XTM Revenue Recovered Back to 91% of Pre-COVID Levels
XTM, a Toronto-based Fintech company in the challenger banking space, providing mobile banking and payment solutions around the world announces the filing of its Q3 2020 Financial Statements and Management Discussion and Analysis for the period ending September, 2020. A comprehensive discussion of XTM financial position and results of operations is provided in the MD&A for the quarter ending September, 2020
Highlights (to be read together with the Company’s MD&A)
- As at September 30, 2020 the Company has seen revenues return to approximately 91% of pre COVID levels. During the nine-month period ended September 30, 2020 the Company’s gross revenue decreased by 9.43% compared to gross revenue during the nine months ended September 30, 2019. While the Company was trending towards higher revenues in early Q1 2020, the effects of COVID-19 played a significant role in the decline of revenues during the period. With almost 100% of XTM’s revenue being derived from its Today™ Card program servicing the hospitality, salon and personal care and food delivery companies.
- On October 27, 2020 the Company closed on a non-brokered private placement with gross proceeds totaling $821,522.25. Additionally, after the close of the Q3 period the Company had exercised warrants and options from October 1, 2020 to November 30, 2020 totaling $490,884 in gross proceeds. As at November 30, 2020 the Company has cash and current receivables in excess of $775,000. The Company also has $560K available from its debt facilities.
- The Company had a net loss in Q3 2020 of $342,282 or a loss per share of $0.004 compared to a loss of $346,304 or a loss per share of $0.004 in Q3 2019. The loss was mainly due to an increase in salaries, professional fees and marketing costs totaling $444,067 compared to $248,301 during the same period in 2019. Salaries increased $88,448 due to new hires primarily in IT with new product developments with the Vert Credit Program.
“We are bullish about coming months,” said Marilyn Schaffer, CEO, XTM. “Though the hospitality and personal care verticals are suppressed right now, like the fighters they are, so many restaurants and salon syndicates are getting prepared for a significant rebound. Onboarding staff to our Today digital gratuity and earnings solution, in record numbers, is a big part of that preparation. This combined with our entry to the United States puts us in a good position.”
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