INX Digital Company, Inc. Reports Financial Results for 2022
The INX Digital Company, Inc. (NEO: INXD, OTCQB: INXDF, INXATS: INX) (the “Company” or “INX”), the owner of INX.One, security token and digital asset trading platform, a U.S. broker-dealer and an inter-dealer broker (through its subsidiaries), announced annual financial results as of December 31, 2022.
2022 Annual Financial Highlights
INX reported an annual net income of $208M ($1.02 EPS), which includes an unrealized gain on the INX Tokens issued of $226M and INX Token warrants of $8.3M. Under relevant accounting standards, INX Token and token warrants issued are recognized as a liability on the company’s balance sheet. The company’s adjusted net loss for 2022, excluding INX Token and token warrant liability, is $26M. The adjusted net loss is a non-IFRS measure. The company had cash and cash equivalents of $20M plus an additional $9.7M invested in short and mid-term duration U.S. treasury securities and investment-grade corporate bonds, resulting in a working capital of $26M. The company also reported a reserve fund set aside for the protection of customer funds and maintained in addition to operating funds at $36.0M. 2022 revenue was at $4.3M year, primarily from transaction fees, an increase in total revenue of 77 percent compared to 2021.
Noteworthy Steps and Milestones in 2022
The company launched INX.One, the world’s first fully regulated platform integrating cryptocurrency and SEC-registered security token trading, investment opportunities in primary security token offerings, and related capital raise services under a single platform available 24/7 to retail and institutional investors in the U.S. and globally. INX.One is integrated with multiple public blockchains through INX proprietary technology and is intended to be blockchain agnostic. Since the third quarter of 2022 and to date, INX has launched its capital raise services and brought four (4) primary offerings to market, which are available for investment exclusively on INX.One. INX also offers select digital assets and stablecoins for trading, investing, and funding of accounts, and continues to expand its money transmitter licenses and registrations, allowing the company to offer cryptocurrencies in 43 U.S. states and territories. In addition, the company announced a strategic partnership with SICPA, a global leader in authentication, revenue realization, and secure traceability solutions, to help governments develop innovative and sovereign central bank digital currency ecosystems.
INX CEO Shy Datika: We invest in a solid and secure democratization of finance.
INX CEO Shy Datika shared the company’s vision in the following statement: “We invest in a solid and secure democratization of finance. 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.”
The INX Digital Company, Inc. is leading the way in providing solid, sustainable solutions for the future, a critical, much-required effort in today’s climate. With its willingness to work in a regulated environment with oversight from regulators like the SEC and FINRA, and its commitment to providing a secure and safe harbor for customers, INX is well on its way to becoming the preferred global regulated hub for digital assets on the blockchain.
This blog post is intended to provide general information about investing in cryptocurrencies and is not intended to constitute financial advice. All investors should seek professional financial advice from a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies is a high risk investment and should only be done after you have researched the topic yourself and understand the risks associated with investing in such assets.