Core Insights - The latest PatentVest Pulse report highlights a significant shift in the surgical robotics market, indicating it is not saturated despite the low percentage of robotic surgeries performed globally [1][2] - The report analyzes over 18,000 patent families and $4 billion in M&A activity, focusing on 28 robotic platforms, emphasizing the importance of platform defensibility in the sector [1][3] Industry Overview - Surgical robotics is characterized by fewer than 6% of the 310 million surgeries performed globally involving robots, attributed to cost, complexity, and deployment constraints rather than clinical limitations [2] - The report identifies strategic signals for future category leaders, including IP positioning, regulatory momentum, and platform scalability [3] Company Dynamics - Major surgical robotics platforms like Mako, Monarch, and Hugo began as venture-backed companies with strong IP and regulatory momentum, suggesting potential future leaders are among current emerging companies [5] - Intuitive Surgical remains dominant in the market but is experiencing slower expansion compared to challengers who are outpacing it in new patent filings [8] - Legacy companies such as Medtronic, Johnson & Johnson, and Stryker maintain strong commercial infrastructures, while public challengers like Vicarious Surgical and Microbot Medical are advancing their platforms [8] - Venture-backed companies are aligning for strategic scale, mirroring profiles of past M&A targets, indicating a trend towards consolidation in the industry [8]

This presentation contains "forward-looking statements." These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" and variations of these terms or the negative of these terms ...

Leadership Transition - Matthew Hayden will transition from a board director role to a newly created position as Entrepreneur in Residence effective June 30, 2025, leveraging his three decades of experience to support early-stage disruptive technology companies [2][3] - Dan Torpey has been appointed Chair of the Audit Committee effective February 13, 2025, bringing 24 years of experience as an Assurance Partner at Ernst & Young LLP, enhancing MDB's governance and operational rigor [3] Company Strategy - These leadership transitions reflect MDB's commitment to building a world-class leadership team to support its strategy of launching and scaling transformational technology ventures [4] - MDB Capital Holdings focuses on launching "Big Ideas" into valuable public companies through community-driven financings of pre-revenue, early-stage disruptive technology companies, primarily via early public offerings on NASDAQ [5]

MDB Capital Holdings (MDBH) Q1 2025 Earnings Call May 21, 2025 04:30 PM ET Company Participants Kevin Cotter - Head - Capital MarketsChristopher Marlett - Co-Founder, CEO & Chairman Kevin Cotter This conference call is being recorded. Before we begin the formal presentation, I'd like to remind everyone that statements made on this call and webcast may contain provisions, estimates or other information that might be considered forward looking. While these forward looking statements represent our current judg ...

Financial Data and Key Metrics Changes - The company reported a modest increase in its shareholder base, onboarding several new accounts interested in the HeartBeam offering [29] - Net current assets decreased by approximately $2.3 million, with less than $2 million in cash utilized during the quarter [35] Business Line Data and Key Metrics Changes - The company is pivoting towards companies that are closer to product revenue and value creation, indicating a shift in focus from deep tech ideas to more profitable ventures [19][48] - The company has three letters of intent (LOIs) with new companies, including a biotech firm with a pre-money valuation of $20 million, a profitable beverage company, and a healthcare software company [20][22][23] Market Data and Key Metrics Changes - The current venture market is characterized by a significant number of companies that have received funding but have not gone public, creating opportunities for the company to take these firms public [11][12] - The company noted a backlog of IPO opportunities due to changing market dynamics, with investors preferring companies that are capital light and closer to profitability [15][17] Company Strategy and Development Direction - The company aims to scale its operations by bringing three to four new investment opportunities to the public market each year, focusing on companies that can resonate in the changing marketplace [43][44] - The management emphasized the importance of valuation and the need to find extraordinary businesses at the right values to provide great return opportunities for investors [20][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the small IPO market, suggesting it will be robust and may reverse long-standing downtrends [17] - The management acknowledged the current challenging environment for small companies but remains confident in the company's ability to curate and take public viable businesses [24][49] Other Important Information - The company has restructured its executive compensation plan to align better with shareholder interests, converting a significant amount of stock compensation to options [31][32] - PatentVest is seen as a critical component for value creation, assisting in business development and strategy for the companies it works with [66][70] Q&A Session Summary Question: Can you talk about the company financing the $20 million for the potential cure for diabetes? - The company financing this is PaulX Bio [52] Question: How does management interpret the persistent discount of the MDBH stock price relative to the IPO price? - Management believes it is primarily a supply and demand issue, noting that market perceptions can change over time [54][56] Question: What is the future dividend policy? - The dividend policy will depend on the impact of share distribution on the companies involved and the company's cash flows [58][60] Question: How does the company make money when taking a venture public? - The company earns equity through pre-IPO financing and charges cash fees, often receiving a blend of cash and equity [62][63] Question: How much of MDB's value is due to its share of ownership of the companies taken public? - The company believes that if it had gone public at a better time, its valuation would be significantly higher [74][76] Question: Does the company consider acquisitions instead of IPOs? - Currently, the focus is on public ventures, but the company would consider acquisitions if they are accretive to its public venture strategy [79] Question: How many firms are doing what MDB Capital is doing currently? - Management believes there are very few firms left that can effectively take small companies public, highlighting the company's unique position [81][82]

Core Viewpoint - MDB Capital Holdings is focused on launching disruptive technology companies and is actively working on a robust pipeline of new opportunities despite market volatility [3][5]. Company Updates - MDB Capital Holdings closed a public offering of common stock for HeartBeam, Inc with gross proceeds of approximately $11.5 million [8]. - The company completed Letters of Intent (LOIs) for three new "Big Idea" companies to launch in 2025 [8]. - MDBH increased its shareholder base by 4.5% during the first quarter of 2025 [8]. - The company onboarded 111 new MDB Direct accounts in Q1 2025, marking a 26% increase since the end of 2024 [8]. - MDB Capital is exploring innovative approaches to leverage its self-clearing platform to broaden IPO offerings for early-stage and emerging companies beyond deep tech [8]. - The executive compensation plan for four top executives was revised to realign incentives with shareholder interests [8]. Operational Highlights - The company is seeing a steady flow of micro-cap companies with exciting technologies that are seeking to go public [3]. - MDB Capital is in the final stages of diligence for a robust pipeline of new opportunities, aiming to scale the number of disruptive technology ideas turned into valuable public companies this year [3].

Core Insights - The PatentVest Pulse report highlights a significant gap between rising valuations of humanoid robotics startups and their lack of intellectual property protections, indicating potential long-term value risks [1][2] - The report serves as a strategic guide for investors, board members, and CEOs to identify which companies are well-positioned and which are vulnerable in the humanoid robotics sector [1][2] Industry Analysis - The analysis benchmarks the IP portfolios of leading startups such as Figure AI, Sanctuary AI, Apptronik, Tesla Optimus, Neura Robotics, Engineered Arts, 1X Technologies, and Collaborative Robotics, mapping over 11,000 patent families across 794 entities globally [3] - The report emphasizes the importance of IP as a critical factor for scaling, licensing, and capturing long-term value in the humanoid robotics industry [2] Emerging Leaders - Figure AI is gaining attention and capital, while Sanctuary AI is building a defensible platform, with other companies like Neura Robotics, Apptronik, and Agility Robotics also making strides through focused IP strategies [6] - Sanctuary AI is noted as one of the few startups among the top 20 global patent holders, highlighting the rarity of defensible positions in the industry [6] Corporate Landscape - Major industrial players such as Sony, UBTECH, Honda, Toyota, Hyundai, Alphabet, and Samsung hold over 11,000 humanoid robotics patent families, indicating significant corporate consolidation in the IP landscape [6] - University-led innovation is crucial, with institutions like Tsinghua University, AIST, and the University of Tokyo holding key patents that influence core technologies and future commercialization opportunities [6]

Core Insights - MDB Capital Holdings, LLC plans to host a Zoom webinar on May 21, 2025, to discuss its first quarter 2025 results [1][2] - The webinar will be led by CEO Christopher Marlett and will include discussions on recent developments, ongoing initiatives, and anticipated milestones [2] Company Overview - MDB Capital Holdings, founded in 1997, focuses on transforming deep technology ideas into valuable public companies through a unique public venture capital approach [3] - The company specializes in community-driven financings of pre-revenue, early-stage deep technology companies, primarily through initial public offerings (IPOs) on NASDAQ [3] Services Offered - MDB Capital operates as a self-clearing broker-dealer and provides services through its MDB Direct trading platform and PatentVest, an integrated intellectual property intelligence and consulting firm [4] - MDB Capital is a registered broker-dealer and a member of FINRA and SIPC [4]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the period ended March 31, 2025 [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents MDB Capital Holdings, LLC's unaudited interim financial statements, including balance sheets, statements of operations, equity changes, cash flows, and explanatory notes for Q1 2025 and 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$68.6 million**, a decrease from **$72.0 million** at December 31, 2024, primarily due to a reduction in cash and cash equivalents and the fair value of investment securities Condensed Consolidated Balance Sheet Summary (Unaudited) | Account | March 31, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Total Assets** | **$68,626,418** | **$71,976,399** | | Cash and cash equivalents | $19,551,997 | $20,437,492 | | Investment securities, at fair value | $5,385,918 | $5,858,336 | | Equity method investment | $40,891,050 | $41,763,568 | | **Total Liabilities** | **$1,640,020** | **$1,903,065** | | **Total Equity** | **$66,986,398** | **$70,073,334** | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, the company reported a net loss of **$6.6 million**, an improvement from a net loss of **$7.6 million** in the same period of 2024, driven by new fee income of **$2.1 million** and lower operating costs Consolidated Statements of Operations Summary (Unaudited) | Metric | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | Total operating income (loss), net | $828,098 | $(660,389) | | Fee income | $2,140,238 | $0 | | Total operating costs | $6,738,002 | $7,286,791 | | Net operating loss | $(5,909,904) | $(7,947,180) | | Net loss | $(6,601,793) | $(7,609,328) | | Net loss attributable to MDB | $(6,587,362) | $(7,215,425) | | Loss per Class A share – basic and diluted | $(0.66) | $(0.78) | [Unaudited Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased from **$70.1 million** at the end of 2024 to **$67.0 million** as of March 31, 2025, primarily due to a net loss of **$6.6 million**, partially offset by **$3.5 million** in stock-based compensation Changes in Equity for Three Months Ended March 31, 2025 (Unaudited) | Description | Amount (USD) | | :--- | :--- | | Balance, December 31, 2024 | $70,073,334 | | Stock-based compensation | $3,514,857 | | Net loss | $(6,601,793) | | **Balance, March 31, 2025** | **$66,986,398** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2025, net cash used in operating activities was **$1.3 million**, compared to **$2.3 million** in the prior-year period, resulting in a net decrease in cash of **$1.3 million** with the period-end balance at **$20.0 million** Consolidated Statements of Cash Flows Summary (Unaudited) | Cash Flow Category | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,257,855) | $(2,259,097) | | Net cash provided by investing activities | $0 | $3,445,523 | | Net cash used in financing activities | $0 | $(91,507) | | **Net (decrease) increase in cash** | **$(1,257,855)** | **$1,094,919** | | **Cash at end of period** | **$20,023,378** | **$8,452,606** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail MDB's corporate structure, significant accounting policies, and financial activities, including subsidiary operations, the deconsolidation of eXoZymes, segment performance, equity structure, and subsequent events - MDB operates as a holding company with subsidiaries including Public Ventures (broker-dealer), PatentVest (IP services), and M1 (pharmaceutical development), with eXoZymes deconsolidated in November 2024 to an equity method investment[21](index=21&type=chunk)[25](index=25&type=chunk)[102](index=102&type=chunk) - The company operates in two segments: Broker Dealer & Intellectual Property Service, and Technology Development, with the Broker Dealer segment generating **$0.83 million** in net operating income and the Technology Development segment incurring a **$44.8 thousand** net operating loss in Q1 2025[84](index=84&type=chunk)[85](index=85&type=chunk)[88](index=88&type=chunk) - As of March 31, 2025, **4,950,632 Class A shares** and **5,000,000 Class B shares** were outstanding, with Class B shares carrying five votes per share and being convertible to Class A shares on a one-to-one basis[96](index=96&type=chunk)[97](index=97&type=chunk) - Public Ventures, the company's broker-dealer subsidiary, maintained **$10.2 million** in net capital at March 31, 2025, exceeding the minimum requirement by **$9.9 million**[117](index=117&type=chunk) - Subsequent to quarter-end, on April 28, 2025, key executives voluntarily exchanged outstanding RSUs for stock options equivalent to Class A shares[135](index=135&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Q1 2025 financial results, noting a reduced net loss driven by new fee income and lower operating costs, improved segment performance, and strong liquidity despite a decrease in working capital Consolidated Results of Operations Comparison (Unaudited) | Metric | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | Total operating income (loss), net | $828,098 | $(660,389) | | Total operating costs | $6,738,002 | $7,286,791 | | Net loss | $(6,601,793) | $(7,609,328) | | Net loss attributable to MDB | $(6,587,362) | $(7,215,425) | - The Broker Dealer & IP Service segment's net loss decreased to **$1.44 million** in Q1 2025 from **$2.19 million** in Q1 2024, primarily due to **$2.14 million** in new investment banking fee income[148](index=148&type=chunk)[150](index=150&type=chunk) - The Technology Development segment's net loss attributable to controlling interests decreased to **$30.4 thousand** in Q1 2025 from **$614.6 thousand** in Q1 2024, mainly due to the deconsolidation of eXoZymes[152](index=152&type=chunk) - Working capital decreased to **$20.2 million** at March 31, 2025, from **$27.3 million** a year prior, primarily due to cash used in operations[162](index=162&type=chunk) - Critical accounting estimates include revenue recognition for investment banking, potentially involving warrants valued with the Black-Scholes model, and fair value measurement of financial instruments across Level 1, 2, and 3 hierarchies[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is a smaller reporting company and is therefore not required to provide the information requested under this item - As a smaller reporting company, MDB is not required to provide quantitative and qualitative disclosures regarding market risk[187](index=187&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to a material weakness in internal control over financial reporting, though financial statements are fairly presented and remediation efforts are underway - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to a material weakness in internal control over financial reporting[188](index=188&type=chunk) - Despite the material weakness, management performed additional analyses and concluded that the financial statements in the 10-Q are fairly stated in all material respects[188](index=188&type=chunk) - The company is implementing measures to remediate the material weakness, including redesigning the financial reporting process, with remediation confirmed only after new controls operate effectively for a sufficient period[189](index=189&type=chunk)[190](index=190&type=chunk) [PART II - OTHER INFORMATION](index=44&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers other information including legal proceedings, risk factors, unregistered sales of equity, defaults, mine safety disclosures, and exhibits [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) As of the filing date, the company is not a party to any material legal proceedings and is not aware of any pending or threatened litigation that would have a material adverse effect on its business or financial condition - The company is not currently a party to any material legal proceedings[194](index=194&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section highlights key risks, including the potential adverse effects of changes in U.S. tariff, import/export regulations, and trade policies on the global economy and the company's financial services business - Changes to U.S. tariff and trade policies could materially adversely affect global economic conditions and the company's business, financial condition, and results of operations[196](index=196&type=chunk) - Government actions, including changes in tariffs and reductions in research funding, may impede the company's ability to conduct research and raise capital for its partner companies and clients[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - No unregistered sales of equity securities occurred during the period[198](index=198&type=chunk) [Item 3. Defaults upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities were reported[199](index=199&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[200](index=200&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) This item is not applicable to the company - This item is not applicable to the company[201](index=201&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and Inline XBRL data files - This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL files[202](index=202&type=chunk)[207](index=207&type=chunk)

NASDAQ: MDBH We make investments that can change lives Fourth Quarter and Full Year 2024 Results March 31, 2025 FORWARD-LOOKING STATEMENTS & DISCLOSURES This presentation contains "forward-looking statements." These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "go ...