HIGHLIGHTS Financial 1. Operating revenue of $12.8m , up 97%...

HIGHLIGHTS

Financial
1. Operating revenue of $12.8m , up 97% year-on-year as a result of strong performance in the Company’s core game business. This amount reflects audit adjustments undertaken such that Zeroth SPC is no longer
consolidated for accounting purposes (see highlight 2 below)

2. $7.66m in cash plus $1.59m in cash at Zeroth SPC (the entity managed by Venture Classic) - the Company ended the year with $7.66m in cash and cash equivalents, up 1014% from the prior year. This amount does not include the $1,592,723 in cash held in Zeroth SPC (see note 1.5(t) to the financial statements). Prior to the publication of this report, the management of the Company was of the view that Zeroth SPC was a consolidated subsidiary of the Company. Management has determined that Zeroth SPC is not consolidated on the basis that control of the Board of Directors of Zeroth and the voting shares of Zeroth are insufficient measures to warrant accounting consolidation

3. $16.65m in capital raised via institutional and strategic placements to fund strategic growth opportunities like the acquisition of Pixowl Inc., the collaboration with iClick Interactive Asia Limited (NASDAQ: ICLK), the investment into Dapper Labs, the creators of CryptoKitties , and the acquisition of the Zeroth AI accelerator and its management company, Venture Classic, as well as working capital and research and development. Participating investors included chairman Yat Siu, director Holly Liu, strategic advisor Wilhelm Taht, strategic partners Sun Hung Kai and Lympo, Katherine Yip (founder of Pacific Alliance Group and co-founder and partner of Vina Capital), Moses Tsang (founder of AP Capital and founding chairman of Goldman Sachs Asia Pacific), and Sonny Vu (founder of Misfit and director of OliveX)

Operational
1. Hit games Crazy Kings and Crazy Defense Heroes lead strong performance in the core games portfolio, bringing in over $2.8m in revenue in the first quarter alone
2. Acquisition of Pixowl Inc. , the creators of The Sandbox , world builder games featuring the Snoopy, Garfield, Goosebumps, and Wonder Park intellectual properties, and the blockchain edition of The Sandbox
3. Acquisition of Tribeflame Oy , the creators of Benji Bananas, co-located in Turku, Finland with TicBits, the team behind the Crazy Kings franchise
4. Acquisition of Fuel Powered , the development partner of Dapper Labs and Axiom Zen,
the creators of CryptoKitties
5. Acquisition of the Management shares of Zeroth.ai , Asia’s first AI startup accelerator, with a portfolio of 33 companies (and over 60 as of the date of this report) in the burgeoning field of machine learning
6. Partnerships with leading blockchain companies OST, Helix, Mind Fund, Decentraland,
Datum, LikeCoin, Lympo, Musicoin, Harmony, and I-House
7. Spinoff of OliveX AI fitness subsidiary and partnership with Lympo as a strategic investor for blockchain AI fitness products, and Sonny Vu, the founder of Misfit, as a director and strategic investor
8. Licensing of Beast Quest brand from Coolabi Licensing Limited to create a tower defense game based on the hit children’s fantasy franchise, which has sold over 18 million books
9. Partnership with Atari to create blockchain versions of Atari’s hit game titles Rollercoaster Tycoon Touch and Goon Squad
10. Partnership with iClick Asia Interactive Ltd (NASDAQ: ICLK) , China’s largest independent
online marketing platform, which is expected to generate revenues of $11m in 2019