Press release

POSaBIT Reports Full Year 2018 Financial Results

Sponsored by Businesswire

POSaBIT Systems Corporation (CSE: PBIT), a leading financial technology
company delivering unique blockchain-enabled payment processing and
point-of-sale (POS) systems for cash-only businesses with a focus on the
cannabis industry, is pleased to report its financial results for the
year ended Dec. 31, 2018.

“We are very pleased with our 2018 results. POSaBIT finished the year
with an annual revenue run rate of $5 million, including the DoubleBeam
acquisition, which is in line with our guidance. Our total revenue also
grew 266% year-over-year driven by our rapid expansion into California,
Colorado and Washington and solid market share gains,” said Ryan Hamlin,
co-founder and CEO of POSaBIT. “With our unique and compelling solution,
and unwavering commitment to providing a great point-of-sale experience
for cannabis merchants and customers, we believe we are well-positioned
to take advantage of the large and growing cannabis industry and poised
for continued growth.”

“Looking ahead to 2019, we remain focused on delivering strong results.
Our performance-to-date in 2019 has been solid, led by continued
traction in the market for our fully-integrated POS and payments
platform. Additionally, we have continued to expand our footprint into
California and Colorado and completed all of the necessary state
requirements to support the METRC system in several US states. We
believe this sets the stage for another strong year for POSaBIT, and as
a result, we are maintaining our positive outlook for the year,” Hamlin


Financial Summary


in United States Dollars

Year Ended
December 31,
2018   2017
Total Revenue $ 2,443,043 $ 667,258
Total Cost of Sales   2,194,809     660,178  
Gross Profit $ 248,234   $ 7,080  
Total Operating Expenses $ 3,478,844 $ 935,083
Total Other Income (Expenses)   (664,142 )   (2,386,616 )
Loss and Comprehensive Loss $ (3,894,752 ) $ (3,314,619 )
Basic and Diluted Loss per Common Share $ (0.17 ) $ (0.14 )
Basic and diluted weighted average number of common shares
23,013,011 24,284,087

Full Year 2018 Financial Summary

Transactional Sales

Transactional sales totaled $21.8 million, representing an increase of
298% compared with $5.4 million in 2017.


Total revenue was $2.4 million, up 266% compared with $667.3 thousand in
2017. Including the DoubleBeam acquisition, the company ended the year
with an annual revenue run rate of $5.0 million.

Gross Profit

Gross profit was $248.2 thousand, compared with a gross profit of $7.1
thousand in 2017.

Loss and Comprehensive Loss

Loss and comprehensive loss was $3.9 million, or a loss of $0.17 per
basic and diluted share, compared with a comprehensive loss of $3.3
million, or a loss of $0.14 per basic and diluted share in 2017.

Financial Reports

Full details of the financial and operating results for the year ended
2018 are described in the company’s consolidated financial statements
with accompanying notes. The consolidated financial statements and
additional information about POSaBIT are available on the company’s
website at
or on SEDAR at

Financial Outlook

POSaBIT provides guidance based on current market conditions and
expectations. Please refer to the comments below regarding
forward-looking statements.

POSaBIT reaffirms its full year 2019 outlook of:

  • Transactional sales will grow by more than 400% to over USD $100
    million, assuming the average store processes between USD $350,000 and
    USD $500,000 per year through the POSaBIT service
  • Revenue to grow in the range of approximately 80% to 100%
  • Cost of sales in the range of $5.5 million to $6.0 million
  • To expand its footprint to 5 additional recreational states and up to
    10 additional medical states, based approximately on adding 2 states
    in the first quarter, 3 in the second quarter, 4 in the third quarter
    and 6 in the fourth quarter.

Forward-Looking Statements

This press release contains forward-looking statements, including
statements regarding our business strategy, product development, timing
of product development, events and courses of action. Statements which
are not purely historical are forward-looking statements and include any
statements regarding beliefs, plans, outlook, expectations or intentions
regarding the future including words or phrases such as “anticipate,”
“objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,”
“expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is
designed to” or similar expressions suggest future outcomes or the
negative thereof or similar variations. Forward-looking statements may
include, among other things, statements about: our expectations
regarding our expenses, sales and operations; our future customer
concentration; our anticipated cash needs and our estimates regarding
our capital requirements and our need for additional financing our
ability to anticipate the future needs of our customers; our plans for
future products and enhancements of existing products; our future growth
strategy and growth rate; our future intellectual property; and our
anticipated trends and challenges in the markets in which we operate.
Such statements and information are based on numerous assumptions
regarding present and future business strategies and the environment in
which POSaBIT will operate in the future, including the demand for our
products, anticipated costs and ability to achieve goals. Although we
believe that the assumptions underlying these statements are reasonable,
they may prove to be incorrect. Given these risks, uncertainties and
assumptions, you should not unduly rely on these forward-looking

Forward-looking statements are subject to known and unknown risks,
uncertainties and other important factors that may cause the actual
results to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to, business,
economic and capital market conditions; the ability to manage our
operating expenses, which may adversely affect our financial condition;
our ability to remain competitive as other better financed competitors
develop and release competitive products; regulatory uncertainties;
market conditions and the demand and pricing for our products; our
relationships with our customers, distributors and business partners;
our ability to successfully define, design and release new products in a
timely manner that meet our customers’ needs; our ability to attract,
retain and motivate qualified personnel; competition in our industry;
our ability to maintain technological leadership; our ability to manage
risks inherent in foreign operations; the impact of technology changes
on our products and industry; our failure to develop new and innovative
products; our ability to successfully maintain and enforce our
intellectual property rights and defend third-party claims of
infringement of their intellectual property rights; the impact of
intellectual property litigation that could materially and adversely
affect our business; our ability to manage working capital; and our
dependence on key personnel. POSaBIT is an early stage company with a
short operating history; it may not receive any future product sales
revenue or achieve profitability; and it may not actually achieve its
plans, projections, or expectations.

Important factors that could cause actual results to differ materially
from POSaBIT’s expectations include, consumer sentiment towards
POSaBIT’s products and blockchain/cryptocurrency exchange technology
generally, litigation, global economic climate, loss of key employees
and consultants, additional funding requirements, changes in laws,
technology failures, competition, and failure of counterparties to
perform their contractual obligations.

Except as required by law, we undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future event or otherwise, after the date on which the
statements are made or to reflect the occurrence of unanticipated
events. Neither we nor any of our representatives make any
representation or warranty, express or implied, as to the accuracy,
sufficiency or completeness of the information in this presentation.
Neither we nor any of our representatives shall have any liability
whatsoever, under contract, tort, trust or otherwise, to you or any
person resulting from the use of the information in this presentation by
you or any of your representatives or for omissions from the information
in this presentation.


POSaBIT (CSE: PBIT) is a financial technology company that delivers
unique and innovative, blockchain-enabled payment processing and
point-of-sale systems for cash-only businesses. POSaBIT specializes in
resolving pain points for complex, high-risk, emerging industries like
cannabis with an all-in-one solution that is compliant, user-friendly
and utilizes top-of-the-line hardware. POSaBIT’s unique solution
provides a safer and transparent environment for merchants while
creating a better overall experience for the consumer. For additional
information, visit: