POSaBIT FY 2020 Revenue Increases 127% to $7.8 Million, Transactional Sales Grow 155%

Rhea-AI Summary

POSaBIT Systems Corporation (OTC: POSAF) has reported impressive financial results for 2020, showcasing consistent growth in revenue and merchant base. The company achieved a 327% increase in Q4 revenue, totaling $3.06 million, with a gross profit margin surge to $796,742. For the entire year, total revenue reached $7.82 million, a 127% rise. Operationally, POSaBIT doubled its merchant base and forecasts continued growth, expecting 2021 revenues between $14.5M and $16M. The firm also formed strategic partnerships and expanded its products to meet increasing customer demand.

Positive

• Total Q4 revenue increased 327% to $3,057,600.
• Annual revenue rose 127% to $7,822,732.
• Gross profit margin for Q4 improved to $796,742 from a negative margin last year.
• Merchant base more than doubled in 2020, with expectations for similar growth in 2021.
• Formed new partnerships and expanded product offerings, enhancing market position.
• Forecast revenue for 2021 between $14.5M and $16M.

Negative

• None.

POSaBIT Systems Corporation (CSE: PBIT, OTC:POSAF), a leading financial technology company delivering unique payment processing and point-of-sale (POS) systems for cash-only businesses with a focus on the cannabis industry, is pleased to report its financial results for the year ended December 31, 2020.

“2020 was the year we proved the viability and growth potential of our company,” said Ryan Hamlin, CEO/co-founder of POSaBIT. “Not only did we once again double our revenue and merchant base on a year over year basis, but we greatly improved operating margins and concluded our second consecutive positive adjusted EBITDA quarter. We expect continued growth in 2021 as we continue to expand the POSaBIT team, develop new and improved technology to bolster our already top-of-market product offerings, and focus on geographically broadening our customer base.”

Q4 2020 Highlights (USD)

• Total processing volume increased 411% from the same period last year.

• Total revenue was $3,057,600, an increase of 327% from $716,562 for the fourth quarter of 2019.

• Gross profit margin was $796,742, a significant increase from a negative $18,483 for the fourth quarter of 2019.

Twelve Months Ended December 31, 2020 Highlights (USD)

• Total processing volume increased 155% for the twelve months ending December 31, 2020 vs. 2019

• Total revenue was $7,822,732, an increase of 127% from $3,440,100 for the year ended December 31, 2019.

• Gross profit margin was $1,735,064, an increase of 485% from $296,632 for the year ended December 31, 2019.

Operational Highlights

• More than doubled its overall merchant base in 2020 and forecast to do the same in 2021, having already added multiple sizable retail chains to the customer base, representing some of the largest retail operators in the country.

• Added multiple offerings to its suite of payment products for dispensaries, providing entry into new markets and giving merchants increased flexibility and choice in how they engage with POSaBIT.

• Formed partnerships with numerous industry technology partners to bolster its point-of-sale offering, again providing flexibility to merchants and keeping its product at the very top of the market.

• Significantly expanded the internal team while achieving profitability, allowing it to keep pace with increased demand for its products while continuing to innovate.

Subsequent Events

• On February 23, 2021, the Company completed a strategic investment private placement of units, receiving gross proceeds of $2 million USD.

• On March 30, 2021, the Company announced a partnership with I Heart Jane, the premier online ordering and menu platform for marijuana retailers.

• On April 21, 2021, the Company announced the appointment of Don Tringali to the Board of Directors. Mr. Tringali previously served as Chairman of the Board of Directors of two NASDAQ listed companies.

2021 Outlook

• POSaBIT provides the following revenue and gross margin guidance for the full year 2021.
  • 2021 Total Revenue $14.5M - $16M
  • Gross Profit Margin 28% - 32%

• POSaBIT plans to expand beyond the current 14 US states and launch operations in Canada as well as add 5 to 8 new states fully supported with POSaBIT Payments and POSaBIT Point of Sale.

Earnings Conference Call

In conjunction with this release, POSaBIT CEO Ryan Hamlin will conduct an earnings call on Thursday, May 6. Details below:

Date: May 6, 2021
Time: 4:30pm Eastern Time
Toll-Free: 888-267-3612
International: 973-528-0089
Entry Code: 484115
Live Webcast: https://www.webcaster4.com/Webcast/Page/2708/41242

Conference Call Replay Information:

The replay will be available approximately 1 hour after the completion of the live event.

Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 41242

Financial Reports

Full details of the financial and operating results for 2020 are described in the company’s consolidated financial statements with accompanying notes. The consolidated financial statements and additional information about POSaBIT are available on the company’s website at www.posabit.com/investor-relations or on SEDAR at www.sedar.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding our business strategy, product development, timing of product development, events and courses of action.

Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate,” “objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to” or similar expressions suggesting future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding our expenses, sales and operations; our future customer concentration; our anticipated cash needs and our estimates regarding our capital requirements and our need for additional financing; our ability to anticipate the future needs of our customers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which POSaBIT will operate in the future, including the demand for our products, anticipated costs and ability to achieve goals. Although we believe that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expres

FAQ

What were the financial results for POSaBIT in 2020?

POSaBIT reported a total revenue of $7.82 million for 2020, a 127% increase from the previous year.

How much did POSaBIT's revenue grow in Q4 2020?

In Q4 2020, POSaBIT's revenue grew by 327%, reaching $3,057,600.

What is POSaBIT's forecast for revenue in 2021?

POSaBIT forecasts its revenue for 2021 to be between $14.5 million and $16 million.

What percentage did POSaBIT's gross profit margin increase in 2020?

POSaBIT's gross profit margin increased by 485% in 2020, totaling $1,735,064.

How did POSaBIT expand its merchant base in 2020?

POSaBIT doubled its merchant base in 2020 and expects similar growth in 2021.