2022 Q4 Form 10-Q Financial Statement

#000121390022071655 Filed on November 14, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3 2021 Q3
Revenue $787.0K $1.143M $109.0K
YoY Change 656.73% 948.62% -16.15%
Cost Of Revenue $606.0K $1.027M $91.00K
YoY Change 461.11% 1028.57% -62.08%
Gross Profit $181.0K $116.0K $18.00K
YoY Change -4625.0% 544.44% -118.0%
Gross Profit Margin 23.0% 10.15% 16.51%
Selling, General & Admin $1.469M $1.929M $1.976M
YoY Change -64.97% -2.38% 272.83%
% of Gross Profit 811.6% 1662.93% 10977.78%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $455.0K $453.0K $452.0K
YoY Change 0.22% 0.22% 0.44%
% of Gross Profit 251.38% 390.52% 2511.11%
Operating Expenses $1.921M $2.382M $2.428M
YoY Change -58.64% -1.89% 147.76%
Operating Profit -$1.740M -$2.266M -$2.410M
YoY Change -62.57% -5.98% 123.15%
Interest Expense $10.00K $1.000K $5.000K
YoY Change 66.67% -80.0% -107.14%
% of Operating Profit
Other Income/Expense, Net -$100.0K $1.000K -$1.000K
YoY Change 9900.0% -200.0% -105.0%
Pretax Income -$5.430M -$2.265M -$2.406M
YoY Change 16.93% -5.86% 111.05%
Income Tax
% Of Pretax Income
Net Earnings -$5.446M -$2.275M -$2.406M
YoY Change 17.22% -5.44% 37.49%
Net Earnings / Revenue -691.99% -199.04% -2207.34%
Basic Earnings Per Share -$0.14 -$0.16
Diluted Earnings Per Share -$3.95 -$0.14 -$161.5K
COMMON SHARES
Basic Shares Outstanding 16.72M shares 16.72M shares 14.90M shares
Diluted Shares Outstanding 16.04M shares 14.90M shares

Balance Sheet

Concept 2022 Q4 2022 Q3 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $466.0K $2.108M $8.751M
YoY Change -92.95% -75.91% 2400.29%
Cash & Equivalents $466.0K $2.108M $8.750M
Short-Term Investments $1.000K
Other Short-Term Assets $14.00K $57.00K $311.0K
YoY Change -91.36% -81.67%
Inventory
Prepaid Expenses
Receivables $209.0K $264.0K $12.00K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $689.0K $2.429M $9.074M
YoY Change -89.84% -73.23% 2113.17%
LONG-TERM ASSETS
Property, Plant & Equipment $6.000K $9.000K $4.000K
YoY Change 200.0% 125.0% -60.0%
Goodwill
YoY Change
Intangibles $28.00K $4.080M
YoY Change -99.49%
Long-Term Investments $776.0K $892.0K
YoY Change 1942.11%
Other Assets
YoY Change
Total Long-Term Assets $810.0K $4.981M $5.894M
YoY Change -85.21% -15.49% -22.95%
TOTAL ASSETS
Total Short-Term Assets $689.0K $2.429M $9.074M
Total Long-Term Assets $810.0K $4.981M $5.894M
Total Assets $1.499M $7.410M $14.97M
YoY Change -87.77% -50.49% 85.71%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.231M $1.216M $1.286M
YoY Change 51.98% -5.44% -36.96%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $109.0K $106.0K $96.00K
YoY Change 12.37% 10.42% -89.09%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $2.134M $2.720M $2.987M
YoY Change -21.52% -8.94% -29.72%
LONG-TERM LIABILITIES
Long-Term Debt $89.00K $89.00K $89.00K
YoY Change 0.0% 0.0% -1.11%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $89.00K $89.00K $89.00K
YoY Change 0.0% 0.0% -1.11%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.134M $2.720M $2.987M
Total Long-Term Liabilities $89.00K $89.00K $89.00K
Total Liabilities $2.223M $2.809M $3.076M
YoY Change -20.83% -8.68% -29.12%
SHAREHOLDERS EQUITY
Retained Earnings -$52.75M -$47.30M
YoY Change 38.02%
Common Stock $19.00K $17.00K
YoY Change 26.67%
Preferred Stock
YoY Change
Treasury Stock (at cost) $29.00K
YoY Change
Treasury Stock Shares
Shareholders Equity -$724.0K $4.601M $11.89M
YoY Change
Total Liabilities & Shareholders Equity $1.499M $7.410M $14.97M
YoY Change -87.77% -50.49% 85.71%

Cashflow Statement

Concept 2022 Q4 2022 Q3 2021 Q3
OPERATING ACTIVITIES
Net Income -$5.446M -$2.275M -$2.406M
YoY Change 17.22% -5.44% 37.49%
Depreciation, Depletion And Amortization $455.0K $453.0K $452.0K
YoY Change 0.22% 0.22% 0.44%
Cash From Operating Activities -$1.614M -$2.378M -$2.451M
YoY Change -23.25% -2.98% 580.83%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities $0.00 $0.00 $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -28.00K 2.688M 4.957M
YoY Change -45.77% 628.97%
NET CHANGE
Cash From Operating Activities -1.614M -2.378M -2.451M
Cash From Investing Activities 0.000 0.000 0.000
Cash From Financing Activities -28.00K 2.688M 4.957M
Net Change In Cash -1.642M 310.0K 2.506M
YoY Change -23.38% -87.63% 683.13%
FREE CASH FLOW
Cash From Operating Activities -$1.614M -$2.378M -$2.451M
Capital Expenditures $0.00 $0.00 $0.00
Free Cash Flow -$1.614M -$2.378M -$2.451M
YoY Change -23.25% -2.98%

Facts In Submission

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dei Document Period End Date
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2022-09-30
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dei Entity Registrant Name
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dei Entity Incorporation State Country Code
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dei Entity Tax Identification Number
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235 Lincoln Rd.
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dei Security12b Title
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
-4499000 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
8523000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
6607000 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
227000 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
2108000 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
8750000 usd
cuen Common Stock Issued For Settlement Of Stockbased Liabilities
CommonStockIssuedForSettlementOfStockbasedLiabilities
81000 usd
us-gaap Stock Issued1
StockIssued1
233000 usd
cuen Issuance Fee With Connection To Issuance Of Common Stock Due To Exercise Of Warrants
IssuanceFeeWithConnectionToIssuanceOfCommonStockDueToExerciseOfWarrants
499000 usd
CY2022Q3 cuen Cuentas Sdi Network Of Over Bodegas
CuentasSDINetworkOfOverBodegas
31000 pure
CY2022Q3 cuen Cuentas Accountholders Expenses
CuentasAccountholdersExpenses
500 usd
CY2005Q3 cuen Subsidiary Of Limited Liability Company Or Limited Partnerships Ownership Interests
SubsidiaryOfLimitedLiabilityCompanyOrLimitedPartnershipsOwnershipInterests
1 pure
CY2022Q2 cuen Subsidiary Of Limited Liability Company Or Limited Partnerships Ownership Interests
SubsidiaryOfLimitedLiabilityCompanyOrLimitedPartnershipsOwnershipInterests
0.8001 pure
CY2022Q2 cuen Additional Purchase Price
AdditionalPurchasePrice
2459000000 usd
CY2022Q2 us-gaap Revenue Remaining Performance Obligation Percentage
RevenueRemainingPerformanceObligationPercentage
0.40 pure
CY2022Q3 cuen Acquire Interests Percentage
AcquireInterestsPercentage
0.8001 pure
CY2022Q3 us-gaap Other Cash Equivalents At Carrying Value
OtherCashEquivalentsAtCarryingValue
2108000 usd
cuen Working Capital
WorkingCapital
291000 usd
CY2022Q3 us-gaap Retained Earnings Unappropriated
RetainedEarningsUnappropriated
47304000 usd
us-gaap Use Of Estimates
UseOfEstimates
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="text-decoration:underline">Use of Estimates</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, certain revenues and expenses, and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
CY2021Q4 us-gaap Deferred Revenue
DeferredRevenue
683000 usd
cuen Change In Deferred Revenue
ChangeInDeferredRevenue
-276000 usd
CY2022Q3 us-gaap Deferred Revenue
DeferredRevenue
407000 usd
us-gaap Deferred Revenue Revenue Recognized1
DeferredRevenueRevenueRecognized1
407000 usd
CY2022Q3 cuen Revenue Remaining Performances Obligation Percentage
RevenueRemainingPerformancesObligationPercentage
1 pure
CY2022Q3 us-gaap Financial Liabilities Fair Value Disclosure
FinancialLiabilitiesFairValueDisclosure
1000 usd
CY2021Q4 us-gaap Financial Liabilities Fair Value Disclosure
FinancialLiabilitiesFairValueDisclosure
3000 usd
CY2021Q4 cuen Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number Beginning
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumberBeginning
1585200 shares
CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
3.69
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
400000 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
2.8
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
215000 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
2.8
CY2022Q3 cuen Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number Beginning
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumberBeginning
1770200 shares
CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
3.44
CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
160000 shares
CY2022Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P3Y
CY2022Q2 cuen Fair Value Options
FairValueOptions
134000 usd
CY2022Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
50000 shares
CY2022Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
213000 usd
cuen Schedule Of Related Party Payables Net Of Discounts Text Table Block
ScheduleOfRelatedPartyPayablesNetOfDiscountsTextTableBlock
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,<br/> 2022</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2021</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">(dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left; padding-bottom: 1.5pt">(a) Due to Cima Telecom Inc.</td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-61">     -</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">   417</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 4pt">Total Due to related parties</td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-62">-</div></td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">417</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
CY2021Q4 us-gaap Due To Related Parties Noncurrent
DueToRelatedPartiesNoncurrent
417000 usd
CY2022Q3 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
40000 usd
CY2021Q3 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
552000 usd
CY2022Q3 cuen Annual Fees
AnnualFees
700000 usd
cuen Annual Fees
AnnualFees
375000 usd
us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
242000 usd
us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
147000 usd
CY2021Q1 cuen Consulting Service
ConsultingService
30000 usd
CY2022Q3 us-gaap Due To Related Parties Noncurrent
DueToRelatedPartiesNoncurrent
usd
dei Amendment Flag
AmendmentFlag
false
CY2022Q3 cuen Directorship Fees
DirectorshipFees
383000 usd
CY2021Q3 cuen Directorship Fees
DirectorshipFees
260000 usd
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
usd
CY2017Q4 cuen Legal Settlement Alleging Claim
LegalSettlementAllegingClaim
On December 20, 2017, a complaint was filed by J. P. Carey Enterprises, Inc. (“JP Carey”) alleging a claim for $473 related to Franjose Yglesias-Bertheau, a former Vice President of PLKD. Even though the Company made the agreed payment of $10on January 2, 2017 and issued 6,001 shares of Common Stock as conversion of the $70,000 note as agreed in its settlement agreement, JP Carey alleges damages that the Company claims are without merit because JP Carey received full compensation as agreed.
CY2019Q1 cuen New Claimed Damages Total
NewClaimedDamagesTotal
1108000 usd
CY2022Q3 cuen Fee And Cost
FeeAndCost
40000 usd
CY2022Q2 us-gaap Litigation Settlement Amount Awarded From Other Party
LitigationSettlementAmountAwardedFromOtherParty
32000 usd
CY2019Q2 us-gaap Product Liability Contingency Description
ProductLiabilityContingencyDescription
1, 2019, the Company received a notice of demand for arbitration from Secure IP Telecom, Inc. (“Secure IP), who allegedly had a Reciprocal Carrier Services Agreement (“RCS”) exclusively with Limecom and not with the Company. The arbitration demand originated from another demand for arbitration that Secure IP received from VoIP Capital International (“VoIP”) in March 2019, demanding $1,053 in damages allegedly caused by unpaid receivables that Limecom assigned to VoIP based on the RCS. On or about October 5, 2020, the trial court appointed a receiver over Limecom, Inc. (“Limecom”) in the matter of Spectrum Intelligence Communications Agency, LLC. v. Limecom, Inc., case no. 2018-027150-CA-01 pending in the 11th Circuit for Miami-Dade County, Florida. On June 5, 2020, Secure IP Telecom, Inc. (“Secure IP”) filed a complaint against Limecom, Heritage Ventures Limited (“Heritage”), an unrelated third party and owner of Limecom, and the Company, case no. 20-11972-CA-01. Secure IP alleges that the Company received certain transfers from Limecom during the period that the Company wholly owned Limecom that may be an avoidable under Florida Statute § 725.105. On July 13, 2021, the two cases were consolidated, and are now pending before the same trial court under the former case number. The Company has answered and denied any liability with respect to both complaints. To the extent the Company has exposure for any transfers from Limecom, Heritage has indemnified the Company for any such liability and the Company has a pending cross-claim against Heritage for purposes of enforcing the indemnification obligation. A review of the books and records of the Company reflect aggregate transfers from Limecom to the Company or its affiliates of less than $600,000. The Company’s books and records reflect that the Company fully reimbursed Limecom through direct payment of expenses of Limecom and through issuance of shares by the Company to employees or other vendors on behalf of Limecom for settlement and release of claims the employees or vendors may have asserted against Limecom. The books and records of the Company therefore do not reflect an identifiable avoidable transfer, but this analysis may change as the discovery process continues. At this time, based upon an analysis of the Company’s books and records, the loss contingency is not capable of reasonable estimation under the above circumstances, and the likelihood of an adverse judgment is not probable at this time. An adverse judgment in this matter is reasonably possible and based upon an analysis of litigation costs and likelihood of a settlement, the undersigned recommends a litigation reserve of $200 to $300 thousand.
cuen Accrued Amount
AccruedAmount
300000 usd
CY2022Q2 cuen Company Financial Institution
CompanyFinancialInstitution
On May 25, 2022, the Company received a notice of default from CIMA Telecom, Inc. (“CIMA”) related to that certain Platform Exclusive License Agreement, maintenance, and related agreements by and among Cuentas, CIMA, Knetik, Inc., and Auris, LLC. The notice provides that Cuentas has failed to pay $700,000 of maintenance and pass-through fees that CIMA alleges are owed under the License Agreement and also afforded Cuentas the required sixty-day period (through July 24, 2022) to cure the default as provided under the License Agreement.. On August 2, 2022, the Company and CIMA, along with two of CIMA’s wholly-owned subsidiaries, Knetik, Inc. and Auris, LLCexecuted a Settlement Agreement and General Release which resolves the issues related to the July 8, 2022 notice of default from CIMA related to that certain Platform Exclusive License Agreement, maintenance, and related agreements by and among Cuentas, CIMA, Knetik, Inc., and Auris, LLC. The Parties executed Mutual General Releases and the settlement terms are as follows: In exchange for the consideration provided in the Settlement Agreement, (1) the Company paid CIMA $350,000.00 on August 2, 2022 and (2) on or before 5:00 p.m New York City time, on August 15, 2022, Cuentas will pay CIMA the balance of the Unpaid Fees ($420,239.78) by wire transfer (3) Cuentas will a period of 30 days from execution date, the exclusive right to facilitate a third party (including to current shareholders and directors of Cuentas) purchase (without markup or broker fee) of, all of the shares of Cuentas held by CIMA at the higher of: (i) the average per share trading price for the three day average before notice in writing is provided by Cuentas of the intent to purchase CIMA’s Cuentas shares, or (ii) the minimum price of $0.50 per share on or before 5:00 p.m. New York City time, on August 31, 2022 pursuant to a purchase agreement delivered by and acceptable to CIMA without any changes thereto (provided, that CIMA shall not be required to provide any representations or warranties other than fundamental warranties related to (a) organization and good standing, (b) power and authority to undertake the transaction and (c) ownership of such shares, and ordinary representations and warranties that the Cuentas shares are being transferred free and clear of any liens, claims, or encumbrances); and (iv) on or before 5:00 p.m. New York City time, on August 2, 2022, Cuentas shall, and shall cause (x) Dinar Zuz, LLC, (y) Michael De Prado and (z) Arik Maimon to provide signed waiver letters, expressly waiving any right of first refusal and co-sale rights granted in their favor under that certain letter agreement, dated December 31, 2019, by and among CIMA, Dinar Zuz, LLC, Michael Del Prado and Arik Maimon, and (y) CIMA agrees: (i) to restore immediately Cuentas’ access to the Platform upon receipt of the $350,000.00 payment ; (ii) to provide Cuentas with a limited license to utilize the Platform the terms of which are detailed specifically in Section 6 of the agreement, and to use reasonable efforts, subject to Cuentas’ compliance hereto, to provide Cuentas’ customer data to Cuentas through the end of the limited license term described below in Section 6 of the agreement; (iii) deliver to Cuentas the Source Code (as that term is defined in paragraph 1.18 of the License Agreement) relating to Out-Of-Scope Services, and as further detailed in Section 6 of the agreement; (iv) not enforce its rights under the Side Letter (as that term is defined in the paragraph 1.1 of the Purchase Agreement) through and including August 31, 2022, and (v) shall not transfer, sell, or encumber its Cuentas shares through and including August 31, 2022, except as permitted herein. Cuentas acknowledges and agrees that the amount of Unpaid Fees ($770,239.78) is valid and outstanding, and waives any right to dispute them. If Cuentas fails to comply with any term of this Settlement Agreement, in addition to the Stipulated Judgment described in Section 5 of the agreement, the limited license set forth in Section 6 and any of CIMA’s obligations under this Settlement Agreement shall become null and CIMA shall have the right to shut off Cuentas access to the Platform without notice. The Settlement Agreement also provides for mutual general releases by Cuentas for the benefit of CIMA and by CIMA for the benefit of Cuentas of all claims other than claims relating to a breach of the Settlement Agreement. The settlement agreement by its terms in effect terminates the obligations under the license agreement, dated December 31, 2019 by and between Cuentas and CIMA.
CY2021Q2 us-gaap Payments For Rent
PaymentsForRent
7000 usd
us-gaap Repayments Of Debt
RepaymentsOfDebt
usd
us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
usd
cuen Common Stock Issued For Settlement Of Stockbased Liabilities
CommonStockIssuedForSettlementOfStockbasedLiabilities
usd
us-gaap Stock Issued1
StockIssued1
usd
cuen Issuance Fee With Connection To Issuance Of Common Stock Due To Exercise Of Warrants
IssuanceFeeWithConnectionToIssuanceOfCommonStockDueToExerciseOfWarrants
usd
CY2022Q3 cuen Aggregate Shares
AggregateShares
1655000 shares
CY2022Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2022Q3 us-gaap Other Expenses
OtherExpenses
3000000 usd
CY2022Q3 us-gaap Proceeds From Other Equity
ProceedsFromOtherEquity
2700000 usd
dei Local Phone Number
LocalPhoneNumber
611-3622
dei City Area Code
CityAreaCode
800
CY2021Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
usd
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
usd
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
15352807 shares
CY2022Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
16037103 shares
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
usd
cuen Available For Sale Securitie
AvailableForSaleSecuritie
usd
us-gaap Increase Decrease In Due To Related Parties
IncreaseDecreaseInDueToRelatedParties
usd
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
usd
us-gaap Payments To Acquire Longterm Investments
PaymentsToAcquireLongtermInvestments
usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
usd
us-gaap Repayments Of Related Party Debt
RepaymentsOfRelatedPartyDebt
usd
dei Entity Central Index Key
EntityCentralIndexKey
0001424657

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