OLB Group Inc. Reports 2021
Financials, Increases Revenue by 71%
Company increases
year-over-year annual revenue from $9.77M to
$16.71M
Merchant Processing
Transaction volume ends year on $1.3B annualized run
rate.
NEW YORK, NY --
March 29, 2022 -- InvestorsHub NewsWire -- The OLB Group, Inc.
("OLB," "we," "us," "our," or the "Company"), a
diversified Fintech eCommerce merchant services provider and
Bitcoin cryptocurrency mining enterprise, announced its year end
2021 financial results.
We are a
diversified FinTech company and a payment facilitator that, through
our subsidiaries, focuses on a suite of products in the merchant
services and payment facilitator verticals. These services include
electronic payment processing, cloud-based multi-channel commerce
platform solutions for small to medium sized businesses and crowd
funding services. The Company is focused on providing these
integrated business solutions to merchants throughout the United
States through three wholly-owned subsidiaries, eVance, Inc.,
Omnisoft.io, Inc., and CrowdPay.us, Inc.
In July 2021, we
formed DMINT, Inc., a wholly owned subsidiary ("DMint") to operate
in the cryptocurrency mining industry. DMint has initiated the
first phase of the cryptocurrency mining operation by placing
purchase orders for data centers and ASIC-based Antminer S19J Pro
mining computers specifically configured to mine Bitcoin. As a
result of this newly formed business, the Company began to report
its operational results in two segments – "Fintech Services" and
"Cryptocurrency Business" in the fourth quarter of 2021.
Financial Highlights
Following its
acquisition of a portfolio of merchants in the Cannabidiol (or
"CBD") industry, along with other merchants utilizing financial
transaction processing services during the fourth quarter of 2021,
the Company's merchant services annualized transaction volume run
rate has reached $1.35 Billion in transaction volume as a result of
approximately 28.5 million transactions. This increased number of
transactions resulted in an increase in revenue of 27.3% in the
fourth quarter of 2021 compared with the same period in
2020.
For the year
ended December 31, 2021, we had total revenue of $16,710,759
compared to $9,766,621 of revenue for the year ended December 31,
2020, an increase of $6,944,138 or 71.1%. The Fintech Services
segment reported $16,406,755 of revenue and the Cryptocurrency
Business segment reported $304,004 of revenue. We earned $15,810,626 in
transaction and processing fees, $131,802 in merchant equipment
rental and sales and $464,327 in other revenue during the year
ended December 31, 2021, compared to $8,358,459in transaction and
processing fees, $88,538 in merchant equipment sales and $1,319,624
in other revenue during the year ended December 31,
2020.
For the year
ended December 31, 2021, we had processing and servicing costs of
$13,480,212 compared to $6,003,931 of processing and servicing
costs for the year ended December 31, 2020. Processing and
servicing costs increased by $7,4767,281 or 124.5%.
General and
administrative expenses ("G&A") for the year ended December 31,
2021 was $2,387,416 compared to $1,520,362 for the year ended
December 31, 2020, an increase of $867,054 or 57%. In the current
period we had increases of our contracted services of approximately
$415,000 and computer and internet expense of approximately
$197,000. The Fintech Services segment
attributed to $1,818,347 of G&A and the Cryptocurrency Business
segment attributed to $569,069 of G&A during the year ended
December 31, 2021.
Our net loss for
the year ended December 31, 2021 was ($4,978,358) compared to
($1,776,727) for the year ended December 31, 2020. We had an
increase in our net loss of $3,201,631 because of the expenses
relating to the commencement of our Cryptocurrency Business segment
and for the reasons discussed above.
Adjusted EBITDA
for the year ended December 31, 2021 was ($2,509,671). The
adjustments include $461,051 for stock-based compensation, $116,737
of interest expense and $1,890,899 of depreciation and
amortization.
For the three
months ended December 31, 2021, we had total revenue of $8,826,862
compared to $2,226,404 of revenue for three months ended December
31, 2020, an increase of $607,169 or 27.3%. The Fintech Services
segment reported $8,522,858 of revenue and the Cryptocurrency
Business segment reported $304,001 of revenue. We earned $8,374,309 in
transaction and processing fees, $33,612 in merchant equipment
rental and sales and $114,937 in other revenue during the three
months ended December 31, 2021, compared to $2,090,264 in
transaction and processing fees, $18,507 in merchant equipment
sales and $117,633 in other revenue during the three months ended
December 31, 2020.
For the three
months ended December 31, 2021, we had processing and servicing
costs of $7,610,473 compared to $1,547,274 of processing and
servicing costs for the three months ended December 31, 2020.
Processing and servicing costs increased by $551,471 or
35.6%.
G&A expense
for the three months ended December 31, 2021 was $977,460 compared
to $392,335 for the three months ended December 31, 2020, an
increase of $585,125 or 149.1%. The Fintech Services segment
attributed to $117,988 of G&A and the Cryptocurrency Business
segment attributed to $480,967 of G&A during the year ended
December 31, 2021.
Key Highlights for 2021
-
Annual
revenue increased to $16.71 million in 2021 from $9.77 million in
2020 (71% increase)
-
$1.3B Million
in transaction volume annualized run rate ending 2021
-
4.9 million
transactions were processed in 2021
-
Merchant
services business increased $16.4 million in 2021 compared with
2020 (67.8% increase)
-
Acquired
exclusive natural gas purchasing rights for use in Cryptocurrency
Buinsess Segment's Bitcon mining operations
-
Acquired 1000
ASIC Bitcoin mining computers
-
Acquired
merchant portfolio and processing agreements adding 1,500 new
merchants and customers
-
Company
continues to be debt free
-
Raised
approximately $31M in capital
-
Established
Cryptocurrency Business segment as a stand-alone business relating
to the Company's Bitcoin mining operation.
-
Completed
build out of two Bitcoin mining locations in Bradford,
PA
-
Enabled
existing eCommerce applications to include cryptocurrency payment
capabilities
To see
a complete version of the Company's Annual Report on Form 10-K,
please click on the following link:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001314196/000121390022015583/f10k2021_theolbgroup.htm
To see the Company's response to
frequently asked questions, please click on the following
link:
https://olb.com/investors-faq/
For more information about
The OLB Group, please visit www.olb.com or www.olb.com/investors-data.
Future OLB
Press Releases and Updates
Interested investors or
shareholders can be notified of future Press Releases and Industry
Updates by
e-mailing investorrelations@OLB.com .
About The
OLB Group, Inc.
The OLB Group, Inc. is a
diversified Fintech eCommerce merchant services provider and
Bitcoin crypto mining enterprise. The Company's eCommerce platform
delivers cloud-based merchant services for a comprehensive digital
commerce solution to over 10,500 merchants in all 50 states. DMint,
a wholly owned subsidiary of OLB Group, is engaged in the mining of
Bitcoin utilizing sustainable natural gas with an initial
deployment of efficient 1,000 ASIC-based S19j Pro 96T mining
computers projected by end of 2021. For more information about
solutions, services, or to find a reseller, please visit
www.olb.com. Investor information is available at
www.olb.com/investors-data and www.dmint.com.
About
Non-GAAP Financial Measures
This press release contains
non-GAAP financial measures, Net Loss before Interest, Taxes,
Depreciation and Amortization ("EBITDA") and adjusted EBITDA, as
defined in Regulation G. The Company reports its financial results
in compliance with GAAP, but also provides additional non-GAAP
measures of its operating results. The Company defines EBITDA as
net loss, before interest, taxes, depreciation and amortization.
The Company defines adjusted EBITDA as EBITDA, as defined above,
adding back non-cash stock option costs and certain non-recurring
items, such as costs incurred with completing acquisitions. These
measures may not be comparable to similarly titled measures
reported by other companies. Management believes the use of EBITDA
and adjusted EBITDA is appropriate to enhance the understanding by
the Company's investors of its historical performance through use
of a metric that seeks to normalize earnings.
Safe Harbor
Statement
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, the CBD and related products marketplace, 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. 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
Rick Lutz
The OLB Group - Investor
Relations
investorrelations@olb.com
(212) 278-0900 EXT:
333