TORONTO, Nov 14, 2022— The INX Digital Company, Inc. (NEO:INXD, OTCQB:INXDF, INXATS:INX) (the “Company” or “INX”), the owner of digital asset trading platforms, a broker-dealer, and an inter-dealer broker (through its subsidiaries), announced financial results for its third quarter ended September 30, 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 Q3 Financial Highlights:
Cash and cash equivalents of $25.8M and an additional $8.7M in short and long-term investments. Approximately 95% of the short and long-term investments are held in U.S. Government Treasury instruments and investment-grade corporate bonds.
Reserve fund maintained at $36.0M.
INX Revenue for Q3 2022 is at $1.1M and $3.5M year to date, primarily from transaction fees.
Year-to-date net cash used in operating activities is $17.8M.
INX reports a quarterly loss of $10.1M, which includes an unrealized loss of $5.3M from the issued INX Token, a loss on the token warrant liability of $0.4M, and an income of $0.4M from the fair value adjustment for the above-mentioned non-cash item as well as one-time items. The company’s adjusted net loss for Q3 2022 is $4.8M. The adjusted net loss is a non-IFRS measure.
Noteworthy steps and milestones in Q3 are expected to lead the company forward
During the third quarter of 2022, the Company has taken significant actions to put in place innovative technology that allow the pioneering of a new and responsible digital economy. In addition, it forged new and strategic global partnerships and multiple initiatives to expand the Company’s services and outreach and promote brand recognition and drive future revenues.
The Company reached a major milestone at the end of this quarter when it launched
INX ONE, the world’s first fully regulated platform integrating cryptocurrency and security token trading, investment opportunities in primary security token offerings, and capital raise services. The WSJ noted that INX’s breakthrough platform is aligned with the envisioned model of SEC’s chairman.
To promote its vision of a true democratization of finance, the Company has opened its shares to global investors by commencing trading on the OTC Markets (“INXDF”); it now provides convenient access to millions of U.S. investors and gives institutional and retail investors worldwide the opportunity to trade INX shares on additional platforms.
INX has also launched its capital raise services with its first global issuer. The Company’s platform facilitates the Trucpal Digital Security Token offering for accredited U.S. and non-U.S. investors. This is the first digital security token for the Chinese freight market, enabling people worldwide to potentially earn a portion of future profits and dividends.
The Millennium Sapphire (“MSTO”) Token was also added for secondary market trading on INX’s ATS. Token holders are entitled to receive dividends from Millennium’s NFT Studio.
During the third quarter of 2022, two additional cryptocurrency assets (Compound and Aave) were added to the Company’s cryptocurrency exchange. As part of INX’s mission to provide investment opportunities to all, it has also accumulated additional money transmitter licenses, allowing the company to offer cryptocurrencies in 43 U.S. states and territories. The cryptocurrency exchange is also available to customers in over 120 countries.
Since its establishment, the company has always taken bold steps to design and develop new safe and reliable paths that advance the transition from a traditional to a digital economy. This past quarter, the Company welcomed to our board two new financial leaders who themselves made the transition from traditional to digital and will therefore guide and assist in promoting INX’s mission.
As the Company continues to expand, it is expanding its team of professionals. During this last quarter, the Company hired a new Global General Counsel to play a significant role in achieving INX’s global goals.
INX CEO Shy Datika: We are here for the long run. 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$83 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: [email protected]
For more information, contact:
Liz Whelan
[email protected]
(312) 315-016
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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding THE INX DIGITAL COMPANY, INC.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to THE INX DIGITAL COMPANY, INC.s industry; (b) market opportunity; (c) THE INX DIGITAL COMPANY, INC.’s business plans and strategies; (d) services that THE INX DIGITAL COMPANY, INC. intends to offer; (e) THE INX DIGITAL COMPANY, INC..’s milestone projections and targets; (f) THE INX DIGITAL COMPANY, INC.’s expectations regarding receipt of approval for regulatory applications; (g) THE INX DIGITAL COMPANY, INC.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) THE INX DIGITAL COMPANY, INC.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute THE INX DIGITAL COMPANY, INC.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) THE INX DIGITAL COMPANY, INC.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) THE INX DIGITAL COMPANY, INC.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) THE INX DIGITAL COMPANY, INC.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of THE INX DIGITAL COMPANY, INC. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) THE INX DIGITAL COMPANY, INC.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact THE INX DIGITAL COMPANY, INC.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing THE INX DIGITAL COMPANY, INC.’s business operations (e) THE INX DIGITAL COMPANY, INC. may be unable to implement its growth strategy; and (f) increased competition.
Except as required by law, THE INX DIGITAL COMPANY, INC. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does THE INX DIGITAL COMPANY, INC. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither THE INX DIGITAL COMPANY, INC. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of THE INX DIGITAL COMPANY, INC. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of THE INX DIGITAL COMPANY, INC. or such entities and are not necessarily indicative of future performance of THE INX DIGITAL COMPANY, INC. or such entities.
