The OLB (US:OLB)2024-05-20 21:26Financial Performance - For the three months ended March 31, 2024, total revenue was $3,496,182, a decrease of $3,126,407 or 47.2% compared to $6,622,589 for the same period in 2023[139] - Transaction and processing fees for the three months ended March 31, 2024, were $2,288,209, down from $6,353,471 in the prior year, reflecting a significant loss of the CBD portfolio[139] - The company had a net loss of $2,371,596 for the three months ended March 31, 2024, a decrease of $243,810 compared to a net loss of $2,615,405 in the same period in 2023[146] Cash and Assets - As of March 31, 2024, the company had cash of $3,319 and negative working capital of $5,832,924[149] - As of March 31, 2024, the company had bitcoin valued at $56,000 and accounts receivable of approximately $207,000[152] Expenses - Salary and wage expenses increased by $193,198 or 23.5% to $1,016,338 for the three months ended March 31, 2024, due to additional expenses related to options and new employees[141] - Amortization expense decreased by $708,870 or 78.8% to $190,961 for the three months ended March 31, 2024, due to the write-off of the CBD portfolio[140] Acquisitions and Ownership - The company acquired 80.01% of Cuentas SDI, LLC, which has approximately 31,600 locations in the U.S. to target underbanked communities[137] - The company acquired 19.99% of the membership interests of Cuentas SDI, LLC for a purchase price of $215,500, resulting in 100% ownership of the LLC[157] - A restrictive covenant was established for three years post-acquisition, preventing the seller from disrupting business relationships or soliciting customers in competition with the company[158] Stock and Equity - The company executed a Reverse Stock Split, reducing the number of outstanding shares from 18,103,462 to 1,810,346 shares[156] - The company entered into an Equity Distribution Agreement to create an at-the-market equity program with an aggregate offering amount of up to $15,000,000[150] Business Operations - The company processed over $100,000,000 in gross transactions monthly through its eVance business, averaging approximately 1,400,000 transactions per month[130] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[159]