Revenue and Financial Performance - Total revenue for the six months ended September 30, 2022, was $4,371,133, compared to $1,230,919 in the same period in 2021[7] - Net loss for the period was $4,886,279, compared to a net loss of $7,361,965 in the same period in 2021[7] - Total comprehensive loss for the period was $5,695,038, compared to $7,026,429 in the same period in 2021[7] - Basic and diluted loss per share attributable to owners of the company was $0.22 for the six months ended September 30, 2022, compared to $0.42 in the same period in 2021[7] - Revenue for the six months ended September 30, 2022 was $4,371,133, with the Metalpha segment contributing $3,938,870 (90% of total revenue)[91] - Net loss for the six months ended September 30, 2022 was $4,886,279, with the Longyun segment accounting for $5,304,803 of the loss[91] - Basic and diluted loss per share for the six months ended September 30, 2022, was $(0.22), compared to $(0.42) for the same period in 2021[103] Digital Assets and Liabilities - Digital assets increased significantly to $44,505,633 as of September 30, 2022, up from $8,438,027 as of March 31, 2022[3] - Digital assets payables increased to $37,873,434 as of September 30, 2022, from $6,200,109 as of March 31, 2022[3] - Digital assets held on exchange institutions increased significantly from US$8,438,027 to US$44,505,633, a 427.4% increase[44] - Fair value loss of approximately US$1,330,133 from remeasurement of digital assets for the six months ended September 30, 2022[45] - Fair value of digital assets as of September 30, 2022: $44,505,633, classified under Level 2 in the fair value hierarchy[80] - Digital assets payables increased from $6,200,109 as of March 31, 2022 to $37,873,434 as of September 30, 2022, driven by acquisitions of $171,899,214 during the period[81] - Total digital asset payables to Antalpha increased from $6,200,109 as of March 31, 2022, to $36,340,668 as of September 30, 2022[108] - The company entered into derivative products with Antalpha amounting to $168,184,034 during the six months ended September 30, 2022[109] Cash Flow and Financing - Net cash used in operating activities decreased to $1,677,498 in 2022 from $4,886,289 in 2021, showing a significant improvement in cash flow management[14] - Net cash provided by financing activities was $3,403,516 in 2022, primarily from proceeds of shares issued on private placement[14] - Cash and cash equivalents increased to $7,271,584 as of September 30, 2022, from $5,286,991 as of March 31, 2022[3] - Cash and cash equivalents increased from US$5,286,991 to US$7,271,584, a 37.5% increase[46] - The company issued 3,300,000 ordinary shares in a private placement on August 2, 2022, increasing share capital and additional paid-in capital[48] Assets and Liabilities - Total assets as of September 30, 2022, were $60,903,674, up from $24,338,739 as of March 31, 2022[3] - Total current liabilities increased to $44,522,076 as of September 30, 2022, from $10,031,527 as of March 31, 2022[3] - Total equity attributable to owners of the company was $14,330,084 as of September 30, 2022, compared to $12,791,042 as of March 31, 2022[3] - Loans to third parties increased from US$7,138,703 to US$8,060,849, a 12.9% increase[40] - Total accounts and other payables as of September 30, 2022: $4,414,257, including accounts payables ($6,115), other payables and accrued charges ($3,712,349), and amount due to related parties ($695,793)[58] - The company's gearing ratio increased significantly from 42% as of March 31, 2022 to 73% as of September 30, 2022[89] - Total assets grew from $24,338,739 as of March 31, 2022 to $60,903,674 as of September 30, 2022, primarily due to a $38.1 million increase in Metalpha's current assets[93][96] - Non-current assets decreased from $712,459 as of March 31, 2022 to $563,235 as of September 30, 2022, with a $100,799 reduction in Hong Kong assets[98] Expenses and Costs - Cost of revenue for the six months ended September 30, 2022: $192,681, primarily from supply chain management platform service[64] - Selling and promotion expenses for the six months ended September 30, 2022: $657,238, a significant decrease from $3,792,621 in the same period in 2021[64] - General and administrative expenses for the six months ended September 30, 2022: $1,458,123, including professional fees ($496,253), wages and benefits ($376,500), and insurance costs ($155,915)[67] - Net finance cost for the six months ended September 30, 2022: ($2,514), with interest income of $5,013 and finance cost of ($7,527)[69] - Current tax expense for the six months ended September 30, 2022: $199,897, with a reconciliation of effective tax rate showing a loss before income tax of ($4,686,382)[72] Subsidiaries and Business Operations - The company transferred 100% equity interest in Radiant Alpha Limited to Antalpha Technologies Holdings Limited for $1, as Radiant Alpha had no operations[19] - Metalpha Limited, a subsidiary, operates cryptocurrency derivative product services in Hong Kong with a 51% ownership by the company[21] - The company's total assets for the discontinued Mainland China Business were $9,531,078 as of September 30, 2022[113] - Loss from discontinued operations for the six months ended September 30, 2022, was $(383,177)[114] - Net cash outflows from the disposal group for the six months ended September 30, 2022, were $1,684[116] - The company approved the discontinuation of its Mainland China Business on January 20, 2023[118] - The aggregate consideration for the sale of Hangzhou Dacheng and Hangzhou Longyun was $1.00, completed on February 20, 2023[119] Leases and Property - New leases capitalized in right-of-use assets and lease liabilities amounted to $79,533 in 2022, compared to $425,922 in 2021[16] - Property and equipment carrying amount decreased to $204,995 as of September 30, 2022, from $297,974 as of March 31, 2022[29][30] - Lease liabilities decreased from US$368,747 to US$321,528, a 12.8% reduction[34] - The effective interest rate applied to lease liabilities ranged from 4.75% to 4.90% per annum[37] Shareholder and Equity Information - Share purchase warrants outstanding increased to 25,100,000 with a weighted average exercise price of US$1.58[49] - Non-controlling interests as of September 30, 2022: Taikexi ($530,672), Shenzhen Guanpeng ($48,996), Hangzhou Xu Zhihang ($10,459), Metalpha ($2,475,661)[57] - The company had 25,100,000 share purchase warrants outstanding as of September 30, 2022, which could potentially dilute basic loss per share in the future[101] Valuation and Financial Models - The company uses the Black-Scholes Pricing Model for digital assets payables valuation, with expected volatility ranging from 59.03% to 61.08% as of September 30, 2022[86] - The company engages external valuation experts with recognized professional qualifications for level 3 fair value measurements[82] Corporate Changes and Transactions - The company changed its name from "Dragon Victory International Limited" to "Metalpha Technology Holding Limited" on November 15, 2022[20] - The company changed its name from Dragon Victory International Limited to Metalpha Technology Holding Limited on November 15, 2022[117] - The company completed the purchase of 49% equity interest in Metalpha Limited from Antalpha for $2,500,000 on January 4, 2023[117] Regional Revenue Contribution - Hong Kong accounted for 90% of total revenue ($3,938,870) for the six months ended September 30, 2022, compared to zero in the same period last year[97]
Metalpha Technology (MATH) - 2022 Q4 - Annual Report