POSaBIT Reports Strong Q3 2024 Achievements and Growth

POSaBIT Systems Corporation Reports Financial Performance

POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF), recognized as a front-runner in payments infrastructure for the cannabis industry, recently revealed its financial results for the third quarter, encompassing the period ending September 30, 2024.

Ryan Hamlin, co-founder and CEO of POSaBIT, shared their excitement about the company’s performance, underlining that adjusted EBITDA saw a remarkable increase of 53% from the previous quarter, continuing a positive trend. He stated, "We are thrilled with our advancements, particularly our new eCommerce menu capability, which has attracted nearly 40 new merchants in just the last three months. We anticipate surpassing 200 merchants utilizing this innovative tool by this time next year."

Focused Growth Strategies Ahead

Looking forward to 2025, Hamlin emphasized the company's commitment to enhancing cash reserves while increasing adjusted EBITDA and expanding their Point-of-Sale options. He expressed confidence in the potential for legislative rescheduling of cannabis and indicated that POSaBIT is well-prepared to manage billions in transactions through their payment solution. "Our long-term success and the growth of our free cash flow is at the forefront of our strategy for our investors,” he added.

Operational Highlights from the Quarter

Among several key operational accomplishments, POSaBIT officially launched its eCommerce menu to around 40 merchants, highlighting its growing footprint in the industry. Furthermore, the number of new merchants in Oregon doubled within the last six months, establishing it as the second-largest Point of Sale state for POSaBIT. Other successful operational milestones include settling litigation with a previous sales agent, migrating merchants to the new POSaBIT One platform, and rolling out the new Metrc Connect for merchants in compliant states.

Financial Overview of Q3 2024

As reported, on September 30, 2024, POSaBIT had cash reserves amounting to $900,000, slightly declining from previous quarters. Revenue totaled $4,082,537, a decrease from $4,264,005 in the previous quarter, leading to a gross profit of $1,631,891. However, operating costs escalated to $3,374,492, resulting in an operating loss of $1,742,601, a significant change from the loss of $639,027 reported in the previous quarter. The net loss reported was $(2,083,942) compared to $(453,961) previously, resulting in a substantial variance of 359%.

Adjusted Financial Metrics

POSaBIT provided insight into its adjusted financial metrics, reporting an adjusted revenue of $4,983,787 for the quarter and an adjusted gross profit of $2,711,141, which illustrates a gross profit margin of 54%. Furthermore, the adjusted EBITDA amounted to $148,128, showcasing the company's operational efficiency despite ongoing expenditures.

Future Guidance and Investor Information

Reflecting on their performance trajectory, POSaBIT anticipates generating around $20 million in annualized adjusted revenue and approximately $11 million in adjusted gross profit based on their current performance. They are committed to enhancing these figures as they progress with their business strategies.

POSaBIT will host a conference call to discuss these results and future expectations, scheduled for a later date, allowing investors to explore opportunities for engagement and inquiries directly with the management team.

The commitment of POSaBIT to transparency enhances trust, with their full financial details available in their consolidated financial statement along with comprehensive information regarding their business operations.

Frequently Asked Questions

What are the key financial highlights of POSaBIT's Q3 2024 results?

POSaBIT reported a revenue of $4,082,537 and an operating loss of $(1,742,601) for Q3 2024, with adjusted revenue reaching $4,983,787.

How much did POSaBIT increase its adjusted EBITDA?

The company achieved a 53% quarter-over-quarter increase in adjusted EBITDA, underscoring its growth momentum.

What operational advancements has POSaBIT made recently?

POSaBIT launched its new eCommerce menu for around 40 merchants and settled several operational litigations during the quarter.

What is POSaBIT's future development strategy?

POSaBIT aims to enhance cash reserves, grow its adjusted EBITDA, and broaden its Point-of-Sale and Payments services.

Where can I find more information about POSaBIT's financial performance?

Detailed financial statements and additional information about POSaBIT can be accessed on the company's official website.

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