The OLB (US:OLB)2023-05-15 21:30Financial Performance - For the three months ended March 31, 2023, total revenue was $6,622,589, a decrease of $2,163,870 or 24.6% compared to $8,786,459 for the same period in 2022[118]. - The company reported a net loss of $2,615,405 for the three months ended March 31, 2023, compared to a net loss of $1,455,596 for the same period in 2022, an increase in loss of $1,159,809[123]. - Salary and wage expenses increased by $156,493 or 29.3% to $690,352 for the three months ended March 31, 2023, due to higher salaries and bonuses for officers[120]. - Processing and servicing costs decreased by $1,180,703 or 18.9% to $5,077,434, attributed to the reduction in merchant processing transactions[118]. - Transaction and processing fees for the three months ended March 31, 2023, were $6,353,471, down from $8,413,429 in the prior year, primarily due to the removal of approximately 700 non-compliant merchants[118]. Cash Flow and Liabilities - As of March 31, 2023, the company had cash of $64,627 and a working capital deficit of $1,824,026, with approximately $5,447,000 in outstanding liabilities[128]. - The company expects to sustain operations for at least the next twelve months due to improving transaction volume trends and positive cash flow anticipated in the second quarter[129]. Asset Management - The cryptocurrency mining segment recorded a depreciation expense of $799,717 for the three months ended March 31, 2023, down from $891,756 in the same period of 2022, a decrease of 10.3%[119]. - The company acquired a portfolio of merchants for $20 million, with $16 million paid at closing, and is seeking a reduction or cancellation of the final payment due to breaches of contract by the seller[114]. Technology Integration - The company has integrated its OmniSoft applications with the eVance mobile payment gateway, currently used by approximately 3,000 merchants processing over $9,000,000 in monthly gross transactions[110].