Use of Certain Defined Terms
Except as otherwise indicated by the context, references in this report to "Savmobi Technology Inc.", "we," "us," "our," "our Company,"
Forward-Looking Statements
This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as "anticipate," "believe," "estimate," "intend," "could," "should," "would," "may," "seek," "plan," "might," "will," "expect," "anticipate," "predict," "project," "forecast," "potential," "continue" negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking statements.
We cannot predict all of the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results or conditions described in such statements or that our objectives and plans will be achieved and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements are found at various places throughout this Annual Report on Form 10-K and include information concerning possible or assumed future results of our operations, including statements about potential acquisition or merger targets; business strategies; future cash flows; financing plans; plans and objectives of management; any other statements regarding future acquisitions, future cash needs, future operations, business plans and future financial results, and any other statements that are not historical facts.
These forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of the Annual Report on Form 10-K. All subsequent written and oral forward-looking statements concerning other matters addressed in this Annual Report on Form 10-K and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Annual Report on Form 10-K.
Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.
Business Overview
On March 6, 2015 Mr. Lakwinder Singh Sidhu, president and sole director incorporated the Company in the State of Nevada and established a fiscal year end of May 31. We intend to provide application software to a global vendor platform to connect people to businesses and provide a new shopping experience. This begins with our proposed Mobile Marketing Platform that enables vendors to send targeted promotion and, offers to Members based on their location and needs. Members only receive promotions that they want, when they want it. The platform eliminates the need for searching by delivering information based on demand. The Company has registered offices located at 2880 Zanker Road, Suite 203, San Jose, California, 95134. The Company has an office provided at no charge by Mr. Sidhu in India; 73B Bank Avenue, Amritsar, Punjab – 143001, India.
The Company has not yet implemented its business model and to date has generated no revenues. It is the Company's intention to provide vendor tools technology. The proposed planned platform connects businesses to consumers based on location and preferences for products and services. Consumers received promotions while they are travelling via their smartphone. Vendors can send promotions and special offers simply through the web. When the consumer goes to the vendor's location, they can redeem the promotion through their smartphone allowing the proposed platform to keep track of performance analytics. SavMobi's proposed Mobile Marketing Platform intends to help businesses by bringing customers into their door and increasing sales.
SavMobi Technology Inc. intends to develop and deliver application Mobile Marketing Platform, containing the Vendor Center and Mobile Apps. The Vendor Center intends to allow SavMobi vendors to manage and monitor their promos. It is at the proposed core of all SavMobi Vendor Services. SavMobi Members can use the mobile apps to receive, view & redeem promos, set their preferences, and discover new vendors in their area.
Every business is different, so we've given the Vendor the ability to determine the discount or offer that is appropriate for them. They don't have to agree to profit-crushing deals that are forced upon by other companies.
The proposed SavMobi Mobile Apps intends to provide members with the full consumer experience of the proposed Mobile Marketing Platform. Members can use the mobile apps to receive, view & redeem promos, set their preferences, and discover new vendors in their area.
We have focused our current operations on the organization and development of our business plan. Our business plan is intended to design and to create a targeted and organized approach to building our intended Vendor and Member enrollment. We believe that once the proposed development of SavMobi's Mobile Marketing Platform is completed, this will allow SavMobi to hit the ground running with many options for our proposed customers.
We have begun to develop metrics within our business plan to stay on track. Relevant metrics intended to be used to measure Vendor and Member marketing activities would include: Vendor sign-ups per month; Vendor sign-ups after promotional events; Member registrations per month; Member registrations after promotional events; Campaign rates; Sent rates; View rates; Redemption rates.
In addition, our current operations have included the beginning of a pricing strategy for our proposed product. Since our intended revenue source will come from businesses, we have centered on pricing strategy on how much a business is willing to pay for advertising. Research from Borrell Associates (April 2008-The market data presented in this section represents calculations that the Company has made based on the underlying data contained in the Borrell Associates report rather than data points actually contained in the report.) published that the average amount paid for a business per location is $299. The range for this average is just over $18,000 at the high end to just under $100 at the low end.
Our intended core pricing strategy involves three components around CPM (cost per thousand of impressions), Allowance and Performance model. We have weighted our strategy more heavily on the Performance model. We believe by doing so our proposed goal it to establish actual results for our vendors. We believe that once the see the value of SavMobi's proposed Mobile Marketing Platform, that the intended increase in sales for the customer will provided on going renewal revenues for SavMobi.
Product
Corporate History
The Company was incorporated by its president and sole director Mr. Lakwinder Singh Sidhu in the State of Nevada on March 6, 2015 established a May 31 fiscal year end.
Recent Developments
Capital Stock
The Company's capitalization is 75,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued. Total shares issued and outstanding as of May 31, 2016 is 47,500,000.
As of May 31, 2015, the Company has not granted any stock options and has not recorded any stock-based compensation.
On April 28, 2015 the Company issued 375,000,000 (7,500,000 pre-split) common shares at $0.00001 per share to the sole director and President of the Company for cash proceeds of $7,500.
On March 8, 2016 the Company issued 15,000,000 (300,000 pre-split) shares of its common stock at $0.001 ($0.05 pre-split) for $15,000 net proceeds to the Company. As of May 31, 2015 the Company had not received funds for 500,000 shares (total related value of $500). This is reflected in the balance sheet as Stock Subscriptions Receivable.
On April 20, 2016, the directors of the Company approved a special resolution to undertake a forward split of the common stock of the Company on a basis of 50 new common shares for 1 old common share. All references in these financial statements to number of common shares, price per share and weighted average number of shares outstanding prior to the 50:1 forward split have been adjusted to reflect the stock split on a retroactive basis, unless otherwise noted.
On April 20, 2016, the founding shareholder returned 342,500,000 (6,850,000 pre-split) restricted shares of common stock to treasury for $10 and the shares were subsequently cancelled by the Company.
Industry Analysis/Competition
Market Analysis
SavMobi proposed Marketing Platform and Mobile App is to provide Vendors to deliver and for customers/Member to receive, view and redeem promotional offers. SavMobi pre-empts a general web search , making our marketing efforts a step ahead of our competitors broad general search advertisements. This will also allow our proposed Vendors to provide set distances to send their promos and with the Members/customers to opt-in preferences, the promos the Members receive (as per their preferences) have a high relevancy. This allows Vendors to target consumers within a specific neighborhood if they so choose.
Research from Nielsen's U.S. Digital Consumer Report (February 23, 2012) revealed that 29 percent of smartphone owners use their phone for shopping-related activities. Top activities among mobile shoppers include in-store price comparisons (38%), browsing products through websites or apps (38%), reading online product reviews (32%), searching for/using online coupons (24%), and purchasing products (22%). Mobile is transforming into a powerful commerce tool, facilitating consumer transactions and access to real-time information and deals.
The smartphone market is experiencing rapid growth and the time to capitalize on that market is now! According to mobile statistics, there are over 2.6 billion smartphones in the world and over 182.6 million smartphones in the U.S. alone; and that by 2020 there will be 6.1 billion smartphones worldwide. Every year, smartphone manufacturers are releasing many new and affordable products, which have led to smartphones being two out of every three new mobile phones purchased. SavMobi has an opportunity with every new smartphone user to potentially gain a new user/customer and provide Vendors of our proposed Marketing Platform the opportunity to generate more sales. SavMobi has the potential to generate increased revenues via the increase use of our Mobile Marketing Platform and Mobile App.
Competition
Although SavMobi can be considered to operate in many industries, our proposed revenue streams we expect to come from the hyper-local marketing space. Our proposed primary source of revenue we expect will come from local, small businesses. We're fighting for their marketing dollars in a competitive market dominated by traditional advertisements such as print & radio, and upcoming digital advertisement from Google Ads, Microsoft/Bing Advertising, Foursquare, and Waze. Other major players in the hyper-local space are Groupon, LivingSocial, Yelp, and Pirq.
By having Members set their preferences, they can receive promos without the need of searching. In essence, SavMobi pre-empts searching making our marketing efforts a step ahead of search advertisement. Since Vendors have set the distance to send their promos and Members opt-in to preferences, the promos that Members receive have high relevancy.
SavMobi is not reliant on check-ins or maps, even though we have similar features. The check-in model gives consumers discounts and offers after they intended to visit that business. Users of Foursquare, a social, check-in network, primarily use the service to notify their friends of their current location. Foursquare is experimenting with ways to monetize their business model and enhance the business experience through promotions. Their current efforts involve methods of exploration and discovery.
Waze created a traffic and navigation app that allows businesses to advertise by pinning their location on maps. Waze is promoting to businesses that they will reach a community of millions of drivers and everyday commuters. However, Waze users are primarily looking for the best route to their intended location not for pins on a map.
Daily deal sites such as Groupon and LivingSocial transformed the hyperlocal market. They brought local vendors new customers through a digital option that had no upfront costs, and they changed consumer perception of redeeming coupons. Although a revolutionary concept, the sustainability of daily deals has not been proven. Businesses that participate in daily deals have mixed experiences including loss of profit, overwhelming peak traffic, and inconsistent results.
Yelp and Pirq are expected to be our biggest competitors once our proposed product(s) are launched. Yelp is a local directory service with social networking and user reviews. In the first quarter of 2015, they had more than 142 million unique visitors to their website, yelp.com. Their primary source of revenue comes from local business advertising. Businesses may advertise with Yelp for preferred search result placement and extra listing features. The advertising fee may include an individualized message, video, and photo slide show onto their listing as well as analytic reports. Businesses that advertise with Yelp pay to be at preferred locations on a search page hoping that consumers will see their listing and come to their location. Although that is a strong message, SavMobi goes a step further by putting a more enticing message in front of our Members, a discount or offer.
Pirq's business model is similar to our business model. They've built an app that displays businesses in the area and the discount that is offered. Users look for the business and discount they'd like, enter the business location, and scan a Microsoft tag (similar to a QR code) to receive their discount. Pirq initially launched as a restaurant deals app. They are currently trying to expand to other industries and services. After being in operations for 4.5 years, they are still positioned as a restaurant deals app in the eyes of businesses and consumers. They operate nationwide.
There are many competitors that exist. This is a clear indication on the growth and potential of the hyper-local market. Although our competitors share traits and similarities to us, SavMobi intends to build from the ground up to become a preferred vendor platform provided that attracts consumers to local businesses. What distinguishes our proposed Company's software are features that are unique and are not included in our competitors software and apps; these included; Firstly, our proposed Members are able to set their preferences and then receive promos via their smartphones without the need of a general search on the web. In essence, SavMobi pre-empts searching, making our marketing efforts a step ahead of our competitors broad general search advertisements. Secondly, we also allow our proposed Vendors to provide set distances to send their promos and with the Members opt-in preferences, the promos the Members receive (as per their preferences) have a high relevancy. This allows Vendors to target consumers within a specific neighborhood if they so choose.
Patent and Trademarks
We do no currently own any domestic or foreign patents relating to our proposed Mobile Marketing Platform.
Employees
As of May 31, 2016, other than its president, secretary, treasurer and sole director Mr. Lakwinder Singh Sidhu, the Company has no employees.
As a "smaller reporting company," as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.
Not applicable to a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K.
The Company does not own any real estate or other properties and has not entered into any long term lease or rental agreements for property.
There are no pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or stockholder is a party adverse to the Company or has a material interest adverse to the Company.
Not applicable.
Market Information
Our common stock was not quoted on any exchange or trading platform and therefore no data is available for the periods ended May 31, 2016 and May 31, 2015.
Not applicable to a "smaller reporting company" as defined in Rule 12b-2 of the Exchange Act.
This Management's Discussion and Analysis of Financial Condition and Results of Operations is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results. The following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the accompanying notes thereto included in "Item 8. Financial Statements and Supplementary Data." In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. See "Forward-Looking Statements." Our results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors.
SavMobi intends to be a technology provider of vendor tools. The proposed first platform connects businesses to consumers based on location and preferences for products and services. Consumers receive promos while they are travelling via their smartphone. Vendors can send promotions and special offers simply through the web. When the consumer goes to the vendor's location, they can redeem the promo through their smartphone allowing the platform to keep track of performance analytics. SavMobi proposed Mobile Marketing Platform helps businesses by bringing customers into their door and increasing sales.
Plan of Operations
Over the 12-month period starting upon the effective date of this registration statement, our company must raise capital to introduce its planned products and start its sales. We intend to market our services on the Internet. We have three planned phases to our operations over the next twelve months. The business activities and related expenses in each phase will be affected by the proceeds from sales of shares in this offering received by the Company as discussed below.
It is the Company's intention to provide its customers with a Mobile Marketing Platform consisting of the vendor center and mobile applications.
Over the next twelve months, the Company plans to introduce it planned software development and marketing as follows:
1) | Develop the software for the proposed Mobile Marketing Platform that will allow SavMobi vendors to manage and monitor their promos. | |
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| 2) | Develop software application ("App") this will allow members to use the mobile apps to receive, view & redeem promos, set their preferences, and discover new vendors in their area in the Mobile Marketing Platform. |
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| 3) | We plan to market our proposed applications by the use of a website, mobile website, mobile apps, online advertising and social media such as Facebook, Twitter and LinkedIn to engage both vendors and members. |