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NETSOL Technologies Reports Fiscal Second Quarter 2020 Financial Results

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Sequential Topline Growth of 16% Drives Profitable Quarter with $0.05 Earnings Per Share

Company Advances Three-Pronged Growth Strategy: Alternative Subscription Option Leads to Bolstered Pipeline; Advanced Discussions with Potential for New Engagements Through Otoz; Continued Progress and Technological Advancements in Innovation Lab

CALABASAS, Calif., Feb. 12, 2020 (GLOBE NEWSWIRE) — NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, reported results for the fiscal second quarter ended December 31, 2019.

Fiscal Second Quarter 2020 and Recent Operational Highlights

  • Regarding previously announced 12-country, $110 million contract with German auto manufacturing giant, the Company made continued progress with respect to additional NFS Ascent® implementations and anticipates Go Live events in the coming months for the following countries: Singapore, Malaysia, and Thailand.
  • As part of the above-referenced contract, achieved a successful Go Live in Hong Kong with the NFS Ascent® Retail Platform, consisting of Omni Point of Sale (Omni POS) and Contract Management System (CMS).
  • Introduced Software-as-a-Service (SaaS) subscription-based pricing for new and existing customers as an alternative to the traditional license model, which is now available for all cloud-based NETSOL products and services globally, including NETSOL’s flagship offering NFS Ascent®.
  • NETSOL North America secured a contract with SCI Lease Corp, a Canadian-based national automotive leasing company, for its Contract Management System (CMS) on the cloud, representing the first SaaS-based agreement for Ascent in this region.
  • Announced the official Go-Live with mCollector application for a top tier multi-finance company in Indonesia, as part of a larger contract originally signed in 2018.
  • Made significant progress towards the deployment of NFS Ascent® Retail Platform for a New Zealand-based captive equipment finance company.
  • Made significant progress towards the deployment of NFS Ascent® Wholesale Platform for a U.K.-based leading auction house.
  • Generated additional $2.0 million by providing additional services for various customers across multiple regions.
  • Appointed industry veteran Chris Mobley as the new Head of NFS Ascent® Wholesale operations in Europe with the goal of leading the rollout of NETSOL’s new, subscription-based pricing strategy, orchestrating the company’s European-focused growth plans and leading pre-sales of the company’s Wholesale operations globally.
  • Made further advancements in certain Otoz Innovation Lab initiatives, leading to multiple discussions, demonstrations, and potential engagements with a several tier one customers in the U.S. and Asia Pacific (APAC) regions.
  • Announced NETSOL’s “Cloud Readiness” campaign during the 20th anniversary of the company’s listing on Nasdaq as part of its participation at the closing bell ceremony in late January.

Fiscal Second Quarter 2020 Financial Results
Total net revenues for the second quarter of fiscal 2020 were $15.7 million, compared with $17.0 million in the prior year period. The decrease in total net revenues was primarily due to a decrease in total license fees of $4.4 million, which was offset by an increase in services revenues of $1.8 million and an increase in total maintenance fees of $1.3 million.

  • Total license fees were $384,000, compared with $4.8 million in the prior year period.
  • Total maintenance fees were $5.0 million, compared with $3.7 million in the prior year period.
  • Total services revenues were $10.3 million, compared with $8.5 million in the prior year period.

Gross profit for the second quarter of fiscal 2020 was $7.8 million (or 49.7% of net revenues), compared to $8.9 million (or 52.1% of net revenues) in the second quarter of fiscal 2019. The decreases in gross profit and gross profit as a percentage of revenue were primarily due to decreases in revenue by an amount that was greater than the related decreases in cost of revenues, respectively. The decrease in cost of revenues was predominantly driven by decreases in travel, depreciation and amortization and other expenses, which were offset by an increase in salaries and consultants’ costs.

Operating expenses for the second quarter of fiscal 2020 increased 6.4% to $7.1 million (or 45.2% of net revenues) from $6.7 million (or 39.2% of net revenues) in the second quarter of fiscal 2019. The increase in operating expenses was primarily due to increases in general and administrative expenses, which were offset by decreases in sales and marketing expenses, salaries and wages, and professional services.

GAAP net income attributable to NETSOL for the second quarter of fiscal 2020 totaled $586,000 or $0.05 per diluted share, compared with GAAP net income of $2.9 million or $0.25 per diluted share in the second quarter of fiscal 2019. GAAP net income attributable to NETSOL included a $61,000 gain on foreign currency exchange transactions in the second quarter of fiscal 2020, which was a significant decrease compared with a gain of $2.5 million in the prior year period.

Non-GAAP adjusted EBITDA for the second quarter of fiscal 2020 totaled $1.6 million or $0.13 per diluted share, compared with non-GAAP adjusted EBITDA of $4.1 million or $0.35 per diluted share in the second quarter of fiscal 2019 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).

At December 31, 2019, cash and cash equivalents were $22.1 million, an increase from $20.3 million at the end of the prior year quarter.

Management Commentary
“The fiscal second quarter was a positive step forward for our business as we continue to position NETSOL for its next phase of growth in the years ahead,” said company Co-Founder, Chairman and Chief Executive Officer Najeeb Ghauri. “The 16% sequential improvement in our topline was the result of ongoing and significant implementation work within our core business, which also included an additional $2.0 million in change requests, yet another favorable data point that underlies the ongoing industry shift to more complex deployments. While our year-to-date results reflect our ongoing efforts to transition NETSOL towards a more diversified revenue mix, in Q2 we maintained our commitment to financial prudence, most notably evidenced in our return to profitability during the period.

“Operationally, we began the initial application of our three-pronged growth strategy, which has yielded already-favorable results. More specifically, in November we closed our first official sale of NFS Ascent® in North America, which also represented the first SaaS-based agreement for Ascent in this region. Additionally, our mobility-focused work within our Otoz Innovation Lab has garnered serious attention from potential and existing customers alike, which we expect to materialize in increased demos, more advanced development discussions, and even pilot projects in the coming months. Looking to the second half of the year, with our current pipeline as well as ongoing major rollouts with existing customers, we have strong visibility to reaffirm our expectations for sequential improvement throughout the balance of fiscal 2020.”

Sales Outlook
NETSOL President, Global Sales and Otoz CEO Naeem Ghauri added: “While we are continuing to sell add-on services and more licenses for existing contracts, we’re also now generating new opportunities at an increasing rate for our subscription pricing, or SaaS, model. While it remains early days, we are encouraged by the strong initial interest we’ve seen and believe our decision to diversify our offerings beyond the traditional license sales will lead to long-term, predictable revenue growth. Going forward, we have visibility into a growing pipeline within all three of our geographic regions, which we anticipate to result in sequentially improved results in the second half 2020. Further out, we’re working towards an eventual inflection point where annual recurring revenues, or ARR, can supplant our current license revenues and provide sustained profitability.”

Otoz Update
“We are actively discussing various partnerships and collaborations with several tier one customers to launch Otoz as a premium, white-labeled, shared mobility platform and believe we are close to announcing official agreements soon,” continued Ghauri. “While we continue to build out the platform according to our predefined product roadmap, interest in the platform is tracking ahead of internal targets and forecasts, which has us ramping up efforts to meet demand. We look forward to providing more updates on these roadmap developments as well as potential partnerships in the near future.”

Conference Call
NETSOL Technologies management will hold a conference call today (February 12, 2020) at 11 a.m. Eastern time (8 a.m. Pacific time) to discuss these financial results. A question and answer session will follow management’s presentation.

U.S. dial-in: 1-877-407-0789
International dial-in: 1-201-689-8562

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcasted live and available for replay here and via the Investor Relations section of NETSOL’s website.

A replay of the conference call will be available after 2:00 p.m. Eastern time on the same day through February 26, 2020.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13698709

About NETSOL Technologies 
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global finance and leasing industry. The company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1,300 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent® – help companies transform their finance and leasing operations, providing a fully automated asset-based finance solution covering the complete finance and leasing lifecycle.

About Otoz
Otoz provides business-to-business, white-label technology solutions for new mobility. Our suite of agile and customizable mobility solutions ranges from car sharing and subscription products to AI-enabled chatbots, allowing businesses to engage consumers and facilitate the complete transaction lifecycle intelligently and digitally. Otoz technologies empower automotive companies and start-ups to launch new mobility models quickly and efficiently. The technology Otoz has developed is cloud-native and supported by artificial intelligence (AI), machine learning (ML), internet of things (IoT) and blockchain. Our technology drives utilization, while supporting robust and efficient operations.

Forward-Looking Statements
Certain statements in this press release are forward-looking in nature, including, but not limited to, expected net revenue and the demand for and sales lifecycle of NFS Ascent® and the outlook or potential demand for new product lines and innovation such as for Otoz or NFS Ascent® SaaS, and accordingly, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company’s actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.

Investor Relations Contact:

Matt Glover and Tom Colton
Gateway Investor Relations
1-949-574-3860
investors@netsoltech.com

NETSOL Technologies, Inc. and Subsidiaries
Schedule 1: Consolidated Balance Sheets

      As of   As of
  ASSETS December 31, 2019   June 30, 2019
Current assets:      
  Cash and cash equivalents $ 22,083,584     $ 17,366,364  
  Accounts receivable, net of allowance of $351,431 and $192,786   8,401,835       12,332,714  
  Accounts receivable, net of allowance of $0 and $166,075 – related party   1,231,181       3,266,600  
  Revenues in excess of billings, net of allowance of $205,006 and $194,684   15,850,011       14,719,047  
  Revenues in excess of billings – related party   101,669       110,827  
  Convertible note receivable – related party   4,185,000       3,650,000  
  Other current assets   3,392,190       3,146,264  
    Total current assets   55,245,470       54,591,816  
Revenues in excess of billings, net – long term   1,291,025       1,281,492  
Property and equipment, net   12,668,689       12,096,855  
Right of use of assets – operating leases   3,050,885        
Long term investment   2,411,807       2,653,769  
Other assets   24,301       23,569  
Intangible assets, net   6,792,846       7,332,950  
Goodwill   9,516,568       9,516,568  
    Total assets $ 91,001,591     $ 87,497,019  
           
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:      
  Accounts payable and accrued expenses $ 7,927,523     $ 7,476,560  
  Current portion of loans and obligations under finance leases   9,436,332       6,905,597  
  Current portion of operating lease obligations   1,182,850        
  Unearned revenues   3,135,721       5,977,736  
  Common stock to be issued   88,324       88,324  
    Total current liabilities   21,770,750       20,448,217  
Loans and obligations under finance leases; less current maturities   417,824       564,572  
Operating lease obligations; less current maturities   1,966,770        
    Total liabilities   24,155,344       21,012,789  
Commitments and contingencies      
Stockholders’ equity:      
  Preferred stock, $.01 par value; 500,000 shares authorized;          
  Common stock, $.01 par value; 14,500,000 shares authorized;      
    12,000,566 shares issued and 11,753,063 outstanding as of December 31, 2019 and     
    11,911,742 shares issued and 11,664,239 outstanding as of June 30, 2019   120,006       119,117  
  Additional paid-in-capital   128,197,589       127,737,999  
  Unexpected eval class (org.apache.poi.ss.formula.eval.MissingArgEval)      
  as of December 31, 2019 and June 30, 2019, respectively)   (1,455,969 )     (1,455,969 )
  Accumulated deficit   (36,448,870 )     (35,206,898 )
  Other comprehensive loss   (30,456,632 )     (33,125,006 )
    Total NetSol stockholders’ equity   59,956,124       58,069,243  
  Non-controlling interest   6,890,123       8,414,987  
    Total stockholders’ equity   66,846,247       66,484,230  
    Total liabilities and stockholders’ equity $ 91,001,591     $ 87,497,019  
           

 

NETSOL Technologies, Inc. and Subsidiaries
Schedule 2: Consolidated Statement of Operations

    For the Three Months   For the Six Months
    Ended December 31,   Ended December 31,
      2019       2018       2019       2018  
Net Revenues:              
  License fees $ 383,963     $ 4,817,569     $ 3,063,108     $ 10,773,682  
  Maintenance fees   4,965,877       3,661,723       9,357,324       7,401,399  
  Services   10,282,755       8,348,843       16,701,646       14,819,468  
  Services – related party   57,424       174,492       140,357       404,623  
      Total net revenues   15,690,019       17,002,627       29,262,435       33,399,172  
                   
Cost of revenues:              
  Salaries and consultants   4,625,872       4,497,054       9,080,836       9,517,616  
  Travel   1,572,923       1,706,182       2,915,558       2,858,179  
  Depreciation and amortization   734,352       880,048       1,454,017       1,817,652  
  Other   954,912       1,060,772       1,899,436       2,109,096  
    Total cost of revenues   7,888,059       8,144,056       15,349,847       16,302,543  
                   
Gross profit   7,801,960       8,858,571       13,912,588       17,096,629  
                   
Operating expenses:              
  Selling and marketing   1,858,096       2,048,303       3,601,964       3,749,629  
  Depreciation and amortization   215,479       193,779       417,866       406,011  
  General and administrative   4,568,790       4,002,059       8,487,403       8,408,779  
  Research and development cost   454,605       424,652       1,127,575       742,807  
    Total operating expenses   7,096,970       6,668,793       13,634,808       13,307,226  
                   
Income from operations   704,990       2,189,778       277,780       3,789,403  
                   
Other income and (expenses)              
  Gain (loss) on sale of assets   528       (3,504 )     239       48,790  
  Interest expense   (88,006 )     (63,804 )     (151,669 )     (163,238 )
  Interest income   435,682       230,421       834,911       479,385  
  Gain (loss) on foreign currency exchange transactions   61,061       2,536,755       (1,699,129 )     2,547,667  
  Share of net loss from equity investment   (164,796 )     (298,293 )     (354,020 )     (597,984 )
  Other income   207,987       4,503       226,313       9,882  
    Total other income (expenses)   452,456       2,406,078       (1,143,355 )     2,324,502  
                   
Net income (loss) before income taxes   1,157,446       4,595,856       (865,575 )     6,113,905  
Income tax provision   (610,510 )     (264,872 )     (848,748 )     (501,786 )
Net income (loss)   546,936       4,330,984       (1,714,323 )     5,612,119  
  Non-controlling interest   39,039       (1,475,355 )     472,351       (1,793,901 )
Net income (loss) attributable to NetSol $ 585,975     $ 2,855,629     $ (1,241,972 )   $ 3,818,218  
                   
                   
Net income (loss) per share:              
  Net income (loss) per common share              
    Basic $ 0.05     $ 0.25     $ (0.11 )   $ 0.33  
    Diluted $ 0.05     $ 0.25     $ (0.11 )   $ 0.33  
                   
Weighted average number of shares outstanding              
  Basic   11,724,606       11,586,507       11,694,423       11,542,877  
  Diluted   11,724,606       11,592,193       11,694,423       11,548,563  
                   


NETSOL Technologies, Inc. and Subsidiaries
Schedule 3: Consolidated Statement of Cash Flows

        For the Six Months
        Ended December 31,
          2019       2018  
Cash flows from operating activities:      
  Net income (loss) $ (1,714,323 )   $ 5,612,119  
  Adjustments to reconcile net income (loss)      
    to net cash provided by operating activities:      
  Depreciation and amortization   1,871,883       2,223,663  
  Provision for bad debts   (20,699 )      
  Share of net loss from investment under equity method   354,020       597,984  
  Gain on sale of assets   (239 )     (48,790 )
  Stock based compensation   328,585       869,743  
  Changes in operating assets and liabilities:      
    Accounts receivable   4,554,558       4,208,751  
    Accounts receivable – related party   2,229,695       (219,538 )
    Revenues in excess of billing   (1,088,693 )     (7,633,216 )
    Revenues in excess of billing – related party   14,823       (91,279 )
    Other current assets   (208,065 )     (1,409,746 )
    Accounts payable and accrued expenses   490,875       139,331  
    Unearned revenue   (3,019,493 )     (1,094,375 )
  Net cash provided by operating activities   3,792,927       3,154,647  
             
Cash flows from investing activities:      
  Purchases of property and equipment   (785,999 )     (1,441,237 )
  Sales of property and equipment   32,524       519,645  
  Convertible note receivable – related party   (535,000 )     (1,033,000 )
  Net cash used in investing activities   (1,288,475 )     (1,954,592 )
             
Cash flows from financing activities:      
  Proceeds from the exercise of stock options and warrants         65,000  
  Proceeds from exercise of subsidiary options   11,621       2,650  
  Dividend paid by subsidiary to non-controlling interest   (1,920,618 )     (566,465 )
  Proceeds from bank loans   2,074,341       382,240  
  Payments on finance lease obligations and loans – net   (102,499 )     (289,027 )
  Net cash provided by (used in) financing activities   62,845       (405,602 )
Effect of exchange rate changes   2,149,923       (2,562,502 )
Net increase (decrease) in cash and cash equivalents   4,717,220       (1,768,049 )
Cash and cash equivalents at beginning of the period   17,366,364       22,088,853  
Cash and cash equivalents at end of period $ 22,083,584     $ 20,320,804  
 

NETSOL Technologies, Inc. and Subsidiaries
Schedule 4: Reconciliation to GAAP

  For the Three
Months Ended
  For the Three
Months Ended
  For the Six
Months Ended
  For the Six
Months Ended
  December 31, 2019   December 31, 2018   December 31, 2019   December 31, 2018
               
Net Income (loss) attributable to NetSol $ 585,975     $ 2,855,629     $ (1,241,972 )   $ 3,818,218  
Non-controlling interest   (39,039 )     1,475,355       (472,351 )     1,793,901  
Income taxes   610,510       264,872       848,748       501,786  
Depreciation and amortization   949,831       1,073,827       1,871,883       2,223,663  
Interest expense   88,006       63,804       151,669       163,238  
Interest (income)   (435,682 )     (230,421 )     (834,911 )     (479,385 )
EBITDA $ 1,759,601     $ 5,503,066     $ 323,066     $ 8,021,421  
Add back:              
Non-cash stock-based compensation   164,292       437,695     328,585       869,743  
Adjusted EBITDA, gross $ 1,923,893     $ 5,940,761     $ 651,651     $ 8,891,164  
Less non-controlling interest (a)   (346,644 )     (1,887,861 )     (155,409 )     (2,640,530 )
Adjusted EBITDA, net $ 1,577,249     $ 4,052,900     $ 496,242     $ 6,250,634  
               
               
Weighted Average number of shares outstanding              
Basic   11,724,606       11,586,507       11,694,423       11,542,877  
Diluted   11,724,606       11,592,193       11,694,423       11,548,563  
               
Basic adjusted EBITDA $ 0.13     $ 0.35     $ 0.04     $ 0.54  
Diluted adjusted EBITDA $ 0.13     $ 0.35     $ 0.04     $ 0.54  
               
               
(a) The reconciliation of adjusted EBITDA of non-controlling interest to net income attributable to non-controlling interest is as follows              
               
Net Income attributable to non-controlling interest $ (39,039 )   $ 1,475,355     $ (472,351 )   $ 1,793,901  
Income Taxes   190,292       70,821       243,627       141,364  
Depreciation and amortization   270,003       338,278       529,638       704,132  
Interest expense   25,491       20,219       44,532       52,909  
Interest (income)   (115,670 )     (54,247 )     (221,171 )     (121,115 )
EBITDA $ 331,077     $ 1,850,426     $ 124,275     $ 2,571,191  
Add back:              
Non-cash stock-based compensation   15,567       37,435       31,134       69,339  
Adjusted EBITDA of non-controlling interest $ 346,644     $ 1,887,861     $ 155,409     $ 2,640,530  
               

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Cryptocurrency Market Report 2020: Technology, Applications and Implementation for Financial Services

GlobeNewswire

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TCS Positioned as a Leader in Capital Markets Operations by Everest Group

Vlad Poptamas

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Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), a leading global IT services, consulting and business solutions organization, has been recognized as a Leader in the Everest Group PEAK Matrix™ for Capital Markets Operations1.

In an assessment of 24 global service providers offering capital markets operations services, TCS was placed highest for Vision and Capability, as well as Market Impact. Additionally, it was named a Star Performer for having top quartile year-on-year improvement in its scores.

TCS’ strong position in the overall capital markets segment is attributed to consistent growth in its portfolio with multiple new wins. According to the report, the company has continuously worked on creating solutions backed with the latest technology to help its customers solve operational problems more efficiently. It mentions TCS BaNCS™ Cloud for Asset Servicing that automates the servicing of multiple asset classes across custodians, brokerages, asset managers, and investment banks. The report also highlighted a successful POC where TCS powered the world’s first cross-border securities settlement between two central depositories using Quartz™ Blockchain.

With growing competition in the capital markets segment, customer preference for digital channels, and increasingly complex regulations, financial institutions are banking on innovative use of technology to stay ahead,” said K Krithivasan, Business Group Head, Banking, Financial Services and Insurance, TCS“This recognition from an independent third-party research firm is a testament to our vision, capabilities, services offered, and market impact.”

TCS offers a comprehensive portfolio of services in the capital markets domain. Its customers include over 85 buy and sell side firms as well as market infrastructure firms and custodians. TCS’ in-depth domain solutions cover all functions and include:

  • Front Office: Research and analytics, channel management support, para planning for wealth management customers
  • Middle Office: Post trade processes including trade affirmation / confirmation, pricing and valuation, portfolio accounting and reconciliations
  • Back Office: Settlements, reconciliation and fails management accounting including fund accounting, fund administration, and transfer agency

Guided by its Business 4.0TM thought leadership framework and the Machine First™ Delivery Model (MFDM™), TCS has made steady investments and developed frameworks, point solutions and showcases. These include the wealth and retirement platform on TCS BaNCS, a wealth advisory solution, robo advisor and event fusion solution, conversational agents powered TCS’ proprietary tool Conversa™, interactive customer reporting, X code, and distributed ledger technologies for corporate actions, among other blockchain, robotic process automation, platform modernization-based frameworks.

In an environment shaped by changing user preferences and pressure from fintechs, it has become critical for financial institutions to connect their front- and back-office functions seamlessly,” said Manu Agarwal, Practice Director, BFS Business Process Services, Everest Group. “Supported by strong operational expertise and digital offerings, TCS enables its customers to deliver this superior experience.”

Our rich experience in capital market services, regulatory knowledge, innovative offerings backed by the latest digital technologies, and deep contextual knowledge places us in a strong position to deliver exponential value to our capital markets customers,” added Krithivasan. 

 

SOURCE Tata Consultancy Services

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Huobi Global today announced that Huobi Token (HT) has reached a new 12-month high amid the continued growth and development of the whole ecosystem. As of yesterday, HT was trading at a token price of $5.27 USD, a 92% increase since the close of 2019 – and nearly a 5X increase compared to this time last year.

As the native token of digital asset exchange Huobi Global, HT’s new milestone underscores the recent progress of Huobi’s global ecosystem. Last month, Huobi Global and Huobi DM experienced a strong start to 2020 with a 65% month-over-month spike in aggregate trading volume.

Huobi has also transitioned from quarterly to monthly token burns, which are based on a percentage of Huobi Global and Huobi DM’s revenues for each corresponding period. For Huobi’s first monthly burn, 4.057 million HT were repurchased and destroyed in January, which has a current market value of $21.4 million USD. A total of 45.838 million tokens have been burned to date.

“2020 is a pivotal year for Huobi as we enter new global markets and continue expanding our product line-up for both institutional and retail audiences,” said Ciara Sun, Vice President of Global Business at Huobi Group. “HT is a foundational part of the Huobi ecosystem, so we are deeply committed to its success.”

HT Product Roadmap

As part of a longer-term strategic roadmap for HT, Huobi has a number of upcoming initiatives planned that aims to further increase the token’s utility for the broader blockchain and crypto community.

Huobi DM’s new Perpetual Contract product, which is currently undergoing internal testing and nearing public launch, will be incorporated into the HT Token Burn Program. HT will also play an integral role in the ecosystem of Huobi Chain, a regulator-friendly financial blockchain that’s slated for testnet launch in the near future.

Additional features in development include HT margin trading with up to 2X leverage, which is expected to launch in March, and collateralized HT for peer-to-peer crypto lending and pledged loan contract assets.

HT Ecosystem Adoption

To further expand HT’s utility beyond the Huobi ecosystem, Huobi is accelerating efforts to integrate with third-party partners, including international credit cards, digital bank cards, blue-chip technology companies, and global entrepreneurship centers.

HT was recently accepted as a payment option for charitable donations to Project HOPE, a global nonprofit organization that has been providing health development and emergency relief since 1958. Last month, Huobi partnered with a leading crypto-friendly hotel booking platform to integrate HT as a preferred payment method on Travala.com.

 

SOURCE Huobi Group

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