Mr. Andrew Kiguel reports

TOKENS.COM REPORTS FINANCIAL RESULTS FOR Q1 2024

Tokens.com Corp. has released its financial results for three months ended Dec. 31, 2023 (Q1 2024). All dollar figures are in United States dollars, unless otherwise stated.

Q1 2024 financial and operating highlights:

• The company achieved revenue of $219,000 for Q1 2024, compared with $152,000 for the three months ended Dec. 31, 2022 (Q1 2023).
• Total cash and cryptocurrency holdings of $11.3-million, or $15-million (Canadian), as of Dec. 31, 2023.
• Staking revenue was $165,000 for Q1 2024, compared with $40,000 for Q1 2023, mostly due to increase in crypto prices during the quarter and the company starting to receive transaction fees for its ethereum staking.
• Services revenue of $54,000 for Q1 2024, compared with $108,000 for Q1 2023, due to lower revenue from Metaverse Group and Hulk Labs.
• Operating expenses were $856,000 the three months ended Dec. 31, 2023, compared with $718,000 for the three months ended Dec. 31, 2022.
• A non-cash gain on revaluation of digital assets of $2.6-million for Q1 2024, compared with a loss of $1.3-million for Q1 2023. Gain on disposal of digital assets was $94,000 for the three months ended Dec. 31, 2023, compared with a loss of $102,000 during the three months ended Dec. 31, 2022.
• Net income and comprehensive income for Q1 2024, attributable to the owners of Tokens.com, of $2.1-million, compared with net loss and comprehensive loss of $1.6-million, attributable to the owners of Tokens.com, for Q1 2023.
• Earnings per share of two cents for Q1 2024, compared with loss per share of two cents, for Q1 2023.
• On Nov. 8, 2023, the company announced that it had commenced a strategic review, which includes potential acquisitions, sales of its domain names and its operating businesses and digital assets.
• On Jan. 29, 2024, the company entered into a definitive agreement to sell the assets of Metaverse Group and Hulk Labs to StoryFire Inc., which is primarily a transfer of its work force and contractors. All capital within these entities will remain at Tokens.com. The transaction is expected to close on March 1, 2024.

"Difficult decisions were made in December and January regarding Metaverse Group and Hulk Labs. Management determined that the most economical option for shareholders was to dispose of Metaverse Group and Hulk Labs," said Andrew Kiguel, chief executive officer of Tokens.com.

"These businesses were struggling and required further substantial investment to survive. Capital for those businesses would have needed to come from a dilutive financing or from selling our crypto inventory. A better solution was found by selling the assets to StoryFire. This transaction places the assets in the hands of a larger, well-capitalized platform. Tokens.com retains the upside through our equity ownership in StoryFire and no longer has to carry the overhead associated with these operations. Management and the board are continuing to explore additional potential transactions to enhance shareholder value," added Mr. Kiguel.

A complete financial reporting package, including the unaudited condensed consolidated interim financial statements and management's discussion and analysis, is available on the company's corporate website and the SEDAR+ website.

An investor call has been scheduled to discuss the company's Q1 2024 financial results, hosted by CEO Mr. Kiguel, starting at 10 a.m. ET on Feb. 14, 2024.

Conference call details

Date: Feb. 14, 2024

Time: 10 a.m. ET

To join the webinar, register on-line. Upon registration a Zoom link will be e-mailed to the registered e-mail address. The webinar will be available via computer, tablet and smart phone devices. In addition, a dial-in phone number will be provided in the e-mail upon registration. Callers dialling in using a telephone will automatically be placed in a listen-only mode. The question period will not be available to dial-in callers.

About Tokens.com Corp.

Tokens.com is a technology holding company that owns an inventory of cryptocurrency, digital real estate and a collection of top-ranked crypto-related domain names.

We seek Safe Harbor.