TORONTO & SEATTLE--(BUSINESS WIRE)--POSaBIT Systems Corporation (CSE: PBIT), a leading financial technology company delivering unique payment processing and point-of-sale (POS) systems for predominantly cash run businesses with a focus on the cannabis industry, is pleased to report its financial results for the three and six months ended June 30, 2020.
POSaBIT experienced significant revenue growth during the second quarter of 2020. Quarter over quarter revenues (Q2 2020 vs. Q1 2020) grew by 58% and over 83% compared to the same quarter last year.
"We are exceedingly pleased with our strong Q2 results, a result of impressive sales growth during COVID-19 and the continued onboarding of merchants to our new Point of Sale platform," said Ryan Hamlin, co-founder and CEO of POSaBIT. "POSaBIT is on track for a breakthrough year in both sales and profits. We continue to see a high rate of growth in our business due to an increased interest and adoption, across the industry, in our POSaBIT cashless payments. We are on track to triple the amount of transactional sales we process year over year and double our annual revenue.”
Second Quarter 2020 Financial Summary
Transactional Sales
Transactional sales totaled $26.7 million, representing an increase of 160% compared with $10.3 million in first quarter 2019.
Revenue
Total revenue was $1.49 million, up 83% compared with $817 thousand in first quarter 2019.
Gross Profit
Gross profit was $292 thousand, up 135% compared with a gross profit of $124 thousand in first quarter 2019.
Loss
Loss was $242 thousand, or a loss of $0.00 per basic and diluted share, compared with a loss of $2.46 million, or a loss of $0.03 per basic and diluted share in first quarter 2019.
Financial Reports
Full details of the financial and operating results for the second quarter 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.
Financial Outlook
POSaBIT provides guidance based on current market conditions and expectations. Please refer to the comments below regarding forward-looking statements.
POSaBIT updated its full year 2020 outlook to be:
- Revenue to grow in the range of approximately 75% to 95% year over year
- Reach profitability in third quarter 2020
- Transactional sales to grow over 200% to approximately USD $135 million, assuming the average store processes between USD $350,000 and USD $600,000 per year through the POSaBIT service
- Cost of sales in the range of $3.5 million to $4.0 million
- Expansion of POSaBIT’s footprint to end 2020 in 15 to 20 recreational and medical states.
About POSaBIT
POSaBIT (CSE: PBIT) is a financial technology company that delivers unique and innovative, blockchain-enabled payment processing and point-of-sale systems for cash-only businesses. POSaBIT specializes in resolving pain points for complex, high-risk, emerging industries like cannabis with an all-in-one solution that is compliant, user-friendly and utilizes top-of-the-line hardware. POSaBIT’s unique solution provides a safer and transparent environment for merchants while creating a better overall experience for the consumer. For additional information, visit: www.posabit.com.
