TMCnet News
PINGIFY INTERNATIONAL INC. - 10-K - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS(Edgar Glimpses Via Acquire Media NewsEdge) RESULTS OF OPERATIONS We are still in our development stage and have generated limited revenue to date. We incurred operating expenses of $107,867 and $739 for the years ended January 31, 2013 and 2012, respectively. These expenses consisted of general operating expenses and professional fees incurred in connection with the day to day 17operation of our business. Our net loss from inception through January 31, 2013 was $108,606. Cash provided by financing activities for the period from inception (January 24, 2012) through January 31, 2013 was $194,242, resulting from the sale of 25,100,000 shares of common stock issued to a director at $0.001 per share for $25,100 and 25,000,000 shares of common stock issued pursuant to a Registration Statement on Form S-1 at $0.005 for proceeds of $125,000 and net proceeds from shareholder loan of $44,142. Our auditors have expressed their doubt about our ability to continue as a going concern unless we are able to generate profitable operations. LIQUIDITY AND CAPITAL RESOURCES Our cash balance at January 31, 2013 was $80,649. Management believes our cash balance will be enough to fund operations for the next twelve months. OFF-BALANCE SHEET ARRANGEMENTS We have no off-balance sheet arrangements. PLAN OF OPERATION Now that we have completed our offering, our specific business plan for the next twelve months is as follows: Software application updates and changes to accommodate Beyond.com PINGIFY - BETA 1 (COMPLETED) * This version will include application tie-in to the main server database * Implement multi-city search, allowing requests to search in multiple cities simultaneously * Improving the look and feel of the application PINGIFY - BEYOND.COM INTEGRATION (COMPLETED) * Full integration of Beyond.com job searches from the Pingify mobile app to servers that do the data processing PINGIFY - BETA 2 (COMPLETED) * Improve user experience based upon feedback PINGIFY ITUNES CONNECT SUPPORT SITE (COMPLETED) * Redesign of app support page * Improve customer support and communications/updates to the customer 18 PINGIFY VERSION 2 APP SUBMISSION (COMPLETED) * Submit improved and finalized version to iTunes * Ideal release will have Multi-city search, Beyond.com integration, Facebook and Twitter integration PINGIFY - EBAY INTEGRATION (COMPLETE) * Integration is now complete. We have been accepted into the eBay Partnership Program. This gives Pingify International access to over 233 million users. As part of this program, Pingify receives $.06 - $.21 per click. PINGIFY - EBAY CLASSIFIED SITE INTEGRATION (2 MONTHS TO COMPLETE) * This integration will provide Pingify users access to classified/for-sale items. This integration will help increase our user base which we can direct regular eBay and other integrated sites. PINGIFY - HALF.COM INTEGRATION (3-4 MONTHS TO COMPLETE) * As an additional offering by eBay, Pingify will have access to the Half.com API that gives us access to millions of items for sale. Users will be directed to the Half.com site if a Ping matches their request. If a sale occurs then we receive 6%-14% of the sale price. PINGIFY - MAGENTO INTEGRATION (6 MONTH TO COMPLETE) * Pingify will offer integration services and a product widget that would provide individual vendors the ability to promote their products to our users. PINGIFY - AUTO TRADER INTEGRATION (6-8 MONTHS TO COMPLETE) * There are over 5000 dealerships that use the AutoTrader site to sell cars and other related items. We have been in a conversation with AutoTrade about integrating our technology into their site. The dealerships would be about to match their inventory of cars to the requests of our users. Our low-cost lead generation system will make it easier and more cost-effective to reach new customers as well as extremely transparent. PINGIFY - X.COMMERCE INTEGRATION (3 MONTHS TO COMPLETE) * Since Pingify is an eBay Partner and Developer, we have access to the x.com API that allows us to create the necessary technology for vendors to access our users. Similar to the eBay program we receive payment for user clicks. We are also working on a closer relationship with x.com by assisting in driving vendors into their offering. Each new vendor provides additional revenue to both eBay and Pingify. PINGIFY - 80 ELEMENTS ENTERTAINMENT ACQUISITION (1-2 MONTHS) * Pingify is in acquisition discussions with 80 Elements, a Vancouver based web and mobile development company with five years of progress and achievements. 80 Elements has established clients and contacts in the UK, LA and New York, delivering break through media delivery and data portability. Current projects include music applications through the cutting edge Drupal platform (an area of expertise) and mobile products to companies such as Warner Brothers and Dell. 19 BEGIN MARKETING AND SALES EFFORTS TWO STAGE STRATEGY With the release of the PINGIFY application, Pingify will build a database of consumer product demands. Once the database is built, we expect to be able to integrate with web sites and marketing companies to provide them the network to access these consumers directly with focused marketing campaigns. STAGE 1 - DEVELOPING AN ONLINE USER BASE We intend to release a new version by the end of May 2013 that will be integrated into eBay. As part of this integration we will receive approximately 10 cents per click. Our plan is to: * Support the application with an online marketing campaign through articles, blogs and social marketing as well as a launch of a Facebook embedded application and "free" version of the iPhone application * Add additional Agents, (e.g. Auto Trader, Kijiji) to PINGIFY * Improve the functionality of the application based on user replies and responses * Optimize the back-end servers. STAGE 2 - DIRECT INTEGRATION WITH VENDORS ONGOING SERVICE FEES Once implemented, there will be 3 specific ongoing revenue streams associated with the BRANDED PINGS PRODUCT: 1. Pings (or Impressions) 2. Clicks (actual reads of the data) 3. Purchases PINGS A Ping is considered a delivered advertisement to the end user and will be treated similar to an impression as charged by various online marketing services (ie AdSense, AdMob, etc). A Ping will be a highly targeted impression that has been specifically requested by the user. For the initial stages of this project, we intend to keep impression costs close to industry standards which are $.008 per impression cost. CLICKS Clicks are considered valid when the user is sent back to the client's network and where the Ping is read, but not acted on. The marketplace values the cost per click at $0.08. PURCHASES The ultimate goal is to get the user to purchase an item. If the user purchases an item due the click-through on the Pingify system, then Pingify would charge the Vendor a fee of approximately 1% of the purchase value. 20Based on raising $125,000 from our offering, we have budgeted the following amounts over the 12 months following the successful completion of this offering: Proceeds from our Offering: $125,000 Accounting $ 8,000 Legal $ 4,800 Advertising/Marketing $ 12,000 SEC Filing related Costs $ 3,500 Insurance $ 2,000 Server Cloud / Collocation $ 16,000 Office Supplies $ 500 Travel $ 2,000 Rent $ 950 Telephone/Fax $ 200 Development / Wages $ 48,000 Consultants $ 12,000 Management Fees $ 12,000 Dues/Subs/Licenses $ 2,000 Working Capital $ 1,050 These amounts may be adjusted based upon sales and revenue. 21 |