Current — Record Growth Continues, ModePhone Expansion, Upcoming Fintech Products, $CRNC & More

TL;DR — Key Announcements

• July was a record-breaking revenue month with >$2M monthly revenue for the first time (+3% MoM). This is +900% YoY, and more than double the total Q3 revenue of 2020.
• Set new high for Weekly Active Users (WAU) with > 1.1M earners in 2nd week of August, +439% YoY
• First-Time User Experience (FTUE) has helped users engage with the app more deeply — users who completed this experience have 3x to 5x retention vs. those who didn’t previously.
• Launched a new user experience for Deals, and now have over 100 deals within the US which helped drive a new all-time high for Deals revenue in July.
• Demand for offline Mode sales within the dealer and reseller networks continues to accelerate. With 5 different MVNO (mobile virtual network operators), potential sales of over 30k units.
• Over $200k in sales booked in one week for Mode.
• 2nd order of Mode’s MP1 phones ordered and expected delivery at the end of September.
• New vendor sourced to manufacture MP2 at a lower cost than MP1. MP2 will have 4GB memory plus 128GB storage built-in and double LTE bands to work in more countries.
• The Mode Phone had a booth at the All Wireless Prepaid Expo in August. The goal of the show was to meet in person with wireless dealers and mobile repair dealers on creating partnerships and sales channels for offline sales. Also in attendance were carriers and MVNO’s which will establish a solid foundation for future sales partnerships.
• August 16th — 20th, 2021, the $CRNC token was fully migrated from the ETH Network to the Algorand Network. The snapshot was taken, and tokens were issued into a book-entry format. New wallets were seeded with enough ALGO to add the new contract and complete up to 9 transactions. The first round of reallocation issuances on-chain to holders who successfully added the wallet, the asset, and authorized with Securitize. (This will continue to happen on a rolling basis)
• We have completed an initial draft of our new whitepaper, which provides the context of the plan to migrate towards a utility token and the steps required to achieve decentralization of the network over time. We are working with our outside securities counsel (Wilson Sonsini) to address any potential legal pitfalls associated with our plan.

Key Financial Metrics and Strategy Roadmap

Current Mobile’s revenue growth continues, with 2021 YTD consolidated revenue (incl. Mode) through July 2021 up 236% from all of 2020. On a quarterly basis, gross revenue grew 50% Q/Q in Q2 2021 to $5.45M, with Earn OS revenue up 45% Q/Q to $5.17M, and Mode revenue up 270% Q/Q to $0.27M. Revenue in July 2021 grew 811% Y/Y to $1.87M.

Our global MAU (Monthly Active Users) stands at 2.8M at the end of Q2 2021, which is up 525% Y/Y. We’ve shifted focus toward international territories given the larger long-term opportunity and have seen strong initial results even though the product has yet to be localized (i.e., by local language). ​​As we localize the product for other countries, we expect a material increase in the international DAU/MAU ratio, which is currently behind the US DAU/MAU ratio of 23%.

Furthering our mission to enable budget-conscious consumers to earn passive income and provide access to capital through everyday activities, we have started giving shape to our long-range plan. In 2022, our goal is to provide budget-conscious earners access to capital through financial services solutions aimed at this income demographic. In 2023, our plan is to localize EarnOS to make it financially impactful for earners in emerging markets. Finally, in 2024, our ultimate goal is to offer free smartphones and data worldwide to budget-conscious consumers. Our mission and the long-range plan ultimately helps us realize the shared vision of success — that is, to sustainably offer a FREE Smartphone & Data Plan to every person on Earth.

Current Mobile is defining a new category — an emerging mobile earnings and savings ecosystem. The way we now understand this category, we envision three key components which would broadly define the category:

1. EarnOS™ — It connects users to new earnings & savings opportunities globally based on the things they often do. Our significant growth proves market demand for our earnings value proposition — our monthly users now generate ~$2M/month in revenue.
2. Mode™ Earn Enabled Devices — Initial success of the Mode Phone HW/SW product drove stronger KPIs across the board with higher levels of user engagement, retention, & monetization. We are now creating “Earn Enabled” devices as a category via software licensing partnerships with mobile carriers & OEMs to launch their own products.
3. Financial Services — This endeavor provides investment opportunities to activate “non-participants’’ to financial services traditionally out of reach to an underserved global user base. We are laying the foundation to deliver on access to capital offerings such as savings accounts, fractional investing, crypto, & micro-loans. These financial services would keep the earning redemptions within the ecosystem, improving long-term retention rates & user lifetime value.

Our powerful mission, proven & scalable growth model, and large addressable market size with the right initial product-market fit have started to get traction in the capital markets. We have an innovation-focused & results-driven team with exceptional talent, values & culture. The team is extremely focused to build a category-defining mobile earnings and savings ecosystem to deliver extraordinary value to our budget-conscious consumers worldwide. This focus has resulted in significant gains in APRU and retention and we are very much on track to deliver $20M+ revenue in 2021 (an increase of 11.5x from 2020).

Product Improvements & Updates

With a continuous focus on adding further value to our users, we have adopted more rapid experimentation for our product development process. This approach has helped us to learn faster and roll out more impactful features for users at a faster speed. Users who went through our First Time User Experience (FTUE) survey initiative shared that they needed clearer guidance to finish the flow. We quickly took their feedback to up-level the clarity and added more motivating earning targets (for example, $10 Amazon Gift Card), which increased the share of users who complete the flow by ~35%. Even more exciting, those who completed the flow had 3x to 5x retention at the end of the first week vs. our prior benchmark thereby proving that they were able to learn and enjoy the app quickly via this experience. Similarly, by educating first-time users about the ability to earn by playing Games, we increased the share of users engaging with Games in the first 5 days by ~20%. The key takeaway for us in the upcoming months is to help educate and drive awareness to users about the great earning options we provide on our apps, especially as we add more over time.

In addition to quick experiments, we also improved the overall app experience for our users to drive engagement and values to users. From research, we know that our users love Deals! Our newly launched Deals experience provides users with the ability to complete Deals without leaving the app, and a better way to browse, navigate and find the Deals that best match their interests.

Three new features include Contests, Installs, and Reels. Contests add a new and exciting twist to more traditional offer walls by gamifying the experience for users. Users can complete a variety of tasks to receive rewards, but — in addition to those rewards — tracks their total rewards compared to other users over the course of a week. The top 100 earning users receive a share of a $10,000 prize! Alternatively, Installs gives users the opportunity to test out new applications for a reward. It’s a low effort, high reward action that fits well in with users’ earning habits. Lastly, a pilot of Reels brings users short-form videos via a partnership with Firework.tv, one of the world’s most popular global video brands. This is only being piloted with a small subset of users but engagement looks quite promising. We look forward to iterating on this experience to bring a higher quality rewarded video experience to our user base.

Recently, we have also been doing a significant amount of user research and studies to learn more about what Current App and Mode users are interested in doing with their money. We found that a huge portion of our users would be extremely interested in being able to redeem their points for not just gift cards or cash, but also fractional stocks and even cryptocurrencies! We are currently working on integrating this functionality into the Current App and hope to have it live by the end of this year. We are extremely excited about this feature because not only is it something our users are excited about, but it’s one of our first steps into the fintech space, a space where we intend to add many more product offerings in the near future. You can look forward to many more details about this in upcoming updates.

We are so excited about what is to come in the next few months!

Mode Phone

The MODE team continues to see increasing demand in the off-line and online sales channels. The constant feedback is that the MODE phone is a game-changer product due to its unique ability to have users earn money and at a price point of $139.99 for a great featured phone. The data continues to show users of the MODE phone earn at a higher rate than just having the Current app by itself.

Earn MODE Club is set to launch within weeks. MODE Earn Club Premium is a monthly membership and Quarterly sample box with offers for faster earning in product earning & savings opportunities. phone insurance, free product samples, and items like smartwatches and headphones among other items for a low monthly subscription fee.

The offline sales team is currently identifying sales channels and pricing targets for large-scale dealers and carriers. In just a few short months, we have identified several large retailers and mobile carriers who are interested in the MODE device as well as the Earn OS operating system, and these discussions will continue throughout 2021.

Mode prepaid cards offer users an additional method to redeem their points, especially if they don’t have a PayPal account. Users also benefit from less risk of overspending than credit cards and offer a few other benefits:

• Easy to use, and safer than cash.
• An alternative to banks — especially great for some of our users who may be underbanked.
• Secure alternative form of payment.

$CRNC Token Updates

On August 16, 2021, we began the process to migrate $CRNC Tokens from the Ethereum Network to the Algorand Network. The old ETH-based contract was locked, and a snapshot was taken to record the amounts previously held by each wallet. Those values were then recorded in each holder’s account in book-entry format. As holders update their accounts with new ALGO wallets, add the new contract to the wallet and authorize the asset, they will be eligible for asset reallocation where tokens would be moved from book-entry format on-chain. Assets were allocated for the first time on Friday, August 20, 2021, and will continue on a rolling basis. Peer-to-Peer transfers may resume so long as both wallets have been authorized by Securitize. The cost to transact on this network is a minute fraction of what it cost previously to transact on the Ethereum Network.

For reference, the official new contract on Algorand:

https://algoexplorer.io/asset/238498122

Asset ID: 238498122

As we continue our efforts to get all holders reallocated to the Algorand blockchain, we have outlined the following dates for the next round of issuances:

• Tuesday, October 5, 2021: Investor Bonuses
• Tuesday, October 12, 2021: Bounty Participants

Further details will be provided ahead of each issuance.

Following these issuances, we will be planning to distribute Q1-Q3 Dividends, once the books have been formally closed. It was important to us that we get through the next round of issuances ahead of the issuance of our first dividend.

As an update for what the future holds for the expansion of CRNC, the team has been hard at work planning a path to decentralization for the CRNC token. An updated whitepaper has been completed and over the next few weeks, we will be working with our outside legal counsel for feedback and guidance ahead of a public release. This outlines our vision for the CRNC token in the future, the steps we plan to take to realize that vision, and how we plan to develop the Current ecosystem to support and synergize with the token. We are very excited to share this vision with all of you and are working to get it out as soon as possible.

How to Get Involved

• Chat with us on Twitter!
• Add Questions here for an upcoming Q&A.
• We’re hiring! Have someone in mind that you think is a perfect fit for one of our open positions? Send them a link to our job board. As a reminder, we pay a referral fee for any employee we hire!

If you ever need to reach out to our investor relations, or leadership team, please feel free to email info@current.us, and we assure you that we will respond in a timely fashion. Please keep an eye on our Telegram Announcement channel or Medium for all future updates. If you’d like to ask a question specifically for an upcoming Q&A, drop a question in our Google Form.

[PLEASE READ] Important legal disclaimer: No money or other consideration is being solicited by this communique, and if sent in response, will not be accepted. Our discussion may contain forward-looking statements that are based on our beliefs and assumptions and on information currently available to management. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “is designed to,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.

These statements involve risks, uncertainties, assumptions, and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each such forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements include, but are not limited to, statements about: developing and designing the Current network, including the $CRNC token and its future utility; the anticipated development and growth of the Current Network; maintaining and expanding our base of users; our anticipated growth and growth strategies and our ability to effectively manage that growth and effect these strategies; our expectations regarding regulatory developments and their effect on the Current Network, including the ability of applications on our network to develop a user base and a successful business model; and potential future listings on an exchange or ATS. We cannot assure you that the forward-looking statements will prove to be accurate. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. We undertake no obligation to update any forward-looking statements publicly, whether as a result of new information, future events or otherwise, except as required by law.