KALiiN currently is a Limited Liability Company (LLC) that was formed on February 14, 2017, under the laws of Tennessee in the USA.  Our company and its team initially began researching, designing and building the KALiiN application (hereinafter the "App") in November 2015, which was created to develop a business and consumer mobile application platform by using Artificial Intelligence (AI) and Machine Learning.  KALiiN was originally developed by Richard Grover and team at VaranIDEA, LLC. The technology and intellectual property were transferred to KALiiN, LLC from VaranIDEA, LLC and there is no ongoing obligation for the use of the technology to VaranIDEA, LLC.

KALiiN brings Big Data and Micro-Predictive Analytics directly to: (1) consumers, (2) businesses for integration into their core systems, and (3) other types of organizations.  KALiiN also manages a vast array of diverse data that improves consumers', businesses’ and others' overall ecosystems, making their data much easier to organize and more efficient to use.  For many companies and individuals, the biggest sources of their data are underutilized.  This data includes a user’s activities, events, current and future actions, relationships between all of these elements, and ultimately their subsequent decisions and actions. 

Our Company believes that the KALiiN Native Behavioral Advertising and the KALiiN IQ will result in new, complex, big data sets and analytics that are expected to generate substantial user benefits, revenue and business value.  KALiiN uniquely and efficiently solves the problem of making more efficient and effective use of our users' time, for many types of uses, by collecting and analyzing event and activity data (what our users do, who with, and where), and then it reorders and reprioritizes their activities (all while continuing to learn their preferences), and ultimately helps our business and consumer users find opportunities, and recommends the appropriate user actions based on the KALiiN user IQ.  The result for (1) business or consumer users is much more efficient and purposeful time, (2) for the advertisers is higher advertising “click through rates”, (3) for KALiiN, it's more comprehensive data that can be monetized in the future, and (4) it also improves KALiiN's technology platform that affords businesses a competitive advantage via Private Labeling.

The App initially was developed and incubated by Richard Grover, Founder/CEO of KALiiN and VARANIDEA, the Company’s sole member upon the formation of KALiiN.  During the period from November 23, 2015 to February 13, 2017, Richard Grover and VARANIDEA invested a total of $253,982 in creating and developing the KALiiN App in exchange for equity in Kaliin.  On February 14, 2017, Richard Grover and VARANIDEA transferred the intellectual property rights for the App into KALiiN, LLC.  Subsequent to February 13, 2017, $63,100 of additional development costs for the App were incurred by KALiiN through June 30, 2017.  These development costs were paid for by Richard Grover and VARANIDEA, and are considered contributed capital; accordingly, no repayment of these costs by the Company is necessary. Subsequently $157,918 in cash was contributed by Richard Grover and VARANIDEA in exchange for equity in KALiiN.  Since all of the software development costs for the App also were expensed under software capitalization standards, and transferred into KALiiN on a carryover basis due to the related-party nature of the transaction, there is no monetary amount recognized on the balance sheet as contributed upon the formation of KALiiN.

Additionally, as of May 31, 2017, KALiiN also had received an additional $100,000 in capital contributions in exchange for a 2% interest in the Company.

Operating Results and Future Milestones

As of our February 14, 2017 financial statements, the company has not been engaged in its primary operating activities or received any revenue. We still are developing our principal product and we expect to begin generating revenue with the release of version 2.6 of the App beginning in September 2017.

Our target market consists of busy people with multiple events going on in their lives, including parents, students, gamers, and business clients for Private Labeling. We believe that we will be able to generate $1.00 to $5.00 per month per user and our anticipated cost of revenue is expected to be $0.25 to $0.50 per user per month.

We track standard App metrics, such as downloads and daily users via Fabric.
Our current expenses amount to approximately $15,000 to $25,000 per month. Approximately 50% of our expenses consist of development costs paid to our development partner SC Tapptitude Apps. Specifically, from February 14, 2017 to June 30, 2017, $63,100 in total development costs were incurred by the company. These costs were paid for by Richard Grover and VARANIDEA, and are considered to be contributed capital and therefore no repayment of this amount is necessary.

Following the completion of this offering, we anticipate that our monthly expenses will increase to approximately $30,000 to $70,000 per month, depending on the total amount of capital raised in the offering. While development costs will continue to comprise the most significant portion of our monthly expenses, we also intend to increase our monthly marketing expenses to 9% or 10% of our total operating budget. 

The primary challenge to our ability to generate sufficient revenue and thereby engage in our planned future expenses will be the acquisition of a sufficient number of new KALiiN users. 

Liquidity and Capital Resources

As of February 14, 2017, we did not have any cash on hand or other cash equivalents. Since that date, we have received additional capital contributions from Richard Grover and VARANIDEA to fund our operations, and we also received an additional $100,000 investment from two outside investors in exchange for 2% of the equity of the company. 

As of August 2, 2017, our current cash on hand was approximately $53,000. This cash will allow us to operate for an additional 3 to 4 months without additional capital contributions from Richard Grover, VARANIDEA and/or other Angel Investors. Should additional contributions be required, the company anticipates it will be able to obtain such capital contributions.

In the event of a successful offering, we will have raised $50,000 to $1,070,000 from investors.  These funds will be put to use immediately for App development, marketing, and other operational costs. In the event we raise the maximum total annual investment of $1,070,000, we anticipate those funds will be expected to last for approximately 12 to 18 months.  However, any amounts of additional capital raised are expected to be supplemented by generating revenue commencing in October 2017.

At this point, we have not sought any debt financing from any institutional lenders and we do not expect to do so in the future.