marketable securities (984) (6,436)
Realized gain on securities - (1,788)
Unrealized loss on
investment and equity
securities 852,624 10,317,613
Loss on disposal of fixed
assets 54,506 -
Proceeds from securities - 554,036
Realized gain on sale of
digital assets - (1,333,899)
Credit loss on Seastar
Medical Holding
Corporation notes
receivable - 22,344
Reversal of allowance loss
on debt security - (1,052,543)
Investments in marketable
securities - (739,616)
Change in operating assets
and liabilities:
Prepaid expenses and other
assets 3,650,696 (123,221)
Hosting deposits - (54,691)
Advances (repayments) to
related party 41,541 (31,090)
Accounts payable and
accrued expenses (664,681) 682,405
Mining of digital assets (8,618,436) (8,352,805)
Proceeds from sale of
digital assets - 7,487,058
Lease liability payments (81,304) (70,563)
Net cash used in
operating activities (8,690,014) (2,609,712)
------------- -------------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Net collections of finance
receivables - original
product (4,618) (8,765)
Net collections of finance
receivables - special
product (1,571) 14,009
Capital expenditures (1,228,428) (1,913,303)
Proceeds from sale of fixed
assets 78,806 -
Investment in Tech
Infrastructure JV I LLC
note receivable (2,867,195) -
Investment in note
receivable - (100,000)
Collection of notes
receivable 1,449,066 1,761,727
Investment in digital
assets - (35,157)
Proceeds from sale of
digital assets 6,821,185 43,678
Proceeds from the sale of
tether 3,003 -
Symbiont asset acquisition - (402,359)
Distribution to members (19,616) -
Net cash from (used in)
investing activities 4,230,632 (640,170)
------------- -------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from borrowings 6,344,084 -
Insurance financing
repayments (547,022) (499,453)
Insurance financing - 86,886
Exercise of options 25,000 -
Proceeds from equity
offering 2,333,112 -
Issue costs for equity
offering (184,408) (106,550)
Net cash from (used in)
financing activities 7,970,766 (519,117)
------------- -------------
NET DECREASE IN CASH 3,511,384 (3,768,999)
CASH - BEGINNING OF PERIOD 2,401,831 4,238,006
CASH - END OF PERIOD $ 5,913,215 469,007
============= =============
SUPPLEMENTAL DISCLOSURES OF
NON-CASH ACTIVITIES
ROU assets and operating lease
obligation recognized $ - $ 21,887
Reclassification of mining
equipment deposit to fixed
assets, net $ - $ 1,177,226
Change in accounting principle
(see Note 1) $ 614,106 $ -
SUPPLEMENTAL DISCLOSURES OF
CASHFLOW INFORMATION
Cash paid for taxes $ - $ -
Cash paid for interest $ 222,697 $ -
NON-GAAP FINANCIAL INFORMATION (unaudited)
Our reported results are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We also disclose Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") and Core Earnings before Interest, Tax, Depreciation and Amortization ("Core EBITDA") which adjusts for unrealized loss on investment and equity securities, impairment loss on mined digital assets, impairment of long-lived assets, impairment of prepaid hosting deposits, contract termination costs and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners.
The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:
Three Months Ended Nine Months Ended September
September 30, 30,
-------------------------- -----------------------------
2024 2023 2024 2023
Net loss $(4,803,117) $(4,667,856) $(9,546,480) $(17,472,808)
Interest
expense 124,035 - 231,754 -
Depreciation
and
amortization 2,349,634 1,516,873 7,115,404 3,487,866
---------- ---------- ---------- -----------
Income (loss) before
interest, taxes &
depreciation $(2,329,448) $(3,150,983) $(2,199,322) $(13,984,942)
Unrealized loss
on investment
and equity
securities 346,866 778,078 852,624 10,317,613
Gain on
adjustment of
note
receivable
allowance - - - (1,052,543)
Impairment loss
on mined
digital
assets - 383,497 - 822,650
Impairment loss
on prepaid
hosting
deposits - - - 36,691
Costs
associated
with
At-the-Market
Equity
program - - 119,050 -
Contract
termination
costs 250,001 - 250,001 -
Impairment loss
on Symbiont
assets - 750,678 - 750,678
Impairment loss
on mining
equipment - - 1,188,058 -
Stock
compensation
and option
expense 110,806 621,827 408,737 2,528,852
Core income (loss)
before interest,
taxes &
depreciation $(1,621,775) $ (616,903) $ 619,148 $ (581,001)
========== ========== ========== ===========
(END) Dow Jones Newswires
November 13, 2024 09:54 ET (14:54 GMT)
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