Mr. Shy Datika reports
THE INX DIGITAL COMPANY REPORTS FIRST QUARTER 2022 UPDATES AND BUSINESS EARNINGS RELEASE
The INX Digital Company Inc. has released financial results for its first quarter ended March 31, 2022.
INX Digital presents its results to the investing public and others who find use in the company's financial information in a way that it believes/considers is most meaningful and transparent.
Investment gains/losses for any particular period as described are not indicative of quarterly business performance. Earnings of INX Digital for the first quarter of 2022 are summarized below.
Q1 2022 financial highlights:
Listing INX Digital equity shares on the NEO Canadian Exchange on Jan. 24, 2022;
Cash and cash equivalents of $46.6-million;
Reserve fund maintained at $36-million;
Growth of new registrations on the INX Digital platforms, with a total of 17,674;
INX Digital revenue for Q1 2022 (for the period ended March 31) is $1.6-million (primarily brokerage fees);
Net cash used in operating activities is $3.9-million for the quarter.
On the headline, INX Digital reports quarterly net income of $111.5-million. However, this number includes a marked-to-market accounting liability to INX Digital token holders of $118-million and a token warrant liability of $3.7-million. In addition, the amount includes $2.6-million of share-based payments. It also includes a one-time cost of $5.9-million associated with the reverse takeover transaction as a result of which the company was listed on the NEO Exchange (listed on Jan. 24, 2022, NEO: INXD). Therefore, the company's adjusted net loss, adjusting for the above items, is $6.9-million. Adjusted net loss is a non-international financial reporting standard measure.
The company's targeted goals for the first quarter of 2022 were accomplished.
The company has launched multiple marketing campaigns in the United States during the reporting period to increase brand awareness and acquire new customers.
In the past quarter, INX Digital has accumulated more licences that now allow it to trade cryptocurrencies in 40 U.S. states and territories. It is also trading securities in every U.S. state while curating a pipeline of exclusive issuers to bring to the market as either initial public offerings or private offerings.
The company forecasts a material increase in the number of new customer registrations in second quarter 2022. The company has recently launched a referral program for both the cryptocurrency and digital security trading platforms, and is expected to launch the first mobile app for cryptocurrency trading in the next couple of weeks, further developing support for growth and revenues.
The pipeline of potential issuers of digital securities continues to develop as the company has received three signed engagement letters during this period and tens of new prospects looking for INX Digital's unique solutions for primary offering, token management services, secondary listing and trading.
Additionally, the company is gearing toward another significant milestone as INX Digital's OTC listing is anticipated in the coming weeks. This will allow INX Digital's followers in the United States to purchase the company's shares in addition to the INX Digital token, which is already available across all 50 states.
"The year has started out strong for INX with excellent momentum across all our business segments. Our performance for the quarter is a testament to the public's need and desire for a regulated environment for cryptocurrency and digital securities trading. The INX community has grown significantly as both token and equity holders join us in implementing our vision of a digital future. With multiple new hirings and considerable updates to our technology and capabilities, we continue to execute the objectives we have committed to and fulfill our mission of pioneering a new tokenized economy," said Shy Datika, chief executive officer.
About The INX Digital Company Inc.
The company is the holding company for the INX Group, which includes regulated trading platforms for digital securities and cryptocurrencies, combining traditional markets expertise and an innovative fintech approach. The INX Group's vision is to be the preferred global regulated hub for digital assets on the blockchain. The INX Group's overall mission is to bring communities together and empower them with financial innovation. Its journey started with its initial public token offering of the INX Digital token in which it raised $83-million (U.S.). The INX Group is shaping the blockchain asset industry through its willingness to work in a regulated environment with oversight from regulators like the SEC (Securities and Exchange Commission) and FINRA (Financial Industry Regulatory Authority).
In addition to operating two regulated trading platforms for blockchain assets, the company's interdealer broker, ILS Brokers, plans to offer non-deliverable cryptocurrency forward to Tier 1 banks in the future.
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