PLAYBOY SUFFERS $4.9 MILLION LOSS ON NFT PAYMENTS

According to a recent filing with the US Securities and Exchange Commission (SEC), Playboy suffered significant losses after the value of payments it received for NFTs declined. Loss of Ether (ETH) received by the company after the sale of NFT "Rabbitars". These fungible tokens were relaunched in 2021 when the cryptocurrency market was booming.

Overall, Playboy lost $4.9 million after wiping out most of its market value during last year's crypto winter. Last December, ETH was worth $327,000 from the sale. Playboy considers its digital assets to be "indefinite-lived intangible assets," according to the company's statement. If the fair value of these assets is significantly lower than their book value in any period, these assets are impaired.

Rabbitars on OpenSea

ETH Has Lost Over Half of Its Value Since Playboy Sold Rabbitars

According to the filing, “The market price of one [Ethereum] in the major markets for the fiscal year ended December 31, 2022 ranged from $964 to $3,813, while the inventory at the end of the reporting period. Book value per Ethereum. The lowest price of an Ethereum has been active on any exchange since Ethereum was obtained.

Therefore, “negative fluctuations in the Ethereum market price can have a significant impact on the company's profit and book value, but the positive impact on the company's profit is due to the increase in the price on the balance sheet. Only if Ethereum is held.” It will be sold at a profit

Since Playboy launched the Rabbitars NFT collection in October 2021, ETH has lost around 60% of its value. However, there are recent signs that the market is recovering and ETH may finally be able to regain some of its lost value. However, as Playboy says, impairment losses on digital assets cannot be recovered even if their fair value increases after the loss is recognized.