By Chief Revenue Officer

Hi all, let me introduce myself, my name is Christopher Cherry and I am the Chief Financial Officer (CFO) for NetCents.  I have been with NetCents since September of 2018.

To provide a brief history of myself, I worked with KPMG from 2000 till 2004 and obtained my Certified General Accountant designation and then from 2004 until 2007, I worked at Davidson & Company LLP, specializing in IPO audits.  Since 2007, I have worked with in excess of 30 public companies in various roles and I obtained my Chartered Accountant designation in 2009.

This is the first blog post I have written for NetCents, I will be providing a blog post each quarter to discuss our financial results as they are posted.  This blog post is to discuss our financial results for the period ended April 30, 2019.

For the six-month period ended April 30, 2019 (Current Period), NetCents recorded an overall loss of almost $3.3 million compared to a loss of just over $9 million for the six-month period ended April 30, 2018 (Comparative Period).  When you remove non-operating items, which are unusual or one-time charges, the loss decreased to a loss of $3 million for the current period compared to almost $7 million in the comparative period.

During the current period, the Company has recorded Merchant Processing Revenue of $23,500 compared to $nil in the comparative period.  This is due to the fact that the revenue earned in the comparative period was from credit card processing, not cryptocurrency merchant processing.

In 2018, the Company focused its business development efforts on building the foundation needed to be fully integrated into the traditional payments system through its Partnership Programs. In the beginning of 2019, the Company shifted its business development focus to include direct merchant signups.

With the shift in business development strategy along with integrating and activating its Partners, the Company is experiencing overall growth in the number of transaction and dollars processed on a month to month basis and we look forward to completing the next quarter for the period ending July 31, 2019, which will begin to reflect the growth that the Company has experienced that is not reflected in Q2.

In both the current period and the comparative period, the largest expense the Company recognized that lead to the loss with the value of share-based payments.  In the Current Period, share-based payments were almost $1 million while in the Comparative Period, share-based payments totaled $5 million.  Share-based payments include the value attributable to stock options, which are calculated using the Black-Scholes Option Pricing Model, or the fair value of shares issued for services, which are recorded at the closing price on the date the shares are issued.

The next largest item recorded on the income statement was Salaries and Wages along with consulting fees.  In the Current Period, these expense items amounted to $923,000 while in the Comparative Period these were $814,000.  The increase in salaries and wages and consulting are a result of the increase in employees (we are now at 20) as a result of expanding and building out our exchange.  We have also increased the number of sales staff and they have been working diligently to sign up new merchants.

During the period ended April 30, 2019, the remaining operating expenses totaled $1.077 million compared to $1.186 million for the period ended April 30, 2018.  This is a result of management of the Company working hard to minimize costs while we expand our exchange.

If anyone has any comments or question on this post or on the financial statements that were previously filed on, please send me an email at


More articles

The Dark Side of Traditional Payments: Who’s Really Getting Your Money?

Sep 9, 2021

This Week in Crypto – September 3rd

Sep 3, 2021

NFTs: The Lifeline We Need Right Now

Aug 30, 2021

This Week in Crypto – August 27th

Aug 27, 2021