We are pleased to present our 2021 business report to all of you which shows what we achieved significant accomplishments, including successful projects with substantial revenue gains, innovative solutions, and outstanding achievements in 2021. We invite you to review our report for more detailed information.

1. Business Overview

Erxes platform integrates marketing, sales, and customer service departments to establish a seamless connection, unifying all social platforms where the company interacts with its clients. This integration aims to streamline business processes, increase productivity, and provide a high-quality customer experience.

   Businesses can integrate platforms into their operations to streamline marketing, reduce unnecessary HR-related expenses, and consolidate their interactions with customers across multiple social media platforms. This approach can save time and money, enable businesses to engage with customers through a single interface and allow them to curate a comprehensive database of information to improve marketing and sales efforts and enhance the customer experience.

     This platform was developed through research and development by the New Media Group's research team in January 2016. After successful testing, it was officially registered by the LLC in July 2018 and has since been actively developed and improved.

2. Business Operation

2.1 Customer Information

   In 2021, 12 new enterprise clients started using the Erxis platform for their day-to-day operations.

2.2 Shark Tank 

  The Erkisys project was the most highly rated project in the 3rd round of the Shark Tank reality show. We received a proposal for funding of $137,250 at a valuation of 0.67% of the company and were able to successfully secure a total investment of $75,000 from the sharks.

2.3 $ERXS - Investment Information

  As of the beginning of 2022, we have received a total of 2.7 million dollars in investments from 120 investors.

   For the purpose of raising funding of $3.5 million, the company aims to attract investors by offering shares at a higher price than the previous valuation of 13.39%. In case of oversubscription, the possibility of raising the funding at a higher price of $1.83 per share is available for potential investors.

Stock Major Holders

2.4 Prizes, appreciation

   In 2021, the Erkhes project was selected as one of the top 7 companies for the "Scaleway Growth Stage Startup Program.

 In 2021, erxes Inc was recognized as one of the top 82 CRM companies in Los Angeles and emerging businesses.

   "Erxes" is being evaluated as one of the fastest-growing platforms in the field of marketing automation in 2021.

2.5 Human Resource

   The number of customers using the erxes platform has increased, resulting in the addition of 42 new members to the team, bringing the total number of employees to 76, surpassing the previous year's number. Of the 42 new employees, 21 are backend and frontend developers. The company is committed to providing excellent service and support to its growing customer base.

4. Financial Operation

 In the year 2021, the total sales revenue of the platform increased by 210 percent compared to the previous year, reaching 419 million tugriks. However, after tax, there was a discrepancy of 705 million tugriks in the year 2020, which decreased to 490 million tugriks by the end of 2021, representing a 30 percent decrease from the previous year.

 

  In comparison to the previous year, the total operating expenses for the year 2021 increased by 22 percent, amounting to 886 million tugriks. The primary driver for the expense increase was the significant rise in salary expenses, which accounted for 60 percent of the total operating expenses. Additionally, server fees and taxes, including income tax and value-added tax, also contributed to the overall increase, accounting for 20 and 13 percent of the total operating expenses, respectively.