Looking Glass Labs says annual revenue down as NFT sales nosedive -November 03, 2023 at 06:58 am EDT

(Alliance News) – Looking Glass Labs Ltd on Friday said pretax loss narrowed in its latest financial year, but that revenue plummeted driven by much lower sales of non-fungible tokens.

On Thursday, Looking Glass disclosed that it had been unable to finalise its annual financial statements and accompanying documents by the October 30 due date. Consequently it applied for and was granted a management cease trade order by the British Columbia Securities Commission. This allowed the public to continue trading its shares but cut off Chief Executive Officer Dorian Banks and Chief Financial Officer Francis Rowe.

On Friday the Vancouver-based Web3 platform, which specialises in NFT “architecture”, reported a CAD12.5 million pretax loss for the year ended July 31, slightly narrowed from a GBP13.3 million the previous year.

Total revenue plummeted by 91% to just CAD654,957 from CAD7.0 million, “as a result of the general decrease in the cryptocurrency and NFT marketplace.” NFT sales in particular fell 93% to CAD434,093 from CAD6.2 million, while royalty income nosedived by 99% to CAD5,534 from CAD496,964.

Looking Glass noted that the resale price of its outstanding NFTs fell, resulting in “a corresponding decrease in revenue and royalty revenue generated”.

Total operating expenses fell 58% to CAD6.1 million from CAD14.5 million. These included stock-based compensation, which dropped 57% to CAD2.6 million from CAD6.0 million; marketing costs, which fell 82% to CAD456,463 from CAD2.5 million; and development costs, which fell 92% to CAD140,034 from CAD1.9 million.

Impairment losses also narrowed to CAD3.3 million from CAD4.1 million, although Looking Glass also incurred a one-off CAD3.3 million impairment of goodwill.

Cash and equivalents totalled CAD46,979 at July 31, down from CAD30,035 one year prior.

Looking Glass Labs shares were flat at 750.00 pence in London on Friday. Their most recent public trade was in mid-November last year.

By Emma Curzon, Alliance News reporter

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