INX Digital Company, the owner of INX.One, a comprehensive digital asset trading platform, reported its quarterly financial results as of September 30, 2023. The company, listed as NEO: INXD, OTCQB: INXDF, INXATS: INX, highlighted several financial and operational achievements in the third quarter.
Key Highlights:
- Financial Position:
- Operating cash and cash equivalents of $12.8 million.
- Additional $9.4 million invested in short and mid-term U.S. treasury securities and investment-grade corporate bonds.
- Strong and unleveraged balance sheet with a working capital of $22.7 million.
- Reserve Fund for customer fund protection maintained at $36.0 million.
- Revenue and Performance:
- Q3 2023 total revenue reached $1.3 million, primarily from transaction and brokerage fees.
- Year-to-date (YTD) revenue at $4.5 million, marking a 28% YoY increase from $3.5 million in 2022.
- Q3 2023 net loss from operations amounted to $4.7 million.
- INX Token and Adjusted Net Loss:
- Q3 2023 reported net loss of $13.6 million ($0.06 EPS), including an unrealized loss on INX Tokens issued of $9.2 million.
- Adjusted net loss, excluding the INX Token loss, is $4.4 million for Q3 2023 and $12.8 million YTD.
- Operational Milestones:
- INX focused on becoming a holistic solution for raising capital through SEC-regulated security tokens.
- Seven portfolio companies actively raising capital on the INX.One trading platform.
- Ongoing listing agreements with private companies for secondary market trading on INX.One.
- Strategic Partnership with Republic:
- Entered into a strategic collaboration with Republic, a global financial firm.
- Aims to expand tokenization infrastructure and access to digital assets globally.
- Completed integration with the Polygon blockchain, supporting trading in Ethereum, Avalanche, and Polygon-based tokens on INX.One.
- Technology Stack and Republic Integration:
- Significant expansion and readiness of the company’s technology stack.
- Preparing to integrate and list Republic’s security token (Republic Note) on INX.One.
- Republic Wallet integration expected to launch on INX.One by the end of 2023.
Commenting on the achievements, Shy Datika, INX CEO, emphasized the company’s dedication to the path of security token adoption. He highlighted the rapid expansion of the security token market across asset classes and its increasing appeal to traditional institutions. Datika noted the crucial steps taken by INX in recent years, positioning the company as a leader in the industry.
INX’s investments in global education, strategic partnerships, and technology infrastructure expansion reflect its commitment to realizing its full potential in the evolving digital securities landscape.
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