Norwegian Block Exchange : Annual report 2023 highlights

Norwegian

Block

Exchange

Annual Report 2023

• It seems 2023 was bottom year in the crypto market cycle with Q4 MNOK 136.4 and total 2023 at MNOK 428.7. Down 23.6% from 2022 at MNOK 629.

• In 2023, our platform experienced consistent and stable, but low, growth across all user groups, with no significant spikes or dips observed.
• No marketing efforts, most marketing expenses where customer referrals.

• 2023 ending at 88,000 registered users and 35,000 verified users.
• Slow growth corresponds well with crypto-winter

• Launch delayed with over 6 Months. Increased expenses and delayed return.
• Well received by cardholders.
• At the time of reporting monthly spending have passed 8 MNOK.
• 50K Credit limit, seeing positive revenue streams from interest bearing debt.
• Changed cashback from 0.5 - 4% to 1% - 4%
• Supports Applepay and Googlepay

Operating income

• Total operating income increased by 17%, while income from trading on the platform fee decreased by 8%.
• This discrepancy is because NBX extended its services to staking pools, tokenization, consulting for Norges Bank, compliance and custody.
• Trade voluime 480 MNOK down from 629 MNOK (-24%)

Operating expenses

• Reduced staff through-out 2023 from 24 to 14. (ex. 6 devs)
• Increased depreciation with 2.2MNOK

Other operating expenses:

• 0,6 MNOK Marketing
• 0.9 MNOK audit and legal services
• 5.4 MNOK for software licenses, cloud services and computing
• 6.6 MNOK for services for customers
• 1.2 MNOK other office and travel costs
• 0.9 MNOK staffing

Financial income and expenses

• Increase in financial income mainly due MM and agio, as OTC decreased -60% and staking -39% from 2022.
• Interest expenses are funding through convertible debt. This had no cash flow effect.