The INX Digital Company Reports Q2 2024 Financial Results

TORONTO, Aug. 12, 2024 /CNW/ – The INX Digital Company, Inc. (Cboe CA: INXD) (OTCQB: INXDF) (INXATS: INX) (the “Company” or “INX”), the owner of INX.One, a security token and digital asset trading platform, a U.S. broker-dealer, an alternative trading system, a transfer agent, and an inter-dealer broker (through its subsidiaries), announced its financial results for Q2 2024.

The financial performance for the second quarter is outlined below, reflecting the company’s ongoing commitment to a solid and unleveraged financial structure, strategic growth, and innovation in the on-chain real world assets (RWA) market. All balances are in U.S. Dollars.

Q2 2024 Financial Highlights:

• Strong Balance Sheet Position: INX maintains a strong and unleveraged balance sheet with total adjusted working capital (excluding Reserve Fund and INX Token liability, which represents a non-cash fair value measured liability) of $17.8 million.
• Reserve Fund: A Reserve Fund of $34.3 million has been maintained, set aside for the protection of customer funds, independent of the company’s operating capital.
• Revenues: INX reported total revenues of $1.1 million in three months ended June 30, 2024, primarily derived from transaction and brokerage fees, a decrease from $1.6 million in three months ended June 30, 2023.
• Operational Loss: The net loss from operations for three months ended June 30, 2024 was $3.6 million compared to $4.0 million for the three months period ended June 30, 2023, an improvement of 11%.

Strategic Growth and Partnerships

INX remains committed to pioneering the digital asset space through strategic partnerships and product innovation. Key developments in Q2 2024 include:

• Tokenized Stock Listings with Backed Finance: INX strengthened its market position by partnering with Backed Finance to list tokenized stocks and other on-chain Real World Assets (RWAs) on INX.One platform, enabling investors to trade 24/7 tokenized versions of traditional assets.
• INX and Republic Partnership: English football team Watford FC launched its offering to sell 10% of the club to fans and other investors, in a rare example of a larger UK club selling a stake to supporters. The deal was sourced by INX and is available on Republic domain.
• Partnerships in the RWA space: INX continues to identify, nurture and form new strategic partnerships with relevant stakeholders to develop its on-chain Real World Assets (RWA) products portfolio available on INX.One.

Leadership and Strategic Vision

INX welcomed Michael Moro as the new Chief Strategy Officer (CSO) in June 2024. With his extensive experience in digital assets and capital markets, Michael is expected to drive significant growth and expand INX’s reach in the rapidly evolving digital asset landscape.

About INX:

INX provides regulated trading platforms for digital securities and cryptocurrencies. With the combination of traditional markets expertise and a disruptive fintech approach, INX provides state-of-the-art solutions to modern financial problems. INX is led by an experienced and dedicated team of business, finance, and technology veterans with the shared vision of redefining the world of capital markets via blockchain technology and a disciplined regulatory approach.

About The INX Digital Company, Inc.: INX is the holding company for the INX Group, which includes regulated trading platforms for digital securities and cryptocurrencies. The INX Group’s vision is to be the preferred global regulated hub for digital assets on the blockchain. The INX Group’s overall mission is to bring communities together and empower them with financial innovation. Our journey started with our initial public token offering of the INX Token in which we raised US$84 million. The INX Group is shaping the blockchain asset industry through its willingness to work in a regulated environment with oversight from regulators like the SEC and FINRA. For more information, please visit the INX Group website here.

Cautionary Note Regarding Forward-Looking Information and Other Disclosures

This press release contains statements that constitute “forward-looking information” (“forward-looking information“) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information. In disclosing the forward-looking information contained in this press release, INX has made certain assumptions, including with respect to, the continuous development of the INX trading platform, the completion of the transactions described herein, the offering of non-deliverable cryptocurrency forwards, and the development of the digital asset industry. Although INX believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that the expectations of any forward-looking information will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include but are not limited to regulatory developments, the state of the digital securities and cryptocurrencies markets, and general economic conditions. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Except as required by law, INX disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking information or otherwise.

SOURCE The INX Digital Company, Inc.