Toronto, Ontario--(Newsfile Corp. - November 29, 2023) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), an emerging North American leader in the Banking-as-a-Service (BaaS) market with a platform that modernizes budgets and payments for enterprises and consumers is pleased to provide its first quarter financial results for the period ending September 30, 2023.
FINANCIAL HIGHLIGHTS
- Revenue grew 13% to $1,581,419 for the quarter ending September 30, 2023, versus $1,403,518 for the previous quarter ending June 30, 2023;
- Improved revenue diversification with 11% of revenue coming from the Company's previously announced Canadian licensing deal;
- $169,444 of licensing revenue was recognized representing only a month of licensing revenue which will be reported and earned at a rate of $508,332 per quarter going forward over three years, significantly increasing future revenue and earnings;
- Adjusted loss declined by 25% to $507,797 for the quarter ending September 30, 2023 ($680,878 for the quarter ending June 30, 2023); and
- Quarterly Gross margins remain strong at 89%.
OPERATING AND STRATEGIC MATTERS
Quarter end adjusted loss from operations improved to $507,797 from $680,878 for the last quarter. This was primarily due to stronger revenue growth from new licensing revenue streams and operating cost efficiencies undertaken by the Company over the year. Operating expenses remain relatively the same at $1,917,980 compared to $1,913,268 for the last quarter.
On March 28, 2023, the Company had announced the signing of a National Technology License Agreement with an initial term of three years comprising a minimum base revenue of $5 million plus 22% maintenance for a total of $6.1 million in revenue to be earned evenly over the term. In September 2023 the Company recognized $169,444 of revenue and expects to do so monthly for the minimum term of three years, or $508,332 per quarter and over $2,000,000 in incremental recurring annual revenue.
Over the quarter ending September 30, 2023, the Company also onboarded its first school under the Hank EDU platform and expects to launch additional schools and generate material revenue growth and diversification in the upcoming quarters.
Michael Hilmer, Chairperson and CEO commented, "We are excited to initiate new revenue streams from previously announced endeavours and look forward to expanding channels such as Hank EDU imminently. Base revenue and cashflow related to new licensing deal are predictable and has potential for upside as and when the licensee exceeds minimum usage per the base license deal." He added, "We are confident or our execution of Hank EDU strategy and await new agreements and, Further, we look forward to continuing to innovate and launch new enterprise products throughout the upcoming year."
The Company granted 25,000 stock options at an exercise price of $0.10 to an employee. The options are subject to the standard provisions of the Company's Omnibus Equity Incentive Plan.
A comprehensive discussion of Hank's financial position and results of operations is provided in the financial statements and MD&A for the three month period ending September 30, 2023, filed on SEDAR.
About Hank Payments Corp.
Hank Payments Corp (the Company or "Hank") is an emerging North American leader in the Banking-as-a-Service (BaaS) market. The Hank platform modernizes budgets and payments for enterprises and consumers and automates tedious functions that result in time and economic savings for platform users. The Hank technology stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts ("Partners") that allow those Partners to operate new revenue streams, while modernizing legacy payments. The Company earns recurring transaction and licensing fees from consumers and enterprises and is active in several markets and geographies including Canada and the United States. For more information visit the Hank Payments website at www.hankpayments.com.
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts, and projections and include, without limitation, statements regarding the future success of the Company's business. Financial performance figures in Canadian Dollars unless otherwise indicated by "U" representing United States Dollars.
The forward-looking statements in this news release are based on certain assumptions. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Several factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information regarding Hank Payments Corp., please contact: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company's website at www.hankpayments.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/189072
