What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-08-12 compared with 2022-05-16 · 142 added, 79 removed, 124 unchanged (64% of the section changed)

68 unchanged sentences

of concept before DMINT expands the number of computers in operation.

As of March 31, 2022, DMint has purchased 1,000 computers, of which

As of June 30, 2022, DMint has purchased 1,000 computers, of which

650 computers have been delivered with 250 online and mining for Bitcoin, 400 computers are in process of being installed and 350 additional

9 unchanged sentences

January 3, 2022, the Company entered into a share exchange agreement with all of the shareholders of Crowd Ignition, Inc.

Ignition”) whereby the Company purchased 100% of the equity of Crowd Ignition in exchange for 1,318,408 shares of the common stock,

par value $0.0001 of the Company (the “CI Issued Shares”).

The value of the CI Issued Shares was, for purposes of the Agreement,

based on the closing trading price of the Company on October 1, 2021 (the date on which a third-party fairness opinion was issued), resulting

in an aggregate purchase price for Crowd Ignition of $5.3 million.

The shares were recorded at the nominal book value of the net assets

Ignition”) whereby the Company purchased 100% of the equity of Crowd Ignition).

Ignition is a web-based crowdfunding software system.

11 unchanged sentences

results from operations of The OLB Group, Inc.

and its subsidiaries for the three ended March 31, 2022 and 2021.

Months Ended March 31, 2022 Compared to the Three Months Ended March 31, 2021

For the three months ended March 31, 2022, we had total revenue of

$8,786,459 compared to $2,226,404 of revenue for the three months ended March 31, 2022, an increase of $6,560,055 or 294.6%.

$8,413,429 in transaction and processing fees, $17,168 in merchant equipment rental and sales, $91,522 in other revenue from monthly recurring

subscriptions and $264,340 of other revenue from the Cryptocurrency Mining segment during the three months ended March 31, 2022,

compared to $2,090,264 in transaction and processing fees, $18,507 in merchant equipment sales and $117,633 in other revenue during the

three months March 31, 2021.

The increase in revenue was a result of an increase in the amount of fees earned from merchant processing

transactions primarily due to the revenue attributed to the merchant portfolio acquired in the fourth quarter ended December 31, 2021

and to revenue from cryptocurrency mining, which we did not have in the prior period.

Processing and servicing costs increased by $4,710,863

Amortization and depreciation expense for the three months ended March

31, 2022 was $998,590 compared to $215,904 for the three months ended March 31, 2021, an increase of $782,686 or 362.5%.

We record amortization

expense on our merchant portfolio, trademarks and natural gas purchase rights.

Our amortization expense for the three months ended March

31, 2022, increased in the current year period due to the agreement with Cai Energy to purchase natural gas to operate the cryptocurrency

mining computers used in the Cryptocurrency Mining segment.

Depreciation expense for our cryptocurrency mining segment was $891,756 in

the current period due to the acquisition of Cryptocurrency Mining equipment.

and wage expense for the three months ended March 31, 2022 was $533,859 compared to $820,091 for the three months ended March 31, 2021

an decrease of $286,232 or 34.9%.

Professional fees for the three months ended March 31, 2022 were $324,407

compared to $226,944 for the three months ended March 31, 2021, an increase of $97,463 or 42.9%.

Professional fees consist mainly of audit

and legal fees.

The increase in the current period is mainly due to an increase in legal expense.

and administrative expenses (“G&A”) for the three months ended March 31, 2022 was $1,235,317 compared to $399,325 for

the three months ended March 31, 2021, an increase of $835,992 or 209.3%.

Some of our larger G&A expenses included travel of $108,000,

marketing and promotion of $125,000, contracted services of $259,000 and computer and internet expense of $145,000.

the three months ended March 31, 2022, we incurred $0 of interest expense, compared to $116,736 for the three months ended March 31,

and its subsidiaries for the three and six months ended June 30, 2022 and 2021.

Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021

the three months ended June 30, 2022, we had total revenue of $8,372,435 compared to $2,833,572 of revenue for the three months ended

June 30, 2022, an increase of $5,538,863 or 195.5%.

We earned $7,813,969 in transaction and processing fees, $18,174 in merchant equipment

rental and sales, $332,326 in other revenue from monthly recurring subscriptions and $207,966 of other revenue from the Cryptocurrency

Mining segment during the three months ended June 30, 2022, compared to $2,666,049 in transaction and processing fees, $46,896 in merchant

equipment sales and $120,627 in other revenue during the three months June 30, 2021.

The increase in revenue was a result of an increase

in the amount of fees earned from merchant processing transactions primarily due to the revenue attributed to the merchant portfolio

acquired in the fourth quarter ended December 31, 2021 and to revenue from cryptocurrency mining, which we did not have in the prior

Processing and servicing costs increased by $4,573,396 or 217.9%

Amortization and depreciation

expense for the three months ended June 30, 2022 was $903,353 compared to $215,903 for the three months ended June 30, 2021, an increase

of $687,450 or 318.4%.

We record amortization expense on our merchant portfolio, trademarks and natural gas purchase rights.

Our amortization

expense for the three months ended June 30, 2022, increased in the current year period due to the agreement with Cai Energy to purchase

natural gas to operate the cryptocurrency mining computers used in the Cryptocurrency Mining segment.

Depreciation expense for our cryptocurrency

mining segment was $702,494 in the current period due to the acquisition of Cryptocurrency Mining equipment.

and wage expense for the three months ended June 30, 2022, was $622,914 compared to $336,703 for the three months ended June 30, 2021

an increase of $286,211 or 85%.

Salary and wage expense has increased due to the hiring of new employees during the latter part of 2021

and to an increase in salary for our officers.

fees for the three months ended June 30, 2022, were $292,747 compared to $383,383 for the three months ended June 30, 2021, a decrease

of $90,636 or 23.6%.

Professional fees consist mainly of audit and legal fees.

The decrease in the current period is mainly due to a

decrease in legal expense.

and administrative expenses (“G&A”) for the three months ended June 30, 2022, was $1,007,908 compared to $464,985 for

the three months ended June 30, 2021, an increase of $542,923 or 116.8%.

Some of our larger G&A expenses included insurance policy

expense of $130,000 as a result of the cost to insure the cryptocurrency mining machines and the increase in the size of the Company’s

business, travel of $71,000 from $11,000 in the same period of 2021, marketing and promotion of $58,000 from $7,400 in the same period

of 2021, contracted services of $180,000 from $61,000 in the same period of 2021, utilities of $133,00 from $0 in the same period of

2021 and computer and internet expense of $131,000 from $68,000 in the same period of 2021.

For the three months ended

June 30, 2022, we had other income of $393,168 compared to $11 for the three months ended June 30, 2021.

In the current period we recognized

a gain of $393,158 from the elimination of a liability associated with a prior adverse judgement which was reversed on appeal.

Our net loss for the three months ended June 30,

2022 was $1,437,954 compared to $666,136 for the three months ended June 30, 2021.

We had an increase in our net loss of $577,374 for

the reasons discussed above.

Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021

the six months ended June 30, 2022, we had total revenue of $17,158,894 compared to $5,059,976 of revenue for the six months ended June

30, 2022, an increase of $12,098,918 or 239.1%.

We earned $16,227,398 in transaction and processing fees, $35,342 in merchant equipment

rental and sales, $423,848 in other revenue from monthly recurring subscriptions and $472,306 of other revenue from the Cryptocurrency

Mining segment during the six months ended June 30, 2022, compared to $4,756,313 in transaction and processing fees, $65,403 in merchant

equipment sales and $238,260 in other revenue during the six months June 30, 2021.

The increase in revenue was a result of an increase

in the amount of fees earned from merchant processing transactions primarily due to the revenue attributed to the merchant portfolio

acquired in the fourth quarter ended December 31, 2021 and to revenue from cryptocurrency mining, which we did not have in the prior

Processing and servicing costs increased by $9,284,259 or 254.6%

Amortization and depreciation

expense for the six months ended June 30, 2022, was $1,901,943 compared to $431,807 for the six months ended June 30, 2021, an increase

of $1,470,136 or 340.5%.

We record amortization expense on our merchant portfolio, trademarks and natural gas purchase rights.

Our amortization

expense for the six months ended June 30, 2022, increased in the current year period due to the agreement with Cai Energy to purchase

natural gas to operate the cryptocurrency mining computers used in the Cryptocurrency Mining segment.

Depreciation expense for our cryptocurrency

mining segment was $1,594,250 in the current period due to the acquisition of Cryptocurrency Mining equipment.

and wage expense for the six months ended June 30, 2022 was $1,156,773 compared to $1,156,794 for the six months ended June 30, 2021

a decrease of only $21.

There were $275,000 in salary increases in 2022.

However, bonuses of $400,000 paid in the first quarter of 2021

which were one-time payments resulted in a year-over-year decrease in the total salary and wage expense for the six months period.

fees for the six months ended June 30, 2022 were $619,154 compared to $610,3217 for the six months ended June 30, 2021, an increase of

$8,827 or 1.4%.

Professional fees consist mainly of audit and legal fees.

The increase in the current period is mainly due to an increase

in legal expense during the second three months of 2022.

and administrative expenses (“G&A”) for the six months ended June 30, 2022 was $2,243,225 compared to $864,310 for the

six months ended June 30, 2021, an increase of $1,378,915 or 159.5%.

Some of our larger G&A expenses included insurance policy expense

of $166,000 as a result of the cost to insure the cryptocurrency mining machines and the increase in the size of the Company’s

business, travel of $179,000 from $14,000 in the same period of 2021, marketing and promotion of $183,000 from $7,400 in the same period

of 2021, contracted services of $439,000 from $126,000 in the same period of 2021, utilities of $231,00 from $0 in the same period of

2021and computer and internet expense of $277,000 from $161,000 in the same period of 2021.

the six months ended June 30, 2022, we incurred $0 of interest expense, compared to $116,736 for the six months ended June 30, 2021,

a decrease of $116,736.

The decrease in interest expense is due the conversion of all related party debt and the repayment of the

Term Loan in March 2021.

Our net loss for the three months ended March 31, 2022 was $1,455,596

compared to $1,099,857 for the three months ended March 31, 2021.

We had an increase in our net loss of $355,739 for the reasons discussed

The decrease in interest expense is due the conversion of all related party debt and the repayment of the Term

Loan in March 2021.

For the six months ended June

30, 2022, we had other income of $393,179 compared to $24 for the six months ended June 30, 2021.

In the current period we recognized

a gain of $393,158 from the reversal of a liability associated with a prior adverse judgement on appeal.

Our net loss for the six months ended June 30,

2022 was $2,893,550 compared to $1,765,993 for the six months ended June 30, 2021.

We had an increase in our net loss of $933,113 for

the reasons discussed above.

and Capital Resources

and Uncertainties

Company’s financial condition and results of operations for the next fiscal year 2022 may be adversely affected

by a further prolonging of the COVID-19 pandemic.

Company’s financial condition and results of operations may be adversely affected by a further prolonging of the COVID-19

New York and Atlanta areas, including the location of the Company’s corporate headquarters and its operations business, continued

to experience impacts of the COVID-19 pandemic in the U.S.

The Company is currently following the recommendations of local health authorities

to minimize exposure risk for its employees and visitors.

However, the scale and duration of this pandemic remains unknown.

was another increase in cases requiring quarantines or closures of businesses, the duration of the business disruption and related financial

impact cannot be reasonably estimated at this time.

While the Company is currently implementing specific business continuity plans to

reduce the potential impact of COVID-19 during 2022 and believe that its business being principally operated using digital platforms,

in the long-term, will suffer minimal ongoing negative impact, there is no guarantee that the Company’s continuity plan will be

successful, that the Company’s merchants will meet the number of forecasted transactions due to a change in consumer activity around

point of sale purchasing resulting from the temporary closure of businesses in the future.

2021 and the first three months of 2022, as a result of the continued transmission of COVID-19 cases requiring quarantines and convalescence

of so many people, the Company experienced some disruptions to its business and disruptions for the Company’s customers and merchants

that had an impact on the number of transactions processed by the Company.

The extent to which COVID-19 or any other health epidemic

may impact the Company’s results for 2022 and beyond will depend on future developments and impacts of variants of the virus, which

are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the continuing economic

impact of the response to the COVID-19 pandemic.

Accordingly, COVID-19 could still have a material adverse effect on the Company’s

business, results of operations, financial condition and prospects during 2022 and beyond.

as some workers were forced to quarantine or convalesce as a result of the

spread of the COVID-19 virus.

The Company is currently following the recommendations of local health authorities to minimize exposure

risk for its employees and visitors.

During the first six months of 2022, the Company did not attribute any material impact on its business

as a result of the pandemic.

However, the duration of this pandemic continues to remain unknown.

If there was another increase in cases

requiring quarantines or closures of businesses by our merchants, the duration of the business disruption and related financial impact

cannot be reasonably estimated at this time.

While the Company has specific business continuity plans to reduce the potential impact

of COVID-19 during 2022 and believe that its business being principally operated using digital platforms, in the long-term, will suffer

minimal ongoing negative impact, there is no guarantee that the Company’s continuity plans will be successful or that the Company’s

merchants will meet the number of forecasted transactions.

2021 and the first six months of 2022, the Company experienced some disruptions to its business and disruptions for the Company’s

customers and merchants that had an impact on the number of transactions processed by the Company.

The extent to which COVID-19 or any

other health epidemic may impact the Company’s results for 2022 and beyond will depend on future developments and impacts of variants

of the virus, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity

of the continuing economic impact of the response to the COVID-19 pandemic.

Accordingly, COVID-19 could still have a material adverse

effect on the Company’s business, results of operations, financial condition and prospects during the second half of 2022 and beyond.

in Cash Flows

For the three months ended

March 31, 2022, $594,697 of cash was used by operating activities, which included our net loss, offset by $1,895,530 for amortization

and depreciation expense, $70,833 for stock-based compensation $32,430 of operating lease expense and net changes in operating assets

and liabilities of $1,137,894.

the three months ended March 31, 2022, we received net cash of $762,162 in financing activities from a loan payable.

and Capital Resources

At March 31, 2022, the Company had cash of $3,637,804 and working capital

For the six months ended June

30, 2022, $556,820 of cash was used by operating activities, which included our net loss, offset by $3,334,499 for amortization and depreciation

expense, $142,526 for stock-based compensation $65,674 of operating lease expense and net changes in operating assets and liabilities

of $1,205,969.

The Company has approximately $4.3 million of outstanding liabilities.

March 2, 2021, the Company utilizing a portion of funds received upon the exercise of outstanding warrants, paid approximately $7.7 million

to the pay off the entire outstanding amount of the Term Loan.

In connection with the extinguishment of the obligations under the Term

Loan, 40,000 warrants to purchase Common Stock were cancelled.

the six months ended June 30, 2022, we received net cash of $706,455 in financing activities from a loan payable.

and Capital Resources

June 30, 2022, the Company had cash of $3,619,974 and working capital of $2,807,441.

The Company has approximately $3.8 million of outstanding

On March 2, 2021, the Company,

utilizing a portion of funds received from the exercise of outstanding warrants, paid approximately $7.7 million to the pay off the entire

outstanding amount of the Term Loan.

In connection with the extinguishment of the obligations under the Term Loan, 40,000 warrants to

purchase Common Stock were cancelled.

addition, the Company has received a Paycheck Protection Program loan under the CARES Act for approximately $236,000 (the “PPP

15 unchanged sentences

As a result of (a) the improved transaction volume trends the Company experienced during

2021 and the first three months ended March 31, 2022, (b) the increase in the number of merchants after the acquisitions of several portfolios

2021 and the first six months ended June 30, 2022, (b) the increase in the number of merchants after the acquisitions of several portfolios

during 2021, and (c) the funds received from the capital raises and PPP Loan, as discussed above, the Company believes it has sufficient

2 unchanged sentences

to our Form 10-K for the year ended December 31, 2021, for a full discussion of our critical accounting policies.

July 12, 2022, the Board of the Company authorized a share repurchase program, pursuant to which the Company may repurchase up to 1 million

shares of its outstanding shares of common stock.

The Board authorized the Company to purchase its common stock from time to time on

a discretionary basis through open market purchases, privately negotiated transactions or other means, including trading plans intended

to qualify under Rule 10b5-1 of the Exchange Act, in accordance with applicable federal securities laws and other applicable legal requirements.

The Company expects to fund these repurchases through existing cash balances.

Decisions regarding the amount and the timing of purchases

under the program will be influenced by the Company’s cash on hand, cash flows from operations, general market conditions and other

The Company is not obligated to acquire any particular amount of its common stock.

This program has no set termination date

and may be suspended or discontinued by the Board at any time.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis