The OLB (US:OLB)2023-08-21 10:10Revenue Performance - Total revenue for the three months ended June 30, 2023, was $8,344,012, a decrease of $58,721 or 0.8% compared to $8,372,435 for the same period in 2022[138] - For the six months ended June 30, 2023, total revenue was $14,966,601, a decrease of $2,118,679 or 13.1% compared to $17,158,894 for the same period in 2022[145] - The company earned $7,755,248 in transaction and processing fees for the three months ended June 30, 2023, down from $7,813,969 in the same period of 2022, primarily due to the removal of approximately 700 non-compliant merchants[138] - Cryptocurrency mining segment revenue for the three months ended June 30, 2023, was $137,541, compared to $207,966 for the same period in 2022, indicating a decrease in performance[138] - The acquisition of Cuentas SDI, LLC contributed to an increase in revenues in June 2023[155] Expenses and Losses - Processing and servicing costs decreased by $2,462,169 or 19% from $12,930,278 in the prior period to $10,468,109 for the six months ended June 30, 2023, due to the same merchant removals[145] - Salary and wage expense for the three months ended June 30, 2023, was $692,480, an increase of $69,566 or 11.2% compared to $622,914 for the same period in 2022[140] - The company recorded a net loss of $587,818 for the three months ended June 30, 2023, compared to a net loss of $1,437,954 for the same period in 2022, reflecting an improvement in loss[144] - For the six months ended June 30, 2023, the company reported a net loss of $3,203,223, an increase of $309,673 compared to a net loss of $2,893,550 for the same period in 2022[151] - The company recognized a loss of $279,242 from the sale of cryptocurrency during the six months ended June 30, 2023[152] Cash Flow and Liquidity - Cash from operating activities for the six months ended June 30, 2023, was $1,002,249, which included a net loss of $3,204,948[152] - As of June 30, 2023, the company had cash of $133,777 and a working capital deficit of $2,136,160[154] - The company believes it has sufficient liquidity to sustain operations for at least the next twelve months due to improving transaction volume trends and positive cash flow in Q2 2023[155] Investments and Acquisitions - The company used $1,995,421 in investing activities, primarily for the acquisition of property and equipment and the purchase of an 80.01% interest in Cuentas SDI, LLC[153] - The company acquired 80.1% of Cuentas SDI, LLC, which focuses on marketing to underbanked communities, enhancing its service offerings[136] Other Financial Information - The company had total other expenses of $171,078 for the six months ended June 30, 2023, compared to other income of $393,179 for the same period in 2022[150] - The company had approximately $5,371,000 of outstanding liabilities as of June 30, 2023[154] - There were no subsequent events reported that would impact the financial outlook[157] Operational Developments - 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[128] - The company plans to expand its cryptocurrency mining operations, aiming for a computing power of 500 petahash per second by the end of 2022[132]