The company reported revenues of C$342,000 over the third quarter, coinciding with a 42 percent decline in its net burn rate.
Mobi724 Global Solutions (TSXV:MOS), a fintech firm announced revenues soar over 144 percent over the quarter to C$342,000. The company reported its net burn rate decrease 42 percent from C$384,000 to C$223,000.
As quoted in the press release:
Marcel Vienneau, CEO of MOBI724 said: “In 2019 we focused on attaining the following strategic objectives: Realigning the company to focus on its core business, which is processing card-linked AI-powered offers & rewards – Smart Transactions; Reducing the burn rate & steering the company towards cash-flow positive status; Executing new contracts and scaling up commercial operations. In Q3 the integration of platforms was completed under a single architecture. We developed new strategic business relationships with global companies. Our AI development progressed and is nearing commercial production. We successfully divested some of the I.Q.7/24 customer base, while retaining the IPs, and the unique expertise of key I.Q.7/24 team members. Since its acquisition, we streamlined the operations of I.Q.7/24 and successfully brought the company to a cash-flow positive status while keeping all the IP portfolio and netting a gain on the sale of over $456k. The sale of the Company’s stake in Mobi724 Asia completed the initiative of streamlining operations and focusing on our most value creating core business. By exiting the payment division in Asia Pacific, and realigning the focus on larger accounts, we are targeting an improvement in margins and sustained growth over the coming quarters.”
Allan Rosenhek, CFO of Mobi724 commented: “We succeeded in accelerating revenues, while completing the Company’s restructuring in order to decrease the net burn rate by nearly half. We have previously stated that we anticipated a considerable increase in our core business of Smart Transactions Processing. This quarter we start seeing this increase. As a co-founder of MOBI724 and a significant shareholder, I remain confident in the future of the company.”