Tokens.com reports operating and financial results for the second quarter of 2022

TORONTO–(BUSINESS THREAD)–Tokens.com body (NEO Exchange Canada: COIN) (Frankfurt Stock Exchange: 76M) (OTCQB US: SMURF) (“Tokens.com” or the “Company”), a publicly traded company that invests in Web3 crypto assets and incubates companies linked to Metaverse and NFT, is pleased to announce its operating and financial results for the three and six months ended June 30, 2022 (“Q2 2022”).

All dollar figures are in United States dollars (“USD”) unless otherwise noted.

Highlights of Q2 2022:

Revenue increased to $251,000, compared to $201,000 for the period ended June 30, 2021 (“Q2-2021”). Non-cash revaluation losses on digital assets of $12.5 million, compared to $6.7 million in the second quarter of 2021, due to the decline in cryptocurrency prices in the second quarter. Realized loss on disposal of digital assets of $1.7 million, compared to $0.3 million in Q2 2021. Net loss, attributable to Tokens.com, of $11.5 million dollars, largely due to the non-cash revaluation loss, compared to a loss of $8.5 million in the second quarter of 2021, resulting in a net loss per share of $0.12, in compared to $0.13 in Q2 2021. . Decentraland Music District Takeover hosted Miami Fashion Week in the Decentraland Fashion District. Signed an exclusive partnership with the Democratic Republic of Congo to identify and train a workforce of crypto game players Integrated Fireblocks, MPC-based custody solution to improve security and report management

Tokens.com is a Web3 technology company that buys digital assets and builds service-based businesses around those assets. The company focuses on three operational segments within the crypto sector: i) crypto staking, ii) the metaverse and, iii) crypto play-to-earn gaming. Tokens.com owns operating businesses within each of these segments. Staking operations occur on Tokens.com. Metaverse operations occur within a subsidiary called Metaverse Group Ltd. (“MGL”). Crypto gaming operations occur within a subsidiary called Hulk Labs (“Hulk”). All three companies are linked by the use of blockchain technology and are linked to high-growth macro trends within Web3.

By sharing resources and infrastructure between these three business segments, Tokens.com is able to efficiently incubate these companies from inception to revenue generation. As of the date of this press release, all three segments are revenue positive, although MGL and Hulk are in the early stages of their start-up. Each business segment owns its own cryptocurrency assets that are used to generate revenue that is unrelated to cryptocurrency market performance or conditions. A more detailed description of each business is provided in the second quarter 2022 management’s discussion and analysis available on the company’s website and SEDAR website.

As a result of our companies holding cryptocurrency assets, Tokens.com must revalue its digital assets at the end of each reporting quarter. This means that our financial statements will have a positive or negative non-cash impact depending on the market price of the digital assets owned at the end of that quarter. Tokens.com and its affiliates are not involved in lending tokens, digital assets or using derivative products to enhance returns. We do not hold tokens or engage in active trading or hedging of crypto assets.

The second quarter of 2022 was not a good quarter for cryptocurrencies or digital assets owned by Tokens.com. This resulted in significant non-cash revaluation losses. Management notes that these are non-cash revaluation losses and are not tied to operational growth within the holding business, MGL or Hulk.

“2022 has been a challenging year for capital markets and for crypto,” said Andrew Kiguel, CEO. “This has been reflected in our share price, which has not performed well this year. The second quarter is marked by non-cash losses that reflect the revaluation of the crypto assets we hold. However, these non-cash losses do not impact ongoing expansion within our business segments that continue to grow revenue. Tokens.com’s balance sheet is healthy and we are seeing an improvement in crypto asset prices since the end of the second quarter, which will be reflected in the third quarter. We thank our shareholders for their support during a tough year in the markets. The management will continue to work to create value with a long-term view”, added Kiguel.

Since the end of the second quarter of 2022, the crypto markets have improved. For example, the company’s assets and equity shares have increased approximately 60% since the end of the second quarter of 2022 through the date of this press release. Bitcoin and Eth token prices have increased by 20% and 78%, respectively, from the end of Q2 2022 to August 12, 2022. Confidence in the industry appears to be recovering and will affect positively Tokens.com holding assets, which include 3,160 Eth.

For periods ended June 30 Three months ended Six months ended

2022

2021

2022

2021

income

$

250,714

$

203,990

$

577,034

$

305,599

Operating expenses

$

(752,780

)

$

(2,154,114

)

$

(1,689,017

)

$

(2,417,092

)

Loss on disposal of digital assets

(1,692,878

)

(287,659

)

(1,959,421

)

(264,349

)

Revaluation loss of digital assets

(12,464,278

)

(6,724,843

)

(14,765,967

)

(6,724,843

)

net loss

$

(11,885,782

)

$

(8,537,342

)

$

(4,119,889

)

$

(8,674,514

)

Net loss per share

$

(0.12

)

$

(0.13

)

$

(0.04

)

$

(0.16

)

As in the

(thousands CAD) June 30, 2022 December 31, 2021
Financial position

cash

$

5,738,505

$

9,741,810

Total digital assets

14,098,281

30,434,312

Total assets

22,809,995

43,548,227

Total liabilities

2,750,167

17,418,688

Total equity of the shareholder

20,059,828

26,129,539

Working capital (i)

18,959,349

38,669,789

(i) Calculated as current assets minus current liabilities.

Financial review for the second quarter of 2022

A complete package of financial information, including the condensed interim consolidated financial statements and management’s discussion and analysis, is available on our corporate website (www.tokens.com), and the SEDAR website (www.sedar.com).

An investor call hosted by CEO Andrew Kiguel to discuss the company’s second quarter 2022 financial results is scheduled to begin at 10:00 am ET on Tuesday, August 16, 2022.

Date: August 16, 2022

Time: 10:00 am ET

Call: 866-455-3403

PIN: 83349366#

About Tokens.com

Tokens.com Corp is a publicly traded Web3 company that owns and invests in an inventory of Metaverse, NFT, DeFi and gaming based digital assets. The purpose of Tokens.com is to invest in and create Web3 businesses through its parent entity and subsidiaries. Tokens.com is the majority owner of Metaverse Group, one of the world’s first virtual real estate companies. Hulk Labs, a wholly owned subsidiary of Tokens.com, focuses on investing in the game for revenue generating game tokens and NFTs. In addition, Tokens.com owns and participates in crypto assets to earn additional tokens. Through its growing digital and NFT assets, Tokens.com offers public market investors a simple and secure way to gain exposure to Web3.

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This press release includes certain forward-looking statements, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by words such as “may,” “will,” “plan,” “expect,” “anticipate,” “estimate,” “attempt” and similar words that refer to future events and results. Forward-looking statements are based on management’s current opinions and expectations. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of cryptocurrencies, as further described in our securities statements available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements, and we caution against undue reliance. We undertake no obligation to revise or update these forward-looking statements, except as required by applicable law.





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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!