Published on : Oct 21, 2022
Fobi AI Inc. (FOBI: TSXV FOBIF: OTCQB) (the “Company” or “FOBI”), a leader in providing real-time data analytics through artificial intelligence to drive operational efficiencies and profitability, provides a Corporate Update to the market. As a result of a review by the British Columbia Securities Commission (“BCSC”), we are issuing the following news release to update our disclosure with respect to certain programs and contract negotiations.
The Company wishes to provide an update on its pilot programs, as well as its letter of intent ("LOI") with All Net LLC and its partnership with Empower Clinics.
The Company is engaged in pilot programs with various clients on an ongoing basis. These pilot programs are generally undertaken by the Company for no consideration in order to show the value of FOBI's products to clients. While not all of these pilot programs are revenue generating at this time, they hold importance for the Company as some may amount to material agreements from a revenue standpoint and others may amount to benefits to the Company that are non-quantifiable business opportunities. Such opportunities include the collection of valuable information allowing the Company to identify vertical solutions and product opportunities, develop additional features and functionality for its technology and services, adding value to FOBI's product catalogue. Insights gained from pilot programs also assist the Company in developing strategies that it employs when marketing its products to potential clients. Additionally, the pilot programs give the Company the opportunity to test new products.
The Company has completed two pilot programs with TELUS Corporation (“TELUS”), allowing FOBI to showcase its suite of products. Upon completion of these pilot programs, the Company was approved by TELUS to upgrade from the Telus Marketplace to a full procurement partner. The procurement agreement provides TELUS with wholesale pricing to FOBI's products and for TELUS to resell FOBI’s products, through its expansive sales network, under TELUS products and services. Since signing the procurement partnership, TELUS has begun successfully selling FOBI’s products to TELUS customers, which has resulted in TELUS securing revenue-generating commercial contracts. These contracts vary in term and revenue is generated through, but not limited to, platform fees and active wallet pass fees that vary by customer. TELUS continues to work on several new opportunities in both government and private sectors opportunities for FOBI's products and services.
The Company previously announced an LOI with respect to a project with All Net LLC ("All Net") whereby FOBI will provide a custom technology stack that will power the AllNet Resort and Arena Project to be constructed in Las Vegas. The Company had been actively working with the President and CEO of All Net, along with its information technology team, to define the needs and deliverables for the project. The project has now officially launched and is currently under construction. AllNet and FOBI have come to commercial terms under a Master Services Agreement. FOBI will be responsible for providing its digital mobile wallet technology, creating a personalized and fully interoperable operational and interactive guest experience. FOBI will also provide its real time big data capabilities, which will provide advanced operational analytical insights.
The Company previously announced initial discovery and pilot implementation programs with BDG Sports for Covid-19 testing, which were executed successfully as single-event pilots. As a result of the successful completion of these pilot programs, the Company has been working with BDG Sports on revenue-generating project opportunities. The Company has generated revenue through such programs in the form of event license fees and active wallet pass fees. Some recent revenue-generating projects with BDG Sports include groups such as MGM, PGA, Korn Ferry Tour, NCAA Basketball event, RevelXP, Stratosphere Casino.
FOBI continues to work on a pilot program with Senor Frogs in Las Vegas. The Company has worked closely with this key group in order to add additional features and functionality to applicable FOBI products. The Company is currently in discussions with Senor Frogs to come to an agreement between the parties on the definitive commercial terms of its engagement. Through the course of the pilot program, the Company has identified potential revenue opportunities such as monthly SaaS fees, and supplier-funded marketing and engagement programs.
Further to the Company’s announcement of its partnership with Empower Clinics, the Company has finalized commercial terms and entered into a service and reseller agreement dated October 12, 2021. As a result of the Company’s partnership with Empower, FOBI has earned non-material revenues including, but not limited to, custom development, set up and wallet pass fees. The Company continues to work with Empower to identify further sales opportunities.
FOBI conducted a pilot program with Maplin, which has since expired. Due to the ongoing restructuring of Maplin's business and contributing issues and challenges as a result of Covid-19, the Company and Maplin could not come to terms of services and value that made sense for both organizations. Notwithstanding the foregoing, this project enabled the Company to uncover new value in its middle wear and FOBI cloud solutions to allow better connectivity for the customers' physical and online data, segmentation and monetization of data. The Company benefited from the Maplin pilot program by leveraging its findings to secure commercial revenue-generating agreements with digital payment, POS and e-commerce companies Square, Lightspeed and Shopify.
The Company previously announced a pilot program with Pharmassist. With the emergence of Covid-19 and the related shutdown in the UK, the Company faced challenges in progressing the pilot given limited store hours and capacity. As a result of these difficulties and due to the need to prioritize opportunities with greater potential, the Company and Pharmassist were not able to come to terms on a definitive agreement. The Company expects to re-examine this opportunity in the future once the Covid-19 pandemic restrictions in the UK are lifted.