Animoca Brands Annual Financial Report 2018

Key insights

7 takeaways

01
Consolidated revenue from operating activities rose to $12,769,667 in 2018 from $6,488,559 in 2017, and the report describes it as a record.See it on page 18
02
The Group reported a loss after income tax of $3,109,137 for 2018, including a one-off gain of $2,788,704 from the sale of mobile application games.See it on page 66
03
The auditor drew attention to a material uncertainty about the Company's ability to continue as a going concern, citing a net loss and an operating cash outflow of $3,340,400.See it on page 88
04
Management determined that Zeroth SPC is not consolidated, so the $1,592,723 of cash held there is excluded from the reported cash balance.See it on page 4
05
Cash and cash equivalents at 31 December 2018 were $7,662,353, up from $687,512 a year earlier.See it on page 34
06
Net cash used in operating activities fell to $3,340,400 from $7,687,097 in 2017.See it on page 37
07
Employee benefits expense included a $1,322,299 provision for milestone payments to TicBits founders, which the report says was tied to TicBits publishing two or more games.See it on page 68

Summary

Animoca Brands Corporation Limited, an ASX-listed (code AB1) mobile games developer with operations in Hong Kong, Finland, the USA, Canada and Argentina, reports its 2018 annual financial results for the year ended 31 December 2018. The Group develops and publishes mobile games and apps monetised through in-app purchases and advertising, and during 2018 it acquired Tribeflame, Fuel Powered, Pixowl and Venture Classic, and expanded into blockchain and AI. Audited by Grant Thornton, the report includes a material uncertainty related to going concern.

Consolidated revenue from operating activities was $12,769,667, up from $6,488,559 in 2017. The Group recorded a loss after income tax of $3,109,137 (2017: $8,047,840), including a $2,788,704 gain on the sale of mobile application games to iCandy. Net cash used in operating activities was $3,340,400, and cash and cash equivalents rose to $7,662,353 at year end. Total comprehensive loss was $2,933,982.

The report notes that Zeroth SPC was not consolidated, with $1,592,723 of cash held there excluded from the Group's cash figure. Subsequent events include a $12.6 million contract with Vigame to resell iClick advertising inventory and a global licensing agreement with Formula 1 for a blockchain game, with the first phase expected to be released in May 2019.