GreenBox POS (NASDAQ: GBOX) ("GreenBox", the "Company"), an
emerging financial technology company leveraging proprietary
blockchain security and token technology to build customized
payment solutions, has provided its financial results for the
second quarter ended June 30, 2021.
Second Quarter
2021 and Subsequent
Operational Highlights:
- Revenue of $6.4 million in the
second quarter of 2021, an increase of 178% as compared to $2.3
million in the same year-ago quarter
- Processed a company quarterly
record of $440 million in transaction volume
- Deployed our smart contract
technology stablecoin, branded as COYNI, in a pilot launch and
deposited $5 million in initial seed capital with Signature Bank
- Engaged Armanino to provide
real-time attestation of the token collateral
- Announced the acquisition of
Transact Europe, currently pending regulatory approval. Transact
Europe is a Principal Visa and Mastercard Member with key licensing
assets and significant processing volume portfolio
- Announced the planned spin off of
our Coin Platform, Coyni, and implementation of a special dividend
series to be issued in two parts to GreenBox common
stockholders
- Acquired Northeast Merchant
Services, a provider of comprehensive merchant credit card
processing services bringing over 700 potential new retail merchant
accounts and a highly coveted BIN
- Closed the accretive acquisition of
ChargeSavvy LLC, a financial technology company specializing in
retail payment processing and POS systems with an attractive book
of processing volume
- Selected by Territorial Bank of
American Samoa (TBAS) to provide customized payment solutions
software to consumers and businesses throughout American Samoa for
financial transactions
- Announced a partnership with
isMedia Co. Ltd to jointly develop a blockchain-based NFT
(non-fungible token) platform
- GBOX added to Russell 2000® and
Russell Microcap Indexes
Management Commentary
“GreenBox continued to make excellent progress
towards execution of its long-term growth strategy during the
second quarter 2021. With the deployment of Coyni, a smart contract
stablecoin technology, we launched a significant upgrade to our
payment solutions capabilities for the second consecutive quarter,”
said Fredi Nisan, Chief Executive Officer of GreenBox POS. “Our
Generation 3 technology, launched in Q1 2021, continued to reap
rewards as we processed a company record $440 million during the
second quarter.
We continued to grow our core blockchain
processing business organically while also making strategic
acquisitions such as the purchase of Northeast Merchant Services,
ChargeSavvy, and most recently, the pending purchase of Transact
Europe. These acquisitions are part of our strategy to acquire
crucial licensing assets and expand our footprint globally while
simultaneously opening avenues for us to drive adoption of our Coin
platform. Acquisitions will continue to play a vital role in our
strategy to quickly become a large player in the financial payments
space.
Looking ahead, we look to rapidly drive adoption
of Coyni to generate value for our announced spinoff of that
business. By continuing to expand our core blockchain business
using our extensive ISO and agent network and through selective
acquisitions, we believe we are well positioned to do so. In
announcing a special dividend series based on the planned spin-off
of our stablecoin platform asset, we demonstrate our commitment to
rewarding our long-term shareholders. We are encouraged with our
progress as we continue to strive towards disrupting the digital
payments space globally and look forward to continuing to execute
our long-term vision,” concluded Nisan.Second
Quarter 2021
Financial Summary
- Revenues in the second quarter of
2021 were $6.4 million, an increase of 178% compared to revenues of
$2.3 million in the same quarter a year ago. Sequentially, revenues
increased by 36% when compared to $4.7 million in the first quarter
of 2021. The increase in revenue was primarily due to increased
processing volume.
- Gross profit in the second quarter
of 2021 was $5.1 million, or 79.5% of total revenue, compared to
gross profit of $0.9 million, or 38.4% of total revenue, in the
same quarter a year ago. Sequentially, gross profit increased 59%
from $3.2 million, or 66.4% of total revenue, in the first quarter
of 2021. The increase in gross profit was primarily due to increase
processing volume efficiency from Generation 3 technology
- Total operating expenses in the
second quarter of 2021 totaled $5.1 million, compared to $1.1
million in the same quarter a year ago, and $12.5 million in the
first quarter of 2021. The year over year increase was due
primarily to an increase in stock compensation for services and
employees as well as increases in research and development and
payroll.
- The Company’s net income in the
second quarter of 2021 was $0.0 million, or $0.00 per basic and
diluted share, compared to net income of $4.9 million, or $0.03 per
basic and diluted share, in the same quarter a year ago. Net income
in the first quarter of 2021 was ($13.3) million or ($0.38) per
basic and diluted share. The sequential increase was primarily due
to an increase in processing volume and revenue and decrease in
non-cash stock-based compensation expenses related to the public
offering and Nasdaq uplisting.
- Adjusted Net Income, a non-GAAP
financial measure, for the second quarter 2021 was $2.0
million.
Second Quarter
2021 Results Conference
Call
Management will host a conference call on
Thursday, August 12, 2021 at 4:30 p.m. Eastern time to discuss
GreenBox’s second quarter 2021 financial results. The call will
conclude with Q&A from participants. To participate, please use
the following information:
Q2 2021 Conference
Call and WebcastDate: Thursday, August 12, 2021Time: 4:30
p.m. Eastern timeUS Dial
In: 1-800-945-8198International Dial
In: 1-212-231-2900Conference ID:
21996558Webcast:
http://public.viavid.com/index.php?id=146243
Please dial in at least 10 minutes before the
start of the call to ensure timely participation.
A playback of the call will be available through
November 12, 2021. To listen, call 1-844-512-2921 within the United
States or 1-412-317-6671 when calling internationally and enter
replay pin number 21996558 A webcast will also be available for 30
days on the IR section of the GreenBox POS website or by clicking
the webcast link above.
About GreenBox POS
GreenBox POS (NASDAQ: GBOX) is an emerging
financial technology company leveraging proprietary blockchain
security to build customized payment solutions. The Company's
applications enable an end-to-end suite of turnkey financial
products with fraud detection technology, improving the efficiency
of handling large-scale commercial processing volumes for its
merchant clients. For more information, please visit the Company's
website at www.greenboxpos.com
Use of Non-GAAP Financial
Information
This earnings release discusses Adjusted Net
Income which is not a financial measure as defined by GAAP. This
financial measure is presented as a supplemental measure of
operating performance because we believe it can aid in, and
enhance, the understanding of our financial results. In addition,
we use Adjusted Net Income as a measure internally for budgeting
purposes.
We define Adjusted Net Income as net income
(loss) before (1) interest expense (income), net, (2) income tax
expense (benefit), (3) depreciation, (4) amortization of intangible
assets, (5) stock-based compensation expense, plus (6) from time to
time, certain other items which are specific transaction-related
items. Other companies may define or calculate this measure
differently, limiting the usefulness as a comparative measure.
Because of this limitation, this non-GAAP financial measure should
not be considered in isolation or as substitute for or superior to
performance measures calculated in accordance with GAAP and should
be read in conjunction with the financial statement tables. See
also Reconciliation of Net Income (Loss) attributable to GreenBox
POS, Inc., to Adjusted Net Income in the table below.*
Forward-Looking Statements Disclaimer
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. All forward-looking statements are inherently uncertain as
they are based on current expectations and assumptions concerning
future events or future performance of the Company. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which are only predictions and speak only as of the
date hereof. In evaluating such statements, prospective investors
should review carefully various risks and uncertainties identified
in this release and matters set out in the Company's SEC filings.
These risks and uncertainties could cause the Company's actual
results to differ materially from those indicated in the
forward-looking statements.
Investor Relations ContactMark SchwalenbergMZ
Group - MZ North
America312-261-6430GBOX@mzgroup.uswww.mzgroup.us
GreenBox POSConsolidated
Balance SheetsJune
30,
2021 and
December
31,
2020(unaudited)
|
|
June 30, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
29,796,748 |
|
|
$ |
- |
|
Restricted cash |
|
|
- |
|
|
|
1,832,735 |
|
Accounts receivable, net of allowance for bad debt of $0 and $0,
respectively |
|
|
75,444 |
|
|
|
10,000 |
|
Accounts receivable from fines
and penalties from merchants, net of allowance for bad debt of
$6,665,031 and $6,665,031, respectively |
|
|
2,789,230 |
|
|
|
2,789,230 |
|
Cash due from gateways, net |
|
|
15,759,069 |
|
|
|
7,303,949 |
|
Prepaid and other current assets |
|
|
2,028,552 |
|
|
|
70,130 |
|
Total current assets |
|
|
50,449,043 |
|
|
|
12,006,044 |
|
|
|
|
|
|
|
|
|
|
Non-current
Assets: |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
113,836 |
|
|
|
57,264 |
|
Other assets |
|
|
180,636 |
|
|
|
81,636 |
|
Goodwill |
|
|
2,305,394 |
|
|
|
- |
|
Intangible Assets, net |
|
|
257,748 |
|
|
|
- |
|
Operating lease right-of-use assets, net |
|
|
832,636 |
|
|
|
117,795 |
|
Total non-current assets |
|
|
3,690,250 |
|
|
|
256,695 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
54,139,293 |
|
|
$ |
12,262,739 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
520,478 |
|
|
$ |
210,094 |
|
Other current liabilities |
|
|
135,991 |
|
|
|
68,138 |
|
Payment processing liabilities, net |
|
|
4,295,519 |
|
|
|
10,199,956 |
|
Note payable, payroll protection plan loan |
|
|
272,713 |
|
|
|
272,713 |
|
Convertible debt, net of debt discount of $0 and $2,993,408,
respectively |
|
|
- |
|
|
|
856,592 |
|
Current portion of operating lease liabilities |
|
|
431,487 |
|
|
|
120,110 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
5,656,188 |
|
|
|
11,727,603 |
|
Long term liabilities |
|
|
149,900 |
|
|
|
149,900 |
|
Operating lease liabilities, less current portion |
|
|
401,744 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
6,207,832 |
|
|
|
11,877,503 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity: |
|
|
|
|
|
|
|
|
Common stock, par value $0.001, 82,500,000 shares authorized,
shares issued and outstanding of 42,236,219 and 30,710,646,
respectively |
|
|
42,327 |
|
|
|
30,711 |
|
Additional paid-in capital |
|
|
73,916,018 |
|
|
|
12,079,074 |
|
Accumulated deficit |
|
|
(25,093,541 |
) |
|
|
(11,724,549 |
) |
Less: Treasury stock, at cost; 90,000 and 0 shares,
respectively |
|
|
(933,343 |
) |
|
|
- |
|
Total stockholders'
equity |
|
|
47,931,461 |
|
|
|
385,236 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholder's equity |
|
$ |
54,139,293 |
|
|
$ |
12,262,739 |
|
GreenBox POSConsolidated
Statements of OperationsFor
the Three Months
and Six Months Ended
June
30,
2021 and
2020(unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
6,379,179 |
|
|
$ |
2,292,859 |
|
|
$ |
11,128,620 |
|
|
$ |
2,480,064 |
|
Cost of revenue |
|
|
1,323,480 |
|
|
|
1,411,683 |
|
|
|
2,917,251 |
|
|
|
1,658,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
5,055,699 |
|
|
|
881,176 |
|
|
|
8,211,369 |
|
|
|
821,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and marketing |
|
|
22,605 |
|
|
|
15,384 |
|
|
|
47,330 |
|
|
|
27,269 |
|
Research and development |
|
|
808,210 |
|
|
|
267,686 |
|
|
|
1,461,591 |
|
|
|
554,234 |
|
General and administrative |
|
|
298,030 |
|
|
|
101,523 |
|
|
|
864,225 |
|
|
|
234,292 |
|
Payroll and payroll taxes |
|
|
1,061,929 |
|
|
|
428,758 |
|
|
|
1,621,130 |
|
|
|
842,958 |
|
Professional fees |
|
|
867,472 |
|
|
|
293,622 |
|
|
|
1,325,224 |
|
|
|
507,593 |
|
Stock compensation for employees |
|
|
1,291,887 |
|
|
|
12,130 |
|
|
|
2,089,500 |
|
|
|
12,130 |
|
Stock compensation for services |
|
|
726,933 |
|
|
|
- |
|
|
|
10,180,758 |
|
|
|
- |
|
Depreciation and amortization |
|
|
14,244 |
|
|
|
5,716 |
|
|
|
20,253 |
|
|
|
11,092 |
|
Total operating expenses |
|
|
5,091,310 |
|
|
|
1,124,819 |
|
|
|
17,610,011 |
|
|
|
2,189,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
operations |
|
|
(35,611 |
) |
|
|
(243,643 |
) |
|
|
(9,398,642 |
) |
|
|
(1,368,492 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
- |
|
|
|
(30,659 |
) |
|
|
(594,258 |
) |
|
|
(319,249 |
) |
Interest expense - debt discount |
|
|
- |
|
|
|
(8,342 |
) |
|
|
(2,993,408 |
) |
|
|
(38,418 |
) |
Derivative expense |
|
|
- |
|
|
|
(4,373 |
) |
|
|
- |
|
|
|
(4,373 |
) |
Changes in fair value of derivative liability |
|
|
- |
|
|
|
2,619,250 |
|
|
|
- |
|
|
|
(1,203,135 |
) |
Gain from extinguishment of convertible debt |
|
|
- |
|
|
|
2,612,246 |
|
|
|
- |
|
|
|
2,630,795 |
|
Merchant liability settlement |
|
|
- |
|
|
|
- |
|
|
|
(364,124 |
) |
|
|
- |
|
Other income or expense |
|
|
(3,949 |
) |
|
|
(2,177 |
) |
|
|
(18,560 |
) |
|
|
3,334 |
|
Total other expense, net |
|
|
(3,949 |
) |
|
|
5,185,945 |
|
|
|
(3,970,350 |
) |
|
|
1,068,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before provision
for income taxes |
|
|
(39,560 |
) |
|
|
4,942,302 |
|
|
|
(13,368,992 |
) |
|
|
(299,538 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
(39,560 |
) |
|
$ |
4,942,302 |
|
|
$ |
(13,368,992 |
) |
|
$ |
(299,538 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.00 |
) |
|
$ |
0.17 |
|
|
$ |
(0.43 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
31,078,605 |
|
|
|
28,983,034 |
|
|
|
31,208,102 |
|
|
|
29,492,180 |
|
GreenBox
POSConsolidated Statements of Cash
FlowsFor the Six
months ended June
30,
2021 and
2020(unaudited)
|
|
Six Months Ended June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(13,368,992 |
) |
|
$ |
(299,538 |
) |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
13,338 |
|
|
|
11,092 |
|
Amortization expense |
|
|
6,915 |
|
|
|
- |
|
Noncash lease expense |
|
|
(1,720 |
) |
|
|
(839 |
) |
Stock compensation expense |
|
|
2,089,500 |
|
|
|
12,130 |
|
Common stocks issued for professional fees |
|
|
10,180,758 |
|
|
|
- |
|
Stock compensation issued for interest |
|
|
594,258 |
|
|
|
- |
|
Interest expense - debt discount |
|
|
2,993,408 |
|
|
|
38,418 |
|
Derivative expense |
|
|
- |
|
|
|
4,373 |
|
Gain (loss) on extinguishment of debt |
|
|
- |
|
|
|
(2,630,795 |
) |
Changes in fair value of derivative liability |
|
|
- |
|
|
|
1,203,135 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Other receivable, net |
|
|
(65,444 |
) |
|
|
47,714 |
|
Prepaid and other current assets |
|
|
(1,958,422 |
) |
|
|
(33,341 |
) |
Cash due from gateways, net |
|
|
(8,455,120 |
) |
|
|
3,502,426 |
|
Other assets |
|
|
(99,000 |
) |
|
|
- |
|
Accounts payable |
|
|
239,131 |
|
|
|
(33,597 |
) |
Other current liabilities |
|
|
67,853 |
|
|
|
14,354 |
|
Accrued interest |
|
|
- |
|
|
|
(290,021 |
) |
Payment processing liabilities, net |
|
|
(5,904,437 |
) |
|
|
(1,077,551 |
) |
Net cash provided by (used in)
operating activities |
|
|
(13,667,974 |
) |
|
|
467,960 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(68,411 |
) |
|
|
(10,244 |
) |
Cash provided for acquisition |
|
|
(2,500,000 |
) |
|
|
- |
|
Net cash used in investing
activities |
|
|
(2,568,411 |
) |
|
|
(10,244 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Treasury stock repurchase |
|
|
(933,343 |
) |
|
|
- |
|
Proceeds from stock option exercises |
|
|
2,250 |
|
|
|
- |
|
Repayments on convertible debt |
|
|
- |
|
|
|
(445,000 |
) |
Borrowings from notes payable |
|
|
- |
|
|
|
744,480 |
|
Principal payments on notes payable |
|
|
- |
|
|
|
(823,074 |
) |
Proceeds from exercise of warrant |
|
|
3,520,000 |
|
|
|
- |
|
Repurchase of common stock from stockholder |
|
|
(4,194,000 |
) |
|
|
- |
|
Proceeds from issuance of common stock |
|
|
45,805,491 |
|
|
|
- |
|
Net cash provided by (used in)
financing activities |
|
|
44,200,398 |
|
|
|
(523,594 |
) |
|
|
|
|
|
|
|
|
|
Net increase in cash, cash
equivalents, and restricted cash |
|
|
27,964,013 |
|
|
|
(65,878 |
) |
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and
restricted cash – beginning of period |
|
|
1,832,735 |
|
|
|
763,110 |
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash – end of
period |
|
$ |
29,796,748 |
|
|
$ |
697,232 |
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information |
|
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
- |
|
|
$ |
525,270 |
|
Income taxes |
|
$ |
800 |
|
|
$ |
800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash financing
activities: |
|
|
|
|
|
|
|
|
Convertible debt conversion to common stock |
|
$ |
3,850,000 |
|
|
$ |
137,500 |
|
Interest accrual from convertible debt converted to common
stock |
|
$ |
- |
|
|
$ |
78,050 |
|
Short-term notes payable converted to common stock |
|
$ |
- |
|
|
$ |
- |
|
Reconciliation of Net Income (Loss)
attributable to GreenBox POS, Inc., to Adjusted
Net Income* for the Three
Months Ended June
30, 2021
Three months ended June
30, 2021 |
|
|
|
|
|
|
|
Net loss |
|
|
$ |
(39,560 |
) |
|
|
|
|
Adjustments to net
loss: |
|
|
|
|
|
|
|
Non-cash adjustments - income (loss): |
|
|
|
Stock compensation expense for employees |
1,291,887 |
|
|
Stock compensation expense for services |
726,993 |
|
|
Total non-cash adjustments |
2,018,820 |
|
|
|
|
|
|
EBIDTA Adjustment: |
|
|
|
Depreciation |
14,244 |
|
|
Total EBIDTA adjustments |
14,244 |
|
|
|
|
|
|
Total adjustments to net loss: |
|
|
$ |
2,033,064 |
|
|
|
|
|
Adjusted net income |
|
|
$ |
1,993,504 |
|
* Adjusted Net Income is a non-GAAP financial
measure. This measurement is not recognized in accordance with GAAP
and should not be viewed as an alternative to GAAP measures of
performance.
GreenBox POS (NASDAQ:GBOX)
Historical Stock Chart
From Mar 2024 to Apr 2024
GreenBox POS (NASDAQ:GBOX)
Historical Stock Chart
From Apr 2023 to Apr 2024