Jim Huether, CEO of recovery technology company Hyperice, joins Forbes senior writer Jabari Young at the Nasdaq MarketSite to preview the firm’s innovative pre-recovery electronic sneaker with apparel giant Nike. The devices, called the “Nike x Hyperice” is capable of cooling, heating and massaging feet during pre-workouts. Huether also updates Hyperice’s previously reported $850 million valuation and its relationship with NBA star Ja Morant.
0:00 Introduction
2:21 Jim Huether On Tesla And Technologies Latest Innovations
5:59 Nike's New 'Hypersync' Feature For Their Shoes
12:23 Jim Huether's Journey As Hyperice's CEO
20:32 How Technology And Apparel Have Evolved
30:35 Huether Touches On Marketing Campaign For Nike Collab
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0:00 Introduction
2:21 Jim Huether On Tesla And Technologies Latest Innovations
5:59 Nike's New 'Hypersync' Feature For Their Shoes
12:23 Jim Huether's Journey As Hyperice's CEO
20:32 How Technology And Apparel Have Evolved
30:35 Huether Touches On Marketing Campaign For Nike Collab
Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1
Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:
https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript
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Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.
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SportsTranscript
00:00A combination of Tesla, Apple, Dyson, and a little bit of Nike?
00:04If it sounds weird, don't worry, we'll break it all down
00:06with the CEO of recovery technology company, Hypris, right here at the NASDAQ.
00:13Hello everyone, this is Jabari Young here at the NASDAQ, and I am joined by Jim Heather.
00:18He is the CEO of recovery technology company, Hypris.
00:22And Hypris, you've probably seen it everywhere.
00:24Target, Best Buy, Walmart, all over the NFL sidelines.
00:27But Hypris is a technology company, once valued over $800 million.
00:30We'll get into that a little bit later.
00:31And it is the maker of the precision massage gun, right?
00:35Massage gun, let me get that out of here.
00:37Device, HyperVault.
00:39I use this technology all the time, as well as the Hyper, the Norma Tech Goals.
00:43Jim, thank you so much for the time, man.
00:44Welcome back to the NASDAQ.
00:46Thank you, Jabari.
00:47Great to be here.
00:47Absolutely, man.
00:48Listen, we're sitting in a historical time, right?
00:50I don't know where you was when Vice President Biden decided to step down.
00:54But I was talking to my daughter, I said, you know,
00:55this is interesting times that we're in.
00:57Let me ask you, man, when you heard the news, what was your reaction to it all?
01:01I was kind of expecting it.
01:03I followed on Twitter, on X.
01:05I saw kind of the news and what was coming.
01:07So I did expect that that was going to happen on Sunday.
01:10I was surprised.
01:10I had family members in town, and there was a little bit of divisiveness in the house,
01:14just on different sides of things.
01:15So I wasn't too surprised.
01:18But still, I think everything that's happened over the past couple weeks has been just,
01:22given us a really good high level look on what we really need this to be
01:27and how we need to focus on unity.
01:29Yeah, absolutely, man.
01:29I mean, really, I got off of a run, a trail run or hike, I should say.
01:34And look at my phone because it was in my car.
01:36And the first thing I see blowing up, it all happens.
01:38But I tell people it's a very historic time.
01:401960 was the last time something like this happened.
01:42It is unbelievable.
01:43Yeah.
01:44Well, listen, we're at the NASDAQ, right?
01:45So you got to give me a stock for those young investors.
01:48What is Jim?
01:49What are you looking at?
01:49What has been good to you?
01:51What would you recommend that an investor,
01:53maybe a young investor, what would they should be looking at?
01:56I'm still big on Tesla.
01:57Tesla.
01:58I'm big on Tesla.
01:59I'm a huge Tesla fan, personally, a product guy, obviously a technology person.
02:03I've been in on Tesla for 10 years.
02:05I think what they're doing in robotics is going to be really outstanding and futuristic.
02:10And I think every time you doubt Tesla, they come back with something big.
02:14There's a strategic move.
02:15They outpace forecasts, whatever it may be.
02:17So I'm big on the vision.
02:18I love what they're doing with technology, and I would never bet against them.
02:21I'm scared, though, man.
02:22Every time I think about buying a Tesla, I'm like,
02:23what if Elon don't like something I tweet?
02:25And is he going to turn my car off?
02:28Hey, but listen, man, you guys are working on something special, too.
02:30And before we get into that, happy belated anniversary.
02:3310 years at Hypris as CEO, man.
02:36You joined our company in 2014, February, if I believe, right?
02:39Yep, correct.
02:39And now 10 years.
02:40So I definitely want to get into what it takes to do that.
02:43But let's jump into some news right fast, man, because Hypris,
02:47you guys announced the collaboration with Nike to build this very thing.
02:52Let's bring this thing up in here.
02:53Look at this beautiful sneaker.
02:55It's like the electronic sneaker, right?
02:57It's all over the internet.
02:58I see the buttons, man.
02:59You see the little device where you got to charge it in.
03:01Listen, man, this is a sneaker that has been in development for two years.
03:05And now you collaborate with Nike to help athletes pre-recovery, right?
03:09And so while they're before they start to get on the court to recover and go
03:12through those drills, this is helping them start.
03:14This is helping their body get used to it or get ready to amp up for the recovery.
03:18Take me inside of this sneaker.
03:20How did you do it?
03:21Why Nike?
03:22Yeah, so this is very, very innovative.
03:24And it's really years and years and a culmination of a lot of hard work from product development
03:29teams.
03:29But also, we've had a good relationship with Nike for a long time.
03:32I know you know the history of the company and the founding.
03:36Founder Anthony Katz had a good relationship with Kobe Bryant.
03:39The name Hyperis was actually inspired by Nike's Hyperdunk Nike shoe, right?
03:44So we always had this authentic connection with Nike.
03:46And both companies have always been really focused on the athlete.
03:51That's what makes when you think about Nike and the innovation and the progress they've
03:55made throughout the years, you think about the athlete first, right?
03:58And it's very similar with Hyperis on the recovery side.
04:00So Nike was the company in shoes, apparel.
04:04They're obviously the most creative, the most innovative, in our opinion.
04:07And Hyperis being that in recovery and innovation and product development,
04:12it just made a lot of sense to come together on a collaborative product.
04:15So this is extremely innovative.
04:17This product is called the Nike and Hyperis boot.
04:20And it has a combination of dynamic air compression.
04:24Some of the technology from the Normatec devices, which obviously you've tried.
04:27I love them.
04:28Yeah, they're great.
04:29And the Venom using Hyperheat technology.
04:32So that combination of air compression and heat allows for kind of an exponential impact
04:38with heat and compression.
04:40We've given this to over 250 athletes.
04:43The response has been incredible.
04:44Athletes are saying it makes their feet feel light and free.
04:48And also has a lot of great work on the ankle.
04:51So it's both ankle and foot.
04:52OK.
04:53Recovery, added mobility, range of motion increases.
04:57And obviously, the heat helps get deeper into the tissue.
05:00Yeah.
05:00Now, I remember when you were telling me on the Normatec Go product, right?
05:03And you were saying, well, listen, the cab was one of the most important things in your
05:07body because it pumps blood up, right?
05:09And ever since you told me that, I've been like, man, you got to use these.
05:11This is going to help prevent blood clots.
05:13What is this sneaker?
05:14What is this going to help health-wise?
05:16Because again, you're saying the heat and the compression all in your foot.
05:19Like, how does that help an individual human body?
05:22Yeah, really.
05:22So the goal is to create a healthy body, right?
05:24And that's one of the reasons we launched this shoe for the athlete first, right?
05:28It's performance.
05:29It's longevity.
05:30It's recovery.
05:31And it's warm up.
05:32But I think the combinations of enhancing the ability for the body to enhance circulation
05:38and also to heat the soft tissue and make it more pliable and mobile
05:42has a very, very impact, a very, very big impact on athletes' longevity and performance.
05:47Yeah.
05:47Now, what are these buttons on the side?
05:48Because I'm looking, I see the power button, right?
05:50And I see this little button that goes, like, it looks like air coming out there.
05:53And then there's the heat one.
05:54And it looks like a button that you injected.
05:56Like, what are the little buttons on the side here to turn this thing around?
05:59Yeah.
05:59So there's three levels of heat and compression.
06:03Okay.
06:04So, and you can use all different permutations of that.
06:06It's also app controlled.
06:07Yeah.
06:08So this has a technology called HyperSync.
06:10HyperSync.
06:11As well.
06:11Yeah.
06:12Where you put both boots on and at the same time, you can basically mimic
06:16whatever heat and compression scenario you'd like to do.
06:20Okay.
06:20Right.
06:21So both of the HyperSync technology is patented as well.
06:24But it really makes the experience so that you're getting kind of an integral,
06:28even feedback loop with both the heat and compression.
06:31Right.
06:31So that's a big benefit.
06:34I think there's a dual bladder system that integrates into the technology with the heat.
06:39So there's multiple parts that are kind of, think about squeezing on the foot
06:43and also up into the ankle.
06:44Right.
06:45And then adding heat, layers of heat into the tissue.
06:47Wow.
06:47So both of those benefits are tremendous.
06:49And again, the athlete feedback is just off the charts.
06:52Yeah.
06:52Man, talk about technology.
06:53These look like the real Marty McFly's, man.
06:55I mean, this is amazing, man.
06:57Listen, you're going to have to tell me though, right?
06:59I don't want to drop this thing because I don't want Nike to get on me.
07:01But you want to tell me, like, well, you know, I'm looking online
07:04and it's when I first started to see the reaction.
07:06People are like, all right, what's the price point?
07:08Like, how much is this going to cost?
07:09Because this thing looks very expensive.
07:11And Normatec and the products that HyperSync make, y'all, it's not cheap, right?
07:14But at the same time, I would imagine that the price point for this,
07:17this is not going to be your average $100 sneaker.
07:19Yeah.
07:20So we haven't set, we haven't came to that part yet.
07:22We haven't got into like the exact launch date and details and price.
07:25We're not there quite yet.
07:27Right now, we're getting the athlete feedback and the testing.
07:30But I will say the first person that kind of announced the shoe to the world was LeBron.
07:34Yeah.
07:35He posted on social, as you may have seen on his Instagram story,
07:37and it just went completely viral.
07:39Yeah.
07:39All the sneaker head culture, everybody who's into technology,
07:43obviously all the Nike and Hyper-Ice fans were coming saying like,
07:45we got to get that shoe, we got to get that shoe.
07:47So I think already just with the limited amount of Hyper-Ice Nike boots
07:53that are out there in the world, the demand has been incredible.
07:55Yeah.
07:55Are you guys going to only make a few of them?
07:57I know, you know, I'm listening to recent podcasts.
07:59Listen, Hyper-Ice, you guys want to help it all.
08:02You want to help everyone, the firefighter, the person cleaning the streets behind us,
08:06like everybody, you want to help them all.
08:07But I would imagine that these type of devices that you can't make too many of them
08:11because of all of the cost of just creating these things are probably out of control.
08:16Yeah, I do think that this is the beginning of a very big category.
08:20Right.
08:20I think that this, you know, the Hyper-Boot,
08:23let's call it the Nike and Hyper-Ice boot category could be very, very large.
08:28Yeah.
08:28Right.
08:28Because we've seen throughout the history of Hyper-Ice,
08:31the launch of the massage gun was a Hyper-Bolt.
08:34We did it again, obviously, with acquiring Normatech and the air compression.
08:37That was something that didn't really exist, right, until we democratized it as a company.
08:42I think this has an even bigger potential because this is something that everybody values.
08:49Your foot, as an athlete, is an integral part of everything you do.
08:53Yeah.
08:53Right.
08:54And you've seen all the injuries around ankles, Achilles, right.
08:57There's so many injuries, too, that we think that this can help with.
09:00Yeah.
09:01So long term and big picture, I think this is just the very beginning
09:06of something that gets into a very big space about wearable technology in shoes and also apparel.
09:12Yeah.
09:13If an investor was watching this interview, we hope that you are,
09:16what would you tell them about how this is going to help Nike, right?
09:19Because if you look at the year that they've had and covering people,
09:22talk to people covering the industry as well as pundits, they will tell you that Nike has
09:26been struggling a little bit in the innovation department, right, as they try to right some
09:29wrongs they probably have done.
09:30Still a dominant country, right, talking about over $100 billion company.
09:33It's market cap-wise, so there ain't no slouch.
09:35But I'm looking at the younger generation.
09:37They're starting to wear the new balances and even reboxing them back in.
09:40But Nike's still king.
09:42But how is this going to help them long term from the innovation department?
09:45So in my opinion, Nike's a 60-year-old company, right?
09:49They've been around for 60 years.
09:50And this is one of the world's most iconic companies, right?
09:52You'd never want to bet against Nike.
09:55When you look at any innovative company over the years, there's going to be little
09:59ups and downs and mini blips, so to speak.
10:02But when you're the big gorilla, right, when you're the behemoth,
10:05there's always going to be competitors chasing you.
10:07And they've set the benchmark of innovation for years and years and will continue to do so.
10:12So I think this, again, just speaks to their focus on innovation.
10:16And for them to go outside the box and say, we're partnering with Hyprice
10:19because it's a unique, innovative company that's integral to the athlete,
10:25which is the focus of both brands, and we're going to go big
10:28and go outside our norm to create something this innovative and this differentiated,
10:33that speaks volumes.
10:34Again, I think that speaks to the mindset that Nike's thinking about long term.
10:37Yeah, absolutely.
10:38Well, listen, take me into Hyprice, right?
10:40I mean, last time, man, you kind of really chopped it up.
10:42It was in August in 2022 there.
10:44And I know you were just getting the partnership with John Moran.
10:47You started John Moran kind of rolling.
10:49And the products that you have on the market already,
10:51talking about the Hypervolt, right?
10:52We talked about the Normatec Gold devices that you put around your calves
10:56to help blood circulation, right?
10:58You got partnerships with the NBA, NFL.
11:01The company in 2022 was valued around $850 million.
11:04That was up from $700 million in 2021.
11:06Any update on that figure there?
11:07I know some companies have went up and down because of high inflation.
11:10We haven't done a round since that last round.
11:12Series B was the last round.
11:14I think we will do a round next year.
11:16So we'll get a benchmark at that point.
11:19Obviously, there's macro environment elements that have changed valuations up and down.
11:24But I can say we're having a really good year this year.
11:26So 2024 has been really strong.
11:28The consumer for us is back in a big way.
11:31And I think our innovation pipeline, we've talked about this a lot over the years,
11:35is stronger than it's ever been.
11:37I've been there since 2014 at Hyperice.
11:40I love it.
11:40I love what I do.
11:41I'm very passionate about it.
11:42Our innovation pipeline has never been this strong.
11:45So we're working on products in 2025, 2026, and even 2027
11:49that I think can be transformative.
11:51Yeah.
11:51Profitable?
11:52Is it profitable, the company, yet?
11:54Yeah.
11:56Our EBITDA is going to be up multiples from last year.
11:58Nice.
11:58Gross margin up five or six points.
12:01Double-digit growth this year.
12:03So it's going to be a good year.
12:05But really setting up for a really big year in 2025.
12:08It's obviously the innovations with Nike and many more innovations to come.
12:12How about the revenue, right?
12:13I remember we talked in 2019, we surpassed $100 million,
12:16according to PitchBook.
12:17Are we surpassed that now?
12:18I thought I saw $139 million somewhere, revenue-wise.
12:21Are you around that figure?
12:22Yeah, we're above those numbers.
12:23Above $139 million?
12:24Okay.
12:25What's it like to be CEO of a company like Hyperice Recovery Technology?
12:29It's awesome.
12:31It's awesome.
12:31Look, my passion has always been...
12:33I grew up playing sports.
12:35When I grew up in Silicon Valley,
12:37my dad was actually one of the early engineers at Atari,
12:40and then was an executive at Sega.
12:42Wow.
12:42So I grew up around tech, and I love sports.
12:45And then when I did business school,
12:47I did an MBA at Loyola Marymount University
12:50and really fell in love with case studies.
12:52What makes companies tick?
12:53How do you differentiate them?
12:55What separates them?
12:56What's it like to be a good leader?
12:57How do you...
12:58What's the right market fit?
12:59How do you continue to push innovation?
13:01What separates you, right?
13:02That inspired me.
13:03So it's a combination of business, technology, and sport.
13:07That's me.
13:08Yeah.
13:08And as CEO, you get to do that every day.
13:11And I think what's most exciting about this
13:12is it's a brand new category.
13:14Like we're doing things that haven't been done before.
13:17And it's very challenging
13:19because as you get bigger
13:20and you have people like LeBron posting about the shoe,
13:24I don't want to say there's a target on your back,
13:26but there kind of is, right?
13:27Everybody's like, whoa, what's happening with this market?
13:29Like what is this recovery and wellness space?
13:31I want to be part of that.
13:33And because of that, you got to continue to move.
13:35You're always moving and shaking.
13:37You're always trying to think about the next big thing.
13:39And you've got to think not only short-term,
13:41but you got to really set yourself up in the long-term.
13:44Yeah.
13:44Right?
13:44And if you don't do that, that's a lot of times,
13:46I think failures of CEOs
13:48is you get so caught up in the moment
13:49that you forget about two to three years out.
13:52In this role, in a new category,
13:54you always got to be thinking way ahead.
13:55Yeah.
13:56Well, you said you grew up in Silicon Valley, right?
13:57Now I was just...
13:59First of all, thank your dad.
14:00Sega helped me through many times
14:01when I was grounded before, okay?
14:03It's playing Sonic and all that.
14:04Thank your dad for me.
14:05I appreciate it.
14:06But what was it like growing up in Silicon Valley, man?
14:07I would imagine that as that place continued
14:09to just get bigger and bigger,
14:11that it was like a fortress.
14:12Yeah, it was great.
14:14I mean, it was interesting.
14:16I went to Saratoga High School
14:17and actually there's two head coaches' daughters,
14:21both Pete Carroll and Mike Shanahan.
14:23Their daughters were in my grade.
14:24Okay.
14:24In class.
14:25So it was kind of, again...
14:26They were in your grade?
14:27They were in my grade, yeah.
14:27Did you ask to date any of them?
14:30No, I didn't.
14:31Okay.
14:31One of them I still talk to from time to time
14:35because she also works in sports.
14:36Okay.
14:37But yeah, there's a really close connection
14:41with technology and sports in Silicon Valley.
14:43Everybody was about the 49ers and the Giants, right?
14:45But then there's this emergence
14:46of all sorts of technology happening there.
14:49The boom of the video game culture, right?
14:51And so because of that,
14:53we were kind of immersed in this fast-paced environment,
14:57even in high school.
14:58And so seeing that not only with my father in the space,
15:01but also just people around me
15:03and their parents and families,
15:04it kind of got you into this fast-paced culture
15:07of technology and sport.
15:09So I feel like you picked up on some of that
15:11at an early age in Silicon Valley
15:13where you wouldn't have in other areas.
15:15Yeah.
15:15What did you want to do?
15:16What did you learn from your parents?
15:19I learned a lot.
15:20I mean, I learned the importance of balance, for sure.
15:25Balance.
15:26But I think one of the things that I learned from my father
15:29was innovation.
15:31Like you constantly had to be moving and moving and moving.
15:35You could never be status quo.
15:36Yeah.
15:37Because in the video game space, Atari and Sega, et cetera,
15:41there were a lot of competitors that came out quickly too.
15:43Atari kind of set the benchmark.
15:45They were the first ever, right?
15:46And still an iconic company.
15:48He was actually on the cover of the video game.
15:50Yeah.
15:50Pretty funny.
15:50Wow.
15:51But it was always like, what's the next thing?
15:54How do we get in?
15:54I remember they were testing virtual reality like 15 years
15:58before virtual reality ever came out at Sega.
16:00And I used to see the EEPROM boards around it
16:02and get to test those products with them
16:04and give my feedback as a kid.
16:05Yeah.
16:05Right?
16:06So it's pretty cool.
16:06Wow.
16:07Wow.
16:07I do the same thing with your device, by the way,
16:08with my daughter almost.
16:09Some of it she can't use because it's too...
16:11But I do the same thing just to kind of test them
16:13to see what they think because it's a generation coming up.
16:15Yeah.
16:16And I want to start to get them used to the recovery technology
16:18space.
16:18But so you go on and you get your MBA in finance and marketing
16:22after college.
16:22What'd you do?
16:24So right after college, I had my MBA.
16:26I said, I need to get...
16:27I did a dual emphasis in finance and marketing
16:29and said, I need to get some financial background
16:31because whatever...
16:31If I want to be in a real leadership position,
16:33I'm going to have to know finance really well.
16:35So I went to Smith Barney City Group,
16:36did a couple of years there
16:38and then actually had worked at AEG.
16:42Entertainment group.
16:43Right?
16:43Entertainment group for a little bit while I was in grad school.
16:46And I was actually selling some suites for like the Clippers
16:49and boxing and Lakers and things like that.
16:51Just getting in there while I was in grad school.
16:53And so a couple of years in,
16:56one of my former clients came to me and said,
16:58hey, he was actually a neuropsychologist
17:00and said, I want to start this business
17:02in the concussion space, sports concussion.
17:04Yeah.
17:05It's an emerging space.
17:07At the time, Warren Moon and Lee Steinberg were...
17:09And Troy Aikman and Steve Young were kind of evangelists
17:12for the concussion movement, right?
17:14And he said, I want to start this business.
17:16You know business and you obviously have a background here.
17:18Can you come over and join me?
17:20And let's build this company around sports concussion.
17:23And so at the time I had this like really nice office,
17:28corner office, like gold-plated office.
17:31But I had the entrepreneurial,
17:33like I just had that itch of entrepreneurialism.
17:36So left that company, joined this startup
17:40around sports concussion.
17:41We built that company and then did a second company
17:43that I helped build around consumer products
17:45also in sports concussion after that.
17:47And that was about seven, eight years prior to Hyper-Ice.
17:50Yeah. Now before Anthony convinces you to come over, right?
17:53How do you, if you had to give that advice
17:55about climbing that executive ladder,
17:57because it sounds like you went through a lot of,
17:58you know, moving and shaking before you found your,
18:01you know, I guess information to become a CEO, right?
18:03Yeah, yeah.
18:04What would you advise those climbing executive ladders?
18:06Like what were you learning around that time
18:08that's still helping you today?
18:09Yeah, I think it's still things
18:10that we preach inside the company now, right?
18:13Working collaboratively.
18:14You've got to be a good team leader.
18:16Yeah.
18:16No matter what team you're on, if you're a manager
18:18and you're managing a team of five,
18:19if you're a director, a VP, a CEO,
18:22you got to be consistent.
18:23Yeah.
18:23You got to be a good leader.
18:25Having good energy, huge, especially in a business
18:28where people get really passionate about it.
18:30Sports, people love it.
18:31Technology combined with sports, people love it even more, right?
18:34So if you're not bringing the energy, who else is, right?
18:37So always got to bring the energy
18:38and then an aptitude for learning.
18:40That is key.
18:42Never go in and think, hey, look, I know everything.
18:44I'm the guy, I got my MBA or whatever it is.
18:46No, you're just at the very beginning.
18:48I'm at the very beginning, right?
18:50Of where I want to be.
18:51So always understand that I want to learn.
18:53I want to sit there for the extra 30 minutes
18:55and learn from somebody in a different space.
18:57I want to have the extra conversation for an hour,
18:59take the extra meeting
19:00and understand somebody else's business better, right?
19:03That's all been crucial kind of in my development.
19:06And hopefully that continues to move
19:09throughout the organization, HypeRice.
19:11Most definitely.
19:12Listen now, 2014 again,
19:13that's when Anthony Cass, the founder of HypeRice,
19:15they come over and they...
19:16And one of the first things that you guys do
19:19is you go to Kickstarter, right?
19:20We talk about how you built this company
19:22because entrepreneurs looking as they may say,
19:23I want you to start a recovery tech
19:26and I have this device idea.
19:27But you guys go to Kickstarter
19:28to try to raise $100,000 to help expand the Viper, right?
19:32That roller phone device.
19:34And you came away raising over $270,000.
19:37Why Kickstarter?
19:38Because I remember in an interview,
19:39you saying, hey, listen,
19:40that was more marketing for us to get more known.
19:42And it sounds like it helps you a lot.
19:44It was, it was.
19:45So when I met Anthony in 2013,
19:48actually we just had lunch.
19:49Someone introduced us, right?
19:51And we had a good lunch.
19:52There was no, at that time,
19:54it wasn't, hey, you're meeting to join HypeRice.
19:56It was just two people getting together.
19:57Both were in the sports space.
19:59And he had built, he had an awesome product,
20:03the ice compression device,
20:04which you've probably seen that Kobe was wearing.
20:05And he had all sorts of pro athletes
20:07that were already using the device.
20:09And there was early stages of a really cool brand, right?
20:11Some of the stuff, he's great at brand marketing,
20:15creating awesome aesthetically pleasing videos
20:17that drive people in, right?
20:18So there was some really cool stuff,
20:19which is what drove me.
20:21When we had that meeting,
20:22there was a Viper product that was an early prototype.
20:26And one of the things he and I aligned on is,
20:28hey, we don't, we wouldn't want this company
20:30to be a sporting goods company.
20:32We want this to be a technology company.
20:33We want it to be a company
20:34that's rooted in innovation, right?
20:37And at the time, Kickstarter was huge.
20:40It was a huge platform
20:41that was gaining all sorts of momentum.
20:43Everybody from Wired Magazine, Gizmodo, HypeBeast,
20:46all these big time movers were following the platform.
20:50And we said, this would be a great way
20:53to position the company away from just sporting goods, right?
20:57And into technology.
20:58We'd use a technology platform to launch it.
21:01We'd tell the story around innovation and athletes.
21:04We used a lot of really cool like 3D renders
21:07and kind of manufacturing videos
21:10that would really highlight the innovation around the Viper.
21:13And it worked.
21:14It really did.
21:15We got covered by Gizmodo.
21:16We got covered by Wired Magazine at the time.
21:19And people's perception of the company changed, right?
21:22And that helped us get into the Best Buys
21:24and some of the bigger distribution channels
21:26that we really wanted to aspire to be into.
21:28It also highlighted the athletes
21:30that were a big part of the movement of Hyper-Ice
21:33and what makes us so special, right?
21:35This authentic connection to athletes.
21:37So it was a calculated decision for us.
21:42And we did kind of need the money too.
21:43I'm not going to show you.
21:45The money was good.
21:45I was going to say, you don't go to Kickstarter to be sure.
21:48You needed to raise money.
21:48But again, you come away.
21:50Were you surprised at all by the amount of support
21:53that you received?
21:53I mean, it's a hit or miss when you go to Kickstarter.
21:56I'm sure people do it all the time.
21:57And you go with an aim.
21:58Some people come away with more or less.
22:00Were you surprised at the reaction?
22:02We thought we'd do pretty well
22:04because the video we had done was like money.
22:06It was great.
22:06And we had, at the time, it was like Adrian Peterson.
22:09Yeah, I was going to say Blake Griffin, Adrian, and Lindsey Vonn.
22:11Troy Palomar, Lindsey Vonn.
22:12So we had all these athlete icons in the video
22:15like as evangelists, which is huge.
22:17Well, how did you do that, though?
22:18How do you get at that early of a stay of a company
22:21to get an athlete to say yes?
22:23Do you use the whole, hey, we're a combination
22:25of Apple, Tesla, Dyson, and Nike?
22:27Like, do you use that to get them to say yes?
22:30Yeah, that's one key.
22:31And I think a big part of our strategy
22:33was to bring athletes in as investors, right?
22:36So that's been, and we can talk about that too
22:37because that's also very interesting
22:39because I think we've done a really good job
22:42humbly getting athletes who really want to be involved
22:47to also be investors.
22:49And so they're just more incentivized
22:51and excited to participate.
22:52And the reason that's easy is because these products
22:55are actually helping them perform.
22:57They're helping with longevity.
22:58So it's natural.
22:59We're not asking them to just like pitch a cell phone case
23:01or something, right?
23:02This is something they're already using.
23:04But I think at the time, there were already
23:07athlete investors in the company.
23:09So they were excited to help push and promote.
23:12And they were all part of the feedback loop
23:15in product development.
23:16So Lindsey Vonn had already given us insight
23:19for about 18 months on the product.
23:21So when it was coming to market,
23:22she was like, I want to be part of that.
23:24I've been the one giving you testing feedback, right?
23:27So it was really fun.
23:28It actually started, the Kickstarter started
23:30a little bit slow.
23:31Like we kind of jumped off and then it was like this valley
23:33and there were a couple of people in the room
23:35I remember who were like, oh no.
23:37And we're like, relax, this is gonna be great.
23:38We got a bunch of bullets in the chamber
23:40and then we hit Gizmodo and a couple other media pubs
23:44and it blew up.
23:44Yeah, absolutely.
23:45I mean, now listen, when you are taking that pitch
23:48to athletes and you're saying, hey, come and invest
23:50and like that, what are those conversations like?
23:52I mean, I mean, listen, they want to make money on money.
23:54Are you saying, hey, three to five years, 10 years
23:56or you're returning your investment?
23:58Like how are you getting them to see it?
24:00They're having to write a check, right?
24:02They have to give you money.
24:03Like how are you giving them that reassurance
24:06that this is going to work?
24:07Yeah, and a lot of them are a lot more sophisticated.
24:10I've been in the space now for about 20 years, right?
24:13And everybody's more sophisticated now.
24:16So we're giving real pitches now
24:18when we're raising money from athletes.
24:20They're seeing all the financials, the P&Ls,
24:22the five-year forecasts, the IP portfolios.
24:25It's not just like they're, hey, you want to invest
24:27and write a check.
24:27It's much more sophisticated now than it was 15 years ago.
24:32But a lot of them, again, they believe in the mission
24:36and they believe in the vision.
24:37Because these products, shoe included, obviously,
24:41the boot, are changing the physiology of the body, right?
24:44There's this impact that is emotional.
24:49Because it's like I wake up every morning
24:51and I'm wearing my Normatex, right?
24:53And when I'm sore and I'm hurt or I'm injured,
24:56I'm putting on my Venom shoulder.
24:58Or when I really need a massage and my body's stiff and sore,
25:01I'm using the Hypervolt.
25:02Now I love those products, right?
25:05So for them, it becomes like, I want to be part of this.
25:08And a lot of them want to be the face.
25:10So it's not just, I don't want to just be the sideshow,
25:13an investor, like, hey, if I'm going to invest,
25:15I want to be in your marketing videos.
25:17If you're doing an ad with the NBA,
25:20we actually had a couple of deals
25:21where athletes, as part of the deals,
25:23they wanted to be in the deal with other athletes.
25:26And part of the deals were conditional
25:27on them being in TV ads, right?
25:30So I think that just speaks volumes for the category
25:34and the company and the reputation we built with athletes
25:38where they want to be part of the mission of the movement.
25:40Yeah, 10 years in, right?
25:41You have to go back and describe
25:43Hype Rice's business parable, right?
25:46What would you want an entrepreneur
25:47to take from the journey, right?
25:48You go from Anthony Katz and his,
25:50what he wanted to do, I remember him
25:52and the Norma Tech CEOs kind of getting in the same room
25:54and saying, look, we're making a deal.
25:55Let's combine, right?
25:56And they acquire, you guys acquired that company.
25:58I remember covering that in 2020.
26:00And so, but what would you want an entrepreneur
26:02to take away from Hype Rice's journey?
26:03And again, still a long way to go.
26:05Yeah, three, I said three things.
26:07Investing in people.
26:09Investing in people.
26:09Investing in innovation, always.
26:11Like innovation, if you don't invest
26:13in your innovation roadmap, it'll catch up with you, right?
26:16You gotta be, one year, two years isn't good enough.
26:19You gotta be thinking three, four, five years out
26:21because this world moves really fast now.
26:23And there's, you know, a lot of technology innovations
26:26coming at all times.
26:27So those are two.
26:29And then the third is more unique to Hype Rice.
26:31We have stayed true to the mission and the athlete, right?
26:36And there's been times where we veered slightly
26:39and we veered back because it didn't work, right?
26:41There's been a couple of times where we made moves
26:43that maybe were a little out of our wheelhouse
26:45and then it felt a little outside and we came back.
26:48And so really staying core to the vision and the mission.
26:53And that's what's made us unique.
26:54The relationships we have with athletes,
26:56trainers, performance experts,
26:58doesn't just drive market awareness.
27:00It's driving innovation
27:02because we're able to see around the corner, right?
27:04We're able to hear from these trainers in the NBA
27:07and the NFL who are saying like,
27:08hey, our athletes are asking for this
27:11or there's this new modality like this.
27:12Or hey, what if you did this to the product?
27:15Our athletes think this would be beneficial.
27:17And that feedback, you can't get that
27:19if you're jumping into the space.
27:21It's years and years of reputation, you know?
27:23And that started with Anthony
27:25and obviously G from Normatec and others
27:27and just Pete, the company's relationship
27:29directly with athletes and experts.
27:32Yeah, absolutely, man.
27:33So look ahead and close out here, man.
27:35And I thank you so much for the time, Jim.
27:37Again, now that you're 10 years in too,
27:38I believe you're able, you're eligible
27:40to start working with Rolex, if I'm not mistaken, right?
27:43Yeah, right?
27:44That's good, that's good.
27:44It's 10 years, man.
27:45I like that, I like that.
27:47So that's good, congratulations.
27:49So the next sneaker you come in with
27:50is going to have a big Rolex sign on it
27:51when you walk in, it's going to be dope, man.
27:53Make sure it's the first pair.
27:54That's awesome.
27:55Listen, you have an ongoing competitor, right?
27:57Thoroughbodies, a lawsuit with them.
27:59Any update on that patent infringement?
28:01Now you guys have been on this road before, back and forth,
28:03and you always seem to settle.
28:04Is that where we're headed here?
28:05What's the update on that lawsuit?
28:07So we actually have, so we have a piece of IP
28:09that's very strong and multiple patents coming around it.
28:13And there are about, we did 60 lawsuits so far,
28:16a little bit more than that with companies.
28:18And we've removed, I think, 350 massage guns
28:21from the market so far off selling platforms.
28:24So this is one where with IP,
28:28you really have to protect your inventions,
28:30especially when it's an innovative product
28:33and the dollar amount gets so big, right?
28:37So we feel that the IP we have is really strong.
28:41And obviously the legal system
28:43will hash out what happens there.
28:45But in this case, we feel really good
28:47about where we're going.
28:48And again, we feel like it's what companies should do
28:51to protect their inventions.
28:52You spend a lot of time, energy, resources
28:54to develop technology and you have IP,
28:57you should protect it.
28:58Yeah, absolutely.
28:58Well, Uber is getting a big check too, man.
29:01That's true.
29:01Gotta hire them.
29:02Inflation is still high.
29:03You know, listen, price at the grocery store.
29:05I was there yesterday, man.
29:06I spent like $80 on two things almost.
29:09And so I would think your devices fall
29:10under discretionary spending.
29:12And with inflation is so high,
29:13people will have to pull back.
29:14What are your customers telling you?
29:16Are you seeing your sales drop a little bit?
29:17What's that looking like?
29:18We haven't, we're gonna be,
29:20we're trending up double digits this year,
29:22which is great.
29:24I think that because we are a health tech product,
29:29I don't wanna say we're resistant to inflation,
29:31but I do think that some people
29:33are gonna prioritize health a little bit more
29:36than maybe other discretionary items.
29:38Especially with all the awareness
29:40that there is around the benefits of health.
29:41There's so many medical and scientific studies
29:43coming down the pipe right now.
29:44And people just are,
29:46that's actually something that COVID did.
29:48That's interesting.
29:49It just got people to think about their health
29:51and wellness a little bit more too.
29:52So I do think that was an accelerant.
29:55But in general, we haven't seen a slowdown
29:59specifically this year.
30:00You know, we're having a really strong year.
30:02And I think if as long as we position the products,
30:05even though they are expensive to the benefits
30:09and the value problem,
30:10what it does to the human body,
30:11I think people will still find the value.
30:14Yeah, most definitely.
30:15Relationship with Jah.
30:16I remember, you know, listen,
30:17he got into some off the court incidents,
30:18but served a suspension.
30:20Image seems to be recovering.
30:21And he's still in the high price family.
30:23What does that relationship stand?
30:24Yeah, he's still in the community.
30:26He's an investor.
30:27So he actually invested as well.
30:28We still touch base with them all the time.
30:30We'll send him products for testing.
30:33He participates.
30:35When that happens,
30:35do you have to roll back a little bit
30:37and just say, hey, you know,
30:37let's pause and maybe, you know,
30:39redefine some things
30:40and hope to get him back in a picture like,
30:42well, is he automatically going to be back
30:44in that marketing circuit?
30:45So, yeah, we usually will pull back,
30:47but we'll have the conversation.
30:49So we'll call and literally,
30:50whether it's him or his agent,
30:51sometimes it's both
30:52and just have the conversation here.
30:53Here's kind of what we're thinking.
30:54We want to support as best we can.
30:56He's always in the high price community,
30:58but we might want to lay off this, this, this.
31:00Here's the reasons why.
31:01And a lot of them,
31:03when those things happen, understand, right?
31:05And they're also thinking about it as a shareholder.
31:07So they're now thinking about it,
31:09not just like, hey, you owe me this for whatever.
31:11And like, they're pulling deliverables,
31:13but it's more about like,
31:14I understand I'm part of this company.
31:16I invested in it.
31:17And that's a wise decision given the time period.
31:20So, yeah, I think we wish him the best
31:23and I think he's going to come back.
31:25Yeah, most definitely.
31:27And off the field stuff, I think he's going to fix it.
31:29And that's just my personal take.
31:30Most definitely.
31:31I'm looking forward to it too, man.
31:32That's when I enjoy watching him.
31:33You know, great, great young man.
31:34First million, how did you make it?
31:36How did you spend it?
31:37Anything you would do different?
31:39For a high price?
31:40Yeah, well, just you, your first million dollars.
31:42I would think that 10 years in a company like this,
31:44you're a millionaire at least.
31:46I mean, I'm pretty,
31:49I feel pretty strongly about real estate.
31:51That's kind of, I mean,
31:52I've definitely invested in some private companies
31:54and hit or miss, right?
31:5750-50, right?
31:58And there's a lot of, you know,
32:00when you're investing in them and you're not running them,
32:02it's a very different perspective.
32:03And I've actually learned a lot from that, right?
32:05As I'm thinking about how our investors
32:08analyze their investments and hyperize.
32:09So I've definitely done some private investing.
32:12Yes, well, you made your first million
32:13in private investing real estate?
32:16I think probably, yeah.
32:18I mean, a combination of a few different things, but yeah.
32:20Yeah, when you look at your receipt,
32:21did you remember how you spent it?
32:22Like, damn it, all of this?
32:24What did I do?
32:24I didn't do anything crazy.
32:26Nothing?
32:26I really didn't do anything crazy.
32:28I think my wife and I went to Vegas for something and...
32:32And lost half of it there.
32:32Yeah, maybe we did.
32:34But no, there wasn't, I didn't buy like a,
32:36you know, $50,000 Rolex or anything like that.
32:39Yeah.
32:41Yeah.
32:41Yeah.
32:41Thinking about it, would you have though?
32:42What, the $50,000 Rolex?
32:44Maybe.
32:44Nice.
32:45Especially now, it probably would have doubled.
32:46Absolutely, man.
32:46And nice, man.
32:47Yeah, it would have doubled.
32:48And two things, I'm gonna let you wrap,
32:49go, because you're a CEO.
32:51I know you want to get out of here, man.
32:52Black Business Month coming up in August.
32:54When you think about a black business leader
32:57or someone who did some extraordinary things
32:59within the black community, doesn't have to be famous.
33:01Who comes to mind?
33:01Who stands out?
33:02Oh man, there's a lot.
33:03I mean, Barack Obama comes to mind.
33:05Barack Obama.
33:06Yeah, he comes to mind right away.
33:07Right.
33:08I think, you know, when you think about
33:11different communities and different cultures,
33:14even like a Dr. Dre in that culture,
33:17I think what he did in music,
33:18and then obviously helping build Beats
33:21and selling it to Apple was huge.
33:24I mean, I think there's so many
33:27that have been absolutely transformative
33:28in different spaces.
33:29Yeah, but Barack and Dr. Dre, those weren't bad though.
33:32Definitely not bad.
33:33Yeah, I think I tried to pick two completely opposite.
33:35Yeah.
33:37Completely opposite.
33:38Yeah, you hear Barack all the time,
33:39you don't hear a lot of Dr. Dre.
33:41So I'm glad you said that.
33:42Definitely an inventor with the head.
33:44Beats by Dr. Dre.
33:45He sold to Apple, billionaire.
33:47And good to great.
33:48Listen, you're a CEO.
33:49You've been one for 10 years now.
33:50Again, congratulations.
33:51So I think you would know what the difference
33:54between a good CEO is and a great one.
33:57Going off of Jim Collis' book, Good to Great,
33:59what's the difference between a good CEO and a great one?
34:02A great CEO is going to focus on lifting others around him
34:06and actually should be able to have a company
34:09operate successfully if they're out for a few weeks
34:13or whatever it will be, right?
34:14A good CEO is going to be able to teach,
34:18inspire, lead and cultivate future CEOs, right?
34:22And if you can do that,
34:23that means that people are learning from each other,
34:26not just you as a leader, as a CEO,
34:28but they're learning from each other.
34:29You're creating an environment for people to learn.
34:32Yeah.
34:32And I think that that is one.
34:36Two, I think you have to be really consistent,
34:39but you have to be really adaptable.
34:41You have to be able to not get overly up or overly down.
34:46You got to enjoy the highs and understand the lows,
34:48but you got to be able to say,
34:50hey, look, this happened right here
34:53and it's not going to stress me out.
34:55I'm going to overcome adversity
34:56and unquestionably we can overcome this
35:00and here's the ways we can do it.
35:02So you got to be a little bit unflappable.
35:05That doesn't mean that you're not going to have the downs.
35:07You will, but you need to be able to respond quickly
35:10and lead and not be scared of things
35:13that are outside the norm.
35:15You got to be able to take some risks
35:17and understand the consequences of the risk
35:18then own those risks.
35:19Absolutely.
35:19Well, listen, man, this is not a risk.
35:22This is a reward almost.
35:23I mean, two years in,
35:24let me put this thing up there again.
35:26Congratulations, man.
35:27You finally got this thing on.
35:28I cannot wait to,
35:30we just see all these things on the street.
35:32These are the Marty McFly's, the real one, right?
35:34I mean, look at them.
35:35These things are phenomenal.
35:36Jim, listen, I've seen your product, man,
35:38since I've covered the NBA in 2014
35:40and I'm walking around and seeing
35:41what are all these guys running in the league
35:43to see that you guys are here 10 years in
35:45and making this type of invention
35:47is truly remarkable.
35:48Congratulations.
35:49Cannot wait to cover that raise, right?
35:50Give it to us as an exclusive.
35:52And listen, man, more, more prominence to come.
35:54This is great.
35:55The Nike X Hype Rice boot right here.
35:58Giving you a Forbes exclusive right here in the studio.
36:00I get a chance to touch it right here.
36:02Thanks a lot, Jim, for joining us at NASDAQ.
36:04Really appreciate it, man.
36:05Can continue success.
36:06Appreciate it, Jabari.
36:07Thank you.
36:08No problem.
36:08Been a pleasure.