SINGAPORE, Nov. 13, 2023 (GLOBE NEWSWIRE) — SAI.TECH International Company (“SAI.TECH” or “SAI” or the “Firm”, NASDAQ: SAI, SAITW), at this time reported unaudited monetary outcomes for the six months ended June 30, 2023.
Monetary Highlights for the Six Months Ended June 30, 2023
- Complete revenues for the six months ended June 30, 2023, have been US$ 3.0 million, having decreased 44% in comparison with the six months ended June 30, 2022.
- Gross earnings for the six months ended June 30, 2023, was US $0.2 million, having decreased 70% in comparison with the six months ended June 30, 2022.
- Internet losses for the six months ended June 30, 2023, was US$3.7 million in comparison with web losses of US$2.7 million for the six months ended June 30, 2022.
Mr. Arthur Lee, Chairman and Chief Govt Officer of the Firm, said that, “The destructive impression brought on by tightened regulation on crypto mining companies and the vibration in cryptocurrency markets on the Firm’s enterprise resulted within the downward pattern on the Firm’s half-year monetary outcome.”
Latest Developments
Regardless of the deterioration of the worldwide bitcoin market and the autumn of bitcoin worth, we imagine that minimizing complete mining prices is essential to future success and have continued our analysis and growth in direction of progressive liquid cooling applied sciences, to broaden our capabilities and benefits as an energy-saving clear bitcoin mining operator. We’ve got powered up our U.S. R&D Heart SAI NODE Marietta and OCEC Computing Warmth Recycle Know-how Improvement Heart in Ohio in August, after months of growth. Moreover our infrastructure merchandise which might be appropriate with bitcoin mining machines, we’ve begun the analysis, growth, and manufacturing of a brand new containerized information middle with immersive liquid cooling capabilities to supply steady working setting for AI-dedicated GPUs, at the side of GIGABYTE’s HPC immersion servers.
Analysis and Improvement of New Merchandise
- We’ve got begun the analysis, growth and manufacturing of a brand new containerized information middle with immersive liquid cooling capabilities to supply a steady working setting for AI-dedicated GPUs, at the side of GIGABYTE’s HPC immersion servers.
On-site Undertaking Improvement within the U.S.
- We’ve got powered up our U.S. R&D Heart SAI NODE Marietta and OCEC Computing Warmth Recycle Know-how Improvement Heart in Ohio in August, after months of growth. The SAI US R&D Heart SAI NODE Marietta and OCEC Computing Warmth Recycle Know-how Improvement Heart are situated in Marietta, Ohio. It showcases how SAI’s proprietary know-how captures waste warmth from high-performance computing and provides the recycled warmth for greenhouse heating in a managed method. The recycled warmth can be utilized not solely to profit agricultural operations, but in addition have the potential to broaden to residential and business heating purposes, or fishery and poultry purposes sooner or later.
The SAI U.S. R&D Heart SAI NODE Marietta and OCEC Computing Warmth Recycle Heart function open and scale-up testing platform for computing warmth seize and provide know-how, information middle operation system and varied warmth recycle purposes supported by present and future AI and Bitcoin mining know-how.
Presence at On-line and In-Individual Occasions
- We launched our annual on-line presentation ‘SAITIME 2023’ to announce our product and mission growth plan, on April 20, 2023.
- We co-hosted a ribbon lower occasion with Southeastern Ohio Port Authority for Computing Warmth Recycle Know-how Improvement Heart at Marietta, Ohio, on Might 2, 2023.
- We offered on the 2023 SelectUSA Funding Summit to introduce our SAI NODE Marietta mission on Might 3rd, in Maryland on Might 3, 2023.
- We offered on the Bitcoin Mining Digital Convention, offered by Maxim Group LLC and hosted by M-Vest, on Might 16, 2023.
- We participated in The Ethereum Group Convention (“EthCC”) aspect occasion occasion on July 18, 2023.
- We hosted the second ‘Bit Warmth Day’ on-site gathering occasion in our newly powered up U.S. R&D Heart SAI NODE Marietta and OCEC Computing Warmth Recycle Know-how Improvement Heart, at Marietta, Ohio on August 9, 2023.
Monetary Outcomes for the Six Months Ended June 30, 2023
Revenues
Gross sales of Merchandise. Gross sales of merchandise represented the gross sales of high-performance digital asset mining machines to finish clients. The income from gross sales of merchandise was $2.1 million for the six months ended June 30, 2023, decreased by $1.5 million, or 42% from $3.7 million for the six months ended June 30, 2022. The lower was primarily as a consequence of slack market situations of mining machines amid a sluggish bitcoin market.
Internet hosting Service. Internet hosting service contains all providers associated to internet hosting (together with maintaining and operating the mining machines) and every day upkeep of servers to clients. Our internet hosting income was derived from our internet hosting operations in Kazakhstan, which have been $0.3 million and $1.0 million for the six months ended June 30, 2023 and 2022, respectively. The lower was primarily in reference to our internet hosting consumer that steadily scaled down the operation in response to native electrical energy energy coverage.
Mining Pool. Mining pool earnings contains revenues from the Firm’s self-owned sai.plus mining pool, representing mining rewards from sai.plus mining pool. The Firm allocates mining rewards to every pool participant, primarily the internet hosting purchasers, web of the pool operator charges based mostly on the sharing mechanism predetermined and data as price of mining pool income. Our mining pool revenues have been $0.2 million and $0.6 million, respectively, for the six months ended June 30, 2023, and June 30, 2022.
Mining Income. Mining income represents mining rewards generated from the Firm’s self-owned mining machines. The mining income is especially derived from our operations in Mexico starting in 2022. Our mining revenues have been $0.4 million and $0.03 million, respectively for the six months ended June 30, 2023, and June 30, 2022. We began our self-mining enterprise within the second half of 2022.
Value of Revenues
Value of revenues primarily included the fee for the acquisition of high-performance digital asset mining machines, prices incurred for our self-mining actions, and the direct prices incurred for the availability of internet hosting providers and mining rewards allotted to every supplier of pool participant in change for his or her computing energy contributed to the mining pool.
The price of revenues decreased by $1.9 million or 40%, from $4.8 million for the six months ended June 30, 2022, to $2.8 million for the six months ended June 30, 2023. The lower was primarily because of the $1.2 million lower in price for the acquisition of high-performance digital asset mining machines and a $0.6 million lower in internet hosting service amid a sluggish bitcoin market within the first half of 2023.
Gross (Loss)/Revenue and Gross Margin
Our gross revenue decreased by $0.4 million, from $0.6 million for the six months ended June 30, 2022, to gross revenue of $0.2 million for six months ended June 30, 2023. Gross revenue as a share of income (“gross margin”) was 11% and 6% for the six months ended June 30, 2022, and 2023, respectively. The lower of gross margin was primarily because of the lower in margin of gross sales of merchandise because of a drop within the promoting worth amid a sluggish bitcoin market.
Promoting and Advertising Bills
Our promoting and advertising bills primarily consisted of workers prices and travelling bills to take part in advertising actions. Promoting and advertising bills elevated by $0.4 million from $0.24 million for the six months ended June 30, 2022, to $0.65 million for the six months ended June 30, 2023. The rise was primarily as a consequence of a $0.2 million enhance in depreciation expense, and a $0.2 million enhance in incentive plan amortization that was launched in December 2022.
Basic and Administrative Bills
Our common and administrative bills primarily consisted of salaries and bonuses, workplace associated bills {and professional} service charges. Basic and administrative bills elevated by $0.5 million, or 20%, from $2.57 million for the six months ended June 30, 2022, to $3.11 million for the six months ended June 30, 2023. The rise was primarily attributable to a rise of $1.2 million in incentive plan amortization that was launched in December 2022 and a lower of $0.6 million in depreciation expense.
Analysis and Improvement Bills
Our analysis and growth bills primarily consisted of amortization bills of intangible belongings and prices for the event of waste warmth restoration know-how. Analysis and growth bills elevated by $0.5 million, or 380%, from $0.13 million for the six months ended June 30, 2022, to $0.61 million for the six months ended June 30, 2023. The rise was primarily attributable to the amortization of analysis and growth workers’ incentive plan that was launched in December 2022.
Impairment of Lengthy-Lived Property
Impairment of long-lived belongings have been nil and $0.07 million, for the six months ended June 30, 2023 and June 30, 2022, respectively. The impairment of long-lived belongings in the course of the six months ended June 30, 2022 was primarily because of the impairment of cryptocurrency.
Different Revenue (Expense), web
Different earnings was $0.5 million for the six months ended June 30, 2023, which primarily includes a authorities grant of $0.7 million, $0.1 million acquire on disposal of inventories, $0.2 million funding acquire, offset by loss on disposal of fastened belongings of $0.6 million. Different expense was $0.3 million for the six months ended June 30, 2022, which primarily includes of loss on disposal of fastened belongings of $0.3 million.
Internet loss
Because of the foregoing, we had a web lack of $2.7 million for the six months ended June 30, 2022, and a web lack of $3.7 million for the six months ended June 30, 2023.
Different monetary data
As of June 30, 2023, the Firm’s complete money and money equivalents have been US$ 7.7 million, in contrast with $11.22 million as of December 31, 2022. Internet money utilized in working actions for the six months ended June 30, 2023 was $0.48 million, as in comparison with $8.43 million for the six months ended June 30, 2022, decreased by 94.3%. Internet money utilized in investing actions was $2.97 million for the six months ended June 30, 2023, as in comparison with $0.68 million for the six months ended June 30, 2022, representing a rise of 335.3%. Internet money supplied by financing actions for the six months ended June 30, 2023 was nil, as in comparison with $21.07 million for the six months ended June 30, 2022, decreased by 100%.
About SAI.TECH
SAI.TECH is a Nasdaq-listed (SAI) warmth recycle computing middle operator headquartered in Singapore. SAI is devoted to offering clear computing providers based mostly on liquid cooling and chip waste warmth utilization know-how.
In Might 2022, SAI turned a publicly traded firm beneath the brand new ticker image “SAI” on the Nasdaq Inventory Market (NASDAQ) by a merger with TradeUP International Company (“TradeUP”). For extra data on SAI.TECH, please go to https://sai.tech/.
Ahead-Trying Statements:
This press launch could include forward-looking statements throughout the that means of the Non-public Securities Litigation Reform Act of 1995. The phrases “imagine”, “count on”, “anticipate”, “mission”, “targets”, “optimistic”, “assured that”, “proceed to”, “predict”, “intend”, “intention”, “will” or related expressions are meant to determine forward-looking statements. All statements aside from statements of historic reality are statements which may be deemed forward-looking statements. These forward-looking statements together with, however not restricted to, statements regarding SAI.TECH and the Firm’s operations, monetary efficiency and situation are based mostly on present expectations, beliefs and assumptions that are topic to vary at any time. SAI.TECH cautions that these statements by their nature contain dangers and uncertainties, and precise outcomes could differ materially relying on a wide range of necessary elements equivalent to authorities and inventory change laws, competitors, political, financial and social situations all over the world and in China together with these mentioned in SAI.TECH’s Type 20-F beneath the headings “Threat Components”, “Outcomes of Operations” and “Enterprise Overview” and different experiences filed with the Securities and Alternate Fee on occasion. All forward-looking statements are relevant solely as of the date it’s made and SAI.TECH particularly disclaims any obligation to take care of or replace the forward-looking data, whether or not of the character contained on this launch or in any other case, sooner or later.
| SAI.TECH GLOBAL CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In 1000’s, apart from variety of shares and per share information) |
||||||||
| As of December 31, 2022 |
As of June 30, 2023 |
|||||||
| (US$) | (US$) | |||||||
| (Unaudited) | ||||||||
| Property | ||||||||
| Present belongings: | ||||||||
| Money and money equivalents | 11,215 | 7,707 | ||||||
| Accounts receivable | 1,541 | 2,021 | ||||||
| Inventories | 152 | 285 | ||||||
| Cryptocurrencies | 50 | 412 | ||||||
| Stablecoin belongings | 4,612 | 4,466 | ||||||
| Deposits, prepayments and different present belongings, web | 1,121 | 985 | ||||||
| Complete present belongings | 18,691 | 15,876 | ||||||
| Non-current belongings: | ||||||||
| Property and tools, web | 1,872 | 2,740 | ||||||
| Intangible belongings, web | 94 | 23 | ||||||
| Building in course of, web | — | 1,092 | ||||||
| Working lease right-of-use belongings | 443 | 956 | ||||||
| Complete non-current belongings: | 2,409 | 4,811 | ||||||
| Complete belongings | 21,100 | 20,687 | ||||||
| Liabilities and fairness | ||||||||
| Present liabilities: | ||||||||
| Accounts payable | 165 | 1,257 | ||||||
| Working lease liabilities-current | 188 | 240 | ||||||
| Accrued and different liabilities | 159 | 186 | ||||||
| Different payable and accrued liabilities | 43 | 41 | ||||||
| Complete present liabilities | 555 | 1,724 | ||||||
| Working lease liabilities-non-current | 231 | 676 | ||||||
| Complete Liabilities | 786 | 2,400 | ||||||
| Shareholders’ fairness: | ||||||||
| *Class A Extraordinary shares ($0.0001 par worth; 330,369,366 shares approved, 13,315,903 and 14,113,299 shares issued and excellent in December 31, 2022 and June 30, 2023.) | 1 | 1 | ||||||
| *Class B Extraordinary shares ($0.0001 par worth; 9,630,634 shares approved and excellent in December 31, 2022 and June 30, 2023.) | 1 | 1 | ||||||
| Extra paid-in capital | 46,030 | 47,859 | ||||||
| Accrued deficit | (25,257 | ) | (28,982 | ) | ||||
| Accrued different complete earnings/(loss) | (461 | ) | (592 | ) | ||||
| Complete shareholders’ fairness | 20,314 | 18,287 | ||||||
| Complete Liabilities and shareholders’ fairness | 21,100 | 20,687 | ||||||
| * The shares and per share information are offered on a retroactive foundation to replicate the reorganization. | ||||||||
| SAI.TECH GLOBAL CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME (In 1000’s, apart from variety of shares and per share information) |
||||||||
| For the Six Months Ended June 30, |
||||||||
| 2022 | 2023 | |||||||
| (US$) | (US$) | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenues | 5,376 | 3,026 | ||||||
| Value of revenues | 4,774 | 2,847 | ||||||
| Gross Revenue | 602 | 179 | ||||||
| Gross sales and advertising bills | 238 | 652 | ||||||
| Basic and administrative bills | 2,574 | 3,105 | ||||||
| Analysis and growth bills | 129 | 609 | ||||||
| Impairment of long-lived belongings | 70 | — | ||||||
| Complete working bills | 3,011 | 4,366 | ||||||
| Loss from operations | (2,409 | ) | (4,187 | ) | ||||
| Different (expense)/earnings, web | (320 | ) | 462 | |||||
| Loss earlier than earnings tax | (2,729 | ) | (3,725 | ) | ||||
| Revenue tax bills | — | — | ||||||
| Internet loss | (2,729 | ) | (3,725 | ) | ||||
| Different complete loss | ||||||||
| Overseas foreign money translation loss | (118 | ) | (131 | ) | ||||
| Complete complete loss | (2,847 | ) | (3,856 | ) | ||||
| Loss per abnormal share* | ||||||||
| Fundamental and diluted | (0.1209 | ) | (0.1578 | ) | ||||
| Weighted common variety of abnormal shares excellent*: | ||||||||
| Fundamental & Diluted | 22,564,287 | 23,611,768 | ||||||
| * The shares and per share information are offered on a retroactive foundation to replicate the reorganization. | ||||||||
![Bitcoin [BTC], Gold, S&P 500 and a case of the widening correlation](https://www.blocpress.com/wp-content/uploads/2023/03/chart-1905225_1920-1000x600-120x86.jpg)
