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POSaBIT Systems Breaks Down Financial Performance In Q3 2023, Proving Resilience In Cannabis Payment Industry

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POSaBIT Systems Corporation PBIT POSAF, a pioneer in payments infrastructure in the cannabis industry, released its financial results for the third quarter of 2023, closing on September 30, 2023.


β€œSince our inception, POSaBIT has stood strong in our dedication to delivering unmatched payment and point-of-sale solutions to the cannabis industry,” declared Ryan Hamlin, co-founder and CEO of POSaBIT. β€œThis commitment was clearly shown as we quickly maneuvered through industry service interruptions, achieving a return to 75% of processed volume with an additional 100 locations expected to commence processing in the coming weeks.”


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Striking Growth in Q3 2023


  • Transactional sales for payment services totaled $157.9 million, up 11% compared with $142 million in the third quarter of 2022.
  • Total revenue were $13.6 million, up 32% compared with $10.3 million in the third quarter of 2022.
  • Gross profit stood at $3.2 million, or 23% of revenue, up 10% on a dollar basis compared with $2.9 million, or 28% of revenue, in the third quarter of 2022.
  • Operating loss was $0.26 million, inclusive of a $0.25 million non-cash change in the fair value of foreign currencies, compared with an operating loss of $7,300, inclusive of a $0.9 million non-cash change in the fair value of foreign currencies, in the third quarter of 2022.
  • Net loss was $7.5 million, inclusive of a $0.4 million non-cash change in fair value of derivative liabilities and $5.2 million of non-cash impairment of intangible assets, compared with a net loss of $1.2 million, inclusive of a $1.0 million non-cash change in fair value of derivative liabilities in the third quarter of 2022.
  • Adjusted EBITDA stood at $33 thousand, or 0% of revenue, compared with $290,000, or 3% of revenue, in the third quarter of 2022, per a press release.


Rock-Solid Financial Base


As of September 30, 2023, POSaBIT had cash and cash equivalents of $3.2 million, showing financial stability compared to $3.1 million as of December 31, 2022.


Bright Developments in PIN Debit Processing: On October 11, 2023, POSaBIT, like the rest of the industry, faced a decline in its PIN Debit Processing acceptance rate. However, the company has since made significant progress, currently processing 75% of its previous transaction volumes and continuing to expand its market share by onboarding new merchants.





Credit Facility Extension and Warrant Agreement: On November 29, 2023, POSaBIT extended the term of its credit agreement with Perga Capital Partners, LP, from three years to five years, with no other material changes. The company also agreed to extend the expiry date of all outstanding warrants held by Perga.


β€œIn harmony with our commitment to operational excellence, we recently initiated a comprehensive cost reduction program aimed at driving efficiencies across our business, with the ultimate goal of achieving profitability. Additionally, we announced our intention to apply to the list on the TSXV to facilitate ownership of our shares and improve trading liquidity. As we approach 2024, I am genuinely thrilled about the strategic initiatives and opportunities that lie ahead for POSaBIT,” Hamlin concluded.


Positive Market Action


On Thursday afternoon, POSAF shares traded 67.41% higher, reaching $0.45 per share.


Read Next:Β The Future Of Cannabis Retail Has Arrived: Check Out This Next-Gen Solution


Image by El Planteo


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