Company increases year-over-year annual revenue from $9.77M to
$16.71M
Merchant Processing Transaction volume ends year on $1.3B
annualized run rate
The OLB Group, Inc. ("OLB," “we,” “us,” “our,” or the
"Company"), a diversified Fintech eCommerce merchant services
provider and Bitcoin cryptocurrency mining enterprise, announced
its year end 2021 financial results.
We are a diversified FinTech company and a payment facilitator
that, through our subsidiaries, focuses on a suite of products in
the merchant services and payment facilitator verticals. These
services include electronic payment processing, cloud-based
multi-channel commerce platform solutions for small to medium sized
businesses and crowd funding services. The Company is focused on
providing these integrated business solutions to merchants
throughout the United States through three wholly-owned
subsidiaries, eVance, Inc., Omnisoft.io, Inc., and CrowdPay.us,
Inc.
In July 2021, we formed DMINT, Inc., a wholly owned subsidiary
(“DMint”) to operate in the cryptocurrency mining industry. DMint
has initiated the first phase of the cryptocurrency mining
operation by placing purchase orders for data centers and
ASIC-based Antminer S19J Pro mining computers specifically
configured to mine Bitcoin. As a result of this newly formed
business, the Company began to report its operational results in
two segments – “Fintech Services” and “Cryptocurrency Business” in
the fourth quarter of 2021.
Financial Highlights
Following its acquisition of a portfolio of merchants in the
Cannabidiol (or “CBD”) industry, along with other merchants
utilizing financial transaction processing services during the
fourth quarter of 2022, the Company's merchant services annualized
transaction volume run rate has reached $1.35 Billion in
transaction volume as a result of approximately 28.5 million
transactions. This increased number of transactions resulted in an
increase in revenue of 27.3% in the fourth quarter of 2022 compared
with the same period in 2021.
For the year ended December 31, 2021, we had total revenue of
$16,710,759 compared to $9,766,621 of revenue for the year ended
December 31, 2020, an increase of $6,944,138 or 71.1%. The Fintech
Services segment reported $16,406,755 of revenue and the
Cryptocurrency Business segment reported $304,004 of revenue. We
earned $15,810,626 in transaction and processing fees, $131,802 in
merchant equipment rental and sales and $464,327 in other revenue
during the year ended December 31, 2021, compared to $8,358,459 in
transaction and processing fees, $88,538 in merchant equipment
sales and $1,319,624 in other revenue during the year ended
December 31, 2020.
For the year ended December 31, 2021, we had processing and
servicing costs of $13,480,212 compared to $6,003,931 of processing
and servicing costs for the year ended December 31, 2020.
Processing and servicing costs increased by $7,4767,281 or
124.5%.
General and administrative expenses (“G&A”) for the year
ended December 31, 2021 was $2,387,416 compared to $1,520,362 for
the year ended December 31, 2020, an increase of $867,054 or 57%.
In the current period we had increases of our contracted services
of approximately $415,000 and computer and internet expense of
approximately $197,000. The Fin tech Services segment attributed to
$1,818,347 of GSA and the Crypto currency Business segment
attributed to $569,069 of GSA during the year ended December 31,
2021.
Our net loss for the year ended December 31, 2021 was
($4,978,358) compared to ($1,776,727) for the year ended December
31, 2020. We had an increase in our net loss of $3,201,631 because
of the expenses relating to the commencement of our Crypto currency
Business segment and for the reasons discussed above.
Adjusted EDICTAL for the year ended December 31, 2021 was
($2,509,671). The adjustments include $461,051 for stock-based
compensation, $116,737 of interest expense and $1,890,899 of
depreciation and amortization.
For the three months ended December 31, 2021, we had total
revenue of $8,826,862 compared to $2,226,404 of revenue for three
months ended December 31, 2020, an increase of $607,169 or 27.3%.
The Fin tech Services segment reported $8,522,858 of revenue and
the Crypto currency Business segment reported $304,001 of revenue.
We earned $8,374,309 in transaction and processing fees, $33,612 in
merchant equipment rental and sales and $114,937 in other revenue
during the three months ended December 31, 2021, compared to
$2,090,264 in transaction and processing fees, $18,507 in merchant
equipment sales and $117,633 in other revenue during the three
months ended December 31, 2020.
For the three months ended December 31, 2021, we had processing
and servicing costs of $7,610,473 compared to $1,547,274 of
processing and servicing costs for the three months ended December
31, 2020. Processing and servicing costs increased by $551,471 or
35.6%.
GSA expense for the three months ended December 31, 2021 was
$977,460 compared to $392,335 for the three months ended December
31, 2020, an increase of $585,125 or 149.1%. The Fin tech Services
segment attributed to $117,988 of GSA and the Crypto currency
Business segment attributed to $480,967 of GSA during the year
ended December 31, 2021.
Key Highlights for 2021
- Annual revenue increased to $16.71 million in 2021 from $9.77
million in 2020 (71% increase)
- $1.3B Million in transaction volume annualized run rate ending
2021
- 4.9 million transactions were processed in 2021
- Merchant services business increased $16.4 million in 2021
compared with 2020 (67.8% increase)
- Acquired exclusive natural gas purchasing rights for use in
Crypto currency Business Segment’s Bicorn mining operations
- Acquired 1000 ASCII Biotin mining computers
- Acquired merchant portfolio and processing agreements adding
1,500 new merchants and customers
- Company continues to be debt free
- Raised approximately $31M in capital
- Established Crypto currency Business segment as a stand-alone
business relating to the Company’s Biotin mining operation.
- Completed build out of two Biotin mining locations in Bradford,
PA
- Enabled existing eCommerce applications to include crypto
currency payment capabilities
To see a complete version of the Company’s Annual Report on Form
10-K, please click on the following link:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001314196/000121390022015583/f10k2021_theolbgroup.htm
To see the Company’s response to frequently asked questions,
please click on the following link:
https://olb.com/investors-faq/
For more information about The LOB Group, please visit
www.olb.com or www.olb.com/investors-data.
Future OLB Press Releases and Updates
Interested investors or shareholders can be notified of future
Press Releases and Industry Updates by e-mailing
investorrelations@OLB.com.
About The OLB Group, Inc.
The OLB Group, Inc. is a diversified Fintech eCommerce merchant
services provider and Bitcoin crypto mining enterprise. The
Company's eCommerce platform delivers cloud-based merchant services
for a comprehensive digital commerce solution to over 10,500
merchants in all 50 states. DMint, a wholly owned subsidiary of OLB
Group, is engaged in the mining of Bitcoin utilizing sustainable
natural gas with an initial deployment of efficient 1,000
ASIC-based S19j Pro 96T mining computers projected by end of 2021.
For more information about solutions, services, or to find a
reseller, please visit www.olb.com. Investor information is
available at www.olb.com/investors-data and www.dmint.com.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, Net
Loss before Interest, Taxes, Depreciation and Amortization
(“EBITDA”) and adjusted EBITDA, as defined in Regulation G. The
Company reports its financial results in compliance with GAAP, but
also provides additional non-GAAP measures of its operating
results. The Company defines EBITDA as net loss, before interest,
taxes, depreciation and amortization. The Company defines adjusted
EBITDA as EBITDA, as defined above, adding back non-cash stock
option costs and certain non-recurring items, such as costs
incurred with completing acquisitions. These measures may not be
comparable to similarly titled measures reported by other
companies. Management believes the use of EBITDA and adjusted
EBITDA is appropriate to enhance the understanding by the Company’s
investors of its historical performance through use of a metric
that seeks to normalize earnings.
Safe Harbor Statement
All statements from The OLB Group, Inc. in this news release
that are not based on historical fact are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and the provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements include, but are not limited to, statements concerning
the impact of COVID-19 on our operations and financial condition,
the CBD and related products marketplace, our ability to implement
our proprietary merchant boarding and CRM system and to roll out
our Omni Commerce and SecurePay applications, including payment
methods, to our current merchants and the integration of our secure
payment gateway with our crowdfunding platform. While the Company’s
management has based any forward-looking statements contained
herein on its current expectations, the information on which such
expectations were based may change. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of risks, uncertainties, and other
factors, many of which are outside of our control, that could cause
actual results to materially differ from such statements. Such
risks, uncertainties, and other factors include statements
regarding the expected revenue and income for operations to be
generated by The OLB Group, Inc. For other factors that may cause
our actual results to differ from those that are expected, see the
information under the caption “Risk Factors” in the Company’s most
recent Form 10-K and 10-Q filings, and amendments thereto, as well
as other public filings with the SEC since such date. The Company
operates in a rapidly changing and competitive environment, and new
risks may arise. Accordingly, investors should not place any
reliance on forward-looking statements as a prediction of actual
results. The Company disclaims any intention to, and undertakes no
obligation to, update or revise any forward-looking statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220329005369/en/
Rick Lutz The OLB Group - Investor Relations
investorrelations@olb.com (212) 278-0900 EXT: 333
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