OLB Group Inc (OLB) 2022 Q1 法說會逐字稿

Matt, go ahead.

馬特，繼續吧。

Hi. All statements from the OLB Group in this conference call that are not based on historic fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.

你好。 OLB 集團在本次電話會議中並非基於歷史事實的所有聲明均為1995 年《私人證券訴訟改革法案》以及經修訂的1933 年《證券法》第27A 條和第27A 條規定含義內的前瞻性聲明。

These forward-looking statements include, but are not limited to, statements concerning the impact of COVID-19 on our operations and financial condition; our ability to implement our proprietary merchant reporting and CRM system and to roll out our omni-commerce and secure pay applications, including payment methods, to our current merchants and the integration of our secure payment gateway with our crowdfunding platform; our ability to successfully launch a cryptocurrency mining operation; and our ability to earn revenue from those new operations.

這些前瞻性陳述包括但不限於有關 COVID-19 對我們營運和財務狀況影響的陳述；我們有能力實施我們專有的商家報告和CRM 系統，並向我們現有的商家推出我們的全商務和安全支付應用程式（包括支付方式），以及將我們的安全支付網關與我們的眾籌平台整合；我們成功開展加密貨幣挖礦業務的能力；以及我們從這些新業務中賺取收入的能力。

While the company's management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements may rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements.

雖然公司管理層根據其當前預期做出了本文中包含的任何前瞻性陳述，但此類預期所依據的資訊可能會發生變化。這些前瞻性陳述可能依賴有關未來事件的許多假設，並受到許多風險、不確定性和其他因素的影響，其中許多因素超出了我們的控制範圍，可能導致實際結果與此類陳述有重大差異。

Such risks, uncertainties, and other factors include statements regarding the expected revenue and income for operations to be generated by the OLB Group. For other factors that may cause our actual results to differ from those that are expected, see the information under the caption Risk Factors in the company's most recent Form 10-K and 10-Q filings and amendments thereto, as well as other public filings with the SEC since such date.

此類風險、不確定性和其他因素包括有關 OLB 集團業務預期收入和收入的聲明。對於可能導致我們的實際結果與預期不同的其他因素，請參閱本公司最近的 10-K 和 10-Q 表格文件及其修正案以及其他公開文件中「風險因素」標題下的資訊。向SEC 提交。

The company operates in a rapidly changing and competitive environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The company disclaims any intention to and undertakes no obligation to update or revise any forward-looking statement.

公司在快速變化和競爭的環境中運營，可能會出現新的風險。因此，投資人不應依賴前瞻性陳述作為實際結果的預測。該公司不打算也不承擔更新或修改任何前瞻性聲明的義務。

Thank you, Matt. As you guys know, we are a company that is doing online, in-store, on-mobile, and lately, cryptocurrency mining and crypto payments. As far as the COVID situation, we are pretty much back on track 100% with all our merchants, and we are extremely excited because we introduced more offerings and more features to them today. Today, we do, approximately -- next slide, Matt. Can you move to the next slide? Yes, $1.3 billion in transactions, $28 million in transactions, and we have over 10,500 merchants. Our core business is OmniSoft, that is our system. That is the e-commerce system. SecurePay is our payment gateway, CrowdPay is our crowdfunding platform, and eVance is our onboarding and our merchant services. Those merchant services today, they are mostly the business, and that's the main foundation of the business.

謝謝你，馬特。如你們所知，我們是一家從事線上、店內、行動裝置以及最近的加密貨幣挖礦和加密支付業務的公司。就新冠疫情的情況而言，我們所有商家幾乎 100% 回到了正軌，我們非常興奮，因為我們今天向他們推出了更多產品和更多功能。今天，我們大約做下一張投影片，馬特。您可以轉到下一張投影片嗎？是的，13 億美元的交易，2,800 萬美元的交易，我們有超過 10,500 家商家。我們的核心業務是OmniSoft，那就是我們的系統。那就是電子商務系統。 SecurePay 是我們的支付網關，CrowdPay 是我們的群眾募資平台，eVance 是我們的入職和商家服務。今天那些商家服務，他們主要是生意，這是生意的主要基礎。

The new services that we started offering this year and for next year would be the Crypto Accept. Crypto Accept is payments with cryptocurrencies. We're also integrating now Crowd Ignition that we just acquired in early of this year. We're focusing also on, in the future, having also ATM machines for Bitcoin mining and also lending to our existing merchants. So that's eVance Capital.

我們今年和明年開始提供的新服務是 Crypto Accept。 Crypto Accept 是使用加密貨幣的付款。我們現在還整合了今年年初剛獲得的 Crowd Ignition。未來我們也致力於擁有用於比特幣挖礦的 ATM 機，並向我們現有的商家提供貸款。這就是 eVance Capital。

If you look at -- those are the two new subsidiaries that we established in late 2021. It's -- OLBit is the company that is going to be our intellectual properties in the Bit license. The idea there is we'll be able to trade the cryptocurrencies on behalf of our customers that are the merchants. And DMint is our Bitcoin mining operation that we already purchased 1,000 machines.

如果你看一下——這些是我們在 2021 年底建立的兩家新子公司。我們的想法是，我們將能夠代表我們的客戶（即商家）交易加密貨幣。 DMint 是我們的比特幣挖礦業務，我們已經購買了 1,000 台機器。

We believe that by end of this quarter, we got to have up and running the entire 1,000 machines that we purchased. And the operation is running in Bradford, Pennsylvania in two locations.

我們相信，到本季末，我們必須啟動並運行我們購買的全部 1,000 台機器。該業務正在賓州布拉德福德的兩個地點進行。

As you can see, the synergy between the companies is from the merchant services and up to Omni Commerce and crowdfunding and payments. That's the existing services that we had until last year. You can see the next slide, we added additional two services that are complementary to all the other services. So DMint, the Bitcoin mining; and the OLBit, the acceptance of cryptocurrencies, are going to be part of the integrated system for everybody.

正如您所看到的，公司之間的協同作用從商家服務一直到 Omni Commerce 以及眾籌和支付。這是我們去年之前提供的現有服務。您可以看到下一張投影片，我們增加了另外兩項服務，作為所有其他服務的補充。 DMint，比特幣挖礦； OLBit（接受加密貨幣）將成為每個人的整合系統的一部分。

Next slide. And you can see on each one of them, what is the achievements that we did this year? We established ticket system for NFTs through the merchant services. On the payment gateway, we are accepting crypto, the two new locations on DMint that have been established and the Bit license that is already in motion that we're going to file very soon. We created also a blockchain in the crowdfunding and the new CBD portfolio that we acquired late 2021.

下一張投影片。大家可以在每一張上面看到，我們這一年取得了哪些成績？我們透過商家服務建立了NFT的票務系統。在支付網關上，我們正​​在接受加密貨幣，DMint 上已經建立的兩個新位置以及已經在運行的比特許可證，我們很快就會提交。我們也在眾籌中創建了區塊鏈，並在 2021 年底收購了新的 CBD 投資組合。

And now, if you can move -- Patrick, you want to talk about the numbers?

現在，如果你可以移動——帕特里克，你想談談數字嗎？

Sure. At this time, we'll go over some of the first-quarter numbers for this year. The revenue we had this year, first quarter of 2022 compared to 2021, went from $2.2 million in 2021 to $8.7 million in 2022, which was a 4 times multiple.

當然。這次，我們將回顧今年第一季的一些數據。與 2021 年相比，我們今年（即 2022 年第一季）的營收從 2021 年的 220 萬美元增至 2022 年的 870 萬美元，翻了 4 倍。

Most of the growth was due to the new portfolio, and it was also organic. The baseline that we had did increase merchants and also volume and also profitability for this quarter. The increase in revenue was actually able to increase a positive EBITDA of around $550,000 -- it was a previous slide, madam, sorry.

大部分的成長歸功於新投資組合，而且也是有機的。我們的基準確實增加了本季的商家、數量和獲利能力。收入的增加實際上能夠使 EBITDA 增加約 550,000 美元——這是之前的幻燈片，女士，抱歉。

Yeah, we had an adjusted positive EBITDA of around $550,000. That was up from last year when it was a negative $689,000, which is a $1.2 million increase to our EBITDA. And you can see there -- if you take all the assets of the company, we have around $45 million in assets.

是的，我們的調整後正 EBITDA 約為 550,000 美元。這比去年的負 689,000 美元有所上升，這比我們的 EBITDA 增加了 120 萬美元。你可以看到，如果你考慮公司的所有資產，我們的資產約為 4500 萬美元。

If you go to the next slide, also, one of the things that really increased was our gross profit. Last year, in Q1, we had a gross profit of around $463,000. This year, we have $1.5 million in gross profit. We do still have a negative income loss, a net loss of $1.4 million. The majority of this net loss is related to the depreciation and the amortization of the equipment and the purchases of the portfolios last year. So that's the majority of the loss. But as I stated in the previous slide, we have a positive EBITDA.

如果你看下一張投影片，真正增加的事情之一就是我們的毛利。去年第一季度，我們的毛利約為 463,000 美元。今年，我們的毛利為 150 萬美元。我們仍然有負收入損失，淨損失為 140 萬美元。淨虧損的大部分與去年設備的折舊和攤提以及投資組合的購買有關。所以這就是大部分損失。但正如我在上一張投影片中所說，我們的 EBITDA 為正值。

Also, for the first quarter, we are going to end the quarter with around $4 million in the bank. We do not have any debt. The only thing we have open right now is we have some leases on some of our miners from $750,000. But like I said, we've got $4 million of cash in the bank and zero debt other than that.

此外，對於第一季度，我們將在季度末擁有約 400 萬美元的銀行存款。我們沒有任何債務。我們現在唯一開放的是我們對一些礦機的一些租賃，起價為 75 萬美元。但就像我說的，我們銀行裡有 400 萬美元的現金，除此之外的債務是零。

The 2022 outlook, we're right now on a pace of $36 million in revenue. This revenue here, the $36 million, is only for the fintech products. It does not include the Bitcoin. And we also look into -- one of the things we're looking to do by the end of this year, we'd like to be net income positive, which we really feel strongly that we will be by the end of this year.

展望 2022 年，我們目前的營收目標是 3,600 萬美元。這裡的 3,600 萬美元收入僅來自金融科技產品。它不包括比特幣。我們也研究了我們希望在今年年底前完成的事情之一，我們希望淨利潤為正，我們強烈認為我們將在今年年底實現這一目標。

Once we have the 1,000 miners, we actually feel we'll have another $6.5 million in revenue based off just the Bitcoin mining. And that $6.5 million is based off today's price of Bitcoin. Ronny?

一旦我們擁有 1,000 名礦工，我們實際上認為僅透過比特幣挖礦就能獲得另外 650 萬美元的收入。這 650 萬美元是根據今天的比特幣價格計算的。羅尼？

Yes, and basically, I mean, we strongly feel that our stock is totally undervalued. We are trading almost like a half-time revenue of comparing to anyone else that trade 4 or 5 times revenues. And now, we are open also to -- if anyone has any questions.

是的，基本上，我的意思是，我們強烈感覺到我們的股票被完全低估了。與其他交易收入 4 或 5 倍的其他公司相比，我們的交易收入幾乎是一半。現在，如果有人有任何疑問，我們也願意回答。

One thing I'd like to say real quick, looking at the revenue, the forward-looking revenue. The $36 million does not include the Bitcoin mining of $6.5 million. So if everything has to go together, we would have $42.5 million in revenue.

我想快速說一件事，看看收入，前瞻性收入。這 3,600 萬美元不包括 650 萬美元的比特幣開採。因此，如果一切都齊頭並進，我們將獲得 4,250 萬美元的收入。

And lately, the volatility of pretty much the cryptocurrencies definitely affected that. We are definitely making most of the money today from the merchant services and not from the cryptocurrency. And in a way, we have some sort of diversification on revenues. So if one is down, the other one is balancing that. And if anyone has any questions, please put the text on the chat. We had earlier some questions that Patrick and I are going to address.

最近，幾乎所有加密貨幣的波動性肯定對此產生了影響。我們今天的大部分收入肯定來自商業服務，而不是加密貨幣。在某種程度上，我們的收入實現了某種多元化。因此，如果其中一個失敗，另一個就會平衡這一點。如果有人有任何疑問，請在聊天中留言。早些時候我們有一些問題，帕特里克和我要解決。

Do you expect to have the 1,000 machine is up and running soon? The answer is yes. By end of this quarter, we're going to have all of them up and running.

您預計 1,000 台機器很快就會啟動並運行嗎？答案是肯定的。到本季末，我們將使所有這些都啟動並運行。

The second question is, will the company pursue with the hold strategy or sell the Bitcoin as they all are mined. The Bitcoin is very low now, the price, so we're probably going to hold until it gets to at least back to what it was before, $45,000 or $60,000. And then we're going to reevaluate that again.

第二個問題是，該公司是否會採取持有策略，還是在比特幣全部開採完畢後出售比特幣。比特幣現在的價格非常低，所以我們可能會持有比特幣，直到它至少回到之前的水平，即 45,000 美元或 60,000 美元。然後我們將再次重新評估這一點。

Obviously, we're not planning to raise more money and dilute all the shareholders, so most likely we're going to do additional financing for more machines in the fashion of debt financing and selling some of those Bitcoin.

顯然，我們不打算籌集更多資金並稀釋所有股東的股權，因此我們很可能會以債務融資和出售部分比特幣的方式為更多機器提供額外融資。

The e-commerce business is growing month to month in transaction volume and in merchant accounts. Yes, it is growing. It's growing in a certain percent comparing to our existing merchants. So the more merchants we have, the more e-commerce we have in addition of that. So it's complementary services that we provide.

電子商務業務的交易量和商家帳戶數量逐月成長。是的，它正在增長。與我們現有的商家相比，它正在以一定的百分比成長。因此，我們擁有的商家越多，我們擁有的電子商務就越多。所以這是我們提供的補充服務。

We're going to post also the presentation online and send an e-mail to everyone that was on the call, and we plan to file on Monday.

我們還將在網路上發布演示文稿，並向參加通話的每個人發送電子郵件，我們計劃在周一提交。

Any other questions?

還有其他問題嗎？

If anyone has questions, please put them on the Q&A screen so we can address them.

如果有人有疑問，請將其放在問答畫面上，以便我們解決。

There's -- yeah, one of the questions that just came through is how many new merchants have you signed in the first quarter? Right now, we're signing anywhere from 100 to 150 new merchants a month. Some months are a little lower, like January was a little low -- that's just because it's a slow month every year. But we've added an average of about 100 to 150 new merchants per month. That's where the organic growth is coming from.

是的，剛出現的一個問題是，你們在第一季簽了多少新商家？目前，我們每個月都會簽 100 到 150 家新商家。有些月份會低一些，例如一月會低一點——那隻是因為每年都是一個緩慢的月份。但我們每月平均增加約 100 至 150 個新商家。這就是有機成長的來源。

So, Patrick, maybe you want to explain the percentage relationships? So how much is Bitcoin mining, and how much is the businesses that are fintech?

那麼，派崔克，也許你想解釋一下百分比關係？那麼比特幣挖礦有多少，金融科技企業有多少？

Sure, absolutely. Right now, our revenue, like I said, it was around -- let me get back to it. The revenue is around $8.7 million. Out of that $8.7 million, only about 3% right now is related to Bitcoin; 97% comes from the merchant service business, which is our strongest and most -- it is the most valuable piece of business at this point.

當然，絕對。現在，正如我所說，我們的收入已經到了——讓我回到正題。收入約870萬美元。在這 870 萬美元中，目前只有約 3% 與比特幣有關； 97%來自商家服務業務，這是我們最強、最有價值的業務。

It's growing. It's growing organically. It's a great business to be in. And like I said, that's still the core business that we are doing right now.

它正在增長。它正在有機增長。這是一項偉大的業務。

And that's a repeating business. So basically, we have good idea how are the next month going to look based on trends that we use for years. And usually, merchants stay with us, in average, over seven years. Okay. Any other questions?

這是一個重複的事情。所以基本上，根據我們多年來使用的趨勢，我們很清楚下個月會是什麼樣子。通常，商家平均在我們這裡待了七年以上。好的。還有其他問題嗎？

Somebody is asking if we have earnings report released or posted. The presentation that we just showed is going to be released probably by tomorrow and send a link. The latest you guys are going to see are those things on Monday that would be part of the 10-Q, and that would be also the press release followed by the 10-Q.

有人問我們是否已發布或發布收益報告。我們剛剛展示的簡報可能會在明天發布並發送連結。你們將在周一看到的最新內容將成為 10-Q 的一部分，這也將是 10-Q 後面的新聞稿。

Okay. With this, I would conclude. Thank you, everyone, being on the call, and [stay put] seeing the earnings. We're very excited about the business. [And I'd point out that the] share price, we have some consideration internally that we're going to do some sort of shares buyback in this respect or insider's buyback. Thank you, everyone.

好的。至此，我得出結論。謝謝大家，大家都在打電話，並[留在原地]看到收益。我們對這項業務感到非常興奮。 [我想指出]股價，我們內部有一些考慮，我們將在這方面進行某種股票回購或內部人回購。謝謝大家。

Thanks for your time. Have a great day.

感謝您抽出時間。祝你有美好的一天。