POSaBIT Systems Corp. Report Q3 2022: Revenue of $10.3 million, up 62% YoY and 26% Sequential

POSaBIT Systems Corporation (POSAF) ​​PBIT POSAF, one of the cannabis industry's leading payment infrastructure providers, announced its financial results on Tuesday afternoon for the three and nine months ended September 30, 2022.< /p>

"The third quarter was very strong with a 26% sequential increase in revenue, making this the first time we have had a quarter over $10 million. We continue expand our business footprint and announced several new strategic partnerships this quarter that validate the strength of our platform,” said Ryan Hamlin, CEO and Co-Founder of POSaBIT.

Q3/2022 financial highlights include Total revenue was $10.3 million, up 62% from $6.4 million in the third quarter of 2021 Transactional sales for payment services totaled $142.6 million, an annual pace of $568 million, up 32% from $108 million in Q3 2021 Gross margin was $2.9 million, or 28.0% of revenue, up 103% in dollars, compared to $1.4 million, or 22.5% of revenue, in the third quarter of 2021 Operating loss was ($7,300) including non-cash change in fair value of foreign currency of ($0.9) million, compared to operating profit of $1.1 million including a non-cash change of ($1.9) million in the fair value of foreign exchange, in the third quarter of 2021 Net loss was ($1.2) million, including a non-cash change of ($1.0) million in the fair value of derivative liabilities, compared to a net loss of ($6.9 ) million, including a non-monetary variation of ($7.9) million. Cash change in fair value of derivative liabilities in the third quarter of 2021 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 players in our industry and the current economic climate, our business is growing at an accelerated pace, our sales funnel is full, and our balance sheet is stronger than it has ever been. We are growing further optimistic about the long-term outlook for our business and raise our gross profit forecast for 2022 to $10.0-10.5 million, reiterating our revenue forecast of $37-40 million for the year. and reiterating our previous statement that we expect positive Adjusted EBITDA in 2023,” Hamlin added.

Recent operational events:

The company has signed a four-year royalty licensing agreement with a major cannabis technology provider, for a guaranteed minimum revenue of $20 million with a margin of virtually 100%. "We continued to onboard new merchants at record levels and secured a royalty licensing agreement for our point-of-sale software that will generate guaranteed recurring revenue of at least $20 million with a virtually 100% margin. over the next four years," Hamlin said.

Additionally, he announced that Vermont was the latest state added and live for POSaBIT.

On track to exceed goal of entering eight new states in 2022 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, bringing POSaBIT to 10 new states in 2022. Launch of POSaBIT 2.0, a completely redesigned new 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. The integration extends POSaBIT payments and point-of-sale technologies into the Onfleet platform to streamline processes and improve efficiency for cannabis customers. Integration of more than 50 new payment points and merchant points of sale in the 3rd quarter Ongoing discussions with over 200 potential payment and point-of-sale merchant locations,