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Professor of Law, Codirector, Empirical Legal Studies Center, Codirector, Program in Law and Economics
An independent consultant, mentor and board member to tech companies.
Responsible for launching startups and creating business formation infrastructure for the Office of Technology Transfer (OTT) at the University of Michigan.
Responsible for building promising Cleveland Clinic inventions into successful new ventures.
Responsible for the general supervision and direction of the business.
Worked with startups and growing innovative businesses.
Responsible for minutes of all meetings and actions of directors and stockholders.
Professor of Law, Codirector, Empirical Legal Studies Center, Codirector, Program in Law and Economics
Responsible for the general supervision and direction of the business.
Responsible for the general supervision and direction of the business.
Worked with startups and growing innovative businesses.
Responsible for the architecture and technical direction of products and services.
Responsible for the architecture and technical direction of products and services.
Independent software and product consulting
Independent software and product consulting
Matterhorn, from Court Innovations, is a SaaS, cloud-based platform that allows courts to handle many high-volume infractions, disputes and outstanding warrants online. This saves citizens, courts, and law enforcement significant time and money. The product is already on the market and in use by 20 courts and over 10,000 citizens. Feedback has been so positive that courts have expanded their platform to resolve additional types of cases online.
Problem. Prior to Matterhorn, resolving issues like open traffic tickets or warrants required law enforcement and citizens to physically go to the court. For resource-constrained courts and police departments, managing these minor disputes with in-person hearings or mediations meant long delays in scheduling, backlogs of open cases, delays in revenue realization, less time for hearing more complex disputes, and limited access to justice for citizens.
Solution. Available for courts and citizens 24/7, the cloud- based Matterhorn platform replicates and streamlines the court’s current process in an online, asynchronous, collaborative environment. Court officials, law enforcement personnel, and citizens all “weigh-in” online on the case at a time that is convenient for each. The efficiency and financial outcomes are impressive: processing time decreased from 157 minutes to 27 minutes; 10% fewer warrants issued; and case turnover and revenue realization reduced from 1-2 months to 7 days.
Matterhorn’s current SaaS solutions focus on dispute resolution and compliance for warrant resolution, warrant intervention (preventing the issuance of warrants), civil infraction disputes (including traffic and parking) and license restoration. These solutions (add-ons, sold separately) are the first of many applications on our product roadmap to provide online court access.
For additional information, please see attached BusinessPlan.pdf
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.
In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.
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These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Government sector sales typically have a longer sales cycle (more risk), but once you are “in” it is a “sticky” sector that does not change vendors as often (less risk).
Court Innovations Incorporated (“Company”) is offering securities under both Regulation D, through Livingston Securities, LLC (“Livingston”) and Regulation CF through NetCapital Funding Portal Inc. (“Portal”). Livingston is a registered broker-dealer, and member FINRA/SIPC. Livingston will receive cash compensation equal to 4.9% of the value of the securities sold. Portal is a FINRA/SEC registered funding portal and will receive cash compensation equal to 4.9% of the value of the securities sold. Investments made under both Regulation D and Regulation CF involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.
This offering is considered a side-by-side offering, meaning that the Company is raising capital under two offering types. The Company plans to raise between $50,000 and $499,195 through concurrent offerings under Regulation CF and Regulation D – Rule 506(c). In the event the Company fails to reach their combined offering target of $50,000, any investments made under either offering will be cancelled and the investment funds will be returned to the investor. Under Regulation CF, the Company can raise up to $499,195.
Accredited investors which have proved their accreditation status to Portal, will automatically invest under the Regulation D - Rule 506(c) offering type. All other investors will invest under the Regulation CF offering type. An accredited investor which proves their accreditation status with Portal prior to 48 hours of the offering closing, can authorize their investment to be withdrawn from the Regulation CF offering and automatically reinvested in the Regulation D offering. You must be an accredited investor to invest under Regulation D.
National sales and marketing initiative: showcasing work in Michigan as we expand to courts and government entities through the United States.
| If Target Offering Amount Sold | If Maximum Amount Sold | |
|---|---|---|
| Total Proceeds | $50,000 | $499,195 |
| Less: Offering Expenses | $2,450 | $24,461 |
| Net Proceeds | $47,550 | $474,734 |
| Working Capital | $47,550 | $474,734 |
| Total Use of Net Proceeds | $47,550 | $474,734 |
The securities being offered may not be transferred by any purchaser of such securities during the one-year period beginning when the securities were issued, unless such securities are transferred:
| Class of Security | Amount Authorized | Amount Outstanding | Voting Rights | Other Rights |
|---|---|---|---|---|
| Common Stock | 6,000,000 | 4,400,000 | Yes |
Not applicable.
All above securities are common stock which are the same as the crowdfunding securities.
The shareholder may vote on decisions with which another investor disagrees. Depending on how other shareholders vote, the resulting outcome may conflict with an investor’s interest .
On September 21, 2016, the Company secured a term sheet for a preferred stock financing with a pre-financing valuation of $3M, with the assumption that such pre-financing valuation includes an available option pool equal to 10% of the fully diluted shares outstanding of the Company, on a post-financing basis. This 10% option pool equates to approximately $260,000 of the $3M valuation.
At this time, the Company has not completed the preferred stock financing, and the option pool has not yet been increased, as described above. As such the current valuation without the increased option pool is approximately $2.7M. Factoring in the possible $500,000 crowdfunding campaign, our post-financing valuation estimate is approximately $3.2M.
As with any minority ownership investment, there is no significant involvement regarding the direction and operations of the business.
As with existing investors, dilution will occur as additional shares are issued.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
Funding History: The University of Michigan’s Third Century Fund strongly believes in this online court initiative. The combination of increasing access to justice for all citizens and the national scalability of the solution attracted this grant funding – totaling $3,000,000 – to prove the initial concepts, implement pilots, establish an initial customer base that represents a growing market, and evaluate the impact of online case resolution.
A little over a year ago, we converted all three pilots to paying customers, and we have launched 17 additional courts as customers. As we continue to bring in new customers, we are identifying and implementing new application solutions that are already being sold and launched in Matterhorn courts. The revenue from court solutions continues to build through our initiatives.
Now that we have proven the solution in Michigan, we are expanding into other states (with our first being Ohio). Our momentum is moving us forward nationally as we contract with more courts, expand our solutions for handling more types of cases, and reach more citizens to resolve their cases. These are all key building blocks of our revenue growth.
Revenue: Our revenues grew to $992,826 in 2015 up from $306,370 in 2014. For 2016, we are estimating over $1M in revenues. These revenues include a growth in court revenues to an estimated $50,000 in 2016 up from of $15,167 in 2015 as more courts launch with the Matterhorn platform.
Cost of Goods Sold: Because of our software-as-a-service, cloud-based platform, we are able maintain a lower cost of goods as we increase our revenue growth in the next few years.
Operating Expenses: As we continue our national roll-out, our operating expenses are focused primarily on sales and marketing. With our core Matterhorn platform built out and running, our development costs are balanced between product enhancements and building new solutions.
Capital: Investment interest in Court Innovations continues to grow. We have secured a term sheet for additional investment that we anticipate closing in the first quarter of 2017. Even though this will have a dilutive impact on current shareholders, it potentially will enable faster expansion and revenue generation.
If Yes to any of the above, explain:
The following documents are being submitted as part of this offering:
Once posted, the annual report may be found on the issuer’s web site at: getmatterhorn.com
The issuer must continue to comply with the ongoing reporting requirements until:
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