The NFT Marketplace, Inc.

What they do

The company was formed via a reverse merger with Valtech Communications in June 2008, offering triple-play telecom services (digital phone, internet, digital TV). In November 2011 it agreed to acquire the Buildablock Assets, an internet and mobile service platform including a social networking library and the "DealWink" e-commerce engine. The acquisition closed March 7, 2012, and effective February 24, 2012 the company changed its name to Buildablock Corp. On April 30, 2012 it sold Valtech back to original shareholders for $1.00 and now focuses on developing the Buildablock platform.

Revenue drivers

• Buildablock platform — Development-stage social networking and e-commerce platform; no revenues generated to date per the 10-Q.
• Valtech telecom services (discontinued) — Historical triple-play services sold April 30, 2012; 2010 revenue of $188,908 and 2011 revenue of $134,422 came from this business.
• DealWink e-commerce engine — Part of Buildablock Assets; intended to combine group buying, couponing, and price aggregation; no revenue reported.

Recent performance

Annual revenue was $188,908 in 2010 and $134,422 in 2011, entirely from the now-disposed Valtech business. Net losses were $860,465 in 2011 and $1.2M in 2010; later annual net income of $1.2M (2012) and losses of $1.3M and $1.5M (2013) appear in XBRL data. Quarterly revenue was $6,431 for the period ending 2012-02-28 and $0 for quarters ending 2012-05-31 and 2012-08-31. At 2013-05-31, total assets were $100,301, total liabilities were $329,484, and shareholders' equity was negative $229,183.

Strategy

Management's plan is to focus on developing the Buildablock social networking platform and e-commerce model, targeting the Montreal area. The company launched a test version of its consumer purchasing website on September 21, 2012. It appointed Jonathan Wener and Sheldon Leibner to an Advisory Board in the third quarter of 2012. The company states it has not generated any revenues from Buildablock and may never achieve market acceptance or more than nominal revenues.

Risks

• Going concern — The auditor included an explanatory paragraph in the fiscal 2011 report stating that sustained operating losses and capital deficits raise substantial doubt about the ability to continue as a going concern.
• No revenue from Buildablock — The company has generated no revenues from its Buildablock platform and may never achieve market acceptance or more than nominal or modest revenues.
• Competition — The company faces competition from traditional communications companies with longer operating histories, greater resources, and larger customer bases, and has no patent protection.
• Financing risk — The company had negative shareholder equity of $229,183 at 2013-05-31 and states it may need additional financing, which could be impaired by the going concern opinion.

Outlook

Management expects losses and negative cash flow to continue for the foreseeable future due to development expenses. The company is unable to predict when or if it will become profitable and states it is possible it will never become profitable. Its ability to continue as a going concern depends on generating positive cash flow or obtaining additional financing, neither of which is certain.