- Revenues of $4.7M in Q2 2021, an increase of 63% from Q1 2021 revenues of $2.9M
- Adjusted EBITDA loss reduced by 48% in Q2 2021 relative to Q1 2021
TORONTO, ON / August 17, 2021 / PowerBand Solutions Inc. (TSXV:PBX)(OTCQB:PWWBF) (“PowerBand” “PBX“or the “Company“), a comprehensive e-commerce solution transforming the online experience to sell, trade, lease, and finance vehicles, is announcing that it has filed its Interim Consolidated Financial Statements and Management’s Discussion and Analysis report for the three and six-month period ended June 30, 2021. These documents may be viewed under the Company’s profile at www.sedar.com. All numbers are in Canadian dollars, except otherwise noted.
The financial results for the three-month period ended June 30, 2021 when compared to the same period in 2020 and the previous quarter ended March 31, 2021 have demonstrated a significant increase in revenues as depicted in the table below. This is primarily due to industry acceptance of the DRIVRZ lease origination software that is consistently generating robust sequential growth in origination counts. As the business commenced its scaling phase, the adjusted EBITDA loss in the second quarter of 2021 was reduced by 48% relative to the first quarter of 2021. The trend of improving EBITDA is expected to continue in subsequent quarters.
The Company has reported year-to-date 2021 revenues of $7.6M an increase of 151% when compared to full twelve months 2020 revenues of $3.0M. The adjusted EBITDA loss for the six-months ended June 30, 2021 continues to narrow as revenue accelerated faster than expenses in absolute values.
Cash on hand at June 30, 2021 was $2,336,032 compared to $1,403,213 as at December 31, 2020. The net current assets position remained relatively consistent from ($5,925,718) at December 31, 2020 to ($6,356,258) at June 30, 2021.
After the period ended June 30, 2021, the Company raised capital from a brokered private placement for aggregate gross proceeds of $12,775,901. The Company will use the proceeds to improve the working capital and to accelerate the development of Drivrz Financial loan-lease platform, a multi-lender platform built with the latest, cloud-scalable technologies and the other two business segments, DrivrzXchange and DrivrzLane.
2021 Segment Highlights
Drivrz Financials’ lease origination software continues to report month-over-month increase in revenue as noted in the chart below:
The increase in revenues has decreased the monthly operating losses with Drivrz Financial reporting earnings (EBITDA) in the month of June 2021.
Kelly Jennings, CEO and Founder of PowerBand Solutions states “With the completion of the capital raise in July, we have accelerated the development of three key projects that will compliment and further the growth of the revenue to the Company. We expect a robust third quarter 2021 with improved operational efficiencies and effective deployment of capital.”
About PowerBand Solutions, Inc.
PowerBand Solutions Inc., listed on the TSX Venture Exchange and the OTCQB markets, is a fintech provider disrupting the automotive industry. PowerBand’s integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, funders, and manufacturers (OEMs). It enables them to buy, sell, trade, finance, and lease new and used, electric and non-electric vehicles, on any phone, tablet or PC connected to the internet. PowerBand’s transaction platform – being trademarked under DRIVRZ™ – is being made available across North American and global markets.
For further information, please contact:
Kelly JenningsChief Executive Officer
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
This news release contains non-IFRS financial measures; the Company believes that these measures provide investors with useful supplemental information about the financial performance of its business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating its business. Although management believes these financial measures are important in evaluating the Company’s performance, they are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance withIFRS. Moreover, presentation of certain of these measures is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of the adjustments thereto provided herein have an actual effect on the Company’s operating results.