Hank Payments Announces Year End June 30, 2023, Financial Results

Toronto, Ontario--(Newsfile Corp. - October 30, 2023) - 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 provide its fourth quarter and year end financial results for the period ending June 30, 2023.

FINANCIAL HIGHLIGHTS

• Adjusted loss declines materially to $1,814,056 ($3,072,185 for 2022) and loss from operations declines to $2,567,169 ($11,553,567 for 2022) for the year;
• SMB Revenue grew 11% to $5,909,372 for the year ending June 30, 2023, versus $5,342,765 in 2022;
• Annual Average Gross margins remain strong at 89%; and
• MRR increases by 11% for SMB sector.

OPERATING AND STRATEGIC MATTERS

Year end adjusted loss from operations improved to $1,814,056 from $3,072,185 for prior year. As previously announced, this was primarily due to operating cost efficiencies undertaken by the Company over the year. The Q4-2023 adjusted loss from operations was $680,878 in comparison to $677,672 for Q4-2022 and $318,779 for Q3-2023.

The Average Annual Revenue Per User ("ARPU"), described as total fee revenue earned divided by the total users as at year end, is $127.04 per user as at June 30, 2023 ($118.42 for 2022).

ARPU is expected to grow for users acquired through Enterprise Channels, with virtually no upfront cost of acquisition ("CAC"). Enterprise channels are expected to enroll a much larger user base over a short period of time following engagement. Platforms such Hank EDU were launched in Q4 of 2023 and expected to generate material revenue in the upcoming quarters.

Monthly Recurring Revenue per user ("MRR") has grown 11% over the past year and will continue to rise as new users continue to be enrolled at a higher price for recurring monthly fees, including additional products and features subscribed for.

Michael Hilmer, Chairperson and CEO, commented, "We are very pleased with the significant narrowing of losses and the continued performance of our SMB channels, and we are excited to announce new revenue streams from previously announced deals that will be recognized imminently. As expected, our investment in the Hank EDU platform has started to show results through contracts, endorsements and a very a strong pipeline." He added, "Execution of Hank EDU strategy, along with revenue from the National Canadian License agreement, will provide significant and predictable revenue expansion in the coming year, and the Company has been working diligently towards diversification and growth in revenue and margin."

The Company granted 300,000 options at an exercise price of $0.10 and 250,000 restricted share units to consultants assisting with launch of new Enterprise Channels. The options and RSUs are subject to the standard provisions of the Company's Omnibus Equity Incentive Plan.

As part of the Company's investor awareness campaigns, the Company entered into a six-month marketing and consulting contract with Toronto-based marketing firm, Grit Capital Corp ("GRIT"), on April 5, 2023, to facilitate greater awareness and widespread dissemination of the Company's news. The Company paid Grit Capital a fee of USD $200,000. GRIT also owns securities of the Company.

A comprehensive discussion of Hank's financial position and results of operations is provided in the financial statements and MD&A for the three and twelve month periods ending June 30, 2023, filed on SEDAR.

About Hank Payments Corp.

Hank Payments Corp. (the Company or "Hank") is an emerging North American leader in the Banking-as-a-Service (BaaS) market. The Hank platform modernizes budgets and payments for enterprises and consumers and automates tedious functions that result in time and economic savings for platform users. The Hank technology 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 revenue streams, while modernizing legacy payments. The Company earns recurring transaction and licensing fees from consumers and enterprises and is active in several markets and geographies, including Canada and the United States. For more information, visit the Hank Payments 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. 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 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 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/185741