Financial Performance - Total revenue for the three months ended September 30, 2021, was $(30.79) million, compared to $5.68 million in the same period of 2020, indicating a significant decline [211]. - Gross profit for the third quarter of 2021 was $(36.07) million, a decrease from a gross profit of $1.94 million in Q3 2020 [211]. - The net loss attributable to Ault Global Holdings for the three months ended September 30, 2021, was $(42.87) million, compared to $(16.74) million in the same period of 2020 [211]. - The net loss for the three months ended September 30, 2021, was $42.8 million compared to a net loss of $16.7 million for the same period in 2020 [229]. - Total revenue for the nine months ended September 30, 2021, was $24.3 million, up from $16.7 million for the same period in 2020 [232]. - Total revenue increased by $27.9 million, or 194%, to $44.6 million for the nine months ended September 30, 2021, compared to $16.7 million for the same period in 2020 [234]. - Net income for the nine months ended September 30, 2021, was $1.4 million, a significant improvement from a net loss of $24.6 million for the same period in 2020 [252]. Revenue Sources - Cryptocurrency mining revenue for the same period was $272,000, while lending and trading activities resulted in a loss of $(38.87) million [211]. - Ault Alliance reported revenues from cryptocurrency mining operations of $238,000 for the three months ended September 30, 2021, compared to nil for the same period in 2020 [217]. - Revenues from lending and trading activities decreased to negative $38.9 million for the three months ended September 30, 2021, from negative revenues of $29,000 for the same period in 2020, reflecting significant unrealized losses [218]. - Cryptocurrency mining operations generated $619,000 in revenue for the nine months ended September 30, 2021, compared to nil in the prior year [237]. - Revenues from lending and trading activities increased to $19.6 million for the nine months ended September 30, 2021, from a loss of $27,000 in the prior year [238]. Expenses - Operating expenses totaled $13.81 million for Q3 2021, compared to $3.57 million in Q3 2020, reflecting a substantial increase [211]. - Research and development expenses increased by $55,000 to $524,000 for the three months ended September 30, 2021, due to costs related to defense product development [221]. - Selling and marketing expenses rose by $1.7 million, or 667%, to $2.0 million for the three months ended September 30, 2021, driven by increased personnel costs [222]. - General and administrative expenses increased by $8.5 million or 298% to $11.3 million for the three months ended September 30, 2021, primarily due to non-cash stock compensation and performance bonuses [223]. - Research and development expenses rose by $285,000 to $1.7 million for the nine months ended September 30, 2021, primarily for electric vehicle charger product development [242]. - Selling and marketing expenses surged by $3.8 million, or 431%, to $4.7 million for the nine months ended September 30, 2021, due to increased personnel costs [243]. - General and administrative expenses increased by $15.7 million, or 182%, to $24.4 million for the nine months ended September 30, 2021, driven by non-cash stock compensation and performance bonuses [244]. Investments and Acquisitions - Ault Global acquired a 617,000 square foot data center in Michigan for $3.9 million, enhancing its operational capacity [199]. - The company executed contracts to purchase 4,000 Bitcoin miners for a gross purchase price of $27.3 million, with 1,000 units received by September 30, 2021 [199]. - The company recorded an unrealized loss of $(27.4) million related to its investment in Alzamend common stock during the three months ended September 30, 2021 [204]. - Ault Global's investment in Alzamend Neuro, Inc. resulted in an unrealized gain of $3.8 million during the nine months ended September 30, 2021 [202]. - The company anticipates future growth through acquisitions and strategic investments in various industries, including defense and telecommunications [208]. Financing Activities - In 2021, the company raised net cash of $151.1 million from financing activities, compared to $7.1 million in the same period of 2020 [259]. - As of September 30, 2021, the company sold 34.7 million shares of common stock for gross proceeds of $160.5 million under the 2021 Sales Agreement [259]. - The company believes its current cash on hand is sufficient to meet operating and capital requirements for at least the next twelve months [260]. - The company provided loans to AVLP in the principal amount of $13,924,136, which includes 12% convertible promissory notes and warrants to purchase 27,858,272 shares of AVLP common stock [264]. - The fair value of the company's investments in AVLP was assessed using both market and income approaches, considering factors such as forecasted revenues and operating margins [264]. - The company evaluated the disruptive nature of AVLP's Multiplex Laser Surface Enhancement plasma-laser system in its discounted cash flow analysis [265]. - The company has an 8% Secured Promissory Note from Ault & Company, with a principal amount of $2.5 million due on February 25, 2022 [258]. - The company purchased the Executive Chairman's California residence for $2.7 million as part of a relocation benefit [258].

Financial Data and Key Metrics Changes - The company reported $62 million in revenue for Q2 2021, a significant increase from $5.4 million in the same period last year, primarily driven by Digital Power Lending and investments, particularly in Alzamend Neuro, which contributed $40.3 million to revenue [10][11][46] - Net income before taxes for the quarter was $44.6 million, with $40.3 million attributed to the increase in value of the investment in Alzamend, marking a substantial improvement from $2 million in Q1 [11][12] - The company has raised significant capital, resulting in positive working capital of approximately $128 million and total assets exceeding $250 million, including $105 million in cash and marketable securities [11][12][49] Business Line Data and Key Metrics Changes - Digital Power Lending was the primary driver of revenue growth, contributing $53 million, with Alzamend being a major factor in this increase [10][11] - Gresham Worldwide, Coolisys, and other subsidiaries showed strong performance, with Gresham generating $6.5 billion in revenue and Coolisys showing significant year-over-year growth [46][47] - The company is exploring IPO opportunities for Gresham and Coolisys, which could enhance their access to capital markets [22][24] Market Data and Key Metrics Changes - The company is optimistic about the small-cap market and its potential for future growth, particularly in the context of ongoing strong market demand [21] - The volatility in the market is acknowledged, particularly concerning the company's investments in public companies, which can affect reported earnings [15][18] Company Strategy and Development Direction - The company aims to grow its assets to $1 billion, with plans to allocate funds towards lending operations, real estate investments, and acquisitions of profitable or distressed companies [21][22] - There is a focus on building a strong balance sheet to support future acquisitions and investments, with a strategic emphasis on operational companies that can provide predictable revenue streams [49][62] - The company is committed to expanding its loan portfolio and investment strategies, hiring professionals to enhance its capabilities in these areas [35][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's current position, highlighting two consecutive profitable quarters excluding Alzamend's contributions, indicating strong operational execution across all business segments [14][15] - The management team is optimistic about the future prospects of Alzamend and other investments, emphasizing the potential for significant upside as these companies progress [41][42] - The ongoing challenges posed by COVID-19 are acknowledged, but management remains focused on executing their strategic plans and capitalizing on market opportunities [70][73] Other Important Information - The company has made significant progress in its data center operations, with expectations to ramp up crypto mining activities as infrastructure is completed [29][31] - The company is actively pursuing a strategic plan to take its subsidiaries public, which could enhance overall profitability and shareholder value [24][28] Q&A Session Summary Question: What are the future prospects for Alzamend? - Management is optimistic about Alzamend's potential, particularly regarding its drug AL001 and its implications for future revenue growth [41][42] Question: How does the company plan to manage volatility in reported earnings? - Management explained that fluctuations in the market value of investments must be reflected in earnings, leading to potential volatility, but they remain confident in the long-term value of their holdings [18][19] Question: What is the company's strategy for future acquisitions? - The company plans to leverage its strong balance sheet to pursue acquisitions of profitable companies, focusing on those that can provide stable cash flows [49][62]

Revenue Performance - Total revenue for the three months ended June 30, 2021, was $62.1 million, a significant increase of $56.7 million or 1050% compared to $5.4 million in the same period of 2020[196] - Revenue from cryptocurrency mining was $291,000, while revenue from lending and trading activities reached $53.3 million, marking a dramatic increase of 156788% compared to a loss of $34,000 in the prior year[196] - Total revenue for the six months ended June 30, 2021, was $75.4 million, a 585% increase from $11.0 million in the same period of 2020[218] - Revenue from lending and trading activities for the six months ended June 30, 2021, was $58.5 million, compared to $2,000 in the same period of 2020, marking a dramatic increase[219] - Revenues from lending and trading activities increased to $58.5 million for the six months ended June 30, 2021, compared to $2,000 for the same period in 2020, driven by significant capital allocation from recent equity financing[222] Profitability - Gross profit for the three months ended June 30, 2021, was $55.9 million, compared to $1.9 million in the same period of 2020[194] - Gross margins increased to 89.9% for Q2 2021, compared to 37.1% in Q2 2020, influenced by favorable margins from lending and trading activities[202] - Gross margins rose to 84.9% for the six months ended June 30, 2021, up from 33.2% in the same period of 2020, influenced by favorable margins from lending and trading activities[224] - Net income attributable to Ault Global Holdings for the three months ended June 30, 2021, was $42.2 million, compared to a net loss of $1.4 million in the same period of 2020[194] - Net income for Q2 2021 was $42.2 million, a significant improvement from a net loss of $1.4 million in Q2 2020[212] - Net income for the six months ended June 30, 2021, was $44.2 million, a significant improvement from a net loss of $7.9 million in the same period of 2020[234] Expenses - Operating expenses totaled $10.0 million for the three months ended June 30, 2021, compared to $2.7 million in the same period of 2020[194] - Research and development expenses rose by $69,000 to $531,000 for Q2 2021, primarily due to costs related to electric vehicle charger product development[203] - Selling and marketing expenses surged to $1.5 million for Q2 2021, up 410% from $295,000 in Q2 2020, driven by increased personnel costs and digital marketing efforts[204] - General and administrative expenses increased to $8.0 million for Q2 2021, compared to $2.9 million in Q2 2020, largely due to a $2.9 million performance bonus accrual and costs from the acquired Relec[205] - Research and development expenses increased by $230,000 to $1.1 million for the six months ended June 30, 2021, primarily due to costs related to electric vehicle charger product development[225] - Selling and marketing expenses surged to $2.7 million for the six months ended June 30, 2021, a 334% increase from $633,000 in the same period of 2020, attributed to increased personnel costs and digital marketing efforts[226] - General and administrative expenses rose to $13.1 million for the six months ended June 30, 2021, compared to $5.8 million in the same period of 2020, with a significant portion due to a $2.9 million performance bonus accrual[227] Cash Flow and Investments - Cash and cash equivalents increased to $105.4 million as of June 30, 2021, up from $18.7 million at December 31, 2020, primarily due to financing activities related to the 2021 ATM offering[236] - Net cash used in investing activities was $29.7 million for the six months ended June 30, 2021, compared to $152,000 for the same period in 2020, reflecting various acquisitions and investments[236] - Net cash provided by financing activities was $138.1 million for the six months ended June 30, 2021, compared to $3.6 million in the same period of 2020, mainly from proceeds of the 2021 ATM offering[239] Acquisitions and Investments - The company acquired a Michigan Cloud Data Center for $3.9 million, enhancing its operational capacity[183] - Ault Global invested $10 million in Alzamend Neuro, Inc., with a focus on achieving FDA approval for its lithium-based therapy[184] - Gresham Worldwide (GWW) revenues increased by $2.3 million or 55% to $6.5 million, including $1.7 million from the acquisition of Relec[197] - Coolisys revenues increased by $586,000 or 47% to $1.8 million, attributed to prior year disruptions due to COVID-19[198]

Revenue Growth - Total revenue for the three months ended March 31, 2021, increased by $7,639,195, or 136%, to $13,244,629 compared to $5,605,434 for the same period in 2020[198] - Revenue from cryptocurrency mining operations increased by $130,000, or 100%, as operations resumed due to improved business conditions[201] - Gresham Worldwide segment revenues increased by $2.0 million, or 45%, to $6.4 million, benefiting from capital allocated to the defense business[199] - Ault Alliance's revenue from lending and trading activities surged by $5,174,070, or 14,312%, to $5,210,222, compared to $36,152 in the prior year[198] - Revenues from lending and trading activities increased to $5.2 million for the three months ended March 31, 2021, from $36,000 for the same period in 2020, attributed to significant capital allocation from recent equity financing transactions[202] Profitability - Gross profit for the three months ended March 31, 2021, was $8,136,721, up from $1,751,999 in the same period of 2020[196] - Net income attributable to Ault Global Holdings for the three months ended March 31, 2021, was $1,997,381, compared to a net loss of $6,531,548 in the prior year[196] - Net income for the three months ended March 31, 2021, was $3.1 million compared to a net loss of $6.5 million for the same period in 2020, with net income available to common shareholders at $2.0 million[217] - Income from continuing operations was $1.2 million for the three months ended March 31, 2021, compared to an operating loss of $2.9 million for the same period in 2020[207] Expenses - Gross margins increased to 61.2% for the three months ended March 31, 2021, compared to 31.3% for the same period in 2020, with adjusted gross margins at 36.1% excluding lending and trading activities[203] - Engineering and product development expenses rose by $161,000 to $602,000 for the three months ended March 31, 2021, primarily due to costs related to electric vehicle charger product development[204] - Selling and marketing expenses increased by $903,000 or 267.1% to $1.2 million for the three months ended March 31, 2021, driven by higher personnel costs for sales and marketing[205] - General and administrative expenses increased to $5.1 million for the three months ended March 31, 2021, from $2.9 million in the same period in 2020, mainly due to higher consulting, audit, legal, and insurance costs[206] Cash Flow and Investments - Cash and cash equivalents increased to $107.8 million as of March 31, 2021, compared to $18.7 million at December 31, 2020, primarily due to financing activities related to the 2021 ATM offering[220] - Net cash used in investing activities was $16.7 million for the three months ended March 31, 2021, reflecting the acquisition of a Michigan Cloud Data Center for $3.9 million and investments in Alzamend Neuro, Inc. totaling $10 million[221] - Net cash provided by financing activities was $119.9 million for the three months ended March 31, 2021, primarily from proceeds of the 2021 ATM offering[223] Other Financial Activities - The company recognized a loss on extinguishment of debt amounting to $234,000 due to the issuance of common stock for debt conversion[186] - The acquisition of a Michigan Cloud Data Center was completed for a purchase price of $3.9 million, enhancing the company's operational capacity[186] - The company entered into a securities purchase agreement to invest $10 million in Alzamend Neuro, Inc., contingent on achieving specific milestones[187] - The company received forgiveness of a loan under the PPP in the principal amount of $715,000, aiding its financial position[189]

Financial Performance - Total revenue for the year ended December 31, 2020, increased by $1,509,283, or 7%, to $23,871,277 from $22,361,994 in 2019 [404]. - Gresham Worldwide (GWW) revenue increased by $2,980,878, or 20%, to $18,212,721 for the year ended December 31, 2020, compared to $15,231,843 in 2019 [406]. - Coolisys revenue decreased by $409,528, or 7%, to $5,416,138 for the year ended December 31, 2020, from $5,825,666 in 2019 [407]. - Revenue from cryptocurrency mining operations decreased by $641,745, or 100%, due to the cessation of operations in 2020 [407]. - Revenue from lending and investing activities decreased by $420,322, or 63%, to $242,418 for the year ended December 31, 2020, from $662,740 in 2019 [408]. - Gross margins increased to 31.5% for the year ended December 31, 2020, compared to 13.7% in 2019 [409]. - The net loss for the year ended December 31, 2020, was $32,728,629, compared to a net loss of $32,945,828 for the year ended December 31, 2019 [424]. Expenses - General and administrative expenses decreased by $2,997,325 to $12,526,855 for the year ended December 31, 2020, from $15,524,180 in 2019 [412]. - Engineering and product development expenses slightly decreased by $12,237 to $1,848,866 for the year ended December 31, 2020 [410]. - Selling and marketing expenses were $1,177,321 for the year ended December 31, 2020, a decrease of $232,675 from $1,409,996 in 2019 [411]. - Interest income decreased to $104,869 for the year ended December 31, 2020, from $3,351,226 for the year ended December 31, 2019, primarily due to the impaired status of the AVLP loan [416]. - Interest expense increased to $9,648,820 for the year ended December 31, 2020, compared to $7,261,857 for the year ended December 31, 2019, mainly due to increased amortization of debt discount [417]. - The company recognized a loss on extinguishment of debt of $18,706,488 for the year ended December 31, 2020, compared to $966,134 for the year ended December 31, 2019 [422]. Cash Flow and Financing - Cash and cash equivalents increased to $18,679,848 as of December 31, 2020, from $483,383 as of December 31, 2019, primarily due to financing activities [429]. - Net cash used in continuing operating activities totaled $11,182,225 for the year ended December 31, 2020, compared to $10,262,733 for the year ended December 31, 2019 [430]. - Net cash used in investing activities was $7,783,215 for the year ended December 31, 2020, compared to $2,851,055 for the year ended December 31, 2019, largely due to acquisitions [431]. - Net cash provided by financing activities was $37,283,639 for the year ended December 31, 2020, compared to $12,925,203 for the year ended December 31, 2019 [432]. - The Company entered into a sales agreement allowing for the sale of up to $125,000,000 in common stock, having sold 21,561,900 shares for gross proceeds of $124,983,305 as of February 22, 2021 [436]. - The Company believes its current cash on hand is sufficient to meet operating and capital requirements for at least the next twelve months [437]. Acquisitions and Investments - The company acquired a 617,000 square foot energy-efficient facility in southern Michigan for a purchase price of $3,991,497, paid using its own working capital [382]. - The acquisition of Relec Electronics Ltd. was completed for approximately £3,000,000 plus Relec's cash balance prior to closing [380]. - The company has provided loans to AVLP totaling $11,269,136, including 12% convertible promissory notes and warrants for 22,537,871 shares at an exercise price of $0.50 per share [439]. COVID-19 Impact - The company experienced a significant decrease in revenue due to COVID-19 disruptions, particularly affecting assembly operations at Microphase, leading to deferred order completion and delayed shipments [390]. - Microphase's production facility temporarily shut down for a week in December 2020 for deep cleaning after five employees tested positive for COVID-19, impacting revenue forecasts for December 2020 [390]. - The company has been following local health authority recommendations to minimize COVID-19 exposure risk, including remote work arrangements for employees [387]. - The company expects business to rebound and resume substantial growth in the second quarter of 2021 as orders increase to address deferred demand [395]. Corporate Structure and Forward-Looking Statements - The company reorganized its corporate structure to align various businesses by the products and services that constitute the majority of each subsidiary's revenues [375]. - The company has no obligation to update forward-looking statements unless required by law, highlighting the inherent uncertainties in predicting future performance [371]. Non-Cash Charges and Fair Value Assessment - The company recorded non-cash charges of $29,325,236 for the year ended December 31, 2020, compared to $11,435,682 for the year ended December 31, 2019 [426]. - Other comprehensive loss was $28,952,560 for the year ended December 31, 2020, compared to $34,538,451 for the year ended December 31, 2019 [428]. - The fair value of financial instruments is assessed using a three-tier hierarchy to maximize observable inputs and minimize unobservable inputs [438]. - The discounted cash flow analysis for AVLP's technology considered market size, customer demand, and performance capabilities of the MLSE system [440].

Revenue and Profitability - Total revenue for the three months ended September 30, 2020, was $5,675,564, an increase of $330,735 or 6.2% from $5,344,829 in the same period of 2019[260] - Gross profit for the three months ended September 30, 2020, was $1,939,482, compared to $996,068 for the same period in 2019[259] - Gross margins increased to 34.2% for the three months ended September 30, 2020, up from 18.6% in the same period of 2019[262] - Revenues increased by $584,670, or 3.6%, to $16,681,978 for the nine months ended September 30, 2020, from $16,097,308 for the same period in 2019[278] - Gross margins increased to 33.6% for the nine months ended September 30, 2020, compared to 16.5% for the same period in 2019[280] Losses and Expenses - Loss from continuing operations for the three months ended September 30, 2020, was $(16,734,356), compared to $(10,056,704) in the same period of 2019[259] - The company recorded a loss from continuing operations of $1,624,708 for the three months ended September 30, 2020, a significant improvement from an operating loss of $7,685,889 for the same period in 2019[266] - The company reported a net loss attributable to common stockholders of $24,651,764 for the nine months ended September 30, 2020, compared to a net loss of $21,090,795 for the same period in 2019[277] - Net loss for the nine months ended September 30, 2020, was $24,641,437, an increase from a net loss of $21,110,774 for the same period in 2019, with non-cash charges totaling $18,099,816[292] Cash Flow and Financing - Cash and cash equivalents increased to $1,274,408 as of September 30, 2020, compared to $483,383 at December 31, 2019, primarily due to financing activities[295] - Net cash used in continuing operating activities decreased to $5,355,228 for the nine months ended September 30, 2020, from $8,320,953 for the same period in 2019, reflecting improved operating results[297] - Net cash used in investing activities was $893,978 for the nine months ended September 30, 2020, down from $2,674,446 for the same period in 2019, attributed to decreased related party investments[298] - Net cash provided by financing activities was $7,054,414 for the nine months ended September 30, 2020, compared to $11,083,232 for the same period in 2019, primarily from notes payable and short-term advances[298] - The company expects to continue incurring losses and will need to raise additional capital to support working capital requirements, with potential measures to reduce costs if unable to secure funding[301] Operational Changes - The company ceased operations at Digital Farms due to deteriorating business conditions in the cryptocurrency mining sector, resulting in no revenue from cryptocurrency operations during the three months ended September 30, 2020[261] - Engineering and product development expenses decreased to $468,838 for the three months ended September 30, 2020, from $481,902 in the same period of 2019[263] - Selling and marketing expenses decreased by $71,458, or 21.6%, to $259,649 for the three months ended September 30, 2020, compared to $331,107 for the same period in 2019[264] - General and administrative expenses decreased by $718,103, or 20.2%, to $2,835,940 for the three months ended September 30, 2020, compared to $3,554,043 for the same period in 2019[265] - General and administrative expenses decreased by $2,910,339, or 25.2%, to $8,656,841 for the nine months ended September 30, 2020, compared to $11,567,180 for the same period in 2019[283] Interest Income and Expense - Interest income for the three months ended September 30, 2020, was $102,397, down from $898,646 in the same period of 2019[259] - Interest income decreased by $796,249, or 88.6%, to $102,397 for the three months ended September 30, 2020, compared to $898,646 for the same period in 2019[267] - Interest expense decreased to $(2,365,741) for the three months ended September 30, 2020, compared to $(2,954,843) in the same period of 2019[259] - Interest expense decreased by $589,102, or 19.9%, to $2,365,741 for the three months ended September 30, 2020, compared to $2,954,843 for the same period in 2019[268] - Interest expense decreased to $4,414,618 for the nine months ended September 30, 2020, down from $5,585,850 for the same period in 2019, primarily due to reduced amortization of debt discount[286] Other Comprehensive Income - Other comprehensive income was $1,072,181 for the nine months ended September 30, 2020, compared to a loss of $1,253,990 for the same period in 2019, mainly due to unrealized gains in warrant derivative securities[294] Capital Raising - The company has raised capital through various means, including a Master Exchange Agreement with Esousa, which involved approximately $4.2 million in principal amount of promissory notes[299] - The company anticipates returning value to shareholders after satisfying debt obligations and working capital needs[254] - The company is focused on managing and financially supporting existing subsidiaries to maximize shareholder value through various monetization opportunities[254]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q þ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2020 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________ to ________. Commission file number 1-12711 DPW HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q þ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2020 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________ to ________. Commission file number 1-12711 DPW HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 94-1721931 (State or other jurisdict ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2019 Commission file number 1-12711 DPW HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 94-1721931 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) Securities registered under Section 12(b) of the Act: Securities register ...

Revenue Performance - Total revenue decreased by $1,963,259, or 23.5%, to $6,381,663 for the three months ended September 30, 2019, compared to $8,344,922 for the same period in 2018[230] - Revenue from cryptocurrency mining decreased by $282,993 due to a reduction in active miners from 1,512 to 978 and increased difficulty in mining[231] - Revenue from restaurant operations decreased by $548,057, primarily due to construction projects affecting access to locations and increased competition[233] - Total revenue for the nine months ended September 30, 2019, decreased by $1,515,830, or 7.2%, to $19,468,773 from $20,984,603 for the same period in 2018[253] Profitability and Loss - Net loss attributable to DPW Holdings was $10,340,851 for the three months ended September 30, 2019, compared to a net loss of $7,449,971 for the same period in 2018[227] - Basic and diluted net loss per common share was $(6.47) for the three months ended September 30, 2019, compared to $(88.23) for the same period in 2018[227] - The company recorded an operating loss of $7,970,036 for the three months ended September 30, 2019, compared to an operating loss of $4,187,845 for the same period in 2018, representing an increase in operating loss of approximately 90%[241] - Net loss for the three months ended September 30, 2019, was $10,340,851, compared to a net loss of $7,524,385 for the same period in 2018, indicating an increase in net loss of approximately 37%[246] - Operating loss increased to $16,476,978 for the nine months ended September 30, 2019, compared to $11,255,164 for the same period in 2018[264] - The net loss for the nine months ended September 30, 2019, was $21,110,774, slightly higher than the net loss of $20,616,868 for the same period in 2018[270] Expenses - Gross margin increased to 27.3% for the three months ended September 30, 2019, compared to 24.3% for the same period in 2018[234] - Engineering and product development expenses increased by $148,347 to $481,902 for the three months ended September 30, 2019, attributed to increased spending at Enertec[237] - Selling and marketing expenses decreased by $397,878 to $392,725 for the three months ended September 30, 2019, due to a reduction in sales and marketing personnel[238] - General and administrative expenses decreased by $568,671 to $4,519,641 for the three months ended September 30, 2019, mainly due to lower stock compensation and legal fees[239] - General and administrative expenses increased by $1,886,849 to $14,584,758 for the nine months ended September 30, 2019, primarily due to acquisitions of Enertec and I.AM[262] - Engineering and product development expenses increased by $364,855 to $1,408,848 for the nine months ended September 30, 2019, attributed to the acquisition of Enertec[259] Cash Flow and Financing - Net cash used in operating activities totaled $8,377,278 for the nine months ended September 30, 2019, a decrease from $9,430,055 in the prior year[274] - Net cash used in investing activities was $2,686,506 for the nine months ended September 30, 2019, significantly lower than $19,915,693 for the same period in 2018[276] - The company raised $11,083,232 from financing activities for the nine months ended September 30, 2019, compared to $28,791,362 in the previous year[276] - The company anticipates continuing to incur losses and will need to raise additional capital to support working capital requirements[281] Other Financial Metrics - Interest income increased to $898,646 for the three months ended September 30, 2019, compared to $712,262 for the same period in 2018, reflecting an increase of approximately 26%[242] - Interest expense decreased to $2,954,843 for the three months ended September 30, 2019, from $4,072,539 for the same period in 2018, a reduction of approximately 27.5%[243] - Other comprehensive loss was $11,431,449 for the three months ended September 30, 2019, compared to $8,869,634 for the same period in 2018, indicating an increase of approximately 29%[248] - The fair value of the warrants issued in the Offering decreased by $165,840 during the three months ended September 30, 2019[245] - Interest income rose to $2,647,110 for the nine months ended September 30, 2019, up from $1,955,885 in the prior year[265] - Interest expense decreased to $5,586,639 for the nine months ended September 30, 2019, compared to $11,335,069 for the same period in 2018[266] Asset Impairment - Asset impairment charges of $4,315,856 were recognized during the three months ended September 30, 2019, related to impairments of cryptocurrency equipment[240] - The company recognized asset impairment charges of $4,315,856 related to cryptocurrency equipment during the nine months ended September 30, 2019[263]