NEW YORK, NY / ACCESSWIRE / May 21, 2024 / The OLB Group, Inc., (NASDAQ:OLB), a diversified Fintech eCommerce merchant services provider and cryptocurrency mining enterprise announced today its financial results for the First Quarter ending March 31, 2024. Investors can access the complete First Quarter 10-Q.
Key Financial Results for Q1 2024 as Compared to Q1 2023
Revenue was $3.5 million for the quarter, compared to $6.6 million in the prior year's quarter.
Net loss increased to $2.9 million compared to $2.6 million in the prior year's quarter.
Adjusted EBITDA was ($1.2) vs $752 K in the prior year's quarter.
Net loss per basic and diluted common share decreased by $0.03 to ($0.14) for the quarter vs. ($0.17) in the prior year quarter.
The decrease in revenue was largely the result of the closure of the merchant portfolio that was acquired from FFS Data Corp. in the fourth quarter of 2021.The removal of the merchants is the subject of ongoing litigation with FFS Data Corp and Clear Fork Bank.
Key Business Highlights for Q1 2024
The Company regains compliance with Nasdaq minimum bid price requirement for continued listing on the Nasdaq Capital Markets.
On May 20, 2024 the Company acquired the remaining 19.9% of Black011 subsidiary, resulting in 100% ownership. The Company plans to unveil how it will rebrand the products and services in the near future.
Signed seven new minor league baseball teams as new customers for payment processing and other software applications.
Continued to increase revenue and sales, including sales representatives in the field, in Black011, wholly owned subsidiary.
The Company is engaged in ongoing litigation with FFS Data relating to a breach of contract in connection with the portfolio of merchants acquired in 2021 (the "Acquired Merchant Portfolio"), whereby the Company is making a claim to recover the purchase price it paid for the Acquired Merchant Portfolio and FFS is claiming that it should be paid the remaining portion of the purchase price of the Acquired Merchant Portfolio which was not paid because of the breaches of representations made by FFS about the underwriting of the merchants in the Acquired Merchant Portfolio. In addition, in connection with the litigation with FFS, OLB has also made a claim against Clear Fork Bank (the "Bank"), the payment processing bank for the Acquired Merchant Portfolio, for damages the Company suffered as a result of it having to cease processing transactions for the merchants underlying the Acquired Merchant Portfolio. The Bank has filed a counterclaim for fees incurred by it in connection with the transactions processed since the acquisition of the Acquired Merchant Portfolio by the Company. However, the damages claimed have been materially reduced over time due to account balancing which was not completed at the time of the counterclaim.
The DMint first quarter 2024 financial statement preparation and review has been completed. The Company continues to respond to the SEC on the registration statement related to the spinoff.
The OLB Group, Inc. is a diversified Fintech eCommerce merchant services provider and Bitcoin mining enterprise. The Company's eCommerce platform delivers cloud-based merchant services for a comprehensive digital commerce solution to merchants in all 50 states. In addition, through its ownership of the Black 011 platform, OLB Group can provide its services to an additional network of 31,600 convenient stores and bodegas in the United States. DMint, a wholly owned subsidiary of OLB Group, is engaged in the mining of Bitcoin in a facility in Tennessee utilizing sustainable hydroelectric and solar power.
All statements from The OLB Group, Inc. in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions 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 include, but are not limited to, statements concerning the impact of COVID-19 on our operations and financial condition, our ability to implement our proprietary merchant boarding and CRM system and to roll out our Omni Commerce and SecurePay applications, including payment methods, to our current merchants and the integration of our secure payment gateway with our crowdfunding platform, our ability to successfully launch a cryptocurrency mining operation and our ability to earn revenue from the new operations. While the Company's management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include statements regarding the expected revenue and income for operations to be generated by The OLB Group, Inc. For other factors that may cause our actual results to differ from those that are expected, see the information under the caption "Risk Factors" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto, as well as other public filings with the SEC since such date. The Company operates in a rapidly changing and competitive environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statement.
Contacts
OLB Group Investor Relations Rick Lutz [email protected] (212) 278-0900 Ext. 333
