CarbonMeta Technologies (COWI) Reports Second Quarter 2022 WOODINVILLE, WA / ACCESSWIRE / August 23, 2022 / CarbonMeta Technologies Inc. (OTC PINK:COWI) today announced its financial results for the first quarter ended June 30, 2022.
During the six months ended June 30, 2022 (the "2022 Period"), the company realized $41,335 gross revenues compared to gross revenues of $0 during the six months ended June 30, 2021 (the "2021 Period"). Gross revenues in the 2022 Period were higher compared to the 2021 Period as the Company realized its first customer sales since the company was re-launched in 2021. Gross profits increased to $33,706 during the 2022 Period compared to $0 during the 2021 Period.
Operating expenses were $439,243 for the 2022 Period compared to $75,000 for the 2021 Period. Legal and Professional Fees and General and Administrative expenses increased in order to establish sales and operations, and to complete an audit in preparation for the company's SEC Form 1 that was filed on July 28, 2022. Loss from operations was $405,537 for the 2022 Period compared to $75,000 for the 2021 period.
Total other expenses were $6,347,736 during the 2022 Period compared to Total other expenses of $49,880,221 in the 2021 Period. Other expenses is comprised primarily of gain/loss on derivative, amortization of debt discount, deferred finance costs, accrued interest on notes payable, and loss on extinguishment of debt. The change in derivative liabilities for the 2022 Period was $5,855,627 compared to $49,360,801 for the 2021 Period.
Interest expense, net for the 2022 Period was $487,109 compared to $519,438 for the 2021 Period. The decrease in interest expense is principally a result of a decrease in accrued interest on debt because the company extinguished debt during the third quarter of FY-2021.
Net loss for the 2022 Period was $6,347,736 compared to net loss of $49,880,221 for the 2021 Period. The decrease in net loss is primarily due to a decreased loss on the change in derivative liabilities, principally because the company extinguished $5,192,491 of variable rate convertible debt in exchange for 2,250,000,000 shares of common stock in July 2021.
"This past quarter marked a turning point for the company as it realized its first revenues since its 2021 re-launch, and benefitted from having extinguished variable rate convertible debt," said Lloyd Spencer, Chairman and CEO of CarbonMeta Technologies. "This coming year, CarbonMeta plans to work closely with communities and investors; apply for state and federal grants; establish pilot projects that can generate economically sustainable hydrogen and high-value carbon products; and deliver carbon-negative building products that capture atmospheric CO2."
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