POSaBIT's 2023 Revenue Drops 7% YoY, Core Business Grows As It Seeks To List Its Shares On TSX

POSaBIT Systems Corporation PBIT POSAF, a provider of payments infrastructure in the cannabis industry, announced on Tuesday its financial results for the twelve months ended Dec. 31, 2023.

"Despite the challenges posed by several industry-wide payment disruptions in 2023, I am proud that we achieved a combined 23% growth in our core payments and point-of-sale business, excluding a one-time licensing fee booked in 2022," said Ryan Hamlin, co-founder and CEO of POSaBIT. "Our unwavering dedication to supporting our merchants, clients, and providing best-in-class service remains our top priority."

The company is also considering listing its common shares on the TSX Venture Exchange, a process it kicked off in December. On Tuesday, POSaBIT reported that it remains focused on satisfying applicable regulatory and TSXV listing requirements.

FY 2023 Financial Results

• Revenue totaled $43.6 million, representing a 7% year-over-year decrease.
• Gross profit amounted to $9.2 million, down from $19.6 million in fiscal 2022.
• Total operating expenses amounted to $18.8 million, up from $17.4 million in 2022.
• Comprehensive loss totaled $14.3 million, up from $8.1 million in the prior year.
• Adjusted EBITDA came in negative at $5.6 million, compared to an adjusted EBITDA gain of $7.5 million in 2022.
• As of Dec. 31, 2023, the company had cash and cash equivalents of $1.5 million compared to $3.1 million as of Dec. 31, 2022.

The company simultaneously announced the appointment of Stephen Gledhill to the position of chief financial officer effective May 14, 2024.

Gledhill will succeed Matthew Fowler who joined POSaBIT as CFO of its US subsidiary in May 2021, and was appointed CFO of POSaBIT on August 24, 2023.

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POSAF Price Action

POSaBIT's shares traded 11.11% higher at $0.15 per share at the time of writing on Tuesday.

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