Disclaimer: The below assessment is provided for informational purposes only and is not meant as a solicitation to buy or sell any securities related to the subject of this paper. All views and interpretations prescribed in this assessment are those of the author without communication or review of the company in question. This is a personal interpretation of the information provided by No Borders Inc in the company’s bi-weekly update video dated 07 Nov 2019. This is not a recommendation to buy or sell stock related to ticker NBDR.
No Borders, Inc.(ticker NBDR), a Securities and Exchange Commission registered company from the state of Nevada. NBDR is an independent technology company focused on the utilization of emerging tech (such as Blockchain, Internet of Things, Artificial Intelligence, and Software as a Service) to provide business value to new and existing commercial companies. NBDR currently deploys these technologies in vertical within subsidiaries focused on Drop Ship CBD and commercial resale of medical and dental supplies. As of 2nd quarter filings, NBDR has reported Quarter over Quarter growth within these subsidiaries.
NBDR continues to follow a well established and progressional plan of; Acquire, Test, Scale, and repeat, which has served the company well to date. Based on information provided by the company in press releases, video updates, and the current SEC Reg 1A filing, it is assessed that NBDR is in an apparent company scaling phase which may be singled by the aforementioned Reg 1A and may end with the acquisition of a new unlisted company in a vertical not currently penetrated by NBDR.
The assessment below is entirely focused on the most recent NBDR Shareholders Update video, published by No Borders, Inc., and CEO Joseph Snyder.
Let me start by saying there is a lot of useful information put out in this video. If you’ve got the time, I’d recommend taking it to watch the whole 1 hour and 4 minutes before you read this assessment. Check it out at the link below.
For those that don’t have the time, let me give you the bottom line up front. This video is almost entirely focused on No Borders Inc, as it relates to the OTC and the overarching business umbrella which the No Borders family of subsidiaries are built under and its strategic plan for 2020.
This video can be easily broken down into two distinct parts; action to date and actions moving forward. For those who have been following this company since its reverse merger, Mr. Snyder takes the first half of this video to explain the apparent turn away from technology during its first year of operations, to a more traditional business model of acquiring assets and bring physical products to market. This has been a crucial concern for many investors who were essentially sold a bill of goods during that first year that has yet to be fulfilled, and the promise of a true tech-based company. This can be summed up in a single quote from NBDR CEO Joseph Snyder, “we had to go to work.” Keeping mind NBDR came to light during the 2018 blockchain boom and the hype phase of that new technology, there were expectations from some investors looking for a unicorn startup that simply has not come to flourishion. However, just like for many early adopters, reality set in quickly. This is where NBDR came across a fork in the road. Two distinct routes appeared, each with sets of pros and cons. The company could stay with the rest of the trailblazers, work with partners to develop and launch blockchain systems and software or go it alone by acquiring business models that could someday rely on blockchain and develop those systems in house. Both routes have merit and carry their own risks and rewards. However, today, almost two years later, time has demonstrated a more conservative approach may have a better chance of standing the test of time.
In a Cbinsights.com article “323 Startup Failure Post-Mortems” which examined the potential reasons startups fail, Cbinsights highlights that “In the spirit of failure, we dug into the data on startup death and found that 70% of upstart tech companies fail — usually around 20 months after first raising financing (with around $1.3M in total funding closed).” NBDR is now just hitting that 20-month mark. Cbinsights.com has also written that the chance of a startup has a roughly 1% chance of attaining unicorn status.
Now I’d like to shift gears and talk about NBDR’s 2020 road map. If you would like additional information about how the company has gotten here and what they’ve accomplished so far, take a look at previous articles and due diligence posted at https://randomanalysts.wordpress.com/stocks/no-borders-inc-dd/.
Taking a look at the 2020 road map as laid out by Mr. Snyder, we see four significant action points, two supporting points, and two pivoting points. These eight points are listed below.
2020 Road Map
Significant action points
- SEC Reg 1A
- Hire auditors to conduct two-year company review
- Become a fully SEC reporting company
- Uplisting OTCQB
Supporting action point
- Bring on eight new advisors
- Intellectual Property
- Selling current verticals
- Acquire new verticals
One thing that may be unsettling for some investors is that these eight points are condition/event-based rather than time-based. Most companies chose to assign dates to the events they plan to accomplish. For an OTC, this can be both a blessing and a curse. The blessing can come from an increase in a positive stock movement when a significant material event is announced if that event is delayed or fails to come; there is an immediate downward swing occurs. By tying the event points to the conditions they need for success, NBDR reduces their exposure to risk; however, it also reduces the volatility of their stock. The low volatility of the stock is evident by the steady price channel NBDR has maintained over the last year.
The first significant action point, the SEC Reg 1A, is already in the works. The SEC has accepted and approved the documents, and those documents have been filed with several states. Additionally, Mr. Snyder stated that through amendments, NBDR can adjust the price per share structure of the 1A or halt it altogether if funding has been met. The full SEC Reg 1A is available on the SEC website, an analysis of funding utilization can be found at https://randomanalysts.wordpress.com/2019/10/08/catching-up-on-no-borders-inc-otcnbdr/, and further explanation can be found in the Oct 10 update video.
Significant action points 2, 3, and 4 are progressional, with each one needing to be complete for the next one to begin. To up-list, NBDR needs to be fully reporting, to be fully reporting, they need to be externally audited. This part of the 2020 road map is already in the works based on what Mr. Snyder said in the video in regards to being in talks with an auditing firm.
Next, taking a look at the supporting action points, there’s nothing special going on. Mr. Snyder will continue to leverage all assets to improve the company and open new doors. Eight new advisory board members will help him do that, but without knowing who they will be, it’s hard to assess their effect on the company. As for filing to protect intellectual property, that’s just good business. As the filings are announced, we may get to see what products NBDR is getting ready to launch, but this isn’t a new activity for them.
The last thing to take a look at is the two pivot points. As businesses grow and advance, they make several pivots towards or away from process and models depending on their effectiveness on the companies operations. A lot can be inferred about a company by how it accomplishes these pivots and speed and tempo used to complete them. What NBDR seems to be looking for are positive rapid and deliberate pivots along the lines of acquisitions or divisions of the company subsidiaries. By highlighting the possibility of acquiring addition members to the NBDR family, the company is showing they can act decisively if an opportunity arises. Conversely, they also formulated opinions in regards to how they would approach the possibility of dividing one or more subsidiaries off from the family if an offer were to be made.
In the final analysis, NBDR appears to be setting the conditions for a successful year to come, They have a plan, and a team that can execute it. The continued viability of NBDR as a technology based company, rest on the ability to properly capitalize on the action points listed above, and keeping shareholders updated as to their progress.
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