Phantom Fiber Corporation (OTCBB: PHFB)

Phantom Fiber Corporation 144 Front Street West, Suite 580 Toronto, Ontario  Canada, M5J 2L7 Phone: 416-703-4007  Fax: 416-703-0900 E-mail (IR): PHFB@firstcapitalinvestors.com Website: www.phantomfiber.com

Company Overview

Phantom Fiber Corporation (PHFB) is developing and marketing wireless software applications and mobile solutions that offer the broadest support of the world's leading mobile platforms and environments. Using its proprietary data transmission technology - Smart Streaming™ - the Company`s wireless platform software allows customers to extend the transactional capabilities of their websites and deliver fully secured transactions wirelessly at speeds significantly exceeding browser-based mobile phone applications. The software works with over 1,500+ different mobile devices, including personal digital assistants (PDA) and mobile phones with Microsoft PocketPC, Palm, Symbian, i-Mode, Blackberry, Research In Motion, Smart Phone and Java platforms. In addition, PHFB currently supports over 600 network carriers worldwide.

Initial applications for the Company’s mobile solutions were in online gaming, such as horse racing, fixed odd game providers, and sports book software companies. These applications required speed, rapid account updates, security and a rich user experience. With an established brand in the gaming and entertainment sector, PHFB`s platform is also being deployed by enterprises seeking to implement high performance mobile applications in remote video surveillance, banking and brokerage, logistics and distribution.

A number of software providers and clients have signed multi-year exclusive contracts with Company. Some of the top sports book and horse racing software providers partnering with PHFB include: United Tote, Finsoft, Orbis, BetOptions, BidNation, IQ-Ludorum, Kiron Interactive, Digital Gaming Solutions, BoDog, Interactive Gaming & Wagering, and ASI/Extension. The Company has also signed agreements with Scientific Games (p.ari-mutuel), Sports Acumen, Churchill Downs, YouBet and Phantom EFX in the U.S. and Swiss Lottery and Electracade in Europe. PHFB has partnered with key enterprise and ecommerce companies such as AireSurf Networks Inc., Guard Dev, Citadel Commerce, FireOne Group and Navaho Networks, among others. 

The Company was founded in 2002 and is based in Toronto, Canada. PHFB conducts its business through its wholly-owned subsidiaries Phantom Fiber Corporation and Phantom Fiber Inc.
 

Investment Highlights

According to Gartner research, worldwide mobile phone sales reached 1.15 billion units in 2007 and are forecast to grow 11% to 1.28 billion units by year-end 2008.  The mobile phone market is poised for double-digit growth in 2009 as well. This growth is supported by robust demand for mobile content and software solutions.

According to iSuppli Corp., the global market for mobile phone premium content, including music, gaming and video, is expected to expand to more than $43 billion by 2010, rising 42.5% annually from $5.2 billion in 2004 .

Worldwide mobile gaming revenues are on-track to increase 16.1% in 2008 to $4.5 billion, according to Gartner, and grow 10.2% annually between 2007 and 2011, with worldwide end-user spending of $6.3 billion in 2011. The North American market is forecast to grow from $845 million now to approximately $1.2 billion in 2011.
 

Business model providing wireless data transition solutions

PHFB develops and markets wireless software applications and mobile solutions. Its products offer broad support for all of the world's leading mobile platforms and environments. Using the proprietary data transmission technology - Smart Streaming™ - PHFB wireless platform software allows customers to extend the transactional capabilities of their websites and deliver fully secured transactions wirelessly at higher speeds than browser-based mobile phone applications to over 1,500+ assorted mobile devices. PHFB also supports over 600 network carriers worldwide.

Focus on wireless gaming and entrainment sectors

PHFB’s applications represent a suite of “game frames” developed to quickly enable wireless gambling solutions in sports betting, including horse racing and team wagering or in softer games like bingo and poker. Wireless provides a cost-effective alternative to the traditional overhead associated with placing wagers and giving users access to wagering systems directly from their seats. It also allows race operators to reduce the number of terminals and cashiers required on race day. The Company has integrated its solution with the world’s leading tote and gaming providers to deliver the best value-added functionality.

Expansion into financial services, healthcare and logistics verticals

Over the past year, PHFB has expanded its sales and marketing efforts and secured clients in the financial and mobile payments vertical (such as FireOne, Citadel, and Navaho Networks), healthcare, logistics and distribution software providers, and the security and remote-monitoring industries. Last quarter, PHFB successfully rolled out a real-time foreign exchange trading application for FX Solutions and a personal healthcare management system for My Medical Records. The Company has also secured a contract with GTX Corp to develop a Personal Location System, with numerous applications in pari-mutual, lottery, athletic and personal location tracking.

Client portfolio creates recurring revenues

In the last four years, PHFB has built a sizable portfolio of clients in various verticals. These clients include Finsoft PLC, Real-Time Gaming, Bid Nation, Digital Gaming Solutions, Kiron Interactive, Bet Options, Dynamite Ideas, GTS, Orbis, and Parlay Entertainment. The Company recently signed Scientific Games, Sports Acumen, Churchill Downs, YouBet and Phantom EFX in the U.S.

Generally, PHFB charges a one-time fee ranging from $50,000 to $250,000 for integration and customization services to match the functionality of the client’s Internet offerings. In addition, on customers with a client base greater than 10,000 mobile users, the Company generates recurring revenues via a revenue-sharing or monthly subscription arrangement. 

Expansion into European, Australian and Asian markets

During 2008, the Company entered the E.U. market by signing agreements with Swiss Lottery and Electracade.  In October 2008, PHFB announced further expansion into Australia and Asia through an agreement with Smart Ventures and Beach Hut Media. PHFB’s focus in the Australian and Asian markets is initially in three vertical markets: Gaming, Retail, and Financial Services. The Asian markets have been recognized for their mobile society and dependence on the latest mobile technologies, eclipsing PC-based alternatives.

Triple-digit revenue growth

During the last four years, PHFB has reported impressive revenue growth, confirming increasing market acceptance of offered services. The Company’s revenue increased 309% year-over-year to $517,678 during the first six months of 2008 because of significant new customer additions. Recently signed agreements support our outlook for 2008 revenues approaching $2 million. Going forward, we expect the latest agreements to drive 100-200% annual revenue growth through 2010.
 
 

Business Model

The Company has created a mobile transaction enablement software business that provides a mobile transport layer and delivers encrypted packets over cellular networks on behalf of hosting clients. PHFB develops wireless software applications and mobile solutions that allow enterprises to experience high-performance functionality on today’s mobile devices and global communication networks. The Company`s wireless data delivery platform allow users to experience internet-like graphics and internet-like speed in an end-to-end highly secure solution across 1500+ mobile devices and 600+ network carriers. All applications based on PHFB’s proprietary platform can be applied to any enterprise requiring speed and a rich-user experience in their mobile solutions. Once deployed, the platform utilizes PHFB`s proprietary Smart Streaming™ data transmission technology to deliver high-speed, client-side performance that intuitively adapts to device and network properties.

The Company initially focused on applications n the gaming and entertainment sector (e.g. casinos, sports betting, lottery, racing, poker rooms, etc.). PHFB’s technology provides a suite of “game frames” developed to quickly enable wireless gambling solutions in sports betting where speed and simultaneous delivery matters.  PHFB’s clients represent approximately 300 sports bookings and horse racing sites or about 75% of the sports wagering and horse racing industries.

In the last two years, the Company has expanded its platform functionality with strong live streaming video technology and wireless financial solutions.  PHFB provides an integrated interactive component to existing monitoring systems that allows security companies to remotely access their systems through hundreds of different mobile device types. The Company`s proprietary technology gives customer instant access, via their mobile device, to their business surveillance systems and also provides a secure connection for monitoring  home-based security, child care facilities and other properties.

The Company is expanding into the financial sector and recently signed a multi-year contract to deliver an integrated mobile solution for FX Solutions, LLC, a leading U.S. online foreign exchange broker serving both retail and institutional customers. PHFB`s mobile solution will integrate directly into FX Solutions proprietary Global Trading System platform to provide new functionality and features for traders.

The Company combines low implementation costs with a rapid deployment strategy using reusable software objects to reduce initial purchase barriers. PHFB’s business model generates revenues through the sale of proprietary software and custom integration services. The Company typically enters into exclusive multi-year, revenue-sharing agreements with partners who use the Company’s technology to offer services or functions such as games, content and other features. 

PHFB typically charges a one-time fee ranging from $50,000 to $250,000 for integration and customization services. For customers with over 10,000 mobile users, a service charge or transaction fee applies. The Company also participates in revenue- sharing or monthly subscription arrangements. 

Corporate Strategy

The Company plans to develop additional products and services, innovative features, and expand distribution to attract new customers and enhance its value for existing clients. In implementing its initial strategy, PHFB established the following criteria: 

• Users were likely to be “early adopters” of wireless technologies; 
• There was no dominant competitor apparent; 
• The Company could implement a stable recurring revenue model; and
• Focus on consumer-based applications that leverage product portability. 

In addition, PHFB intends to further penetrate vertical markets where it has a presence.  Each client typically represents several operators or sites licensing the Company’s software. As a result, each partnership agreement results in the deployment of PHFB’s technology across a number of sites and creates backlog. The Company is working through the backlog amassed on existing contracts and helping its partners market their mobile products. To address this backlog, PHFB is introducing methodologies and product constructs designed to more quickly build brand for the underlying operators.
 

Technology

The language spoken by the application server must be translated into a format that the mobile device can understand. PHFB’s Advanced Wireless Platform is the module that connects the application server portion to the end-user client. Essentially, the mobile solution may be viewed as just another communication channel from the back-end’s perspective, resembling that of the existing Internet portal. Since the mobile solution just plugs into the existing application framework, no changes or additional support are required for hosting the mobile solution. 

Source: the Company`s website

The Company’s wireless platform is built using a building block or object approach. This technical architecture was chosen to protect performance and ensure scalability on the device. Some of the primary features of the platform are:
 

• Enhanced user experience: The wireless framework offers a rich graphic experience without compromising performance.
• Cross-platform & network compatibility: The client-side software supports Windows/CE, Palm, Symbian, Apple, i-Mode, RIM Blackberry, SmartPhone and Java-enabled phones (J2ME). This cross-platform compatibility eliminates the need to recompile the application for devices running different operating systems, using different devices and running on different network protocols.
• Performance: The client can deliver Internet-type speed across networks. This approach puts less demand on the server and network and allows the Company to provide the user with improved performance and better graphic presentation.

• Secure State Management – Maintains a checkpoint connection in “no signal” areas. Should a user lose signal for a period of time, their mobile device will auto refresh once a connection is re-established. 
• Security – The communication component of the Company’s software uniquely delivers an end-to-end encrypted secure solution over a secure socket layer (SSL) similar to secure internet sites.
• SmartStream™ – Communications are handled using a proprietary raw data format to provide landline Internet speed on today’s wireless devices. SmartStream also queues and prioritizes transmissions to assure a high quality user experience and application responsiveness.
• Client Libraries - Presentation graphics and animation are stored in local device libraries, eliminating redundant delivery and creating a vivid user experience without compromising performance. 
• Store & Forward – Users without wireless connectivity or in a weak signal area can continue to use PHFB’s software through a local storage method. The software incorporates an encrypted database on the device that can be synchronized once a signal is detected. This allows enterprise customers to continue collecting or referencing information from mobile device without hindering the work flow process. a

Services

Mobile gaming

The Company has partnered with the world’s leading content developers and platforms to provide operators with the widest range of content for mobile devices. PHFB’s gaming offering provides superior high-resolution interactivity complemented with speed rivaling the PC experience. 

PHFB’s current content offering includes:

• Traditional Casino Games, such as Peer-to-Peer Poker, Blackjack and Roulette;
• Bonus and Progressive 5 Reel Multi-line
• Animated Slots
• Lottery, Keno, Bingo and Scratch Tickets;
• Virtual Horse Racing;
• Fixed Odd and Skill Games;
• Reverse Auction Products.

Mobile provides a cost-effective alternative to the traditional overhead associated with placing wagers and giving users access to wagering systems from their seats. It also allows race operators to reduce the number of terminals and cashiers required on race day. 

The Company has integrated its solution with the world’s leading tote providers to deliver the following value-added functionality:

• Account Access via existing online username/password that provides full transactional capability including cashier access, reward points, integrated customer support and detailed transactional history. 
• Program Display in a real time format and detail/summary screens that provide odds, MTP, scratches, last minutes changes, news alerts, program and handicapping information, and weather conditions.
• Live Alert System/SMS Channel that directs players immediately to the wager window when a user- triggered event occurs. 
• Video and Multi-Media tools that allow players to tap into live video feeds or search archived information to be played on-demand.

PHFB’s mobile banking solution extends a highly personalized offering of timely, relevant information to banking clients. 

Some of the features provided by the Company`s platform are:

• Basic Account access;
• Bill payments and management;
• Transfer between accounts;
• Notifications on service upgrades;
• Integrated customer care via email and online chat;
• Access to credit, mortgages and investment accounts;
• Mobile Trading and investing;
• Branch/ATM finder.

PHFB’s mobile trading solution extends a highly personalized offering of timely functionality and reliable information to a client. Features include:

• Real-time trading that delivers true real-time quotes with no delays and the functionality client need to buy, sell, set limits and view trade histories
• Single click trading with the option of confirmation windows to minimize the risk of data entry error and increase customer confidence;
• An interface consistent with client’s existing system which enables  full, fast and accurate trading without a long learning curve.
• Live graphing of real-time data and market information in a number of formats, including simple trending or comparison charting, or more complex analytical charting such as Bollinger Bands.

Industry Outlook

According to Gartner research, worldwide mobile phone sales reached 1.15 billion units in 2007 and are expected to approach 1.28 billion units by year-end 2008, an 11% increase.  The market is poised for 10% growth in 2009. Mobile phone sales growth will increasingly rely on emerging markets as mature regions, such as Western Europe, Japan and North America, reach saturation. 

Nokia achieved a 37% market share in 2007 when it sold slightly more than 430 million phones worldwide. Although its market share slipped, Motorola maintained second place at 14%, but the gap narrowed between it and third-placed Samsung with 13% market share. Annual worldwide revenues from mobile phone sales surpassed $110 billion in 2007.
<<<

Management

Jeff Halloran - Founder, President and CEO

Mr. Halloran brings to the Company over 20 years of experience in emerging digital technologies and telecommunications. He became CEO, President and Chairman of PHFB in January 2002. Mr. Halloran assumed the positions of Principal Financial Officer and Principal Accounting Officer effective January 1, 2005. From March 2001 to November 2001, he was CEO of Sona Innovations Inc., a wireless software company. From March 1989 to February 2001, Mr. Halloran was CEO and President of Relational Solutions Inc., an international consulting firm specializing in information management and strategic information planning. From August 1987 to March 1989, he was a Consulting Manager for Oracle Corporation providing database consulting services. Mr. Halloran graduated from St. Clair College in 1982 with a degree in business administration. 

Herb Sears - Chief Technology Officer 

Mr. Sears brings over 14 years of experience in software product development and management to Phantom Fiber. He has been Chief Technology Officer since January 2002. From November 2000 to December 2001, he was Vice President-Technology of Sona Innovations Inc., engaged in software development. From May 1996 to October 2000, Mr. Sears was the Director of Technology of Angoss Software Corp., a publicly-traded data mining software company, and was responsible for implementing the current wireless solution at the largest bank in Canada. From June 1992 to May 1996, he was a Senior Developer and programmer employed by CS Computing Services Inc. Mr. Sears graduated from DeVry Institute of Technology in 1989 with a degree in computer science. 

Shane Lourensse - VP Business Development

Mr. Lourensse has over 10 years experience in sales with software and technology based business solutions. Prior to joining Phantom Fiber, he was a Senior Account Manager in the technology consulting division of Telus, Canada’s second largest telecom and wireless carrier. Previously,  Mr. Lourensse was Sales Director for a publicly-traded company specializing in software solutions for the online gaming market.

Dennis Logan - Director

Mr. Logan became a director in September 2007. He currently serves as a Managing Director of Investment Banking for Desjardins Securities. Prior to joining Desjardins Securities, from May 2005 until June 2007, Mr. Logan was a Director in the Investment Banking Group at Westwind Partners where he focused on both corporate finance and merger & acquisition activity in the Real Estate, Technology and Special Situations sectors. Before tha,t Mr. Loganheld Investment Banking positions with LOM Ltd from August 2003 to January 2005, CIBC World Markets from April 2000 to May 2003 and TD Securities Inc. from May 1998 to April 2000. He began his career in financial services in September 1994 as a staff accountant with Ernst & Young LLP. Mr. Logan holds both an Honours BA Philosophy & Economics (1991) and an MBA (1994) from the University of Toronto and is a Chartered Accountant.

Shimon Constante - Director

Mr. Constante became a director in November 2006. He is the CEO of mPortico, a private mobile distribution and marketing services provider. Prior to founding mPortico, from March 2003 until August 2005, Mr. Constante was the Head of Mobile Business Development at 888.com, an online entertainment company. Prior to that, from July 2000 until January 2002, Mr. Constante was the Head or Technology and Business Research at Aduva, a privately-held technology company. Mr. Constante received a B.A. in Psychology in 1999 and an Executive MBA from the Kellogg School of Management at Northwestern University in 2004. 

Konstantine Lucas - Director

Mr. Lucas became a director in February 2006. He currently serves as Executive Vice President, Warner Bros. Domestic Cable Distribution. Prior to his Warner Bros. employment, from September 1998 until April 2000, Mr. Lucas was a consultant to the media industry, including cable networks and MGM Studios. Prior to that, from May 1995 to August 1998, Mr. Lucas was President of Programming for the Family Channel. Before joining the Family Channel, from August 1986 to September 1993, Mr. Lucas was Executive Vice-President, Viacom Entertainment Group, and President, West Coast Operations and Viacom Productions. Before that, Mr. Lucas held several positions at ABC Entertainment, culminating in his position as Vice-President and Assistant to the President of ABC Entertainment.

Stephen Gesner - Director

Mr. Gesner became a director on February, 2006. Mr. Gesner currently serves as the Executive Vice President and CIO of Resolve Corporation. He previously served as Chief Information Officer of Meridian Credit Union from April 2005 to December 2007. From May 2004 to March 2005, Mr. Gesner was the Vice President of Financial Services Marketing for TELUS Communications. During the period May 2003 to December 2003, he served as the CTO for Cap Gemini Ernst and Young Canada. Before that, Mr. Gesner worked for 14 years at TD Bank Financial Group. Mr. Gesner began his career with Ford Motor Company of Canada in September 1979 and held several positions in Finance, Treasury, Production Planning, and Industrial Relations through December 1988. Mr. Gesner holds an Honours BSc from York University (1977) and an MBA from the Schulich School of Business (1979). 
<<<

Company Contacts

Phantom Fiber Corporation
144 Front Street West, Suite 580
Toronto, Ontario 
Canada, M5J 2L7
Phone: 416-703-4007 
Fax: 416-703-0900
E-mail (IR): PHFB@firstcapitalinvestors.com
Website: www.phantomfiber.com
 

---

*** The Bull is Running. ***
There may never be a better time to feature YOUR company
to over 1 MILLION investors.

To learn more about our programs email us directly at info@stockupticks.com

Market Pathways
17595 Harvard Ave., Suite C519 Irvine, CA  92614
949-955-0107

Disclaimer: StockUpTicks.com is a property of Market Pathways Financial Relations Incorporated (MP).  The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision.  MP has not been paid by the subject company or any third party for preparation and distribution of this report and MP does not own shares in the subject company.  However MP has entered into a service barter relationship with Beacon Equity Research, which has been paid by Phantom Fiber Corporation. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.  Write or call MP for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934.  MP is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement.  Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results.  The opinions contained herein reflect our current judgment and are subject to change without notice. MP and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned.  Information contained herein may not be reproduced in whole or in part without the express written consent of Market Pathways Financial Relations Incorporated.