Banxa Reports Audited Full Year 2022 Results
KEY FINANCIAL HIGHLIGHTS FY22
- 107% growth in Total Transaction Volume (TTV) to $AUD1.425 Billion ($USD964 Million), up $AUD737 Million ($USD497 Million)
- 56% growth in Revenue to $AUD71.6 Million ($USD48.3 Million), up $AUD25.6 Million ($USD17.3 Million)
- 24% growth in Gross Profit to $AUD20.8 Million ($USD$14 Million), up $AUD4 Million ($USD2.7 Million)
- Total comprehensive loss of $AUD16.6 Million ($USD11.5 Million), due to significant investment into expansion plans
TORONTO, April 14, 2023 (GLOBE NEWSWIRE) — Banxa Holdings Inc. (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) (“Banxa” or the “Company”), the leading on-and-off ramp solution for Web3, announces today its full audited financial reports for Australian fiscal year ending June 30th 2022. The full results including Management Discussion & Analysis (MD&A) are available on Sedar.
Domenic Carosa, Banxa Chairman, said: “We are pleased to announce the completion of our audited annual financial statements for the fiscal year ended June 30, 2022. Banxa has made significant strides in FY22 towards building a sustainable business for the long run, whilst also upgrading our financial reporting systems to keep up with the company’s growth. As a leading publicly traded company in the crypto industry, we remain committed to navigating the ever-expanding regulatory environment for crypto with transparency and compliance.
We recognize that delays in the audit process have been challenging for shareholders. Today’s announcement is an important milestone on our path to resume trading on the TSX Venture Exchange as soon as possible.
Looking ahead, we will continue to execute on our strategy for long-term growth, and we will share the progress we have made in fiscal year 2023 to-date in due course.”
Updates on FY23 results to date and path to profitability, proposed relisting plans and webinar date will be announced in the coming weeks.
FINANCIAL REVIEW
$AUD1.425 Billion ($USD964 Million) Total Transaction Value (TTV) for the fiscal year ending 30th June 2022 – up AUD$737 Million ($USD497 Million) or 107% year on year. The end of calendar year 2022 saw one of the largest bull markets in crypto to date, resulting in the explosion of volumes seen in the financial results.
Adjusted EBITDA ($AUD)
The following table shows a reconciliation of adjusted EBITDA to net loss before tax, the most comparable IFRS financial measure, for the three months and the years ended 30 June 2022 and 2021:
| Three months ended 30 June 2022 | Three months ended 30 June 2021 | Year ended 30 June 2022 | Year ended 30 June 2021 | |||||
| $ | $ | $ | $ | |||||
| Loss before tax | (8,529,885 | ) | (4,608,120 | ) | (17,041,897 | ) | (5,687,662 | ) |
| Amortization and depreciation | 141,948 | 13,657 | 454,970 | 39,075 | ||||
| Realised loss (gain) on fair value of deposits | 16,215 | 2,744,986 | (1,233,920 | ) | – | |||
| Unrealized loss (gain) on fair value of deposits | – | 975,829 | – | 975,829 | ||||
| (Gain) loss on fair value of derivative liability | 48 | 1,050,793 | 136,866 | 1,050,793 | ||||
| Share based compensation expense | 512,444 | 862,510 | 2,924,538 | 2,081,011 | ||||
| Finance expense | 8,444 | (48,055 | ) | 287,154 | 532,771 | |||
| Listing expense | – | – | – | 2,690,513 | ||||
| Adjusted EBITDA | (7,850,786 | ) | 991,600 | (14,472,289 | ) | 1,682,330 |
PROFIT AND LOSS STATEMENT ($AUD)
| Consolidated Statements of Profit or Loss and Other Comprehensive income | ||||
| For the years ended 30 June 2022 and 2021 | 30 June 2022 | 30 June 2021 | ||
| ($) | ($) | |||
| Revenue | 71,596,457 | 45,970,658 | ||
| Cost of sales | (50,758,136 | ) | (29,119,825 | ) |
| Gross profit | 20,838,321 | 16,850,833 | ||
| Employment expenses | (18,047,647 | ) | (7,266,313 | ) |
| Depreciation | (454,970 | ) | (39,075 | ) |
| General, administration and other | (13,304,500 | ) | (5,814,207 | ) |
| Share based compensation | (2,924,538 | ) | (2,081,011 | ) |
| Total operating expenses | (34,731,655 | ) | (15,200,606 | ) |
| Operating Income (loss) before other items and income tax | (13,893,334 | ) | 1,650,227 | |
| Other items | ||||
| Realised gain on fair value of deposits (treasury coins) | 1,233,920 | – | ||
| Unrealised loss on fair value of deposits (treasury coins) | – | (975,829 | ) | |
| Realised loss on fair value of derivative liability | (136,866 | ) | – | |
| Unrealised loss on fair value of derivative liability | – | (1,050,793 | ) | |
| Net foreign exchange losses | (4,202,131 | ) | (2,715,843 | ) |
| Other Income | 243,668 | 627,860 | ||
| Finance costs | (287,154 | ) | (532,771 | ) |
| Listing expenses | – | (2,690,513 | ) | |
| Total other items | (3,148,563 | ) | (7,337,889 | ) |
| Loss before tax | (17,041,897 | ) | (5,687,662 | ) |
| Income tax (expense) | (228,886 | ) | (140,454 | ) |
| Net loss for the year | (17,270,783 | ) | (5,828,116 | ) |
| Other comprehensive income | ||||
| Exchange differences on translation of foreign operations | 645,279 | 456,860 | ||
| Total comprehensive loss for the year | (16,625,504 | ) | (5,371,256 | ) |
| Basic loss per share | (0.38 | ) | (0.15 | ) |
| Diluted loss per share | (0.38 | ) | (0.15 | ) |
Highlights
- Revenue growth of $AUD25.6 Million ($USD17.3 Million) or 56% and Gross Profit growth of $AUD4 Million ($USD2.7 Million) or 24% driven by partner and user acquisition.
- Investment in building bespoke infrastructure to enter new geographical markets and market segments resulted in operating expenses increasing to $AUD34.7 Million.
- Total comprehensive loss for the year increased to $AUD16.6 Million due to the increase in operating expenses to expand into new markets.
- The Company implemented aggressive cost reduction measures in June 2022 to right size the business for the long term.
BALANCE SHEET ($AUD)
| Consolidated Statements of Financial Position | ||||
| As at 30 June 2022 and 2021 | 30 June 2022 | 30 June 2021 (Restated) | ||
| ($) | ($) | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 9,364,013 | 18,615,803 | ||
| Trade and other receivables | 2,766,934 | 5,502,432 | ||
| Inventories | 883,885 | 45,311 | ||
| Prepaids | 464,332 | 292,902 | ||
| Total current assets | 13,479,164 | 24,456,448 | ||
| Non-current assets | ||||
| Property, plant & equipment | 495,077 | 35,244 | ||
| Right-of-use assets | 763,399 | – | ||
| Goodwill | 151,643 | 151,643 | ||
| Other deposits – bank guarantee | 505,516 | 252,758 | ||
| Total non-current assets | 1,915,635 | 439,645 | ||
| Total assets | 15,394,799 | 24,896,093 | ||
| Liabilities | ||||
| Current liabilities | ||||
| Trade and other payables | 5,720,071 | 3,815,872 | ||
| Borrowings | – | 444,869 | ||
| Current tax liabilities | 355,310 | 255,431 | ||
| Provisions | 632,309 | 289,855 | ||
| Derivative liability | – | 1,127,457 | ||
| Lease liability – current | 354,348 | – | ||
| Total current liabilities | 7,062,038 | 5,933,484 | ||
| Non-current liabilities | ||||
| Provisions and other liabilities | 63,710 | 28,889 | ||
| Lease liability | 821,975 | – | ||
| Total non-current liabilities | 885,685 | 28,889 | ||
| Total liabilities | 7,947,723 | 5,962,373 | ||
| Net assets | 7,447,076 | 18,933,720 | ||
| Equity | ||||
| Issued capital | 23,128,075 | 20,913,753 | ||
| Contributed surplus | 11,619,713 | 8,695,175 | ||
| Foreign currency translation reserve | 1,156,524 | 511,245 | ||
| Accumulated losses | (28,457,236 | ) | (11,186,453 | ) |
| Total equity | 7,447,076 | 18,933,720 | ||
Highlights
- Liquid assets of $AUD9.3 Million ($USD6.4 Million) comprising cash, deposits and digital assets.
- No borrowings resulting in a debt free balance sheet.
- The reduction in liquid assets of $AUD9.3 Million ($USD6.3 Million) is largely driven by higher operating cash outflows in line with market expansion.
CONTACTS
Media:
Wachsman
Ethan Lyle
banxa@wachsman.com
ON BEHALF OF THE BOARD OF DIRECTORS
Per: “DOMENIC CAROSA” https://twitter.com/DomCarosa
Domenic Carosa = Chairman (1-888-218-6863)
dcarosa@banxa.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-looking Information and Statements
This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends”, “expects” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or will “potentially” or “likely” occur. This information and these statements, referred to herein as “forward‐looking statements”, are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the completion of the audit by the Company’s auditor, timing for the filing of the Annual Filings and interim financial statements by the Company; expected revenue; completion of the Company’s review of audit procedures needed to validate the accounting treatment of digital assets; and that the Company will satisfy the conditions of the BCSC to have the CTO lifted.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, risks related to the completion of the audit by the Company’s auditor within the timeframe expected by management, and risks relating to the filing of the Annual Filings and interim financial statements within the timeframe expected by management, risks relating to the BCSC’s removal of the CTO, and risks related to changes in general economic, business and political conditions, including changes in the financial markets, changes in applicable laws, and compliance with extensive government regulation, as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, assumptions regarding the completion of the audit by its auditor in a timely manner and the filing of the Annual Filings and interim financial statements by the Company in a timely manner; assumptions that the Company will satisfy the conditions of the BCSC to lift the CTO; revenue numbers will be reported as stated herein and that the Company will complete the review of audit procedures needed to validate the accounting treatment of digital assets.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
