The OLB Group, Inc.

Thank you for attending today's OLB Group 2021 Year End Morning Call. My name is Jason Song and I'll be your operator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star 1 on your telephone. Apologies, there will be no question and answer section of this call. If you'd like to ask a question, please email them directly to our management team. I would now like to pass the conference over to our host, Matthew Koepke, the Corporate Counselor.

Thank you. I'm going to start with our Safe Harbor Statement. All statements from the OLB Group, Inc. in this conference call that are not based on historical fact are forward-looking statements within the meanings 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, our ability to implement our proprietary merchant hoarding and CRM system, and to roll out our omni-commerce and secure paid applications, including payment methods to our current merchants, and the integration of our secure payment gateway with our crowdfunding platform, our ability to successfully launch a cryptocurrency mining operation, and our ability to earn revenue from the new operations. While the company's management has faced 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 from 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, please see the information under the caption of risk factors in the company's most recent Form 10-K and Form 10-Q filings and amendments there, too, as well as other public filings with the FCC 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. Ronnie, I'm going to turn it over to you.

Ronnie Yakov, are you on mute?

Hello. Thank you, everyone. And thank you for taking the time to be with us on the call for the earnings call. And now I would like to introduce you to Rachel Bones, our CFO, and Patrick Smith, our VP of Finance. Rachel, please start.

Sure. Hi. I just wanted to go over a couple of our financial highlights for year ended, for December 31st, 2021. We saw an increase in our total revenues this year that went up about $6.9 million to $16.7 million, a good portion. The majority of that increase was a result of an increase in our transaction and processing fees. Those increased about $7.5 million to $15.8 million over the prior year. We also saw an increase in our total assets for the year over the prior year. Our total assets increased about $30.4 million up to $40.6 million at the year-end of December 31st. The increase is mainly attributed to an increase in our property and equipment and our intangible assets. And those two combined accounted for about $30.2 million of increase. And those two combined, $32.9 million of our total assets at the end of the year. Ronnie, do you want to talk about the offerings while we're able to do that?

Yes. Thank you, Rachel. The year 2021, we raised two rounds of financing. One of them was in August, $6 million, and another one on November, $25 million. With those capital raises, we achieved a lot over a very short time. And I want to mention that the company is debt-free. We have no obligations, not short or long-term obligations to anyone.

uh maybe patrick you want to talk about the achievements that we did on the acquisition site yeah thanks ronnie yeah in 2021 we had two different what i'd say significant acquisitions the first happened in august and it was the acquisition of exclusive rights to gas supply and prices with kai energy this was an acquisition that allowed us to That allowed us to have access to natural gas, and we use that natural gas to power generators that actually power our Bitcoin miners up in our Pennsylvania operation. So that was the first one that we did. The second we did was in the fourth quarter of 2021, when we purchased a CBD portfolio. Well, we say it's a CBD, but it's basically a merchant processing portfolio. The majority of the merchants actually do business in the CBD business or industry. But one of the things about that, too, is we were able to not just purchase the merchants. We purchased the processing agreement with Fiserv. We purchased all the sales channels, the sales agents. Basically, we were able to keep everything intact, and this allows us to have growth going forward. It keeps everything intact for the growth, for the sales, and for the channels. Can I turn it back over to Rani so that he can talk a little more about the, basically, after we created, after the acquisition of CalEnergy, we created a subsidiary called DMIT for the Bitcoin mining. Yes. Right.

So we created, yes, we created DMIT. And when we created DMIT, we already invested close to $10 million in assets machines. We purchased 1,000 assets machines. that are in the implementation mode as we speak. And everything has been paid already and machines are running. We started very late in 2021. We had a chance to run almost a month and a half only in this case. We have already a Bitcoin mine in this respect. And we also engage in two mining locations. One of them is in Bretthold, Pennsylvania, in the Farmer's Valley area. And another one is a facility that is near the Bretthold airport in this respect. So Patrick, maybe you want to talk about the CBD acquisition.

Sure. This acquisition was very significant to the company. It increased the company's merchant base and also tremendously increased the merchant processing volume. In the year, we were on a run rate of around $1.3 billion in merchant volume processing. This was a significant increase to our previous year. And we also increased the total number of merchants went from about 8,500 to around 10,500. That was, like I said, that happened in the fourth quarter, and that was part of the increase in revenue that was seen year over year. As Rachel said, we increased 82% from 2020 to 2021. The majority of it was significant. It was due to this portfolio purchase. The acquisition is what's called a bin transfer. We were actually able to get the bank identification number. We'll be able to control the full process of what we purchased. So it's It is a purchase of a portfolio, but it's also a purchase of a significant processing business. After that, I'm going to turn it over to Ronnie so he can actually talk about a couple of our products that we have over on the eBay inside SecurePay, and there's other services. Ronnie?

Sure. Thank you, Patrick. So we have the payment gateway that is SecurePay, and SecurePay – that basically is a similar gateway to companies like Authorize.net and Stripe. With this, we're creating the ability of having payment gateway that would allow us not to do credit card transactions, but would allow us to do transactions that are related to cryptocurrencies, managing the account, and also giving the ability to the merchants to have their own dashboard and they can control all their financials in this respect. Now, we also offer other merchant services like cryptocurrencies, and those cryptocurrencies are pretty much the beginning. We are also in the process of applying for a BitLicense. BitLicense is another subsidiary called Oilbit that we created in 2021. We invested significantly in this area and we'll be able to offer services of trading and services of financing to cryptocurrencies. Another significant service that we are integrating and we did this acquisition early January this year, but we started the process late last year. It is about Crowdignition. Crowdignition is a service that we provide for crowdfunding that is a REC CF that is approved by FINRA. We've been offered through those services, blockchain services that are related to transactions with blockchain getting loans to small merchants and DeFi financing for them. This process is already in motion and we're going to start offering it pretty soon this year. Now, the whole idea of the merchants is to have a one-stop place for all their financing. So from getting the transactions, getting the money paid, they can leave the money with us and we can do investments for it. Do you want to add anything to that Patrick as well?

I think the thing is what Ronnie was trying to say is we're in the process from the Bitcoin to the BitLicense to the processing to the merchant piece. We're trying to create a single ecosystem for the merchant to be able to do everything that they need to do from processing to crypto payments to loans, DeFi. We have got other new services that we plan to offer to the merchants.

So we achieved the 82% increase recently. Practically, the majority happened on the fourth quarter with acquisitions. We are very excited about the future and we have pretty much a good vision over the coming year as far as increase of revenues in the company and profitability as well. The same thing we feel about the Bitcoin mining. We had, in the beginning, difficulties to start with that. Now we're on track, and KyadioG plays the current operator with in-house operation, and we already started to do more and more, to install more machines. I want to mention also that During the last two quarters, people had a lot of questions, asking things. So we decided to create an area in our website that if someone has a question, they can pose the question and we're going to answer it online in this respect. So.

Yeah, I think that's all for us on this side. I don't know if, Ronnie, you have anything else you want to say or Matt or Rachel?

No, we're publishing tonight the financial statements. And, you know, if anyone has questions, email us. We'd love to answer them. Thank you, everyone.

Thanks, everybody, for their time. Look forward to hearing from you.

Thank you.

That concludes the OLB Group 2021 year-end earnings call. Thank you for your participation. You may now disconnect your lines.