WASHINGTON, DC, April 27, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE ‒ Xalles Holdings Inc. (OTC: XALL), a fintech holding company providing technology and financial services solutions, today announces its first quarter results and outlook for the remainder of fiscal 2020. Xalles deemed the first quarter a success given its accomplishments, but more importantly, sets up the company to grow faster for the remaining quarters of 2020.
Xalles Holdings released its first quarter (ending March 31, 2020) Quarterly Report and Financial Statements last week on April 22, 2020. The highlights of that report include:
- $243,929 in Q1 revenue, which is the highest quarterly revenue
- $107,968 in Q1 net income
- Large increase in assets and liabilities which is primarily due to the acquisition of MinervaWorks Holdings, Inc. becoming a wholly owned subsidiary
- Completed the closing of the Gateway Innovations Limited acquisition on February 14, 2020
- Completed the closing of the MinervaWorks Holdings, Inc. acquisition on March 31, 2020
- Filed a Form 1-A (Reg A Tier I public offering) to the SEC on March 24, 2020 for the ability to sell shares in a price range of $0.005 to $1.00 per share
- Currently there are 538,438,109 XALL common shares issued of which 221,400,000 are free trading, and no remaining 3(a)10 settled shares have been held in reserve since January 30, 2020
Blockchain and Tokenization
Xalles continues to develop the X2X blockchain-based platform for financial transaction reconciliation and is also exploring the tokenization of assets. Xalles has the opportunity to partner with companies providing Security Token Offering (STO) services for international expansion and is performing its due diligence.
Next month, Xalles will be conducting an extensive analysis with a Top 100 Cryptocurrency company that provides turnkey tokenization services including Token Issuance (STO), Exchange and Liquidity, Integration and Custodian Services. Tokenization is the process of representing the securitization of real-world using digital tokens on a blockchain. The ultimate vision for the company is to create an Xalles or X2X related Token that can be traded on multiple global exchanges and support eCommerce platforms, eProcurement platforms, and rewards platforms.
Xalles will continue to look for accretive and creative acquisitions of technology and financial services businesses. These will include companies with products and services designed to support the new economic conditions during periods of limited mobility and recovery. Xalles currently has a pipeline of 15 acquisition candidates and is in negotiations with 6 of those companies now. The businesses in which we are in negotiations with include eCommerce platforms, eProcurement, sales organizations, payment platforms, and cyber security companies. Xalles expects to announce 2 or 3 acquisitions during the second quarter of this year.
Business Development Expansion
MinervaWorks alone is expected to generate approximately $3 million in revenue in 2020 and significantly more in future years through expanded deployment of The Brick. The Brick is a unique piece of hardware loaded with proprietary software and supported by a national service center that can tap into a client’s network and probe everything about the organization’s IT assets.
MinervaWorks high-profile clients include the Georgia Aquarium, Caesars Entertainment in Las Vegas, and the Centers for Disease Control and Prevention (CDC). These projects showcase the capabilities of the technology and represent a level of assurance that this is a robust technology that can ensure high performance and network continuity. Xalles has a strategy to assist in the growth of sales of The Brick by expanding its sales channels. These new sales organizations will be used to help market and sell other Xalles company offerings as they are developed. The stay at home orders have exposed some of the vulnerabilities of stretching corporate networks beyond their originally intended uses. MinervaWorks’ product is uniquely suited to capitalize on this evolving “work at home” environment and has seen a considerable increase in interest in its products over the past couple of months.
The Xalles 2020 strategy continues to encompass geographic expansion, accretive acquisitions, and establishing platform companies. Xalles searches for opportunities with financial services or technology-based toll gates that can be established to create recurring revenues. The acquisition strategy also factors in the potential synergies with existing subsidiaries.
“The progress made during the first few months of this year, puts us on a sound financial footing to achieve profitability, and reach our 2020 financial goal of $4 million in revenue,” stated Thomas Nash, Xalles Holdings CEO. “We will achieve these results while ensuring the health and safety of all employees, contractors, and consultants, during this time of unprecedented business conditions. MinervaWorks is one of our largest acquisitions to date, and we will continue to demonstrate to shareholders our ability to find, vet, negotiate, and acquire other business assets that complement our technology and financial services centric business focus. We see great opportunity in this business climate and are fortunate to have a pipeline of existing acquisition candidates. As we successfully absorb acquisitions our ability to finance future growth should become easier. We are working through the process for our Reg A Tier I form 1-A to become qualified, but plan on using the capital markets sparingly as we balance between sales growth and potential dilution. The company is optimistic that it will be able to secure more traditional means of financing its growth and is committed to maximizing shareholder value and minimizing any potential dilution.”
About Xalles Holdings Inc. (OTC: XALL)
Xalles Holdings Inc. is a holding company that focuses on acquisition and support of disruptive fintech companies. The company actively seeks targets in which it can partner with or acquire to accelerate growth, targeting companies with solid management teams and business models, large total attainable markets (TAM), and lucrative exit opportunities. The company places emphasis on leveraging blockchain technologies to provide industry-leading financial reconciliation and auditing solutions, which, over time, will allow for the capture of recurring revenue streams. For more information visit: http://Xalles.com
Forward-Looking Statements Disclaimer:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainty and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of all filings of the Company that are contained in the Edgar Archives of the Securities and Exchange Commission at www.sec.gov and in OTC Markets at www.otcmarkets.com
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