Abits Group Inc Reports Amended Unaudited Financial Statements for the First Half of 2025
Hong Kong, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Abits Group Inc (NASDAQ:ABTS) today announced it has recently made certain corrections to its unaudited financial statements for the six months ended June 30, 2025 that were announced on August 13, 2025.
The items that were corrected were the number of the Company's authorized shares and the number of issued and outstanding shares as of June 30, 2025. A note describing these changes as a result of the reverse split that was effected on March 10, 2025 is included as Note 5 to the amended financial statements. All other financial figures, including the loss for the period of six months to June 30, 2025 and the loss per share remain unchanged.
The amended unaudited financial statements for the six months ended June 30, 2025 are attached to this press release.
ABITS GROUP INC
CONSOLIDATED BALANCE SHEETS
| As of | As of | |||||||||
| Note | June 30, 2025 (Unaudited) | December 31, 2024 | ||||||||
| ASSETS | ||||||||||
| Current Assets | ||||||||||
| Cash and cash equivalents | $ | 145,143 | $ | 1,118,929 | ||||||
| Receivable and other receivables | 492,791 | 398,707 | ||||||||
| Accounts prepaid | 50,000 | 160,000 | ||||||||
| Total current assets | 687,934 | 1,677,636 | ||||||||
| Digital assets | 1 | 1,964,090 | 257,753 | |||||||
| Property, equipment and vehicles | 2 | 10,844,606 | 9,435,908 | |||||||
| TOTAL ASSETS | 13,496,630 | 11,371,297 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Liabilities | ||||||||||
| Other payables and accruals | $ | 845,206 | $ | 990,346 | ||||||
| Loan | 3 | 2,625,000 | - | |||||||
| Total Liabilities | 3,470,206 | 990,346 | ||||||||
| Shareholders' Equity | ||||||||||
| Preferred shares, no par value, unlimited shares authorized, 333,333 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively* | 5 | $ | 5,050 | $ | 5,050 | |||||
| Common shares, no par value, unlimited shares authorized, 2,369,995 and 2,370,139 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively* | 5 | 35,554 | 35,554 | |||||||
| Additional paid-in capital | 89,290,193 | 89,290,193 | ||||||||
| Accumulated deficit | (79,158,170 | ) | (78,803,383 | ) | ||||||
| Accumulated other comprehensive income | (146,203 | ) | (146,463 | ) | ||||||
| Total Shareholders' Equity | 10,026,424 | 10,380,951 | ||||||||
| Total Liabilities and Shareholders' Equity | $ | 13,496,630 | $ | 11,371,297 | ||||||
| * | Retrospectively restated for the one-for-fifteen share consolidation effected on March 10, 2025. |
ABITS GROUP INC
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| Six Months Ended | Six Months Ended | |||||||||||
| Note | June 30, 2025 | June 30, 2024 | ||||||||||
| Revenue | 4 | $ | 3,995,558 | $ | 3,669,627 | |||||||
| Direct costs of revenue | (1,856,866 | ) | (1,647,732 | ) | ||||||||
| Profit from operations | 2,138,692 | 2,021,895 | ||||||||||
| General and administrative expenses | (1,133,589 | ) | (1,119,138 | ) | ||||||||
| Depreciation | (1,619,905 | ) | (1,274,029 | ) | ||||||||
| Fair value changes of digital assets | 364,800 | 357,308 | ||||||||||
| Loss before interest and taxes | (250,002 | ) | (13,964 | ) | ||||||||
| Interest expense | 3 | (90,000 | ) | - | ||||||||
| Loss before tax | (340,002 | ) | (13,964 | ) | ||||||||
| Income taxes | (14,785 | ) | - | |||||||||
| Loss after tax | (354,787 | ) | (13,964 | ) | ||||||||
| Foreign exchange adjustment | 260 | (17,382 | ) | |||||||||
| Comprehensive loss for the period | $ | (354,527 | ) | $ | (31,346 | ) | ||||||
| Basic and diluted loss per ordinary share | 5 | $ | (0.15 | ) | $ | (0.013 | ) | |||||
| Basic and diluted average number of ordinary shares outstanding* | 5 | 2,369,995 | 2,369,995 | |||||||||
| * | Retrospectively restated for the one-for-fifteen share consolidation effected on March 10, 2025. |
ABITS GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES TO STOCKHOLDERS' EQUITY
| Accumulated | ||||||||||||||||||||||||||||||||
| Preferred Shares* | Ordinary Shares* | Additional paid-in | Accumulated | other comprehensive | ||||||||||||||||||||||||||||
| Number | Amount | Number | Amount | capital | deficit | income | Total | |||||||||||||||||||||||||
| Balance, December 31, 2023 | 333,333 | 5,050 | 2,370,139 | 35,554 | 89,290,193 | (77,893,723 | ) | (124,414 | ) | 11,312,660 | ||||||||||||||||||||||
| Net loss for the year | - | - | - | - | - | (909,660 | ) | - | (909,660 | ) | ||||||||||||||||||||||
| Foreign exchange adjustment | - | - | - | - | - | - | (22,049 | ) | (22,049 | ) | ||||||||||||||||||||||
| Fractional share redemption | (144 | ) | ||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | 333,333 | 5,050 | 2,369,995 | 35,554 | 89,290,193 | (78,803,383 | ) | (146,463 | ) | 10,380,951 | ||||||||||||||||||||||
| Net loss for the period | - | - | - | - | - | (354,787 | ) | - | (354,787 | ) | ||||||||||||||||||||||
| Foreign exchange adjustment | - | - | - | - | - | - | 260 | 260 | ||||||||||||||||||||||||
| Balance, June 30, 2025 | 333,333 | 5,050 | 2,369,995 | 35,554 | 89,290,193 | (79,158,170 | ) | (146,203 | ) | 10,026,424 | ||||||||||||||||||||||
| * | Retrospectively restated for the one-for-fifteen share consolidation effected on March 10, 2025. |
ABITS GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Six Months Ended | For the Six Months Ended | |||||||
| June 30, 2025 | June 30, 2024 | |||||||
| Net loss for the period | $ | (354,787 | ) | $ | (13,964 | ) | ||
| Adjustment to reconcile cash used in operating activities: | ||||||||
| Depreciation of property, equipment and vehicles | 1,619,905 | 1,274,028 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables, other receivables and prepaid | 15,916 | 403,544 | ||||||
| Other payable and accruals | (145,140 | ) | (84,909 | ) | ||||
| Digital assets | (1,706,337 | ) | (352,026 | ) | ||||
| Net cash (used in)/generated from operating activities | (570,443 | ) | 1,226,673 | |||||
| Cash from Investing activities: | ||||||||
| Purchase of property, equipment and vehicles | (3,028,603 | ) | (1,696,907 | ) | ||||
| Net cash used in investing activities: | (3,028,603 | ) | (1,696,907 | ) | ||||
| Cash from financing activities: | ||||||||
| Loan from a third party | 3,000,000 | - | ||||||
| Repayments of loan | (375,000 | ) | - | |||||
| Net cash generated from financing activities | 2,625,000 | - | ||||||
| Effect of exchange rates on cash and cash equivalents | 260 | (17,382 | ) | |||||
| Net decrease in cash and cash equivalents | (973,786 | ) | (487,616 | ) | ||||
| Cash and cash equivalents, beginning of period | 1,118,929 | 884,199 | ||||||
| Cash and cash equivalents, end of period | $ | 145,143 | $ | 396,583 | ||||
See accompanying notes to consolidated financial statements
ABITS GROUP INC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Digital assets
| June 30, 2025 | December 31, 2024 | |||||||||||||||
| BTC | Number | Value | Number | Value | ||||||||||||
| Stock of bitcoins at the beginning of the year | 2.58 | 246,136 | 16.41 | 693,389 | ||||||||||||
| Mined during the year | 40.27 | 3,859,668 | 100.55 | 6,570,519 | ||||||||||||
| Exchanged for USD | (23.54 | ) | (2,180,105 | ) | (97.59 | ) | (6,360,675 | ) | ||||||||
| Exchanged for USDT | (3.61 | ) | (326,409 | ) | (16.79 | ) | (1,180,595 | ) | ||||||||
| Change in fair value of Bitcoin | - | 364,800 | - | 523,498 | ||||||||||||
| Stock of bitcoins at the end of the year | 15.70 | $ | 1,964,090 | 2.58 | $ | 246,136 | ||||||||||
| USDC (one unit = one dollar) | ||||||||||||||||
| Balance brought forward: | - | - | - | 320,458 | ||||||||||||
| Exchange for USD | - | - | - | (45,168 | ) | |||||||||||
| Exchange for USDT | - | - | - | (5,437 | ) | |||||||||||
| Procurement of equipment and expenses | - | - | - | (269,853 | ) | |||||||||||
| Balance carried forward: | - | - | - | - | ||||||||||||
| USDT (one unit = one dollar) | ||||||||||||||||
| Balance brought forward: | - | 11,617 | - | 180,310 | ||||||||||||
| Proceeds from exchange of USD and USDC | - | 2,381,843 | - | 421,254 | ||||||||||||
| Proceeds from exchange of bitcoins | - | 326,409 | - | 1,180,595 | ||||||||||||
| Procurement of equipment and expenses | - | (2,719,869 | ) | - | (1,770,542 | ) | ||||||||||
| Proceeds from sale of used equipment | - | - | - | - | ||||||||||||
| Balance carried forward: | - | - | - | 11,617 | ||||||||||||
| - | $ | 1,964,090 | - | $ | 257,753 | |||||||||||
2. Property, equipment and vehicles
| Cost: | Land | Plant | Equipment | Vehicles | Total | ||||||||||||||||
| Balance, January 1, 2025 | $ | 1,896,291 | $ | 2,384,687 | $ | 8,127,643 | $ | 133,308 | $ | 12,541,929 | |||||||||||
| Additions | - | 128,390 | 2,900,215 | - | 3,028,605 | ||||||||||||||||
| Balance, June 30, 2025 | $ | 1,896,291 | $ | 2,513,077 | $ | 11,027,858 | $ | 133,308 | $ | 15,570,534 | |||||||||||
| Depreciation: | |||||||||||||||||||||
| Balance, January 1, 2025 | $ | 526,079 | $ | 2,458,739 | $ | 121,205 | $ | 3,106,023 | |||||||||||||
| Charge for the period | 243,477 | 1,364,325 | 12,103 | 1,619,905 | |||||||||||||||||
| Balance, June 30, 2025 | - | $ | 769,556 | $ | 3,823,064 | $ | 133,308 | $ | 4,725,928 | ||||||||||||
| Net book value: | |||||||||||||||||||||
| Balance, January 1, 2025 | $ | 1,896,291 | $ | 1,858,609 | $ | 5,668,904 | $ | 12,103 | $ | 9,435,907 | |||||||||||
| Balance, June 30, 2025 | $ | 1,896,291 | $ | 1,743,521 | $ | 7,204,794 | - | $ | 10,844,606 | ||||||||||||
3. Loan and interest expense
In March 2025, the Company took a loan of $ 3.0 million, with interest at a simple rate of 12% per annum. The loan is repayable in 24 equal instalments and is secured on all the assets of the Company's mining site at Duff, Tennessee. The interest expense for the period to June 30, 2025 is $90,000 (2024: Nil.
4. Revenue
| 2025-1H | 2024-1H | |||||||
| Bitcoin Operations (1) | 3,859,669 | 3,669,236 | ||||||
| Hosting income from third parties (2) | 135,889 | - | ||||||
| 3,995,558 | 3,669,236 | |||||||
(1) The output of bitcoins during the first half year of 2025 is 40.27 coins (2024-1H:61.53 coins).
(2) The Company began providing hosting services to third parties and charging a service fee from July 1, 2024.
5. Shareholders' Equity
Preferred Shares
On February 13, 2025, the board of directors (the "Board of Directors") of the Company approved to change the maximum number of preferred shares the Company was authorized to issue from 50,000,000 preferred shares, par value $0.00101 each, to an unlimited number of preferred shares, no par value each, and to amend and restate the Company's Memorandum and Articles of Association, as amended, to reflect the changes.
On February 13, 2025, the Board of Directors approved a share consolidation of the Company's preferred shares at the ratio of one-for-fifteen with an effective date of February 17, 2025.
Ordinary Shares
On February 13, 2025, the Board of Directors approved to change the maximum number of ordinary shares the Company was authorized to issue from 150,000,000 ordinary shares, par value US$0.001 each, to an unlimited number of ordinary shares of no par value each, and to amend and restate the Company's Memorandum and Articles of Association, as amended, to reflect the changes.
On February 13, 2025, the Board of Directors approved a share consolidation of the Company's ordinary shares at the ratio of one-for-fifteen with an effective date of February 17, 2025. On March 18, 2025, the Company paid cash to certain minor shareholders and cancelled 144 ordinary shares due to share consolidation reconciliation.
All historical share and per share amounts in these financial statements have been retroactively adjusted to reflect the share consolidations.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.
For further information, please contact
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