Okay, we will begin our next presentation, so please welcome the CEO of TEN Holdings, Randy Jones.
All right, thank you everybody for hanging in there. First of all, I want to thank the LD Micro team for having me follow a gentleman who is literally seven feet tall. It's very confidence-inspiring as I get up here. I did not play college basketball, just so we're clear. Had the drive, not the height. Anyway, nice to meet you. My name is Randy Jones. I'm the CEO of TEN Holdings. I'm going to take about 20 minutes or so and walk you through our story, tell you a little bit about us, our journey, our adventure, and then be happy to answer any questions that you may have. We went public seven weeks ago. It's been a, you know, I like to pick arguably the hardest and most difficult time in the market in a really long time to go public. That's a joke.
Here's our disclaimer. We've got Eric in the back, and I also say she has a shock collar on me because I'm still learning that if I start to go down the path and say anything that I'm not supposed to say, as they record this and it's streaming, she'll give me a zap and keep me on point. Obviously, all the information that we're going to share is publicly available. TEN Holdings is a holding company. It was established about a year ago. Right now, currently, it has one operating company called Ten Events. What Ten Events does, and this is a very good example of it in this room, is for large corporations, we handle their corporate events. We'll talk a little bit about more in detail, but there's really three types.
There's what we call live, i.e., there's an audience that's in the room. There's virtual, which is purely streamed over the web. There's hybrid, which is, this is a good example of what we're in. There's a live presence. The guys in the back are capturing it, they're filming it, and then it's being streamed across the internet to anyone who wants to attend. We're a full-service company. We deliver that. We have the people, the technology, the platform, the experience. The operating company's been in business for 14 years, and we've literally done thousands and thousands of events. I'll give you examples as we move forward of some of the types of events that we've worked with and the different kinds of companies that we work for. Again, this is basically our mission. It's called TEN for two reasons.
The holding company, TEN, stands for The Events with an S, Network. Right now, there's only one operating company that's underneath the holding company, but we have plans to grow, and we'll talk about that here in a little bit. The other reason that we call it TEN, there's a very, very high degree of expectation that the events that we deliver for our customers are perfect. We have all kinds of rankings, but quite simply, we would like to get a 10 out of 10 on each of the events that we provide. That's a constant reminder of what we're striving to do. This is just a little bit of the history. The original webcasting company was founded back in 2011, so it's about 14 years. In 2021, it traded about $100 million in annual revenue on the Tokyo Exchange that has a division that.
Same type of virtual broadcasting events in Japan. Candidly, they're the 800-pound gorilla in Japan. They also own the largest independent studio for rent in both Tokyo and Kyoto. What they wanted to do was get into the U.S. market. If you've ever been involved in any of that international bidirection, it's very hard for a U.S. company to break into Japan or a Japanese company to break into the U.S. market. They acquired that company back in 2021. I've been with the company for two years. The first thing I did was come in, focus on operational efficiency, get the company healthy and ready to grow. We went through a rebranding exercise, and then the holding company, and then the IPO process, which is a small microcap company, took about 12 months and was quite a journey. We were successful.
We're publicly traded on the NASDAQ today. I'll tell you a little bit more about the stock and that venture, but very proud of what we've been able to accomplish so far. Just a little bit of those companies again. You've got V-cube, who is the parent. I'll highlight that post-IPO, V-cube still owns 80% of the company. There is strong support, strong interest, and a lot of flexibility, hopefully moving forward on how we leverage that equity to help us strategically grow. You've got TEN Holdings, who's the holding company, and then you have Ten Events, which is the operating company that is the events company that I had referred to. Here's our lovely faces. You can recognize me in the middle. Naoaki Mishita, or as I say, Mishita-san, is the original founder and group CEO of V-cube. It's interesting when you look at him, it makes me humble.
He's young. He started that company right out of college. That company's been in business for 25 years. I think he's 46. He is on our board of directors. He's a big deal in Japan. He's highly, highly supportive of the company. The only other thing I'll highlight there on that particular slide, I am also on the board of directors of the Japanese company. There are 13 of us, and I'm the only a little bit more. We all got a real lesson in this during the pandemic. Everybody's used Zoom or Teams or Webex or whatever it is. The kinds of events that we use are. Time I enough, I'm going to give up. I'm going to go watch something else. We're very, very spoiled, and we're very, very impatient. The corporate messaging for these types of things, it's no different.
I don't go into great details in this presentation, but all our stuff runs in the cloud, and the technology aspect, the redundancy, the resiliency, the security, on and on and on. If you're from a tech stack, we spend a lot of time and money behind the scenes so that, just like when you're watching a TV program, you take for granted that it's going to come on, it's going to be on time, it's going to be perfect. This particular account, great account, super demanding. These are some of the types of events that we do. It really doesn't matter, but if you think about it, to your customers, to your employees, to your prospects, to your analysts that cover your space or your sector, how effective us is incredibly important. That's when people come to us and use us for these types of things.
I'll tell you a quick anecdote. It's another accounting firm, we'll say that, but that lower bucket, the continuing education, the [audio distortion] firm offers if you're a CPA and you have your license, you have to do accreditation hours of training every year to stay current. They use our solution. They run 26 of these events a year. They're one hour long, and CPAs can log in for free, and it's basically like a course. They have to be engaged, they have to be invited, they get a certain number of questions correct, and when they do, they pass. That allows them to turn it into the accreditation board without any other involvement and get their ongoing hours. That particular customer had. You might ask, why did they do that? For them, it's a huge lead generation system.
Because when you take one of those courses, you opt in and you give them your information, and then they reach out to you and they say, who do you use for tax and audit? Because that's what we do and we sell services. It's been, ironically, a very large revenue driver for that particular accounting firm. That's yet another use case or example of how our technology gets used. Very sophisticated, that's a cool one. Anyway, some of the customers that we work with for various different types of events, there isn't necessarily a single industry that we're probably better at. It's just really anywhere typically where the audience sizes, I would say, are medium to large. Medium to us is 500 to 1,000 attendees, largest is as high as 50,000 attendees concurrently. It just depends. How important is your message?
How important is what you're getting across? We're located outside of Philadelphia. We're about 30 minutes outside of Philadelphia. If you know anything about PA and kind of that whole surrounding area, we do a fair amount of business in the pharmaceutical industry, but it doesn't really matter. Candidly, I like the variety. It's not just one type of customer, but we get to see a whole host. You know, why do they trust us with their most important events? They like our team, they like our service. To be clear, depending on the customer, some of them use us for everything, some of them use us for parts.
We have people that do design, creative, production, capture, the actual people who run, think about it when you see Monday Night Football and you see the guys in the booth and they're literally producing and running the show. We have people that do that in every instance for the virtual events. We also do a good job of providing the data and the analytics of the attendees back to the company. You would be surprised how telling some of that data is. You can actually understand who was the most engaged, who wasn't. There is a lot of different ways and technologies that we use to do that, but sometimes that's really, really compelling.
If you think about it with the concept of intent data, if you're doing something to your prospects, who has a higher likelihood or probability based on the engagement in the event to convert and to move forward in the sales cycle? Again, and I get asked all the time, and I'll kind of say this if it helps, like people are like, well, how is this different than Zoom or this or that? Zoom's kind of a one-to-one. We're actually a Zoom partner. My parent company is the largest reseller of Zoom in Japan. Zoom's a good tool, right? If you have a really big audience or you want something that looks like a television show, Zoom's not designed to do that. It just doesn't. I would also say it's a huge market and it's just continuing to grow.
We kind of hedge, so like pandemic, not pandemic, physical, virtual only, hybrid, we do not care. We service all of those markets. If for whatever reason one goes up or one goes down, we have the ability to support the flux. Look at that. You have got an experienced leadership team. I am just kidding. I am talking about myself. I did not write that slide. You know, big TAM, huge markets. Right now, we deliver this currently in one model, which is as a service, full service. We are working on, and this is in our S1, which we talk about, so I can speak to this. We are working on delivering a product that if clients want, they can run their own meetings. Think about if we went out to dinner tonight in New York and we walk through the front door. What do we want to do?
Right? Nothing. We want to be served. We want them to take our order. Leave. That's full service. That's how we have historically delivered our model for the 14 years. If, for instance, you had your own ingredients or you wanted to cook your own food or you owned your own kitchen or for some reason you wanted to eat at three in the morning when restaurants are typically closed, we will deliver a product that will allow you to do that. It's coming out at the end of 2025. It'll be delivered on a software as a service basis. It'll be a platform. The nice thing for us is, aside from the, you know, hopefully not with the margins that accompany that, it isn't dependent on the labor component and the expertise. We can basically just empower end clients.
You might ask, well, aren't there things that are out there that do that? There are. There's a number of them. Our clients are the ones that are asking us for this. They have all those solutions. What they want us to do is deliver kind of the same high-level capabilities for the same types of events, but let them make their own food. We're happy to do it. We're excited. That's that middle bar, which I guess I was ahead one slide that I just was talking about or second bullet. You know, we are going to continue to enhance our capabilities. We put a press release out that talks about a partnership that we're doing for generative AI. You may ask, how's AI going to have anything to do with this?
If you think about a presentation or a webinar, it's got a lot of different components. One's the actual presentation itself. AI is pretty sophisticated right now where you could give it some guidance and it'll actually develop the presentation or the script or the questions and the questionnaire around a presentation that you have. Ironically, it's not quite there yet, but sometimes, not to be mean, the presenter is the worst part of a presentation. You know, we deal with a lot of sometimes dry topics in the medical industry or the pharmaceutical industry that have to be very stout and specific. There is interest in a concept of could it be an AI-generated presenter who's awesome and they deliver the message almost like you would hire an actor today to represent your product. It's pretty interesting. We'll see where it goes.
Finally, in terms of growth, this is where I think the story gets exciting. We went public seven weeks ago. The first day was glorious. Really a lot of fun. We priced at $6 a share, got as high as $8.55 on the first day, traded about 2 million shares, closed that day at about $7.13. If you've ever been on one of these rides, I've done a number of them, that's exactly what you want. We were super, super happy. Small float microcap, 1.6 million shares sold in the IPO. The next day, this is the interesting part, 10:00 A.M., someone places a million share naked short against our position. Stock comes under tremendous pressure. Some of the investors who are interested in us, somewhat because of our parent who are in Asia, are asleep.
Some of them have stop loss gap automated triggers on their position. Now as the stock starts to get under pressure and come down, some of the existing investors automatically are liquidating their position out of the IPO. Closed that day at about $1.50, roughly. It has been a pretty interesting ride since then. It has been as low as $0.47. It has been as high as $2.55. The interesting thing, if you poke at it right now, today it is around, which for the record, I hate and think is too low. The volume that has been trading on our stock is unbelievably high.
One day, if you can believe this, and let's just say there are 5 million shares that are available in the float, 200 million shares traded, which as I'm getting a huge education in naked shorts and algo trading and a bunch of stuff I know very little about, you would ask yourself, how is that even possible? It is actually a good thing. We believe that attracts long and the right types of investors. If they come on this journey with us, it will do very, very well. The strategic investments and partnerships, this is a growth strategy and/or I think it is the next slide, and I think this may be my last slide, a strategy. Our plan is to look for other events companies, partner or acquire, roll them in. We will only look for positive accretive revenue companies and positive EBITDA.
Saliva test. They are going to allow. We engaged in a cooperative research program and we found that you can use this for drugs of abuse. We said, okay, great, let's. Was there was a detection method so they could, the detection was in the SpinDx, but all the prep work was done by a skilled technician in the laboratory with multiple steps. You know, clearly that's not a viable commercial product. We need something that's simple that a police officer can do on the roadside, collect the sample, insert it into the disc and go. There was a lot of work to get to that point. Where are we? The methodology again, there's a microfluidic disc and we get the high sensitivity with an immunoassay fluorophore tag detection. We can talk about that in detail if you want afterwards.
A key thing because of the high sensitivity is we can discriminate through delta-9 THC. If you know about marijuana, there are a lot of cannabinoids available in marijuana, but the primary psychoactive agent, the thing that makes you high, is the delta-9 THC. After you take that into your body, smoke and your edibles or whatever, your body converts that into metabolites. The key thing with the SpinDx is that it can discriminate delta-9 from metabolites from other cannabinoids. This is a key differentiation for us for other products in the rapid drug testing area. There are not any other products that do that. If you want to talk about current impairment, you have to talk about what is the level of delta-9 THC. It is the only thing that is relevant.
The target, we knew we had to get the analysis down under 15 minutes to be interesting to the people who would be using this. We think we can get this down to eight or ten. We've demonstrated 13 in our laboratory and we're still working that down. When we licensed this, there were 10 patents that are part of our license package relevant to drugs of abuse. We've advanced the technology. We've had our own filing for a U.S. utility and a PCT patent for one. There will likely be a second filing to follow. We'll continue to watch that. We have demonstrated a panel of detection works on a panel of drugs, both in human saliva, human oral fluids, that's the precise word, or in human blood.
We are still working on, we have a GUI for this and you can see there are methods to identify various methods to identify the user. All your driver's licenses. Technology is that it is really flexible. If you have a state that has a different drug cutoff, you know, for cocaine, they want to say it is 25 mg or ng as opposed to 50, whatever, we can put that into the firmware. We identify that on the disc that it is for this state that has this different thing. There is a QR code. It is read by the reader and it goes, okay, great. I am going to call a positive at 25 instead of 50. What is the business model here? Again, you know, we have talked about the recurring revenue of the breathalyzers, right? Every time someone takes a test, they consume a mouthpiece, right?
You know, the standard in the marketplace, this is about a quarter. You sell a few million of these, that is a nice piece of revenue. The standard for the rapid drug testing market, the consumable kit there is about $25. 100x on the consumable piece. It is a much healthier, a much healthier revenue stream. Of course, the reader is going to be, you know, the reader is going to be expensive. We are going to make money on the reader as well. That recurring revenue of the $25 per test is really the attractive piece. There will be development of this. We will have different panels. For example, the U.S., we know what the panel is with the U.S. We have talked to the U.K. They want a different panel. We have talked to South Africa. They want a different panel.
They're interested in different drugs. You know, that's great because that really lines up with the flexibility of the technology. That's part of our differentiation. When we want to customize something, we just take the disc and we load it with different reagents. You want to test for this drug, okay, those reagents go here and these reagents go here. Very, very easily accommodated. You know, what are the next steps? We are going into beta testing this quarter, the second quarter of this year, which is this quarter. There's still a lot of work to do, but we have begun that planning process and we're going to be placing that device here later this quarter as well as with the test equipment necessary to do that. We need to still complete the roadside testing kit. There's a disc development.
The disc is not, this is not the final production disc. The disc is not final. We still have, there's still some optimization and redesign going on this. There's a collection kit that goes along with that as part of the consumable. Again, we are hoping for that first product release, which will be the reader, the disc, and the oral fluid collection in the first quarter of next year. The first release will be a THC, delta-9 THC only, pass/fail. There will be a subsequent release of quantitative, again, a differentiation with our technology that's not available in the marketplace. Then third will be the drug panel. You know, the timing of this is going to depend on manufacturing and that getting set up as well as really trying to structure that to get the maximum market introduction impact.
We want to be coming back to the market, hey, we've got a new disc. Hey, we've got a new disc. Hey, we've got a new disc. Likewise, this, the analysis method doesn't care. It's a liquid analysis method. It doesn't care the source of the liquid. We've demonstrated that it is capable of analyzing blood. It's going to be a different disc. It's going to be a different collection device, but that will be a subsequent product launch. Likewise, we came into this, you know, we were a breathalyzer company. We came into this really thinking that we can do this with breath. Again, because of the high sensitivity, there's not much THC in breath, but we believe the sensitivity is there. We still will have, the collection is more complex, but we will be working on breath collection as well.
That revenue, you know, where I talked about this, having the capability of doubling our revenue by 2028 is based simply on the saliva launch. Again, what's our growth strategy? It's really, we're going to nurture this core business. It's cash flow positive and we're going to do everything we can to grow that cash flow because we've got plans for every nickel that's coming out of that business. It's going reinvesting into our business, into the growth opportunity for drug detection. Because that's really got the opportunity to radically transform the business. We've, again, taken all the earnings, all the retained earnings and some modest financing. We placed a debenture, a subordinated debenture at the end of last year for $750,000.
We're still looking to place a similar offering, but we've been very careful about protecting shareholders and not going for higher dilution. With that, my presentation is complete. I'd welcome any questions. Yes. Does the testing, is it able to distinguish between delta-9 and delta-8? The question from the floor was, does it distinguish between delta-9 and delta-8? Today, it does not. It won't, delta-8 would not show up in the current panel that we have defined. That's, it's not that it's not possible. We simply haven't created that assay. If the market said demanded, we want a delta-8 assay as part of this panel, we can do that. That's a fairly straightforward exercise.
Just one other question right now.
Yeah.
Competition. Is there anyone out there in the market that is currently, are you able to detect cannabis?
There's a number of things that happen. What the most similar products, there are two products that are doing saliva-based testing, give a rapid result on a panel of drugs. They both are detecting THC, but they both will show a positive response based on delta-9 or metabolites. They don't really talk about current impairment. The whole idea, this embodiment is a screening test, right? What happens is you get, if you get pulled over by an officer and they suspect drugged driving, they're going to do, it might be a local emergency room or maybe at the police station. They'll do a blood draw and then they'll go and process you. The officer's going to spend two hours of his time and the district is going to pay for the blood draw. They're going to pay for the LCMS laboratory test.
They may find out you were drugged or they may find out you were not. They are going to spend $300. The officer is going to spend two hours. If the person is just going to walk, they do not want to waste their time on that, right? My son-in-law is a police officer and that is what he just, they just hate spending time on people who just go and walk. What this does is you do the rapid tests, 15 minutes, you save all that time. If it is not going to show up positive on an evidential test, you are not going to go and spend all that money and time. The competing devices that worked on saliva, since they are showing positives with metabolites, they do not give you that distinction. You have a still very high odds.
If someone is an hour after smoking, you know, they would show positive in all three of these tests and they would show positive in the evidential test. If it's been four hours since smoking, they would probably show negative on ours because their level has declined so much. They'd still show positive on the competing devices and on the evidential test, they'd be negative.
Someone else is asking a college for a moment. Go ahead.
I was just wondering from a sales perspective, you're talking about the expansion purely being from the new device that you guys are uploading to. Is it mainly just law enforcement? Is that the main source of your revenue or?
You know, in the U.S., the workplace on the breathalyzer business, you're asking about the breathalyzer business. I'm sorry, the question was, is law enforcement the main source of revenue?
A clarification was on breathalyzers. In alcohol breathalyzers, the U.S. workplace is actually a bigger market than law enforcement. That is where more of our revenue comes from. It is not always the case worldwide, but in the U.S., it certainly is. Interesting. We are about 10-20 seconds left.