RChain’s Recently Released Financials Show Substantial Losses Despite $22.2 Million for Its ICO
RChain, a company that has set out to become the completion of Ethereum, published the financial statements to show the comparison between last year and this one. The statement from 2018 showed that the cooperative was able to reach $22.2 million in income, based on the sales they made of its own token, along with other cryptocurrencies. Unfortunately, their expenses surpassed that income at $26.3 million, leading to a loss of over $4 million this year. Still, regardless of the loss, the $RHOC token has a market capitalization of $5.2 million, as detailed in a report from The Block.
The Block also managed to uncover that RChain Cooperative was considered to be “functionally bankrupt” in December, which followed potential mishandling of funds. This issue stemmed from the lack of completed balance sheets and buying a million-dollar house.
Within the income statement, the company reveals that 64.5% of the expenses came from items released to “strategic partners.” Essentially, they appeared to be mostly related to an audio codec from Immersion Networks. Though there is over $5 million that has been left unpaid, it is not meant to be paid “for quite some time,” says RChain.
The balance sheet from February 20th shows that the cooperative had $2.9 million in assets, while total liabilities added up to $10.4 million. If all liabilities were paid, the total value of the assets involved related to the business would be a negative $7.5 million, and the company is only holding $1.5 million in cash.
At this point, The Block believes that RChain is not far from being dissolved. If that happens, the cooperative has expressed interest in adding RSong, which is a separate entity that would basically continue RChain without worrying about the “financial challenge” that it is facing, according to business development executive Rudy Harper of RChain. This entity would end up being assigned the Immersion Networks license.