Blockchain
SRAX Announces Non-Reliance on Previously Issued Financial Statements
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Social Reality, Inc. (NASDAQ: SRAX), a digital marketing and consumer data management technology company, today announced that on April 7, 2019, management of Social Reality, Inc. (the “Company”) concluded and the audit committee of the Company has concurred that the Company’s previously issued quarterly and year-to-date unaudited consolidated financial statements for March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017, March 31, 2018, June 30, 2018 and September 30, 2018 and that its audited consolidated financial statements for the year ending December 31, 2017 should no longer be relied upon. Similarly, related press releases, earnings releases, and investor communications describing the Company’s financial statements for these periods should no longer be relied upon. The errors identified are all non-cash and primarily related to the Company’s classification of certain outstanding warrants with provisions that allow the warrant holder to force cash redemption under certain circumstances.
Based on its preliminary assessment, the Company is providing the following estimates regarding the aggregate impact of these errors on consolidated total current liabilities, total liabilities, equity, other income, net income (loss) and income (loss) per share, calculated in accordance with accounting principles generally accepted in the U.S., for each of the periods presented:
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SOCIAL REALITY, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  |
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NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018 |
|||||||
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(Unaudited) |
|||||||
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AS |
Restated |
||||||
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YTD |
YTD |
||||||
|
2018 |
Adjustments |
2018 |
|||||
|
Revenues |
$ 8,823,592 |
$ 8,823,592 |
|||||
|
Cost of revenue |
2,902,179 |
2,902,179 |
|||||
|
Gross profit |
$ 5,921,413 |
$ 5,921,413 |
|||||
|
Loss from operations |
$ (8,492,866) |
$ (8,492,866) |
|||||
|
Other income (expense) |
|||||||
|
Total interest expense |
$ (2,772,448) |
$ (2,772,448) |
|||||
|
Loss on repricing of Series A warrants |
$ – |
$ – |
|||||
|
Accretion of put warrants |
$ 800,000 |
$ 800,000 |
|||||
|
Accretion of debenture warrants |
$ 800,000 |
$ 800,000 |
|||||
|
Accretion of Leapfrog warrants |
$ 600,000 |
$ 600,000 |
|||||
|
Loss (Gain) on Sale of Fixed Assets |
$ 23,978,389 |
$ 23,978,389 |
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|
Other Income |
$ 21,210,439 |
$ 2,200,000 |
$ 23,410,439 |
||||
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Net Income (loss) |
$ 12,717,573 |
$ 2,200,000 |
$ 14,917,573 |
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Net (loss) income pershare, basic |
$ 1.59 |
$ 1.86 |
|||||
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Net (loss) income pershare, diluted |
$ 1.59 |
$ 1.86 |
|||||
|
Weighted average shares outstanding, basic |
8,008,717 |
– |
8,008,717 |
||||
|
Weighted average shares outstanding, diluted |
8,008,717 |
– |
8,008,717 |
||||
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SOCIAL REALITY, INC. |
|||||
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
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YEAR ENDED DECEMBER 31, 2017 |
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AS |
Restated |
||||
|
Full Year |
Full Year |
||||
|
2017 |
Adjustments |
2017 |
|||
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Revenues |
$ 23,348,714 |
$ 23,348,714 |
|||
|
Cost of revenue |
9,328,893 |
9,328,893 |
|||
|
Gross profit |
$ 14,019,821 |
$ 14,019,821 |
|||
|
Loss from operations |
$ (3,843,679) |
$ (3,843,679) |
|||
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Other income (expense) |
|||||
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Total interest expense |
$ (2,815,203) |
$ (2,815,203) |
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Loss on repricing of Series A warrants |
$ – |
$ (100,000) |
$ (100,000) |
||
|
Accretion of put warrants |
$ 500,000 |
$ 500,000 |
|||
|
Accretion of debenture warrants |
$ (700,000) |
$ (700,000) |
|||
|
Accretion of Leapfrog warrants |
$ (1,500,000) |
$ (1,500,000) |
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|
Loss (Gain) on Sale of Fixed Assets |
$ – |
$ – |
|||
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Other Income |
$ (2,815,203) |
$ (1,800,000) |
$ (4,615,203) |
||
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Net Income (loss) |
$ (6,658,882) |
$ (1,800,000) |
$ (8,458,882) |
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Net (loss) income pershare, basic |
$ (0.81) |
$ (1.02) |
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Weighted average shares outstanding, basic |
8,253,851 |
– |
8,253,851 |
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|
SOCIAL REALITY, INC. |
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CONDENSED AND CONSOLIDATED BALANCE SHEET |
|||||
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SEPTEMBER 30, 2018 |
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(Unaudited) |
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September 30 |
September 30 |
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2018 |
2018 |
||||
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As Reported |
Adjustments |
As Restated |
|||
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Total assets |
34,341,324 |
– |
34,341,324 |
||
|
Liabilities and stockholders’ equity |
|||||
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Current liabilities: |
|||||
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Accounts payable and accrued expenses |
2,475,229 |
2,475,229 |
|||
|
Leapfrog warrant liability |
– |
1,000,000 |
1,000,000 |
||
|
Warrant liability – Series A |
– |
1,300,000 |
1,300,000 |
||
|
Debenture warrant liability |
– |
1,600,000 |
1,600,000 |
||
|
Total current liabilities |
2,475,229 |
3,900,000 |
6,375,229 |
||
|
Secured convertible debentures, net |
2,943,109 |
– |
2,943,109 |
||
|
Total liabilities |
5,418,338 |
3,900,000 |
9,318,338 |
||
|
Total stockholders’ equity |
28,922,886 |
(3,900,000) |
25,022,886 |
||
|
Total liabilities and stockholders’ equity |
34,341,224 |
– |
34,341,224 |
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|
SOCIAL REALITY, INC. |
||||||
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CONDENSED AND CONSOLIDATED BALANCE SHEET |
||||||
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DECEMBER 31, 2017 |
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Restated |
||||||
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December 31, |
December |
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|
2017 |
Adjustments |
2017 |
||||
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Total assets |
23,605,699 |
– |
23,605,699 |
|||
|
Liabilities and stockholders’ equity |
||||||
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Current liabilities: |
||||||
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Accounts payable and accrued expenses |
5,010,815 |
5,010,815 |
||||
|
Leapfrog warrant liability |
1,700,000 |
1,700,000 |
||||
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Warrant liability – Series A |
2,100,000 |
2,100,000 |
||||
|
Debenture warrant liability |
2,500,000 |
2,500,000 |
||||
|
Total current liabilities |
5,010,815 |
6,300,000 |
11,310,815 |
|||
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Secured convertible debentures, net |
1,711,146 |
– |
1,711,146 |
|||
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Total liabilities |
6,721,961 |
6,300,000 |
13,021,961 |
|||
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Total stockholders’ equity |
16,883,738 |
(6,300,000) |
10,583,738 |
|||
|
Total liabilities and stockholders’ equity |
23,605,699 |
– |
23,605,699 |
|||
Since the Company has not yet fully completed its review, the estimates regarding the impact set forth above are preliminary and remain subject to change.
In connection with the restatement, management has determined that a material weakness related to the accounting for financing transactions in the Company’s internal control over financial reporting existed for the periods from March 31, 2017 through December 31, 2018. The Company’s chief executive officer and chief financial officer have concluded that the Company’s disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2017 through December 31, 2018, and the Company’s management has concluded that its internal control over financial reporting was not effective as of December 31, 2018.
The Company anticipates that it will file amended Quarterly Reports on Form 10-Q for the periods ended March 31, 2018, June 30, 2018 and September 30, 2018, to amend and restate its financial condition and financial results for the affected periods as soon as practicable.
About SRAX
Social Reality, Inc. (NASDAQ: SRAX) is a digital marketing and consumer data management technology company. SRAX’s technology delivers the tools to unlock data to reveal brands core consumers and their characteristics across marketing channels. Through its blockchain identification graph technology platform, BIGtoken, SRAX has developed a consumer-managed data marketplace where people can own and earn from their data thereby providing everyone in the Internet ecosystem choice, transparency, and compensation. SRAX’s technology and tools deliver a digital competitive advantage for brands in the CPG, automotive, investor relations and lifestyle verticals by integrating all aspects of the advertising experience, including verified consumer participation, into one platform. For more information on SRAX, visit www.srax.com.
SOURCE SRAX
Blockchain
Blocks & Headlines: Today in Blockchain – May 30, 2025 (Fraser Edwards, Kyiv NFT, Spirit Blockchain Capital, Indian eHealth, Hedera)
Blockchain technology and cryptocurrencies continue to redefine industries—from competitive gaming and cultural heritage preservation to corporate finance, healthcare, and alternative tokens. Today’s briefing highlights five pivotal developments shaping the ecosystem: Fraser Edwards’s vision for trust in eSports; Ukraine’s wartime cultural preservation via NFTs; Spirit Blockchain Capital’s Q1 2025 operational report; India’s push for blockchain-enabled electronic health records (EHRs); and the rise of viral altcoins such as UniLabs, Sui, and Hedera Hashgraph. Together, these stories illustrate the themes of trust and identity, preservation and provenance, institutional maturation, public-sector innovation, and token diversification. In this op-ed–style round-up, we distill the essence of each story, cite sources, and offer analysis on how they advance Web3, DeFi, and NFT frontiers.
1. Rebuilding Trust in eSports: Can Blockchain Fix Competitive Integrity?
Source: CCN
Summary:
In a recent CCN interview, veteran trader and eSports investor Fraser Edwards argues that blockchain’s immutable ledgers can restore credibility in the rapidly commercializing world of competitive gaming. According to Edwards, match-fixing scandals and opaque prize-pool distributions have eroded fan confidence. By tokenizing tournament entries and payouts on public blockchains—complete with smart-contract–enforced escrow—organizers can guarantee that prize monies are distributed exactly as advertised, and that no post-match manipulation occurs. Tournament operators in Asia and North America are already piloting Ethereum-based payout dApps, aiming to increase transparency for players and sponsors alike.
Key details & analysis:
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Smart-contract escrow: Funds are held in a time-locked contract that releases prize money only upon verifiable match results. This prevents disputes over referee decisions or delayed payments.
-
On-chain reputation: Player and team reputations can be tokenized via non-fungible reputation badges that accrue based on fair play and community votes—discouraging cheating.
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Scalability concerns: High-traffic tournaments may require Layer 2 rollups or alternative chains (e.g., Polygon, Immutable X) to reduce gas costs and latency.
Opinion: Blockchain’s dual promise of provable fairness and programmable finance makes it uniquely suited to eSports. Yet adoption hinges on UX: seamless wallet integrations, minimal transaction fees, and clear regulatory guidance on esports tokens.
2. When Art Meets Blockchain: Ukraine’s Wartime Cultural Preservation
Source: The Kyiv Independent
Summary:
As monuments crumble under artillery fire, Ukrainian curators and technologists are partnering to mint NFTs representing lost or endangered artifacts. The Kyiv Independent reports that the National Art Museum of Ukraine has launched “Project Phoenix,” tokenizing high-resolution 3D scans of sculptures, manuscripts, and paintings. Proceeds from initial sales fund restoration and digital archiving efforts. Each NFT embeds provenance metadata—including GPS coordinates, curator notes, and condition reports—ensuring that future generations can verify authenticity and context, even if the physical artifact is destroyed.
Key details & analysis:
-
Metadata richness: Beyond simple ownership, NFTs store structured metadata—using ERC-721 metadata extensions—that capture curatorial insights and conservation logs.
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Decentralized archives: IPFS and Arweave are employed to host ultra-high-resolution imagery, with on-chain hashes guaranteeing data integrity.
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Community engagement: Fractional-NFT drops allow diaspora communities to collectively own tokens, strengthening cultural ties and crowdfunding preservation.
Opinion: Blockchain’s ability to immutable record heritage provides a lifeline for war-torn nations. However, ensuring that local institutions retain governance over metadata edits and future migrations is critical to avoiding “cultural colonialism” by global NFT marketplaces.
3. Spirit Blockchain Capital’s Q1 2025 Highlights: Growth, Investments, and Outlook
Source: GlobeNewswire
Summary:
Spirit Blockchain Capital’s Q1 2025 report benchmarks the firm’s operational milestones and financial performance. Assets under management (AUM) climbed 45% to $1.02 billion, driven by strategic allocations to top-tier Layer 1 and Layer 2 protocols, DeFi liquidity pools, and a newly launched token-index fund. Operating income rose 37%, fueled by management fees and performance incentives. The firm also closed its second blockchain-focused venture fund at $150 million, earmarked for early-stage Web3 projects in gaming, infrastructure, and decentralized identity.
Key details & analysis:
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Diversification strategy: 60% of AUM in blue-chip cryptocurrencies (Bitcoin, Ethereum); 25% in DeFi (Aave, Uniswap, Lido); 15% in tokenized commodities and NFTs.
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Fund performance: The flagship fund delivered a 9.8% return in Q1, outperforming the 6.2% benchmark set by the Bloomberg Galaxy Crypto Index.
-
Venture investments: Early stakes in zero-knowledge proof startups and decentralized storage platforms signal confidence in scalability and privacy innovations.
Opinion: Spirit’s robust growth and disciplined diversification mirror institutional maturation in the blockchain asset management space. As regulatory clarity improves, expect further inflows from endowments, pensions, and family offices.
4. Blockchain EHRs in India: The Next Digital Health Revolution
Source: ORF
Summary:
The Observer Research Foundation (ORF) details India’s pioneering pilot of blockchain-backed electronic health records (EHRs) in the state of Andhra Pradesh. By leveraging a permissioned Hyperledger Fabric network, the initiative ensures that patient records—from vaccination histories to diagnostic imaging—are securely shared across hospitals, clinics, and pharmacies. Patients control access via digital identities anchored to India’s Aadhaar system, granting temporal permissions for data viewing and preventing unauthorized sharing.
Key details & analysis:
-
Interoperability: HL7 FHIR standards are mapped to on-chain transactions, enabling seamless data exchange with existing hospital information systems (HIS).
-
Privacy safeguards: Off-chain storage of PHI (Protected Health Information) is encrypted with patient-held keys; only hashed pointers reside on-chain to ensure immutability without exposing sensitive data.
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Regulatory alignment: The pilot aligns with India’s draft Digital Health Act, which emphasizes data sovereignty and patient consent frameworks.
Opinion: Blockchain EHRs can democratize healthcare access in a populous nation—but success depends on user-friendly portals, robust identity verification, and contingency plans for network outages in rural areas.
5. The Hottest Viral Altcoins of 2025: UniLabs, Sui, and Hedera Lead the Pack
Source: TronWeekly
Summary:
According to TronWeekly, the altcoin landscape in 2025 is dominated by three viral tokens: UniLabs (UNI-L), Sui (SUI), and Hedera Hashgraph (HBAR). UniLabs, a governance token for a decentralized laboratory network, saw a 1,200% year-to-date surge on news of its AI-driven drug-discovery partnership. Sui’s Move-based smart-contract platform gained traction for sub-second finality and low gas fees, with total value locked (TVL) surpassing $2 billion. Hedera’s HBAR continues its enterprise pivot, securing multi-year agreements with global brands for identity verification and supply-chain tracking.
Key details & analysis:
-
UniLabs use case: Token holders vote on research grants and share in royalty revenues from patented compounds developed on-chain.
-
Sui performance: With a novel object model and horizontal sharding, Sui supports over 3,000 TPS (transactions per second) without compromising on decentralization.
-
Hedera enterprise: The Governing Council—comprising Boeing, Google, and LG—bolsters confidence in HBAR’s governance model and paves the way for compliant enterprise deployments.
Opinion: These tokens exemplify the diversification of blockchain applications. Investors should assess not only market hype but also protocol fundamentals—developer activity, economic incentives, and real-world adoption.
Cross-Story Trends & Key Takeaways
-
Trust & Transparency at the Core
From esports prize-pool ledgers to wartime NFT archives and permissioned health records, blockchain’s immutability fosters verifiable trust—a prerequisite for mainstream adoption across sectors. -
Institutional & Public-Sector Innovation
Spirit Blockchain Capital’s fund growth and India’s EHR pilot signal that both private and government entities view blockchain as a strategic infrastructure, not just speculative assets. -
Vertical Specialization Fuels Token Growth
Viral altcoins like UniLabs, Sui, and Hedera thrive by addressing niche use-cases—governance in biotech, scalable DeFi rails, and enterprise identity—underscoring the importance of purpose-built protocols. -
Metadata & Provenance Drive NFTs Beyond Art
Ukraine’s cultural NFTs demonstrate how rich on-chain metadata can preserve heritage, while esports applications show that reputation tokens can enforce fair-play credentials. -
Ecosystem Maturation Requires UX & Governance
Across all stories, user experience—wallet onboarding, identity verification, metadata curation—and robust governance frameworks (tokenomics, regulatory alignment) emerge as decisive factors in blockchain’s next wave.
Conclusion
Today’s blockchain headlines reveal a maturing ecosystem where trust, transparency, and targeted innovation unlock new frontiers—from safeguarding digital heritage amid conflict to revolutionizing healthcare and sports. As institutional players allocate billions, and public-sector pilots chart regulatory pathways, the fate of tomorrow’s Web3 landscape hinges on seamless UX, rigorous governance, and demonstrable real-world utility. Stay tuned for tomorrow’s Blocks & Headlines, where we’ll continue tracking the trends, tokens, and technologies that define the blockchain revolution.
The post Blocks & Headlines: Today in Blockchain – May 30, 2025 (Fraser Edwards, Kyiv NFT, Spirit Blockchain Capital, Indian eHealth, Hedera) appeared first on News, Events, Advertising Options.
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