The OLB Group, Inc.

For fiscal 2023, revenue was $30.6 million versus $30.4 million in 2022, described as basically flat year over year. Operating expense increased to $54 million from $39 million, including a $12.9 million impairment. Net loss was $23.3 million versus $8.2 million last year, and net loss per share was $0.65 versus $0.56. Management did not give formal next-quarter or full-year revenue/EPS guidance, but said it expects to stabilize the company in Q1 of this year, does not plan to raise capital until after the spin-off, and expects a DMINT dividend distribution around or before the second quarter.

Ronny Yakov emphasized that the company is in recovery mode after discovering issues with the acquired FFS portfolio, which he said involved undisclosed and illegal merchant boarding activity. He struck an optimistic tone around the bodega distribution business, new services like eSIM and prepaid cards, and the DMINT spin-off, saying those areas could unlock value and help both businesses grow. He also said management believes the stock is undervalued and plans to buy shares when permitted.

Patrick Smith said the year’s revenue was essentially flat at $30.6 million versus $30.4 million, while operating expenses climbed to $54 million from $39 million due in part to a $12.9 million impairment. He broke out higher legal expenses of $1.3 million tied to the FFS and Clear Fork Bank matters, higher SG&A from bank fees linked to the FFS portfolio, and higher salaries after the Black011 acquisition. He also said the company has 0 debt and $19 million in assets, and noted that the FFS impairment stemmed from the portfolio being shut down in early 2024 and written off in 2023.

Analysts and shareholders focused on the DMINT spin-off timing, reverse split, capital needs, and the weak fourth-quarter revenue trend. Management said the spin-off process is still in SEC comment rounds, with audited 2021-2023 financials completed, and said it expects a dividend distribution around or before second quarter, while the reverse split vote is set for April 26 to help maintain NASDAQ compliance. On capital, management said it is trying not to raise more before the spin-off, and on the Q4 revenue decline it said the FFS portfolio was being wound down and large merchants were turned off. They also said 700 rigs are unused pending electrical work and that Bitcoin mining cost is around $20,000 to $21,000 per Bitcoin at current conditions.