Financial Performance - Total revenues for Q3 2025 reached $22,527,831, a decrease of 20.5% compared to $28,152,839 in Q3 2024[4] - The company reported a net income of $3,935,906 for Q3 2025, down from $15,445,688 in Q3 2024, reflecting a decline of 74.5%[4] - Basic earnings per share for Q3 2025 were $0.01, down from $0.05 in Q3 2024, a decrease of 80%[4] - For the nine months ended September 30, 2025, DeFi Technologies reported a net income of $32,647,548 compared to a net loss of $3,906,181 for the same period in 2024, indicating a significant turnaround in performance[5]. - The company achieved a net income and comprehensive income of $33,790,050 for the nine months ended September 30, 2025, compared to a net loss of $5,297,555 for the same period in 2024[8] Assets and Liabilities - Total current assets rose to $948,395,427 as of September 30, 2025, up from $710,993,671 at the end of 2024, marking an increase of 33.5%[3] - The total liabilities increased to $1,084,042,494 as of September 30, 2025, compared to $899,447,480 at the end of 2024, an increase of 20.5%[3] - The company’s total equity increased to $117,717,967 as of September 30, 2025, compared to $19,144,197 at the end of 2024, reflecting a growth of 515.5%[3] - As of September 30, 2025, the company reported a working capital deficiency of $132,955,851, an improvement from a deficiency of $188,453,809 as of December 31, 2024[8] - The company has cash reserves of $119,541,083 as of September 30, 2025, significantly up from $15,931,525 as of December 31, 2024[8] Digital Assets - Digital assets held increased significantly to $445,126,641 as of September 30, 2025, compared to $276,853,787 at the end of 2024, representing a growth of 60.7%[3] - The fair value of the company's digital assets increased to $789,254,841 as of September 30, 2025, from $555,838,900 on December 31, 2024[53] - The company’s total digital asset holdings as of September 30, 2025, include a diverse range of cryptocurrencies, with significant increases in value for several key assets[55] - Digital assets loaned surged to $163.45 million compared to $38.62 million in the previous year, marking an increase of 323.5%[57] - The company has loaned digital assets with a fair value of $232,654,637 as of September 30, 2025, compared to $38,618,758 as of December 31, 2024, indicating a substantial increase of approximately 503.5%[64] Investments and Acquisitions - The company engaged in acquisitions, including Neuronomics, which contributed to the increase in total equity and diversification of its asset portfolio[6]. - The Company invested $61,741,683 in Fund A, acquiring 491,249 Solana at $105 each and 931,446 Avalanche at $11 each during 2024[70] - The acquisition of Reflexivity LLC on February 6, 2024, involved issuing 5,000,000 common shares valued at $2,450,000, with total net assets acquired also valued at $2,450,000[78][79] - The Company increased its stake in Neuronomics AG from 10% to 52.5% after an investment of $288,727, with additional cash considerations of $816,372 and shares valued at $442,722[87][88] - The Company received a distribution of $71,685,819 from Fund B in July 2025[76] Shareholder Equity and Stock Options - The company issued 45,662,101 units in a private placement at $2.19 per unit, generating gross proceeds of $100,000,001 on September 26, 2025[114] - As of September 30, 2025, the total number of issued and outstanding shares increased to 384,375,991, with a total share capital amounting to $220,088,856[109] - The Company recorded an estimated fair value of $1,784,168 for 500,000 stock options that were cancelled due to a failed merger and acquisition transaction[136] - The Company granted 1,200,000 stock options to various consultants at an exercise price of CAD$4.52, with an estimated grant date fair value of $3,591,500[121] - The Company recorded $6,528,831 in share-based compensation related to Deferred Share Units (DSUs) during the nine months ended September 30, 2025, compared to $5,774,343 for the same period in 2024, representing an increase of approximately 13.1%[151] Market and Currency Risks - The company does not engage in any hedging activities to mitigate currency risk, which primarily arises from fluctuations in the Canadian dollar, Euro, Swiss Franc, Swedish Krona, and British Pound[163] - A 10% increase in the value of the US dollar against all foreign currencies would result in an estimated increase in net income of approximately $5,069,000 as of September 30, 2025[164] - A 1% change in interest rates could result in an approximate $159,000 change in net loss based on cash balances as of September 30, 2025[162] Financial Reporting and Compliance - The company’s financial statements are prepared in accordance with IFRS, and the Board of Directors approved the interim financial statements on November 12, 2025[11] - The company changed its presentation currency from Canadian dollars (CAD) to United States dollars (USD) effective April 1, 2025, to better reflect its operational exposure in the global cryptocurrency market[24] - The company adopted SAB 122 during the nine months ended September 30, 2025, resulting in the retrospective de-recognition of $3,356,235 of client digital assets and associated liabilities from its December 31, 2024 statement of financial position[23]
DeFi Technologies Inc(DEFT) - 2025 Q3 - Quarterly Report