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They say everything's bigger in Texas, including climate change. That's why Houston is leading the energy transition. Here in H-Town, the fourth largest city in the United States, entrepreneurs from across Texas and around the world are gathering to work with titans of industry to build the technology that will reduce emissions and power a low carbon future.
Welcome to Energytech Startups with Nada Ahmed and Jason Ethier. We sit down with those change makers and wildcatters who are solving the toughest energy challenges with trillions of dollars on the line. We dig into how Houston will bring technology to market on a massive scale. Join us as we talk with the leaders of the energy capital of the world as they show us how the energy transition gets done.
00:00:00:00 - 00:00:28:23
Unknown
Energy tech doesn't move forward alone, and neither should you. Energy tech cipher brings together the founders, investors, operators and corporates shaping what's next. From innovation trends to data driven insights. This is where the ecosystem connects, collaborates and moves. Find your place in the ecosystem at energy Tech cipher.com. That's cipher as in Sci, pH. E.R. where we bring the community together online and in person.
00:00:29:00 - 00:00:51:05
Unknown
Hi everyone. Today we're at the studio with Vasily Borisov, who is the founder of Cool Edge Bits, which is, a startup that is growing really fast. And I'll have a tell us more about it. Tell us about how you started this company and where the technology comes from. So we have a pretty interesting story, I would say.
00:00:51:10 - 00:01:15:19
Unknown
Maybe not as common for oil and gas, but, you know, I grew up all my life as a as a tennis player. Ever since I can remember having memories. I had a racket in my hand. And, you know, we immigrated here in the early 90s, and, I'm still playing tennis and actually got to reach the highest level of my sport, play some pro tennis, and, so that was my life, you know, working with people, sports, health and fitness.
00:01:16:12 - 00:01:34:04
Unknown
But my father, on the other hand, is the reason we came to this country on a Fulbright grant, came to do some research, some study teacher, you know, university, ended up at U of H in Houston and, kind of figured out that, sadly, you know, it's tough to raise a family on a teacher salary in this country.
00:01:34:06 - 00:01:50:14
Unknown
And so, you know, he started to work on his own things and get ideas. He had patents even coming from Russia and developed some technologies and, and ended up starting his own company and getting a landing a really good grant with the US Navy to develop combustion engines, which you guys talked about, and different burners and injectors to that.
00:01:50:14 - 00:02:15:18
Unknown
And, you know, I was an early guy at a big company that says, we all know that's about to become five companies. Looks like, you know, to NASA to, to Firefly who just iPod. And so, that was his life was rocket engine design. He's got 40 plus patents in that space and focused on thermodynamics, you know, fluid transfer and, you know, heat rejection and cooling and so, you know, that was kind of our parallel lives, right?
00:02:15:18 - 00:02:33:13
Unknown
Living together, obviously. But, you know, so I got into coaching and he's doing his thing and, but some of his buddies who we thank and bless to this day, they said, man, this guy's got the perfect set of skills, lives, works expertise. Right. Patents to to maybe look at these drill bits that were tearing up.
00:02:33:13 - 00:02:51:10
Unknown
Right. These guys here. And so some of his friends are drilling, you know, private operators drilling across the world basically. And, they said, man, Anatoly, come handle this thing and maybe see if you can make it better. Doctor bought off my father. So, you know, he started to look at him and say, you know, this, that they're doing something wrong here, right?
00:02:51:19 - 00:03:14:14
Unknown
Where, you know, he did find a good focus on hole cleaning and evacuating particles that everyone else had. We have a drill bit over there in the corner, conventional bit. But but he he didn't understand the nozzle focus being to the bottom of the hole. He did a lot of CFD studies, a lot of analytical, research and said the heat is right here at the cutting edge across the cutting face of the cutter's cutting surface.
00:03:14:16 - 00:03:31:06
Unknown
Why are they pointing the nozzles here? You need to point them here right where the action is. So that's what you see in a lot of our bits. All of it is focused on, you know, directional, strategically placed nozzles that are pointing right to the cutting edge. Right. So by doing that you get a really high heat rejection number nozzle calculation.
00:03:31:11 - 00:03:47:19
Unknown
Like doing that you get superior cooling. Right. So what we like to say is hey, we do everything very similar. All my engineers come from the big companies that we all know, how we design the bits, where we get our materials, where we source, you know, source our internal components to our cutters, to we're right here with everybody.
00:03:47:21 - 00:04:12:23
Unknown
But where we go like this is with our hydraulics, with our thermal management package, which has to basically do with all of the directional nozzles that you see. Right. And so, you know, by figuring this out, you know, and my father brought it to me. And at this point, I had kind of left the corporate prison, let's say, that I was working in just big tennis clubs, health clubs, started my own business, tennis academy, and then went on to other businesses and sectors.
00:04:12:23 - 00:04:27:19
Unknown
And my dad came to me. He saw me doing good in that and said, you know, here's I got a gold nugget for you, right? So, I looked at it. I said, and I trust in what he says. I did a little bit of research. We made sure that we can protect it. I said, let's go.
00:04:27:19 - 00:04:44:21
Unknown
So we started Coach Bits, and, first thing I know, we do have a golden nugget on our hands. Let's protect it. So I hired patent attorneys, team of corporate attorneys to, you know, start building a patent portfolio, but also make sure all our contracts are tight in place. Jason's helped looking at a bunch of those, and, so.
00:04:44:21 - 00:05:04:14
Unknown
Yeah, and then it's just been a tremendous run. You know, we've raised over $1.4 million in the last, let's say, 14 months. And we're working on, you know, we're towards the end, right at the door of closing, our seed round currently of the $5 million. So awesome. And sorry, I'm a little long winded, but I wanted to get the story out, so that was a good story.
00:05:04:14 - 00:05:20:14
Unknown
And I think one of the things that is nice to highlight here is, you know, I think you you describe that you're not you're not the technologist, you're not the inventor. But I clearly heard a lot of technical terms like you talked about, new cell number, which I assume is for cooling. You talked about, like, how you're directed things into the drill bit.
00:05:21:00 - 00:05:41:08
Unknown
And so on the one hand, it's a good proof point that you don't have to be a technologist to talk shop. And I'm curious how you picked up, you know, not not just these technical terms, but how do you figure out what words needed to go into the pitch for the customer? Yeah, I mean, I guess let's say, deep rooted science, mathematics, physics, engineering is in my blood.
00:05:41:08 - 00:05:58:15
Unknown
Yeah. From my grandfather. My mom's dad, a world renowned scientist. Actually, when he passed them, they couldn't even they had to wait till he passed in Russia to give them, like, 30 posthumous medals because it's all military. I mean, it's crazy from him to my father to my mom's, you know, PhD mechanical. So it's probably in my blood a little bit.
00:05:59:03 - 00:06:17:06
Unknown
And I pick up quick. One thing, when I was growing up, my nickname was in Russian was. But you muka and putting more means y, so they're like, put your all right. Because I always ask curious. Yeah. And I always and I learn I never think I'm better than anybody. And I'll sit down and listen and and if I don't know that thing, that's okay.
00:06:17:08 - 00:06:35:01
Unknown
Once you tell it to me and tell me what that thing is, I'll know it for the rest of my life. So I'm not ever afraid to ask a question like some people are. You know, it's like it's just learning. And, I mentioned earlier, you know, I did not go to college, but the last four and a half years, you know, starting businesses in different sectors and having a nonprofit and taking care of other people.
00:06:35:17 - 00:07:13:04
Unknown
I've gone through the hard knock university life of, you know, putting businesses together and, you know, from the whole the whole deal from operations to raising capital to hiring. Right. Which is a huge piece. Yeah. So so I would say that's probably the biggest part of it. It's just having the curiosity learning, you know, and, and then, you know, being humble enough to, to admit that when you don't know something, I'll say one thing, growing up and becoming a professional athlete, especially in individual sport, like tennis, similar to boxing, is you're on an island basically out there, and it's you against another human.
00:07:13:11 - 00:07:33:02
Unknown
You can't ask mommy and daddy or coach for help, right? You got to go figure it out and so and when you do that successfully, the, kind of the experience, but more importantly, the confidence that that gives you to do absolutely anything else in life, you know, and I did successfully won many tournaments, had high rankings to do that.
00:07:33:02 - 00:07:51:06
Unknown
You got to win a lot of matches. So if you do that thousands of times, you know, like, okay, good match, shake hands. I just defeated that person. Right. Being humble enough about it but still like that. What what that gave me is hey, I can figure whatever out that needs to be figured out. And I can solve this, get over this hurdle, solve this problem.
00:07:51:14 - 00:08:07:09
Unknown
But if I can't, I'm going to go find the person that's going to help me go do that. Right. Or build a team so we will get it done. Right. It's it's not an option. Failure is not an option. So yeah. And I've and I kind of call that resilience and grit right. Like you learn that from playing sports which is why they say sports is super important.
00:08:07:19 - 00:08:31:19
Unknown
It's an especially competitive sport. And and also like speaking to what Jason was talking about, like a lot of these, the way science works and engineering works, you can learn it. You don't have to go to school for that. And for a lot of people you learn it on the job. And so, you know, for you spending these past 3 or 4 years on the job, seeing how the drill bit works in action, I'm sure that's been really the real learning for you.
00:08:31:19 - 00:08:51:19
Unknown
Even if you went to university, you wouldn't have learned exactly about how this bit. Yeah, no, it's funny, we're now hiring, some younger people or there's some are interning with us, and these are not like kids. They're adults now that have graduated that have master's degrees in business. And I'm I feel silly, but I'm sitting there telling them about how to do stuff right.
00:08:51:19 - 00:09:11:08
Unknown
So, no, I think another key piece to any business is having customers, you know, so sales and marketing sales comes from marketing. Marketing is if you're good at telling a story and painting a picture, you know, and putting it out there in the right manner, whether it's digital or however, that's a huge piece. And then, you know, sales is just a transfer of emotion, right?
00:09:11:08 - 00:09:32:10
Unknown
So, all my life I was a coach, you know, I then I worked at gyms, sold membership, ran gyms across the city of Houston, you know, big billion dollar companies, you know, with many locations and, you know, but at every crossroad and every point in every business or, you know, anything that I've done when it comes to business, sales has been the core thing, right?
00:09:32:10 - 00:10:00:10
Unknown
Like, if you are customers, you go out of business. Right. And so but growing up in what I've kind of my experience and what I did, that's all I did. Right as a coach from 18 years old, I was coaching to make extra money for travel, whatever. You're selling yourself to other people, right? As a coach, as a human, as whatever, right to to teach that person or their child or, you know, so it's like, and doing that for, you know, over 20, gosh, I'm going to feel old almost 25 years.
00:10:00:23 - 00:10:22:17
Unknown
You know, it gives you and I just I love people, you know, I like being in front of people, like interacting. I like trying to help somebody if they're in some type of pickle. So, so yeah, that's I would say that's a huge piece. Yeah. So, so think back to 18 year old self like, how did you, I guess learn to become like for salesman or how did you, how did you like, you know, pull the skill out?
00:10:22:17 - 00:10:36:06
Unknown
Because I think when we talk to a lot of founders, who are especially technical, I was talking one yesterday. He goes, I'm a PhD man. I don't I don't sell things. But but you have to. Right. And so how did you how did how did you kind of pull that out of yourself, if you can remember that far.
00:10:36:08 - 00:10:53:00
Unknown
Yeah. I mean at some point it came down to I have to have money to eat food to survive. But at other points, you know, maybe in my early 20s and on, I mean, we literally would be on the street with, with a hundred, a booklet of 100 passes, you know, their free one week pass to come work out, you know, LA fitness.
00:10:53:03 - 00:11:07:17
Unknown
Yeah. And this is where I work. Shout out to my guy Todd, who was our senior VP who kind of took me under his wing. So I'd say he taught me a lot. But literally you'd be on the street, right? The goal is to get someone's name who you've you're, like, running up to people, right? Trying to.
00:11:07:21 - 00:11:22:21
Unknown
It's like guerrilla marketing, right? So. So, you know, and you tear off a pass, say, hey, come work out our gym down the street. Yeah. Tell me your name, number, email once you. That's a lead, right? You come back to to the gym. You punch it in the computer, call him, schedule an appointment, have him tour. I got pretty good at it.
00:11:22:21 - 00:11:37:07
Unknown
To where they weren't even coming in the gym. All. I need your number because I'm going to call you and your wife later tonight, and I'm just going to sell you over the phone. Right. Because again, it's a sales is a transfer of emotion. Right. So if you can make someone emotionally attached to what it is that they're buying, you could sell anything.
00:11:37:10 - 00:11:58:17
Unknown
And in some cases this is like, this is not a lady that wants that nice gym body for a wedding or summer vacation. This is people that are way 400 pounds. They're going to die if they don't start living healthier lifestyle. So, you know, and that's kind of why I got out of it, because I start to kind of feel like a used car salesman because I would have usage reports, you know, as a GM, I could check any chart from training to anything.
00:11:58:19 - 00:12:13:09
Unknown
The sales GM was the head guy in the gym. And, I know I just sold this lady a membership six months ago and she never came to the gym. Or she's come once. I'm like aspirational purchase. Yeah. I'm like, I don't that's not what I want to be doing, you know? And I got an opportunity to get into coaching right away.
00:12:13:11 - 00:12:32:18
Unknown
So I just went with that. But, sorry for rambling. One of the things that that I think, whenever we run these shows, like we ran a matchmaking session three weeks ago and, we kind of assign everyone to have a seat, and Vassily would be done, and he would go pitch someone out while he was waiting for the next round to go in.
00:12:32:18 - 00:12:51:20
Unknown
And on the one hand, you know, we could be up something like, no, you got to follow the rules. No, no, no, no, this is good. Like you need founders to be hungry and you have to take every opportunity to share your story. You get that emotional connection and, and and what's what's funny is I'll see founders come in and they'll, like, sit on the side of the room and they're like, afraid to engage.
00:12:51:22 - 00:13:09:03
Unknown
And so what I'm trying to make sure people understand is like the skills you developed as this, you know, salesman for, for Jim is very much what I see you do every day. And, I guess the question is, is it a learned, was it something you had to learn how to do and force yourself how to do it?
00:13:09:05 - 00:13:32:01
Unknown
For sure. So, so, you know, after I, you know, stopped playing tennis and had a little bit of a rough go there in my early 20s, I went to some places not many people have been to. So, you know, that teaches you to kind of always be aware, keep your head on a swivel and, you know, definitely, you can't be afraid, you know, and so and so a lot of times, like, I've gotten slapped in the face saying, get out of here.
00:13:32:01 - 00:13:46:01
Unknown
I don't want to work out of the gym or whatever. So many times, like, no, I've heard a million no's. A no to me is like the way I think about it now, especially with this is your loss. Oh, you're going to use this thing anyway, but I'm gonna charge you twice what I would have charged you if you use it today.
00:13:46:01 - 00:14:05:05
Unknown
So, you know, jokingly, but but truly just being able to be comfortable in an uncomfortable environment, you know, and to be able to, to take 100 no's to get those couple yeses, that's all I need, you know? And so, I would say that, you know, and just learning how to, how to make, I'm a very positive person.
00:14:05:06 - 00:14:30:21
Unknown
Right. I try to turn every even if it's something crazy negative, whatever. I try to see the positive. Well, why did that happen? What? What maybe. What? Did you know God intend to come from that or something, you know, in that manner. So I never try to think like, super negative, you know, either. So, Yeah. So tell us a little bit about, you know, when you first started this company and it wasn't so long ago, like you're saying, like 14 months ago or it was like two years ago, two years ago, I would say.
00:14:30:21 - 00:14:55:17
Unknown
Yeah, but the operations has been, you know, I'd say the last 16 months, 16 months. And we've seen you grow very rapidly, get traction, get clients, get the investment. And now you ready for your seed round. And, you know, successfully like getting a lot of interest in the market. What do you think? You know, from, like, the first couple of weeks you were out there and pitching to where you are today.
00:14:55:17 - 00:15:18:00
Unknown
How have you refined what are you selling? No, that's a great question. I think we've had so many, which Jason has also helped and seen and helping, as well as not a, iterations of our slide deck. Right. We have one for customers and and, for investors and, you know, or engineers and, so I feel like with every reiteration of the slide deck, we all learn a little something new.
00:15:18:00 - 00:15:40:09
Unknown
Well, plus we have now, you know, obviously we're collecting, which is gold now is data, which is like what these guys are built on, right? AI data, and that's almost as powerful as revenue. Of course, cash is king, but to be able to consistently outperform our competition and then forgive me running my mouth right? I always say people talk, numbers scream, let me shut up.
00:15:40:09 - 00:15:56:01
Unknown
And why don't you just read this run report? You already know who else you're using because you're drilling right in there. So you already know. Like, what are the numbers? What are my best bets doing? What am I? How much am I saving? What am I losing when we're talking to, you know, potential customers, they that's all they do all day is stress on budgets.
00:15:56:03 - 00:16:16:04
Unknown
So when we show them, hey, this is what we've done in this area. And by the way, we've saved this operator $200,000 just on one. Well, they've drilled five wells already, so you can do the math. You know, people get excited, you know, and definitely get out there and give us a shot. So. Yeah. So, think back who who put the first capital into the business that wasn't you or your dad.
00:16:16:07 - 00:16:39:04
Unknown
Well, again, it was. It was family. We start as a family. My father, my uncle and I, and, you know, then then we had some, family friends that we've known for a long time that are investors, even our initial investor was, Doctor Marino. Give him a shout out. The pediatrician and, long time friend of my father, and he kind of put that first 100,000 in and really trusted us.
00:16:39:04 - 00:17:00:15
Unknown
And again, we had a bunch, you know, we had some cash calls from shareholders, just us to keep us going. But yeah, he was really the first one, you know, put that capital towards and that went a long way, you know, but even since that point, like I said, you know, we've raised, you know, over well over $1 million and, getting ready to knock on wood, close this seed round here, you know, in the next week or two.
00:17:00:16 - 00:17:18:14
Unknown
So, but yeah, I think that was the first. And when you think about that conversation with Doctor Marino, what what what what was he investing in and what was compelling in that first one, if you could remember? Yeah, man, to be honest, a, his most of his investments like real estate and things he knows, health care.
00:17:18:14 - 00:17:45:07
Unknown
Right. And but but I think we were his first in oil and gas, but but that one, I think, was just truly to the strength of and the respect of the relationship with my with our inventor, my doctor. Borissov my dad. So, he had seen him do other things in life, get money, turn it into, you know, like I mentioned, the Navy stuff and other, you know, experiences where he witnessed that mom being friends with, you know, my dad.
00:17:45:07 - 00:18:04:12
Unknown
And so he just trusted he trusted in him. And, you know, I was there, you know, we came with a already an established business with contracts from manufacturing to vendors, you know, and that's something we're really proud of because we're a fully made in the USA product, you know, I don't think any other drill bit company can say that now.
00:18:04:17 - 00:18:26:08
Unknown
We are. And so, you know, while it has been a little costlier for us, we do appreciate having someone in Houston or Connor or someone we can reach out and touch rather than anywhere else. And the strength of and, kind of the bond of those relationships that have been built has been another really, really kind of solid piece to our to our team.
00:18:26:08 - 00:18:46:22
Unknown
And when I say team, that's been well, I knew that this tennis player for a tennis player turned businessman and rocket scientist are not going to by themselves, run this one gas company. So immediately I said, we need to hire our oil and gas engineering experience. So we now have proudly, I can say, over 300 years of an oil and gas engineering experience on our team.
00:18:47:08 - 00:19:02:12
Unknown
So and it's not just from one company like a Halliburton. It's, it's, all of them all all of this company. So it's a good little mix, man. It's been kind of funny to watch because they all, like, say the same thing, but they use different jargon from Baker to. So it's been like, well, this is gonna be the cool jargon.
00:19:02:12 - 00:19:17:13
Unknown
So let's combine it all and write our own book. But that's been kind of funny. Funny to witness too. Yeah. So, I think one of the things that's, I know challenging for me is I think about, okay, should we, you know, if we're gonna go out and do friends and family? I don't think I go around my friends and say, like, do you have money?
00:19:17:14 - 00:19:39:18
Unknown
Not a do you have money? Like. And so so how does that, like, conversation come about when you identify like someone you want to bring in and they are they are investing in you in the prior long relationship. And I'm curious how you, how you approach that, because sometimes I feel like it's harder to ask your friends and family for money because you're like, you going to have to live with that if it doesn't go well, right?
00:19:39:18 - 00:19:54:21
Unknown
Yeah. Because you're going to see them still every day. Yeah, yeah, yeah. Well, that's been tough working with my father. My uncles is awesome. But you know, my dad is is kind of set in his ways. And you know, a lot of times he's the smartest guy in the room and, and things like that. So that's been tough.
00:19:54:21 - 00:20:11:01
Unknown
But as far as raising I mean, again, I come back to like, I don't get embarrassed, I don't care. Like the worst thing you can say is no, kick me in the butt and get me out of out the door. Right. Which is fine. I'm used to that. And it's learning how to deal with that and turn that into a.
00:20:11:01 - 00:20:36:12
Unknown
Hey, I'm back now give me a yes. We made progress. Right. So, so. And actually, our biggest investor to this point has been, a former, you know, or a student of mine, you know, that's an investor. And, he's pretty well bankrolled our, our what we've got going on so far. But that was one of those people when I was not so comfortable in leaving my comfy W-2 job with the salary and the 401 K and the insurance, health and everything.
00:20:36:12 - 00:20:58:06
Unknown
I've got five kids. Beautiful wife. And so, you know, that's what I do it for. But but but finally taking that leap and saying, you know what? That's all cool. But I believe so. So I had families in Houston are very prominent, you know, very well off and investors in, in different fields and sectors, from politics to religion, those who are all I treat my students like my family.
00:20:58:06 - 00:21:15:21
Unknown
So those were all the people saying, dude, you're a number one guy somewhere. You are wasting your life listening to this dude enlisted in the you're like, I don't adult program coordinator or something. I was it lifetime when I know my last place and, they just kept and push. And so one of those people was the one when I left to end up investing.
00:21:15:21 - 00:21:32:18
Unknown
Now, he didn't immediately jump into whatever I was doing. I mean, you just kept taking lessons. Someone's investing my tennis academy. But, you know, I mentioned this. There was whispers of this. Fine. If I brought it to him. Finally, when he saw that it was, you know, not just. And we had to prove, I mean, you know, it's the money's been put in trenches with mandates in some cases.
00:21:32:18 - 00:21:53:05
Unknown
Right? It hasn't been like, here's 1.5, which will be great about what we're doing now, because I know exactly the steps we have to take. We have everything. We have all the processes in place. We just need the working capital right. But but that was a fellow that and you know, he's VC got a family office now and and he he was one of those people that said, man I would invest in you and whatever you do because I believe in you.
00:21:53:07 - 00:22:14:14
Unknown
So finally we brought and showed not just a working product, but a superior product. You know, I think when you as an investor, no matter whether it's your son or your daughter or someone you never met before, if you're putting your faith and trust and money into them, you look for, you know, a superior product, right? Or the whispers or the proof of, you look for a solid team, right?
00:22:15:08 - 00:22:32:02
Unknown
And then, you know, I think the market controls everything, right? So I think you, even if you've got A+ and A+ on those two, the third thing, the market, that might as well go first, right? Because you got a great team, great product. But the market's going like this in the next five years. Why would you. You know what I mean.
00:22:32:02 - 00:22:50:02
Unknown
Your love blessings to those that team in that product. But it's like I don't know you probably would look at it twice you know. Yeah you got to pick that market. Yeah. So what do you where did you think you fell in that when you started this company? I think the market's been volatile. Volatile is one way to say it.
00:22:50:02 - 00:23:12:00
Unknown
Yeah. And you know have you been lucky. You think it's that it's bad to say this sucks to say this. But you know I think even what's going on across the seas, it's like for us as a company, it's good because as the price rises, you know, there's more it's like there's more drilling that's happening. And when there's more drilling, that's happening, what do you got?
00:23:12:02 - 00:23:30:17
Unknown
You gotta use drill bit. Yeah. I think for us it's like folks will always be drilling, right. At what rate. And what's happened in the market. Yeah, it affects us. But I don't know. I mean, Jason, I would ask Jason that question. He's one of our I think we literally were sitting six months ago and everyone was talking for $55 oil.
00:23:30:23 - 00:23:50:12
Unknown
Right? I think we had that conversation of, you know, facility, you need some capital discipline because I don't think people are going to put money in this market because everyone's laying people off. And we saw a bunch of people take packages and, and in February and, I was talking to John Willis, who just left oxy, and he was joking, you know, the market's going to go up when I decide to exit the business.
00:23:50:14 - 00:24:09:10
Unknown
And literally a week later, you know, you know, the conflict in the Middle East happened. But that's a long way of saying, like, yeah, as a, as a, as an entrepreneur, like, you have very little control over these kind of geopolitical things. And there's something to be said for discipline around, like waiting for the market or coming in at the right time.
00:24:09:12 - 00:24:32:18
Unknown
And, and, I feel like it's, you know, in the six months since we've chatted, things have changed. 360. Yeah. Right. Because, everyone needs to, to use product. Right. And who knows what plans those are leaders have. Like, it's, at this point, it's kind of like the big three energy powers in the world, excluding China. I would say our, you know, the US, Russia and Saudi Arabia.
00:24:32:18 - 00:24:53:22
Unknown
That's kind of whose as the stuff starts to clear out, that's who's kind of like running the that market, right. As far as just overall or the biggest producers. Right. And so, China may be looking like, what the hell? We left us out, you know, or something, but but, but I know it's a strategic play. I think politically to strengthen the US.
00:24:53:22 - 00:25:08:04
Unknown
Look, it no matter what happens, if there has to be a world police, I'd rather be us. Right? And if there doesn't have to be a world police, then it doesn't, right? We can have that argument. But. But if there has to be one, I'd rather be the country that I love and the country that I live in.
00:25:08:12 - 00:25:24:15
Unknown
And I think the strongest country in the world, which is the US to do. It's about, you know, how you got serious about, like, okay, we're doing this, you know, maybe you got your first check. Was it, you know, the 100 K? How much was it that made you want to say, okay, now I'm going to go into this full time.
00:25:24:15 - 00:25:42:03
Unknown
We're going to get this team on board. I'm going to stop coaching. Yeah. And or at least a little bit, not quite as much as I'm doing before and really have a real go at this company. Yeah. I mean, I think we always take everything serious, even from when we started college bits in late, 20, 23.
00:25:42:19 - 00:26:03:09
Unknown
Again, I don't go into anything thinking about failure or thinking like I was completely, 100% sold on what the invention that my father had brought to this market and this technology. And I just knew that, you know, we have to do our best on kind of building the team and putting the right people around what we have, because what we have is something serious, right?
00:26:03:09 - 00:26:26:04
Unknown
So we have to build around it. We have to build for it. So I would say on that question, always kind of taking a very serious approach, but when you ask, not as far as time allocation. And when did that really change? Yeah, I would say it's probably right around that, that 100 K coming in, which was, you know, and by the way, right as that came in, we had our first two runs in the Eagle Ford.
00:26:26:04 - 00:26:45:10
Unknown
Then we start West Texas and things got got kind of cooking. So it was again, that's why I say my prayers every morning. Every night. I believe the good Lord has already written everything and the plan is in place. And I just, you know, pray for for the strength to live his will, you know, for my life. So, but yeah, no, I think and it's grown.
00:26:45:10 - 00:27:10:20
Unknown
I mean, it's tremendously the, the, the pieces that we have added to our team have been super strong, have literally changed the game as far as design, applications, engineering, you know, to logistics to, to transport, to even like inventory management, I mean, with, with a downhole tool company, you're looking at bits and cutters and then, you know, kicking off our recycling program because when this thing is debugged, you can't run anymore, right?
00:27:11:03 - 00:27:37:01
Unknown
Damaged beyond repair. But I just got it away. I can get 3 or 5, maybe between 3 or $5000. This is you. You chunk this off. That's all steel, which doesn't cost a lot per pound. But this part here is like 80% tungsten carbide. So once you melted down and and you get to what you're doing with the scrap metal stuff, you know, we can that and by the way, that adds to our margins.
00:27:37:01 - 00:27:58:07
Unknown
And our bottom line is, hey, yeah, we got paid a DBA fee, which is a good high fee that we feel that, okay, we at least recouped on manufacturing whatever. On that bit. But hey, I also was able to bring another five K on the back end from recycling it to also help push the margin, you know, so I'm thinking back to, when you were raising that first, million dollars, you know, you had a financial model.
00:27:58:07 - 00:28:16:19
Unknown
I remember we looked at that. Yeah. And, and I want to talk about the two term sheet you got at some point. But, how much do you think the, like, use, like the use of funds or how you, you know, hired for the team has evolved since that original plan you put together? First, it's like night and day.
00:28:16:20 - 00:28:33:19
Unknown
Yeah. I mean, you could answer that question for me because you've been watching it, Jason. But, no, I think a huge piece was was, getting someone like Rahm on, on the board, you know, and his tremendous experience at the executive level for both, service company and I guess the biggest in the world, or at some point.
00:28:33:19 - 00:28:57:03
Unknown
Right. And then one of the bigger operators, right in the world. And so, so having that mix and he was kind of the guy that would, on a technical side, would give a thumbs up or down and watched folks like myself, founders come in and pitch to SLB to whoever, and, you know, and so, so he kind of I appreciate what he's done after he's retired because like, man, I've got all these other skill sets, but I don't have that one.
00:28:57:05 - 00:29:14:01
Unknown
I want to learn that one. I want to help those guys, you know. And so he's done that tremendously, not just for us, but everywhere else. So so I think that was a huge piece, adding him to the team. You know, he's on our board and everything now, but, yeah, I mean, it's night and day from from the amount of pages that the financial model had.
00:29:14:01 - 00:29:40:17
Unknown
Now it's like quadruple, to the detail, you know, and the data and just everything that we kind of, are learning that as we scale how operations has to move, how, you know, spending, even something like account management, client entertainment, you know, as is, yeah. I guess as silly as that sounds, it's important, right, to get with your customers and to make sure that, you know, you're maintaining those customers and treating them the right way.
00:29:40:19 - 00:30:01:00
Unknown
And, man, it's yeah, the financial model has grown tremendously, I guess five because the other one was for 1 million. Now it's for five. So it's probably grown at least by that much. Thanks for listening. If you're fundraising now or know someone who is, I want to tell you about saffron, our investor relationship management product for energy tech founders.
00:30:01:01 - 00:30:31:01
Unknown
Think of it as a CRM built for energy fundraising. Use our recommendation engine to find the right investors faster, and then track every conversation and stay connected through your raise. There's a free tier so you can start today at no cost. That's key. Why we're on ecom now. Thanks. And back to the show. Yeah. So one of the things I wanted to steer, back to is I think, as you're out, putting that first round together, you you, got two term sheets, that were very different.
00:30:31:01 - 00:30:47:13
Unknown
And we don't have to name names. Yeah. But, talk to me about, how you felt in that first one to hit. And they came within, like, two weeks of each other, if I remember correctly. And. Yeah. Yeah. I mean, do you mean for the same investor or for for the for the first investor you decided to decline?
00:30:47:13 - 00:31:13:07
Unknown
Yep yep yep. So so yeah. So so the second situation came, you know, a month or two after the first one ended because we had like an exclusivity agreement, whatever. So, but yeah, that first one was, it was tough, man. Because because eight weeks before that, it was like a honeymoon, you know, from the from visiting our, you know, where manufacturing to to coming out to visit you is what it what what do you mean your initial investor.
00:31:13:08 - 00:31:43:11
Unknown
Yeah. Like like, I mean, just from business to technical to legal to patents to everything. They like a, you know, I mean, they just ran through all of it, right? And I mean, our data, all of it. And thumbs up everywhere. And then comes the term sheet. I was like, I thought we were friends, you know. So so it was a very, I don't say rude awakening, but it was an awakening for us to see, like, okay, well, these people kind of want to take the keys to my car, and I think it's a little early to do that.
00:31:43:11 - 00:32:06:06
Unknown
And let's see if we can pivot, step back, regroup, and maybe find find that money, the other way. And we were able to do that. And I think you, you know, you you try, right? You, you you sent back a counter negotiation. You look at it a million different ways. You brought in a lot of advisors. And so it you know, I think one thing I want to impart is, yes, there's exclusively on these, but that's to give you the time to negotiate.
00:32:06:07 - 00:32:26:19
Unknown
And a certain point, you hit the end. Right? You realize there's not a deal here. Yeah. And it's time to walk away and. Yeah. And then talk to it. Tell us a little bit about how you ended up with your current investor, and it feels like, it happened relatively quickly in terms of, like the first in some ways was a catalyst for people knowing or you were ready.
00:32:26:21 - 00:32:44:13
Unknown
Yeah. Do you mean our biggest investor now? Yeah. Yeah. No, again, I mean, that's just one of my good friends always a financial advisor to me, to my family, you know, personal and business and, you know, so. So once we were able to realize that that deal was not for us just because, at the very end, they wanted the board.
00:32:45:00 - 00:33:11:11
Unknown
I wasn't going to give up my board. Right. So. So that was it. And, meaning not the whole, they wanted control on the board. So, once we figured out we're not, we just. That's just a line we can't cross right now. I then went back and had some more conversations, and then, like I said, that was finally when I kind of saw that, hey, you know, there's some gaining a lot of interests and traction from energy.
00:33:11:11 - 00:33:27:18
Unknown
You know, experienced investors like this company that we had to walk away from. So that was maybe a catalyst to say, okay, let me let me kind of check here to see what we can do. You know. So that was kind of the first thing. And then it just, you know, it just snowballed from there to where we need more money.
00:33:27:18 - 00:33:43:14
Unknown
It was always there. And sometimes, you know, there was rough periods where we were like, oh, my goodness. But, we made it through. We made it through. My wife has a joke. She's like, man, you have a weird way of like, every time the bank account gets real, all of a sudden it just goes back up.
00:33:43:14 - 00:34:04:01
Unknown
It's like, oh, like, man. Well, we gotta eat, right? So. So, again. And I think everything happens in the good boards. Timing. So. So. Yeah. Talk to us about that. You know, you said you said no to that one term sheet, and within two weeks you were able to get. Now there was a couple iterations of the investor and they got better.
00:34:04:01 - 00:34:20:02
Unknown
And they kind of like what we asked for that they they obliged in some cases. But in the big one, which is the board discussion, they didn't. Yeah. So I couldn't yeah. And then it was you know, probably a month or so down the line when we were able to go ahead and bring the, the next deal and close it, you know.
00:34:20:02 - 00:34:36:23
Unknown
Yeah. And I guess how did, how did you have to when you realized was this one immovable object? You know, was it something you had to just decide on yourself? That's what you want to do. You have to convince your team because it's a lot to work with. From the first million dollar term sheet. While it was, it was more than that.
00:34:36:23 - 00:34:53:18
Unknown
It was more than that. Okay? It was more than that. A couple million. So yeah. So, Yeah. No. Well, it was in trenches too. So I was just like, I don't know. No, I mean, we have a board, right? So, so yes, I lead the team, but every decision we make, it comes down to a board vote, you know, and we mostly vote, you know?
00:34:53:18 - 00:35:15:02
Unknown
55050, and you know, growing with each other, but, some cases it's not, you know, and we just go to, to kind of where the vote takes us. But, yeah, that particular situation, everyone agreed that, well, like my uncle, my dad and I, we were three people that were on our board. We're like, we're not going to give this board to these people.
00:35:15:02 - 00:35:35:11
Unknown
Although there could be a tremendous help. We've kind of been able to maneuver and, you know, scratch and claw and and pivot where we needed to. And, come up with the cash, you know, but but this next round that we're looking at now is truly going to be like a opening of the doors, right? Because again, I have the team in place.
00:35:35:11 - 00:35:51:05
Unknown
We have the process in place. All we need is like this big operator in the Haynesville like, man, when Baker those guys that when they get a new design or new iteration of a design of a bit, they bring us like six bits, six, seven, eight. I'm like, I ain't Baker. Yeah, yeah. With cash constraints, I'll bring it to.
00:35:51:05 - 00:36:08:00
Unknown
Right. Because this specific size like 50 K to build plus so even two of them, that's a big spend for us. Right. And so I'm like, man, give me some runs, you know, make sure I, I can recoup. And to be fair, they're, they're really they are very fair. And I said, look, man, don't go broke here on this thing.
00:36:08:00 - 00:36:25:01
Unknown
Right? Like we want to get your bit in the hole. But and I said, okay. And but yeah. So but again once, once we once the capital here is raised for this round, I would have been easily to say, great. How many do you need? Six drill bits. Here you go. Right. And it's like without thinking too much about it.
00:36:25:01 - 00:36:47:21
Unknown
So, so that's a small example of a bigger picture kind of of what kind of what will take place once the cap. So as you, as you now, you know, in your, raise for your seed round, what did you learn from your pre-seed that you think it's very helpful getting into this raise? Oh, man, you got to be scrappy.
00:36:47:21 - 00:37:30:16
Unknown
You know, again, just kind of a whole overall synopsis of what we've been talking about this whole podcast. Right? It's like you got to hit the right buttons at the right time calling the right people, you know, have the right meetings, dinners, lunches, technical meetings, engineering design, manufacturing reviews and, you know, meeting with our financial team currently kind of a fractional CFOs, that of one of our investors, you know, talking to those folks, making sure the IP and that's all in place and then, you know, presenting that to the next best, you know, interested party, whether it's just a person by themselves who has their own kind of family office or
00:37:30:16 - 00:37:50:03
Unknown
small VC fund or whether it's a big firm. Right. I think, you know, we learn probably all at every step of the way. There's something that we learn. And by the way, a lot of times when you're very successful all the time, it's like you don't learn much because you're always winning, right? So that's one thing I appreciate, I hate losing.
00:37:50:05 - 00:38:06:01
Unknown
I actually my coach used to say, man, I don't know. He's like, you hate losing more than you like winning. He's like, I don't know if I've met a lot of people like that. Like tennis coach used to say, because a lot of kids would be like, oh, I won that. I'm happy. You know? Like that would be their biggest thrill and I would be my second biggest thrill.
00:38:06:03 - 00:38:22:17
Unknown
But my first, biggest like, that it would be losing. I hated, you know, I couldn't stand losing. So, but when when you do lose on a on a maybe not a full kind of like, oh that's it. Right. But but on a specific step. You go in the wrong direction or you lose. You learn, right?
00:38:22:18 - 00:38:39:00
Unknown
You learn a lot. And if you're smart, you never make that mistake again. And so with us, it's almost been like learning on steroids, right? As far as, because I've never ran oil gas company. Right. Yeah. But I always like to say too, like, not just in business, but in life. Man, this is the first time you've ever done this.
00:38:39:02 - 00:38:57:23
Unknown
And you and me and you, like, have you ever lived a life before? No. Right. So every second, every minute, every moment of every day, it's the first time that's ever happened to you, you know? So how can we. How can I jump on you all over your butt about maybe saying something wrong, or feeling a type of way, or being in a mood?
00:38:57:23 - 00:39:16:06
Unknown
Or like, this is we're all doing this for the first time and we just do our best, right? So have you, like now as you're hopefully getting ready to get a new deal for your company, is it clear to you what your non-negotiables are like? What are the things that you're absolutely know for sure that you're not going to give away?
00:39:16:08 - 00:39:37:21
Unknown
I think similar, you know, we don't want to give, equity control of our company. We don't want to give board control of our company. We won't, and, you know, the positions that we are currently in, we want to keep and we want to stay there. And not only current hires, but future key future hires we already have in place for my CEO.
00:39:37:23 - 00:39:54:10
Unknown
You know, if you have them identified. Oh, they're, you know, in some case, they're already on the team. They're just not in that role. Right. I just can't pay them. They're costly, so I can't pay them what they're worth yet. But, we get by and we take care of them, but, Yeah. And so I think that's a big deal.
00:39:54:10 - 00:40:18:17
Unknown
People are is a huge thing. I mean, I mentioned team, you know, product market, right? Yeah. The market being but still we just did a market analysis at the beginning of this year and the PDC say downhole tools. And the PDC bit market is due to go up almost 6%, in the next five years. So that's our studies that we paid money for.
00:40:18:19 - 00:40:40:23
Unknown
What do you think is the most like frustrating or time consuming part of like this whole fundraising process that you found? Yeah, I think, I think, trying to focus on raising capital as well as keeping operations going, you know, and the kind of doing the dance between the two. The two. Well, it's it's all one thing, but but between those two, kind of, steps, it's.
00:40:40:23 - 00:40:57:23
Unknown
Yeah, it's that's probably been the toughest part because it's the context switching hard where you're like, you're you're thinking about we were literally doing a spot earlier today and and I started to like, do my sales pitch and not my, like, investor. Right. I'm in the wrong room today. Yeah, right. Well, if somebody tells you like I don't.
00:40:58:01 - 00:41:14:18
Unknown
Oh, that's too salesy. Ours is like this shit. Everything is a transaction. As much as I hate to say it, I don't try to think of it like that, but truly, like, say this. That's what every pretty much everything is just like. It's like a sale or or a transfer or a whatever, like whatever you want to call it.
00:41:14:18 - 00:41:40:11
Unknown
But it's like you're trying to get leverage to do what you want to do or have things done, how you want to get done in the other person or team or company or whatever. So so there actually there are some similarities between operations and, you know, going out and marketing and selling and getting new customers and getting those customers to testify to get more customers and, but as well as doing the same thing with the investor side of things, right, it's a different approach.
00:41:40:17 - 00:41:59:04
Unknown
But in some cases it's very similar because again, we're selling this, we're selling our team, we're selling that the market is going to eventually do its thing. And, and a lot of cases, we're talking to folks that are a lot smarter than we are, right? We just we know we hustle. We grind. You know, we're we're tough.
00:41:59:18 - 00:42:20:11
Unknown
We don't say. We don't say no to anything. We don't back down from any challenges, you know, whatever comes at us, like, again, going back to growing up, you know, playing a sport like tennis is just like, you just got to not up, man. Like, whatever it is, or you just lose the match, right? In boxing, I mentioned boxing like, it's a little more immediate punishment because you get punched in your nose.
00:42:20:11 - 00:42:37:05
Unknown
Right? But but in tennis, it's like what I remember what I just said, the thing that pains me the most in life, which is losing, right? That's what happens if you don't, you know, if you're not mentally engaged. And by the way, you know, in that sport, you're not only do you got a hit like golf, right, you got to hit a ball.
00:42:37:05 - 00:42:52:19
Unknown
There you are. You're too. Yeah. Here you got to hit a ball. But you're also moving as fast as you possibly can to get to that ball. That ball's also moving about 100 plus miles an hour. And by the way, you got to make less than a half second decision of where to hit that ball. Right. And what's happened in the previous points.
00:42:52:19 - 00:43:15:19
Unknown
And it's just like what's the way where should I go now? What are the percentage were so like, all that chaos is what I grew up in all day, every day of my life. So if you like, if, if you just equate that to like, business and running a team and building a team, it's just like the this is exactly what I, I'm, I was born for, you know, and what I grew up training on was being to me, I'll say like this.
00:43:15:21 - 00:43:36:15
Unknown
I'm comfortable when things are like chaos, you know, or not, or just moving fast, moving fast, and a lot of things happening at once. I'm not comfortable the other way. Like when I come home, when things slow down, I stop getting which sometimes never texts and emails and the kind of start, you know, coming in lower numbers towards the later part of the day and night.
00:43:36:17 - 00:43:53:14
Unknown
I just fall asleep. That's how I if it's not going crazy, I'm like, I just nap time, I just fall out. So yeah, no, I'm I'm just thinking about like, you know, having seen you throughout this journey from, from the beginning, over the past two years, you've made tremendous progress, more than a lot of other founders that we see.
00:43:53:16 - 00:44:11:03
Unknown
And I think what I see in you is exactly kind of what you're framing is you're like, fearless. You go out there, you make the ask, you make the ask every single day. That's when Neil Dykeman tells everyone he's like, yeah. He's like, how many proposals did you send out today? Right. Every time? Yes. Every time you call someone, that's what it is.
00:44:11:03 - 00:44:30:16
Unknown
And I think one thing I found that I think is very helpful has been helpful for you that a lot of founders don't do is like using your network, like you're very resourceful. So you're like, who do I know? Like, you came in, you joined energy tech cipher. You know, you were like, I don't, you know, I was I don't completely understand what is it that you guys do, but I think you guys can help me.
00:44:30:16 - 00:44:48:16
Unknown
And you just was like, okay, I'm going to become a member. But then you used us. Yeah. And you made sure you came to events and you asked us for advice. And I think you get more out of it the more you ask people. Yeah, yeah. No, I think, you know, again, it comes down to selling as nowadays, you know, to be proper and to speak proper.
00:44:48:17 - 00:45:07:21
Unknown
You know, people dress it up in many different ways and be soft and, and, and then but dude, what's that movie? Glengarry Glen always be selling, so. Yeah. No, I think, you know. Yeah. No. And to not to understate the amount of, help that you guys have brought. Where I met Ron was through you.
00:45:07:22 - 00:45:25:12
Unknown
Ryan. Elevator guy. That's helped my business the most. I would say, you know, as well as our engineers and the guys, you know, putting bits together and stuff. But, I mean, that's been a tremendous key piece. And and that was a guy that that, I think I brought something to Jason to get signed some paper up there downtown on the eighth floor.
00:45:25:18 - 00:45:44:05
Unknown
And Jason was he had just finished talking to Ron. Ron was walking this way. Jason start talking to someone else, and I'm like, and I was getting ready to just talk to you and give you something. I forgot what I brought you. And you're like, dude, go catch that guy. And I'm like, I don't know, this paper down, get the leave, go care.
00:45:44:11 - 00:46:02:08
Unknown
And I'm like, I turn around, I'm running through the glass doors. And literally he's already in that elevator with the doors closing. Yeah. I'm like, well, hold it, hold it. And dude, like, again, that's the good Lord because he, he had a courier pretend he never even heard me shot. Right. He could have just said heard me and said, screw that guy.
00:46:02:08 - 00:46:18:14
Unknown
Right. Whatever. But he then I seen that a foot come out boom. Right. So so I had from the eighth floor to this. I think it's the second. Right? He's parking it. So I already had six floors to literally give my elevator pitch. And luckily I had one of these right in my my bag. So I busted it out.
00:46:18:14 - 00:46:35:16
Unknown
I'm dropping stuff and, and, actually, I think I had to go back up after he left to go grab something. I dropped and I was so, so. But in those six floors, I was able to quickly give him a 15 second on what we're doing, you know, and, and then I, I think I came back up and I was like, Jason.
00:46:35:16 - 00:46:50:10
Unknown
I was like, well, who was that, by the way? Right. And then he told me his background. I'm like, oh yeah, okay. But then I was like, I'll never hear from that guy again because of the background you told me. And then three weeks later, he called me. He's like, look, I think you've got something here. I've read your patents.
00:46:51:00 - 00:47:08:15
Unknown
Let me get with with you guys and do some coaching on the group that I want to bring you to, or the number of groups. And that's how it started. And that would have never happened if it wasn't for you guys, you know, along with a bunch of other stuff. But I think there's something to be said, for, going after, you know, making the making the pitch, you just got to swing at it.
00:47:08:15 - 00:47:35:19
Unknown
So even if it's in the elevator. Yeah, exactly. So, what do you what do you think of something you learned about fundraising that that you really had to learn the hard way? Yeah. Again, just terms coming at you that are so not favorable to you and your team. And then how to, along with our attorneys, how to turn those terms around.
00:47:36:00 - 00:47:54:03
Unknown
Right. And maybe have them read, you know, send red lines back and have those terms come back to our favor. So that's been something that I don't. Yeah. I mean, it was definitely a difficult part of it because, you're you're just so hopeful and saying, you know, you've got this great thing going, you're building this team.
00:47:54:03 - 00:48:11:05
Unknown
And I mean, this is like a home run. You know, if everyone implements this drill bit and this is you're talking maybe trillions of dollars of savings, across the board. But it's also as but then it just comes down to this one little person that can say one little word to just you out the room right now.
00:48:11:06 - 00:48:30:00
Unknown
So roller coasters is really unexpected and. Yeah. And do you think it was matter of, I guess I never sat you down and said, here's, here's what a typical term sheet is, and here's, here's, a guide to the various terms. Right. That was kind of your first time having a face that as far as, yeah.
00:48:30:00 - 00:48:51:06
Unknown
Because the other businesses that we had are pretty much cash, you know, just coaching, getting paid, having assistant coaches or whatever else. It was pretty much having customers and having a monthly kind of like, you know, either, electronic draft or whatever, similar to how you guys have done some of your stuff. So that's been the experience. So this was truly the first go at raising capital.
00:48:51:06 - 00:49:15:13
Unknown
And I think hopefully by the end of this next week, we can proudly say we've raised 6.5 of it, in about 16 months. That's not that's not bad, you know. Yeah, yeah. So so if you could give any advice to people who are just starting to fundraise their first million, what would you tell them? Yeah, I mean, listen to this podcast that we just did.
00:49:16:00 - 00:49:36:11
Unknown
I think it would be, you know, don't take no for an answer. If you get a no, don't let it kill your your stride, you know, or your pride. You know, make sure you're tight, though, like, don't go in. And because in some cases, these big money people, you only got one shot with them, right. And and if it's a no, it's probably, you know, forever even if you come in the next year and say, well, but we've done this.
00:49:36:11 - 00:49:59:22
Unknown
Great. Like if you said note about something, you probably feel some type of way about that and you probably will forever unless some drastic changes happen. Right. So knowing that having your slide deck tight, having the proper team members at the proper meetings, you know, having a solid financial model in place if you're already running your product or service and getting generating revenue, having the data to back that revenue.
00:49:59:22 - 00:50:16:09
Unknown
So having a solid data room with a data stack, right. In our case, it's runs right every run. How much depth in depth out is that better than that? Dude. Right. Or and then the speed rate of penetration is that higher. Right. And then when you pull the bid out of the hole oh this way. How does that thing look right.
00:50:16:09 - 00:50:36:17
Unknown
Does it look like a virgin or is it tore up to where you can't use it anymore. Right. And because of the heat rejection, the cooling that we bring with our technology, in a lot of cases we're checking those boxes better than than the competition. But one other thing I would like to add, I know we're probably close to the end about raising is, Mr. Trump, or whoever the leaders of the.
00:50:36:17 - 00:50:55:11
Unknown
Do I know Mr.. Chris. Right. And those folks, a grant, you know, a government grant, it would really be a great, great, direction for us as well, because, you know, again, this thing is made in the USA, right. Fully and completely by, in some cases, spending more, more than we could in other places.
00:50:55:11 - 00:51:19:15
Unknown
So to get an opportunity to have a product that's a game changer in drilling in oil and gas, then have it come from our, you know, good old hometown and state of Houston, Texas, in, in the US. You know, this is in our not just opinion, but we're showing with data. This is the best drill bit out there, and there's not a drill bit in the world that looks like this drill bit, right?
00:51:19:15 - 00:51:38:13
Unknown
You won't find it. Hopefully the IP holds up towards that station, will it. Well, and so, you know, I think that would be also a really good key step for us to take was, would be to potentially deal with the government or Doe. Yeah. And I think in the last 12 months we've had challenges around grants because a lot of the grants have been restructured.
00:51:38:13 - 00:51:59:15
Unknown
I think SBIR just got reauthorized. It wasn't available to you because that was a program that was I think Congress had to pass funding for it. And so, some of those programs are coming back. Yeah. But it is essential for a lot of early stage hard tech companies, because what I'm hearing is like having the data speaks for itself.
00:51:59:15 - 00:52:15:05
Unknown
It screams like you said, and you can't build the data. A lot of times for investors or for customers, unless there's a grant. Yeah. And and being able to find those are really important. And luckily we have some buddies who help with grants as well. So we tend to, refer people out. We don't we don't do that ourselves.
00:52:15:05 - 00:52:31:17
Unknown
But it's it's, an essential part of it. And I was I was looking at one company out of Canada. They had, $6 million of grants that was funded by the province of Alberta. Right. Wow. I think the province of Alberta, I think, might be the size of Rhode Island in terms of people. I hope I don't get any angry Canadian emails out of that.
00:52:31:17 - 00:52:50:08
Unknown
But in terms of like, population, it's a small, small company, obviously vast natural resources. And they're they're taking you know, some of the tariffs off of, oil to invest in technology. Yeah, yeah. And that's not something we necessarily, thought about in the same way. That would be tremendous. I think Alberta is actually a little bigger than what you're mentioning.
00:52:50:08 - 00:53:08:11
Unknown
It could. Well, this I only say because I've got half my family lives in Calgary, so they're gonna beat me over the head for not saying so, but but anyway, so but no, I see a lot of like a big. Oh, it's almost like Alberta is almost like the taxes of, of, Calgary. But that man, that would be an amazing, amazing, to get something like that.
00:53:08:11 - 00:53:28:09
Unknown
Like the Canadian government just helps you de-risk. De-risk so that other capital can come in and we can take that with the rest of the problem to have, which is a supply problem. Right. And the reason we're not able to, let's say, have lead times like a giant competitor of ours who's building thousands of these. Right. Worldwide is working capital.
00:53:28:09 - 00:53:43:12
Unknown
Right. So once we have the working capital in place, yes. We're not gonna just build and have things sit on the shelf, but we'll make sure we have purchase orders and contracts in place to run these bits and have them have the job once you get it on the rig. Right. If it ain't on the rig side. Right.
00:53:43:12 - 00:54:03:02
Unknown
You missed what this is saying. You miss 100% of the shots you take. Yeah. So it's like yeah that that yeah. We'll build bits. We'll make sure they're proper for the proper application and formation and then we'll, we'll get them there. Right. Every time I pull up. Marcus, we pull up to a rig site. That's the first thing you see in front of the company man's house.
00:54:03:02 - 00:54:23:15
Unknown
You know, in front of his trailers. You gotta, you know, you gotta, what do you call it? Marcus Allen about pallets. I forget the today. Oh, you got a pallet, full of drill bits, right? There's at least 8 to 10 bits. And a lot of times it's the same color. Right? Because it's the same company that that we all know, right?
00:54:23:15 - 00:54:40:06
Unknown
The big three, big four that do the best in that particular region. So you got a lot of reds, you got a lot of blacks and some, you know, Turquoises and and so now we're starting to see a lot a good reason to see greens on our. Yeah. See a green for keeping cool. No tendency green if. Yeah.
00:54:40:08 - 00:54:58:05
Unknown
No. Yeah. Go ahead and say thank you for for joining us. This is just really eye opening. And I know you're you're going to keep selling product. You're going to keep, building the business. And we're we'll check in with you in 12 to 18 months. Yeah. No, I'm super, super excited to follow your journey. I know it's just a matter of, sometime.
00:54:58:05 - 00:55:16:19
Unknown
And we're going to get some good news if you closing your own. And then we are looking forward to a big party. Yeah, well, you guys have been a big part of helping our success, and, we definitely owe you. And, we will continue to work together, and I would say to everybody watching and listening that, you know, energy tech cipher.
00:55:16:19 - 00:55:39:03
Unknown
Now, name change is, definitely a group to go to deal with, renown, to do business or help that can help you do business like you guys have helped us with raising capital, even with structuring contracts and writing grants and even operations, you know, because of the experience that you guys and your team bring. So I would definitely recommend working with these guys.
00:55:39:03 - 00:55:54:09
Unknown
Thank you. That's very generous. I mean, even if we can play a small role in helping you get to where you need to be, but even you heard it's such a small as it. Jason, go chase that guy. Yeah, a sentence, right? Oh, we changed the trajectory of our whole entire business. Oh that's great. Good. Well, thanks. Thank you so much.
00:55:54:10 - 00:55:55:08
Unknown
Thank you guys.