Toronto, Ontario--(Newsfile Corp. - March 3, 2025) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), an emerging North American leader in the Banking-as-a-Service (BaaS) market with a platform that modernizes budgets and payments for enterprises and consumers is pleased to its second quarter financial results for the period ending December 31, 2024. All figures are in CAD.
FIRST QUARTER FINANCIAL HIGHLIGHTS
Revenue for the second quarter ending December 31, 2024, was $2.07 MM, an increase of 8% over the December 2023 quarter;
Revenue for the six-month period ending December 31, 2024, grew 18% year over year to $4.1 MM;
Gross margins remain strong at 89%;
Adjusted loss from operations for Q2 was $417,396 as compared to Q2, 2023 of $146,221 principally due to a transient increase in overhead post bank transition and acquisition related expenses which are expected to normalize through automation efforts by fiscal year end;
The Company expected a short-term expansion of adjusted loss from operations to accommodate new products, bank transition and business development and transaction overhead. This is expected to normalize in the coming quarters as the Company benefits from growth and automation and efficiency efforts already under way.
SUBSEQUENT EVENTS POST QUARTER:
The Company improved its balance sheet with the February 18, 2025, closing of a non-brokered private placement offering of 11,666,667 common shares at a price of $0.03 per share for the aggregate principal amount of $350,000. The Company also entered into agreements with certain creditors for the settlement of amounts owing in the aggregate amount of $461,675 in exchange for the issuance of an aggregate of 13,764,163 shares;
On February 19, 2025, the Company settled $744,000 of convertible debentures with the issuance of 9,920,000 common shares of the Company.
On February 25, 2025, the Company announced the closing of its acquisition of 100% of the shares of FUTR Inc. (the "FUTR"). The FUTR platform will allow Hank to consume and store key customer data in a SOC 2 compliant and encrypted platform. This automates key compliance and KYC work for Hank while also providing value added digital vaults to the consumers to store critical personal documents such as loans, leases, insurance and other relevant documents relating to the consumer's financial journey.
A comprehensive discussion of Hank's financial position and results of operations is provided in the financial statements and MD&A for the six-month period ending December 31, 2024, 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 benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the "Users"). 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. 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 https://ir.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.
