POSaBIT Systems (PBIT) investor relations material

Executive summary

• Achieved historic profitability in Q2 2025, with net income of $635,000, the highest adjusted EBITDA, and first-ever net income gain for the company, reversing a prior-year loss.

• Adjusted EBITDA for Q2 2025 was $785,822, a significant improvement from a loss of $43,967 in the previous quarter.

• Operational focus on efficiency, cost control, and product enhancements led to improved financial performance.

• Revenue for Q2 2025 was $2,653,328, down 35% year-over-year, but gross margin improved due to lower cost of goods sold.

• Settlement of Hypur litigation in May 2025 resulted in a $75,000 payment and issuance of 1.25M shares.

Financial highlights

• Adjusted EBITDA reached $785,822, a sevenfold increase over any previous quarter.

• Net income was $635,000, compared to a net loss of $454,000 in Q2 2024.

• Total revenue was $2.7M, down from $4.1M year-over-year, due to a transition in payment processing.

• Gross margin improved to 70% of revenue ($1.9M), up from 54% ($2.2M) last year.

• Operating income was $207,000, compared to an operating loss of $639,000 in Q2 2024.

Outlook and guidance

• Anticipates significant upside if cannabis rescheduling occurs, enabling credit card processing and eliminating Section 280E tax restrictions.

• Confident in filling any future revenue gaps from licensing deals with new products and growing e-commerce revenue.

• Management notes material uncertainty about the company's ability to continue as a going concern due to recurring losses and negative cash flow from operations.

• No formal forward-looking financial guidance provided; management highlights ongoing risks and uncertainties.

• Plans to expand into new states using a proven, disciplined approach rather than rapid, broad expansion.