Executive Summary / Key Takeaways

• Strategic Pivot to High-Growth Fintech: BlueOne Card, Inc. (BCRD) has undergone a profound transformation, shifting from legacy prepaid card management to a global provider of advanced payment infrastructure solutions for banks and fintechs, driven by the pivotal acquisition of Millennium EBS.
• Differentiated Technology & Market Opportunity: The Millennium EBS Payment Hub and the upcoming BlueOne Pay stablecoin remittance platform offer agile, compliant solutions for critical industry trends like ISO 20022 migration and digital remittances, tapping into a multi-billion dollar market.
• Early Financial Turnaround, Significant Headwinds: The new business model delivered a positive gross profit of $78,197 in FY2025, a stark improvement from a prior gross loss. However, the company faces substantial liquidity challenges, including a $1.70 million working capital deficit and a "going concern" warning.
• Strategic Partnerships Validate Vision: Key alliances with Abeam Consulting and ongoing discussions with a Fortune 500 company, alongside an active engagement in Nepal, underscore the market's demand for BCRD's solutions and its global expansion ambitions.
• High Risk, High Reward Profile: While BCRD's innovative technology and strategic positioning address significant market needs, its early-stage financial health, dependence on key personnel, and regulatory complexities present considerable risks for investors.

A Phoenix Rising: BlueOne Card's Bold Leap into Digital Payments

BlueOne Card, Inc. (BCRD) is in the midst of a dramatic strategic metamorphosis, shedding its historical skin as a diversified, often experimental, entity to emerge as a focused financial technology company. Incorporated in 2007, the company's journey began in domestic home furnishings, then veered into gold mining and general construction, before settling on prepaid card program management. This varied past, marked by corporate restructurings and reverse stock splits, underscores a foundational adaptability that now defines its ambitious pivot.

The pivotal moment arrived with the acquisition of Millennium EBS Inc. (Millennium) in December 2024. This move fundamentally reshaped BCRD's business model, expanding its total addressable market and shifting its primary focus to the high-growth business-to-business (B2B) sector within traditional banking, payments, and the broader fintech landscape. BCRD is now dedicated to empowering financial organizations worldwide to modernize their payment systems, accelerate innovation, and meet complex regulatory requirements with its agile, scalable, and compliant technology platforms.

The Technological Edge: Powering the Future of Payments

BCRD's core investment thesis is deeply rooted in its differentiated technology, primarily through the Millennium EBS Payment Hub and the forthcoming BlueOne Pay platform. These offerings are strategically designed to capitalize on powerful, non-discretionary shifts in the global financial services industry.

The Millennium EBS Payment Hub is an advanced payment orchestration and modernization platform. It streamlines and manages financial transactions across various channels, including Swift, RTGS, ACH, FedNow, and Fedwire. This centralized solution allows banks and financial institutions to consolidate diverse payment types through a single, integrated hub, significantly reducing operational complexity and lowering costs. A critical benefit is its role as an ISO 20022 Transformer, accelerating institutions' mandatory transition to the new, data-rich messaging standard. This not only helps meet compliance deadlines but also unlocks the value of enriched data for enhanced analytics and services. The platform's estimated useful life for amortization is 10 years, indicating a long-term asset.

Complementing this, BlueOne Pay is BCRD's innovative Remittance-as-a-Service (RaaS) platform. It enables seamless, low-cost conversion of stablecoin USDT (Tether) into USD, with funds delivered through bank transfers, prepaid cards, or cash pick-up after a one-time KYC verification. This technology offers a cost-effective solution compared to traditional bank wires or SWIFT, particularly for the underserved, freelancers, immigrants, and digital nomads who frequently receive cryptocurrency but lack easy conversion methods. BCRD's strategic focus on managing the foreign exchange (FX) cycle internally for a select group of countries is designed to achieve lower costs than most market players, enhancing its competitive edge in the remittance space. The company plans to rebrand its website to blueonepay.com, signaling its commitment to this digital payment and cryptocurrency focus.

The market opportunity for these technologies is substantial. The global financial industry's mandatory transition to ISO 20022 and the broader modernization of legacy banking systems represent a massive, non-discretionary spending cycle. In remittances, over $150 billion in outbound remittances are sent annually in the U.S., with over 500 million people globally utilizing crypto assets like USDT, which boasts a daily trading volume exceeding $70 billion. The increasing acceptance of U.S. dollar-backed stablecoins, supported by a pro-innovation regulatory environment, further fuels the growth potential for BlueOne Pay.

Competitive Arena: David Against Goliaths

BCRD operates in a highly competitive landscape, facing off against established giants and agile fintech innovators. Its direct competitors include Green Dot Corporation (GDOT), PayPal Holdings (PYPL), Block Inc. (SQ), and Global Payments Inc. (GPN). These companies offer a range of prepaid cards, digital wallets, and payment processing solutions, often with significantly greater scale, brand awareness, and financial resources.

Compared to Green Dot, BCRD's fee-free structure and focus on virtual accounts could offer greater efficiency for cost-conscious consumers, potentially leading to stronger customer loyalty. However, GDOT's extensive retail distribution network provides a significant advantage in customer acquisition. Against PayPal and Block, BCRD's specialized prepaid and stablecoin remittance offerings target specific niches. While PYPL and SQ boast vast user bases, broader digital ecosystems, and faster innovation cycles, BCRD aims to differentiate through its lower-cost remittance model and user-centric benefits. Global Payments, with its enterprise-level solutions and extensive global networks, represents a different scale of competition, where BCRD's agility and niche focus could allow it to capture market share in segments less served by large-scale players.

BCRD's competitive advantages, or "moats," include its no-fee structure for certain services, proprietary branded card technology enabling seamless virtual accounts, and its unique approach to internal FX cycle management for remittances. These factors could lead to improved pricing power, better margins, and enhanced customer loyalty in its target segments. However, its smaller scale and potential technological gaps compared to the rapid innovation of companies like Block pose significant vulnerabilities. The company's strategy to partner with banks and MSBs to leverage their licenses, with a future goal of obtaining its own, reflects a pragmatic approach to overcoming regulatory barriers to entry.

Financial Performance: A Glimmer of Hope Amidst Challenges

The fiscal year ended March 31, 2025, marks a critical inflection point in BCRD's financial trajectory, showcasing the initial impact of its strategic transformation. The company reported revenues of $110,145, a dramatic increase from just $4,000 in the prior year. This growth was entirely driven by the new Fintech and Payment Hub Solutions, with $60,000 from implementation fees and $50,145 from subscription fees. This represents a complete shift from its previous prepaid debit card business, which generated $4,000 in FY2024 but $0 in FY2025.

Crucially, this shift translated into a significant improvement in profitability. BCRD moved from a gross loss of $70,500 in FY2024 (largely due to a $72,900 inventory reserve for prepaid cards) to a gross profit of $78,197 in FY2025, reflecting a gross margin of approximately 71% for its new service lines. This demonstrates the inherent profitability potential of the Millennium EBS platform.

Operating expenses saw a notable reduction of $315,913, primarily due to a $354,913 decrease in advertising and marketing for the legacy prepaid cards and internal-use software costs, and a $61,721 reduction in research and development. This indicates a strategic reallocation of resources post-acquisition. Despite these improvements, the company still incurred a net loss of $1.05 million for the year ended March 31, 2025, a reduction from $1.61 million in the prior year.

Liquidity and the Going Concern Question

Despite the promising operational shift, BCRD faces significant liquidity challenges. As of March 31, 2025, the company reported a working capital deficit of $1.70 million and an accumulated deficit of $4.92 million. Cash and cash equivalents stood at a modest $46,018. The company explicitly states that its "current available cash and cash equivalents are insufficient to satisfy our liquidity requirements."

These factors, combined with a net loss and $317,295 in cash used in operating activities for FY2025, raise "substantial doubt regarding our ability to continue as a going concern operation for a period of 12 months." Management's plan to overcome this involves generating revenues and securing additional equity and debt financing, as well as exploring strategic relationships. The CEO, James Koh, has deferred his salary, and executive compensation will continue to be deferred until the company achieves sufficient funding for operations. The acquisition of Millennium EBS also involved a $500,000 cash consideration, of which $430,000 remained unpaid as of March 31, 2025, with an extended payment date to December 31, 2025.

Strategic Initiatives and Outlook

BCRD's growth strategy is firmly focused on global expansion, targeting banks and financial institutions in North America, Europe, and Asia. Recent developments validate this approach:

• ABeam Consulting Partnership: In June 2025, BCRD's subsidiary Millennium EBS formed a strategic partnership with Abeam Consulting, a global business consulting firm, to leverage their extensive network of banking clients to promote and implement ISO 20022 and Payment Hub solutions.
• Fortune 500 Discussions: Millennium EBS is in discussions for a strategic partnership with a Fortune 500 company serving over 600 financial institutions in more than 140 countries, aiming to expand the global reach of its ISO 20022-compliant Payment Hub platform.
• Nepal Engagement: The company secured an engagement with a large commercial bank in Nepal for ISO 20022 implementation, serving as a critical reference case in the South Asian market, with expectations to attract more banking customers in regions like Sri Lanka, the Middle East, and Africa.

These partnerships and engagements are crucial for validating the technology and driving future revenue. However, the company also experienced a setback with the mutual termination of an authorized reseller agreement with ExpanseFT in February 2025 due to ExpanseFT losing its sponsor bank. While the upfront fee was refunded, this highlights the inherent risks of partner dependency.

The company's outlook hinges on its ability to execute these strategic initiatives and secure the necessary capital. While no specific quantitative guidance for future revenue or profitability has been provided, management anticipates substantial expenditures to carry out its business plan and will rely on further financing.

Risks to the Investment Thesis

Investing in BCRD at this stage carries significant risks, primarily centered around its "going concern" status. The company's ability to secure adequate financing, transition to profitability, and effectively manage its rapid growth are paramount.

• Liquidity and Capital: The most pressing risk is the insufficiency of current cash to meet operational needs and the reliance on future financing, which may not be available on acceptable terms or could dilute existing shareholders.
• Execution Risk: Successfully implementing complex fintech solutions globally and scaling the BlueOne Pay remittance platform requires flawless operational execution, which can be challenging for a company with a small core team (two full-time employees and 8-10 contractors).
• Regulatory Environment: Operating in a highly regulated financial sector, particularly with stablecoins, exposes BCRD to evolving, unclear, and inconsistent laws (e.g., Bank Secrecy Act, PATRIOT Act, data privacy). Non-compliance could lead to significant fines or operational limitations.
• Competition: Larger, more established competitors with greater financial resources and brand recognition pose a constant threat, potentially leading to price competition or market share erosion.
• Key Personnel Dependence: The company is highly dependent on its CEO, James Koh, and CSO, Shinto Matthew. The loss of either could severely impact strategic direction and operational continuity.
• Internal Controls: The identified material weaknesses in internal control over financial reporting (lack of segregation of duties, documentation, and timeliness) present a risk to financial accuracy and investor confidence. The absence of adequate D&O insurance further exacerbates risks related to attracting and retaining talent.

Conclusion

BlueOne Card, Inc. stands at a pivotal juncture, having decisively pivoted from a fragmented past to a focused future in high-growth fintech. The acquisition of Millennium EBS and the development of BlueOne Pay represent a bold, technologically driven strategy to address critical needs in payment infrastructure modernization and digital remittances. The early financial results from this new direction, particularly the shift to a positive gross profit, offer a compelling glimpse into the potential of its differentiated technology.

However, BCRD is undeniably a high-risk, high-reward proposition. Its "going concern" status, coupled with significant liquidity needs and the inherent challenges of scaling in a competitive and highly regulated industry, demand careful consideration. For discerning investors with a high tolerance for risk, BCRD presents an opportunity to invest in a company with a clear vision, validated partnerships, and a technological edge in burgeoning markets. The success of its global expansion, its ability to secure sustained financing, and its adeptness at navigating regulatory complexities will ultimately determine if this fintech metamorphosis culminates in long-term shareholder value.