CryptoStar Corp. Announces First Quarter 2020 Financial Results

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Last update: Jul 16, 2020

CryptoStar Corp. Announces First Quarter 2020 Financial Results

Canada NewsWire

TORONTO, July 16, 2020

TORONTO, July 16, 2020 /CNW/ - CryptoStar Corp. (TSXV: CSTR) ("CryptoStar" or the "Company"), a cryptocurrency mining and data centre operator, today announced its financial results for the first quarter ended March 31, 2020. For the full condensed consolidated interim financial statements and management discussion and analysis for the first quarter ended March 31, 2020, please visit SEDAR at www.sedar.com. All values in this news release are in United States Dollars unless otherwise specified.

During the three months ended March 31, 2020, the Company's operations in the USA were downsized substantially.
Construction of the Company's first facility in Newfoundland and Labrador, Canada began on January 7, 2020 with the first new generation miners commissioned on March 30, 2020.

	For the Quarter Ended Mar 31, 2020	For the Quarter Ended Mar 31, 2019
INCOME FROM MINING OF DIGITAL CURRENCY
Income from mining of digital currency	218,550	1,933,115
Other Income	24,207	—
Realized gain (loss) of digital currency	(3,423)	(20,021)
Direct operating and maintenance costs	(201,252)	(2,250,880)
Mining profit/loss	38,082	(337,786)
Mining profit margin	17%	-17%
Gain from disposal from miners	160,780	—
Other Operating Expenses	(336,004)	(334,618)
Gross profit/loss	(137,142)	(672,404)
Depreciation	(68,871)	(1,240,616)
Foreign exchange (gain)	(2,304)	864
Amortization - intangible	(37,547)	—
IFRS 16 Right-of-Use Interest/Depreciation	(152,447)	(139,037)
Accrued previous year expense	(101,316)	—
Net income (loss) before income taxes	(499,627)	(2,051,193)
Income taxes	—	—
Net income (loss) and comprehensive income (loss)	(499,627)	(2,051,193)
Adjusted EBITDA	(137,142)	(672,404)
Adjusted EBITDA margin	-63%	-35%
(Loss) earnings per share, basic and diluted	(0.002)	(0.01)
Weighted average shares, basic and diluted	208,752,800	208,752,800
Bitcoin mined	27	517
Average Bitcoin price when exchanged (sold) during the period	7,439	3,569

About CryptoStar Corp.:

CryptoStar has cryptocurrency mining operations with data centres located in the U.S.A. and Canada. CryptoStar is currently dedicated to becoming one of the lowest cost Bitcoin producers in North America.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Non-GAAP Measures

This press release presents certain non-GAAP ("GAAP" refers to Generally Accepted Accounting Principles) financial measures to assist readers in understanding the Company's performance. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Management uses these non-GAAP measures to supplement the analysis and evaluation of operating performance.

The following terms are used, which are not found in the Chartered Professional Accountants of Canada Handbook and do not have a standardized meaning under GAAP.

"EBITDA" (Earnings before Interest, Taxes, Depreciation, and Amortization) represents net income or loss excluding net finance income or expense, income tax or recovery, depreciation, and amortization.
"Adjusted EBITDA" represents EBITDA adjusted to exclude share-based compensation, fair value loss or gain on remeasurement of digital assets, and costs associated with one-time transactions (such as listing fees).
"Adjusted EBITDA margin" represents Adjusted EBITDA as a percentage of revenue.
"Mining Profit" represents gross profit (revenue less cost of revenue), excluding depreciation.
"Mining Profit Margin" represents Mining Profit as a percentage of revenue.

SOURCE CryptoStar Corp.