CORRECTING and REPLACING Tokens.com Reports Financial Results for Fiscal Year 2022
The updated release reads:
TOKENS.COM REPORTS FINANCIAL RESULTS FOR FISCAL YEAR 2022
2022 Operation Highlights:
-
Year-end cash balance of
and digital assets - cryptocurrency balance of$5.8 million , for a total of$7.3 million , or$13.1 million CAD equivalent;$18.0 million -
Total assets of
or$20.0 million CAD equivalent;$27.5 million -
Total revenue for the nine-months ended
September 30, 2022 of , or$678 kCAD ;$929 k -
Start-up subsidiaries,
Metaverse Group andHulk Labs , both became revenue positive in 2022 with revenue ofCAD and$130 kCAD7k , respectively; -
Metaverse Fashion Week, hosted on digital real estate owned by subsidiary
Metaverse Group , attracted over 100,000 visitors; -
Successful launch of
Hulk Labs , a new subsidiary focused on the play-to-earn crypto gaming sector; -
Acquisition of additional Metaverse real estate assets including the
Music District in Decentraland and landmark parcels in SuperWorld; -
Successfully hosted a metaverse music festival in the company’s
Music District ; - Successful tenant leases for virtual land by tier-one brands;
-
Completion of
Tokens.com Tower , which serves as the digital headquarters forTokens.com and its subsidiaries; -
Hosted the digital version of Miami Fashion Week in Decentraland’s
Fashion District ; -
Entered an exclusive partnership with the
Democratic Republic of Congo to identify and train a workforce of crypto gaming players; - Integrated Fireblocks, a custody solution to improve security and report management;
-
Acquisition of
Playte Group , a company that builds tools to power the play-to-earn gaming economy; -
Completion of strategic investment round at
Hulk Labs ; - Full occupancy of its digital real estate portfolio in Decentraland’s downtown and fashion district;
- Integration of over 1,000 player wallets into Hulk Labs’ player network; and;
- Partnership with AIR MILES, Canada’s largest loyalty program.
“I am proud of our accomplishments in 2022, despite terrible market conditions. We believe that our intrinsic value isn’t reflected in our share price and that we remain positioned for further positive accomplishments in 2023. We thank our shareholders for their support during a tough year. Management is aligned with
“FY2022 is marked with non-cash losses that reflect the revaluation of the crypto assets we own. However, these non-cash losses have not impacted the ongoing growth within our metaverse and gaming business segments. Despite negative global macro events and the subsequent impact on our share price, management at
Market Commentary:
Capital markets in 2022 have been disappointing on several levels. While 2021 was marked by over-hyped asset values, 2022 has seen asset values decline across almost all sectors. Global indices remain highly reactive to macro headlines. The S&P 500 and NASDAQ are down approximately
Also impacting valuations is the uncertainty related to energy prices, climate change and supply chain disruptions. Much of this is related to the ongoing conflict between
A common issue with capital markets is that they overvalue or undervalue companies. However, they rarely accurately reflect the value of a business. In the case of
Tokens.com Operations:
Despite being an early mover with notable achievements in the metaverse and play-to-earn gaming sectors, our accomplishments this year have been overshadowed by the poor performance of the cryptocurrency sector and high profile failures in the sector. Management believes that although there have been setbacks in the public perception of crypto and some well publicized failures in the sector, the impact of web3 technology will be profound in the coming years. 2022 marked a successful corporate strategy pivot to expand beyond staking, which is highly reliant on the price of cryptocurrencies. Management further believes we are positioned in the fastest growing categories of web3 through our operations in staking, the metaverse and gaming.
We acknowledge that crypto prices in 2022 were volatile and our ownership of a cryptocurrency inventory resulted in significant non-cash losses related to the revelation of those assets. Management took steps to reevaluate its crypto holdings and dispose of non-layer one assets in favor of holding more cash. Management at
Management has focused on building its two new web3 businesses;
Management notes that results are for the 9 months ended
Q3-2022 Financial Highlights
-
Gain on disposition of digital assets of
, compared to$270 k from the same period last year. The Company also recorded a gain on revaluation of digital assets of$102 k for the three months ended$2.8 million September 30, 2022 , compared to for the same period last year. This is due to the recovery of cryptocurrency prices after$4.2 million June 30, 2022 . -
Staking revenue decreased to
compared to staking revenue of$54 k for the three months ended$418 kDecember 31, 2021 . This is due to the lower cryptocurrency prices that persisted throughout 2022 compared to 2021. -
Metaverse Group Ltd. recorded lease revenue of for the three months ended$50 kSeptember 30, 2022 . This is a new revenue stream for the Company this year. -
Hulk Labs recorded gaming revenue of for the three months ended$5 kSeptember 30, 2022 . This is also a new revenue stream for the Company this year. -
Operating expenses increased to
from$981 k of the same period last year, due to additional operating overheads incurred by$616 kMetaverse Group andHulk Labs . -
The Company recorded a net loss and a total comprehensive loss of
, compared to net income of$1.8 million and comprehensive income of$4.1 million $.3 million for the same period last year.
2022 Financial Highlights
-
Loss on disposition of digital assets of
, compared to a gain of$1.7 million for the twelve months ended$1.4 million December 31, 2021 . The Company also recorded a loss on revaluation of digital assets of for the nine months ended$17.6 million September 30, 2022 , of which was recorded in net income and$11.9 million in other comprehensive income, compared to a gain of$3.5 million for the twelve months ended$2.3 million December 31, 2021 , of which a loss of was recorded in net income and a gain of$3.4 million recorded in other comprehensive income.$4.3 million -
Recorded an impairment loss of
on its non-fungible token assets, due to the current market conditions and level of public interests dwindling throughout the 2022 fiscal year.$3.6 million -
Staking revenue decreased to
, compared to staking revenue of$552 k for the twelve months ended$892 kDecember 31, 2021 . This is due to the lower cryptocurrency prices that persisted throughout 2022. -
Metaverse Group Ltd. recorded lease revenue of for the nine months ended$95 kSeptember 30, 2022 . This is a new revenue stream for the Company this year. -
Operating expenses decreased to
from$2.7 million for the year ended$6.3 million December 30, 2021 , with the reductions attributable to lower overhead costs across all functions of the Company. -
The Company recorded a net loss of
, compared to a loss of$5.9 million during the year ended$8.3 million December 31, 2021 , and a total comprehensive loss of , compared to a loss of$9.4 million during the year ended$4.0 million December 31, 2021 .
Continuous Disclosure
Further to a review by the staff of the
- Reclassification of its cryptocurrency assets from current to non-current on a retrospective basis.
- Correction and additional disclosures with respect to executive compensation.
As a result of having to make such enhanced disclosure after the OSC review, the Company has been placed on the public list of Refilings and Errors in accordance with OSC Staff Notice 51-711 (Revised) - Refilings and Corrections of Errors for a period of three years, effective today.
A complete financial reporting package, including the Condensed Consolidated Financial Statements and Management’s Discussion & Analysis, is available on our corporate website (www.tokens.com), and the SEDAR website (www.sedar.com).
An investor call has been scheduled to discuss the Company’s 2022 financial results, hosted by CEO
Conference Call Details:
Date:
Time:
Dial-In: 866-455-3403
PIN: 17294915#
About
Staking operations occur within
As a result of each of the three business segments owning digital assets,
Visit
Keep up-to-date on
Forward-Looking Statements
This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of cryptocurrencies, as described in more detail in our securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221229005311/en/
Telephone: +1-647-578-7490
Email: contact@tokens.com
Email: contact@tokens.com
Media Contact:
Email: ali@talkshopmedia.com
Source: