Mobilum Technologies Inc. (CSE:MBLM) has reported a rise in revenue and a narrowing of losses for the second quarter compared with the first three months of its financial year.
Revenues for the three months ending August 31, 2022, reached $787,735, increasing to 5.43 times over first-quarter revenues, the digital service provider announced.
Its net operating loss was $177,413, a reduction of 93% in losses versus the previous quarter.
As of August 31, 2022, it had a cash balance of $2.02 million.
READ: Mobilum Technologies appoints John Henderson as interim chief financial officer
"There is much more to accomplish, but it is a step in the right direction. We are happy with what the team has been able to achieve in relatively short time since the new board and new management coming on,” said Mobilum CEO Steven LaBella in the results statement. LaBella was appointed CEO in April this year.
“Revenues are heading in the right direction. Given the softening of crypto industry over this same time period, our successes support our model of working with global leaders to create innovative payments solutions," he added.
Mobilum’s mandate is to introduce innovative solutions to the crypto industry, including traditional finance companies entering this market.
In May this year, Mobilum announced a new project with Binance and in July, together with a banking partner, it launched its Virtual International Bank Account Number (vIBAN) solution.
The company projects launching a new non-custodial wallet combined with prepaid payment features this upcoming quarter. This program was sponsored in part by a global credit card provider.
In addition to new product developments, Mobilum continues to build traction on its core products such as its onramp services. It noted that the onramp business is a competitive market and is very much subject to the ebbs and flows of the general crypto market.
It said it continues to attract new on-ramping clients and is positioned to gain as transactional volumes increase.
Commenting on the state of the crypto market, Mobilum noted that the current price of Bitcoin remains in the low $20K pricing and testing its lowest point in 2022 as of September 21 of $18,547.40.
Although the company itself is not directly impacted by crypto pricing, it does reflect the general health of the market and the general opinion that transaction volumes increase when prices increase, Mobilum said.
The crypto market is believed to be mirroring global economic conditions, where central banks are raising interest rates in response to increasing global inflation concerns.
This has led to increasing worries about global economic contraction, sparking recession concerns in key markets such as Europe, which may further impact crypto markets.
Mobilum said it is an innovative payment services provider, which continues to build its product offering and forge relationships with leaders in the payments industry, and as such its management feels it is equipped to respond and even thrive during such conditions.
Mobilum Technologies is a technology-driven digital service provider (DSP) with a mission to make digital assets and cryptocurrencies accessible through traditional finance and payment infrastructure and digital asset management technologies, providing solutions for Exchanges, Wallets and Cryptocurrency Businesses, NFTs marketplaces, Protocols, Decentralized Applications and Decentralized Autonomous Organizations, Metaverse and Play-to-Earn games, and Traditional Finance Institutions (Banks, Hedge Funds, Insurance and Fintech companies) opening its doors to digital assets space.
Its goal is to allow consumers around the world to convert fiat-to-crypto and crypto-to-fiat with Mobilum's on-ramp and off-ramp solutions. Mobilum has offices in Canada, Estonia, Lithuania, Poland, and the United States.
Contact the author at jon.hopkins@proactiveinvestors.com