TAAL ANNOUNCES 2022 THIRD-QUARTER FINANCIAL RESULTS
Toronto, Ontario; November 10, 2022 – 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, announces its financial results for the three and nine months ended September 30, 2022 (“Q3 2022”). Financial statements 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.
Q3 2022 Financial Highlights
- Gross revenue from hashing operations was $4.4 million, an $8.0 million decrease from $12.4 million in the third quarter of the prior year (“Q3 2021”). Gross revenue decrease was due to lower BSV prices during Q3 2022 that were approximately one third of those in Q3 2021.
- Adjusted EBITDA was a loss of $4.2 million versus earnings of $3.9 million in Q3 2021.
- Cost of revenue was $4.6 million, up from $4.4 million in Q3 2021, due to more Blockchain Computing Units in operation at third-party hosting facilities and depreciation on the additional machines.
- Loss before operating expenses was $678 thousand versus earnings of $7.0 million in Q3 2021.
- Operating loss was $4.9 million in Q3 2022 versus earnings of $2.1 million in Q3 2021.
- Total comprehensive loss for Q3 2022 was $5.2 million versus $2.3 million of income in Q3 2021.
- As of September 30, 2022, TAAL had approximately 65,237 BSV, 14,852 BCH and 5.39 BTC in coin treasury.
- As of September 30, 2022, TAAL had $8.1 million of cash, $7.0 million in digital assets, and $14.1 million of working capital.
Q3 2022 Operational Highlights
- August 30: Announces the transition to a Metanet Services Provider to help enable the next generation of global data commerce.
- July 11: Sign hosting agreement to bring 3,000 machines representing 300 petahash/second online in the U.S. by Q4, powered by clean energy.
- July 13: Complete an agreement to bring 100 petahash/second of computing power online by acquiring 968 Bitmain S19J Pro machines and host them at a facility in New Mexico.
“We’re pleased with the expansion of our blockchain computing equipment, which currently operates at 550 petahash/second of computing power that underpins the Metanet services offering for our international client base,”
said Richard Baker, CEO.
“Post quarter end, the Company’s biggest announcement was our go-private transaction, which should help provide us more flexibility and options. TAAL’s board believes this go-private transaction represents the best path forward for the Company and our Shareholders. Should investors have any questions, we encourage them to reach out to the Company as well as our investor relations team.”
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
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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: completion of the transaction, the future demand for Metanet Services, the Company’s future services offerings, TAAL’s future computing power and capacity; development plans and redeployment of activities in North America, 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 March 31, 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.
For further information contact:
Media and Investor Contact
Chief Executive Officer
Office: (437) 826-8889
Office: (437) 826-8889