RYVYL Reports Q3 2024 Results
RYVYL Inc. (NASDAQ: RVYL) reported Q3 2024 financial results with revenue of $12.6 million, down from $17.5 million in Q3 2023. International revenue grew 96% year-over-year, with processing volume increasing 31% to $1,123 million. The company's gross margin slightly improved to 38.5%. Operating expenses decreased to $7.3 million from $9.0 million in Q3 2023. RYVYL updated its 2024 guidance, projecting full-year revenue between $56-60 million. The company also signed an MOU to restructure its balance sheet, addressing $19.0 million in convertible notes and $53.5 million in preferred stock.
RYVYL Inc. (NASDAQ: RVYL) ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato di $12,6 milioni, in calo rispetto ai $17,5 milioni del terzo trimestre 2023. Il fatturato internazionale è aumentato del 96% anno su anno, con un volume di transazioni che è cresciuto del 31% raggiungendo $1.123 milioni. Il margine lordo dell'azienda è leggermente migliorato, attestandosi al 38,5%. Le spese operative sono diminuite a $7,3 milioni rispetto ai $9,0 milioni del terzo trimestre 2023. RYVYL ha aggiornato le sue previsioni per il 2024, prevedendo un fatturato annuale tra $56-60 milioni. L'azienda ha anche firmato un MOU per ristrutturare il proprio bilancio, affrontando $19,0 milioni in note convertibili e $53,5 milioni in azioni privilegiate.
RYVYL Inc. (NASDAQ: RVYL) reportó los resultados financieros del tercer trimestre de 2024 con ingresos de $12.6 millones, una disminución de $17.5 millones en comparación con el tercer trimestre de 2023. Los ingresos internacionales crecieron un 96% interanual, con un volumen de procesamiento que aumentó un 31% hasta $1,123 millones. El margen bruto de la compañía mejoró ligeramente al 38.5%. Los gastos operativos disminuyeron a $7.3 millones desde $9.0 millones en el tercer trimestre de 2023. RYVYL actualizó su guía para 2024, proyectando ingresos anuales entre $56-60 millones. La compañía también firmó un MOU para reestructurar su balance, abordando $19.0 millones en notas convertibles y $53.5 millones en acciones preferentes.
RYVYL Inc. (NASDAQ: RVYL)는 2024년 3분기 재무 결과를 발표하며 수익이 $12.6 백만으로, 2023년 3분기의 $17.5 백만에서 감소했다고 전했습니다. 국제 수익은 전년 대비 96% 증가했으며, 처리량은 31% 증가하여 $1,123 백만에 도달했습니다. 회사의 총 마진은 38.5%로 약간 개선되었습니다. 운영 비용은 2023년 3분기의 $9.0 백만에서 $7.3 백만으로 감소했습니다. RYVYL는 2024년 가이던스를 업데이트하여 연간 수익이 $56-60 백만에 이를 것으로 예상하고 있습니다. 회사는 또한 $19.0 백만의 전환 사채 및 $53.5 백만의 우선주를 다루기 위해 재무 구조 조정을 위한 MOU를 체결했습니다.
RYVYL Inc. (NASDAQ: RVYL) a annoncé les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires de $12,6 millions, en baisse par rapport à $17,5 millions au troisième trimestre 2023. Le chiffre d'affaires international a augmenté de 96% d'une année sur l'autre, avec un volume de traitement en hausse de 31% atteignant $1.123 millions. La marge brute de la société s'est légèrement améliorée à 38,5%. Les charges d'exploitation ont diminué à $7,3 millions, contre $9,0 millions au troisième trimestre 2023. RYVYL a mis à jour ses prévisions pour 2024, prévoyant des revenus annuels entre $56-60 millions. La société a également signé un protocole d'accord (MOU) pour restructurer son bilan, concernant $19,0 millions en obligations convertibles et $53,5 millions en actions privilégiées.
RYVYL Inc. (NASDAQ: RVYL) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Umsatz von $12,6 Millionen, ein Rückgang von $17,5 Millionen im dritten Quartal 2023. Der internationale Umsatz ist im Vergleich zum Vorjahr um 96% gestiegen, während das Verarbeitungsvolumen um 31% auf $1.123 Millionen zugenommen hat. Die Bruttomarge des Unternehmens verbesserte sich leicht auf 38,5%. Die Betriebskosten sanken auf $7,3 Millionen von $9,0 Millionen im dritten Quartal 2023. RYVYL hat seine Prognosen für 2024 aktualisiert und erwartet einen Gesamtjahresumsatz zwischen $56-60 Millionen. Das Unternehmen hat auch ein MOU unterzeichnet, um die Bilanz umzustrukturieren, wobei $19,0 Millionen in wandelbaren Anleihen und $53,5 Millionen in Vorzugsaktien behandelt werden.
- International revenue growth of 96% YoY
- Processing volume increased 31% to $1,123 million
- Gross margin improved to 38.5% from 38.2%
- Operating expenses reduced by 18.9% to $7.3 million
- Successful completion of ACI Worldwide integration
- Revenue declined 28% YoY to $12.6 million
- North American processing volume dropped from $341M to $171M
- Adjusted EBITDA turned negative at -$1.7M vs +$0.05M in Q3 2023
- Unrestricted cash decreased to $4.3M from $12.2M
- Two European software integrations delayed to Q4 2024
Insights
RYVYL's Q3 2024 results present a mixed picture with concerning trends. Revenue declined -28% year-over-year to
- Negative adjusted EBITDA of
$1.7 million vs positive$0.05 million last year - Reduced cash position with unrestricted cash at
$4.3 million , down from$12.2 million - Significant debt burden with
$19 million note and$53.5 million preferred stock
The pending MOU to restructure debt and preferred stock could provide relief, but execution risks remain. Lowered 2024 guidance and negative EBITDA trajectory raise concerns about cash burn and future capital needs.
The strategic technology developments show promise but face execution challenges. Key positives include ACI Worldwide integration, First Data payment facilitator capabilities and Visa Direct expansion to 13 countries. The launch of enhanced NanoKard platform and NEMS Core demonstrates R&D progress. However, the postponement of two European software integrations and declining North American volumes indicate implementation difficulties. The
- Management to Host Conference Call at 4:30 pm E.T. on Thursday, November 14, 2024 -
SAN DIEGO, CA, Nov. 14, 2024 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL” or the "Company"), a leading innovator of payment transaction solutions leveraging proprietary blockchain ledger and electronic payment technology for the diverse international markets, reported its financial results for the quarter ended September 30, 2024.
RYVYL Co-founder and CEO Fredi Nisan “In the third quarter of 2024, we achieved sequential revenue growth, driven by consistently strong international performance, which offset some challenges in U.S. operations. Our International revenue grew a robust
“In North America, momentum is also building as our first licensing partner nears launch, and we’re rapidly expanding our pipeline of licensing opportunities. Our recent successes in banking-as-a-service, acquiring, and payment processing have opened up exciting new relationships poised to drive substantial volume well into 2025. We’re energized by RYVYL’s accelerating growth trajectory as we head into the fourth quarter, and we believe that 2025 will be a breakthrough year.
“Additionally, if we are able to consummate the transactions contemplated in our recently signed memorandum of understanding (MOU) for balance sheet restructuring, we believe that this will reinforce our financial position and also increase our future financial flexibility. We believe we are well-positioned to execute on our growth plans and are confident in the tremendous value we are creating for our customers, partners, and shareholders.”
Third Quarter 2024 and Recent Operating Business Development Highlights
Technology Integrations:
- Successfully completed integration with ACI Worldwide in July, enhancing processing speed and strengthening security.
- Deployed new payment software with First Data, empowering RYVYL to operate as a payment facilitator while broadening our service capabilities.
- Expanded our global reach by launching Visa Direct services in a thirteenth country, increasing our footprint in key international markets.
Product Expansion:
- Rolled out the latest generation of our flagship payment software, featuring an upgraded NanoKard platform that enables cashless and secure transactions for merchants.
- Launched Northeast Merchant Systems (NEMS) Core, specifically optimized for high-margin processing in U.S. markets, providing enhanced value for our clients.
Strategic Partnerships:
- Signed a key agreement with a processing and onboarding partner in the U.S., initially supporting 1,000 merchants with the potential for significant expansion.
Financial Summary for the Third Quarter Ended September 30, 2024
- Revenue: Third quarter 2024 revenue totaled
$12.6 million , driven largely by$9.8 million from RYVYL EU. This compares to$17.5 million in revenue during the same period in 2023, of which$5.0 million was generated by RYVYL EU. - Processing Volume: In the third quarter of 2024, processing volume rose
31% to$1,123 million , compared to$858 million in the third quarter of 2023. International operations accounted for$952 million , a significant increase from$517 million the previous year, fueled by strong growth across multiple verticals, particularly through our Independent Sales Organizations (“ISO”) and partnership network, as well as expanded offerings in global payments processing and banking-as-a-service. In North America, processing volume totaled$171 million , down from$341 million in the third quarter of 2023, reflecting the impact of shifts in a specific niche industry customer base that reduced acquiring business volume in early 2024. - Cost of Revenue: Cost of revenue was
$7.7 million in the third quarter of 2024, down from$10.8 million in the third quarter of 2023. This decrease was primarily due to reduced processing activity in North America, partially offset by higher processing volumes in the International segment. - Gross Margin: Gross margin for the third quarter of 2024 was
38.5% , a slight increase from38.2% in Q3 2023, reflecting consistent cost management and operational efficiency. - Operating Expenses: Operating expenses for the third quarter of 2024 decreased to
$7.3 million , compared to$9.0 million in the third quarter of 2023. This reduction was driven by streamlined general and administrative (G&A) costs, lower professional fees, and more focused R&D spending, reflecting our commitment to operational efficiency. - Other Expense: Other expense rose to
$2.1 million in the third quarter of 2024, up from$0.6 million in the third quarter of 2023. This increase was mainly driven by changes in debt discount accretion and adjustments in the fair value of derivative liabilities. - Adjusted EBITDA: Adjusted EBITDA for the third quarter of 2024 was negative
$1.7 million , compared to a positive$0.05 million in the third quarter of 2023, reflecting investments in growth initiatives and strategic restructuring. - Preferred Stock Conversion: In the third quarter of 2024,
$0.2 million of preferred stock was converted to common stock. There were no repayments of debt principal during the third quarter. - Cash Balances: As of September 30, 2024, cash and restricted cash totaled
$91.5 million , and unrestricted cash was$4.3 million , compared to$73.3 million and$12.2 million , respectively at December 31, 2023.
Subsequent Event – MOU to Redeem Debt and Preferred Stock
On November 11, 2024, the Company signed a non-binding MOU with the investor (the “Investor”) setting forth the terms agreed to by the Company and the Investor for the full repayment and termination of an
2024 Financial Outlook
The Company has updated its guidance to reflect the temporary delay in European software implementations, now projecting full-year 2024 revenue between
Investor Conference Call
RYVYL management will host a conference call at 4:30 p.m. Eastern Time on Thursday, November 14, 2024, to discuss the Company's financial results for the third quarter ended September 30, 2024, provide a corporate update and end with a question-and-answer session. To participate, please use the following information and submit your questions in writing prior to the call at RYVYL@lhai.com.
Date: Thursday, November 14, 2024
Time: 4:30 p.m. Eastern Time
US Dial In: 1- 877-407-4018
International Dial In: 1-201-689-8471
Webcast: Q3 2024 Webcast
Call me: Link
Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me link for instant telephone access to the event. The Call me link will be made active 15 minutes prior to scheduled start time.
A replay of the call will be available through January 14, 2025, by calling 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and entering access ID 13749031. An archived version of the webcast will also be available for 90 days on the IR section of the RYVYL website or by clicking the webcast link above. An archived version of the webcast will also be available for 90 days on the IR section of the RYVYL website or by clicking the webcast link above.
About RYVYL
RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging proprietary blockchain ledger and electronic token technology for the diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com
Cautionary Note Regarding Forward-Looking Statements
This press release includes information that constitutes forward-looking statements within the meaning 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 are based on the Company’s current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding the timing of the filing of the aforementioned periodic reports and are characterized by future or conditional words such as "may," "will," "expect," "intend," "anticipate," “believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.
By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the completion and filing of the aforementioned periodic reports will take longer than expected and that additional information may become known prior to the expected filing of the aforementioned periodic reports with the Securities and Exchange Commission (the “SEC”). Other risk factors affecting the Company are discussed in detail in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
IR Contact: David Barnard, Alliance Advisors Investor Relations, 415-433-3777, RYVYL@lhai.com
RYVYL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share data)
| September 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 4,263 | $ | 12,180 | ||||
| Restricted cash | 87,220 | 61,138 | ||||||
| Accounts receivable, net of allowance for credit losses of | 851 | 859 | ||||||
| Cash due from gateways, net of allowance of | 66 | 12,834 | ||||||
| Prepaid and other current assets | 3,313 | 2,854 | ||||||
| Total current assets | 95,713 | 89,865 | ||||||
| Non-current Assets: | ||||||||
| Property and equipment, net | 1,300 | 306 | ||||||
| Goodwill | 20,318 | 26,753 | ||||||
| Intangible assets, net | 3,676 | 5,059 | ||||||
| Operating lease right-of-use assets, net | 3,627 | 4,279 | ||||||
| Other assets | 2,677 | 2,403 | ||||||
| Total non-current assets | 31,598 | 38,800 | ||||||
| Total assets | $ | 127,311 | $ | 128,665 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,986 | $ | 1,819 | ||||
| Accrued liabilities | 7,569 | 5,755 | ||||||
| Payment processing liabilities, net | 87,542 | 76,772 | ||||||
| Current portion of operating lease liabilities | 821 | 692 | ||||||
| Other current liabilities | 1,220 | 504 | ||||||
| Total current liabilities | 100,138 | 85,542 | ||||||
| Long term debt, net of debt discount | 17,706 | 15,912 | ||||||
| Operating lease liabilities, less current portion | 3,144 | 3,720 | ||||||
| Total liabilities | 120,988 | 105,174 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred stock, Series B, par value | 1 | 1 | ||||||
| Common stock, par value | 7 | 6 | ||||||
| Additional paid-in capital | 177,750 | 175,664 | ||||||
| Accumulated other comprehensive income | 1,120 | 401 | ||||||
| Accumulated deficit | (172,555 | ) | (152,581 | ) | ||||
| Total stockholders' equity | 6,323 | 23,491 | ||||||
| Total liabilities and stockholders’ equity | $ | 127,311 | $ | 128,665 | ||||
RYVYL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Dollars in thousands, except share and per share data)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 12,606 | $ | 17,480 | $ | 41,280 | $ | 43,620 | ||||||||
| Cost of revenue | 7,749 | 10,800 | 24,643 | 25,703 | ||||||||||||
| Gross profit | 4,857 | 6,680 | 16,637 | 17,917 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Advertising and marketing | 42 | 45 | 74 | 153 | ||||||||||||
| Research and development | 815 | 1,315 | 3,027 | 4,434 | ||||||||||||
| General and administrative | 1,442 | 3,041 | 5,107 | 6,709 | ||||||||||||
| Payroll and payroll taxes | 3,251 | 2,605 | 9,670 | 8,232 | ||||||||||||
| Professional fees | 1,061 | 1,234 | 3,356 | 5,651 | ||||||||||||
| Stock compensation expense | 136 | 147 | 542 | 309 | ||||||||||||
| Depreciation and amortization | 590 | 657 | 1,826 | 1,899 | ||||||||||||
| Impairment of goodwill | - | - | 6,675 | - | ||||||||||||
| Restructuring charges | - | - | 1,636 | - | ||||||||||||
| Total operating expenses | 7,337 | 9,044 | 31,913 | 27,387 | ||||||||||||
| Loss from operations | (2,480 | ) | (2,364 | ) | (15,276 | ) | (9,470 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (309 | ) | (65 | ) | (462 | ) | (3,310 | ) | ||||||||
| Accretion of debt discount | (273 | ) | (4,183 | ) | (1,978 | ) | (9,626 | ) | ||||||||
| Changes in fair value of derivative liability | - | 6,909 | 14 | 6,580 | ||||||||||||
| Derecognition expense on conversion of convertible debt | - | (1,331 | ) | (68 | ) | (1,518 | ) | |||||||||
| Legal settlement expense | (1,598 | ) | (1,929 | ) | (1,598 | ) | (4,142 | ) | ||||||||
| Other income (expense) | 72 | (25 | ) | 608 | (1,474 | ) | ||||||||||
| Total other income (expense), net | (2,108 | ) | (624 | ) | (3,484 | ) | (13,490 | ) | ||||||||
| Loss before provision for income taxes | (4,588 | ) | (2,988 | ) | (18,760 | ) | (22,960 | ) | ||||||||
| Income tax provision | 586 | 128 | 1,214 | 138 | ||||||||||||
| Net loss | $ | (5,174 | ) | $ | (3,116 | ) | $ | (19,974 | ) | $ | (23,098 | ) | ||||
| Comprehensive income statement: | ||||||||||||||||
| Net loss | (5,174 | ) | (3,116 | ) | (19,974 | ) | (23,098 | ) | ||||||||
| Foreign currency translation gain (loss) | 1,338 | (317 | ) | 719 | (389 | ) | ||||||||||
| Total comprehensive loss | $ | (3,836 | ) | $ | (3,433 | ) | $ | (19,255 | ) | $ | (23,487 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted | $ | (0.76 | ) | $ | (0.60 | ) | $ | (3.12 | ) | $ | (4.48 | ) | ||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic and diluted | 6,812,248 | 5,231,588 | 6,408,993 | 5,160,499 | ||||||||||||
RYVYL INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
| Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (19,974 | ) | $ | (23,098 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization expense | 1,826 | 1,899 | ||||||
| Noncash lease expense | 205 | 246 | ||||||
| Stock compensation expense | 542 | 309 | ||||||
| Accretion of debt discount | 1,978 | 9,626 | ||||||
| Derecognition expense upon conversion of convertible debt | 68 | 1,518 | ||||||
| Changes in fair value of derivative liability | (14 | ) | (6,580 | ) | ||||
| Impairment of goodwill | 6,675 | - | ||||||
| Restructuring charges | 1,636 | - | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | 70 | 457 | ||||||
| Prepaid and other current assets | (460 | ) | 6,841 | |||||
| Cash due from gateways, net | 12,706 | (896 | ) | |||||
| Other assets | (318 | ) | (1,480 | ) | ||||
| Accounts payable | 1,166 | 1,962 | ||||||
| Accrued and other current liabilities | 1,943 | 1,333 | ||||||
| Accrued interest | 300 | 554 | ||||||
| Payment processing liabilities, net | 10,770 | 34,893 | ||||||
| Net cash provided by operating activities | $ | 19,119 | $ | 27,584 | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (34 | ) | (78 | ) | ||||
| Capitalized software development costs | (1,100 | ) | - | |||||
| Purchase of intangible assets | (93 | ) | - | |||||
| Net cash used in investing activities | (1,226 | ) | (78 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Repayments on long term debt | (13 | ) | (11 | ) | ||||
| Treasury stock purchases | (194 | ) | - | |||||
| Net cash used in financing activities | (207 | ) | (11 | ) | ||||
| Effects of exchange rates on cash, cash equivalents, and restricted cash | 479 | 26 | ||||||
| Net increase in cash, cash equivalents, and restricted cash | 18,165 | 27,521 | ||||||
| Cash, cash equivalents, and restricted cash – beginning of period | 73,318 | 40,834 | ||||||
| Cash, cash equivalents, and restricted cash – end of period | $ | 91,483 | $ | 68,355 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | - | $ | 2,709 | ||||
| Income taxes | $ | 759 | $ | - | ||||
| Non-cash financing and investing activities: | ||||||||
| Convertible debt conversion to common stock | $ | 200 | $ | 300 | ||||
| Convertible debt conversion to preferred stock | $ | - | $ | 4,297 | ||||
| Interest accrual from convertible debt converted to preferred stock | $ | - | $ | 2,271 | ||||
| Interest accrual from convertible debt converted to common stock | $ | - | $ | 3 | ||||
Use of Non-GAAP Financial Information
Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) is a non-GAAP measure that represents our net loss before interest expense, amortization of debt discount, income tax expense, depreciation and amortization, changes in the fair value of derivative liabilities, losses on the extinguishment and derecognition expenses on the conversion of convertible debt, non-cash stock-based compensation expense, acquisition-related expense, non-recurring provisions for credit losses on legacy matters, accounting fees related to the restatement of prior period financial statements, non-recurring costs related to the spin-off of a subsidiary, and legal costs and settlement fees incurred in connection with non-ordinary course litigation and other disputes.
We exclude these items in calculating Adjusted EBITDA because we believe that the exclusion of these items will provide for more meaningful information about our financial performance, and do not consider the excluded items to be part of our ongoing results of operations. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are: (a) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (b) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (c) Adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (d) Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and (e) other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces its usefulness as a comparative measure.
Because of these and other limitations, you should consider Adjusted EBITDA alongside our other GAAP-based financial performance measures, net income (loss) and our other GAAP financial results. The following table presents a reconciliation of Adjusted EBITDA from net loss, the most directly comparable GAAP measure, for the periods indicated:
Reconciliation of Net Loss attributable to RYVYL, Inc., to Adjusted EBITDA for the
Three and Nine Months Ended September 30, 2024 and 2023
(in thousands, except share and per share data)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net loss | $ | (5,174 | ) | $ | (3,116 | ) | $ | (19,974 | ) | $ | (23,098 | ) | ||||
| Interest expense | 309 | 65 | 462 | 3,310 | ||||||||||||
| Accretion of debt discount | 273 | 4,183 | 1,978 | 9,626 | ||||||||||||
| Income tax provision | 586 | 128 | 1,214 | 138 | ||||||||||||
| Depreciation and amortization | 590 | 657 | 1,826 | 1,899 | ||||||||||||
| EBITDA | (3,416 | ) | 1,917 | (14,494 | ) | (8,125 | ) | |||||||||
| Other non-cash adjustments: | ||||||||||||||||
| Changes in fair value of derivative liability | - | (6,909 | ) | (14 | ) | (6,580 | ) | |||||||||
| Derecognition expense on conversion of convertible debt | - | 1,331 | 68 | 1,518 | ||||||||||||
| Stock compensation expense | 136 | 147 | 542 | 309 | ||||||||||||
| Impairment of goodwill | - | - | 6,675 | - | ||||||||||||
| Restructuring charges | - | - | 1,636 | - | ||||||||||||
| Special items: | ||||||||||||||||
| Non-recurring legal settlements and ongoing matters and related legal fees | 1,598 | 2,197 | 1,598 | 5,308 | ||||||||||||
| Carryover effects of financial statement restatements in prior periods | - | - | - | 1,222 | ||||||||||||
| Non-recurring provision for credit losses on legacy matters | 1,369 | 1,994 | ||||||||||||||
| Accounting fees related to the restatement of prior period financial statements | - | - | - | 237 | ||||||||||||
| Non-recurring impairment of right of use asset | - | - | - | 100 | ||||||||||||
| Non-recurring costs of spin-off | - | - | - | 29 | ||||||||||||
| Adjusted EBITDA | $ | (1,682 | ) | $ | 52 | $ | (3,989 | ) | $ | (3,988 | ) | |||||
| Loss from operations | $ | 2,480 | ) | $ | (2,364 | ) | $ | (15,276 | ) | $ | (9,470 | ) | ||||
FAQ
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