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 where production was maintained for over six months, revenue increased to $3.67 million, consisting of 61.5 bitcoins, compared to the previous period when construction of the Tennessee mining center was underway and no production took place. After taking into account direct costs of revenue of $2.68 million, mainly electricity costs of $1.1 million and depreciation of $1.27 million, gross profit from mining operations was $0.75 million.
The Group’s loss before tax, after deducting general and administrative expenses, was $0.14 million. This result compares favourably with the previous period when the loss was $3.5 million. General and administrative expenses almost doubled to $1.11 million over the period from $0.7 million as new staff were hired to support production 24/7 and maintenance and insurance costs increased as the data centre was now fully operational.
In April, the company further improved its water supply and since then all production lines have continued to run. During peak construction periods, a 100,000-gallon reservoir helps offset 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 line of machines helps reduce noise and dust, as opposed to traditional air cooling by fans.
There are no material changes in the group’s balance sheet, except that additional Ant Miner machines were purchased for $0.86 million and a property in Wisconsin was acquired for $0.65 million in the period to June. Cash and cash equivalents decreased to $0.4 million as of June 30, 2024.
With the halving of mining rewards at the end of April, production output will be significantly lower for the rest of 2024. However, the company will keep a tight lid on its costs and hopes to sign more hosting contracts to increase its revenue.
For further information, please visit www.abitsgroup.com or email [email protected].
ABITS GROUP INC
CONSOLIDATED BALANCE SHEET
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Away |
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|
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note |
June 30, 2024 |
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December 31, 2023 |
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ASSETS |
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Current assets |
||||||||||
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Cash and cash equivalents |
$ |
396,583 |
$ |
884,199 |
||||||
|
Other receivables and advance payments |
3 |
370,801 |
774,345 |
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Total current assets |
767,384 |
1,658,544 |
||||||||
|
Digital assets |
4 |
1,546,184 |
1,194,157 |
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|
Real estate, equipment and vehicles |
5 |
9,888,446 |
9,465,567 |
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Under construction |
– |
– |
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Total assets |
12.202.014 |
12,318,268 |
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LIABILITIES AND EQUITY |
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Other liabilities and provisions |
$ |
920,700 |
$ |
1,005,608 |
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Equity capital |
||||||||||
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Preferred stock, par value $0.001010, 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 |
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|
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 |
||||||||
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Capital reserve |
89,290,193 |
89,290,193 |
||||||||
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Cumulative deficit |
(77,907,687 |
) |
(77,893,723 |
) |
||||||
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Accumulated other comprehensive income |
(141,796 |
) |
(124,414 |
) |
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Total equity |
11,281,314 |
11,312,660 |
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Total liabilities and equity |
$ |
12.202.014 |
$ |
12,318,268 |
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ABITS GROUP INC
UNAUDITED CONSOLIDATED INCOME STATEMENT
|
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Six months over |
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Six months over |
|
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June 30, 2024 |
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|
June 30, 2023 |
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|||
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revenue |
$ |
3,669,627 |
$ |
7,272 |
||||
|
Direct costs of sales |
(2,680,658 |
) |
(14,666 |
) |
||||
|
Other operating costs |
(241,103 |
) |
(2,802,735 |
) |
||||
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Profit/(loss) from business activities |
747,866 |
(2,810,129 |
) |
|||||
|
General administrative costs |
(1,104,234 |
) |
(692,947 |
) |
||||
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Financial expenses |
(14,903 |
) |
– |
|||||
|
Fair value changes for digital assets in 2024 |
357,308 |
|||||||
|
Loss before taxes |
(13,964 |
) |
(3,503,076 |
) |
||||
|
Income tax |
– |
– |
||||||
|
Loss after taxes |
(13,964 |
) |
(3,503,076 |
) |
||||
|
Currency adjustment |
(17,382 |
) |
45,292 |
|||||
|
Total loss for the period |
$ |
(31,346 |
) |
$ |
(3,457,784 |
) |
||
|
Basic and diluted loss per common share |
$ |
(0.001 |
) |
$ |
(0.097 |
) |
||
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Basic and diluted average number of common shares outstanding |
35,554,677 |
35,554,677 |
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Companies starting with ABITS
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
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Preference shares |
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|
Ordinary shares |
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Additionally |
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Cumulative |
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Cumulative |
||||||||||||||||||||||
|
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number |
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Crowd |
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|
number |
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Crowd |
|
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Capital city |
|
|
deficit |
|
|
income |
|
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In total |
|
|||||||||
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Balance sheet, December 31, 2022 |
5,000,000 |
5,050 |
35,554,677 |
35,554 |
89,290,193 |
(65,308,474 |
) |
(104,361 |
) |
23,917,962 |
||||||||||||||||||||||
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Annual net loss |
– |
– |
– |
– |
– |
(12,585,249 |
) |
(20,053 |
) |
(12,605,302 |
) |
|||||||||||||||||||||
|
Balance sheet as of December 31, 2023 |
5,000,000 |
5,050 |
35,554,677 |
35,554 |
89,290,193 |
(77,893,723 |
) |
(124,414 |
) |
11,312,660 |
||||||||||||||||||||||
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Net loss for the period |
(13,964 |
) |
(17,382 |
) |
(31,346 |
) |
||||||||||||||||||||||||||
|
Balance sheet, June 30, 2024 |
5,000,000 |
5,050 |
35,554,677 |
35,554 |
89,290,193 |
(77,907,687 |
) |
(141,796 |
) |
11,281,314 |
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Companies starting with ABITS
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
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For the |
For the |
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|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|||
|
Net loss for the period |
$ |
(13,964 |
) |
$ |
(3,503,076 |
) |
||
|
Adjustment to reconcile cash used for operating activities: |
||||||||
|
Depreciation of property, plant and equipment |
1,274,028 |
2,817,256 |
||||||
|
Changes in operating assets and liabilities: |
||||||||
|
Claims |
– |
53 |
||||||
|
Other receivables and advance payments |
403,544 |
(1,101,604 |
) |
|||||
|
Other liabilities and provisions |
(84,909 |
) |
(71,974 |
) |
||||
|
Digital assets |
(352,026 |
) |
2,370,769 |
|||||
|
Fixed assets |
(1,696,907 |
) |
(1,522,949 |
) |
||||
|
Cash flow used for operating activities |
(470,234 |
) |
(1,011,525 |
) |
||||
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Impact of exchange rates on cash and cash equivalents |
(17,382 |
) |
45,070 |
|||||
|
Net decrease in liquid assets |
(487,616 |
) |
(966,455 |
) |
||||
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Cash and cash equivalents, beginning of period |
884,199 |
2,505,286 |
||||||
|
Cash and cash equivalents, end of period |
$ |
396,583 |
$ |
1,538,831 |
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