Transcript

00:00 Next up is a modern version of an important health accessory. Hey sharks my name is justin wang. I'm here today to ask for five hundred thousand dollars for one percent of my company. Lark have you ever noticed that funky smell coming from your reusable water bottle. I bet you have and if you're like most people you do what we call the sniff test. We. The average reusable water bottle contains more bacteria colony than your dog bowl or toilet seat. No wonder they stink and it's no wonder. It's so tempting to reach for a single use plastic water bottle. The result over one million of these guys are consumed every single minute and that's no good for your health and even worse for the environment that's why we invented the lark bottle. The lark bottle is the world's first self-cleaning water bottle that purifies water on the go with a simple press of a button and in just 60 seconds. The lark bottle activates our patented uvc led technology pure abyss to eradicate 99.99 of harmful and odor-causing bacteria viruses and mold the results pure water from a pristinely clean bottle.So sharks who's thirsty for a great deal just want to be clear. I heard you properly five hundred thousand for one percent that's great robert congratulations. The highest valuation ever requested in the shark tank you seem like a reasonable human being tell us why it's by the way in all 50 minutes. See. I have a couple of these oh you do yeah great that's awesome. I do but what's the market opportunity that justifies this. So it's a huge market. Big water is a real thing. It's a 300 billion dollar market worldwide of which reusable market is only 7 it is growing. I tried to swear off of single-use plastic water bottles several years ago. I bought several reusable options and sure enough they ended up in the back of the cabinet or in my gym bag. They would collect mold if it sat in my car. It would get stinky so. It's the self-cleaning part the cells and purifies it looks to me.

02:18 Like you have a uv light in the top can you explain how this works and what it does. This is actually an optical system that's designed to reflect the uv light inside. So simply you press this button. The uv light turns on my co-founder is a phd in physics from caltech. He's engineered this to bounce to optical light throughout the bottle. So then how many minutes does it take to do that we have two modes. Our normal mode is 60 seconds and then we have a venture mode which is three minutes so if you want to take it to a developing country or camping or you're just somewhere where you don't quite trust. The water justin is it safer than boiling water. It would be the equivalent of boiling your water for like 20 minutes. Really competition are you the only one that has uv activation and cleaning we launched in october of 2018. We're the first one on the market. We have about 10 patents both utility and design around this product and other products.

03:11 But there are copycats out there that we're pursuing potential legal actions for right now so justin. Why is it worth 50 million dollars. So we launched this product in 2018. So we've been on the market for a little almost two years under two years and in our first full year. In 2019 we did a little over five and a half million dollars in sales. There you go in the last 12 months we've done over nine million dollars. This year we're planning on doing 14 million dollars what you going to make on the 14 million. So we brought on our first alside venture capital round earlier this year in january and we leaned into growing the business. So this year we're expecting to lose about a million dollars justin how much did you raise 6.7 at what valuation at a 31.7 million dollar valuation. So just let's talk real business. You've only raised 6.7. How much do you have in the bank uh. I have about 6.5 okay so you really haven't had to spend anything right yeah. What do these retail for the one you have right. There is 95. I paid 95 for this yeah. The land it cost is around 40. You said you had a lot of patents. What are those other products. You already have well. Some of those patents just cover some other applications but some of them do apply to the new product.

04:29 This is the lark pitcher which is our first foray into the home. Let me do that real quick and while that's going. I'll show you a video of how that works traditional water pitchers use a filter and the biggest problem is that they only trap contaminants where they could quickly accumulate and multiply and actually reverse contaminate your water. Why do they reverse contaminate because the contaminants are being trapped and collected there and as germs are growing. There's a wet porous environment that's dark so imagine all the things that could be growing there. So we take a two-step approach. The first step you see it go through and it captures things like lead cadmium mercury. In the second step. You simply press this button and it'll purify the water that's gone through and as you can see that is a clear water that we poured blue water in that's contaminated clear water but is anybody else doing this. No one's doing this. There's a million people on planet don't have access to clean water and 1.5 million don't have access to electricity. So. I don't think any of those people are getting. This bottle right now because they don't have 95 dollars.One percent of our our proceeds go to our charity partner. One percent for the planet charity water well where where we build wells in africa. One percent of profits. One percent of revenue we pledge revenue gross revenue gross revenue okay one percent that is that is impressive off top line. I mean you're committed. I get it that is important. Damon was gonna stick a skewer through you.

05:52 No I might still but I want to just lay it out where I am okay. I think we're at a time when people are really angry. They're they're looking for hope and when I signed up to this platform. The platform didn't start off as the wealthy helping the wealthy with 6.5 million in the bank. I just could not do this because I just think that I'm here for a different reason. I think this is crazy. I'll let all the sharks discuss it. But I'm. I'm out. I also come from a background where I didn't have a lot. It's unfortunate. You won't take that journey with me. But I respect what you're saying so let me take a shot at it. I support a charity called one drop making sure everybody can drink fresh water around the world.

06:30 Something I get behind love to be involved in this but I'm not doing it for one percent. I bring too much value. I've never done a deal for one percent for obvious reasons. I'll do it for four percent. I don't care how you structure it advisory shares whatever so you want him to do it at almost one-third of his I understand. I didn't say you would like it mark or you would. I'm just telling you what I would do is. There. Other offers out there or you know to give you half a million dollars for one percent. I I feel like. I'm not making anything the category that we're in is gigantic. It's a 300 billion dollar industry and it's so ripe for disruption and so right for innovation. I think honestly here like I'm going to take offers and listen to they can offer lori. I would love to work with you. I would love it 500 000 for five percent. You keep on going backwards justin justin. The problem with one percent is you're priced for perfection and yes. I would love to own one percent of apple and I would love to own one percent of tesla. But the odds are just so low to make it easier for your investors. I'll do five hundred thousand.For three percent. We can work out the other two percent for from your advisory pool. That's my offer and mark are you anywhere yeah. I know where I'm at um so look there's different platforms for different reasons right. This is a place where people come where they just need a little bit more fuel. They need a little bit of help. We're not here to evaluate companies that may be billion dollars in sales over a trillion dollar market in 20 years which is possible. But this is not the place to do it so for those reasons. I'm out so your three offers what do you want to do you know. The offers are all great but even without the advisory shares below my last valuation of 32 ish right to be honest with you. That's really my bottom line. What about we got you all in for half a million dollars each for 1.5 million dollars total at four and a half percent.

08:31 I know. I will also throw an advisory share of one percent split between the three of you so for a total. It would be five and a half percent for that money yeah. Okay here's something we'll do would you consider a million and a half for six percent and each shark gets two if you get three sharks huge value for you. Two sharks are out and justin has one offer on the table from kevin lori and robert for his water purification company lark huge value for you 1.5 million 500 000 each for six percent. What say you uh. I could accept the offer with one condition that the structure in a way that 1.5 million dollars for 4.5 and the remaining 1.5 with the advisory shares should be divided among you. My question is do I get two percent for my 500 000. You do how long is the vesting period for the advisory shares 24 months based on what but yeah what are you. Basically what do. I have to do to get my advisory share. I think we just have a conversation about what we could do with the business how we could build it together.Maybe it's qvc maybe. It's developing. They make it very simple. It's too complicated you know what I'm out because I've worked really hard to get to this point. I don't need you to interview me i. I don't want contingencies on it. You know that we're going to be involved. We don't want to see that just evaporate absolutely absolutely. I'm in for two percent for 500 000. I'll do a million dollars for four percent split between you and lori. I'm in no advisory. It's just straight.

10:21 Advisor would just vest no contingencies so half a million dollars each for 1.5 plus half. A percent in advisory shares two percent total. I don't want advisory shares I i like can you do that look. I want her a part of the deal for sure. I see lots of value here whatever it takes to get her on board. I want the same so are you putting a stake in the sand here on the yeah. I would go two percent okay well. That's what you got to do but not advisory shares um what if those shares just invested up front because I have to structure something while I'm not going below my last valuation. It's two percent on front done done all right you.