Toronto, Ontario--(Newsfile Corp. - May 29, 2023) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), is a North American leader in consumer Fintech Software-as-a-Service (SaaS) in the Banking-as-a-Service (BaaS) market segment. Hank platforms manage consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. Hank is pleased to provide its third quarter financial results for the period ending March 31, 2023.
FINANCIAL HIGHLIGHTS
Revenue for the third quarter ended March 31, 2023, grew 5% year over year to $1,452,072;
Revenue for the nine month period ending March 31, 2023, grew 17% year over year to $4,505,854;
Gross margins remain strong at 89%;
Operating expense reduction leads to lowest quarterly adjusted loss at $318,779;
Monthly Recurring Revenue per user ("MRR") is up year over year by 14% from $5.22 to $5.93 (excluding enrolment fees);
Company expects revenue from its Enterprise channel to initiate within the next two quarters to go along with its SMB (auto) only revenue.
SUBSEQUENT EVENTS AND UPDATES ON STRATEGIC OBJECTIVES
The Company is also pleased to provide updates on several previously disclosed strategic initiatives.
The Company continues to work on identifying and subsequently launching large scale enterprise partnerships to support the executed National Canadian License agreement;
The Company has signed its US College contract for its education platform. The client is expected to launch in June. With a funnel of over 100 schools Hank will make further investments in the sales and marketing team to expedite the growth of this high growth channel;
To date, two student records companies have approved Hank as a value-added partner, representing some 2,300 schools with access to approximately 5,000,000 students;
The Company expects to enrol schools monthly with the most meaningful enrolments for students occurring in the September semester;
On April 21, the Company closed a non-brokered private placement financing of 1,096 units, for total gross proceeds of $1,096,000. The use of proceeds from the financing will principally be to expand the Company's portfolio of clients and for general working capital.
Michael Hilmer, Chairperson and CEO commented, "We are extremely pleased to have weathered the small cap storm, without slowing down innovation or demand generation. By the end of calendar Q2 we expect to start seeing revenue from our Education channel, which should scale quickly through the year, followed in Q4 by licensing revenue from our Canadian License deal and their customers."
Hank also granted to employees a total of 50,000 options, with an exercise price of $0.10 and an expiry date of May 26, 2025, and 200,000 restricted share units. The options and RSUs are subject to the standard provisions of the Hank'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 and nine month periods ending March 31, 2023, filed on SEDAR.
About Hank Payments Corp.
Hank Payments Corp (the Company or "Hank") is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank 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 lines of business and revenue streams, using Hank. The Partners can benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets or improve cash flow using Hank. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. The Company acquires Users through various channels including (i) small to medium sized enterprises (the "SME Partners") and (ii) large enterprise businesses (the "Enterprise Partners"). The Company's BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our 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, including without limitation the Shares beginning trading on the TSXV. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of 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 as a result 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.
