ITEM 1. BUSINESS
Overview
Rapid Fire Marketing,
Inc. (“Rapid Fire,” “RFMK” or the “Company”) was incorporated under the laws of the state of
Delaware in 1989 as G.D.E. Search Corporation. In 1990 the Company changed its name to Ponder Industries, Inc. In 2001, the Company
changed its name to N-Vision Technology. On May 30, 2007, the Company merged with and into Rapid Fire Marketing, Inc., a Nevada
Corporation (the “Merger”). As a result of the Merger, the Company became a Nevada corporation and changed its name
to Rapid Fire Marketing, Inc. The Company’s current business plan is to sell vaporizers which includes a new dry herb vaporizer
which will be available in mid 2014.
Principal Products and Services
The
CANNAcig and Cumulus Vapor Inhalers
On
November 29, 2011, we began development of a new product for the medical cannabis business. This product would be, in effect, an
electronic cigarette that instead of vaporizing nicotine would vaporize THC (Tetrahydrocannabinol). A trademark for this product
was filed in January of 2012 but on our trademark attorney’s advice, the trademark application was not pursued because the
USPTO would deny the trademark. The Company began development of the CANNAcig Vapor Inhaler in April 2012, and currently obtains
the product through outsourced manufacturers who have been selected and retained by the Company.
The CANNAcig and Cumulus
Vapor Inhalers are for smokers and medical marijuana users around the world. The device uses vaporizer technology which
makes the unit discreet, and we believe it may be a healthier alternative to actual smoking.
The CANNAcig and Cumulus
Vapor Inhalers are smokeless. A user is able to consume vapor without all of the harmful effects of actual smoke. It is also nearly
odor free, and can be used in public places. The consumer will no longer need to find a quiet and private place to "smoke."
The CANNAcig and Cumulus
Vapor Inhalers allow the user to "draw" as much "smoke" as desired without the unit heating up and
getting too hot, nor under normal circumstances will it leak or create a mess for the user. The biggest benefit of the CANNAcig/Cumulus
vaporizer is the ability for the user to get the effect of smoking medical marijuana without the health and social risks involved
with smoking. It closely simulates smoking and still delivers potent results, can be used in non-smoking areas, and overall costs
significantly less compared to any type of traditional smoking activity. THC oils and other viscous liquids are typically available
at medical marijuana collectives and are less expensive to use than obtaining rolling papers and dried cannabis.
Unlike conventional cigarettes, vaporizers only contain nicotine or other active ingredient, as opposed to the hundreds of other
harmful chemicals found in actual smoking.
.
Vapor inhalers consist
of three components: a battery, an atomizer and a loadable cartridge. The battery transfers energy to the atomizer. The atomizer
heats the air drawn into the electronic device to a high enough temperature that it vaporizes the active agent in the replaceable
cartridge. The vapor is then inhaled into the mouth and lungs fully simulating the smoking experience and delivering the essential
components. The simulated "smoke" is just water vapor that evaporates in a few seconds which leaves no lingering odor.
The products are priced
competitively with the industry. The only consumable items which will require replacement are the batteries and cartridges. The
batteries are rechargeable but will need to be replaced after normal use in 3-6 months’ time. The cartridges that are pre-loaded
for medical marijuana patients will need to be replaced by the user.
Pocket Puffer Dry Herbal Vaporizer
In February of 2013,
in response to CANNAcig and Cumulus user feedback, the Company began development of the Pocket Puffer Dry Herbal Vaporizer. This
unit has been in development and testing throughout 2013 and is expected to reach the market by mid-2014.
The rationale for development
of a unique, feature-rich dry herbal vaporizer was twofold; dry herbs and dried blends are less expensive and easier to obtain
than oils and waxes, and the lack of availability of quality dry herbal vaporizers. The Pocket Puffer is a superior, feature-rich
unit and will be priced competitively.
The unique features
of the Pocket Puffer Dry Herbal vaporizers are the large proprietary battery which provides the user with long battery life without
the need to charge the unit frequently, two chambers for dried herbs or dried blends and three heat settings for use depending
on the vaporization temperature of the specific dried herb or blend in use.
Bionic Cigs
In January 2010, Rapid
Fire Marketing created the Bionic Cigs electronic cigarette division. The Company was looking to take advantage of the growing
popularity of electronic cigarettes as a smoking cessation device. An electronic cigarette is defined as follows:
An electronic cigarette
(or e-cigarette), personal vaporizer (PV), or electronic nicotine delivery system (ENDS) is an electronic inhaler meant to simulate
and substitute for tobacco smoking. It generally utilizes a heating element that vaporizes a liquid solution. Some release nicotine,
while some merely release-flavored vapor. They are often designed to mimic traditional smoking implements, such as cigarettes or
cigars, in their use and/or appearance.
The benefits and risks
of electronic cigarette use are currently uncertain, but they are likely safer than smoking tobacco. Laws vary widely concerning
their use and sale, and are the subject of pending legislation and ongoing debate.
The Bionic Cigs division
and website was closed in early 2014.
Medical Cannabis Management
The Company also provided
full service marketing, consulting and management services under Medical Cannabis Management(“MCM”), (a division of
Rapid Fire Marketing) for medical cannabis related businesses and entities.
On
August 25, 2011, MCM commenced consulting services for non-profit organizations seeking to grow, cultivate and provide medical
cannabis for use in California. However, by early 2012, the Company determined that it would be in the best interests of the Company
to offer consulting services under MCM. As a result, the Company no longer provides consulting services.
Other Key Events
InboundMarketingPR
On
August 3, 2011, the Company entered into an Asset Purchase Agreement to acquire 100% of InBoundMarketingPR PR. InBound Marketing
PR was intended to become the marketing arm for RFMK to conduct Internet and social media marketing for Bionic Cigs, MCM as well
as RFMK itself. The terms of the agreement were never completed, but assets of InBoundMarketingPR were retained. InBoundMarketingPR
agreed to stay on as the marketing arm for Rapid Fire Marketing with no consideration. InboundMarketingPR would only be paid for
leads that were subsequently closed, a contract finalized and payment received by Rapid Fire Marketing. InboundMarketingPR was
unable to close any business and was not paid.
Otherside Health
Management
On
February 28, 2012, the Company entered into a distribution agreement with Otherside Health Management (“Otherside”)
for distribution of the CANNAcig in the state of California, as well as facilitating distribution of the CANNAcig throughout the
U.S. and abroad. Later in 2012, however, the Company terminated this agreement because sales began to decline and cash from sales
were not sent to the Company in a timely manner.
Pyrenees Investments,
LLC
On
April 12, 2012, the Company entered into an agreement with Pyrenees Investments, LLC for consulting services related to becoming
a fully reporting public company with a potential listing on a different exchange. The consulting services also include the establishment
of operational procedures, sales and marketing channels and financial reporting and measurement. On May 21, 2012, this agreement
was amended and extended until August of 2013, and on September 1, 2013 was again extended for one year.
Cheryl Shuman
Agreement
On
May 11, 2012, Rapid Fire Marketing executed an agreement with Cheryl Shuman. Under the terms of the agreement, Ms. Shuman serves
as the media spokesperson for the Company and is to conduct marketing, public relations, product placement, consulting services
for the Company.
Distribution
Methods of our Products
Initially, distribution
of products were to “smoke shops” in California and Arizona through business relationships with Otherside Health Management.
Otherside also set up online sales of the CANNAcig at vinhaler.com. As discussed in the paragraph
Otherside Health Management
,
sales began to decline and cash from sales were not sent to the Company in a timely manner. During its relationship with Otherside,
Rapid Fire Marketing sold products through the website, vinhaler.com. These sales stopped when the relationship with Otherside
was terminated.
Since September 2012,
online sales have been conducted through another independent contractor who owns the domain “theCANNAcig.com”. The
CANNAcig was also sold through a distribution agreement with GotVape.com for a one-time sale with the option of additional sales
through a relationship with independent contractor, Cheryl Shuman.
New Products
Late in 2012 and into
early 2013, many users of the CANNAcig expressed interest on “theCANNAcig.com” in a “dry” vaporizer. A
“dry vaporizer” is a special unit which will vaporize plant material rather than oil. Considering that plant material
is accessible much easier less expensive than oil, Rapid Fire Marketing decided to work with HexCorp to develop a dry vaporizer
unit.
Pocket Puffer Dry Herbal Vaporizer
In February of 2013, in response to CANNAcig
and Cumulus user feedback, the Company began development of the Pocket Puffer Dry Herbal Vaporizer. This unit has been in development
and testing throughout 2013 and is expected to reach the market by mid 2014.
The rational for development of a unique,
feature rich dry herbal vaporizer was twofold; dry herbs and dried blends are less expensive and easier to obtain than oils and
waxes and the lack of availability of quality dry herbal vaporizers. The Pocket Puffer is a superior, feature rich unit and will
be priced competitively.
The unique features of the Pocket Puffer
Dry Herbal vaporizers are the large proprietary battery which provides the user with long battery life without the need to charge
the unit frequently, two chambers for dried herbs or dried blends and three heat settings for use depending on the vaporization
temperature of the specific dried herb or blend in use.
Competition
Our products, the CANNAcig
and Cumulus vapor inhalers, are as small and discreet as most other vaporizers on the market. Some of our competitors have products
that are larger and heavier than our vaporizers and require energy sources to operate. All vaporizers work in a similar way. Consequently,
competition is based on brand development and recognition and price. The internet marketplace for smaller vaporizers is very
competitive with many brands being offered. Examples of the major competitive brands that we compete against are:
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Cannabee and the eJoint ®.
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Grenco Science™ and the G Pen and Micro G.
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Below are links to
three competitors and their disposable lines:
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http://www.cannabee.com/
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http://www.grencoscience.com/
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http://www.atmosrawvaporizer.com/
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Intellectual Property
We
anticipate that over time, with the development of our new line of products, the Company will implement more stringent procedures
to protect our trademarks, copyrights and intellectual property. Currently, the Company is in the process of developing a trademark
for the Pocket Puffer Dry Herb Vaporizer.
We
intend to enter into confidentiality agreements with our employees, consultants, vendors and customers. We also intend to enter
in to non-disclosure agreements with partners seeking to do business with us, represent us, distribute our products or help us
in capitalization and public awareness.
Governmental Regulation
Currently,
there are twenty states plus the District of Columbia that have laws and regulations that recognize in varying circumstances the
legitimate medical uses for cannabis and consumer use of cannabis in connection with medical treatment. Many other states are considering
legislation to similar effect. As of the date of this writing, the policy and regulations of the Federal government and its agencies
is that cannabis has no medical benefit and a range of activities including cultivation and use of cannabis for personal use is
prohibited on the basis of federal law and may or may not be permitted on the basis of state law. Active enforcement of the current
federal regulatory position on cannabis on a regional or national basis may directly and adversely affect the willingness of customers
of Rapid Fire to invest in or buy products from Rapid Fire. Active enforcement of the current federal regulatory position on cannabis
may thus adversely affect revenues and profits of the Company.
In the future, the
manufacturing, processing, testing, packaging, labeling and advertising of the products that we distribute may be subject to regulation
by one or more U.S. federal agencies, including the Food and Drug Administration, the Federal Trade Commission, the CSA and UL
in North America, the United States Department of Agriculture, the Environmental Protection Agency, the standards provided by the
United States Public Health authority and the World Health Organization for Drinking Water. These activities may also be regulated
by various agencies of the states, localities and foreign countries in which consumers reside.
Research and Development
In 2013 and 2012, the
Company spent $110,175 and $335 on research and development of new products. We believe that as a result of the money we are devoting
to research and development, our products are more now competitive, easier to use than earlier products, and more inexpensive to
manufacture.
Employees
As
of April 11, 2014, our sole officer and director, Thomas Allinder, is our only full time employee.
Executive Offices
Our principal executive offices are located
at 311 West Third St., Suite 1234, Carson City, NV, 89703. Our telephone number is 775-461-5127.