Spectre Project Update: Results Y7 Q3

Q3 Performance Overview

Spectre experienced a modest improvement in trading conditions during Q3 (ended December 2024), with Rubicon positions performing well amid all-time highs in certain digital asset prices. However, underlying energy investments continued to show weakness, though recent months (Jan/Feb ’25) have exhibited some signs of recovery.

Phoenix Platform Performance

Phoenix, our decentralized income-generating platform, delivered a satisfactory quarter. The total number of registered users stands at 1,750, with approximately 5% active depositors. Total Value Locked (TVL) remained above $730,000.

At the time of writing, a sharp drop in Ethereum and other digital assets — driven by rising geopolitical tensions and trade war risks — has resulted in Phoenix pools temporarily remaining out of range.

Expansion of Yield Sources on Phoenix

The Phoenix team has successfully launched its first set of financial trading algorithms, which can be tracked here:

• Spartan → View Performance

• Nexion → View Performance

With a strong historical track record and promising, albeit early, live performance, the goal is to introduce these strategies to major retail marketplaces and eventually institutional investors. Phoenix users will soon have direct access to these trading strategies within the Phoenix app, further diversifying yield generation sources.

Outlook & Future Prospects

The group remains committed to increasing SXDT rewards, which have remained subdued since early 2023. The key contributing factors include:

1. Energy Investment Challenges:

• Poor performance of traditional energy investments, particularly oil assets, has weighed on both, operations and the ongoing SXDT energy-buyback. However, recent favourable developments indicate that cashflows are gradually returning to normal levels after the team has changed operator.

• In natural gas, long-standing non-performing investments have seen legal breakthroughs, and the group now anticipates either a full recovery of its investment or the resumption of monthly cashflows later this year.

2. Renewable Energy Project Delays:

• Permitting changes and government prioritization of early-stage renewable developers in the UK have caused delaysin expected returns.

• However, progress in Germany remains on track. While this may result in a one-year delay, the long-term impact is substantial, given the 30GW pipeline under development across the UK, France, and Germany.

• Once operational, this initiative is expected to be a significant driver of SXDT value in the long term (3+ years).

3. Strategic Pivot in Biotechnology Investment:

• A listed biotechnology firm in which the group holds a stake underwent a major strategic shift, stabilising revenues and EBITDA but delaying its roadmap.

• The pivot away from glycocalyx research to a global leadership position in Optical Coherence Tomography (OCT)has strengthened its market positioning.

Operational Costs & R&D Investments:

Despite a 50% reduction in operating expenses (OPEX), the group continues to invest heavily (over 12% of turnover) in R&D, focusing on:

• Phoenix EAs — A suite of advanced financial algorithms.

• AI: Expanding financial trading capabilities in the AI space (researching a unique and potentially revolutionary BTC focused AI assistant that increases retail trader returns) to drive long-term SXDT and SXUT growth.

Geopolitical Considerations & Market Adaptability

The geopolitical climate remains volatile. A ceasefire or settlement in Ukraine would likely reduce geopolitical tensions, albeit temporarily.

If a Trump administration maintains a strict tariff policy, this could counterbalance inflationary and potential recessionary effects of an escalating trade war.

Given the uncertain macroeconomic environment, 2025 is expected to be highly challenging. The group remains proactively prepared to:

•Further reduce OPEX where necessary.

• Pivot towards a leaner, trading-focused model, shutting down all non-core activities, permanently.

• Implement an active trading strategy, ensuring Rubicon rewards are distributed, regardless of digital asset price fluctuations, on an ongoing basis (as opposed to HODL).
• Distribute investment returns, across sectors, as special rewards as and when they materialise.
• Ongoing R&D investments into AI would continue.

A final decision on this strategic realignment will be made by year-end 2025.

Final Thoughts

Despite constant market headwinds, the group remains positioned to capitalise on long-term opportunities, leveraging Phoenix’s growing ecosystem, energy asset recovery, and strategic investments to create sustainable value.

A strategic webinar will be held shortly.

Legal Notice: US residents are still not allowed to access Phoenix and SXDT.