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VIDEO: Interactive Organics CEO introduces Premium Vaporizers with Smart App Capabilities

MidasLetter Live
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Interactive Organics CEO Brent Skoda walks-through their premium vaporizer, a device which allows for complete control over the vaporization of natural health products controlled by mobile devices and smart app technologies. First versions of the U.S. and European patented device have already been introduces in 185 dispensaries aiding with users energy, sleep, weight loss, and focus. Future versions of the premium vaporizer will give users full control over their dosage preference and separate out the CBD, THC, and terpenes into different chambers to be controlled and released at the exact specification of the user. Smart apps such as Refill and Doctor will allow dispensaries to distribute products automatically and will communicate with doctors to allow for dosage updates and prescription renewals digitally. Interactive Organics will bring their vaporizer to the Canadian market and are becoming a publicly traded entity on the Canadian Stock Exchange in the near future.

TRANSCRIPT:

James West:    Hey, welcome back to Midas Letter Live, everybody. Today I have a special guest. This is a private company – an early-stage opportunity teractive  the cannabis sector, but I was so impressed that I invited my next guest, Mr. Brent Skoda, to join me. He is the founder and CEO of Interactive Organics Corp. Brent, thanks for joining me today.

Brent Skoda:   Hey, thanks for having me, I really appreciate it.

James West:    What does Interactive Organics do?

Brent Skoda:   So we got in the vaporizer game let’s see, 8, 9 years ago. Used to live and work in China, and used to manufacture LED products a number of years ago.

James West:    No kidding. In China?

Brent Skoda:   In China. So, Shenzhen, China.

James West:    Really? How long did you live there for?

Brent Skoda:   About a year.

James West:    Really?

Brent Skoda:   About a year, constant. So it was a great experience.

James West:    Yeah, no doubt.

Brent Skoda:   Learned all about doing business in China.

James West:    You speak Chinese?

Brent Skoda:   Just a little bit.

James West:    Okay. We won’t test you out on that, because I speak zero.

Brent Skoda:   Yeah, still learning.

James West:    Yeah, right.

Brent Skoda:   So eight, nine years ago, when I was manufacturing LED products, I had an opportunity to go see what was the largest manufacturer of vaporizers, 8, 9 years ago. This we’re talking pre-electronic-cigarette era, so no one really knew where the technology was going. But when I went in the factory that day, it was incredible, and you know, I was looking at the demand at the production level, and I was blown away.

James West:    Really.

Brent Skoda:   So the more you do business in China, what you’ll quickly learn is, they rarely do business on speculation. So if you’re looking at a factory, and they’re awfully busy, that means somebody placed that order, and they’re paying for it.

James West:    Ah. So they’re not, they’re kind of not the people to build inventory?

Brent Skoda:   No. No.

James West:    Interesting. Get it in, get it out.

Brent Skoda:   Right. So I looked at that and I said, you know what? There’s definitely an opportunity here, and my background is kind of health and fitness, you know, that kind of thing, so I understood what was so disruptive about the electronic cigarette compared to the traditional combustible cigarette that everyone –

James West:    Reefer.

Brent Skoda:   Yeah. [laughter]

James West:    Right, okay.

Brent Skoda:   Yeah. So basically, I looked at it and said, you know what? Rather than vaporizing nicotine, why don’t we, you know, vaporize natural health products? So that’s what got me started, and then back then, there was a product called Five Hour Energy that was awfully popular.

James West:    Billion-dollar company.

Brent Skoda:   Yes. And so I looked at it and said, you know what? I think we’ve got a better mousetrap. And you know, is it possible to vaporize caffeine? And then, ingredients that you would normally find in –

James West:    So when you say vaporize, you don’t mean ‘burn’?

Brent Skoda:   I don’t mean burn. So big, big, big, big difference. So we actually had to get into the mechanics of how these devices work, because oftentimes most vaporizers honestly aren’t vaporizing the product; so there’s a coil suspended in the liquid, and what it’s doing is, it’s actually burning the liquid. So technically, they’re still combusting the material. So we had to develop a ceramic chamber that we’ve actually worked a patent, and what it does is, it actually heats the material inside of the device to actually a medical grade. So it’s very, very different than – and when you taste it, and when you use it, compared to probably the average pen you’d pick up at a dispensary or what have you, you’ll notice immediately.

James West:    Really? You did bring one with you, did you? Crossing borders, I know.

Brent Skoda:   [laughter] We tend to be careful, but next time, I assure you I’ll have one here for you.

James West:    It’s legal now, apparently, at least this side of the of the border! So then, that’s interesting. So essentially the idea in delivering a premium experience to a cannabis user who doesn’t want to have smoke in their lungs is to heat it very carefully to a maximum temperature with consistency that you actually decarboxylate the –

Brent Skoda:   Wow!

James West:    Even as I’m saying it, I’m not sure if I’m saying it right, but to decarb the resin and to release the THCs into your system?

Brent Skoda:   Yes. It’s a lot like, if you were a kid, maybe you had the Vicks Vapour products or anything like that – you’re truly actually heating the material, you’re honestly boiling the material, so you’re not burning it. It’s a big, big, big difference.

So that’s how we got started, and then, you know, fast forward to today. So we actually have a granted patent for vaporizing inhalable compositions that contain caffeine, which is a big deal. We have a patent on the actual shape of the devices – it’s actually a lot harder than you might think to change that pen-look.

James West:    Yeah!

Brent Skoda:   And then create something cool, compact, carry with you, you know, so on and so forth. So when you see the device, you’ll notice it looks a bit different. But as we got into manufacturing these products, there’s been a lot of excitement, even around our initial caffeine product, which we’re expanding and we’re doing energy, sleep, weight loss, focus, kind of like the Vitamin Water of vapour, more or less, if you can picture that.

James West:    So it’s not just for cannabis anymore?

Brent Skoda:   It’s not, but believe it or not –

James West:    Cannabis is the big market.

Brent Skoda:   It is, and that’s what got us into it. So, you know, eight years ago we’re manufacturing vaporizers, we’re getting really good at it, and you know, funny thing is, if you can picture this: so literally sitting at the factory in southern China and we’ve got a bunch of engineers, my whole staff’s there, and we’re picking out the components we’re going to need. We have a battery, we’ve got an LED, we have molds, you know, so on and so forth. I’m sitting there, I’m looking at it, I’m like, oh my goodness. I’m like all right, so we have a battery source…so my background is computer programming. So I’m looking at the components that are on the table and I’m like, oh my goodness! So we have a battery source, we have an LED, we have a pressure sensor, so you know, and I’m sitting here thinking, well, I wonder if I can connect it to the Internet?

So, go back 8 years, if you could remember that, right? Seems like a lifetime ago.

James West:    I can’t remember last night, let alone 8 years ago. [laughter] Okay, I’ll try.

Brent Skoda:   Me too. So you go back 8 years, and you know, so I’m sitting there, we’re looking at all the components, and I look at the engineers and I say to them, I said, you know, would it be possible to incorporate Bluetooth or Wi-Fi into the device? I said, I know the chips are large, but can you do it?

Everyone’s like, of course, why couldn’t we? So that was a light bulb moment. So once you connect these vaporizers to the internet, you can do anything you want. Control them, monitor them, regulate them, automate refills, you know, all kind of things.

James West:    Can you actually download a refill off the Internet?

Brent Skoda:   You can.

James West:    What?

Brent Skoda:   You can.

James West:    Come on.

Brent Skoda:   Hold on, hold on. So that was the light bulb moment. And then, so we went on and we created this really cool – you know, we have several generations, so picture like iPod to iPhone 10. So we created this whole generation of really, really, really cool, advanced vaporizers. This isn’t a product coming out of China; this is a product coming out of North America.

James West:    Dallas, Texas.

Brent Skoda:   Dallas, Texas. [laughter]

James West:    Dallas, Texas, where they like things big, apparently.

Brent Skoda:   Right.

James West:    Cool. Okay, so where are you at in the development of this thing now?

Brent Skoda:   All right. So the first versions, those are, you know, the energy, sleep, weight loss – those are done, those are ready to go, so we can manufacture right now 1.6 million units every 45 days.

James West:    And are you selling them in stores?

Brent Skoda:   Right now. So we’re in about 185 dispensaries.

James West:    Wow, okay. So you’re making money, this isn’t a startup.

Brent Skoda:   No, no, no. Yeah, so we’re rolling.

James West:    How much money have you put into this thing?

Brent Skoda:   I put in just over $4.4 million USD.

James West:    Wow, congratulations. Good for you, boy. That’s –

Brent Skoda:   We believe in it.

James West:    Obviously! Okay, so you’ve got a presentation with you; why don’t you run us through a few of the slides?

Brent Skoda:   It’ll help a lot, because honestly, the visual aspect of it, it’ll, you know –

James West:    For sure. Normally we don’t allow a Power Point to be brought into this thing, but yours doesn’t look like a Power Point.

Brent Skoda:   Understood, understood.

James West:    The images are really cool. So, run us through it.

Brent Skoda:   All right. So here we go. All right, so this was when I talked about changing the actual shape of the device, it was actually difficult. So if you could picture Chapstick or lipstick, it’s about the same size as one of those dispensers. So it’s not huge, you can carry it with you. We have a granted patent in the US, we have a granted patent in Europe. Works phenomenal. When you use it, the LED at the end lights up. It has 100 uses inside of it; you throw it out. As we were making this product, we got really good at making vaporizers.

James West:    Okay.

Brent Skoda:   And so, I mean, this is a point of sale. This particular application is something that we compete with the Five Hour Energy that’s out there, so this would be next to your point of sale as you’re checking out, gas station, convenience store, you know, so on and so forth.

James West:    And I can even get it in the colour-coordinated outfit that I’m wearing.

Brent Skoda:   You can. So now this is when we kind of got cool, right? So when we got into the whole THC, CBD world, as it became more popular, it became legal, we were already manufacturing vaporizers. So we were way ahead of the game, all right?

James West:    Yeah.

Brent Skoda:   So what we did is like, all right, what can we do that’s cool? So when you use this device, what happens is, the entire unit lights up. It’s transparent. So it’s kind of like Steve Jobs, one of his original computers, you know, you could see through the hard drive, it was awesome.

James West:    Right, right.

Brent Skoda:   So you know, we took a note from Steve, there.

James West:    So people are going to want to be seen using these things.

Brent Skoda:   You know, funny thing is, too, and this is something that you know, once you use it, you’ll understand; but so, when you change the shape of the device and you go to a nightclub, you go out, you hang out with friends, when it looks different, guess what happens? Your friends ask you what it is.

James West:    Right.

Brent Skoda:   Right? So it’s a really cool –

James West:    What is that? What is that thing? I know what that is! Get me one!

Brent Skoda:   Right? It’s a really cool phenomenon.

James West:    No, that’s fantastic.

Brent Skoda:   So then, you know, as we were making these, we decided, all right, now we’re starting to understand how this game works. All right, we get it, we understand what we’re doing, and then, you know, my background, again, is computer science, so I’m like, you know, wouldn’t it be cool if – so like, we never actually manufactured this, this is a prototype, but like, what would happen if we connected it to the internet, right? So we created a little smart adaptor, and started to think about, you know, how cool it would be if a vaporizer was connected to the internet. And so, full digital control over the vaporizer, and then you can automate refills, you can control dosage.

And then, you know, if you’re an avid internet user or what have you, you enjoy music, we saw this vision to create a product that was a lot like Spotify, okay? So picture if you load up Spotify and you see, you know, Top 50 charts, trending artists, you’re like, what? It’s really cool, it’s an interesting way to discover new music, you know, share music, enjoy a social experience with your friends. So we started heading in that direction with, how does that apply to cannabis?

James West:    Right.

Brent Skoda:   How does that work? So, you know, we started to really think about that. So we’re integrating reviews, you know, so on and so forth, and then what we’ve come up with is the world’s first smart dispenser platform, okay? So there isn’t a single player in the game that can touch this. Not one.

James West:    Wow. Now this is what got me excited, too.

Brent Skoda:   Right?

James West:    So, what are we looking at here?

Brent Skoda:   All right, so this is the world’s first smart dispenser platform, all right? And it’s about the fourth of the size of an iPhone 10, if you can picture that, or even a Samsung Galaxy, you know, for Android friends.

James West:    So, it’s small.

Brent Skoda:   Yeah, it’s relatively small. And so it has a touchscreen on it, there’s apps on board. Initially, it’s our apps, pre-loaded, so again, we’ve got to travel back in time to really put this in perspective.

James West:    Can you order food on it?

Brent Skoda:   Technically, yes.

James West:    You’re going to get the munchies. I love it.

Brent Skoda:   Well, if you can fast-forward back in time when you first got your, you know, your smart phone, you had your basic apps that were loaded on board, and then of course you go to the App Store and then there’s increasingly more apps you can download and enjoy. So loaded on the device we have the basic apps that you would need to get started, and of course, there’s an App Store as well that you can enjoy.

James West:    Okay.

Brent Skoda:   So, the first couple of apps loaded on the device, the first one is refill. So what it does is, it pairs you with the dispensary or the distributor that you buy your product from.

James West:    James is running out of weed – get here fast!

Brent Skoda:   It’s kind of a big deal. So you’re not getting pressured as a customer to buy more product than you need, okay?

James West:    But also, you’re never going to run out.

Brent Skoda:   You’re never going to run out.

James West:    Beautiful.

Brent Skoda:   Right.

James West:    Wow, I don’t know if that’s a good thing or not, but it sounds pretty good.

Brent Skoda:   Right? That’s the first app; second app is called Doctor. So, for like our medical applications. So you can literally –

James West:    Your doctor can say, “Hey, you’re smoking too much of that!”

Brent Skoda:   Exactly.

James West:    “Turn down the dosage!”

Brent Skoda:   What we’re finding is, this is a very serious medical application, so, like, you know, epilepsy is a major issue, and they’re using cannabis and CBD to help solve that problem. So picture a situation where a mother maybe is with her daughter, or what have you, and, you know, her daughter is having, is beginning to have some issues, some medical challenges. Well, they can immediately get the doctor online, and rather than having to go back in the doctor’s office and request, you know, a different dosage or what have you, they can do it immediately.

James West:    Wow. So she communicate with the doctor, receive an update on the dosage –

Brent Skoda:   Digitally update your prescription.

James West:    And the machine adjusts the configuration on the spot?

Brent Skoda:   Yes.

James West:    See, that is just so out there, it’s amazing.

Brent Skoda:   It’s not out there.

James West:    What I mean is, it’s out there, because in terms of there’s nothing like it out there.

Brent Skoda:   Right, of course. The hard thing is, and my big thing is, once you put a screen on these devices and connect them to the internet, the scale in terms of what you can do, it’s next to –

James West:    You can get high and play video games, order food and get refilled all in one.

Brent Skoda:   If you want to, you sure can.

James West:    Basically, give a guy one of these, he’s never going to leave his room. He’s never going out of the house again.

Brent Skoda:   Right, right. So then, most of the coolest thing that we’ve come up with, so the third app on here, and then we’re leaving it up to developer’s imaginations, so we have an STK, they can get on top of it, you know, they can create all kinds of cool apps, they can integrate it with music, you know, media experience, whatever. So there’s four chambers on this device. So now, what I want to really stress is the fact that this is a smart dispenser, all right? Vaporizers are cool right now, and they’re going to be cool for a long time, but what folks are going to realize is that it may not be the best thing to vaporize, you know, the THC or cannabis or what have you; it may be better to spray. It may be better to release a liquid or a softgel or whatever. This can do all of that.

So the attachment that you’re looking at that’s on here, it’s an accessory.

James West:    Okay.

Brent Skoda:   So, you know, depending on sort of what you’re trying to do, but what this device can do is, because it has multiple chambers, it can create digital flavours and digital products, which is so cool.

James West:    So it’s like a 3D printer for ingestible compounds?

Brent Skoda:   It is. You’re exactly right.

James West:    That’s really cool. What’s in those four chambers that we’re seeing there right now?

Brent Skoda:   All right. So inside of those four chambers, so you know, as the cannabis experts know, when you extract the oil of the concentrates, oftentimes you kill off the terpenes, which is sort of the natural flavours. So and then what happens is, they’ll reintroduce the terpenes in the manufacturing process to get some flavour back in the product.

James West:    There’s a lot of crappy tasting vapes out there, I can tell you that.

Brent Skoda:   Yes, yeah. So what you can do here is, you can isolate, you know, different materials inside of different chambers, and then, during consumption, you can automate when those chambers are fired. So for example, in Chamber One, we can isolate pure THC distillate, all right? It’s really not going to taste like much, but it’ll get you high.

Chamber Number Two, we could isolate organic raspberry terpenes.

James West:    And you’ve got a great flavour.

Brent Skoda:   Right. Chamber Three, you can isolate CBD.

James West:    I’m going to relax, now.

Brent Skoda:   Right. And then Chamber Four, you could isolate nicotine, you could isolate, you know, lemon –

James West:    THC!

Brent Skoda:   THC.

James West:    Zowie!

Brent Skoda:   Whatever it may be. So picture this: the chambers on here can be controlled around any pattern around time and temperature, all right? So if you can picture this, all right? You know, let’s say millisecond one through three, as you’re consuming the product, you’re firing the distillate, all right? Millisecond three through six, you leave on Chamber One but you turn on Chamber Two, all right? So that’s your organic raspberry terpenes. And then Chamber Three, right, you turn on the CBD, so a millisecond nine through 12.

James West:    So this is one of the biggest problems with the concentrates is that they separate out the CBDs and the THCs and the terpenes. You lose the entourage effect, and you end up with this goofy high that you’re like whoa, I’m high, but I don’t feel that great. So, this is amazing.

When is this – I mean, Canada just became the first G7 country in the world with a Federal recreational policy.

Brent Skoda:   Look, I like the United States, but I love Canada, all right?

James West:    You may shake my hand on that. But is this – I mean, is this something that you can deploy now? I mean, if Canada makes this kind of a thing legal, and I couldn’t see why they wouldn’t, because one of the primary concerns of all of the skeptics is titration, and this clearly addresses that in a most precise digital fashion –

Brent Skoda:   It does.

James West:    Like, you could almost –

Brent Skoda:   And on top of that, you know what we did when we were developing the product? We actually said, you know, if I was a regulator, what would I want to know about what’s going on in the industry? So you take a regular vape pen or a product you buy at a dispensary, you know, what have you, anywhere in Canada – no one actually really knows what happens to that product, once it leaves. It gets consumed at some point.

James West:    Right.

Brent Skoda:   But how quickly, what’s happening, where, you know, that sort of thing? So everyone in the industry is talking about seed-to-sale data, and the government is worried about that. They want to know what’s going on, you know, so on and so forth. So what we actually are able to do is, we’re the only player in the game that has after-sale data.

James West:    Wow. Consumption data.

Brent Skoda:   Yes. Where, how often, by who, you know, so on and so forth.

James West:    Wow.

Brent Skoda:   So we’ve got all that information.

James West:    Can you put Tindr on there, or Grindr?

Brent Skoda:   You can put either one and have at it. [laughter]

James West:    Okay, this is getting out of control. All right, so this company is private right now, correct?

Brent Skoda:   We’re private right now; we’re going public, so we’re going public on the Canadian Stock Exchange.

James West:    Oh, very cool.

Brent Skoda:   We’re very excited about it. We’re ready to rock and roll.

James West:    Well, Brent, this is incredible. This product is one of the few things I’ve seen in the space that actually excites me. I mean physically, I’m excited. And I can’t wait, and thank you so much for coming in and sharing this story with us today.

Brent Skoda:   Hey, really appreciate it. Thank you for the time. Thank you.

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