Bericht für Investoren und Fans von ccFound für das 2. Quartal 2024.

Information: The original report was prepared in Polish. Automatic translations in other languages may contain minor errors. Dear investors and ccFound users! In the second quarter of 2024, 2026 users registered on ccFound, of which 1366 persons confirmed their registration, which is 67%. A total of 802 new users joined the platform based on recommendations from other individuals. Currently, there are 281 courses available on the platform. This is already a significant number of educational resources. So far, we have had 80 trainers join our platform. In the second quarter of 2024, users gained access to 1399 courses, out of which 127 were paid courses. At the moment, the total value of all courses published on ccFound is $15,879 USD (62,880 PLN). There are a total of 133 groups on the platform, of which 29 are paid. Paid groups may be particularly attractive to users seeking more advanced content or connections. We believe that paid communities are the future of education. The market has shifted away from selling knowledge in the form of strictly video recordings, and the trend is towards allowing people to ask questions and stay in constant contact with other individuals who are serious about a specific field of knowledge. The total monthly cost of joining all paid groups on ccFound is currently $1,623 USD (6,427 PLN). The total value of groups with one-time access is $190 USD (752 PLN). The longest offered subscription period is an annual subscription, which costs $20,317 (80,455 PLN) for access to all groups. I would like to remind you that we currently do not advertise the platform as a social medium for ordinary users. We have verified in previous months that acquiring a community in this way simply does not work. We are now focusing on acquiring experts, as I wrote in a mini-report here: https://ccfound.com/pl/articles/12579/co-teraz-robimy-ccfound-szybka-aktualizacja-27-05-2024 MARKETING AND SALES - Insights from Adrian Main assumptions: Raising awareness of what ccFound is before the token launch on the stock exchange. During this period, videos were created on my YouTube channel that explained what the portal is about. Almost 8,000 people watched the videos. https://www.youtube.com/watch?v=je--ueeKhiM https://www.youtube.com/watch?v=z0MrBb9dRH0&t=3s https://www.youtube.com/watch?v=fcUnuh9sIjE&t=358s https://www.youtube.com/watch?v=vENPUzJkS6w&t=44s The next step was to introduce the subscription product "Virtual Real Estate." By June 20, I spent 25,078 PLN on promoting the product - I received 7,072 PLN back. 87 access to Virtual Real Estate was sold for 47 PLN and 13 for 497 PLN (annual access). In total, 100 people purchased the product. Cost per customer acquisition: 250.78 PLN. The cost of customer acquisition was too high, so I changed tactics. A trial subscription was introduced on ccFound. The strategy is now simple. We offer customers 8 marketing courses for 1 PLN as a trial. This way we encourage people to ease into the subscription product. Of course, we lose in customer acquisition, but after 7 days we start earning. From June 20 to July 12, I spent 7,629 PLN on advertising. 50 trial accesses to Virtual Real Estate were sold. Cost per customer acquisition: 152.58 PLN. In total, I spent 32,707 PLN on promotion. The new approach turned out to be much better (the cost of customer acquisition is 98.20 PLN cheaper). In addition, the pace of acquiring new customers has accelerated. Of course, the costs of acquiring customers are still very high, but we are in the testing phase. If we get to a point where we discover which ads sell and what arguments convince customers to subscribe, we will be able to scale the offer. Currently, the program has 151 subscribers, and new materials are added every month. Despite acquiring customers at a loss (in the initial phase), we will keep an eye on two things: my clients, whom I teach, will start selling their courses and attracting users to the platform, I will start earning from subscription renewals and will be able to reinvest those funds in acquiring new customers again. Assuming that current customers will subscribe for an average of 5 months (151 x 47 PLN) x 5 = 35,485 PLN - giving us a full return on our investment to date. Plans for the coming weeks. Create a knowledge base in the form of a challenge for ccFound. Every new ccFound user will be able to go through a several-day challenge, where I will teach them how to earn on the platform. Materials will be free. When the platform is able to accept payments in Polish zlotys, I will update my current courses. I will teach current and new customers how to sell using ccFound (up to now, I taught them how to sell on Wordpress with plugins or directed them to our platform's competition). Now, we want to capture customers from the market because we have an irresistible offer, and ccFound will have full functionality and a clear vision. [End of Adrian's section] PLATFORM AND TOKEN We have launched additional translations into Swedish and Vietnamese. At the moment, we will not be adding more languages, as we have other priorities, such as adding the Polish zloty as the settlement currency. We will allow the existing languages to work - there are already plenty - and we want to stabilize the results on Google search, as the added translations look unusual for the search engine. As you can see, we are dynamically changing our priorities. We are now focusing on enabling experts to increase their conversions, and for local customers, such as those from Poland, support for the local currency is crucial. We have optimized the views for non-logged-in users (new homepage) and for logged-in users - the client panel is displayed by default, and when navigating to the wall, we have removed all distracting elements. We are moving towards minimalism and analyzing the user's path so they know exactly what they can do on this platform. Additionally, on the wall, each user has the "Subscribed Only" filter enabled by default, so they do not see content or groups that do not interest them. The filter can be turned off at any time by expanding the filters tab on the homepage - or in the profile settings. We have added a "trial" feature to paid groups. Now, authors can set access to the product at a lower price for a specified time, e.g., 7 PLN for a week of trial access. After that time, the full amount for the product will be charged. Initial tests have shown that this may be the primary way to sell groups to new individuals by experts. We have refined and optimized the automatic billing system for experts and their clients. Invoices are sent to the email address and can be downloaded from the transaction history on the platform. We have improved the UX of writing and adding comments so that it does not cause problems for users. We have achieved the first goal in Google search - 500 clicks per day. Currently, we have 400-500 clicks daily. We have launched the mechanism for releasing locked investor tokens. Tokens will be released proportionally daily until August 17. We have distributed rewards for staking $FOUND. In May, 1,406,647 tokens were distributed, and in June, 320,796 tokens were distributed. The total number of staked tokens is 137,935,744 and continues to grow. We have also decided that ccFOUND will allocate an additional one million $FOUND for staking rewards proportionally over the next three months. Staking tokens is very simple, and we do it on the website https://ccfound.com/pl/secured-area/wallet/stake We have provided an additional option for earning tokens by adding liquidity on PancakeSwap and staking Cake-LP tokens on the platform. $500 in FOUND tokens (from the company's budget) will be allocated for rewards daily for 100 days. The promotion ends on August 2, 2024. Adding liquidity is a bit more complicated. Here is a short guide for advanced users: https://ccfound.com/pl/articles/12381/zwieksz-swoje-zarobki-dzieki-pancakeswap-i-ccfound A much more detailed step-by-step guide that I wrote can be found here: https://ccfound.com/pl/articles/11900/jak-dodac-plynnosc-do-pary-walutowej-tokena-found-i-zarabiac-na-tym FINANCES Currently, the company has savings of 2,370,000 PLN (approximately 598,000 USD). These funds should be sufficient to maintain the project until September 2025, but we are still waiting for a refund from the Tax Office (of up to 1,366,000 PLN, around 333,000 USD). A risk factor is whether and when these funds will be recovered. We are still awaiting the refund of VAT for approximately 903,639 PLN for the years 2022 and 2023, which led to an audit by the Customs and Revenue Office. The audit should be completed in the next quarter. At the same time, a breakthrough occurred in the nearly 3-year dispute with the Tax Office in one of our companies - ccFOUND Sp. z o.o. In September 2021, the Wrocław-Śródmieście Tax Office initiated an audit to determine the correctness of settlements with the state budget regarding CIT tax. Contrary to our interpretation from the National Chamber of Fiscal Control, the Tax Office classified the FOUND tokens as virtual currency. Subsequently, the Tax Office demanded a CIT tax payment of almost 400,000.00 PLN, along with interest - similar to tax arrears with the condition of "immediate enforceability." This meant that before the decision was delivered to us, the Tax Office initiated a bailiff's proceedings without informing us that there was any amount to pay. The payment amount also included the revenues of the limited partnership, which until 2020 were jointly settled with the Limited Liability Company. Due to our quick reaction, we managed to avoid the consequences and simply paid the determined tax. We filed a complaint with the Director of the Tax Administration Chamber, who partially repealed the decision of the Tax Office (regarding the limited partnership) but maintained the classification of tokens as virtual currency against all logic. The arguments of the Tax Office and the DIAS were based on the following assumptions: "The token's name implies that the asset is inherently a cryptocurrency and therefore virtual currency." However, the use of a smart contract and creating an electronic record do not automatically transform the asset into a cryptocurrency. "The tax interpretation for the limited partnership does not extend to the operations of the LLC." However, we had interpretations for both companies, and furthermore, it is the same personally and capital-related entity. "The law indicates that virtual currency comprises assets directly exchangeable for traditional currencies." The DIAS argued that the mere fact that the token can be exchanged for anything makes it a virtual currency. This argument made little sense, as it roughly meant that apples and cars also fall into the category of virtual currency. On June 25, 2024, after almost 3 years of battle, the Provincial Administrative Court revoked the DIAS decision and the preceding decision, and awarded costs of legal representation to ccFOUND in the amount of 6,917 PLN. As part of the oral motifs, it was indicated (quote): Searching for "tokens" in Google results in materials, including from tax authorities, about the need to differentiate between crypto assets and cryptocurrencies. Not every token is a cryptocurrency, as in this case. We cannot accept the DIAS position that tax interpretations cannot be applied to an LLC. This is the same project. The feature of exchangeability cannot be understood in the way DIAS did. Everything is exchangeable - cars, things. Everything can be given some measurable value. CCFOUND tokens do not meet the definition of virtual currencies. In the near future, we are awaiting the next procedure to reclaim overpaid CIT tax and improperly paid interest. The absurdity level in communication with the Tax Office and the lack of understanding for the project and our assumptions were so high that we were often at our wits' end. However, it is good to know that common sense and logic have a chance to prevail, and it is worthwhile to take advantage of the appeal opportunities provided by Polish law. We are currently waiting for information on whether the Tax Office will appeal to the Supreme Administrative Court. At the same time, an audit is also underway in the limited partnership conducted by the same team. We fear a similar course of events, despite officials being aware of the mistakes made. Last week, we received a decision to block over 325,000.00 PLN in our bank account. The team conducting the audit is persistent and wants to issue another decision classifying the token as virtual currency, even though this decision was overturned by the DIAS and NSA for our second company and further confirmed by the National Chamber of Fiscal Control. From our perspective, this is clearly ill will on the part of the officials, and we intend to take action against them by filing a complaint with the National Chamber of Fiscal Control, reporting the undue harassment of taxpayers to the prosecutor's office, and publicizing the matter in the media.