Liquid Meta Reports Q2 2023 Financial Results

Rhea-AI Summary

Liquid Meta Capital Holdings Ltd. reported its Q2 2023 financial results for the period ending November 30, 2022. Total Reward Tokens and Trading Fee revenues reached $326,738, while net loss was significant at $5,609,376 due to exposure from the collapse of FTX. This led to a net loss per share of $0.10 and a net operating loss of $1,696,777. The company had $4.9 million in deposits on FTX, with ongoing exploration to recover funds through bankruptcy processes. Despite industry challenges, Liquid Meta is evaluating strategic alternatives to maximize shareholder value.

Positive

• Total Reward Tokens and Trading Fee revenues of $326,738 for Q2 2023.
• Total Shareholders' Equity of approximately $15.4 million.

Negative

• Net loss of $5,609,376 due to FTX exposure.
• Net operating loss of $1,696,777.

TORONTO, Jan. 13, 2023 /PRNewswire/ - Liquid Meta Capital Holdings Ltd. ("Liquid Meta" or the "Company") (NEO: LIQD) (FRANKFURT: N5F) (OTCQB: LIQQF) a decentralized finance infrastructure and technology company focused on bridging the gap between traditional and decentralized finance, today announced its financial results for the three-months ending November 30, 2022.

All dollar figures are in United States dollars ("USD"), unless otherwise stated.

Q2 2023 Highlights

• Total Reward Tokens and Trading Fee revenues of $326,738 for the three months ended November 30, 2022.
• Realized and unrealized loss of $1,010,789 for three-months ended November 30, 2022, due in a large part to short positions on FTX that were inaccessible during a period of significant volatility leaving long positions outside of FTX exposed.
• Quarterly net revenues excluding FTX exposure of $(719,758).
• Net operating loss of $1,696,777 resulting in net loss of $5,609,376, with $3,912,599 (net exposure) due to the collapse of the second largest crypto currency exchange FTX.
• Net loss per share of $0.10.
• Total Shareholders' Equity of approximately US$15.4 M (CAD$20.8 M) or US$0.29 (CAD$0.39) per share
• Deployed capital across 10 blockchains, 26 different decentralized platforms and 5 different strategies
• Additional details on FTX Bankruptcy impact on Liquid Meta
• On November 11, 2022, the company's founder and CEO stepped down from the company and FTX had filed for bankruptcy.
• Liquid Meta had $4.9 M in total deposits on the FTX platform at the time of the 'bank-run'. The company was unable to withdraw its deposits ahead of the halting of activity on the exchange and subsequent bankruptcy.
• Net exposure to FTX was $3.9 M
• Liquid Meta is exploring all options to have any of its funds returned as part of the FTX bankruptcy process and will update investors on any developments.
• At the end of Q2 Liquid Meta had exited most of its positions in DeFi, had no material exposure to any Centralized Exchanges (CEX's) and had moved most of its balance sheet to a traditional financial institution until management is comfortable to redeploy its fiat holdings back into DeFi.
• Subsequent to quarter end, the company announced that its Board of Directors had initiated a process to evaluate potential strategic alternatives to maximize shareholder value. As part of the process, the Board will consider a range of options that may include, but are not limited to, a sale, merger, divestiture, return of capital, other strategic transactions, or continuing to operate as an independent public company.

"The operating environment in crypto year-to-date has been the most challenging for the industry since its inception.  Crypto and DeFi markets have been exposed to a global macro environment that has resulted in a 'risk-off' backdrop due to rising inflation and higher interest rates globally. The war in Ukraine, the lingering effects of continued pandemic lockdowns in China and less than ideal fiscal policies set by central banks have all contributed to the industry's difficulties during 2022. More specifically, security issues in crypto / DeFi and the collapse of several Centralized Crypto trading platforms like FTX has resulted in a fundamentally challenged operating environment" said Jonathan Wiesblatt, CEO of Liquid Meta. "However, with all the negative headwinds facing the industry we still believe that products and services offered in crypto are not only going to continue to grow but will become more vital to the global financial ecosystem in the future. Decentralized applications have continued to outperform its counterparts in Centralized Finance (CeFi) given the consistent performance of the smart contracts, the open and transparent nature of all transactions and the removal of human subjectivity in financial transaction decisions" added Mr. Wiesblatt.

Liquid Meta is a DeFi focused infrastructure and technology company. The Company had a liquidity mining operation where it generated returns through deployment of its own balance sheet on a variety of blockchains and decentralized applications. The Company was also developing technology to bridge the gap between traditional finance and the emerging open financial protocols being built in Web3 and has paused this activity as part of its strategic review process. This technology is designed to make on-chain operations simpler, safer, and more efficient for traditional financial institutions to access Web3.

Financial Statements and MD&A

Liquid Meta's financial Statements for the quarter ended November 30, 2022 and Management's Discussion and Analysis (the "MD&A") for the three months ended November 30, 2022 are available on SEDAR at www.sedar.com. 

About Liquid Meta

Liquid Meta is a decentralized finance infrastructure and technology company that is powering the next generation of open-access protocols and applications. The Company is creating the bridge between traditional and decentralized finance while ushering in a new era of financial infrastructure that benefits anyone, anywhere.

To learn more visit Website | LinkedIn | Twitter 

Cautionary Notice

Neo Exchange has not reviewed or approved this press release for the adequacy or accuracy of its contents.

Forward-Looking statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Liquid Meta to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risks and Uncertainties" in the Company's Filing Statement dated as of December 17, 2021 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Liquid Meta disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Liquid Meta's operations could be significantly adversely affected by the effects of a widespread global outbreak of a contagious disease, including the recent outbreak of illness caused by COVID-19. It is not possible to accurately predict the impact COVID-19 will have on operations and the ability of others to meet their obligations, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect operations and the ability to finance its operations.

For further information:

Jonathan Wiesblatt, President, CEO
Liquid Meta Investor Relations
investors@liquidmeta.io
jon@liquidmeta.io

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SOURCE Liquid Meta Capital Holdings Ltd

FAQ

What were Liquid Meta's financial results for Q2 2023?

Liquid Meta reported a net loss of $5,609,376 for Q2 2023, with total revenues of $326,738.

How much exposure did Liquid Meta have to FTX?

Liquid Meta had $4.9 million in deposits on FTX at the time of its bankruptcy.

What is the net loss per share for Liquid Meta in Q2 2023?

The net loss per share for Liquid Meta was $0.10.

What actions is Liquid Meta taking after the FTX collapse?

Liquid Meta is exploring strategic alternatives to maximize shareholder value, including potential mergers or divestitures.