OLB Group Announces Financial Results for First Quarter, 2024

NEW YORK, NY / ACCESSWIRE / May 21, 2024 / The OLB Group, Inc., (NASDAQ:OLB), a diversified Fintech eCommerce merchant services provider and cryptocurrency mining enterprise announced today its financial results for the First Quarter ending March 31, 2024. Investors can access the complete First Quarter 10-Q.

Key Financial Results for Q1 2024 as Compared to Q1 2023

Revenue was $3.5 million for the quarter, compared to $6.6 million in the prior year's quarter.

Net loss increased to $2.9 million compared to $2.6 million in the prior year's quarter.

Adjusted EBITDA was ($1.2) vs $752 K in the prior year's quarter.

Net loss per basic and diluted common share decreased by $0.03 to ($0.14) for the quarter vs. ($0.17) in the prior year quarter.

The decrease in revenue was largely the result of the closure of the merchant portfolio that was acquired from FFS Data Corp. in the fourth quarter of 2021.The removal of the merchants is the subject of ongoing litigation with FFS Data Corp and Clear Fork Bank.

Key Business Highlights for Q1 2024

The Company regains compliance with Nasdaq minimum bid price requirement for continued listing on the Nasdaq Capital Markets.

On May 20, 2024 the Company acquired the remaining 19.9% of Black011 subsidiary, resulting in 100% ownership. The Company plans to unveil how it will rebrand the products and services in the near future.

Signed seven new minor league baseball teams as new customers for payment processing and other software applications.

Continued to increase revenue and sales, including sales representatives in the field, in Black011, wholly owned subsidiary.

The Company is engaged in ongoing litigation with FFS Data relating to a breach of contract in connection with the portfolio of merchants acquired in 2021 (the "Acquired Merchant Portfolio"), whereby the Company is making a claim to recover the purchase price it paid for the Acquired Merchant Portfolio and FFS is claiming that it should be paid the remaining portion of the purchase price of the Acquired Merchant Portfolio which was not paid because of the breaches of representations made by FFS about the underwriting of the merchants in the Acquired Merchant Portfolio. In addition, in connection with the litigation with FFS, OLB has also made a claim against Clear Fork Bank (the "Bank"), the payment processing bank for the Acquired Merchant Portfolio, for damages the Company suffered as a result of it having to cease processing transactions for the merchants underlying the Acquired Merchant Portfolio. The Bank has filed a counterclaim for fees incurred by it in connection with the transactions processed since the acquisition of the Acquired Merchant Portfolio by the Company. However, the damages claimed have been materially reduced over time due to account balancing which was not completed at the time of the counterclaim.