Neptune Announces Audited Annual Financials with $17.1m Comprehensive Net Income and 54% Asset Growth
Rhea-AI Summary
Neptune Digital Assets reported strong financial results for the fiscal year ended August 31, 2024. The company's assets grew 54% to $50.7 million with no debt, and achieved a comprehensive net income of $17.1 million, compared to a $3.4 million loss in the previous year. Mining revenues declined slightly to $1.8 million due to BTC halving, while staking revenues increased.
The company's portfolio includes 354 BTC, 32,100 SOL, 200,000 ATOM, and other cryptocurrencies. Neptune also holds 26,720 SpaceX shares valued at approximately $7.1 million, representing over 100% increase from 2023. With $4 million in cash reserves and pursuing up to $25 million USD in debt financing, Neptune is positioning for growth without shareholder dilution.
Positive
- Total assets increased 54% to $50.7 million with zero debt
- Achieved $17.1 million comprehensive net income vs $3.4 million loss previous year
- SpaceX investment doubled in value to $7.1 million
- Strong cash position of $4 million providing 2+ years operational runway
- Pursuing $25 million non-dilutive debt financing for growth
Negative
- Mining revenue declined 23% from $2.3M to $1.8M due to BTC halving
- Direct mining expenses remained high at $1.4M despite lower revenue
- General expenses of $2.36M exceeded total earnings of $1.59M
News Market Reaction
On the day this news was published, NPPTF gained 13.51%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - December 20, 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 that it has released its August 31, 2024 annual audited consolidated financial statements and management discussion and analysis.
Below are key financial and operational highlights for the fiscal year ended August 31, 2024, along with subsequent developments up to the date of this release.
Neptune ended the fiscal year on August 31, 2024, with
$50.7 million in assets and no debt, an increase of54% over the previous fiscal year.Neptune achieved a total comprehensive net income of
$17.1 million for the fiscal year ended August 31, 2024, a significant growth from a net comprehensive loss of$3.4 million in the prior year.Gross mining revenues experienced a slight decline from
$2.3 million to$1.8 million this year, primarily due to the halving event reducing BTC production.Staking revenues increased, driven by the growth in staked altcoin balances. As part of its staking growth strategy, Neptune acquired 26,964 Solana (SOL), a leading blockchain platform for high-performance decentralized applications. As of the date of this release, Neptune holds 32,100 SOL, with the majority of these holdings staked and generating consistent staking revenue.
As of the date of this release, Neptune's largest digital asset holdings include 354 BTC; 32,100 SOL; 200,000 ATOM; 663,000 FTM; 1.27 million GRT; 51,000 DOT; and 141 ETH. The Company also holds positions in DASH, JUNO, Ocean, and a number of other smaller market-cap tokens.
Neptune holds 26,720 SpaceX shares through two third-parties valued at approximately
$7.1 million at the date of this release, representing an increase of over100% from August 31, 2023.In addition to its other assets, Neptune holds a cash balance of
$4 million held with a tier 1 Canadian bank, providing sufficient funding to sustain operations for over two years of normal general and administrative costs.Neptune is on track to secure up to
$25 million USD in debt financing, creating opportunities for additional investments in crypto assets, derivative trading, and proof-of-stake operations without any dilution to shareholders.
"This year has been transformative for Neptune as we position ourselves at the forefront of the crypto bull market. By strategically rebalancing and leveraging our assets, we are seizing the opportunities presented by rising crypto prices. Our SpaceX investment has grown into a substantial asset, reflecting our commitment to forward-thinking investments with long-term potential. To fuel growth without diluting shareholder value, we are actively pursuing non-dilutive debt financing, enabling us to capitalize on this cycle's momentum. We deeply appreciate the loyalty of our shareholders through the crypto winter and are thrilled about the opportunities ahead as we gear up for what promises to be an exciting and profitable 2025," stated Cale Moodie, Neptune's CEO.
| Operating and Financial Overview | ||||||||
| ($CAD) | ||||||||
| For the year ended | August 31, 2024 | August 31, 2023 | ||||||
| Mining revenue | 1,759,107 | 2,289,376 | ||||||
| Staking revenue | 649,015 | 582,379 | ||||||
| DeFi revenue | - | 30,577 | ||||||
| Direct mining expenses (not incl depreciation) | (1,425,866 | ) | (1,928,490 | ) | ||||
| Other income* | 604,914 | 678,079 | ||||||
| Total earnings | 1,587,170 | 1,651,921 | ||||||
| Depreciation** | 284,724 | 518,922 | ||||||
| Stock based compensation** | 234,894 | 443,069 | ||||||
| General expenses | 2,358,266 | 2,615,296 | ||||||
| Recovery net of impairment | 308,160 | - | ||||||
| Realized gain on settlements and sales | 604,371 | (3,264,802 | ) | |||||
| Revaluation gain on digital currencies*** | 14,042,927 | 1,478,568 | ||||||
| Unrealized gain related to equity investments | 3,449,607 | 316,772 | ||||||
| Comprehensive income (loss) for the year | 17,114,351 | (3,394,828 | ) | |||||
| Financial Position | ||||||||
| ($CAD) | ||||||||
| As at | Saturday, August 31, 2024 | August 31, 2023 | ||||||
| Cash and receivables | 6,398,130 | 12,118,891 | ||||||
| Total digital assets | 31,288,165 | 12,946,322 | ||||||
| Total other assets | 13,004,152 | 7,870,310 | ||||||
| Total liabilities | 805,904 | 654,475 | ||||||
| Total shareholders' equity | 49,884,543 | 32,281,048 | ||||||
| Working capital**** | 11,714,173 | 14,538,573 | ||||||
| * All non-Bitcoin mining, non-Staking revenue, 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. 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 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234637
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