Allocated Bullion Exchange Finally Filed FY 2022 Financial Statements with ASIC

TL;DR: there is still a going concern qualification from the new auditor

Thanks to a helpful, good Samaritan, we can now offer readers the complete FY 2022 Bullion Capital and Allocated Bullion Exchange (ABX) financial statements, along with some initial thoughts and questions. We believe in open source investigations, and there are 69 pages to digest, so let’s dig in together.

To begin, we must acknowledge that ABX did have a profit of almost $7 million AUD for FY 2022, as promised by Thomas Coughlin (CEO of ABX, Bullion Capital, and Kinesis) earlier this year; however, those “profits” were facilitated almost entirely by more than $20 million AUD in payments from Kinesis Cayman to ABX.

ABX related party transactions

This is somewhat difficult to reconcile since Kinesis only generated $5.1 million USD ($7.4 million AUD) in fee revenue in FY 2022 and Kinesis claims to share more than 50% of fee revenue with KAG, KAU, and KVT security token holders. Where did this money come from?

Furthermore, Kinesis fee revenue plummeted by 70% in FY 2022, as compared to FY 2021, while at the same time, payments from Kinesis Cayman to ABX nearly quadrupled from $6.5 million AUD to more than $22 million AUD.

Kinesis fee revenue

ABX had a profit, technically, on paper, but what about the auditor’s opinion? Earlier this year, Coughlin assured investors the next ABX audit would not have a qualification. That did not turn out to be the case.

ABX auditor qualification

Readers may also notice that these are new auditors, hired in January 2023 after these statements were already overdue.

What did ABX do with all the money it received from Kinesis Cayman? Among other things, it paid out almost $4 million AUD in salaries and benefits, almost $6 million AUD in “professional fees,” $2 million AUD in “software development”, $1 million AUD in “other expenses”, and it paid down more than $5 million AUD in loans from related parties.

ABX Expenses

ABX related party loans

ABX also lost more than $3.3 million AUD in foreign exchanges transactions.

ABX FX losses

Could that be related to their dealings in Turkey?

TRY/AUD Chart

As ABX continued to receive millions from Kinesis Cayman, Kinesis fee revenue plummeted from a peak of $6.3 million USD in April 2021 to less than $150,000 USD in October 2023.

Up next, a look at Bullion Capital’s FY 2022 financial statements. If you haven’t already, download the complete FY 2022 statements and take a look for yourself.