14:43:55 EDT Thu 28 Mar 2024
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Posabit Systems Corp
Symbol PBIT
Shares Issued 131,902,645
Close 2022-05-26 C$ 1.03
Market Cap C$ 135,859,724
Recent Sedar Documents

Posabit Systems loses $469,754 (U.S.) in Q1

2022-05-26 19:10 ET - News Release

Mr. Ryan Hamlin reports

POSABIT REPORTS FIRST QUARTER 2022 FINANCIAL RESULTS

Posabit Systems Corp. has released its financial results for the three months ended March 31, 2022.

"We continued to on board new merchants during the first quarter, primarily higher volume stores that, when coupled with anticipated same-store growth from our existing store footprint, reinforces our optimism for another year of exponential growth in 2022," said Ryan Hamlin, chief executive officer and co-founder of Posabit. "Transactional sales volume began accelerating again towards the end of the first quarter with March transactional volume representing the largest month in our corporate history and that trend continued into the second quarter. To further drive growth, we unified our sales, marketing and customer support teams under the leadership of our new CRO, Julie Solomon, an experienced and accomplished executive in the fintech space. We are thrilled to add an executive of Julie's calibre who will help us grow sales with existing retailers, add new retailers and expand into new markets."

Mr. Hamlin continued, "Based on our current visibility, we are reaffirming our full-year 2022 revenue guidance of between $37- and $40-million, which represents growth of more than 80 per cent at the midpoint compared to 2021."

Recent operational highlights

  • On boarded 44 of the over 100 newly booked stores since the May 3, 2022, public Q&A (question-and-answer) call;
  • Increased count of contracted stores by additional 20 per cent since the May 3, 2022, public Q&A call;
  • Increased same-store sales of top 20 locations by volume by 11 per cent (Q1 2022 versus Q1 2021);
  • Completed largest processing day in company's history and sixth consecutive year of 100-per-cent uptime on April 20, 2022;
  • Expanded leadership team with the appointment of Ms. Solomon to the role of chief revenue officer.

First quarter 2022 financial highlights:

  • Transactional sales for payment services totalled $103-million, up 61 per cent compared with $64.0-million in the first quarter of 2021.
  • Total revenue was $6.4-million, up 79 per cent compared with $3.5-million in the first quarter of 2021.
  • Gross profit was $1.5-million or 24 per cent of revenue, up 70 per cent on a dollar basis compared with $900,000 or 25.4 per cent of revenue in the first quarter of 2021.
  • Net loss was $470,000, inclusive of a $1.6-million non-cash change in fair value of derivative liabilities, compared with a net loss of $514,000, inclusive of a $322,000 non-cash change in fair value of derivative liabilities in the first quarter of 2021.
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was negative $1-million or negative 16 per cent of revenue, compared with $71,000 or 20.0 per cent of revenue in the first quarter of 2021.

Warrants and cash update

As of March 31, 2022, the company had cash of approximately $3.2-million, compared with approximately $4.4-million as of Dec. 31, 2021.

The attached table reconciles adjusted EBITDA to net loss, as reported.

2022 outlook

The company reiterates its guidance for the full year 2022, as shown in the attached table.

Conference call information

Date:  May 26, 2022

Time:  4:30 p.m. Eastern Time

Toll-free:  888-506-0062

International:  973-528-0011

Entry code:  852067

Live webcast:  A live webcast will be available.

Conference call replay information

The replay will be available approximately one hour after the completion of the live event.

Toll-free:  877-481-4010

International:  919-882-2331

Replay passcode:  45639

Replay webcast:  A replay webcast will be available.

Financial reports

Full details of the financial and operating results are described in the company's consolidated financial statements with accompanying notes. The consolidated financial statements and additional information about Posabit are available on the company's website or on SEDAR.

Non-IFRS (international financial reporting standards) measures

Adjusted EBITDA and adjusted net loss are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and that may not be comparable with similar measures presented by other companies. The company defines adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization, and is further adjusted to remove changes in fair values and expected credit losses, foreign exchange gains and/or losses, and impairments. The company defines adjusted net loss as net loss generated for the period as reported adjusted to remove changes in the fair values of derivative liabilities. The company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The company also believes that securities analysts, investors and other interested parties frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. The company cautions readers that adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results or as a substitute for cash flows from operating and investing activities.

About Posabit Systems Corp.

Posabit is a financial technology company that delivers unique and innovative, blockchain-enabled payment processing and point-of-sale systems for cash-only businesses. Posabit specializes in resolving pain points for complex, high-risk, emerging industries like cannabis with an all-in-one solution that is compliant, user friendly and utilizes top-of-the-line hardware. Posabit's unique solution provides a safer and transparent environment for merchants while creating a better overall experience for the consumer.

We seek Safe Harbor.

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