Financial News

RYVYL Reports Third Quarter 2022 Financial Results

Third Quarter 2022 Highlighted by Strong Processing Volume Growth,
Company Rebranding and Launch of coyni Platform

SAN DIEGO, CA, Nov. 21, 2022 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL” or the "Company"), a company that leverages the security of the blockchain and USD-pegged stablecoin technology with near-real-time attestation to conduct payment transaction, has provided its financial results for the third quarter ending September 30, 2022.

Management Commentary by CEO Fredi Nisan:

Third Quarter 2022 highlights:

  • Achieved record quarterly processing volume of approximately $1.3 billion, about 35% ahead of internal projections, a 20% increase when compared to Q2 processing volume of approximately $1 billion and nearly double Q3 2021.
  • Grew third quarter revenue of $10.6 million versus $8.0 million in the same quarter year-ago, a 32% increase.
  • Launched the coyni v2 platform, featuring our U.S. dollar pegged stablecoin on a one-to-one ratio with near real-time attestation and now available in Google Play and the Apple App store.
  • Following shareholder approval, renamed the Company as RYVYL Inc, to showcase the evolving technological advancements and development of our offerings and services.
  • Expanded our services in American Samoa to over 240 merchants, which represents about a 50% share of the merchant target market and processed nearly $17 million for the businesses and residents on the island after starting at $0 in Q2. Territorial Bank of American Samoa (TBAS) is an ideal model market for the coyni platform to implement the same offering to other similar closed-loop geographies.
  • Our FX and international payments business line, including Transact Europe, reported over $500 million in business volume, of which $480 million is attributable to FX conversion and international payment transactions.
  • Strengthened our executive management team with the appointment of Drew Byelick as Chief Financial Officer. Drew brings tremendous depth and breadth of functional and industry experiences in startup, middle market, and multisite global manufacturing, service, software, technology, and distribution companies.
  • Successfully renegotiated the terms of our $100 million convertible note financing, extending maturity by one year while reducing the cash interest expense burden.


Our Company made several crucial strides forward towards our objective of becoming a leading fintech company, during the third quarter of 2022. This was highlighted by another quarterly record for our processing volume of approximately $1.3 billion during the quarter.

Given the remarkable growth we’ve seen in the past two years with the continued advancement of our technology and payment solutions, the forming of new partnerships, expanding geographically, and the hiring of key personnel, the time was right for the evolution of our brand and identity. To that end, at our recent annual general meeting, we received resounding shareholder approval to rename the company RYVYL, Inc. The new brand more effectively communicates our leading-edge and expanded product and service offering towards the goal of becoming a leader in the global fintech space.

We continued to see evidence of the power of our technology’s capabilities with the rapid adoption of our payment solutions in American Samoa, where approximately 50% of the market is now using our service after only one quarter. Our international business saw tremendous growth in processing during the quarter as the successful integration of Transact Europe began to yield results from the ample opportunity we sought to capitalize on in Europe.

Finally, we completed the launch of the coyni platform, including our US dollar pegged stablecoin, which we believe will play a vital role in the next stage of growth for RYVYL. We believe our truly differentiated stablecoin, new brand identity, and increased international capabilities, positions us to continue to scale as we look to build relationships with well-established payment companies that benefit from our advanced infrastructure and technology.

Looking ahead, with about $3.1 billion in processing volume through the first nine months of 2022, we are confident in our outlook to finish the year with processing volume of over $4 billion and expect continued growth into 2023.

Third Quarter 2022 Financial Summary

  • Net revenue increased by $3.3M, or 17%, to $22.5 million for the nine months ended September 30, 2022 from $19.2 million in the prior year’s same period. Net revenue increased by $2.6M, or 32%, to $10.6 million in the third quarter of 2022 from $8.0 million in the same quarter the prior year. The change in net revenue includes $2.9 million of penalties and fees charged to merchants in accordance with our standard service agreement for transaction fraud and minimum activity fees. Also contributing to the year over year growth were increased processing volume compared to the same three-month period in 2021 offset by lower commissions from a processing partner. 
  • Gross profit for the nine months ended September 30, 2022, was $11.5 million, or 51.2% of total net revenue, compared to gross profit of $13.8 million, or 72.2% of total net revenue, in the prior year’s same period. Gross profit for the three months ended September 30, 2022 was $6.4 million, or 59.8% of total net revenue, compared to gross profit of $5.6 million, or 69.9% of total net revenue, in the same quarter a year ago. The decrease in gross profit was primarily due to higher processing fees paid to gateways and commission payments to ISOs. 
  • Ordinary operating expenses were $21.9 million and $9.2 million for the nine months ended September 30, 2022, and 2021, respectively, an increase of $12.7 million. Ordinary operating expenses were $6.5 million and $3.9 million for Q3 2022 and 2021, respectively, an increase of $2.6 million. The increase of $12.7 million was due primarily to marketing expenses related to re-branding, software development, and payroll and payroll taxes offset by decreases in non-cash operating expenses.

  • Other expenses of $8.0 million for the nine months ended September 30, 2022 increased $4.0 million over the same period prior year. Interest expense related to the $100 million convertible note issued in November of 2021, amortization of the discount fees associated with the note, and derecognition expense on conversion of convertible debt were offset by the favorable changes in the fair value of derivative liability of $14.6 million in the nine months ended September 30, 2022 and none in the previous year same quarter.

  • The Company sustained a net loss for the nine months ended September 30, 2022, of $26.1 million, or $0.59 cents per basic and diluted share, compared to a net loss of $19.4 million or $0.49 cents per basic and diluted share, in the same period the prior year. The Company recorded a net loss in the third quarter of 2022 of $15.2 million, or $0.32 per basic and diluted share, compared to a net loss of $6.0 million, or $0.14 per basic and diluted share, in the same quarter a year ago. The increase in net loss for the nine months and Q3 ended September 30, 2022 was primarily due to increases in research and development, interest and other expenses related to the $100 million note, general and administrative, payroll and payroll taxes and professional fees as we continue to add staff and infrastructure related to our growth offset by the favorable change in fair value of the derivative liability.

  • Cash position as of September 30, 2022 was cash and cash equivalents balance of $37.6 million.

  • Adjusted EBITDA was just short of break-even for the quarter at a loss of $0.1 million, a $4.8 million improvement from the last quarter.

Management will host a conference call on Monday, November 21, 2022 at 4:30 p.m. Eastern time to discuss RYVYL’s third quarter 2022 financial results and will conclude with a Q&A. To participate, please use the following information:

Q3 2022 Conference Call and Webcast
Date: November 21, 2022
Time: 4:30 p.m. Eastern time
US Dial In: 1-877-407-4018
International Dial In: 1-201-689-8471
Conference ID: 13734502

Please dial-in at least 10 minutes before the start of the call to ensure timely participation.

A recording of the call will be available through February 21, 2023. To listen, call 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and enter replay pin number 13734502. A webcast will also be available for 90 days on the IR section of the GreenBox POS website or by clicking the webcast link above.


RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business and peer-to-peer payment transactions around the globe. By leveraging unique blockchain security and USD-pegged stablecoin technology with near real-time attestation, RYVYL is reinventing the future of financial transactions using its coyni® stablecoin platform as a transactional foundation. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants and consumers around the globe.

Use of Non-GAAP Financial Information

This earnings release discusses Adjusted Net Income which is not a financial measure as defined by GAAP. This financial measure is presented as a supplemental measure of operating performance because we believe it can aid in, and enhance, the understanding of our financial results. In addition, we use Adjusted Net Income as a measure internally for budgeting purposes.
We define Adjusted Net Income as net income (loss) before (1) interest expense (income), net, (2) income tax expense (benefit), (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, plus (6) from time to time, certain other items which are specific transaction-related items. Other companies may define or calculate this measure differently, limiting the usefulness as a comparative measure. Because of this limitation, this non-GAAP financial measure should not be considered in isolation or as substitute for or superior to performance measures calculated in accordance with GAAP and should be read in conjunction with the financial statement tables. See also Reconciliation of Net Income (Loss) attributable to RYVYL, Inc., to Adjusted Net Income in the table below.*

Forward-Looking Statements Disclaimer

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set out in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.

Investor Relations Contact
Mark Schwalenberg
MZ Group - MZ North America

Consolidated Balance Sheets
September 30, 2022 and December 31, 2021

  September 30,  December 31, 
  2022  2021 
Current Assets:        
Cash and cash equivalents $11,020,840  $89,559,695 
Restricted cash  26,606,827   - 
Accounts receivable, net of allowance for bad debt of $54,795 and $54,795, respectively  790,069   481,668 
Inventory, net of inventory reserve of $3,127 and $3,127, respectively  273,684   286,360 
Cash due from gateways, net of allowance of $3,904,952 and $3,904,952, respectively  15,125,184   18,941,761 
Prepaid and other current assets  14,567,792   6,420,696 
Total current assets  68,384,396   115,690,180 
Non-current Assets:        
Property and equipment, net  1,702,172   1,674,884 
Other assets  186,038   190,636 
Goodwill  26,625,946   6,048,034 
Intangible Assets, net  22,394,833   7,578,935 
Operating lease right-of-use assets, net  1,656,448   1,490,159 
Investments -assets  1,451,247   - 
Total non-current assets  54,016,684   16,982,648 
Total assets $122,401,080  $132,672,828 
Current Liabilities:        
Accounts payable $97,183  $871,037 
Other current liabilities  1,408,410   501,167 
Accrued interest  8,022   1,226,287 
Payment processing liabilities, net  22,593,376   4,997,807 
Short-term notes payable, net of debt discount  12,870   - 
Derivative liability  2,520,127   18,735,000 
Current portion of operating lease liabilities  632,038   495,134 
Total current liabilities  27,272,026   26,826,432 
Long-term debt  637,030   649,900 
Convertible debt, net of debt discount of $30,241,836 and $41,344,822, respectively  58,661,454   58,655,178 
Operating lease liabilities, less current portion  1,124,624   1,035,895 
Total liabilities  87,695,134   87,167,405 
Commitments and contingencies        
Stockholders' Equity:        
Common stock, par value $0.001, 82,500,000 shares authorized, shares issued and
outstanding of 48,499,026 and 42,831,816, respectively
  48,155   42,831 
Common stock issuable, par value $0.001, 2,516,189 and 0 shares issuable, respectively  2,412   - 
Additional paid-in capital  99,618,045   88,574,469 
Accumulated other comprehensive income (loss)  (708,424)  - 
Accumulated deficit  (64,254,242)  (38,178,061)
Less: Treasury stock, at cost; 0 and 714,831, respectively  -   (4,933,816)
Total stockholders' equity  34,705,946   45,505,423 
Total liabilities and stockholder's equity $122,401,080  $132,672,828 


Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2022 and 2021


  Three Months Ended September 30,  Nine Months Ended September 30, 
  2022  2021  2022  2021 
Net revenue $10,629,691  $8,045,469  $22,490,824  $19,174,089 
Cost of revenue  4,269,529   2,420,748   10,976,255   5,337,999 
Gross profit  6,360,162   5,624,721   11,514,569   13,836,090 
Operating expenses:                
Advertising and marketing  438,523   37,179   1,106,341   84,509 
Research and development  1,442,038   1,043,385   5,300,115   2,504,976 
General and administrative  1,186,123   784,158   4,331,918   1,648,383 
Payroll and payroll taxes  2,384,544   1,250,451   7,480,377   2,871,581 
Professional fees  1,031,867   789,772   3,704,226   2,114,996 
Stock compensation for employees  -   3,777,572   166,800   5,867,072 
Stock grant expense  508,313   -   2,223,611   - 
Stock compensation for services  132,696   238,238   338,348   10,418,996 
Depreciation and amortization  2,298,849   457,633   4,879,798   477,886 
Total operating expenses  9,422,953   8,378,388   29,531,534   25,988,399 
Income (Loss) from operations  (3,062,791)  (2,753,667)  (18,016,965)  (12,152,309)
Other income (expense):                
Interest expense  (1,906,962)  (4,736)  (5,662,463)  (598,994)
Interest expense - debt discount  (436,817)  -   (11,539,803)  (2,993,408)
Changes in fair value of derivative liability  (4,082,056)  -   14,591,938   - 
Derecognition expense on conversion of
convertible debt
  (5,709,672)  -   (5,709,672)  - 
Merchant liability settlement  -   -   -   (364,124)
Other income or expense  62,806   (37,497)  298,021   (56,057)
Total other income (expense), net  (12,072,701)  (42,233)  (8,021,979)  (4,012,583)
Income (loss) before provision for income taxes  (15,135,492)  (2,795,900)  (26,038,944)  (16,164,892)
Income tax provision  34,785   3,253,855   37,237   3,253,855 
Net income (loss) $(15,170,277) $(6,049,755) $(26,076,181) $(19,418,747)
Comprehensive income statement:                
Net income (loss) $(15,170,277) $(6,049,755) $(26,076,181) $(19,418,747)
Foreign currency translation loss  (310,585)  -   (708,424)  - 
Total comprehensive income (loss) $(15,480,862) $(6,049,755) $(26,784,605) $(19,418,747)
Net loss per share:                
Basic and diluted $(0.32) $(0.14) $(0.59) $(0.49)
Weighted average number of common shares outstanding:                
Basic and diluted  47,104,952   42,065,842   44,072,798   39,949,732 

Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2022 and 2021


  Nine Months Ended September 30, 
  2022  2021 
Cash flows from operating activities:        
Net loss $(26,076,181) $(19,418,747)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Depreciation and amortization  4,718,262   477,886 
Noncash lease expense  54,117   (1,202)
Stock compensation expense  166,800   5,867,072 
Common stocks issued for professional fees  338,348   10,418,996 
Stock compensation issued for interest  1,819,341   598,994 
Common stock issued to employees as stock compensation  2,223,611   - 
Interest expense - debt discount  11,539,803   2,993,408 
Changes in fair value of derivative liability  (14,591,938)  - 
Derecognition expense on conversion of convertible debt  5,709,672     
Changes in assets and liabilities:        
Guarantee deposits  25,906   - 
Other receivable, net  (308,401)  (154,556)
Inventory  12,676   (53,278)
Prepaid and other current assets  (1,903,359)  (184,172)
Cash due from gateways, net  3,816,577   (12,114,404)
Other assets  47,644   679,558 
Accounts payable  (728,041)  370,487 
Other current liabilities  347,718   3,384,258 
Accrued interest  (1,218,265)  - 
Payment processing liabilities, net  2,561,645   (6,898,339)
Net cash provided by (used in) operating activities  (11,444,065)  (14,034,039)
Cash flows from investing activities:        
Purchases of property and equipment  (101,798)  (97,818)
Deposit on acquisitions  (1,451,247)  - 
Purchase of intangibles  (500,000)  (2,500,000)
Cash provided for Transact Europe Acquisition  (28,810,600)  - 
Cash provided for Sky asset acquisition  (16,000,000)  - 
Net cash used in investing activities  (46,863,645)  (2,597,818)
Cash flows from financing activities:        
Treasury stock repurchase  (3,236,723)  (2,679,633)
Proceeds from stock option exercises  5,215   2,250 
Repayments on convertible debt  (6,000,000)  - 
Borrowing form notes payable      350,000 
Proceeds from exercise of warrant  -   3,731,200 
Repurchase of common stock from stockholder  -   (4,194,000)
Proceeds from issuance of common stock  -   45,805,491 
Net cash provided by (used in) financing activities  (9,231,508)  43,015,308 
Cash acquired from acquisition of Northeast and Charge Savvy      1,491,068 
Restricted cash acquired from Transact Europe  18,676,860   - 
Net increase (decrease) in cash, cash equivalents, and restricted cash  (48,862,358)  27,874,519 
Foreign currency translation adjustment  (3,069,670)  - 
Cash, cash equivalents, and restricted cash – beginning of period  89,559,695   1,832,735 
Cash, cash equivalents, and restricted cash – end of period $37,627,667  $29,707,254 
Supplemental disclosures of cash flow information        
Cash paid during the period for:        
Interest $4,907,111  $4,639 
Income taxes $-  $800 
Non-cash financing and investing activities:        
Convertible debt conversion to common stock $12,826,135  $3,850,000 
Common stock issued for acquisition of Charge Savvy  -  $12,140,000 
Interest accrual from convertible debt converted to common stock $-  $594,355 

Reconciliation of Net Income (Loss) attributable to RYVYL, Inc., to Adjusted Net Income* for the Three Months Ended September 30, 2022
and 2021, and 9 Months Ended September 30, 2022 and 2021

     9 Months Ended September 30, 
   Q3 2022   2022   2021 
Net revenue $10,629,691  $22,490,795  $19,174,089 
Net (loss) income $(15,170,277) $(26,076,181) $(19,418,747)
Adjustments to net loss:            
Non-cash adjustments - income (loss):            
Stock compensation expense for employees  508,313   2,390,411   5,867,072 
Stock compensation expense for services  132,696   338,348   10,418,996 
Bad debt expense  -   -   - 
Total non-cash adjustments  641,009   2,728,759   16,286,068 
EBIDTA Adjustment:            
Depreciation  2,298,849   4,879,798   477,886 
Income taxes  34,785   37,237   3,253,855 
Interest expense - debt discount and other interest  2,343,779   17,202,266   3,592,402 
Derivative expense  -   -   - 
Changes in derivative  4,082,056   (14,591,938)  - 
Derecognitition expense  5,709,672   5,709,672   - 
Merchant liability settlement  -   -   364,124 
Total EBITDA adjustments  14,469,141   13,237,035   7,688,267 
Total adjustments to net loss:  15,110,150   15,965,794   23,974,335 
Adjusted net income $(60,127) $(10,110,387) $4,555,588 
Research and development expense $1,442,038  $5,300,115  $2,504,976 

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