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Business Wire
07-05-2025
- Business
- Business Wire
XTM Files 2024 Annual Financial Results
TORONTO--(BUSINESS WIRE)--XTM Inc. ('XTM' or the 'Company') (QB: XTMIF / CSE: PAID / FSE: 7XT), a fintech innovator in automated tip calculations, instant payouts for employees and gig workers and earned wage access ('EWA') through its AnyDay™ platform, today announced it has filed its audited financial statements and management's discussion and analysis (MD&A) for the fiscal year ended December 31, 2024 (the 'Required Filings'). The long-term partnership and support from Digital Commerce Bank and its subsidiaries, positions XTM to scale rapidly, backed by strong financial support and a robust infrastructure. Share With the April 25, 2025 announcement of a signed agreement with Pateno Payments Inc. ('Pateno'), a subsidiary of Digital Commerce Group, and the resulting long-term partnership and support from Digital Commerce Bank and its subsidiaries, the Company is now well-positioned to scale rapidly, backed by strong financial support and a robust infrastructure. 2024 Financial and Operational Highlights Revenue Growth: Revenue increased 34% year-over-year to $9.1 million, driven by continued demand for XTM's payment solutions, despite ongoing economic pressures. Gross Dollar Value (GDV): The Company processed more than $800 million in payments to hospitality sector employees — a 21% increase — with 95% of the volume generated in Canada. New Client Growth: XTM added 689 new business locations in 2024, bringing total onboarded locations to more than 3,500 as of year-end 2024. Platform Engagement: Active users on XTM's Today platform increased by 40% compared to the prior year. An active user is defined as one making at least one transaction via the Today wallet within a 30-day period. Operational Streamlining: The Company focused on operational efficiency, reducing overhead, eliminating redundancies, and investing in long-term sales partnerships to support scalable growth. Adjusted Financial Metrics (Non-IFRS; see MD&A for definitions) Adjusted EBITDA Loss: Improved 24% to $(14.6) million, from $(19.4) million EBITDA Margin: Narrowed to (161%) from (286%) in 2023 Adjusted Net Loss: Improved 6% to $(20.9) million, or $(0.10) per diluted share, from $(0.12) Subsequent Events CAD $13M Credit Facility: On January 1, 2025, XTM signed a CAD $13 million Letter of Credit with Pateno Payments to support growth and cash neutrality, ahead of a planned uplisting to a senior exchange in the second half 2025. Processing Agreement: On April 25, 2025, XTM signed a USD $3 million agreement with Pateno Payments for QRails processing operations. The transaction is expected to cut monthly operating costs by approximately 50%. XTM retains full ownership and management of its proprietary AnyDay™ EWA platform, including client relationships and technology integrations. Denver Office Virtualized: In March 2025, XTM moved to a virtual work environment, divesting itself of significant office overhead expenses. Filing Details The audited consolidated financial statements and MD&A for the year ended December 31, 2024, are available on the Company's profile at Expand About XTM Inc. XTM Inc. is a global fintech innovator with offices in Toronto and Miami. Through its AnyDay™ platform XTM delivers instant pay and Earned Wage Access solutions to restaurants, hospitality, personal care, and staffing sectors. XTM supports some of North America's leading brands including Earls, Marriott Hotels, Maple Leaf Sports & Entertainment, Cactus Club, and Live Nation. Learn more at Expand Forward-Looking Statements This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws. These statements involve known and unknown risks, uncertainties, and assumptions, and may include words such as "expects," "intends," "anticipates," "plans," "believes," and similar expressions. Actual results could differ materially from those projected due to various risks and factors beyond the Company's control. The CSE has neither approved nor disapproved the contents of this press release and accepts no responsibility for its adequacy or accuracy.
Business Wire
29-04-2025
- Business
- Business Wire
XTM Signs Definitive Asset Purchase Agreement
TORONTO--(BUSINESS WIRE)--XTM Inc. ('XTM' or the 'Company') (QB: XTMIF / CSE: PAID / FSE: 7XT), a fintech innovator in automated tip pooling, instant payouts, and Earned Wage Access ('EWA') through its AnyDay™ platform, is pleased to announce it executed a definitive Asset Purchase Agreement with Pateno Payments Inc. ('Pateno'), a subsidiary of Digital Commerce Group, on April 25, 2025 for the sale of the QRails, Inc. processing technology. The transaction delivers immediate non-dilutive capital and significantly reduces overhead, providing meaningful margin expansion and growth runway. Share The strategic transaction, valued at USD $3,000,000 (subject to purchase adjustments), is expected to reduce XTM's monthly operating costs by approximately 50%, positioning the Company to reach cash neutrality by Q3 2025. The divestiture enhances XTM's financial profile by removing the burden of the operations and expense of running the processor while maintaining the business continuity and service offerings through ongoing access to the QRails processing platform. XTM will retain full ownership and management of its proprietary EWA platform, including key contracts, integrations with payroll, time & attendance, and other critical systems. The Company's core QRails processing engineering team has already transitioned to Pateno to ensure operational continuity and support for both XTM and Pateno clients. The transaction delivers immediate non-dilutive capital and significantly reduces overhead, providing meaningful margin expansion and growth runway. KEY STRATEGIC BENEFITS TO SHAREHOLDERS Improved financial flexibility with near elimination of monthly burn and a strengthened balance sheet Margin improvements on interchange and real-time payments, which represent a sizeable portion of the Company revenues Non-dilutive capital injection to accelerate growth initiatives Access to expanded processing capabilities, including virtual card issuance in both Canada and the U.S. Operational efficiency gains through improved reporting, scalability, and system redundancy Focused strategy with increased attention on core growth and shareholder value 'THIS TRANSACTION MARKS A PIVOTAL MILESTONE IN XTM'S EVOLUTION,' SAID MARILYN SCHAFFER, CEO OF XTM. 'IT ENABLES US TO CONCENTRATE FULLY ON SCALING OUR ANYDAY™ PLATFORM, WHILE BENEFITING FROM A LEANER, MORE AGILE OPERATIONAL MODEL THAT SUPPORTS OUR GROWTH AMBITIONS.' The transaction is expected to close within the next five to ten business days, pending customary bank and network approvals. ADDITIONAL COMPANY UPDATES Dissolution of the Company's referral agreement with KOHO, originally announced on November 14, 2024. The Company will revert approximately 10,000 AnyDay members who transitioned to KOHO earlier this year back to the AnyDay™ platform, with full migration expected by June 30, 2025. Termination of Proposed Investment Agreement with Pateno: The non-binding letter of intent previously announced between XTM and Pateno, contemplating a proposed investment, has been formally terminated. The transaction is now fully replaced by the present asset sale agreement. Debt Elimination: Upon closing of the transaction, XTM will fully repay the EWA funding provided by Two Shores, and settle all interest obligations associated with long-term debt. Following this, the Company will be debt-free, aside from existing convertible debentures. Share-Based Compensation Update: As of March 31, 2025, XTM has issued 6.7 million shares at an average exercise price of $0.965, granted to employees and consultants as part of its retention strategy, via restricted share units (RSUs) and stock options. These actions reflect XTM's ongoing commitment to financial discipline, operational focus, and long-term value creation for shareholders. ABOUT XTM INC. XTM is a fintech company providing modern payment solutions to businesses in hospitality, personal care, and staffing. Its flagship AnyDay™ platform enables on-demand access to earned wages and real-time payments. Powered by QRails technology, XTM's infrastructure supports seamless payroll disbursement and financial wellness tools for workers and payroll providers globally. For more information, visit: Disclaimer for Forward Looking Statements This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (the "forward-looking statements"), within the meaning of applicable Canadian securities legislation, including management's plans regarding its businesses. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as "expect," "plan," "anticipate," "project," "target," "potential," "schedule," "forecast," "budget," "estimate," "intend" or "believe" and similar expressions or their negative connotations, or that events or conditions "will," "would," "may," "could," "should" or "might" occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.
National Post
29-04-2025
- Business
- National Post
XTM Signs Definitive Asset Purchase Agreement
Article content TORONTO — XTM Inc. ('XTM' or the 'Company') (QB: XTMIF / CSE: PAID / FSE: 7XT), a fintech innovator in automated tip pooling, instant payouts, and Earned Wage Access ('EWA') through its AnyDay™ platform, is pleased to announce it executed a definitive Asset Purchase Agreement with Pateno Payments Inc. ('Pateno'), a subsidiary of Digital Commerce Group, on April 25, 2025 for the sale of the QRails, Inc. processing technology. Article content The strategic transaction, valued at USD $3,000,000 (subject to purchase adjustments), is expected to reduce XTM's monthly operating costs by approximately 50%, positioning the Company to reach cash neutrality by Q3 2025. The divestiture enhances XTM's financial profile by removing the burden of the operations and expense of running the processor while maintaining the business continuity and service offerings through ongoing access to the QRails processing platform. Article content XTM will retain full ownership and management of its proprietary EWA platform, including key contracts, integrations with payroll, time & attendance, and other critical systems. Article content The Company's core QRails processing engineering team has already transitioned to Pateno to ensure operational continuity and support for both XTM and Pateno clients. The transaction delivers immediate non-dilutive capital and significantly reduces overhead, providing meaningful margin expansion and growth runway. Article content 'THIS TRANSACTION MARKS A PIVOTAL MILESTONE IN XTM'S EVOLUTION,' SAID MARILYN SCHAFFER, CEO OF XTM. 'IT ENABLES US TO CONCENTRATE FULLY ON SCALING OUR ANYDAY™ PLATFORM, WHILE BENEFITING FROM A LEANER, MORE AGILE OPERATIONAL MODEL THAT SUPPORTS OUR GROWTH AMBITIONS.' Article content The transaction is expected to close within the next five to ten business days, pending customary bank and network approvals. Article content ADDITIONAL COMPANY UPDATES Article content Dissolution of the Company's referral agreement with KOHO, originally announced on November 14, 2024. The Company will revert approximately 10,000 AnyDay members who transitioned to KOHO earlier this year back to the AnyDay™ platform, with full migration expected by June 30, 2025. Termination of Proposed Investment Agreement with Pateno: The non-binding letter of intent previously announced between XTM and Pateno, contemplating a proposed investment, has been formally terminated. The transaction is now fully replaced by the present asset sale agreement. Debt Elimination: Upon closing of the transaction, XTM will fully repay the EWA funding provided by Two Shores, and settle all interest obligations associated with long-term debt. Following this, the Company will be debt-free, aside from existing convertible debentures. Share-Based Compensation Update: As of March 31, 2025, XTM has issued 6.7 million shares at an average exercise price of $0.965, granted to employees and consultants as part of its retention strategy, via restricted share units (RSUs) and stock options. Article content These actions reflect XTM's ongoing commitment to financial discipline, operational focus, and long-term value creation for shareholders. Article content ABOUT XTM INC. Article content XTM is a fintech company providing modern payment solutions to businesses in hospitality, personal care, and staffing. Its flagship AnyDay™ platform enables on-demand access to earned wages and real-time payments. Powered by QRails technology, XTM's infrastructure supports seamless payroll disbursement and financial wellness tools for workers and payroll providers globally. Article content This news release contains 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities laws (the 'forward-looking statements'), within the meaning of applicable Canadian securities legislation, including management's plans regarding its businesses. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as 'expect,' 'plan,' 'anticipate,' 'project,' 'target,' 'potential,' 'schedule,' 'forecast,' 'budget,' 'estimate,' 'intend' or 'believe' and similar expressions or their negative connotations, or that events or conditions 'will,' 'would,' 'may,' 'could,' 'should' or 'might' occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. Article content Article content Article content Article content Article content Article content
