Cannabis Fintech POSaBIT Reports 69% YoY Revenue Drop, Improves Net Loss

Author: Nina Zdinjak | August 28, 2024 10:06am

POSaBIT Systems Corporation (CSE:PBIT) (OTC:POSAF) reported Tuesday its financial results for the three months ended June 30, 2024. The provider of payments and point-of-sale infrastructure in the cannabis industry disclosed revenue of $4.26 million, down 69% from the same period in 2023. Quarter-over-quarter, revenue improved 13% from $3.7 million.

"We are pleased to report adjusted EBITDA profitability and positive free cash flow in the second quarter marked by significant achievements across all key metrics," stated Ryan Hamlin, co-founder and CEO of POSaBIT. "During the second quarter, POSaBIT increased revenue and gross margins, while decreasing overall operating expenses. POSaBIT increased cash on hand by ~$200K in the second quarter. Additionally, we launched two new products in the market with our POSaBIT Pay Apple and Android application as well as our newly redesigned eCommerce Menu for our Point-of-Sale customers. Both of these have received positive momentum in the market, and we anticipate continued broad adoption in Q3 and Q4."

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Q2 Financial And Operational Highlights

• Gross profit was $2.19 million, compared to $2.8 million in the same quarter of 2023.
• Net loss amounted to $453,961, which marks an improvement of 71% from net loss of $1.57 million in the second quarter of last year.
• Operating loss was $639,027, compared to operating loss of $3.24 million in the corresponding period of 2023.
• Adjusted EBITDA was a gain of $96,721, compared to adjusted EBITDA loss of $684,064 in the first quarter of the year.
• As of June 30, 2024, the company increased cash on hand and cash equivalents to approximately $1.1 million compared to $900 thousand as of March 31, 2024.
• During the quarter, the company launched POSaBIT Pay and new Apple and Android phone app.
• It remains on track to process over $1 billion in annual gross sales in Washington State through the POSaBIT Point-of-Sale system

Hamlin continued, "As we look ahead to the next six months, our primary focus is on continued adjusted EBITDA profitability and growing our cash reserves while still achieving a steady rate of growth in our Point-of-Sale and Payments lines of business. Our commitment to our investors is to position POSaBIT for long-term, sustainable success, ensuring that we not only meet our immediate objectives but also lay a solid foundation for enduring profitability and free cash flow."

Price Action

POSaBIT shares closed Tuesday's market session 28.61% higher at $0.098 per share.

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Photo: Courtesy of Artem Avetisyan via Shutterstock

Posted In: CSE:PBIT POSAF