NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2021, AND DECEMBER 31,
NOTE 1 BUSINESS DESCRIPTION BACKGROUND
Alfi, Inc. is a C-corporation formed in Delaware that operates
in the technology sector; specifically, Software as a Service
(SaaS) in the Digital Out Of Home (DOOH) Smart Advertising segment.
This segment includes artificial intelligence, machine &
deep learning, edge computing, Big Data, telecommunications, and
the Internet of Things (IoT). Alfi, Inc. includes its wholly
owned subsidiary Alfi, NI Ltd, the results of which are presented
on a combined basis in the consolidated financial statements
included in this Report. Alfi, NI Ltd is a registered business in
Belfast, Ireland. Collectively, the combined consolidated entity is
referred to as the “Company” throughout this Report.
The Company’s timeline of events relative to its current formation
above began on April 4, 2018, when Lectrefy, Inc., a Florida
corporation, was organized. On July 6, 2018, Lectrefy, Inc, a
Delaware corporation was organized. On July 11, 2018, Lectrefy,
Inc. of Florida was merged into a newly created entity Lectrefy,
Inc. of Delaware. On July 25, 2018, Lectrefy Inc. of Delaware
qualified to do business in Florida. On January 31, 2020, Lectrefy,
Inc. of Delaware changed its name to Alfi, Inc.
On September 18, 2018, Lectrefy, NI Ltd was organized in Belfast,
Ireland. On February 4, 2020, Lectrefy, NI Ltd.’s name was changed
to Alfi NI Ltd. On February 13, 2020, Lectrefy Inc. Delaware
registered it name change in the State of Florida to Alfi, Inc.
In 2019, the Company’s software product received initial
certification compliance with GDPR government regulatory standards,
the highest level of privacy compliance certification available in
its jurisdiction. As of June 2020, the Company’s products were
fully developed and are currently being deployed to customers.
The Company uses artificial intelligence and big data analytics to
measure and predict human response. Its computer vision technology
is powered by proprietary artificial intelligence, to determine the
age, gender, ethnicity, geolocation, and emotion of someone in
front of an Alfi-enabled device, such as a tablet or kiosk. Its
software can then deliver in real-time, the advertisements to that
viewer based on the viewer’s demographic and psychographic profile.
It delivers the right content, to the right person at the right
time in a responsible and ethical manner. By delivering
advertisements a viewer wants, the Company provides its advertising
customers the viewers they want, and the result is higher click
through rates, or CTRs and higher CPM, cost per thousand,
The Company has created an enterprise grade, multimedia
state-of-the-art computer vision and machine learning platform,
generating powerful advertising recommendations and insights.
Multiple technologies work together in its software with viewer
privacy and reporting objectives as the Company’s two goals. The
software uses a facial fingerprinting process to make demographic
determinations. As such, the Company makes no attempt to identify
the individual in front of the screen. By providing age, gender,
ethnicity and geolocation information, brand owners have all the
data they need for meaningful interaction.
The Company solves the problem of providing real time, accurate and
rich reporting on customer demographics, usage, interactivity, and
engagement while never storing any personal identifiable
information of its users. No viewer is ever required, or requested,
to enter any information about themselves on any Alfi-enabled
device. Alfi was designed to be fully compliant with all privacy
regulations. Alfi is fully compliant with the GDPR, General Data
Protection Regulation, in Europe, the CCPA, California Consumer
Privacy Act, and HIPAA, the Health Insurance Portability and
The Company’s initial focus is to place its Alfi-enabled devices in
rideshares, retailers, malls, and airports.
The Company’s primary activities since inception have been research
and development, managing collaborations, and raising capital. As
of the date of this Report, the Company has approximately 9,600
tablets either held as Other Assets (complimentary devices) or in
operation currently being used by customers.