Last week the most important Q3 report in my portfolio was $BEW- Bewhere. This week the most important is #Hydreight -- $NURS.v / $HYDTF A couple weeks ago we had the management team on our subscriber call—and to me this was one of most bullish calls we have ever had. This team is convincing me more and more they have something powerful and unique here, but this is NOT an easy story to understand. Q2 report 3 months back showed first +ve AEBITDA. They have not raised any money since going public 18 months ago. No debt. After hearing CEO Shane Madden talk I think there’s high potential for Hydreight to generate $30 - $40 million in revenue in 2025, and run an EBITDA margin in the 15-20% range. Very tight share structure. There is only 46 million fully diluted shares out here--which means the larger revenue and EBITDA numbers translate into some potentially large EPS. #Hydreight is not a simple story to explain, but here goes: The moat here is the 50 state compliance with 3 different boards in each state—the medical board, pharmacy board and nurses board. To invest here in a big way, you have to believe this is unique in the US. Management says it is. #Hydreight’s platform is compliant in all 50 states, with all 3 boards. (This is an all-USA story except for the public listing.) So they can take a call from a patient, connect them with a doctor, prescribe a compound pharmacy drug (where they actually have to make it, just not send out something that is pre-boxed, like aspirin), and arrange to have a nurse administer that drug to the patient in their home, or in another location. They spent the first year building up their nurse platform, which has topped out at roughly 3000 nurses across the US. This number has not grown for a year. These nurses would be definition have to be entrepreneurial, willing to find clients to administer things like Vitamin IV, GLP-1 injections (like Ozempic) or TRT Testosterone. It allows them to monetize their credentials in other ways besides working in a hospital or clinic. The nurses pay both a flat fee to be on the service and give Hydreight a small cut of their revenue. But the much larger revenue will come from what I call the Medical Spa market, where this large group can white-label, or put themselves on the Hydreight platform and solution, which again is medically and legally compliant in all 50 states. (This story is really about being COMPLIANT with all these boards in every state) These spas want to maximize revenue out of every customer—as every business does. To get their customers treated with all kinds of what I might call “soft” treatments—weight loss, testosterone, hair etc—they can piggyback on Hydreight. They can open up stores in all 50 states and use Hydreight’s compliance to sell/administer a certain range of services. Hydreight says they have signed contracts with franchises which total 700 locations already, and 170 of them are open. Approximately 15-20 new locations from that backlog are coming on per month. For any prescription that gets filled from this channel, Hydreight gets 20%. This is an off-the-top fee. The services themselves – which can run $100 - $250 – are roughly 30% to Hydreight. And for things like GLP-1 and testosterone treatments, a patient usually goes for 6-9 months or more. So Hydreight can be making $50-$75 per client from the MedSpa channel for 7 months; lifetime customer value $400 or so. For one service. It might be smarter to think of their revenue as a membership model; there’s recurring revenue here. The point here is—it doesn’t take a lot of clients from each spa/bricks and mortar location to create a big revenue stream for Hydreight. As they own the platform, they own a lot of negotiating power with their licensees. Then they have the 3rdstep—which is similar to the MedSpa market except it’s virtual. This 3rd business is called VSDH One, and management thinks this is The Big Revenue Driver in 2025. You can be a high powered digital advertiser to sell GLP-1 and get the Hydreight platform to find you a doctor and a pharmacy and a nurse to get you a prescription. It costs $200 per state per license per month, or $5000 per month for all 50 states. Each business needs one license per state—even for multiple locations. And there is 20-25% margin on any medications being sold on the platform. Right now they have 300 licenses sold. Their goal is to be at 1000 by December 2025. They think that between the MedSpa market and VSDH One, they can run 1.3 million services/orders in 2025 across their entire platform. They think they can do 20,000 orders by the end of Q1. Each order is $100-$150 each, and margin is 30%. If they meet projections, that’s 1.3 M x $125 (mid range) x 30% margin = US$48,750,000 revenue, or CAD$65.8 million. Says CEO Madden: “It doesn't take a lot of new customers each month per license to get to these numbers, especially when it's a recurring medication in almost every case.” I'm old enough to be a natural skeptic. This growth story is still unproven, but mgmt has grown the business and brought it to near breakeven in a short time with no additional capital after the IPO. It’s important to note here that these doctors still have to follow all their state rules; they don’t get to prescribe whatever they want whenever. Getting their Chief Medical Officer, Dr. Polombo, on the next call would likely help investors understand how this all fits together legally. There is now an independent doctor network of 300 associated with Hydreight. Understanding how they scale this will be important. It’s also important to note that a lot of Hydreight clients are not startups, they’re existing business with many thousands of clients that can now get many new services from their existing provider now that they’re on the Hydreight platform. So there’s a large patient file / database that one would have to consider low-hanging fruit, from a crass monetization point of view. I hope this helps clarify the opportunity. The company will be reporting before the end of the month. The float here is barely 11 million shares as private equity sponsor owns 65% of the stock. I own 265,000 shares at 44 cents ACB. I don't know if they're doing a call or will just issue the quarterly, likely Tues or Wed this week.