Financial Performance - Gryphon Digital Mining reported mining revenues of $3.845 million for Q4 2024, an increase from $3.689 million in Q3 2024[9] - The company achieved a net income of $0.4 million in Q4 2024, compared to a net loss of $11.0 million in fiscal 2023[9] - Total revenues for 2024 decreased to $20,539,000 from $21,925,000 in 2023, representing a decline of approximately 6.3%[24] - Mining activities revenue was $20,539,000, while management services revenue was $0 in 2024, compared to $873,000 in 2023[24] - The net loss for 2024 was $21,300,000, an improvement from a net loss of $28,599,000 in 2023, reflecting a decrease of approximately 25.6%[24] - The net loss per share improved to $(0.51) in 2024 from $(0.83) in 2023[24] Cash and Assets - Cash and cash equivalents increased from $368,000 to $735,000 during Q4 2024[6] - Total assets decreased from $18.834 million in 2023 to $7.632 million in 2024[22] - Cash flows from operating activities resulted in a net cash used of $3,396,000 in 2024, compared to a net cash provided of $3,011,000 in 2023[26] - Cash and cash equivalents at the end of the period were $735,000 in 2024, down from $915,000 in 2023[26] Liabilities and Expenses - Total liabilities decreased by over 70%, with $13 million of debt converted to equity[9] - Total operating expenses decreased to $38,286,000 in 2024 from $41,103,000 in 2023, a reduction of about 6.9%[24] - The company incurred merger and acquisition costs of $394,000 in 2024, with no such costs reported in 2023[24] Mining Operations - The breakeven cost per Bitcoin in Q4 2024 was $75,872, significantly higher than $23,902 in Q4 2023[9] - Gryphon mined approximately 61 Bitcoin in Q4 2024, down from 176 Bitcoin in Q4 2023[9] - The company reported a gain on settlement of BTC Note amounting to $6,248,000 in 2024, with no comparable gain in 2023[24] - The company purchased mining equipment for $1,075,000 in 2024, a decrease from $1,894,000 in 2023[26] Stock and Market Activity - The average trading volume of Gryphon's stock increased from approximately 249,000 shares per day in Q3 2024 to approximately 874,000 shares per day in Q4 2024[6] - The company closed a $2.85 million offering with 100% management and majority board participation[9] Future Opportunities - Gryphon is focused on closing the Captus Energy Acquisition, which is expected to represent a billion-dollar opportunity[4]

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, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-39096 GRYPHON DIGITAL MINING, INC. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Empl ...

Gryphon Digital Mining, Inc. (NASDAQ:GRYP) Q3 2024 Earnings Conference Call November 13, 2024 4:30 PM ET Company Participants Steve Gutterman - Chief Executive Officer Sim Salzman - Chief Financial Officer Conference Call Participants Jon Hickman - Ladenburg Thalmann Kevin Dede - H.C. Wainwright Operator Greetings and welcome to the Gryphon Digital Mining Third Quarter 2024 Earnings Call. On the call are Steve Gutterman, Chief Executive Officer of the company; and Sim Salzman, Chief Financial Officer of the ...

Mining Performance - For the three months ended September 30, 2024, Gryphon mined approximately 61 bitcoins, a decrease of 65% compared to 176 bitcoins mined in the same period of 2023[171]. - Mining revenues for Q3 2024 were $3,689,000, down 29% from $5,189,000 in Q3 2023[172]. - The cost to mine one bitcoin in Q3 2024 was $59,213, significantly higher than $22,625 in Q3 2023, reflecting increased operational costs[172]. - Gryphon's total bitcoin equivalent coins generated in Q3 2024 were 61, compared to 185 in Q3 2023, indicating a decline in mining efficiency[172]. - The average value of one mined bitcoin in Q3 2024 was $60,475, compared to $29,483 in Q3 2023, highlighting a substantial increase in bitcoin prices[172]. Financial Performance - Mining revenues increased to $16,694,000 for the nine months ended September 30, 2024, from $14,992,000 for the same period in 2023, representing an increase of $1,702,000 or 11.4%[188]. - The average value of Bitcoin rose to $60,000 for the nine months ended September 30, 2024, compared to $26,000 for the same period in 2023, an increase of $34,000 or 131%[188]. - Total revenues for the nine months ended September 30, 2024, were $16,694,000, up from $15,836,000 in 2023, reflecting a growth of $858,000 or 5.4%[187]. - Cost of revenues increased to $12,252,000 for the nine months ended September 30, 2024, from $9,542,000 in 2023, an increase of $2,710,000 or 28.4%[190]. - General and administrative expenses surged to $8,728,000 for the nine months ended September 30, 2024, from $3,250,000 in 2023, marking an increase of $5,478,000 or 168.6%[190]. - The Company reported a net loss of $21.7 million for the nine months ended September 30, 2024, and an adjusted EBITDA of $(3.53) million[262]. - For the three months ended September 30, 2024, the company reported a net loss of $5.95 million, an improvement from a net loss of $8.09 million in the same period of 2023, with an adjusted EBITDA of $(2.45) million[263]. Operational Costs - Gryphon's electricity cost per kilowatt hour decreased from $0.0709 in Q3 2023 to $0.0624 in Q3 2024, contributing to lower operational costs[176]. - General and administrative expenses surged to $2,439,000 for the three months ended September 30, 2024, up 203.4% from $804,000 in 2023[214]. - Professional fees increased to $1,128,000 for the three months ended September 30, 2024, from $479,000 in 2023, reflecting a rise of 135.5%[214]. Debt and Financing - Gryphon initiated an At The Market offering program with a total offering price of up to $70 million, having sold approximately 3.4 million shares for net proceeds of $2.8 million as of November 13, 2024[178]. - The restructuring of the Anchorage Loan resulted in the conversion of approximately $9.1 million into shares of Common Stock, issuing 8,287,984 shares at $1.10 per share[180]. - The New Loan Agreement includes a 4.25% interest rate and allows Anchorage to convert half of the outstanding principal at $1.10 per share and the remaining half at $1.50 per share[181]. - The Company entered into a Debt Repayment and Exchange Agreement on October 25, 2024, converting approximately $9.1 million of the Anchorage Loan into shares of common stock at $1.10 per share[249]. - The Restructured Loan has an interest rate of 4.25% payable monthly, with Anchorage given a first priority lien on all of Gryphon's assets[251]. - The BTC Note was amended to extend the maturity date to March 2026 and increase the interest rate to 6% per annum[239]. - Interest expense increased to $908,000 for the nine months ended September 30, 2024, from $530,000 in 2023, an increase of $378,000 or 71.3%[207]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $368,000 as of September 30, 2024, down from $915,000 as of December 31, 2023[226]. - The accumulated deficit increased to approximately $68,137,000 as of September 30, 2024, compared to $47,175,000 as of December 31, 2023[226]. - The Company anticipates needing additional capital resources to fund operations and may consider selling additional equity or debt securities[227]. - For the nine months ended September 30, 2024, net cash used in operating activities was approximately $2,368,000, with cash proceeds from the sale of digital assets at approximately $16,649,000 and cash expenditures of approximately $19,017,000[230]. - Net cash used in investing activities for the same period was approximately $1,504,000, primarily for the purchase of mining equipment costing approximately $1,075,000[231]. - Net cash provided by financing activities was approximately $3,325,000, mainly from cash proceeds of $3,059,000 from the issuance of common stock[232]. Legal and Compliance Issues - The company identified a material weakness in internal control over financial reporting due to insufficient staffing in the accounting department, which could lead to potential misstatements[269]. - The company is committed to enhancing its internal controls by adding resources and utilizing external audit firms to address identified weaknesses[272]. - The company reached a settlement in the Core Litigation, resolving claims against it and dismissing the complaint with prejudice[286]. - Dutchie filed a complaint against the Company alleging unfair competition and tortious interference, but the court dismissed the case in October 2023, allowing for an appeal[291]. - TreCom filed suit against the Company seeking recovery of approximately $4.2 million for breach of contract, with a trial set to commence on December 2, 2024[293]. - The Company established a loss contingency of $0.2 million related to the TreCom matter, which remains outstanding as of September 30, 2024[293]. - The former CEO was terminated for cause on September 17, 2024, and subsequently filed a wrongful termination claim against the Company[294][295]. - A special committee was created by the Board to oversee the handling of the wrongful termination claim[296]. - The Company intends to vigorously defend against all ongoing litigation and claims[291][295][296]. - Litigation may have an adverse impact on the Company due to defense costs and diversion of management resources[296].

Exhibit 99.1 Gryphon Digital Mining, Inc. Reports Third Quarter 2024 Financial Results LAS VEGAS, NV / Gryphon Digital Mining, Inc. (Nasdaq: GRYP) ("Gryphon," the "Company," "we," "our," and "us"), a bitcoin mining company that is focused on becoming the leader in low-cost, efficient operations, today reported financial results for its quarter ended September 30, 2024. "The third quarter was fundamentally about strengthening our foundation and positioning Gryphon for future success," said Steve Gutterman, C ...

Gryphon Digital Mining, Inc. (NASDAQ:GRYP) Q2 2024 Earnings Conference Call August 15, 2024 10:00 AM ET Company Participants Rob Chang - CEO Sim Salzman - CFO Conference Call Participants Kevin Dede - H.C. Wainwright Martin Toner - ATB Capital Markets Jon Hickman - Ladenburg and Thalmann Operator Greetings and welcome to the Gryphon Digital Mining Second Quarter 2024 Earnings Call. On the call are Rob Chang, Chief Executive Officer of the company and Sim Salzman, Chief Financial Officer of the company. Befo ...

Exhibit 99.1 Gryphon Digital Mining, Inc. Reports Second Quarter 2024 Financial Results LAS VEGAS, NV — Gryphon Digital Mining, Inc. (Nasdaq: GRYP) ("Gryphon," the "Company," "we," "our," and "us"), a bitcoin mining company that is independently certified to be 100% renewable and pursuing a negative carbon strategy, today reported financial results for its quarter ended June 30, 2024. "Gryphon reached milestones in both hashrate and energy efficiency during the second quarter of 2024, setting new company re ...

Mining Performance - For the three months ended June 30, 2024, Gryphon mined approximately 84 bitcoins, a decrease of 55% compared to 187 bitcoins mined in the same period of 2023[124] - Gryphon's mining revenues for Q2 2024 were $5,515,000, representing a 10.9% increase from $4,963,000 in Q2 2023[126] - Mining revenues increased to $13,005,000 for the six months ended June 30, 2024, from $9,803,000 for the same period in 2023, representing a growth of $3,202,000 or 32.7%[138] Cost and Revenue Analysis - The cost to mine one bitcoin increased to $45,452 in Q2 2024, up from $15,096 in Q2 2023, reflecting a significant rise in operational costs[126] - Gryphon's breakeven cost of total BTC equivalent was $45,452 in Q2 2024, compared to $14,115 in Q2 2023, highlighting increased operational challenges[126] - The average value of one mined bitcoin in Q2 2024 was $65,655, compared to $26,540 in Q2 2023, indicating a substantial increase in bitcoin prices[126] - The average value of Bitcoin rose to $59,000 for the six months ended June 30, 2024, compared to $26,000 for the same period in 2023, an increase of $34,000 or 131%[138] - Total revenues for the six months ended June 30, 2024, were $13,005,000, up from $10,359,000 in 2023, reflecting a growth of $2,646,000 or 25.5%[136] Operating Expenses - Total operating expenses increased to $20,431,000 for the six months ended June 30, 2024, from $14,590,000 in 2023, an increase of $5,841,000 or 40.0%[136] - General and administrative expenses surged to $6,289,000 for the six months ended June 30, 2024, from $2,446,000 in 2023, marking an increase of $3,843,000 or 157.1%[140] - General and administrative expenses surged to $3,828,000 for the three months ended June 30, 2024, compared to $1,092,000 in 2023, marking a 250.6% increase[159] Financial Losses - Loss from operations increased to $(7,426,000) for the six months ended June 30, 2024, compared to $(4,231,000) in 2023, a rise of $3,195,000 or 75.5%[136] - The Company reported a loss from operations of $5,866,000 for the three months ended June 30, 2024, compared to a loss of $2,684,000 in 2023, reflecting an increase of $3,182,000 or 118.6%[155] - The Company reported a net loss of $(15,753,000) for the six months ended June 30, 2024, compared to $(9,533,000) in 2023[195] Cash Flow and Financing - Cash and cash equivalents as of June 30, 2024, were $1,219,000, up from $915,000 as of December 31, 2023[171] - The Company anticipates that its current cash levels will not be sufficient to meet its operational needs for at least the next 12 months, indicating a need for additional capital resources[172] - Net cash used in operating activities for the six months ended June 30, 2024, was approximately $(782,000), compared to $2,676,000 in 2023, reflecting a decrease in cash proceeds from digital currency sales[176] - Net cash provided by financing activities was approximately $2,040,000 for the six months ended June 30, 2024, compared to $(63,000) in 2023, driven by cash proceeds from the issuance of common stock[177] Interest and Unrealized Gains - Interest expense increased to $620,000 for the six months ended June 30, 2024, from $368,000 in 2023, an increase of $252,000 or 68.5%[151] - The Company recognized a $1,385,000 unrealized gain on digital assets as of June 30, 2024, following the implementation of ASU No. 2023-08[147] - The Company recognized a $318,000 unrealized gain on digital assets as of June 30, 2024, following the implementation of ASU No. 2023-08[166] Corporate Strategy and ESG - Gryphon operates approximately 8,800 bitcoin ASIC mining computers, utilizing 28 megawatts of power at its primary hosting facility in New York, which relies on renewable hydro energy[123] - Gryphon's strategy focuses on ESG-led mining, aiming to create a net carbon neutral bitcoin miner by partnering with power hosting providers committed to climate science[123] Legal and Compliance Issues - The company was involved in litigation with Sphere 3D, alleging breach of contract and fiduciary duty, with Gryphon filing counterclaims against Sphere 3D[205][206] - The Core Complaint against the company sought damages of $100 million, but a settlement was reached, dismissing all claims against the company[213] - The company received a PPP Loan of $2.2 million, which was previously forgiven, but the SBA is reviewing this determination for potential reversal[215][216] - The company is cooperating with a DOJ inquiry regarding the PPP Loan, with no formal demands for repayment made yet[217] Internal Controls and Governance - As of June 30, 2024, the company's disclosure controls and procedures were deemed ineffective due to insufficient staffing in the accounting and financial reporting department[200] - The identified material weakness could lead to a reasonable possibility of material misstatements in financial statements not being prevented or detected timely[201] - The company plans to enhance internal resources for technical accounting and financial reporting, potentially hiring a full-time person dedicated to internal controls[201] - The company is utilizing external third-party audit firms to improve controls related to its material weaknesses[202] - The company is committed to ongoing evaluation and improvement of its internal control over financial reporting[203] Debt and Financial Obligations - The BTC Note was amended to extend the maturity date to March 2026 and increase the interest rate to 6% per annum[182] - The Company has a collateral coverage ratio requirement of 110% under the BTC Note, and as of June 30, 2024, it was not in breach of this ratio[185] - The merger and acquisition cost was $394,000 related to the disposal of its subsidiary MJ Freeway, which occurred on February 8, 2024[154]

Financial Data and Key Metrics Changes - For Q1 2024, the company reported a net loss of $11.7 million, compared to a net loss of $6.9 million in Q1 2023, indicating a deterioration in financial performance [6] - Adjusted EBITDA for Q1 2024 was approximately $1.9 million, down from $4.2 million in Q1 2023, reflecting challenges in operational effectiveness [7] - The average breakeven cost for bitcoin mining increased to approximately $34,000 in Q1 2024 from $23,800 in Q4 2023, driven by rising energy costs and mining difficulty [14][25] Business Line Data and Key Metrics Changes - The company mined approximately 142 bitcoin in Q1 2024, generating mining revenues of $7.5 million, up from $4.8 million in the same period last year [14] - The daily average global hash rate increased by 88% year-over-year, contributing to the company's operational metrics [4] Market Data and Key Metrics Changes - Bitcoin's price surged from $22,830 to $52,746, a 131% increase, enhancing profitability for each bitcoin mined [5] - The company’s self-mining hash rate reached approximately 0.94 exahash per second, with plans to expand towards a target of 10 exahash [24][11] Company Strategy and Development Direction - The company aims to expand its hash rate in an accretive manner through organic growth and M&A, focusing on distressed asset acquisitions [11][21] - The management emphasizes maintaining a low-cost structure and driving operational efficiencies to remain competitive in the industry [11][10] - The company has initiated a share buyback program, allowing for the repurchase of up to $5 million of common stock, reflecting confidence in its strategy [12] Management Comments on Operating Environment and Future Outlook - Management highlighted the impact of the bitcoin halving event, which is expected to lead to industry consolidation, positioning the company as a potential consolidator [13] - The management expressed optimism about the future, citing a commitment to environmental stewardship and maintaining a carbon-neutral operation [11][10] Other Important Information - The company reported cash and cash equivalents of approximately $1.7 million and $4.2 million in bitcoin as of March 31, 2024, indicating a stable liquidity position [8] - The increase in debt reported is attributed to the structure being denominated in bitcoin, reflecting the correlation with bitcoin's price [9] Q&A Session Summary Question: Can you talk about your strategy utilizing both the ATM and the buyback? - The company views both tools as part of a good capital management strategy, considering share buybacks when the stock price is deemed unreasonably low [28][29] Question: Can you quantify the risk related to the PPP loan investigation? - Management indicated that the risk is currently unquantifiable, but the note was for about $2.2 million, with a remote probability of significant issues arising [32][36] Question: What opportunities do you see for M&A? - The company is actively exploring distressed asset acquisitions, with a focus on companies that are struggling post-halving due to lack of capital [37] Question: What are your organic growth opportunities? - Management stated that M&A will likely trigger organic growth, as they prefer to avoid significant capital raises at this time [39] Question: How do you view your debt levels? - The company clarified that its bitcoin-denominated debt is fully hedged and does not pose a risk, despite appearing larger on the balance sheet due to market valuation changes [49] Question: What is your strategy regarding geographic positioning? - The company is open to opportunities globally, prioritizing regions with good rule of law and favorable economics for operations [60][62]

Financial Performance - Total mining revenue in Q1 2024 was $7.5 million, a 56.3% increase from $4.8 million in Q1 2023[4] - The company reported a net loss of $11.7 million in Q1 2024, compared to a net loss of $6.9 million in Q1 2023[4] - Adjusted EBITDA for Q1 2024 was $1.9 million, down from $4.2 million in Q1 2023[4] - Total revenues for Q1 2024 were $7,490,000, a 47.7% increase from $5,076,000 in Q1 2023[21] - Mining activities generated revenues of $7,490,000 in Q1 2024, compared to $4,840,000 in Q1 2023, reflecting a 54.1% growth[21] - The net loss for Q1 2024 was $11,744,000, compared to a net loss of $6,910,000 in Q1 2023, indicating a 70.5% increase in losses[21] - Net loss per share for Q1 2024 was $(0.36), compared to $(0.28) in Q1 2023[21] Mining Operations - Breakeven cost per bitcoin in Q1 2024 was $34,063, significantly higher than $12,910 in Q1 2023[4] - Gryphon completed its miner upgrade program ahead of schedule, adding approximately 23 PH/s to hashing power and improving average fleet efficiency to 28.5 J/T[4] - The self-mining hash rate capacity reached approximately 0.94 EH/s following the upgrades[4] - The company mined approximately 142 Bitcoin in Q1 2024, down from 212 Bitcoin in Q1 2023[4] Expenses and Liabilities - Total operating expenses increased to $9,050,000 in Q1 2024, up from $6,764,000 in Q1 2023, representing a 33.6% rise[21] - As of March 31, 2024, total assets were $17.8 million, while total liabilities were $30.2 million[9] - The company experienced a change in fair value of notes payable, resulting in an expense of $9,638,000 in Q1 2024[24] Cash Flow and Shareholder Value - Cash and cash equivalents at the end of Q1 2024 were $1,737,000, down from $2,016,000 at the end of Q1 2023[24] - The company reported a net cash used in operating activities of $(983,000) for Q1 2024, compared to net cash provided of $1,807,000 in Q1 2023[24] - Proceeds from the issuance of common stock amounted to $1,395,000 in Q1 2024[24] - The company has authorized a stock repurchase program of up to $5 million to enhance shareholder value[4] Future Projections - Based on a projected average Bitcoin price of $70,000, the company expects a gross profit of approximately $16.6 million from current mining operations in 2024[7] Digital Asset Revenue - Digital asset revenue was reported at $(7,490,000) for Q1 2024, compared to $(4,840,000) in Q1 2023[24]