(Note: This is an IPO of American Depositary Shares (ADS) on the NASDAQ. We are organized under the laws of Japan. We are a “foreign private issuer” and an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (aka the JOBS Act), under applicable U.S. federal securities laws, and are eligible for reduced public company reporting requirements.)
Warrantee is a Japanese marketing and market research technology company that helps corporate sponsors unlock value through targeted marketing campaigns while providing our corporate sponsors’ potential customers who participate in our campaigns with extended warranty coverage on durables (air conditioners or other major appliances, for example) or certain healthcare benefits sponsored by our corporate sponsors.
Our Company was founded in Japan in 2013. Beginning in 2018, we have focused on developing a suite of specialized marketing and market research services through campaigns for enterprises, which we refer to as our corporate sponsors or sponsors in our campaigns. These services are designed to collect and leverage targeted and specialty data of our corporate sponsors’ potential customers to provide proprietary market insights to our corporate sponsors and promote sales of their products. In addition to our Chief Executive Officer and Chief Financial Officer, we operate our business with one full-time employee in charge of accounting matters and one part-time employee in charge of sales matters in Japan. We have a limited operating history with our campaign services, including a limited number of corporate sponsors (one in the fiscal year ended March 31, 2019, three in the fiscal year ended March 31, 2020, three in the fiscal year ended March 31, 2021, and four currently) on whom our business has been substantially dependent. We cannot guarantee that with our current limited resources we can adequately grow our business, increase our sponsor base, or manage our operations as a publicly traded company in the United States. In addition, the loss of any corporate sponsor in the absence of securing new business would have a material adverse effect on our operations and financial condition.
At the core of our current business of providing marketing campaign services is our trinity model, which connects three stakeholders: corporate sponsors, campaign participants, whom we also refer to as users, and Warrantee, and is designed to benefit all three stakeholders. This model is exemplified by our sponsored product insurance model used in our durables vertical. Under the sponsored product insurance model, we provide product insurance in the form of a limited extended warranty for appliances to users participating in our marketing campaigns, in exchange for their personal, purchase or other data needed by our corporate sponsors, which we provide to our corporate sponsors for a sponsorship fee. Our collected user data enables our corporate sponsors to gain insights on their potential customers’ purchase patterns and to help formulate their marketing strategies. In each campaign, within the covered period, if a participant user’s registered appliance breaks down, the user may elect to use the insurance coverage to pay for repair services or a replacement. Should a participant user make a claim for a replacement, such participant may only use the insurance coverage to subsidize a purchase of our corporate sponsor’s product. In this way our campaigns can potentially increase sales of our sponsors’ products. We use the sponsorship fees to cover our operational costs including purchasing product insurance from licensed insurers for participant users. We have obtained patents in Japan for the system underlying our sponsored product insurance model, which is for us to serve as an intermediary between sponsors, insurance companies and users and in such role, providing insurance for the users upon terms agreed by the sponsors.
**Note: On Oct. 12, 2021, we effected a 1,500-for-one forward split of all issued and outstanding shares. All historical share amounts and share price information presented in this prospectus have been proportionally adjusted to reflect the impact of the forward split.
**Note: After the IPO, Yusuke Shono, our CEO and a director, will own 70.3 percent of our outstanding common shares. We will be a “controlled company” under the NASDAQ listing requirements.)
(Note: Warrantee Inc. filed confidentially to go public on Feb. 7, 2022.)
|Industry:||Services - Miscellaneous Business Services|
|Address||1103, Kitahama Craft 2-4-1 Doshomachi, Chuo-ku Osaka City, Osaka 541-0045, Japan|
|View Prospectus:||Warrantee Inc.|
|Revenues||$2.07 mil (last 12 months)|
|Net Income||$-0.21 mil (last 12 months)|
|Price range||$6.00 - $8.00|
|Est. $ Volume||$15.0 mil|
|Manager / Joint Managers||Network 1 Financial Securities|
|Expected To Trade:|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|