FOBI AI (TSXV: FOBI, OTC: FOBIF, FRA: WMV) is a company focused on providing businesses with applications to digitally transform and future-proof their organizations thanks to AI and data intelligence. The company, which entered into investors’ portfolios during the Covid season, sees its stock price still being under $1.00 while it skyrocketed to $3+ on September 20, 2021. Fobi announced several positive updates, including new reseller agreements and contracts. 

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AI Sector Growth

In 2022, the market for artificial intelligence was estimated to be worth USD 136.55 billion. From 2023 to 2030, it is expected to increase at a CAGR of 37.3%. The adoption of cutting-edge technology is being fueled by ongoing research and innovation led by tech giants in sectors like manufacturing, healthcare, retail, and finance. Accessibility to historical datasets is the key factor in accelerating AI advancement. Healthcare organizations and governmental organizations create unstructured data that is accessible to the research domain since data storage and recovery have gotten more affordable. Rich datasets are becoming available to researchers, ranging from historical trends in rainfall to medical imaging. The next-generation computing architectures, with access to rich datasets, are encouraging information scientists and researchers to innovate faster.

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Company Overview

Fobi is a top AI and data intelligence firm based in Vancouver, Canada. It offers businesses real-time apps to help them digitally change and prepare for the future. By delivering tailored and data-driven customer experiences, Fobi enables organizations to use, exploit, and monetize their customer data. It also promotes digital sustainability by doing away with paper use and decreasing wasteful plastic waste at scale.

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Fobi AI has 3 paths to expand its business: 

• API integrations and partnerships: To effectively improve, extend, and deploy their solution, Fobi makes use of relationships with technology companies and 3rd party API interfaces with POS systems.
• Data Monetization: Being the largest data aggregator in Canada's hotel and tourism sector, the Fobi Data Exchange offers a vast possibility for global expansion into new business sectors.
• Mergers & Acquisitions: M&As with digital and data-centric network partners will continue to offer a significant opportunity for expansion and scale as a cornerstone activity for Fobi's growth and development.

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PulseIR is a wholly-owned private company by Fobi that delivers a mobilized, data-driven activation and communications channel for IR. This company accurately identifies and categorizes investors based on their demographics, investment preferences, etc. Direct, individualized communication via SMS or push alerts improves engagement. By automating and combining corporate assets into a single touchpoint, it enhances the user experience. It uses real-time data and insights to track and measure engagement to promote investor retention.

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Share Structure / Financials 

The following numbers are extracted from the latest financial statements and don’t include the recent financing. As of December 31, 2022, the company had $256k in cash for $2M in liabilities. Fobi AI’s total costs topped $3.7M, and the most significant expenses accounted for the share-based compensation ($1.1M), amortization ($466k), and technology costs ($307k). So far, the company has issued 154M shares. 13.1M options (avg. price: $0.58) and 5.1M warrants (avg. price: $1.24) are available, but the company can not exercise them because the stock price is too low. 

On January 24, Fobi AI closed a financing involving strategic investors, officers, and senior management. The gross proceeds was worth $826k, and the company issued 4,7M shares at $0.175, entitled to a $0.30 warrant per share. 

The company started to sign multiple contracts, as marked by the news release from March 16. The company’s fully owned subsidiary, PulseIR ( a platform as a service), will generate $120k in revenue for a one-year contract with ParcelPal Logistics.  

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“ParcelPal is a great example as to why I built the platform that we have for PulseIR. A great deal of issuers do not have the luxury of a larger team of marketing and investor relations staff. The fully-managed service that Fobi provides delivers the much-needed support to ensure every company, big and small, is able to provide real-time shareholder updates.”

Rob Anson, CEO of Fobi

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“We are extremely excited to have signed on with PulseIR as it not only enables us to share our amazing turnaround and growth story and keep investors frequently updated, but this agreement will now enable us to leverage cutting-edge artificial intelligence and mobile wallet technology to provide our valued investors with a next-level communications and investor experience.”

Rich Wheeless, CEO of ParcelPal

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At the time of the writing, the stock price was worth $0.40 (March 16). During the Covid pandemic, FOBI was one of the most trendy stocks on the TSXV but has now decreased in valuation. Over the last 52 weeks, the stock fluctuated between $0.195 to $0.95. 

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Bottom Line

FOBI AI (TSXV: FOBI, OTC: FOBIF, FRA: WMV) is a company using AI to unlock doors. PulseIR, the company’s wholly-owned subsidiary, gets more contracts and will bring more revenue to the company. Besides, its burn rate remains high, and if the company doesn’t manage to sign more contracts, we might see more financings which would dilute the share structure. 

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