Defi Technologies, Inc.

I'm going to start off by reading the risk and forward-looking statements. So, this presentation given and certain statements made within this earnings call, which are not historical facts such as expectations, anticipations, beliefs, and estimates are forward-looking statements. These statements may include, without limitation, any statements preceded by, followed by, or including words such as target, believe, assume, expect, commit, aim, intend, may, anticipate, foresee, see, estimate, plan, project, will, is to, focus, can have, likely, should, would, could, continue, in other words, in terms of similar meaning or the negative zero. Others can be identified from the context in which statements are made. Forward-looking statements give the company's current expectations and views of future developments in light of its current experience and perception of historical trends. Based on numerous assumptions regarding the company's present and future business strategies and environment in which it will operate in the future. Although the company deems such forward-looking statements to be reasonable, no assurances can be given that they will be proven correct. The forward-looking statements are not guarantees of the future developments or results mentioned herein. Forward-looking statements involve known and unknown risks, uncertainties, and other factors, such as but not limited to general economic and industry conditions, which are, in some cases, beyond the company's control, which may cause actual results to materially differ from the expressed in such statement. The statements are made as per the date of the presentation as this earnings call, and the company does not assume any obligation to review, update, confirm any forward-looking statements contained herein, except to the extent legally required. Great. Welcome, everyone. And first off, what a great 2024. Congratulations here to management and congratulations to our shareholders that have stuck with us for the past few years. And from here, I'm going to hand it off to our CEO, Olivia Rusi-Newton. But first, I'll also introduce the rest of the panel today. Of course, Ali, CEO, Johan Wattenstrom, the co-founder of both DeFi Technologies and Zalor. our CFO, Paul Bozzocchi, and our Corporate Secretary, Kenny Choi. Russell Starr should also be joining us here as well, our Head of Capital Markets. I'm Curtis Schloffman, VP of Marketing and Communications. Ollie, take it over. Thanks a lot, Curtis. I think we, thanks to everyone for being here. I think it's been a transformative year for both DeFi technologies, our subsidiaries, and the overall, I would say, regulatory framework for general assets globally. We've read through this, right, Curtis? Yeah. Yeah, sorry. So overview on DeFi Technologies. We're a publicly listed company, traded on SIBO, OTC Markets, and Frankfurt. And we're, you know, connecting traditional capital markets with a rapidly evolving high-growth world of decentralized finance and Web3. Through our whole deal of subsidiaries, venture portfolio, trading desks, treasury strategy, and industry partnerships, we enable traders in a regulated manner. We have about a four-year operating track record. Velour was, I think, conceived by myself and Yoann in 2017 and took a few years to get regulatory approvals. Today, we have 60-plus listed exchange traded products. for this 2024, $204.3 million Canadian in 2020 for adjusted net revenue. And yeah, to close off the year, we just before kind of the end of the year finalized Neuronomics, so five businesses in total. And, yeah, we're very much a founder-led team. As I mentioned, Velour was incubated by myself and Johan in 2017, and DeFi in 2020, and both of those in Malibu made it in 2021. We have diverse business lines. to the wave of blockchain-based assets, services, and applications. And, you know, going forward, now that we've kind of dramatically increased the strength of our balance sheet, proven our business model in the form of a look to scale that across new geographies, we've also started to make strategic and creative acquisitions that, you know, fuel the growth of our balance sheet and have all been extremely strategic. Here's a bit of an overview, graphically speaking, in terms of the different business segments within DeFi. So, you know, we'll start from left to right. We have reflexivity research that we acquired at the start of last year. Reflexivity has really been kind of a bolt on. value-added service provider to our main and largest subsidiary, holding-owned subsidiary, Velour. So when we go out into the market with new exchange-traded products, we have, you know, cutting-edge research, and it also allows us to, you know, see the emerging trends in the digital asset space and effectively kind of know what products to list next and where the interest lies. Stillman has definitely been an extremely fast-growing company, very sharp team of young entrepreneurs that have definitely carved out a niche market and a very competitive trade in terms of AUM capacity globally and was the first cinema regulated bank in Switzerland. One of the first kind of crypto banks in the world. A fairly new business segment, which we'll touch on a bit later in more detail is DeFi Alpha. DeFi Alpha's sole focus is identifying low risk arbitrage opportunities within the crypto ecosystem. This past year, we did, you know, 133.1 million, just under 100 million USD in revenue. We have a somewhat substantial venture portfolio, you know, just over 50 million CAD, just under 40 million USD. And the idea and premise behind our venture portfolio is similar to reflexivity is is streamlining new ETPs, new products to kind of be invested in and bring to market first within our Velour business. One thing we're very excited about is our kind of majority acquisition of Neuronomics. And we, you know, we believe, you know, artificial intelligence will be ingrained systematically in all kind of facets of digital assets, and we see kind So this is kind of, you know, high-level numerical facts on 2024. So adjusted book value of 192 Canadian. Adjusted 2024 net revenue, 204 million. Earnings per share, 39 cents. Market capitalization of, you know, roughly 1.2 billion. Asset center management A little over a billion Canadian dollars. Adjusted EBITDA is 116 CAD. And, you know, cash and digital asset treasury on balance is 81.3 million. And 2024 return on equity based on adjusted income is 6%. So these are some of the financial highlights of Q4 2024. We reported 22.4 million in cash on hand, up from 6.8 million on December 31st, 2023. As of December 31st, 2024, the company's treasury holdings included 208 Bitcoin, 121 ETH, you know, just under 600,000 ADA, which is Cardano, 131,000 DOT, which is Polkadot's blockchain, 14,000 SOL, 491 UNI, which is the Uniswap token, 433,000 AVAX, which is the Avalanche ecosystem token, and just under 2 million core tokens. The company's venture portfolio investments were valued at $53.7 million as of December 31st, 2024. Total value of cash, treasury, and venture portfolio stands at $135 million as of our year end. Total adjusted revenues were $42.6 million for the three months ended December 31st, and $204.3 million for the 12 months ended December 31st. Adjusted net income was 19.1 million for the three months ending December 31st and 115 for the 12 months ending December 31st. Adjusted EBETA was 20.8 million Canadian for the three months ended December 31st, 2024, and 116.1 million for the 12 months ended December 31st, 2024. On to the LOR. large generated staking and lending income of 12.8 million Canadian and management fees of 2.9 million. AUM grew by 132% since December 2023 to approximately 1.18 billion as of December 31st. Driven by favorable market conditions, obviously kind of, you know, new crypto-friendly administration in the United States and, you know, an aggressive strategic corporate action. Stillman, it's not been with us for a long time. We worked kind of diligently. There was several subsidiaries that had to be amalgamated. Regulatory licenses in the digital asset space aren't always easy to kind of cross over into new entities. So we finalized that acquisition a few months ago. I think it was mid-October. And they generated just under $3 million in revenue and are growing extremely fast. So, you know, once we have a few more months of still on our balance sheet, we're very excited about the synergistic benefits of that business to Velour, DeFi Alpha, and other opportunities we're looking at. DeFi Alpha, specialized arbitrage desk, as I said, we'll touch on that in a bit more detail, generated $132.1 million. We are very careful in terms of not exposing ourselves to losses in that business. Reflexivity, very complementary to the war in the form that they have. that people can review before selecting which, you know, exchange traded products they would like to purchase have just under a million dollars in revenues for the three months ended December 31st and 2 million for the 12 months ended December 31st, 2024. Here is our, you know, kind of AUM, E&M, net sales in USD. As you can see, we've kind of had a, you know, a very robust increase into 2024 as digital asset prices climbed. And Johan, did you want to touch on any specific kind of data indicators pertaining to this slide?

I think the most important bit here is actually we launched 20 new products in November. As you can see, a larger portion of the AUM has actually gone into under the largest assets and the ones we had before. So I think it's around 20% now. It's in mostly these 20 new smaller points, which improved our products mix quite a bit. We've seen healthy inflow for four months or eight months and going on into the start of this year as well.

Yeah, so I think, you know, to touch on that, as Johan mentioned, we've been bringing smaller, I would say smaller or newer coins to market that are definitely a lot popular, a lot more popular than, say, you know, what people might refer to as the blue chip digital assets. People want, you know, exposure to volatility and growth, and we will continue to our clients across incoming geographies. I think another point to add that's really important here is that we haven't had a net outflow month in probably a little over two years. And then, in fact, last month in February when you had billions of dollars in outflows in all the ETFs globally, Valor still saw total inflows over $11 million into our ETPs. So, these products are very sticky. We continually see net inflows month over month and hope to see that trend continue. Yeah, definitely good point, Chris. It's nice to have a demographic of clientele that are risk on. Yeah. So, you know, obviously, we're confined by, you know, some of the things that we can share. But, you know, this has been an ongoing process since 2021 with specifically the FCC. So, you know, just to recap things, mid-September, the company filed a 40F registration statement with the United States Securities Commission. in connection with its application to list its common shares on the NASDAQ stock market. On January 17, 2025, the company filed an amended 40F registration statement with the SEC. The listing of the company's common shares on the NASDAQ remains subject to the approval of the NASDAQ and the satisfaction of all applicable listing and regulatory requirements, including Form 40F, common shares on the NASDAQ. Obviously, there's lots of benefits to being listed on a major US exchange. Most people know and help, you know, DeFi make a name for itself, which I think is, you know, still kind of largely unnoticed in terms of our, you know, profitability and uniqueness of our business model. And so, yeah. And obviously, as we get material information, we're, you know, press releasing it right away in terms of this. I think it was... You know, kind of a jump ball with, you know, the election going into the end of the year. And once we had kind of a, you know, pro-crypto president, the game has definitely, you know, changed in terms of what we're seeing and the optimism across the border from Canada, you Do you want to comment on anything, Russ?