THE OLB GROUP, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026

Summary and Analysis of Key Points

Overview

• The OLB Group, Inc. is a FinTech company that provides a suite of products and services in the merchant services marketplace, including financial and transaction processing services, support for crowdfunding and capital-raising initiatives, and hardware solutions.
• The company operates through three wholly-owned subsidiaries: eVance, Inc., OmniSoft.io, Inc., and CrowdPay.Us, Inc., with the majority of revenue coming from the eVance business.
• The company has also formed two additional subsidiaries: OLBit, Inc. to hold assets and operate the company’s money transmission and transactional business, and DMINT, Inc. to operate in the Bitcoin mining industry.
• In 2022, the company acquired Crowd Ignition, Inc., a web-based crowdfunding software system, and in 2023, the company acquired 80.01% of the membership interests of Moola Cloud, LLC, a company that provides a debit and calling card platform for the underbanked community.

Financial Performance

• For the three months ended March 31, 2026, the company had total revenue of $1,656,344, a decrease of 28.7% compared to the same period in 2025.
• The decrease in revenue was primarily due to a decline in revenue from the Moola Cloud, LLC business as the company transitions to new vendors, as well as a decrease in revenue from the Cryptocurrency Mining segment due to the decline in the value of Bitcoin.
• Processing and servicing costs decreased by 18.1% to $1,481,251, in line with the decrease in revenue.
• Amortization expense decreased to $0 from $3,972 in the prior period, as most of the company’s assets were fully amortized.
• Depreciation expense for the Bitcoin Mining segment decreased by 98.7% to $3,410, due to assets being impaired and/or fully depreciated in prior periods.
• Salary and wage expense increased by 26% to $669,437, primarily due to the company granting shares of common stock to the CEO.
• Professional fees increased by 83.6% to $142,405, mainly due to an increase in legal fees.
• General and administrative expenses increased by 28.5% to $629,729, primarily due to increases in utility and insurance expenses.
• The company recognized total other income of $192,306, which included a $81,406 gain on the settlement of accounts payable and a $111,000 gain on the settlement of debt.
• The company’s net loss for the three months ended March 31, 2026, was $1,077,582, a decrease of $11,416 compared to the same period in 2025.

Liquidity and Capital Resources

• As of March 31, 2026, the company had cash of $2,327,723 and negative working capital of $3,142,060.
• The company has entered into several financing agreements to improve its liquidity, including an at-the-market equity program with Maxim Group LLC, a $5 million revolving loan from Yakov Holdings, LLC, and two private placements of common stock and warrants in 2026 that generated net proceeds of approximately $3.7 million.
• The company has also issued shares of common stock to settle various accounts payable and prepaid legal services, resulting in gains on the extinguishment of debt.

Outlook and Analysis

• The company’s financial performance has been impacted by a decline in revenue from its Moola Cloud, LLC and Cryptocurrency Mining businesses, which has led to a decrease in overall revenue and profitability.
• The company’s efforts to transition to new vendors and acquire new customers for the Moola Cloud, LLC business, as well as the ongoing challenges in the Cryptocurrency Mining segment, will be key factors in determining the company’s future financial performance.
• The company’s recent financing activities, including the at-the-market equity program and the revolving loan from Yakov Holdings, LLC, have helped to improve its liquidity position, but the company’s long-term financial stability will depend on its ability to grow its core merchant services and crowdfunding businesses.
• Overall, the company’s financial results for the three months ended March 31, 2026, reflect the challenges it has faced in its various business segments, but the company’s recent financing activities and strategic initiatives may help to position it for future growth and profitability.