Banxa Holdings Inc has issued an update on the delayed lodgement of its audited 2022 financial results, which led to a trading halt of its shares.
The Toronto-based Web3 payments and on-and-off ramp solutions provider said it has experienced significant growth both in terms of transaction volumes and order processing, and that the accelerated growth rate has put a strain on its financial systems and processes.
That, in turn, has necessitated additional audit verification and required the proper application of international financial reporting standards (IFRS) related to on-ramping transactions.
READ: Banxa Holdings says 'clear line to profitability' in 2022 as it closes C$3.5M funding from Lind Partners
Delays related to Banxa’s use of digital currency exchanges that are not service organization control-compliant have also necessitated additional verifications. The company is currently reviewing moving liquidity and wallet services to SOC-compliant platforms, which would improve future audit processes.
Banxa’s general operations have not been affected, and the company has a “clear line of sight to profitability" in fiscal 2023 (ending June 2023).
The company will host a webinar to discuss the trade cessation at 3 pm ET on Thursday. Interested parties can register here.
Elsewhere, Banxa announced that chief financial officer Shyamal Deo is no longer with the company, and a search for his replacement is ongoing.
Meanwhile, Banxa noted in a statement that it holds no direct exposure to FTX, the cryptocurrency exchange acquired by rival Binance on Tuesday after suffering from a liquidity crunch. The company said it had been receiving questions from partners and investors on the matter.
Banxa does not hold assets with FTX, hold any FTX native tokens or generate any revenue from customers of FTX.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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