OLB Group Reports 58% Revenue Decline and $11.2 Million Net Loss for Fiscal Year 2024

The OLB Group, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue of $12.8 million, a decrease of 58% from $30.6 million in 2023. The company attributed this decline primarily to a substantial drop in transaction and processing fees, which fell from $27.1 million to $9.7 million, largely due to the loss of a key CBD portfolio. Other revenue streams, including Bitcoin mining and digital products, also saw decreases, contributing to an overall net loss of $11.2 million, compared to a net loss of $23.3 million in the previous year.

In terms of operational changes, OLB Group has been actively restructuring its business model. The company has focused on integrating its subsidiaries, which include eVance, OmniSoft, and CrowdPay, to create a more cohesive suite of services for merchants. Notably, OLB completed the acquisition of 100% of Moola Cloud, LLC, which will enhance its offerings to underbanked communities through a debit and calling card platform. This acquisition is expected to expand the company's market reach, as Moola Cloud operates approximately 31,600 locations across the U.S.

The company has also made strategic decisions regarding its workforce and operational costs. As of December 31, 2024, OLB had reduced its employee headcount to 15, down from previous years, which contributed to a decrease in salary and wage expenses by 23.2%. General and administrative expenses also saw a significant reduction of 59.6%, reflecting the company's efforts to streamline operations in response to declining revenues.

OLB's liquidity position remains precarious, with a working capital deficit of $8.7 million as of the end of 2024. The company has entered into an Equity Distribution Agreement to raise up to $15 million through the sale of common stock, which it hopes will provide necessary capital to sustain operations. Additionally, the company is in the process of spinning off its Bitcoin mining subsidiary, DMINT, into a standalone entity, which is anticipated to alleviate some financial burdens and allow for focused growth in that segment.

Looking ahead, OLB Group's management has expressed cautious optimism about its ability to navigate the current challenges. The company believes it has sufficient liquidity to continue operations for at least the next twelve months, contingent on successful capital raising efforts. However, there remains substantial doubt about its ability to continue as a going concern without additional financing, highlighting the need for strategic execution and market adaptation in the coming fiscal year.