Thu, 26 Nov 2020

GreenBox POS Reports Third Quarter 2020 Financial Results

ACCESSWIRE
20 Nov 2020, 14:12 GMT+10

SAN DIEGO, CA / ACCESSWIRE / November 17, 2020 / GreenBox POS (OTCQB:GRBX) ('GreenBox', the 'Company'), an emerging financial technology company leveraging proprietary blockchain security to build customized payment solutions, has provided its financial results for the third quarter ended September 30, 2020.

Recent Operational Highlights:

  • Acquired money service business MoltoPay, expanding its international footprint and licensing capabilities to deploy its proprietary blockchain payment solutions in Canada
  • Repurchased 6.0 million shares of common stock in a transaction as part of the settlement agreement option with RB Capital Partners Inc
  • Completed a $3.85 million private placement to extinguish all debt and accelerate the release of the Company's next-generation (Gen 3) technology platform, which will be infinitely scalable and allow for faster onboarding
  • Completed the retirement of its last convertible note held by Vista Capital
  • Filed application to Uplist to the Nasdaq Capital Market and reserved the ticker 'GBOX'

Management Commentary

'During the third quarter, we saw sequential momentum in processing volume, which resulted in both revenue and gross profit growth from the previous quarter,' said Fredi Nisan, Chief Executive Officer of GreenBox POS. 'We believe the second quarter of 2020 is a more suitable earnings comparison than year over year, as it better reflects the revenue derived from our current platform. Late last year we recognized the potential scale limitations of our Gen 1 technology platform, and therefore, decided to improve and re-launch to capture the massive market opportunity we continue to see. Today, we are in the early stages with our Gen 2 technology and are already seeing promising top and bottom-line results on a sequential basis. In fact, this re-launch ultimately allowed us to expand and drive revenue in Europe-following the addition of crypto currency and forex capabilities added in the second quarter-as well as Canada-following the MoltoPay acquisition.

'We are encouraged by the pace of adoption of our highly scalable blockchain platform across multiple countries. In addition to the growth in revenues, the Company took several steps towards establishing new tier-one partnerships while also adding additional functionality to the platform that is focused on rapid scalability.'

'With our newly strengthened balance sheet, we believe we have all of the resources needed to complete the development of the 3rd generation of our platform and are in a stronger position than ever to execute upon our growing pipeline of opportunities, uplist to the NASDAQ Capital Market and drive long-term value for our shareholders,' concluded Nisan.

Third Quarter 2020 Financial Summary

  • Revenues in the third quarter of 2020 were $3.1 million, compared to revenues of $14.8 million in the same quarter a year ago. This decrease was primarily a result of the Company deciding to pause operations with Gen 1 technology and re-launch an infinitely scalable platform architecture (Gen 2). Sequentially, revenues increased 33% when compared to $2.3 million in the second quarter of 2020, primarily due to increased processing volume on the Gen 2 technology platform.
  • Gross profit in the third quarter of 2020 was $1.2 million, or 39.6% of total revenue, compared to gross profit of $8.0 million, or 53.8% of total revenue, in the same quarter a year ago. Sequentially, gross profit increased 120 basis points when compared to $0.9 million, or 38.4% of total revenue, in the second quarter of 2020.
  • Total operating expenses in the third quarter of 2020 totaled $1.5 million, compared to $6.9 million in the same quarter a year ago, and $1.1 million in the second quarter of 2020.
  • Loss from operations in the third quarter of 2020 was $0.2 million, compared to an operating profit of $1.0 million in the same quarter a year ago, and a loss from operations of $0.2 in the second quarter of 2020.
  • Net loss in the third quarter of 2020 was $0.5 million, or ($0.00) per basic and diluted share, compared to net income of $1.3 million, or $0.01 per basic and diluted share, in the same quarter a year ago. Net income in the second quarter of 2020 was $4.9 million. The sequential decrease in net income was primarily related to changes in the fair value of a derivative security and gain from extinguishment of convertible debt in the second quarter of 2020, which collectively totaled $5.2 million.

About GreenBox POS
GreenBox POS (OTCQB: GRBX) is an emerging financial technology company leveraging proprietary blockchain security to build customized payment solutions. The Company's applications enable an end-to-end suite of turnkey financial products, reducing fraud and improving the efficiency of handling large-scale commercial processing volumes for its merchant clients globally. For more information, please visit the Company's website at www.greenboxpos.com.

Forward-Looking Statements Disclaimer
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set out in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.

Investor Relations Contact
Mark Schwalenberg
MZ Group - MZ North America
312-261-6430
GRBX@mzgroup.us
www.mzgroup.us

GreenBox POS
Consolidated Balance Sheets
September 30, 2020 and December 31, 2019
(unaudited)

GreenBox POS
Consolidated Statements of Operations

For the Three and Nine Months Ended September 30, 2020 and 2019
(unaudited)

GreenBox POS
Consolidated Statements of Cash Flows
For the nine months ended September 30, 2020 and 2019
(unaudited)

SOURCE: GreenBox POS, LLC



View source version on accesswire.com:
https://www.accesswire.com/617115/GreenBox-POS-Reports-Third-Quarter-2020-Financial-Results

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