Abaxx Technologies (ABXX) Q3 2024 earnings summary

Executive summary

• Achieved full operating status as a commodity futures exchange and clearinghouse in Singapore, with physically deliverable LNG and carbon futures contracts now trading and robust onboarding of new members and products underway.

• Launched three proprietary software products under the ID++ suite, supporting both exchange operations and broader SaaS distribution, with a focus on deep tech and privacy innovations.

• Publicly launched Verifier+ identity app and Smarter Markets Coffeehouse digital community platform, enhancing digital credential management and community engagement.

• Advanced product development for lithium carbonate, nickel sulfate, and gold futures, with regulatory submissions and launches planned, and ongoing expansion of product pipeline including weather derivatives.

• Nominated for FIA Innovator Pavilion and shortlisted for World LNG Award for Outstanding Contribution 2024.

Financial highlights

• Early trading volumes and revenues remain modest due to phased onboarding and limited initial connectivity, but block trades and physical merchant participation are ramping up.

• Initiated rebate and incentive programs to attract liquidity providers and market makers, resulting in daily price discovery and increased participation in LNG and carbon contracts.

• Recent strategic financing completed above market price, providing working capital runway into early next year, with private placement of 215,000 shares at CAD $13.00 per share for C$2,795,000 expected to close imminently.

Outlook and guidance

• Expecting to launch lithium and nickel futures before year-end, with gold targeted for Q1 2025, pending regulatory finalization and industry review.

• Preparing application for CFTC FBOT registration to enable direct US market access.

• Anticipates continued onboarding of clearing members, trading firms, and brokers, with up to six FCMs connected by year-end and more in the pipeline for 2025.

• Focused on building open interest through block trades, with volume and revenue growth expected as onboarding completes and rebate programs phase out.