Technology, Entertainment & Safety Combined
Mobile apps have grown exponentially in popularity over the past several years. According to app industry research firm, App Annie, the global app market saw gross revenues of $41.1 billion in 2015. Furthermore, the researcher sees global app revenue rising to $50.9 billion in 2016 and on track to reach $101.1 billion in revenues by 2020.
Managing life through applications continues to become easier, as app companies have focused on ease of use and keeping the mobile user coming back to use the app. Smartphones and apps are becoming such a common part of our society that even small children are getting smartphones.
According to a study from late 2015 by the American Academy of Pediatrics, 75% of four-year olds have smartphones. Out of the 350 survey participants that were aged six months to four years, the results showed that 97% of the participants had used a smartphone and 50% of the young participants said they had their own T.V. in their room. The conclusion from the study was that children are getting access to smartphones at a younger and younger age, as mobile devices continue to become commonplace in society. But, while the world of mobile computing has its many benefits, it has also created a new frontier for identity theft, fraud, and other criminals. As more and more children being using smartphones at a younger age, how can their parents ensure their safety online from these pitfalls?
Meet WorldFlix, Inc. (OTCPink: WRFX). The company is an equity holding company that focuses on niche markets. Within the company’s App Farm business segment, lays a new app initiative called Swantry. Swantry is launcher-app that creates a safe mobile environment for children that can be monitored by their parents. The app features military-grade, triple encryption technology that allows the child’s identity, messages, apps, videos, pictures, and other sensitive information to be safe from hacking, cyber bullying, sexual texting, etc. Based on parent monitoring keywords, the app creates an algorithm that alerts the parent if the child is doing something they should not be doing online.
As of May 31, 2016, WorldFlix, Inc. (OTCPink: WRFX) has begun formal testing of the Swantry app and will continue to work on a beta throughout June based on the results of the app test. The company has said there will be two different versions: a free basic version, and a paid premium version that will contain more features. However, pricing is not currently known. It is important to note that the Swantry app will be only available to Android users for now, as Apple, Inc. (NASDAQ: AAPL) has some reservations with app developers creating launcher-apps. Overall, Swantry is one of the few answers to a growing problem that will only get worse with time. WorldFlix, Inc. (OTCPink: WRFX) plans a patent filing on its Swantry technology.
Another business with WorldFlix, Inc. (OTCPink: WRFX)’s App Farm business that shows high growth potential for the company is Drobbits. Drobbits is a program that allows the average person to build their very own game using a browser-based game creator. With no coding skills required, Drobbits breaks down the learning curve for new game creators and gives them a chance to make their very own game fully in the cloud with no downloads. (Note: no competitor has cloud based game making like Drobbits will offer). Of course, if you happen to be a proficient coder, Drobbits has features that will accommodate more advanced game creators. Once the game is created, Drobbits users will be able to play their game in action right there and interact with their creativity. The Drobbits platform is also continuing to look at expansion into virtual reality (VR), thereby allowing users to create and play their very own games in VR. WorldFlix, Inc. (OTCPink: WRFX) Founder and CEO Brad Listermann says Drobbits “could truly change the independent gaming world. No other software in gaming can accomplish this- or come close, in my opinion. This is truly the next level,” (WorldFlix.co).
Aside from Swantry and Drobbits, App Farm is another business with WorldFlix, Inc. (OTCPink: WRFX)’s app business arm that features a shark tank-like content for app developers to gain backing for their apps, in exchange for royalties and a percentage to WorldFlix, Inc. (OTCPink: WRFX). Outside of the apps business, WorldFlix, Inc. (OTCPink: WRFX) has a film & entertainment business and a 25% stake in GreenFix Energy, which specializes in alternative energy from an ocean source. However, CEO Brad Listermann has noted that the company is mostly placing its App Farm contest and film business as a lower priority in order to get Swantry and Drobbits online and out of development. Ultimately, Swantry and Drobbits continue to hold the key to the future of WorldFlix, Inc. (OTCPink: WRFX), as the equity holding company looks to break into niche markets.
Valuation and Competition Analysis
Turning to valuation, WorldFlix, Inc. (OTCPink: WRFX) currently has a market cap of $272,358, as of May 2016. In addition, the company has 950 million shares authorized, nearly 469.6 million shares outstanding, and a float of around 7.7 million shares, as of March 2016. WorldFlix, Inc. (OTCPink: WRFX) reported fiscal 2015 total revenue of $41,000, but a net income loss of $60,000.
While WorldFlix, Inc. (OTCPink: WRFX) looks to cash in on high growth, niche markets, there is not currently a whole lot of direct competition with Swantry or Drobbits. However, there are many companies that produce niche apps, acquire apps, and other business structures that closely mirror WorldFlix, Inc. (OTCPink: WRFX).
AppSwarm, Inc. (OTCPink: SWRM) is an app developer company that focuses on creation, testing, and programing of apps across all digital platforms. The company also acquires apps with the purpose of growth. AppSwarm, Inc. (OTCPink: SWRM) has a market cap of over $116.1 million, as of May 2016. Furthermore, the app developer had 810 million shares authorized as of October 2015 and 105.6 million shares outstanding, as of January 2016. The app company reported total revenue of $11,000 in full year 2015, but a net income loss of $2,000.
Cyber Apps World Inc. (OTCPink: CYAP) is a development-stage company that hopes to develop a worldwide ecommerce platform through the acquisition and development of mobile apps. As of May 2016, Cyber Apps World Inc. (OTCPink: CYAP) had a market cap of $878,397, 50 million authorized shares, and over 19.5 million outstanding shares, as of May 2016. The developing company did not earn any revenue during full year 2015, but posted a net income loss of $436,000.
LifeApps Brands Inc. (OTCPink: LFAP) is a niche app company that focuses on health, fitness, sports, and other active app topics. In addition to developing and acquiring apps, the company hopes to develop physical products and other related services. As of May 2016, LifeApps Brands Inc. (OTCPink: LFAP) has a market cap of around $974,500 and shares outstanding of 20.52 million. During full year 2015, LifeApps Brands Inc. (OTCPink: LFAP) reported total revenues of $140,000, but a net income loss of $616,000.
Bridgeline Digital Inc (NASDAQ: BLIN) is a developer of a web management product platform called iAPPS, that allows non-technical users to build and fully create their own website, online stores, and other ecommerce solutions. The company also offers a lineup of analytics tools, strategy services, and other development services. As of May 2016, Bridgeline Digital Inc (NASDAQ: BLIN) has a market cap of nearly $4.1 million, 5.43 million in shares outstanding, and 724,660 share float. During fiscal 2015, Bridgeline Digital Inc (NASDAQ: BLIN) reported total revenues of $19.22 million, but a net income loss of $16.8 million.
CounterPath Corporation (NASDAQ: CPAH) specializes in the development, marketing, and designing of computer and mobile app software (including VR). In addition, the company offers gateway server software products. As of May 2016, CounterPath Coporation (NASDAQ: CPAH) had a market cap of $10.5 million, 4.54 million in outstanding shares, and a float of 1.44 million shares. During full year 2015, CounterPath Corporation (NASDAQ: CPAH) reported total revenues of just over $12 million, but a net income loss of $4.44 million.
Overall, comparing WorldFlix, Inc. (OTCPink: WRFX) with these five relatively-close competitors is very telling of the company’s potential. Take the largest competitor by market cap, AppSwarm, Inc. (OTCPink: SWRM), with over $116.1 million. When looking at market cap, AppSwarm, Inc. (OTCPink: SWRM) towers over WorldFlix, Inc. (OTCPink: WRFX)’s market cap of $272,358, yet WorldFlix, Inc. (OTCPink: WRFX) reported $30,000 more in total revenue for annual 2015. Furthermore, Cyber Apps World Inc. (OTCPink: CYAP) has not earned any revenue, yet it has a market cap that is around $600,000 greater than WorldFlix, Inc. (OTCPink: WRFX). The bottom line here is that this shows that WorldFlix, Inc. (OTCPink: WRFX) has the capability of seeing its market cap launch into the single-digit millions within the next year or two, if the company continues on schedule with Swantry and Drobbits.
In conclusion, WorldFlix, Inc. (OTCPink: WRFX)’s Swantry app and Drobbits gaming platform represent massive growth potential for the company. Swantry is the only true answer to the growing problem of keeping our children safe while they use their smartphones and Drobbits breaks down the coding learning curve for gamers by allowing full game customization without coding. The two businesses continue to be in the developing stage for WorldFlix, Inc. (OTCPink: WRFX), however, they represent great growth and even buyout potential.