SRAX Stock

SRAX, Inc. operates as a technology company.

The company focuses on enhancing communications between public companies and their shareholders and investors. It has two distinct business units:

The company’s software as a service (SaaS) platform, Sequire, allows issuers to track their shareholders’ behaviors and trends, then use data-driven insights to engage with shareholders across marketing channels. Through Sequire, the company offers tools and related data and insight services to allow issuers of publicly traded securities to understand their position in the market.

The company’s wholly owned subsidiary, LD Micro, Inc. (LD Micro), organizes and hosts investor conferences for micro and small-cap companies.

The company derives its revenues from the licensing of its proprietary SaaS platform; the sale of proprietary data; attendance and sponsorship fees from investor conferences and events; and the sale of insight and consulting services.

Sequire

The Sequire platform is a central hub where companies can manage certain administrative functions, reach out and engage with shareholders, as well as identify potential new investors. The platform utilizes machine learning and advanced analytics to bring the company’s clients actionable information that can be used to maximize ROI through investor and stockholder communications. Clients then can engage with targeted shareholder groups across marketing channels, including email, social media, programmatic, and hyperlocal.

When interpreting data, clients can see gains and losses over time, buying/selling trends, total outstanding shares, new shareholders, and shareholders broken out by percentage. Based on this data, the company can assist its users in developing customized communications campaign utilizing targeted ads and messaging.

Among other features, the Sequire platform provides its users tools to monitor investor sentiment and activities and simplify back office administration, such as real-time level-two trading data, the ability to monitor the activities of competitive public companies of the user, news alerts, custom survey feature to enhance shareholder communications; real-time and searchable warrant and option ledgers; and integrated communication between investor relations programs and corporate communication firms.

Data Targeting

The company helps its clients build an investor base through targeted advertising and marketing campaigns, tailored to their needs. Using data-driven insights, it helps clients meet their marketing objectives, whether they’re messaging existing investors, new investors, or consumers.

Virtual Events and LD Micro

LD Micro is the premier event platform for micro-cap and small cap companies. In September 2020, the company acquired LD Micro, and hosted the 2020 Main Event on the company’s Sequire Virtual Events platform. The 2021 Main Event had approximately 3,000 attendees and hosted webinars with approximately 500 companies. The company is planning to expand the number and subject matter of its conferences and events. Through the events platform, the company has the ability to host a variety of virtual events and conferences, including investor conferences, earnings calls, shareholder meetings, annual, investor/analyst days, corporate town halls, roadshows, and more.

Marketing and Sales

The company markets its services through its in-house sales and marketing team. The company’s team focuses on social media, including Facebook, LinkedIn and Twitter; public relations; industry events; and the creation of white papers, which assist in the company’s marketing efforts and are used as lead generation tools.

Intellectual Property

The company has eight U.S. patent applications filed.

Government Regulation

The company is subject to many of the laws that cover the securities industry and is regulated by the Securities and Exchange Commission.

The European General Data Protection Regulation (GDPR) took effect in May 2018 and applies to all of the company’s products and services used by people in Europe.

History

The company was founded in 2009 as a California limited liability company. It was incorporated in 2011. The company was formerly known as Social Reality, Inc. and change its name to SRAX, Inc. in 2019.