Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F.
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Exhibit 99.1
Canaan Inc. Reports Unaudited Second Quarter
2026 Financial Results
Reached a record 1,915 BTC and 3,952 ETH cryptocurrency
treasury1
Mined 243 bitcoins in the Second Quarter 2026
Repurchased approximately 16.4 million ADSs
for an Aggregate of US$7.4 million as of September 8, 2026
Singapore, September 8, 2026 /PRNewswire/
-- Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), an innovator in compute and energy infrastructure, today
announced its unaudited financial results for the three months ended June 30, 2026.
Second Quarter 2026 Operating and Financial
Highlights
| Metrics |
Second Quarter 2026 |
Key takeaways |
| BTC produced |
243 BTC |
Continued mining output |
| Crypto treasury |
1,915.50 BTC / 3,951.70 ETH |
Record-high treasury |
| Installed mining computing power (Non-JV) |
10.05 EH/s |
Up 23.3% YoY |
| All-in power cost |
~US$0.043 /kWh |
Competitive mining cost base |
| ABC Projects |
49% interest / 4.85 EH/s
installed hashrate by the end of July 2026 |
Steady fleet upgrade |
| Share repurchased under current share repurchase program |
16.4 million ADSs /
US$7.4 million |
Disciplined capital allocation |
Nangeng Zhang, chairman, and chief executive officer
of Canaan, commented, “Q2 2026 presented a difficult period for bitcoin mining, as renewed bitcoin price pressure, weaker mining
economics, and seasonal power constraints weighed on equipment demand and profitability. Our team responded by staying close to customers,
matching production to demand, and protecting liquidity. We generated US$31.9 million in total revenue with 2.5 EH/s of computing power
sold during the second quarter. Our mining operations produced 243 bitcoins and continued to generate positive cash contribution before
depreciation, supported by competitive power economics, while our digital asset treasury reached a record 1,915 BTC and 3,952 ETH at quarter-end.
Beyond revenue generation, we kept our inventory lean, tightened spending and cash-flow management, and further streamlined our organization.
“Despite the quarter’s market headwinds,
we focused on building the capabilities that we believe are necessary for Canaan’s next phase. Together with our partner, we advanced
the fleet upgrade at Project ABC, where installed hashrate reached 4.85 EH/s by the end of July. We will continue to explore cost-advantaged
sites that can support efficient deployment and cash generation, while advancing collaboration around compute-to-heat reuse applications.
On the product side, we kept optimizing the A16 series, focusing on cost-effective air-cooled models and high-temperature water-cooled
models, and developed new Avalon Home products for household heating applications, with mass-production preparations underway for the
winter heating season. In parallel, we continued advancing our efforts on long-term power resources in North America with further progress.
We will provide updates when we reach an appropriate stage for disclosure. As we expand beyond mining equipment and operations into compute-plus-energy
infrastructure, these initiatives are designed to improve fleet efficiency, broaden our operating flexibility, and strengthen our foundation
for long-term value creation as the industry evolves.”
Note 1: Defined as the total number of bitcoins and other cryptocurrencies
owned by the Company on its Balance Sheet, including any bitcoins receivable, excluding bitcoins that the Company has received as customer
deposits.
Jin “James” Cheng, chief financial
officer of Canaan, stated, “We navigated a demanding Q2 market and generated US$31.9 million in total revenue. Product revenue was
US$13.6 million, reflecting softer demand for mining rigs and a lower average selling price for computing power, while mining revenue
recorded US$17.7 million amidst bitcoin price pressure and seasonal curtailments. We kept mining-machine production costs relatively stable
and held our all-in power cost at a competitive level of around US$0.04/kWh across our mining operations. Nevertheless, our reported results
were also affected by several non-cash items, including a US$25.3 million inventory write-down, prepayment write-down, and provision for
reserve for inventory purchase commitments, a US$9.2 million impairment of property and equipment, and a US$18.2 million loss of fair
value change in cryptocurrency, all of which resulted from a decrease in cryptocurrency prices during the second quarter. These accounting
charges weighed on our bottom line but did not alter our focus on cost control, liquidity, and operational efficiency.
“As we enter the second half of 2026, we
intend to maintain disciplined inventory levels, preserve financial flexibility, and direct resources toward securing power capacity for
our compute-energy infrastructure strategy. We are also applying a more active capital-allocation framework to monetize a portion of our
digital asset treasury to fund stock repurchases under the existing program. The Company has deployed an aggregate US$7.4 million to repurchase
16.4 million ADSs under the current share repurchase plan as of today, alongside management’s continued share purchases using their
personal funds. We believe the Company’s current equity valuation understates the combination of our digital asset treasury, cash
liquidity, and our mining operations, which continue to generate bitcoin rewards. Repurchasing shares represents an attractive use of
capital alongside the exploration of lower-cost power and infrastructure. We will continue balancing near-term resilience with opportunities
that can strengthen per-share value and support Canaan’s long-term development.”
Second Quarter 2026 Financial Results
Total revenues in the second quarter of
2026 were US$31.9 million, compared to US$62.7 million in the first quarter of 2026 and US$100.2 million in the same period of 2025. Total
revenues consisted of US$13.6 million in products revenue, US$17.7 million in mining revenue, and US$0.6 million in other revenues.
Products revenue in the second quarter
of 2026 was US$13.6 million, compared to US$42.9 million in the first quarter of 2026 and US$71.9 million in the same period of 2025.
The sequential and year-over-year decreases were mainly due to the decreased computing power sold and average selling price, resulting
from a tightening of overall market demand led by the decline in the bitcoin price.
Mining revenue in the second quarter of
2026 was US$17.7 million, compared to US$19.1 million in the first quarter of 2026 and US$28.1 million in the same period of 2025. The
sequential and year-over-year decreases were mainly due to the decrease in the average bitcoin price.
Cost of revenues in the second quarter
of 2026 was US$61.2 million, compared to US$85.6 million in the first quarter of 2026 and US$90.9 million in the same period of 2025.
Products costs in the second quarter of
2026 were US$40.3 million, compared to US$62.4 million in the first quarter of 2026 and US$58.8 million in the same period of 2025. The
sequential and year-over-year decreases were consistent with the decrease in computing power sold. The inventory write-down, prepayment
write-down, and provision for reserve for inventory purchase commitments accrued for this quarter were US$25.3 million, compared to the
inventory write-down, prepayment write-down, and provision for reserve for inventory purchase commitments amounting to US$24.5 million
for the first quarter of 2026 and the inventory write-down of US$1.0 million for the same period of 2025. Products costs consist of direct
production costs of mining machines, and indirect costs related to production, as well as inventory write-down, prepayment write-down,
and provision for reserve for inventory purchase commitments.
Mining costs in the second quarter of 2026
were US$20.4 million, compared to US$22.7 million in the first quarter of 2026 and US$32.0 million in the same period of 2025. Mining
costs herein consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation of deployed
mining machines. The sequential and year-over-year decreases were mainly due to the decreased energized computing power. The depreciation
in this quarter for deployed mining machines was US$6.3 million, compared to US$5.8 million in the first quarter of 2026 and US$10.5 million
in the same period of 2025.
Gross loss in the second quarter of 2026
was US$29.3 million, compared to a gross loss of US$22.9 million in the first quarter of 2026 and a gross profit of US$9.3 thousand in
the same period of 2025.
Total operating expenses in the second
quarter of 2026 were US$40.1 million, compared to US$31.4 million in the first quarter of 2026 and US$36.4 million in the same period
of 2025.
Research and development expenses in the second
quarter of 2026 were US$14.9 million, compared to US$15.4 million in the first quarter of 2026 and US$16.4 million in the same period
of 2025. The sequential decrease was mainly due to a decrease of US$0.3 million in staff costs. The year-over-year decrease was mainly
due to a decrease of US$4.1 million in staff costs, a decrease of US$0.7 million in share-based compensation expenses, partially
offset by an increase of US$3.7 million in research and development expenditure. Research and development expenses in the second quarter
of 2026 also included share-based compensation expenses of US$0.6 million.
Sales and marketing expenses in the second quarter
of 2026 were US$1.9 million, compared to US$1.2 million in the first quarter of 2026 and US$4.5 million in the same period of 2025. The
sequential increase was mainly due to an increase of US$0.6 million in staff costs. The year-over-year decrease was mainly attributable
to a decrease of US$2.3 million in staff costs. Sales and marketing expenses in the second quarter of 2026 also included share-based compensation
expenses of US$29 thousand.
General and administrative expenses in the second
quarter of 2026 were US$15.1 million, compared to US$15.0 million in the first quarter of 2026 and US$16.4 million in the same period
of 2025. General and administrative expenses remained stable sequentially. The year-over-year decrease was mainly due to a decrease of
US$1.8 million in professional service fees, a decrease of US$0.9 million in share-based compensation expenses, and a decrease of US$0.6
million in staff costs, partially offset by an increase of US$2.6 million in credit loss expense. General and administrative expenses
in the second quarter of 2026 also included share-based compensation expenses of US$3.8 million.
Impairment on property, equipment and software
in the second quarter of 2026 was US$9.2 million, compared to nil in the first quarter of 2026 and nil in the same period of 2025.
Loss from operations in the second quarter
of 2026 was US$69.5 million, compared to US$54.3 million in the first quarter of 2026 and US$27.1 million in the same period of 2025.
Change in fair value of cryptocurrency and
Change in fair value of financial derivatives in the second quarter of 2026 were a loss of US$9.3 million and a loss of US$8.9
million, respectively, compared to a loss of US$24.9 million and a loss of US$16.0 million in the first quarter of 2026, and a gain of
US$10.6 million and a gain of US$23.4 million in the second quarter of 2025, respectively. The losses were mainly due to the decreased
bitcoin price on June 30, 2026, compared to the bitcoin price on March 31, 2026.
Foreign exchange gains (losses), net in
the second quarter of 2026 were a loss of US$3.0 million, compared to a loss of US$4.0 million in the first quarter of 2026 and a gain
of US$0.3 million in the same period of 2025, respectively.
Loss before income tax expense in the
second quarter of 2026 was US$92.2 million, compared to US$88.8 million in the first quarter of 2026 and US$10.3 million in
the same period of 2025.
Equity in gains (losses) of equity investees
in the second quarter of 2026 was a loss of US$4.1 million, compared to a gain of US$0.2 million in the first quarter of 2026 and
nil in the same period of 2025.
Net loss in the second quarter of 2026
was US$97.6 million, compared to US$88.7 million in the first quarter of 2026 and US$11.1 million in the same period of 2025.
Non-GAAP adjusted EBITDA in the second
quarter of 2026 was a loss of US$74.9 million, as compared to a loss of US$76.3 million in the first quarter of 2026 and a gain of US$25.3
million in the same period of 2025. For further information, please refer to "Use of Non-GAAP Financial Measures" in this press
release.
Foreign currency translation adjustment, net
of nil tax, in the second quarter of 2026 was a gain of US$3.8 million, compared to a gain of US$5.2 million in the first quarter
of 2026 and a gain of US$1.4 million in the same period of 2025, respectively.
Basic and diluted net loss per American depositary
share (“ADS”) in the second quarter of 2026 was US$0.13. In comparison, basic and diluted net loss per ADS in the first
quarter of 2026 was US$0.13, while basic and diluted net loss per ADS in the same period of 2025 were US$0.03. Each ADS represents 15
of the Company's Class A ordinary shares.
As of June 30, 2026, the Company held Cryptocurrency
assets with a fair value of US$47.0 million and Cryptocurrency receivable with an aggregate fair value
of US$70.9 million, respectively. Cryptocurrency assets primarily consist of 698.5 bitcoins owned by the Company. Cryptocurrency receivable
consists of 1,117.0 bitcoins pledged for secured term loans and 100.0 bitcoins transferred to a fixed-term product. The classification
of cryptocurrency receivable as current assets is consistent with the corresponding secured term loans. As of June 30,
2026, the Company held a total of 1,915.5 bitcoins.
As of June 30, 2026, the Company had cash
of US$66.0 million, compared to US$80.8 million as of December 31, 2025.
Accounts receivable, net as of June 30,
2026, were US$1.7 million, compared to US$19.3 million as of December 31, 2025. Accounts receivable were mainly due to an installment
policy implemented for some major customers who meet certain conditions.
Investment in equity investees as of June 30,
2026, was US$11.8 million.
ADSs Outstanding
As of June 30, 2026, the Company had a total
of 690,594,191 ADSs outstanding, each representing 15 of the Company’s Class A ordinary shares.
Recent Developments
Share Repurchase Program Using Portion of
Digital Asset Treasury
On December 17, 2025, the Company announced
that its board of directors had renewed a share repurchase program authorizing the repurchase of up to US$30 million of its outstanding
ADSs or Class A ordinary shares over a 12-month period beginning December 12, 2025 (the “Share Repurchase Program”).
Repurchases may be made through open-market transactions, privately negotiated transactions, block trades, or a combination thereof, subject
to market conditions and regulatory requirements.
On August 4, 2026, the Company announced
that it had been authorized to monetize a portion of its digital asset treasury to fund repurchases under the Share Repurchase Program,
reflecting a disciplined capital allocation approach that balances active treasury management with the Company’s long-term commitment
to maintaining a strategic digital asset treasury.
In late August, the Company sold 3,952 ETH and
54 Bitcoins, generating approximately US$13.9 million in cash, a portion of which was used for share repurchases. The Company repurchased
approximately 2.8 million ADSs for about US$2.0 million in the first half of 2026 and an additional 13.6 million ADSs for approximately
US$5.4 million in late August.
As of September 8, 2026, the Company had
repurchased approximately 16.4 million ADSs for a total consideration of US$7.4 million under the Share Repurchase Program.
The sale of a portion of the Company’s digital
assets does not represent a change in its long-term digital asset strategy.
At-the-Market Offering ("ATM")
Program
On October 24, 2025, the Company established
a new ATM equity offering program to replace the prior program, which had expired. The renewal was intended to broaden banking relationships
and enhance financial flexibility for future growth initiatives.
The Company has not made any sales under the ATM
Program since the beginning of the second quarter of 2026 to date.
Business Outlook
For the third quarter of 2026, the Company expects
total revenues to be in the range of US$11 million to US$15 million, reflecting the near-term market conditions and evolving customer
dynamics, which are subject to change.
The Company will continue to closely monitor the
global policy environment and market developments, and may revise or update its outlook as appropriate, based on future clarity and business
visibility.
Conference Call Information
The Company’s management team will hold
a conference call at 8:00 A.M. U.S. Eastern Time on September 8, 2026 (or 8:00 P.M. Singapore Time on the same day) to
discuss the financial results. Details for the conference call are as follows:
| Event
Title: |
Canaan
Inc. Second Quarter 2026 Earnings Conference Call |
| Registration
Link: |
https://register-conf.media-server.com/register/BI95b35b81eafb40488eff6d3e49635cc0 |
All participants must use the link provided above
to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set
of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.
A live and archived webcast of the conference
call will be available at the Company’s investor relations website at investor.canaan-creative.com.
About Canaan Inc.
Established in 2013, Canaan Inc. (NASDAQ:
CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing
equipment production, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field.
In 2013, Canaan’s founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology under the
brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market. To learn more about Canaan, please
visit https://www.canaan.io/.
Safe Harbor Statement
This press release contains forward-looking statements.
These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar statements. Among
other things, the business outlook and quotations from management in this announcement, as well as Canaan Inc.'s strategic
and operational plans, contain forward-looking statements. Canaan Inc. may also make written or oral forward-looking statements
in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K, in its annual
report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees
to third parties. Statements that are not historical facts, including statements about Canaan Inc.'s beliefs and expectations,
such as expectations with regard to revenue or mining hash rate deployment, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in
any forward-looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business
development, the ability of the Company to execute against its goals, financial condition and results of operations; the expected growth
of the bitcoin industry and the price of bitcoin; the Company's expectations regarding demand for and market acceptance
of its products, especially its bitcoin mining machines; the Company's expectations regarding maintaining and strengthening
its relationships with production partners and customers; the Company's investment plans and strategies, fluctuations in the Company's
quarterly operating results; competition in its industry; changing macroeconomic and geopolitical conditions, including evolving international
trade policies and the implementation of increased tariffs, import restrictions, and retaliatory trade actions; and relevant government
policies and regulations relating to the Company and cryptocurrency. Further information regarding these and other risks is included
in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of
this press release, and Canaan Inc. does not undertake any obligation to update any forward-looking statement, except as required
under applicable law.
Use of Non-GAAP Financial Measures
In evaluating Canaan's business, the Company uses
non-GAAP measures, such as adjusted EBITDA, as supplemental measures to review and assess its operating performance. The Company defines
adjusted EBITDA as net loss excluding income tax (benefit) expenses, interest income, interest expense, depreciation and amortization
expenses, share-based compensation expenses, impairment on property, equipment and software, change in fair value of financial instruments
other than derivatives and excess of fair value of convertible preferred shares. The Company believes that the non-GAAP financial measures
provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance
and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and
operational decision-making.
The non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools
and investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other
consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. One of the key limitations of using adjusted
EBITDA is that it does not reflect all of the items of income and expense that affect the Company's operations. Further, the non-GAAP
financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability
may be limited. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP
performance measures, all of which should be considered when evaluating the Company's performance.
Investor Relations Contact
Canaan Inc.
Xi Zhang
Email: IR@canaan-creative.com
Christensen Advisory
Christian Arnell
Email: canaan@christensencomms.com
Media Contact
BlocksBridge Consulting
Jesse Colzani
Email: canaan@blocksbridge.com
CANAAN INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(all amounts in thousands, except share and
per share data, or as otherwise noted)
| | |
As of December 31, | | |
As of June 30, | |
| | |
2025 | | |
2026 | |
| | |
USD | | |
USD | |
| ASSETS | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash | |
| 80,778 | | |
| 66,006 | |
| Accounts receivable, net | |
| 19,290 | | |
| 1,725 | |
| Inventories | |
| 180,816 | | |
| 128,835 | |
| Prepayments and other current assets | |
| 99,243 | | |
| 83,134 | |
| Cryptocurrency receivable, current | |
| 52,699 | | |
| 29,139 | |
| Held-for-sale assets, current | |
| 464 | | |
| 1,713 | |
| Total current assets | |
| 433,290 | | |
| 310,552 | |
| Non-current assets: | |
| | | |
| | |
| Cryptocurrency | |
| 83,339 | | |
| 47,019 | |
| Cryptocurrency receivable, non-current | |
| 35,133 | | |
| 41,786 | |
| Investment in equity investees | |
| - | | |
| 11,790 | |
| Property, equipment and software, net | |
| 44,028 | | |
| 27,388 | |
| Intangible asset | |
| 689 | | |
| 583 | |
| Operating lease right-of-use assets | |
| 2,880 | | |
| 2,090 | |
| Deferred tax assets | |
| 191 | | |
| 197 | |
| Other non-current assets | |
| 489 | | |
| 3,835 | |
| Non-current financial investment | |
| 2,845 | | |
| 1,000 | |
| Total non-current assets | |
| 169,594 | | |
| 135,688 | |
| Total assets | |
| 602,884 | | |
| 446,240 | |
| LIABILITIES, AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Current portion of long-term loans | |
| 28,515 | | |
| 23,888 | |
| Accounts payable | |
| 25,600 | | |
| 15,455 | |
| Contract liabilities | |
| 9,317 | | |
| 4,107 | |
| Income tax payable | |
| 11,403 | | |
| 11,832 | |
| Accrued liabilities and other current liabilities | |
| 54,548 | | |
| 51,986 | |
| Operating lease liabilities, current | |
| 1,706 | | |
| 1,228 | |
| Total current liabilities | |
| 131,089 | | |
| 108,496 | |
| Non-current liabilities: | |
| | | |
| | |
| Long-term loans | |
| 23,731 | | |
| 34,901 | |
| Operating lease liabilities, non-current | |
| 948 | | |
| 481 | |
| Deferred tax liability | |
| 117 | | |
| 99 | |
| Other non-current liabilities | |
| 9,631 | | |
| 9,557 | |
| Total liabilities | |
| 165,516 | | |
| 153,534 | |
| Shareholders’ equity: | |
| | | |
| | |
| Class A Ordinary shares (US$0.00000005 par value; 999,643,050,556 authorized, 10,431,482,973 and 11,237,922,873 shares issued, 9,703,445,043 and 10,557,490,218 shares outstanding as of December 31, 2025 and June 30, 2026, respectively) | |
| 1 | | |
| 1 | |
| Class B Ordinary shares (US$0.00000005 par value; 356,624,444 shares authorized, 311,624,444 shares issued and outstanding as of December 31, 2025 and June 30, 2026) | |
| - | | |
| - | |
| Treasury stocks (US$0.00000005 par value; 366,981,615 and 342,319,770 shares as of December 31, 2025 and June 30, 2026, respectively) | |
| (37,172 | ) | |
| (20,255 | ) |
| Additional paid-in capital | |
| 1,177,057 | | |
| 1,192,812 | |
| Statutory reserves | |
| 14,892 | | |
| 14,892 | |
| Accumulated other comprehensive loss | |
| (56,653 | ) | |
| (47,632 | ) |
| Accumulated deficit | |
| (660,757 | ) | |
| (847,112 | ) |
| Total shareholders’ equity | |
| 437,368 | | |
| 292,706 | |
| Total liabilities and shareholders’ equity | |
| 602,884 | | |
| 446,240 | |
CANAAN INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE LOSS
(all amounts in thousands of USD, except share
and per share data, or as otherwise noted)
| | |
For the Three Months Ended | |
| | |
June 30,
2025 | | |
March 31,
2026 | | |
June 30,
2026 | |
| | |
USD | | |
USD | | |
USD | |
| Revenues | |
| | |
| | |
| |
| Products revenue | |
| 71,923 | | |
| 42,863 | | |
| 13,630 | |
| Mining revenue | |
| 28,072 | | |
| 19,124 | | |
| 17,657 | |
| Other revenues | |
| 214 | | |
| 706 | | |
| 575 | |
| Total revenues | |
| 100,209 | | |
| 62,693 | | |
| 31,862 | |
| Cost of revenues | |
| | | |
| | | |
| | |
| Product cost | |
| (58,759 | ) | |
| (62,365 | ) | |
| (40,277 | ) |
| Mining cost | |
| (31,995 | ) | |
| (22,677 | ) | |
| (20,388 | ) |
| Other cost | |
| (149 | ) | |
| (557 | ) | |
| (530 | ) |
| Total cost of revenues | |
| (90,903 | ) | |
| (85,599 | ) | |
| (61,195 | ) |
| Gross profit (loss) | |
| 9,306 | | |
| (22,906 | ) | |
| (29,333 | ) |
| Operating expenses: | |
| | | |
| | | |
| | |
| Research and development expenses | |
| (16,406 | ) | |
| (15,390 | ) | |
| (14,865 | ) |
| Sales and marketing expenses | |
| (4,472 | ) | |
| (1,195 | ) | |
| (1,909 | ) |
| General and administrative expenses | |
| (16,361 | ) | |
| (15,020 | ) | |
| (15,080 | ) |
| Impairment on property and equipment | |
| - | | |
| - | | |
| (9,220 | ) |
| Gain on disposal of property, equipment and software | |
| 863 | | |
| 197 | | |
| 950 | |
| Total operating expenses | |
| (36,376 | ) | |
| (31,408 | ) | |
| (40,124 | ) |
| Loss from operations | |
| (27,070 | ) | |
| (54,314 | ) | |
| (69,457 | ) |
| Interest expense, net | |
| (309 | ) | |
| (779 | ) | |
| (492 | ) |
| Change in fair value of cryptocurrency | |
| 10,576 | | |
| (24,913 | ) | |
| (9,298 | ) |
| Change in fair value of financial instruments other than derivatives | |
| (17,485 | ) | |
| - | | |
| - | |
| Change in fair value of financial derivatives | |
| 23,440 | | |
| (15,974 | ) | |
| (8,908 | ) |
| Foreign exchange gains (losses), net | |
| 338 | | |
| (3,997 | ) | |
| (3,040 | ) |
| Other income (loss), net | |
| 225 | | |
| 11,198 | | |
| (1,002 | ) |
| Loss before income tax expenses | |
| (10,285 | ) | |
| (88,779 | ) | |
| (92,197 | ) |
| Income tax expense | |
| (773 | ) | |
| (190 | ) | |
| (1,263 | ) |
| Equity in gains (losses) of equity investees | |
| - | | |
| 221 | | |
| (4,147 | ) |
| Net loss | |
| (11,058 | ) | |
| (88,748 | ) | |
| (97,607 | ) |
| Foreign currency translation adjustment, net of nil tax | |
| 1,376 | | |
| 5,182 | | |
| 3,839 | |
| Total comprehensive loss | |
| (9,682 | ) | |
| (83,566 | ) | |
| (93,768 | ) |
| Weighted average number of shares used in per share calculation: | |
| | | |
| | | |
| | |
| — Basic | |
| 5,994,860,758 | | |
| 10,371,318,890 | | |
| 10,847,269,108 | |
| — Diluted | |
| 5,994,860,758 | | |
| 10,371,318,890 | | |
| 10,847,269,108 | |
| Net loss per share (cent per share) | |
| | | |
| | | |
| | |
| — Basic | |
| (0.18 | ) | |
| (0.86 | ) | |
| (0.90 | ) |
| — Diluted | |
| (0.18 | ) | |
| (0.86 | ) | |
| (0.90 | ) |
Share-based
compensation expenses were included in: | |
| | | |
| | | |
| | |
| Cost of revenues | |
| 80 | | |
| 89 | | |
| 86 | |
| Research and development expenses | |
| 1,363 | | |
| 668 | | |
| 620 | |
| Sales and marketing expenses | |
| 59 | | |
| 43 | | |
| 29 | |
| General and administrative expenses | |
| 4,670 | | |
| 3,815 | | |
| 3,808 | |
The table below sets forth a reconciliation of
net loss to non-GAAP adjusted EBITDA for the period indicated:
| | |
For the Three Months Ended | |
| | |
June 30,
2025 | | |
March 31,
2026 | | |
June 30,
2026 | |
| | |
USD | | |
USD | | |
USD | |
| Net loss | |
| (11,058 | ) | |
| (88,748 | ) | |
| (97,607 | ) |
| Income tax expense | |
| 773 | | |
| 190 | | |
| 1,263 | |
| Interest expense, net | |
| 309 | | |
| 779 | | |
| 492 | |
| EBIT | |
| (9,976 | ) | |
| (87,779 | ) | |
| (95,852 | ) |
| Depreciation and amortization expenses | |
| 11,657 | | |
| 6,816 | | |
| 7,193 | |
| EBITDA | |
| 1,681 | | |
| (80,963 | ) | |
| (88,659 | ) |
| Share-based compensation expenses | |
| 6,172 | | |
| 4,615 | | |
| 4,543 | |
| Impairment on property, equipment and software | |
| - | | |
| - | | |
| 9,220 | |
| Change in fair value of financial instruments other than derivatives | |
| 17,485 | | |
| - | | |
| - | |
| Non-GAAP adjusted EBITDA | |
| 25,338 | | |
| (76,348 | ) | |
| (74,896 | ) |
