MDB Capital Holdings (MDBH) investor relations material

Executive summary

• Transitioned from a founder-led, bandwidth-constrained model to a scalable public venture platform, aiming to increase launches from one every 18 months to 3-5 per year, leveraging AI to accelerate sourcing, due diligence, and company preparation processes.

• Built unique infrastructure assets (MDB Direct and PatentVest) to support scalable, cost-efficient operations and differentiated offerings, with strategic investments positioned for spin-out and monetization.

• Portfolio includes high-potential assets: eXoZymes, POLX/Paulex Bio, MDB Direct, and PatentVest, each targeting billion-dollar markets and significant independent value.

• AI adoption has dramatically reduced time and labor for due diligence, compressing timelines by two-thirds and enabling faster company launches and improved operational efficiency.

• Despite challenging market conditions and stock performance, management remains optimistic about future growth and shareholder value creation.

Financial highlights

• Year-end cash, current assets, and marketable securities (net of liabilities) totaled $22.3 million.

• Fixed operating expenses were about $10 million, with a cash burn of $5.7 million for the year; $4 million of this was invested in MDB Direct and PatentVest.

• Adjusted for these investments, effective cash burn would have been $1.7 million.

• Post-spinout of MDB Direct and PatentVest, operating expenses are expected to drop to $6 million annually, increasing financial leverage.

• Significant equity value generated in FY25, with operations right-sized for efficiency.

Outlook and guidance

• Positioned to launch 3-5 high-quality companies per year, leveraging AI and strategic assets, contingent on solving distribution challenges.

• Plans to spin out and monetize MDB Direct and PatentVest, with PatentVest targeted for a public offering in 2026/2027.

• Continued focus on expanding distribution and investor base to support increased deal flow, with shareholders retaining preferred access to deals based on MDBH ownership.

• Targeting cost/scale efficiency improvements and significant operating leverage post-PatentVest spin-out and clearing partnership.