Bots Inc (BTZI)

[lesgetrich]

Bots is projecting $14 to $18 million revenue/year from its Bitcoin ATM Patent alone. This creates a rational pps target in the range of $.22 to $1.00/share...

BOTS INC ACCELERATES DEVELOPMENT OF WORLD'S FIRST BITCOIN ATM CONSORTIUM AND UPDATES POTENTIAL REVENUE PROJECTIONS FOR 2021

BTZI announced on October 29, 2020, that it acquired a subsidiary from First Bitcoin Capital Corp (OTC: BITCF), which includes the rights to U.S. Patent No. 9,135,787 - "Bitcoin Kiosk / ATM Device and System Integrating Enrollment Protocol and Method of Using the Same." Known as the "Bitcoin ATM patent," this patent is related to the purchase and sale of cryptocurrencies utilizing a Bitcoin ATM or kiosk that allows customers to purchase Bitcoin or other cryptocurrencies by using cash, debit, or credit cards. Many of the elements of that intellectual property (I.P.) will be "standard-essential claims," which are critical for the Bitcoin ATM networks to operate.

All Bitcoin ATM manufacturing companies could be forced to use the patented technology to manufacture and sell their Bitcoin ATMs as well as companies and individuals that own and operate Bitcoin ATM networks locally and nationwide.

"Per transaction royalty payments will be negotiated for a several-year term. Some agreements, especially with the manufacturers, could cover previous years and/or a significant number of coming years," says Paul Rosenberg, BOTS Inc CEO, "as those terms have not been finalized yet."

The Company has already begun negotiations with a major law firm with a very successful track record in enforcing patent rights when working on a contingency basis.

According to CoinATMradar.com, as of November 2020, there were over 9400 Bitcoin ATMs installed in the USA. Average Bitcoin ATM kiosk processes 130-180 transactions monthly. This translates into $14- 18 Million as potential income for the Company per year...

...BOTS, Inc. is also developing a Worldwide Bitcoin ATM network, similar to the Bank ATM networks to allow customers to buy and sell cryptocurrency on any Bitcoin ATM kiosk regardless of who operates the kiosk.

The Company will be offering a fractional ownership program allowing owner-operators of the crypto ATMs the opportunity to profit from using this future global ATM network.

BTZI is the founder of the First Worldwide Bitcoin ATM consortium or network, blockchain-powered computer network that will enable Bitcoin ATM customer wallets issued by a Bitcoin ATM operator that will be a member of the network to be used to perform Bitcoin ATM transactions through ATMs that belong to another operator of the network. This is especially convenient when traveling abroad, where Bitcoin ATMs may be widely available. A network is a common way of delivering buying or selling cryptocurrency services that increase the network value by linking many operators together.

This validates my BTZI post # 106827 & 106934...

BTZI Post # 106827

The PR states that there are roughly 9,000 ATM's currently in the US. Let's say that the purchase price averages around $10,000 per unit and that each ATM nets about $2,000 per month in fees. Using a very conservative 5% royalty (royalties can run as high as 25%), we can estimate a one time royalty on the sale of currently installed units as...

9,000 x $10,000 x 5% = $4,500,000 one time on current units

$500/unit on future sales

Moreover, since the patent applies to the use of these machines, we can anticipate continuing royalty payments per month of...

9,000 x $2,000 x 5% x 12 = $10,800,000/yr ongoing

$1,200/yr/unit on each future unit sale

This is virtually free revenue folks!

BTZI Post # 106934

BTZI should realize about $15,000,000 in revenue the first year the patent is enforced with an additional $10,000,000 in subsequent annual revenue. Except for legal fees, these revenues would come at virtually no cost to Bots, and will grow each year as new ATM's are installed. There's also the potential that, at some point, all existing US ATM's will need to incorporate cryptocurrency transactions. This would make them all subject to the patent. However we won't get ahead of ourselves for now.

Let's just conservatively assume that BTZI could bring in $10,000,000/yr in earnings for now. I like to estimate what I refer to as a rational pps range using the following technique...

Using the NYU Stern School analysis of Price/Earnings (P/E) Ratios by Industry, I theorize that BTZI could be categorized under either Financial Services, which has a forward P/E of 16.93x or Software (System & Application) with a forward PE of 76.82x. BTZI currently (as of yesterday) has an OS count of 771,874,596 shares. Using these assumptions, we can estimate a rational price range as follows...

$10,000,000 earnings / 771,874,596 shares OS = $.013 Earnings Per Share (EPS)

$.013 EPS x 16.93 = $.22/share pps to

$.013 EPS x 76.82 = $1.00/share pps

Consequently, based on these assumptions, a price target in the range of $.22 to $1.00 is rational for BTZI. This doesn't mean that the company will hit either of these targets, only that they are possible if all the assumptions are met. Keep these estimates in mind and see if they're borne out by further facts about the company (e.g. future financials) as they come in.