VANCOUVER, April 25, 2018 /PRNewswire/ - HashChain Technology Inc. ("HashChain" or the "Company") (TSXV: KASH; OTCQB: HSSHF) today announced its financial and operational results for the quarter ended February 28, 2018. HashChain is a global blockchain company with cryptocurrency mining, accounting, and Masternode hosting services that began operations on November 3, 2017 and subsequently listed for trading on the TSX Venture Exchange on December 18, 2017. As of February 28, 2018, the Company had two wholly owned subsidiaries, HashChain Mining LLC and Global Crypto Public Accounting Ltd.
HashChain Technology Inc. (CNW Group/HashChain Technology Inc.)
Total Company assets increased to $38,278,744 as of February 28, 2018 from $4,405,916 at November 30, 2017. The significant assets consisted of $7,394,705 cash, mining Rigs of $3,283,792, a cash deposit of $10,444,119 for the purchase of mining Rigs, Goodwill and Intangible Assets totaling $14,913,807 related to the acquisition of the assets of NODE40, a cryptocurrency accounting and Masternode hosting service company.
"HashChain achieved substantial asset growth in only a four-month period of operation," says Patrick Gray, CEO of HashChain. "From the onset, the Company planned to rapidly scale our mining in tandem with diversifying our business strategy to incorporate other blockchain related businesses. With the current and projected Rig purchases and our acquisition of NODE40, we've positioned ourselves to make a large impact in blockchain and cryptocurrency markets in 2018 and beyond."
Quarterly Highlights
Acquired the assets of blockchain technology company NODE40, including the software code for Node40 Balance (a cryptocurrency accounting software) and Node40 Hosting, which provide Dash Masternode hosting services as well as the rights to receive payments from ten Dash Masternodes for a period of 36 months.
Raised $29.7 million through a bought deal private placement to finance expansion and allow for future investment growth opportunities.
Received 770 Bitcoin mining Rigs and purchased an additional 3,000.
Cash position increased by $6,763,358.
Operating revenues of $216,534 from digital currency mining, Dash Masternode rewards and Node40 Masternode hosting revenue.
Recent Developments
Since the end of the fiscal second quarter, the Company deployed 770 Bitcoin mining Rigs on March 8, 2018.
On March 13, 2018 HashChain expanded their Node40 Balance cryptocurrency accounting software to integrate with the Coinbase Exchange and support cross-wallet transactions.
On April 3, 2018, the additional order for 3,000 Rigs was delivered to the Company. On April 23, 2018 the Company announced that it had entered into a letter agreement to acquire a company with 1,000 new S9 Antminer Rigs. Upon deployment of all Rigs, HashChain will have over 6.4MW of power dedicated to cryptocurrency mining.
Financial Information
Due to the acquisition of NODE40 closing on February 15, 2018, the Company's revenues for the quarter of $216,534 included only thirteen days of income attributed to Node40 services.
The Company's net losses resultant from continuing operations for the three and six months ended February 28, 2018 were $4,685,105 and $5,325,564, respectively, which included one-time charges associated with the acquisition of NODE40 of $1,009,101. These acquisition costs represent non-recurring items.
General and administrative expenses for the aforementioned three and six months were $3,550,361 and $4,877,872 respectively, which included non-cash charges for share-based compensation of $82,174 and $499,409 and depreciation of $37,816 and $74,278 for each of the three and six months. Ongoing general and administration expenses relate to the Company's growth plans and compliance costs related to operating a public company.
Operating and maintenance costs for the three and six months ended February 28, 2018 were $26,207 and $63,626, respectively, consisting primarily of fees paid under a master services agreement include: electricity, daily monitoring and maintenance, facility costs and all other costs directly related to the maintenance and operation of the Company's mining equipment.
A comprehensive discussion of HashChain's financials and operations are provided in the Company's "Management Discussion & Analysis and Financial Statements" filed with SEDAR and can be found on www.sedar.com.
"We have the foundation in place to grow HashChain into a full-scale blockchain service provider, building on mining and regulatory solutions to help institutional and personal investors in this truly disruptive and promising technology," continues Gray. "In the coming months, we plan to invest in additional Rigs and deployment, while expanding our blockchain accounting business with new services and implementation on further exchanges."
