POSaBIT, a prominent provider of payments infrastructure within the cannabis sector, has disclosed its financial performance for the three-month period ending March 31, 2024.
Ryan Hamlin, co-founder and CEO of POSaBIT, commented on the company’s trajectory: “The challenges encountered in our payments division toward the end of last year and earlier this year are now behind us. POSaBIT is now positioned for sustained profitability and growth, driven by recurring cash flows from our licensing agreements, improved Adjusted Gross Profit margins, and optimized cost structures. We have expanded our payment offerings, leading to continued market share gains in our Point of Sale business.”
Despite a decline in top-line revenue, offset by reduced cost of goods sold and revenue from licensing contracts, Hamlin highlighted positive financial indicators: “In March, our annualized Adjusted Gross Profit reached approximately $10 million, with Adjusted Revenue totaling $21 million, positioning us to exit the quarter profitably.”
Financial Highlights and Operational Achievements
Recent developments include:
- Launching an updated POSaBIT Pay application for Apple and Android platforms.
- Resolving a longstanding claim with a former processing partner, resulting in a settlement.
- Achieving significant growth in Point of Sale installations, adding over 25 new locations across Washington, Oregon, Colorado, and Massachusetts in March alone.
- Finalizing banking and software requirements to support full credit card processing pending regulatory changes.
Financial Metrics
As of March 31, 2024, POSaBIT reported cash and cash equivalents of $0.9 million, compared to $1.5 million at the end of December 2023.
Key financial results for the first quarter of 2024 include:
- Revenue: $3,777,105
- Adjusted Revenue: $4,553,355
- Gross Profit: $1,489,804
- Adjusted Gross Profit: $2,266,054, with an Adjusted Gross Profit margin of 50%.
Adjusted EBITDA
Adjusted EBITDA for the period was -$801,043, reflecting adjustments for foreign exchange gains, share-based compensation, and other factors.
Run Rate and Future Outlook
POSaBIT generated Adjusted Revenue of approximately $1.8 million and Adjusted Gross Profit of approximately $0.8 million in March, indicating annualized figures of around $21.6 million and $10 million, respectively. The company expects these run rates to increase as it executes its business plan.
Conference Call and Financial Reports
POSaBIT will host a conference call on June 13, 2024, at 4:30 PM Eastern Time to discuss these results further. Details for the call and access to financial reports can be found on the company’s investor relations website.
Non-IFRS Measures and Forward-Looking Statements
The company advises that Adjusted Revenue, Adjusted Gross Profit, and Adjusted EBITDA are non-IFRS measures used for operational performance evaluation and may not be directly comparable to measures used by other entities.
This press release contains forward-looking statements regarding POSaBIT’s business strategy, product development, and market expectations. Actual results may differ materially from these statements due to various risks and uncertainties outlined in the full financial disclosures.
For more detailed financial statements and additional information, visit POSaBIT’s investor relations webpage or SEDAR+.
Disclaimer
This press release includes forward-looking statements that involve risks and uncertainties. Investors are cautioned not to rely unduly on these statements, as actual results may differ materially from expectations due to market conditions, regulatory changes, and other factors affecting POSaBIT’s business.
