TORONTO, March 31, 2023 /PRNewswire/ -- The INX Digital
Company, Inc. (NEO: INXD, OTCQB: INXDF, INXATS: INX) (the "Company"
or "INX"), the owner of INX.One, security token and digital asset
trading platform, a U.S. broker-dealer and an inter-dealer broker
(through its subsidiaries), announced annual financial results as
of December 31, 2022.
Investment gains/losses for any particular period are not
indicative of quarterly business performance. Earnings of The INX
Digital Company, Inc. for the third quarter of 2022 are summarized
below.
2022 Annual Financial Highlights:
- Cash and cash equivalents of $20M
plus an additional $9.7M invested in
short and mid-term duration U.S. treasury securities and
investment-grade corporate bonds.
- Working capital of $26M.
- Reserve Fund set aside for the protection of customer funds and
maintained in addition to operating funds at $36.0M.
- 2022 revenue at $4.3M year,
primarily from transaction fees, an increase in total revenue of 77
percent compared to 2021.
- 2022 net loss from operations of $16M.
INX reports an annual net income of $208M ($1.02 EPS),
which includes an unrealized gain on the INX Tokens issued of
$226M and INX Token warrants of
$8.3M. Under relevant accounting
standards, INX Token and token warrants issued are recognized as a
liability on the company's balance sheet. The company's adjusted
net loss for 2022, excluding INX Token and token warrant liability,
is $26M. The adjusted net loss is a
non-IFRS measure.
Noteworthy steps and milestones in 2022 are expected to lead
the company forward
During 2022, the company has taken significant actions to put in
place innovative technology that allow the pioneering of a new and
responsible digital economy. Management focused on forging new and
strategic global partnerships and advancing multiple initiatives to
expand the company's services, promote brand recognition and drive
future revenues.
The company reached a major milestone when it launched INX.One,
the world's first fully regulated platform integrating
cryptocurrency and SEC-registered security token trading,
investment opportunities in primary security token offerings, and
related capital raise services under a single platform available
24/7 to retail and institutional investors in the U.S. and
globally. INX.One is integrated with multiple public blockchains
through INX proprietary technology and is intended to be blockchain
agnostic.
INX's main focus remains on creating a go-to holistic solution
for founders and corporate partners to raise capital utilizing
SEC-regulated security tokens.
Taking advantage of the path created by the issuance of the INX
Token, since the third quarter of 2022 and to date, INX has
launched its capital raise services and brought four (4) primary
offerings to market, which are available for investment exclusively
on INX.One.
It includes Trucpal, a digital financial and tax software
company for logistics-industry-based in China; Advent Entertainment, an
entertainment, gaming, and virtual reality company based in
Utah, US; Treasure
Experience, a virtual marine exploration and treasure hunting
company based in Florida, US; and
TurnCoin, digital trading cards in talented individuals
trading platform company, based in Gibraltar. After the
completion of the primary raises, security tokens in these entities
and projects will be listed on INX.One for trading in the secondary
market.
In addition, during 2022, the Millennium Sapphire ("MSTO") Token
was also added for secondary market trading on INX.One. Token
holders are entitled to receive dividends from Millennium's NFT
Studio.
Within the cryptocurrency offering, the company offers select
digital assets and stablecoins for trading, investing, and funding
of accounts. Moreover, the company continues to expand its money
transmitter licenses and registrations, allowing the company to
offer cryptocurrencies in 43 U.S. states and territories. INX.One
also continues to expand its offering to over 160 countries
globally.
The company continues to lead in providing solid, sustainable
solutions for the future, a critical, much-required effort in
today's climate.
In December 2022, the company
announced a strategic partnership with SICPA, a global leader in
authentication, revenue realization, and secure traceability
solutions, to help governments develop innovative and sovereign
central bank digital currency ecosystems. The joint venture,
incorporated in Switzerland,
combines both blockchain-based infrastructure and digital cash
technologies to address the key requirements for Central Bank
Digital Currencies, including privacy, security, financial
inclusion, resilience, and more - paving the way for the
development and launch of a secure and scalable environment for all
central banks to deploy digital currencies.
As INX predicted, security tokens are beginning to transform the
ownership and trading of assets. The company is geared to provide a
secure alternative in its multiple uses, such as recovery security
tokens, digital bonds, and tokenized shares. As the market for
security tokens continues to grow and rapidly expand across
multiple blockchains, the company put efforts and resources into
educating people worldwide to provide the required clarity of the
new standard.
To execute the long-term vision, during 2022, the company
strengthened its senior global leadership by filling a key role
within the company, the Chief Financial Officer, who plays a
strategic role in advancing the company's vision and navigating the
current market and regulatory environment. The company also
expanded its Board of Directors to include two global financial
leaders, who themselves made the transition from the traditional to
the digital economy and will therefore guide and assist in
promoting INX's mission.
INX CEO Shy Datika: We invest in a solid and secure
democratization of finance.
Five years ago, we chose what we knew was right for our future
customers—the path that would keep them safe while providing them
with a wealth of opportunities.
We knew it would be a bumpy ride and came prepared to realize our
forward-looking vision.
The INX way, yet again, proved to be the right one. As industry
giants are challenged by regulators, we have armed ourselves with
regulations. As investors become more aware and more concerned with
the pitfalls of unregulated trading platforms, we can provide a
secure and safe harbor. INX puts customers first! We have a fully
audited and segregated cash reserve fund as described in our INX
Token F-1 prospectus. We maintain 1:1 balances for customers and do
not use customer assets. We do not, in any way, shape, or form,
leverage or re-invest customer assets. On our INX Securities ATS,
customers get full transparency as they control their assets, their
keys, and their wallets. We will continue developing new services
and technologies to further expand opportunities while keeping our
clients safe.
About INX:
INX provides a regulated trading platform for digital securities
and cryptocurrencies. With the combination of traditional
markets expertise and a disruptive fintech approach, INX provides
state-of-the-art solutions to modern financial problems. INX is led
by an experienced and dedicated team of business, finance, and
technology veterans with the shared vision of redefining the world
of capital markets via blockchain technology and innovative
regulatory approach.
About The INX Digital Company, Inc. INX 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. Our journey started with our initial public
token offering of the INX Token, in which we raised US$84 million.
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 and FINRA.
In addition to operating a regulated trading platform for
blockchain assets, INX's interdealer broker, I.L.S. Brokers, plans
to offer non-deliverable cryptocurrency forwards to Tier-1 banks in
the future. For more information, please visit the INX Group
website here.
Cautionary Note Regarding Forward-Looking Information and
Other Disclosures
This press release contains statements that constitute
"forward-looking information" ("forward-looking information")
within the meaning of the applicable Canadian securities
legislation. All statements, other than statements of historical
fact, are forward-looking information and are based on
expectations, estimates, and projections as at the date of this
news release. Any statement that discusses predictions,
expectations, beliefs, plans, projections, objectives, assumptions,
future events or performance (often but not always using phrases
such as "expects", or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "budget",
"scheduled", "forecasts", "estimates", "believes" or "intends" or
variations of such words and phrases or stating that certain
actions, events or results "may" or "could", "would", "might" or
"will" be taken to occur or be achieved) are not statements of
historical fact and may be forward-looking information. In
disclosing the forward-looking information contained in this press
release, INX has made certain assumptions, including with respect
to, the continuous development of the INX trading platform, the
offering of non-deliverable cryptocurrency forwards, and the
development of the digital asset industry. Although INX believes
that the expectations reflected in such forward-looking information
are reasonable, it can give no assurance that the expectations of
any forward-looking information will prove to be correct. Known and
unknown risks, uncertainties, and other factors which may cause the
actual results and future events to differ materially from those
expressed or implied by such forward-looking information. Such
factors include but are not limited to regulatory developments, the
state of the digital securities and cryptocurrencies markets, and
general economic conditions. Accordingly, readers should not place
undue reliance on the forward-looking information contained in this
press release. Except as required by law, INX disclaims any
intention and assumes no obligation to update or revise any
forward-looking information to reflect actual results, whether as a
result of new information, future events, changes in assumptions,
changes in factors affecting such forward-looking information, or
otherwise.
The NEO Exchange is not responsible for the adequacy or
accuracy of this press release.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the U.S. Securities
Act or any state securities laws and may not be offered or sold
within the United States or to
U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
For further information, contact:
The INX Digital
Company, Inc.
Investor Relations
+1 855 657 2314
Email: investorrelations@inx.co
For more information, contact:
Liz Whelan
liz@lwprconsulting.com
(312) 315-0160
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