Decentral Life, Inc.

What they do

The Company operates as a technology business incubator (TBI), providing tech founders with access to its intellectual property—an AI-powered social network and ecommerce platform leveraging blockchain technology, NFTs, and token securities. It licenses these technologies to participant companies and offers consulting services. It also has a division focused on Web3 blockchain development, including the WDLF security token and decentralized apps for security token offerings (STOs).

Revenue drivers

• Technology licensing — Primary revenue source, from licensing its AI/blockchain social network and ecommerce platform to TBI participant companies; revenue for nine months ended Sept 30, 2023 was $489,150.
• Consulting services — Provides executive knowledge and leadership assistance to startups; decline in licensing and consulting contributed to a $162,488 revenue drop in the 2023 period.
• Web3/STO related apps — Launched and licensed decentralized apps for companies to run their own security token offerings, though contribution is not separately quantified in the provided data.

Recent performance

For the nine months ended September 30, 2023, revenue was $489,150, down from $651,638 in the same 2022 period, a decrease of $162,488. Cost of revenue was $44,215 in 2023 versus $0 in 2022. Operating expenses increased materially to $466,944 from $175,096, driven by higher legal/professional fees (~$241,000) and marketing (~$39,000). As of September 30, 2023, the Company had $77,910 cash, total assets of $643,316, total liabilities of $207,500, and shareholder equity of $435,816.

Strategy

Management intends to expand the TBI program by licensing technology to additional tech startup companies, aiming to increase revenues. They plan to fund operations over the next year through public issuance of common stock and related party loans. The Company is focused on developing blockchain and Web3 solutions, including the WDLF security token, to attract startups needing STO capabilities. They acknowledge that expansion will increase expenses and could lead to additional net losses.

Risks

• Going concern uncertainty — Independent auditor BF Borgers CPA PC issued a going concern opinion; accumulated deficit was $32.79 million at Dec 31, 2022 and $32.86 million at Sept 30, 2023.
• Dependence on financing — The Company has relied on equity and debt financing and there are no assurances that additional funding will be available on acceptable terms or at all.
• Technology obsolescence — The market is subject to rapid technological change, and if its social networking platform becomes obsolete, licensing revenue would be negatively impacted.
• Potential industry saturation — As niche social networks and ecommerce solutions become more common, market saturation may make it harder to expand the TBI model; innovation will require additional funding.

Outlook

Management anticipates expenses will increase as they ramp up expansion, likely leading to additional losses until profitability is approached. They will need to generate significant revenues to achieve profitability, with no assurances. The Company plans to finance operations through stock issuance and related party loans, and intends to overcome the going concern issue by increasing TBI licensing, though success is uncertain.