Cuentas Inc (CUEN)

[Arthur]

What's happening with NextCala ?

On May 27, 2016, Next Cala entered into a Joint Venture Agreement (the “Agreement”) with Glocal Payments Solutions, Inc (“Glocal”) to form a joint venture, NextGlocal, in which Cala has a 60% controlling interest and Glocal has a 40% interest. The Joint Venture will seek to launch and activate up to 45,000 prepaid debit cards under the Cala brand by December 31, 2016 and 360,000 additional cards during the 2017 calendar year. Either party may terminate the agreement at December 31, 2016 if certain objectives are not met.

So, did it work ? How many cards were issued, what are the revenues and the profit margins ?

Well, according to the financials, substantially all the company's revenue in Q1 comes from Tel3, a subsidiary that NXGH acquired for $10. Thus, none come from NextCALA prepaid credit card operations.

Revenue

Total revenue for the three months ended March 31, 2017, were $500,591, compared to revenue of $82,303 for the three month period ended March 31, 2016. During the three months ended March 31, 2017, revenues from non-related parties totaled $496,798 and revenues from related parties totaled $3,793 compared to $82,303 from non-related parties and $0 from related parties during the three months ended March 31, 2016. The increase in revenue was due to the acquisitions of Tel3 which contributed revenues of $500,327 during the three months ended March 31, 2017 that was not present during the three months ended March 31, 2016.