TAAL Announces 2022 First-Quarter Financial Results
TORONTO, May 30, 2022 /CNW/ – TAAL Distributed Information Technologies Inc. (CSE: TAAL) (FWB: 9SQ1) (OTC: TAALF) (“TAAL” or the “Company”), a vertically integrated blockchain infrastructure and service provider for enterprise, announced today its financial results for the three months ended March 31, 2022 (“Q1 2022”). These filings are available for review on the Company’s SEDAR profile at www.sedar.com and on the Company’s website at www.taal.com/investors. All financial information in this press release is reported in Canadian dollars unless otherwise indicated.
Q1 2022 Highlights
- Gross revenue from hashing operations was $8.7 million, a $7.8 million increase from $0.9 million compared to the first quarter of the prior year (“Q1 2021“).
- Adjusted EBITDA was a loss of $0.9 million versus a loss of $3.5 million in Q1 2021.
- Cost of revenue was $5.0 million, compared to $0.6 million in the comparable quarter of the prior year.
- Income before operating expenses was $0.8 million, compared to $5.3 million in the comparable quarter or the prior year.
- Operating costs totaled $5.1 million, resulting in net positive income from operations.
Down payments for hashing equipment and hosting provider services exiting the quarter were $34.7 million.
- As of March 31, 2022, TAAL had about 23,000 BSV, 600 BCH and 0.5 BTC in coin treasury.
Operational Update and Q1 2022 Review
On January 1, 2022, TAAL welcomed Richard Baker as its new Chief Executive Officer. Under his leadership, the team has effectively navigated unprecedented global macro market pressures, geopolitical events in Europe with global impact, and the price decrease in coin markets, which in combination had material impacts for the Company.
In Q1 2022, TAAL processed a total of 232,801,287 Transactions in 9590 blocks on the BSV network. This is up from 18,382,371 transactions in 4270 blocks during Q1 2021.
During the quarter, the Company continued to monitor and assess the global situation involving Russia, where the Company owns and manages hashing operations. To date, operations have continued and the Company will update shareholders in the event of any significant developments. At the present time, TAAL’s operations in Russia are compliant with all international sanctions and are continuing, subject to ongoing risk management assessment.
The Company has been actively engaged in negotiations with several service providers in North America to host TAAL’s existing and future machine deployments and is positively progressing on these developments.
Throughout the quarter, TAAL continued to expand and focus its software development on enterprise blockchain infrastructure and software services. The launch of the TAAL Console platform and the TAAL API Transaction processing service is part of a corporate vision which reflects an anticipated paradigm shift in the blockchain industry, marked by a transition from a block rewards subsidy model to a transaction fee-based model as the prevailing profit model.
“During Q1 we experienced a significant level of uncertainty and change in our market. For the most part, these are global headwinds that out of our direct control, but that we must recognize and address responsibly with a focus on long term opportunities that will provide a sustainable future for TAAL,”
said Mr. Baker.
TAAL’s partner network has seen continued success as well. MusicArt, a unique NFT platform focused solely on celebrating music-based art and imagery and who offer exclusive pieces from art rock icons like Mike Dubois, (The Grateful Dead, The Allman Brothers Band, Fleetwood Mac, The Rolling Stones), Ioannis (Blue Oyster Cult, Deep Purple, Starship), and Karl Ferris (Eric Clapton, Cream, Jimi Hendrix). In addition, to reduce the risk of online crime, TAAL’s strategic partner Smartledger collaborated with CertiHash and IBM Consulting to develop a next-generation cybersecurity detection tool. This tool will decrease the overall time to identify a data breach from the average 212 days, significantly reducing the life cycle and total cost of a cyber-attack. For more examples of 30+ businesses building applications and services with TAAL, please visit our blog – https://www.taal.com/blog/category/use-cases/
Subsequent to quarter end, whilst we continue to see the depressed prices for the BSV, BTC and BCH coin markets, the net revenues generated from TAAL’s owned and managed hashing operations remain positive.
About TAAL Distributed Information Technologies Inc
TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications on the BSV platform, and developing, operating, and managing distributed computing systems for enterprise users. BitcoinSV Blockchain is the world’s largest public blockchain by all major utility metrics, data storage, daily transaction volume, scaling ability, and average block size.
For more information please visit – www.taal.com/investors
The CSE, nor its Regulation Services Provider, accepts no responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain statements included in this news release constitute “forward-looking information” as defined under applicable Canadian securities legislation. The words “will”, “intends”, “expects” and similar expressions are intended to identify forward-looking information, although not all forward-looking information will contain these identifying words. Specific forward-looking information contained in this news release includes but is not limited to statements regarding: the growth of TAAL’s treasury through, among other things, BSV hashing activities; TAAL’s future computing power and capacity; development plans for the New Brunswick facility, geopolitical risks to operations and TAAL’s business and strategic plans. These statements are based on factors and assumptions related to historical trends, current conditions and expected future developments. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. TAAL cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from expectations. Material risk factors include the future acceptance of Bitcoin SV and other digital assets and risks related to information processing using those platforms, the ability for TAAL to leverage intellectual property into viable income streams and other risks set out in TAAL’s Annual Information Form dated April 30, 2022, under the heading “Risk Factors” and elsewhere in TAAL’s continuous disclosure filings available on SEDAR at www.sedar.com. Given these risks, undue reliance should not be placed on the forward-looking information contained herein. Other than as required by law, TAAL undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.
SOURCE Taal Distributed Information Technologies Inc.
For further information: Media and Investor Contact: TAAL, Richard Baker, Chief Executive Officer, Office: (437) 826-8889, [email protected]; Sophic Capital, Sean Peasgood, President & Chief Executive Officer, Office: (437) 826-8889, [email protected]