TORONTO–(BUSINESS WIRE)–Tokens.com Corp. (NEO Alternate Canada: COIN)(Frankfurt Inventory Alternate: 76M) (OTCQB US: SMURF) (“Tokens.com” or the “Firm”), a publicly-traded firm that invests in web3 belongings and builds companies linked to crypto staking, the metaverse, and play-to-earn gaming, is happy to report its monetary outcomes for the 9 months fiscal 12 months ended September 30, 2022 (“FY2022”). All greenback figures are in United States {dollars} (“USD”), except in any other case acknowledged.
2022 Operation Highlights:
- 12 months-end money stability of $5.8 million and digital belongings – cryptocurrency stability of $7.3 million, for a complete of $13.1 million, or CAD$18.0 million equal;
- Complete belongings of $20.0 million or CAD$27.5 million equal;
- Complete income for the nine-months ended September 30, 2022 of $678k, or CAD$929k;
- Begin-up subsidiaries, Metaverse Group and Hulk Labs, each turned income constructive in 2022 with income of CAD$130k and CAD7k, respectively;
- Metaverse Style Week, hosted on digital actual property owned by subsidiary Metaverse Group, attracted over 100,000 guests;
- Profitable launch of Hulk Labs, a brand new subsidiary centered on the play-to-earn crypto gaming sector;
- Acquisition of extra Metaverse actual property belongings together with the Music District in Decentraland and landmark parcels in SuperWorld;
- Efficiently hosted a metaverse music pageant within the firm’s Music District;
- Profitable tenant leases for digital land for manufacturers together with Endlessly 21 and The UPS Retailer;
- Completion of Tokens.com Tower, which serves because the digital headquarters for Tokens.com and its subsidiaries;
- Hosted the digital model of Miami Style Week in Decentraland’s Style District;
- Entered an unique partnership with the Democratic Republic of Congo to establish and practice a workforce of crypto gaming gamers;
- Built-in Fireblocks, a custody answer to enhance safety and report administration;
- Acquisition of Playte Group, an organization that builds instruments to energy the play-to-earn gaming economic system;
- Completion of strategic funding spherical at Hulk Labs;
- Full occupancy of its digital actual property portfolio in Decentraland’s downtown and style district;
- Integration of over 1,000 participant wallets into Hulk Labs’ participant community; and;
- Partnership with AIR MILES, Canada’s largest loyalty program.
“I’m pleased with our accomplishments in 2022, regardless of horrible market situations. We consider that our intrinsic worth isn’t mirrored in our share worth and that we stay positioned for additional constructive accomplishments in 2023. We thank our shareholders for his or her help throughout a troublesome 12 months. Administration is aligned with 25% possession and we’ll proceed to work on creating worth with a watch on the long run,” stated Andrew Kiguel, CEO.
“FY2022 is marked with non-cash losses that replicate the revaluation of the crypto belongings we personal. Nevertheless, these non-cash losses haven’t impacted the continuing development inside our metaverse and gaming enterprise segments. Regardless of damaging international macro occasions and the following affect on our share worth, administration at Tokens.com has been in a position to construct its companies at Metaverse Group and Hulk Labs. Each are income constructive and rising,” added Kiguel.
Market Commentary:
Capital markets in 2022 have been disappointing on a number of ranges. Whereas 2021 was marked by over-hyped asset values, 2022 has seen asset values decline throughout nearly all sectors. International indices stay extremely reactive to macro headlines. The S&P 500 and NASDAQ are down roughly 20.4% and 34.2%, respectively on the time of writing, one of many worst yearly performances on report. Macroeconomic elements reminiscent of inflation weighed closely on asset values as did the speedy and unprecedented enhance in rates of interest to fight inflation. Rate of interest stress triggered vital market disruption in 2022 together with seven Fed price will increase. Excessive-profile failures, bankruptcies and outright fraud by crypto-related companies within the second half of 2022 punctuated what resulted in an enormous drop within the worth of cryptocurrencies from all-time highs in late 2021. This has negatively impacted the valuations of many know-how firms, together with small-cap know-how firms reminiscent of Tokens.com.
Additionally impacting valuations is the uncertainty associated to power costs, local weather change and provide chain disruptions. A lot of that is associated to the continuing battle between Russia and Ukraine. The outcome has been an ongoing pivot away from extra speculative belongings and technology-based shares. As Tokens.com is a web3 know-how firm, our share worth has been negatively impacted by these macro occasions, regardless of the corporate being well-capitalized and rising.
A typical problem with capital markets is that they overvalue or undervalue firms. Nevertheless, they hardly ever precisely replicate the worth of a enterprise. Within the case of Tokens.com, we had been caught up within the metaverse hysteria in late 2021. At present, all crypto firms have been caught within the slew of damaging headlines about crypto and the economic system which, in administration’s opinion, has led to overselling. As well as, as a small cap inventory, promoting stress can have an outsized affect on the share worth. Conversely, the identical is true. Over time, as the corporate grows and matures, and damaging macro occasions stabilize, administration hopes its share worth will replicate its intrinsic worth.
Tokens.com Operations:
Regardless of being an early mover with notable achievements within the metaverse and play-to-earn gaming sectors, our accomplishments this 12 months have been overshadowed by the poor efficiency of the cryptocurrency sector and excessive profile failures within the sector. Administration believes that though there have been setbacks within the public notion of crypto and a few nicely publicized failures within the sector, the affect of web3 know-how can be profound within the coming years. 2022 marked a profitable company technique pivot to develop past staking, which is extremely reliant on the value of cryptocurrencies. Administration additional believes we’re positioned within the quickest rising classes of web3 via our operations in staking, the metaverse and gaming.
We acknowledge that crypto costs in 2022 had been risky and our possession of a cryptocurrency stock resulted in vital non-cash losses associated to the revelation of these belongings. Administration took steps to reevaluate its crypto holdings and get rid of non-layer one belongings in favor of holding extra cash. Administration at Tokens.com has taken steps to considerably scale back company overhead and protect capital to not require new capital in 2023. As of September thirtieth, Tokens.com held $5.8 million of money and $7.3 million of cryptocurrency tokens.
Tokens.com is just not a crypto alternate and we don’t interact in performance-enhancing by-product or leverage merchandise. As well as, Tokens.com doesn’t custody digital belongings or cryptocurrency for third events. The Firm solely custodies its personal digital belongings.
Administration has centered on constructing its two new web3 companies; Metaverse Group and Hulk Labs. These companies are centered on innovation within the web3 sector in methods that aren’t tied to the efficiency of cryptocurrencies. Each companies have made nice strides in offering company and model companions new methods to have interaction their clients.
Metaverse Group and Hulk Labs each turned income constructive in 2022 via a deal with modern companies and thru constructing proprietary mental property. Our technique is to restrict our publicity to Layer 1 cryptocurrencies like Ethereum, whereas additionally constructing sustainable and worthwhile companies that leverage web3 and blockchain know-how. This technique gives traders with the potential upside in crypto costs and the rising use instances for blockchain know-how.
Administration notes that outcomes are for the 9 months ended September 30, 2022, due to a change within the Firm’s year-end from December 31 to September 30.
Q3-2022 Monetary Highlights
- Acquire on disposition of digital belongings of $270k, in comparison with $102k from the identical interval final 12 months. The Firm additionally recorded a acquire on revaluation of digital belongings of $2.8 million for the three months ended September 30, 2022, in comparison with $4.2 million for a similar interval final 12 months. That is because of the restoration of cryptocurrency costs after June 30, 2022.
- Staking income decreased to $54k in comparison with staking income of $418k for the three months ended December 31, 2021. That is because of the decrease cryptocurrency costs that persevered all through 2022 in comparison with 2021.
- Metaverse Group Ltd. recorded lease income of $50k for the three months ended September 30, 2022. It is a new income stream for the Firm this 12 months.
- Hulk Labs recorded gaming income of $5k for the three months ended September 30, 2022. That is additionally a brand new income stream for the Firm this 12 months.
- Working bills elevated to $981k from $616k of the identical interval final 12 months, attributable to extra working overheads incurred by Metaverse Group and Hulk Labs.
- The Firm recorded a internet loss and a complete complete lack of $1.8 million, in comparison with internet revenue of $4.1 million and complete revenue of $.3 million for a similar interval final 12 months.
2022 Monetary Highlights
- Loss on disposition of digital belongings of $1.7 million, in comparison with a acquire of $1.4 million for the twelve months ended December 31, 2021. The Firm additionally recorded a loss on revaluation of digital belongings of $17.6 million for the 9 months ended September 30, 2022, of which $11.9 million was recorded in internet revenue and $3.5 million in different complete revenue, in comparison with a acquire of $2.3 million for the twelve months ended December 31, 2021, of which a lack of $3.4 million was recorded in internet revenue and a acquire of $4.3 million recorded in different complete revenue.
- Recorded an impairment lack of $3.6 million on its non-fungible token belongings, because of the present market situations and degree of public pursuits dwindling all through the 2022 fiscal 12 months.
- Staking income decreased to $552k, in comparison with staking income of $892k for the twelve months ended December 31, 2021. That is because of the decrease cryptocurrency costs that persevered all through 2022.
- Metaverse Group Ltd. recorded lease income of $95k for the 9 months ended September 30, 2022. It is a new income stream for the Firm this 12 months.
- Working bills decreased to $2.7 million from $6.3 million for the 12 months ended December 30, 2021, with the reductions attributable to decrease overhead prices throughout all capabilities of the Firm.
- The Firm recorded a internet lack of $5.9 million, in comparison with a lack of $8.3 million throughout the 12 months ended December 31, 2021, and a complete complete lack of $9.4 million, in comparison with a lack of $4.0 million throughout the 12 months ended December 31, 2021.
Steady Disclosure
Additional to a overview by the employees of the Ontario Securities Fee (the “OSC”) of the Firm’s steady disclosure, the FY2022 Monetary Statements and MD&A embody the next modifications:
- Reclassification of its cryptocurrency belongings from present to non-current on a retrospective foundation.
- Correction and extra disclosures with respect to government compensation.
On account of having to make such enhanced disclosure after the OSC overview, the Firm has been positioned on the general public listing of Refilings and Errors in accordance with OSC Workers Discover 51-711 (Revised) – Refilings and Corrections of Errors for a interval of three years, efficient right this moment.
An entire monetary reporting package deal, together with the Condensed Consolidated Monetary Statements and Administration’s Dialogue & Evaluation, is offered on our company web site (www.tokens.com), and the SEDAR web site (www.sedar.com).
An investor name has been scheduled to debate the Firm’s 2022 monetary outcomes, hosted by CEO Andrew Kiguel, beginning at 10:00 am ET on December 30, 2022.
Convention Name Particulars:
Date: December 30, 2022
Time: 10:00 a.m. ET
Dial-In: 866-455-3403
PIN: 17294915#
About Tokens.com
Tokens.com Corp is a publicly traded know-how firm that invests in web3 belongings and builds web3 companies. The Firm focuses on three working segments: i) crypto staking, ii) the metaverse and, iii) play-to-earn crypto gaming. Tokens.com owns digital belongings and working companies inside every of those three segments.
Staking operations happen inside Tokens.com. Metaverse actual property and ecomm3 options operations happen inside a subsidiary known as Metaverse Group. Crypto gaming operations happen inside a subsidiary known as Hulk Labs. All three companies are tied collectively by the utilization of blockchain know-how and are linked to high-growth macro developments inside web3. By sharing sources and infrastructure throughout these enterprise segments, Tokens.com is ready to effectively incubate these companies from inception to income technology.
On account of every of the three enterprise segments proudly owning digital belongings, Tokens.com is required to revalue these belongings at each reporting quarter. The Firm’s monetary statements can have non-cash associated good points or losses based mostly in the marketplace efficiency of the digital belongings owned from quarter to quarter. These non-cash revaluations of owned digital belongings don’t affect the operations or development inside our enterprise segments. The digital belongings are owned for the aim of producing income inside every enterprise section. In some cases, the Firm could select to get rid of sure belongings in the event that they now not meet our possession standards.
Go to Tokens.com to be taught extra.
Sustain-to-date on Tokens.com developments and be a part of our on-line communities on Twitter, LinkedIn, and YouTube.
Ahead-Trying Statements
This information launch consists of sure forward-looking statements in addition to administration’s targets, methods, beliefs and intentions. Ahead wanting statements are continuously recognized by such phrases as “could”, “will”, “plan”, “anticipate”, “anticipate”, “estimate”, “intend” and comparable phrases referring to future occasions and outcomes. Ahead-looking statements are based mostly on the present opinions and expectations of administration. All forward-looking info is inherently unsure and topic to a wide range of assumptions, dangers and uncertainties, together with the speculative nature of cryptocurrencies, as described in additional element in our securities filings accessible at www.sedar.com. Precise occasions or outcomes could differ materially from these projected within the forward-looking statements and we warning in opposition to putting undue reliance thereon. We assume no obligation to revise or replace these forward-looking statements besides as required by relevant regulation.