WonderFi Announces Q4 2022 Financial Results

Successfully Integrates Coinberry Acquisition and Acquires Blockchain Foundry

Vancouver, British Columbia–(Newsfile Corp. – November 11, 2022) – WonderFi Technologies Inc. (TSX: WNDR) (OTC: WONDF) (WKN: A3C166) (the “Company” or “WonderFi“) today announced its fourth quarter 2022 financial results for the period ended September 30, 2022. All financial references are in Canadian dollars unless otherwise noted.

Financial Highlights:

• Coinberry Limited (“Coinberry“) included in the Company’s consolidated results for the first time
• $450 million in total assets as of September 30, 2022, including $8.3 million in cash and $4.5 million in crypto assets and inventory, as well as $255 million of Assets Under Custody for customers

Operating Highlights:

• Closed Coinberry acquisition on July 4, 2022, and continuing to optimize Coinberry operations including strategic alignment of technology and resources
• Submitted NASDAQ listing application and filed SEC registration statement in the United States
• Filed a final short form base shelf prospectus with each of the Provinces of Canada to allow efficient access to Canadian capital markets
• Listed on the OTCQB Venture Market on August 17 2022, under stock symbol “WONDF”
• Partnered with AlpacaDB Inc. to offer fractional trading and investing in US stocks and exchange trade funds, anticipated in Q1 2023

Subsequent to September 30, 2022:

• Closed the acquisition of Blockchain Foundry Inc. (“BCF“) on November 7, 2022
• Announced expected launch of Bitbuy Staking on November 28, 2022, to allow Bitbuy users to leverage their crypto balances to earn crypto rewards through on-chain staking
• Resignation of Ben Samaroo as Chief Executive Officer effective as of October 24, 2022, and appointment of Dean Skurka, President of Bitbuy Technologies Inc. (“Bitbuy“), as President and Interim Chief Executive Officer of the Company

Summary of Financial Results for the Quarter ended September 30, 2022

The Company has changed its financial year-end from September 30th to December 31st. The Company operates through two reportable segments with three corporate subsidiaries: Decentralized Finance segment (“DeFi“) with WonderFi Technologies Inc., and Centralized Finance segment (“CeFi“) with Bitbuy and Coinberry.

Consolidated Revenues were $3.3 million and $6.5 million for the three and twelve months ended September 30, 2022, compared to $nil for the same three and twelve months ended period in 2021. Revenue in 2022 was entirely from CeFi operations.

The Company’s consolidated operating expenses were $14.7 million and $48.5 million for the three and twelve months ended September 30, 2022, respectively, compared to $4.0 million and $5.1 million for the three and twelve months ended September 30, 2021.

The operating expenses for DeFi were $6.1 million and $31.2 million for the three and twelve months ended September 30, 2022, and $4.0 million and $5.1 million for the three and twelve months ended September 30, 2021.

DeFi operating expense increase of $2.1 million for the three months ended September 30, 2022 compared to the three months ended September 30, 2021 was mainly due to $1.0 million increase in salaries and wages, $0.5 million increase in marketing for business expansion, $1.2 million increase in professional fees and consulting with $0.5 million paid by shares relating to the Coinberry acquisition, and $1.6 million increase in share-based payments, partially offset by $2.1 million decrease in one-off listing fees, mostly paid by shares, in the three months ended September 30, 2021.

The operating expenses for CeFi were $8.6 million and $17.3 million for the three and twelve months ended September 30, 2022, and $nil for the three and twelve months ended September 30, 2021. The operating expense increase was due to the acquisition of Bitbuy and Coinberry.

CeFi operating expenses of $8.6 million for the three months ended September 30, 2022 mainly included $3.3 million salaries and wages, $0.6 million marketing, $0.5 million bank and transaction fees, $0.9 million IT expenses, and $2.7 million amortization on the estimated intangible assets acquired with the Bitbuy acquisition.

Access to Financial Statements and Management Discussion and Analysis

Complete financial statements along with related management discussion and analysis can be found in the System for Electronic Document Analysis and Retrieval (“SEDAR“), the electronic filing system for the disclosure documents of issuers across Canada at www.SEDAR.com.

Additional Information
For additional information, please contact:

WonderFi Technologies Inc.
Dean Skurka, President and Interim Chief Executive Officer dean@bitbuy.ca

Investor Relations Contact: invest@wonder.fi

Media Contact:
Binu Koshy, Communications Director
binu@wonder.fi

ABOUT WONDERFI

WonderFi is a leading technology company with the mission of creating better, unified access to digital assets through centralized and decentralized platforms. WonderFi’s executive team and Board of Directors have an established track record in finance and crypto. WonderFi’s core team of engineers and technologists believe that everyone should have equal access to finance and are aligned in the mission to empower people around the world to access finance in a simple, smart and secure way. For more information, visit www.wonder.fi.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, or variations of such words.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the ability of the Company to work effectively with strategic investors; and changes in general economic, business and political conditions, including changes in the financial markets, changes in applicable laws, and compliance with extensive government regulation. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein. A more fulsome description of risk factors that may impact our business, financial condition and results of operation is set out in our management’s discussion and analysis and financial statements for the for the period ended September 30, 2022, as well as our annual information form, available on SEDAR.

Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

The Toronto Stock Exchange has not approved or disapproved of the information contained in this release.

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