Abits Group Inc Reports Unaudited Financial Results for the First Half of 2024

Rhea-AI Summary

Abits Group Inc (NASDAQ: ABTS) reported its unaudited financial results for the first half of 2024. The company's revenue grew to $3.67 million, comprising 61.5 bitcoins, compared to the previous period when there was no production. Gross profit from mining operations was $0.75 million, with direct costs of revenue at $2.68 million. The company reported a loss before tax of $0.14 million, an improvement from the $3.5 million loss in the previous period.

Administrative and general overheads nearly doubled to $1.11 million due to increased staffing and operational costs. The company improved its water supply and implemented hydro cooling for new machines. Cash and cash balances decreased to $0.4 million as of June 30, 2024. With the halving of mining rewards in April, production output is expected to be lower for the rest of 2024. The company aims to secure more hosting contracts to improve revenue.

Positive

• Revenue grew to $3.67 million from no production in the previous period
• Gross profit from mining operations reached $0.75 million
• Loss before tax reduced significantly to $0.14 million from $3.5 million in the previous period
• Improved water supply and implementation of hydro cooling for new machines

Negative

• Administrative and general overheads nearly doubled to $1.11 million
• Cash and cash balances decreased to $0.4 million
• Expected lower production output for the rest of 2024 due to halving of mining rewards
• Overall net loss of $13,964 for the period

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.

For more information, please visit www.abitsgroup.com or email ir@abitgrp.com.

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

FAQ

What was Abits Group's (ABTS) revenue for the first half of 2024?

Abits Group Inc (NASDAQ: ABTS) reported revenue of $3.67 million for the first half of 2024, comprising 61.5 bitcoins.

How did Abits Group's (ABTS) financial performance compare to the previous period?

Abits Group's loss before tax improved to $0.14 million in the first half of 2024, compared to a $3.5 million loss in the previous period when there was no production.

What challenges does Abits Group (ABTS) face for the rest of 2024?

Abits Group expects lower production output for the rest of 2024 due to the halving of mining rewards in April. The company aims to maintain strict cost control and secure more hosting contracts to improve revenue.

How much cash does Abits Group (ABTS) have as of June 30, 2024?

Abits Group reported cash and cash balances of $0.4 million as of June 30, 2024, down from $0.884 million at the end of 2023.