Usio(US:USIO)2022-08-11 20:01Revenue Performance - Total revenue for Q2 2022 increased by 6% to $16.2 million compared to $15.2 million in Q2 2021, driven by growth in prepaid and PayFac lines of business [73]. - Revenues for the six months ended June 30, 2022 increased by 20% to $34.3 million compared to $28.7 million for the same period in 2021 [74]. Transaction Volumes - Prepaid card load volumes processed in Q2 2022 increased by 81%, and transaction counts increased by 190% compared to Q2 2021, largely due to government assistance programs [67]. - Credit card transactions processed increased by 35% in Q2 2022, with the volume of credit card dollars processed rising by 9% compared to the same period in 2021 [65]. - ACH transaction counts decreased by 8% in Q2 2022, while returned check transactions increased by 39% compared to Q2 2021 [66]. - Total dollar volumes processed across all business lines in Q2 2022 were $2.4 billion, down from $2.7 billion in Q2 2021 [68]. Profitability and Loss - Gross profit for Q2 2022 decreased by 21% to $3.3 million, with a gross margin percentage of 20.1%, down from 27.1% in the prior year [78]. - Net loss for Q2 2022 was $1.9 million, compared to a net income of $0.2 million in the same period last year, attributed to increased SG&A and reduced profit margins [88]. - The company reported a net loss of $1.9 million for the quarter ended June 30, 2022, with an accumulated deficit of $68.9 million [93]. Operating Expenses - Cost of services rose by 17% to $13.0 million in Q2 2022, compared to $11.1 million in Q2 2021, due to growing revenues and associated costs [76]. - Other SG&A expenses increased by 35% to $3.8 million in Q2 2022, reflecting investments in various business lines and infrastructure [83]. Cash Flow and Financial Position - As of June 30, 2022, the company had cash and cash equivalents of $5.1 million, down from $7.3 million at December 31, 2021 [93]. - Net cash used by operating activities for the six months ended June 30, 2022, was $22.1 million, compared to net cash provided of $2.6 million for the same period in 2021 [94]. - Cash used by operating activities, excluding certain reserves and assets, was $1.2 million for the six months ended June 30, 2022, compared to cash provided of $1.1 million for the same period in 2021 [94]. - Net cash used by investing activities was $411,818 for the six months ended June 30, 2022, down from $533,854 for the same period in 2021 [95]. - Net cash used by financing activities for the six months ended June 30, 2022, was $573,699, compared to net cash provided of $73,511 for the same period in 2021 [96]. Strategic Focus - The company is focused on growing ACH merchants and expanding electronic bill presentment and related services [91]. - The company aims to optimize its infrastructure to expand payment processing capabilities without significantly increasing operating costs [91]. - The company continues to invest in resources and infrastructure to achieve scale across all business lines [94]. - There are currently no off-balance sheet arrangements that could materially affect the company's financial condition [98].