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 ...

Financial Data and Key Metrics Changes - The company is unable to provide detailed financial results due to the deconsolidation of Invizyne's financial statements, which has delayed the filing of the 10-K report [6][14][25] - As of December 31, the combination of cash and securities was $28 million, and Big Idea investments, represented by eXoZymes, was $64 million, totaling approximately $93 million [58] - The stock price as of December 31 was $6.30, with approximately 9.9 million shares outstanding, resulting in a market value of $62 million, indicating a negative market value of $30 million [58][59] Business Line Data and Key Metrics Changes - The company has successfully launched eXoZymes, marking a significant achievement despite challenging market conditions for small IPOs [14][15] - The shareholder count has increased by 12%, reaching approximately 1,800 shareholders [15] - The onboarding of investors through MDB Direct has begun, with over 500 accounts established by the end of the year [16] Market Data and Key Metrics Changes - There is a growing demand for microcap financing, with investors seeking liquid alternatives, positioning the company as a top curator of public venture opportunities [32] - The traditional venture capital and private equity markets are facing challenges, leading to increased interest from companies looking to go public [30][31] Company Strategy and Development Direction - The primary strategic priority is to expand the investor community, focusing on partnerships with RIAs and angel groups [35][41] - The company aims to transition from episodic deal-making to creating a consistent public venture asset class portfolio [34] - The company is optimistic about presenting new Big Idea investment opportunities in the near future, with a focus on companies that are more developed and potentially have revenue [80] Management's Comments on Operating Environment and Future Outlook - Management is excited about the significant increase in opportunities being presented, both from community members and through their own curation efforts [26][27] - The regulatory environment is perceived as improving, which may facilitate new offerings, although there are concerns regarding the FDA's approval timelines [87][88] - The company is focused on maintaining operational efficiencies and reducing cash operational expenses while increasing revenue from various lines [62] Other Important Information - The company has licensed new assets from Mayo Clinic and is developing that opportunity, with plans for potential further investment [49][50] - The company continues to work with HeartBeam, which is developing groundbreaking technology for self-administered ECGs, with significant market potential [44] Q&A Session Summary Question: Does Lou Basenese still work for the organization? - Lou Basenese has left the company but remains a friend and supporter, focusing on his media presence [65][66] Question: What does the deconsolidation mean for MDB stockholders and eXoZymes' investors? - The deconsolidation will clarify the financials of MDB, separating its performance from eXoZymes, making it easier to understand [70][71] Question: How many Big Idea companies are expected to be established in 2025? - The company anticipates presenting three to four new Big Ideas this year, with some being more developed and potentially having revenue [80][81] Question: How do you see the regulatory winds changing? - The regulatory environment is perceived as improving, which may facilitate new offerings, although there are concerns regarding the FDA's approval timelines [87][88] Question: When do you expect to make any type of dividend? - The company aims to see a value-creating event within eXoZymes before considering any distributions to shareholders [92][93] Question: How should shareholders think about the investment in cash and resources relative to value creation? - The company intends to maintain a modest amount of cash for new opportunities while leveraging existing investments to create value [99][100]

Financial Data and Key Metrics Changes - The company is unable to provide detailed financial results due to the deconsolidation of Invizyne's financial statements, which has delayed the filing of the 10-K report [6][14][25] - As of December 31, the combination of cash and securities was $28 million, with Big Idea investments represented by eXoZymes valued at $64 million, totaling approximately $93 million in cash and securities [58] - The stock price as of December 31 was $6.30, with approximately 9.9 million shares outstanding, resulting in a market value of $62 million, indicating a negative market value of $30 million [58][59] Business Line Data and Key Metrics Changes - The company has successfully launched eXoZymes, marking a significant achievement despite challenging market conditions for small IPOs [14][15] - The shareholder count has increased by 12%, reaching approximately 1,800 shareholders [15] - The onboarding of investors through MDB Direct has begun, with over 500 accounts established by year-end [16] Market Data and Key Metrics Changes - There is a growing demand for microcap financing, with investors seeking liquid alternatives, positioning the company as a top curator of public venture opportunities [32] - The traditional venture capital and private equity markets are facing challenges, leading to increased interest from companies looking to go public [30][31] Company Strategy and Development Direction - The primary strategic priority for the company is to expand its investor community, focusing on partnerships with RIAs and angel groups [35][41] - The company aims to present one to two new Big Idea investment opportunities in the next quarter, indicating a robust pipeline of potential investments [52][53] - The company is evolving from a model of episodic deal-making to creating a consistent public venture asset class portfolio [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the increasing number of opportunities being presented, both from community members and through proactive curation [26][27] - The regulatory environment is perceived as improving, which may facilitate new offerings, although there are concerns regarding the FDA's approval timelines [87][88] - The company is focused on maintaining operational efficiencies while managing cash expenditures, with hopes of reducing operational costs over the next 12 months [62] Other Important Information - The company has licensed new assets from Mayo Clinic and is developing this opportunity, although no specific updates were provided [49][50] - The company continues to work with HeartBeam, which is developing groundbreaking technology for self-administered ECGs, with significant market potential [44] Q&A Session Summary Question: Does Lou Basenese still work for the organization? - Lou Basenese has left the company but remains a friend and supporter, focusing on his media presence [65][66] Question: What does the deconsolidation mean for MDB stockholders and eXoZymes' investors? - The deconsolidation will clarify the financials of MDB, separating its performance from eXoZymes, making it easier for investors to understand [70][71] Question: How many Big Idea companies are expected to be established in 2025? - The company anticipates presenting three to four new Big Ideas in 2025, with some companies already in advanced discussions for potential IPOs [80][81] Question: How do you see the regulatory winds changing? - The regulatory environment is expected to improve, facilitating new offerings, although there are uncertainties regarding FDA timelines [87][88] Question: When do you expect to make any type of dividend? - The company aims to wait for a solid footing under eXoZymes before considering any distributions to avoid disrupting the market [92][93] Question: How should shareholders think about the investment in cash and resources relative to value creation? - The company intends to maintain a modest amount of cash for new opportunities while leveraging existing investments to create value [99][100]

Core Insights - The PatentVest Pulse report highlights the significance of intellectual property (IP) control in shaping the future of brain-computer interfaces (BCIs) and neurotechnology [1][4] - Neurological disorders are a rapidly growing area in global healthcare, with BCIs emerging as a next-generation solution to address these challenges [2][3] Market Overview - The U.S. BCI market is projected to exceed $400 billion, with $80 billion focused on high-acuity patient populations and $320 billion in long-term potential across broader neurological and psychiatric conditions [3] - Early alignment of IP, clinical validation, and commercialization strategies will be crucial for companies to scale in this vast market [3] Competitive Landscape - The report provides a comprehensive analysis of the BCI market, profiling key players such as Synchron, Neuralink, Blackrock Neurotech, and others, while mapping over 2,160 patent families across 664 entities [4][9] - Companies like Synchron and INBRAIN are establishing leadership through innovative strategies, while Neuralink garners significant media attention [6][9] Intellectual Property Dynamics - More than 2,160 unique BCI patent families are held by various companies, indicating an accelerating competition for control over system-level IP [9] - Academic institutions, including Tianjin University and Stanford, continue to dominate early-stage innovation, holding foundational patents that support commercial efforts in the BCI space [9]

Investment Strategy - MDB Capital Holdings operates as a foundational platform for financing startups, focusing on community-driven micro and small-cap financings ranging from $5 million to $60 million[23]. - MDB's investment strategy includes a two-step financing approach, providing initial seed capital of $5 million to $10 million, followed by additional funding of $20 million to $60 million for commercialization[31]. - MDB aims to take a majority ownership stake in partner companies, planning to seek one or two partner company opportunities per year[54]. - MDB intends to maintain at least 35% voting stock in partner companies, ensuring influence over management and strategic direction[55]. - MDB's investment philosophy focuses on identifying early-stage companies with disruptive technologies that can sustain value in public markets[29]. Partner Companies and Development - The Big Idea Pipeline identifies approximately 250 technologies annually, narrowing down to about 50 active Big Idea Companies, with two currently in active negotiations for potential partnership or investment[26]. - MDB's partner companies must demonstrate "Tech Leadership Potential," "Platform Technology," and "Large Market Potential," ensuring a robust intellectual property position[27]. - Three companies founded by MDB, Provention Bio, Cue BioPharma, and Pulse Biosciences, have traded at or above $1 billion in market value, enhancing their ability to raise capital for commercialization[34]. - MDB's model emphasizes long-term involvement with partner companies, including board membership and strategic business advice post-IPO[32]. - The company aims to create a strong foundation for partner companies during their development phase to attract top talent and ensure long-term success[39]. Community and Investor Relations - MDB's community consists of over 500 sophisticated investors who support the public venture model and advocate for the partner companies[45]. - MDB shareholders can buy or sell shares in the holding company at any time, participating in capital formation through private placements or public offerings[52]. - The company expects to provide substantial capital to partner companies more easily than traditional venture capital, enhancing growth potential[51]. - MDB's public venture model is designed to offer liquidity, efficiency, and transparency, addressing the unique needs of early-stage companies[49]. Intellectual Property and Technology Commercialization - PatentVest is expanding operations to optimize technology commercialization, transforming complex legal processes into manageable business processes[75]. - The company plans to leverage its proprietary patent database to enhance the value of inventions and guide strategic business decisions[76]. - PatentVest has built a proprietary patent database containing over 148 million patents across 116 countries, enhancing its ability to support technology companies[86]. - The PatentVest process is expected to guide technology companies in prioritizing ideas and developing intellectual property strategies, enhancing their market position[85]. - PatentVest's legal services will focus on intellectual property matters, enhancing the value of inventions through strategic legal support[88]. Regulatory and Compliance Risks - The company’s broker-dealer, Public Ventures, must comply with SEC Regulation S-P, which mandates policies for protecting client information and providing privacy notices[112]. - The company faces risks from potential security breaches, which could lead to significant legal and financial exposure, as well as reputational damage[114]. - The company is subject to stringent privacy and data protection laws, including the Gramm-Leach-Bliley Act and the California Consumer Privacy Act, which could result in liabilities and require modifications to data handling practices[183][184]. - The California Privacy Rights Act, effective January 1, 2023, imposes additional obligations on the company regarding data privacy and may increase compliance costs[184]. - The company anticipates that more states will enact privacy legislation similar to the CCPA, which could complicate compliance and increase legal risks[186]. Operational Structure and Growth - The company currently employs approximately 16 full-time employees and engages consultants for various activities, indicating a lean operational structure[127]. - The company anticipates growth in the number of employees and consultants as operations expand[129]. - The company has funded operations primarily through equity financings and revenue generated by services since inception in 2022[143]. - The company may require additional capital to support operations and business growth, which might not be available when needed[143]. - The business model does not rely on operating cash flows from partner companies, which are expected to not generate revenues or positive cash flow during development[147]. Market and Competitive Landscape - MDB faces competition from other capital providers in acquiring and developing partner companies, which may lead to higher acquisition costs and increased risk of loss[177]. - The company recognizes competition from traditional venture capital firms and aims to differentiate through community support and development of partner companies[60]. - Political and regulatory environments in the U.S. and Nicaragua pose risks that could adversely affect MDB's operations and financial condition[164]. - The company believes that the conflicts involving Ukraine and Israel do not have a direct impact on its operations or financial condition, but may have general effects due to international sanctions and inflation[182]. Challenges and Risks for Partner Companies - The company’s partner companies may encounter challenges typical of early-stage companies, including regulatory and market penetration issues[148]. - The company’s management will need to effectively manage growth and expansion of partner companies, which imposes significant responsibilities[149]. - Partner companies may face challenges in protecting their proprietary rights and could infringe on the rights of others, leading to potential litigation[200]. - Limited foreign intellectual property rights may hinder the ability to protect intellectual property globally, impacting competitive position[204]. - Collaborations with third parties are essential for research and development, and failure to maintain these arrangements could adversely affect business[212]. M1 Company Specifics - M1, a partner company, aims to develop a small molecule anti-senescence platform targeting age-related diseases, with the global market projected to reach nearly $45 billion by 2030[91]. - M1 entered into a License Agreement with Mayo, granting exclusive rights to develop and commercialize patented technology, issuing 1,980,000 shares representing 33% of its shares and paying an initial license fee of $150,000[92][93]. - M1 is currently in the pre-clinical development stage, conducting feasibility studies and collecting drug safety data, with milestone payments required for clinical trial initiations[95][96]. - M1's compounds are novel, necessitating extensive safety and efficacy testing to gain market acceptance and regulatory approval[220]. - The success of M1 is highly dependent on hiring and retaining specialized scientific staff, which may be challenging due to high demand for such talent[221].

Core Insights - MDB Capital Holdings, LLC is focused on launching deep technology companies and has made significant progress in a challenging venture market, highlighting the value of its public venture approach [2][6] Operational Highlights - The company successfully completed its first full year of its clearing and trading platform and has expanded its investor community by 12%, onboarding 456 new brokerage accounts and increasing assets under management from approximately $2 million to $44 million [6] - MDB Capital launched an initial public offering for eXoZymes Inc, a company spun out from UCLA, and currently owns about 47% of its outstanding shares [6] - The firm increased its analyst team to 14, screening 8,964 companies and examining 217 for potential market leadership, resulting in a strong pipeline of "Big Ideas" [6] - MDB Capital operates a self-clearing broker-dealer and an online investment platform specifically for public venture investing, enhancing its service offerings [6][8] Financial Reporting - The company filed its Form 10-K with the SEC, which includes consolidated financial results for all operations, including eXoZymes' performance until its IPO on November 14, 2024 [6]