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SRX discloses EMJX “hypothetical” 4.3% gain, shows quarterly losses
SRX reported $8.333 million in company-wide digital-asset balances at the start of the quarter, ending at $2.120 million after a $1.410 million fair-value loss, with no EMJX segment results disclosed for the post-acquisition window.
SRX Global disclosed an EMJX result described as “hypothetical” and “system-generated,” labeling a 4.3% gain for the period from June 16 through June 30 as not representing actual trades or returns earned on capital invested by the company, according to CryptoSlate.
The acquisition was completed on June 16, about two weeks before SRX’s fiscal third quarter ended. In its Aug. 13 results release, SRX said the 4.3% figure did not reflect real trading results on company capital, and CryptoSlate notes the later disclosures still do not connect EMJX’s model output to any attributable returns from SRX-held positions.
CryptoSlate also pointed to SRX’s Form 10-Q digital-asset figures showing company-wide balance sheet movement rather than an EMJX-controlled performance measure. SRX began the quarter with $8.333 million in digital-asset balances, recorded no purchases, received $4.803 million in sales proceeds, logged a $1.410 million fair-value loss, and ended the quarter with $2.120 million.
SRX reported a $4.140 million net loss from continuing operations for the quarter, including a $3.201 million operating loss and $939,000 of net other expense that encompassed the digital-asset fair-value change. CryptoSlate reports that SRX recorded no reportable EMJX segment revenue, operating expenses, or other segment results for the June 16 to June 30 ownership period, and management said additional performance information would follow after deploying a meaningful history of capital.