Banxa Hldgs Inc

Just giving it a couple more minutes, folks. Thanks, everyone, for coming. I know it's a holiday weekend for some of you. Most of you, I believe. Welcome, friends. For those of you that are familiar with Banksa, This is our introduction to banks, a conference call that we wanted to do, but also a bit of a company update for those of you that know a little bit about BNXA on the TSX-V and also on the OTCQX and in Frankfurt. And I'll just give you a little brief intro. Banks is a global payment service provider that serves the digital asset class industry. And it's technology acts as a bridge between fiat currency or the regular banking system and the digital asset exchange system. Dominic Kroos is the founder and our guest today who will be speaking. He is the chairman of banks as well. He's a tech pioneer and a serial entrepreneur that's invested and been involved in about 25 companies, the last 50 companies, actually the last 25 years, I was going to say the last 50 years, but that would make you way older than you are. And has a master's in entrepreneurship and innovation. So, uh, I think we can probably get started, Dominic, if you want. We just ask that you save your questions and put them in the chat, and we'll have a question session after Dominic finishes his presentation. And keep your mics on mute, if you will, please. And thanks so much for attending.

Fantastic. Thank you. Thanks, Julie. And thanks, everyone, for attending on a let's call it a long weekend that's coming up. What I'd like to do over the next half an hour is give you a quick overview of myself and background, talk about the state, the industry. And then talk about Banksa. We just released some financials, some quarterly updates yesterday, which I'll communicate as well as part of this. Please feel free to ask questions. There's a chat box. I always work on the basis that if you have a question, there'll be someone else here that has the same question. So don't be shy. And no question is a silly question. And I'll do my best to answer. Gareth J. So i'm just going to basically bring up a preso. Gareth J. And hopefully, most people can can see this before I get into the preso just to give you a little bit of background on myself i've been involved in. Gareth J. Technology. and blockchain since 2013. Before that, I ran a public company in Australia for a number of years and then was involved in a number of projects I'm just going to just hold this for a second, a VC fund as well that was investing into SaaS companies. And just fast forward to 2013, I saw this whole, let's call it evolution and ecosystem that was building around blockchain, found the whole thing very interesting, the way my brain works, I need to do, and basically started six months later launched Bitcoin.com.au, which is actually still owned by Banksa. And fast forward to where we are today, listed the company in January, and love to sort of share with you the journey that we've had so far. Before I talk about Banksa, let's maybe just spend a little bit of time on the industry. When I got involved in 2014, it was very much the domain of the nerds and I'm one of those nerds. But what we've really started seeing over the last 12 to 24 months is an entrance of institutions, high net worth investors, family offices that are moving into the space. The key metrics or one of the key metrics is the number of wallets out in the marketplace. There's 50 million and that's growing very rapidly. And for those of you that remember the dot-com days, this is very much, if I was to take an analogy, a bit like 1997. Amazon was just born and Google and Facebook weren't even born yet. So we're actually still that early in the evolution of the ecosystem. Yeah. Following on from the theme of different people getting involved, I'm sure some of you have heard of Paul Chitter-Jones, who's considered the father of the modern day hedge fund. He started investing in Bitcoin through his fund last year, and his view was it was a hedge against inflation. amongst a number of other things. And then obviously we've all been following Elon with his ups and downs with regards to Bitcoin. But, you know, suffice to say, you know, the whole industry is now starting to get much more mainstream acceptance. And this is really where Banksa fits in. Our vision is to really bring digital currencies to every corner of the globe. And so, you know, who are we and what do we do? We're actually the world's first and still only PSP payment service provider for the digital asset industry. We're like the Stripe or the PayPal for e-commerce. We're like the Stripe or PayPal for digital assets. And what we're doing is building a bridge, a payments bridge between the fiat world, and when I say fiat, I mean US, Euro, Canadian dollar world, with the digital asset world being Bitcoin, Ethereum, and all the other coins through. We call it the fiat on-ramps and the fiat off-ramps. And if you work on the basis that today a couple of percent of people are in the digital asset world. They've made that transition and more and more people are moving there. When people start, they always start with fiat money in their wallet, you know, whether it's Euro or US dollar or Canadian or Australian dollars. And so building those effectively payment channels and is a way that that they are able to get on and i'll tell you why that's actually important from a i guess a compliance perspective our our business model is b2b and we operate in a you know regulated space and and the the company's you know highly highly scalable and i'll talk more about that in a moment as well And most importantly, whether the price of Bitcoin goes up or down, we make money. And as we've previously announced to the market, May, for those of you that have been following the Bitcoin and other price, there was a significant decline in May. and May's an absolute record for us. And we've actually had record days and this will be a record month. So our business is actually stronger when there's volatility. So volatility is our friend. So what we do is four core things. One is that we aggregate a series of global and local payment methods. And when I say global, I mean MasterCard, Visa and Apple Pay. and local being Interact in Canada, Poly in Australia, ACH in the US. And I'll come back and talk more about why that's important. We then wrap that with what we call our regulatory and compliance platform, which is made up of a combination of digital asset licenses, because given the industry is regulated, Unlike when I got involved in 2014, it's now full AML KYC. It's a fully regulated industry. You need to be licensed. And so what we do is that we wrap that both from a compliance perspective, as well as a technology perspective. And then it's really underpinned by point three and four, which is our technology platform, our scalable technology platform. that manages the business from data pricing to ultimately delivering the coin to the customer in the most efficient way. And, you know, whether it's on-chain or off-chain, I'm not going to get geeky on you and start talking about it. But, you know, suffice to say, it's efficient and cost-effective for the customer and provides a better experience. And then what we do is that we take all of that technology platform that we've built, we plug it into exchanges around the world, crypto to crypto exchanges. And some of you may have heard of companies like Binance and KuCoin and Huobi and Edge Wallet. And so we plug it into global exchanges and we help them acquire more customers around the world. as well as providing liquidity. And what that would look like from a, let's call it a consumer perspective, is if you downloaded the Edge Wallet today, just to pick a live example that you could actually do right after this, go to Edge Wallet, download it. You start with zero. There's no coins in there. And so you then click on Banksa. And then Banksa will help you take you through the process, whether you want to pay by credit card or another payment method. You click a few buttons, you complete your AML KYC, and then a couple of minutes later, you've got $1,000 worth of Bitcoin and $500 of Ethereum sitting in your edge wallet ready for you to start trading or holding or staking or whatever you want to do with that particular asset at that point. The way that we make money is that we charge a combination of commission and spread. And then there are obviously a number of other revenue streams moving forward, like interest bearing accounts, borrowing and lending. But today we just click the ticket. The way that we measure our performance in the business, both internally as well as externally to the market, is through a measure that we call TTV, total transaction value. For those that can see the graph, we went from 100 million TTV in the December quarter to just over 200 million TTV in the March quarter. And as we announced to the market a couple of weeks ago, our TTV in April was 110 million. Basically, we did more in April than we did in the entire December quarter. And if you extrapolate this June quarter out, it's going to be well in excess of 300. So it's 100 million, 200 million, 350 million is the current growth trajectory here. We announced our March quarter results 24 hours ago. Some of the key highlights coming out of that. And we've got full financial reports on CETA for those of you that want to get in and spend some of your long weekend reading financial reports. It's all available on CETA. Some of the key highlights, the nine months to the end of the quarter, the March quarter, we did just shy of 400 million of TTV. We generated 21 million of revenue for that particular quarter and also generated a small adjusted EBITDA profit of a million dollars. And to date, we have over $25 million in cash and cash equivalents on the balance sheet. And so we have a strong balance sheet. We're very sort of pleased with that. That's really going to help us continue accelerating the growth in the company. As Julie mentioned, we're listed on the TSXV under code BNXA, the OTCQX BNXAF, as well as on the Frankard Stock Exchange. There's just shy of 45 million shares on issue and then just shy of 4 million employee options. We are big believers of aligning interests in terms of our shareholders and our team. And then if you go to the banks or website, there's also some research that you can download and have a look at as well. And if anyone asks me questions around that, I'm happy to answer what the price targets were of each of those particular reports. I mean, in terms of comparables, we are the new kids on the block. So we're really at the lower end of the spectrum around some of the other companies in the crypto space. And Canada is mentioned, we're the only payment service provider anywhere in the world. So we don't have an absolute direct competitor. So banks has got a roughly Canadian 200 mil market cap, but 150 million US. There's a couple of companies that I've mentioned here, like big companies, And if you check out their results in the prior quarter, we had revenue four or five times larger than them. And yet they've got a market cap larger. And I'd say we're actually closer and more in line with the evolution of Voyager, albeit they run a different business model. And in fact, they now got a market cap, I think, almost approaching 3 billion Canadian dollars. But we're also very conscious, you know, we listed in January, when new, it takes time to build trust and reputation in the marketplace. And in fact, most investors that we talked to have never actually heard of banks before. So that's just going to take time to get the message out there. In terms of our shareholders, our board and management, we are absolutely aligned with 25% of the company. The next three investors are all institutional funds. That's Allium, NGC and Thorny. And then some of you would have noticed, we actually have two of our customers sitting on the register as well, and that's OKEx Exchange and KuCoin Exchange. Some key catalysts for growth over the next six to 12 months will be continued focus on our TTV, our total transaction value growth. To date, we have about 77 zero customers. Our target is 500 and the universe is thousands. There are thousands of global exchanges, crypto to crypto exchanges and wallets, and we're targeting the top 500. So there's still a lot of organic growth still to go in the business, as well as continuing to expand into new countries, Asia and Africa, as well as continue to add more coins. We have about a dozen coins to date and we'll continue adding more coins in the future. In terms of board and management, as mentioned, Julie mentioned at the start, I'm the founder and chair. My other directors, Jim Landau, Doron Cohen, Matt Cain, between the three of them have got over 50 years of public company and technology experience, led by our CEO, Holger Adians, and as you can tell, he's a German national. And as I really love to say, he runs the company with German Precision Group. And then we have Constantine and Josh, XEY, and Ian Clark, ex-Goldman Sachs, rounding out the team. So that's really the formal part of the presentation. I'd really like any questions that people have got, so feel free to ask. But just really sort of as I'm kind of summing up the Prezzo presentation, If you believe the hypothesis that the digital asset system is here and it's here to stay and it's going to continue growing, then companies like banks are that in effect connect the old financial world with this new financial world will prosper because we need, you know, the 98% of people that have yet to move in need the fiat on and off ramps in order to be able to experience digital assets.

Dom, do you want me to go through some of these questions now that we can address before you maybe give a little update on the recent news this week?

Yeah, so actually I've got some of the key questions here, which I will sort of go through now. I won't say one by one, but I'll do my best to answer. I mean, I've sort of touched on the numbers and if people have got some specific questions, feel free to ask. But Andrew asks, how long before you enter the DeFi space? What are your short term in terms of expanding the business? As you can maybe see, I'm just on the B2B customer slide. And maybe just to give everyone a little bit more sort of insight into what we do. So as I mentioned, just say you're on Edge Wallet. You go into Edge Wallet, you click a few buttons and you can buy some Bitcoin or Ethereum. You'll also know, and if you want to then get involved in DeFi, DeFi is decentralized finance where you can stake, you can basically do yield farming, you can borrow. Think of it as everything you do in the traditional financial world you can do in the DeFi space. Now, for most people, once again, I'll try not to get too geeky on everyone. You've got to go to Bitcoin, either convert Bitcoin to Ethereum or wrap your Bitcoin. Then use something like Metamask and then upload to SushiSwap, which is a decentralized exchange. Now, there's three or four hops there. For most people, I've already lost them just getting Bitcoin and understanding private keys. And you'll notice one of our customers called CakeDeFi. And we've got some other DeFi companies that we're in the process of launching with, which allows you to go straight from fiat into a DeFi coin. without having to be an absolute technical genius on how that whole system works. And I could also talk about the NFT space, sometimes called non-fungible tokens. And some of you may have seen artwork and other collections that are being sold. Right now, it's actually quite complicated as well. And hence, you need to be able to, and the service with banks, so you'll be able to go from fiat straight into your favorite NFT space. Habib asks, how many new clients do you expect to add every quarter? We have right now 77 zero B2B customers. And so we, and each of these customers has thousands, if not millions of potential individual customers. Maybe Habib, this would be a good time to talk about how we actually acquire customers our B2B customers. Up until recently, we had one business development person and one customer success manager now that we've listed. And we raised money a couple of months ago. We're really adding to our sales team. But just to give you insight, just if you're asking for a gut feel, 50% we went out and got, the other 50% came to us. Let me give you an example. Trezor. For those of you that know Trezor, Trezor is the largest and the first hardware wallet. It's a cold storage wallet. And when you buy that wallet, it comes with, once again, zero Bitcoins. And so they've plugged us in to make it. You buy a cold storage wallet, you buy some Bitcoin and Ethereum, and you can then store it away safely. As soon as we announced that deal, we announced that deal last quarter. Within 24 hours, we had a number of the Trezor competitors contact us, say, we've just seen what you've done for Trezor. Can you do the same thing for us? And when I hear stories like that, that's music to my ears because it kind of reaffirms the fact that we have demand for our product. Andrew asks, how many potential partners do you have in the pipeline in the near term? The target's 500 over the next 18 months. So we've set ourselves some fairly audacious goals. And now it's really about continued execution. Sophie asks, congrats on the quarter. Thank you, Sophie. Could you talk about the drivers for a big jump in TTV monetization rate and how sustainable is it moving forward? And also just in terms of margins, et cetera, et cetera. I think first and foremost, what are the key drivers in our business? Volatility is one driver. Whether the price is going up or down, just as long as there is movement, that actually is positive for our business. Two, adding new customers. That's another key driver. And the other key driver, and I should have mentioned this before, I'll just go back to the TTV slide. 98% of what we do today is what we call fiat on-ramps, going US, dollar, euro, Canadian into Bitcoin and Ethereum. We've just recently turned on and have been testing fiat off-ramps, going Bitcoin, Ethereum back into cash, back into fiat money. And we're testing this in Australia because it's a small country of only 25 million people and it's a good test market. We just want to get it right before we then launch it in the rest of the world. You may ask why? It's because it's actually, there's some extra compliance steps required when you go off-ramping. For example, we need to check the providence of the coin and the wallet to make sure it hasn't been used for any nefarious purposes. That's one technical and compliance check amongst a number of others. So we just wanted to get it right. Now, sometimes I get asked, well, if you turn on the off ramps, will that double our TTV? I think the answer to that question is I think it will add 30% to 50%. I don't believe it will double. Maybe once the industry is mature, in three or four years' time, there will be an equal amount of on ramping as what there will be off ramping. Sophie also asked, can you talk about the geographical expansion into North America? So we're actually in North America today in Canada. We work with a partner in the US. And so, yeah, that's, you know, the growth for us is really going to be in Asia, in Africa, in Latin America. Andrew asks, TTV perspective, what percentage of that is small orders versus, say, large orders? Andrew, the average order value is, let's work on the basis, it's about $1,000. That's the average order value. And the average order value when Bitcoin was $5,000, $10,000, $40,000, $60,000, the average dollar value was $1,000. And that kind of further reaffirms the fact that we are actually divorced from the fact of the Bitcoin price. which is the point that sometimes, and this is a point that's actually quite difficult to understand because I know a lot of people invest into miners and they have an absolute direct correlation with the price of Bitcoin. And that model makes absolute perfect sense. But for exchanges, for payment service providers like us, there's basically little correlation between the two. Bjorn asks, Yeah, thanks for your nice comments as well, Bjorn. Any marketing strategies planned to bring banks of stock out of the shadows? Bjorn, the answer is undoubtedly yes. We raised some money. We're now going to continue increasing our exposure in North America specifically and me doing just many, many more of these events. And so the answer is yes. We will do that. And it takes time. As I say, Rome was not built in a day. Fabian asks, are there any plans to add Coinbase to your B2B partners, customers? Fabian, that would me be talking about things that I'm not allowed to talk about at this particular point in time. There's some of the top 10 that are currently missing. They are on our radar. I'll just leave it at that. Andrew asks, can you touch on your plan for the rest of the year in terms of different service offerings, borrowing and lending? As I mentioned, we will turn on fair off ramps. And I'll just go to slide number eight and kind of address your key question there. Today, we make money through transactions, you know, when people use the on-ramps. And I consider this what I call layer one. It's a layer one service, payments. It's pretty basic. Over time, what we're going to be able to do, given that we have connections with the global exchanges, is to add other products and services that I call layer two services that sit over the payments. We're interest bearing accounts, borrowing and lending and these other products, which you need the payment infrastructure implemented first before you can actually run the other part of the infrastructure. So we have a very strong pipeline over the next few years in terms of rolling out these other products through our partner exchanges. And so for us using the McKinsey horizon model payments is horizon one. Some of these other products are horizon two and horizon three. Colin asks, what are the next currency pairs you plan to add? Right now, our core, our Pareto principle usually applies in these kinds of instances. US dollar, Canadian, Euro, GBP, as in Great British Pounds, and Australian dollar, they make up roughly 80%. And for those in the FX space would say, yep, that's pretty similar to what happens in the FX market as well, maybe apart from the Japanese yen. Colin asks, how do you view PayPal as a fiat on-ramp or competitor? And what do I think of the announcement that they'll allow users to transfer crypto off their platform? All I'll say is alleluia. Any platform that tries to lock someone in where you buy crypto and you're not actually allowed to transfer it to yourself, you're really not buying crypto. As I say, not your keys, not your coins. You know, what PayPal is really doing and their big push is allowing websites out there to actually accept crypto. And what's that going to do? That would just bring many more than 98% of people that have never experienced this space into this digital asset world. And so I say, you know, that is absolutely fantastic for our industry. Andrew asks, percent of our revenue from Teat that comes from anywhere else? No, it's basically all, you know, TTVs, the transaction value. Steve asks, are your contract arrangements as far as how you are compensated margin similar across platforms or some are, or we paid a flat fee or a percentage. It will depend upon the customer, the volume, the payment method. There's no one size fits all. And so it will be a combination of all of the above. Andy Rick asks, what is Banksa doing to stay ahead of the competition? Simplink's just got bought for 250 million. What's the impact of 250 million US? What's the impact of the valuation of Banksa? Thank you for asking that question. And that will actually help me answer the point that I made earlier. So how are we different? So there's some competitors and these competitors are actually listed in our research report. We actually list our competitors. If you look at Simplex, they offer credit card and SEPA transactions only. We offer as banks are over a dozen different payment methods. Just to give you some context, roughly 50% of our TTV is credit card. The other 50% are local payment methods. And you may ask, why is that actually important? So if you're buying, for example, $1,000 worth of Bitcoin with a credit card, you expect to pay about 5%. That's the industry average. That's us. That's Simplex. That's the other companies in the space because credit card is inherently expensive. But if you're buying $5,000 worth of Bitcoin or you buy on a regular basis, you will want to use a local payment method because it costs pennies in the dollar, like Interact in Canada or Ideal in the Netherlands. Now, in order to be able to offer Interact in Canada, you need to have a local company, which then means you need to have a local bank account, which then means you need to adhere and acquire digital asset licenses or registrations in that particular country. And so the major point of differentiation is that Banksa has done the hard work. We have multiple companies and registrations around the world that allow us to offer local payment methods. And just to give you a sense, our license in the Netherlands, that was a 12-month process. You don't just rock up to a country and say, I'm ready to start selling crypto. It's a very long, arduous and complicated and expensive process. So hopefully, NDI, Rico, I've answered that particular question. That is the major point of differentiation as well. David asks, any research yet? David, if you go to the bankster.com website, if you click on investors, and then you'll be able to download, there's a couple of research reports there as well. Jeffrey asks, is there a target date for off-ramping? I mean, we've tested in Australia. You can off-ramp today. If you're in Australia and you want to off-ramp to an AU dollar account, you can actually do it progressively over the next six months. I can't give you a specific timeframe. Suffice to say, work in progress. NDI Rico asks, have you considered the use of a SPAC route to get to NASDAQ faster? Yes, we have. But what I'll do is answer that question and say one of the reasons that we actually listed on the TSX is after we listed on the TSX for more than 12 months, there is what is called a fast track process from TSX to NASDAQ. And it also means we get exemptions from Sabine's Oxley for five years and a number of other sort of requirements are basically made much faster. And so January 2022, we will have been listed on the TSX for 12 months. I'm not going to give you a time space or timeframe, but what I will say is that Banksa belongs on NASDAQ. Jerry, will the focus remain only on fiat on-ramps for crypto or will be expanded to other website payments? There's always an option to do that, but really today, we are absolutely focused and absolutely busy just dealing what we're doing. And we have 70 customers. The universe is thousands of customers and there's more crypto to crypto exchanges and wallets expanding all the time around the world and basically being born because the industry is growing. And so, you know, providing fiat payments, on-ramping. In terms of just providing a way for websites to accept crypto, there's already companies like BitPay and others that are already doing it. That horse is already bolted. This is a real white space opportunity for us. LR asks, what is the opinion to the digital euro and how will banks handle it? And so, yeah, thanks for your comment about the earnings. Thank you very much there, LR. Frankly, all countries around the world over the next five to 10 years will all issue their own digital currency. And whether it's digital euro or the US dollar or the RMB in China, they've already done that. How will it affect it? that basically it won't it will just be another fiat method to pay you still need to go from fiat to crypto you still need to do the on-ramping because really fiat money is actually already digital anyway it's just how it will just be on end up being on the blockchain as opposed to the central ledgers of the central banks and and the banks so in in that respect um it actually won't make much difference and in fact what it will do is give more people confidence in all things digital, particularly things that are on the blockchain. And then a percentage of those will undoubtedly move across to the digital asset world. NDI Reco asks, can the software architecture supporting the business scale over time? And what's the tech stack? I mean, we've got a number of different layers in terms of the tech stack. We work with Amazon AWS as one of our key partners, and that's one of the ways that we can really continue scaling the business. This business has... what I call a lot of leverage. Whether we are doing 200 million or $2 billion in transactions a quarter, the technology does the majority of the heavy lifting. Sure, we'll need to add some more customer service people and customer success managers, and then obviously turning up AWS, but the tech does the rest. And that's the beauty of the model. That's why we love it so much. NDI Rico asks, demand surge need to deal with grocery sustain. What is being done operationally to ensure that? You know, we are growing very rapidly. We've got a really focused team. We've got about 100 people in the company in the last six months. We added about 50 people, a lot of those in support. You know, what's really important for us is really the. providing good level of of customer support you know fanatical support is what i like to say and so we've really doubled down in regards to you know providing that from a customer perspective continue to add more more customers more b2b customers to our platform as well and Can we talk about the revenues and some of the other highlights, et cetera, et cetera? And, you know, from a revenue perspective, as mentioned, you know, we did 21 million in the March quarter on an underlying EBITDA basis. We did a million dollars in EBITDA. which is great, but just to be, you know, once again, super direct with everyone as I like to be, the objective of the business short-term is to reinvest any profit it makes into growth. Because the opportunity is not doing 200 million per quarter, but doing billions and billions of dollars per quarter. And given that we have $25 million in the bank, and we have a strong balance sheet in that respect, basically, we've got enough ammunition to be able to make it happen. Robert asks, were there some provisions around recoverability and banned debts? Undoubtedly, we always put, it's just prudent financial accounting. You always put in a number of provisions, like we put in a provision for payment of tax because we're actually making money. We put in a provision in terms of recoverability. It's like any business where you've got accounts receivable, you always include a percentage as well. ALNNC asks, does banks trade cryptocurrencies or just helping others trade? So maybe just to take a step back, we're not an exchange. Our customers are. are exchanges where you can go in the exchange and trade a BTC, ETH pair or any other kind of pairs. What we help do is take your US dollars or Canadian dollars, convert them into Bitcoin on those global exchanges. So that's basically what we do. Tony asks, are you on-ramping all coins provided by your partners, including Cardano or just only on-ramping BTC and ETH? Tony, we're currently doing about a dozen coins. We've got about another 40 or 50 coins about to come online. um frankly you know if you ask me your 80 20 rule i'm a big believer of perito principle if you haven't worked that out already um 80 20 rule applies in many aspects of life um you know 20 of coins generate 80 of the ttv uh if you ask me what the top coins are bitcoin ethereum and usdt usdt being a stable coin that is pegged to the us dollar uh And the beauty of our model, just to sort of be super clear, whether it's Bitcoin, Ethereum, USDT, or a coin that hasn't even been developed yet, we will be able to integrate that onto our platform. And it doesn't really mean, it doesn't really matter to us what coin it is. Just as long as it's a bona fide token, that's the most important thing. Yep. Sophie asks, your TTV monetization rate, TTM in March is about 206 mil. Your revenue is 21, equating to a monetization rate of 10%. Our other quarters, it was three to 4%. So, in regards to part of that number, Sophie, and it's broken down in some of those reports, roughly 50% was from the sale of some cryptocurrency, specifically Bitcoin that we had on the balance sheet, and the other was from commission. or agency commission that we get from our particular customers. So yeah, this was a better, the best quarter we've actually had so far. And really sort of moving forward, some of the key drivers will be continued increase in the TTV, which then should have an impact, a positive impact on our revenue. Whether that revenue is both on an agent basis or a principal basis. And I'm not gonna go into revenue recognition because I could spend the next 20 minutes talking about revenue recognition and put pretty much everyone to sleep. But suffice to say that... If you ask me what's one of the best ways to kind of determine how the business is going, my view is look at the cash flow statement. Look at the millions of dollars of cash flowing in and out. That would just always, in any sort of business, one of the first things I do is I look at their cash flow and just actually understand the flow of cash. And then from there, I look at the accounts and understand what things look from an accrual basis perspective. Now, I think we've pretty much done all the key questions. I'm also conscious of everyone's time as well because I know everyone wants to be getting back to their sort of holidays. Do we have any further questions? Maybe we've got time for one or two more. So please do send them through. And no question is a dumb question.

There's one here about Simplex getting bought for $250 million. What's the impact of that valuation to banks?

Well, it makes us look cheap in that respect. $250 million US, which is about $320 odd million Canadian. And as I mentioned earlier, we are doing things that are well above and beyond what Simplex is doing in the space. Actually, the other one I got coming through via email from James. James talked more about M&A and the opportunities there. So I'll answer that question in a couple of ways. So one of the other reasons we listed was that at some point in time, given that this industry is growing, it's still fairly fragmented, there will be consolidation in the space. And so being listed just gives us greater optionality when we do look at potential acquisitions. And so, and the other sort of part of that question is, I think longer term, you know, as the business continues, as the business continues growing, you know, I think ultimately there'll be, you know, a potential suitor for Banksa. And if you're asking me to, you know, break it down, I'd break it down into two key buckets. You know, the buckets would be the crypto natives there. And when I say crypto natives, what I mean is existing crypto to crypto exchanges and wallets out there. And then the other bucket would be more, let's call it traditional crypto. financial companies that actually want to get a foothold into the space. And it's a bit like Nuovi buying Simplex. And so that could be the other bucket of consolidation. But really, that's really our secondary concern. Right now, the view is really simple. In Australia, we have a saying that head down, bum up. We focus on the business. We get it performing really well. We do the right thing by our customers. And then the bids will come. So I think we've got still a huge amount of work ahead of us. And as I mentioned in the slide, basically, we are still so early. This is a bit like 1997. And so, you know, new companies like Facebook and Instagram and WhatsApp weren't even born yet. Andrew asked final question, because I'm conscious of the time. Simplex did 500 TTV. Do we know what kind of TTV they did in 2021? um i i i won't go into a confident about their confidential numbers other than what they've actually announced um obviously i am i am um uh privy uh to some of those numbers let's just say we are growing materially faster is my understanding materially faster uh and um And so actually Robert asks, he's not satisfied with the answer about the bad debt provision. It rose 6,000%. That's Robert, just to give you sort of context. We went through a process. We, in this particular quarter, added a provision. I mean, you usually don't add provisions for these kinds of things. um you know every single every single month usually do that on a six or twelve monthly basis we just thought it was prudent to add it if we wouldn't have added in we would have made enough an extra couple of million bucks even so in that respect it would have actually helped the results but once again what that shows is you know we prefer to take a conservative approach when communicating our results And I think that's just the name of the game. We're here for the long game. We love what we do. And frankly, there's still a huge amount of growth. And ultimately, just to kind of sum up and um you really move and sorry Robert you say it's a one-time charge it's it's it will be um there's always you always have those kinds of provisions you know in tax and bad debts and other um you know as a general provision across the books as a percentage of your total TTV so it will ebb and flow according to that it's just a good sound accounting practice um but just to kind of uh leave you with something that just kind of sums up this whole ecosystem. And I know people are focused on the coins and the price and the volatility. And I know it's, it's hard not to, not to focus on that, but just to really paint the picture of, of why I think, you know, there's a whole, I'm going to go as far as say a revolution that's going on. What, crypto and blockchain that really underpins this whole ecosystem is doing is ultimately democratizing finance. And, you know, we were talking about DeFi at a high level and NFTs, which really help create new revenue streams for artists and creators out there. But ultimately, what is being created is a new financial system. And this financial system doesn't care whether or not you're living in a penthouse in New York, you're sitting at a beach at Bondi in Australia. or you're plowing the fields in Rwanda, you will have access to the same information and access to the same financial tools. And ultimately what it does, it will bank the billions of people around the world that are currently And so this is why I'm really excited. And this is just one part of an overall ecosystem that is being created and being built. And we are very fortunate today. and grateful to be really part of, you know, making of history. And, you know, it's as important as the internet is and was and continues to be. So really, without further ado, actually one last question from Andrew. Will the bull market continue until the end of the year? I think, Andrew, if you look at the last, having been involved since 2014, I've lived through multiple cycles. I think this is my fourth or fifth. Typically, the markets will last much longer than what they have. But I'll tell you, there's one big difference today. compared to all the other cycles. In the earlier cycles, it was really retail and nerds like me. They were the ones. And I'll say, we didn't have deep pockets. We don't have deep pockets as compared to... the big family offices, the financial institutions, the multi-billion dollar funds, the big corporations like MicroStrategy holding billions of dollars on their balance sheet. We didn't have at that point in time governments around the world printing money like it's going out of fashion. What is it, in the last 18 months? 25% our currency, our fiat currencies have been expanded 25%. It's like the perfect storm for fiat. And what's going to happen? There will be a migration to fiat. to digital currencies like Bitcoin, which many people consider a hedge against inflation. There will be companies and people moving into DeFi because they will be able to earn interest, three, four, five, 6% interest on their tokens instead of holding it in the bank for negative interest rates. So this is why, you know, this is, for me, this is more than just a bull market. We are now going through, you know, a fairly, a tectonic shift, a tectonic shift. So thank you, everyone. Without further to do, because I know we've got to, we've got a sort of hard stop. Thank you for your time. If you have any further questions, feel free to write. I mean, I'm on Twitter, dcorosa on Twitter. You can always email us through the website, bankster.com, download some research. And if you haven't already done so, you know, go out there and buy some Bitcoin, buy a hundred bucks worth, touch it and feel it. And I think it's a really good way to learn. So thanks all. And Julie, across to you.

Thank you, folks. And just to let you know, we will be doing lots of these in the future and hopefully we'll be able to meet you face to face and shake hands when this whole thing comes to an end. So we appreciate your time. Have a wonderful Memorial Long Day weekend and see you soon.

Thanks, everyone. Ciao, ciao. Bye bye.