Tap Systems, Inc.
Command AI Powered Devices With A Pinch Tap Or Swipe
Last Funded May 2025
$223,530
raised from 3,505 investors
Investment Terms
You will be investing in Tap Systems, Inc. through an SPV. This means that when you invest, you will be signing the SPV Subscription Agreement, not the direct investment contract. For more information on SPVs, see here.
- SPV Subscription Agreement - Early Bird
- Early Bird Tap Systems Subscription Agreement Feb 2025 v2
- SPV Subscription Agreement
- Tap Systems Subscription Agreement Feb 2025 v2
Financials
We have financial statements ending December 31, 2023. Our cash in hand is $214,741, as of December 2024. Over the three months prior, revenues averaged $20,000/month, cost of goods sold has averaged $15,000/month, and operational expenses have averaged $180,000/month.
At a Glance
Jan 1 – Dec 31, 2023
$534,204
Revenue
+49%
-$2,567,649
Net Loss
$631,383
Short-Term Debt
+28%
$7,518,310
Raised in 2023
$214,741
Cash on Hand
+49%
Net Margin:
-481%
Gross Margin:
25%
Return on Assets:
-249%
Earnings per Share:
-$0.14
Revenue per Employee:
$53,420.40
Cash to Assets:
32%
Revenue to Receivables:
~
Debt Ratio:
894%
2023-2022 Tap Systems Inc Audit final .pdf
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
The next generation of input technology, creating an all-in-one wearable keyboard, mouse and remote controller.
Milestones
Tap Systems Inc. was incorporated in the State of Delaware in February 2015.
Since then, we have:
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $7,329,232 in debt, $4,372,174 in equity, and $875,000 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 2 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Tap Systems Inc. cash in hand is $214,741.56, as of December 2024. Over the last three months, revenues have averaged $20,000/month, cost of goods sold has averaged $15,000/month, and operational expenses have averaged $180,000/month, for an average burn rate of $175,000 per month. Our intent is to be profitable in 18 months.
There have been no material changes or trends in our financials and operations since the date that our financials cover.
Over the next 6 months, we expect to generate approximately $250k in revenue and incur roughly $800k in expenses.
We are not yet profitable. We believe we'll need approximately $2M funding to be profitable in Q2 of 2026.
For additional sources of capital outside of this offering, we have approximately 8 months of runway between founder loans from our CEO and proceeds from a parallel Reg D.
All projections in the above narrative are forward-looking and not guaranteed.
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
The next generation of input technology, creating an all-in-one wearable keyboard, mouse and remote controller.
Milestones
Tap Systems Inc. was incorporated in the State of Delaware in February 2015.
Since then, we have:
- Proven Technology: $4.5M+ revenue, 50K units sold, strong market validation for Tapping.
- Patent Protection: 8 patents issued, ensuring competitive edge and unique innovation.
- Growing Market: Positioned for AR & Smartglasses boom with 300M input devices needed in 3 years.
- Expert Leadership: Legendary inventors with proven track record of commercialization and exits.
- Diverse Applications: Gaming, AR/VR, productivity, and education drive multiple revenue streams.
- Scalable Growth: Proven fit, IP, and booming markets position Tap for exponential success.
- Engaged Community: 7,500+ user-created layouts, fostering growth, and product adaptability.
- Revenues & Gross Margin. For the period ended December 31, 2023, the Company had revenues of $534,204 compared to the year ended December 31, 2022, when the Company had revenues of $356,522. Our gross margin was 25.27% in fiscal year 2023, and 67.51% in 2022.
- Assets. As of December 31, 2023, the Company had total assets of $1,030,413, including $328,157 in cash. As of December 31, 2022, the Company had $740,949 in total assets, including $417,532 in cash.
- Net Loss. The Company has had net losses of $2,567,649 and net losses of $1,788,861 for the fiscal years ended December 31, 2023 and December 31, 2022, respectively.
- Liabilities. The Company's liabilities totaled $9,210,298 for the fiscal year ended December 31, 2023 and $6,308,437 for the fiscal year ended December 31, 2022.
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $7,329,232 in debt, $4,372,174 in equity, and $875,000 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 2 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Tap Systems Inc. cash in hand is $214,741.56, as of December 2024. Over the last three months, revenues have averaged $20,000/month, cost of goods sold has averaged $15,000/month, and operational expenses have averaged $180,000/month, for an average burn rate of $175,000 per month. Our intent is to be profitable in 18 months.
There have been no material changes or trends in our financials and operations since the date that our financials cover.
Over the next 6 months, we expect to generate approximately $250k in revenue and incur roughly $800k in expenses.
We are not yet profitable. We believe we'll need approximately $2M funding to be profitable in Q2 of 2026.
For additional sources of capital outside of this offering, we have approximately 8 months of runway between founder loans from our CEO and proceeds from a parallel Reg D.
All projections in the above narrative are forward-looking and not guaranteed.
Risks
1
We are an early stage company and have not yet generated any profits. Tap Systems was formed on February 3, 2015. It has a limited operating history upon which an evaluation of its performance and future prospects can be made. Tap Systems has incurred a net loss and has had limited revenues generated since inception. Our current and proposed operations are subject to all of the business risks generally associated with new enterprises. These include likely fluctuations in operating results as the Company reacts to developments in its market, managing its growth and the entry of competitors into the market. We will only be able to pay dividends on any shares if and when our directors determine that we are financially able to do so and deem such payment to be advisable. There is no assurance that we will be profitable at any time in the future or, even if we are profitable, that we will generate sufficient revenues to pay dividends to the holders of our shares.
2
We may not have sufficient capital and will likely be required to raise additional capital.
We anticipate needing access to credit in order to support our working capital requirements as we grow. Interest rates have risen over the past year or two and, generally, it is a difficult environment for obtaining credit on favorable terms. If we cannot obtain credit on favorable terms, or at all, when we need it, we could be forced to raise additional equity capital, modify our growth plans, or take some other action. Issuing more equity would require bringing on additional investors, which could necessitate pricing our equity below its current price. If so, your investment could lose value as a result of this additional dilution. In addition, even if the equity is not priced below its current price, your ownership percentage would be decreased as a result of the addition of more investors and/or shares. If we are unable to find additional investors willing to provide capital, then it is possible that we will choose to cease our sales activity. In that case, the only asset remaining to generate a return on your investment could be our intellectual property. Even if we are not forced to cease our sales activity, the unavailability of credit could result in the Company performing below expectations, which could adversely impact the value of your shares in the Company.
We anticipate needing access to credit in order to support our working capital requirements as we grow. Interest rates have risen over the past year or two and, generally, it is a difficult environment for obtaining credit on favorable terms. If we cannot obtain credit on favorable terms, or at all, when we need it, we could be forced to raise additional equity capital, modify our growth plans, or take some other action. Issuing more equity would require bringing on additional investors, which could necessitate pricing our equity below its current price. If so, your investment could lose value as a result of this additional dilution. In addition, even if the equity is not priced below its current price, your ownership percentage would be decreased as a result of the addition of more investors and/or shares. If we are unable to find additional investors willing to provide capital, then it is possible that we will choose to cease our sales activity. In that case, the only asset remaining to generate a return on your investment could be our intellectual property. Even if we are not forced to cease our sales activity, the unavailability of credit could result in the Company performing below expectations, which could adversely impact the value of your shares in the Company.
3
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
Other Disclosures
The Board of Directors
| Director | Occupation | Joined |
|---|---|---|
| Dovid Schick | CEO and Founder @ Tap Systems Inc. | 2015 |
| Sabrina Kemeny PhD | President and Co-Founder @ Tap Systems Inc. | 2015 |
| Eli Schick | Managing Member @ Amidon Nurse Staffing | 2019 |
| Alec Marshall | Managing Partner @ Silicon Drive | 2019 |
| Alan J. Macy | Electrical engineer and executive @ Biopac Systems | 2024 |
Officers
| Officer | Title | Joined |
|---|---|---|
| Dovid Schick | Founder | 2015 |
| Sabrina Kemeny PhD | Co-Founder | 2015 |
Voting Power
| Holder | Securities Held | Power |
|---|---|---|
| Dovid Schick | 5,574,454 Common Stock | 30.0% |
| Sabrina Kemeny PhD | 4,040,000 Common Stock | 21.7% |
Past Fundraises
| Date | Security | Amount |
|---|---|---|
| Priced Round | $184,330 | |
| 2/2025 | Priced Round | $25,000 |
| 7/2024 | Priced Round | $609,166 |
| 12/2023 | Loan | $6,590,310 |
| 11/2023 | Loan | $93,000 |
| 9/2023 | Convertible Note | $835,000 |
| 11/2022 | Priced Round | $2,102,511 |
| 7/2022 | Priced Round | $199,994 |
| 7/2021 | Loan | $73,000 |
| 5/2021 | Loan | $500,000 |
| 2/2021 | Loan | $19,075 |
| 10/2020 | Priced Round | $1,065,000 |
| 4/2020 | Loan | $21,847 |
| 3/2020 | Priced Round | $395,503 |
| 3/2020 | Loan | $32,000 |
| 5/2019 | Convertible Note | $40,000 |
Convertible Notes Outstanding
| Issued | Amount | Valuation Cap | Maturity |
| 9/30/23 |
$835,000
|
$0 | 2/1/26 |
Outstanding Debts
| Issued | Lender | Outstanding | Maturity |
|---|---|---|---|
| 2/2/21 | PPP Loan |
$19,075
|
2/2/26 |
| 5/19/21 | SBA Loan |
$506,880
|
5/19/51 |
| 7/28/21 | Amazon (Line of Credit) |
$47,520
|
7/28/22 |
| 11/9/23 | Marcus Business Line of Credit |
$50,045
|
11/30/24 |
| 12/22/23 | Dovid Schick |
$7,204,626
|
12/31/29 |
Related Party Transactions
Use of Funds
| $150,000 | 50% towards marketing expenses (primarily social media advertising), 43.1% towards R&D Expenses, 6.9% towards Wefunder fees. |
|---|---|
| $4,390,834 | 33.1% towards marketing expenses (primarily social media advertising), 30% towards R&D Expenses, 30% towards administrative and operational expenses, 6.9% towards Wefunder fees. Raising the maximum will allow us to substantially increase the advertising spend to support the launch of the TapXR. It will also allow us to expand engineering staff to accelerate the development of next generation products. |
Capital Structure
| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
|---|---|---|---|
| Common | 50,000,000 | 18,586,441 | Yes |
Form C Filing on EDGAR
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.