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EnXnet, Inc. (OTCBB: EXNT) |
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Dear Reader,
I remember as a kid, my friend's father dabbled in the stock market and did amazingly well. He was a police officer yet owned multiple houses in our suburban area and the family always had the best of everything. So, I asked him then how he did it and now, two decades later, one part of his response still resonates. He bought based on what he saw around him.
This wasn’t a sophisticated man or even an exceptionally bright one. This was an aware man who wasn’t afraid to pursue a trend with dollars. He told me that before he’d start his morning patrol he’d grab a coffee and a bagel from the local convenience store. One morning he noticed that the 7-11 near our house had added a donut kiosk from a large national vendor who he had seen once back east. As he went through his day, he noted similar installations across town.
My police officer friend figured that if the company was penetrating westward it warranted further examination. He investigated the financials and bought in. The company took off and the fruits of that investment were the fodder for investment in real estate in the Southwest in the early 1980’s. That’s a whole ‘nother story.
So, lately I’ve been noting the push by major retailers and fast food franchises to push their gift cards on us. Best Buy, Starbucks, McDonald’s and other leading chains are foisting their proprietary gift cards on us in unprecedented fashion. “Free tacos with purchase of a Jack-In-The Box gift card” must hit my office airwaves a dozen times a day.
And while affinity credit cards and loyalty cards have been around for quite some time, it’s also clear that industry leaders are now trying very hard to shove them through the mainstream acceptance door. While this will inevitably create more card users at the aforementioned, it will also continue the wildfire expansion of digital cards as a staple of this century.
Perhaps this is why today’s profile, EnXnet, Inc. (OTCBB: EXNT) is catching my eye in a way I’m not accustomed to. Maybe it’s the fact that EXNT expands on the digital card platform with rich media and multi-use integration. I’m not completely sure. I just know I’m intrigued and looking deeper.
So, with all this in mind, start watching commercials and other ads and notice for yourself how almost every retailer offers gift cards and stored-value cards. It’s clear that there’s a wave cresting in front of us. The question is how to profitably ride it. Perhaps it’s best to start by reading the profile below.
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About EnXnet |
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EnXnet has concentrated its R&D efforts in the development of new methods and technology to deter theft, detect and track items, improve listening and viewing experiences, and to present information in dynamic new interactive formats. With a large cache of new technology and products, EnXnet is now focused on marketing and sales of products incorporating these developments.
The Company has filed a number of patents, both U.S. and worldwide, to protect its intellectual property. While all of the Company’s technologies have significant commercial application, several of the products are market-ready and EnXnet has positioned itself to meet the expected potentially high demand for its products in early 2006.
At the forefront of product release is EnXnet's MoxyCard®, the first Multimedia Gift Card(TM) that combines the functionality of a magnetic stripe gift card with the electronic capabilities of optical disc media: a gift card on a mini-disc that will play in any common DVD player. ThinDisc© technology allows production of shaped CD or DVD cards in the same thickness as a standard credit card thus easily read by existing credit card readers. ThinDisc(c) combines magnetic stripe and bar code data with the inclusion media such as audio, video or pictures, in the convenient form of a Compact Disc (CD), Digital Video Disc (DVD), or other optical disc products.
EnXnet holds the patent for the gift card disc and they are the exclusive manufacturer. Several well-known national retailers and “Big-Box” stores have expressed strong interest in this distinctive card. The content on the disc can be tailored to the particular retailer and could include: advertisements, coupons, web sites, or birthday greetings.
Through alliances, partnerships, and licensing agreements, EnXnet has developed it's value-card, security tag, and CD/DVD products for mainstream applications. Based in Tulsa, Oklahoma, EnXnet offers distinctive products to deter theft, improve listening and viewing experiences, and present information in useful interactive formats.
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EnXnet Products and Services |
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AT A GLANCE
The EnXcase™was created specifically to stand out in retail displays and reduce in-store theft.
With MoxyCard®, merchant's brands have an opportunity of a rich media advertisement.
DSTag™ (disc security tag), embeds into the hub ring of a CD or DVD during the manufacturing process.
The EAMTag will allow highly effective EAS tagging of pharmaceuticals, cosmetics, and many other products.
HyTag is a hybrid Acousto-Magnetic (AM) and Radio Frequency Identification Device (RFID) designed for security.
The aRFID is an Electronic Radio Frequency Identifcation Device that allows for the adjustment of the carrier frequency.
The RFID Deactivation Device (Patent Pending) EnXnet's new technology solves the major problem of personal privacy.
The EnXdeck® is a stand-alone DVD/CD player that incorporates video PC-based technology including ClearVideo®©.
ClearVideo®© technology allows the smallest file possible while virtually duplicating the quality of the original.
EnXmedia™ is a service division that specializes in media replication, fulfillment, and distribution.
ThinDisc Technology
ThinDisc(c) is the same thickness as a standard credit card and can be easily read by existing credit card readers.
A primary application of ThinDisc(c) is its use as a major advancement in stored-value cards. Combining traditional magnetic stripe and bar code data with enhanced optical media, provided by ThinDisc, the stored-value card can be produced in either Compact Disc (CD) or Digital Video Disc (DVD) format.
A stored-value card is a pre-paid card, generally with a merchant logo or name. Stored-value cards include, but are not limited to, prepaid phone, event tickets, debit, room key, gift, merchandise, promotion and incentive cards. ThinDisc(c) offers the card issuer an ideal method of providing its customers with value-added information about the issuer's products or services, as well as promotional information and exclusive offers by embedding media rich audio and video content directly on the stored-value card.
The ThinDisc Market
Stored Value Cards represent one of the most dynamic and rapidly growing products in the financial industry.
It is estimated that more than $72 billion in stored value transactions will be completed during 2006, as compared with $42 billion in 2003, representing robust industry growth of more than 70% in just three years. The stored value card industry is still in the early stage of its product life cycle; with exponential growth projected in the years ahead.
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EnXnet Products and Services
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MoxyCard® is the first patented Multimedia Gift Card™combining the functionality of a gift card with the electronic capabilities of a CD or DVD. The value of the merchant's brand names are significantly enhanced by using MoxyCard®, together with the inclusion of a media advertisements directly in the card. MoxieCard® represents a unique merger of two products and transforms today's dull static gift cards into a dynamic, interactive marketing and entertainment tool that both engages and informs consumers with compelling media presentations. MoxieCard® is certain to dramatically revolutionize the practice of gift giving, by redefining and adding value to the entire gift chain from giver, to the recipient and finally the retailer. |
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OneDisc™/DVDPlus© is a dual-sided, optical disc that uniquely combines two distinct storage formats on a single disc; a DVD (Digital Video Disc) on one side and a CD (compact disc) on the other.
OneDisc™/DVDPlus© allows content publishers to integrate their visual and audio products into a single distribution unit, such as presenting a feature movie on the DVD side and the soundtrack for the film on the CD side. |
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The EnXcase™ was designed to make the enclosed disc visible at all times, unlike existing packaging, which requires opening the case to make certain the disc is present. A patent application covering the EnXcase has been filed. |
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DSTag™ (disc security tag), utilizes tags embedded directly into the hub ring of a CD or DVD making them impossible to remove from the product without severe damage. This significantly reduces losses resulting from employee and retail theft, while providing an effective means of authenticating legitimate products and detecting counterfeit products. |
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The Electronic AMTag (EAMT) is a patent pending security device which allows the tagging of highly valuable products previously difficult or impossible to effectively tag. |
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HyTag is a patent pending tag that combines the benefits of both the Acousto-Magnetic (AM) and Radio Frequency Identification Device (RFID) in a single product. It is designed to be placed on or embedded within consumer products. |
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The aRFID is a patent pending Electronic Radio Frequency Identification Device. The device is able to readily recognize security tags within any range of frequencies, providing the retailer with enhanced flexibility in their choice of tagging options. |
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The RFID Deactivation Device is a technology that resolves the major problem of personal privacy that often arises with RFID tagging of products. Current RFID tags remain readable until destroyed, thus allowing the tracking of one's purchases into the home and business. |
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The EnXdeck® is a stand-alone DVD/CD player that incorporates the latest in audio and video PC-based technology, including a ClearVideo®© decoder. EnXDeck® units have the same functionality as a DVD player, with the additional functionality of CD-i units in that it has a PC with internet capabilities, expandable I/O ports and multiple video output configurations. EnXnet has entered into a marketing agreement with Visuplay Interactive is developing customized content for the system and is currently targeting the corporate training and educational industries. |
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ClearVideo®© is a patented technology which enables the compression of digital video using fractal digitization and includes high quality audio compression to create files that are a small fraction of their former size while duplicating the quality of the content to that of the original. ClearVideo®© can reduce video file sizes by approximately 95-99% while retaining the quality of the original source. |
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EnXmedia™, a division of EnXnet, Inc., specializes in media replication, fulfillment and distribution. EnXmedia also offers replication of Audio/Video CDs, Audio/Video DVDs, Super Audio CDs (SACD), VHS tapes, cassettes and vinyl records, as well as also glass mastering, graphic design, printing and labeling, assembling and packaging. |
Recent Product Developments
^EnXnet has successfully manufactured working prototypes of ThinDisc© Interactive Transaction Card CD’s and DVD’s and is prepared to manufacture and deliver high volumes in both formats.
^ The Company is currently arranging for manufacturing of both formats with several qualified manufacturers in the U.S., Europe and South America.
^ One28 Marketing Group and EnXnet have entered into a marketing contract for the sales of ThinDisc© Interactive Transaction Cards under the name MoxyCard® to the closed stored value card market (cards usable only at the issuer’s establishments). EXNT is currently in final negotiations with another firm for the marketing of ThinDisc© Interactive Transaction Cards under the name of SurfCard© to the open stored value card market (cards usable at any establishment accepting major credit cards).
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The EnXnet Markets |
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The stored value card market is growing and evolving rapidly. There are about 1 billion stored value cards in use today. It is estimated that the US stored value card market will be worth $290 billion by 2006. The Pelorus Group noted that the global market for all stored value applications in 2004 stood at just under $490 billion, according to a recent Prepaid Press article. Experts put this industry in the introductory or early growth stage of the product life cycle, suggesting that there is substantial growth potential in the years ahead. Stored value solutions have become the most talked about, next generation marketing tool for retailers.
As reported by the Federal Reserve Bank of New York, stored value cards are one of the most dynamic and fastest growing products in the financial industry. The stored value card market is growing and evolving rapidly. In 2003, stored value cards were used to make $42 billion in transactions. By 2006, over $72 billion in stored value transactions are expected.
Electronic Article Surveillance Technology
EnXnet has developed and filed for patents on several items in the electronic article surveillance (EAS) tag field. The Company’s EAS products will work with retailers’ current checkout systems with little or no cost to the retailers. The EAS products offer retailers, as well as other parties in the distribution chain, new and more effective methods to combat shoplifting and employee theft. When embedded in a product at manufacture, an EAS device becomes hidden and irremovable unlike current EAS tags that can be defeated by clever thieves.
Competitive Advantages
Unlike the other popular EAS tags, RFID devices can hold a significant amount of information including, but not limited to, date of manufacture, lot number, plant ID, unique security codes, date of shipment, and other pertinent information. When triggered by a remote electronic signal the device transmits this data to an appropriate receiver. These signals are readable at a reasonable distance and can penetrate a shipping container or trailer, thus allowing the operator to take a complete inventory of the container without opening the doors. This allows verification and authentication of the container’s contents very rapidly and inexpensively.
... However ...
Most RFID tags are used on shipping containers, pallets, cases and multiple unit cartons rather than on individual product packaging. RFID devices in use today remain active until physically destroyed. Left activated after purchase, the RFID device allows for tracking into a consumer’s home or place of business. EnXnet technology solves this problem by permanently disabling the RFID tag at the point of sale thus effectively alleviating all privacy concerns.
EnXnet, Security Tags, and Security Products & Technologies
The four major EAS tagging systems in use worldwide are: Radio Frequency (RF); Radio Frequency Identification Device (RFID); Electromagnetic (EM); and Acousto-Modulation (AM); AM being the most widely used in the United States at this time. Most of the retail operations in the world use one or more EAS tags in an effort to control theft.
- Theft from retail stores costs the American public $33.21 billion per year.
- Shoplifting losses vary by store type, but can account for about one-third of the total inventory shrinkage.
- It is estimated that shoplifting occurs 330 - 440 million times per year at a loss of $10-$13 billion dollars.
- 1.0-1.2 million shoplift incidents everyday equal a loss rate of $19,000-$25,300 dollars stolen per minute.
- More than $25,000,000 dollars per day is lost across North America due to shoplifting and employee theft.
According to the University of Florida 2002 National Retail Security Survey, employee theft was estimated to be responsible for 48% of store inventory shrinkage. That represents an estimated employee theft price tag of about $15 billion dollars per year. This astounding figure makes employee dishonesty the greatest single threat to profitability at the store level. The study found the average dollar loss per employee theft case to be $1,341.02 compared to $207.18 for the average shoplifting incident.
CD - DVD Technology
EnXnet's OneDisc™/DVDPlus© is a dual-sided, hybrid optical disc media that uniquely combines two distinct storage formats for distribution on a single disc, a DVD (digital versatile disc) on one side and a CD (compact disc) on the other. The Competitive Advantage: OneDisc is directly competitive to DualDisc® which is produced by Sony and Warner, however the OneDisc/DVDPlus© has approximately 20% more usable space on the CD side than DualDisc®.
According to the OnLine Reporter, May 28 – June 3, 2005, “More than two million of the discs have been sold since making their first appearance late last year. The music industry expects to have more than 200 DualDisc titles on the market this year.”
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Recent News From EnXnet |
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Press Release Source: EnXnet, Inc.
Thursday December 8, 9:00 am ET
EnXnet, Inc. Announces ThinDisc(c) Manufacturing Capacity
TULSA, Okla.--(BUSINESS WIRE)--Dec. 8, 2005--EnXnet, Inc. (OTCBB:EXNT - News) announces it has confirmed manufacturing arrangements for its ThinDisc(c) stored value card, MoxyCard®, with qualified manufacturers in Europe and South America. The capacity of these manufacturers, combined with our existing manufacturer in the United States, is in excess of 2 million Compact Disc (CD) version cards per day and 1.2 million Digital Video Disc (DVD) version cards per day. These agreements will allow immediate and aggressive marketing of MoxyCard®, with assured delivery of quality products in large volumes to meet the anticipated demand.
To read the entire release and disclaimer, click HERE
8-Dec-2005
Regulation FD Disclosure
Form 8-K for ENXNET INC
ITEM 7.01 REGULATION FD DISCLOSURE
We are announcing that we have confirmed manufacturing arrangements for the ThinDisc(c) stored value card, MoxyCard(R), with qualified manufacturers in Europe and South America. The capacity of these manufacturers, combined with our existing manufacturer in the United States, is in excess of 2 million Compact Disc (CD) version cards per day and 1.2 million Digital Video Disc (DVD) version cards per day. These agreements will allow immediate and aggressive marketing of MoxyCard(R), with assured delivery of quality products in large volumes to meet the anticipated demand.
To read the entire release and disclaimer, click HERE
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The EnXnet Management Team |
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EnXnet, Inc. is most fortunate to be led by a team of talented and dedicated professionals, each with a depth of professional accomplishment and experience that stands on its own merit. The members of EnXnet’s management team share a common vision of establishing the Company as the leading provider of next generation, “value-added” digital products and services.
Ryan Corley - President, CEO, and a member of the Board of Directors
Mr. Corley has served as President and Board member since February, 2000. Mr. Corley was the founder of Tsunami Media Corporation and served as Chairman of the Board of Directors, Chief Executive Officer and Secretary/Treasurer, until February, 2000. Mr. Corley was a consultant and served on the Board of several startup and small public companies and was previously Chairman and President of Charge, Inc., and Charge Entertainment Corporation. Mr. Corley received a Bachelor of Science in Business Administration and a Masters in Business Administration from the University of Tulsa.
Stephen Hoelscher - Chief Financial Officer and Treasurer
Mr. Hoelscher has serves as the Company’s Chief Financial Officer since May, 2004 and has been providing accounting consulting services to the Company since January 2001. Mr. Hoelscher is a Certified Public Accountant with 23 years of accounting and auditing experience. Mr. Hoelscher received a Bachelor of Business Administration from West Texas A&M University (formerly West Texas State University) in Canyon, Texas in 1981.
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Financial Highlights For EnXnet |
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SIGNIFICANT DEVELOPMENTS IN 2005
10/12/05 - EnXnet, Inc. announced it has filed numerous enhancements for Utility and Design Patent rights to its original patent. ThinDisc(c) has numerous applications, a primary use of which is to significantly enhance the value of “stored value cards”.
06/27/05 - EnXnet, Inc. announced the filing of a Utility and Design Patent rights for its passive Electronic Article Surveillance (EAS) tag. Since current tagging products are large, easy to identify, and can be removed without difficulty, the EAS industry has been searching for an electronic solution to replace the mechanical AM tags that are in use today.
03/16/05 – EnXnet, Inc. announced the completion of an exclusive agreement with One28 Marketing Group, LLC to manufacture and supply optical media which is based on the Company’s ThinDisc(c) technology.
Boasting one of the most formidable product portfolios and service offerings in the media industry, EnXnet management believes the Company is poised to emerge as a leader in this burgeoning sector. Due to it's positioning in the market, EnXnet has been the subject of considerable interest among industry experts and leading technology companies.
EnXnet’s management also believes the Company 's modest market capitalization does not adequately reflect the Company’s significant short and long term potential. From a product viewpoint, they are confident EnXnet’s product portfolio is indicative of a much larger technology company and that EnXnet’s proprietary technologies are leading edge, and will produce an impact in the digital media technology industry.
14-Nov-2005 - Quarterly Report - Item 2. Managements Discussion and Analysis or Plan of Operation.
The Company currently can satisfy its current cash requirements for approximately 30-60 days.
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| Symbol: EXNT Market Cap: (as of 12/7/05) $15,391,977.
Recent Trade: (12/09/05) $0.85 52 Week Price Range: $0.07 - $0.85
Total Shares O/S: 26.5 Mil. Avg Vol (3m): 33,056.9
Approx. Float: 9,800,000 sh. Fiscal Year Ended: 03/31/05 |
Transfer Agent: Pacific Stock Transfer Co., Las Vegas, NV 89193-3385
Are the SEC Filings for EnXnet Current? YES.
To view the latest 10Q from EnXnet on the SEC Web site, Click HERE
To visit the EnXnet Web site, click HERE
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TO CONTACT ENXNET - ENXT |
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Investor Relations
Blue-Sky Solutions, LLC
Stephanie Soleas, 877-4-BLUE-IR
exnt@blueskyir.com
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