, and we will make a formulation for them and send it to their production facility. We believe that we want to make PROTX2 into a gold standard for the medical practitioners. It also goes into linens in hospitals. It is more than just scrubs. As I said, there's a lot more to this company. Take us out with that applicable. In North America specifically, there's curtain separations in hospitals between wards.
I don't want to get into a germaphobe presentation of when last were those things ever cleaned, yet everybody's touched them. It's just another point that could be a point of spreading contamination. We really are pretty well versed in terms of where we're going. We're doing it in a methodical manner and going off to markets as we grow. Yes.
Can you talk to me a little bit about the breakdown of your own brands versus your licensed brands?
I would say that right now, as we are today, we're probably 60+% licensed. Our own brands, the likes of the Costcos of the world, have really done a phenomenal job. I can only thank they've made our brand so visible. When you see that banner at a Walmart with our PROTX2. If we came out with a product just with our own, they've really helped us spread our brands, and they've been really good about it. I think that the future, as you said, we really are promoting our brands more and more. They are more and more visible. I would say long term, we probably could do away with a lot of our licensing. I don't think it'll fall off completely, but it definitely is something that we've been successful in promoting our brands at a higher revenue rate.
Just a follow-up question on that. What is the current number?
It's between 7% and 10%. When you're dealing with mass merchants, it's 7%. When you're dealing with the more mid-market retailer, you're at 10%. It also depends on the brand. It's in that range. Thanks for coming, everyone.