Skip to content
    MDBH
    Earnings call· Jun 2026(Q2 FY26)

    MDB Capital Holdings Q2 FY26 earnings call MDBH

    Aug 13, 2026 Source

    Executive summary

    MDB Capital Holdings Q2 FY26 — Strategic Focus on Core Assets and Lean Operations Amidst Microcap Headwinds

    MDB Capital Holdings is navigating a challenging microcap market by strategically focusing on monetizing its four core assets: Public Ventures, PatentVest, eXoZymes, and Paulex Bio. The firm is pivoting to a leaner operating model, targeting $5 million to $6 million in annual operational expenses, to protect against dilution and maximize shareholder leverage. While new company launches are temporarily slowed, MDB is actively pursuing partnerships, spin-outs, and commercialization efforts for its existing portfolio, aiming for key value inflection points in the near term.

    Highlights

    5

    • MDB is actively pursuing partnerships or sales for its Public Ventures clearing platform, with interest from 4-5 parties and letters of intent received, aiming for completion in the next quarter.

    • PatentVest has pivoted its strategy to build an AI-enabled ABS law firm, leveraging a market where a similar firm was recently funded at a $750 million pre-money valuation.

    • eXoZymes is nearing execution of a strategic partnership with a contract manufacturer, which is expected to enable scaled manufacturing and accelerate commercial discussions for its multiple molecules.

    • Paulex Bio is on track to file its registration statement for an IPO in Q4 FY26, with clinical trial data on beta cell production expected in early 2027, holding potential for significant valuation inflection.

    • MDB aims to reduce total operational expenses to $5 million to $6 million annually by spinning out PatentVest and partnering its clearing operations, ensuring sustainability without dilution.

    Concerns

    5

    • The microcap market, where MDB operates, has been severely challenged, with the sub-$200 million market cap area comprising only 2% of total equity market capitalization despite representing 25% of public companies.

    • MDB's stock price is down from its IPO, reflecting the difficult market environment and the underperformance of its asset class.

    • The company's ability to launch new companies at its previously targeted rate of three to five per year is constrained by the current unfavorable market backdrop.

    • eXoZymes faced challenges in scaling manufacturing and securing commercial traction post-IPO, leading to a pivot in focus.

    • HeartBeam's stock price is depressing, despite its transformative technology, due to a prior strategy of trying to launch the product on its own, which was capital intensive and dilutive.

    Guidance & targets

    6
    CategoryTargetConfidence
    Public Ventures partnership/sale completion
    Wrapped up in the next quarter
    medium materiality
    High
    Paulex Bio IPO
    Getting close to the IPO in the fourth quarter of this year
    high materiality
    High
    Paulex Bio clinical trial data readout
    Data will start to play out in the early part of 2027
    high materiality
    High
    MDB total operational expenses
    $6 million a year
    medium materiality
    High
    Number of transactions in H2 FY26
    Two transactions
    low materiality
    Medium
    Significant fee transaction
    One fee transaction that we're working on that could be quite significant
    low materiality
    Medium

    Operational metrics

    17
    Operational expenses target
    $5M-$6M
    Annual

    Target for MDB's total operational expenses after strategic actions like spinning out PatentVest and partnering clearing operations.

    Transactions completed
    2
    H1 FY26

    Number of transactions completed in the first half of the fiscal year, including an IPO for Ticketplus.

    Public companies in US
    <4,000down from ~8,000 in 2000
    Current

    Reflects the decline in the number of public companies in the US market over time.

    Microcap market capitalization share
    2%
    Current

    The share of total equity market value represented by companies with market caps under $200 million.

    AI funding concentration
    70%
    Current

    Percentage of overall funding directed towards AI-focused companies.

    Pulse Biosciences IPO price
    $4
    IPO

    The initial public offering price for Pulse Biosciences, a company launched by MDB.

    Pulse Biosciences peak stock price
    $40
    Historical

    Historical peak stock price for Pulse Biosciences, demonstrating volatility and potential upside.

    Pulse Biosciences recent high stock price
    $46
    Recent

    Recent new high stock price for Pulse Biosciences, highlighting its rebound.

    Provention Bio acquisition value
    $2.9B5x prior trading price
    Acquisition

    The acquisition price for Provention Bio, another company launched by MDB, demonstrating significant return.

    eXoZymes shares owned by MDB
    4.1M
    Current

    MDB's ownership stake in eXoZymes.

    Paulex Bio shares owned by MDB
    7.1M
    Current

    MDB's ownership stake in Paulex Bio.

    Public Ventures ownership
    100%
    Current

    MDB's full ownership of the Public Ventures platform.

    PatentVest ownership
    100%
    Current

    MDB's full ownership of the PatentVest platform.

    Comparable ABS law firm valuation
    $750Mpre-money valuation
    Recent

    Valuation of a recently funded AI-enabled ABS law firm in the immigration space, used as a comparable for PatentVest.

    eXoZymes annual OpEx
    $10M
    Annual

    eXoZymes' annual operating expenses, highlighting its capital efficiency.

    Number of discrete clearing platforms
    100
    Current

    The total number of discrete clearing platforms currently available in the market.

    IPOs launched by MDB
    17
    Over 29 years

    Historical number of IPOs launched by MDB, with all having traded at a significant premium post-IPO at some point.

    Deals & partnerships

    3
    Several partiesDiscussions for partnership or sale of Public Ventures clearing platform

    MDB is in discussions with 4-5 parties and has received letters of intent for a partnership or sale of its Public Ventures clearing platform to enable a broader platform and allow MDB to focus on launching new ideas.

    Contract manufacturersStrategic partnership for scaled manufacturing of small molecules

    eXoZymes is very close to executing a relationship with one or more contract manufacturers to scale the production of its small molecules, addressing a key challenge in synthetic biology.

    Foreign governments, other ECG makers, ambulatory monitoring companies, wearables companiesPartnership deals to integrate HeartBeam's ECG technology

    HeartBeam is pursuing partnership deals to integrate its transformative ECG technology into existing product and service categories, rather than launching the product independently, which is more capital efficient.

    Risks & headwinds

    5
    Challenging microcap market environmentCurrent

    Sub-$200 million market cap area comprises only 2% of total equity market value, down from ~8,000 public companies to <4,000 today.

    Mitigation: Focusing on monetizing existing core assets, operating lean, and waiting for market rotation; maintaining conviction in long-term potential.

    Stock price underperformanceCurrent

    MDB's stock is down from its IPO price.

    Mitigation: Belief in the underlying value of developed assets and the ability to create new value; consistent communication with shareholders.

    Difficulty in launching new companiesCurrent market conditions

    Not able to launch at the previously targeted rate of three to five new companies a year.

    Mitigation: Shifting focus to monetizing and leveraging existing portfolio companies; adopting a 'rifle-shot approach' until the environment improves.

    Lumpiness of financial resultsOngoing

    Results will be lumpy due to fewer new transactions compared to prior targets.

    Mitigation: Operating lean with a target of $5M-$6M in annual operational expenses to ensure sustainability without dilution; focusing on underlying value.

    Execution risk for portfolio companiesOngoing

    No specific quantification, but acknowledged that 'there are no sure things in life' and 'we still have to execute on all these'.

    Mitigation: MDB provides hands-on support, leveraging its experience and relationships to help portfolio companies reach value inflection points and secure commercial deals.

    What to watch in Q3 FY26

    5

    Public Ventures partnership/sale

    next quarter
    CurrentDiscussions with 4-5 parties, letters of intent received
    TargetDeal wrapped up

    Why it matters

    Completion of this deal will allow MDB to focus on core strengths and potentially reduce operational expenses.

    I do think that we want to try and get something wrapped up in the next quarter.

    Q&A highlights

    4

    What is MDB doing to help portfolio companies like eXoZymes and Paulex Bio recognize their full value and gain recognition, especially since MDB controls PatentVest and Public Ventures but not the others?

    MDB leverages its three decades of experience to help portfolio companies with management, commercialization, and market translation. For eXoZymes, MDB is actively assisting in securing commercial relationships. For Paulex Bio, MDB provides guidance on going public and connecting with investors to overcome skepticism. The slow market allows MDB to dedicate more time to these efforts.

    “We're redoubling our efforts. And when the markets are slow, it gives us more time as a small organization to help these companies.”

    asked by George Brandon · answered by Christopher Marlett

    3 min read6 chapters

    Detailed Narrative

    01

    Microcap Market Backdrop and MDB's Strategy

    The microcap market (sub-$200 million market cap) is currently languishing, comprising only 2% of total equity market value despite representing 25% of public companies. This environment has led MDB to shift its strategy from aggressive new company launches to focusing on monetizing its existing four core assets. Management believes that while the large-cap market is at new highs, a rotation of capital could eventually benefit the undervalued microcap segment, as it's 'hard to fall off the floor'.

    02

    Public Ventures: Seeking Partnership or Sale

    MDB's Public Ventures clearing platform, built over five years on a lean budget with a Latin American back office, is not being fully leveraged in the current market. MDB is in discussions with 4-5 parties for a partnership or sale of the platform, having received letters of intent. The goal is to complete a deal in the next quarter, allowing MDB to focus on its core strength of launching big ideas with a broader partner. There are approximately 100 discrete clearing platforms, making MDB's platform a unique opportunity.

    03

    PatentVest: AI-Enabled Law Firm of the Future

    PatentVest has pivoted its strategy to become an AI-enabled ABS (Alternative Business Structure) law firm, specifically for patent law. This pivot was driven by the rapid commoditization of AI platforms and the realization that PatentVest's existing platform is well-positioned to integrate AI for patent workflow efficiency. A similar AI-enabled ABS law firm in the immigration space recently secured $750 million pre-money valuation. MDB plans to spin out PatentVest as an independent entity, funded by independent investors, to capitalize on this innovative model.

    04

    eXoZymes: Scaling Manufacturing and Commercialization

    eXoZymes is undergoing a significant transformation, focusing on overcoming the synthetic biology challenge of scaling manufacturing. The company is close to executing a strategic partnership with a contract manufacturer to produce its small molecules, which would enable real commercial discussions. MDB is actively assisting eXoZymes in securing commercial relationships, believing that successful commercial deals will drive multi-billion dollar valuation, similar to other synthetic biology companies that initially saw valuation expansion but failed to deliver on manufacturing.

    05

    Paulex Bio: Diabetes Drug IPO and Clinical Milestones

    Paulex Bio is nearing its IPO, with plans to file its registration statement in Q4 FY26. Its drug aims to enable beta cell expansion, potentially transforming diabetes treatment for both Type 1 and Type 2 patients. Preclinical models show synergy with GLP-1 platforms. Key clinical trial data demonstrating safety and beta cell production is expected in early 2027. MDB sees huge valuation inflection potential, comparing it to the success of Provention, which MDB also helped launch.

    06

    Capital Discipline and Shareholder Value

    MDB is committed to protecting shareholders from dilution and distributing value from its assets. The company aims to operate on a lean platform, targeting $5 million to $6 million in annual operational expenses, by spinning out PatentVest and partnering its clearing operations. This capital discipline allows MDB to hold its equity positions in portfolio companies longer, waiting for key value inflection points. While results may be lumpy due to the challenging market, the underlying value and leverage embedded in MDB shares are emphasized.

    AI-generated summary of the company’s earnings call. Not investment advice.