BTCS Inc (OTCMKTS:BTCS), formerly Bitcoin Shop, Inc., a Nevada-based corporation with operations in the blockchain and digital currency ecosystems, has just revealed its financial results for the second quarter and first half of 2015, with data pointing to a risk that the company may not be able to continue sustaining its operations.
The company suffered net losses in the second quarter and first half of 2015, mainly due to administrative and general expenses.
Let’s take a look at the particular metrics:
- Net loss for the quarter to June 30, 2015, was $1.25 million, marking a decrease from the net loss of $2.57 million registered in the equivalent period in 2014. Net loss for the first half of 2015 (the six months to June 30, 2015) was $4.6 million, widening the net loss of $4.02 million registered in the same period in 2014.
- Total revenues for the second quarter totaled $144,375, markedly up from $4,912 registered in the second quarter of 2014, reflecting growth in transaction verification business. Total revenues for the first half of 2015 were 182,043, up from $130,180 recorded in the same period in 2014.
- Operating expenses totaled $2.05 million in the second quarter of 2015 and $3.91 million in the first half of 2015.
BTCS had cash of $0.3 million and a working capital deficiency of approximately $3.3 million at June 30, 2015. It expects to continue to incur losses into the foreseeable future as it undertakes its efforts to execute its business plans. The company warned its existing liquidity is not sufficient to fund its operations and anticipated capital expenditures for the foreseeable future.
Because of recurring operating losses, net operating cash flow deficits, and an accumulated deficit, there is substantial doubt about the Company’s ability to continue as a going concern.
To view BTCS’ filing with SEC about its financial results for the second quarter and first half of 2015, click here.