Cuentas Inc (CUEN)

[Arthur]

Very impressive. They went from $1,699,843 of revenue from the first 9 months of 2017 to $53,792,600 for the full FY 2017.

With a $2,393,791 gross profit and a ($1,562,153) operating loss.

Due to our operational losses, the Company has relied to a large extent on funding received from Next Communications, Inc., an organization in which our Chief Executive Officer and Chairman holds a controlling equity interest and holds an executive position. During the first calendar quarter of 2017, Next Communications, Inc. filed for bankruptcy protection. As a result, the related party payable is being handled by a court appointed trustee as an asset of Next Communications, Inc. and the Company may need to begin repaying the amounts due on a more fixed schedule.

Our liquidity needs for the next 12 months and beyond are principally for the funding of our operations and the purchase of property and equipment.
Based on the foregoing, management believes the Company will generate sufficient funds from operations and certain available debt financings available to finance its operations over the next twelve months.
The Company is actively engaging in various strategies to ensure the continuance of operations for the foreseeable future.

The Company will seek additional capital through a debt offering.

NOTE 13 – CUSTOMER CONCENTRATION

The Company generated approximately 65% of its revenues for the year ended December 31, 2017 from four separate customers. The Company did not have any one customer account for more than 10% of its revenues during the year ended December 31, 2016.

As of December 31, 2017, three separate customers accounted for approximately 78% of the Company’s total accounts receivable. No single customer accounted for more than 10% of the outstanding accounts receivable as of December 31, 2016.

On October 23, 2017, the Company assumed a settlement liability Limecom had entered into with American Express as part of its acquisition as discussed in Note 1 – Organization and Description of Business. As of the date of acquisition, there was a total outstanding balance of $995,158. The Company made repayments totaling $102,727 from the period of October 23, 2017 to December 31, 2017 leaving a remaining balance due of $892,431 as of December 31, 2017. The balance due is included in accrued liabilities as of December 31, 2017.