SAN DIEGO, CA, March 26, 2024 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL” or the "Company"), a leading innovator of payment transaction solutions leveraging proprietary blockchain ledger and electronic token technology for the diverse international markets, reported its financial results for the fourth quarter and fiscal year ended December 31, 2023.
Operational Highlights Fourth Quarter and Fiscal Year 2023 Compared to Same Periods in 2022
CEO Fredi Nisan said, “Continuing our path to shape the future of financial transactions, in 2023, we delivered the strongest year in our history. Impressive business volume growth resulted in record company revenues. Ryvyl EU revenue nearly tripled, and the market continues to present a lucrative long-term opportunity, including our Visa Direct integration that we expect to complete by mid-2024.
“Further, by executing several foundational initiatives, we improved our ability to scale. During the fourth quarter of 2023, to expand payment processing and banking-as-a-service solutions, we strategically decided to optimize the coyni technology platform. By maintaining a consolidated product roadmap, we expect to leverage coyni in both existing and targeted new vertical markets for better operating efficiencies and enhanced profitability.
“During 2023, we focused on fortifying our balance sheet and executed two exchange agreements with our convertible noteholder, reducing the principal balance over 70% by year end. We believe this demonstrates the noteholder’s ongoing support and belief in our core mission.
“In 2024, we continue to expect strong revenue growth, with the second half of the year contributing more than the first half. That said, first quarter 2024 revenues are expected to decline compared to the fourth quarter of 2023, due to lower business volume reflecting a product transition and a coincident change in our banking partner. Specifically, in February 2024, in North America one of RYVYL’s products moved away from terminal-based to app-based processing. Changes in the compliance environment and banking regulations prompted us to select a new banking partner.
“Overall, our pipeline of business is robust with multiple opportunities to enter new markets and acquire new customers. There are underlying growth trends in business volume and international markets supported by new initiatives, and new partnerships such as ACI Worldwide and R3. Coupling our coyni platform with improved efficiencies, we expect to introduce services in new business verticals and to continue enabling transformation of the digital payments ecosystem,” concluded Nisan.
Financial Summary for the Fourth Quarter 2023 Ended December 31, 2023
Financial Summary for Fiscal Year 2023 Ended December 31, 2023
Management will host a conference at 4:30 p.m. Eastern Time on Tuesday, March 26 2024 to discuss fourth quarter and fiscal year 2023 financial results, provide a corporate update and conclude with a Q&A session. To participate, please use the following information:
Q4 and Fiscal Year 2023 Conference Call and Webcast
Date: March 26, 2024
Time: 4:30 p.m. Eastern Time
US Dial In: 1-877-407-4018
International Dial In: 1-201-689-8471
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1651158&tp_key=029b3168d9
Call me: Link
Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ link for instant telephone access to the event and enter pass code 13707901. The Call me™ link will be made active 15 minutes prior to scheduled start time.
A replay of the call will be available through May 26, 2024, by calling 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and entering access ID 13743655. An archived version of the webcast will also be available for 90 days on the “Investors” section of the RYVYL website or by clicking the webcast link above.
About RYVYL
RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging proprietary blockchain ledger and electronic token technology for the diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS. In 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com
Cautionary Note Regarding Forward-Looking Statements.
This press release includes information that constitutes 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. These forward-looking statements are based on the Company’s current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding the timing of the filing of the aforementioned periodic reports and are characterized by future or conditional words such as "may," "will," "expect," "intend," "anticipate," “believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.
By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the completion and filing of the aforementioned periodic reports will take longer than expected and that additional information may become known prior to the expected filing of the aforementioned periodic reports with the Securities and Exchange Commission (“SEC”). Other risk factors affecting the Company are discussed in detail in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
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
RYVYL INC.
Consolidated Balance Sheets
(in thousands, except share and per share data)
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 12,180 | $ | 13,961 | ||||
| Restricted cash | 61,138 | 26,873 | ||||||
| Accounts receivable, net of allowance for credit losses of $23 and $82, respectively | 859 | 1,156 | ||||||
| Cash due from gateways, net of allowance of $2,636 and $3,917, respectively | 12,834 | 7,427 | ||||||
| Prepaid and other current assets | 2,854 | 9,799 | ||||||
| Total current assets | 89,865 | 59,216 | ||||||
| Non-current Assets: | ||||||||
| Property and equipment, net | 306 | 1,696 | ||||||
| Goodwill | 26,753 | 26,753 | ||||||
| Intangible assets, net | 5,059 | 6,739 | ||||||
| Operating lease right-of-use assets, net | 4,279 | 1,533 | ||||||
| Other assets | 2,403 | 1,720 | ||||||
| Total non-current assets | 38,800 | 38,441 | ||||||
| Total assets | $ | 128,665 | $ | 97,657 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT) | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | 1,819 | 1,630 | ||||||
| Accrued liabilities | 5,755 | 3,350 | ||||||
| Accrued interest | - | 1,728 | ||||||
| Payment processing liabilities, net | 76,772 | 28,912 | ||||||
| Current portion of operating lease liabilities | 692 | 534 | ||||||
| Other current liabilities | 504 | 582 | ||||||
| Total current liabilities | 85,542 | 36,736 | ||||||
| Long term debt, net of debt discount of $3,906 and $24,349, respectively | 15,912 | 61,735 | ||||||
| Operating lease liabilities, less current portion | 3,720 | 1,109 | ||||||
| Total liabilities | 105,174 | 99,580 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Equity/(Deficit): | ||||||||
| Preferred stock, Series B, par value $0.01, 5,000,000 shares authorized; shares issued and outstanding of 55,000 and 0, respectively | 1 | - | ||||||
| Common stock, par value $0.001, 100,000,000 shares authorized; shares issued and outstanding of 5,996,948 and 4,972,736, respectively | 6 | 5 | ||||||
| Additional paid-in capital | 175,664 | 97,494 | ||||||
| Accumulated other comprehensive income | 401 | 357 | ||||||
| Accumulated deficit | (152,581 | ) | (99,772 | ) | ||||
| Less: Shares to be returned | - | (7 | ) | |||||
| Total stockholders’ equity/(deficit) | 23,491 | (1,923 | ) | |||||
| Total liabilities and stockholder’s equity/(deficit) | $ | 128,665 | $ | 97,657 | ||||
RYVYL INC.
Consolidated Statements of Operations and Comprehensive Income
For the Three and Twelve Months Ended December 31, 2023 and 2022
(in thousands, except share and per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | $ | 22,249 | $ | 11,104 | $ | 65,869 | $ | 32,909 | ||||||||
| Cost of revenue | 14,455 | 5,444 | 40,157 | 16,787 | ||||||||||||
| Gross profit | 7,794 | 5,660 | 25,712 | 16,123 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Advertising and marketing | (73 | ) | 231 | 80 | 1,337 | |||||||||||
| Research and development | 1,323 | 976 | 5,757 | 6,276 | ||||||||||||
| General and administrative | 1,968 | 2,271 | 8,678 | 6,603 | ||||||||||||
| Payroll and payroll taxes | 3,785 | 3,067 | 12,017 | 10,547 | ||||||||||||
| Professional fees | 1,425 | 1,607 | 7,076 | 5,312 | ||||||||||||
| Stock compensation expense | 1,544 | 240 | 1,853 | 2,969 | ||||||||||||
| Depreciation and amortization | 654 | 16,037 | 2,553 | 20,917 | ||||||||||||
| Total operating expenses | 10,626 | 24,429 | 38,014 | 53,961 | ||||||||||||
| Loss from operations | (2,832 | ) | (18,769 | ) | (12,302 | ) | (37,838 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (30 | ) | (754 | ) | (3,340 | ) | (8,169 | ) | ||||||||
| Accretion of debt discount | (3,508 | ) | (2,440 | ) | (13,134 | ) | (13,980 | ) | ||||||||
| Changes in fair value of derivative liability | (35 | ) | 2,265 | 6,544 | 16,857 | |||||||||||
| Derecognition expense on conversion of convertible debt | (23,516 | ) | 4,053 | (25,035 | ) | (5,710 | ) | |||||||||
| Legal settlement expense | - | - | (4,142 | ) | - | |||||||||||
| Gain on sale of property and equipment | 1,069 | - | 1,069 | - | ||||||||||||
| Other expense | (999 | ) | (417 | ) | (2,472 | ) | (405 | ) | ||||||||
| Total other income (expense), net | (27,020 | ) | 2,707 | (40,510 | ) | (11,406 | ) | |||||||||
| Loss before provision for income taxes | (29,852 | ) | (16,062 | ) | (52,812 | ) | (49,244 | ) | ||||||||
| Income tax provision | 151 | (46 | ) | 289 | (8 | ) | ||||||||||
| Net loss | $ | (30,003 | ) | $ | (16,016 | ) | $ | (53,101 | ) | $ | (49,236 | ) | ||||
| Comprehensive income statement: | ||||||||||||||||
| Net loss | $ | (30,003 | ) | $ | (16,016 | ) | $ | (53,101 | ) | $ | (49,236 | ) | ||||
| Foreign currency translation gain | 433 | 1,066 | 44 | 357 | ||||||||||||
| Total comprehensive loss | $ | (29,570 | ) | $ | (14,950 | ) | $ | (53,057 | ) | $ | (48,879 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted | $ | (5.43 | ) | $ | (3.26 | ) | $ | (10.11 | ) | $ | (10.80 | ) | ||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic and diluted | 5,525,608 | 4,909,079 | 5,251,852 | 4,557,200 | ||||||||||||
RYVYL INC.
Statement of Cash Flows
(in thousands, except share and per share data)
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (53,101 | ) | $ | (49,236 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization expense | 2,553 | 20,917 | ||||||
| Noncash lease expense | 350 | 43 | ||||||
| Stock compensation expense | 1,853 | 2,969 | ||||||
| Stock issued for interest expense | - | 2,418 | ||||||
| Accretion of debt discount | 13,134 | 13,980 | ||||||
| Derecognition expense on conversion of convertible debt | 25,035 | 5,709 | ||||||
| Changes in fair value of derivative liability | (6,544 | ) | (16,857 | ) | ||||
| Gain on sale of property and equipment | (1,069 | ) | - | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | 297 | (1,367 | ) | |||||
| Prepaid and other current assets | 6,568 | (1,539 | ) | |||||
| Cash due from gateways, net | (5,407 | ) | (1,218 | ) | ||||
| Other assets | (1,183 | ) | (6 | ) | ||||
| Accounts payable | 189 | 1,161 | ||||||
| Accrued and other current liabilities | 2,080 | 2,662 | ||||||
| Accrued interest | 546 | 502 | ||||||
| Payment processing liabilities, net | 47,860 | 10,518 | ||||||
| Net cash provided by (used in) operating activities | 33,161 | (9,344 | ) | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (108 | ) | (162 | ) | ||||
| Proceeds from sale of property and equipment | 2,620 | - | ||||||
| Logicquest Technology acquisition | (225 | ) | - | |||||
| Deposit on acquisitions | - | (936 | ) | |||||
| Purchase of intangibles | - | (500 | ) | |||||
| Transact Europe Holdings acquisition | - | (28,811 | ) | |||||
| Sky Financial & Intelligence asset acquisition | - | (16,000 | ) | |||||
| Net cash provided by (used in) investing activities | 2,287 | (46,409 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Treasury stock purchases | 7 | (4,057 | ) | |||||
| Proceeds from stock option exercises | - | 8 | ||||||
| Repayments of convertible debt | (3,000 | ) | (6,000 | ) | ||||
| Repayments on long-term debt | (15 | ) | - | |||||
| Net cash used in financing activities | (3,008 | ) | (10,049 | ) | ||||
| Restricted cash acquired from Transact Europe | - | 16,719 | ||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 32,440 | (49,083 | ) | |||||
| Foreign currency translation adjustment | 44 | 357 | ||||||
| Cash, cash equivalents, and restricted cash – beginning of period | 40,834 | 89,560 | ||||||
| Cash, cash equivalents, and restricted cash – end of period | $ | 73,318 | $ | 40,834 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 2,709 | $ | 5,751 | ||||
| Income taxes | $ | - | $ | - | ||||
| Non-cash financing and investing activities: | ||||||||
| Convertible debt conversion to preferred stock | $ | 64,600 | $ | - | ||||
| Convertible debt conversion to common stock | $ | 1,650 | $ | 8,550 | ||||
| Interest accrual from convertible debt converted to preferred stock | $ | 1,703 | $ | - | ||||
| Interest accrual from convertible debt converted to common stock | $ | 4 | $ | - | ||||
Use of Non-GAAP Financial Information
Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) is a non-GAAP measure that represents our net loss before interest expense, amortization of debt discount, income tax expense, depreciation and amortization, changes in the fair value of derivative liabilities, losses on the extinguishment and derecognition expenses on the conversion of convertible debt, non-cash stock-based compensation expense, acquisition-related expense, non-recurring provisions for credit losses on legacy matters, accounting fees related to the restatement of prior period financial statements, non-recurring costs related to the spin-off of a subsidiary, and legal costs and settlement fees incurred in connection with non-ordinary course litigation and other disputes.
We exclude these items in calculating Adjusted EBITDA because we believe that the exclusion of these items will provide for more meaningful information about our financial performance, and do not consider the excluded items to be part of our ongoing results of operations. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are: (a) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (b) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (c) Adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (d) Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and (e) other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces its usefulness as a comparative measure.
Because of these and other limitations, you should consider Adjusted EBITDA alongside our other GAAP-based financial performance measures, net income (loss) and our other GAAP financial results. The following table presents a reconciliation of Adjusted EBITDA from net loss, the most directly comparable GAAP measure, for the periods indicated:
Reconciliation of Net Income (Loss) attributable to RYVYL, Inc., to Adjusted EBITDA for the
Three and Twelve Months Ended December 31, 2023 and 2022
(in thousands, except share and per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net loss | $ | (30,003 | ) | $ | (16,016 | ) | $ | (53,101 | ) | $ | (49,236 | ) | |||
| Interest expense | 30 | 754 | 3,340 | 8,169 | |||||||||||
| Accretion of debt discount | 3,508 | 2,440 | 13,134 | 13,980 | |||||||||||
| Income tax expense (benefit) | 151 | (46 | ) | 289 | (8 | ) | |||||||||
| Depreciation and amortization | 654 | 16,037 | 2,553 | 20,917 | |||||||||||
| EBITDA | (25,660 | ) | 3,169 | (33,785 | ) | (6,178 | ) | ||||||||
| Other non-cash adjustments | |||||||||||||||
| Changes in fair value of derivative liability | 35 | (2,265 | ) | (6,544 | ) | (16,857 | ) | ||||||||
| Derecognition expense on conversion of convertible debt | 23,516 | (4,053 | ) | 25,035 | 5,710 | ||||||||||
| Stock compensation expense | 1,544 | 240 | 1,853 | 2,969 | |||||||||||
| Special Items | |||||||||||||||
| Non-recurring legal settlements and ongoing matters and related legal fees | - | - | 5,308 | - | |||||||||||
| Carryover effects of financial statement restatements in prior periods | 691 | - | 1,913 | - | |||||||||||
| Non-recurring provision for credit losses on legacy matters | - | - | 1,994 | - | |||||||||||
| Accounting fees related to the restatement of prior period financial statements | - | - | 237 | - | |||||||||||
| Non-recurring impairment of right of use asset | - | - | 100 | - | |||||||||||
| Non-recurring costs of spin-off | - | - | 29 | - | |||||||||||
| Adjusted EBITDA | $ | 126 | $ | (2,909 | ) | $ | (3,860 | ) | $ | (14,356 | ) | ||||
| Loss from operations | $ | (2,832 | ) | $ | (18,769 | ) | $ | (12,302 | ) | $ | (37,838 | ) | |||
| Last Trade: | US$1.38 |
| Daily Change: | 0.03 2.22 |
| Daily Volume: | 39,068 |
| Market Cap: | US$9.330M |
August 13, 2024 May 14, 2024 December 14, 2023 November 13, 2023 | |
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