Dear Shareholders of Glance Technologies Inc. (OTCQB: GLNNF) (CSE: GET),
A lot has happened since our previous letter six months ago. Given the importance and rapid pace of these developments, we thought an update on our recent progress and plans for 2018 would be helpful.
A key objective for Glance has been to raise sufficient capital to execute our plan. On December 27, 2017 we announced the closing of an $11 million bought deal financing. We also announced that the Company’s cash balance at that time exceeded $17.4 million. This strong cash position gives us a clear runway to acquire new customers, expand into other geographic markets such as the US, pursue new licensing deals, acquire new technologies, expand our development resources and continue adding significant innovations to our technology such as a rewards-based cryptocurrency. We believe our cash reserve gives us a competitive advantage, especially if venture funding becomes more difficult in the future.
During our first year of operations, we focused on developing and enriching the user experience through the Glance Pay App. We’re now devoting significant resources to enhancing the Glance Merchant App. This latest innovation will give our merchants access to advanced data analytics that inform sophisticated promotions and loyalty programs—all aimed at repeatedly bringing customers back to our merchants’ establishments. We plan to expand this technology into online purchases and e-commerce by leveraging our anti-fraud technology for online merchants suffering high fraud rates. We also plan to reach further into cities across North America, increasing our merchant base beyond restaurants to all types of businesses as we add services that enable various other verticals. We are very excited about our technology roadmap for this year. With sufficient capital in the bank, we’re confident we can achieve our goals and continue to build out our technology platform.
In addition to establishing a significant base of merchants and users and expanding our market, we’ve also explored and tested different monetization strategies for our products. We’ve had a strong start to 2018 for merchant signings including a number of US locations. We’re working closely with restaurants and merchants to determine pricing models and services or add-ons we could implement to monetize our products. As a result, we added a number of services and features to our platform that could be used to earn additional revenue. We believe we have an opportunity to provide services which can compete with companies like Square (whose current market cap exceeds $16 billion) without requiring special hardware to combat fraud. Additionally, we have been exploring other opportunities to license our technology. In the last nine months, we have signed licensing deals with deemed values totaling $9 million. On December 6, 2017 we announced the acquisition of the BlockImpact cryptocurrency and blockchain platform to accelerate our blockchain development. We are also exploring licensing opportunities of this technology beyond our rewards token initiative.
Blockchain & Cryptocurrency
We believe blockchain and cryptocurrencies are fundamentally transformative technologies. According to Coinschedule.com, over $3.7 Billion USD was invested in cryptocurrency ICOs in 2017. That large influx of investment should accelerate the advance of fundamental blockchain platform technology as well as applications and more widespread adoption of the technology in the next few years.
We also announced that we are building a decentralized loyalty marketplace using blockchain technology. This development will utilize a rewards token that allows Glance Merchants to reward and provide deals and incentives to customers. Our plan is to provide a loyalty mechanism that allows Glance Users to spend accumulated rewards within a larger marketplace. We also anticipate that by rewarding Glance Users with our token, we will enable everyday individuals to get involved in the cryptocurrency and hopefully encourage widespread adoption. We are working diligently on our crypto technology and assembling what we believe to be a strong team on this front. This blockchain-based rewards platform will allow flexible reward and loyalty structures to meet merchant needs based on smart contracts. Our recent trip to Davos, Switzerland to speak at a blockchain conference validated the opportunity for our planned rewards-based token. The conference also provided a great networking opportunity for potential partners, customers, and investors.
Proprietary Anti-Fraud Technology
Fraud is a serious issue for many merchants, and unfortunately most payment methods pass the fraud risk onto the merchant. That is why we designed important innovations in fraud prevention that were implemented just over a year ago. Since that time we have experienced zero payment fraud on our platform in over 13 months across all of our live locations. Fraud prevention may be one of the most important features of our intellectual property to date, and we intend to leverage this advantage in various markets including cryptocurrency and blockchain, online e-commerce, mobile payments and in-store purchases. We believe our anti-fraud technology represents a significant accomplishment and market edge, and we are working towards making this feature a distinct product. Based on recent announcements by credit card firms, fraud is also emerging as a major issue in the crypto space, and our technology could offer an important weapon against it.
By establishing the usability of our technology, expanding our target market to a broader array of merchants, improving capacity for monetization with more products, raising significant capital, eliminating fraud and strengthening our product offering, we feel Glance has embarked on a strong and fruitful path. We firmly believe that mobile devices are the future of payments and consumer engagement, and we believe blockchain is a fundamentally transformative technology. According to iResearch, mobile payments are the dominant form of payment in China, where annual payments already amount to trillions of USD annually. We believe Glance is well positioned to take advantage of these technological trends as we continue to build our technology and expand our network of merchants and consumers. Every year mobile phones advance significantly, accelerating the transition to mobile payments and giving us even more tools for innovation.
We value all our merchants, users, and shareholders, and we thank you for your support. I know I speak for everyone at Glance when I say we’re excited and grateful to have you with us as we continue to grow.
Glance Technologies Inc.
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