POSaBIT Systems Corp. Q3 2022 Report: Revenue $10.3M, Up 62% YoY and 26% Sequentially – POSaBIT Systems (OTC:POSAF)

POSaBIT Systems Corporation (POSAF) pbit posfInc., a leading provider of payments infrastructure to the cannabis industry, announced its financial results on Tuesday afternoon for the three and nine months ended September 30, 2022.

“The third quarter was very strong with 26% sequential growth in revenue, the first time we’ve had a $10+ million quarter. We continue to expand our business footprint and announced several strategic new partnerships this quarter that validate the strength of our platform Ryan HamlinCEO and Co-Founder of POSaBIT.

3Q/2022 financial highlights include

  • Total revenue was $10.3 million, up 62%, compared to $6.4 million in the third quarter of 2021
  • Transactional sales for payment services totaled $142.6 million, resulting in an annualized run-rate of $568 million, up 32% compared to $108 million in the third quarter of 2021.
  • Gross profit was $2.9 million or 28.0% of revenue in the third quarter of 2021, up 103% on a dollar basis, compared to $1.4 million or 22.5% of revenue.
  • Operating loss was $(7,300), which included a non-cash change in the fair value of foreign currencies of $(0.9) million, compared to operating income of $1.1 million, which included a non-cash change of $(1.9) million was. Fair value of foreign currencies in Q3 2021
  • Net loss was $(1.2) million, which included a $(1.0) million non-cash change in the fair value of derivative liabilities, as compared to a net loss of $(6.9) million, $(7.9) million non-cash change for 2021 Cash changes in the fair value of derivative liabilities in the third quarter
  • Adjusted EBITDA was $(290,000), or (2.8)% of revenue compared to $(439,000) or (6.9)% of revenue in the third quarter of 2021

balance sheet: As of September 30, 2022, the Company had cash and cash equivalents of $8.2 million compared to $4.4 million as of December 31, 2021.
“Unlike many in our industry and the current economic climate, our business is growing at an increased pace, our sales funnel is full, and our balance sheet is as strong as ever. We are increasingly optimistic about the long-term prospects of our for the business and are raising our 2022 gross profit guidance to $10.0 – $10.5 million, reiterating our revenue guidance of $37 to $40 million for the year and reiterating our prior statement that we expect positive adjusted EBITDA in 2023 Let’s hope so,” Hamlin said.

Recent Operational Highlights:

The company signed a four-year royalty licensing agreement with a large cannabis technology provider guaranteeing a minimum revenue of $20 million at approximately 100% margin.
“We continued to add new merchants at record levels and secured a royalty licensing agreement for our point-of-sale software that guarantees recurring revenues of at least $20 million at nearly 100% margin over the next four years,” said Hamlin. generate revenue.”

Also, it added Vermont as the newest state and declared live for Posabit,

  • With the launch of operations in New Jersey, Connecticut and Ohio, three new states under contract and ‘expected to go live before the end of the year’, POSaBIT is set to exceed its target of entering eight new states in 2022. Will bring in new states. 2022.
  • Launches POSaBIT 2.0, a new, completely redesigned version of POSaBIT’s point-of-sale client
  • Recently, the company entered into a Partnership and product integration with Onfleet, a last-mile delivery management software platform. POSaBIT extends payment and point-of-sale technologies to an onfleet platform to streamline integration processes and improve efficiency for cannabis customers.
  • Joined over 50 new payment and point-of-sale merchant locations in Q3
  • Ongoing discussions with over 200 potential payment and point-of-sale merchant locations, according for a press release.
  • Cash and cash equivalents at September 30, 2022 were $8.2 million

2022 Outlook: The company is raising the high end of its gross profit guidance to $10.5 million and is reiterating its revenue guidance of $37.0 – $40.0 million for full year 2022.

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Photo: Courtesy Joel Muniz Feather unsplash

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