Welcome, everyone, to this session of our January 2026 MicroCap conference. I'm Alex Hantman, and I serve as an equity research analyst here at Sidoti & Company. Today, we're pleased to be in conversation with Danny Yeung, the CEO and co-founder of Prenetics, ticker PRE. During the presentation, please feel welcome to submit questions using the Zoom Q&A interface at the bottom of your screen. After the presentation, we'll open to your questions. And with that, Danny, I'll turn it over to you.
Thank you, Alex. Good morning, everyone. My name is Danny Yeung, CEO and co-founder of Prenetics. Before I get started on the presentation, which I do believe is a very compelling and interesting growth story that we have here at Prenetics and IM8, I just want to spend about two minutes. Let's give everyone a quick background about myself. My name is Danny. As I mentioned, I've always been an entrepreneur since I was 24, but more notably and recently wise. Again, the last two businesses I've co-founded are very relevant to what we're doing here at IM8. That is, in 2010, I moved from the U.S. to Hong Kong to launch an e-commerce company that was then acquired by Groupon. So at the time, Groupon was already a $3-$4 billion company. They looked to acquiring a market leader in every country, so they acquired my company in Hong Kong.
I then led Groupon as their East Asia CEO from 2010 to 2014, leading that to being the largest e-commerce company in the region. Why is that relevant? It was during those three to four years, I learned so much in terms of direct-to-consumer brand, all the details that we need to understand from a performance marketing side of things that's very relevant today. I fully exited in 2014, started Prenetics as a life sciences diagnostics testing company. Early days, we're mainly doing DNA testing. During the COVID era, we pivoted to doing PCR testing. We scaled basically from zero to doing about $800 million in COVID testing over a three-year period of time. We made about $100 million net profit during that time. We also utilized the opportunity to list on the Nasdaq in 2022. Of course, when we listed, COVID was still ongoing.
At the time, we had a $1 billion valuation. But of course, as COVID testing diminished or basically evaporated, our share price went away, right? Or went plummeted down. We knew we needed to do something very transformational on the business side of things. Given my business background here in Asia, I had a friend that actually introduced me to David Beckham in London. Then we started brainstorming in terms of, hey, what could we do together? In 2023, we had the idea to create IM8 as a way to simplify nutrition. We launched the brand IM8 in 2024, at the end of 2024. Then so in this presentation, we'll go over our current growth trajectory.
Given the significant growth of IM8, if you guys look at the history of Prenetics, you will have seen that we've had other business assets, namely ACT Genomics, more recently, Europe. We've actually divested both of these business units and in the process of divesting one last one, which I'll also share in the presentation. The reason why I believe my last two experiences from Groupon, as well as the founding of Prenetics, is very relevant. It shows that we have the capability to scale very aggressively in a very efficient manner. This slide just gives you an idea in terms of where we are today. Full year 2025 estimate revenue, again, we haven't released our Q4 results yet, but publicly we mentioned that we would have done $80 million-$100 million in full year revenue, which we've achieved.
Now, for this year, we forecasted our $180 million-$200 million full year revenue. We currently have an equivalent of approximately $110 million in pure cash, as well as 510 Bitcoin on the balance sheet with zero debt. In terms of investment thesis, we have a $120 million ARR consumer brand with IM8. Of course, it's on a billion-dollar trajectory driven by strategic partnerships with the co-founding by David Beckham. As recently, we added on Aryna Sabalenka, the world number one tennis player, last June as not just an ambassador, but also as a shareholder. Lastly, I believe we're very unique in that if you look at our net asset value, we actually have a considerable net asset value compared relative to our market cap. Just again, look on the bottom left, we have about $110 million cash. We have an investment stake in Insighta worth $70 million.
If we look at just where the IM8 business currently is today, we peg that at roughly about $380 million. So, if you look at the total estimated value, we're talking about approximately $560 million. So, I think that already provides a strong foundation from an investment perspective, as well as a really, really great risk-reward ratio. So, this is our current business units that we have today. Again, 95% of this is now with IM8 Health, given that we've already divested other business units. We have CircleDNA, the direct-to-consumer DNA test that we started back in 2019. The other piece, we have a significant investment in Insighta, which is an early cancer detection company. Currently, the only other investor in that is Tencent. And when they came in last year, our 35% stake was valued at $70 million.
We've already mentioned publicly that we are in the process of divesting in Insighta. Then with that, make us primarily IM8 focused. And as you can see on the bottom there, our full year revenues for IM8 was $60 million. We're projecting $180 million-$200 million for full year 2026 and for 2027, $350 million-$400 million. So what is IM8? So again, as mentioned, this is a brand Prenetics and David Beckham co-founded. We met approximately two years ago. I think for him, I'm sure for the last 30 years, so many individuals, big brands have went to David to launch a product within this category with his name. He's rejected them all until he said yes to Prenetics. And a big portion of the reason is that he saw our last 10 years as a science-based company. He saw my background from a consumer and direct-to-consumer business.
I think the combination of the two created trust in him. And he was at the time in his career where he wanted to utilize his platform to create a product that really worked. And even for himself, he wanted to solve the product issue, which basically at the time, he was taking 12, 13, 14, 15 supplements on a daily basis. We knew there had to be a simpler, better way to get your supplements. And we created that with IM8, which is basically a simple powder that you mix with water and is the equivalent of 16 different supplements you drink on a daily basis. On top of David, one key thing that also really resonated with David, I told him from day one, "Hey, David, hey, we cannot make this brand just about you," even though everyone knows how famous you are.
But from a science perspective, this has to be really scientifically backed, so we brought along nine scientific advisory board members, which are truly the best of the best. Dr. Dawn, she's the integrative oncologist at Mayo Clinic. Even James Green, he's the former chief scientist of NASA. Suzanne Devkota, director of microbiome at Cedars-Sinai. So we brought along individuals that collectively helped formulate our product. This gives you an idea in terms of the growth rate that we've experienced, which is from an on-record basis, the fastest ever supplement brand to hit 120 million ARR. So you see, we actually hit about 100 million ARR in 11 months. On the bottom there, you'll see the supplement brands Ritual, Liquid I.V., Vital, SmartyPants, and AG1. It took them at a minimum of five years to hit that market where we did it in less than 12 months.
This gives you the trajectory on a month-to-month basis from our first month in December of 2024, and then in December, we hit $10 million monthly revenue. You'll also see from May to June, what happened is that we actually had a 50% month-over-month increase, and this is where we had the addition of Aryna Sabalenka on board as a global ambassador as well as a shareholder. And then that continued the momentum until the end of the year, and of course, leading into Q1 of this year as well. So we've never had a declining month, as you can see the growth. And this is interesting also. Our business is 100% direct-to-consumer, and 98% of the business is actually transacted on im8health.com, and the other 2% is on Amazon.
We specifically did it that way because you'll see on Amazon, our price point is actually higher than our own website. And that was done specifically so we get a lot of the customer data that we have on hand. So again, just some highlights here in terms of the global market size. I think everyone knows the supplement industry is massive. It's pegged at about $700 billion market by 2030. To date, we've had more than 540,000 customer purchases. We deliver over 16 million servings. Our average order value is now above $200. Keep in mind, this average order value has increased from $110 from when we launched our initial essentials product to our longevity product. Now we've also introduced a 90-day subscription right last month, which then has further increased our average order value.
One key thing that we've also did from day one that really separated us from the other competitors is that we ship globally, so we ship to 31 countries. We now have a 60% gross margin, and very interestingly, 80% of our customers are on monthly renewals or three-month renewal subscriptions, which is really, really high in the industry. Again, we have clinical trials that we ran, which has showed individuals that are on the IM8 for a period of 90 days: 95% have shown noticeable difference in energy, 85% better digestion, 80% better sleep, 75% sharper focus. So it's a truly all-in-one supplement that you can feel it work.
Again, just to kind of show what the USPs on the product are, as I mentioned earlier, on the left side, it literally replaces 16 different supplements because the challenge of taking all these supplements is that you have to pack them, especially when you're traveling, you're very busy. A lot of times, you forget to take your supplements because it's just very cumbersome. And we've simplified this to one powder, one drink on a daily basis. So we want to make nutrition easy and simple. It also tastes great, which again, a lot of times people, they don't take this part of the product experience seriously. And so we really went from the entire customer journey from formulation, unboxing, taste, and post-customer service as well. And also, I'd like to highlight that the product is NSF Certified for Sport.
So that means if you are a professional athlete like Aryna Sabalenka, which is the world number one tennis player, you know you're going to get drug tested on a weekly or biweekly basis. And we know it's third-party tested by NSF to be sure that it's free from 280 banned substances, tested for heavy metals to ensure that this is a clean product and you know exactly what you're putting into your body. Even from the individual label claims on the ingredient supplement facts panel, this says it's 100 milligrams. In there, you know it's for sure 100 milligrams. We published the reports directly on our website. So we're very, very transparent with everything that we do. And as you can see here, again, we've done a lot of community events around the world. This shows you what we've done with Aryna.
In fact, I was just in Melbourne this past week. We just did another event with Aryna right before the Australian Open. So this really builds our community around the world. So we've done this in New York, Miami, London, Melbourne. And so I think this really creates that community because ultimately, we're not just selling a product. We're selling a lifestyle that if you want to be number one, if you want to be at your best or perform at your best, if you want to be your healthiest, IM8 is that product for yourself. So we have 10,000 plus five-star reviews. But just going back on the Aryna piece, I think it's very interesting. A lot of people ask me, of course, they know about David Beckham, but hey, how did Aryna get involved? The reality is Aryna came organically.
Her performance and nutrition coach, Jason Stacy, started testing the product early parts of 2025. He felt the difference. He asked Aryna, "Hey, try this out," because they weren't really happy with their supplement regimen. Aryna took it for three months. She felt noticeably much better energy and recovery and sharper focus, and she had her team reach out to myself. I got an email saying, "Aryna loves your product. Can we partner together?" That was one of the best emails I received in 2025, and she's been a great ambassador, takes the product on a daily basis. Her team takes the product on a daily basis. I think because athletes, they have so many options when it comes to supplements. At her level, to be taking it on a daily basis, I think it just gives us a lot of credibility.
Again, some more events, images from events that we've done on a global basis here with David. One interesting thing too is that, again, as mentioned, we are a direct-to-consumer brand. We have one AI video that just kind of highlighted how well we do. So if you look on our Instagram page under IM8 Health, we have already almost 180,000-plus followers. But we have one video that actually racked up 200 million-plus views and was completely made with AI. So once we do that, once we have 200 million people watch the video, it makes it so much easier for us to retarget. And I believe it's the number one ad on social media and all of Instagram in 2025 with 200 million views. So that just gives you an idea in terms of our scale and how we've been able to pretty much dominate social media.
Again, this is kind of high-level-wise what I mentioned at the beginning. We're also backed fundamentally by strong net asset value with cash, $110 million in Insighta valued at $70 million, IM8 business valued at $380 million, and total estimated asset value at $560 million. How do we get that $380 million? We look at a few comparables. And to be fair, there's not many supplement brands or direct-to-consumer brands that are publicly listed, but we do have a few. So everyone may know Hims and Hers. They're valued at $11 billion. But if you think back in 2020, they were doing roughly about $200 million revenues. And now they're doing about $2 billion. So they've scaled significantly. ODDITY is another direct-to-fully direct-to-consumer brand with multiple brands.
Il Makiage, SpoiledChild is their two biggest brands, but they've been doing amazing since they started the company about five, six years ago. Niagen, as well. Again, they have about $100 million revenue, but their market cap is $600 million. And as you can see, our growth rate, no one's been able to even come close to our growth rate. So I think we do believe at $380 million, it's a very conservative valuation for IM8. Some of the key growth drivers for 2026 in terms of how do we go from $60 million full-year revenues to $180-$200 million. Again, we're going to be investing in new marketing channels. We're going to be also investing in our website localization. We have a few new SKUs coming out later this year. We also have new global ambassadors across different sports.
We're going to continue to leverage upon AI marketing for ads as well as optimized landing pages. So, for example, current marketing channels right now is 85% of our spend is focused on Meta, 15% on Google. We still have a bit of ways before we get to our ceiling, but again, we want to have less dependency on those two channels. So we will be exploring YouTube, TikTok AppLovin basically by the end of this quarter and moving into Q2, which we believe will also create new audience demographics for us as well as improve our overall customer acquisition costs. We're also looking to global market localizations in at least five to 10 of countries that we believe localization makes sense. Hong Kong, Germany, France, Japan, Spain is some of the key markets that come to mind.
And so that means is that our website would be translating to these countries' local language, our ads as well. So we believe that will easily be a 15%-20% uptake in these countries just given this localization. New product launches. Again, we're not going to be one of those brands that will have 50, 100, 200 SKUs because I just don't think it's realistic that each one of these SKUs are going to be best in class, but we will come out with two new health-related supplement SKUs on an annual basis. And we've already shown success with this because we started with Daily Ultimate Essentials. And of course, that was our hero product until last October where we introduced Daily Ultimate Longevity. And overnight, when we announced longevity, our average order value went up from $110-$150.
So what that means is people trust the brand already. They're having success. They're feeling a difference by me. So it's much easier for them to trust us when we launch new products. And we also, on the right side, I mentioned that we're going to be looking into getting into more partnerships with individuals that are in F1 or talented field athletes as well in the NBA, WNBA, and further involved in tennis because we feel players have a direct correlation with the audience and just telling authentic stories that they're taking this on a daily basis as well as their teams and coaches. As mentioned also, again, AI is a key driver to success for any successful DTC brands. And so for us with AI's, again, we're looking to upscale it so that we can get up to 1,000 ads on a weekly basis.
We're right now about 6,700, so we're quite close. We're also in the process of creating more landing pages that are customized to the ads. And why is this also important? Because, for example, let's say on Meta, if we wanted to spend $200,000 or $300,000 on a daily basis, just because I set the budget to spend, want to spend $200,000, $300,000, $400,000, I can't do that unless I have creative diversity across our ads. And I need lots of ads to do that. So that's very, very important for the algorithms to show our ads to the right audience on a global basis. In terms of, again, I also get this question, of course, if you look at our market cap, market cap is roughly about $250-$260 million.
They're asking, "Danny, why do you believe we're trading at a discount given our cash position, our balance sheet?" I think ultimately, we had a lot of legacy business. As I mentioned, we had the diagnostic testing. We had the COVID testing. We listed U.S. SPACs. So there's a lot of legacy aspects. And previous businesses were actually quite complex, especially when we talked about clinical testing. And also key is that for IM8, yeah, I mean, we've only had three public quarters of IM8 data. And I still do believe when people understand the story and they see us delivering on a quarterly to quarterly basis a lot, wow, hey, these guys is very unique. They're delivering on growth. I think this is where people start really paying attention.
Again, we've already kind of shown that, but I believe it's going to be more and more because I think you've seen over the past 12 months, our share price has already more than doubled. But I think it's just the beginning of our story. This gives you an idea in terms of our financial momentum and outlook that we have. So again, we haven't released Q4 numbers yet. So this is why we're looking at nine months, 2025, basically to $55 million. We had a gross profit of $27 million. Our gross profit from Q3 quarter is 49%. But if you look at our quarter three, the numbers just for IM8 is 60%. And a lot of the reasons for the gross profit percentage being at 49% was it lumped into other lower margin businesses such as Europe.
As mentioned, also FY2026, we're forecasting roughly about $180 million-$200 million. We're investing in growth as well. Given that, if you think about nine months, we're only a 13-month-old brand, and we have a lot of firepower to do so, so we have over $110 million in cash and cash equivalents and BTC. As mentioned, we are also in the process of divesting in Insighta. Yeah, so I do believe we have a very unique value proposition of strong growth, strong metrics, as well as strong unit economics that we have been able to show for the past year. So that ends my presentation. I know, Alex, there's many questions from the audience, ask them yourself.
Absolutely. Danny, thank you so much for the presentation. As a reminder to folks, they can submit questions using the Zoom Q&A interface at the bottom of your screen.
Danny, maybe we could start off. Something that you mentioned briefly was that Prenetics IM8 is certified NSF for sport. But for folks new to this space, could you talk about how much or little regulation supplements typically have and maybe some of the quality issues that can sometimes surface?
Sure. So in general, on a global basis, I mean, maybe just highlight even U.S., for example, FDA does not regulate the supplement industry. So the reality is someone tomorrow just can launch a supplement brand, and they don't need any type of approvals whatsoever. And so there have been a lot of challenges in terms of, let's say, a lot of companies have gotten into trouble because they'll put in 100 milligrams of CoQ10, but there's only maybe 20 milligrams.
Or even recently, there's been a lot of press in terms of creatine in gummies where brands are saying they have five grams of creatine. But the reality was, I think there was only one out of eight companies, eight brands that actually had more than five grams of creatine in their gummies. And the reason part of the reason why, again, is unregulated. So from day one, what we've done is that we've been publishing our third-party testing results from both Eurofins as well as from NSF Certified for Sport. So these are two different organizations, two different independent reports. They actually have to come into the manufacturer. We give them batches of the product they test for. And NSF Certified for Sport is especially important if you're a professional athlete.
If you are a professional athlete, I mean, you're on NBA, MLB, tennis, whatever professional, you would not take any supplement which is not certified for sport because it could have contamination. And imagine your Aryna Sabalenka or get contaminated. Basically, your career may be over. You have to be extremely, extremely careful about everything that you're putting into your body. From day one, we've had this certification. If we say it's 100 milligrams on it, you'll be certain that there's 100 milligrams of this product in the formulation.
Thank you. And Danny, we have a question around capitalization of the business. How well capitalized do you think you are to fund the investments and growth that you've spoken about?
Very well capitalized. I mean, I think you see our balance sheet. We have more than $110 million. That is basically liquid for us.
So I think for us, wise, again, we already went through the product development. Right now, it's just reinvesting in growth, new marketing channels. And to be fair, when we invest in marketing channels, there will be a test and trial period. But I think if you look at even our full-year numbers from 2025, is that basically in Q1 last year, we lost $6 million, Q2, $4 million, Q3, $2 million. So it's actually lessened. Again, in 2026, again, we're going to be investing in growth, but we have no needs for any additional capital.
Great. And I think you mentioned a little bit about average order value has been trending up as you've released new subscription options, new SKUs. Could you talk a little bit about your cost to acquire a new customer? We have a question about how that's been trending as well.
Yeah. So I think as it relates to customer acquisition costs and AOV, naturally, when your CAC increases, I mean, your AOV, average order value increases, your CAC will also increase. That's a direct function. So I would say that when we first launched our first product, Daily Ultimate Essentials, our average order value was approximately $110. So for a monthly subscription, it's $89. So some individuals are buying more than one. So that's why it's $110. So when we introduced the longevity product, which was actually more expensive, and so this is for individuals that are looking to slow down aging at a cellular level, our average order value went from $110 to $150. These are new customers, keep in mind, and then when we launched our 90-day subscriptions in December, our average order value went from $150 to $200. So it's continually increasing.
But I do believe that, A, basically, the CAC and AOV ratio is at industry highs. I think the other key metric that we also look at is the payback period. We probably mentioned that our payback period before the launch of longevity as well as the launch of 90-day was hovering about 3.9 months. This is basically the time it costs us to recoup our customer acquisition costs. Given the 90-days one, this is about now lower than three months for us to acquire on average a customer. So giving it as a reference for Hims and Hers, it's roughly 12 months the payback period for them to basically recoup that customer acquisition cost.
Great. Yeah.
So I think anywhere from payback period, I would say three to six months is already really, really good in the DTC world.
Perfect.
We had a question on payback period, so that was good to touch on. And we're almost at time. So Danny, maybe we could end on what you think has sort of resonated with the street as the stock has gone up over the last year and for investors. So on the sideline, what do you think they might be missing?
Yeah. So I think this is one of the really rare opportunities. Investors can, in fact, invest in a very high-growth company that's publicly listed because you don't normally have supplement brands at least at this early stage. So it's a very unique scenario because if I'm at a private company, realistically, at this growth, I could probably be raising money all day long at $500-600 million valuation.
Given a lot of the legacy issues, the complications with some of our previous businesses, it presents an amazing risk-reward ratio. Again, ultimately, I think for investors, you have to see what we're building out as the brand. Go on Instagram, read the reviews, look at our Instagram page, see what we're doing within the community. Ultimately, this is something that we want to build. My ambition is for IM8 in the next three to five years that we can be one of the world's biggest supplement brands. Already in the last 13 months, you ask any of your friends that are already on supplements, I would say half of them have probably heard of IM8. The brand recognition in such a short amount of time has been unprecedented.
The media coverage that we've gotten in the last 13 months as a supplement brand has been unprecedented. And I believe that will translate for us to, again, we did $60 million full-year revenue last year in 2025. I'm confident that we can do $180 million-$200 million. So that means by the end of this year, in D2C, we should be doing roughly about $25 million on a monthly basis. And at our market cap levels, I think it's a really great, again, reward to risk ratio. And ultimately, we want to be a global player in the supplements brand for many, many years to come.
Great context. With that, we are at time. So Danny, thank you very much for sharing the Prenetics story with us. And I'd also like to thank everybody listening for spending time with us today.
Great. Thank you.