BTCS(US:BTCS)2023-08-10 16:00Financial Performance - Total revenues for the three months ended June 30, 2023, were $385,753, a decrease of 25% compared to $514,349 for the same period in 2022[37] - Validator revenue (net of fees) for the six months ended June 30, 2023, was $697,261, down 35% from $1,077,364 in the same period of 2022[37] - The net loss for the three months ended June 30, 2023, was $1,018,453, compared to a net loss of $7,724,673 for the same period in 2022[37] - Operating expenses for the three months ended June 30, 2023, totaled $1,433,094, significantly reduced from $9,855,122 in the same period of 2022[37] - The company recorded impairment losses on crypto assets of approximately $784,602 for the three months ended June 30, 2023, compared to $8,894,797 in the same period of 2022[37] - The company reported a gross profit of $272,141 for the three months ended June 30, 2023, compared to $420,449 for the same period in 2022[37] - The company recorded impairment losses related to crypto assets of approximately $0.9 million during the six months ended June 30, 2023, compared to $12.2 million in the same period of 2022, indicating a significant reduction in losses year-over-year[74] Shareholder Equity and Stock Information - The weighted average number of common shares outstanding for the three months ended June 30, 2023, was 13,873,331, an increase from 12,644,719 in the same period of 2022[37] - The company’s total stockholders' equity as of June 30, 2023, was significantly impacted by accumulated deficits totaling $(141,330,213)[39] - The total stockholders' equity as of June 30, 2023, was $8,615,295, down from $9,331,163 as of December 31, 2022[115] - The Company sold a total of 651,172 shares of Common Stock under the ATM Agreement for gross proceeds of approximately $965,000 at an average selling price of $1.48 per share during the six months ended June 30, 2023[96] - The Company issued 59,223 shares of common stock to independent directors during the six months ended June 30, 2023[108] - The total number of warrants to purchase common stock decreased from 945,837 in 2022 to 712,500 in 2023, indicating a reduction in outstanding warrants[62] Cash and Liquidity - As of June 30, 2023, the Company had approximately $0.9 million in cash, down from $2.1 million as of December 31, 2022, reflecting a decrease in liquidity[72] - The company had approximately $0.3 million in excess of the FDIC insured limit as of June 30, 2023[44] - The company has approximately $0.3 million and $1.7 million in excess of the FDIC insured limit as of June 30, 2023, and December 31, 2022, respectively[44] Expenses and Cost Management - Validator expenses for the three months ended June 30, 2023, were $113,612, an increase of 21% from $93,900 in the same period of 2022[37] - Research and development expenses for the three months ended June 30, 2023, were $180,903, slightly down from $185,004 in the same period of 2022[37] - General and administrative expenses for the three months ended June 30, 2023, were $617,569, an increase of 21% from $512,051 in the same period of 2022[37] - Advertising and marketing expenses amounted to approximately $9,000 for the six months ended June 30, 2023, compared to $65,000 for the same period in 2022[126] Future Plans and Market Position - The company plans to expand its PoS operations to secure other disruptive blockchain protocols, which is critical for user base growth and success[42] - The company's future success is dependent on the growth of the crypto asset market and the adoption of blockchain technology[70] Risk Factors - The Company is subject to various risks, including the volatility of crypto asset prices and the evolving regulatory landscape for crypto assets, which may impact future performance[70] Stock Options and Warrants - The Company granted 20,000 stock options with a weighted average exercise price of $0.63 during the six months ended June 30, 2023[112] - The company’s total stock options and warrants outstanding decreased from 3,825,035 in 2022 to 3,478,899 in 2023[62] Dividends - The Company declared a non-recurring special dividend of $0.05 per share on January 5, 2022, with dividend distributions amounting to $635,000 during the six months ended June 30, 2022, but $0 during the same period in 2023[60] - The Company has not historically paid dividends on its Common Stock and does not expect to pay recurring dividends in the future[105] - The company will evaluate the appropriateness of potential future dividends as it continues to grow its operations[97] Accounting and Valuation - The Company accounts for its crypto assets as indefinite-lived intangible assets, assessed for impairment annually[133] - The company measures certain assets and liabilities at fair value, with Level 3 investments carried at an original cost of $100,000 as of June 30, 2023[90] - The company’s crypto assets are recorded at fair value upon receipt and are subject to impairment losses if their fair value falls below carrying value[49] - The fair value of warrant liabilities was recorded at $356,250 as of June 30, 2023, reflecting the Company's reclassification of these instruments from equity to liabilities[88] - The risk-free interest rate for the Company's warrant liabilities increased to 4.49% as of June 30, 2023, up from 3.99% as of December 31, 2022[105] - The expected volatility for the company's warrants was 144.6% as of June 30, 2023, down from 152.8% as of December 31, 2022[105]