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DeFi Technologies Refiles Interim Financial Statements for 2024

In an important move aimed at maintaining transparency and accuracy in its financial reporting, DeFi Technologies Inc. has recently announced the refiling of its interim financial statements for the second and third quarters of 2024. This action, effective April 14, 2025, underscores the company's commitment to uphold the integrity of its financial disclosures as it navigates the evolving landscape of decentralized finance (DeFi).

Understanding the Restatement

The decision to restate the financial documents follows a comprehensive review of the company's accounting practices regarding its investments in digital assets. Specifically, DeFi Technologies adjusted the accounting treatment of its equity investments by applying a discount for lack of marketability (DLOM). This adjustment accounted for fluctuations in the valuation of its holdings, a necessary measure designed to provide stakeholders with a clearer view of the company's financial health.

For the second quarter ending June 30, 2024, the adjustments indicated that a DLOM of $98,657,552 was applied. This led to the reclassification of $122,794,452 worth of equity investments from current to non-current assets. As a consequence, the net loss for the quarter was elevated by $98,657,552. Similarly, for the third quarter ending September 30, 2024, a DLOM of $3,892,283 contributed to a cumulative loss adjustment totaling $102,549,835 over the affected periods.

It's crucial to note that these modifications are not indicative of the company's cash flow situation; they were specifically carried out to refine asset valuation methodologies. All disclosures in the restated financials largely mirror those presented when the documents were originally filed, reflecting the routine nature of ongoing operations, apart from highlighted material weaknesses in internal controls prompted by the restatements.

The Significance of Transparency

DeFi Technologies' proactive approach in readdressing its financial stance is particularly significant in today's tumultuous market. As companies within the financial technology sector analyze their positions amid increasing regulatory scrutiny, transparency remains paramount. Investors and stakeholders are advised to be cautious regarding previously issued financial information related to the affected periods as DeFi Technologies emphasizes the need to revise its records to prevent any misconceptions about its fiscal performance.

As a part of its ongoing commitment, DeFi Technologies continues to advocate for best practices in financial reporting, ensuring that its narrative remains robust and trustworthy in the eyes of investors and clients alike.

About DeFi Technologies

DeFi Technologies Inc. is at the cutting edge of financial technology, focusing on bridging traditional capital markets with the promising sector of decentralized finance. Leveraging advanced Web3 technologies, it aims to create accessible financial solutions for a broader audience. With an esteemed team of experts seasoned in financial and digital asset markets, the company is set on revolutionizing investment methodologies to align with the rapidly shifting financial ecosystem.

In tandem with its subsidiary Valour, which specializes in delivering exchange-traded products (ETPs) for easy digital asset access, DeFi Technologies stands as a pillar of transparency and innovation in the evolving landscape of financial technology. For ongoing updates, stakeholders are encouraged to follow DeFi Technologies on platforms like LinkedIn and Twitter or visit their official website at defi.tech.

In conclusion, the refinance of financial statements by DeFi Technologies highlights the essentiality of accurate and transparent financial reporting in building investor trust and ensuring continued growth in the DeFi space.