TORONTO, May 16, 2023 /PRNewswire/ -- The INX Digital
Company, Inc. (Cboe Canada: INXD, INXATS: INX, OTCQB:
INXDF) (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 first quarter financial results as of
March 31, 2023.
Investment gains/losses for any particular period are not
indicative of quarterly business performance. Earnings of The INX
Digital Company, Inc. for the first calendar quarter of 2023 are
summarized below.
2023 First Quarter Financial Highlights:
- Cash and cash equivalents of $18M
plus an additional $8.2M invested in
short and mid-term duration U.S. treasury securities and
investment-grade corporate bonds.
- Working capital of $24M.
- Reserve Fund set aside for the protection of customer funds and
maintained in addition to operating funds at $36.0M.
- Q1 2023 total revenue at $1.6M,
primarily from transaction and brokerage fees, an increase in total
revenue of one percent compared to Q1 2022 and an increase of 119
percent compared to Q4 2022.
- Q1 2023 net loss from operations of $4.5M.
INX reports a Q1 2023 net loss
of $675,000 ($0.00 EPS), which includes an unrealized
gain on the INX Tokens issued of $3.8M and INX Token
warrants of $0.2M. 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 Q1
2023, excluding INX Token and token warrant liability,
is $4.7M. The adjusted net loss is a non-IFRS measure.
Noteworthy steps and Q1 2023 milestones demonstrate the
accelerating adoption of security tokens and position INX as a
leader in the space
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.
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 and giving access to these investment
opportunities to investors globally.
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 raises via issuance of a security token and
brought five (5) primary offerings to market, which are available
for investment exclusively on INX.One. Following the initial
offering, the digital securities of these issuers are expected to
be offered to INXS customers for trading in the secondary market on
the regulated INX.One platform alongside the already actively
trading INX Token.
The primary offerings on INX.One now
include Trucpal, a digital financial and tax software
company for the 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, a platform offering digital trading cards
in talented individuals, based in Gibraltar, and the most recent addition of
XManna, a metaverse and web3 technology company focused on
expanding commerce and fan engagement in professional sports,
advertising and gaming, based in Florida, US.
In Q1 2023, INX also announced and issued the first security
token dividend distributed on blockchain to Trucpal Security Token
investors. The dividend was issued more than six months ahead of
the expected timeline.
The company continued to strengthen its compliance and
technology framework by reaching multiple meaningful milestones in
Q1 2023. The company completed its integration with the Polygon
blockchain during the quarter. INX.One can now support Polygon
blockchain-based tokens, alongside Ethereum and Avalanche, for
secondary listing on the company's platform.
In Q1 2023, the company also completed its AICPA SOC 2
certification of the trading system and data, a widely-recognized
auditing standard for service organizations through which the
security, integrity, and privacy of the company's systems were
validated.
Moreover, during the quarter, INX further expanded its money
transmitter licenses and registrations, allowing the company to
offer cryptocurrencies in 45 U.S. states and territories. INX.One
also continues to expand its offering globally, with over 160
countries supported on INX.One.
As the market for security tokens continues to grow and rapidly
expands across multiple asset classes gaining momentum among
institutions, the company invests significant resources into
educating investors and issuers globally to provide the required
clarity on the new technology and opportunities it enables.
INX CEO Shy Datika:
"During Q1 2023, 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. We are witnessing significant transitions in the
financial market, which we predicted and prepared for since INX's
establishment. The company has worked to create innovative
infrastructures and solutions for the digital economy. As our
actions during this latest quarter reveal, more and more businesses
turn to INX for new and better alternatives. We are at an
inflection point in the maturity of the digital economy and the
future of assets tokenization specifically, and we expect to lead
many more issuers and traders to the safe, secure, advanced
ecosystem we have built."
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 an 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 two regulated trading platforms 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 of 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.
Cboe Canada 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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