Karma 2020.Q2 Financial Report

Hello, dear friends!

Let’s discuss our financial results for the 2nd quarter of 2020. You can check the detailed data in the comfortable Google Spreadsheet, including historical data by quarters.

2020.Q2 was the best quarter in terms of profit

Key points:

• Our total net quarterly loss is $97,306 which is 41% better than the previous quarter.
• Quarterly operational expenses have been cut 40% QoQ because of lay-offs. Plus, we've shut down our offline office due to the corona pandemic, and that was a significant OPEX optimization. We still have a meeting room in one of the Moscow City skyscrapers, but we're motivated enough to work effectively from home.
• We will smoothly cut the expenses more in July and August to keep our monthly burn rate at approx. $20k, and to extend our runway to Spring 2021.

We've recovered our listing fees volime after Corona pandemic and long-term January holidays

Retail loan investors steadily increasing their investments at Karma and don't withdraw them even during the pandemic

We've outperformed almost all our initial plans on 2020.Q2:

• Expenses are 7% lower than planned
• Revenues are 5% lower than planned
• Net profits are 7% better than planned
• Average deposit per active investor is 9% better than planned
• The amount of active investors (648) is 18% better than planned
• Turnover capital provided by the retail investors is 7% larger than planned

What’s next:

• Our main focus is to grow the loan volume to become self-sustainable. The target volume is only $1M/mo, thanks to the expenses cut 🥳
• We still got dozens of millions of dollars of potential borrowers. So, the main focus now is to increase the amount of retail and institutional investors at the Karma platform.

Cheers ˆ_ˆ