Inside Nike's New Collab: A High-Tech Recovery Boot

Forbes

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  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  Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes:  http://forbes.com  Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Transcript

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.

32:41Thinking 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.

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