|
A Wealth of Investor Resources |
|
AIA Accredited Investor Association |
|
Free Membership |
|
o |
RocketFuel Blockchain, Inc. (the Company)
offers a blockchain-based payment solution for eCommerce merchants that
allows them to instantly accept cryptocurrency and/or cash transactions (via
bank transfer) without being subject to chargebacks
and high transaction fees imposed by credit cards. The shipping address is
also embedded in the data delivery to the merchant. |
|
o |
The checkout process is
accomplished via a distributed ledger (blockchain), eliminating the need for traditional
payment and checkout infrastructures. Each unit of value can be transferred
only once, and all transactions can be verified and audited. eCommerce
merchants can receive the payment in fiat currencies (e.g., USD or EUR) or
cryptocurrencies. |
|
o |
The Company is working
toward embedding its streamlined checkout process into website advertisements,
opening up significant new sales channels to eCommerce retailers. |
|
o |
Company estimates that the
current eCommerce market is $3.5 trillion in size (14% of total commerce) and
that there will be about 200 million crypto wallet holders by 2023. A growing number of eCommerce and retail
merchants accept payments made in cryptocurrencies. |
|
o |
There are many competitors offering online payment
solutions (i.e., PayPal, Stripe, Amazon Payments, WePay, Bitpay,
Due, Authorize.net, Dwolla, Payoneer,
Payza, and Apple Pay), but only some offer bank
transfers or cryptocurrency payments. The RocketFuel
one-click user experience should help drive adoption of crypto as a payment
method. |
|
o |
The checkout experience is consumer friendly,
requiring just 1-3 clicks. The consumer provides personal information to RocketFuel one time, and there is then no need for a
merchant to require new forms or to create new accounts, usernames, or
passwords. |
|
o |
RocketFuel is not an eWallet and
holds no funds. It triggers payment to the merchant from any cryptocurrency
wallet already held by the consumer or any of his bank accounts. The Company
never takes possession of any consumer funds. |
|
o |
Consumers
consider data security to be of key importance. RocketFuel
allows consumers to retain control over their personal data, entering it only
a single time. This minimizes the chances of third parties selling or
otherwise misusing the information. There is no exposure of the spending
authority of the consumer. The technology is designed to be compliant with
GDPR and other regulations to protect consumer data. |
|
o |
A modern, simplified payments system with low
costs, secure immediate payments, and elimination of fraud and chargebacks. RocketFuel helps to minimize cart abandonment because
there is no need for a consumer to provide detailed personal information to
the merchant or for the merchant to re-direct the consumer to a third-party
payment platform. |
|
o |
Merchants have no need for investments in fraud
prevention tools. |
|
o |
A highly automated order fulfillment process.
Shipping information is encoded into the checkout system. |
|
o |
The
Company continues to develop capability to integrate buy-it-now and checkout
into eCommerce ads, thereby helping to boost impulse purchases and conversion
rates. The browser will have no need to leave the originating website to
process payments or provide shipping information. |
|
o |
Management plans to license the technology
eCommerce merchants and others. |
|
o |
The travel industry is the initial target market,
including travel merchants, web platforms, and blog sites. There are numerous
inefficiencies in existing payment systems, resulting in high costs and
delayed payments. |
|
o |
On
December 8, 2020, RocketFuel announced that two
travel companies, Skytours (a 35-year-old European
travel company working with more than 100 airlines) and Militaryfares
(targeting US military personnel for travel packages and tickets), have
chosen to implement the RocketFuel payment
solutions. Initial implementation will allow those customers to accept
cryptocurrency payments, and follow-on implementation will expand the range
of solutions to include booking tickets and processing bank payments. |
|
o |
In
May 2020, the Company filed three U.S. patent applications that management
believes covers and/or disclose the same subject matter as was disclosed in
five original patent applications that management believes have been
abandoned. The rights may be subject to any intervening patent applications
made after the dates of the original applications. The Company and its former
CTO and Board member have filed cross lawsuits relating to this matter (see
the most recent 10Q filing for details). |
|
o |
Peter M. Jensen, CEO & a Director, since
September 2020. Mr. Jensen has more than 30 years of experience in
technology. He has held senior positions with Oracle Corporation and Symantec
(NortonLifeLock) and was most recently CEO of Spanugo, a venture-capital backed provider of security
assurance applications that was sold to IBM in 2020. |
|
o |
Rohan Hall, Chief Technology Officer, has 33 years
of technology experience and is an expert in blockchain. He is also a serial
entrepreneur and Fintech founder. |
|
o |
Ben Yankowitz, Chief
Financial Officer & a Director, has decades of experience as a corporate
attorney. He specializes in securities, financial, and M&A transactions
and has law degrees from USC and Cambridge. On June 26, 2020, Mr. Yankowitz beneficially owned 5.4% of the common shares
outstanding. |
|
o |
Kurt Kumar, VP/Marketing and Business, had more
than 20 years of experience at Universal, Warner, Sony, ATT, and other
companies. He also ran Crypto conference BLOCK-CON. |
|
o |
Gert Funk, Chairman, is a serial entrepreneur and
blockchain expert. He has 16 years of experience as a payment service
provider for international eCommerce merchants. In addition to his position
as Chairman, Mr. Funk will continue to head the sales efforts to online
merchants. On March 29, 2021, Mr. Funk beneficially owned 20.7% of the common
shares outstanding. |
|
o |
Scott Klein, Chairman of the Advisory Board, has
20 years of experience as an information technology professional. |
|
o |
Income
Statements (9 months through 12/31/20 vs. 12/31/19) |
|
|
|
Research & development: 32,773 vs. 3,390 G&A expense: 544,014 vs. 102,417 Operating income (loss): (576,787) vs. (105,807) Net income (loss): (576,787) vs. (105,807) Earnings
(loss) per basic common share: (0.02) vs. (0.00) Weighted
average common shares: 23,344,000 vs. 22,731,847 |
|
|
o |
Balance
Sheet (12/31/20) |
|
|
|
Cash &
equivalents: 603,256 Total
current assets: 603,256 Current
liabilities: 87,553 Equity of
stockholders: 515,703 Number of common shares outstanding (03/26/21):
24,238,416 Stock options outstanding (12/31/20): 2,893,842
at a weighted average exercise price of $1.08 |
|
|
o |
In January 2021, a private investor exercised
warrants for 200,000 common shares at an exercise price of $1.00 per share. |
|
o |
On March 3, 2021, the Company announced that
Triton Funds, the largest student-managed investment fund in the U.S.,
committed up to $2.3 million in equity financing. The commitment is for up to
$1 million in common stock plus a warrant to purchase an additional $1.3 million
of stock. Once a registration statement covering the purchased shares becomes
effective, the Company has the option to consummate the purchases in tranches
through year-end 2022. |
|
o |
In addition to the Triton Funds commitment, the
Company raised $1.4 million from other private investors since September
2019. |
|
o |
As of March 29, 2021, officers and directors as a
group (5 persons) beneficially owned 29.5% of the common shares outstanding.
Four other individuals as a group owned an additional 47.6% of the shares. |
|
o |
The
Company is likely to require additional financing to fund its operations and
business plan. In June 2020, the auditors of the financial statements (Prager
Metis CPAs LLC) expressed a going-concern qualification. |
|
The eCommerce
market is massive and growing. Many existing payment solutions are based on old
technologies that result in problems for e-merchants. New solutions based on
blockchain and cryptocurrencies have potential to disrupt the payment
solutions marketplace, allowing eCommerce retailers to see significant cost
savings on fees, reduction in chargebacks, reduced fraud, and more. In
addition, acceptance of cryptocurrencies opens up significant new opportunities by embedding the RocketFuel
checkout solution into website advertisements. |
|
|
o |
Several
companies in the blockchain, cryptocurrency, and payment industries sport very
high market valuations. |
|
o |
Management
is highly experienced and has had significant success with prior endeavors. |
|
o |
The competitive landscape for eCommerce payment systems remains in
flux. Many of the competitive checkout solutions have
shortfalls that create customer inconvenience. While the market opportunity appears quite promising, technological
advances by others cannot be ruled out. |
|
o |
The
ongoing impact from COVID-19 remains an uncertainty. The RocketFuel
website and SEC filings detail various other risks and matters, and these are
hereby incorporated by reference. |
|
o |
Executive offices: 201 Spear St., Suite 1100, San
Francisco, CA 94105 |
|
o |
Website: http://www.rocketfuelblockchain.com |
|
o |
Investor
contacts: press@rocketfuelblockchain.com or Ben Yankowitz,
CFO, at b.yankowitz@rocketfuelblockchain.com |
|
Accredited Investor
Association (AIA) is a division of TickerBuzz, LLC,
a Florida limited liability company that owns and operates this website. All of
the information in these Research Profiles is intended for discussion
purposes only, is not a solicitation to buy or sell any security, and must
not be relied upon for financial, legal, tax, or any other professional
advice. Investors should independently and carefully
research and consider the risks inherent in all investments. AIA is not and
does not act as a broker-dealer, investment advisor, placement agent, or
crowdfunding portal. Furthermore, it does not offer any securities, nor does
it provide any investment advice or valuation conclusions. The source
material for these Research Profiles is provided primarily by the subject
companies and their respective investor materials. AIA makes no
representation as to the validity or completeness of the information in its
Research Profiles or the attractiveness of any of the companies or their
securities. Certain information, particularly information
relating to future performance and other business matters, constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. AIA cautions that these forward-looking statements neither
predictions nor guarantees of future events or performance and are subject to
numerous assumptions, risks, and uncertainties that may change over time and
cause actual results to differ materially from the statements discussed
herein. Past performance may not be indicative of future results. The
information in each Research Profile is applicable only as of the date of
that Profile and is subject to change without prior notice. AIA
assumes no obligation to update any of its Research Profiles. This Company paid TickerBuzz, LLC a $4,000 fee for a three-month display of
this Research Profile. Analyst: William J. Ritger. |
|
Accredited Investor Association
is a division of TickerBuzz, LLC, a Florida limited
liability company. Copyright 2021. TickerBuzz, LLC. All rights reserved. |