Company increases year-over-year annual revenue from $9.77M to $16.71M

Merchant Processing Transaction volume ends year on $1.3B annualized run rate

The OLB Group, Inc. ("OLB," “we,” “us,” “our,” or the "Company"), a diversified Fintech eCommerce merchant services provider and Bitcoin cryptocurrency mining enterprise, announced its year end 2021 financial results.

We are a diversified FinTech company and a payment facilitator that, through our subsidiaries, focuses on a suite of products in the merchant services and payment facilitator verticals. These services include electronic payment processing, cloud-based multi-channel commerce platform solutions for small to medium sized businesses and crowd funding services. The Company is focused on providing these integrated business solutions to merchants throughout the United States through three wholly-owned subsidiaries, eVance, Inc., Omnisoft.io, Inc., and CrowdPay.us, Inc.

In July 2021, we formed DMINT, Inc., a wholly owned subsidiary (“DMint”) to operate in the cryptocurrency mining industry. DMint has initiated the first phase of the cryptocurrency mining operation by placing purchase orders for data centers and ASIC-based Antminer S19J Pro mining computers specifically configured to mine Bitcoin. As a result of this newly formed business, the Company began to report its operational results in two segments – “Fintech Services” and “Cryptocurrency Business” in the fourth quarter of 2021.

Financial Highlights

Following its acquisition of a portfolio of merchants in the Cannabidiol (or “CBD”) industry, along with other merchants utilizing financial transaction processing services during the fourth quarter of 2022, the Company's merchant services annualized transaction volume run rate has reached $1.35 Billion in transaction volume as a result of approximately 28.5 million transactions. This increased number of transactions resulted in an increase in revenue of 27.3% in the fourth quarter of 2022 compared with the same period in 2021.

For the year ended December 31, 2021, we had total revenue of $16,710,759 compared to $9,766,621 of revenue for the year ended December 31, 2020, an increase of $6,944,138 or 71.1%. The Fintech Services segment reported $16,406,755 of revenue and the Cryptocurrency Business segment reported $304,004 of revenue. We earned $15,810,626 in transaction and processing fees, $131,802 in merchant equipment rental and sales and $464,327 in other revenue during the year ended December 31, 2021, compared to $8,358,459 in transaction and processing fees, $88,538 in merchant equipment sales and $1,319,624 in other revenue during the year ended December 31, 2020.

For the year ended December 31, 2021, we had processing and servicing costs of $13,480,212 compared to $6,003,931 of processing and servicing costs for the year ended December 31, 2020. Processing and servicing costs increased by $7,4767,281 or 124.5%.

General and administrative expenses (“G&A”) for the year ended December 31, 2021 was $2,387,416 compared to $1,520,362 for the year ended December 31, 2020, an increase of $867,054 or 57%. In the current period we had increases of our contracted services of approximately $415,000 and computer and internet expense of approximately $197,000. The Fin tech Services segment attributed to $1,818,347 of GSA and the Crypto currency Business segment attributed to $569,069 of GSA during the year ended December 31, 2021.

Our net loss for the year ended December 31, 2021 was ($4,978,358) compared to ($1,776,727) for the year ended December 31, 2020. We had an increase in our net loss of $3,201,631 because of the expenses relating to the commencement of our Crypto currency Business segment and for the reasons discussed above.

Adjusted EDICTAL for the year ended December 31, 2021 was ($2,509,671). The adjustments include $461,051 for stock-based compensation, $116,737 of interest expense and $1,890,899 of depreciation and amortization.

For the three months ended December 31, 2021, we had total revenue of $8,826,862 compared to $2,226,404 of revenue for three months ended December 31, 2020, an increase of $607,169 or 27.3%. The Fin tech Services segment reported $8,522,858 of revenue and the Crypto currency Business segment reported $304,001 of revenue. We earned $8,374,309 in transaction and processing fees, $33,612 in merchant equipment rental and sales and $114,937 in other revenue during the three months ended December 31, 2021, compared to $2,090,264 in transaction and processing fees, $18,507 in merchant equipment sales and $117,633 in other revenue during the three months ended December 31, 2020.

For the three months ended December 31, 2021, we had processing and servicing costs of $7,610,473 compared to $1,547,274 of processing and servicing costs for the three months ended December 31, 2020. Processing and servicing costs increased by $551,471 or 35.6%.

GSA expense for the three months ended December 31, 2021 was $977,460 compared to $392,335 for the three months ended December 31, 2020, an increase of $585,125 or 149.1%. The Fin tech Services segment attributed to $117,988 of GSA and the Crypto currency Business segment attributed to $480,967 of GSA during the year ended December 31, 2021.

Key Highlights for 2021

• Annual revenue increased to $16.71 million in 2021 from $9.77 million in 2020 (71% increase)
• $1.3B Million in transaction volume annualized run rate ending 2021
• 4.9 million transactions were processed in 2021
• Merchant services business increased $16.4 million in 2021 compared with 2020 (67.8% increase)
• Acquired exclusive natural gas purchasing rights for use in Crypto currency Business Segment’s Bicorn mining operations
• Acquired 1000 ASCII Biotin mining computers
• Acquired merchant portfolio and processing agreements adding 1,500 new merchants and customers
• Company continues to be debt free
• Raised approximately $31M in capital
• Established Crypto currency Business segment as a stand-alone business relating to the Company’s Biotin mining operation.
• Completed build out of two Biotin mining locations in Bradford, PA
• Enabled existing eCommerce applications to include crypto currency payment capabilities

To see a complete version of the Company’s Annual Report on Form 10-K, please click on the following link:

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001314196/000121390022015583/f10k2021_theolbgroup.htm

To see the Company’s response to frequently asked questions, please click on the following link:

https://olb.com/investors-faq/

For more information about The LOB Group, please visit www.olb.com or www.olb.com/investors-data.

Future OLB Press Releases and Updates

Interested investors or shareholders can be notified of future Press Releases and Industry Updates by e-mailing investorrelations@OLB.com.

About The OLB Group, Inc.

The OLB Group, Inc. is a diversified Fintech eCommerce merchant services provider and Bitcoin crypto mining enterprise. The Company's eCommerce platform delivers cloud-based merchant services for a comprehensive digital commerce solution to over 10,500 merchants in all 50 states. DMint, a wholly owned subsidiary of OLB Group, is engaged in the mining of Bitcoin utilizing sustainable natural gas with an initial deployment of efficient 1,000 ASIC-based S19j Pro 96T mining computers projected by end of 2021. For more information about solutions, services, or to find a reseller, please visit www.olb.com. Investor information is available at www.olb.com/investors-data and www.dmint.com.

About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, Net Loss before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and adjusted EBITDA, as defined in Regulation G. The Company reports its financial results in compliance with GAAP, but also provides additional non-GAAP measures of its operating results. The Company defines EBITDA as net loss, before interest, taxes, depreciation and amortization. The Company defines adjusted EBITDA as EBITDA, as defined above, adding back non-cash stock option costs and certain non-recurring items, such as costs incurred with completing acquisitions. These measures may not be comparable to similarly titled measures reported by other companies. Management believes the use of EBITDA and adjusted EBITDA is appropriate to enhance the understanding by the Company’s investors of its historical performance through use of a metric that seeks to normalize earnings.

Safe Harbor Statement

All statements from The OLB Group, Inc. in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements concerning the impact of COVID-19 on our operations and financial condition, the CBD and related products marketplace, our ability to implement our proprietary merchant boarding and CRM system and to roll out our Omni Commerce and SecurePay applications, including payment methods, to our current merchants and the integration of our secure payment gateway with our crowdfunding platform. While the Company’s management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include statements regarding the expected revenue and income for operations to be generated by The OLB Group, Inc. For other factors that may cause our actual results to differ from those that are expected, see the information under the caption “Risk Factors” in the Company’s most recent Form 10-K and 10-Q filings, and amendments thereto, as well as other public filings with the SEC since such date. The Company operates in a rapidly changing and competitive environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statement.

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