Financial Performance - Total assets increased to $20,475,520 in 2022 from $14,101,993 in 2021, representing a growth of approximately 45%[17] - Validator revenue surged to $563,015 in Q1 2022, up from $72,524 in Q1 2021, marking a year-over-year increase of 676%[20] - Gross profit for Q1 2022 was $425,146, compared to $57,528 in Q1 2021, reflecting a significant improvement in profitability[20] - Total operating expenses decreased to $2,252,696 in Q1 2022 from $7,976,014 in Q1 2021, a reduction of approximately 72%[20] - Net loss attributable to common stockholders narrowed to $(5,740,743) in Q1 2022 from $(11,620,571) in Q1 2021, indicating a 51% improvement[20] - The net loss for 2022 was $5,740,743, an improvement from a net loss of $6,782,175 in 2021, indicating a reduction of approximately 15.4%[29] - Net cash used in operating activities decreased to $1,055,243 in 2022 from $2,541,258 in 2021, reflecting a reduction of about 58.4%[29] - The company reported a significant impairment loss on digital assets of $3,307,428 in 2022, compared to $1,301,764 in 2021, representing an increase of approximately 154.1%[29] - The company reported an impairment loss on digital assets of approximately $3.31 million for Q1 2022[151] - Adjusted EBITDA for Q1 2022 was $(3.73) million, compared to $1.12 million in Q1 2021[145] Cash and Liquidity - Cash and cash equivalents increased to $2,245,062 in 2022 from $1,400,867 in 2021, a growth of approximately 60%[17] - Cash at the end of the period for 2022 was $2,245,062, down from $3,367,249 in 2021, a decrease of about 33.3%[29] - The company has not experienced any losses in cash accounts and believes it is not exposed to significant credit risk on cash[44] - The company has approximately $2.2 million in cash as of March 31, 2022, compared to $1.4 million at the end of 2021, indicating a growth of about 57.1%[43] - The net cash provided by financing activities in 2022 was $10,113,573, a decrease from $13,379,259 in 2021, representing a decline of about 24.5%[29] - Cash used in operating activities was $1.1 million for the three months ended March 31, 2022, a decrease from $2.5 million for the same period in 2021[161] - Cash provided by financing activities was $10.1 million during the three months ended March 31, 2022, compared to $13.4 million for the same period in 2021, primarily from proceeds of $10.5 million from the ATM Agreement[162] - The company believes that existing cash and liquid digital assets, along with funds available from the ATM Agreement, provide sufficient liquidity for at least the next twelve months[160] - The company has no long-term debt outstanding and no off-balance sheet arrangements as of March 31, 2022[163] Digital Assets and Investments - Staked digital assets/currencies rose significantly to $6,601,777 in 2022 from $623,754 in 2021, an increase of over 950%[17] - The company incurred $8,521,726 in the purchase of productive digital assets for validating in 2022, compared to $7,994,887 in 2021, reflecting an increase of approximately 6.6%[29] - The company holds a Digital Asset treasury comprised of 90 Bitcoins, focusing on non-productive assets[140] - The company sold a total of 2,268,742 shares of common stock under the ATM Agreement for gross proceeds of approximately $13.9 million at an average price of $6.12 per share[154] - Cash used in investing activities was $8.2 million for the three months ended March 31, 2022, compared to $8.0 million for the same period in 2021, primarily for the purchase of digital assets[161] Revenue and Growth Projections - Total revenues for Q1 2022 were $563,015, up by $490,491 compared to Q1 2021[147] - The company anticipates revenue guidance of $35 million for the next quarter, indicating a projected growth of approximately 16.67%[187] - New product launches are expected to contribute an additional $5 million in revenue over the next two quarters[187] - The company reported a total revenue of $30 million for the quarter, reflecting a year-over-year increase of 30%[187] User Growth and Market Expansion - The user base grew to 1.5 million active users, representing a 25% increase compared to the previous quarter[187] - Market expansion efforts are focused on entering two new regions, which are projected to add 10% to the overall user growth[187] - The company is exploring potential acquisition opportunities to enhance its market position and product offerings[187] - A strategic partnership is being developed with a leading tech firm to leverage synergies in product development[187] Operational Efficiency and Cost Management - Operational efficiency improvements are expected to reduce costs by 15% over the next fiscal year[187] - The company plans to increase its marketing budget by 20% to drive user acquisition and brand awareness[187] - The company approved a performance-based Annual Cash Incentive Plan for executives, with bonuses ranging from 48% to 107% of base salaries[119] Digital Asset Platform Development - The company plans to develop a Digital Asset Platform to aggregate user holdings and analyze performance, which will include a Staking-as-a-Service feature[34] - The company is developing a Digital Asset Platform to enhance user experience with features like portfolio monitoring and staking services[138][139] - The company plans to integrate a Staking-as-a-Service feature into its Digital Asset Platform, allowing users to earn annual percentage yields on staked assets[139] - The company has developed a Digital Asset Platform, with an open beta feature allowing users to evaluate their digital asset portfolios[122]
BTCS(BTCS) - 2022 Q1 - Quarterly Report