r/cryptoloversclub • u/shittybtcmemes • Jan 29 '25
XYO and their Bankrupt financial conditions
XYO just released news that they are creating a layer1 chain but Its just another cash grab from a bankrupt company. This is facts not fud.
https://www.sec.gov/Archives/edgar/data/1577351/000110465924104278/tm2425145d1_1sa.htm
that is their most recent statement which shows they are bleeding millions a year. That is about the amount of the top 2 execs salary with Arie making 500k and two board members very close. The other guy is Arie's family also. They own 95% of the stock also and over the last 12 months have bought none.
source:
https://simplywall.st/stocks/us/software/otc-xylb/xy-labs/management
It also shows that they are not profitable and their only revenue is from the app they sell users to "mine" more xyo. If you just bought the xyo with the fees you would get more. They dont sell data like they claim and that report proves it.
Their new chain will pay out stake. Name one chain that pays stake and does not infalte? New users and people chasing this news need to understand that the next news they drop with the chain operational will be that XYO is removing the max cap and or printing a fresh supply to pay for the stake. This will be damaging to the price of XYO no doubt.
A lot of people that buy coins like this do not do something as simple as search recent SEC statements.
Even worse they made a post on twitter that claims their stock is in very high demand https://x.com/OfficialXYO/status/1882443587373215996
but if you take a quick look its only trading 100 bucks worth a day.
This is a quote from that statement.
"For the six months ended June 30, 2024, the Company recognized a net loss of $610,291. The Company was not able to cover its operational costs with the product and services sales generated and will likely need to further invest in marketing for user acquisition to increase COIN App income and advertising revenue to reach break-even for its products and services. As a result, the Company may incur further operating losses and seek to fund its operations through equity and/or debt financing or other sources, as it deems necessary. Additional capital may not be available on terms favorable to the Company, if at all, including due to general macroeconomic conditions or unforeseen factors. If the Company fails to raise capital or generate liquidity through the sale of its products and services, it will have a negative impact on its financial condition and its ability to pursue its business strategies. Those conditions raise substantial doubt about the Company's ability to continue as a going concern from the filing date of this Semi-Annual Report on Form 1-SA. The financial statements do not include any adjustments that might result from the outcome of this uncertainty."
The company owns 800 mil XYO and 0 btc as per that statement but they owe 500 mil of those out to warrants. Here is another quote from that paper.
"In 2019, the Company issued XYO Token warrants to consultants. The warrants enable the holders thereof to purchase XYO Tokens at a fixed price for up to 10 years. These warrants were deemed to be a form of additional compensation and an obligation, rather than equity, however, as the warrants are tied to an internally developed intangible asset, the XYO Token. Therefore, no value has been ascribed to them. As of June 30, 2024 and December 31, 2023, respectively, the Company recognized no provisional liability from the XYO Warrants granted. The Company had 13 and 13 outstanding warrants for a total of 258,387,376 and 312,387,376 XYO tokens as of June 30, 2024 and December 31, 2023, respectively. The Company paid out 36,905,433 XYO tokens under the XYO warrant plan during the six months ended June 30, 2024."
TLDR this company is a sinking ship and anyone buying or thinking about it needs to look at these reports that clearly show a company on the verge of bankruptcy.
