Welcome to the Tokens.com Q1 financial update call. My name is Richard and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you have a question, please press zero one on your touchtone phone. As a reminder, the conference is being recorded. I'll now turn the call over to Andrew Kiguel. Mr. Kiguel, you may begin. Thank you very much. Welcome everybody to the Tokens.com Q1 call. We have the management team on the line here. Just to dive into this quickly, some of the highlights for Q1. Net income of $7.7 million. These are all US dollars. Comprehensive income of $6.57 million, which came in at $0.08 per share and $0.07 per share respectively. We had digital asset growth of 5% from Q4. Staking rewards equated to an annualized rate of 11.4% on our original cost base. We did a successful completion of Metaverse Fashion Week, which I'll talk about in a second. We had the successful launch of Hulk Labs, which is a new subsidiary focused on the play-to-earn crypto gaming sector. Metaverse Group continued its growth trajectory, expansion of services and purchase of additional assets and onboarding several new tenants, as well as the completion of Tokens.com Tower. With respect to the Metaverse Fashion Week, just some key bullet points. Visitor traffic over the course of the show of over 100,000 visitors. Over 1 billion media impressions. 60 brands that participated in attendance. For the storefronts that we built, visitors spent an average of 27 minutes, which is quite good and far more than most people spend on a website and incomparable to what people might spend in a physical store. With that, I'm gonna turn it over to Ian Fodie, our CFO, to do a high level review of the financial results. Ian. Sure. Thanks, Andrew. Before I jump into the operating and financial overview, I just want everyone to understand that the comparative numbers for the three months ended March 31, 2021 are really not comparable to the numbers for March 2022. That is because in the three months of 2021, those were activities prior to when the company completed its reverse takeover and did its concurrent financing. I won't comment on any of the comparatives. As far as the three months ended March 31, 2022, as Andrew mentioned, we have revenue of $326,000 from our staking and other minor revenues, which equates to about 11.4% return, annualized return on the cost of our staked tokens. Our operating expenses totaled $958,000. We had a revaluation of our digital assets in total of $3.4 million. $2.3 million was allocated to the income statement in the way of losses. The losses of 1.1 million that were allocated to OCI were a recoupment of previous period gains that were recorded in OCI. The other large item that we have on our income statement is the gain on the revaluation of the warrants liability. That is an amount that's carried as a liability that gets pegged to the company's stock price. Because it dropped from year-end to March 31, we then had a reduction in the liability and therefore recorded a gain of $10.7 million on our income statement. That is where we get to the final net income number of $7.765 million, which equates to CAD 9.7 million. After the revaluation of digital assets in OCI, we have a comprehensive income of $6.5 million, which equates to CAD 8.2 million. On the balance sheet side, the company's got a strong balance sheet. Well, we had $9.7 million in our bank at December 31. We have a total of almost $5.9 million still in the bank at March 31. You can see that we had a slight increase in our digital assets. Note three in the financial statements provides a summary of the activity. We ended up purchasing a total of $6.8 million worth of digital currencies, which was $4.9 million of cryptocurrency and $1.8 million of NFTs, primarily through Metaverse, our subsidiary. We sold close to $2.5 million of digital assets, and we earned rewards of almost $300,000. We had a small loss on disposal of $266,000 as we were rebalancing our portfolio. Then the revaluation of our digital assets in total, as I said, was a reduction of $3.4 million. That brings us to our $31.8 million total digital assets at the end of the quarter. Liabilities are $6.7 million, largely made up of $4.5 million relating to the warrants liability that I mentioned a bit earlier. Our total shareholders' equity therefore results in $34 million, of which $4.8 million relates to the non-controlling interest value of Metaverse that we do not own. The other side of it is that our working capital, which is net assets less current liabilities, remains strong at $35.8 million. A slight reduction from December 31 at $38.6 million, but still very strong. On that basis, I will pass it back to Andrew. Thanks, Ian. Just a couple of things to touch base upon. I think one of the questions I've been receiving a lot recently is with respect to our Terra Luna position. You know, I'm happy to tell shareholders that we did get out of 90% of that position prior to the collapse. We did sell those tokens at a price higher than that which we purchased it at, not at the peak where they hit. When we started hearing some of the noise around the uncertainty of that, we took immediate action and disposed of that. Well, thankfully, we did not have that loss on that token. It essentially went from, you know, well over $100 to pennies in about 48 hours. In terms of us, you know, while we don't view ourselves as portfolio managers, you know, we do the staking as in terms of performing a service, validating transactions for processing blocks. We are always on a daily basis monitoring what's happening in the crypto markets. We're looking around and seeing, you know, what we're hearing. If at any point we hear or find something that feels shaky or uncertain about a certain token, we look to dispose of that very quickly to protect shareholder value. Certainly, you know, the markets this year and as a result largely of that, the Terra Luna, the crypto markets have retreated, particularly in the last week or so. We have seen this before. Anybody who's been around crypto for a while knows this, you know, this happens almost annually. The things that we're seeing is that the pullbacks seem to last a shorter period of time, certainly the education level and the interest level in crypto continues to remain strong. The market as a whole has really not been positive this year. You know, the Nasdaq is up over 25%. The S&P is up about 16%. There's a rotation out of tech to other types of assets, and that certainly is a small cap, you know, area and, you know, related to crypto. Web3 is certainly separate from that. We recognize that. Again, as always, we're always trying to do our best to build shareholder value. While the stock market is a popularity contest for that day, we're always trying to look ahead. With respect to that, just to touch base on the three verticals that we operate. The staking operations are still there. They're going. We're continuing to earn additional tokens every second. Obviously, if the value of those tokens pulls back, that impacts our digital asset value and some of the staking return on capital. Again, we feel this is temporary. We have strong basis and confidence in the longer-term ability for the tokens that we own to perform well. Metaverse Group continues to excel and do extremely well. The fashion show, as I mentioned, some of the statistics drew a lot of attention. It brought a lot of attention to us. The company, a couple months ago, started generating revenue, which is very positive, and I believe at this point has over 20 paying tenants with a pipeline of over 100 that they're in conversations with for as potential new tenants. That business continues to grow. We've press released that we expanded the services there to provide consulting. There's all sorts of different things that are going on there as well. Lastly, I'll just touch upon Hulk Labs. That was a new venture that we started this year. We're excited to start developing that. There's a lot of exciting things that we're doing there. As those develop, we'll start putting out press releases on those. Again, management is very focused here on getting through what is a very volatile time, not just in crypto, but in the stock market in general. We remain confident in our businesses and we'll continue to build them regardless of what's happening in the capital markets. With that, Richard, we can open it up to questions. Thank you. We will now begin the question-and-answer session. If you have a question, please press zero one on your touchtone phone. If you wish to be removed from the queue, please press zero two. If you're using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press zero then one on your touchtone phone. Our first question on the line comes from Joe Gomes. Please go ahead. Good afternoon. Thank you, Andrew, for taking that update and taking the questions. Hey, Joe. The first question, you gave a lot of good statistics there on the Fashion Week and Metaverse. I was wondering, and you gave right at the end there a couple data points about 20 paying tenants and conversations with 100 more. Just like a little more detail or color, if you could, on you know what the average tenant is paying, you know what kind of revenues can be generated you know from these discussions that you're having. Given what the market has been doing lately, does it make sense to buy in the rest of Metaverse if that is available? Okay. Two questions there. To your first question, every deal looks slightly different. Some are pretty basic, and they're just cash-based, frictionless ways for companies to have a digital billboard or have something created, in the Metaverse, and we get compensated for that, and it's just a straight cash deal. The other types of deals that we're looking at and why it makes it very difficult for us to predict the revenue here are ones that can provide potentially asymmetric gains. I'll give you an example. Some of the things we're looking at is where we will team up with a brand, and we're in several conversations like this. These would be sort of strong global brands or celebrities. The idea is to team up with them, share in the cost of the build so that you know, Metaverse Group has some additional skin in the game, not just as a service provider, but also the ability to receive a portion of the sales. Based on various contracts that we've done, we've seen us be able to contract out anywhere from 5%-50% of the sales. Those types of contracts are particularly more interesting to me because they can provide for massive gains. You know, while the market, the NFT market has pulled back right now, you still see a tremendous amount of potential there and, you know, among the user base, and we think that'll come back. If you hit the right brand with a good crypto product or a wearable for an avatar, that could result in millions of dollars revenue. Again, hard to predict at this point. To your second question, would we invest in Metaverse Group? Absolutely. It's always been something that I've wanted to do. I think the main thing prohibiting us from doing that right now is our share price. You know, I believe that our company is hugely undervalued, and I'm sure that's not unique to me. Most CEOs these days are saying that. You know, there's many things on our balance sheet that aren't reflective. For example, the value of Metaverse Group or Hulk, yet we're trading below the value of our assets in the market. I think, you know, from my studying of sort of transactions in history of companies that succeed and survive and do well, it comes from being a little maniacal about when you have to issue equity and being smart about when to issue equity. Rightly or wrongly, when I look at our current share price today, and it's up today, but we're still trading at about CAD 0.60, call it. I just don't view this as the right time for us to dilute unless it was something, you know, spectacular. There's a possibility of us vending in something with Metaverse Group on the horizon, always. It's gonna be dependent on the share price. I don't think, you know, as the largest shareholder of the company, I wouldn't be happy diluting here, which means I don't think other shareholders would be happy with us diluting here either. Okay. Fair enough. Thanks for that detail. Kind of a similar question, you know, on Hulk Labs. Really exciting space, I think. I mean, how close are you to, you know, that unit starting to contribute on the revenue side? You know, how fast do you think you can expand on the play-to-game or play-to-earn gaming? The goal is to have that unit generating cash flow in Q3. We're talking about weeks, not months away. I believe that unit will be self-sufficient and be another home run for us before the end of the year. Currently carried on our balance sheet at zero. Okay. One last question. If I could sneak one in here before I get back in queue. It's kind of a follow-up to the Metaverse question also. You know, again, given what's happened here in the market, are you seeing assets, whether it be in the Metaverse or even cryptocurrencies, where they're becoming so attractive to you that you're saying, "Hey, let's look at investing some more additional capital in some of these assets." You know, without telling me exactly what they are, you know, kind of give us an idea of where you're looking hardest at right now. Yeah. We continue to look at the Layer 1s. You know, through all of this stuff, when I look at where we've been successful, you know, probably the most. Boring is the wrong word. If you can actually use the word blue chip in crypto, the most blue chip things you can buy in the market would be Bitcoin and ETH. We're not a Bitcoin company. There's plenty of other places investors can get exposure to Bitcoin that's not Tokens.com. When I look at the overall performance of ETH, it's always done well for us. We've always managed to do really well with it. With the Merge happening, the staking payouts of that in additional tokens is gonna be equal to, you know, somewhere between 14%-15%, which is phenomenal for what is probably one of the best performing assets. We look at things like, you know, Anchor. Anchor had this real fast rise. We got in on it early. Fell faster than anything I've ever seen fall. Just completely disintegrated. You look at Solana, similar. Sometimes with this, on the staking side, what we're really looking to do is generate additional tokens. We're looking to sort of invest in the blue chip areas. We're not trying to be fund managers here. We're not a hedge fund. We don't want to be trading in a lot of this stuff. You know, we're having a hard look at some of the stuff that's in the top five or six. Things like Avalanche, ETH, Polygon, things like that I think make sense. We still see really great use cases. You know, especially in the case of ETH, it withstands the test of time to show like, hey, this is something that's, you know, showing longevity. We are taking a strong look, and we have been making some purchases in the market as well with at some of these levels. Okay, great. Thank you. You're welcome. Thank you. Once again, for any questions or follow-ups, that's zero then one on your touchtone phone. Our next question on the line comes from Adam. Please go ahead, your line's open. Thank you. Andrew, I just had a question around Hulk Labs. I don't even know what I don't know, and I may be similar to others. When I try to find information, it's difficult. My questions are around I know you've mentioned in the past there's guilds of players, and they'll be playing these play to earn like BitBrawl and Arcade Land. Are these players gonna be considered employees, or is there some sort of a contractor signing? How will that all work to somebody like me who went to public school and doesn't understand all this stuff? Right. We're working through that. They will not be employees. You know, we're not planning on bringing on, like, thousands and thousands of people to play video games for us. I think what we're trying to do is, if you look at what other early-stage companies have done here, they have found a way to enable people to play. One of the things you can do in crypto that's interesting is you can provide permission to an asset to someone else without them ever actually owning it or having custody of it. The idea here is that we can provide permission to these players who will play the game, and they'll be rewarded based on their performance. Based on some of our calculations, and Deven, who's the main lead on that operation, can speak to it. We're seeing if that can compensate a player, you know, somewhere around $4 an hour. $4 an hour is not anything in North America that somebody would be like, "Oh, great. Would love to do that." In many third world countries, that's actually a substantial wage that can actually pay people for having a job like that and give them a pretty good lifestyle above what they might be doing elsewhere in a safer environment, working on, you know, on a computer. The idea is that we'll start off with our own capital, permitting the assets to players that will act almost like consultants. They'll be their own players. They'll get a commission, a small commission based on their playing, and it'll depend on how long they play and how successful they are. The rest would come to us. Eventually what we'd like to do is once we've proven that out and that business is doing well, is that we'll make that available to third parties. Very similar to how staking entities have become billion-dollar entities by providing the ability for people to stake and make a return, we're gonna provide institutions and people the ability to earn returns off of these games by offering them access to our player network. Does that make sense? Yeah, it makes sense. It's just all so new and, I'm just, I get a ton of questions from friends of mine that don't quite understand how all that works. I think that. Yeah. Some more educational stuff on the website or via YouTube I think would draw a lot more eyes in my opinion. Well, let me ask Deven who's online. Is the Hulk Labs website up now? The website itself is up. Yeah, it's on the phone too. There's a mobile version that looks decently well. It's just, there's just lack of info and I'm just wondering how do we get this to thousands of eyeballs? It's a great question. Hi, Deven Soni, who's the COO and managing the operations of Hulk. You know, your question is a really good one, and it's such a new space and there's a lot of people that want to learn about it. We're really taking our website in that direction. I think in the next coming weeks, what you'll see are, you know, some overview videos, some calculators to show, you know, what earnings are. You know, the calculators that show the games that are getting the most traction, things that we're bullish about. Definitely stay tuned. You know, it's something we're investing a lot of energy into is, you know, creating an outlet for education for people in this space. We certainly will be sharing more of that with our token investors as that gets built out. Cool. Thanks. There's a little bit of us also trying to protect it. We think we have something really special here that we're working on, and we don't want to give out all the secrets because, you know, a lot of the things we do tend to inspire other people to copy us. We think we're onto something very cool here. We will start disclosing more information as the business develops. There's also a protective aspect to it as well. Makes sense. Thank you. Again, for any questions on the line, that's zero then one on your touchtone phone. At this time, I'm showing we have no further questions. Correction. We have a question that just queued up from Bruce Henn. Please go ahead. Hey, Andrew. How are you doing? Hey, Bruce. Quick question. When would the valuations that you had mentioned on the last call, regarding all the digital land, when would that be part of the financials? Because you had put a valuation pretty high. Is it hard because of how you can determine what that is? That's a hard question and I'll tell you why. When you see the financial statements that are here, and by the way, these financial statements were reviewed by the auditors as well, which we get voluntarily. Mm-hmm. Auditors have a very different perspective in terms of the value of something. The best thing that we can do is continue to grow these businesses. I think the values get cemented when, number one, there's a price point or something else we can point to or something that validates those valuations. At this point, we're not quite there yet, and we're also building businesses. Again, something like Hulk in Q1, we're doing all the planning, all the strategic stuff. We know that business has value because we've been receiving a lot of interest from venture capital funds in investing in that business for values that are a lot higher than zero. However, you can't take that to an auditor and say, "Hey, we have interest from someone who says they would invest in this company. Can you value it up to that level?" It just doesn't work like that. It's generally done on book values, and it's always gonna be a little bit behind. It's a good question. I think as we move forward and we start to put some things in place, we'll be able to sort of put pins into some of those values a little bit better. Ian, I don't know if you wanna provide some comment on that as well in terms of the difference between what might be a private market value for a business versus how it's accounted for. It's a bit difficult to answer, Andrew, so there's not really much more I could add than what you've already said. Yeah. Okay. Bruce, I don't know if that's. Yeah, I appreciate that and as always appreciate. Remember, auditors, when we're dealing through auditors, we're always looking to find the most conservative approach to show the value of the things that we own. Mm-hmm. However, in the market, when we're talking to VC funds and various groups, obviously we're seeing valuations for some of our assets that are higher than what they reflected for on the books. Got it. Appreciate it, and appreciate all you guys do very much. Thank you. Thank you. All right. We have no questions in queue at this time. Okay. Yeah.