PowerBand Announces Second Quarter 2023 Financial Results

TORONTO, ON / ACCESSWIRE / August 30, 2023 / PowerBand Solutions (TSXV:PBX) (OTCQB:PWWBF) (Frankfurt:1ZVA) ("PowerBand" "PBX"or the "Company"), a comprehensive e-commerce solution transforming the online experience to 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, 2023. These documents may be viewed under the Company's profile at www.sedarplus.ca.

Revenue for the second quarter of 2023 decreased to $497,549 in comparison to Q1/2023 revenue of $838,693. There were no new lease originations in the second quarter. Revenues were generated primarily from the servicing of the existing lease portfolio. During the second quarter management completed a review of certain additional lease contracts and has identified some lease contracts that may fall within the repurchase clause of the Forward Flow Purchase and Security Agreement with the Company's primary funding partner. As a result, the Company has recognized a provision for expected loss on lease contracts for $8,785,772, thereby increasing the net loss for the quarter to $11,034,604.

Adjusted EBITDA loss for the second quarter of 2023 has decreased by $533,750, in comparison to Q1/2023, due to further cost reduction measures initiated by the Company.

Cash on hand as at June 30, 2023 was $5,243,895 compared to $10,299,414 as at December 31, 2022.

Foto: Accesswire

The Company continues to work with its primary funding partner to re-commence the origination of leases. As a part of those discussions, in May 2023, the Company's subsidiary, Drivrz Financial, and the financial institution executed an agreement for the repurchase of an additional 32 vehicle leases, with a value of CAD $1,222,547 (US$923,374.07). The total amount will be paid in equal installments over a period of 24 months.

Following the comprehensive business reorganization of the Company over the past year, management believes that it now has the right personnel in place and the Company is in a sustainable operational position going forward. The Company is currently completing the establishment of an in-house, customer-facing, servicing department and should be able to migrate from a third-party lease servicing provider by the 4^th quarter of 2023.