Neptune Digital Assets Announces $6.4 Million Comprehensive Net Income for Q1 2024
Vancouver, British Columbia–(Newsfile Corp. – January 29, 2024) – 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 condensed consolidated interim financial statements and management discussion and analysis for the three months ended November 30, 2023.
The financial highlights for the three months ended November 30, 2023 and the period subsequent to quarter-end up to the date of this news release are as follows.
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Neptune ended Q1 on November 30, 2023 with $39 million in assets and no debt, underscoring its robust financial standing.
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Neptune earned gross mining revenue and other income of $863,628 through Bitcoin mining, staking, interest and other income-generating activities during the three-month period ended November 30, 2023 based on prevailing crypto prices during the period.
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Neptune mined $523,028 worth of Bitcoin during the three-month period ended November 30, 2023. As of the date of this release, Neptune has a total balance of 335 Bitcoin in cold storage. Neptune presently retains all of its Bitcoin in cold storage and does not engage in active selling.
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Neptune’s two largest digital asset holdings as of the date of this release are 335 BTC and 175,000 ATOM. The Company also holds positions in ETH, DOT, SOL, DASH , GRT, OCEAN and a number of other tokens, as well as an investment in SpaceX valued at approximately $3.52 million.
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Neptune currently maintains a cash and short-term investment balance of $10.1 million held with tier-1 Canadian banks and is well-positioned to grow its operations for six years or more without the need for additional capital, demonstrating its financial stability and prudent cash management.
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Subsequent to the end of the period on January 15, 2024, Neptune settled outstanding litigation with Green Block Mining (formerly Link Global). Green Block agrees to pay $1.53 million to Neptune in cash and/or shares by June 15, 2024
“We are excited to be entering the final months before the halving and expect the unique economics built into the Bitcoin algorithm to play out favourably in the crypto capital markets. We remain conservative and cautious in the short term, however, very optimistic about the long term performance of the space. Our costs remain low and our Bitcoin balance is growing steadily through both proof-of-work and proof-of-stake operations. We were pleased to see a nice jump in SpaceX value and some of the altcoins that we diligently stake,” stated Cale Moodie, Neptune’s CEO.
| Operating and Financial Overview | |||||||
| ($CAD) | |||||||
| For the three-month period ended | November 30, 2023 | November 30, 2022 | |||||
| Mining revenue | 523,028 | 580,343 | |||||
| DeFi revenue | – | 10,977 | |||||
| Direct Mining expenses (not incl depreciation) | (499,295 | ) | (402,812 | ) | |||
| Other income* | 340,600 | 493,887 | |||||
| Total earnings | 364,333 | 682,395 | |||||
| Depreciation** | 76,394 | 129,636 | |||||
| Stock based compensation** | – | 443,069 | |||||
| General expenses | 402,165 | 1,014,330 | |||||
| Impairments | – | (183,168 | ) | ||||
| Realized gain (loss) on settlements and sales | (40,557 | ) | 962,039 | ||||
| Revaluation gain (loss) on digital currencies*** | 6,003,716 | (693,503 | ) | ||||
| Unrealized gain (loss) related to lending activities and investments | 581,839 | (232,718 | ) | ||||
| Comprehensive income (loss) for the period | 6,430,772 | (1,051,990 | ) | ||||
| Financial Position | |||||||
| ($CAD) | |||||||
| As at | November 30, 2023 | August 31, 2023 | |||||
| Cash and receivables | 11,020,476 | 12,118,891 | |||||
| Total digital assets | 19,648,250 | 12,946,322 | |||||
| Total other assets | 8,375,755 | 7,870,310 | |||||
| Total liabilities | 332,661 | 654,475 | |||||
| Total shareholders equity | 38,711,820 | 32,281,048 | |||||
| Working capital**** | 14,343,811 | 14,538,573 | |||||
| * All non-Bitcoin mining and non-DeFi revenue generating activities | |||||||
| ** Non-cash items, including depreciation of mining rigs | |||||||
| *** Revaluation is calculated as the change in value (gain or loss) on digital currencies. When digital currencies are sold, the net difference between the proceeds received and the cost of the digital currencies determined on a First-in, First-out basis, 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 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 X (@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.
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