Hank Payments Announces First Quarter September 30, 2022, Financial Results. Q1 Revenue Grows 31% on Sharply Lower Losses

Toronto, Ontario--(Newsfile Corp. - November 30, 2022) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), is a North American leader in consumer Fintech Software-as-a-Service (SaaS) that provides a platform that manages consumer cash flow and budgets on an automated basis using proprietary algorithms. Hank is pleased to provide its first quarter financial results for the period ending September 30, 2022.


  • Revenue for the first quarter ended September 30, 2022, grew 31% year over year to $1,541,588;
  • Gross margins remain strong at 91%;
  • Over $200,000 reduction in operating expenses leading to lowest adjusted losses in twelve months at $422,000 before the full effect of cost avoidance measures previously announced;
  • Monthly Recurring Revenue per user ("MRR") grows year over year by 18% from $5.15 to $5.52 (excluding enrolment fees) and expected to rise as users take up more high value products.


  • In November Hank announced the signing of a binding Memorandum of Understanding ("MOU") to enter into an exclusive negotiating period, to close a national license agreement for the use of the Hank technology platform in Canada. An initial term of five years, underpinned by minimum monthly licensing fees approaching material user counts over time and is commensurate with meaningful penetration of the Canadian market. The Licensee provided a deposit of $150,000 and will invest $250,000 into the next available financing offered by Hank at then current pricing. Expected definitive signing of the licensing agreement, no later than January 30, 2023.
  • The appointment of Mr. John Cerny as Head of Strategic Partnerships and Chief Compliance Officer. Mr. Cerny has more than 30 years experience in the US banking sector, including roles as President, Chief Operating Officer and Chief Compliance Officer. He will be instrumental in supporting additional product ideation, innovation and regulatory compliant advancement of Hank products. His experience and network of strategic contacts in banking and within Hank's developing markets are expected to accelerate Hank's access to those markets. The addition of Mr. Cerny to the executive team is consistent with the Company's focus on cost management and judiciously investing in revenue growth initiatives and preserves the previously announced lower operating cost base.
  • Previously the Company announced an agreement in the credit repair space and with an alternative savings account provider. The Company has ended discussions with both parties in favor of remaining laser focussed on meaningful deals underway which represent much more value relative to risk to both Hank and the users of Hank.

Michael Hilmer, Chairperson and CEO commented, "I am very pleased that despite making meaningful cost adjustments, we have not sacrificed growth, and our prospects are more exciting than ever with the previously announced licensing agreements and strategic hires driving Hank into very high growth and high value markets with our enterprise offerings."

A comprehensive discussion of Hank's financial position and results of operations is provided in the financial statements and MD&A for the three-month period ending September 30, 2022, 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) that provides a platform 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 Company historically operated 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 does not take balance sheet risk when managing loan and other household payments for Users as it does not lend funds or bridge cash shortfalls. All of Hank's current revenues are derived from usage and licensing fees.

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. Several 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 because of new information, future events or otherwise.


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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/146215