UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2024
Commission File Number: 001-39127
Canaan Inc.
28 Ayer Rajah Crescent
#06-08
Singapore 139959
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F
x Form 40-F
¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
EXPLANATORY NOTE
On May 17, 2024, Canaan Inc. issued a press
release announcing its financial results for the first quarter ended March 31, 2024. A copy of the press release is furnished herewith
as Exhibit 99.1 to this Report on Form 6-K and is incorporated by reference herein.
Exhibit 99.1 to this Form 6-K shall
be deemed to be filed with the Securities and Exchange Commission and incorporated by reference into the Company’s registration
statement on Form F-3 (File No. 333-278762), and shall be a part thereof, to the extent not superseded by documents or reports
subsequently filed or furnished.
Exhibit Index
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
| |
Canaan Inc. |
| |
| |
By: |
/s/
Nangeng Zhang |
| |
Name: |
Nangeng Zhang |
| |
Title: |
Chairman and Chief Executive Officer |
Date: May 17, 2024
Exhibit 99.1
Canaan Inc. Reports Unaudited First Quarter
2024 Financial Results
Singapore, May 17, 2024 /PRNewswire/ -- Canaan
Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), a leading high-performance computing solutions provider, today
announced its unaudited financial results for the three months ended March 31, 2024.
First Quarter 2024 Operating and Financial
Highlights
Revenues were US$35.1 million, which beat
the previous guidance of US$33 million by 6%.
Mining revenue was US$10.5 million, representing
a sequential increase of 182.1%.
The number of Bitcoins held by the Company
surpassed 1,000 for the first time to reach record-high 1,057 Bitcoins.
Net loss was US$39.4 million, narrowed
71.7% sequentially and 53.3% year-over-year.
Mr. Nangeng Zhang, Chairman and Chief Executive
Officer of Canaan, commented, “As we navigate through the last full quarter before the Bitcoin halving, Canaan has demonstrated
resilience and strategic foresight. Despite the traditional slow season in the first quarter of 2024, we successfully delivered 3.4 million
Thash/s of computing power sold while driving our mining revenue to an impressive US$10.5 million, a significant sequential growth of
182.1%. Our total revenue for the quarter reached US$35 million, surpassing our previous forecasts. This topline performance is underpinned
by relentless sales efforts and the optimization of our mining operations. Furthermore, the introduction of our new A1566 mining machines
and the continued demand for our A14 series post the halving underscore our consistent capabilities in product innovation and market responsiveness.”
“The industry has witnessed several positive
developments early this year, such as the approval of Bitcoin spot ETFs in the U.S. and Hong Kong markets, a record high Bitcoin price,
and the seamless completion of the fourth Bitcoin halving. These milestones herald the beginning of a new bullish cycle for Bitcoin, attracting
a larger base of participants and fostering a more concrete consensus within the industry. With the upcoming mass deliveries of our A14
series and the launch of the A1566 Avalon Miner, Canaan is well-prepared to capitalize on these emerging opportunities. We remain committed
to enhancing our technology and offering advanced mining solutions that meet the evolving needs of our clients, ensuring that Canaan continues
to be a pivotal player in the blockchain ecosystem.”
Mr. James Jin Cheng, Chief Financial Officer
of Canaan, stated, “In the first quarter of 2024, we anticipated a quiet season but were proactive in propelling our market approach
to meet various computing power needs. This strategy enabled us to exceed our revenue expectations and nearly double our customer advances
from the end of 2023. These advances are poised to translate into future revenues in Q2 and Q3 this year as we ramp up the mass delivery
of our A14 series products since April. Additionally, our balance sheet has been fortified with a record holding of 1,057 bitcoins, benefiting
from our resumed self-mining operations. With the adoption of new accounting standards in 2024, we now reflect the fair value of our crypto
assets, enhancing our financial transparency and balance sheet strength under increased bitcoin prices.”
“Financially, we have strategically invested
in locking wafer supply capacities for mass production, which is reflected by the substantial increase in our prepayments to our foundry
partner. Furthermore, our stringent expense control measures continued to yield financial benefits in the first quarter. In spite of inventory
write-downs as a result of the continued destocking campaign, our net loss prominently narrowed year over year and sequentially during
the first quarter. With the Bitcoin halving now behind us, we anticipate a renewed interest in mining hardware upgrades and expansions.
We are well-prepared to meet this upcoming demand surge, having strategically strengthened our supply chain to fulfill our customers’
success in the mining landscape.”
First Quarter 2024 Financial Results
Revenues in the first quarter of 2024 were
US$35.1 million, as compared to US$49.1 million in the fourth quarter of 2023 and US$55.2 million in the same period of 2023. Total revenues
consisted of US$23.4 million in products revenue, US$10.5 million in mining revenue and US$1.2 million in other revenues.
Products revenue in the first quarter of
2024 was US$23.4 million, compared to US$44.9 million in the fourth quarter of 2023 and US$44.1 million in the same period of 2023. The
decreases compared to the fourth quarter of 2023 and the first quarter of 2023 were mainly due to the decrease in total computing power
sold and average selling price resulting from the softened demand before the halving event, despite a gradual recovery in the price of
bitcoin. AI product revenue was US$0.1 million in the first quarter of 2024.
Mining revenue in the first quarter of
2024 was US$10.5 million, representing an increase of 182.1% from US$3.7 million in the fourth quarter of 2023 and a decrease of 5.7%
from US$11.1 million in the same period of 2023. The sequential increase was mainly driven by the recovery of the bitcoin price and the
resumed mining computing power in Kazakhstan. The year-over-year decrease was due to the deployment change.
Cost of revenues in the first quarter of
2024 was US$72.4 million, compared to US$103.1 million in the fourth quarter of 2023 and US$102.8 million in the same period of 2023.
Products costs in the first quarter of
2024 were US$59.8 million, compared to US$95.8 million in the fourth quarter of 2023 and US$75.4 million in the same period of 2023. The
sequential and year-over-year decreases were consistent with the decrease of computing power sold. The inventory write-down, prepayment
write-down and provision for inventory purchase commitments accrued for this quarter was US$47.5 million, compared to US$55.5 million
for the fourth quarter of 2023 and US$34.9 million for the same period of 2023. Products costs consist of direct production costs of mining
machines and AI products and indirect costs related to production, as well as inventory write-down, prepayment write-down and provision
for inventory purchase commitments.
Mining costs in the first quarter of 2024
were US$12.2 million, compared to US$6.0 million in the fourth quarter of 2023 and US$27.3 million in the same period of 2023. Mining
costs herein consist of direct production costs of mining operations, including electricity and hosting, as well as depreciation of deployed
mining machines. The sequential increase was mainly due to the increased electricity cost, which was driven by the increase in energized
mining computing power. The year-over-year decrease was mainly due to the decreased depreciation, which was driven by the end of the depreciation
period of early deployed mining machines and the impairment of the currently deployed mining machines. The depreciation in this quarter
for deployed mining machines was US$5.2 million, compared to US$3.8 million in the fourth quarter of 2023 and US$16.3 million in the same
period of 2023.
Gross loss in the first quarter of 2024
was US$37.3 million, compared to US$54.1 million in the fourth quarter of 2023 and US$47.5 million in the same period of 2023.
Total operating expenses in the first quarter
of 2024 were US$30.7 million, compared to US$39.2 million in the fourth quarter of 2023 and US$38.1 million in the same period of 2023.
Research and development expenses in the
first quarter of 2024 were US$15.3 million, compared to US$10.8 million in the fourth quarter of 2023 and US$19.1 million in the
same period of 2023. The sequential change of US$4.6 million was mainly due to the change of staff cost and research and development
expenditure, totalled US$5.1 million，offset by a decrease of
US$0.5 million in depreciation. The year-over-year decreases were mainly due to a decrease of US$3.8 million in staff costs.
Research and development expenses in the first quarter of 2024 also included share-based compensation expenses of US$1.9
million.
Sales and marketing expenses in the first quarter
of 2024 were US$1.1 million, compared to US$1.8 million in the fourth quarter of 2023 and US$1.5 million in the same period of 2023. The
sequential decrease was mainly due to a decrease of US$0.4 million in staff costs and a decrease of US$0.3 million in promotion expenses.
The year-over-year decrease was mainly due to a decrease of US$0.8 million in staff costs, offset by an increase of US$0.2 million in
share-based compensation expenses. Sales and marketing expenses in the first quarter of 2024 also included share-based compensation expenses
of US$43 thousand.
General and administrative expenses in the first
quarter of 2024 were US$14.3 million, compared to US$20.2 million in the fourth quarter of 2023 and US$17.6 million in the same period
of 2023. The sequential decrease was mainly due to a decrease of US$4.9 million in staff cost, a decrease of US$0.7 million in share-based
compensation expenses and a decrease of US$0.7 million in professional service fees. The year-over-year decrease was mainly due to a decrease
of US$4.4 million in share-based compensation expenses. General and administrative expenses in the first quarter of 2024 also included
share-based compensation expenses of US$5.9 million.
Impairment on property, equipment and software
in the first quarter of 2024 was nil, compared to US$6.3 million in the fourth quarter of 2023 and nil in the same period of 2023.
Loss from operations in the first quarter
of 2024 was US$68.0 million, compared to US$93.3 million in the fourth quarter of 2023 and US$85.7 million in the same period of 2023.
Excess of fair value of Series A Convertible
Preferred Shares in the first quarter of 2024 was US$0.4 million, which was insurance cost related to the second tranche of Preferred
Shares, compared to US$59.2 million in the fourth quarter of 2023 and nil in the same period of 2023. For further information, please
refer to “Preferred Shares Financing” in this press release.
Change in fair value of cryptocurrency in
the first quarter of 2024 was an unrealized gain of US$33.6 million, compared to nil in the fourth quarter of 2023 and nil in the same
period of 2023. The unrealized gain of change in fair value of cryptocurrency was driven by the bitcoin price, which increased from approximately
US$42,400 on January 1, 2024 to approximately US$70,400 on March 31, 2024. For further information, please refer to “Early
Adoption of FASB’s New Accounting Rules for Crypto Assets Since January 1, 2024”.
Foreign exchange losses, net in the first
quarter of 2024 were US$1.8 million, compared with a gain of US$1.4 million in the fourth quarter of 2023 and a loss of US$2.6 million
in the same period of 2023, respectively. The foreign exchange losses were due to the U.S. dollar depreciation against the Renminbi during
the first quarter of 2024.
Net loss in the first quarter of 2024 was
US$39.4 million, compared to US$139.0 million in the fourth quarter of 2023 and US$84.4 million in the same period of 2023.
Non-GAAP adjusted EBITDA in the first quarter
of 2024 was a loss of US$26.0 million, as compared to a loss of US$69.4 million in the fourth quarter of 2023 and a loss of US$57.5 million
in the same period of 2023. Non-GAAP adjusted EBITDA is a financial measure defined as EBITDA adjusted to eliminate the effects of certain
non-cash and/or non-recurring items that do not reflect our ongoing operations. For further information, please refer to “Use of
Non-GAAP Financial Measures” in this press release.
Foreign currency translation adjustment, net
of nil tax, in the first quarter of 2024 was a loss of US$5.0 million, compared with a loss of US$0.3 million in the fourth quarter
of 2023 and a gain of US$9.2 million in the same period of 2023, respectively.
Basic and diluted net loss per American depositary
share (“ADS”) in the first quarter of 2024 were US$0.16. In comparison, basic and diluted net loss per ADS in the fourth
quarter of 2023 were US$0.77, while basic and diluted net loss per ADS in the same period of 2023 were US$0.51. Each ADS represents 15
of the Company’s Class A ordinary shares.
As of March 31, 2024, the Company held cryptocurrency
assets that primarily comprised 1,271.7 bitcoins with a total fair value of US$90.2 million, which consisted of 1,057.4 bitcoins owned
by the Company and 214.3 bitcoins received as customer deposits. For further information, please refer to “Early Adoption of FASB’s
New Accounting Rules for Crypto Assets Since January 1, 2024”.
As of March 31, 2024, the Company had cash
of US$54.7 million, compared to US$96.2 million as of December 31, 2023.
Accounts receivable, net as of March 31,
2024 was US$1.6 million, compared to US$3.0 million as of December 31, 2023. Accounts receivable was mainly due to an installment
policy implemented for some major customers who meet certain conditions.
Contract liability as of March 31,
2024 was US$38.9 million, compared to US$19.6 million as of December 31, 2023.
Shares Outstanding
As of March 31, 2024, the Company had a total
of 263,746,289 ADSs outstanding, each representing 15 of the Company’s Class A ordinary shares.
Recent Developments
Proposed Share Purchase by Management
On April 22, 2024, the Company announced
that Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, and Mr. James Jin Cheng, Chief Financial Officer of
Canaan, informed the Company of their intention to use their personal funds to jointly purchase no less than US$2 million of the Company’s
Class A ordinary shares represented by American depositary shares (“ADSs”), each ADS representing 15 of the Company’s
Class A ordinary shares, subject to the Company’s insider trading policy during open-window periods and in compliance with
legal guidelines.
Bitcoin Mining Operations
As of May 16, 2024, the Company had 11 active
mining projects globally, with a total of 4.0 Exahash/s installed and 3.0 Exahash/s energized computing power. The energized computing
power has increased by 58% compared to the end of the fourth quarter of 2023, mainly due to the re-energization of some machines in Kazakhstan
and the energization of machines in other projects. The Company reallocated about 1.0 Exahash/s of previously deployed mining machines
in Kazakhstan for customer orders as an adjustment to its mining operations.
Preferred Shares Financing
On November 27, 2023, the Company entered
into a Securities Purchase Agreement with an institutional investor (the “Buyer”), pursuant to which the Company shall
issue and sell to the Buyer up to 125,000 Series A Convertible Preferred Shares (the “Preferred Shares”) at the
price of US$1,000.00 for each Preferred Share.
On December 11, 2023, the Company closed
the first tranche of the preferred shares financing (the “First Tranche Preferred Shares Financing”) and is obligate
to issue the second tranche of the preferred shares financing (the “Forward Purchase Liabilities”), raising total net
proceeds of $25.4 million. Pursuant to the First Tranches Preferred Shares Financing, the Company issued 25,000 Preferred Shares in total
at the price of US$1,000.00 per Preferred Share.
In connection with the issuance of the Preferred
Shares, the Company caused The Bank of New York Mellon to deliver 8,000,000 ADSs collectively as pre-delivery shares (the “Pre-delivery
Shares”), each representing fifteen Class A ordinary shares of the Company, at the price of US$0.00000075 for each ADS.
The Pre-delivery Shares shall be returned to the Company at the end of the arrangement and the Company shall pay such Buyer US$0.00000075
for each such Pre-delivery Share. The Pre-delivery Shares are considered a form of stock borrowing facility and were accounted as a share
lending arrangement.
On January 22, 2024, the Company closed the
second tranche of the preferred shares financing (the “Second Tranche Preferred Shares Financing”), raising total net
proceeds of $49.9 million. Pursuant to the Second Tranche Preferred Shares Financing, the Company issued 50,000 Preferred Shares in total
at the price of US$1,000.00 per Preferred Share and caused The Bank of New York Mellon to deliver an additional 2,800,000 ADSs collectively
as pre-delivery shares (the “Pre-delivery Shares”), each representing fifteen Class A ordinary shares of the Company,
at the price of US$0.00000075 for each ADS.
The Company intends to use the net proceeds from
the sale of the securities for expansion of wafer procurement, R&D activities, and other general corporate purposes.
According to the Securities Purchase Agreement,
the closing of the third tranche of preferred shares financing (the “Third Tranche”), would be contingent upon mutual
agreement between the Company and the Buyer. As of the date of this announcement, neither the Company is obliged to sell nor the Buyer
is obliged to purchase for the Third Tranche.
As of the date of the Company’s first quarter
2024 earnings release, the Company has 4,223,697,753 Class A ordinary shares, 311,624,444 Class B ordinary shares, and 1,000
Series A Preferred Shares issued and outstanding. The increase in the outstanding Class A ordinary shares compared to the end
of 2023 was due to the conversion from part of the Series A Preferred Shares to Class A ordinary shares by the Buyer and the
issuance of the Pre-delivery Shares.
Early Adoption of FASB’s New Accounting
Rules for Crypto Assets Since January 1, 2024
Effective January 1, 2024, the Company early
adopted ASU 2023-08, which requires all entities holding cryptocurrency assets that meet certain requirements to subsequently measure
those in-scope cryptocurrency assets at fair value. As of December 31, 2023, the Company held cryptocurrency assets that primarily
comprised 1,078.5 bitcoins with the carrying value amounted to US$26.9 million. The cumulative adjustment of US$18.9 million for these
bitcoins was recorded to accumulated deficit as of the beginning of the year 2024. In the first quarter of 2024, the adoption of the new
account rules led to an unrealized gain of US$33.6 million due to the bitcoin price increase during the period.
Business Outlook
The Company maintains its guidance for the second
quarter of 2024 and provides an outlook for the third quarter of 2024. For the second quarter of 2024, the Company expects total revenues
to be approximately US$70 million. For the third quarter of 2024, the Company expects total revenues to be approximately US$70 million.
This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject
to change.
Conference Call Information
The Company’s management team will hold
a conference call at 8:00 A.M. U.S. Eastern Time on May 17, 2024 (or 8:00 P.M. Singapore Time on the same day) to discuss
the financial results. Details for the conference call are as follows:
Event Title:
Registration Link: |
Canaan Inc. First Quarter 2024 Earnings Conference Call
https://register.vevent.com/register/BI3b4b421451434636a61d7e8044eff306 |
All participants must use the link provided above
to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of
participant dial-in numbers and a unique access PIN, which can be used to join the conference call.
A live and archived webcast of the conference
call will be available at the Company’s investor relations website at investor.canaan-creative.com.
About Canaan Inc.
Established in 2013, Canaan Inc. (NASDAQ: CAN),
is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production,
and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, under the
leadership of Mr. Nangeng Zhang, founder and CEO, Canaan's founding team shipped to its customers the world's first batch of mining
machines incorporating ASIC technology in bitcoin's history under the brand name Avalon. In 2019, Canaan completed its initial public
offering on the Nasdaq Global Market. To learn more about Canaan, please visit https://www.canaan.io/.
Safe Harbor Statement
This announcement contains forward−looking
statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These forward−looking statements can be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,” “estimates”
and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Canaan
Inc.’s strategic and operational plans, contain forward−looking statements. Canaan Inc. may also make written or oral forward−looking
statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K,
in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors
or employees to third parties. Statements that are not historical facts, including statements about Canaan Inc.’s beliefs and expectations,
are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the
following: the Company’s goals and strategies; the Company’s future business development, financial condition and results
of operations; the expected growth of the bitcoin industry and the price of bitcoin; the Company’s expectations regarding demand
for and market acceptance of its products, especially its bitcoin mining machines; the Company’s expectations regarding maintaining
and strengthening its relationships with production partners and customers; the Company’s investment plans and strategies, fluctuations
in the Company’s quarterly operating results; competition in its industry in China; and relevant government policies and regulations
relating to the Company and cryptocurrency. Further information regarding these and other risks is included in the Company’s filings
with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Canaan
Inc. does not undertake any obligation to update any forward−looking statement, except as required under applicable law.
Use of Non-GAAP Financial Measures
In evaluating Canaan’s business, the Company
uses non-GAAP measures, such as adjusted EBITDA, as supplemental measures to review
and assess its operating performance. The Company defines adjusted EBITDA as net loss excluding income tax
expenses (benefit), interest income, depreciation and amortization expenses, share-based compensation expenses, impairment on property,
equipment and software, change in fair value of financial instruments
and excess of fair value of Series A Convertible Preferred Shares. The Company believes that the non-GAAP financial measures provide
useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance
and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial
and operational decision-making.
The non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools
and investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other
consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. One of the key limitations of using adjusted
EBITDA is that it does not reflect all of the items of income and expense that affect the Company’s operations.
Further, the non-GAAP financial measures may
differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures,
all of which should be considered when evaluating the Company’s performance.
Investor Relations Contact
Canaan Inc.
Ms. Xi Zhang
Email: IR@canaan-creative.com
ICR, LLC.
Robin Yang
Tel: +1 (347) 396-3281
Email: canaan.ir@icrinc.com
CANAAN INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(all amounts in thousands, except share and per share data, or as
otherwise noted)
| | |
As of December 31, | | |
As of March 31, | |
| | |
2023 | | |
2024 | |
| | |
USD | | |
USD | |
| ASSETS | |
| | |
| |
| Current assets: | |
| | |
| |
| Cash | |
| 96,154 | | |
| 54,739 | |
| Accounts receivable, net | |
| 2,997 | | |
| 1,636 | |
| Inventories | |
| 142,287 | | |
| 99,152 | |
| Prepayments and other current assets | |
| 122,242 | | |
| 165,435 | |
| Total current assets | |
| 363,680 | | |
| 320,962 | |
| Non-current assets: | |
| | | |
| | |
| Cryptocurrency | |
| 28,342 | | |
| 90,162 | |
| Property, equipment and software, net | |
| 29,466 | | |
| 47,076 | |
| Intangible asset | |
| - | | |
| 1,060 | |
| Operating lease right-of-use assets | |
| 1,690 | | |
| 4,217 | |
| Deferred tax assets | |
| 66,809 | | |
| 67,334 | |
| Other non-current assets | |
| 486 | | |
| 485 | |
| Non-current financial investment | |
| 2,824 | | |
| 2,819 | |
| Total non-current assets | |
| 129,617 | | |
| 213,153 | |
| Total assets | |
| 493,297 | | |
| 534,115 | |
| LIABILITIES, AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Accounts payable | |
| 6,245 | | |
| 16,698 | |
| Contract liabilities | |
| 19,614 | | |
| 38,863 | |
| Income tax payable | |
| 3,534 | | |
| 3,512 | |
| Accrued liabilities and other current liabilities | |
| 64,240 | | |
| 42,719 | |
| Operating lease liabilities, current | |
| 1,216 | | |
| 1,609 | |
| Preferred Shares forward contract liability | |
| 40,344 | | |
| - | |
| Series A Convertible Preferred Shares | |
| - | | |
| 7,116 | |
| Total current liabilities | |
| 135,193 | | |
| 110,517 | |
| Non-current liabilities: | |
| | | |
| | |
| Lease liabilities, non-current | |
| 210 | | |
| 2,136 | |
| Deferred tax liability | |
| - | | |
| 180 | |
| Other non-current liabilities | |
| 9,707 | | |
| 9,547 | |
| Total liabilities | |
| 145,110 | | |
| 122,380 | |
| Shareholders’ equity: | |
| | | |
| | |
| Ordinary shares (US$0.00000005 par value; 1,000,000,000,000 shares authorized, 3,772,078,667 and 4,447,158,932 shares issued, 3,514,973,327 and 4,203,333,587 shares outstanding as of December 31, 2023 and March 31, 2024, respectively) | |
| - | | |
| - | |
| Treasury stocks (US$0.00000005 par value; 257,105,340 shares as of December 31, 2023 and 243,825,345 shares as of March 31, 2024, respectively) | |
| (57,055 | ) | |
| (57,055 | ) |
| Additional paid-in capital | |
| 653,860 | | |
| 742,895 | |
| Statutory reserves | |
| 14,892 | | |
| 14,892 | |
| Accumulated other comprehensive loss | |
| (43,879 | ) | |
| (48,866 | ) |
| Accumulated deficit | |
| (219,631 | ) | |
| (240,131 | ) |
| Total shareholders’ equity | |
| 348,187 | | |
| 411,735 | |
| Total liabilities and shareholders’ equity | |
| 493,297 | | |
| 534,115 | |
CANAAN INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE LOSS
(all amounts in thousands of USD, except share and per share data,
or as otherwise noted)
| | |
For the Three Months Ended | |
| | |
March 31, 2023 | | |
December 31,
2023 | | |
March 31, 2024 | |
| | |
USD | | |
USD | | |
USD | |
| Revenues | |
| | |
| | |
| |
| Products revenue | |
| 44,114 | | |
| 44,907 | | |
| 23,446 | |
| Mining revenue | |
| 11,089 | | |
| 3,708 | | |
| 10,460 | |
| Other revenues | |
| 29 | | |
| 458 | | |
| 1,185 | |
| Total revenues | |
| 55,232 | | |
| 49,073 | | |
| 35,091 | |
| Cost of revenues | |
| | | |
| | | |
| | |
| Product cost | |
| (75,390 | ) | |
| (95,764 | ) | |
| (59,757 | ) |
| Mining cost | |
| (27,338 | ) | |
| (6,001 | ) | |
| (12,152 | ) |
| Other cost | |
| (50 | ) | |
| (1,377 | ) | |
| (509 | ) |
| Total cost of revenues | |
| (102,778 | ) | |
| (103,142 | ) | |
| (72,418 | ) |
| Gross loss | |
| (47,546 | ) | |
| (54,069 | ) | |
| (37,327 | ) |
| Operating expenses: | |
| | | |
| | | |
| | |
| Research and development expenses | |
| (19,058 | ) | |
| (10,778 | ) | |
| (15,342 | ) |
| Sales and marketing expenses | |
| (1,485 | ) | |
| (1,762 | ) | |
| (1,073 | ) |
| General and administrative expenses | |
| (17,577 | ) | |
| (20,191 | ) | |
| (14,304 | ) |
| Impairment on property, equipment and software | |
| - | | |
| (6,324 | ) | |
| - | |
| Impairment on cryptocurrency | |
| - | | |
| (144 | ) | |
| - | |
| Total operating expenses | |
| (38,120 | ) | |
| (39,199 | ) | |
| (30,719 | ) |
| Loss from operations | |
| (85,666 | ) | |
| (93,268 | ) | |
| (68,046 | ) |
| Interest income | |
| 440 | | |
| 229 | | |
| 205 | |
| Change in fair value of cryptocurrency | |
| - | | |
| - | | |
| 33,583 | |
| Change in fair value of financial instruments | |
| - | | |
| (10,918 | ) | |
| 2,340 | |
| Excess of fair value of Series A Convertible Preferred Shares | |
| - | | |
| (59,199 | ) | |
| (376 | ) |
| Foreign exchange gains (losses), net | |
| (2,559 | ) | |
| 1,404 | | |
| (1,843 | ) |
| Other income (expense), net | |
| 1,078 | | |
| (363 | ) | |
| (4,454 | ) |
| Loss before income tax expenses | |
| (86,707 | ) | |
| (162,115 | ) | |
| (38,591 | ) |
| Income tax (expense) benefit | |
| 2,341 | | |
| 23,100 | | |
| (802 | ) |
| Net loss | |
| (84,366 | ) | |
| (139,015 | ) | |
| (39,393 | ) |
| Foreign currency translation adjustment, net of nil tax | |
| 9,158 | | |
| (268 | ) | |
| (4,987 | ) |
| Total comprehensive loss | |
| (75,208 | ) | |
| (139,283 | ) | |
| (44,380 | ) |
| Weighted average number of shares used in per class A and Class B ordinary share calculation: | |
| | | |
| | | |
| | |
| — Basic | |
| 2,502,558,388 | | |
| 2,706,024,111 | | |
| 3,719,629,615 | |
| — Diluted | |
| 2,502,558,388 | | |
| 2,706,024,111 | | |
| 3,719,629,615 | |
| Net loss per class A and Class B ordinary share (cent per share) | |
| | | |
| | | |
| | |
| — Basic | |
| (3.37 | ) | |
| (5.14 | ) | |
| (1.06 | ) |
| — Diluted | |
| (3.37 | ) | |
| (5.14 | ) | |
| (1.06 | ) |
Share-based
compensation expenses were included in: | |
| | | |
| | | |
| | |
| Cost of revenues | |
| 66 | | |
| 14 | | |
| 57 | |
| Research and development expenses | |
| 2,324 | | |
| 1,911 | | |
| 1,865 | |
| Sales and marketing expenses | |
| (164 | ) | |
| 79 | | |
| 43 | |
| General and administrative expenses | |
| 10,387 | | |
| 6,649 | | |
| 5,946 | |
The table below sets forth a reconciliation of net loss to Non-GAAP
adjusted EBITDA for the period indicated:
| | |
For the Three Months Ended | |
| | |
March 31, 2023 | | |
December 31,
2023 | | |
March 31, 2024 | |
| | |
USD | | |
USD | | |
USD | |
| Net loss | |
| (84,366 | ) | |
| (139,015 | ) | |
| (39,393 | ) |
| Income tax (expense) benefit | |
| (2,341 | ) | |
| (23,100 | ) | |
| 802 | |
| Interest income | |
| (440 | ) | |
| (229 | ) | |
| (205 | ) |
| EBIT | |
| (87,147 | ) | |
| (162,344 | ) | |
| (38,796 | ) |
| Depreciation and amortization expenses | |
| 17,058 | | |
| 7,807 | | |
| 6,873 | |
| EBITDA | |
| (70,089 | ) | |
| (154,537 | ) | |
| (31,923 | ) |
| Share-based compensation expenses | |
| 12,613 | | |
| 8,653 | | |
| 7,911 | |
| Impairment on property, equipment and software | |
| - | | |
| 6,324 | | |
| - | |
| Change in fair value of financial instruments | |
| - | | |
| 10,918 | | |
| (2,340 | ) |
| Excess of fair value of Series A Convertible Preferred Shares | |
| - | | |
| 59,199 | | |
| 376 | |
| Non-GAAP adjusted EBITDA | |
| (57,476 | ) | |
| (69,443 | ) | |
| (25,976 | ) |
Canaan (NASDAQ:CAN)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Canaan (NASDAQ:CAN)
Historical Stock Chart
Von Dez 2023 bis Dez 2024
