Neptune Announces Quarterly Results with 102% Increase in Gross Earnings over the Prior Quarter

May 02, 2022 7:00 AM EDT | Source: Neptune Digital Assets Corp

Vancouver, British Columbia--(Newsfile Corp. - May 2, 2022) - Neptune Digital Assets Corp. (TSXV: NDA) (OTC Pink: NPPTF) (FSE: 1NW) ("Neptune" or the "Company"), a blockchain technology and cryptocurrency leader in Canada, is pleased to announce that it has released its quarterly consolidated financial statements and management, discussion and analysis for the three and six months ended February 28, 2022.

Below are a number of financial highlights pertaining to the second quarter ending February 28, 2022 and for the period subsequent to year end up to the date of this news release.

  • Neptune earned $3,455,955 through Bitcoin mining and other income-generating activities during the three-month period ended February 28, 2022. This represents an increase of 102% over the prior quarter.

  • Neptune ended the quarter on February 28, 2022 with $62 million in assets and no debt. This equates to a slight decrease over the prior quarter due to cryptocurrency value fluctuation over the period. Neptune did not convert any cryptocurrency tokens into fiat currency with the exception of stable coins.

  • Total expenses for the six-month period were $1,255,808, including non-cash values of depreciation and foreign exchange loss.

  • Neptune's two largest digital asset holdings as of the date of this release are 194 Bitcoin and 152,964 ATOM.

  • The Company also holds positions in FTM, TSHARE, DOT, DASH, Tomb, ETH, BCH, LTC, and a number of other tokens of immaterial values, as well as an investment in the Protocol Crypto Quant Fund valued at $6 million and a current cash/USD-loans/stablecoin balance of $23million for strategic acquisitions, Bitcoin mining rig purchases and operations.

"In spite of a pullback in cryptocurrency values from the first quarter, Neptune had a strong second quarter with a doubling in gross earnings," stated Cale Moodie, Neptune CEO. "We have received another 53 petahash in mining rigs which are currently warehoused in the USA and those will be hashing as soon as possible. We hope to take advantage of any market weakness with our cashed-up balance sheet in terms of both rig acquisitions and general token purchases, all while appropriately managing market risk and exposure."

Certain information provided in this news release is extracted from auditor reviewed financial statements and ‎management, discussion and analysis for the second quarter ended February 28, 2022 that are filed under the ‎Company's profile on SEDAR and ‎should be read in conjunction with them. It is only in the context of ‎the information and disclosures ‎contained therein that an investor can properly analyze this ‎‎information. ‎

Operating and Financial Overview
 
 
($CAD)  
 
 
  For the six months ended  February 28, 2022
February 28, 2021 
   
 
 
  Mining revenue
765,632
-
  Mining expenses
(121,329)
-
  Other income*  4,397,369
140,153 
  Total earnings
5,041,672
140,153
   
 
 
  Depreciation**
419,504
-
  Stock based compensation**
184,214
1,300,683
  General expenses (recovery)
652,090
296,757
   
 
 
  Realized gain (loss) on settlements and sales
480,903
232,454
  Revaluation of digital currencies***
882,873
2,793,763
  Unrealized gain (loss) related to lending activities and short term investments
2,587,043
4,746,826 
  Comprehensive income for the period
7,736,683
6,315,756
Financial Position  
 
 
($CAD)  
 
 
   
 
 
  As at  February 28, 2022
August 31, 2021 
  Cash and cash loans
23,163,000
154,803
  Total digital assets
20,134,474
48,182,494
  Total other assets
18,803,034
6,338,384
  Total liabilities
273,013
769,083
  Total shareholders equity
61,827,495
53,906,598
  Working capital****
30,018,714
36,141,081
   
 
 
  * All non-Bitcoin mining revenue generating activities
 
  ** Non-cash items
 
 
  ***  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
  **** Current assets less current liabilities
 
 

 

About Neptune Digital Assets Corp.
Neptune Digital Assets (TSXV: NDA) is one of the first publicly-traded blockchain companies in Canada and is a cryptocurrency and blockchain infrastructure leader with operations across the digital asset ecosystem including Bitcoin mining, proof-of-stake mining, blockchain nodes, decentralized finance (DeFi), and other associated blockchain technologies.

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 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 include, but are not limited to, Company's operations and sustainable future profitability; potential further improvements to the profitability and efficiency across operations by optimizing cryptocurrency mining output, continuing to lower direct mining operations cost structure, and maximizing existing electrical and infrastructure capacity including with new mining equipment; continued adoption of cryptocurrency. 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 inherent risks involved in the cryptocurrency and general securities markets; the Company's ability to successfully mine digital currency; revenue of the Company may not increase as currently anticipated, or at all; 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/122339

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