The OLB Group, Inc. (“OLB,” “we,” “us,” “our,” or the “Company”), a diversified Fintech eCommerce merchant services provider and Bitcoin cryptocurrency mining enterprise, announced its year end 2021 financial results.
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We are a diversified FinTech company and a payment facilitator that, through our subsidiaries, focuses on a suite of products in the merchant services and payment facilitator verticals. These services include electronic payment processing, cloud-based multi-channel commerce platform solutions for small to medium sized businesses and crowd funding services. The Company is focused on providing these integrated business solutions to merchants throughout the United States through three wholly-owned subsidiaries, eVance, Inc., Omnisoft.io, Inc., and CrowdPay.us, Inc.
In July 2021, we formed DMINT, Inc., a wholly owned subsidiary (“DMint”) to operate in the cryptocurrency mining industry. DMint has initiated the first phase of the cryptocurrency mining operation by placing purchase orders for data centers and ASIC-based Antminer S19J Pro mining computers specifically configured to mine Bitcoin. As a result of this newly formed business, the Company began to report its operational results in two segments – “Fintech Services” and “Cryptocurrency Business” in the fourth quarter of 2021.
Financial Highlights
Following its acquisition of a portfolio of merchants in the Cannabidiol (or “CBD”) industry, along with other merchants utilizing financial transaction processing services during the fourth quarter of 2022, the Company’s merchant services annualized transaction volume run rate has reached $1.35 Billion in transaction volume as a result of approximately 28.5 million transactions. This increased number of transactions resulted in an increase in revenue of 27.3% in the fourth quarter of 2022 compared with the same period in 2021.
For the year ended December 31, 2021, we had total revenue of $16,710,759 compared to $9,766,621 of revenue for the year ended December 31, 2020, an increase of $6,944,138 or 71.1%. The Fintech Services segment reported $16,406,755 of revenue and the Cryptocurrency Business segment reported $304,004 of revenue. We earned $15,810,626 in transaction and processing fees, $131,802 in merchant equipment rental and sales and $464,327 in other revenue during the year ended December 31, 2021, compared to $8,358,459 in transaction and processing fees, $88,538 in merchant equipment sales and $1,319,624 in other revenue during the year ended December 31, 2020.
For the year ended December 31, 2021, we had processing and servicing costs of $13,480,212 compared to $6,003,931 of processing and servicing costs for the year ended December 31, 2020. Processing and servicing costs increased by $7,4767,281 or 124.5%.
General and administrative expenses (“G&A”) for the year ended December 31, 2021 was $2,387,416 compared to $1,520,362 for the year ended December 31, 2020, an increase of $867,054 or 57%. In the current period we had increases of our contracted services of approximately $415,000 and computer and internet expense of approximately $197,000. The Fin tech Services segment attributed to $1,818,347 of GSA and the Crypto currency Business segment attributed to $569,069 of GSA during the year ended December 31, 2021.
Our net loss for the year ended December 31, 2021 was ($4,978,358) compared to ($1,776,727) for the year ended December 31, 2020. We had an increase in our net loss of $3,201,631 because of the expenses relating to the commencement of our Crypto currency Business segment and for the reasons discussed above.
Adjusted EDICTAL for the year ended December 31, 2021 was ($2,509,671). The adjustments include $461,051 for stock-based compensation, $116,737 of interest expense and $1,890,899 of depreciation and amortization.
For the three months ended December 31, 2021, we had total revenue of $8,826,862 compared to $2,226,404 of revenue for three months ended December 31, 2020, an increase of $607,169 or 27.3%. The Fin tech Services segment reported $8,522,858 of revenue and the Crypto currency Business segment reported $304,001 of revenue. We earned $8,374,309 in transaction and processing fees, $33,612 in merchant equipment rental and sales and $114,937 in other revenue during the three months ended December 31, 2021, compared to $2,090,264 in transaction and processing fees, $18,507 in merchant equipment sales and $117,633 in other revenue during the three months ended December 31, 2020.
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For the three months ended December 31, 2021, we had processing and servicing costs of $7,610,473 compared to $1,547,274 of processing and servicing costs for the three months ended December 31, 2020. Processing and servicing costs increased by $551,471 or 35.6%.
GSA expense for the three months ended December 31, 2021 was $977,460 compared to $392,335 for the three months ended December 31, 2020, an increase of $585,125 or 149.1%. The Fin tech Services segment attributed to $117,988 of GSA and the Crypto currency Business segment attributed to $480,967 of GSA during the year ended December 31, 2021.
Key Highlights for 2021
- Annual revenue increased to $16.71 million in 2021 from $9.77 million in 2020 (71% increase)
- $1.3B Million in transaction volume annualized run rate ending 2021
- 4.9 million transactions were processed in 2021
- Merchant services business increased $16.4 million in 2021 compared with 2020 (67.8% increase)
- Acquired exclusive natural gas purchasing rights for use in Crypto currency Business Segment’s Bicorn mining operations
- Acquired 1000 ASCII Biotin mining computers
- Acquired merchant portfolio and processing agreements adding 1,500 new merchants and customers
- Company continues to be debt free
- Raised approximately $31M in capital
- Established Crypto currency Business segment as a stand-alone business relating to the Company’s Biotin mining operation.
- Completed build out of two Biotin mining locations in Bradford, PA
- Enabled existing eCommerce applications to include crypto currency payment capabilities
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