Hank Payments Corp. announced it has entered into an Enterprise SaaS licensing agreement with a large, U.S. based, consumer payment management company (the "Customer"). Under Hank's fee licensing agreement, the Customer will utilize the Hank Payments Platform and industry leading, proprietary software to manage the consumer enrollment and consumer servicing components. In addition to this major win for its Enterprise licensing software, Hank has identified dozens of other accessible enterprise targets in this vertical, with this licensing agreement being the first to launch. Initial term of five years to be extended as users stay on the Hank Payments Platform; Customer will utilize Hank's Payment Platform to manage its entire existing customer base and pay the monthly recurring fees for all active users on the customer platform, providing reliable, steady fee income stream to Hank. Customer's existing portfolio consists of over 20,000 active users and Customer currently adds between 400 and 1,000 net new active users each month, which is expected to increase based on access to the Hank platform. If Users leave the Customer platform but wish to remain on Hank, those users will be offered a Hank direct-to-consumer subscription pricing model for service continuation. Annualized Recurring Revenue ("ARR") per user and gross margins under the Enterprise SaaS licensing agreement are expected to exceed current Hank per user ARR and remain in line with its
industry leading gross margins. Hank and its new Customer have already commenced working together on API (Application Programming Interface) customization and workflow/operational integration. The planned launch date is expected to occur as soon as this integration is completed, currently anticipated to be late summer/early fall, 2022.