ITEM
1. DESCRIPTION OF BUSINESS
Bold
Energy Inc. (“Bold Energy”, “we”, the “Company”) was incorporated in the State of Nevada as
a for-profit company on June 27, 2008 and established a fiscal year end of July 31. We are a development stage company that intends
to develop a wide range loyalty program based on “Global Club points” awarded for all purchases made in associated
establishments. These points will be exchangeable for products, trips or discounts. We intend to partner with various retailers,
so that the cardholders will be able to collect points on their everyday expenses, such as in grocery shops, gas stations, restaurants,
electronic stores, travel agencies, etc.
Our
strategy is to recruit a large number of retail outlets as participating Global Club partners. We plan to do this by having our
sales representatives negotiate membership deals with many large retail outlets and chains across North America. We also plan
to advertise Global Club to retail outlets in various trade magazines as part of our sales campaign. Our planned website will
also play a central role in recruiting customers.
General
Overview
Global
Club is a new concept of a traditional loyalty program. The concept is simple: on every purchase it will be awarded points to
be printed on a card. These points can be exchanged for products, such as video-games, gift cards, trips, etc., according to the
number of points on the card: more points, better prize. We intend to have a wide variety of partners so that the cardholders
will be able to collect points on their everyday expenses from a broad selection of retailers, such as grocery shops, gas stations,
restaurants, electronic stores, travel agencies, etc.
We
intend to begin initial operations by purchasing a limited number of samples of the RW Terminal and PET cards in order to develop
and test our system. Once we obtain these samples, we plan to hire hi-tech consultants to develop the software to run the systems.
Once our system is operational, we expect to start our marketing efforts. We will then develop our website, www.globalclubloyalty.com,
and contact possible partners.
PET
Card
An
important part of the program will be a recyclable PET card that is similar in size to a debit/credit PVC card, but thinner (0.22mm).
The card will be color printed by applying special UV (ultra-violet) inks in thin (less than 0.04 mm) coats with our logo and
a serial number on the face and product information on the obverse side. The obverse side of the card will also contain a magnetic
layer upon which the information (data) about the customer, including his accumulated points will be recorded by a specialized
device, called the “Readwriter Terminal.” The points will be printed thermally in a way that the magnetic reader head
of the terminal will read the information recorded on it. In addition, we could also use face side of card for advertising and
product promotions.
The
estimated cost price is US$0.80 per unit.
Read
Writer Terminal – RWT
We
intend to import this equipment from a specialized company from Japan. We expect that this company will be able to manufacture
this equipment according to our design specifications. We expect to install terminals in each venue that is a part of the Global
Club. The terminal is the technology that we expect to use as a means to recognize each card and print the points on it after
each of the cardholder’s transactions.
At
the present time, we have not made any arrangements to raise additional cash. We will need additional cash, but if we are unable
to raise the necessary level of funding, we will either have to suspend marketing operations until we do raise the cash necessary
to continue our business plan or we will have to cease operations entirely.
If
we are unable to complete any phase of our business plan or marketing efforts because we do not have enough funding, we will cease
our development and/or marketing activities until we raise enough funds to continue. If we fail in any phase of our business plan,
it would become more difficult to raise capital because such failures discourage additional investment. As a consequence, if we
cannot secure additional funding, we will have to cease operations and our current investors may lose their entire investment.
Plan
of Operation
We
plan to begin initial operations by purchasing a limited number of samples of the RW Terminal from a Japanese company that specializes
in the manufacture of this product. We also plan to obtain a limited number of PET cards as well. Once we are able to secure samples
of the RW Terminal and the PET cards, we expect to be able to begin developing and testing our system. We expect to complete this
stage after we are able to raise enough capital to implement our plan of operations.
After
acquiring the RW Terminals and PET cards, we plan to hire hi-tech consultants to develop the software to run the systems. We intend
to use the terminals and cards acquired prior to this stage to test the system and make any necessary adjustments to the software
so that it runs to our specifications.
Once
our system is operational, we expect to begin our marketing efforts. We will develop our website, www.globalclubloyalty.com, and
contact malls, grocery stores, gas stations and other retailers to be our partners. We intend to be fully operational once we
are able to raise enough capital to implement our plan of operations.
We
plan on charging a monthly rental fee that will include the maintenance of the equipment. The Company also plans to generate revenue
by charging approximately US$0.01 for each issued point and by selling advertisement space on the cards. The consumer will not
pay bear any additional costs for the points because these costs will be already included in the final price of the product. In
addition, we may also sell specially designed PET cards as collector’s items.
Management
does not plan to hire additional employees at this time. Our President will be responsible for the initial product sourcing. Initially,
we intend to hire sales representatives on a commission-only basis to in order to minimize administrative and labor costs overhead.
We plan to use third party web designers to build and maintain our website.
We
do not expect to be purchasing or selling plant or any significant equipment during the next twelve months.
Research
and Development
We
have not spent any money on research and development activities during the year ended July 31, 2012. We anticipate that we will
not incur any expenses on research and development over the next 12 months. Our planned expenditures on our operations or business
combination are summarized under the section of this annual report entitled “Management’s Discussion and Analysis
of Financial Position and Results of Operations.”
Recent
Developments
The
Company has evaluated its developments over the fiscal year and has determined that there are no events to disclose because we
have not had any significant business developments since the date of our last annual report.
Employees
and Employment Agreements
At
present, we do not have any employees other than our officer and director, Eden Clark and our Secretary, Patrick De Blois. Ms.
Clark currently devotes approximately 10 to15 hours a week to our business. Mr. DeBlois currently devotes approximately 5 hours
a week to our business. We presently do not have pension, health, annuity, insurance, stock options, profit sharing or similar
benefit plans; however, we may adopt such plans in the future. There are presently no personal benefits available to any officers,
directors or employees.