Sagoon, Inc.

 Offering Details: Sagoon, Inc. is a social commerce start-up incorporated in the United States, India, and Nepal. It plans to generate revenues from advertising and the sale of gift cards and coupons. The company’s platform has over 5.4 million users from 145 countries and 4,000 investors globally. In 2017, the company had raised $4.6 million through its first Reg A + (Mini-IPO) offering. On 1^st June 2020, the company launched a new Reg A + “Mini-IPO”, under which it plans to sell more than 300,000 shares of Class C Common Stock to the general public at $30 per share, with the minimum investment being $900. The company can open up to the 12 months from the date of qualification, but the company can close this offering any time on its sole discretion.

Use of Funds: The company is raising funds for user growth, platform scale, technology development and new product feature release. If it successfully raises $10 million, Sagoon intends to use those funds to add 15 million users to the platform, develop Artificial Intelligence (AI) and Blockchain methods to simplify user communication and ensure data security, develop, and release advertising module to start generating company revenue and to introduce Chatting and shopping feature.

Use of Funds (Source: Company Reports)

Financial Highlights: So far, the company has not realized net profits and has been operating at a net loss since inception. For the six months ended 30 June 2020, the company’s operating expenses stood at $406,441 compared with $487,624 in pcp, representing a decline of 17%, primarily due to decreased spending on sales and marketing and research and development. As at 30 June 2020, the company had cash and cash equivalents of $302,280 and total liabilities of $1.527 million.

Risks: The company is exposed to the risks related to the rapid changes in technology and customer demands. It is also exposed to the risks related to the uncertainties surrounding the ongoing COVID-19 pandemic.

Summary: Sagoon, Inc. has a limited operating history and has not yet generated revenues from its planned principal operations. Looking ahead, the company do not anticipate paying dividends in the near future and any dividends will be dependent upon future profits, if any. The company is currently targeting a collective ~$300 billion gifting and advertising markets in the United States and India. It is currently accepting investment from public and institutional investors, which is open only for a limited time. 

DatChat, Inc.

Offering Details: DatChat, Inc. is involved in the designing and development of a mobile-based messaging application (the “DatChat Messenger”). The company utilizes its patented technology to provide fast, safe, and easy messaging for its users with special focus on their privacy and security. Currently, the company is focused on developing it’s blockchain and “DRM” to solve cybersecurity issues, including issues relating to email, filestorage and financial transactions. The company is conducting a Reg. A+ Tier 2 offering that allows us to raise up to $50 million dollars under Title IV of the Jobs Act. The company is yet to submit Form 1-A registration statement to the SEC for qualification and is subject to ongoing reporting requirements. As per the offering circular, the company is proposing a minimum of 25,000 shares of Common Stock and maximum of 25,000,000 shares of Common Stock.  The company intends to use the proceeds for further development of DatChat Messenger, development of new technology and marketing.

Financial Highlights: The company has a limited operating history and has not yet generated any revenues. For the six months ended 30 June 2020, the company reported total general and administrative expenses of $126,752. Net loss for the period stood at $413.49k. As at 30 June 2020, the company had cash of $237,000 and borrowings of $319,224.

H1FY20 Result Highlights (Source: Company Reports)

Key Risks: The company is subject to risks of failure that are particular to new technologies, including the possibility that DatChat Messenger will not gain market acceptance; proprietary rights of third parties may preclude the company from marketing a new product or service; or DatChat Messenger may not receive the exposure required to obtain new users. The company may face intense competition which could prohibit it from developing a customer base and generating revenue.

Summary: Looking ahead, the company plans to grow both organically and through strategic acquisitions. The company’s growth strategy includes enhancing its products and services to grow its customer base and enter the global market. In the long run, the company intends to derive revenues from advertisement sales, technology licensing, and other forms of revenue. We also continue to develop and refine functions of DatChat Messenger. Investors can directly invest in DatChat, Inc. through its Reg A+ Tier 2 public offering.

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