The last quarter of 2021 has been an eventful one for Liquid Avatar, with the company revealing a sudden leap in revenue from its metaverse and digital ID offerings to approximately C$700,000 (roughly US$547,000) since the beginning of its fiscal fourth quarter, despite having booked less than C$16,000 in the first nine months of the year. In an interim report, the company confirms it is officially transitioning from research and development mode to commercialization, with its subsidiary Oasis Digital Studios acquiring a 50 percent equity interest in its metaverse client, Aftermath Islands.
The revenue announcement follows the recent release of a new version of the Liquid Avatar mobile app, beginning the activation plans for a U.S.-based network card program, and launching its metaverse program.
After reporting C$15,805 ($12,352) in revenue from January 1 to September 30, 2021, C$14,972 of which was from management fees associated with its metaverse subsidiary Oasis, Liquid Avatar says it is experiencing an earlier-than-anticipated increase in commercial activity.
“We have started to witness online acceptance of digital identity programs, which are at the core of all our solutions, and both avatar and metaverse activities are gaining traction,” comments the company’s CEO, David Lucatch.
“[These activities are] creating opportunities for increased early revenue, as the industry embraces the future of Web 3.0. Our goal is to continue to create value for all our stakeholders.”
The metaverse program was launched after Oasis acquired a 50 percent equity interest in Aftermath Islands, a metaverse client it is currently collaborating with.
Following the move, which entitles Oasis to up to 150 virtual islands, all relevant Aftermath Islands assets will be moved to a newly-registered enterprise in Barbados, with operations expected to begin in January 2022.
Liquid Avatar has also recently entered a new partnership with fintech firm Bonifii, which will enable customers to take advantage of Bonifii’s know-your-customer (KYC) process to complete privacy-preserving financial transactions in the metaverse.
The integration between the companies’ technologies will be performed by decentralized identity expert Indicio.
“The metaverse and Web 3.0 are here, and we are building the infrastructure to manage how we’re going to live, work, and play in the intersection of the real and the digital,” says Indicio CEO Heather Dahl.
“Bonifii and Liquid Avatar get it, they’re on it and we’re excited to help them realize their vision.”
According to Liquid Avatar, the above initiatives and partnerships have generated approximately C$700,000 (US$547,000) in revenue between October 1 and early December 2021, based on unaudited, unconsolidated estimates. The company says gross margin is similar to that seen elsewhere in the digital services sector.