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
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1579577&tp_key=9f3837e951

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. www.greenboxpos.com.

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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