Stock Distribution and Corporate Actions - The company announced a distribution of 5.0 million shares of Class B Common Stock to holders of Class A common stock and Series C Convertible Preferred Stock, with a record date of November 29, 2024, and a payment date of December 16, 2024[460]. - A reverse stock split of Class A common stock was executed at a ratio of one-for-thirty-five, effective November 22, 2024[461]. - The company entered into a securities purchase agreement to sell up to 50,000 shares of Series B Convertible Preferred Stock for a total purchase price of up to $50.0 million, with the initial tranche closing at $2.0 million[468]. - The company issued a total of 135,957 shares of Series D preferred stock for the settlement of ELOC advances totaling $2.0 million from January 1, 2025 through April 14, 2025[519]. Financial Performance - Total revenue for the year ended December 31, 2024, was $106.66 million, a decrease of 21% from $134.85 million in 2023[481]. - Revenue from crypto assets mining decreased by $2.51 million, or 8%, to $30.60 million in 2024, primarily due to a $4.1 million decline in revenue from mined crypto assets[482]. - Crane operations revenue decreased by $1.72 million, or 4%, to $47.48 million in 2024, attributed to competitive pricing pressures and lower utilization of the crane fleet[483]. - Revenues from lending and trading activities improved to $1.89 million in 2024, compared to a loss of $1.998 million in 2023, driven by realized gains and fee income[484]. - Gross margins increased to 23% in 2024 from 18% in 2023, influenced by improved performance in lending and trading activities[490]. Expenses and Impairments - Research and development expenses rose to $11.01 million in 2024, up from $4.42 million in 2023, due to increased expenditures on new platform developments[491]. - Selling and marketing expenses decreased by 56% to $14.02 million in 2024, primarily due to reduced advertising costs[492]. - General and administrative expenses decreased by 48% to $35.25 million in 2024, mainly due to the deconsolidation of SMC and lower professional fees[493]. - Impairment charges for property and equipment related to crypto assets mining totaled $10.5 million in 2024 due to increased mining difficulty[499]. - The company recognized a $1.5 million impairment of intangible assets during 2024, compared to a $24.7 million impairment in 2023[495]. - AVLP recognized an impairment charge of $14.0 million for property and equipment, with an estimated fair value of $0 as of December 31, 2023[501]. - Impairment of mined digital currencies was $0.5 million for the year ended December 31, 2023[502]. - Other expense, net decreased to $4.7 million for the year ended December 31, 2024, down from $91.3 million in 2023[503]. - Interest expense decreased to $19.7 million for the year ended December 31, 2024, compared to $44.3 million in 2023[505]. Cash Flow and Equity - Cash and cash equivalents were $4.6 million as of December 31, 2024, down from $6.1 million at the end of 2023[513]. - Net cash used in operating activities increased to $19.4 million for the year ended December 31, 2024, compared to $5.4 million in 2023[514]. - Net cash provided by investing activities was $3.2 million for the year ended December 31, 2024, compared to a net cash used of $29.5 million in 2023[515]. - Net cash provided by financing activities was $25.8 million for the year ended December 31, 2024, down from $37.0 million in 2023[517]. - A gain of $17.9 million was recognized on the conversion of investment in equity securities during the year ended December 31, 2024[508]. - Stockholders' equity reported at approximately $2.2 million, below the required $6 million for NYSE American listing standards[530]. Compliance and Future Plans - Company has reported losses from continuing operations and/or net losses in five of the most recent fiscal years ended December 31, 2023[530]. - Compliance plan submitted to NYSE American by January 17, 2025, to regain compliance within 18 months[531]. - NYSE American accepted the compliance plan on March 4, 2025, granting a listing extension until June 18, 2026[531]. - Company will undergo periodic reviews, including quarterly monitoring for compliance with the plan[531]. Business Operations - The company recognized a gain of $2.0 million from the deconsolidation of GIGA, which was classified as discontinued operations due to its Chapter 11 bankruptcy filing[471]. - A loss on impairment of property and equipment related to AGREE's real estate assets was recorded at $8.0 million during the year ended December 31, 2024[474]. - The Series G Preferred Stock has a stated value of $1,000.00 and is convertible into Class A common stock at a conversion price based on market conditions, with a cumulative cash dividend of 9.5%[466]. - The company plans to maximize stockholder value through various initiatives, including public offerings and potential sales of subsidiaries or partner companies[475]. - The company has provided capital and expertise to support growth in sectors such as AI software, social gaming, and defense[477]. - The company operates a Bitcoin mining business and provides mission-critical products across diverse industries, including a metaverse platform and crane services[458].

Financial Performance - Hyperscale Data, Inc. announced preliminary financial results for the twelve-month period ended December 31, 2024[5] - The company reported a revenue increase of 15% year-over-year, reaching $500 million[5] - The company expects to achieve a revenue growth of 20% for the fiscal year 2025, projecting $600 million[7] User Growth - User data showed a growth of 25% in active users, totaling 2 million by the end of 2024[5] Product Development - New product launches are anticipated to contribute an additional $50 million in revenue in 2025[7] - Hyperscale Data, Inc. is investing $10 million in R&D for new technologies in cloud computing[7] Market Strategy - The company is focusing on market expansion in Europe, targeting a 30% increase in market share by 2026[7] - The company plans to explore strategic acquisitions to enhance its service offerings in the next fiscal year[7] Operating Expenses - Operating expenses are projected to increase by 10% due to investments in technology and marketing[7] Financial Position - The company remains committed to maintaining a strong balance sheet with a current cash position of $100 million[7]

Financing Activities - Hyperscale Data entered into a Loan and Guaranty Agreement on December 14, 2023, with a borrowing amount of $36 million and secured promissory notes totaling $38.9 million[104]. - The company is required to maintain a minimum balance in a segregated deposit account, starting at $7 million and increasing to $27.5 million over two years[104]. - Ault Lending purchased 1,220 shares of Series B convertible preferred stock for $1.22 million on January 31, 2024, as part of a larger agreement with Alzamend Neuro, Inc.[105]. - The company sold an aggregate of $2.0 million principal face amount convertible promissory notes for $1.8 million, reflecting an original issue discount of $0.2 million[105]. - Ault & Company has purchased a total of 44,300 shares of Series C Convertible Preferred Stock for an aggregate purchase price of $44.3 million[105]. - A term note with a principal amount of $1.7 million was issued on April 29, 2024, with an interest rate of 15% per annum[105]. - The 2023 Loan Agreement was amended multiple times, including extending the minimum balance requirement and adjusting deposit amounts[104]. - Ault Lending has purchased a total of 2,000 shares of ALZN Series B Preferred and warrants for an aggregate purchase price of $2.0 million[105]. - The company entered into a Loan Agreement providing for an unsecured, non-revolving credit facility with a draw limit of up to $20.0 million, with an initial loan of $1.5 million made on June 4, 2024[106]. - Ault Disruptive announced the redemption of all outstanding shares of common stock, with an aggregate redemption amount of $1.5 million during the nine months ended September 30, 2024, and an additional $0.8 million redeemed on October 11, 2024[106]. - A note purchase agreement was entered into for a $5.4 million 10% OID Convertible Promissory Note, sold for a purchase price of $4.9 million, with a maturity date of October 19, 2024[106]. - The company plans to issue a special one-time dividend of 5.0 million shares of Class B Common Stock to holders of Class A Common Stock, with a record date of November 29, 2024[108]. - As of September 30, 2024, the company had deposited $6.5 million in a Segregated Account, with an additional $0.4 million deposited in October 2024[108]. - A reverse stock split of one-for-thirty-five was approved, effective November 22, 2024, with trading on a split-adjusted basis starting November 25, 2024[108]. Financial Performance - Total revenue for the three months ended September 30, 2024, was $31,061,000, a decrease of 28% compared to $43,090,000 for the same period in 2023[114]. - Revenue from crypto assets mining decreased by $2,294,000, or 30%, to $5,264,000, primarily due to a $5.3 million unfavorable impact from the Bitcoin halving event and a 76% increase in mining difficulty[114][115]. - Revenues from lending and trading activities were $5,575,000, a significant increase from negative $249,000 in the same period last year, driven by $2.6 million in realized gains and $2.6 million in fee income[117]. - Gross profit for the three months ended September 30, 2024, was $8,545,000, compared to $8,732,000 in the prior year, with gross margins improving to 28% from 20%[114][119]. - Total revenue for the nine months ended September 30, 2024, was $87,219,000, a decrease of 16% compared to $104,238,000 for the same period in 2023[128]. - Revenue from crypto assets mining increased by $1,928,000, or 8%, to $25,201,000 for the nine months ended September 30, 2024, compared to $23,273,000 in 2023[128]. - Revenue from lending and trading activities rose by $574,000, or 13%, to $4,911,000 for the nine months ended September 30, 2024, compared to $4,337,000 in 2023[128]. - Gross margins improved to 26% for the nine months ended September 30, 2024, up from 23% in the same period in 2023, influenced by lending and trading activities[135]. Expenses and Losses - Research and development expenses increased by $3,501,000, or 319%, to $4,598,000, primarily due to development work on the BitNile gaming platform[119]. - General and administrative expenses decreased by $4,343,000, or 27%, to $12,000,000, mainly due to the deconsolidation of SMC and lower professional fees[121]. - Total operating expenses rose to $33,140,000, compared to $29,082,000 in the prior year, leading to a loss from operations of $24,595,000[114]. - Interest expense increased to $7,766,000 from $6,137,000, reflecting higher contractual interest and fees[124]. - Net loss attributable to common stockholders was $26,875,000 for the three months ended September 30, 2024, compared to $22,183,000 in the same period last year[114]. - The company recorded a loss on impairment of property and equipment related to AGREE's real estate assets amounting to $8.0 million during the nine months ended September 30, 2024[111]. - The company recognized an impairment charge of $10.5 million related to crypto assets mining equipment due to increased mining difficulty and the Bitcoin halving event[122]. - Net loss from continuing operations was $57,449,000 for the nine months ended September 30, 2024, compared to a net loss of $135,146,000 in 2023[136]. - Impairment charges included $10.5 million related to crypto assets mining equipment and $9.2 million related to real estate assets for the nine months ended September 30, 2024[136]. Cash Flow and Financial Position - Cash and cash equivalents increased to $7.2 million as of September 30, 2024, up from $6.1 million at December 31, 2023[140]. - Net cash used in operating activities totaled $10.2 million for the nine months ended September 30, 2024, compared to $2.2 million for the same period in 2023[140]. - Net cash provided by financing activities was $22.6 million for the nine months ended September 30, 2024, compared to $23.8 million for the same period in 2023[142]. - The company recognized a $1.4 million gain on extinguishment of debt during the three months ended March 31, 2024[138]. - Cumulative downward adjustments for impairments for equity securities without readily determinable fair values were $6.3 million for the nine months ended September 30, 2024[138]. Tax and Internal Controls - The effective income tax provision rate was 0.1% for the nine months ended September 30, 2024, down from 0.4% in the same period of 2023[139]. - Management identified material weaknesses in internal controls over financial reporting, including insufficient resources in the accounting department[144].

Company Information - Ault Alliance, Inc. is incorporated in Delaware and has its principal executive offices located in Las Vegas, NV[2]. - The company has issued 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share[1]. - The company has not indicated whether it is an emerging growth company as defined by the Securities Act of 1933[3]. Financial Reporting - Ault Alliance, Inc. announced its unaudited revenue for the six months ended June 30, 2024, in a press release issued on August 19, 2024[4]. - The report includes forward-looking statements that involve risks and uncertainties, cautioning investors not to rely unduly on these statements[6]. - The press release and financial statements are not deemed "filed" for purposes of the Securities Exchange Act of 1934[5]. - The report includes an exhibit with the press release attached as Exhibit 99.1[8]. Regulatory Information - The company is registered under the Securities Exchange Act of 1934 and has a Commission File Number of 001-12711[2]. - Investors can access documents filed with the Securities and Exchange Commission free of charge at the SEC's website[7]. Contact Information - The company’s telephone number for inquiries is (949) 444-5464[2].

Financial Performance - Total revenue for the three months ended June 30, 2024, was $28.4 million, a decrease of 40% compared to $47.4 million in the same period of 2023[139]. - Revenue from digital assets mining increased by 1% to $8.49 million, while revenue from lending and trading activities showed a significant decline of 202% to $(9.76) million[141]. - A loss on impairment of property and equipment related to AGREE's real estate assets was recorded at $8.0 million during the three months ended June 30, 2024[134]. - Operating expenses totaled $26.3 million for the three months ended June 30, 2024, down from $68.4 million in the same period of 2023[139]. - The net loss attributable to Ault Alliance, Inc. for the three months ended June 30, 2024, was $33.9 million, compared to a net loss of $60.7 million in the same period of 2023[139]. - Total revenue for the six months ended June 30, 2024, was $76.34 million, a decrease from $78.59 million in the same period in 2023[152]. - Net loss attributable to common stockholders for the six months ended June 30, 2024, was $32.78 million, compared to a net loss of $109.88 million in the same period in 2023[152]. - Revenue from crane operations decreased by 7% to $11.7 million, down from $12.6 million in the same period of 2023[141]. - Revenues from lending and trading activities were negative $9.8 million, primarily due to a $9.4 million unrealized loss on White River Energy Corp. common stock[144]. - Energy revenues from Circle 8 crane operations decreased by $0.9 million, or 7%, due to lower utilization of the crane fleet[143]. - Energy revenues from Circle 8 crane operations increased by $0.6 million, or 2%, for the six months ended June 30, 2024[156]. - Revenues from lending and trading activities were negative $0.7 million for the six months ended June 30, 2024, compared to $4.6 million for the same period in 2023[157]. - GIGA revenues increased by $1.9 million, driven by investments in force protection technologies amid global conflicts[146]. - TurnOnGreen's revenues increased by $0.5 million, attributed to higher sales from a single, higher-margin customer in the defense industry[147]. - Gross margins decreased to (2%) for the three months ended June 30, 2024, compared to 38% for the same period in 2023[148]. - Gross margins were 25% for the six months ended June 30, 2024, unchanged from the same period in 2023; adjusted gross margins improved to 26% from 22%[161]. Expenses and Cost Management - Research and development expenses decreased by $1.0 million due to lower expenditures on ROI's BitNile metaverse platform[148]. - Selling and marketing expenses decreased by $5.6 million, or 58%, primarily due to lower advertising and promotion costs[148]. - General and administrative expenses decreased by $7.8 million, or 37%, mainly due to lower professional fees and reduced expenses from SMC[148]. - Selling and marketing expenses decreased by $9.7 million, or 53%, to $8.7 million for the six months ended June 30, 2024[161]. - General and administrative expenses decreased by $17.2 million, or 39%, to $26.8 million for the six months ended June 30, 2024[161]. - Interest expense decreased to $12.3 million for the six months ended June 30, 2024, from $29.7 million for the same period in 2023[163]. Financing Activities - Ault Alliance, Inc. entered into a Loan and Guaranty Agreement on December 14, 2023, borrowing $36 million and issuing secured promissory notes totaling $38.9 million[130]. - The company is required to maintain a minimum balance in a segregated deposit account, starting at $7 million and increasing to $27.5 million over two years[130]. - The company entered into a $20 million unsecured credit facility, with an initial loan of $1.5 million made on June 4, 2024[133]. - Ault Lending purchased 1,220 shares of Series B convertible preferred stock and warrants for a total of $1.22 million from Alzamend Neuro, Inc. on January 31, 2024[131]. - The company sold an aggregate of $2.0 million principal face amount convertible promissory notes for $1.8 million, reflecting an original issue discount of $0.2 million[131]. - Ault Alliance distributed 25 million TurnOnGreen Securities to stockholders on April 29, 2024, entitling them to shares and warrants[131]. - The company has increased the dollar amount of Series C Convertible Preferred Stock that Ault & Company may purchase from $50 million to $75 million[131]. - The company has established a security interest in 19,226 Antminers and other assets as collateral for the secured notes[130]. Strategic Operations - Ault Alliance is involved in mining Bitcoin and providing colocation and hosting services for artificial intelligence ecosystems[129]. - The company operates a diverse range of businesses, including hotels and lending services, to support various industries[129]. - Ault Alliance's strategic investments include a data center and mission-critical products for sectors like defense, automotive, and medical[129]. - GIGA revenues increased by $2.7 million for the six months ended June 30, 2024, driven by investments in force protection technologies due to global conflicts[158]. - TurnOnGreen's revenues increased by $0.9 million for the six months ended June 30, 2024, primarily from higher sales to a single defense industry customer[160]. Legal and Compliance Issues - The company is involved in litigation with Arena Investors, LP, seeking damages in excess of $3.75 million related to a breach of contract[174]. - Another litigation involves claims against GIGA, with monetary damages sought in excess of $4.2 million for breach of contract and related issues[177]. - The company has recorded the unpaid portion of the notes related to the ongoing litigations, indicating potential financial implications[174][177]. - The company cannot reasonably estimate the potential loss from the ongoing litigations due to their preliminary stage[174][177]. Internal Controls and Remediation - The company is actively working to remediate material weaknesses in internal controls, particularly in user access and change management related to IT systems[171]. - Remediation actions include engaging a third-party specialist, implementing new applications, and increasing headcount with a focus on Sarbanes Oxley expertise[171]. - The company believes that its condensed consolidated financial statements fairly present its financial condition despite existing material weaknesses[171]. - The company continues to assess opportunities for remediation of internal controls on an ongoing basis[171]. - There were no significant changes in internal control over financial reporting during the fiscal quarter ended June 30, 2024[171]. - The company is focused on improving and simplifying internal processes to address material weaknesses in financial reporting[171].

Financial Performance - Ault Alliance, Inc. announced its financial results for Q1 2024, with a focus on operational performance and future outlook [4] - The company reported a revenue increase of 15% year-over-year, reaching $25 million for the quarter [4] - The company reported a net income of $3 million for Q1 2024, compared to a net loss of $1 million in Q1 2023 [4] User Growth - User data showed a growth in active users by 20%, totaling 1.2 million users as of March 31, 2024 [4] - Ault Alliance, Inc. highlighted the successful launch of its new software platform, which has already attracted 300 new clients since its release [4] Future Guidance - Ault Alliance, Inc. provided guidance for Q2 2024, expecting revenue to be between $27 million and $30 million, representing a growth of 8% to 20% [4] Investment and Development - The company is investing in new product development, with a budget allocation of $5 million for R&D in 2024 [4] - Ault Alliance, Inc. is considering strategic acquisitions to enhance its product portfolio, with potential targets identified in the tech sector [4] Market Expansion - Ault Alliance, Inc. is exploring market expansion opportunities in Europe, targeting a 10% market share by the end of 2025 [4] Sustainability Commitment - Ault Alliance, Inc. emphasized its commitment to sustainability, aiming to reduce operational carbon emissions by 25% by 2026 [4]

Revenue Performance - Total revenue for the three months ended March 31, 2024, was $44,932,000, a 55% increase from $28,943,000 in the same period of 2023[116] - Revenue from digital assets mining reached $11,447,000, up 56% from $7,347,000 year-over-year[118] - Revenue from lending and trading activities was $9,099,000, a significant increase of $14,038,000 compared to a loss of $4,939,000 in the prior year[118] - Revenues from Sentinum's digital assets mining operations increased by $4.1 million due to a 134% increase in the average Bitcoin price, despite a 94% increase in mining difficulty[119] - Energy revenues from Circle 8 crane operations increased by $0.3 million, or 2%, for the three months ended March 31, 2024[120] - Revenues from lending and trading activities were $9.1 million for the three months ended March 31, 2024, with an unrealized gain of $8.9 million included in this revenue[121] - GIGA revenues increased by $0.9 million, driven by investments in force protection technologies due to ongoing global conflicts[122] - SMC revenues were $0 for the three months ended March 31, 2024, a decrease of $3.4 million compared to the same period in 2023[123] Profitability - Gross profit for the quarter was $19,509,000, compared to $2,485,000 in the same quarter of 2023[116] - Gross margins increased to 43% for the three months ended March 31, 2024, compared to 9% for the same period in 2023[124] - Net income attributable to Ault Alliance, Inc. was $3,717,000, a recovery from a net loss of $48,646,000 in the previous year[116] Operating Expenses - Total operating expenses decreased to $19,112,000 from $32,348,000 year-over-year[116] - General and administrative expenses decreased by $8.2 million, or 38%, for the three months ended March 31, 2024, compared to the same period in 2023[125] - Research and development expenses decreased by $0.8 million for the three months ended March 31, 2024, due to lower expenditures on the BitNile metaverse platform[125] Cash Flow - Net cash used in operating activities totaled $10.2 million for the three months ended March 31, 2024, compared to net cash provided of $7.7 million for the same period in 2023[128] - Net cash provided by financing activities was $13.0 million for the three months ended March 31, 2024, compared to net cash used of $8.1 million for the same period in 2023[128] Strategic Initiatives - Ault Lending entered into a securities purchase agreement to acquire up to $6 million of Alzamend Series A convertible preferred stock[111] - The company plans to sell its four hotels under the AGREE subsidiary to focus on core businesses in Energy, Fintech, and Sentinum[112] - Ault Alliance established a record date for the final distribution of TurnOnGreen securities, distributing 25 million shares[111] Investment Gains - The company reported a gain of $17,900,000 on the conversion of investment in equity securities to marketable equity securities[116]

Financing Activities - The company raised approximately $177 million through the sale of about 42,382 shares of common stock from the 2022 ATM Offering[392]. - The company received gross proceeds of approximately $3.4 million from the sale of 0.3 million Series D Preferred Shares in the 2022 ATM Preferred Offering[392]. - The company borrowed $18.9 million in principal amount of term loans, which matured in 18 months and accrued interest at 8.5% per annum[392]. - The loan amount was increased from $18.9 million to $24.3 million in July 2023[394]. - The company entered into a Share Exchange Agreement, resulting in a combined stated value of the Preferred Stock to be issued by ROI of $100 million[394]. - Each share of Preferred Stock will be convertible into 40,000 shares of ROI common stock at a conversion price of $0.25[394]. - The holders of Preferred Stock are entitled to receive dividends at a rate of 5% of the Stated Value per annum from issuance until February 7, 2033[394]. - A term note with a principal amount of $1.1 million was issued at a 12% interest rate, with net proceeds amounting to $1.0 million[397]. - A credit agreement was established with Ault & Company for an unsecured credit facility of up to $10 million, bearing interest at 9.5% per annum[397]. - The company issued a convertible promissory note with a principal face amount of $2.2 million, convertible into shares of common stock at a price equal to 90% of the lowest volume weighted average price during the five trading days prior to conversion[399]. - A senior secured convertible promissory note was sold to Ault & Company for a total purchase price of up to $17.5 million, with a maturity date of October 12, 2028[401]. - The company entered into a securities purchase agreement with Ault & Company to sell up to 50,000 shares of Series C convertible preferred stock and warrants for a total purchase price of up to $50 million[401]. - An additional loan amount of $8.8 million was borrowed, with net proceeds of $7.5 million[397]. - Ault & Company borrowed $36 million and issued secured promissory notes totaling $38.9 million as part of a Loan Agreement with institutional lenders[403]. - Ault Lending purchased 1,220 shares of ALZN Series B Preferred and warrants for a total of $1.22 million, with the purchase price paid by canceling cash advances[405]. - Ault Lending entered into a note purchase agreement for $2.0 million principal face amount convertible promissory notes, sold for $1.8 million, reflecting a $0.2 million original issue discount[407]. - Ault Lending purchased 780 shares of ALZN Series B Preferred Stock for $0.8 million, bringing the total investment in ALZN Series B to $2.0 million[408]. - The reverse stock split of Ault & Company's common stock was executed at a ratio of 1-for-25, effective January 16, 2024[404]. - Ault & Company plans to sell four hotels under its subsidiary AGREE, aiming to focus on core businesses and use proceeds to pay off debt[410]. - Ault & Company has increased the dollar amount of Series C Convertible Preferred Stock that can be purchased from $50 million to $75 million[409]. - A segregated deposit account was established with an initial deposit of $3.5 million, requiring minimum balances to increase over time[403]. - Ault & Company anticipates returning value to stockholders after satisfying debt obligations and working capital needs[414]. Revenue and Financial Performance - Total revenue increased by $38.5 million, or 33%, to $156.4 million for the year ended December 31, 2023, compared to $117.6 million for the year ended December 31, 2022[419]. - Revenue from digital currencies mining operations increased by $16.4 million, driven by increased mining activities and a 2% higher average Bitcoin price, despite a 72% increase in average Bitcoin mining difficulty[420]. - Energy revenues rose by $47.1 million primarily due to the acquisition of Circle 8 in December 2022[421]. - Revenues from lending and trading activities were negative, impacted by a $6.2 million impairment related to equity securities and a $5.6 million unrealized loss from an investment[422]. - GIGA segment revenue increased by $7.5 million, including $2.6 million from the acquisition of Giga-tronics Incorporated, driven by defense-related investments and demand for electronics solutions[423]. - SMC revenues increased by $7.3 million due to the consolidation of SMC revenue for 11 months in 2023, following its acquisition in June 2022[424]. - TurnOnGreen revenues decreased by $1.3 million due to the cancellation of large projects that contributed to revenue in 2022[425]. - Gross margins decreased to 20% for the year ended December 31, 2023, down from 43% in 2022, affected by negative margins from digital currencies mining and lending activities[426]. Expenses and Impairments - Research and development expenses increased by $4.5 million, primarily for the development of ROI's BitNile metaverse platform[426]. - General and administrative expenses rose by $17.5 million, or 29%, to $77.8 million, mainly due to costs from new acquisitions and increased corporate aircraft usage[426]. - Microphase recognized a non-cash goodwill impairment charge of $3.2 million during the year ended December 31, 2023, due to a decline in sales[431]. - SMC also recognized a non-cash goodwill impairment charge of $3.2 million for the year ended December 31, 2022, following adverse changes in the business climate and a significant decline in sales[432]. - GIGA recorded a non-cash goodwill impairment charge of $9.9 million for the year ended December 31, 2022, attributed to a significant decline in sales and stock price[435]. - AVLP recognized an impairment charge of $14.0 million related to property and equipment as of December 31, 2023, with the estimated fair value of the property and equipment determined to be $0[435]. Cash Flow and Financial Position - The company reported net cash used in operating activities of $5.4 million for the year ended December 31, 2023, a significant decrease from net cash provided of $26.5 million in 2022[440]. - Net cash used in investing activities was $29.5 million for the year ended December 31, 2023, compared to $158.6 million in 2022, primarily due to capital expenditures for Bitcoin mining equipment[440]. - Net cash provided by financing activities was $37.0 million for the year ended December 31, 2023, down from $124.1 million in 2022, reflecting various stock offerings and debt payments[440]. - The company had cash and cash equivalents of $8.6 million as of December 31, 2023, an increase from $7.9 million at the end of 2022[438]. - Interest expense for the year ended December 31, 2023, was $36.6 million, slightly down from $37.3 million in 2022, with significant components including amortization of debt discount and contractual interest[438]. - The provision for income taxes was $0.3 million for the year ended December 31, 2023, compared to a benefit of $4.4 million in 2022, reflecting a change in the effective tax provision rate[438]. Asset Valuation and Impairment Reviews - The company reviews and evaluates the net carrying value of long-lived assets for impairment based on estimated undiscounted future cash flows and salvage value[444]. - Goodwill and indefinite-lived intangible asset impairment reviews involve estimating fair values using methods such as discounted projected future earnings or cash flow[444]. - Significant management judgment is required in estimating fair value, and actual results may differ materially from forecasts due to inherent subjectivity[444]. - If the carrying value of a reporting unit exceeds its estimated fair value, the excess is charged to earnings as an impairment loss, limited to the carrying amount of goodwill[444]. - The company continuously evaluates its estimates and judgments related to the fair value of financial instruments based on known trends and events[444].

Group 1 - Ault Alliance, Inc. announced the expansion of its subsidiary GuyCare, Inc.'s telemedicine initiative, aiming for nationwide service in all fifty states by the end of 2024, pending regulatory approvals [1] - Executive Chairman Milton "Todd" Ault III expressed support for the progress at GuyCare and RiskOn International, Inc. [1] - Ault Alliance is a diversified holding company focused on acquiring undervalued businesses and disruptive technologies with a global impact [2] Group 2 - Ault Alliance operates a data center for Bitcoin mining and offers colocation and hosting services for emerging artificial intelligence ecosystems [2] - The company provides mission-critical products across various industries, including metaverse platforms, oil exploration, defense/aerospace, and medical/biopharma [2] - Ault Alliance also extends credit to select entrepreneurial businesses through a licensed lending subsidiary [2]

Core Viewpoint - Ault Alliance, Inc. has terminated its at-the-market issuance sales agreement for common stock and will not utilize an ATM for sales in 2024 and the foreseeable future, while considering issuing non-convertible debt to fund operations until revenues can cover costs [1][3] Group 1: Company Strategy - The company plans to restructure ownership of its operating businesses to create a simpler and more efficient organizational structure, resulting in two reporting segments: Sentinum, Inc. for data center operations including bitcoin mining, and Ault Capital Group, Inc. for other entities [2] - The founder and Executive Chairman emphasized the strategic shift as a pivotal moment for the company, focusing on maximizing stockholder value and securing a robust financial future through streamlined operations and leveraging legacy investments [3] Group 2: Financial Position - Ault Alliance has accumulated a nearly $400 million asset base and aims to bridge the gap between its public valuation and the true value of its underlying assets [3] - The company intends to fuel the expansion of Sentinum and Ault Capital through strategic financing methods, including ongoing funding from Ault & Company, Inc. via Series C preferred stock investment [3] Group 3: Business Operations - Ault Alliance is a diversified holding company focused on acquiring undervalued businesses and disruptive technologies, operating a data center for bitcoin mining and offering colocation and hosting services for AI ecosystems [4] - The company provides mission-critical products across various industries, including metaverse platforms, oil exploration, defense/aerospace, and extends credit to select entrepreneurial businesses through a licensed lending subsidiary [4]