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?