Jinglz, Inc. Report 03-23-2021

Jinglz, Inc.

 March 23rd, 2021

• Business rationale – Jinglz, Inc is a software as a service (SaaS) business that uses the front facing camera of any mobile device or computer to track engagement & slight changes in facial expressions second by second, frame by frame to measure people’s emotional reactions to potential commercials for brands, political campaign advertisements, movie trailers, court testimonies for lawyers, etc.
• Shares are purchasable by accredited investors for $1.50 with a minimum investment of $5,000.  To request contact info send email to Michael@DynastyWealth.com.
• Organic Growth Potential – Jinglz is targeting the global digital advertising market which has already surpassed $100 billion and video spending alone is projected to reach $31 billion in 2021. Jinglz has raised capital in the past for product development, but currently the majority of their offering is going to be used for advertising and marketing to increase revenues. Jinglz Emotion Trac technology has the capability to have applications that extend far beyond marketing and advertising. The global emotion detection and recognition (EDR) is projected to exceed $20 billion in 2021 and $33.9 billion by 2023.
• Inorganic Growth Potential – Jinglz is in talks with a potential partnership/licensing agreement with Sharia H Council which would connect their technology with the Islamic world. The Global Digital Advertising Market comprises $427 billion in revenue and the Islamic world comprises about 20% of this making up the potential for $84 billion in revenue and exposure to markets outside the United States which Jinglz is currently not targeting on their own. Jinglz will also continue to look for strategic acquisitions and mergers of companies and technologies that could better position them to take market share in their addressable market; these acquisitions could be expected in future fund-raising rounds.
• Valuation – Currently raising capital at $1.50 a share, a $20.8 million valuation.  

 II. Business Overview

• Company Description – A powerful patented technology that measures audience engagement and emotion. Jinglz has created a platform to build and run on-demand focus group tests that produce quantitative data for emotional reactions, levels of engagement, and measures of credibility.
• Products & Services – Jinglz offers an edge in the dishonest, expensive, and time-sensitive video content & advertising industry. Jinglz provides this edge through their AI-powered emotion detection and engagement verification platform.
• Customers & End Markets – Any and all businesses and brands who currently or in the past have used focus groups to attempt to foresee how the public might react to a statement, movie trailer or tv commercial can potentially become clients of Jinglz. This company is on track to disrupt the focus groups industry; cutting the time to get results in half and giving clients much more credible and quantitative outcome.
• Competition – There are numerous companies, both private and public that operate very similar technology to Jinglz. There are low barriers to entry to become a competitor of Jinglz; this could allow Jinglz to capture market share if they can keep a technological edge. Some competitors include Affectiva, Inc, Tobii AB, Noldus and Realeyes OU. The thing that separates Jinglz from the crowd is they have the only product among their competitors to have attention/engagement metrics. This is a key factor for companies or individuals looking to use this type of technology.  Microsoft uses a similar technology as well, but their focus is on HR departments and monitoring an entire office space with camera’s set up all around and not focused as much on engagement from the front-facing camera application.
• Geographic Exposure – Jinglz is beginning to target multiple industries within the United States and their potential business relationship with H Council would also give them exposure to global markets like Saudi Arabia, Egypt, Dubai, United Arab Emirates, and more.

 III. Management

• CEO Aaron Itzkowitz

   —  Track Record – Prior to JINGLZ, Aaron led Successories.com.  In 2014, he sold a division of the company at a substantial gain for the investors. He has extensive experience in technology management and driving growth across multiple start-ups and Fortune 100 companies.

  —  Compensation Structure – Aaron is the founder of Jinglz; he is paid an annual salary of $104,000 a year and he currently does not have any stock-based compensation.  Also, worth noting that Aaron owns 79.2% of voting rights through his 8.18 million shares of class B common stock.

• CFO David Markowski

  —  Track record – 30+ years growing businesses with experience in investment banking, financing start-ups, and public offerings. Served as CEO and Co-Founder of Newsgrade Corporation directing corporate development and technology expansion for an $18 million software project.

  —   Compensation Structure –  David is paid a consulting fee monthly alongside, he also has 150,000 warrants and 175,000 stock options that are exercisable at the current offer price that Jinglz is raising capital at (currently $1.50 a share).

• COO Bill Lickson

  —   Track Record – Seasoned veteran as a digital strategist and investor in several companies including startups based in Silicon Valley.  Former Director of Digital Strategy at Zimmerman, part of the TBWA worldwide network. Bill brings along years of experience in the television and cable television industries.

  —   Compensation structure –  Bill is currently not paid a salary but instead is compensated with stock options. He had 25% of his options vest after 12 months with the company and he has 5 years to exercise his options.  He currently owns 225,000 warrants, exercisable at $0.50 and 500,000 stock options that are exercisable for $1.00.

 IV. Risks & Considerations

• Risk 1 –  Low barriers to entry for any company who wishes to target the same market as Jinglz, with software as a service. This could lead Jinglz into a competitive market where the dominant technology and customer service will most likely control market share.
• Risk 2 – Jinglz has been operating at a loss since inception and they do not currently have the liquidity to become profitable. Jinglz plans to continue to keep their offering open for funding for the time being. The offering price will be raised as they have finished most of their product development and are now using the majority of their funds for marketing and advertising to increase their revenues.
• Consideration 1 – There are very small costs and good margins that come along with software as a service. This will allow Jinglz to ramp up their revenues by spending money on marketing and advertising while also controlling their costs.
• Consideration 2 – Jinglz is currently generating revenue from companies like Morgan & Morgan, Proskauer, Cozen O’Connor, McDermott Will & Emery and is also in talks with blue chip companies like Twitter, Disney, and Black Entertainment Television network (BET) is among its first customers.
• Consideration 3 – Jinglz does not have any systemic risk to the over all stock market because it is a private company. This comes with an associated risk of venture capital investing as a whole. One should be accumulating a diversified portfolio of private companies.
• Consideration 4 – Jinglz has been awarded multiple patents for their technology and tools that measure and verify user experience with video content.
• Consideration 5 – Jinglz has acquired more than 1600 new shareholders from Regulation CF crowdfunding offerings.   Having a large shareholder base consisting of investors lowers the risk for all new investment since Jinglz can reach out to its existing shareholders if need be for additional capital via crowdfunding offerings.