Financial Results - Greenidge Generation Holdings Inc. reported preliminary financial results for the fiscal quarter ended March 31, 2024[6]. - The financial results are unaudited and preliminary, lacking comprehensive details on the company's financial condition[7]. - The company has not disclosed specific financial figures in this report[6]. Company Classification - The company is classified as an emerging growth company under the Securities Exchange Act[4]. Investor Presentation - The investor presentation for the Planet MicroCap Showcase: Vegas 2024 will be available online, highlighting key financial metrics[8]. - The press release and investor presentation are filed as exhibits to the current report[12]. Forward-Looking Statements - The report includes forward-looking statements regarding the company's future performance and potential risks[10]. Operational Considerations - The company emphasizes the importance of maintaining power and hosting arrangements on acceptable terms for its operations[10]. - The company is focused on expanding its business and integrating acquired assets effectively[10]. Risk Factors - Fluctuations in the price of bitcoin and other cryptocurrencies are noted as a significant risk factor affecting the company's profitability[10].

Financial Performance and Risks - The company experienced recurring operating losses in prior years, with net losses reported in both 2023 and 2022[143]. - The company faces significant uncertainty regarding its ability to continue as a going concern due to financial condition doubts[132]. - Future capital raises may not be obtainable on favorable terms, potentially impairing growth and operations[134]. - The profitability of the company's hosting arrangement with NYDIG is critical to its financial performance[138]. - The company's revenues from cryptocurrency datacenter operations are significantly dependent on the price of bitcoin, which has historically been volatile[176]. - The company has a coal combustion residual liability of $17.3 million and an environmental liability of $12.9 million as of December 31, 2023, which could impact financial condition[163]. - The company may incur significant costs to comply with evolving environmental regulations, which could adversely affect results of operations[164]. - The company may face challenges in acquiring additional cryptocurrency datacenter companies due to increased competition and regulatory changes[151]. - The company may need to raise additional capital to respond to competitive pressures and meet operational needs[133]. - The company has never declared or paid cash dividends on its Class A common stock and does not anticipate doing so in the foreseeable future[293]. Market and Competitive Environment - The price of bitcoin has recovered significantly in Q4 2023 and Q1 2024, but future price volatility remains uncertain[132]. - The next bitcoin halving is scheduled for April 2024, which may reduce mining rewards and impact revenue[148]. - The company is substantially dependent on a single hosting services customer, exposing it to significant counterparty nonperformance risk[140]. - The company faces significant competition in the bitcoin industry from well-established competitors with greater financial resources, impacting its ability to expand and improve operations[173]. - The approval of spot bitcoin exchange-traded products by the SEC in January 2024 has led to billions of dollars in inflows, increasing competition for the company[174]. - Geopolitical events and economic crises may lead to increased volatility in bitcoin prices, impacting the company's financial results[241]. - The emergence of alternative cryptocurrencies could reduce bitcoin's market share and value, negatively affecting the company's revenue from bitcoin mining[254]. Operational Challenges - The company has a limited operating history, having begun bitcoin mining in May 2019, and is subject to the risks of a new business[141]. - The company is developing new datacenter sites and expanding existing locations, but any disruption may delay hosting services and adversely affect financial performance[150]. - The company relies on a single natural gas power generation facility in New York, which supports the majority of its operations, making it vulnerable to disruptions[170]. - The company relies on third-party facilities for hosting bitcoin miners, exposing it to risks related to operational control and security[182]. - The company may face challenges in acquiring new bitcoin mining hardware due to global supply chain issues and rising costs, impacting its expansion plans[184]. - Operational disruptions may lead to increased costs and negatively impact the cryptocurrency datacenter operations due to reduced power supply[197]. - Maintenance and unexpected outages at power generation facilities pose significant risks, potentially resulting in reduced profitability and increased capital expenditures[195]. Regulatory and Compliance Issues - The regulatory environment is evolving, with potential new laws affecting cryptocurrency mining and energy regulations that could impact operations[203]. - The company may face increased scrutiny regarding its ESG policies, which could hinder access to capital and affect its reputation[212]. - The company may incur significant costs due to compliance with new emissions control requirements from the EPA, impacting its financial performance[209]. - Regulatory scrutiny from U.S. agencies may result in new compliance costs and operational changes for the company[238]. - The SEC currently does not classify bitcoin as an investment security, but changes in regulations could require the company to register as an investment company if bitcoin holdings exceed 40% of total assets[220]. Management and Governance - The company has experienced significant turnover in its senior management team, which may create instability and affect operations[156]. - The company has established anti-takeover provisions that may delay or prevent changes in control or management[294]. - The dual class structure of common stock concentrates voting power with Atlas, potentially depressing the market value of Class A common stock[275]. - As of April 5, 2024, Atlas and its affiliates control 78.0% of the voting power, qualifying the Company as a "controlled company" under Nasdaq's corporate governance standards[273]. Stock and Market Dynamics - The Class A common stock was subject to Nasdaq delisting proceedings due to a bid price below $1.00 per share, but compliance was regained through a 1-for-10 reverse stock split effective May 16, 2023[268]. - The market price of Class A common stock has historically tracked the price of bitcoin, which has seen increased inflows due to new spot bitcoin exchange-traded products[286]. - The issuance of additional shares could dilute existing shareholders and negatively affect the stock price[279]. - The market price of Class A common stock may be volatile and influenced by factors beyond the Company's control, including overall market sentiment towards cryptocurrency[287]. - The company’s stock may experience less active trading or more price volatility due to ongoing public reporting requirements that are less rigorous than those for larger public companies[292]. Environmental and Cybersecurity Risks - Cybersecurity threats, including phishing and ransomware attacks, pose risks to the company's operations and financial condition[160]. - The company faces substantial environmental regulatory compliance costs, which could materially affect its financial condition[207]. - Changes in environmental regulations may require significant capital investments for compliance, impacting operational costs and profitability[209]. - The physical risks of climate change could disrupt operations and increase costs related to materials and energy supply[214].

Cryptocurrency Operations - Greenidge's cryptocurrency datacenter operations consist of approximately 42,300 miners with a combined capacity of 4.6 EH/s, which will reduce to approximately 27,900 miners and 2.9 EH/s following the sale of the South Carolina Facility[122][124]. - The company generated revenue from three primary sources: datacenter hosting, cryptocurrency mining, and power and capacity[120]. - Greenidge's hosting agreements include a contract with Conifex Timber Inc. to host 750 miners and an agreement with Core Scientific, Inc. to host approximately 6,900 miners[128]. - The company has classified the Support.com business as held for sale and discontinued operations to focus on cryptocurrency datacenter and power generation operations[133]. Financial Performance - Datacenter hosting revenue for Q3 2023 was $12.1 million, a significant increase from $0 in Q3 2022[141]. - Cryptocurrency mining revenue decreased by $11.7 million, or 64%, to $6.6 million, primarily due to increased mining difficulty and the transition to hosting[142]. - Total revenue for Q3 2023 was $20.9 million, down 5% from $21.9 million in Q3 2022[137]. - Total operating costs and expenses decreased by $9.5 million, or 23%, to $31 million in Q3 2023 compared to $40.5 million in Q3 2022[145]. - Operating loss for Q3 2023 was $10.1 million, an improvement of $8.5 million from the operating loss of $18.6 million in Q3 2022[149]. - Adjusted net loss from continuing operations was $6.9 million, a reduction of 70% compared to $23 million in Q3 2022[146]. - Net loss from continuing operations was $13.2 million for Q3 2023, a 45% improvement compared to a net loss of $23.9 million in Q3 2022[153]. - Total revenue decreased by $23.2 million, or 31%, to $50.7 million compared to $73.9 million in the prior year[165]. - Net loss from continuing operations was $31.8 million, a reduction of $102.9 million, or 76%, compared to a loss of $134.7 million in the previous year[165]. Debt and Cash Flow - The sale of the South Carolina Facility to NYDIG was completed on November 9, 2023, for total consideration of approximately $28 million[124]. - Following the sale, Greenidge expects a cash inflow of $3.5 million from the return of its security deposit held by the local utility[125]. - The restructuring of NYDIG debt reduced the principal and accrued interest from $75.8 million to $17.3 million, achieving an aggregate debt reduction of $58.5 million[129]. - The Senior Secured Loan with NYDIG requires only $2.0 million in interest payments for 2023, significantly lower than the $62.7 million that would have been required under previous agreements[130]. - The company anticipates cash resources will be depleted by the end of Q1 2024, requiring additional capital to fund expenses and support working capital needs[202]. - Cash, restricted cash, and cash equivalents totaled $10.7 million as of September 30, 2023[191]. Operational Efficiency - Greenidge's New York Facility benefits from lower natural gas prices due to access to the Millennium Gas Pipeline price hub, enhancing operational efficiency[121]. - Average bitcoin price increased by 32% to $28,086 in Q3 2023 compared to $21,269 in Q3 2022[142]. - Average active hash rate for company-owned miners decreased by 50% to 1,069,816 EH/s compared to 2,149,893 EH/s in the prior period[137]. - The adjusted operating margin improved to -18.4% in Q3 2023 from -80.7% in Q3 2022[161]. Environmental Liabilities - As of September 30, 2023, the company recorded environmental liabilities of $29.4 million for remediation of coal ash pond and landfill sites[227]. - The company has recorded environmental liabilities that are both probable and estimable, with costs subject to change based on various factors[227]. - During the nine months ended September 30, 2023, the company recognized a charge of $1.6 million for the remeasurement of an environmental liability[227]. Impairment and Valuation - The company recognized a noncash impairment charge of $176.3 million for the year ended December 31, 2022, due to the carrying value exceeding the fair value of long-lived assets[223]. - An impairment charge of $4 million was recorded for the three-month period ending September 30, 2023, related to the remaining value of a building classified as Held for Sale[226]. - The fair value of the asset group was estimated to be within an approximate 15% to 20% range based on different valuation approaches[224]. Future Outlook - The company is evaluating future uses of remaining real estate assets in South Carolina, including land and a building not used for cryptocurrency mining[225]. - The company installed approximately 1,500 additional company-owned miners at existing facilities, which is expected to improve profits and liquidity for the remainder of 2023[196]. - The company completed an electrical upgrade at its South Carolina facility, increasing capacity to 44 MW, and amended NYDIG Hosting Agreements to increase the number of miners hosted[197].

Operations and Capacity - Greenidge operates cryptocurrency datacenter facilities in New York and South Carolina, with a combined capacity of approximately 106 MW[109]. - The company has approximately 38,700 miners with a total capacity of 4.1 EH/s, including 28,500 miners for datacenter hosting and 10,200 miners for cryptocurrency mining[111]. - An electrical upgrade at the South Carolina facility increased capacity to 44 MW, supporting approximately 8,500 additional miners[118]. - The hosting agreements with NYDIG affiliates allow Greenidge to operate as a hosting facility, covering most of its current mining capacity[117]. - The company installed approximately 1,500 additional miners at existing facilities, which is expected to enhance profits and liquidity in 2023 and beyond[185]. Financial Performance - Total revenue decreased by $8.22 million, or 36%, to $14.71 million in Q2 2023 compared to $22.93 million in Q2 2022[125]. - Cryptocurrency mining revenue fell by $16.09 million, or 80%, to $3.98 million, attributed to a 67% increase in global bitcoin mining difficulty and a 64% decrease in average hash rate[130]. - Power and capacity revenue decreased by $1.79 million, or 63%, to $1.07 million, impacted by a 56% lower price per MWh sold and a 15% decrease in volume[132]. - Datacenter hosting revenue for Q2 2023 was $9.66 million, with no revenue in the same period of 2022, representing a significant transition to hosting operations[129]. - Total revenue for the six months ended June 30, 2023, was $29.9 million, down $22.2 million, or 43%, from $52.1 million in 2022[152]. Debt and Liquidity - A debt reduction of $58.5 million was achieved, lowering the secured debt with NYDIG from $75.8 million to $17.3 million[113]. - The restructuring of NYDIG debt is expected to improve liquidity, with 2023 interest payments reduced to $2.0 million compared to $62.7 million previously required[115]. - The company anticipates receiving approximately $4.9 million in cash upon closing a transaction with NYDIG, along with potential bonus payments of up to $2.6 million[121]. - The minimum cash requirement was reduced from $10 million to $6 million under a Limited Waiver, contingent on the sale of the South Carolina facility by December 29, 2023[189]. Operating Costs and Losses - Total operating costs and expenses dropped by $88.30 million, or 81%, to $21.35 million, primarily due to the absence of impairment charges from long-lived assets[125]. - Net loss from continuing operations improved to $9.75 million in Q2 2023, compared to a loss of $109.04 million in Q2 2022, reflecting a reduction of $99.28 million, or 91%[125]. - Adjusted operating loss from continuing operations was $6.10 million, an increase of $1.45 million, or 31%, compared to the prior year[125]. - EBITDA loss from continuing operations improved to $3.48 million, a reduction of $78.69 million, or 96%, from the previous year[125]. - The operating loss from continuing operations was $12.3 million for the six months ended June 30, 2023, an improvement of $73.2 million compared to an operating loss of $85.5 million in the same period in 2022[166]. Market Conditions and Challenges - Average bitcoin price decreased by 14% to $28,038 in Q2 2023, while total bitcoins produced increased by 8% to 670[125]. - The average active hash rate for company-owned miners decreased by 64% to 577,090 EH/s, reflecting the sale of miners and transition to hosting services[128]. - Cryptocurrency mining revenue decreased by $32.9 million, or 76%, to $10.4 million, attributed to a 59% increase in bitcoin mining difficulty and a 31% decrease in average bitcoin price[158]. Discontinued Operations - The company has classified the Support.com business as discontinued operations, focusing solely on cryptocurrency datacenter and power generation[120]. - Income from discontinued operations decreased by $1.3 million, or 114%, resulting in a loss of $0.3 million for the three months ended June 30, 2023[142]. - Income from discontinued operations decreased by $2.1 million, or 85%, to $0.4 million for the six months ended June 30, 2023, primarily due to lower operating income from the loss of the largest customer[173]. Tax and Regulatory Matters - The effective tax rate for the three months ended June 30, 2023 was 0%, lower than the statutory rate of 21% due to a full valuation allowance on deferred tax assets[139]. - The effective tax rate for the six months ended June 30, 2023, was 0%, lower than the statutory rate of 21%, due to a full valuation allowance on deferred tax assets[170]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to rely on exemptions from certain disclosure requirements[209]. - The company has elected to take advantage of the extended transition period for complying with new or revised accounting standards, which may affect comparability with other companies[211].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Class A Common Stock, $0.0001 par value | GR ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission File Number 001-40808 ________________________________ Washington, D.C. 20549 ________________________________ Greenidge Generation Holdings Inc. FORM 10-K ________________________________ (Exact name of Registrant as specified in its Charter) ________________________________ (Mark One) Delaware 86-1746728 (State or other jurisdiction of x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 Delaware 86-1746728 (I.R.S. Employer Identification No.) Registrant's telephone number, including area code: (203) 718-5960 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

Greenidge Generation Holdings Inc. (NASDAQ:GREE) Q2 2022 Earnings Conference Call August 15, 2022 5:00 PM ET Company Participants Tom Champion - VP of Investor Relations and Business Development Jeff Kirt - Chief Executive Officer Bob Loughran - Chief Financial Officer Terence Burke - General Counsel Operator Good afternoon. I'm Tom Champion from Greenidg Generation Investor Relations, and thank you for joining us. Today, the company issued a press release announcing our second quarter 2022 financial result ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR 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: 001-40808 Greenidge Generation Holdings Inc. (Exact Name of Registrant as Specified in its C ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2022, highlighting significant asset and revenue growth from cryptocurrency mining expansion, despite a net loss [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets increased to $431.4 million from $341.3 million, driven by property and equipment, while total liabilities grew to $215.3 million due to increased long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $113,726 | $100,602 | | Cash and cash equivalents | $96,453 | $82,599 | | **Property and equipment, net** | $292,051 | $217,091 | | **Total Assets** | **$431,354** | **$341,267** | | **Total Current Liabilities** | $100,244 | $41,726 | | Long-term debt, current portion | $66,729 | $19,577 | | **Total Liabilities** | **$215,302** | **$128,844** | | **Total Stockholders' Equity** | **$216,052** | **$212,423** | [Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) Total revenue for Q1 2022 surged to $37.7 million from $11.1 million in Q1 2021, driven by cryptocurrency datacenter expansion and the Support.com acquisition, yet resulted in a net loss of $0.4 million due to higher operating costs Q1 2022 vs Q1 2021 Statement of Operations (in thousands, except per share data) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Total Revenue** | **$37,655** | **$11,063** | | Cryptocurrency datacenter Revenue | $23,232 | $8,997 | | Power and capacity Revenue | $5,923 | $2,066 | | Services and other Revenue | $8,500 | $- | | **Income from operations** | $2,522 | $1,885 | | **Net (Loss) Income** | **($429)** | **$1,279** | | **Basic (Loss) Earnings Per Share** | **($0.01)** | **$0.02** | | **Diluted (Loss) Earnings Per Share** | **($0.01)** | **$0.02** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased from $212.4 million to $216.1 million in Q1 2022, primarily due to common stock issuance proceeds and stock-based compensation, partially offset by a net loss - During Q1 2022, the company issued **415,000** shares of common stock, resulting in net proceeds of **$3.8 million**[14](index=14&type=chunk) - The net loss for the quarter was **$429,000**, which reduced the accumulated deficit[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2022, net cash from operating activities was $6.3 million, while investing activities used $70.6 million for property and equipment, and financing activities provided $78.2 million, leading to a $13.9 million increase in cash Q1 2022 vs Q1 2021 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $6,330 | $2,487 | | **Net cash used in investing activities** | ($70,639) | ($5,667) | | *Purchases of property and equipment* | *($71,135)* | *($5,667)* | | **Net cash provided by financing activities** | $78,163 | $37,294 | | *Proceeds from debt, net* | *$80,371* | *$-* | | **Change in Cash and Cash Equivalents** | **$13,854** | **$34,114** | | **Cash and Cash Equivalents - End of Period** | **$96,453** | **$39,166** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's business structure, accounting policies, and financial activities, highlighting the Support.com merger, increased debt for miner purchases, and significant future commitments - The company operates a vertically integrated cryptocurrency datacenter and a **106 MW** power generation facility in New York, and another datacenter in South Carolina[16](index=16&type=chunk) - The acquired Support.com business contributed **$8.5 million** in revenue and **$1.5 million** of operating income for Q1 2022[26](index=26&type=chunk) - As of March 31, 2022, the company had entered into agreements to purchase miners totaling **$197.0 million**, with **$135.3 million** already paid as deposits[65](index=65&type=chunk) - In March 2022, the company entered into new financing agreements totaling approximately **$107.5 million** (**$81 million** from NYDIG and **$26.5 million** from B. Riley) to fund miner acquisitions and other purposes[39](index=39&type=chunk)[41](index=41&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022's significant revenue growth, driven by increased hash rate and the Support.com acquisition, which was offset by rising operating costs and natural gas prices, leading to a net loss despite bolstered liquidity from new debt financing [Overview and Miner Fleet Growth](index=18&type=section&id=Overview%20and%20Miner%20Fleet%20Growth) The company operates vertically integrated cryptocurrency datacenters, with 1.6 EH/s capacity from 19,400 miners as of March 31, 2022, and an additional 3.1 EH/s from 29,600 miners on order, while facing volatile natural gas prices - As of March 31, 2022, the company had approximately **19,400** miners with a capacity of **1.6 EH/s**[87](index=87&type=chunk) - The company has ordered an additional **29,600** miners from Bitmain, which are expected to add approximately **3.1 EH/s** in capacity[87](index=87&type=chunk) - The company is exposed to volatility in natural gas prices, which have been on an upward trajectory and are expected to remain elevated in **2022**[84](index=84&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Total revenue for Q1 2022 increased by 240.4% to $37.7 million, driven by cryptocurrency datacenter growth and the new Services segment, but a 261.1% rise in cost of revenue and 345.7% increase in SG&A led to a net loss of $0.4 million Q1 2022 vs Q1 2021 Key Operational Results (in thousands) | Metric | Q1 2022 | Q1 2021 | Variance | | :--- | :--- | :--- | :--- | | **Total revenue** | **$37,655** | **$11,063** | **240.4%** | | Cost of revenue (ex-D&A) | $16,550 | $4,583 | 261.1% | | Selling, general and administrative | $14,392 | $3,229 | 345.7% | | Income from operations | $2,522 | $1,885 | 33.8% | | **Net (loss) income** | **($429)** | **$1,279** | **-133.5%** | - The increase in cost of revenue was primarily due to an approximately **83%** year-over-year rise in natural gas cost per dekatherm[93](index=93&type=chunk) - SG&A expenses increased by **$11.2 million**, driven by public company operating costs, corporate infrastructure growth, and **$2.1 million** in expansion assessment costs[95](index=95&type=chunk) [Segment Discussion](index=21&type=section&id=Segment%20Discussion) The Cryptocurrency Datacenter and Power Generation segment saw revenue grow 164% to $29.2 million and Adjusted EBITDA increase 74% to $7.3 million, while the new Support Services segment contributed $8.5 million in revenue and $1.9 million in Adjusted EBITDA Segment Performance Q1 2022 vs Q1 2021 (in thousands) | Segment | Revenue Q1 2022 | Revenue Q1 2021 | Adjusted EBITDA Q1 2022 | Adjusted EBITDA Q1 2021 | | :--- | :--- | :--- | :--- | :--- | | Cryptocurrency Datacenter & Power Generation | $29,155 | $11,063 | $7,344 | $4,221 | | Support Services | $8,500 | $- | $1,869 | $- | | **Total** | **$37,655** | **$11,063** | **$9,213** | **$4,221** | - The Cryptocurrency segment produced **561 bitcoins** in Q1 2022, up from **213** in Q1 2021, due to a **267.3%** increase in average hash rate[109](index=109&type=chunk)[110](index=110&type=chunk) - Power and capacity revenue increased **186.7%** due to higher wholesale electricity prices and increased sales volume to the NYISO grid, particularly during a cold January[111](index=111&type=chunk) [Non-GAAP Measures and Reconciliations](index=24&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) This section reconciles non-GAAP financial measures, showing Q1 2022 Adjusted EBITDA at $9.2 million (up from $4.2 million in Q1 2021) and Adjusted Net Income at $1.3 million, with adjustments primarily for merger, expansion, and stock-based compensation costs Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (in thousands) | Line Item | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Net (loss) income** | **($429)** | **$1,279** | | (Benefit) provision for income taxes | (368) | 732 | | Interest expense, net | 3,353 | 188 | | Depreciation and amortization | 3,978 | 1,261 | | **EBITDA** | **$6,534** | **$3,460** | | Stock-based compensation | 362 | 656 | | Merger and other costs | 213 | 105 | | Expansion costs | 2,104 | - | | **Adjusted EBITDA** | **$9,213** | **$4,221** | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, the company held $96.5 million in cash, with liquidity bolstered by $81 million in new debt, facing $310.1 million in contractual commitments, including $220.6 million in debt and $61.3 million for miner purchases - In Q1 2022, the company obtained approximately **$108 million** of additional committed financings, with **$81 million** funded in March[123](index=123&type=chunk) Contractual Obligations and Commitments as of March 31, 2022 (in thousands) | Commitment | Total | Remainder of 2022 | 2023-2024 | 2025-2026 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | Debt payments | $220,627 | $66,036 | $70,117 | $84,474 | $- | | Miner and other purchase commitments | $61,342 | $61,342 | $- | $- | $- | | **Total** | **$310,108** | **$130,204** | **$78,448** | **$90,408** | **$11,048** | - The company's current business strategy is to sell digital assets (bitcoin) within a short period after earning them, with over **95%** liquidated the same day it is mined[125](index=125&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section has been omitted as it is not required for smaller reporting companies - Disclosure is not required for smaller reporting companies[140](index=140&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during Q1 2022 - Management, including the CEO and CFO, concluded that as of **March 31, 2022**, the company's disclosure controls and procedures are effective[141](index=141&type=chunk) - No material changes in internal control over financial reporting occurred during **Q1 2022**[142](index=142&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any material adverse legal proceedings, and a challenge to its datacenter expansion site plan in Torrey, NY, was denied by the court in April 2022 - A legal challenge (Article 78 petition) to the company's datacenter expansion in Torrey, NY was denied by the court in **April 2022**[145](index=145&type=chunk) - The company states it is not currently aware of any legal proceedings or claims that it believes will have a material adverse effect on its business[144](index=144&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021, have occurred - No material changes to the risk factors disclosed in the **2021 Form 10-K** have occurred during the quarter[146](index=146&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its stock purchase agreements with B. Riley Principal Capital, including the termination of the 2021 agreement and the establishment of a new $500 million purchase agreement on April 7, 2022, for general corporate purposes - From January 1, 2022, to April 6, 2022, the company issued **415,000** shares of Class A common stock to BRPC under the **2021 Purchase Agreement**[147](index=147&type=chunk) - On **April 7, 2022**, the company entered into a new common stock purchase agreement with BRPC, with the right to sell up to **$500 million** in shares[148](index=148&type=chunk) [Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities have been reported - None[150](index=150&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[151](index=151&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) This section is not applicable to the company's operations - Not applicable[152](index=152&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report, including key financing and purchase agreements, and officer certifications - Exhibits filed include the Secured Promissory Note with B. Riley, the Master Equipment Finance Agreement with NYDIG, and the new **2022 Purchase Agreement** with B. Riley[155](index=155&type=chunk)