As
filed with the Securities and Exchange Commission on November 27, 2023
Registration
No. 333-275724
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1
TO
FORM S-3
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
CUENTAS INC.
(Exact name of registrant as specified in its charter)
Florida |
|
20-3537265 |
(State or Other Jurisdiction of
Incorporation or Organization) |
|
(I.R.S. Employer
Identification No.) |
235 Lincoln Rd., Suite 210
Miami Beach, Florida 33139
(800) 611-3622
(Address, including zip code, and telephone number,
including area code,
of registrant’s principal executive offices)
Shalom Arik Maimon
Chief Executive Officer
235 Lincoln Rd., Suite 210
Miami Beach, Florida 33139
(800) 611-3622
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
With copies to:
Barry I. Grossman, Esq.
David Selengut, Esq.
Matthew Bernstein, Esq.
Ellenoff Grossman & Schole LLP
1345 Avenue of the Americas
New York, New York 10105
Phone: (212) 370-1300
Fax: (212) 370-7889
Approximate date of commencement of proposed sale
to the public: As soon as practicable after the effective date of this Registration Statement.
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large
accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
☐ |
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Accelerated filer |
☐ |
Non-accelerated filer |
☒ |
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Smaller reporting company |
☒ |
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Emerging growth company |
☐ |
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided to Section 7(a)(2)(B) of the Securities Act. ☐
________
The Registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities
Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission
acting pursuant to said Section 8(a), may determine.
The information in this
prospectus is not complete and may be changed. The selling shareholder named herein may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and
is not soliciting an offer to buy these securities in any state or other jurisdiction where the offer or sale is not permitted.
PRELIMINARY PROSPECTUS |
SUBJECT
TO COMPLETION, |
DATED
NOVEMBER 27, 2023 |
![](https://www.sec.gov/Archives/edgar/data/1424657/000121390023090246/image_001.jpg)
CUENTAS INC.
1,275,747 Shares of Common Stock
Offered by the Selling Shareholders
This prospectus relates
to the resale of up to 1,275,747 shares of common stock, par value $0.001 per share, of Cuentas Inc. (“we,” “us,”
“our,” “Cuentas” or the “Company”), consisting of (i) up to 1,232,606 shares issuable upon exercise
of a warrant (the “Inducement Warrant”) to purchase shares of common stock at an exercise price of $3.30 per share issued
by us to an institutional investor named herein as a selling shareholder on August 24, 2023 as an inducement to the exercise at a reduced
exercise price of $3.30 per share of outstanding warrants to purchase a total of 616,303 shares of the Company’s common stock (the
“Existing Warrants”), and (ii) up to 43,141 shares of common stock issuable upon exercise of warrants (the “August
2023 PA Warrants”) issued to the designees of H.C. Wainwright & Co. LLC (“Wainwright”), placement agent for the
issuance of the Inducement Warrant, named herein as selling shareholders. The Existing Warrants included warrants to purchase 324,928
shares of common stock issued on August 8, 2022 having an initial exercise price of $7.67 per share and warrants to purchase 291,375
shares of common stock issued on February 8, 2023 having an initial exercise price of $17.16 per share.
This registration does not
mean that the selling shareholders will actually offer or sell any of these shares. We will not receive any proceeds from the resale of
any of the shares of common stock being registered hereby sold by the selling shareholders. However, we may receive proceeds from the
exercise of the Inducement Warrant and the August 2023 PA Warrants held by the selling shareholders.
Our common stock is listed on The NASDAQ Capital Market under the symbol
“CUEN.” We also have a class of warrants that are listed on The NASDAQ Capital Market under the symbol “CUENW.”
The last reported sale prices of our common stock and listed warrants on The NASDAQ Capital Market on November 21, 2023 were $1.55 per
share and $0.039 per warrant.
Following the effectiveness
of the registration statement of which this prospectus forms a part, the sale and distribution of securities offered hereby may be effected
from time to time in one or more transactions that may take place on Nasdaq (or such other market or quotation system on which our common
stock is then listed or quoted), including ordinary brokers’ transactions, privately negotiated transactions or through sales to
one or more dealers for resale of such securities as principals, at market prices prevailing at the time of sale, at prices related to
such prevailing market prices or at negotiated prices. Usual and customary or specifically negotiated brokerage fees or commissions may
be paid by the selling shareholders. The selling shareholders and intermediaries through whom such securities are sold may be deemed “underwriters”
within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), with respect to the securities offered
hereby, and any profits realized or commissions received may be deemed underwriting compensation.
This prospectus describes
the general manner in which shares of common stock may be offered and sold by any selling shareholders. When the selling shareholders
sell shares of common stock under this prospectus, we may, if necessary and required by law, provide a prospectus supplement that will
contain specific information about the terms of that offering. Any prospectus supplement may also add to, update, modify or replace information
contained in this prospectus. We urge you to read carefully this prospectus, any prospectus supplement and any documents we incorporate
by reference into this prospectus before you make your investment decision.
All share and per share information
in this prospectus gives effect to a 1-for-13 reverse stock split effected on March 24, 2023.
Investing in our
common stock is highly speculative and involves a significant degree of risk. See “Risk Factors” beginning on
page 6 of this prospectus and in the documents incorporated by reference in this prospectus for a discussion of information that
should be considered before making a decision to purchase our common stock.
Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is , 2023
TABLE OF CONTENTS
Please read this prospectus
carefully. It describes our business, our financial condition and our results of operations. We have prepared this prospectus so that
you will have the information necessary to make an informed investment decision. You should rely only on the information contained in
this prospectus. We have not authorized anyone to provide you with any information or to make any representations about us, the securities
being offered pursuant to this prospectus or any other matter discussed in this prospectus, other than the information and representations
contained in this prospectus. If any other information or representation is given or made, such information or representation may not
be relied upon as having been authorized by us.
The information contained
in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any
sale of our common stock. Neither the delivery of this prospectus nor any distribution of securities in accordance with this prospectus
shall, under any circumstances, imply that there has been no change in our affairs since the date of this prospectus. This prospectus
will be updated and made available for delivery to the extent required by the federal securities laws.
We further note that the representations,
warranties and covenants made by us in any document that is filed as an exhibit to the registration statement of which this prospectus
is a part were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk
among the parties to such agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations,
warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and covenants should
not be relied on as accurately representing the current state of our affairs.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This prospectus and the documents
incorporated herein by reference contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include information concerning our future results of operations and financial position, strategy and
plans, and our expectations for future operations. Forward-looking statements include all statements that are not historical facts and,
in some cases, can be identified by terms such as “anticipate,” “believe,” “continue,” “could,”
“design,” “estimate,” “expect,” “intend,” “may,” “plan,” “possible,”
“potential,” “predict,” “project,” “seek,” “should,” “target,”
“will,” “would” or the negative version of these words and similar expressions.
Forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be
materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including
those described in “Risk Factors” included elsewhere in this prospectus and in the documents that are incorporated
by reference herein. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking
statements represent our beliefs and assumptions only as of the date of this prospectus, or, in the case of any document incorporated
by reference herein in this prospectus, as of the date of such document. In light of the significant uncertainties in these forward-looking
statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our
objectives and plans in any specified time frame, or at all. You should read this prospectus and the documents incorporated by reference
herein completely and with the understanding that our actual future results may be materially different from what we expect.
These forward-looking statements include, but are
not limited to, statements concerning the following:
| ● | our
ability to implement our business plan, including equity investments in real estate projects in Florida in which we have limited experience
and the risks relating to those type of investments; |
| ● | our
ability to attract key personnel; |
| ● | our
ability to operate profitably; |
| ● | our
ability to efficiently and effectively finance our operations; |
| ● | our
ability to raise additional financing for working capital; |
| ● | our
ability to efficiently manage our operations; |
| ● | that
our accounting policies and methods may require management to make estimates about matters that are inherently uncertain; |
| ● | changes
in the legal, regulatory and legislative environments in the markets in which we operate; and |
| ● | adverse
state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to
existing operations; |
| ● | our
ability to upgrade the Cuentas Mobile App and digital distribution system and make it completely functionable; and |
| ● | our ability to maintain our listing on NASDAQ. |
These statements are only
predictions and involve known and unknown risks, uncertainties and other factors, including the risks outlined under “Risk Factors”
or elsewhere in this prospectus, which may cause our or our industry’s actual results, levels of activity, performance or achievements
expressed or implied by these forward-looking statements. Moreover, we operate in a highly regulated, very competitive, and rapidly changing
environment. New risks emerge from time to time and it is not possible for us to predict all risk factors, nor can we address the impact
of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially
from those contained in any forward-looking statements.
We have based these forward-looking
statements largely on our current expectations about future events and financial trends that we believe may affect our financial condition,
results of operations, business strategy, short term and long term business operations, and financial needs. These forward-looking statements
are subject to certain risks and uncertainties that could cause our actual results to differ materially from those reflected in the forward
looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this
prospectus, and in particular, the risks discussed below and under the heading “Risk Factors” and those discussed in other
documents we file with the SEC. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed
in this prospectus may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking
statement.
You should not place undue
reliance on any forward-looking statement, each of which applies only as of the date of this prospectus. Any forward-looking statement
you read in this prospectus reflects our current views with respect to future events and is subject to these and other risks, uncertainties
and assumptions relating to our operations, operating results, growth strategy and liquidity. We assume no obligation to publicly update
or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new information becomes available in the future, except as otherwise required
by applicable law. You are advised, however, to consult any further disclosures we make on related subjects in our reports on Forms 10-Q,
8-K and 10-K filed with the SEC. You should understand that it is not possible to predict or identify all risk factors. Consequently,
you should not consider any such list to be a complete set of all potential risks or uncertainties.
PROSPECTUS SUMMARY
This summary highlights
selected information contained elsewhere in this prospectus and the documents incorporated by reference herein, including our consolidated
financial statements and related notes. You should carefully consider, among other things, the matters discussed in the sections entitled
“Risk Factors” included in or incorporated by reference in this prospectus. Unless the context requires otherwise,
references in this prospectus to “we,” “us,” “our,” “Cuentas,” “our company,”
or similar terminology refer to Cuentas Inc. All share and per share information in this prospectus gives effect to a 1-for-13 reverse
stock split effected on March 24, 2023.
Overview of Our Business
Our business is mainly focused
on using proprietary technologies to integrate FinTech (Financial Technology), e-finance and e-commerce services into solutions that
deliver mobile financial services, prepaid debit and digital content services to the unbanked, under-banked and underserved populations
nationally in the USA. The Cuentas Platform integrates Cuentas Mobile, the Company’s Telecommunications solution, with its
core financial services offerings to help entire communities enter the modern financial marketplace. Our General Purpose Reloadable (GPR)
“Debit Card allows customers to purchase prepaid products
and services, including third party digital content, gift cards, remittances, mobile phone topups and other digital services. An agreement
with Interactive Communications International, Inc. (“InComm”) a leading processor of general purpose reloadable (“GPR”)
debit cards, enables us to market and distribute a line of prepaid digital content and gift cards targeted towards the Latin American
market. Cuentas is able to purchase InComm’s prepaid digital content and gift cards at a discount and resell these same products
in real time through its mobile app and through the Cuentas SDI network of over 31,000 bodegas. Cuentas is able to offer these digital
products to the public through its mobile app and the Cuentas SDI distribution network, many at discounted prices, while making a small
profit margin which varies from product to product. The prepaid digital content and gift cards include Amazon Cash, XBox, PlayStation,
Nintendo, Karma Koin, Transit System Loads & Reloads (LA TAP, NY Transit, Grand Rapids, CT GO), Burger King, Cabela’s, Bass
Pro Shops, AT&T, Verizon, Mango Mobile, Black Wireless and other prepaid wireless carriers in the United States.
Since the first quarter of
2023, we have made a number of equity investments in real estate projects in Florida under the name Cuentas Casa. Cuentas Casa partners
with leading edge developers and construction technology companies to create sustainable, inclusive and affordable residential communities
specifically designed to provide high quality housing alternatives at extremely competitive pricing. Our goal is to source land zoned
and ready for development of multi-family buildings in strategic areas where rental prices are increasing dramatically, placing financial
stress and pressure on working class families. Our real estate investments are intended to broaden our reach into the unbanked, underbanked
and underserved communities by using a patented, low cost, sustainable technology that should allow us to provide reasonably priced rental
apartments to working class residents who have been priced out of rental communities due to severe rent hikes in Florida and other areas
in the United States. Cuentas has made investments in affordable housing projects for the development of approximately 1,550 apartments.
We believe that providing affordable apartments to the Hispanic Latino and other immigrant communities in Florida will enable us to introduce
them our fintech solutions and generate revenue.
Our wholly-owned subsidiary,
Meimoun and Mammon, LLC (“M&M”), provides wholesale and retail telecommunications services. Tel 3, a division of our company,
is a retail long distance calling platform which provides prepaid calling cards to consumers directly and operates in a complimentary
space as M&M. We also own 50% of CUENTASMAX LLC, which installs WiFi6 shared network (“WSN”) systems in locations in the
New York metropolitan tristate area using access points and small cells to provide users with access to the WSN.
Recent Developments
Efforts to Upgrade our Technology Platform
and Increase Sales of our Fintech Products and Services Through Cuentas-SDI and Introduction of New Fintech Solutions
In April 2023, CIMA, which
provided maintenance and support services for our technology platform, shut down access to the platform as we were transitioning to a
new, improved platform. During the first quarter of 2023, we reduced product availability to Cuentas-SDI to allow Cuentas-SDI to catch
up on its payments and during the second quarter of 2023 we curtailed all services to Cuentas-SDI and marketing initiatives with Cuentas-SDI
due to its inability to reduce its debt significantly. These disruptions to our fintech solutions and technology business were a major
reason for the decline in revenue between the Q1-Q2 periods in 2022 and 2023.
In May 2023, The OLB Group (NASDAQ: OLB) (“OLB”) terminated
a Software Licensing and Transaction Sharing Agreement with the Company for the purpose of upgrading the Cuentas Mobile App and digital
distribution system. In June 2023, OLB acquired 80.01% of Cuentas-SDI. In July 2023, the Company and Cuentas-SDI settled certain payment
issues and renewed discussions and cooperation to re-open the digital distribution network and systems through Cuentas-SDI’s convenience
store distribution network of over 31,000 locations, including many across the New York, New Jersey and Connecticut tri-state area.
Investments
in Real Estate Developments in Florida
Lakewood Village
On March 7, 2023 the
Company acquired a six percent (6%) equity interest in Lakewood Village from Core Development Holdings Corporation
(“Core”), pursuant to a Membership Interest Purchase Agreement (“MIPA”), in exchange for 295,282 shares of
Common Stock, representing approximately19.99% of the then outstanding shares of Common Stock. Core holds approximately 29.3% of
4280 Lakewood Road Manager, LLC (“Lakewood Manager”), which in turn owns 86.45% of the membership interests in 4280
Lakewood Road, LLC (“4280 Project”), an affordable multi-family real estate project located in Lake Worth, Florida. As a
result of the transaction, the Company acquired $700,000 of equity in the Lakewood Manager. Lakewood Manager, an affiliate of RENCo
USA, Inc. (“Renco”), is constructing the 4280 Lakewood Project with RENCO Structural Building System, a proprietary
composite structural system distributed by Renco. Lakewood Village is the first sustainable rental housing project developed in the
US using a patented MCFR Mineral Composite Fiber Reinforced Construction Technology that has been approved for hurricane-prone areas
as such in Florida. The Lakewood Village project is an affordable multi-family real estate development located in Lake Worth, Palm
Beach County, Florida, consisting of 96 apartments that have two and three bedrooms. An independent appraisal valued the project,
once completed, at approximately $25 million, equating the Company’s equity position at approximately $1.5 million.
Supply Agreement with Renco USA
In March 2023, the Company
entered a 10 year supply agreement with Renco to provide Renco’s patented building materials for new, sustainable rental housing
projects. Renco’s patented MCFR (Mineral Composite Fiber Reinforced) Construction System provides cost efficiency, reduced build
time, and sustainable benefits. Renco’s system is hurricane proof up to Category 5, which is a major benefit for developing housing
projects in the South Florida market and other hurricane prone areas where we are planning to develop projects. Renco’s system is
also earthquake resistant. Renco has the exclusive rights in the USA to the patented building process. The Renco Wall, Floor and Roofing
System is a unique MCFR Building System that creates interlocking, fiber reinforced, composite building blocks and other construction
related products that can be connected in an almost limitless variety of designs. Renco’s system can be used to create homes, apartment
buildings, hotels, office buildings, warehouses, infrastructure products and more.
Operating Agreement with Brookville Development
Partners, LLC
On April 13, 2023, the Company
entered into an Operating Agreement to be a majority member in Brooksville Development Partners, LLC (“Brooksville”) with
two minority members for the purpose of acquiring land for the development of a residential apartment community consisting of approximately
360 apartments. All real and personal property owned by Brooksville will be owned by Brooksville as an entity. One of the minority members
will be the manager of the project.
On April 28, 2023, the Company
and minority partners in Brooksville closed on the transaction to acquire a 21.8 acre site for development of the Brooksville project.
The Company deposited as an initial capital contribution $2,000,000 into a title insurance escrow account which was released from escrow
by the Title Agent to fund the balance of the purchase price of the vacant land, together with a $3.05 million bank loan from Republic
Bank of Chicago. Brooksville owns the vacant land, free and clear of any liens, claims and encumbrances with the sole exception being
the Republic Bank loan. The Company is currently a 63% interest holder in Brooksville but that may change in the future if the Company
is not able to raise sufficient financing to complete the project.
February Offering and Private Placement
On February 8, 2023, the Company
sold to Armistice Capital Master Fund Ltd., an institutional investor, in a registered direct offering (the “Registered Offering”),
an aggregate of (i) 163,344 shares of the Company’s common stock (“Common Stock”) and (ii) pre-funded warrants to purchase
up to 128,031 shares of Common Stock (the “Pre-Funded Warrants” and such shares of Common Stock issuable upon exercise of
the Pre-Funded Warrants, the “Pre-Funded Warrant Shares”) pursuant to a Securities Purchase Agreement dated February 6, 2023
(the “Purchase Agreement”). In a concurrent private placement, the Company sold to Armistice Capital Master Fund Ltd. warrants
(the “Purchase Warrants”) to purchase 291,375 shares of Common Stock (the shares of Common Stock issuable upon exercise of
the Purchase Warrants, the “Purchase Warrant Shares”). The combined purchase price per Share and Purchase Warrant was $17.16
and the combined purchase price per Pre-Funded Warrant and Purchase Warrant was $17.16.
The Pre-Funded Warrants were
sold, in lieu of shares of Common Stock, to any investor whose purchase of shares of Common Stock in the Registered Offering would otherwise
result in such investor, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at such investor’s
option upon issuance, 9.99%) of the Company’s outstanding Common Stock immediately following the consummation of the Registered
Offering. Each Pre-Funded Warrant represented the right to purchase one share of Common Stock at an exercise price of $0.0001 per share.
Armistice Capital Master Fund Ltd. exercised 67,800 Pre-Funded Warrants on February 8, 2023 and the remaining 60,231 Pre-Funded Warrants
on March 13, 2023.
The Purchase Warrants, which
had an exercise price of $17.16 per share, were exercisable commencing on August 8, 2023 and were to expire on August 6, 2028. On August
24, 2023, the exercise price of the Purchase Warrants was reduced to $3.30 pursuant to the Inducement Letter, described below.
H.C. Wainwright & Co.,
LLC (“Wainwright”) acted as exclusive placement agent for the February Offering pursuant to an engagement agreement between
the Company and Wainwright dated as of December 13, 2022. As compensation for such placement agent services, the Company paid Wainwright
an aggregate cash fee equal to 7.0% of the gross proceeds received by the Company from the offering, plus a management fee equal to 1.0%
of the gross proceeds received by the Company from the offerings, a non-accountable expense of $65,000 and $15,950 for clearing expenses.
The Company also issued to designees of Wainwright warrants to purchase 20,396 shares of Common Stock (the “February 2023 PA Warrants”
and the shares of Common Stock issuable upon exercise of the February 2023 PA Warrants, the “February 2023 PA Warrant Shares”).
The February 2023 PA Warrants, which have an exercise price of $23.17 per share, became exercisable on August 8, 2023 and will expire
on February 6, 2028.
The Purchase Warrant Shares
and the February 2023 PA Warrant Shares were registered for sale by the selling shareholders in a registration statement on Form S-1 filed
on August 1, 2023 and declared effective on August 9, 2023. The net proceeds to the Company from the Registered Offering and concurrent
private placement, after deducting the Placement Agent’s fees and expenses and the Company’s offering expenses, were approximately
$4.3 million.
Inducement Letter for the Exercise of the
Existing Warrants in Consideration for the Issuance of the Inducement Warrant
On August 21, 2023, the Company offered to reduce the exercise price
of warrants to purchase 616,303 shares of Common Stock held by one of the selling shareholders (the “Existing Warrants”),
including warrants to purchase 324,928 shares of Common Stock that initially had an exercise price of $7.67 per share, issued on August
8, 2022, and warrants to purchase 291,375 shares of Common Stock that initially had an exercise price of $17.16 per share, issued on February
8, 2023, to $3.30 per share as an inducement to the exercise of the Existing Warrants, provided the selling shareholder agreed to exercise
for cash the Existing Warrants in consideration for the Company’s agreement to issue a new warrant (the “Inducement Warrant”)
to purchase 1,232,606 shares of Common Stock (the “Warrant Exercise and Inducement Transaction”). On August 24, 2023, the
selling shareholder exercised the Existing Warrants and in consideration for such exercise the Company issued the Inducement Warrant to
the selling shareholder. The Inducement Warrant has an exercise price of $3.30 per share, subject to certain anti-dilution adjustments,
is exercisable for five and a half years commencing on the date shareholders of the Company approve the issuance of the Inducement Warrant
(“Shareholder Approval”) under applicable rules of Nasdaq, or if such Shareholder Approval is not required, commencing on
the date of issuance.
Wainwright acted as the exclusive placement agent in connection with
the Warrant Exercise and Inducement Transaction. The Company paid Wainwright a cash fee of $142,366 (7.0% of the gross proceeds received
from the exercise of the Existing Warrants) as well as a management fee of $20,338 (1.0% of the gross proceeds from the exercise of the
Existing Warrants). In addition, the Company paid Wainwright $65,000 for non-accountable expenses and $15,950 as a closing fee. The Company
also issued to designees of Wainwright warrants (the “August 2023 PA Warrants”) to purchase up to 43,141 shares of Common
Stock which have the same terms as the Inducement Warrant, except for an exercise price equal to $4.455 per share.
The Company will use the net
proceeds from the exercise of the Existing Warrants, and the Inducement Warrant and the August 2023 PA Warrants when exercised, for general
corporate and working capital purposes or for other purposes that the Board of Directors, in its good faith, deems to be in the best interest
of the Company.
Reverse Stock Split
On March 24, 2023, the
Company completed a 1-for-13 reverse stock split of its Common Stock. As a result of the reverse stock split, the following changes
have occurred (i) every thirteen shares of Common Stock have been combined into one share of Common Stock; (ii) the number of
authorized shares of Common Stock was proportionately reduced; (iii) the number of shares of Common Stock underlying each common
stock option or common stock warrant have been proportionately decreased on a 1-for-13 basis, and (iv) the exercise price of each
such outstanding stock option and common warrant has been proportionately increased on a 1-for-13 basis. Accordingly, all option
numbers, share numbers, warrant numbers, share prices, warrant prices, exercise prices and losses per share have been adjusted in
this prospectus, including the consolidated financial statements included herein, on a retroactive basis, to reflect this 1-for-13
reverse stock split. The reverse split was effected to cure a failure to comply with the minimum bid price requirement under Nasdaq
Listing Rule 5550(a)(2) for continued listing.
Corporate Information
We were incorporated in Florida
on September 21, 2005. Our principal executive offices are located at 235 Lincoln Rd., Suite 210, Miami Beach, Florida 33139, and our
telephone number is (800) 611-3622. Our corporate website address is www.cuentas.com. The information contained on or accessible through
our website is not a part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual reference
only.
The Offering
Common Stock Outstanding: |
|
2,730,058 shares |
|
|
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Common Stock Offered by
Selling Shareholders: |
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1,275,747 shares |
|
|
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Common Stock Outstanding
After the Offering: |
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4,005,805 shares (assuming the exercise of the Inducement Warrant and the August 2023 PA Warrants). |
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|
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Use of Proceeds: |
|
We will not receive any proceeds from the sale of the Common Stock by the selling shareholders. We may receive proceeds upon the exercise of the Inducement Warrant or the August 2023 PA Warrants (to the extent the registration statement of which this prospectus is a part is then effective and, if applicable, the “cashless exercise” provision is not utilized by the holder). Any proceeds will be used for general corporate and working capital or for other purposes that the Board of Directors, in its good faith, deems to be in the best interest of the Company. There can be no assurance that the Inducement Warrant or any of the August 2023 PA Warrants will be exercised. See “Use of Proceeds.” |
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Listing of Securities: |
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Our Common Stock is listed on the Nasdaq Capital Market under the symbol “CUEN.” A class of our warrants is listed on the Nasdaq Capital Market under the symbol “CUENW” (the “Public Warrants”). |
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Risk Factors: |
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An investment in our company is highly speculative and involves a significant degree of risk. See “Risk Factors” and other information included in this prospectus for a discussion of factors you should carefully consider before deciding to invest in shares of our securities. |
Risks Associated with Our Business
Our business is subject
to many significant risks, as more fully described in the section entitled “Risk Factors” immediately following this
prospectus summary. You should read and carefully consider these risks, together with the risks set forth under the section entitled
“Risk Factors” and all of the other information in this prospectus, including the financial statements and the related
notes included elsewhere in this prospectus, as well as the documents incorporated by reference into this prospectus, before
deciding whether to invest in our common stock. If any of the risks discussed in or incorporated by reference into this prospectus
actually occur, our business, financial condition or operating results could be materially and adversely affected. In particular,
our risks include, but are not limited to, the following:
| ● | our
ability to implement our business plan relating to our fintech solutions and technology to provide e-banking and e-commerce services
and our recent equity investments in real estate projects in Florida; |
| ● | our
ability to attract key personnel; |
| ● | our
ability to operate profitably; |
| ● | our
ability to efficiently and effectively finance our operations; |
| ● | our
ability to raise additional financing for working capital; |
| ● | our
ability to efficiently manage our operations; |
| ● | that
our accounting policies and methods may require management to make estimates about matters that are inherently uncertain; |
| ● | our
ability to consummate future acquisitions or strategic transactions; |
| ● | changes
in the legal, regulatory and legislative environments in the markets in which we operate; |
| ● | adverse
state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to
existing operations; |
| ● | our
ability to upgrade the Cuentas Mobile App and digital distribution system and make it completely functionable; and |
| ● | Our ability to maintain our listing on NASDAQ. |
RISK FACTORS
Investing
in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below and in
our Registration Statement on Form S-1 (File No. 333-273552) filed on August 1, 2023 and declared effective on August 9, 2023, and the
other documents incorporated into this prospectus in their entirety, together with all of the other information contained in this prospectus
or any document incorporated by reference herein. The risks described in this prospectus or any document incorporated by reference herein
are not the only risks facing us, but those that we consider to be material. There may be other unknown or unpredictable economic, business,
competitive, regulatory or other factors that could have material adverse effects on our future results. Past financial performance
may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future
periods. If any of these risks actually occurs, our business, financial condition, results of operations or cash flow could be adversely
affected, which could cause the trading price of our Common Stock to decline, resulting in a loss of all or part of your investment.
Our failure to
meet the continued listing requirements of Nasdaq could result in a de-listing of our Common Stock.
If
we fail to satisfy the continued listing requirements of Nasdaq, such as the corporate governance, minimum closing bid price or minimum
shareholders’ equity requirements, Nasdaq may take steps to de-list our securities. Such a de-listing would likely have a negative
effect on the price of our Common Stock and would impair your ability to sell or purchase our Common Stock when you wish to do so. In
the event of a de-listing, we would take actions to restore our compliance with Nasdaq’s listing requirements, but we can provide
no assurance that any such action taken by us would allow our Common Stock to become listed again, stabilize the market price or improve
the liquidity of our Common Stock, prevent our Common Stock from dropping below the Nasdaq minimum bid price requirement or prevent future
non-compliance with Nasdaq’s other continued listing requirements. We effected a 1-for 13 reverse stock split of our Common Stock
on March 24, 2023 to bring us in compliance with Nasdaq’s minimum bid price requirements.
On
August 18, 2023, we received a deficiency letter from Nasdaq Regulation stating that based upon our Quarterly Report on Form 10-Q for
the period ended June 30, 2023 which reported shareholders’ equity of $1,471,000, we were not
in compliance with Nasdaq Marketplace Rule 5550(b)(1) which requires us to maintain
shareholders’ equity of not less than $2,500,000 for continued listing on The Nasdaq Capital Market (the “Minimum Shareholders’ Equity Requirement”). Under
Nasdaq Rules the Company had until October 2, 2023 to submit a plan to regain compliance.
On
October 3 2023, the Company received a Staff Determination Letter from Nasdaq Regulation stating that due to the Company’s
failure by October 2, 2023, to submit a plan to regain compliance with Nasdaq Listing Rule 5550(b)(1), the Minimum
Shareholders’ Equity Requirement, the Company would be subject to delisting unless it timely requests a hearing before a
Nasdaq Hearings Panel (the “Panel”). The Company filed a request for a hearing before the Panel which has been scheduled
to be held on December 7, 2023. The hearing request will stay any suspension or delisting action through the hearing and the
expiration of any additional extension granted by the Panel following the hearing. In that regard, pursuant to the Nasdaq Listing
Rules, the Panel has the discretion to grant the Company an extension not to exceed April 1, 2024. Notwithstanding, there can be no
assurance that the Panel will grant the Company an extension or that the Company will ultimately regain compliance with all
applicable requirements for continued listing on The Nasdaq Capital Market.
USE OF PROCEEDS
We will not receive any proceeds
from the sale of the Common Stock by the selling shareholders. We may receive proceeds upon the exercise of the Inducement Warrant and
the 2023 August PA Warrants (to the extent the registration statement of which this prospectus is a part is then effective and, if applicable,
the “cashless exercise” provision is not utilized by the holder). Any proceeds will be used for general corporate and working
capital or for other purposes that the Board of Directors, in its good faith, deems to be in the best interest of the Company. There can
be no assurance that the Inducement Warrant or any of the August 2023 PA Warrants will be exercised.
DIVIDEND POLICY
We have never declared or
paid any cash dividend on our capital stock. We do not anticipate paying any cash dividends in the foreseeable future and we intend to
retain all of our earnings, if any, to finance our growth and operations and to fund the expansion of our business. Payment of any dividends
will be made in the discretion of our Board of Directors, after its taking into account various factors, including our financial condition,
operating results, current and anticipated cash needs and plans for expansion. Any dividends that may be declared or paid on our Common
Stock, must also be paid in the same consideration or manner, as the case may be, on our shares of preferred stock, if any.
DETERMINATION OF OFFERING PRICE
The selling shareholders will
offer Common Stock at the prevailing market prices or privately negotiated prices.
The offering price of our
Common Stock by the selling shareholders does not necessarily bear any relationship to our book value, assets, past operating results,
financial condition or any other established criteria of value. The facts considered in determining the offering price were our financial
condition and prospects, our limited operating history and the general condition of the securities market.
In addition, there is no assurance
that our Common Stock will trade at market prices in excess of the offering price as prices for common stock in any public market will
be determined in the marketplace and may be influenced by many factors, including the depth and liquidity.
SELLING SHAREHOLDERS
The following table sets forth certain information concerning the selling
shareholders and the shares of Common Stock owned by them and offered by them in this prospectus. Except as indicated in the footnotes
to the following table, each of the selling shareholders named in the table has sole voting and investment power with respect to the shares
set forth opposite its name. The percentage of ownership of the selling shareholders in the following table is based upon 2,730,058 shares
of Common Stock outstanding as of November 17, 2023.
The shares of Common Stock
being registered for resale hereby include 1,232,606 shares issuable upon exercise of the Inducement Warrant issued to one of the selling
shareholders on August 24, 2023 in consideration for exercise of outstanding warrants to purchase shares of Common Stock that initially
had an exercise price of $7.67 per share issued on August 8, 2022, and warrants to purchase shares of Common Stock that initially had
an exercise price of $17.16 per share, issued on February 8, 2023 (together, the “Existing Warrants”). On August 24, 2023
the selling shareholder exercised for cash the Existing Warrants to purchase an aggregate of 616,303 shares of Common Stock at a reduced
exercised price of $3.30 per share, in consideration for the Inducement Warrant. We are registering the shares issuable upon exercise
of the Inducement Warrant pursuant to our agreement to do so in the Inducement Letter. We will pay the expenses relating to such registration,
other than brokerage commissions in connection with the sale of those shares by the selling shareholder. In addition, we are registering
for resale the August 2023 PA Warrants to purchase up to 43,141 shares of Common Stock issued to the designees of Wainwright which have
the same terms as the Inducement Warrant, except for an exercise price equal to $4.455 per share.
Except as set forth in this prospectus and except for certain ownership
of our securities, the selling shareholders have not had any material relationship with us within the past three years.
All information with respect to share ownership has been furnished
by the selling shareholders. The Common Stock being offered is being registered to permit secondary trading of the shares and the selling
shareholders may offer all or part of the Common Stock owned by them for resale from time to time. Other than as described in the footnotes
below, the selling shareholders do not have any family relationships with our officers, directors or controlling shareholders.
The term “selling shareholder”
also includes any transferees, pledges, donees, or other successors in interest to the selling shareholder named in the table below. To
our knowledge, subject to applicable community property laws, each person named in the table has sole voting and investment power with
respect to the Common Stock set forth opposite such person’s name. We will file a supplement to this prospectus (or a post-effective
amendment hereto, if necessary) to name successors to any named selling shareholder who is able to use this prospectus to resell the securities
registered hereby.
Name of Selling Shareholder | |
Number of Shares Owned
Prior to Offering(1) | | |
Maximum Number of Shares
to be Sold Pursuant to this Prospectus(1) | | |
Number of Shares Owned
After Offering(2) | | |
Percentage of Shares Owned
After Offering(3) | |
Armistice Capital Master Fund Ltd. (4) | |
| 1,232,606 | | |
| 1,232,606 | | |
| 0 | | |
| -- | |
Michael Vasinkevich (5) | |
| 243,429 | | |
| 40,743 | | |
| 202,686 | | |
| 7.32 | % |
Noam Rubinstein (5) | |
| 119,577 | | |
| 20,012 | | |
| 99,565 | | |
| 3.62 | % |
Craig Schwabe (5) | |
| 12,811 | | |
| 2,144 | | |
| 10,667 | | |
| * | |
Charles Worthman (5) | |
| 3,797 | | |
| 636 | | |
| 3,161 | | |
| * | |
| (1) | Includes shares of
Common Stock known by us to be held by such selling shareholder as of the date of the prospectus
that are issuable upon exercise of warrants, including the Inducement Warrant and the August
2023 PA Warrants that are being registered hereunder, without giving effect to any beneficial
ownership limitations that may exist on such warrants. Assumes shareholder approval for the
exercise of the warrants in accordance with Nasdaq rules is obtained at the Company’s
Annual Meeting of Shareholders scheduled to be held on December 20, 2023. This column does
not include any other securities that a selling shareholder may hold, including any other
warrants that such selling shareholder may hold, that are not applicable to this prospectus. |
| (2) | Assumes the sale of
all shares offered pursuant to this prospectus. The shares owned after the completion of
this offering, issuable upon exercise of warrants previously issued, have been registered
for resale pursuant to registration statements on Form S-3 (File No. 333-267268) declared
effective on September 22, 2022 and Form S-1 (File No. 333-273552) declared effective on
August 7, 2023. |
| (3) | The warrants owned
by each selling shareholder are subject to a 4.99% beneficial ownership limitation, which
limitations prohibits the selling shareholder from exercising any portion of the warrants
if, following such exercise, the selling shareholder’s ownership of our shares of Common
Stock would exceed the applicable ownership limitation. |
| (4) | The securities to
be sold pursuant to this prospectus consist of 1,232,606 Warrant Shares, all of which are
directly held by Armistice Capital Master Fund Ltd. (the “Master Fund”), a Cayman
Islands exempted company, and may be deemed to be indirectly beneficially owned by Armistice
Capital, LLC (“Armistice”), as the investment manager of the Master Fund; and
(ii) Steven Boyd, as the Managing Member of Armistice Capital. Armistice and Steven
Boyd disclaim beneficial ownership of the reported securities except to the extent of their
respective pecuniary interest therein. The Inducement Warrant is subject to a
4.99% beneficial ownership limitation, which limitations prohibit the Master Fund from exercising
any portion of the Inducement Warrant if, following such exercise, the Master Fund’s
ownership of our shares of Common Stock would exceed the beneficial ownership limitation.
The address of the Master Fund is c/o Armistice Capital, LLC, 510 Madison Avenue, Seventh
Floor, New York, NY 10022. |
| (5) | The selling shareholder
is affiliated with H.C. Wainwright & Co., LLC, a registered broker dealer, and has a
registered address of c/o H.C. Wainwright & Co., LLC, 430 Park Ave, 3rd Floor,
New York, NY 10022. H.C. Wainwright & Co., LLC acted as placement agent in the Warrant
Exercise and Inducement Transaction and earned the August 2023 PA Warrants as part of its
compensation related to the Private Placement. The selling shareholder acquired the August
2023 PA Warrant in the ordinary course of business and, at the time the PA Warrant was acquired,
the selling shareholder had no agreements or understanding, directly or indirectly with any
person to distribute securities. |
PLAN OF DISTRIBUTION
We are registering the shares
issuable upon exercise of the Inducement Warrant and the August 2023 PA Warrants to permit the resale of these shares of Common Stock
by the holders thereof (and such holders’ successors and assigns) from time to time after the date of this prospectus. We will not
receive any of the proceeds from the sale by the selling shareholders of the shares of Common Stock. We will bear all fees and expenses
incident to our obligation to register the shares of Common Stock.
The selling shareholders may
sell all or a portion of the shares of Common Stock owned by them and offered hereby from time to time directly or through one or more
underwriters, broker-dealers or agents. If the shares of Common Stock are sold through underwriters or broker-dealers, the selling shareholders
will be responsible for underwriting discounts or commissions or agent’s commissions. The shares of Common Stock may be sold in
one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time
of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions,
|
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on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale; |
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in the over-the-counter market; |
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|
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in transactions otherwise than on these exchanges or systems or in the over-the-counter market; |
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through the writing of options, whether such options are listed on an options exchange or otherwise; |
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ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
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block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction; |
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purchases by a broker-dealer as principal and resale by the broker-dealer for its account; |
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an exchange distribution in accordance with the rules of the applicable exchange; |
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privately negotiated transactions; |
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short sales; |
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sales pursuant to Rule 144; |
|
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broker-dealers may agree with the selling securityholders to sell a specified number of such shares at a stipulated price per share; |
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a combination of any such methods of sale; and |
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any other method permitted pursuant to applicable law. |
If the selling shareholders
effect such transactions by selling shares of Common Stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers
or agents may receive commissions in the form of discounts, concessions or commissions from the selling shareholders or commissions from
purchasers of the shares of Common Stock for whom they may act as agent or to whom they may sell as principal (which discounts, concessions
or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions
involved). In connection with sales of the shares of Common Stock or otherwise, the selling shareholders may enter into hedging transactions
with broker-dealers, which may in turn engage in short sales of the shares of Common Stock in the course of hedging in positions they
assume. The selling shareholders may also sell shares of Common Stock short and deliver shares of Common Stock covered by this prospectus
to close out short positions and to return borrowed shares in connection with such short sales. The selling shareholders may also loan
or pledge shares of Common Stock to broker-dealers that in turn may sell such shares.
The selling shareholders
may pledge or grant a security interest in some or all of the shares of Common Stock owned by them and, if they default in the performance
of their secured obligations, the pledgees or secured parties may offer and sell the shares of Common Stock from time to time pursuant
to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act, amending,
if necessary, the list of selling shareholders to include the pledgee, transferee or other successors in interest as selling shareholders
under this prospectus. The selling shareholders also may transfer and donate the shares of Common Stock in other circumstances in which
case the transferees, donees, pledgees or other successors in interest will be the selling owners for purposes of this prospectus.
The selling shareholders
and any broker-dealer participating in the distribution of the shares of Common Stock may be deemed to be “underwriters” within
the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be
deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares of Common
Stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of shares of Common
Stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions
and other terms constituting compensation from the selling shareholders and any discounts, commissions or concessions allowed or reallowed
or paid to broker-dealers.
Under the securities laws
of some states, the shares of Common Stock may be sold in such states only through registered or licensed brokers or dealers. In addition,
in some states the shares of Common Stock may not be sold unless such shares have been registered or qualified for sale in such state
or an exemption from registration or qualification is available and is complied with.
There can be no assurance
that any selling shareholder will sell any or all of the shares of Common Stock registered pursuant to the registration statement, of
which this prospectus forms a part.
The selling shareholders
and any other person participating in such distribution will be subject to applicable provisions of the Exchange Act and the rules and
regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which may limit the timing of purchases and sales
of any of the shares of Common Stock by the selling shareholders and any other participating person. Regulation M may also restrict the
ability of any person engaged in the distribution of the shares of Common Stock to engage in market-making activities with respect to
the shares of Common Stock. All of the foregoing may affect the marketability of the shares of Common Stock and the ability of any person
or entity to engage in market-making activities with respect to the shares of Common Stock.
Once sold under the registration
statement, of which this prospectus forms a part, the shares of Common Stock will be freely tradable in the hands of persons other than
our affiliates.
LEGAL MATTERS
Certain legal matters with
respect to the shares of Common Stock offered hereby will be passed upon by Ellenoff Grossman & Schole LLP, New York, New York.
EXPERTS
The financial statements of
Cuentas Inc. as of December 31, 2022 and the year ended December 31, 2022 have been audited by Yarel + Partners, Certified Public Accountants
(ISR.), an independent registered public accounting firm, as stated in their report, which is incorporated herein by reference, which
report includes an explanatory paragraph relating to our ability to continue as a going concern. Such financial statements have been incorporated
by reference in this prospectus and registration statement in reliance on the report of such firm given upon their authority as experts
in accounting and auditing.
The financial statements of
Cuentas Inc. as of December 31, 2021 and the year ended December 31, 2021 have been audited by Halperin Ilanit, CPA, an independent registered
public accounting firm, as stated in their report, which is incorporated herein by reference herein, which report includes an explanatory
paragraph relating to our ability to continue as a going concern. Such financial statements have been incorporated by reference in this
prospectus and registration statement in reliance upon the report of, and upon the authority of Halperin Ilanit, CPA as experts in accounting
and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC
this registration statement under the Securities Act of 1933, as amended (the “Securities Act”) covering the Common Stock
to be offered and sold by this prospectus and any applicable prospectus supplement. This prospectus does not contain all of the information
included in the registration statement, some of which is contained in exhibits to the registration statement. In addition, we are subject
to the information and periodic and current reporting requirements of the Exchange Act, and in accordance therewith, we file periodic
and current reports, proxy statements and other information with the SEC.
You may access our annual reports
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements on Schedule 14A and amendments
or supplements to those reports and statements, filed with the SEC, free of charge at our website at www.cuentas.com or
by means of the SEC’s website at www.sec.gov. The information found on, or that can be accessed from or that is hyperlinked
to, our website or the SEC’s website is not part of this prospectus and you should not rely on that information when making a decision
to invest in our Common Stock.
Any statement made in this
prospectus and any prospectus supplement, periodic and current reports, proxy statements and other information filed or furnished with
the SEC concerning the contents of any contract, agreement or other document is only a summary of the actual contract, agreement or other
document. If we have filed any contract, document, agreement or other document as an exhibit to such filing or furnishing, you should
read the exhibit for a more complete understanding of the document or matter involved. Each statement regarding a contract, agreement
or other document is qualified in its entirety by reference to the actual document.
Upon written or oral request,
we will provide without charge to each person to whom a copy of the prospectus is delivered a copy of the documents incorporated by reference
herein (other than exhibits to such documents unless such exhibits are specifically incorporated by reference herein). You may request
a copy of these filings, at no cost, by writing or calling us at the contact information set forth below. We have authorized no one to
provide you with any information that differs from that contained in this prospectus. Accordingly, we take no responsibility for any other
information that others may give you. You should not assume that the information in this prospectus is accurate as of any date other than
the date of the front cover of this prospectus.
Cuentas Inc.
235 Lincoln Rd., Suite 210
Miami Beach, Florida 33139
Telephone number: (800) 611-3622
INFORMATION INCORPORATED BY REFERENCE
The SEC allows us to “incorporate
by reference” the information we file with them, which means that we can disclose important information to you by referring you
to those documents. The information incorporated by reference herein is considered to be part of this prospectus, and information that
we file later with the SEC will automatically update and supersede this information. We incorporate by reference the documents listed
below (except the information contained in such documents to the extent “furnished” and not “filed”) and any future
filings we make with the SEC under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act (except the information contained in such
documents to the extent “furnished” and not “filed”):
|
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our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on March 31, 2023. |
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our Quarterly Report on
Form 10-Q for the fiscal quarter ended March 31,
2023 filed with the SEC on May 15, 2023; for the second fiscal quarter ended June 30, 2023 filed with the SEC on August 14, 2023; and for the third fiscal quarter ended September 30, 2023 filed with the SEC on November 20, 2023; |
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our Current Reports on
Form 8-K as filed with the SEC on March
30, 2023 (Items 5.03 and 9.01); April
13 2023 (Items 801 and 9.01); April
18, 2023 (Items 8.01 and 9.01); May
4, 2023 (Items 1.01 and 9.01); June
22, 2013 (Items 5.02 and 9.01); August
18, 2023 (Items 3.01 and 9.01); August
22, 2023 (Items 1.01, 3.02 and 9.01) and August
22, 2023 (Items 5.02 and 9.01); October 4, 2023 (Item 3.01); October 16, 2023 (Item 5.02) and October 19, 2023 (Items 1.01, 7.01 and 9.01); and |
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the Description of Cuentas
Capital Stock section contained in our Registration Statement on Form S-1 filed with the SEC on August 1, 2023, and declared effective on August 9, 2023. |
We will provide without charge
upon written or oral request a copy of any or all of the documents that are incorporated by reference herein into this prospectus, other
than exhibits which are specifically incorporated by reference herein into such documents. Requests should be directed to Cuentas Inc.,
235 Lincoln Rd., Suite 210, Miami Beach, Florida 33139. Our telephone number is (800) 611-3622.
Any statement contained in
a document incorporated or deemed to be incorporated by reference herein into this prospectus shall be deemed to be modified or superseded
for the purposes of this prospectus to the extent that a statement contained in this prospectus (or in any document incorporated by reference
herein therein) or in any other subsequently filed document that is or is deemed to be incorporated by reference herein into this prospectus
modifies or supersedes such statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded,
to constitute a part of this prospectus.
![](https://www.sec.gov/Archives/edgar/data/1424657/000121390023090246/image_001.jpg)
1,275,747 Shares
Common Stock
To be Sold by the Selling Shareholders
PROSPECTUS
, 2023
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. Other Expenses of Issuance and Distributions.
The following table sets forth
the expenses to be borne by Cuentas Inc. in connection with the offering described in this Registration Statement.
Registration fee – Securities and Exchange Commission | |
$ | 182 | |
Legal fees and expenses | |
| 50,000 | * |
Accounting fees and expenses | |
| 10,000 | * |
Total | |
$ | 60,182 | * |
* |
These fees are calculated based on the securities offered and the number of issuances and accordingly cannot be defined at this time. |
ITEM 15. Indemnification of Directors and Officers.
Our Amended and Restated Articles
of Incorporation and Amended and Restated Bylaws both provide for the indemnification of our officers and directors to the fullest extent
permitted by the Florida Business Corporation Act (the “FBCA”). The FBCA provides that a corporation may indemnify a director
or officer against liability if the director or officer acted in good faith, the director or officer acted in a manner he or she reasonably
believed to be in, or not opposed to, the best interests of the corporation, and in the case of any criminal proceeding, the director
or officer had no reasonable cause to believe his or her conduct was unlawful. A corporation may not indemnify a director or an officer
except for expenses and amounts paid in settlement not exceeding, in the judgment of the board of directors, the estimated expense of
litigating the proceeding to conclusion, actually and reasonably incurred in connection with the defense or settlement of such proceeding,
including any appeal thereof, where such person acted in good faith and in a manner he or she reasonably believed to be in, or not opposed
to, the best interests of the corporation.
The FBCA provides that a corporation
must indemnify a director or officer who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which
the individual was a party because he or she is or was a director or officer of the corporation against expenses incurred by the individual
in connection with the proceeding.
A corporation may, before
final disposition of a proceeding, advance funds to pay for or reimburse expenses incurred in connection with the proceeding by a director
or an officer if the director or officer delivers to the corporation a signed written undertaking of the director or officer to repay
any funds advanced if such director or officer is not entitled to indemnification.
These indemnification provisions
may be sufficiently broad to permit indemnification of our officers, directors and other corporate agents for liabilities (including reimbursement
of expenses incurred) arising under the Securities Act.
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of our company pursuant
to the foregoing provisions, or otherwise, we have been informed that in the opinion of the SEC such indemnification is against public
policy as expressed in the Securities Act and is, therefore, unenforceable.
We have the power to purchase
and maintain insurance on behalf of any person who is or was one of our directors or officers, or is or was serving at our request as
a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other business against any liability
asserted against the person or incurred by the person in any of these capacities, or arising out of the person’s fulfilling one
of these capacities, and related expenses, whether or not we would have the power to indemnify the person against the claim under the
provisions of the FBCA.
If the FBCA Law is amended
to expand further the indemnification permitted to indemnitees, then we shall indemnify such persons to the fullest extent permitted by
the FBCA, as so amended.
Pursuant to the Florida Statutes,
our Amended and Restated Articles of Incorporation exclude personal liability for our Directors for monetary damages based upon any violation
of their fiduciary duties as Directors, except as to liability for any breach of the duty of loyalty, acts or omissions not in good faith
or which involve intentional misconduct or a knowing violation of law, or any transaction from which a Director receives an improper personal
benefit. This exclusion of liability does not limit any right which a Director may have to be indemnified and does not affect any Director’s
liability under federal or applicable state securities laws. We have agreed to indemnify our directors against expenses, judgments, and
amounts paid in settlement in connection with any claim against a Director if he acted in good faith and in a manner he believed to be
in our best interests.
ITEM
16. Exhibits
ITEM 17. Undertakings
| (a) | The undersigned registrant hereby undertakes: |
| (1) | To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement: |
| (i) | To
include any prospectus required by Section 10(a)(3) of the Securities Act of 1933; |
| (ii) | To
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in
volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Filing Fee Table”
filed as an exhibit in the effective registration statement; and |
| (iii) | To
include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement; provided, however, that paragraphs (a)(1)(i), (a)(1)(ii)
and (a)(1)(iii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained
in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934 that are incorporated by reference herein in the registration statement, or is contained in a form of prospectus
filed pursuant to Rule 424(b) that is part of the registration statement. |
| (2) | That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof. |
| (3) | To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination
of the offering. |
|
(4) |
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser: |
|
(i) |
If the registrant is relying on Rule 430B, |
|
(A) |
Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and |
|
(B) |
Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference herein into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; |
|
(ii) |
If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference herein into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. |
|
(5) |
The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference herein in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
|
(6) |
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue. |
|
(7) |
The undersigned registrant hereby undertakes that: in a registration statement permitted by Rule 430A, |
|
(i) |
For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective; and |
|
(ii) |
For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, Cuentas Inc. certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-3 and has duly caused this amendment to this Registration Statement on Form S-3 to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Miami, State of Florida on the 27th day of November, 2023.
|
CUENTAS INC. |
|
|
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By: |
/s/ Arik Maimon |
|
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Arik Maimon |
|
|
Chief Executive Officer |
|
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(Principal Executive Officer) |
KNOW ALL PERSONS BY THESE
PRESENTS that each individual whose signature appears below hereby constitutes and appoints Arik Maimon as his or her true and lawful
attorney-in-fact and agent with full power of substitution, for him or her and in his or her name, place and stead, in any and all capacities,
to sign any and all amendments, including post-effective amendments, to this registration statement, and to sign any registration statement
for the same offering covered by this registration statement that is to be effective upon filing pursuant to Rule 462(b) promulgated under
the Securities Act of 1933 increasing the number of shares for which registration is sought, and all post-effective amendments thereto,
and to file the same, with all exhibits thereto and all documents in connection therewith, making such changes in this registration statement
as such attorney-in-fact and agent so acting deem appropriate, with the SEC, granting unto said attorney-in-fact and agent full power
and authority to do and perform each and every act and thing requisite and necessary to be done with respect to the offering of securities
contemplated by this registration statement, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming all that said attorney-in-fact and agent, or his, her or their substitute or substitutes, may lawfully do or cause to be
done or by virtue hereof.
Pursuant to the requirements
of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and
on the dates indicated.
Signature |
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Title |
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Date |
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/s/
Arik Maimon |
|
Chief
Executive Officer and |
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November
27, 2023 |
Arik
Maimon |
|
Executive
Chairman of the Board of Directors |
|
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(Principal
Executive Officer) |
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* |
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Chief
Financial Officer |
|
November
27, 2023 |
Shlomo
Zakai |
|
(Principal
Financial Officer and |
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Principal Accounting
Officer) |
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* |
|
Executive
Vice Chairman of the Board of Directors and |
|
November
27, 2023 |
Michael
De Prado |
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President |
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Director |
|
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Adiv
Baruch |
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Director |
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Sara
Sooy |
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* |
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Director |
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November
27, 2023 |
Lexi
Terrero |
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* |
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Director |
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November
27, 2023 |
Haim
Yeffet |
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*By: |
/s/
Arik Maimon |
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|
Arik Maimon |
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November 27, 2023 |
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Attorney-in fact |
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II-4
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