Lokotech Group (LOKO) H1 2024 earnings summary

Executive summary

• Strong crypto market growth in H1 2024, with market cap up nearly 40% year-to-date, mainly in Q1; Solana up 46% due to meme-coin activity.

• Completed MPW-ASIC testing, reducing technical risk; focus shifts to financing mass production and strategic review of pre-sales model.

• Powerpool Mining SL acquisition (66.65%) completed, first dividends received, and new product line for industrial data centers launched.

• WIC encryption app launched, with field testing in Ukraine; commercial activity in new 5000+ m2 data center started.

Financial highlights

• Group revenue NOK 10,320 in H1 2024 (vs. 0 in H1 2023); parent revenue NOK 3,660,848 (up from NOK 1,612,033 in H1 2023).

• Group net loss NOK -12,866,412 (vs. -1,545,433 in H1 2023); parent net loss NOK -12,220,611 (vs. -15,957,269 in H1 2023).

• Group cash flow NOK -17,392,768; cash position NOK 20,551,256 at period end.

• Group equity ratio 87.9% (down from 97.3% at 30.06.2023); total assets NOK 54,845,620.

• 100% of group debt is short-term; group can cover short-term debt with liquid assets.

Outlook and guidance

• Mass production of ASIC planned for October, pending financing; investment need for production estimated at NOK 80 million.

• Market outlook remains highly volatile; new competitor Elphapex entering Scrypt segment.

• Ongoing efforts to secure commercial agreements for stranded energy utilization in South America.