Earnings Call Transcript - OLB Q2 2023

Patrick Smith, CEO

Hello, everyone, and thank you for taking the time to be with us on our earnings call. I will pause for 15 to 20 seconds for everybody to read the forward-looking statements. Today, we do over $1.3 billion in cost transactions and we have around 28 new transactions with over 10,000 merchants. On our gateway, we have 300 to 500 clients, and it's running over 130 industries in all 50 states. As I mentioned before, we have over 10,000 merchants in 50 states. We are also dealing with our wholly owned subsidiary that has 1,000 miners today and we are in the process of getting the mining before the year-end. We are diversified through our operations in all 50 states. With all those 10,000 merchants, we have no concentration of client base. None of our merchant representatives even represent 1% of the revenues. So quickly, I'll go over the financial information. As of this morning, we were at $0.65 a share with a market cap of $9.9 million. We have a total of 15.3 million outstanding shares, of which almost 2.4 million shares are actually in public float, right at 5 million of the shares are insiders, putting the public float at 67% and insider ownership at 33%. Regarding some of the investment highlights, we have diversified revenue from FinTech and Bitcoin mining. Currently, our revenue from Bitcoin mining is projected at $300,000 monthly, based on a Bitcoin price of $30,000. The total Bitcoin mining projected combined revenue is around $30 million to $35 million. This is expected once we have all 1000 miners up and running, with spin-off to shareholders before the end of 2023.

Unknown Executive, Executive

Our core business is based on products and merchant services. We have an e-commerce platform that includes a website and new store model, along with a secure gateway. This is a significant aspect for a small company like us. We are certified with this processing capability. CrowdPay is our crowdfunding platform, and eVance is our merchant service platform through which we handle underwriting risk monitoring, customer support, sales force, merchant onboarding, and residual payments.

Patrick Smith, CEO

Just quickly to kind of go over this, the DMint facility is located in Selmer, Tennessee. We purchased this last year, acquiring a 15,000 square foot building on 4.7 acres. The majority of the energy comes from clean energy, which is part solar and part hydro. We continue adding capacity in different phases. Phase 1 is for 5 megawatts, which supports 1,000 machines. Phase 2, which we're looking to finish up right now, is an additional 15 megawatts to the initial 5, with 4,000 machines running, which will give us a total of 20 megawatts of machines operating at this facility. The facility is designed to handle 5,000 machines once everything is completed. This is essentially the value proposition for our shareholders. We are in the process of preparing for a spin-off, as we are finalizing our filings and anticipate this will be done shortly after Labor Day.

Unknown Executive, Executive

It would be the first initial filing, and the next will follow.

Patrick Smith, CEO

Correct. This is essentially showcasing what our facility does. We have a direct connection to the grid, Phase I for the 1,000 machines is operational, and we own those machines at the facility.

Unknown Executive, Executive

We've completed the year-end financials for '21, '22, and Q1 and Q2 are nearing completion. As Patrick mentioned, we expect the announcements regarding the shareholder date and dividend pre Labor Day. We are proud of our achievements in establishing a robust business model, particularly with our point-of-sale systems and e-commerce transactions. We also own 80% of a new mobile services company, and this partnership with a leading provider positions us well in the market.

Patrick Smith, CEO

To recap, for the second quarter of 2023, we reported revenue of $8.3 million, which is a marginal decline of 0.3% compared to the previous quarter and down $28,000 compared to last year. Our net income loss was $618,000, an improvement from the loss of $1 million last year, primarily due to amortization adjustments. We had an adjusted EBITDA of $1.2 million, compared to $98,000 for the same quarter last year. Currently, we have a run rate revenue of around $33 million, excluding additional machines once they're operational, and total assets around $37 million, all while maintaining zero debt.

Unknown Executive, Executive

The current market valuation indicates that our metrics are extremely favorable. We plan to issue stock dividends to all shareholders, and we're excited about new revenue initiatives and expanding our physical footprints based on our latest acquisitions. We are enhancing in-house marketing efforts and purchasing more stock. We will announce details on our additional purchases soon, and we firmly believe in the company's potential.

Patrick Smith, CEO

Thank you, everyone. Now we are open to questions. If anyone has questions, please feel free to ask.

Unknown Executive, Executive

We currently have around 250 miners operational. We expect to have 753 miners going online as soon as the power is completed and certified by the local electrical authority, which we anticipate will be done before the year ends.

Patrick Smith, CEO

Any other questions?

Unknown Executive, Executive

If nobody has any other questions, thank you very much for your time. We're always happy to answer anyone that has any questions. You can also reach out via chat or email.

Patrick Smith, CEO

Thanks, everybody, for your time today.

Unknown Executive, Executive

Thank you.