GreenBox POS (NASDAQ: GBOX) ("GreenBox", the "Company"), an emerging and rapidly growing FinTech company has provided its financial results for the fourth quarter and full year ended December 31, 2021.
Fourth Quarter 2021 and Subsequent Operational Highlights:
Management Commentary
“2021 was highlighted by the rapid expansion of our payment processing footprint and a record approximately $2.0 billion in processing volume,” said Fredi Nisan, Chief Executive Officer of GreenBox POS. “This represents growth of nearly 10x over 2020, a milestone achievement that demonstrates the scalability of our technology, our market share growth, our ability to remain compliant, and the quality of our sales team and overall ecosystem for our growing client roster. This KPI translated into record company revenue during 2021 of $26.3 million, representing tremendous growth of over 209% when compared to 2020’s full year revenue.
“During the year we were highly focused on closing and integrating our strategic acquisitions of Northeast Merchant Services and ChargeSavvy. As an indication of the success of their integration, just six months after closing, ChargeSavvy achieved its best quarter in its 9-year history as a result of improved technology and efficiencies. We also announced the planned acquisition of Transact Europe Holdings (TEU). Once complete, the acquisition of TEU positions us for rapid global expansion and creates a tremendous opportunity to deploy coyni at scale. We will continue to explore strategic acquisitions that will allow us to add portfolios of processing volume, increase key licensing assets domestically and globally, grow the adoption of coyni and enable us to branch out and service more verticals and geographic locations.
“Operationally, during the fourth quarter and into 2021 we continued to strengthen the composition of our management team. We welcomed Min Wei as our new Chief Operating Officer whose background in operational efficiencies at global technology companies will be critical for us given our expansion plans. Jacqueline Reynolds, our new Chief Marketing Officer, is utilizing her decades of experience leading some of the world’s most coveted brands and spearheading our recently announced transformational global initiative to raise GreenBox brand awareness with the appointment award-winning advertising agency, INNOCEAN as our advertising and branding agency of record.
“Looking forward, we remain highly focused on the pursuit of our objectives to build compliant, cutting edge blockchain ledger tokenized payment solutions for the diverse, evolving and dynamic global market. Considering our global expansion plans and potential acquisitions, we expect to increase our processing volume in 2022 to between $4-$5 billion.
“I would like to thank our stakeholders for their ongoing support. We recently demonstrated our commitment to our shareholders and confidence in our ability to execute on the growth opportunities in front of us with the approval of an accelerated share repurchase program of up to $10 million. Taken together, we believe we have the technology, resources, and partnerships in place to continue to drive the future of financial technology while creating long-term sustainable value for our shareholders,” concluded Nisan.
Fourth Quarter and Full Year 2021 Financial Results
Management will host a conference call on Thursday, March 31, 2021 at 4:30 p.m. Eastern time to discuss GreenBox’s fourth quarter and full year 2021 financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate, please use the following information:
Q4 and Full Year 2021 Conference Call and Webcast
Date: Thursday, March 31, 2022
Time: 4:30 p.m. Eastern time
US Dial In: 1-877-407-4018
International Dial In: 1-201-689-8471
Conference ID: 13728060
Webcast: Link
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
About GreenBox POS
GreenBox POS (NASDAQ: GBOX) 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.
Use of Non-GAAP Financial Information
This earnings release discusses Adjusted Net Income which is not a financial measure as defined by GAAP. This financial measure is presented as a supplemental measure of operating performance because we believe it can aid in, and enhance, the understanding of our financial results. In addition, we use Adjusted Net Income as a measure internally for budgeting purposes.
We define Adjusted Net Income as net income (loss) before (1) interest expense (income), net, (2) income tax expense (benefit), (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, plus (6) from time to time, certain other items which are specific transaction-related items. Other companies may define or calculate this measure differently, limiting the usefulness as a comparative measure. Because of this limitation, this non-GAAP financial measure should not be considered in isolation or as substitute for or superior to performance measures calculated in accordance with GAAP and should be read in conjunction with the financial statement tables. See also Reconciliation of Net Income (Loss) attributable to GreenBox POS, Inc., to Adjusted Net Income in the table below.*
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
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.mzgroup.us
GreenBox POS
Consolidated Balance Sheets
December 31, 2021 and December 31, 2020
(unaudited)
| As of December 31, | ||||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 89,559,695 | $ | - | ||||
| Restricted cash | - | 1,832,735 | ||||||
| Accounts receivable, net of allowance for bad debt of $54,795 and $0, respectively | 481,668 | 10,000 | ||||||
| Accounts receivable from fines and penalties from merchants, net of allowance for bad debt of $9,454,261 and $6,665,031, respectively | - | 2,789,230 | ||||||
| Inventory, net of inventory reserve of $3,127 and $0, respectively | 286,360 | - | ||||||
| Cash due from gateways, net of allowance of $3,904,952 and $0, respectively | 18,941,761 | 7,303,949 | ||||||
| Prepaid and other current assets | 6,420,696 | 70,130 | ||||||
| Total current assets | 115,690,180 | 12,006,044 | ||||||
| Non-current Assets: | ||||||||
| Property and equipment, net | 1,674,884 | 57,264 | ||||||
| Other assets | 190,636 | 81,636 | ||||||
| Goodwill | 6,048,034 | - | ||||||
| Intangible Assets, net | 7,578,935 | - | ||||||
| Operating lease right-of-use assets, net | 1,490,159 | 117,795 | ||||||
| Total non-current assets | 16,982,648 | 256,695 | ||||||
| Total assets | $ | 132,672,828 | $ | 12,262,739 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 871,037 | $ | 210,094 | ||||
| Other current liabilities | 501,167 | 68,138 | ||||||
| Accrued interest | 1,226,287 | - | ||||||
| Payment processing liabilities, net | 4,997,807 | 10,199,956 | ||||||
| Current portion of long term debt | - | 272,713 | ||||||
| Convertible debt, net of debt discount of $0 and $2,993,408, respectively | - | 856,592 | ||||||
| Derivative liability | 18,735,000 | - | ||||||
| Current portion of operating lease liabilities | 495,134 | 120,110 | ||||||
| Total current liabilities | 26,826,432 | 11,727,603 | ||||||
| Long term debt, net of debt discount of $41,344,822 and $0, respectively | 59,305,078 | 149,900 | ||||||
| Operating lease liabilities, less current portion | 1,035,895 | - | ||||||
| Total liabilities | 87,167,405 | 11,877,503 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Common stock, par value $0.001, 82,500,000 shares authorized, shares issued and outstanding of 42,831,816 and 30,710,645, respectively | 42,831 | 30,711 | ||||||
| Additional paid-in capital | 88,574,469 | 12,079,074 | ||||||
| Accumulated deficit | (38,178,061 | ) | (11,724,549 | ) | ||||
| Less: Treasury stock, at cost; 714,831 and 0 shares, respectively | (4,933,816 | ) | - | |||||
| Total stockholders' equity | 45,505,423 | 385,236 | ||||||
| Total liabilities and stockholder's equity | $ | 132,672,828 | $ | 12,262,739 | ||||
GreenBox POS
Consolidated Statements of Operations
For the Twelve Months Ended December 31, 2021 and 2020
(unaudited)
| Year Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Net Revenue | $ | 26,304,502 | $ | 8,525,015 | ||||
| Cost of revenue | 9,412,254 | 4,825,587 | ||||||
| Gross profit | 16,892,248 | 3,699,428 | ||||||
| Operating expenses: | ||||||||
| Advertising and marketing | 134,166 | 93,868 | ||||||
| Research and development | 3,870,050 | 1,363,757 | ||||||
| General and administrative | 9,114,370 | 800,111 | ||||||
| Payroll and payroll taxes | 4,502,605 | 1,796,160 | ||||||
| Professional fees | 3,132,528 | 1,691,107 | ||||||
| Stock compensation for employees | 3,704,008 | 3,036,009 | ||||||
| Stock compensation for services | 12,306,365 | - | ||||||
| Depreciation and amortization | 912,677 | 22,742 | ||||||
| Total operating expenses | 37,676,769 | 8,803,754 | ||||||
| Income (Loss) from operations | (20,784,521 | ) | (5,104,326 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | (1,931,713 | ) | (359,493 | ) | ||||
| Interest expense - debt discount | (2,993,408 | ) | (1,149,677 | ) | ||||
| Derivative expense | (3,435,178 | ) | (641,366 | ) | ||||
| Changes in fair value of derivative liability | 2,845,000 | (383,769 | ) | |||||
| Merchant liability settlement | (364,124 | ) | - | |||||
| Merchant fines and penalty income | - | 2,630,796 | ||||||
| Other income or expense | 215,338 | 455 | ||||||
| Total other income (expense), net | (5,664,085 | ) | 96,946 | |||||
| Loss before provision for income taxes | (26,448,606 | ) | (5,007,380 | ) | ||||
| Income tax provision | 4,906 | - | ||||||
| Net loss | $ | (26,453,512 | ) | $ | (5,007,380 | ) | ||
| Net loss per share: | ||||||||
| Basic and diluted | $ | (0.65 | ) | $ | (0.17 | ) | ||
| Weighted average number of common shares outstanding: | ||||||||
| Basic and diluted | 40,708,304 | 29,868,955 | ||||||
GreenBox POS
Consolidated Statements of Cash Flows
For the Twelve months ended December 31, 2021 and 2020
(unaudited)
| Year Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (26,453,512 | ) | $ | (5,007,380 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation expense | 912,677 | 15,876 | ||||||
| Forgiveness of PPP Loan | (272,713 | ) | - | |||||
| Noncash lease expense | 38,555 | - | ||||||
| Stock compensation expense | 3,704,008 | 3,036,009 | ||||||
| Restricted stock issued for services | 4,768,980 | - | ||||||
| Common stocks issued for professional fees | 7,537,385 | 1,262,641 | ||||||
| Stock compensation issued for interest | 653,467 | - | ||||||
| Interest expense - debt discount | 2,993,408 | 1,102,706 | ||||||
| Derivative expense | 3,435,178 | - | ||||||
| Changes in fair value of derivative liability | (2,845,000 | ) | (1,050,063 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | - | 60,257 | ||||||
| Accounts receivables from fines and fees from merchant, net | - | (12,543 | ) | |||||
| Lease liability, net of asset | - | (2,091 | ) | |||||
| Other receivable, net | 2,382,352 | - | ||||||
| Inventory | (161,859 | ) | - | |||||
| Prepaid and other current assets | (6,343,905 | ) | (28,068 | ) | ||||
| Cash due from gateways, net | (11,637,812 | ) | 1,122,895 | |||||
| Other assets | 686,876 | (81,636 | ) | |||||
| Accounts payable | 443,263 | (295,181 | ) | |||||
| Other current liabilities | 301,469 | 53,038 | ||||||
| Accrued interest | 1,226,287 | (515,202 | ) | |||||
| Payment processing liabilities, net | (8,534,989 | ) | (3,821,936 | ) | ||||
| Net cash provided by (used in) operating activities | (27,165,885 | ) | (4,160,678 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (158,858 | ) | (6,649 | ) | ||||
| Acquisition of Northeast | (2,500,000 | ) | - | |||||
| Net cash used in investing activities | (2,658,858 | ) | (6,649 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Treasury stock repurchase | (4,934,531 | ) | - | |||||
| Proceeds from stock option exercises | 2,338 | 35,510 | ||||||
| Borrowings from convertible debt | 76,800,000 | 3,678,000 | ||||||
| Repayments on convertible debt | - | (985,500 | ) | |||||
| Repayment on long-term debt | - | 149,900 | ||||||
| Repayments on short-term notes payable | - | (2,305,538 | ) | |||||
| Borrowings from short-term notes payable | - | 1,531,867 | ||||||
| Borrowings from notes payable | 350,000 | 272,713 | ||||||
| Proceeds from exercise of warrant | 3,731,200 | - | ||||||
| Repurchase of common stock from stockholder | (5,693,863 | ) | - | |||||
| Proceeds from issuance of common stock | 45,805,491 | 2,860,000 | ||||||
| Net cash provided by (used in) financing activities | 116,060,635 | 5,236,952 | ||||||
| Cash acquired from acquisition of Northeast and ChargeSavvy | 1,491,068 | - | ||||||
| Net increase in cash, cash equivalents, and restricted cash | 87,726,960 | 1,069,625 | ||||||
| Cash, cash equivalents, and restricted cash – beginning of period | 1,832,735 | 763,110 | ||||||
| Cash, cash equivalents, and restricted cash – end of period | $ | 89,559,695 | $ | 1,832,735 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 2,504,533 | $ | 727,564 | ||||
| Income taxes | $ | 800 | $ | 800 | ||||
| Non-cash financing and investing activities: | ||||||||
| Convertible debt conversion to common stock | $ | 3,850,000 | $ | 137,500 | ||||
| Common stock issued for acquisition of ChargeSavvy | $ | 12,140,000 | $ | - | ||||
| Interest accrual from convertible debt converted to common stock | $ | 653,467 | $ | 78,050 | ||||
| Short-term notes payable converted to common stock | $ | - | $ | 810,000 | ||||
Q4 and FY 2021 Reconciliation of Net Income (Loss) attributable to GreenBox POS, Inc., to Adjusted Net Income and Cash flow provided by operating activities - Adjusted*
| Q4 2021 | FY 2021 | ||||||||
| Net loss | $ | (7,034,765 | ) | $ | (26,453,512 | ) | |||
| Adjustments to net loss: | |||||||||
| Non-cash adjustments - income (loss): | |||||||||
| Stock compensation expense for employees | (2,163,064 | ) | 3,704,008 | ||||||
| Stock compensation expense for services | 1,887,369 | 12,306,365 | |||||||
| Bad debt expense | 6,707,228 | 6,707,228 | |||||||
| Total non-cash adjustments | 6,431,533 | 22,717,601 | |||||||
| EBIDTA Adjustment: | |||||||||
| Depreciation | 434,791 | 912,677 | |||||||
| Income taxes | (3,248,949 | ) | 4,906 | ||||||
| Interest expense - debt discount and other interest | 1,332,719 | 4,925,121 | |||||||
| Derivative expense | 3,435,178 | 3,435,178 | |||||||
| Changes in derivative | (2,845,000 | ) | (2,845,000 | ) | |||||
| Merchant liability settlement | - | 364,124 | |||||||
| Total EBIDTA adjustments | (891,261 | ) | 6,797,006 | ||||||
| Total adjustments to net loss: | 5,540,272 | 29,514,607 | |||||||
| Adjusted net income | $ | (1,494,493 | ) | $ | 3,061,095 | ||||
| Cash flows used in operations per financial statements: | $ | (13,131,846 | ) | $ | (27,165,885 | ) | |||
| Adjustments: | |||||||||
| Increase in cash due from gateways - receivables | (476,592 | ) | 11,637,812 | ||||||
| Decrease in payment processing liabilities - payables | 1,636,650 | 8,534,989 | |||||||
| Total adjustments | 1,160,058 | 20,172,801 | |||||||
| Cash flows provided by operating activities - Adjusted | $ | (11,971,788 | ) | $ | (6,993,084 | ) | |||
* Adjusted Net Income and Cash flows provided by operating activities - Adjusted are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance.
| Last Trade: | US$1.39 |
| Daily Change: | 0.04 2.96 |
| Daily Volume: | 29,216 |
| Market Cap: | US$9.400M |
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