Everything Blockchain Inc (EBZT)

[lesgetrich]

Part of the revenue seems to be related from HEX, which is currently yielding 40% APY. While I am not sure HEX will continue yielding these results, it's very clear that its less likely for this APY to grow much higher. Hence your calculations are off, the growth would be purely based on compounding and not sales.

Your assumptions seem to be unfounded. According to their PR...

EVERYTHING BLOCKCHAIN ANNOUNCES REVENUE AND EARNINGS FOR MAY, 2021

Everything Blockchain recorded $3.5M in revenue with $1.5M in net profit. This represents a 342% increase in revenue and a 350% increase in net profit during the first month of this quarter as compared to the revenue earned from February thru April 2021; bringing the total for the first four months of this fiscal year for Everything Blockchain to $4.8M in revenue with a net profit of $2.1M.

Their 10-Q shows total revenue for 1FQ22 of $1.153 million.

OBTX 1FQ22 10-Q

Of that, $1.081 million was "Services Revenue" and only $41,000 was from staking revenue. They may be buying and mining HEX. But it's also likely, based on the wording of their PR, that they are getting revenue from working on a HEX programming project for a customer...

This rapid growth in revenue and profits stem from the Company’s involvement with HEX, claimed to be the Blockchain’s first high yield certificate of deposit.

Consequently, based on their 1FQ22 results, it's more likely that the revenue is coming from services rather than Crypto. From the 10-Q...

Transaction revenue

The Company charges a fee for its services at the transactional level. We provide a service and charge a fee for provided those services. Currently the Company is engaged in developing, engineering, and designing blockchain projects, to include platforms and cryptocurrencies for customers. We typically treat all revenue generated from third parties for services as transaction revenue.

Subscription and service revenue

Subscription and service revenue primarily consist of staking revenue. The Company participates in networks with proof-of-stake consensus algorithms, through creating or validating blocks on the network. In exchange for participating in the consensus mechanism of these networks, the Company earns rewards in the form of the native token of the network. Each block creation or validation is a performance obligation. Revenue is recognized at the point when the block creation or validation is complete, and the rewards are available for transfer. Revenue is measured based on the number of tokens received and the fair value of the token at the date of recognition.

Other revenues

The Company includes Interest income as a part of revenue when generated from non-cash or cash equivalents as other revenue within net revenue. Interest earned on cash and cash equivalents is included in corporate interest income, within other income.

Other revenue also includes the sale of crypto assets. The Company records the total value of the sale in other revenue and the cost of the crypto assets in other operating expenses within the consolidated statements of operations.

86% of the revenue generated by the Company has come from customer in the European theatre.

The company only recorded $72,000 in "Other Revenue" for 1FQ22. It's unlikely they've switched to selling their crypto assets the following quarter and are touting this as an increase in revenue.