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Adjusted Gross Profit Grows Year over Year 19%
2024 Point of Sale Store Growth of over 50%
Successful eCommerce & Menu Launch
Groundwork laid for future success – OpEx decrease of 35% in 2024
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TORONTO & SEATTLE — POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF) (the “Company” or “POSaBIT”), a leading provider of payments infrastructure in the cannabis industry, today announced its financial results for the three and twelve months ended December 31, 2024.
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“After a turbulent 2023 for the cannabis industry at large, POSaBIT’s main focus in 2024 was solidifying the health of the company for the present and the future. There were few, if any, winners in our industry over the past two years, but we are proud of how deftly we’ve placed POSaBIT in a position to thrive in the long run,” said Ryan Hamlin, co-founder and CEO of POSaBIT.
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Hamlin continued, “Adjusted gross profit dollars increased 19% year over year, OpEx is down significantly, and our cash situation is relatively unchanged. Our Point-of-Sale business – with its steady monthly revenue and future payments revenue potential – continues to grow rapidly and has gained an incredible reputation across the cannabis industry. Through our world-class products, POSaBIT remains focused on consistent and responsible growth.”
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Recent Operational Highlights
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- POSaBIT continues to dominate its home market of Washington State, with its Point of Sale now in over 70% of all dispensaries and processing over 85% of all sales
- Since the beta launch of POSaBIT’s eCommerce/Menu in Q3 of 2024, nearly 100 dispensaries have adopted the eComm platform
- Quarter over quarter adjusted revenue, adjusted gross profit and adjusted EBITDA remains stable, a trend that is expected to continue throughout 2025
- POSaBIT continues to focus on operational efficiencies to ensure POSaBIT remains cash flow positive in 2025
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Balance Sheet
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As of December 31, 2024, the Company had cash and cash equivalents of $1 million compared to $1.5 million as of December 31, 2023. This slight reduction in cash is due to paying off aged accounts payables as well as a cash settlement for an outstanding lawsuit.
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Financial Results
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in US Dollars | Twelve Months ended | ||
December 31, 2024 | December 31, 2023 | % Chg. | |
Revenue | $15,273,846 | $43,575,060 | (65)% |
Cost of goods sold | $(8,269,317) | $(34,353,041) | 76% |
Gross profit | $7,004,529 | $9,222,019 | (24)% |
GP margin % | 46% | 21% | 25% |
Operating costs | $(12,175,821) | $(18,769,176) | 35% |
Operating income (loss) | $(5,171,292) | $(9,547,157) | 46% |
Other (expenses) income | $(557,307) | $(3,978,073) | (86)% |
Income (Tax) Recovery | $12,240 | $(235,200) | 105% |
Income (loss) | $(5,716,359) | $(13,760,430) | 59% |
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The following table discloses Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA for Q4 2024 compared to Q3 2023.
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| in US Dollars | Q4 vs. Q3 2024 Adjusted Financials | |
Q4 2024 | Q3 2024 | |
Adjusted Revenue | $4,069,594 | $4,983,787 |
Adjusted Gross Profit | $2,611,622 | $2,711,141 |
Adjusted EBITDA | $82,904 | $148,128 |
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The following tables reconcile Revenue, as reported to Adjusted Revenue, Gross Profit, as reported to Adjusted Gross Profit and EBITDA, as reported to Adjusted EBITDA for the twelve months ended December 31, 2024.
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| in US Dollars | Full Year 2024 Adjusted Financials |
December 31, 2024 | |
Revenue as reported | $15,273,846 |
Add: Cash receipts from licensing contracts | $4,918,145 |
Deduct: Licensing support revenue | $(1,545,000) |
Adjusted Revenue | $18,646,991 |
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December 31, 2024 | |
Gross Margin as reported | $7,004,529 |
Add: Cash Receipts from Licensing contracts | $4,918,145 |
Add: One-Time Channel Partner revenue-sharing payment (excluded in prior periods) | $178,000 |
Deduct: Licensing Support Revenue as reported | $(1,545,000) |
Adjusted Gross Profit | $10,555,674 |
Adjusted Gross Profit Margin | 57% |
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December 31, 2024 | |
Loss, as reported | $(5,716,359) |
Deduct: Foreign exchange gains, as reported | $(298,941) |
Add: Share-based compensation, as reported | $1,184,450 |
Add: Depreciation, as reported | $152,131 |
Deduct: Change in expected credit losses, as reported | $(10,917) |
Add: Finance costs, as reported | $454,530 |
Add: Write-off obsolete revenue-generating equipment, as reported | $410,062 |
Add: Interest accretion, as reported | $18,175 |
Add: Litigation settlements, as reported | $350,000 |
Add: Bad debts (net of bad debt recoveries), as reported | $16,210 |
Add: Transaction costs, as reported | $210,976 |
Deduct: Income tax recovery, as reported | $(12,240) |
EBITDA | $(3,241,923) |
Deduct: Licensing support revenue, as reported | $(1,545,000) |
Deduct: Licensing revenue interest income, as reported | $(891,729) |
Add: Cash receipts from licensing agreement, as reported | $4,918,145 |
Adjusted EBITDA | $(760,507) |
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Conference Call Information
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Date: April 24, 2025
Time: 4:30 PM Eastern Time
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 977825
Webcast URL: https://www.webcaster4.com/Webcast/Page/2708/52361
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Conference Call Replay Information:
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The replay will be available approximately 1 hour after the completion of the live event.
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Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 52361
Webcast Replay URL: https://www.webcaster4.com/Webcast/Page/2708/52361
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Financial Reports
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Full details of the financial and operating results are described in the Company’s consolidated financial statements for the three and twelve month periods ended December 31, 2024 with accompanying notes. The consolidated financial statements and additional information about POSaBIT are available on the Company’s website at www.posabit.com/investor-relations or on SEDAR+ at www.sedarplus.ca.
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Non-IFRS Measures
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Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and may not be comparable to similar measures presented by other companies. The Company defines Adjusted Revenue as gross revenue, minus license support revenue, plus actual licensing cash received as part of POSaBIT’s licensing deals. The Company defines Adjusted Gross Profit as Adjusted Revenue less company cost of goods sold. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and further adjusted in accordance with the reconciliation table set out in this press release. The Company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA are not substitutes for gross revenue, gross profit or profit/loss, respectively.
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