Vancouver, British Columbia--(Newsfile Corp. - August 1, 2023) - Neptune Digital Assets Corp. (TSXV: NDA) (OTCQB: NPPTF) (FSE: 1NW) ("Neptune" or the "Company"), one of the first publicly traded blockchain companies in Canada, is pleased to announce the release of its May 31, 2023 quarterly condensed consolidated interim financial statements and management discussion and analysis for the nine months ended May 31, 2023.
The financial highlights for the nine months ended May 31, 2023 and the period subsequent to quarter-end up to the date of this news release are as follows.
- Neptune ended the quarter on May 31, 2023 with $38.5 million in assets and zero debt.
- Neptune earned total revenues and other income of $2.9 million through Bitcoin mining, staking, DeFi and other income-generating activities during the nine-month period ended May 31, 2023.
- Neptune mined $1.8 million of Bitcoin during the nine-month period ended May 31, 2023. As of the date of this release, Neptune has a total balance of 261 Bitcoin in cold storage and an additional 64 Bitcoin under chapter 11 claims with Genesis and Celsius, with the outcome of those claims currently unknown. Neptune presently retains all its Bitcoin in cold storage and does not engage in active selling.
- Neptune's two largest digital asset holdings as of the date of this release are 261 BTC and 175,000 ATOM. The Company also holds positions in ETH, DOT, wMemo, DASH , GRT, OCEAN and a number of other tokens, as well as an investment in SpaceX valued at approximately $2.3 million USD.
- Neptune currently maintains a cash and short-term investments balance of $10.6 million CAD held with a tier 1 Canadian bank and an additional $4 million USD under Chapter 11 claim with Genesis Lending with the outcome currently unknown.
"Neptune believes we are now emerging from a bear market and as such has started to position monetary assets to gain additional exposure in the projected recovery over the coming years. That said, we have taken measures to protect against substantial pullbacks or black swan type events while our crypto and monetary holdings continue to generate revenues through various avenues, including delegation, staking, nodes, high-interest term deposits, and option trade premiums. Costs remain low and capital needs are covered for many years to come. This quarter was fairly flat due to downside swing of the Canadian dollar and a muted rally over last quarter, that said we continue to grow our balance sheet and acquire what we deem to be potentially high value assets in the medium term," stated Cale Moodie, Neptune's CEO.
| Operating and Financial Overview |
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| ($CAD) |
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For the nine months ended |
May 31, 2023 |
May 31, 2022 |
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Mining revenue |
1,782,433 |
1,057,444 |
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DeFi revenue |
22,017 |
2,599,174 |
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Direct Mining expenses (not incl depreciation) |
(1,483,673) |
(233,286) |
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Other income* |
1,097,634 |
3,193,147 |
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Total earnings |
1,418,411 |
6,616,479 |
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Depreciation** |
389,161 |
683,981 |
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Stock based compensation** |
443,069 |
184,214 |
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General expenses |
1,677,575 |
1,494,489 |
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Impairments |
(183,168) |
(879,497) |
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Realized gain (loss) on settlements and sales |
575,842 |
273,700 |
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Revaluation gain (loss) on digital currencies*** |
3,197,584 |
(4,891,624) |
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Unrealized gain (loss) related to lending activities and investments |
1,930 |
(2,663,614) |
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Comprehensive income (loss) for the period |
2,500,794 |
(3,907,240) |
| Financial Position |
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| ($CAD) |
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As at |
May 31, 2023 |
August 31, 2022 |
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Cash and receivables |
17,410,462 |
18,970,896 |
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Total digital assets |
13,756,643 |
9,128,229 |
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Total other assets |
7,352,929 |
7,943,219 |
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Total liabilities |
343,364 |
890,787 |
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Total shareholders equity |
38,176,670 |
35,151,557 |
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Working capital**** |
21,053,354 |
25,746,557 |
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* All non-Bitcoin mining and non-DeFi revenue generating activities |
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** Non-cash items, including depreciation of mining rigs |
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*** Revaluation is calculated as the change in value (gain or loss) on the coin inventory. When coins are sold, the net difference between the proceeds and the carrying value of the digital currency (including the revaluation), is recorded as a gain (loss) on the sale of digital currencies |
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**** Current assets less current liabilities |
About Neptune Digital Assets Corp.
Neptune Digital Assets Corp. (TSXV: NDA) (OTCQB: NPPTF) (FSE: 1NW) is one of the first publicly traded blockchain companies in Canada and is at the forefront of the cryptocurrency and blockchain landscape. Neptune engages in operations across the digital asset ecosystem including Bitcoin mining, proof-of-stake mining, blockchain nodes, decentralized finance (DeFi), and other associated cutting-edge technology. Our unwavering commitment to innovation and strategic growth enables us to continually explore new opportunities and maximize value for our shareholders. For more information about Neptune Digital Assets Corp., please visit our website at www.neptunedigitalassets.com or follow us on Twitter (x.com) (@NeptuneDAC).
ON BEHALF OF THE BOARD
Cale Moodie, President and CEO
Neptune Digital Assets Corp.
1-800-545-0941
www.neptunedigitalassets.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This release contains certain "forward-looking statements" and certain "forward-looking information" as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", "proposes" or similar terminology. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the auditors completing the remining auditing items with respect to the Annual Filings; the inherent risks involved in the cryptocurrency and general securities markets; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and other related risks and uncertainties.
The Company does not undertake any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/175557
