DMG Blockchain Posts Revenues Of $2.1 Million In Q4 2020
DMG Blockchain (TSXV: DMGI) last night filed its audited fourth quarter financial results last night, close to a month ahead of schedule. The company reported revenues of $7.4 million for the fiscal year, a decline from $10.1 million in the prior period, along with a net loss of $2.8 million, as compared to a loss of $7.8 million in the prior year.
While revenues were down on a year over year basis, revenues improved on a quarter over quarter basis, with the firm posting gross revenues of $2.1 million for the three month period, a significant increase from the $1.4 million posted in the third quarter.
Rather than posting a cost of goods sold however, the company elects to simply list its total expenses. Expenses for the quarter amounted to $2.5 million, which largely comprised of operating and maintenance costs of $1.8 million along with depreciation of $0.7 million. General and administrative expenses meanwhile amount to $0.1 million, while the company also booked a recovery of doubtful accounts of $0.1 million.
With little change under the other income segment of the statement of loss, the firm posted a net loss of $2.8 million for the fiscal year.
Looking to the balance sheet, DMG saw its cash position dwindle from $1.3 million to $1.1 million, while its receivables fell from $1.4 million to $1.3 million. Digital currencies were also down slightly, falling from $1.1 million to $1.0 million, while prepaids increased from $0.2 million to $0.3 million. Total current assets overall declined from $4.0 million to $3.8 million.
On the bright side however, the company saw its trade and other payables decline from $4.6 million to $4.1 million, while its current portion of loans payable declined from $2.7 million to $1.8 million, a significant fall. Total current liabilities as a result declined from $7.5 million to $6.1 million, a notable improvement for the firm.
Subsequent to the end of the quarter the company also saw notable cash infusions, with the firm raising $1.0 million via a private placement, as well as $0.5 million from the exercise of stock options. The company did however sell 1,240 miners for proceeds of US$3.4 million, which was used to settle certain outstanding loans.
DMG Blockchain last traded at $0.62 on the TSX Venture.
Information for this analysis was found via Sedar and DMG Blockchain Solutions. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
