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]

LAS VEGAS--(BUSINESS WIRE)--Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), announced today that its wholly owned subsidiary, Sentinum, Inc. (“Sentinum”) mined approximately 103 Bitcoin in February 2024. Of this total, approximately 52 Bitcoin were mined at Sentinum’s data center in Michigan, with the remaining approximately 51 Bitcoin from mining machines hosted with Core Scientific, Inc. The February 2024 mining run rate of approximately $7.4 m ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ___________________________________________________________________ Date of Report (Date of earliest event reported): February 27, 2024 AULT ALLIANCE, INC. (Exact name of registrant as specified in its charter) Delaware 001-12711 94-1721931 (State or other jurisdiction of incorporati ...

LAS VEGAS--(BUSINESS WIRE)--Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), today announced its preliminary financial results for the twelve-month period ended December 31, 2023. Full year 2023 highlights include: Preliminary revenue for the year ended December 31, 2023 increased by $35.4 million, or 30%, to a record $153.0 million, from $117.6 million for the year ended December 31, 2022; Revenue excludes results from discontinued operation ...

LAS VEGAS--(BUSINESS WIRE)--Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), today announced strategic plans for the data centers of its wholly owned subsidiary Sentinum, Inc. (“Sentinum”). The Company plans to relocate, when possible, its Bitcoin mining operations to the Montana data center and to focus its Michigan facility solely on artificial intelligence (“AI”) hyperscale development. To support these plans, the Company is targeting to expand ...

Core Viewpoint - Ault Alliance, Inc. plans to initiate a stock repurchase program authorized by its Board of Directors, with an anticipated start date following the filing of its Form 10-Q for the quarter ending March 31, 2024 [1][2]. Group 1: Stock Repurchase Program Details - The Board has authorized the repurchase of up to $50 million of common stock, which may be executed through various methods, including open market repurchases [2]. - A Rule 10b5-1 Plan will be established to facilitate the repurchases, allowing the company to trade during periods when it would otherwise be restricted due to insider trading laws or other regulations [2][3]. - The repurchase program is set to expire on December 15, 2024, but can be modified or discontinued at the company's discretion [3]. Group 2: Financial Considerations - The timing and number of shares repurchased will depend on factors such as Board approval, available financing, cash position, stock price, trading volume, and market conditions [3]. - The company intends to finance the repurchases through excess cash flow from operations and proceeds from future borrowing arrangements [3]. Group 3: Management's Perspective - The company's management views the repurchase program as a prudent use of capital, believing that the common stock is currently undervalued [4]. - Previous methods to buy back common stock were explored, but the current repurchase program is considered the most efficient approach [4]. Group 4: Company Overview - Ault Alliance, Inc. is a diversified holding company focused on acquiring undervalued businesses and disruptive technologies, operating in various sectors including data centers, Bitcoin mining, and artificial intelligence [5].

LAS VEGAS--(BUSINESS WIRE)--Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), announced today it has determined not to pursue new acquisitions during 2024, though it may continue to make strategic investments. Given the Company’s concentration on maximizing the value of its existing assets, it has taken proactive steps to reduce its total headcount, which are expected to save more than $2 million in payroll expenses for 2024. This strategic shif ...