Neptune Digital Assets Announces a Record Fiscal First Quarter with $13 Million in Comprehensive Income
Vancouver, British Columbia–(Newsfile Corp. – January 31, 2022) – Neptune Digital Assets Corp. (TSXV: NDA) (OTC Pink: NPPTF) (FSE: 1NW) (“Neptune” or the “Company“) is pleased to announce that it has released its November 30, 2021 quarterly consolidated financial statements and management, discussion and analysis for the three months ending November 30, 2021.
Below are a number of financial highlights pertaining to the first quarter ending November 30, 2021 and for the period subsequent to year end up to the date of this news release.
- Neptune ended the quarter on November 30, 2021 with $67 million in assets and no debt. This equates to an increase of 23% in asset value over August 31, 2021 year end.
- Neptune earned $1,707,046 through Bitcoin mining and other income-generating activities during the three-month period ending November 30, 2021.
- Total expenses for the three-month period were $193,308 or $64,436 per month.
- Subsequent to November 30, 2021 and up to the date of this release, Neptune earned an additional 35 Bitcoin, bringing the total Bitcoin balance to 160.
- 530 Bitcoin mining rigs, equating to 53 petahash, are expected to come online in the first calendar quarter of 2022 adding to the existing 22 petahash of capacity.
- Neptune’s two largest digital asset holdings as of the date of this release are 160 BTC and 151,000 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 $8.2 million at the end of November and a current cash balance of $23.1 million for strategic acquisitions, Bitcoin mining rig purchases and operations.
“Neptune had an amazing first quarter with a $12.6 million increase in assets on our balance sheet and $13 million in comprehensive income,” stated Cale Moodie, Neptune CEO. “We hope to see the general crypto space grow as we move forward into 2022 and our Bitcoin mining, staking, and DeFi earnings to increase accordingly as we grow those arms of the business. We anticipate another 53 petahash of mining capacity to come online in Q2 thus growing our Bitcoin earnings. We are staying true to our diversified model and will continue to manage our risk while maximizing our earnings across the board.”
Certain information provided in this news release is extracted from audited financial statements and management, discussion and analysis for the first quarter ended November 30, 2021 that are filed under the Company’s profile on SEDAR and should be read in conjunction with them. It is only in the context of the information and disclosures contained therein that an investor can properly analyze this information.
| Operating and Financial Overview | |||
| ($CAD) | |||
| For the three months ended | November 30, 2021 | November 30, 2020 | |
| Mining Revenue | 293,794 | – | |
| Other income* | 1,413,252 | 44,862 | |
| Total Earnings | 1,707,046 | 44,862 | |
| Depreciation** | 159,818 | – | |
| Stock based compensation** | 184,214 | 10,416 | |
| General expenses (recovery) | (150,724) | 105,008 | |
| Realized gain (loss) on settlements and sales | 367,633 | 1,810 | |
| Revaluation of digital currencies*** | 6,111,989 | 459,439 | |
| Unrealized gain related to lending activities and short term investments |
4,935,551 | (143,877) | |
| Comprehensive income for the period | 12,928,911 | 246,810 | |
| Financial Position | |||
| ($CAD) | |||
| As at | November 30, 2021 | August 31, 2021 | |
| Cash and cash loans | 27,269,572 | 154,803 | |
| Total digital assets | 22,335,525 | 48,182,494 | |
| Total other assets | 17,687,525 | 6,338,384 | |
| Total liabilities | 272,899 | 769,083 | |
| Total shareholders equity | 67,019,723 | 53,906,598 | |
| Working capital**** | 42,938,925 | 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 |
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| **** 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.
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