VANCOUVER, British Columbia, Dec. 21, 2023 (GLOBE NEWSWIRE) — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically integrated blockchain and cryptocurrency technology company, today announces its fourth quarter 2023 and full year ending September 30, 2023 audited financial results. All financial references are in Canadian Dollars unless specified otherwise.
Recent Highlights
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For full year 2023, DMG financial results were $27.9 million revenue, $16.5 million net loss (-$0.10 per share), $4.9 million positive operating cash flow
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DMG mined 878 bitcoin in 2023, up 12% from the prior year
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Strong balance sheet at financial year-end with $18.9 million in cash and digital currency, $82.6M of total assets
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Signed agreement with Bitmain Technologies to purchase its T21 bitcoin miners for up to 1 EH/s of new hashrate with expected shipment in the March 2024 quarter
DMG’s CEO, Sheldon Bennett commented, “While our financial year 2023 was filled with challenges for DMG and the cryptocurrency industry at large, we are encouraged by recent developments with the price of bitcoin up more than 2.5x from a year ago today, new Bitcoin blockchain use cases rapidly developing with the advent of Ordinals, BRC-20 and Runes as well as the potential approvals of spot Bitcoin ETFs in the US. We believe this emerging landscape creates an extraordinary opportunity for DMG in the future.”
Readers are encouraged to review the Company’s September 30, 2023 year-ended audited financial statements and management’s discussion and analysis thereof for a fulsome assessment of the Company’s performance and applicable risk factors, available at www.sedarplus.ca.
Financial Highlights
Revenue for the financial year ending September 30, 2023 was $27.9 million versus $43.2 million in the prior year period, a decrease of 35%, primarily due to a 32% decrease in the average price of bitcoin over the same period.
Revenue for the fourth quarter ending September 30, 2023 was $5.6 million versus $7.5 million in the prior quarter, a sequential decrease of 25%, and $6.5 million in the prior year period. The decline in revenues from the prior quarter was largely due to the Company’s 26% decrease in bitcoin production.
Income before other items for the year ending September 30, 2023 was negative $18.6 million versus positive $1.5 million in the prior year period.
Operating and maintenance costs for the year ended September 30, 2023 were $16.8 million as compared to $13.0 million for the year ended September 30, 2022. This increase was the result of a $3.4 million increase in utilities cost, driven by expanded digital currency mining operations. Operating and maintenance costs for the three months ended September 30, 2023 were $3.6 million as compared to $3.5 million in the same quarter in the prior year. The increase is a result of increases in utilities costs of $143 thousand, which is due to the increase in digital currency mining activity and the net increase in miners throughout the period.
Net loss for the year ending September 30, 2023 was $16.5 million, versus $17.0 million in the prior year period. Declines in revenue of $15.3 million as well as an increase in depreciation of $2.1 million and an increase in operating and maintenance costs of $3.8 million, partially offset by stock-based compensation, which declined by $1.3 million and research expense, which declined by $0.4 million. The decline in stock-based compensation was due to a lower weighted average grant date fair value of options issued. Lower research expenses were the result of a reduction in subscription costs, partially offset by higher wage expenses.
Earnings per share for the financial year ending September 30, 2023 was -$0.10 versus -$0.10 in the prior year period.
As at September 30, 2023, the Company had cash of $1.8 million, digital currency of $17.1 million and total assets of $82.6 million. For more details, please refer to the Company’s filings.
DMG Blockchain Solutions Inc. Fourth Quarter and Full Year 2023 Financial Results and Corporate Update Call
The Company also announces that it will host a conference call to review fourth quarter 2023 financial results and provide a corporate update on December 21, 2023, at 4:30 PM ET Participants are asked to pre-register for the call through this link. Registered participants will receive a Financial Results and Corporate Update Call weblink and dial-in information in their confirmation email.
As there will be no live Q&A session, management will address pre-submitted questions during the call. Those wishing to submit a question may do so via investors@dmgblockchain.com using the subject line ‘Conference Call Question Submission’ through…
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