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.

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