MDBH — MDB Capital Holdings, LLC Class A common

MDB Capital Holdings Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• MDB Capital reported a cash burn of $5.7 million for the year, with fixed operating expenses at approximately $10 million.
• After accounting for $4 million invested in clearing operations and PatentVest, the net cash burn was effectively $1.7 million.
• The company holds about $22.3 million in cash and marketable securities after liabilities.
• Current market valuations for key assets include eXoZymes at approximately $30 million and Paulex, which is expected to have significant value upon its IPO.

2. Strategic Updates and Business Highlights:

• MDB has successfully completed its 18th IPO, maintaining a track record of never failing to take a company public.
• The company is focusing on scaling its operations to launch 3-5 companies annually, leveraging AI to enhance efficiency in due diligence and preparation for IPOs.
• MDB Direct and PatentVest are being developed as separate entities, with plans for potential spin-offs to unlock value.
• The company is exploring partnerships to enhance its clearing operations and distribution capabilities.

3. Forward Guidance and Outlook:

• MDB anticipates a significant reduction in operational expenses to about $6 million annually following the spinouts of MDB Direct and PatentVest.
• The company is optimistic about the potential for its portfolio assets to reach $1 billion valuations, citing the transformative impact of AI on their operations.
• Clinical trials for Paulex are expected to initiate in September, with results anticipated by the end of the year or early next year.

4. Bad News, Challenges, or Points of Concern:

• The macroeconomic environment and microcap market conditions remain challenging, with concerns about dilution affecting portfolio companies.
• Execution risks persist, particularly regarding the commercialization of technologies within their portfolio.
• The company faces a distribution gap, which is critical for scaling operations and successfully launching new offerings.

5. Notable Q&A Insights:

• Management expressed confidence in the potential of Cue Biopharma, ClearSign, and HeartBeam, despite their current struggles, highlighting the importance of partnerships and commercialization efforts.
• Concerns regarding dilution for eXoZymes were addressed, with management suggesting that government grants and efficient operations would mitigate significant dilution.
• The potential spinout of PatentVest is expected to be funded through strategic partnerships, with plans for a public offering in 2027.
• Management acknowledged the need to broaden their investor base to enhance distribution and support for future offerings.

Overall, MDB Capital Holdings is positioning itself for growth through strategic investments in technology and operational efficiencies, while navigating challenges in the current market landscape.