Cuentas Stock

Cuentas, Inc. (Cuentas), together with its subsidiaries, focuses on the business of using proprietary fintech technology (FINTECH) to provide mobile and e-commerce services for delivering financial, prepaid debit and digital content services to the unbanked, underbanked and underserved Latino, Hispanic and immigrant communities.

The company's proprietary software platform enables Cuentas to offer comprehensive financial services and robust functionality that is absent from other Mobile Apps through the use of the company's Prepaid Debit Mastercard/General-Purpose Reloadable cards ('GPR'). The company is diversifying with its initial investment in the first affordable apartment building in Florida using patented, hurricane proof (up to CAT 5) technology. Cuentas sees great potential in developing similar projects in Florida and other area in the U.S. while integrating many of its mobile and e-commerce solutions to help bridge the digital divide for unbanked, underbanked and underserved communities.

The company is diversifying its product line to include its Mobile Payments and Mobility projects, which will be integrated into a proprietary fintech ecosystem that will provide a more complete offering of e-commerce products and services designed for the unbanked, underbanked and underserved immigrant and underprivileged communities to help them bridge the e-commerce digital divide. The Cuentas Mobile App & GPR ecosystem protects its customers by depositing their funds in an FDIC insured bank account at Sutton Bank, the issuing bank.

The comprehensive financial services available include Direct ACH Deposits to receive funds; ATM access - the U.S. and most foreign countries; retail and online purchases; peer to peer payments at no cost between Cuentas Account holders; cash reloads at major retailers (Walmart, CVS, Walgreens, Dollar General, etc.); discounted gift cards for major brands (Amazon Cash, Xbox, Playstation, Burger King, etc.); Transit Authority Fares - Los Angeles TAP, Connecticut GoCT, coming soon NY-OMNY; Prepaid Long Distance Telecom Minutes - call land lines or mobile phones worldwide; the U.S. Mobile Phone Recharges (TopUps); Int'l. Mobile Phone Recharges (TopUps); and WU and Cuentas Bridge Digital and Retail Money Transfer Worlds for Latino Community.

On or about March 8, 2022, the company has integrated Western Union's ('WU') domestic and international money transfer capabilities into the Cuentas mobile banking app. The integration enables the company's customers to send money to 200 countries and territories via the Cuentas mobile app. Leveraging Western Union's leading global cross-border, cross-currency platform, the company's customers can conveniently move money to friends and family almost anywhere across the world using the Cuentas mobile app. Once sent, receivers can pick up their remittance in cash at any Western Union retail location.

A major factor that provides technical strength and reliability to Cuentas' project is the fintech ecosystem that it has developed. The foundation of Cuentas' ecosystem is the fintech platform with mobile app, mobile wallet and associated integrations that Cuentas has developed over the past 3 years. This platform has been proven to be a robust, reliable transactional, marketing, financial and predictive, Tier-1 transactional platform. Cuentas' ecosystem integrates its platform via dedicated APIs with Sutton Bank (the issuing bank), IDology (AML & KYC) and InComm (Processor, Load Network & 3rd Party Digital Products). During the fourth quarter of 2022, the company performed its annual impairment test for the impairment of those intangible assets. Based on the company's qualitative analysis, which considered the electronic products and General Purpose Reloadable Cards reporting unit results and additional business and industry specific considerations, including the impact of the settlement agreement with CIMA Telecom, the company performed a further revisions of the fair value of the acquired platforms.

Cuentas' Mobile App includes a Mobile Wallet ('Wallet') and a Digital Store (the 'Cuentas Digital Store' or the 'Digital Store') and is linked with a Prepaid Mastercard, which can be used for ATM withdrawals, online purchases and in-person purchases.

Account holders may deposit funds to their account via no-cost Direct Deposit, no-cost fund transfers from other Cuentas account holders, or for a small charge, using InComm's VanillaLoad network in over 200,000 locations at major retailers like Walmart, CVS, Walgreens, Dollar General, and more.

Once account holders have available funds, they can use their Cuentas Prepaid Mastercard wherever prepaid Mastercards are accepted worldwide and at most ATMs in the U.S., and many international ATMs.

Account holders may use the funds in their Wallet to purchase discounted gift cards in the Cuentas Digital Store. Product categories in the Digital Store include Digital Gift Cards, Transit Cards, Mobile Phone Recharges (the 'TopUps') and Western Union International Remittances. Digital gift cards include Amazon Cash, Sony Playstation, Xbox, Karma Koin, Burger King, Bass Pro Shops and more. Active transit products include TAP in Los Angeles, GoCT in Connecticut and The Rapid from Grand Rapids, Michigan. These should include the digital availability of OMNY in New York when it launches officially. Additional transit products will be available as InComm rolls them out. Cuentas account holders may purchase TopUps (Prepaid Mobile Phone Recharges) which allow them to recharge their own or someone else's Verizon, AT&T or other mobile phones in the U.S. or in many foreign countries - in real time. Account holders may make real phone calls using the Cuentas ILD Rewards balance (Loyalty Program) or funds in their wallet - actual phone calls that are made directly from their phone to any mobile phone or land line worldwide.

Cuentas e-commerce Distribution and Mobile Payments

The Cuentas e-commerce Distribution and Mobile Payments ecosystem will allow consumers to purchase Cuentas's line of digital products and services through a nationwide network of retailers that specifically serve Cuentas' target market. Cuentas' distribution network includes certain neighborhood markets known as 'Bodegas' and convenience stores, as well as other retail establishments. This brings previously unavailable digital products and services to those neighborhoods affected by the e-commerce digital divide.

Cuentas Mobile App and Wallet

The Cuentas Mobile App and Wallet are positioned to service the Hispanic, Latino and immigrant demographics with comprehensive financial products. Additionally, the company is able to accept various forms of the U.S. and some foreign government issued identification to confirm qualification for opening an account with the Cuentas App. The Cuentas App is able to accept SSN or ITIN with the U.S. identification, Matricula Consular or other qualified government issued forms of identification.

The Cuentas Prepaid Mastercard - General-Purpose Reloadable (GPR) Card

The Cuentas Prepaid GPR Card allows each account holder to have a personalized Cuentas Mastercard and an associated Cuentas Account with the Mobile App, Digital Wallet, Digital Store and Long Distance Telecom services included. It acts as a comprehensive banking solution which enables access to the U.S. financial system for those who are unbanked or underbanked, while also enabling greater functionality than a traditional bank account. The cardholders' deposited funds are protected in an FDIC-insured bank account at Sutton Bank.

The Cuentas Business Model

The Cuentas business model provides or, the company expects will provide, for multiple revenue sources, many of which are synergistic market segments and provide unified financial and social functionality to forgotten segments of society.

The Cuentas Mobile Wallet has several revenue streams. The company receives and expects that the company will continue to receive monthly maintenance fees, reload fees, ATM fees and commissions for products sold, as well as interchange and network fees from Mastercard and the Pulse Network. Cuentas' strategy is to provide excellent value to consumers while charging reasonable fees and commissions to produce profitability. Cuentas provides account recharge capabilities to account holders via the nationwide VanillaLoad network owned by InComm as it is available in many big box retailer chains, such as Walmart, Walgreens, CVS, Dollar Store and others.

The Cuentas Digital Store produces revenue each time that consumers purchase third party gift cards, digital access, mass transit tickets and mobile phone top-ups (the U.S. and international). Additionally, International remittances provided by the industry-leader Western Union 'by Cuentas' are available and International Bill Pay should be available in 2023. Both services should be major revenue driving factors for Cuentas as they provide reliable, low-cost solutions to the company's target audience.

Cuentas offers rewards for free long distance calling to its account holders ('Cuentas Rewards') who are given credits upon activation to be able to make real international calls to land lines or mobile phone worldwide, not like internet calling which can be unreliable and poor quality. The company can expand the Rewards program to include other products and/or services in the future. The company's target demographic uses both internet and prepaid calling services to communicate with family members around the U.S. and in their country. This added benefit is designed, at a very low cost, to provide extra benefits to the company's accountholders, which should help to maintain and solidify valuable relationships with them.

Prepaid Debit Card Market Overview

Cuentas is strategically positioned in the prepaid marketplace with a focus on the Hispanic, Latino and immigrant demographics.

Cuentas sends a personalized Prepaid Mastercard directly to each approved applicant in the U.S. As previously mentioned, the company also models its offering with empathy and consideration for the company's target demographic, keeping fees and costs reasonably low so they will be able to justify and appreciate the benefits provided by the Cuentas Mobile App, Wallet and Prepaid Mastercard.

The Cuentas Technology platform

The Cuentas technology platform has proven itself to be a robust, reliable system and Cuentas is taking steps to raise the platform to the next level through symbiotic integration with The OLB Group Inc's ('OLB') advanced PCI compliant OMNIsolutions platform.

On August 22, 2022, Cuentas signed a Software Licensing And Transaction Sharing Agreement with OLB with the goal of mutually integrating capabilities, features and expertise to enable both systems to take advantage of this symbiotic relationship so both organizations may grow. The integration of upgrades to Cuentas' system will include advanced intelligence and predictive trending to improve security, identify successful marketing campaigns and provide data for future project development.

The Cuentas ecosystem and platforms function seamlessly as before, and upgrades will be introduced after careful evaluation, review and multi-level testing.

The newly upgraded Cuentas platform is designed to be PCI compliant and will include a complete POS system with credit card processing, marketing tools, integrated modules for inventory management, content management, concierge services, shipping and customer service. Additional features and capabilities include Real-time currency exchange rates (ECB), SSL support, Fully 100% customizable designs using templates, configurable list of allowed countries, ACL (Access control list), Activity Log, OpenID, Facebook and Twitter authentication, W3C compliance (XHTML) with all Bar-Codes Accepted, and much more.

The Cuentas platform will also have a multi functionable tax module that can apply taxes by country, state, Zipcode, product classes (e.g., goods, services, alcohol, etc.) and even, including tax exempt, European Union Value Added Tax support.

The platform will include a Reward Points System, Marketing manager (Email & SMS campaigns), Customizable SEO (Search Engine Optimization) meta tags, discounts, coupons, affiliate programs, shopping, Froogle (google base), PriceGrabber / Yahoo Shopping, become.com product feeds, Google XML site map, CMS Topics, as well as QuickBooks and Google AdSense integration.

Additionally, the platform will provide a shipping and logistics department a complete solution that enables retailers to use UPS, USPS, FedEx and other shippers with a myriad of shipping calculation methods (weight, volume, product, etc.). Prevent shipping to restricted Countries, calculate shipping, defined shipping methods (e.g., Ground, Next Day, 2nd Day, etc.), shipping tracking numbers, etc.

Finally, the system's Customer Service module will allow customers to register/login, create wish lists and registries, multiple billing and shipping addresses per customer, customer roles (groups), time zone support, built-in forums, password recovery, multiple account registration/activation types, automatic or manual registrations, Email validation & image capture during login/registration, 'Email a friend' feature, Compare products feature, News RSS, Contact Us form, and more. Plugins are also available for the U.S. Postal, QuickBooks, FedEx, DHL and MailChimp.

Strategic Partners

Sutton Bank ('Sutton')

Cuentas has a 5 year Prepaid Card Program Management Agreement with Sutton Bank as the issuer of the Cuentas Prepaid Mastercard - Debit/GPR card which is effective through October 2026 with automatic 1 year renewals. Sutton insures account holders' funds through the FDIC and provides direct deposit capabilities, early pay functionality and account balance functionality for the Cuentas Mobile App and Mobile Wallet. Cuentas pays Sutton monthly fees for their assistance with compliance and regulatory concerns. Sutton coordinates Know Your Client ('KYC'), Office of Foreign Asset Control ('OFAC'), Politically Exposed Persons ('PEP') and Anti-Money Laundering ('AML') compliance with Cuentas and IDology. Each applicant must have either a Social Security number or an ITIN. During the registration process, IDology compares each applicant's personal information with known KYC, OFAC and PEP databases, and if required, can request certain forms of identification to confirm their identity. These forms of identification may include but are not limited to: Passport, Driver's License, Matricula Consular and the U.S. residency documentation. Only applicants that reach a certain score that is coordinated between Sutton and IDology, are approved to receive a Cuentas Prepaid Mastercard associated with their Cuentas Mobile App and Wallet account.

Interactive Communications International, Inc. ('InComm')

Cuentas has multiple agreements with InComm, including Processing services, Resale of 3rd party Digital gift cards, Resale of InComm Digital Solutions, and Reload Commission Agreement. The agreements are effective through July 2024 and then renew automatically for 1 year periods. InComm is an instrumental partner of Cuentas as it provides the operational core of Cuentas' transaction processing platform, the cash reload component and access to many third party products and services.

On July 23, 2019, the company entered into a 5 year Prepaid Services Agreement with InComm (the 'InComm PSA') to power and expand the company's Mobile App, Mobile Wallet and GPR card. InComm is a supplier of 3rd party gift and digital content cards and Cuentas resells a variety of these products through its Mobile App's Digital Store and Cuentas-SDI distribution network, with possible expansion in the future.

Under the InComm PSA, InComm is the prepaid card processor and through its VanillaLoad network, allows the company's cardholders for a small fee, to reload their Cuentas Mobile Wallet through a nationwide network of retailers, including Walmart, 7-Eleven, Walgreens, CVS Pharmacy, Rite Aid, Dollar General and many more. In addition, the company plans to extend the cash reload component of the Wallet through a select number of 'bodegas' in the Cuentas-SDI network to increase its market penetration and profitability.

Under the InComm PSA, InComm provides processing services, telephone support, data storage services, account servicing, reporting, output and hot carding services to the company. Cuentas pays InComm monthly fees for its support, as well as anti-fraud and compliance services. Processing services consist mainly of authorization and transaction processing services. InComm also processes authorizations for transactions made with or on prepaid products, along with any payments or adjustments made to prepaid products. InComm also processes the company's data and post entries in accordance with the specifications. Data storage services consist mainly of storage of the company's data in a format that is accessible online by the company through APIs designated by InComm, subject to additional API and data sharing terms and conditions. InComm also provides Web/API services for prepaid Cuentas GPR applications and transactions.

Cuentas SDI, LLC

Cuentas SDI, LLC (the 'Cuentas-SDI') was incorporated in the state of Florida on January 4, 2022 and was a wholly owned subsidiary of SDI Black 011, Inc. ('SDI Black'). Cuentas-SDI is engaged in the business of electronic distribution and sales of virtual products via its Black 011 portal located at Yonkers, NY. Its electronic products range from prepaid wireless SIM activation, International mobile recharge services and international long distance phone services. During 2020, Cuentas-SDI also started sales of general merchandise to its retail reseller customers. Cuentas-SDI owns the assets of Black Wireless MVNO, Black 011 Long distance platform and operations and the SDI Black distribution platform and network of over 31,000 bodegas and convenience stores.

The company is working with a Vendor-Client relationship with Cuentas-SDI, who uses Least Cost Routing (LCR) to decide which vendor provides the products for sale. The LCR platform will determine the percentage and quantity of revenue that is realized between Cuentas and Cuentas-SDI.

The Cuentas Ecosystem

Cuentas' intention is to offer the consumer a one-stop shop, easy to use, Mobile App & Mobile wallet with Mastercard rails that can provide new, important financial services and solve many of their daily needs and desires while saving the users time and money.

Approved Cuentas accountholders will have a Prepaid Mastercard acceptable wherever Mastercard debit cards are accepted and can have their paychecks or certain government benefits checks directly deposited to their account associated with the card, with funds available for use on the card up to 2 days earlier than standard direct deposits. Furthermore, the Cuentas card has ATM access through the nationwide Pulse Network, which provides access to ATMs in the U.S. and many more worldwide.

The Cuentas Digital Store in the Mobile App will allow accountholders to purchase certain mainstream gift cards for use in a variety of stores, online portals and transit agencies - many at discounted prices. Accountholders can also 'Top Up' or prepay their mobile phone accounts and also do the same for friends & family living in the U.S. or overseas.

Cuentas Mobile

Cuentas Mobile is the company's Mobile Virtual Network Operator ('MVNO') trade name, which provided Cuentas Mobile branded mobile phones along with attractively priced prepaid voice, text, and data mobile phone services to a limited customer base. Cuentas, through M&M is negotiating to sell mobile services as an MVNO throug an operator on the largest 5G nationwide network from one of the top 3 mobile carriers. Cuentas Mobile will continue to operate a virtual telecommunications network providing mobile voice, text, and data services with essentially the same quality as other MVNOs, such as Cricket, Boost, Simple, Ultra, Mint, and Lyca Mobile, which have been successful at creating brands, without owning the towers, hardware or network. Cuentas is reactivating distribution through grass roots retailers that normally interact with Cuentas' target audience, specifically offering mobile phone service with the ability to make international calls to specific Spanish speaking countries in Central and South America.

The company's potential customers will migrate away from legacy telephone and banking systems to enhanced mobility solutions. The company's technological advantage and the synergies created by its combination of a reloadable debit card and a holder of mobile virtual network operator rights will make its products increasingly useful to unbanked, under-banked, under-served and other emerging niche markets.

Meimoun & Mammon LLC

Meimoun & Mammon LLC ('M&M') is a retail provider of domestic and international long-distance voice, text, and data telephony services to consumers in the United States and throughout the world. M&M holds International and Domestic Section 214 authority issued by the FCC. M&M operates the retail Tel3 business as a separate division. Tel3 has been a prepaid long distance provider for many years and provides direct and indirect access to Latino and immigrant communities across the U.S. as it provides them with quality international communications services.

LSI Group S.A. ('LSI')

On Aug 31, 2022, Cuentas signed a 1-year agreement which is extendable to 3 years total with completion of certain milestones. LSI will market the U.S. based Cuentas Prepaid Debit Card and Mobile App in countries, including El Salvador, Guatemala and Honduras with plans to expand to South America, starting with Colombia, with the intention to sign 200,000 U.S.-based Cuentas customers in 1 year for international cross-border remittances. As of December 31, 2022, the company had not generated revenues through LSI.

Regulatory Compliance

The company, the products and services that the company offers and markets, and those for which the company provides processing services, are subject to a variety of federal, state and foreign laws and regulations, including but not limited to: federal communications laws and regulations; foreign jurisdiction communications laws and regulations; federal anti-money laundering laws and regulations, including the USA PATRIOT Act, the Bank Secrecy Act, anti-terrorist financing laws and anti-bribery and corrupt practice laws and regulations in the U.S., and similar international laws and regulations, including the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in Canada; state unclaimed property laws and money transmitter or similar licensing requirements; federal and state consumer protection laws, including the Credit Card Accountability, Responsibility and Disclosure Act of 2009, and the Durbin Amendment to Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and regulations relating to privacy and data security; and foreign jurisdiction payment services industry regulations.

The company's subsidiary M&M is subject to regulation by the FCC and other government agencies and task forces. M&M holds International and Domestic Section 214 licenses issued by the FCC, which may be suspended or revoked by the FCC if M&M does not strictly comply with all applicable regulations and the terms and conditions under which the International and Domestic Section 214 licenses were issued. M&M is also subject to certain foreign jurisdiction communications laws and regulations as it provides limited access to its prepaid calling platform internationally.

Marketing

The Cuentas Mobile App, Mobile Wallet and Prepaid Mastercard will be predominantly marketed via digital and traditional media channels. Cuentas expects to use a combination of internal resources, as well as third parties for the company's marketing efforts.

The marketing relationship with the indoor professional MASL (Major Arena Soccer League) soccer league for the 2022-2023 season has introduced the Cuentas brand and services to sports fans throughout the 14 team cities, with additional reach through streaming of the pro soccer games through the Twitch streaming network. The demographics of soccer fans is directly in line with Cuentas' target audience.

Cuentas will promote the newly integrated POS capabilities in its ecosystem and market these services to the 30,000 bodegas and convenience stores in the network, with the possibility of upgrading a select number of them to neighborhood financial centers to be able to load cash to the Cuentas prepaid debit card and provide other financial services.

Entry into a Joint-Venture Agreement with WaveMAX Corporation ('WaveMax')

On July 21, 2021, the company and WaveMAX entered into a Definitive Joint-Venture Agreement (the 'Agreement'). Pursuant to the Agreement, the company and WaveMax formed CuentasMax LLC on Dec 8, 2021, a joint venture ('CUENTASMAX'), which would install WiFi6 shared network ('WSN') systems in up to 1,000 retail locations in the New York metropolitan tristate area using access points and small cells to provide users with access to the WSN (the 'JV Project'). The WSN will allow CUENTASMAX to generate location-based advertising configured by advertisers using WaveMAX's advertising dashboard technology directly to users over the WSN, could permit users to pay a service fee for ad-free access to the WSN. Execon manages approximately 20,000 WiFi endpoints with WaveMax in Mexico. WaveMAX grants CUENTASMAX exclusive rights to use and deploy the WaveMAX Technology, including any and all patents owned or to be owned by WaveMAX and any and all related enhancements or applications of the WaveMAX Technology and any and all prior and subsequent improvements and/or new technology developed by WaveMAX solely in the company's BODEGAS network throughout the United States. The parties have agreed to expand CUENTASMAX to other areas of the U.S. once the current deployment is in progress or has been completed. As of December 31, 2022, CuentasMax installed 30 WiFi6 Access Points in New York City, Los Angeles, and Puerto Rico at different small businesses, including Bodegas, restaurants, beauty salons and gas stations. CuentasMax also has pilot project agreements with the Bodega Association and Business Group in NYC, Benelisha Group in LA, and Top Gasoline Inc in Puerto Rico.

Entry into a Joint-Venture Agreement with Benelisha Group, Inc. ('Benelisha')

On August 4, 2021, the company and Benelisha entered into a Definitive Marketing and Promotion Agreement (the 'Benelisha Agreement'). Pursuant to the Benelisha Agreement, the company and Benelisha will market and promote Cuentas GPR cards and the mobile phone application ('DC/MA') products to Benelisha customers.

Acquisition of a 6% Equity Position in Lakewood Village

On March 7, 2023, Cuentas announced that it had completed the acquisition of a 6% equity position in Lakewood Village, the first sustainable rental housing project developed in the U.S. using a patented MCFR Mineral Composite Fiber Reinforced Construction Technology that has been approved for hurricane-prone areas as such in Florida. The Lakewood Village project is an affordable multi-family real estate development located in Lake Worth, Palm Beach County, Florida, consisting of 96 apartments that are 2 and 3 bedrooms.

Entry into a Supply Agreement with Renco USA

In March 2023, the company also signed a 10 year supply agreement with Renco USA, Inc, the provider of the innovative, green, structural construction technology components used in the Lakewood Village project, which is hurricane proof (up to CAT 5) and earthquake proof (Seismic Cat A & B - soon C, D & E). Renco USA has the exclusive rights in the USA to the patented process. The Renco Wall, Floor and Roofing System is a unique MCFR Building System that creates interlocking, fiber reinforced, composite building blocks and other construction related products that can be connected in an almost limitless variety of designs. Renco's system can be used to create homes, apartment buildings, hotels, office buildings, warehouses, infrastructure products and more.