Abaxx Technologies (ABXX) Q2 2024 earnings summary

Executive summary

• Launched Abaxx Commodity Futures Exchange and Clearinghouse in Singapore, offering physically deliverable LNG and carbon futures contracts as of June 28, 2024.

• Focused on building out exchange and clearing operations, with ongoing onboarding of clearing and trading members.

• Revenue remains minimal, primarily from a royalty agreement with Base Carbon; significant revenue from exchange operations expected within the next twelve months.

• Net loss for Q2 2024 was $8.9 million, reflecting increased investment in development, staffing, and launch activities.

• Raised $17.5 million from equity financing and $6.1 million from preferred shares in subsidiary Abaxx Singapore during the first half of 2024.

Financial highlights

• Q2 2024 revenue was $0.4 million, up 99% from $0.2 million in Q2 2023, driven by Base Carbon royalty income.

• Operating expenses rose 80% year-over-year to $10.8 million, mainly due to higher salaries, professional fees, and share-based compensation.

• Net loss for Q2 2024 was $8.9 million, compared to a net profit of $15.8 million in Q2 2023 (which included a one-time $21.3 million gain from equity investment in Base Carbon).

• Cash and cash equivalents at June 30, 2024, were $34.6 million, up 37% from $25.2 million at December 31, 2023.

• Net working capital increased 53% to $32.5 million as of June 30, 2024.

Outlook and guidance

• Expects to generate more significant revenue from exchange and clearing operations within the next twelve months.

• Plans to continue investing in staff, technology, and regulatory compliance to support growth and operational readiness.

• Ongoing onboarding of additional clearing and trading members to expand market participation.