Cuentas Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Cuentas Inc. has filed its 2023 annual report (10-K), detailing its financial status and corporate information.</b>

AI Summary

Cuentas Inc. (CUENW) filed a Annual Report (10-K) with the SEC on April 15, 2024. Cuentas Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The company is incorporated in Florida and its principal executive offices are located in Miami Beach, FL. Cuentas Inc. is registered under the SIC code 5140 for Wholesale - Groceries & Related Products. The company has previously operated under the names NEXT GROUP HOLDINGS, INC., Pleasant Kids, Inc., and NYBD Holding, Inc. Cuentas Inc. has common stock and warrants registered under Section 12(g) of the Act.

Why It Matters

For investors and stakeholders tracking Cuentas Inc., this filing contains several important signals. This filing provides a comprehensive overview of Cuentas Inc.'s financial performance and operational status for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The 10-K filing includes detailed financial statements, risk factors, and management discussions, offering insights into the company's business model, challenges, and strategic direction.

Risk Assessment

Risk Level: low — Cuentas Inc. shows low risk based on this filing. The filing is a standard 10-K annual report, which typically contains routine financial and operational disclosures rather than immediate market-moving news.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Cuentas Inc.'s performance and potential challenges.

Key Numbers

• 2023 — Fiscal Year End (Fiscal year ended December 31, 2023)
• 5140 — SIC Code (Standard Industrial Classification: Wholesale-Groceries & Related Products)
• 001-39973 — SEC File Number (SEC File Number for Cuentas Inc.)
• 000-54923 — Commission File Number (Commission File Number for Cuentas, Inc.)
• 20-3537265 — IRS Employer Identification No. (IRS Employer Identification No. for Cuentas, Inc.)
• 001 — Par Value Common Stock (Common Stock, $0.001 par value)

Key Players & Entities

• Cuentas Inc. (company) — Registrant
• 2023 (date) — Fiscal year ended
• December 31 (date) — Fiscal year ended
• Miami Beach (location) — City of principal executive offices
• Florida (location) — State of incorporation
• NEXT GROUP HOLDINGS, INC. (company) — Former company name
• Pleasant Kids, Inc. (company) — Former company name
• NYBD Holding, Inc. (company) — Former company name

FAQ

Risk Factors

• Regulatory Compliance [medium — regulatory]: The company must comply with various federal and state regulations related to its business operations.
• Financial Stability [high — financial]: The company's ability to maintain financial stability and secure funding is critical for its continued operations.
• Operational Execution [medium — operational]: Successful execution of business strategies and operational plans is essential for growth and profitability.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-04-15: Filing Date — Date the 10-K report was filed with the SEC.

Key Financial Figures

• $0.001 — ection 12(g) of the Act: Common Stock, $0.001 par value Warrants Indicate by check
• $4.28 — g held by non-affiliates and a price of $4.28 per share, the closing sales price of t
• $7.2 million — ille Property") for a purchase price of $7.2 million. The Brooksville Property was originall
• $5.05 m — purchased by BDP on April 28, 2023 for $5.05 million, $2 million of which was contribu
• $2 million — DP on April 28, 2023 for $5.05 million, $2 million of which was contributed by Cuentas. Cu
• $1.625 million — proceeds of the sale, estimated between $1.625 million and $1.9 million, as working capital an
• $1.9 m — e, estimated between $1.625 million and $1.9 million, as working capital and for other
• $3.6 million — ompany recorded an impairment charge of $3.6 million whereas no amount was assigned to the a
• $750,000 — nterests of Cuentas-SDI in exchange for $750,000. Cuentas also had the right to close on
• $2,459,000 — e for a purchase price of an additional $2,459,000 which the Company did not exercise. As
• $0.5 million — ompany recorded an impairment charge of $0.5 million. The Company is working with a Vendor-

Filing Documents

• ea0202458-10k_cuentas.htm (10-K) — 1180KB
• ea020245801ex4-9_cuentasinc.htm (EX-4.9) — 33KB
• ea020245801ex10-21_cuentas.htm (EX-10.21) — 74KB
• ea020245801ex10-25_cuentas.htm (EX-10.25) — 86KB
• ea020245801ex10-28_cuentas.htm (EX-10.28) — 111KB
• ea020245801ex14-1_cuentas.htm (EX-14.1) — 81KB
• ea020245801ex19-1_cuentas.htm (EX-19.1) — 68KB
• ea020245801ex21-1_cuentas.htm (EX-21.1) — 3KB
• ea020245801ex23-1_cuentas.htm (EX-23.1) — 3KB
• ea020245801ex31-1_cuentas.htm (EX-31.1) — 15KB
• ea020245801ex31-2_cuentas.htm (EX-31.2) — 16KB
• ea020245801ex32-1_cuentas.htm (EX-32.1) — 7KB
• ea020245801ex32-2_cuentas.htm (EX-32.2) — 7KB
• ea020245801ex97-1_cuentas.htm (EX-97.1) — 20KB
• fin_001.jpg (GRAPHIC) — 46KB
• ex10-25_001.jpg (GRAPHIC) — 245KB
• image_001.jpg (GRAPHIC) — 27KB
• image_002.jpg (GRAPHIC) — 32KB
• 0001213900-24-032958.txt (&nbsp;) — 7723KB
• cuen-20231231.xsd (EX-101.SCH) — 68KB
• cuen-20231231_cal.xml (EX-101.CAL) — 37KB
• cuen-20231231_def.xml (EX-101.DEF) — 318KB
• cuen-20231231_lab.xml (EX-101.LAB) — 563KB
• cuen-20231231_pre.xml (EX-101.PRE) — 315KB
• ea0202458-10k_cuentas_htm.xml (XML) — 730KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 23 Item 1C. Cybersecurity 23 Item 2.

Properties

Properties 23 Item 3.

Legal Proceedings

Legal Proceedings 24 Item 4. Mine Safety Disclosures 24 PART II Item 5. Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6. [Reserved] 28 Item 7.

Management's Discussion and Analysis of Financial

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures About Market

Quantitative and Qualitative Disclosures About Market Risk 33 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 33 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 34 Item 9A Control and Procedures 34 Item 9B. Other Information 35 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 35 PART III Item 10. Directors, Executive Officers and Corporate Governance 36 Item 11.

Executive Compensation

Executive Compensation 39 Item 12.

Security Ownership of Certain Beneficial Owners and

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 43 Item 13. Certain Relationships and Related Transactions, and Director Independence 44 Item 14. Principal Accounting Fees and Services 45 PART IV Item 15. Exhibits, Financial Statement Schedules 46 Item 16. Form 10-K Summary 48 i SPECIAL NOTE As used in this Annual Report on Form 10-K (the "Annual Report"), unless the context otherwise requires, the terms "the Company," "Cuentas," "we," "us," and "our" refer to Cuentas Inc., a Florida corporation. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report includes forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995 or by the U.S. Securities and Exchange Commission in its rules, regulations and releases, regarding, among other things, all statements other than statements of historical facts contained in this report, including statements regarding our future financial position, business strategy, and plans and objectives of management for future operations. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. In addition, our past results of operations do not necessarily indicate our future results. These statements include, among other things, our ability to implement our business plan; our ability to attract key personnel; our ability to operate profitably; our ability to efficiently and effectively finance our operations; our ability to raise addi

BUSINESS

ITEM 1. BUSINESS Our Business Our business is mainly focused on using proprietary technologies to integrate FinTech (Financial Technology), e-finance and e-commerce services into solutions that deliver mobile financial services, prepaid debit and digital content services to the unbanked, under-banked and underserved populations nationally in the USA. The Cuentas technology platform integrates Cuentas Mobile, the Company's Telecommunications solution, with its core financial services offerings to help entire communities enter the modern financial marketplace. Our General Purpose Reloadable (GPR) "Debit Card" is designed to allow customers to purchase prepaid products and services, including third party digital content, gift cards, remittances, mobile phone topups and other digital services. An agreement with Interactive Communications International, Inc. ("InComm") a leading processor of general purpose reloadable ("GPR") debit cards, enables us to market and distribute a line of prepaid digital content and gift cards targeted towards the Latin American market. Cuentas is able to purchase InComm's prepaid digital content and gift cards at a discount and resell these same products in real time through its mobile app and through the Cuentas SDI network of over 31,000 bodegas. Cuentas is able to offer these digital products to the public through its mobile app and the Cuentas SDI distribution network, many at discounted prices, while making a small profit margin which varies from product to product. The prepaid digital content and gift cards include Amazon Cash, XBox, PlayStation, Nintendo, Karma Koin, Transit System Loads & Reloads (LA TAP, NY Transit, Grand Rapids, CT GO), Burger King, Cabela's, Bass Pro Shops, AT&T, Verizon, Mango Mobile, Black Wireless and other prepaid wireless carriers in the United States. Since the first quarter of 2023, we have made two equity investments in real estate projects in Florida under the name Cuentas Casa. Cuentas Casa partners

View Full Filing

View this 10-K filing on SEC EDGAR