Athena Bitcoin Global : Q2 2022 Consolidated Financial Statements (Unaudited)

Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets

1

Condensed Consolidated Statements of Operations and Comprehensive Income

3

Condensed Consolidated Statements of Cash Flows

4

Condensed Consolidated Statements of Shareholders' Deficit

5

Notes to Consolidated Financial Statements

6

June 30,

December 31,

2022

2021

(in thousands)

Assets

Current assets:

Cash and cash equivalents

$

997

$

1,174

Restricted cash held for customers

5,283

3,671

Accounts receivable

3,774

1,531

Other advances

1,595

845

Prepaid expenses and other current assets

1,224

727

Total current assets

12,873

7,948

Crypto assets held

738

842

Property and equipment, net

2,974

2,903

Leased assets

3,006

2,318

Other noncurrent assets

1,799

990

Total assets

$

21,390

$

15,001

Liabilities and Shareholders' deficit

Current liabilities:

Accounts payable and accrued expenses

$

1,615

$

1,044

Accounts payable, related party

407

407

Liability for cash held for customers

9,989

3,671

Advances for revenue contract

3,500

3,500

Leased liabilities

818

624

Income tax payable

1,100

14

Long-term debt, current portion

1,703

1,959

Short-term debt

34

75

Related party note payable, current portion

90

90

Other current liabilities

620

615

Total current liabilities

19,876

11,999

June 30,

December 31,

2022

2021

(in thousands, except number of shares)

Long-term liabilities:

Long-term debt

$

868

$

1,117

Lease liabilities

2,188

1,694

Related party convertible debt

3,000

3,000

Convertible debt

1,520

4,765

Total liabilities

27,452

22,575

Commitments and contingencies (Note 15)

Shareholders' deficit:

Common shares, $0.001 par value 4,409,605,000 shares authorized; 4,094,459,545 and

4,049,392,879 shares issued and outstanding as of June 30, 2022 and December 31,

2021, respectively

4,095

4,050

Loans to employees for options exercised

(984)

(977)

Net common stock

3,111

3,073

Additional paid in capital

8,446

5,246

Accumulated deficit

(17,465)

(15,716)

Accumulated other comprehensive loss

(154)

(177)

Total shareholders' deficit

(6,062)

(7,574)

Total liabilities and shareholders' deficit

$

21,390

$

15,001

For the three months ended

For the six months ended

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

(in thousands, except number of shares)

Revenues

$

20,620

$

18,606

$

39,701

$

43,509

Cost of revenues

18,720

17,652

35,371

39,780

Gross profit

1,900

954

4,330

3,729

Operating expenses:

Technology and development

220

25

423

52

General and administrative

1,594

751

3,542

1,439

Sales and marketing

147

90

352

182

Theft of bitcoin

-

-

-

1,600

Other operating expense

7

-

15

-

Total operating expenses

1,968

866

4,332

3,273

Income (loss) from operations

(68)

88

(2)

456

Fair value adjustment on crypto asset borrowing

derivatives

-

(692)

-

195

Interest expense

161

129

362

299

Fees on borrowings

16

82

67

192

Other expense

66

15

148

11

Income (loss) before income taxes

(311)

554

(579)

(241)

Income tax expense (benefit)

494

170

1,170

(7)

Net income (loss)

$

(805)

$

384

$

(1,749)

$

(234)

Basic (loss) earnings per share

$

(0.00020)

$

0.00009

$

(0.00043)

$

(0.00006)

Diluted (loss) earnings per share

$

(0.00020)

$

0.00009

$

(0.00043)

$

(0.00006)

Weighted average shares outstanding - Basic

4,077,207,308

4,049,392,879

4,077,207,308

4,049,392,879

Weighted average shares outstanding - Diluted

4,077,207,308

4,049,392,879

4,077,207,308

4,049,392,879

Comprehensive loss

Net income (loss)

$

(805)

$

384

$

(1,749)

$

(234)

Foreign currency translation adjustment

16

(50)

23

(56)

Comprehensive income (loss)

$

(789)

$

334

$

(1,726)

$

(290)