POSaBIT Systems Corp. (CSE: PBIT) (OTC: POSAF) reported a net loss of $1.9 million for the first three months of 2024, down from its $2.7 million loss in the first quarter of 2023, but also with dramatically reduced revenue.
The cannabis management and inventory software company pulled in just $3.7 million in revenue for the most recent quarter, a whopping 67% downturn from the $11.5 million in revenue in the first quarter a year ago.
The latest quarterly financial news follows a poor showing for POSaBIT in the full 2023 calendar year, in which it lost $13.8 million, down from its net income in 2022 of $5.4 million.
Still, CEO Ryan Hamlin projected confidence that the worst of the turbulence is behind the company.
“The market challenges we faced with our payments business at the end of 2023 and earlier this year are now behind us, and POSaBIT is poised for long-term profitability and growth through our recurring inflow of cash from our licensing contracts, increased adjusted gross profit margins, and a re-factored cost structure pushing us to profitability,” Hamlin said in a press release. “We now have multiple payment options in place for our customers to use and our point-of-sale business continues to grow and take more and more market share.”
Hamlin said that the decline in revenue year-over-year was offset by a similar decrease in the cost of goods sold, as well as new incoming revenue from new licensing contracts. Hamlin said that in the month of March, for instance, POSaBIT had adjusted revenue of $21 million, which he said positioned POSaBIT “to exit the quarter profitably.”
In its quest for profitability, POSaBIT recently launched a new Apple and Android pay application, put the finishing touches on banking and software adjustments so dispensary clients will be able to accept credit cards once cannabis rescheduling is completed, and made 25 new point-of-sale hardware installations in dispensaries in Colorado, Massachusetts, Oregon, and Washington.
As of March 31, POSaBIT had $11.8 million in total assets, including $883,991 in cash, against $7.9 million in total liabilities.