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.

DMG Blockchain's Logo

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.

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