CORAL SPRINGS, FL, August 9, 2013 - Cyber Kiosk Solutions, Inc. (OTCPink: CYBK), (referred to as “Cyber Kiosk” or the “Company”), provider and distributor of internet-based, multifunctional Cyber-Thingy[TM] kiosk machines, web-based portals, and tablets to merchants which are utilized as an in-house vehicle for customers to easily access bill payment services and international money remittances, domestic and international wireless pre-paid services, as well as purchase pre-paid debit cards, gift cards, event/sports/movie tickets, consumer products, issued a mid-year progress report on its growth initiatives today.
The core of Cyber Kiosk’s growth strategy remains focused on direct placement of its kiosk machines as well as entering into distribution partnerships with synergistic companies that assist in the diversification and expansion of its consumer products and service offerings as well as its revenue streams. The Company is also concentrated on evaluating and entering into strategic, accretive acquisitions that when completed, will work to strengthen its balance sheet, enhance revenues and bolster shareholder value.
Sales and Distribution
Cyber Kiosk’s sales and distribution strategy is focused on direct placement and on pursuing strategic partnerships with companies that have access to a large pool of merchants whom are eager to upgrade their current Point-Of-Sale (POS) system and grow their customer products and service offerings. Cyber-Thingy[TM] products allow merchants to offer their customers a larger suite of services and products than old POS systems including bill payment and international remittances, domestic and international wireless pre-paid services, pre-paid re-loadable Connect2Family MasterCards, gift cards, as well as various bill payment vendors. In addition, by upgrading their POS systems, merchants free up shelf space within their stores and earn residual income on any customer purchases.
Partnership Agreement with Empasys and PreWay:
In January 2013, Cyber Kiosk along with Empasys, a leading full service software provider, and PreWay, a pre-paid provider of top-up wireless services and complimentary products, joined together to bring an upgrade to their old Point-Of-Sale (POS) systems within their combined 20,000 merchant locations nationwide. The Companies have developed a web-based portal that was launched in approximately 4,000 merchant locations as of July 2013. The web-based portal allows for greater ease of transactions and provides merchants with a greater compilation of products and services. Owners and employees of recently launched locations are either finished or currently training on this new system.
The partnership expects to earn residual revenues and transaction fees from the utilization of the web-based portal in Q3 2013, of which Cyber Kiosk will retain a portion of these revenues. Plans to evaluate locations’ profitability will be done quarterly. The results will then determine if merchants are due the next upgrade, being a tablet or a free-standing Cyber-Thingy[TM] kiosk.
Distribution Agreement with Max Celular:
Signed in January 2013, Dominican Republic’s Max Celular, distributor of Claro wireless services and airtime minutes, agreed to purchase and place 200 Cyber-Thingy[TM] kiosk machines in select cell phone and convenience store locations. The agreement is contingent upon the delivery of an initial Cyber-Thingy[TM] kiosk proto-type for backend testing. The delivery of the proto-type has been delayed following additional requirements made by the Dominican Republic government related to its software reporting systems.
Cyber Kiosk anticipates delivering the prototype to the customer in Q4. While backend testing of the prototype should be completed within 60 days of delivery, it could result in the need for additional features and/or changes; therefore the timeframe for recognizing revenue on the initial purchase order of 200 kiosks is uncertain. However, the Company is confident that once testing is completed successfully and all parties approve the prototype, the purchase order will be fulfilled.
Strategic Acquisitions
Throughout the first half of 2013, Cyber Kiosk has been actively pursuing and continues to pursue accretive, opportunistic acquisitions to further expand its product offerings and revenue streams, while contributing to and strengthening its balance sheet.
Acquisition of XSKN:
Announced in February 2013, the Company entered into an agreement to acquire a 25% equity stake in XSKN, a leading manufacturer and provider of premium quality Japanese silicone skins for Apple iPhones and iPads, Samsung’s Galaxy series, Blackberry’s Z10 as well as computer keyboards. The acquisition agreement also includes the right for Cyber Kiosk to bring the in-demand, Japanese silicone skins to the un-tapped North American market and sell within certain retail locations.
Cyber Kiosk issued XSKN 5 million shares as a part of the initial steps of the agreement and concluded its requisite due diligence measures on XSKN in April 2013. The Company is currently in the testing phase of product molds and designs, while simultaneously pursuing strategic branding- and licensing-related initiatives that, provided the testing phase has been completed successfully, will play an active role in marketing and sales efforts going forward. According to management, the acquisition of a 25% equity stake in XSKN is expected to be completed in the first quarter of 2014 and will be announced to the public shortly thereafter.
Acquisition of Golf Concessions:
Cyber Kiosk released in March 2013 a signed letter of intent to acquire 100% of Golf Concessions LLC, specifically, the Concessions Pro[TM] name and Concessions Pro[TM] kiosk patent number 741-8311. Its refrigerated golf cart kiosk is designed to be mounted on the back of a golf cart to dispense cold beverages and snacks. Once acquired, Cyber Kiosk Solutions plans to reengineer Concessions Pro[TM] kiosk’s mounting system to prevent drinks from being shaken up during the rounds of golf. This utility patent is the only one of its kind, and one the Company believes will be instrumental in further diversifying its kiosk product offerings and revenue streams looking ahead. To date, management teams of Cyber Kiosk and Golf Concessions, LLC are in the final stages of completing the acquisition and will inform shareholders and the investment community upon closing.
Cyber Kiosk’s COO, Oren Manelis states, “Looking ahead, we are concentrating on fulfilling our current contracts, wrapping up pending acquisitions as well as seeking out other attractive and opportunistic transactions that have the ability to significantly contribute to revenue, assist in our vertical integration or strengthen our position in the telecom industry. In addition, we plan to release a mobile app for our customers allowing them greater flexibility to utilize and purchase from our plethora of pre-paid consumer product and services. With the popularity of mobile apps escalating we believe that this added benefit will work to encourage repeat customers as well as heighten residual income for us and our merchants.”
Other News:
Cyber Kiosk has resolved the outstanding loans with the 4 original investors who loaned money to the private company prior to the merger in November of 2012. The Company expects to upload its financial filings and attorney opinion letters to OTC in the next few weeks to get back to a current status. The Company is in the final stages of completing a few key partnerships and acquisitions and expects to release information relating to these transactions after completed in the coming weeks. Provided the acquisition closes in August, Cyber Kiosk intends to include the acquisition in the audit when it takes the steps to up-list to the QB during Q3 & Q4 of this year.
About Cyber Kiosk Solutions, Inc.:
Cyber Kiosk Solutions distributes Company owned kiosk machines and tablets under the brand name Cyber-Thingy[TM] to earn residual revenues and/or sell kiosk machines to earn up-front and residual revenues. Cyber-Thingy's[TM] multiple revenue streams are derived transaction and fee based programs running within the kiosks such as; Digital Advertising, Mobile Phone Top-up minutes (reload), Online Bill Pay, Gift Card Programs, Prepaid Cards, and the debut of New Branded Products (ALL with immediate purchasing options). Each Kiosk machine comes with a cash bill acceptor and a credit card reader for ease of payment. Tablets are connected to existing POS systems. These multi-functional kiosks and tablets earn Cyber-Thingy[TM] residual revenues and create residual revenue opportunities for the multiple companies involved.
The foregoing press announcement contains forward-looking statements that can be identified by such terminology such as "believes," "expects," "potential," "plans," "suggests," "may," "should," "could," "intends," or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. In particular, management’s expectations could be affected by, among other things, uncertainties relating to our success in completing acquisitions, financing our operations, entering into strategic partnerships, engaging management and other matters disclosed by us in our public filings from time to time. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
CONTACT:
Chris Clarke, [email protected]
855-850-CYBK (2925)
SOURCE Cyber Kiosk Solutions, Inc.