OBITX, INC. FILES ANNUAL REPORT WITH SEC

Rhea-AI Summary

OBITX, INC. (OTCQB: OBTX) reported its annual earnings, revealing key financial shifts for FY21. GAAP revenue rose by $927K year-over-year, but adjusted revenue decreased by $3.0 million. A significant loss of $(49.3) million was attributed to restructuring costs, including $49 million in stock-based compensation. However, on an adjusted basis, the company reported a profit of $1.1 million. Cash and cash equivalents increased dramatically from $35 to $214K when adjusted for current cryptocurrencies, indicating sufficient short-term operational financing.

Positive

• Adjusted earnings show a profit of $1.1 million, indicating a successful turnaround after restructuring.
• Cash and cash equivalents increased from $35 to $214K when adjusted for cryptocurrencies, showcasing financial stability.

Negative

• GAAP revenue growth of only $927K compared to a $3.0 million decline in adjusted revenue.
• A significant net loss of $(49.3) million reported under GAAP, primarily due to reorganization efforts.

RELEASES ADJUSTED ANNUAL EARNINGS REPORT

Fleming Island, Florida, May 17, 2021 (GLOBE NEWSWIRE) --

• GAAP Revenue grew by $927K from the Year Ended January 31, 2020 (FY20) as compared to the Year Ended January 31, 2021 (FY21).  Adjusted Revenue grew by $3.0 million for FY20 as compared to FY21.

• GAAP Earnings from Continuing Operations were a net loss of $(7.20) per share for FY21.   Adjusted Earnings from Continuing Operations were  $0.19 per share for FY21.  

Fleming Island, FL  – May 17, 2021 – OBITX, INC. (OTC Markets: OBTX) today released its annual report on Form 10K with the SEC.  Under GAAP, OBITX recorded a net loss of $(49.3) million generated through its reorganization and restructuring in FY21.  OBITX recorded $49 million in stock-based compensation when it reorganized its previous operations moving from an internet marketing company to a blockchain engineer and development company.  In addition, OBITX recorded the sale of its proprietary internet marketing software for $1.9 million to a related party as a balance sheet transaction only.  The net effects of these two major transactions, when removed from the financials, along with traditional adjusted expenses, such as interest and depreciation, provide for an adjusted from a $49 million loss to a$1.1 million profit.

For a full analysis of the adjusted performance for the Company’s January 31, 2021 earnings report, visit the Company’s website at www.obitx.com. In addition to the adjusted earnings, OBITX consolidates its cash and cash equivalents on its adjusted balance sheet to include “current cryptocurrencies”, which the Company defines as cryptocurrencies that can be easily sold in the market without effect to the market price.  When consolidated on an adjusted basis, the Company’s cash and cash equivalents increase from $35 under GAAP, to $214K.  This demonstrates OBITX’s ability to meet its ongoing operations financing requirements in the short term and foreseeable future without the need for additional capital.

Eric Jaffe, OBITX Chief Executive Officer stated, “The numbers for FY21, on an adjusted standpoint provide a clear picture of our success in revamping, restructuring, and reorganizing ongoing operations.  Our new management team and members of our board of directors have been able to focus on business growth without being in the constant search for capital. With this laser focus we have been able to implement our unique business model and approach to the blockchain where we continue exponential growth in line with the growth patterns of blockchain technology.”

Michael Hawkins, OBITX Chief Financial Officer further added, “As a publicly traded company we will continue to provide GAAP accounting and reconciliations to adjusted earnings.  We encourage investors to review both our Form 10K filed with the SEC and our annual adjusted earnings report.  The Company expects to release its first quarter numbers of this fiscal year, for April 30, 2021 in the very near future.”

About OBITX:

Headquartered in Fleming Island, Florida, OBITX, Inc., (OTCQB: OBTX) is a development,  consulting and services organization specializing in blockchain technologies and decentralized processing.

Forward Looking Statements

This news release contains “forward-looking statements” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”, or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate.

FAQ

What were OBITX's earnings for FY21?

OBITX reported a net loss of $(49.3) million under GAAP but an adjusted profit of $1.1 million.

How did OBITX's GAAP revenue change from FY20 to FY21?

GAAP revenue increased by $927K from FY20 to FY21.

What was the stock symbol of OBITX?

The stock symbol for OBITX is OBTX.

What contributed to the loss reported by OBITX?

The loss was primarily due to reorganization costs and stock-based compensation totaling $49 million.

How much cash does OBITX have after adjustments?

After adjustments, OBITX's cash and cash equivalents increased to $214K.