MetaWorks Platforms, Inc.

Revenue for Q1 2022 was $1.3 million, versus $4.0 million stated for the prior-year period in the transcript. Operating expenses were $2.5 million, compared with $1.5 million in the same quarter last year. Other income/expense was a positive $345,000, versus negative $43 million a year ago, and net loss was $1.2 million compared with a $44.8 million loss in Q1 2021. Cash at March 31, 2022 was $56,000, up from $67,000 at year-end; total assets were $5.6 million versus $5.3 million, total liabilities were $1.5 million versus $1.7 million, and net working capital was negative $338,000 versus negative $594,000 at December 31, 2021. Management did not provide formal next-quarter or full-year financial guidance on the call. Instead, it said the focus is on turning inbound project activity into revenue, with expected announcements and revenue from the zero-energy mining initiative over the next few quarters and continued content additions over time.

Cameron Chell framed the quarter as a major validation of the company’s approach, calling it a “blockbuster quarter” and stressing that CurrencyWorks is building compliant blockchain infrastructure for real-world use cases. He repeatedly pointed to traction in transactions, metaverse/NFT applications, cannabis payment rails, movie/IP rights management, music experiences, and zero-energy mining. His tone was optimistic and defensive of the company’s execution, emphasizing that CurrencyWorks has delivered on what it said it would build and that inbound interest is now coming from recognizable brands.

Swapan Kakumanu said Q1 was one of the company’s best quarters, with revenue driven mainly by the domestic rights sale for Zero Contact and the remainder from NFT sales across the company’s platforms. He highlighted a cash balance of $56,000, total assets of $5.6 million, liabilities of $1.5 million, and net working capital of negative $338,000, noting the improvement versus year-end came from higher cash and receivables. He also explained that the prior-year loss comparisons were heavily distorted by derivative-liability accounting and that the current quarter’s lower loss reflected a much cleaner comparison base.

Analysts and shareholders focused on three issues: whether the company would add more content to the Zero Contact platform, the timing of the zero-energy Bitcoin mining project, and whether the current cash balance is sufficient. Chell said the company is adding content cautiously, one at a time, to build credibility and has eight movies in the pipeline with A actors and A storylines. On Zero, he said the technology is proven and that the company expects over the next few quarters to see announcements and revenue from municipalities, smart cities, and miners using it. On cash, he said the company’s burn is low and that any financing, if needed, would likely be very small because the main focus is cash flow and sales.