Key points ● The Company recognised record cash receipts of $3.6...

Key points
● The Company recognised record cash receipts of $3.6 million for the quarter
● Record unaudited revenues of approximately $8.2 million for the quarter, including one-off items
● Positive operating cash flow of $0.26 million received during the quarter
● The Board of Directors is strengthened by the addition of Holly Liu and Chris Whiteman, as well as Wilhelm Taht joining as a strategic advisor
● The Company announces a global licensing deal with the Coolabi Group to develop a mobile game based upon the hit children’s fantasy novel franchise Beast Quest
● Animoca Brands partners with Red Robot KK to develop, market, and operate a gamified cryptocurrency wallet app
● Proposal by the Company is awarded a grant by a Hong Kong government fund to develop an AI-based exercise app
● Post the quarter, Animoca Brands raised $4.5 million in a heavily oversubscribed placement to strategic investors and signed a landmark deal with HTC Corporation, a global leader in the innovation and design of smartphones, connected devices, and virtual reality
Positive operating cash flow and record cash receipts
During the Quarter, receipts from customers grew 7% quarter-on-quarter and 92% year-on-year to a record $3.6 million. The Company recognised a second consecutive quarter of positive operating cash inflow ($0.26 million), continuing the strong performance of Q1 2018.
Operating cash outflows during the quarter included an increase in staff costs on Q1 2018 as a result of certain annual bonus payments and salary increases, while cost of sales (reflected as “product manufacturing” in 1.2(b) on the 4C) rose as a result of the increased revenues recognised. Advertising and marketing expenditure continued in line with Q1 2018, with spending geared towards key product lines such as the Crazy Kings franchise and CryptoKitties.
The Company ended the quarter with $2.4 million in cash, which represents a net increase of approximately $218,000 on the cash at the end of Q1 2018.