Full Year 2021 Revenue of $21.3 Million, up 172%
Raises Full Year 2022 Revenue Guidance to $37 to $40 Million
POSaBIT Systems Corporation (“POSaBIT” or the “Company”) (CSE: PBIT, OTC:POSAF), a leading provider of payments infrastructure in the cannabis industry, today announced its financial results for the three and 12-months ended December 31, 2021.
“We exited 2021 with record revenue and accelerating momentum towards another year of growth and expansion,” said Ryan Hamlin, CEO and Co-founder of POSaBIT. “We exceeded the high end of our revenue guidance with $21.3 million in annual revenue and extended our record of doubling revenue each year since 2017. Transactional sales volume increased by more than 174% in 2021, a strong indication of our expanding geographic footprint as well as the accelerating adoption of electronic payment solutions across the industry. We have grown our business with limited investment delivering exponential growth and positive adjusted EBITDA in four of the last six quarters. Increasingly, cannabis merchants are gravitating towards electronic payment solutions for increased security and convenience for their customers, and our open platform gives merchants choice on how they want to build their processing infrastructure. In addition, there are a number of emerging opportunities in the cannabis market that we are eager to explore and further develop our business.”
Hamlin continued, “Looking ahead, we anticipate continued strong growth of our payments business as well as rapid expansion of our POS footprint into new states. Based on our current installed base and merchants under contract, we are raising our full year 2022 revenue guidance to between $37 and $40 million, which represents growth of more than 80% at the midpoint compared to 2021.”
Recent Operational Highlights
- Entered three new markets, Georgia, Texas and West Virginia, expanding geographic presence to 18 U.S. states across CBD and cannabis markets
- Entered CBD market with point-of-sale solution; now live in more than 20 brick and mortar CBD locations nationwide
- Entered into an agreement with dispensary chain Lume, with 32 locations in Michigan that the Company expects to be fully onboarded with POSaBIT by the end of Q2 2022
- Entered into agreements with additional large Multi-State Operators
- Completed the Company’s largest processing day in its history on 4/20/2022 with 100% uptime for the sixth 4/20 in a row
- Shipped several safety related enhancements on the POSaBIT Point of Sale to help promote a safer work environment for all store employees
Fourth Quarter 2021 Financial Highlights
- Transactional sales for Card Services totaled $102.6 million, up 96% compared with $52.4 million in the fourth quarter of 2020
- Total revenue was $6.4 million, up 110% compared with $3.1 million in the fourth quarter of 2020
- Gross profit was $1.5 million, or 23.0% of revenue, up 86% on a dollar basis compared with $797,000, or 26.1% of revenue in the fourth quarter of 2020
- Net loss was $(2.3) million, inclusive of a $(519,000) non-cash change in the fair value of derivative liabilities, compared with a loss of $(116,000), inclusive of a $(78,000) non-cash change in the fair value of derivative liabilities in the fourth quarter of 2020.
- Adjusted net loss was $(1.8) million, which excludes a $(519,000) non-cash change in fair value of derivative liabilities, compared with an Adjusted net loss of $(38,000), which excludes a $(78,000) non-cash change in fair value of derivative liabilities in the fourth quarter of 2020.
- Adjusted EBITDA was $(1.1) million, or (17%) of revenue, compared with $134,000, or 4% of revenue, in the fourth quarter of 2020
Full Year 2021 Financial Highlights
- Transactional sales for Card Services totaled $362 million, up 174% compared with $132 million in 2020
- Total revenue was $21.3 million, up 172% compared with $7.8 million in 2020
- Gross profit was $5.8 million, or 27.0% of revenue, up 232% on a dollar basis compared with $1.7 million, or 22.2% of revenue in 2020
- Net loss was $(10.6) million, inclusive of a $(9.7) million, non-cash change in fair value of derivative liabilities, compared with a net loss of $(1.3) million, inclusive of a $(78,000) non-cash change in fair value of derivative liabilities in 2020.
- Adjusted net loss was $(0.8) million, which excludes a $(9.7) million, non-cash change in fair value of derivative liabilities, compared with an Adjusted net loss of $(1.2) million, which excludes a $(78,000) non-cash change in fair value of derivative liabilities in 2020.
- Adjusted EBITDA was $(1.2) million, or (6%) of revenue, compared with $(558,000), or (7%) of revenue, in 2020
Warrants and Cash Update
As of December 31, 2021, the Company had cash of approximately $4.4 million compared to approximately $1.0 million as of December 31, 2020. This increase was partially driven by approximately $3.9 million of cash received from the exercise of 20,466,927 outstanding warrants during 2021.
For full financial results, view the source version of this release on Business Wire.
Investor Relations:
investors@posabit.com
Media Relations:
Oscar Dahl
855-767-2248
oscar@posabit.com
Management:
Ryan Hamlin
Co-founder and CEO of POSaBIT
855-767-2248
investors@posabit.com
Hayden IR
James Carbonara
(646) 755-7412
james@haydenir.com