Audited financial report, page-2

From the Chairman's letter on page 4:
"Animoca Brands had to adopt appropriate accounting standards that could function under both
global and Australian accounting rules and practices. 2019 was a pivotal year for the Company,
in great part because it was the first time that we sold NFTs and issued fungible tokens via
SAFTE (simple agreement for future tokens or equity) notes. This, along with some of our other
activities, resulted in a high level of complexity for the purposes of financial reporting.
The Company’s financial auditing process required breaking entire swathes of new ground. How
should we account for token sales? What should be subject to deferral? How should we account
for NFTs? How should we account for reserves of tokens? What principles should be used to
value a portfolio of investments that, as of mid-2022, includes over 340 investments and
continues to expand?

When confronted with uncertainties in accounting processes, it is typical to look at how other
companies address similar challenges. But there were no other companies to which we could
compare ourselves. Animoca Brands is, at least for the time being, a unique and special case.
We were forced to define and address novel issues in accounting and reporting, and we think
that our efforts in this area may well inform others in the still emerging blockchain and Web3
industry.

During the last three years we have worked very hard to set new standards that properly
account for our business operations with clarity and transparency. Today, we are at last in a
position to issue a complete set of 2019 audited accounts that provides clear accounting for our
blockchain, cryptocurrency, NFTs, and token issuance activities.
We wish to thank all of our shareholders for their considerable patience. We are growing
accounting and finance team (now consisting of 22 people) to produce future reports that will
follow as soon as possible."