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Abits Group Inc Reports Amended Unaudited Financial Statements for the First Half of 2025

1. ABTS corrected its financial statements for H1 2025 due to authorization changes. 2. No changes were reported in overall financial figures and loss per share. 3. A reverse split occurred on March 10, affecting share counts. 4. Revenue for H1 2025 showed an increase compared to H1 2024. 5. Total liabilities rose significantly, indicating increased financial leverage.

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Why Bearish?

The amendment and corrections can raise investor concerns over financial accuracy. Similar cases historically led to reduced investor confidence and negative price impacts.

How important is it?

The corrections and losses reflect potential operational risks, impacting investor sentiment and stock perception.

Why Short Term?

Immediate effects are expected as the market digests the corrections, but longer-term impacts depend on operational improvements.

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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 INCCONSOLIDATED 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 INCUNAUDITED 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*  Additionalpaid-in  Accumulated  othercomprehensive      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 theSix 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 INCNOTES 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 contactir@abitsgroup.com

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