REGO Payment Architectures, Inc., a company focused on monetizing its Mazoola® Digital Wallet Platform in the FinTech industry, has released its annual Form 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the market. The Mazoola® platform is designed to enable minors to transact securely online with parental oversight, ensuring compliance with COPPA and GDPR regulations.
Financial Highlights
Revenue: $0 million. The company has not generated significant revenue since its inception.
Net Loss: $11.6 million. Net loss attributable to common stockholders decreased by $7.3 million compared to the previous year, primarily due to a decrease in general and administrative costs and sales and marketing expenses.
Sales and Marketing Expenses: $0.6 million. Decreased by $1.2 million due to the replacement of certain marketing consultants with more cost-effective service providers.
Product Development Expenses: $3.3 million. Increased by $0.4 million due to additional programming, cyber-security, compliance, and new product development costs.
General and Administrative Expenses: $3.7 million. Decreased by $7.1 million due to the absence of stock grants to officers and directors and reductions in consulting options, employee options, professional fees, payroll costs, and board fees.
Business Highlights
Business Focus: REGO Payment Architectures, Inc. is focused on monetizing the Mazoola® Digital Wallet Platform through white label, licensing, and partnership agreements. The platform is designed to enable minors, particularly those under 13, to transact in a secure online environment with parental oversight, while remaining COPPA and GDPR compliant.
Product Offering: The Mazoola® app is a family-focused mobile banking solution that provides a digital financial payments platform. It allows minors to complete chores and learn about financial management in a secure environment.
Intellectual Property: The company holds a portfolio of trade secrets and four US patent awards, which support its technology and business model. These patents include systems for verifying the age of internet users and managing virtual piggy banks.
Regulatory Compliance: REGO's platform is designed to comply with COPPA and GDPR regulations, which are crucial for protecting children's online privacy. The company has received the GDPRkidsTM Trustmark from PRIVO, indicating its commitment to privacy compliance.
Target Market: The company is targeting established brands with large family-focused account bases, including banks, telecommunication companies, and media distributors, to leverage its platform for youth financial literacy and money management.
Future Outlook: Management believes that building on its COPPA compliance advantage will allow REGO to expand its platform across multiple financial markets. The company plans to license its technology to partners who can deploy and customize it under their own labels.
Strategic Partnerships: In 2024, REGO executed a strategic partnership agreement with Computer Services, Inc. (CSI) to integrate its family wallet into CSI’s digital banking platform, making it available to over 500 financial institution customers.
Product Development: In 2024, enhancements to the Mazoola® app included migrating to new providers, integrating with new channel providers, modernizing backend code, and implementing enhanced fraud monitoring.
Market Opportunity: The company has identified an emerging need for a financial platform that provides Gen Z and Gen Alpha with an alternative to traditional banking, focusing on safe mobile payment solutions and financial literacy.
Expansion Plans: REGO plans to expand its suite of products to address the financial management needs of aging parents, with the introduction of the Silver Shield product aimed at preventing financial exploitation of the elderly.
Strategic Initiatives
Strategic Focus: REGO Payment Architectures, Inc. is focusing on expanding its market reach by leveraging its COPPA compliance advantage and licensing its platform to partners in various financial markets. The company aims to broaden its reach while reducing marketing expenses by allowing partners to private label its technology. Additionally, REGO is targeting established brands with large family-focused account bases to integrate its platform, enhancing youth financial literacy and safe money management.
Capital Management: The company has not generated significant revenue since inception and has financed operations through public and private offerings of debt and equity securities. A key capital management activity includes an Investor Private Line of Credit agreement with James Davison, allowing for unsecured loans up to $20 million to support operations. The company has not repurchased any common stock and does not anticipate paying dividends in the foreseeable future. As of March 31,2025, the company has a cash position of approximately $1.6 million, which is expected to finance operations through June 2025.
Future Outlook: REGO anticipates that significant revenue generation will not occur until at least the second quarter of 2025. The company plans to continue seeking additional financing through the sale of debt and/or equity securities to support its business plan. The focus remains on developing customer awareness and confidence in its services, with an emphasis on managing expenses and conserving cash. The company acknowledges the risks associated with limited financial resources and the need for successful commercialization of its platform to sustain operations.
Challenges and Risks
Revenue Generation: The company faces challenges in generating significant revenue and is reliant on the growth of mobile devices and digital payment adoption. The company is also targeting new markets, such as financial literacy for children and financial management for aging parents, which presents both opportunities and risks.
Financial Stability: The company has a history of losses and requires additional capital to continue operations, with auditors raising substantial doubt about its ability to continue as a going concern. The business model is unproven, and management has limited experience in the online payment industry, which may affect the company's ability to execute its business plan.
Market Acceptance: The company is developing a new service platform with uncertain consumer and industry acceptance, and fluctuations in demand could adversely affect financial results.
Technological Risks: Technological changes and security breaches pose significant risks, and the company must remain proactive in technological development to remain competitive.
Intellectual Property: The company also faces risks related to intellectual property, including potential infringement claims and the lack of patent protection.
Regulatory Compliance: The company is exposed to regulatory risks related to compliance with COPPA, GDPR, and other privacy laws, which could result in significant penalties and affect business operations.
Introduction: My name is Dr. Pierre Goyette, I am a enchanting, powerful, jolly, rich, graceful, colorful, zany person who loves writing and wants to share my knowledge and understanding with you.
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