OLB Group Announces Financial Results for First Quarter, 2024
The OLB Group (NASDAQ: OLB) reported its Q1 2024 financial results, showing a revenue decrease to $3.5 million from $6.6 million in Q1 2023. The net loss increased to $2.9 million from $2.6 million, and adjusted EBITDA dropped to ($1.2) million from $752K. Net loss per share improved slightly to ($0.14) from ($0.17). The revenue dip was mainly due to the closure of the merchant portfolio acquired from FFS Data Corp in 2021, which is under litigation.
Business highlights include regaining compliance with Nasdaq's listing requirements, acquiring the remaining 19.9% of Black011, and signing seven minor league baseball teams as new customers. The Company remains engaged in litigation with FFS Data and Clear Fork Bank over the acquired merchant portfolio.
- OLB regained compliance with Nasdaq minimum bid price requirement.
- Acquired the remaining 19.9% of Black011, achieving 100% ownership.
- Signed seven new minor league baseball teams as new customers for payment processing.
- Continued to increase revenue and sales in Black011, a wholly owned subsidiary.
- Revenue decreased to $3.5 million from $6.6 million year-over-year, a significant decline.
- Net loss increased to $2.9 million compared to $2.6 million in the prior year's quarter.
- Adjusted EBITDA dropped to ($1.2) million from $752K.
- Ongoing litigation with FFS Data and Clear Fork Bank related to the acquired merchant portfolio.
Insights
The financial results for OLB Group's Q1 2024 show a notable decline in revenue and an increase in net loss compared to Q1 2023. Revenue dropped to
Despite these setbacks, the company achieved compliance with NASDAQ's minimum bid price requirement, suggesting some operational resilience. Acquiring the remaining 19.9% of Black011 could lead to future revenue synergies, but the immediate financial impact is not clear. Investors should be cautious of the ongoing litigation, which could pose further financial risks.
The ongoing litigation with FFS Data Corp and Clear Fork Bank is a critical factor. The disputes revolve around the breach of contract in relation to the acquired merchant portfolio. OLB Group is seeking to recover the purchase price paid, while FFS Data and Clear Fork Bank have counterclaims for unpaid amounts and fees respectively. Legal outcomes in such cases are uncertain and can lead to significant financial burdens. Investors should monitor this closely, as adverse judgments or prolonged legal battles could further strain OLB Group's resources.
The addition of seven new minor league baseball teams as customers indicates a positive direction in OLB's payment processing and software applications segment. However, this gain needs to be weighed against the overall revenue decline. The acquisition of the remaining stake in Black011 might open new avenues for growth, but rebranding and market positioning will be important to realize potential benefits. Given the competitive landscape in the fintech and eCommerce sectors, these moves need strategic clarity to ensure they contribute meaningfully to revenue growth.
The ongoing SEC review of the DMint spinoff registration adds another layer of regulatory scrutiny, which could delay any planned strategic shifts or financial benefits expected from the spinoff.
NEW YORK, NY / ACCESSWIRE / May 21, 2024 / The OLB Group, Inc., (NASDAQ:OLB), a diversified Fintech eCommerce merchant services provider and cryptocurrency mining enterprise announced today its financial results for the First Quarter ending March 31, 2024. Investors can access the complete First Quarter 10-Q.
Key Financial Results for Q1 2024 as Compared to Q1 2023
Revenue was
Net loss increased to
Adjusted EBITDA was (
Net loss per basic and diluted common share decreased by
The decrease in revenue was largely the result of the closure of the merchant portfolio that was acquired from FFS Data Corp. in the fourth quarter of 2021.The removal of the merchants is the subject of ongoing litigation with FFS Data Corp and Clear Fork Bank.
Key Business Highlights for Q1 2024
The Company regains compliance with Nasdaq minimum bid price requirement for continued listing on the Nasdaq Capital Markets.
On May 20, 2024 the Company acquired the remaining
Signed seven new minor league baseball teams as new customers for payment processing and other software applications.
Continued to increase revenue and sales, including sales representatives in the field, in Black011, wholly owned subsidiary.
The Company is engaged in ongoing litigation with FFS Data relating to a breach of contract in connection with the portfolio of merchants acquired in 2021 (the "Acquired Merchant Portfolio"), whereby the Company is making a claim to recover the purchase price it paid for the Acquired Merchant Portfolio and FFS is claiming that it should be paid the remaining portion of the purchase price of the Acquired Merchant Portfolio which was not paid because of the breaches of representations made by FFS about the underwriting of the merchants in the Acquired Merchant Portfolio. In addition, in connection with the litigation with FFS, OLB has also made a claim against Clear Fork Bank (the "Bank"), the payment processing bank for the Acquired Merchant Portfolio, for damages the Company suffered as a result of it having to cease processing transactions for the merchants underlying the Acquired Merchant Portfolio. The Bank has filed a counterclaim for fees incurred by it in connection with the transactions processed since the acquisition of the Acquired Merchant Portfolio by the Company. However, the damages claimed have been materially reduced over time due to account balancing which was not completed at the time of the counterclaim.
The DMint first quarter 2024 financial statement preparation and review has been completed. The Company continues to respond to the SEC on the registration statement related to the spinoff.
Link to The OLB Group, Inc Q1 2024 financial results: app.ir365connect.com/htmlcontent/cik/1314196/id/1d22c652-d464-4a99-a9d3-03d64d92fb3e/file/ea0206478-10q_olbgroup.htm
About OLB Group, Inc.
The OLB Group, Inc. is a diversified Fintech eCommerce merchant services provider and Bitcoin mining enterprise. The Company's eCommerce platform delivers cloud-based merchant services for a comprehensive digital commerce solution to merchants in all 50 states. In addition, through its ownership of the Black 011 platform, OLB Group can provide its services to an additional network of 31,600 convenient stores and bodegas in the United States. DMint, a wholly owned subsidiary of OLB Group, is engaged in the mining of Bitcoin in a facility in Tennessee utilizing sustainable hydroelectric and solar power.
For more information about The OLB Group, please visit https://www.olb.com and http://investors.olb.com
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, 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, our ability to successfully launch a cryptocurrency mining operation and our ability to earn revenue from the new operations. 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.
Contacts
OLB Group Investor Relations
Rick Lutz
ir@OLB.com
(212) 278-0900 Ext. 333
SOURCE: The OLB Group, Inc.
View the original press release on accesswire.com
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