Now presenting Shane Madden from Hydreight Technologies.
Thank you. Morning, everybody. Here to present Hydreight Technologies, of course. Exciting industry, very exciting company with very exciting growth. I am just going to give, again, kind of an overview regarding what we have built as a company, where we have positioned ourselves in this pretty much exploding industry, and go into some more details as to what we feel like we have uniquely positioned ourselves for the growth in the next 36 months. I am going to skip back and forth a little bit on the slides here for a minute, just from an explanation perspective. What we built in 2018. Just making sure this is coming up. There we go. In 2018, we decided to form a company that would address the fragmented healthcare industry in the U.S. Pretty grandiose business model.
We saw three areas of the industry that the solutions would eventually come from. Of course, nobody has a crystal ball. Almost 10 years ago, a lot of factors played into our hands, affected the growth, like COVID, like the customer awareness around Ozempic and patient-specific. Those things happened as we continued to grow the company. In 2018, we had identified really three areas of the business, of the industry. Mobile health and wellness, where a healthcare professional gives a service in a remote setting, a hotel, office, anywhere outside of your traditional healthcare structure, like a hospital or a physician, but did so under the same scrutiny, policies and procedures, compliance as they would inside a brick-and-mortar.
That vertical got called the Uber for nurses because we were the first business to essentially allow nurses to monetize their credentials as a 1099 contractor of a 50-state medical company. That 50-state medical company model is actually the core of what we have built, and as you see the growth in these future years, it is really, really key to understand what we built all those years ago. We created a 50-state, essentially medical company. Think of 50 LLCs. Think of a hospital network that works outside or virtually, but under the same scrutiny from a state and federal compliance perspective. The other two areas of the overall ecosystem or industry that we felt these solutions were going to come from was the non-traditional doctor's offices.
Again, your medi spas, your health clubs, any brick-and-mortar physical location that needed to comply with the same compliance laws, federal, state, board, within each state, as a hospital or a doctor's office would but was not your traditional doctor's office. Again, the whole ethos here was that the solutions for the overall fragmented nature of the healthcare system was going to come from three areas. Of course, the third, as we call it here in the business, we call it the third vertical, the patient-specific virtual care. That was our third stepping stone of the overall vision of Hydreight. That came towards the end of 2024, at the very early stages of 2025, and it is responsible for a lot of the growth that we will talk about here in a little bit.
One of the reasons for that, of course, is the customer awareness that happened around accessible healthcare. Coming on the end of COVID, it woke everybody up to how disjointed the actual healthcare system in the U.S. was, something that we had been planning for a number of years. The actual patient awareness around accessible healthcare from a virtual perspective just exploded. Three years ago, nobody, I will even go further. Eight years ago, nobody knew about preventative healthcare, accessible healthcare, becoming the CEO of your own body. These are tag phrases that you hear all the time right now. Three years ago, nobody knew what a GLP-1 was. 18 months ago, nobody knew what a peptide was. Now, peptide is one of the most largely searched terms on the internet, and the movement has begun.
Where we fit in and what we tried to do all those years ago was to create a B2B ecosystem. Not to be another runner in the space, so to speak, to actually create a medical ecosystem where we can empower any individual or business that wants to get into any of those three verticals that I just mentioned. That, in a nutshell, is what Hydreight Technologies is. As I move forward and we talk about the growth, some of these verticals are recurring medications. Again, very, very scalable in nature, but we are providing a real compliance moat. That is something that I will continue to kind of mention as we go forward here. Some of the traction that you see from interest levels, from licensees, from pharmacies, from businesses, from individuals, the key component here is that it is compliance. Is it legal or is it illegal?
In the United States, which is different from Canada, 30 of the 50 states are bound by what is called corporate practice of medicine, which literally makes it illegal or a federal offense to be involved in making any money in the practice of medicine. Providing a home that navigates that for either individuals or businesses is what we created and what we continue to expand. If you look at the ecosystem, I just went over that. How we went about creating that is we first created, obviously, a medical ecosystem, as I said, about 50 states comprising of the U.S. medical network. Then we had to layer on top of that a pharmacy network to support the treatments, the services given on any of those verticals.
We had to vertically integrate our physician network to service all of those, and of course, then three specific techs to empower any business or individual that wanted to get into that space. Again, before we start talking about growth or anything, I thought it was very important to kind of reiterate what we had built and where we have positioned ourselves. This slide here just gives an example of what we have built from a B2B perspective. These businesses here, some of them who are our partners, on the surface, you look and you think that they are competitors potentially. But all of these businesses are operating in one layer of what we have built as an ecosystem.
Many of these businesses, of course, are doing very well, but from a larger model perspective, we have a vertically integrated, layered system that we can be modular, which we are, we will go into that in a little bit, which opens us up to all types of partnerships, all types of relationships. From online booking, all the way to the compliance, 50-state licensure, businesses need one or all of these things, whether you are a new business that wants to get into this space, or whether you are a business that has been in this space for quite a while but wants to streamline either your compliance, your operations, partake in maybe the pharmacy network that we have built and increase your profit margins there. Any of a number of things. But again, B2B is the key here as opposed to just being another runner in the space.
Just going back to. At a snapshot as we start to get into some of the scaling in the business. The business since 2018, just to give a snapshot again, we rolled out our nursing vertical in 2018, 2019. In 2021, we rolled out our brick-and-mortar model, and then of course, in 2024 Q4 into Q1 of 2025, we rolled out our patient-specific model, which again, is responsible for a lot of the growth in the last 18 months for the reasons I just went into. The company's performance is, of course, extremely strong. 420% revenue growth, Q2 year-over-year. H1 growth acceleration. Highly scalable and recurring for reasons that I brought up regarding compliance. Not all licenses are equal. A license is a business, technically. The amount of licenses that they would require from us depends on how many states they are operating in.
Because we are modular, we can be anything to any partner. We do not have to be a take it or leave it model. There was an influx towards the end of 2024 into 2025, when we launched the platform on the third vertical. Then towards the end of 2025, we have seen a further influx of licenses. We ended 2025 with about 3,000 licensees on just our third vertical. Think of 650 plus businesses, roughly. Then into March, April of 2026, we had increased that to over 11,000 licensees. What was driving that was the compression of the guardrails from the FDA. These businesses that had been operating in a gray area during COVID all had to start getting their acts together.
They are either going to have to go out of business, they are going to have to pause and realign, or the businesses that were doing this pretty well, they cannot expand. They cannot go into other states. They cannot go into other categories of customers. We were very, very attractive as an ecosystem to just partner as opposed to try to figure out the intricate laws of corporate practice of medicine or pharmacy network or any of these things. That is one of the reasons for the growth and something that I will go into regarding stage two of the growth shortly. Just as the industry as a whole, I think most people in the room here will understand that the U.S. telehealth space or patient-specific virtual care is growing dramatically. Estimated to be $150 billion by 2030.
But that is really, I think, on the lower end from what we are seeing. Anybody who has been following along with the peptides, which is again, something a few years ago, most people did not even understand what that was. Now it is one of the most fastest searched terms. The FDA themselves gave an announcement a couple of weeks back, which was essentially filing for the recommended six to seven peptides that were recommended in July. Again, that is unprecedented to move that quickly for the FDA. It is in direct response to the industry. Because of the dichotomy between the pre-approved peptides and the peptides that were being available through gray areas, it has created a black market of about CAD 10 billion right now. That is one of the reasons that the FDA are driving this move to compliance.
For us as a business, we see that as the second influx of licensees that we are going to see. What we saw towards the tail end of 2025 into 2026 was the initial movement to our platform from business who were getting pressure from the FDA on already compliant peptides. Now, once these are fully approved, we are going to see that movement again, we feel from this black market that has been created. Again, just to go over some numbers. Q2 was $28 million, roughly 80% of our 2025, again, showcasing the growth from the licenses. 420% year-over-year revenue growth. 12.5% quarter-over-quarter revenue in Q2. The scaling is accelerated across multiple facets of the business. Again, creating a compliant home for these businesses. Customized tech if they need it or modular depending on their needs.
Sustained growth continuing to inflect, of course, because of our model, because of the fact that we are the medical company that is essentially seeing these patients, running the funds through our medical entities because of corporate practice of medicine. As licenses grow, as their success happens, as other products come out, we are product-agnostic in many ways. We are a platform. What our medical team put together from categories of products, whether it is the sexual health, whether it is the weight loss, whether it is the longevity, hormones, lab testing, whatever category it is, we are there for any business to be that service provider. Again, we are not tied to a product, we are not tied to a company, and it is far more scalable than just being another brand who has an infrastructure to do this and just does it for themselves.
Our cost of acquisition, because of that model, is essentially zero because we are providing services for the businesses who are then marketing to the clients. Again, a very important point for our scalability. Regarding profitability, as we continue to scale, again, we have been building everything for the last couple of years with growth in mind. Essentially, we knew what was coming from a market opportunity perspective. One of our large expenditures since 2018, of course, is legal. When your moat essentially is compliance and has many layers on top of that, then obviously for doing business. But when your initial moat is compliance, you always have to have your eye on federal, state. There are three boards in every state, nursing, pharmacy, and medical. You are having to comply with all of those. You have your corporate practice of medicine.
Once we've built that structure, obviously we knew that the licenses would come, we knew the businesses would come. They'd need to be served, but we need to do it in a scalable way. Our OPEX obviously grew modestly in Q2 as we increased headcount due to the licensees influx. But overall, our OPEX as a percentage of our revenue is incredibly strong. It's fallen from 36% to under 10% as a percentage of the revenue, which I think showcases that pretty clearly. 2026, obviously, for the reasons that we just outlined, execution was key for the business outside of just proving the model. The amount of licensees that came to the company onboarded, I think, proved the validity of what we had built. The revenue, the increase in 2026, I think, has proven execution from the company.
Platform use, obviously scalability, operating leverage established in the first half of 2026. Clear pathway for 2026 to scaling volumes, existing new customers. One of the things I think that is very important to remember from 2025 to 2026 was these patient-specific virtual care companies were primarily going after kind of cannibalized, from a marketing perspective, treatments. GLP-1s, ED, hair loss, things that had been around for a little while and were very competitive from a marketing perspective. With the explosion of these newer peptides, there's going to be a lot more treatments available to these businesses to then do market. There were six approved or, sorry, recommended for approval. FDA already have sent in a document saying that they are going to be essentially by this year approved most likely.
There's another meeting in February of that same committee with another, I believe it's between seven and 12 peptides to be approved. There's 100 peptides in clinical trials right now. This movement towards patient-specific self-administered products is happening. It's happening in front of our eyes. This is kind of ground zero, we feel. The next 24 to 36 months, we think the market's just going to continue to increase, and we've uniquely positioned ourselves, we feel, to be a partner to everybody. And I think we've proven that in the last year very aggressively. Again, platform scalability demonstrated over four quarters. Record Q2 momentum extending into Q3 with growth continuing to compound again due to the model. Major regulatory tailwinds on compounded peptides to open new categories for the platform. That's pretty much what we've gone into.
One of the things we've seen post-COVID is not only did the FDA try to get their arms around everything because they were caught with their pants down, so to speak, for a few years there. But the boards themselves on a state level have a certain amount of discretionary bandwidth. So a business trying to stay on top of all of this, like one product in Boston or, sorry, excuse me, Massachusetts, one product in Florida can be treated very differently at a state level. So having a cohesive ecosystem where you say, "Here's my brand, here's my business. I just want to operate in as many places as I can, as compliantly as I can." And that's essentially what we do. Visible growth runway into the second half of 2026.
As I said, what we see for 2027 and beyond is a very similar influx of licenses that we saw last year from the initial approved patient-specific and the pressure that the FDA came on. Trying to save some time for questions at the end here, so I will move fast. Capitalization table, share price as of the 26th was CAD 3.19. Market capitalization, CAD 174. Total shares outstanding, 54.5 million. Convertible debt of CAD 12 million from some capital raises last year. Total enterprise value, CAD 155 million. Very tight share offering and inside ownership at about 50.1%. I will pause there and if there is any questions.
Can you contextualize the size that you think the peptide opportunity is relative to your existing business? Then two-part question. Second part, how do you see the gross margins on the peptide side compared to your existing business?
Perfect. Yeah. I would say traditionally, as we have grown, because the first two verticals was the main business until basically 2025, obviously, that is all we were dealing with. But the market potential for the third vertical, which is basically B2B patient-specific virtual, is just incomprehensible compared to the other two verticals. It is purely operations. The nurses physically have to go somewhere and give a service. The bricks and mortar physically have to get somebody inside the door. Now, we have hybridized the last two verticals, so a lot of our bricks and mortars, like The DRIPBaR, for example, who have been with us since 2021, they also have what is called DRIPBaR Direct, which is essentially increasing the LTV of the customers by utilizing the third vertical. So I would say right now, it is not this, but moving forward, it is probably going to be 95% of the business moving forward.
What was the second part?
Yeah. You have the VSDHOne
Yeah.
Part, but peptides relative to the existing VSDHOne, can you contextualize how big peptides could be as a percentage of the existing? Do you see this doubling the size of the
Yeah.
The second question was around gross margin on the peptide side versus the existing VSDHOne.
Yeah. Gross margins, there is kind of two parts to that question. The GLP-1 space and the preexisting approved peptides like glutathione, sermorelin, NAD+, those have been continually coming down over the last 12 months from a cost perspective, right? Obviously, these businesses that are selling them are going to have to try to squeeze their margins down. That has been quite aggressively, on the GLP-1 side, a race to the bottom for the last 12 months. You will not have that with the newer peptides. You are going to have healthier profit margins. But the bigger picture from us as an ecosystem is we have been, since last year, basically moving into the final piece of our ecosystem, which is the pharmacy ownership. Once you own the pharmacy, you can control your profit margins a lot more.
We've already done that in two pieces so far. We had an investment last year into a 50-state pharmacy. We also have stronger relationships that we mentioned on some webinars last year regarding partnerships with the pharmacies from a compliance perspective. That's our next step, is to move in where we actually control our own profit margins at that point. Sorry.
There's one thing about your ownership structure that confused. I do the math and maybe I'm wrong.
Yeah.
Victory Square owns how much of?
Yeah. Victory Square is approximately 45%. Would that be right, Shafin? Shafin is the CEO of Victory Square here. That came from an acquisition back in 2021 with the view of going public at a later point. That's where that ownership is coming from.
Okay. But when I do the math, I thought it was a bit higher, actually, because I was like 53. When I do the math, it struck me that the value that Victory Square owns more than just you, and that it was actually like if they were to dividend out all of the shares, you would be left with negative value. In other words, there is this huge disconnect between value. Maybe you can speak to that.
Well, it goes back to relationship, first of all. I think from a numbers perspective, they have obviously very strong ownership. We locked up the shares for a long time. I still believe they are. It is more of a partnership to grow the business. That was the original acquisition, work together, go public. Now, obviously, we have still a very tight share structure. There were some capital raises last year to address that and to help the company grow. But from an overall insider's perspective, it is 50%.
When do you think you could realistically start selling peptides?
Well, we are selling them right now. There is already GLP-1s of peptide. Yes.
Excluding GLP
The ones that are approved.
The ones that are approved, yeah.
Once these ordering starts
When they were recommended in July, obviously, we pay a lot of money to be on the money with these things. We thought it was going to be Q1 of next year. What's actually happened is it's been fast-tracked. I'm not sure if you were privy to an announcement from the FDA, where they literally filed those peptides for approval. What we're hearing is this year. That's what we're hearing from legal sources, FDA consultants, things like that, which is incredibly fast for the FDA to move, and it's in response of this black market. The black market's grown to CAD 10 billion. You have research use only facilities, which are basically operating in a very gray area because of the patient and market demand. The patients, in many cases, are being risky going to companies like that.
But again, now once they're compliant, the pharmacies, the good pharmacies, the pharmacies that we operate with who work on compliance, they've already started to prepare themselves for the production of these peptides. You can imagine the money they spend on due diligence. Yeah.
What do these peptides do to the body compared to other facilities, and who are your competitors?
From a slide that I showed earlier, from a competitor perspective, we're one of one from an ecosystem. There's no other business that is trying to support and grow as an ecosystem, as a 50-state medical company. Businesses that you'll see here may operate in one layer of what we do, like a telemedicine business, for example, or like a Hims, which is a great example, who have a good structure, but they only market for themselves. Hims can't allow other businesses to get into this space. Hims have to spend money on their own customer acquisition, so there's a ceiling in that aspect. What we set out to do was build a medical ecosystem, and Hims is in one vertical. They're in the third vertical, not the other two.
We tried to create a holistic solution to where we felt accessible healthcare was going to come from, and that is what we have done. I just got talked on for time. Thank you guys very much. Thank you.