Abits Group Inc Reports Unaudited Financial Results for the First Half of 2024
Hong Kong, Aug. 16, 2024 (GLOBE NEWSWIRE) -- Abits Group Inc (NASDAQ: ABTS) is pleased to announce its half-year results for the period ended June 30, 2024.
In a period when production is sustained throughout the six months, revenue grew to $3.67 million comprising 61.5 bitcoins, compared to the previous period when construction of the mining center in Tennessee was in progress and there was no production.. After accounting for direct costs of revenue amounting to $2.68 million, primarily electricity costs of $1.1 million and depreciation of $1.27 million, the gross profit from the mining operation was $0.75 million.
The loss before tax of the group was $0.14 million after accounting for administrative and general overheads.his result compares favorably with the previous period when the loss was $3.5 million. Administrative and general overheads during the period almost doubled to 1.11 million compared to $0.7 million as new staff were added to support production on a 24/7 basis as well as an increase on maintenance and insurance costs now that the data center was fully operational.
In April, the Company further improved its water supply and since then, all production lines have been kept running. During the peak construction periods, a 100,000-gallon reservoir helps to subsidize any shortages from the water company during the day and is replenished at night when consumption is much lower. The hydro cooling method introduced with the new batch of machines helps to reduce noise and dust instead of the traditional air cooling by fans.
There is no substantial change in the Balance Sheet of the Group except that more Ant-miner machines were purchased for $0.86 million and a piece of property in Wisconsin acquired for $0.65 million in the period to June. Cash and cash balances dwindled to $0.4 million as of June 30, 2024.
With the halving of mining rewards in late in April, production output will be much lower for the rest of 2024. However, the Company will maintain a strict control of its costs and hopes to secure more hosting contracts to improve on its revenue.
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ABITS GROUP INC
CONSOLIDATED BALANCE SHEETS
| As of | ||||||||||
| Note | June 30, 2024 (Unaudited) | December 31, 2023 | ||||||||
| ASSETS | ||||||||||
| Current Assets | ||||||||||
| Cash and cash equivalents | $ | 396,583 | $ | 884,199 | ||||||
| Other receivables and prepayments | 3 | 370,801 | 774,345 | |||||||
| Total current assets | 767,384 | 1,658,544 | ||||||||
| Digital assets | 4 | 1,546,184 | 1,194,157 | |||||||
| Property, equipment and vehicles | 5 | 9,888,446 | 9,465,567 | |||||||
| Construction-in-progress | - | - | ||||||||
| TOTAL ASSETS | 12,202,014 | 12,318,268 | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Other payables and accruals | $ | 920,700 | $ | 1,005,608 | ||||||
| Stockholders’ Equity | ||||||||||
| Preferred stock, $0.001010 par value, authorized; 50,000,000 shares, 5,000,000 shares issued and outstanding as of June 30, 2024 and December,31 2023 | $ | 5,050 | $ | 5,050 | ||||||
| Common stock, $0.001 par value, authorized: 50,000,000 shares. Issued and outstanding: 35,554,677 shares as of June 30, 2024 and December,31, 2023 | 35,554 | 35,554 | ||||||||
| Additional paid-in capital | 89,290,193 | 89,290,193 | ||||||||
| Accumulated deficit | (77,907,687 | ) | (77,893,723 | ) | ||||||
| Accumulated other comprehensive income | (141,796 | ) | (124,414 | ) | ||||||
| Total Shareholders’ Equity | 11,281,314 | 11,312,660 | ||||||||
| Total Liabilities and Shareholders’ Equity | $ | 12,202,014 | $ | 12,318,268 | ||||||
ABITS GROUP INC
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| Six Months Ended | Six Months Ended | |||||||
| June 30, 2024 | June 30, 2023 | |||||||
| Revenue | $ | 3,669,627 | $ | 7,272 | ||||
| Direct costs of revenue | (2,680,658 | ) | (14,666 | ) | ||||
| Other operating costs | (241,103 | ) | (2,802,735 | ) | ||||
| Profit/(Loss) from operations | 747,866 | (2,810,129 | ) | |||||
| General and administrative expenses | (1,104,234 | ) | (692,947 | ) | ||||
| Finance expenses | (14,903 | ) | - | |||||
| Fair Value changes for 2024 digital assets | 357,308 | |||||||
| Loss before tax | (13,964 | ) | (3,503,076 | ) | ||||
| Income tax | - | - | ||||||
| Loss after tax | (13,964 | ) | (3,503,076 | ) | ||||
| Foreign exchange adjustment | (17,382 | ) | 45,292 | |||||
| Comprehensive loss for the period | $ | (31,346 | ) | $ | (3,457,784 | ) | ||
| Basic and diluted loss per ordinary share | $ | (0.001 | ) | $ | (0.097 | ) | ||
| Basic and diluted average number of ordinary shares outstanding | 35,554,677 | 35,554,677 | ||||||
ABITS GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES TO STOCKHOLDERS’ EQUITY
| Preferred Shares | Ordinary Shares | Additional paid-in | Accumulated | Accumulated other comprehensive | ||||||||||||||||||||||||||||
| Number | Amount | Number | Amount | capital | deficit | income | Total | |||||||||||||||||||||||||
| Balance, December 31, 2022 | 5,000,000 | 5,050 | 35,554,677 | 35,554 | 89,290,193 | (65,308,474 | ) | (104,361 | ) | 23,917,962 | ||||||||||||||||||||||
| Net loss for the year | - | - | - | - | - | (12,585,249 | ) | (20,053 | ) | (12,605,302 | ) | |||||||||||||||||||||
| Balance, December 31, 2023 | 5,000,000 | 5,050 | 35,554,677 | 35,554 | 89,290,193 | (77,893,723 | ) | (124,414 | ) | 11,312,660 | ||||||||||||||||||||||
| Net loss for the period | (13,964 | ) | (17,382 | ) | (31,346 | ) | ||||||||||||||||||||||||||
| Balance, June 30, 2024 | 5,000,000 | 5,050 | 35,554,677 | 35,554 | 89,290,193 | (77,907,687 | ) | (141,796 | ) | 11,281,314 | ||||||||||||||||||||||
ABITS GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Six Months Ended | For the Six Months Ended | |||||||
| June 30, 2024 | June 30, 2023 | |||||||
| Net loss for the period | $ | (13,964 | ) | $ | (3,503,076 | ) | ||
| Adjustment to reconcile cash used in operating activities: | ||||||||
| Depreciation of property, and equipment | 1,274,028 | 2,817,256 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Account receivables | - | 53 | ||||||
| Other receivables and prepayments | 403,544 | (1,101,604 | ) | |||||
| Other payables and accruals | (84,909 | ) | (71,974 | ) | ||||
| Digital assets | (352,026 | ) | 2,370,769 | |||||
| Fixed assets | (1,696,907 | ) | (1,522,949 | ) | ||||
| Cash used in operating activities | (470,234 | ) | (1,011,525 | ) | ||||
| Effect of exchange rates on cash and cash equivalents | (17,382 | ) | 45,070 | |||||
| Net decrease in cash and cash equivalents | (487,616 | ) | (966,455 | ) | ||||
| Cash and cash equivalents, beginning of period | 884,199 | 2,505,286 | ||||||
| Cash and cash equivalents, end of period | $ | 396,583 | $ | 1,538,831 | ||||
