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Vancouver, British Columbia--(Newsfile Corp. - March 25, 2023) - Neptune Digital Assets Corp. (TSXV: NDA) (OTC Pink: NPPTF) (FSE: 1NW) ("Neptune" or the "Company"), one of the first publicly traded blockchain companies in Canada, is pleased to announce that it has released its August 31, 2022 annual audited consolidated financial statements and management, discussion and analysis.

Below are a number of financial highlights pertaining to the August 31, 2022 year-end and for the period subsequent to year-end and up to the date of this news release.

Neptune ended the year on August 31, 2022 with $36.0 million in assets and no debt.

Neptune earned total revenues and other income of $7,405,529 through Bitcoin mining, staking, DeFi and other income-generating activities during the year.

Of the $18.9 million dollar net comprehensive loss for the year ended August 31, 2022, $16.3 million is related to a decrease in the fair values and impairments of underlying cryptocurrency assets and investments held and another $7.17 million related to a write-down in the value of mining rigs to fair market value.

Neptune mined $1,468,243 worth of Bitcoin up to August 31, 2022. As of the date of this release, Neptune had a total balance of 235 Bitcoin in cold storage and an additional 64 Bitcoin under chapter 11 claims with Genesis and Celsius, the outcome of those claims is currently unknown. Neptune currently does not sell its Bitcoin and all Bitcoin is now stored in cold storage.

Neptune's two largest digital asset holdings as of the date of this release are 235 BTC and 174,000 ATOM. The Company also holds positions in ETH, FTM, wMemo, DASH, Lif3, Tomb and a number of other tokens, as well as an investment in SpaceX valued at approximately $2 million USD.

Neptune has also started to slowly increase its holdings of artificial intelligence (AI) cryptocurrency assets, namely Graph (GRT) and OCEAN tokens.

Current cash balance is $12 million held with a tier 1 Canadian bank and another $4 million USD under Chapter 11 claim with Genesis Lending with the outcome currently unknown.

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"In spite of much of 2022 being a devastating year for most companies in the Bitcoin mining and crypto currency space, Neptune managed to grow our income substantially over the prior year. Much of our loss on the income statement relates to unrealized losses and changes in fair value of the underlying assets, fortunately when times are good those values will rise again," stated Cale Moodie, Neptune CEO. "We were very disappointed by the late filing of the financial statements, however industry changes and late-stage adjustments made the delays unavoidable. We hope to avoid this in the future and appreciate our shareholders patience through the last few months of financial reporting struggles. We are optimistic about 2023 and our focus in this volatile market will be to continue to grow cryptocurrency revenues and enhance our balance sheet. Even though the past year has been difficult for cryptocurrency, in addition to most asset classes and the overall global economy, we are more optimistic than ever of the long-term value of the cryptocurrency industry and Neptune."

Operating and Financial Overview

($CAD)

For the year ended

August 31, 2022

August 31, 2021

Mining revenue

1,468,243

358,701

DeFi revenue

2,725,607

-

Direct Mining expenses (not incl depreciation)

(484,272)

-

Other income*

3,211,679

1,707,142

Total earnings

6,921,257

2,065,843

Depreciation**

975,525

177,764

Stock based compensation**

184,214

5,589,958

General expenses

1,566,773

1,589,434

Impairments *****

(8,922,668)

-

Realized gain (loss) on settlements and sales

(214,563)

219,368

Revaluation of digital currencies***

578,679

6,515,064

Unrealized gain (loss) related to lending activities and investments

(14,575,447)

4,772,249

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Neptune Digital Assets Announces the Release of Audited Financial Statements with an 1069% Increase in Total Revenues over Prior Year - Yahoo Finance