Animoca Brands, a Hong Kong-based investor in blockchain gaming and Web3, has postponed its financial report since 2020. The company was spun out of Animoca in 2014 and was listed on the Australian Securities Exchange in 2015. Animoca Brands began rolling out massive game projects but struggled to publish its audited accounts in 2020.
Reasons for the Delay
The firm received an extension until the end of Q1 2023 to publish its 2020 audited accounts but has yet to do so. According to the company’s chairman, Yat Siu, the delays were caused by the market turbulence in 2021 and 2022. Despite receiving approval from the Australian Securities and Investment Commission (ASIC) in 2022 to extend the accounts filing, Animoca Brands failed to meet the deadline.
While the company is still working with its private auditor, DFK International, to produce the reports, Siu explained that the auditors want to reflect the impact of 2020 investments in 2021 or 2022 in the accounts, which is causing the delay. He added that the auditors are not only looking at what happened in 2020 but also the subsequent events that happened in 2021 and 2022.
Siu said that the company invested in 2020, and it had an impact in 2021 or 2022. The auditors want to reflect that impact on the 2020 accounts, which is causing most of the delay. The market turbulence in 2021 and 2022, from the bull run of 2021 to the bearish price plunges in 2022, made it difficult for Animoca Brands to produce its reports.
Impact on Animoca Brands
Animoca Brands made about 450 rounds of investments in Web3 projects, but it sits on a stack of highly volatile tokens. The market turbulence in 2021 and 2022 presented a strange problem for the company. While the crypto market recorded high asset price moves and the NFT revolution in 2021, the following year featured crashing prices with a cascade of top firm collapse from Terra to Three Arrows Capital, Celsius, and FTX.
According to Siu, “A lot happened in 2021 and 2022.” These changes presented a significant challenge for Animoca Brands as it struggled to publish its audited accounts. The company blamed the delays on the market turbulence, which made it difficult for the auditors to reflect the impact of 2020 investments in 2021 or 2022 in the accounts.
Animoca Brands, a Hong Kong-based blockchain gaming and Web3 investor, has delayed its financial report since 2020 due to market turbulence. The company is still working with its private auditor to produce the reports, but the auditors want to reflect the impact of 2020 investments in 2021 or 2022 in the accounts, which is causing the delay. The market turbulence in 2021 and 2022 made it difficult for Animoca Brands to produce its reports, given that it made about 450 rounds of investments in Web3 projects and sits on a stack of highly volatile tokens.
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