How is MDB communicating its story and message to shareholders, given the leverage embedded in MDB shares?

MDB is engaging in podcasts and attending conferences, but acknowledges the challenge of reaching new investors when the asset class is out of favor. Management emphasizes consistency in informing people and spreading the message, and is open to shareholder suggestions for better outreach. “But when your asset class is out of favor, you got to, it's challenging. But like I said, nothing stays constant, everything is always changing.”

What is MDB's view on HeartBeam's technology and current company strategy, given its small share position compared to other core assets?

HeartBeam's technology is transformative, offering superior ECG signal reading. Management believes the company's new strategy of pursuing partnership deals (with foreign governments, other ECG makers, wearables companies) is the right approach, as it is more capital efficient and less dilutive than trying to launch the product independently. This strategy extends the runway to commercialization. “I think that their strategy now is the right strategy. And now they need to, whether it's work with foreign governments or work with other ECG makers, other ambulatory monitoring companies, whether it be wearables or whoever, this device needs to be in every airport, and every airplane in every public office and every sports team.”

Can you characterize the challenges eXoZymes faced in its recent financing, where it raised $6 million instead of a larger target, and how it plans to manage future funding?

eXoZymes aims to manage dilution and is capital efficient with OpEx around $10 million annually. Future funding could involve strategic investments or spin-outs (e.g., NCT as a separate platform) that are non-dilutive. Management expects that once commercial deals materialize, future offerings will become less dilutive and easier to execute as the company transitions from a technology platform to a commercial entity. “I think once you get to a value inflection point by these commercial deals happening, these offerings become less dilutive. More importantly, it becomes easy to do a financing once people clearly see that this thing is going to be commercial and it's no longer just a technology platform.”

MDBH

MDB Capital Holdings (MDBH) Q2 FY26 earnings call: guidance and Q&A

Q: 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.”

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 13, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Public Ventures partnership/sale completion	Wrapped up in the next quarter medium materiality	Q3 · FY26	High
Paulex Bio IPO	Getting close to the IPO in the fourth quarter of this year high materiality	Q4 · FY26	High
Paulex Bio clinical trial data readout	Data will start to play out in the early part of 2027 high materiality	Early CY27	High
MDB total operational expenses	$6 million a year medium materiality	Annual	High
Number of transactions in H2 FY26	Two transactions low materiality	H2 FY26	Medium
Significant fee transaction	One fee transaction that we're working on that could be quite significant low materiality	H2 FY26	Medium

Deals & partnerships

Several parties Discussions 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 manufacturers Strategic 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 companies Partnership 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

Challenging microcap market environment Current

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 underperformance Current

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 companies Current 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 results Ongoing

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 companies Ongoing

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

Public Ventures partnership/sale

next quarter

Current Discussions with 4-5 parties, letters of intent received

Target Deal 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.

Find out whether MDBH delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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'.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.