Animoca Brands’ Chairman blames turbulence for 2020 accounts delay.

A major investor in blockchain gaming and Web3 based in Hong Kong, Animoca Brands, has postponed its financial report since 2020.

The firm was given an extension until the end of Q1 2023 to publish its audited accounts for 2020, but it has yet to do so.

In a recent report, the company’s chairman, Yat Siu, attributed the delay to the market turbulence in 2021 and 2022.

Animoca Misses Financial Report Publishing Deadline

Animoca Brands spun out of Animoca in 2014. It was listed on the Australian Securities Exchange in January 2015 and began launching massive game projects.

However, in 2020, the company was unable to meet its deadline to publish its audited accounts.

The company sought an extension, pushing the deadline to the end of Q1 2023, with the accounts for subsequent years (2021 and 2022) to follow later in 2023.

Despite receiving approval from the Australian Securities and Investment Commission (ASIC) in 2022 to extend the accounts filing, the metaverse giant failed to meet its deadline.

An Animoca spokesperson stated at the time that Animoca Brands did not anticipate missing the deadline.

However, two months after the new deadline, the accounts have still not been released, with Chairman Siu attributing the delays to the bull and bear markets of 2021 and 2022.

Nevertheless, Siu stated that the company is still working with DFK International, its private auditor, to produce the reports.

He stated that the auditors want to reflect the impact of 2020 investments in the accounts for 2021 or 2022, which is the reason for the reports’ delay.

“The most significant aspect is the subsequent events. The auditor will not only be examining what is happening now and what happened in 2020 but will also be looking at the events that occurred in 2021 and 2022,” Siu stated.

The chairman added, “Suppose we invested in 2020, and it had an impact in 2021 or 2022. In that case, they want to reflect that impact on the 2020 accounts. And that is causing a significant delay.”

What Happened In 2021 and 2022?

During the two years in question, there was a lot of turbulence, ranging from the bull run of 2021 to the bearish price drops in 2022. In 2021, the crypto market experienced significant asset price movements and the NFT revolution.

However, in 2022, prices plummeted, with a slew of top firms collapsing, from Terra to Three Arrows Capital, Celsius, and FTX.

As Siu stated, “A lot happened in 2021 and 2022. I mean, if anything, that’s like lifetimes of an industry within a few months.”

For Sui’s company, these changes presented an unusual problem. While Animoca made approximately 450 rounds of investments in Web3 projects, it is sitting on a pile of highly volatile tokens.

After delays, Animoca published its DFK International-audited 2019 accounts in July 2022.

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