After Anna Skaya presents her Basepaws DNA testing kit to the Sharks, she begins fielding various questions from the panel. Through their exchanges, she reveals that each kit costs $25 to produce and retails for $95. Over the course of the 10 months it had been on the market prior to appearing on "Shark Tank," Basepaws sold 2,500 units for a net revenue of $200,000. Its total revenue for that year she estimates will total $400,000. Furthermore, in the company's future, she foresees selling kits that can test dog and possibly even horse DNA. While two other dog DNA testing kit companies exist, she claims hers sells for half the price of the competition.
When it comes time to talk numbers, Kevin O'Leary kicks off negotiations by offering Skaya's desired $250,000 for 8.3% equity and 1.7% in advisory shares — essentially a 10% stake. Skaya claims that other investors have offered that same sum for 5% of her company, so she opens the floor up to the rest of the Sharks before responding to O'Leary's offer. Lori Greiner, Daymond John, and Mark Cuban all pass before Robert Herjavec proposes the same deal as O'Leary. Skaya then asks if Herjavec and O'Leary are interested in a joint deal. They offer to split the $250,000 and 10% between the two of them and Skaya accepts, receiving her desired investment and the advisership of two sharks.
