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HyperBlock Inc. Shares Financial Update Q1 EBITDA of US$4.9M and Revenue of US$7.4M Reported for Predecessor HyperBlock Technology Corp.

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HyperBlock Inc. Shares Financial Update Q1 EBITDA of US$4.9M and Revenue of US$7.4M Reported for Predecessor HyperBlock Technology Corp.

Canada NewsWire

TORONTO, July 25, 2018 /CNW/ - HyperBlock Inc. (CSE:HYPR) — one of North America's largest and most diversified crypto asset enterprises — is on-track to meet its 2018 goals and has reported first quarter expected EBITDA of US$4.9M and revenue of US$7.4M for its predecessor company, HyperBlock Technologies Corp.

HyperBlock Inc. (CNW Group/HyperBlock Inc.)

The company, which formed on July 10, 2018 — following the business combination of HyperBlock Technologies Corp., CryptoGlobal and Project Northwest — recently began trading on the Canadian Securities Exchange under the symbol HYPR. 

The newly formed HyperBlock Inc. operates 21,500+ servers on 28.5MW of power and offers five product offerings — from hash rate sales and cloud mining to a proprietary crypto security vault solution that will launch later this year.

"HyperBlock is steadfastly focused on the fundamentals — and on building long-term, sustainable financial strength for our shareholders," says HyperBlock Inc. CFO Tim Smart.

Financial Strength through Diversity
"HyperBlock's financial strength is based on our unique, diversified business model that helps the company survive, thrive and build revenue, even during challenging market downturns," explains HyperBlock Inc. CEO Sean Walsh

"HyperBlock offers five complimentary products — including our innovative Mining-as-a-Service hash rate sales, cloud mining and our proprietary crypto custodial vault, which will launch later this year," says Walsh.  In addition to its core business divisions, HyperBlock operates an expanding R&D lab focused on Bitcoin adoption and usage.

Financial Highlights

In addition to providing an update on newly formed HyperBlock Inc.'s market performance, and in compliance with securities regulations, the company also provided the operating and financial results update for its privately-held predecessor HyperBlock Technologies Corp., for the three month period ended March 31, 2018.  These financial statements are available under the company's issuer profile on SEDAR at www.sedar.com under the heading "Financial statements of RTO acquirer." 

On a combined basis, HyperBlock Technologies Corp and Project Northwest for the three months ended March 31, 2018, had US$4.9 million of EBITDA and US$7.4 million of revenue.

Figures in US$ millions



Figures in US$ millions









Project Northwest

Q1 2018


HyperBlock Technologies Corp.


Q1 2018

Operating Income

5,842,603


Operating Income


211,926


Add: Depreciation

701,257



Add: Depreciation


669,603


EBITDA

6,543,860



EBITDA


881,529


Less: Gain on Hardware Sold to HyperBlock

(2,843,200)



Add: Hosting Fees Paid to Spokane


349,982

Adjusted EBITDA

3,700,660


Adjusted EBITDA


1,231,511







Combined Q1 2018 EBITDA

4,932,171

















Revenue - Project Northwest

9,974,557





Deduct: Servers sold to HyperBlock

(4,000,000)





Adjusted Revenue - Project Northwest

5,974,557





Revenue - HyperBlock

1,466,458





Combined Q1 2018 Revenue

7,441,015





 

As previously reported for the three months ended March 31, 2018, CryptoGlobal (which was acquired by HyperBlock on July 10, 2018) generated a loss from operations of approximately US$2.6M as it was still in the process of building-out the required infrastructure for its Canadian cryptocurrency datacenters. 

About HyperBlock Inc.
HyperBlock is a leading North American diversified crypto-asset company which operates one of North America's largest and most efficient cryptocurrency datacenters.  HyperBlock operates five complimentary product offerings focused on helping people and businesses createsafeguardmanage and grow crypto-assets.  HyperBlock profit centers include Mining-as-a-Service (MAAS), self-mining, server hosting, server hardware sales and a proprietary custodial vault product.  Learn more at www.hyperblock.co

Financial Measures
There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles) is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

Cautionary Note Regarding Forward Looking Information and Future-Orientated Financial Information

This news release contains certain forward-looking information and forward-looking statements within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. These forward-looking statements may not be appropriate for other purposes. Any statement that involves discussions with respect to 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 statements. In this news release, forward-looking statements relate, among other things, to: information pertaining future financial performance, such as statements with respect to future revenues, EBITDA, cash flows and other statements that express management's expectations or estimates of future performance, or the anticipated timing of future cash flow and positive EBITDA, and information pertaining to strategy and plans, including expansion of its datacentres in the United States and Canada.

These forward-looking statements are based on reasonable assumptions and estimates of management of the company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: that market prices will be consistent with expectations, the continued availability of capital and financing, general economic, market and business conditions will be consistent with expectations, fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in the prices of cryptocurrencies mined by the company; historical prices of cryptocurrencies and the ability of the company to mine cryptocurrencies consistent with historical prices; higher operating costs; the presence of laws and regulations that may impose restrictions on the ability of the company to operate it business; the speculative nature of cryptocurrency mining and blockchain operations; changes in project parameters as plans continue to be evaluated; and those factors described under the heading "Risks Factors" in the company's listing statement

dated July 10, 2018 available on the company's issuer profile on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the company believes, or believed at the time, to be reasonable assumptions, the company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Future-orientated financial information and financial outlook information (collectively, "FOFI") contained in this news release, as such terms are defined by applicable securities laws, is provided for the purpose of providing information about management's current expectations and plans relating to the future. FOFI contained in this news release was made as of the date of this news release and was provided for the purpose of disclosing material undisclosed information pertaining to the company. The company disclaims any intention or obligations to update or revise any FOFI contained in this news release unless required by applicable law. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

SOURCE HyperBlock Inc.

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