POSaBIT Records $1.8M Loss Despite Spike in Revenue

Cannabis payment provider POSaBIT Systems Corp. (CSE: PBIT) (OTC: POSAF) posted a $1.8 million loss for the second quarter of 2023, despite increasing its revenue by 64% year-over-year to $13.4 million.

Revenues were also up sequentially from the first quarter of the year, when POSaBIT pulled in $11.5 million for the quarter ended March 31 but lost $3 million, a stark contrast to last year, when the company posted an $8 million profit.

CEO Ryan Hamlin, however, said the most recent three months were a “record quarter” for the business based on its increasing revenue and client base, despite a torpedoed merger with Akerna.

“We saw the cannabis industry begin to stabilize as we exited Q2. This is driving increasing demand for our services from both new and existing customers, resulting in an increase in same store revenue growth,” Hamlin said in a statement. “During a very interesting period in the cannabis industry, POSaBIT remains in a strong position as a leader for point of sale and payments solutions.”

The company reaffirmed its 2023 financial guidance and expects to pull in between $58.5 million and $61.5 million in revenue for the year, with gross profit of $12.5 million-$14.5 million.

As of June 30, POSaBIT had $4 million in the bank, up from $3.1 million in December, and $13.5 million in total liabilities.

During the quarter, POSaBIT also integrated the assets it acquired from tech competitor Hypur earlier this year and continued processing PIN debit transactions with no interruptions despite the Mastercard shutdown.

The company also announced several promotions, including:

Matt Fowler to chief financial officer and secretary effective Aug. 24, in addition to his role as CFO of subsidiary POSaBIT US Inc.
Chris Baker to chief operating officer for POSaBIT US, effective Aug. 9.
Michael J. Sinnwell Jr. to chief product officer for POSaBIT US. effective Aug. 9.
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