At the end of October, we took a look at a company called Cataca Resources Inc, and it's pending merger with transport rental company Flitways. At the time, the former traded under the ticker CATQ, and the merger was an effort to pivot into the space and bring Flitways onto a public exchange.The deal is now complete, and the new company, trading OTC, is Flitways Technology Inc (OTCMKTS:FTWS).If the new company can execute on its strategy over the coming twenty four months, and build on the framework already in place, it has the potential to be a real winner for shareholders. It's attempting to refine a model already pioneered by the likes of Uber, and rapid expansion into both domestic and international markets is underway.Here's what's happened so far, and what we're looking for going forward to underpin our bull thesis.So, we've discussed he company briefly, but to be a bit more specific, Flitways goes direct to companies, as opposed to the traveler (like, say, Uber does), and secures contracts that see the company in question commit to using its services for the business related travel of its employees.This isn’t a tech startup – it's already established in many markets globally. Flitways' fleet to date clocks in at more than 20,000 vehicles, and services customers in 170 countries globally. In the last quarter alone, it secured high profile transportation contracts with TUI Group, a global hotel and office space company, and Xerox Corp (NYSE:XRX), both of which we looked at in detail in previous coverage.On November 17, management announced its service launch in Rio De Janeiro and Sao Paulo, Brazil. The company has access to more than 6,000 drivers in Sao Paulo and Rio de Janeiro, and the move marks the first of a large scale expansion plan that should see the company dominate the first and last mile travel arena in South America near term.Flitways stated that it expects to have thousands of licensed cabs in a hundred new cities within the next year. This type of aggressive expansion strategy is what underpins our thesis, and the beauty of it is, it provides a constant stream of steady news flow on which market capitalization gains can build. With each new market introduction, we expect an increased flow of speculative capital, and with this capital should come concurrent gains in the company's market capitalization.From a numbers perspective, things aren’t totally clear right now, based on the fact that this is essentially an IPO company. We've got revenues data from 2014 and 2015, which came in at $67K and $337K respectively, and this growth (more than 400% year over year) paints a pretty rosy picture for full year 2016 and beyond. We'll have to wait for the next filing, however, to gain some clarity into whether Flitways has managed to maintain this growth.As we noted last time, cash remains a concern. The company filed a Q this month that included an unaudited balance sheet, but this related to Cataca as opposed to Flitways, so it's not particularly useful from an analysis perspective. Assets listed on the balance sheet amounted to essentially nothing anyway. Again, using best available information, cash at the end of last year was less than $10K.Why is this a problem?Because it pretty much guarantees a dilutive raise near term. Indeed, this is probably one of the key drivers behind the company picking up a public listing. That said, with the aggressive strategy Flitways is pushing, and the hundreds of fresh city markets planned to be added to its portfolio over the next twelve months, growth should outweigh dilutive value loss considerably.We will be updating our subscribers as soon as we know more. For the latest updates on FTWS, sign up below!Disclosure: We have no position in FTWS and have not been compensated for this article.
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