OLB

Hello, everyone, and thank you for taking the time to listen to our earnings call. We are discussing the 2023 result of OLB. Please post questions if you have any on the -- either on the chat or in investors.olb.com. Thank you. Now I'm going to bring the safe harbor [Audio Gap] Patrick Smith is our VP of Finance, and he's going to discuss the revenues.

Thanks, Ronny. Yes, let's go and right now I'm going to discuss the results for the 2023 fiscal year. For this year, revenues were $30 million -- $30.6 million as compared to $30.4 million for 2022. So there was a little bit of growth there. It was close to flat, but there was a 0.7 increase in revenue. Operating expense did increase. It increased to $54 million versus $39 million for the year. That number actually includes a $13 million -- $12.9 million, $13 million impairment. The net loss for the year is $23.3 million versus $8.2 million compared to 2022. The net loss per share is $0.65 -- $0.65 versus $0.56 for last year. But again, the revenue was basically flat year-over-year. There was a 0.7 increase. So it's not too far off from the previous year. On some of the expenses, let me just kind of walk through those. Legal expenses increased by $1.3 million this year. Those expenses are mainly related to the case we have going on with FFS and Clear Fork Bank. SG&A increased mainly due to the bank fees related to the FFS portfolio when we took everything over last year, there was more bank fees that were incurred. Salaries did increase this year. The main reason of that increase is we actually did bring on more employees whenever we purchase the Black011, the company we acquired in June of 2023. So -- and then just to also kind of break down some more of the expenses. Amortization expense was 18% of the loss. Depreciation expense was 11% of the loss. The legal fees were 6% of the loss and the impairment that we had to write off was close to 60% of the loss. So if you put all that together, you can see where we were hit by most of the expenses. Only impairment, let me just kind of explain, in the first quarter of 2024, the FFS portfolio that we acquired in the fourth quarter of 2021 was shut down, and we had to turn it off. So there was no more revenue being produced by the portfolio. So we had to impair it. Since that happened, and we knew about it, we had to write it off in the 2023 year. That's where the $12.9 million and $13 million write off you'll see on the books. That has to do with the litigation we're in, too, which we'll discuss later. Ronny?

Yes. Also some positive note, we increased our baseball teams with a [indiscernible] technology that we have in place, and we increased another 3 teams in place. It's not only baseball, but it's baseball and entertainment. We started building our sales team in-house about the bodega distributions. Today, we do around 1,800 distribution out of the 32,000. And the company still has 0 debt, and we still have $19 million in assets. The spin-off DMINT is still active. We just finished the year-end financials for DMINT as a stand-alone company, and we [indiscernible] plan to file it as early as this week. We anticipate to have before or by the second quarter pretty much a dividend distribution with calling on a record date on those things. So Patrick, do you want to talk about the discovery of FFS?

Yes. Basically, some of the legal issues that we have right now. The -- we do -- we're still in an ongoing case with FFS for the breach of contract case. In that, right now, we're still -- we're finishing up the discovery, and we're doing deposition. So that should be finished up within the next week or so. The trial is expected to probably -- we're expecting to be in trial by the end of 2024 or the spring of 2025. Another thing we've also done, we've actually filed a counterclaim against Clear Fork Bank, so that's also in process.

So I mean, during this discovery, we found out things that initially when we purchased the portfolio has not been disclosed. And that's pretty much because of all those things. It has been illegal activity as boarding merchants illegally, not in accordance with the Visa, MasterCard rules, and we pretty much terminated [indiscernible]. On both of them -- on Clear Fork Bank,is similar claims as far as compliance and activities. On the reverse split, basically, we're doing the reverse split on April '26, we have a shareholder vote on that. And the reverse split itself, we need to do because to keep the NASDAQ requirements that is above total for that -- Patrick, you want to elaborate on any other things?

No. I think we can go to Q&A in just a second. But I mean, I think one of the things we need to discuss, I mean, is management, it was -- we felt like we were actually in a good rate through the first 3 quarters of last year. We did the fourth quarter when things started kind of winding down with the FFS portfolio, I mean it was frustrating to us, too. So I mean, that's the thing we're not happy with where the year ended up. It's where we are. We're doing our best to actually get us out of where we're at. We think we can get the company stabilized in Q1 of this year. But again, it's -- we're just as frustrated as the shareholders since we actually are also shareholders.

Yes, we believe in the company. And so as we get clear to buy more shares, we are planning to buy more shares as insiders as of the company.

Maybe we want to go to the Q&A, Ronny?

Yes.

Okay. If anybody has any questions, you can type them into the chat. But I think we might have a couple. Ronny, do you want to read them or do you want me to?

Yes. So first question is you gave guidance around the mid spin-off third quarter or fourth quarter of last year. Yes. And that's when we started the process. Process is a lengthy process. We are already on the second round of comments from the SEC. At the same time, we completed the audit financials for '21, '22 and '23 to be filed in this case. We are running 300 mining grains, and we're planning to bring more before the second quarter if it allows and then obviously, when it spun off, we're going to give to the shareholders -- are going to basically -- going to get a dividend that is a pro rata. So on -- if you have certain percentage of shares at the company at OLB, you're going to get [indiscernible]. I mean I believe, realistically, that's going to happen around before the filings of the second quarter results. Does the company plan to raise more capital, whether the reverse split occurs? We are trying not to raise more capital until we split off everything, so at least we'll maintain the share value. We're planning to buy shares just to increase the value of the shares. Why as -- we -- yes, we have 700 rigs that have not been utilized. We plan to utilize them as soon as we complete the electrical work of the power. Correct. And I would encourage anyone that has questions at any time, you guys can go to investors.olb.com and will basically post the question there. So this way, everybody gets several answers to everyone.

So one of the questions we also have right here was the [indiscernible], why did the fourth quarter revenue declined so much versus Q4 of 2022? That's part of the actually the portfolio we're talking about we turned off in the first quarter. It was -- majority of it was turned off in the first quarter, I think in January of this year, but there was kind of a wind down. We had to turn off some large merchants. We had to kind of wind it down. So the fourth quarter was almost like the wind down of that portfolio. That's why you see the decrease.

Right. So on the Bodegas, we are pretty much doing pretty well, and we believe it's going to be organic increase in revenues. And that's going to be due to adding more locations to be active locations. We are adding more services. Part of the acquisition was the Black Wireless and Mango Mobile, those services, we are providing new service now that is the eSIM. So pretty much, you can download this eSIM from putting your credit card and downloading it. We are planning to add additional services by end of this year, like prepaid cards in locations that are kind of point of banking locations as well. I mean, I see the question that you have that -- you have a long time invested in how you proceed the future? We were very excited when we purchased the portfolio. It tends to be a total scam and bad actors. And we are recovering from that. We definitely are finding all the legal actions to recoup the investment that we did. So we are positive, extremely positive. We are positive about the spin off, and we are very positive about the bodega locations as well.

One of the things on that note, too, I'd like to say I do think there we're going to have -- or we are actually looking to have good growth on the payment side of the business, not just related to the unbanked sector, but I think we're also looking to grow just the normal, what I would call the normal payment piece. As Ronny mentioned, we're bringing on the baseball stadiums, which are also entertainment venues. So we're bringing those on. But we're also just in the process of getting more sale then through sales reps through their current ISO channel. So we actually have turned more toward that way to just bring in more organic sales. And we do feel that we're going to do a pretty good job with it this year.

On the ATM, we have an open ATM with not using the ATM because the price is so low. We don't want to devote anyone that is on the call here, including ourselves. So it's kind of an open ATM, so we can use it when we need it. At the moment, we're not using it. Who is running DMINT? We have employees that are allocated for the subsidiary and they're running it. They're experienced employees certified employees [indiscernible]. We're planning to go into conferences. Yes, absolutely. We've been engaged for the last few months, majority of the time dealing with this litigation that and pretty much putting a lot of effort still, as you can see, the legal expenses rise a lot because of that. And it's a process that will take [indiscernible]. Yes.

I think, too, the reason we haven't done any conferences in the first quarter is we had this normal 10-K. We're working on the spin off S-1 with DMINT. And we're just doing -- based almost like an audit on DMINT. So it's been a very busy quarter in the first quarter just to get everything done.

Okay. How is it possible that we do $30 million? And yes, I mean, we are definitely undervalued in a way we have independent valuation report that at some point, we're going to publish about DMINT and DMINT is valued as a stand-alone business, $29 million. So it's definitely absurd that one of the subsidiaries is value more than the company itself. How much is the counter claim with FFS? Well, I mean, we claim it for a full recession that we paid them $16 million. They're claiming $4 million, that the $4 million, that is the 2 last payments that we intentionally stopped because we found it was a breach of contract and fraudulent transactions being done. So that's the current claim. The same thing with the bank. We filed against the bank, and that's kind of things that we found over discovery and the positions that this bank was not capable even running. I mean, it looks like a micky mouse bank basically. Breakdown of mining costs. Patrick, do you want to address that?

The breakdown of mining costs?

Yes.

The breakdown the mining costs are basically -- I mean, it's like anything else, is the majority of -- or almost all the expenses related to the electricity cost you use to do the machines. And that's -- all the machines are paid for, so we really don't have any expense there. The building is paid for. We have an employee cost, but the breakdown of the mining cost, it's -- like anything else, I guess, if you're asking how much does it cost for us to actually [indiscernible] 1 Bitcoin. Now that the network hash rate is higher and everything it's -- our cost is probably close to $20,000 to $21,000 to [indiscernible] 1 Bitcoin while the price is around $65,000.

So how many Bodegas are selling the products and services? We have close to 1,800 locations. So with the operation post the issues that we have with the litigation, main focus would be in-house sales with the Bodegas. We have kind of a golden egg in our hands that we just have to execute on it. So we plan to execute not only the current services but add additional services that are in our core business that basically will be able to service them from the point-of-sale system and up to anything that is related to money transmissions. What do you expect it's going to happen after the reverse split? Well, we hope typically in reversed splits, price drops. I think we are at the bottom. So I hope nothing will drop beyond that. So the good thing about the Bitcoin, I mean, finally, the price of Bitcoin is decent and that would definitely spun off and increased spun off DMINT would get additional value to the shareholders.

Yes. I think the other question I said is Bitcoin is getting noticed again, how has [indiscernible] affected? I think right now, people still have a tough time separating the company. There's the financial technology piece we have, and then there's a Bitcoin piece, and I think people still get them kind of wrapped up and don't really know how sometimes [indiscernible] the company. I think DMINT will be highly -- a lot more valued once it's split off on its own, like the person asked, said, Bitcoin is being noticed again. At that point, DMINT will be noticed by itself. And I think at that point also where they're breaking apart, the [indiscernible] will be noted by -- noticed by itself, which will help the company -- both companies grow.

Right. So a question that is related to the record date announced by August. Yes, again, as everybody knows, we are at the mercy of Security and Exchange when they clear us. So far, we got pretty much all this is wrapped up that we're finding this week. And once that's done, basically, I think we're going to have maybe another round or 2 of comments that should be much lighter. We address majority the heavy lifting questions that we answer from them. So believe it or not, I'm looking forward also to this record date as well. And also, we are pretty much -- will give some heads up because also, at this point, we're going to release the S-1 to the public and not just keep it as a confidential filing. Again, if anyone has any questions, I'm happy to set up in the next few weeks another call and elaborate more things or communicate through the website that you guys have the ability of posting questions. On the near future, I'm excited about the spin-off and the potential of the Bodegas, that's the 2 things and we've been pretty much [indiscernible]. Well, if there's no more questions, thank you very much for taking the time. Again, we are extremely undervalued in the stock. And I would encourage everybody to give us a trust.

Yes, I appreciate everybody's time. Thanks, everybody, to come to the call today. And like I said, as management, we are as frustrated too how the 2023 turned out. We feel confident that we can get everything turned around this year. We're going to work hard to do it. And that's what we're in the process of doing. So again, thanks for your time.

Hello, everyone, and thank you for having us presenting the third quarter of 2023. I'm going to start with the forward-looking statements. [Audio Gap] those are average transaction sales and number of transactions that we do. And today, we have over 10,200 merchants in all 50 states. We have 2,500 merchants on our Payment gateway and 130 different industry types selling in all 50 states.

This is just kind of a quick overview of the OLB Group. OLB itself is a diversified fintech and e-commerce merchant service provider in bitcoin and crypto mining company. That's the 2 main segments of the revenue of the company. Of that, though, 1 thing I would like to stress is 97% to 98% of our revenue still comes from payment processing. So that's the majority of where the company makes us money. DMint is the subsidiary that's the bitcoin mining piece, it's a bitcoin mining subsidiary that we have. It is also the 1 that we're looking to spin off. Again, just to kind of clarify the numbers that you saw on the first slide, the 1.3 billion, that's the number of transactions that we do from payment processing. Our 10,000 merchants on an annual basis do roughly around 1.3 billion annually on processing volume. As a diversified base, we don't have any industry -- much industries or states concentration. We're overall [indiscernible] 130 different MCC codes. And like I said, we were pretty much all over the place. We don't have any certain industry that we're dominating in. This is a quick look at the numbers. At $0.65, which is roughly to where we were today. The market cap of the company is right at $9.89 million. Shares outstanding around 15.3 million. The public float on that is 67%, and the insider ownership is around 33%. Just to kind of go through the investment highlights real quick. Again, we're diversified revenue from FinTech and Bitcoin mining. The 2023 year-to-date revenue was $24.7 million. That is actually when compared to $23.4 million for the same time last year, which is a 5.4% increase. So we actually have increased year-over-year. Still with our current market price, the market valuation is less than $10 million, which is a price to sales ratio of around 0.3. As we say every quarter, we have no debts. We're increasing revenues from organic growth, within acquisitions, new partnerships. We're still working to get a thousand miners up and running in the Selmer location. So once that's up and running, we should have around $300,000 monthly from that. The fintech and Bitcoin mining is projected to combine a run rate of around $30 million to $35 million for this year for the 2023 year. The DMint spin off is going to happen, and there will be a dividend to the shareholders here before the end of the year of 2023. That's if we get everything done correctly with the SEC, which we have filed with the SEC, and we're working on the comments.

So that's our core business. And in the core business, you can see omnisoft that is our application services that we provide. It's our own applications that have been traded and maintained by us. SecurePay is our payment gateway. And on the payment gateway, we said that we have 3,500 customers there. CrowdPay is our CrowdFunding platform that we provide different broker [indiscernible]. And Evance is underwriting, [indiscernible] monitoring, customer support and the sales force for the [indiscernible]. Just to point on the spin off of DMint. Separating the 2 companies would bring value to both entities. DMint has been valued at $29 million as a separate independent valuation advisers, value of the company. And as we stated earlier, the beginning of '24, it's going to be traded. I mean, we filed pretty much all the applications with the Security and Exchange. We applied to NASDAQ and got a symbol already.

This is a quick overview of what we have in Selmer, Tennessee. This is the DMint facility. It's a 15,000 square foot building that we purchased and we own on 4.7 acres of land. Phase 1 right now, there's -- as roughly we're finishing out the top 5 megawatts of power, which can power 1,000 ASIC miners. Phase 2, we're adding an additional 15 megawatts of power that will give us another 4,000 machines. So it says Phase III, but basically Phase III would be the -- basically when everything is done, we would have 20 megawatts of power there, powering 5,000 ASIC miners.

So basically, we are on Phase 1 and still about the completion of the electrical work. We have all the components in place and very much the time consuming to put all the electrical work together.

Go ahead, Ronny, I'm sorry.

Our cost to produce a bitcoin would be around $9,500. And as everybody can see, lately, prices are going up.

The 1 thing I'd like to stress too, is this is actually a picture of inside the facility we have in Selmer, Tennessee. These are all machines. That's our building. So we have the machines there in place and ready to go. We do have a small number of [indiscernible] running right now, but all of them are ready to go once the power is completed. This is just a quick overview of the companies that will go into the next slide. I just want to just kind of show how it goes from the power source to the mining to the Bitcoin network. This is an overview of how the electricity works. And basically, it shows that our cost is around $0.0489 a megawatt hour, so which is very good, and we're locked into that for 5 years. This is for the DMint spin-off update. As we've stated before, we've completed the '21, '22 stand-alone audit. We've also done the 2023 Q1, Q2 and Q3. We filed the S-1 with the SEC, and we're addressing the SEC comments now. Once everything is done, the dividends -- with the share, the dividend to the shareholders. Once it's actually spun off and complete the shareholders will receive an appropriate share of DMint's compared to the OLB shares.

Well, the Black011 acquisition that we did in June. We are extremely excited about this acquisition. We are already implementing certain marketing initiatives. Since we are the owners of Black011.com and the owners of Black Wireless, we are turning to brand's strong initiatives to the underbanked community. We plan to issue prepaid cards to underbanked society beginning of next year. And adding additional offers to the card itself that would save cost to an individual that is subscribing for this card. The point of sale that's our core business, and we plan to implement those things. Like we said earlier, we believe that would increase the revenues with something that we have already. The actions and connections into those Bodegas. And these additional products that we're offering into the locations today. One of them is also the OMNY card. The OMNY card itself, we believe it's going to be a big sell and good entry into additional locations. OMNY card is pretty much universal, pretty much any transportation can be useful this card as well.

On this, let's just go over some of the numbers for the Q3 financials. You can see our revenue for Q3 was $9.69 million. The $9.69 million was compared to $6.22 million for the same -- same time period for 2022, which shows we had an increase in revenue of 55%. And 1 thing I'd like to talk about that, too, though, is the majority of that increase came from our transaction processing. In Q3 of this year, we did $8.3 million in processing. Last year at the same time we did $5.89 million. So that is a 39% increase in the processing area of the company, which is the transaction -- the payments processing. We had a net loss this quarter of $1.8 million. Again, the majority of the reason we had the net loss is due to all the depreciation and amortization we have on the books. That's why you've seen adjusted EBITDA of $60,000, which wasn't a lot, but we did have adjusted EBITDA of $6,000 and we have a positive cash flow. To recap the Q3 numbers, right now, we're on a run rate of around $31 million. That doesn't -- not including the Bitcoin mining. Total assets right now around $35.9 million. And again, we'd like to stress that we do not have any debt. The current valuation is about 0.3 on sales -- price to sales ratio. The DMint stock dividend here just some of the highlights. The DMint stock dividend, we filed the S-1 and we're in the process of working with the SEC on the comments to get that up listed. We're going to have a new innovation for revenue growth and expansion in the OLB footprint. It will be locations that was running something out with Bodegas. We are going to actually start really ramping up and having people on the street and actually start ramping up the -- those cells that goes in the next thing. When you are [indiscernible] about building in-house sales force and telemarketing. And we're adding insiders mining positions to the stock. We look forward to buying the stock ourselves running ourselves.

I mean I think with this, we will conclude the presentation. And we see a few questions online. Let me see. What is the plan to purchase or acquire miners, debt financing or equity raise? We did not decide yet. It really depends after we spin off the -- that's going to happen probably after we spin off the entire DMint operation as a standalone company. And it really depends on the market condition, if we'll do the best choice as all the shareholders if it's good to do some sort of debt financing or acquire or get something in place. How many Bodegas has the company onboarded since the acquisition? We have today, we're adding also 1,800 locations in this phase. And at this point, we are expanding it with the additional services that we have. Estimated cost of electricity for the bitcoin mining and this...

I can answer that one, Ronny. The reason we're showing a different price of $8,000 to $9,500 on what it costs to mine 1 Bitcoin has more miners run and to think of the Bitcoin network catch rate, which is the worldwide catch rate is that goes up, that increases our cost. So that's not something that we can control ourselves. That's just part of the Bitcoin network and how it works. Our electricity has stayed the same. So our electricity is not going to change. But we actually to show a conservative number of the Bitcoin revenue, we are adding in that Bitcoin network catch rate for our revenue.

Next question is, you guys have repeatedly mentioned building up sales force to sell to 10,000 Bodegas. We never mentioned to 10,000 Bodegas. We mentioned we're starting with the first 1,000, and we are already providing services and we are running that. If DMint is valued $29 million to $28 million alone. What do you expect is the fair value of OLB alone? I mean the OLB value itself, it should be anywhere between onetime revenues to 4x revenues. That is kind of the common things that was in the industry before that. So we expect once there is a separation, both the companies are going to get the fair value of that as a stand-alone company. Will the 1,000 miners still be by end of the year? We're trying and we're pushing for this, and we'll do our best to bring them as soon as possible. What is the plan to growth funding ventures? And we will be constantly approach. We're going to announce very soon for a growth funding company that is a startup. That has already revenues of $7 million that we're going to bring on board. We're trying to stay away from 0 start-ups with no revenues that are looking for growth funding. The reason to that is they don't get to the finish line and end up creating expenses for us. If there's any more questions, we're happy to answer.

What are [indiscernible] across and say our insiders restricted from buying? Right now, we are -- we're in our own blackout period, and it will end I think we've got certain amount of days after we release earnings. So right now, we're still locked up.

So definitely, we have intentions to buy [indiscernible] myself.

Correct.

We see if we have any more questions. How much time does the company have to get back into the compliance of NASDAQ? We just got a letter yesterday that they're allowing us another 6 months to being compliant in this case. What is your confidence that -- level of confidence that the DMint will be complete by end of January? At this point, I mean, everything is based on the comments that we're going to get from the SEC. And we are [indiscernible] and basically typically it is anywhere between 3 to 4 rounds of comments. We just got the first one. What is the cash on hand? Patrick, you want to answer that?

Cash on hand as of today is around $1.2 million.

We are expecting also increasing revenues by beginning of the year from Bodegas as well. Any updates on the baseball teams? Yes. I mean baseball teams, everything is up and running as the season itself. Yes, that definitely would be -- I mean, that is another [indiscernible] for us. I mean we saw that all the applications from scratch a couple of years ago, and now it's a successful product.

One thing here I'd add about that, Ronny, the baseball stadiums, they're not just really considered baseball stadiums, it's more of event venues. So they do more than just baseball, it's also concerts and things of that nature.

There's another question. Would you think that to do a buyback on [indiscernible] seems like include [indiscernible], given the valuation? I don't think it works like this that you can take that to buy shares. I don't think anyone will give us that. So we will buy shares with our own source of money. Will DMint share price be hurt if the spinoff happens before, 1,000 miners? I don't think it would have hurt. It would be better if the 1,000 miners are running because this valuation of $29 million, it's not just about 1,000 miners running. It's also about all the assets and the properties that we have. So it's a long run. It's not about machines running between now and beginning of next year. Is there any EBITDA guidance for 2024?

I don't -- EBITDA guidance. I just want to think is we don't want to give that right now because I don't know exactly when DMint is going to split off, which will affect the EBITDA. So we don't know exactly what time that is going to happen. So we don't -- at this time we're not giving guidance on that.

I would like to thank everyone for taking the time. And I will conclude. You'll be able to see this Powerpoint presentation online from tomorrow. And thank you, everyone, and a happy Thanksgiving.

Thanks. Have a great day. Thank you for your time.

Hello, everyone, and thank you for taking the time being with us on our earnings call, and I will pause for 15 to 20 seconds for everybody to read the forward-looking statements. Today, we do over $1.3 billion in cost transactions and we do around 28 new transactions with over 10,000 merchants. On our gateway, we have 300, 500 clients, and it's running over 130 industries in all 50 states. On this diversified FinTech and e-commerce company. And as I mentioned before, we have over 10,000 merchants in 50 states. We are also dealing that is our wholly owned subsidiary that has 1,000 miner today and in the process to get the mining before the year-end. We are diversified through and the [indiscernible] in all 50 states. With all those 10,000 merchants we have no concentration of client base. And we have no merchant representative even 1% of the revenues. So quickly, I'll kind of go this on the financial information. As of this morning, we were at $0.65 a share. We had a market cap of $9.9 million. Outstanding share a total of 15.3 million outstanding shares of that almost 2.4 million shares of the shares are actually a public float right at 5 million of the shares are insiders, so let me put the public float at 67% and insider ownership at 33%. We get some of the investment highlights. We have a diversified revenue from FinTech and Bitcoin mining. Currently, our revenue [indiscernible] million. We have a market valuation of less than $10 million, which is a sale price to sales ratio of around 0.3%. We do not have any debt. And our revenues are increasing, they're increasing from organic growth through acquisitions and some new partnerships that we have had. The mining revenues from the ASIC miners projected at 300,000 monthly based of a Bitcoin priced at $30,000. It's impacting Bitcoin mining projected combined rate is around $30 million to $35 million. That's once we have all 1000 miners up and running with spinoff just [indiscernible] shareholders before the end of 2023 is what we have expected.

Our core business is based on products and merchant services. We have the e-commerce platform that is from the website, the online and new store model, we have a secure gateway. This way is a major thing, a small company like us. We will certify with this [indiscernible]. CrowdPay is our crowdfunding platform. And eVance is our merchant service platform that we did the underwriting risk monitoring, customer support, sales force, merchant molding and residual payments.

Just quickly to kind of go over, this is the DMint facility, which is in Selmer, Tennessee. We purchased this last year. We purchased a 15,000 square foot building on 4.7 acres. The majority of the energy comes from clean energy, which is part solar and part hydro. We continue adding [indiscernible] in different phases. Phase 1 is the 5 megawatts, which compounded 1,000 [ layers ]. Phase 2 is if we're looking to -- we're trying to finish up right now is the 15 megawatts additional to the 5, which put another 4,000 machines running, which will give us a total of 20 megawatts of [ backout ] machines running at this facility. One that I got the first -- the picture you see here, that is [indiscernible] that is the facility and that's the machine that it setup and [indiscernible] running. It was [indiscernible] 15,000 square foot building. The power is going to have a total of 20 megawatts to run 5,000 machines once everything is completed. Yes. And this is the basically the value proposition for OB shareholders. The [indiscernible] is going to be stopped. We're in the process of doing the [ S1 ] and everything, and it should be done. We're figuring about on labor days when we'll have that done.

It would be the first initial filing in the next one.

Correct. It is just kind of -- basically kind of showing what [indiscernible] does especially sure correctly imagine, next directly to the grid, Phase I for a 1,000 machines running, which we actually do own machines at [indiscernible] picture and Phase 2 of [indiscernible].

Well, the spinoff, we completed the year-end financials of '21, '22, Q1 and Q2 is about to be done. We are in [indiscernible] as Patrick mentioned twice after Labor Day. The shares will be dividend to the shareholders that so much we're going to announce the shareholder date with the record [indiscernible] that we're going to pretty much dividend to the shareholders. Shareholder overdue at [indiscernible]. [indiscernible] that we just completed almost a month ago. And we are very proud about because of having safety put on the book and selling our core business products that at the point of sale system, the [indiscernible] point of the e-commerce and the merchant sales and transactions. We have the platform also that's called the [indiscernible] and is providing mobile services to all those companies. We own 80% of this company and 20 [indiscernible] the own mobile company as well. That's very exciting because they're also in partnership with Income. Income is the largest company that provides [indiscernible] and they provide us well the new omni house for the trains and subways. You can see the body proposition that we have here is the point of sale system, local services with product over circa games, market transfer, [indiscernible] payments and reloadable cash to be prepaid [indiscernible] micro lending and cash in advance. All the gift cards and all those services that have been provided by Income, and we are to much the foot on the ground with the sales people. That is one to -- it's already started 2024, it's going to be the year pretty much that's going to be aggressively launched over the market.

Let's kind of recap, these are some of the quarter -- the second quarter of 2023 financials. We had revenue of $8.3 million, which is almost exactly -- I think we're down 0.3% compared to the previous quarter. We're down $28,000 compared to last year. The net income loss was $618,000 that's down from $1 million is still the majority of the losses we appreciate amortizations from the books. We had an adjusted EBITDA of $1.2 million, and that's compared to $98,000 for the same quarter last year. Currently, we are on a run rate revenue of around $33 million. This does not include the extra machines for the [indiscernible] once they're up and running. Currently, we have total assets around $37 million. And again, just be on the books for your debt.

The current market valuation is one table derivatives, price [indiscernible] is extremely low. We're going to give the stock as a dividend to all the shareholders. New initiatives in revenues, expansion of old footprint in physical location. That's based on the latest acquisition that we did. We are building in-house for now to the marketing. And the size of [indiscernible] our positions, we purchasing more stock. We're going to announce probably over the next few days, how much more we purchased, and we believe in the company. Thank you, everyone. Now we open to questions -- if anyone has questions, please.

I think there's one question. [indiscernible] miners are running down.

We have around 250 miners running out. [indiscernible] 753 miners going to be online. As soon as the power is completed and certified by the local electrical authority will be up and running. We anticipate to get it done around the -- before the year end. But again, I mean, at least 2 years of the house [indiscernible]. [indiscernible] finance for 4,000 miners. And we're going to do either debt financing or we got to do existing financial. It depends on the price and many variables in this case. It's way more economic to purchase the miners than the [indiscernible] for other companies. Well, what happened with the mining in the last 24 months, a price of -- and we saw expected in this case, we found a great opportunity in the Tennessee area. So we purchased the building. We have fixed price agreements with the local authority for 5 years and the prices are much better.

Any other questions?

Well, if nobody has any other questions, thank you very much for your time. We're always happy to answer anyone that has a question or you can put it on chat or email [indiscernible] or [email protected].

Thanks, everybody, for your time today.

Thank you.