What is the primary revenue driver for NXGH according to the deck?

The primary revenue driver at the time of the presentation was the acquisition of Tel3, a prepaid international calling card service, which added $3.1M in annual revenue. Additionally, the deck highlights the Next CALA mobile banking product as a 'flagship' offering, projecting significant growth in account fees, maintenance fees, and reload fees starting in 2017.

How does NXGH handle its banking and payment infrastructure?

NXGH does not operate as a bank itself. Instead, it leverages strategic partnerships. Slide 10 notes that InComm provides the Money Transmitter Licenses (MTL) in all 50 states and facilitates 'Cash-To-Plastic' transactions at 210,000 locations. The Bancorp Bank is specifically named as the issuer for the Visa Prepaid Cards used in the Next CALA program.

What is the 'NXT GN' product mentioned in the deck?

NXT GN is described on Slide 7 as a high-definition telepresence platform for mobile phones. It was developed in 2012 and offers point-to-multipoint connectivity. It is available on both Android and iOS. Unlike the other fintech and telecom products, this appears to be a legacy software asset rather than a primary retail service.

What is the ownership structure of the company?

The company has a high concentration of inside ownership at 67.7%. The largest individual shareholder is Arik Maimon with 29.46%, followed by Huseyin Kizanliki at 20.39%. A significant portion of the shares (17.90%) is held by CEDE & CO, which typically represents shares held in brokerage accounts for various investors (Slide 16).

What are the projected unit economics for the Next CALA card?

According to Slide 13, the company charges a $3.95 new account fee and a $3.95 monthly maintenance fee. The cost to manufacture the card is $1.45, and customer support is estimated at $0.75 per account. They also earn a $1.00 fee per reload, though they offset some costs with rewards program expenses ($1.00 for opening, $0.50 for reloads).

NXGH Pitch Deck Teardown: A Multi-Product Fintech

Next Group Holdings (NXGH) utilized this January 2017 deck to pitch its position as a diversified holding company focused on the unbanked and underserved markets. At the time of the deck, the company was traded on the OTCQB with a market cap of $4.5M. The strategy relied heavily on a 'roll-up' model, highlighted by the acquisition of Tel3, which added $3.1M in annual revenue. The deck outlines three distinct product lines: Next Mobile 360 (an MVNO leveraging Sprint), Next CALA (a mobile banking and rewards solution), and NXT GN (a telepresence platform). While the deck provides granular finan…

Key takeaways

The company reported a market capitalization of $4.5M as of December 16, 2016, with 246.9M shares outstanding (Slide 4).
A recent acquisition of Tel3 added $3.1M in annual revenue, contributing to a total monthly revenue of $250,000 for the group (Slide 4).
The business model is built on three pillars: a prepaid MVNO (Next Mobile 360), a mobile banking solution (Next CALA), and a telepresence platform (NXT GN) (Slide 7).
Strategic partnerships are central to the operations, including branding by CP+B and licensing/distribution through InComm's 210,000 locations (Slide 10).
Financial projections for the Next CALA product assume a starting point of 50,000 accounts opened in month one of 2017 (Slide 13).
The company maintains a high level of inside ownership at 67.7%, with Arik Maimon holding 29.46% of shares (Slides 4 and 16).
The management team and board include individuals with significant retail and tech backgrounds, such as Les Paul, a former CEO of Montgomery Ward (Slide 22).
The deck identifies $1.2M in debt via convertible debentures, with plans to retire $0.7M of those notes (Slide 4).

Executive Summary: The Diversified Holding Company Model

The NXGH investor deck from January 2017 presents Next Group Holdings as a multifaceted entity operating at the intersection of telecommunications and financial technology. The deck is structured for a public market audience, specifically those trading on the OTCQB. It emphasizes revenue growth through acquisition and the deployment of a 'ecosystem' of products targeting the unbanked and international caller demographics. While the deck is data-heavy regarding share structure and partnerships, it lacks a traditional 'problem/solution' narrative found in early-stage venture decks, focusing instead on the mechanics of its existing and projected revenue streams.

Slide 1: Title and Market Identity

The cover slide establishes the company's identity as a publicly traded entity under the ticker OTCQB: NXGH . The imagery—a younger woman assisting an older man with a tablet—suggests a focus on accessibility and perhaps a multi-generational or immigrant demographic, which aligns with their international calling and prepaid banking products. The date, January 2017, sets the context for the financial projections that follow.

Slide 4: Key Facts and Capital Structure

This is one of the most critical slides for an OTC investor. It provides a snapshot of the company's health and scale. Key metrics include:

Acquisition Impact: The Tel3 acquisition is the headline, adding $3.1M in annual revenue. · Current Revenue: Stated at $250,000 monthly between Tel3 and M&M. · Operations: Based in Miami with 7 contractors, indicating a lean corporate overhead. · Debt: $1,200,000 in convertible debentures, with a note that they are retiring $0.7M. This is a vital disclosure for penny stock investors wary of dilution. · Market Cap: $4.5M as of December 16, 2016. · Ownership: 67.7% inside ownership, which suggests management's interests are aligned with shareholders.

Slide 7: Product & Service Offering

NXGH outlines three distinct business lines: Next | Mobile 360: A prepaid MVNO (Mobile Virtual Network Operator) using Sprint’s network. It focuses on international calling and claims 'above-average profits.' Next | CALA: Described as the 'Flagship product,' this is a mobile banking and Visa debit card solution. It is positioned as a cash alternative and includes a rewards program. NXT | GN: A telepresence platform developed in 2012. This product feels somewhat disconnected from the telecom/fintech focus of the other two, representing a legacy software play.

Slide 10: Strategic Partnerships

To establish credibility, NXGH lists several 'blue-chip' partners. The inclusion of Crispin Porter + Bogusky (CP+B) is notable; the deck claims CP+B is a 4% stakeholder and responsible for branding. The partnership with InComm is arguably the most important for their business model, as it provides the necessary Money Transmitter Licenses (MTL) and a massive distribution network of 210,000 locations. The slide also mentions The Bancorp Bank as the card issuer, which is a standard but necessary component for any prepaid card program.

Slide 13: Revenue and Growth Model

This slide presents a detailed spreadsheet of projections from 2017 through 2021. For the Next CALA product, they project starting with 50,000 accounts in month one. The model breaks down unit economics:

New account fee: $3.95 · Monthly maintenance fee: $3.95 · Card reload fee: $1.00 · Cost to manufacture card: $1.45 · Support cost per account: $0.75

The 'Revenue - Others' section shows Tel3 starting at $200,000 monthly with a 75% carrier cost, indicating a 25% gross margin on their telecom services.

Slide 16: Stock Ownership

Transparency regarding the cap table is provided here. Arik Maimon (29.46%) and Huseyin Kizanliki (20.39%) are the primary holders. The presence of 'CEDE&CO' at 17.90% represents the aggregate of shares held in 'street name' by brokers for retail and institutional clients. The asterisk indicates that management shares are restricted, a common tactic to reassure investors that the founders won't immediately dump shares on the open market.

Slides 19 & 22: Management and Board

The deck highlights two specific board members to build trust: Adiv Baruch (Slide 19): His bio emphasizes his role with Jerusalem Technology Investments and his experience with NASDAQ-traded companies like BOS. Les Paul (Slide 22): His bio is extensive, focusing on his 22-year tenure at Macy's (eventually becoming CEO of Macy's Midwest) and his role as CEO of Montgomery Ward. This retail pedigree is intended to validate the company's strategy in the consumer prepaid space.

Slide 25: Contact Information

The final slide provides the corporate address in Miami and directs investor inquiries to RedChip Companies, an investor relations firm specializing in micro-cap and small-cap stocks. This reinforces the deck's purpose as a tool for public market engagement rather than a private VC pitch.

What NXGH Does Well

The deck is exceptionally transparent regarding its capital structure and unit economics. For a micro-cap company, providing a clear breakdown of shares outstanding, float, and inside ownership is essential for building investor confidence. The inclusion of specific fees and costs for their flagship product (Slide 13) allows potential investors to model the business themselves. Furthermore, the emphasis on established partners like InComm and The Bancorp Bank mitigates the 'startup risk' by showing that the underlying infrastructure is handled by multi-billion dollar entities.

What is Missing from the Deck

The most glaring omission is a cohesive 'Problem' slide. While the products target the unbanked and international callers, the deck never explicitly defines the pain points these users face or why NXGH’s solution is superior to incumbents like Western Union or Netspend. Additionally, there is no competitive analysis. The prepaid card and MVNO markets were highly saturated in 2017, yet the deck acts as if NXGH is operating in a vacuum. Finally, the 'NXT GN' telepresence product is never explained in the context of the broader business; it feels like a legacy asset that distracts from the fintech narrative.

Founder Takeaways: Lessons from the NXGH Deck

1. Detail your unit economics: If you are in a high-volume, low-margin business like prepaid cards, follow NXGH's lead on Slide 13. Showing exactly how much you make per transaction versus your costs (manufacturing, support, rewards) is the best way to prove the viability of your model. 2. Leverage 'Borrowed Credibility': If your startup relies on larger platforms, highlight them. NXGH effectively uses the logos of Sprint, InComm, and Visa to show that they have the 'plumbing' required to scale. 3. Be clear about debt: For companies with existing liabilities, being upfront about convertible notes and the plan to retire them (as seen on Slide 4) is better than letting an investor find them in the fine print later. It shows proactive financial management.

Frequently asked questions

What is the primary revenue driver for NXGH according to the deck?: The primary revenue driver at the time of the presentation was the acquisition of Tel3, a prepaid international calling card service, which added $3.1M in annual revenue. Additionally, the deck highlights the Next CALA mobile banking product as a 'flagship' offering, projecting significant growth in account fees, maintenance fees, and reload fees starting in 2017.
How does NXGH handle its banking and payment infrastructure?: NXGH does not operate as a bank itself. Instead, it leverages strategic partnerships. Slide 10 notes that InComm provides the Money Transmitter Licenses (MTL) in all 50 states and facilitates 'Cash-To-Plastic' transactions at 210,000 locations. The Bancorp Bank is specifically named as the issuer for the Visa Prepaid Cards used in the Next CALA program.
What is the 'NXT GN' product mentioned in the deck?: NXT GN is described on Slide 7 as a high-definition telepresence platform for mobile phones. It was developed in 2012 and offers point-to-multipoint connectivity. It is available on both Android and iOS. Unlike the other fintech and telecom products, this appears to be a legacy software asset rather than a primary retail service.
What is the ownership structure of the company?: The company has a high concentration of inside ownership at 67.7%. The largest individual shareholder is Arik Maimon with 29.46%, followed by Huseyin Kizanliki at 20.39%. A significant portion of the shares (17.90%) is held by CEDE & CO, which typically represents shares held in brokerage accounts for various investors (Slide 16).
What are the projected unit economics for the Next CALA card?: According to Slide 13, the company charges a $3.95 new account fee and a $3.95 monthly maintenance fee. The cost to manufacture the card is $1.45, and customer support is estimated at $0.75 per account. They also earn a $1.00 fee per reload, though they offset some costs with rewards program expenses ($1.00 for opening, $0.50 for reloads).