AirNet(US:ANTE)2025-09-18 10:43Financial Performance - Total revenues for the six months ended June 30, 2025, were $12,764,000, compared to $0 for the same period in 2024[4]. - Gross profit for the six months ended June 30, 2025, was $61,000, with total operating expenses of $2,016,000, resulting in a loss from continuing operations of $1,955,000[4]. - Net income attributable to AirNet Technology Inc. for the six months ended June 30, 2024, was $19,895,000, while for the same period in 2025, the company reported a net loss of $1,998,000[4]. - For the six months ended June 30, 2024, the net loss from continuing operations was $338,000, compared to a net loss of $1,956,000 for the same period in 2025, indicating a significant improvement[8]. - Cash flows from operating activities showed a net cash used in continuing operating activities of $4,266,000 for 2024, which increased to $7,068,000 in 2025[8]. - The Group experienced an operating loss of $1,995 thousand for the six months ended June 30, 2025[34]. Assets and Liabilities - Total assets decreased from $66,341,000 as of June 30, 2025, to $60,220,000 as of December 31, 2024[2]. - Current liabilities for the six months ended June 30, 2025, were $80,199,000, compared to $78,595,000 as of December 31, 2024[2]. - Shareholders' equity increased from $10,927,000 as of December 31, 2024, to $15,343,000 as of June 30, 2025[2]. - Total liabilities decreased from $83,928,000 as of June 30, 2025, to $82,226,000 as of December 31, 2024[2]. - The Group reported a negative working capital of $56,066 thousand as of June 30, 2025, raising substantial doubt about its ability to continue as a going concern[34]. - Total liabilities increased from $81,876 thousand as of December 31, 2024, to $82,830 thousand as of June 30, 2025[32]. Discontinued Operations - For the six months ended June 30, 2025, the net income (loss) from discontinued operations was $(39) thousand, compared to a net income of $21,683 thousand for the same period in 2024[32]. - The Group reported net cash provided by discontinued operating activities decreased significantly from $6,575 thousand in 2024 to $622 thousand in 2025[32]. - Total operating expenses for discontinued operations were $2,012,000 for the six months ended June 30, 2024, compared to $1,269,000 for the same period in 2025[99]. - As of June 30, 2025, total assets of discontinued operations were $31,826,000, with total liabilities of $82,830,000, resulting in net assets of $(51,004,000)[99]. Cryptocurrency Mining Operations - The company resumed its cryptocurrency mining business on January 1, 2025, through a newly established subsidiary, Robust Achievement Limited[12]. - The Group's mining revenue is calculated based on the amount of bitcoin mined multiplied by the market closing price, with hosting and maintenance fees deducted from total monthly revenue[65]. - The Group's contracts with mining pool operators involve providing computing power as the sole performance obligation, with revenue recognized upon successful block placement by the operator[66]. - For the six months ended June 30, 2025, the cryptocurrency mining segment generated revenues of $12,764, while the air travel media network segment reported revenues of $104[131]. - The segment net loss for the cryptocurrency mining segment was $1,956, while the air travel media network segment incurred a net loss of $39 for the same period[131]. Shareholder Agreements and Equity - The total amount of loans permitted under agreements with shareholders of AirNet Online is RMB 50,000, interest-free, with a term of ten years[26]. - The call option agreements allow Chuangyi Technology to purchase equity interests in VIEs for the minimum amount permitted by PRC law, with a term of ten years[23]. - The Group consolidates the VIEs as it believes it can direct their activities and receive substantial economic benefits through contractual arrangements[25]. - The technology development agreements are effective for ten years and automatically renew unless either party notifies the other of non-extension at least twenty days prior to expiration[21]. - The Company entered into a share purchase agreement on August 22, 2025, to issue 80,826,225 ordinary shares at a combined purchase price of $2.227 per share, with gross proceeds of approximately $180 million[138]. Regulatory and Compliance - The Group's financial statements are prepared in accordance with U.S. GAAP and include all normal and recurring adjustments necessary for fair presentation[33]. - The Group's ability to continue as a going concern depends on management's successful execution of its business plan and potential financing support from shareholders[35]. - The Group's cryptocurrencies are accounted for as intangible assets with indefinite useful lives and are assessed for impairment annually[54]. - The Group's financial instruments expose it to concentrations of credit risk primarily through cash and cash equivalents and USDT, with measures in place to minimize theft or loss[82]. Corporate Changes - The Company changed its name from "AirNet Technology Inc." to "Yueda Digital Holding" on September 3, 2025[140]. - The Company has no plans to pay dividends in the foreseeable future, considering the dividend yield to be zero[122]. - The Company approved a new 2025 Equity Incentive Plan, authorizing the delivery of 4,679,322 restricted shares to eligible individuals[141].