Next into the tank are best friends from los angeles with a solution to a cooking hazard. Hi, sharks. Were two sassy girls from l. A. chuckles im juli, and this is my best friend and business partner, ozma. We are seeking 50,000 for a 20 equity in our company. Our product is a neverseenbefore, revolutionary cooking Lifestyle Convenience product. One night, we were hosting a dinner party for our girlfriends. The main dish was fish. After dinner, the girls and i hit the town and headed to a swanky l. A. Lounge. Someone approached me and told me my hair smelled like fish. Ew i was mortified, so i asked the bartender for a second opinion, and sure enough, my luscious locks did indeed smell like our main dinner course. We knew there had to be a better solution to this common stinky problem. both so. laughter weve created the kookin kap. robert, singsongy dadun ozma, singsong tada barbara you gotta be kidding. mark oh, my lord. The kookin kap is so easy to use. Just put it right over your head. Twirl your hair up. No hairtying needed. And. both voila laughter both and one size fits all oh, god. Wow. The kookin kap is the modern version of the traditional chef hat that not only keeps the smell of food out of your hair. both it also keeps hair out of your food juli and its chic and comfortable. laughs the kookin kap saves any blowout and keeps your hair smelling fresh and looking like you just styled it. laughter robert whoo hair smell like crap . both get a cap kevin and robert wow lets have one on kevin here, please. Yes i think youd look pretty in pink. Let me try the pink one. I like the look. He wants the pink one. Yeah, i think youd look hot in pink. You guys are fun. Have you sold any of these so far . robert ah. We have sold 1,729 hats. Thank you, ozma. Uhhuh. In what time period . Just under one year. Oh, you look great in that cap. Yeah, it feels good, too. lori lets see, kevin. Yeah. Juli, make him take that off. Your sales are gonna go down. Ah we want them he looks like little bo peep. It does look like the cameras on him. Okay, so you sold a thousandwhat was it . 1,729 caps. At what price . At anywhere between 9. 95 and 12. 95. Juli, whats the name of the company . Kookin kookin kap. Its called kookin kaps. Kookin kap. Is it kookin karps or kookin kap . juli and ozma kookin kap. juli so in addition so why does it say karp . It looks like it. It doesntits not an r. It says kap kevin it says karp. Its p for kap. And whats your background . Well, so. We work for one of the Largest Financial Services companies in the world. Really . juli and ozma yes. Doing what . I actually work at ernst young as a manager in our advisory practice. Im a campus recruiter for our los angeles and san diego tax practice. Should i be concerned about the first thing i read in the label . It says, caution. Flammable. Nonflammable. No, it says flammable right here. robert scoffs it does. It says flammable. gasps no barbara yeah. They must so you have mislabeled, ths all. robert thats not good. That yeah, just like kookin karps. robert laughing no, its kookin kap. In addition to the laughs who does your spellcheck . So, juli and ozma, how are you selling these . Online . Yes. Were selling them online. So right now, were selling them online, direct to consumer. And what do they cost you to make . They cost us 3. 70. 3. 70. I love you say everything in unison and youre making them here . juli and ozma yeah. Where do you make big bucks in this . I would say either retail or on tv. Tv . Hang on . I wish there was a shark that worked on tv all the time. kevin i juli who loves to cook robert speaks indistinctly robert who could it be . You know what, guys . This is the perfect qvc product. Mark i hope lori carries it. I think so, too. But thats not me. Im out. Okay. Thanks, mark. lori ill tell you, i have one problem with it. And okay. robert what . Youre adorable, but somebody could take a shower cap and put it on their head, too. This is so much better. And stop the smell. And shower caps are actually flammable, when this is not, even though it says even though this says it is . But this is it says so no, its not, i promise. And the shower cap is actually not breathable. So whenyou actually will get sweaty. Thats the better answer. And your hair will get sweaty, um, so it actually just is not this you could wear for hours. Yeah. Like, you could cook an entire dinner party and wear this, and youll take it off but i like that youre inventing something. But, juli but i dont think theres an enormous need for this. When i invest in a product, i like something that solves a problem, and this is a problem, but i think its a small problem. Lori, it actually solves two problems. Not only does it keep the smell of food out of your hair, it also keeps hair out of your food. lori mnh. Ahh so its also a contamination issue. Heres the thingi dont think if i were making fish at home, i dont think id be going out dancing righafterwards or Something Like that. Really . Well, even if you werent, you still wouldnt want the fish to get the smell to get in your hair for the next day. But couldnt you take a shower . You know, ive never really thought about it. Perhaps i have smelly hair. I cook most nights. I dont know. But. chuckling i just cant picture. Uh. Uh. Cooking with this on my head. laughs and by the way, i think you two are adorable. both thank you. But its not the product for me. Im out. Thank you. Thank you for your time. Ladies, i think youre two beautiful women, but when you put the cap on. barbara laughs you look like 80yearold grandmas. No so im not sure i want to buy something for my wife, or my wife wants to buy something. Thats gonna make her look like an 80yearold grandma. Only when shes cooking. Ozma, iim out. Okay. I love 80yearold grandmas, but i dont see the real need for this. Im out. I think its ironic. laughter that the only person who is still in has no hair. All right, lets talk numbers. Yes. Yeah, you know, listen, ladies. laughter the whole kookin karp thing is crazy. Ii think youre cute, but this is not a business, its a hobby. Come on. Just ask for her to give your money back. Ladies, youre losing him. No, no, no wait, wait, wait. We can sweeten the offer sweeten the offer we can sell anything. lori no, dont. We can sell Peanut Butter and jelly in a steakhouse. We can sell kookin kaps to the masses. Come on oh, my goodness. Mr. Wonderful. Absolutely not. Im out. laughter you guys keep thinking, though. Congratulations, guys. Good luck. Thank you. Thank you for your time. Thats awesome. barbara pleasure. Bye. lori bye. They brought a smile to my face. Next i and get dinner delivered. Nner. To those caked in flour. Coated in dust. Even covered in lava. To those who are up all night. And up all night. To all the beautiful mess makers. Keep it up. With delta touch2o technology, you can. See what delta can do. They speak louder. We like that. Not just because were doers. Because were changing. Big things. Small things. Spur of the moment things. Changes youll notice. Wherever you are in the world. Sheraton. Entrreneur from sacramento, california, with a better way to cook a favorite fast food. lowkey voice hello, sharks, uh. My names chris johnson, and im here. excited voice boom hello, sharks, my name is chris johnson. Oh, my god. Wow and im the creator of the rapid ramen cooker, the worlds fastest, easiest, and healthiest way to make ramen noodles in the microwave. Im here seeking an investment of 300,000 for a 10 equity stake in my company. Now, many of you are familiar with these ramen noodles. Theyre an undisputed college staple, and the annual consumption of these packets is 95 billion worldwide. However, surprisingly, these things dont have microwaving instructions, requiring you to make it on the stove, which is a hassle. Thats why i created the rapid ramen cooker. The rapid ramen cooker is a squareshaped bowl in the same exact dimensions of a block of ramen noodles. All you do is you take the ramen noodles, put it inside the cooker, add water to the water line, pop it in the microwave for three to four minutes, and it makes perfect ramen every single time. So here, i got some cooked ramen right here. Look how perfect the ramen is. Mmm, mmm, mmm. Stovetop quality in less than half the time. My goal is to put rapid ramen cookers in the hands of every single consumer of ramen noodles worldwide, and im looking for sharks to join me in that mission. Im gonna give you guys some, uh, ramen cookers so you can try it out. Youre not gonna give us the noodles to go with it . Absolutely. Im gonna bring some noodles to you as well. Thank god. I dont have a microwave here, though. There you go. laughs thank you. It doesnt come with noodles . chris it doesnt come with noodles. Its just a cooker. And so you can see how beautifully cooked. Let me taste that guy. Im hungry. Those ramen noodles are. Why not just do it, i mean, the oldfashioned way . Take a cup, put some water in it, you stick it in the microwave, your pour the noodles in, you eat it, you go to sleep, you wake up, recover from your hangover. laughs ive been making it in the microwave all my life. Put you never get the stovetop quality taste. Sometimes youre drunk. It doesnt matter. It does. It does matter. Other bowls just heat excess water. And theyre not specifically designed to cook ramen noodles. Help me out here. You got a 300,000 ask, and i get 10 of the rapid ramen cooker. So the immputed values 3 million bucks. Correct. Now before i put you in the microwave. laughs explain to me why that makes sense. Tell me about your sales and how much cash youve made. Absolutely. In the last three months, ive done over 164,000 in sales. Wow. How much do you sell the rapid ramen cooker for . Uh, it retails for 5. 99. kevin okay, and how much does it cost to make . About 75 cents. And its all online . You dont have any retailers selling this . Absolutely incorrect. We went from zero stores to over 2,500 stores in the last three months. Who are the stores . We are in raleys, albertsons, safeway, winco, heb in texas. robert how did you get into all those stores . Grinding, man. I just pick up the phone and call. Good for you. I love that. Chris, is that all you . Every single, uh, retailer that ive, uh, landed was all me. If this keeps going, why cant Somebody Just knock this off . Its patent pending. Whats patented . Its the reservoir design of a container that cooks ramen noodles. You seem very bright and very enterprising to me. Id like to hear about your background. Well, ive been an entrepreneur since i was 16 years old. At 16, there was nothing to do for teenagers, so i created dance parties. Charging 10 bucks a head, i was making 4,000 in just one event. At 19 years old, i had my own modeling agency. When i got out of college, i started my own Staffing Company. Uh, with zero revenue, did over a Million Dollars in less than 14 months. What happened to that business . That business is still rolling. Do you own it . I still own 100 of that business. You still running it . Well, what i did is i hired my longterm employee, uh, to run the daytoday operations of that company, and ive been focusing 100 on rapid ramen. To me, that suggests that all youve done is jump from quickie business to quickie business to quickie business, because either you lose interest or you cant run the business. Absolutely not, mark. With the Staffing Company, when we hit this recession, uh, it was the biggest hit myive ever experienced in my life. Fair enough. Look, i feel your pain, right . Everybody got hit. Continued to happen. Uh, Staffing Company has not recovered. But what i understood is that i could not parttime this thing. I had a huge opportunity here, so i put all my focus on rapid ramen. Whats your sales in the last month . About 80,000. And what percentage of that was through retailers . About 80 is retail. My projections with just safeway alone you know, just selling one a day. Right now in winco, were selling three a day, 21 units a week. You are . What does that look like for the whole year . For the whole year, werewere expected to do over 2 million this year. Okay, so somethings not adding up here. It doesnt compute. Yeah, im having a problem, too. If youre doing 80,000 a month with huge margins, you should be generating, you know, very quickly 300,000 in cash flow to reinvest in the business. Right now i have over 150,000 in receivables. But i look at our bank account. Itswere just turning through the pro through our inventory. So you need capital for inventory. We need capital for inventory. You need 300,000 right now . Based on our projection, we may even need a little more than that, but ii take it off the 300,000 because i do have receivables coming in. So your expectation is if i give you 300,000 today and you need another million tomorrow, im gonna fund that . I hope you have the wherewithal to do that. I think what happens here is you wanna run with this thing, sell as many as you can till you burn it out. Thats basically it. Well, thats not because there will be competitors that come in at a lower price and squeeze that margin down to pennies. Theres nothing proprietary about this. I understand you have a patent, but a small modification will do the same thing. You understand that. Which leads to the question, how did you get to your valuation . Were gonna do 2 million this year. You hope. Yeah, its hard to see i dont hope, mark. kevin well, of course he hopes. Imimyeah. You hope, just like when you had your staffing business. Im sure things were great, and you projected out a whole lot more. Just like when you had your model business. What youre really saying is your business is worth 3 million on what, 200,000 in sales . Well, ill tell you this. If i were offered 3 million today to sell the company, i wouldnt sell it, based on the growth that were having. If someone offered you 3 million today, you wouldnt take it . I wouldnt take it, mark. Ununundeniably, i wouldnt take it. Youre a fool. Youre a fool. I wish i had the courage. Mark, i youre a fool. Im out. I dont know if i like your plan to burn up all my cash in inventory. cause one day, what happens to products like this is, they stop selling. And whatevers sitting in the warehouse, you own it, and you gotta eat it. If youre gonna stay on your path, you need a big wallet. Happen to have one. chuckles all right . So heres an offer ill make for you, okay . I think it may be the only offer you get. I will give you your 300,000. I want 1. 10. Ha every time you sell one until i get my cash back, because i dont know how long its gonna take you to sell 300,000 units. And after i get my cash back, i get 50 cents in perpetuity. Chris, this products gonna last about two years, maybe three. What equity are you taking . Zero equity. I dont want any equity. That is a real offer, and i think that actually encapsulates the risk ive got here. I need to get this capital back before this little fad ends, my friend. Thats ill tell you, i think even for you, back when you were eating in college, they ate ramen noodles, and so hey, i ate ramen noodles. I get it. Yeah. But i didnt need to spend 5 bucks to get this bowl. I figured it out on my own. Well, i think that you are fantastic. I personally am concerned about somebody else trying to do this. Thats one of my worries for you. So im not going to personally invest. Im sorry. Im out. Ithank i appreciate you. Chris, i tasted this, fully expecting it to be mushy, because i have tried to save three minutes on many occasions in sticking it in the microwave, and it doesnt work. This tastes exactly the same as if i cooked it on the stove. But im not totally sold this is gonna make you a ton of money. Its a onetime sale. I feel badly saying no to you because i like you a lot. I feel like lori, for god sakes. I like you a lot. laughs but im out. Chris, i love the story how you got here. I love the fact you did it on your own. A guy offered to buy my company for 5 million. I thought it was all the money in the world. I came home. I told my wife im taking the offer. I had the papers, and my wife said, why . You dont believe in yourself enough . I turned the offer down because my wife believed in me more than i believed in myself. Im gonna start crying. And a few years later, i sold it for 100 million. Chris, my only issue with this is i cant get over the value of the Business Today robert, are we gonna hold hands and sing kumbaya here . 300,000. The business is not worth 3 million. Shut up, kevin. What is this . The business is not worth 3 million today. Help me get there. Kumbaya oh, stop it. Kumbaya kevin, give the guy a break. This is business get to it i know. Take it seriously here. This is business. This is the guys life. This is his life. Give him a chance. Every store that ive contacted, ive been able to get in, and theyre selling, and theyre moving product. Chris, i wanna be in business with you. Heres what im comfortable with today. Ill give you the 300,000 for 40 . Wow. Thats giving you a pretty good value for a new company, and really, im taking you at your word because i think youre gonna make it happen. So you have two offers now. Youve succeeded where many other people have not in shark tank. What are you going to do . Three sh lifeasking questions. Having new experiences. Are you ready . The key to a happy satisfying life is to always be curious. Jibo, how are you doing . Im great every moment is our moment. Are you enjoying this . Its been such a whirlwind. I want to get to know people and understand their ideas about everything. So you can too. Technology empowers us it pushes us to go further. Special olympics has almost five million athletes in 170 countries. The microsoft cloud allows us to immediately be able to access information, wherever we are. Information for an athletes medical care, or information to track their personal best. With microsoft cloud, we save millions of man hours, and thats time that we can invest in our athletes and changing the world. But chris has two offers 300,000 for a royalty of 1. 10 per unit, which drops to 50 cents once the investment is paid back to kevin. And 300,000 for 40 equity from robert. So you have two offers now. Uh, if you dont mind, id like to make a call and, uh you understand the nuances of both offers . Yeah, yours is to basically hook me around the throat, andand. laughter so im very clear about that. Ive been around a long time, my friend. Ive seen these fads come and go, and im not saying this will go soon, but i dont know. So im reflecting it in the offer. Hes taking out his risk preemie in the in the form of 40 of your company. If you succeed, thats a whole lot. So have some respect for money. Well, no, and iii appreciate it. Ive done it my way. Roberts done it his way. Now go make a decision. Okay. Thank you. Ill be right back. I think youre asking for too much. We gotta get some cash along the way. Come into my deal, and ill drop the royalty in perpetuity down to 40 cents, but im keeping it a buck 10. I like the fact youre getting cash along the way. Yes. Uh, mr. Wonderful offered me a deal that wasnt so wonderful. chuckles uh, as far as a royalty that exceeds the cost of the product, uh, but no equity. And then, um, robert offered me 40 of the company, which just is outrageous. Kevin, lets lower the dollar amount per product and lower the equity. Okay, were gonna drop it down to 70 cents . Lets take it to 25 equity and lower it to 75 cents. Okay, and whats the perpetual royalty . Is that gonna be theres no perpetual royalty . Well, thats the equity. Right. No, no the equity you want the equity and you want the royalty. Yeah. I think theres a lesson. Leaving the tank lets the water swirl. All right, uh, thanks for waiting. Mr. Wonderful, as far as your thatthat offer well, i wanna tell you, robert and i decided to get together, because we see merits in both of our deals. robert yeah. I like the idea of getting some money along the way, but i like having equity also. So heres the good news. Were gonna go in it together. Weve lowered the equity amount down to 25 , and weve lowered the royalty to 75 cents until we get the 300,000 back, and after that, 25 cents off every box. It reflects the risk in your deal, and it provides you with the capital you need, and one way or another, youre gonna have to capitalize this business. Well, well, it siphons the cash as were growing. Letlet me ask a question. Tell me what you think is the most realistic number that you can do for the 300,000 . For the 300,000, the the worst i would go is 20 . Okay, but, chris, i look at the risks. I want my capital back sooner than you wanna give it to me. So im putting a mechanism in place, and robert and i both agree. I wasnt hot on the equity. He is. So weve married these two offers together to reflect both of our interests and provide you with the capital you need. Yes or no, chris . This is your moment. Yes or no . I cant accept that offer at 25 . Chris, ill give you the 300,000 that youre looking for. I thought you were out. Nope. Im gonna do it a little bit differently. Im gonna be creative, unlike some of these guys. 150,000 for 20 of your company for the equity, and im gonna give you 150,000 loan. And im gonna price it the same i do for growth loans for all my shark tank companies. Right . Which is significantly less you know what . The offers are practically identical. No, theyre not. Because youre paying back the debt that were providing you in a different way. Chris, the beauty of the deal with royalty its just a different form of interest. Completely different. You know were highly motivated to give you more money. Completely different. And you have no debt. You only pay it on the success of sales. No, heres wherechris. You have debt. You owe this guy 150,000. That is forever until you pay it back, and if it doesnt work out, he owns the rapid ramen cooker. Thats the evil of debt. But the difference the difference is if your growth is explosive, like you think its going to be, that royalty becomes much more expensive than the debt. Look, chris, we gotta make a decision. Uh. Mark, if you could do the 150,000 loan, and the 150,000, uh, equity for 15 , you have yourself a deal. And you know, im gonna be the one grinding, im gonna be the one making it happen. I will outwork every single one of your entrepreneurs. You know what . Lets go. Awesome. barbara good. lori good deal. barbara great decision. Lets go. Good work. Appreciate it, man. Congratulations. Thank you. Thank you. Thank you, guys. Congratulations. barbara good luck. Uhh making a deal with mark cuban is huge for me, cause i know to build wealth, its all about proximity. You hang around four broke people, youll be the fifth. You hang around even just one billionaire, that proximity can impact your life. laughs im very happy about that. Courage. Bis is a familyrun Clothing Company with seven Stores Across the country, but they have stumbled badly over the past two years. Lousy decisions. Noemi i never approved this design. Nicolas you approved this. Stephanie are you kidding . Lemonis . And poor execution. I just see cash. Have put the company in a deep financial hole. Thats created a ton of family drama. Nicolas you want all of the accolade without doing any of the work. Lemonis if they cant figure out a way to iron out their differences, there wont be a business to fight over. Stephanie nicolas, i dont want him to walk out that door because of this. Lemonis my name is marcus lemonis, and i fix failing businesses. I make the tough decisions