Company: ABTS
Filing Date: 2025-05-30
Form Type: F-3/A
Source: 0001641172-25-013026
Chunk: 24

Company: Abits Group Inc
Filing Date: 2025-05-30
Form: F-3/A
Chunk 24
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 reserves of approximately RMB1.0 million, sufficient for its own use for the foreseeable future. It does not rely on any funding from Abits, the public holding company, or from any of other subsidiary companies. Bitmatrix’s expenses are solely in Renminbi.

Abit USA, the subsidiary conducting our principal business operations in the prior three fiscal years, finances not only its own operating expenses in the U.S., but also settles the corporate expenses of the holding company, Abits, and the limited corporate expenses of Abit Hong Kong, both of which have no operations of their own. These advances were treated as inter-company loans which are non-interest bearing and have no fixed terms of repayment. Abit USA derives its funds from the sale of bitcoins generated from its bitcoin mining operations.

Abit USA’s inter-company loans for each of the three years ended December 31, 2024 were as follows:

|                                 |     | Year ended December 31 |      2024 |     |     |    2023 |     |     |     2022 |
|:--------------------------------|:----|:-----------------------|----------:|:----|:----|--------:|:----|:----|---------:|
| Amount due from Abits Group Inc |     |                        | 1,241,125 |     |     | 590,188 |     |     | -550,933 |
| Amount due from Abit Hong Kong  |     |                        |   880,841 |     |     | 283,058 |     |     |        - |

Please refer to the Company’s audited consolidated financial statements for more information.

In general, as a holding company, Abits may rely on dividends or payments from its subsidiaries to fund its cash and financing requirements, including funds necessary to pay dividends or other distributions to our shareholders and investors, to pay any debts we may incur, and to pay operating expenses.

Our U.S. subsidiaries may provide dividend or other distributions to us through our Hong Kong subsidiary. According to Companies Ordinance (Cap.622 of the Laws of Hong Kong), our Hong Kong subsidiary is permitted under Hong Kong law to provide funding to us through dividend distributions out of profits available for distribution. If our subsidiaries incur debt on their own behalf, the instruments governing the debt may restrict their ability to pay dividends or make other distributions to us. Our PRC subsidiary’s only function is to provide administrative support to us and other subsidiaries, and it does not generate revenue and is not expected