Core Insights - Mawson Infrastructure Group Inc. announced preliminary, unaudited financial results for Q3 and the first nine months of 2025, highlighting a decrease in revenue but significant improvements in gross profit and net loss reduction [1][2]. Financial Performance Summary Third Quarter Results - Estimated revenues for Q3 2025 are approximately $11.2 million, a 9% decrease from $12.3 million in Q3 2024 [4]. - Estimated cost of revenues for Q3 2025 is approximately $4.6 million, down 42% from $8.0 million in Q3 2024 [4]. - Estimated gross profit for Q3 2025 is expected to be around $6.6 million, reflecting a 53% increase from $4.3 million in Q3 2024 [5]. - Estimated gross profit margin for Q3 2025 is projected at 59%, compared to 35% in Q3 2024 [5]. - Estimated net loss for Q3 2025 is expected to be approximately $1.5 million, a significant decrease of 88% from $12.2 million in Q3 2024 [6]. Nine Months Results - Estimated revenues for the first nine months of 2025 are approximately $34.5 million, a 22% decrease from $44.2 million in the same period of 2024 [7]. - Estimated cost of revenues for the first nine months of 2025 is approximately $18.1 million, down 37% from $28.6 million in the first nine months of 2024 [7]. - Estimated gross profit for the first nine months of 2025 is expected to be around $16.4 million, a 5% increase from $15.6 million in the same period of 2024 [8]. - Estimated gross profit margin for the first nine months of 2025 is projected at 48%, compared to 35% in the same period of 2024 [8]. - Estimated net loss for the first nine months of 2025 is expected to be approximately $9.8 million, a 76% decrease from $41.8 million in the first nine months of 2024 [9]. Strategic Developments - Mawson's strategy includes utilizing carbon-free energy resources, such as nuclear power, to support its digital infrastructure operations, positioning itself as a competitive provider of sustainable solutions [12]. - The company has 129 megawatts of capacity already online, with more under development, indicating a focus on scalability and efficiency in its operations [12]. Board of Directors Update - At the 2025 Annual Meeting, new directors were elected, including Ryan Costello as Independent Board Chair, Steven G. Soles as Independent Director, and Kathryn Yingling Schellenger as Independent Director, each bringing diverse expertise to the board [10].

Market Overview - Crypto markets experienced a decline, with global market capitalization decreasing by 3% as traders exited to avoid losses [1] - Despite the slowdown, certain crypto stocks remain attractive to investors due to institutional adoption and ecosystem developments [1] Coinbase (COIN) - Coinbase closed at $312.59, up 1.92%, with institutional adoption news enhancing investor sentiment [2] - Caliber, a diversified real estate and digital asset management platform, selected Coinbase Prime for its Digital Asset Treasury Strategy, providing access to deep liquidity and institutional-grade custody [2] - If buying activity continues, COIN's price could rise towards $329.26, while increased selling pressure may lead to a drop below $293.61 [3][4] Mawson Infrastructure Group Inc. (MIGI) - MIGI closed at $0.50 per share, gaining 8.54% for the day, attracting market attention due to recent operational updates [5] - The company confirmed normal operations across its U.S. facilities and addressed its Nasdaq listing status, securing an extension to regain compliance [6] - If buying momentum builds, MIGI could surpass the $0.53 level, but may retreat to test support near $0.47 if selling pressure increases [6][7] Earlyworks Co., Ltd. (ELWS) - Earlyworks shares ended at $2.63, gaining 8.47%, as traders consider the company's regulatory update [9] - The Nasdaq Hearings Panel granted Earlyworks a final extension until October 29 to regain compliance with listing standards [9] - The company is pursuing equity financing initiatives to meet compliance requirements, with potential delisting if it fails to do so by the deadline [10]

Core Viewpoint - Mawson Infrastructure Group Inc. provides an update on its operations, focusing on its digital infrastructure for high-performance computing and digital assets, while emphasizing its commitment to carbon-free energy sources [1][3]. Company Operations - Mawson continues to operate normally across its U.S. footprint, with its facility in Midland, Pennsylvania being a cornerstone site supported by long-term tenure [6]. - The company has engaged advisors and presented a plan to Nasdaq to regain compliance with its continued listing standards, receiving an extension to maintain its listing [6]. Financial Strategy - Mawson has filed a new shelf registration statement on Form S-3 to maintain financial flexibility, allowing the company to offer and sell securities as needed without indicating immediate issuance of new shares [6]. - The leadership is focused on executing the growth strategy while improving the balance sheet and maintaining operational flexibility [6]. Legal Matters - The company is advancing efforts to resolve certain legacy legal matters as part of a broader program aimed at strengthening its balance sheet [6].

Part I – Financial Information This section details the company's unaudited consolidated financial statements and management's analysis of financial condition and operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Mawson Infrastructure Group Inc.'s unaudited consolidated financial statements and detailed notes [Consolidated Condensed Balance Sheets](index=3&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Balance sheets show decreased total assets and increased stockholders' deficit from December 2024 to June 2025 Consolidated Condensed Balance Sheets | Metric | June 30, 2025 (unaudited) | December 31, 2024 | | :--------------------------------- | :-------------------------- | :------------------ | | Cash and cash equivalents | $3,239,632 | $6,089,837 | | Total current assets | $18,991,307 | $26,006,315 | | Total assets | $52,739,764 | $61,440,495 | | Total current liabilities | $59,256,223 | $61,947,418 | | Total liabilities | $61,079,666 | $64,679,332 | | Total stockholders' deficit | $(8,339,902) | $(3,238,837) | [Consolidated Condensed Statements of Operations](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Total revenues decreased for both three and six months ended June 30, 2025, while net loss improved, driven by mixed segment performance Consolidated Condensed Statements of Operations | Metric (Three Months Ended June 30) | 2025 | 2024 | | :---------------------------------- | :------------ | :------------ | | Digital colocation revenue | $3,660,298 | $8,131,439 | | Energy management revenue | $5,130,712 | $1,732,596 | | Digital assets mining revenue | $742,173 | $3,248,084 | | Total revenues | $9,533,183 | $13,112,119 | | Gross Profit | $3,933,630 | $4,317,477 | | Net Loss | $(8,021,433) | $(9,618,693) | | Net Loss per share, basic & diluted | $(0.40) | $(0.55) | | Metric (Six Months Ended June 30) | 2025 | 2024 | | :---------------------------------- | :------------ | :------------ | | Digital colocation revenue | $14,089,171 | $16,365,480 | | Energy management revenue | $8,195,587 | $4,205,101 | | Digital assets mining revenue | $1,062,798 | $10,762,847 | | Total revenues | $23,347,556 | $31,883,428 | | Gross Profit | $9,857,560 | $11,302,618 | | Net Loss | $(8,332,296) | $(29,587,978) | | Net Loss per share, basic & diluted | $(0.43) | $(1.73) | [Consolidated Condensed Statements of Comprehensive Loss](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss decreased for both three and six months ended June 30, 2025, influenced by net loss Consolidated Condensed Statements of Comprehensive Loss | Metric (Three Months Ended June 30) | 2025 | 2024 | | :---------------------------------- | :------------ | :------------ | | Net Loss | $(8,021,433) | $(9,618,693) | | Foreign currency translation adj. | $147,296 | $(44,443) | | Comprehensive loss | $(7,874,137) | $(9,663,136) | | Metric (Six Months Ended June 30) | 2025 | 2024 | | :---------------------------------- | :------------ | :------------ | | Net Loss | $(8,332,296) | $(29,587,978) | | Foreign currency translation adj. | $152,466 | $(526,586) | | Comprehensive loss | $(8,179,830) | $(30,114,564) | [Consolidated Condensed Statements of Stockholders' Equity (Deficit)](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Stockholders%27%20Equity%20%28Deficit%29) Stockholders' equity (deficit) reflects increased common stock and paid-in capital, but a growing accumulated deficit Consolidated Condensed Statements of Stockholders' Equity (Deficit) | Metric (Six Months Ended June 30, 2025) | Amount | | :-------------------------------------- | :------------ | | Common Stock () | 20,832,116 | | Common Stock ($) | $20,832 | | Additional Paid-in Capital | $228,418,637 | | Accumulated Other Comprehensive Income | $351,091 | | Accumulated Deficit | $(237,130,462)| | Total Stockholders' Deficit | $(8,339,902) | | Metric (Six Months Ended June 30, 2024) | Amount | | :-------------------------------------- | :------------ | | Common Stock () | 17,518,483 | | Common Stock ($) | $17,518 | | Additional Paid-in Capital | $216,302,100 | | Accumulated Other Comprehensive Income | $133,943 | | Accumulated Deficit | $(212,049,357)| | Total Stockholders' Equity | $4,404,204 | [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for the six months ended June 30, 2025, significantly decreased from prior year Consolidated Condensed Statements of Cash Flows | Cash Flow Activity (Six Months Ended June 30) | 2025 | 2024 | | :-------------------------------------------- | :------------ | :------------ | | Net cash (used in) provided by operating | $(2,588,984) | $4,344,563 | | Net cash used in investing activities | $(54,633) | $(1,415,281) | | Net cash used in financing activities | $(206,588) | $(623,478) | | Net (decrease) increase in cash | $(2,850,205) | $2,305,804 | | Cash and cash equivalents at end of period | $3,239,632 | $6,782,143 | [Notes to Consolidated Condensed Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) These notes provide essential context and detailed information for the financial statements, covering operations, policies, and key events [NOTE 1 – GENERAL](index=9&type=section&id=NOTE%201%20%E2%80%93%20GENERAL) Mawson operates digital infrastructure for AI, HPC, and digital assets, facing substantial doubt about its going concern ability - Mawson Infrastructure Group Inc. is a technology company focused on digital infrastructure platforms for AI, HPC, and digital assets, operating in the PJM Energy Market in the United States[26](index=26&type=chunk)[27](index=27&type=chunk)[29](index=29&type=chunk) - The company incurred a net loss of **($8.3 million)** for the six months ended June 30, 2025, had negative working capital of **($40.3 million)**, total negative net assets of **($8.3 million)**, and an accumulated deficit of **($237.1 million)** as of June 30, 2025[35](index=35&type=chunk) - These conditions raise substantial doubt about the company's ability to continue as a going concern for at least one year from the financial statement issuance date[38](index=38&type=chunk) - Mitigation strategies include expanding digital infrastructure, executing new colocation agreements, engaging with capital providers for equity/debt, assessing strategic transactions, and implementing operational improvements[38](index=38&type=chunk)[43](index=43&type=chunk) [NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%202%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines key accounting policies, including revenue recognition, property, plant and equipment, and stock-based compensation - Revenue is recognized under ASC 606, with distinct performance obligations identified for digital colocation, energy management, digital assets mining, and equipment sales[47](index=47&type=chunk)[48](index=48&type=chunk) - Digital colocation revenue is recognized over time as customers consume benefits, with variable consideration recognized when invoiced[49](index=49&type=chunk)[50](index=50&type=chunk) - Energy management revenue is generated by adapting power usage to grid needs, recognized over the service period based on estimated curtailment or energy available for sale[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - Digital assets mining revenue is recognized when digital assets are received, measured at fair market value based on exchange prices[54](index=54&type=chunk)[55](index=55&type=chunk) - The Power Supply Agreement (PSA) for the Midland facility is classified as a Level 3 derivative asset due to significant unobservable inputs in its valuation, with changes in fair value recognized in the statements of operations[67](index=67&type=chunk)[68](index=68&type=chunk) - The company operates as one operating segment, with net income used by the CODM for resource allocation and performance assessment[70](index=70&type=chunk)[71](index=71&type=chunk) - The company adopted ASU 2023-08 on January 1, 2025, for accounting and disclosure of crypto assets, which did not have a material impact due to minimal holding periods for bitcoin[73](index=73&type=chunk) [NOTE 3 – AUSTRALIAN SUBSIDIARIES DECONSOLIDATION](index=18&type=section&id=NOTE%203%20%E2%80%93%20AUSTRALIAN%20SUBSIDIARIES%20DECONSOLIDATION) Mawson deconsolidated its Australian subsidiary, MIG No.1, on March 19, 2024, due to insolvency, resulting in an **$11.9 million** loss - MIG No.1, an Australian entity, was placed into Australian court-appointed liquidation on March 19, 2024, due to insolvency, leading to its deconsolidation from the Company's financial statements[75](index=75&type=chunk) - The deconsolidation resulted in a loss of **$11.9 million** recorded in the consolidated statement of operations[75](index=75&type=chunk) - The Company is a guarantor of the Marshall Loan, which matured in February 2024 with an outstanding balance of **$11.3 million** as of June 30, 2025, and is secured by MIG No.1's assets[77](index=77&type=chunk)[88](index=88&type=chunk) [NOTE 4 – BASIC AND DILUTED NET LOSS PER SHARE](index=18&type=section&id=NOTE%204%20%E2%80%93%20BASIC%20AND%20DILUTED%20NET%20LOSS%20PER%20SHARE) Basic and diluted net loss per share calculations excluded anti-dilutive securities for June 30, 2025, and 2024 Anti-Dilutive Securities | Security Type | As of June 30, 2025 | As of June 30, 2024 | | :-------------------------------- | :------------------ | :------------------ | | Warrants to purchase Common Stock | 4,480,839 | 4,904,016 | | Options to purchase Common Stock | 3,500,000 | 1,750,417 | | RSUs under management equity plan | 12,161,628 | 7,337,651 | | Total Anti-Dilutive Securities | 20,142,467 | 13,992,084 | [NOTE 5 – LEASES](index=19&type=section&id=NOTE%205%20%E2%80%93%20LEASES) Lease costs include operating and finance charges; as of June 30, 2025, total undiscounted operating lease obligations were **$3.6 million** Lease Cost | Lease Cost (Three Months Ended June 30) | 2025 | 2024 | | :-------------------------------------- | :--------- | :--------- | | Operating lease charges | $418,457 | $393,314 | | Finance lease amortization | $102,797 | $39,695 | | Finance lease interest | $15,201 | $10,191 | | Lease Cost (Six Months Ended June 30) | 2025 | 2024 | | :-------------------------------------- | :--------- | :--------- | | Operating lease charges | $863,892 | $791,208 | | Finance lease amortization | $205,594 | $47,838 | | Finance lease interest | $33,275 | $11,698 | Lease Liabilities | Lease Liabilities (June 30, 2025) | Operating Leases | Finance Leases | | :-------------------------------------- | :--------------- | :------------- | | Total undiscounted lease obligations | $3,630,775 | $422,854 | | Total present value of lease liabilities| $3,100,674 | $393,160 | | Current portion of lease liabilities | $1,281,944 | $388,447 | | Non-current lease liabilities | $1,818,730 | $4,713 | [NOTE 6 – PROPERTY, PLANT AND EQUIPMENT](index=20&type=section&id=NOTE%206%20%E2%80%93%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) PP&E, net, decreased from **$28.1 million** (Dec 2024) to **$25.1 million** (June 2025) due to depreciation Property, Plant and Equipment | PP&E Category | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total Cost | $121,287,108 | $121,232,475 | | Less: Accumulated depreciation| $(96,155,092) | $(93,161,060) | | PP&E, net | $25,132,016 | $28,071,415 | Depreciation & Amortization Expense | Depreciation & Amortization | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | | Expense | $1.5 million | $4.6 million | | Depreciation & Amortization | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | | Expense | $3.0 million | $12.6 million | - The lower depreciation and amortization expense is attributed to the liquidation and deconsolidation of MIG No. 1 and an increased number of digital asset mining hardware being fully depreciated in prior periods[181](index=181&type=chunk) [NOTE 7 – INCOME TAXES](index=20&type=section&id=NOTE%207%20%E2%80%93%20INCOME%20TAXES) Income tax benefit was **0.22%** for Q2 2025 (vs. **-22.28%** in 2024), with H1 2025 expense at **-1.12%** Effective Income Tax Rate | Effective Income Tax Rate | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | | Rate | 0.22% | (22.28)% | | Effective Income Tax Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | | Rate | (1.12)% | (6.12)% | - Management has concluded that it is more likely than not that the Company will not realize the benefits of the net deferred tax assets as of June 30, 2025, leading to a valuation allowance[84](index=84&type=chunk) [NOTE 8 – LOANS](index=21&type=section&id=NOTE%208%20%E2%80%93%20LOANS) The company has several outstanding loans, including Marshall (**$11.3 million**), W Capital (**$1.5 million**), and Celsius (**$10.2 million**) - Marshall Loan: **$11.3 million** outstanding as of June 30, 2025, matured February 2024, **12%** interest (plus **500bps** overdue rate), no principal or interest payments since May 2023. Company is a guarantor[88](index=88&type=chunk) - W Capital Loan: AUD **$2.3 million** (USD **$1.5 million**) drawn down as of June 30, 2025, expired March 2023, **12%** interest (plus **800bps** overdue rate). Company is a guarantor[89](index=89&type=chunk) - Celsius Promissory Note: **$10.2 million** outstanding as of June 30, 2025, matured August 2023, **12%** interest (plus **200bps** overdue rate). Luna Squares (subsidiary) is required to amortize at **15%** per quarter[90](index=90&type=chunk) - Convertible Notes: **$0.1 million** outstanding as of June 30, 2025, matured July 2023, relates to accrued interest after principal repayment. Company is a defendant in a civil suit for unpaid interest[91](index=91&type=chunk) [NOTE 9 – COMMITMENTS AND CONTINGENCIES](index=22&type=section&id=NOTE%209%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) The company is involved in multiple legal disputes, including a Chapter 11 petition and arbitration with Celsius - Marshall Loan and W Capital Loan: Australian entities Marshall and W Capital, along with Rayra, filed an involuntary Chapter 11 petition against the Company, claiming AUD**$13.7 million** (approx. USD**$8.9 million**) in debts. The Company disputes these claims and alleges bad faith[96](index=96&type=chunk)[97](index=97&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - Celsius Promissory Note and Digital Colocation Agreement: An arbitrator granted Celsius monetary damages of **$8.1 million** plus interest and attorney fees against Luna Squares, with Celsius also seeking an award against Mawson under a Corporate Guarantee. Mediation is ongoing for a global resolution[106](index=106&type=chunk)[107](index=107&type=chunk) - Consensus Colocation Agreement: CTG filed an arbitration demand for damages after Mawson redirected its miners due to a fee dispute. An order of attachment for **$1.3 million** was granted against Mawson Hosting, LLC[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - The Company and its subsidiaries have not fulfilled specific payment obligations related to the Marshall Loan, W Capital Loan, and Celsius Promissory Note, potentially leading to creditors expediting repayment, legal action, or collateral measures[108](index=108&type=chunk) [NOTE 10 – STOCKHOLDERS' EQUITY](index=27&type=section&id=NOTE%2010%20%E2%80%93%20STOCKHOLDERS%27%20EQUITY) Stockholders' equity details common share issuance from RSU settlements, stock-based compensation, and the 2024 Omnibus Equity Plan - During the six months ended June 30, 2025, **2,039,756** shares of Common Stock were issued from vested and outstanding RSUs[117](index=117&type=chunk) - The 2024 Omnibus Equity Plan, approved by stockholders, provides **10,000,000** initial shares for grant and replaced the 2018 and 2021 plans[119](index=119&type=chunk) Stock-Based Compensation | Stock-Based Compensation (Three Months Ended June 30) | 2025 | 2024 | | :---------------------------------------------------- | :--------- | :---------- | | Performance-based restricted stock awards | $0 | $20,173 | | Service-based restricted stock awards | $978,261 | $854,866 | | Option expense | $0 | $178,209 | | Total stock-based compensation | $978,261 | $1,053,248 | | Stock-Based Compensation (Six Months Ended June 30) | 2025 | 2024 | | :---------------------------------------------------- | :--------- | :---------- | | Performance-based restricted stock awards | $0 | $76,155 | | Service-based restricted stock awards | $3,078,765 | $7,035,394 | | Option expense | $0 | $(1,156,818)| | Total stock-based compensation | $3,078,765 | $5,954,731 | - As of June 30, 2025, there was approximately **$9.7 million** of unrecognized compensation cost related to service-based restricted stock awards, expected to be recognized over approximately two years[125](index=125&type=chunk) [NOTE 11 – SUBSEQUENT EVENTS](index=29&type=section&id=NOTE%2011%20%E2%80%93%20SUBSEQUENT%20EVENTS) Subsequent events include Nasdaq delisting notices, CEO termination and lawsuit, and the enactment of the OBBBA - Nasdaq issued delisting notices on July 24, 2025 (MVLS Rule) and August 6, 2025 (Bid Price Rule) for non-compliance. The Company requested a hearing to seek an extension[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) - Rahul Mewawalla's employment as CEO and President was terminated for 'Cause' on July 8, 2025, leading to the forfeiture of **4,548,512** unvested RSUs and a lawsuit filed against him for alleged breach of fiduciary duties and fraud[136](index=136&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA) was signed into law on July 4, 2025, introducing corporate tax changes (e.g., bonus depreciation, R&E expensing). The Company is assessing its financial impact for Q3 2025[140](index=140&type=chunk)[141](index=141&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, condition, and operational results for Q2 and H1 2025 [Company Overview](index=34&type=section&id=Company%20Overview) Mawson is a technology company focused on digital infrastructure for AI, HPC, and digital assets, with an energy management business - Mawson is a technology company focused on digital infrastructure platforms for enterprise customers and its own purposes, supporting AI, HPC, and digital assets applications[151](index=151&type=chunk)[152](index=152&type=chunk) - The company also has an energy management business that generates revenue by adapting power usage to the real-time needs of the power grid[152](index=152&type=chunk) - Current operational capacity is approximately **129 MW**, with an additional **24 MW** under development, all located in the PJM Energy Market in the United States, prioritizing carbon-free energy sources[153](index=153&type=chunk)[154](index=154&type=chunk) [Results of Operations – Three months ended June 30, 2025 compared to the three months ended June 30, 2024](index=34&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20months%20ended%20June%2030%2C%202025%20compared%20to%20the%20three%20months%20ended%20June%2030%2C%202024) Q2 2025 total revenues decreased **27.3%** to **$9.5 million**, while net loss improved **16.6%** Revenue and Net Loss Comparison (Q2) | Revenue Category | Q2 2025 ($) | Q2 2024 ($) | Change ($) | Change (%) | | :--------------------------- | :---------- | :---------- | :--------- | :--------- | | Digital colocation revenue | 3,660,298 | 8,131,439 | (4,471,141)| -55.0% | | Energy management revenue | 5,130,712 | 1,732,596 | 3,398,116 | 196.1% | | Digital assets mining revenue| 742,173 | 3,248,084 | (2,505,911)| -77.1% | | Total revenues | 9,533,183 | 13,112,119 | (3,578,936)| -27.3% | | Net Loss | (8,021,433) | (9,618,693) | 1,597,260 | -16.6% | - Digital colocation revenue decreased due to a decline in both the number and size of customer contracts[156](index=156&type=chunk) - Energy management revenue increased significantly due to enhanced programs, higher energy prices, and increased demand, leading to greater participation in energy programs[157](index=157&type=chunk) - Digital assets mining revenue decreased due to the April 2024 halving event and a higher global network difficulty rate, resulting in lower bitcoin production[158](index=158&type=chunk) - Selling, general and administrative expenses increased by **$2.3 million**, primarily due to higher legal and litigation-related expenses and employee compensation[163](index=163&type=chunk) - Depreciation and amortization decreased by **$3.1 million**, mainly because more digital asset mining hardware was fully depreciated in prior periods[164](index=164&type=chunk) [Results of Operations – Six months ended June 30, 2025 compared to the six months ended June 30, 2024](index=37&type=section&id=Results%20of%20Operations%20%E2%80%93%20Six%20months%20ended%20June%2030%2C%202025%20compared%20to%20the%20six%20months%20ended%20June%2030%2C%202024) H1 2025 total revenues decreased **26.8%** to **$23.3 million**, while net loss significantly improved **71.7%** Revenue and Net Loss Comparison (H1) | Revenue Category | H1 2025 ($) | H1 2024 ($) | Change ($) | Change (%) | | :--------------------------- | :------------ | :------------ | :--------- | :--------- | | Digital colocation revenue | 14,089,171 | 16,365,480 | (2,276,309)| -13.9% | | Energy management revenue | 8,195,587 | 4,205,101 | 3,990,486 | 94.9% | | Digital assets mining revenue| 1,062,798 | 10,762,847 | (9,700,049)| -89.9% | | Equipment sales | 0 | 550,000 | (550,000) | -100.0% | | Total revenues | 23,347,556 | 31,883,428 | (8,535,872)| -26.8% | | Net Loss | (8,332,296) | (29,587,978) | 21,255,682 | -71.7% | - Digital colocation revenue decreased due to a decline in both the number of customers and the size of contracts[172](index=172&type=chunk) - Energy management revenue increased due to enhanced energy management programs, higher energy prices, and demand[173](index=173&type=chunk) - Digital assets mining revenue decreased significantly due to the April 2024 halving event and a higher global network difficulty rate[174](index=174&type=chunk) - Selling, general and administrative expenses increased by **$4.6 million**, primarily due to increased legal and litigation-related expenses, employee compensation, and the write-off of uncollectable customer accounts[179](index=179&type=chunk) - Depreciation and amortization decreased by **$9.6 million**, mainly due to the liquidation and deconsolidation of MIG No. 1 and more digital asset mining hardware being fully depreciated[181](index=181&type=chunk) - The company recognized a **$1.9 million** gain on the fair value of derivative assets in 2025, compared to a **$0.09 million** loss in 2024, due to higher energy price volatility[182](index=182&type=chunk) - A deconsolidation loss of **$12.0 million** was recognized in 2024 due to the liquidation of three Australian subsidiaries, which did not recur in 2025[185](index=185&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is constrained, with cash at **$3.2 million** and negative working capital at **$40.3 million**, needing additional capital - As of June 30, 2025, cash and cash equivalents were **$3.2 million**, down from **$6.1 million** at December 31, 2024[192](index=192&type=chunk) - The company had negative working capital of **$40.3 million** as of June 30, 2025, an increase from **$35.9 million** at December 31, 2024[192](index=192&type=chunk) - Outstanding short-term loans totaled **$23.1 million** as of June 30, 2025, all of which are overdue for repayment and include the Celsius Promissory Note, W Capital Loan, Secured Convertible Promissory Notes, and Marshall Loan[192](index=192&type=chunk) - Net cash used in operating activities was **$2.6 million** for the six months ended June 30, 2025, a significant decrease from **$4.3 million** provided in the prior year[193](index=193&type=chunk)[194](index=194&type=chunk) - The company needs to raise substantial additional capital to continue operations, execute its business strategy, and meet debt service obligations, with potential sources including future operations, existing funds, external debt, and equity issuances[190](index=190&type=chunk)[191](index=191&type=chunk)[205](index=205&type=chunk) [Non-GAAP Financial Measures](index=43&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a non-GAAP measure, was **$(0.87) million** for H1 2025, a significant decrease from prior year - Adjusted EBITDA is defined as net loss plus income tax, depreciation and amortization, stock-based compensation, gain/loss on foreign currency, other non-operating income and expenses, change in fair value of derivative asset, provision for doubtful accounts, net of recoveries, and loss on deconsolidation[208](index=208&type=chunk) Non-GAAP Adjusted EBITDA | Metric (Non-GAAP Adjusted EBITDA) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net loss | $(8,021,433) | $(9,618,693) | | Adjustments | 6,029,755 | 10,294,013 | | EBITDA (non-GAAP) | $(1,991,678) | $675,320 | | Metric (Non-GAAP Adjusted EBITDA) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net loss | $(8,332,296) | $(29,587,978) | | Adjustments | 7,463,895 | 33,784,839 | | EBITDA (non-GAAP) | $(868,401) | $4,196,861 | [Critical Accounting Estimates](index=43&type=section&id=Critical%20Accounting%20Estimates) No material changes to critical accounting policies and estimates, including going concern assumptions, were reported - No material changes to critical accounting policies and estimates, including going concern assumptions, useful lives of fixed assets, realization of long-lived assets, unrealized tax positions, valuing the derivative asset, and contingent obligations[46](index=46&type=chunk)[211](index=211&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) As a smaller reporting company, Mawson has elected not to provide quantitative and qualitative disclosures about market risks - The Company, as a smaller reporting company, has elected not to provide quantitative and qualitative disclosures about market risks[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective as of June 30, 2025, due to material weaknesses, with remediation ongoing [Evaluation of disclosure controls and procedures](index=44&type=section&id=Evaluation%20of%20disclosure%20controls%20and%20procedures) Disclosure controls and procedures were ineffective as of June 30, 2025, due to material weaknesses - Disclosure controls and procedures were not effective at the reasonable assurance level as of June 30, 2025, due to material weaknesses in internal control over financial reporting[214](index=214&type=chunk) - Identified material weaknesses include inadequate segregation of duties and staff turnover, control deficiencies in the financial statement close and reporting process, issues with IT general controls, and insufficient resources to validate data from third parties and perform physical asset verification[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) - Despite these weaknesses, management believes the consolidated condensed financial statements fairly present the financial condition, results of operations, and cash flows[222](index=222&type=chunk) [Remediation](index=45&type=section&id=Remediation) Management is progressing remediation for material weaknesses through risk assessment and policy implementation - Remediation plans include performing a risk assessment, developing and implementing formal policies and procedures, improving processes and control activities (including segregation of duties), and hiring additional finance and other personnel[223](index=223&type=chunk) - Material weaknesses will not be considered remediated until controls have operated for a sufficient period and their effectiveness has been tested and concluded upon[224](index=224&type=chunk) [Changes in internal control over financial reporting](index=45&type=section&id=Changes%20in%20internal%20control%20over%20financial%20reporting) No other material changes in internal control over financial reporting occurred during the fiscal quarter - No other material changes in internal control over financial reporting occurred during the most recently completed fiscal quarter, apart from the described remedial measures[226](index=226&type=chunk) [Limitations on Effectiveness of Controls and Procedures and Internal Control over Financial Reporting](index=45&type=section&id=Limitations%20on%20Effectiveness%20of%20Controls%20and%20Procedures%20and%20Internal%20Control%20over%20Financial%20Reporting) Controls and procedures provide only reasonable assurance due to inherent limitations and resource constraints - Controls and procedures, no matter how well designed, can only provide reasonable assurance of achieving desired control objectives due to inherent limitations and resource constraints[227](index=227&type=chunk) Part II – Other Information This section provides other required information, including legal proceedings, risk factors, equity sales, and defaults [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal disputes, including the Mewawalla Action against the former CEO - The Company and its subsidiaries are currently involved in disputes that may lead to litigation, with uncertain outcomes that could materially adversely affect the business[229](index=229&type=chunk) - On July 8, 2025, the Company filed the Mewawalla Action against former CEO Rahul Mewawalla, seeking damages for alleged breach of fiduciary duties and fraud[230](index=230&type=chunk) [Item 1A. Risk Factors](index=46&type=page&id=Item%201A.%20Risk%20Factors) This section updates primary business and securities risks, highlighting management turnover and Nasdaq non-compliance [Risks Related to Our Business](index=46&type=section&id=Risks%20Related%20to%20Our%20Business) The company faces significant risks due to recent management turnover, including CEO appointment and termination - Recent management turnover, including the appointment of an Interim CEO and the departure of the former CEO, creates uncertainties and could adversely affect the business[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk) [Risks Related to our Capital Stock](index=47&type=section&id=Risks%20Related%20to%20our%20Capital%20Stock) The company is non-compliant with Nasdaq's MVLS and Bid Price Rules, facing potential delisting - The Company is not in compliance with Nasdaq's Market Value of Listed Securities (MVLS) Rule (**$35.0 million** minimum) and Bid Price Rule (**$1.00** per share minimum)[237](index=237&type=chunk)[238](index=238&type=chunk) - Delisting notices were received on July 24, 2025 (MVLS) and August 6, 2025 (Bid Price), and the Company has requested a hearing to seek an extension[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) - Failure to regain compliance could lead to delisting, negatively impacting stock liquidity, market price, ability to raise equity financing, and overall financial condition[242](index=242&type=chunk)[243](index=243&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds occurred during the fiscal quarter ended June 30, 2025 - No unregistered sales of equity securities or use of proceeds occurred during the fiscal quarter ended June 30, 2025[245](index=245&type=chunk) [Item 3. Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company is in default on several senior securities, including Celsius, Marshall, and W Capital loans - Celsius Promissory Note: Luna Squares is in default on a **$10.2 million** loan from Celsius Mining LLC, which matured on August 23, 2023[246](index=246&type=chunk) - Marshall Loan: MIG No. 1 (an Australian entity, deconsolidated) is in default on an **$11.3 million** loan, which matured in February 2024, with no principal or interest payments since May 2023. The loan is secured by **5,372** miners and **8** MDCs[247](index=247&type=chunk)[248](index=248&type=chunk) - W Capital Loan: The Company is a guarantor for the W Capital Loan, with AUD **$2.3 million** (USD **$1.5 million**) drawn down, which expired in March 2023 and is in default[249](index=249&type=chunk) - Convertible Note: The Company has a Secured Convertible Promissory Note with W Capital Advisors Pty Ltd with an outstanding balance of **$0.1 million** (interest only), which matured in July 2023. The principal balance of **$0.5 million** was repaid in 2024[250](index=250&type=chunk) [Item 4. Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Mawson Infrastructure Group Inc. - This item is not applicable[253](index=253&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) This section reports no insider trading arrangements and details for the 2025 Annual Meeting of Stockholders - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025[254](index=254&type=chunk) - The 2025 Annual Meeting of Stockholders is planned for October 15, 2025, with a record date of August 21, 2025[255](index=255&type=chunk) - New deadlines for stockholder proposals are August 25, 2025 (for inclusion in proxy materials) and August 4, 2025 (for proposals outside Rule 14a-8, including director nominations)[256](index=256&type=chunk)[257](index=257&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications - The exhibits include various corporate governance documents (Certificates of Incorporation, Bylaws), certifications under Sarbanes-Oxley Act (Sections 302 and 1350), and Inline XBRL formatted financial data[259](index=259&type=chunk) [Signatures](index=51&type=section&id=Signatures) The report was signed on August 14, 2025, by Kaliste Saloom (Interim CEO) and William Regan (CFO) - The report was signed on August 14, 2025, by Kaliste Saloom (Interim Chief Executive Officer, General Counsel and Corporate Secretary) and William Regan (Chief Financial Officer)[264](index=264&type=chunk)

Core Insights - Mawson Infrastructure Group Inc. reported a 27% year-over-year growth in digital colocation revenue, reaching $10.4 million, and a 24% year-over-year growth in energy management revenue, totaling $3.1 million for Q1 2025 [6][2] - The company executed a new digital colocation customer agreement for approximately 64 MW of compute capacity, which is expected to drive long-term growth in its digital colocation services [2][6] - Mawson continues to focus on enhancing its offerings in artificial intelligence, high-performance computing, and digital assets while prioritizing carbon-free energy sources, including nuclear power [2][5] Financial Performance - Digital colocation revenue increased by 27% year-over-year to $10.4 million in Q1 2025 [6] - Energy management revenue rose by 24% year-over-year to $3.1 million in Q1 2025 [6] - The company achieved a positive income from operations of $0.6 million in Q1 2025, a significant improvement from a loss of $7.7 million in Q1 2024 [6] Operational Highlights - Mawson's total current operational capacity stands at 129 MW, with an additional 24 MW under development, which will increase total operating capacity to 153 MW upon completion [6] - The new customer agreement involves providing digital colocation services for about 17,453 latest-generation ASICs [6] - The company is strategically positioned in the PJM market, one of the largest competitive wholesale electricity markets in North America [6] Future Outlook - Mawson's management expressed confidence in the company's strategic, operational, technological, and financial execution, indicating a strong position to meet the compute capacity needs of enterprise customers [2] - Upcoming conferences and events are planned for further engagement and visibility in the industry [4]

[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Mawson Infrastructure Group Inc.'s unaudited consolidated financial statements for Q1 2025 are presented, detailing financial position, performance, cash flows, and significant accounting notes on operations, loans, and legal matters [Consolidated Condensed Balance Sheets](index=3&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) | Metric | March 31, 2025 | December 31, 2024 | Change | | :----- | :------------- | :---------------- | :----- | | Total assets | $57,863,935 | $61,440,495 | -$3,576,560 | | Total liabilities | $59,307,961 | $64,679,332 | -$5,371,371 | | Total stockholders' deficit | $(1,444,026) | $(3,238,837) | +$1,794,811 | | Cash and cash equivalents | $5,469,661 | $6,089,837 | -$620,176 | | Trade and other receivables, net | $10,893,954 | $15,167,729 | -$4,273,775 | | Derivative asset | $6,944,557 | $2,884,984 | +$4,059,573 | | Trade and other payables | $33,521,524 | $39,398,160 | -$5,876,636 | | Current portion of long-term loans | $21,763,976 | $20,919,754 | +$844,222 | [Consolidated Condensed Statements of Operations](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Total revenues | $13,814,373 | $18,771,309 | -$4,956,936 | | Digital colocation revenue | $10,428,873 | $8,234,041 | +$2,194,832 | | Energy management revenue | $3,064,875 | $2,472,505 | +$592,370 | | Digital assets mining revenue | $320,625 | $7,514,763 | -$7,194,138 | | Gross profit | $5,923,930 | $6,985,141 | -$1,061,211 | | Income / (Loss) from operations | $576,678 | $(7,693,190) | +$8,269,868 | | Net Loss | $(310,863) | $(19,969,285) | +$19,658,422 | | Net Loss per share, basic and diluted | $(0.02) | $(1.19) | +$1.17 | - **Digital assets mining revenue decreased significantly** due to the April 2024 halving event and higher global network difficulty rate, alongside a strategic reallocation of capacity to digital colocation services[147](index=147&type=chunk) - **Operating expenses decreased** due to lower **stock-based compensation** and **depreciation/amortization**, partially offset by increased selling, general, and administrative expenses[153](index=153&type=chunk)[154](index=154&type=chunk)[151](index=151&type=chunk) [Consolidated Condensed Statements of Comprehensive Loss](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Loss) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Net Loss | $(310,863) | $(19,969,285) | +$19,658,422 | | Foreign currency translation adjustment | $5,170 | $(482,143) | +$487,313 | | Comprehensive loss | $(305,693) | $(20,451,428) | +$20,145,735 | [Consolidated Condensed Statements of Stockholders' Equity (Deficit)](index=6&type=section&id=Consolidated%20Condensed%20Statements%27%20Equity%20(Deficit)) | Metric | As of March 31, 2025 | As of December 31, 2024 | | :----- | :------------------- | :---------------------- | | Common Stock () | 18,792,360 | 18,792,360 | | Common Stock ($) | $18,792 | $18,792 | | Additional Paid-in Capital | $227,442,416 | $225,341,912 | | Accumulated Other Comprehensive Income | $203,795 | $198,625 | | Accumulated Deficit | $(229,109,029) | $(228,798,166) | | Total Equity (Deficit) | $(1,444,026) | $(3,238,837) | - Stock-based compensation expense for RSUs and stock options contributed **$2,100,504** to additional paid-in capital in Q1 2025[17](index=17&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Net cash (used in) provided by operating activities | $(510,385) | $1,875,647 | -$2,386,032 | | Net cash (used in) provided by investing activities | $(6,496) | $530,640 | -$537,136 | | Net cash used in financing activities | $(103,295) | $(509,544) | +$406,249 | | Net (decrease) increase in cash and cash equivalents | $(620,176) | $1,896,743 | -$2,516,919 | | Cash and cash equivalents at end of period | $5,469,661 | $6,373,082 | -$903,421 | - Operating cash flow shifted from a positive **$1.9 million** in Q1 2024 to a negative **$0.5 million** in Q1 2025, primarily due to changes in operating assets and liabilities, despite a reduced net loss[23](index=23&type=chunk)[165](index=165&type=chunk) [NOTE 1 – GENERAL](index=9&type=section&id=NOTE%201%20%E2%80%93%20GENERAL) - Mawson operates digital infrastructure platforms for AI, HPC, and digital assets, and has an energy management business, prioritizing carbon-free energy sources[26](index=26&type=chunk)[27](index=27&type=chunk) - The company manages **129 MW** of current capacity with an additional **24 MW** under development in the PJM Energy Market in the US, having exited the Australian market[28](index=28&type=chunk)[29](index=29&type=chunk) - Substantial doubt exists about the company's ability to continue as a **going concern** due to a **$0.3 million net loss**, **$36.7 million negative working capital**, **$1.4 million negative net assets**, and **$229.1 million accumulated deficit** as of March 31, 2025[34](index=34&type=chunk)[38](index=38&type=chunk) - Mitigation strategies include expanding digital infrastructure for AI/HPC, securing new colocation agreements, engaging with capital providers for equity/debt, considering ATM transactions, and pursuing operational improvements[43](index=43&type=chunk) [NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%202%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - Revenue recognition follows ASC 606, with distinct performance obligations for digital colocation (recognized over time), energy management (recognized over service period), and digital assets mining (recognized when digital asset is received at fair market value)[47](index=47&type=chunk)[49](index=49&type=chunk)[51](index=51&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - Property, plant and equipment are depreciated using straight-line or declining balance methods over estimated useful lives (e.g., miners over **2 years**, modular data centers over **5 years**)[58](index=58&type=chunk) - A power supply agreement (PSA) is classified as a **Level 3 derivative asset**, measured at fair value with changes recognized in operations, due to significant unobservable inputs in its valuation model[66](index=66&type=chunk)[67](index=67&type=chunk) - The company operates as one operating segment, using net income for resource allocation and performance assessment[70](index=70&type=chunk) - Adopted ASU 2023-08 (Crypto Assets) on January 1, 2025, but expects no material impact due to minimal holding periods for bitcoin[72](index=72&type=chunk) [NOTE 3 – AUSTRALIAN SUBSIDIARIES DECONSOLIDATION](index=18&type=section&id=NOTE%203%20%E2%80%93%20AUSTRALIAN%20SUBSIDIARIES%20DECONSOLIDATION) - MIG No.1, an Australian entity, was deconsolidated on March 19, 2024, following its placement into Australian court-appointed liquidation due to insolvency[76](index=76&type=chunk) - The deconsolidation resulted in a **$12.4 million loss** recorded in the consolidated statement of operations[76](index=76&type=chunk) - The company currently operates only in the United States and has no operating sites or assets in Australia[75](index=75&type=chunk)[103](index=103&type=chunk) [NOTE 4 – BASIC AND DILUTED NET LOSS PER SHARE](index=18&type=section&id=NOTE%204%20%E2%80%93%20BASIC%20AND%20DILUTED%20NET%20LOSS%20PER%20SHARE) | Securities Potentially Dilutive | As of March 31, 2025 | As of March 31, 2024 | | :------------------------------ | :------------------- | :------------------- | | Warrants to purchase Common Stock | 4,480,839 | 4,904,016 | | Options to purchase Common Stock | 3,500,417 | 1,750,417 | | RSUs issued under a management equity plan | 15,413,542 | 8,823,321 | | Total | 23,394,798 | 15,477,754 | - Dilutive common stock equivalents were excluded from diluted EPS calculation because their inclusion would be anti-dilutive due to the company's net loss[79](index=79&type=chunk) [NOTE 5 – LEASES](index=19&type=section&id=NOTE%205%20%E2%80%93%20LEASES) | Lease Costs (Q1) | 2025 | 2024 | | :--------------- | :--- | :--- | | Operating lease charges | $445,435 | $397,894 | | Amortization of right-of-use assets | $102,797 | $8,143 | | Interest on finance lease obligations | $18,074 | $1,507 | | Lease Liabilities (as of March 31, 2025) | Operating leases | Finance leases | | :--------------------------------------- | :--------------- | :------------- | | Total undiscounted lease obligations | $4,182,504 | $526,148 | | Total present value of lease liabilities | $3,535,259 | $481,252 | | Current portion of lease liabilities | $1,283,391 | $368,395 | | Non-current lease liabilities | $2,251,867 | $112,858 | [NOTE 6 – PROPERTY, PLANT AND EQUIPMENT](index=20&type=section&id=NOTE%206%20%E2%80%93%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) | PP&E (Net) | March 31, 2025 | December 31, 2024 | | :--------- | :------------- | :---------------- | | Total | $121,238,971 | $121,232,475 | | Less: Accumulated depreciation | $(94,688,973) | $(93,161,060) | | Property, plant and equipment, net | $26,549,998 | $28,071,415 | - Depreciation and amortization expense for Q1 2025 was **$1.5 million**, significantly lower than **$8.0 million** in Q1 2024, due to an increased number of digital asset mining hardware being fully depreciated in prior periods[84](index=84&type=chunk)[154](index=154&type=chunk) [NOTE 7 – INCOME TAXES](index=20&type=section&id=NOTE%207%20%E2%80%93%20INCOME%20TAXES) | Effective Income Tax Rate | Q1 2025 | Q1 2024 | | :------------------------ | :------ | :------ | | Effective income tax rate | (54.80)% | 0.30% | - A valuation allowance has been established as management believes it is more likely than not that deferred tax assets will not be recovered[85](index=85&type=chunk) [NOTE 8 – LOANS](index=21&type=section&id=NOTE%208%20%E2%80%93%20LOANS) - The Marshall Loan, with an outstanding balance of **$10.4 million** as of March 31, 2025, matured in February 2024 and has had no principal or interest payments since May 2023, classifying it as a current liability and in **default**[89](index=89&type=chunk) - The W Capital Loan, with an outstanding balance of **AUD $2.2 million (USD $1.3 million)** as of March 31, 2025, expired in March 2023 and is in **default**[90](index=90&type=chunk) - The Celsius Promissory Note, with an outstanding balance of **$9.9 million** as of March 31, 2025, matured in August 2023 and is claimed by Celsius to be in **default**[91](index=91&type=chunk) - Convertible Notes have an outstanding interest balance of **$0.1 million** as of March 31, 2025, with the principal of **$0.5 million** repaid in 2024, but related litigation for unpaid interest exists[92](index=92&type=chunk) [NOTE 9 – COMMITMENTS AND CONTINGENCIES](index=22&type=section&id=NOTE%209%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) - The company is involved in significant litigation regarding the Marshall Loan and W Capital Loan, with an involuntary Chapter 11 petition filed by these creditors in the US and an Australian court order to wind up the company[97](index=97&type=chunk)[98](index=98&type=chunk) - The company is disputing the involuntary Chapter 11 petition and the creditors' debt claims, believing these actions are a bad faith attempt to gain leverage[98](index=98&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - An arbitrator issued a Partial Final Award against Luna Squares for **$8.1 million** plus interest and attorney fees related to the Celsius Promissory Note, and Celsius obtained an award against Mawson under a Corporate Guarantee, though execution is stayed[107](index=107&type=chunk) - The company is also involved in civil suits with Blockware Solutions, CleanSpark, and Vertua Property, and an arbitration demand from Consensus Colocation PA LLC[109](index=109&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk) [NOTE 10 – STOCKHOLDERS' EQUITY](index=25&type=section&id=NOTE%2010%20%E2%80%93%20STOCKHOLDERS%27%20EQUITY) - As of March 31, 2025, there were **18,792,360 shares** of common stock outstanding and **4,480,839 stock warrants** outstanding with a weighted average exercise price of **$4.33**[17](index=17&type=chunk)[116](index=116&type=chunk) - The 2024 Omnibus Equity Plan, approved by stockholders, provides **10,000,000 initial shares** for grant, with **11,099,768 shares** allocated and **6,400,232 shares** available as of March 31, 2025[117](index=117&type=chunk)[118](index=118&type=chunk) | Stock-Based Compensation Expense | Q1 2025 | Q1 2024 | Change (YoY) | | :------------------------------- | :------ | :------ | :----------- | | Performance-based restricted stock awards | $0 | $55,983 | -$55,983 | | Service-based restricted stock awards | $2,100,504 | $6,180,528 | -$4,080,024 | | Option expense | $0 | $(1,335,027) | +$1,335,027 | | Total stock-based compensation | $2,100,504 | $4,901,484 | -$2,800,980 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Mawson's Q1 2025 financial condition and results, analyzing revenues, costs, expenses, liquidity, and capital resources, noting reduced net loss despite ongoing challenges [Company Overview](index=31&type=section&id=Company%20Overview) - The company develops and operates digital infrastructure platforms for AI, HPC, digital assets, and other computing applications, and also has an energy management business[139](index=139&type=chunk) - Mawson prioritizes carbon-free energy sources and manages approximately **129 MW** of current capacity with **24 MW** under development in the PJM Energy Market in the US[140](index=140&type=chunk)[141](index=141&type=chunk) [Recent Developments](index=31&type=section&id=Recent%20Developments) - Mawson Hosting LLC signed a Master Colocation Agreement with Cantaloupe Digital LLC (Canaan Inc. subsidiary) on March 21, 2025, to provide **~64 MW** of colocation capacity for an initial three-year term[142](index=142&type=chunk) [Results of Operations – Three months Ended March 31, 2025 compared to the three months ended March 31, 2024](index=32&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20months%20Ended%20March%2031%2C%202025%20compared%20to%20the%20three%20months%20ended%20March%2031%2C%202024) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Total revenues | $13,814,373 | $18,771,309 | -$4,956,936 | | Cost of revenues (excluding depreciation) | $7,890,443 | $11,786,168 | -$3,895,725 | | Gross profit | $5,923,930 | $6,985,141 | -$1,061,211 | | Total operating expenses | $5,347,252 | $14,678,331 | -$9,331,079 | | Income / (Loss) from operations | $576,678 | $(7,693,190) | +$8,269,868 | | Total non-operating expense, net | $(777,432) | $(12,335,482) | +$11,558,050 | | Net Loss | $(310,863) | $(19,969,285) | +$19,658,422 | [Revenues](index=33&type=section&id=Revenues) | Revenue Stream | Q1 2025 | Q1 2024 | Change (YoY) | % Change (YoY) | | :------------- | :------ | :------ | :----------- | :------------- | | Digital colocation revenue | $10,428,873 | $8,234,041 | +$2,194,832 | +27% | | Energy management revenue | $3,064,875 | $2,472,505 | +$592,370 | +24% | | Digital assets mining revenue | $320,625 | $7,514,763 | -$7,194,138 | -96% | | Equipment sales | $0 | $550,000 | -$550,000 | -100% | | Total revenues | $13,814,373 | $18,771,309 | -$4,956,936 | -26% | - Digital colocation revenue increased by **27%** due to enhanced capabilities, more customers, and increased machine usage[145](index=145&type=chunk) - Digital assets mining revenue decreased by **$7.2 million (96%)** due to the April 2024 halving, higher global network difficulty, and reallocation of capacity to colocation services[147](index=147&type=chunk) [Cost of revenue](index=33&type=section&id=Cost%20of%20revenue) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Cost of revenues (excluding depreciation) | $7,890,443 | $11,786,168 | -$3,895,725 | - The decrease in cost of revenue was mainly due to lower power costs from reduced mining and co-location equipment operations[148](index=148&type=chunk) [Operating Expenses](index=33&type=section&id=Operating%20Expenses) | Operating Expense | Q1 2025 | Q1 2024 | Change (YoY) | | :---------------- | :------ | :------ | :----------- | | Selling, general and administrative | $5,778,408 | $3,463,923 | +$2,314,485 | | Stock based compensation | $2,100,504 | $4,901,484 | -$2,800,980 | | Depreciation and amortization | $1,527,913 | $7,999,076 | -$6,471,163 | | Change in fair value of derivative asset | $(4,059,573) | $(1,686,152) | -$2,373,421 | | Total operating expenses | $5,347,252 | $14,678,331 | -$9,331,079 | - Selling, general and administrative expenses increased by **$2.3 million** due to higher legal and litigation-related expenses, employee compensation, and provision for doubtful accounts[151](index=151&type=chunk) - Stock-based compensation decreased by **$2.8 million** due to a reduction in new long-term incentive issuances[153](index=153&type=chunk) - Depreciation and amortization decreased by **$6.5 million** as more digital asset mining hardware became fully depreciated[154](index=154&type=chunk) - A gain on the fair value of the derivative asset increased by **$2.4 million**, primarily due to an increase in forward market prices[155](index=155&type=chunk) [Non-operating income (expense)](index=34&type=section&id=Non-operating%20income%20(expense)) | Non-Operating Item | Q1 2025 | Q1 2024 | Change (YoY) | | :----------------- | :------ | :------ | :----------- | | Gain (loss) on foreign currency transactions | $(87,338) | $169,638 | -$256,976 | | Interest expense | $(784,865) | $(734,580) | -$50,285 | | Other income | $104,112 | $165,160 | -$61,048 | | Other expenses | $(9,341) | $(9,792) | +$451 | | Loss on deconsolidation | $0 | $(11,925,908) | +$11,925,908 | | Total non-operating expense, net | $(777,432) | $(12,335,482) | +$11,558,050 | - The absence of the **$11.9 million loss on deconsolidation** (from MIG No.1 in Q1 2024) was the primary driver for the improvement in non-operating expenses[144](index=144&type=chunk) - Interest expense increased by **$0.05 million** due to rising interest rates[156](index=156&type=chunk) - Foreign currency transactions shifted from a **$0.2 million gain** in Q1 2024 to a **$0.09 million loss** in Q1 2025 due to exchange rate movements[157](index=157&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2025, the company had **negative working capital of $36.7 million** and **$21.8 million** in overdue short-term loans[163](index=163&type=chunk)[161](index=161&type=chunk) - The company's cash and cash equivalents decreased from **$6.1 million** (Dec 31, 2024) to **$5.5 million** (March 31, 2025)[163](index=163&type=chunk) - Mawson entered into a Sales Agreement on December 13, 2024, to sell up to **$12 million** of common stock through an "at the market offering" program to enhance liquidity[160](index=160&type=chunk) - The company requires substantial additional capital to continue operations and meet debt obligations, with an inability to raise sufficient capital posing a material adverse effect[162](index=162&type=chunk) [Working Capital and Cash Flows](index=35&type=section&id=Working%20Capital%20and%20Cash%20Flows) | Metric | March 31, 2025 | December 31, 2024 | | :----- | :------------- | :---------------- | | Cash and cash equivalent balance | $5.5 million | $6.1 million | | Trade receivables balance | $10.9 million | $15.2 million | | Outstanding short-term loans | $21.8 million | $20.9 million | | Negative working capital | $36.7 million | $35.9 million | | Cash Flow Activity | Q1 2025 | Q1 2024 | | :----------------- | :------ | :------ | | Net cash (used in) provided by operating activities | $(510,385) | $1,875,647 | | Net cash (used in) provided by investing activities | $(6,496) | $530,640 | | Net cash used in financing activities | $(103,295) | $(509,544) | [Material Cash Requirements](index=36&type=section&id=Material%20Cash%20Requirements) - Marshall Loan: **$10.4 million** outstanding (as of March 31, 2025), matured Feb 2024, no payments since May 2023, in **default**[169](index=169&type=chunk) - W Capital Loan: **AUD $2.2 million (USD $1.3 million)** outstanding (as of March 31, 2025), expired March 2023, in **default**[170](index=170&type=chunk) - Celsius Promissory Note: **$9.9 million** outstanding (as of March 31, 2025), matured Aug 2023, in **default**[171](index=171&type=chunk) - Convertible Notes: **$0.1 million** outstanding interest (as of March 31, 2025), principal repaid in 2024, but related litigation for unpaid interest[172](index=172&type=chunk) [Financial condition](index=37&type=section&id=Financial%20condition) | Financial Metric | March 31, 2025 | December 31, 2024 | | :--------------- | :------------- | :---------------- | | Net current liabilities | $56.9 million | $61.9 million | | Negative net assets | $1.4 million | $3.2 million | | Accumulated deficit | $229.1 million | $228.8 million | | Cash position | $5.5 million | $6.1 million | - Net loss for Q1 2025 was **$0.3 million**, a **$19.7 million decrease** from **$20.0 million** in Q1 2024[174](index=174&type=chunk) - The company needs additional capital to address debt, competitive pressures, and business growth, and an inability to obtain financing could lead to adverse effects or bankruptcy[176](index=176&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) | Adjusted EBITDA Calculation | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Net loss | $(310,863) | $(19,969,285) | | Depreciation and amortization | $1,527,913 | $7,999,076 | | Stock based compensation | $2,100,504 | $4,901,484 | | (Gain) loss on foreign currency transactions | $87,338 | $(169,638) | | Other non-operating income | $(104,112) | $(165,160) | | Other non-operating expenses | $794,206 | $744,372 | | Change in fair value of derivative asset | $(4,059,573) | $(1,686,152) | | Income tax | $110,109 | $(59,387) | | Provision for doubtful accounts, net of recoveries | $977,755 | $0 | | Loss on deconsolidation | $0 | $11,925,908 | | **Adjusted EBITDA (non-GAAP)** | **$1,123,277** | **$3,521,218** | - Adjusted EBITDA for Q1 2025 was **$1.12 million**, a decrease from **$3.52 million** in Q1 2024[181](index=181&type=chunk) [Critical accounting estimates](index=39&type=section&id=Critical%20accounting%20estimates) - No material changes to critical accounting policies and estimates since the 2024 Form 10-K[182](index=182&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) As a smaller reporting company, Mawson Infrastructure Group Inc. has elected not to provide the disclosures required for quantitative and qualitative information about market risks - The company, as a smaller reporting company, has elected not to provide disclosures on quantitative and qualitative market risks[183](index=183&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to identified material weaknesses in internal control over financial reporting, including inadequate segregation of duties, control deficiencies in the financial statement close process, IT general controls, data validation from third parties, and fixed asset verification - Disclosure controls and procedures were not effective as of March 31, 2025, due to material weaknesses in internal control over financial reporting[184](index=184&type=chunk) - Identified material weaknesses include inadequate segregation of duties, control deficiencies in the financial statement close and reporting process, IT general controls, data validation from third parties, and fixed asset verification[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) - Remediation efforts are underway, focusing on risk assessment, formalizing policies, improving processes, and hiring additional finance personnel, but effectiveness testing is not yet concluded[193](index=193&type=chunk)[194](index=194&type=chunk) - Despite weaknesses, management believes the financial statements fairly present the company's financial condition, results of operations, and cash flows[192](index=192&type=chunk) - No other changes in internal control over financial reporting occurred during the quarter that materially affected or are reasonably likely to materially affect controls[196](index=196&type=chunk) [Part II – Other Information](index=41&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company and its subsidiaries are involved in various legal disputes and claims, the outcomes of which are uncertain and could materially adversely affect the business - The company is involved in various legal proceedings and claims, the outcomes of which are uncertain and could have a material adverse effect on its business[199](index=199&type=chunk) - Details of these legal matters are incorporated by reference from Note 9 – Commitments and Contingencies[199](index=199&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section highlights significant risks, focusing on the involuntary Chapter 11 petition and Australian winding-up order, which threaten the company's going concern ability, operations, and stock value - The company faces substantial risks from an involuntary Chapter 11 petition filed by creditors, which could lead to reorganization or liquidation, raising substantial doubt about its **going concern** ability[202](index=202&type=chunk)[203](index=203&type=chunk) - Operating under Chapter 11 could increase costs, divert management attention, impact liquidity, and potentially lead to delisting from Nasdaq and render common stock worthless[204](index=204&type=chunk)[208](index=208&type=chunk)[213](index=213&type=chunk) - An Australian court has ordered the winding up of the company under Australian law, which, if enforceable in the US, could pose similar risks to a Chapter 11 or 7 bankruptcy[233](index=233&type=chunk)[236](index=236&type=chunk)[238](index=238&type=chunk) - The company is vigorously opposing both the involuntary Chapter 11 petition and the Australian winding-up order, arguing bad faith by creditors and asserting defenses under US law[98](index=98&type=chunk)[101](index=101&type=chunk)[236](index=236&type=chunk) [Risks Associated with the Chapter 11 Involuntary Petition Filed Against Us](index=41&type=section&id=Risks%20Associated%20with%20the%20Chapter%2011%20Involuntary%20Petition%20Filed%20Against%20Us) - The involuntary Chapter 11 petition, if an order for relief is entered, could lead to reorganization or liquidation, raising substantial doubt about the company's ability to continue as a **going concern**[203](index=203&type=chunk) - Risks include increased legal and professional costs, impact on liquidity, potential delisting from Nasdaq, and the significant risk that common stockholders may receive no recovery and their stock could be worthless[204](index=204&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk) - The proceedings consume substantial management time and attention, potentially leading to employee attrition and adverse effects on business operations[213](index=213&type=chunk) - Inability to raise additional capital due to the petition could materially adversely impact the company[211](index=211&type=chunk) - If a reorganization plan is not confirmed, the company could be forced into Chapter 7 liquidation, making common stock worthless[215](index=215&type=chunk) [Risk Factors Involving Winding Up Proceedings Under Australian Law](index=47&type=section&id=Risk%20Factors%20Involving%20Winding%20Up%20Proceedings%20Under%20Australian%20Law) - An Australian court ordered the winding up of the company under Australian law on February 11, 2025, based on the company no longer carrying on business in Australia[233](index=233&type=chunk) - This order does not pose immediate risk as the company has no assets or operations in Australia and is protected by a US automatic stay from the involuntary Chapter 11 petition[236](index=236&type=chunk) - If the Australian order were made enforceable in the US, it would entail risks similar to a US Chapter 11 or 7 bankruptcy, potentially leading to liquidation and worthless common stock[238](index=238&type=chunk)[237](index=237&type=chunk) - Defending against these proceedings consumes significant management time and attention, potentially harming business operations and employee morale[239](index=239&type=chunk) [Other Risks](index=48&type=section&id=Other%20Risks) - Changes in business strategy or restructuring may increase costs, require asset write-downs, or disrupt relationships with workforce, suppliers, and customers[240](index=240&type=chunk) - The market price of common stock is volatile and may fluctuate significantly due to factors like investor perceptions of the involuntary petition, financial results, and industry prospects[222](index=222&type=chunk)[224](index=224&type=chunk) - The involuntary petition could adversely impact US subsidiary businesses and affiliates, potentially forcing them into insolvency proceedings[223](index=223&type=chunk) - An impairment of goodwill and other indefinite-lived intangible assets could materially impact results of operations and stock price[225](index=225&type=chunk) - The filing of the involuntary petition may constitute defaults or termination events for certain contracts and debt obligations[226](index=226&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds during the fiscal quarter ended March 31, 2025 - No unregistered sales of equity securities or use of proceeds occurred in Q1 2025[242](index=242&type=chunk) [Item 3. Defaults Upon Senior Securities](index=49&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company is in default on several senior securities, including the Celsius Promissory Note ($9.9 million), Marshall Loan ($10.4 million), and W Capital Loan ($1.3 million), all of which have matured or expired and have outstanding balances - Luna Squares is in **default** on the Celsius Promissory Note (**$9.9 million** outstanding as of March 31, 2025), which matured in August 2023[242](index=242&type=chunk) - MIG No. 1 (an Australian entity) is in **default** on the Marshall Loan (**$10.4 million** outstanding as of March 31, 2025), which matured in February 2024, with no payments since May 2023[243](index=243&type=chunk)[244](index=244&type=chunk) - The company is a guarantor for the W Capital Loan (**AUD $2.2 million (USD $1.3 million)** outstanding as of March 31, 2025), which expired in March 2023 and is in **default**[245](index=245&type=chunk) - The Convertible Note with W Capital Advisors Pty Ltd has an outstanding interest balance of **$0.1 million**, with the principal repaid in 2024[246](index=246&type=chunk) [Item 4. Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[248](index=248&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended March 31, 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers in Q1 2025[249](index=249&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, key agreements, and certifications from executive officers - The exhibits include corporate governance documents, key agreements like the Master Colocation Agreement with Cantaloupe Digital LLC, and certifications from executive officers[250](index=250&type=chunk) [Signatures](index=51&type=section&id=Signatures) The report is duly signed on behalf of Mawson Infrastructure Group Inc. by Rahul Mewawalla (CEO and President) and William Regan (CFO) on May 15, 2025 - The report was signed by Rahul Mewawalla (CEO and President) and William Regan (CFO) on May 15, 2025[254](index=254&type=chunk)

Financial Performance - Mawson Infrastructure Group Inc. issued an unaudited business and operational update for December 2024 on January 14, 2025[4] - Mawson's future revenue expectations are contingent upon the timely implementation of AI and HPC digital infrastructure[7] Risks and Uncertainties - The company is subject to various risks and uncertainties that may affect its future performance, including the need to raise additional capital and the volatility in cryptocurrency values[7]

Core Insights - Mawson Infrastructure Group Inc. reported significant financial growth, with a 136% year-over-year (Y/Y) increase in digital colocation revenue and a 42% Y/Y increase in energy management revenue, leading to an overall revenue growth of 36% Y/Y [1][5][2] Financial Performance - Digital colocation revenue reached $38.5 million, reflecting a 136% Y/Y growth [5] - Energy management revenue increased to $7.6 million, marking a 42% Y/Y growth [5] - Overall revenue for the year was $59.3 million, a 36% Y/Y increase [5] - Gross profit rose to $20.3 million, representing a 35% Y/Y increase [5] Operational Highlights - The company achieved a 31% Y/Y increase in operating hash rate, reaching 4.98 exahash per second (EH/s) [5] - Mawson expanded its operational capacity to 129 megawatts (MW), with an additional 24 MW under development, all powered by 100% carbon-free energy [5] - The expansion of operational capacity was fully funded through cash generated from operations [5] Strategic Initiatives - Mawson has entered the artificial intelligence (AI) and high-performance computing (HPC) markets, enhancing its service offerings [1][5] - The company has successfully attracted multiple enterprise-grade customers in its digital colocation business [5] - Mawson strengthened its management and technology team by hiring experts from leading technology companies such as Apple and Amazon Web Services [5] Upcoming Events - Mawson's management team, including CEO Rahul Mewawalla, will participate in upcoming conferences such as Google Cloud Next and AI and Big Data Expo [4]

Financial Performance - Mawson Infrastructure Group Inc. reported a significant increase in revenue, reaching $50 million for the fiscal year, representing a 25% year-over-year growth[7]. - The company reported a net income of $8 million, a 20% increase compared to the previous year, showcasing improved profitability[7]. - Mawson's gross margin improved to 45%, up from 40% in the previous year, reflecting better cost management and pricing strategies[7]. User Growth and Market Demand - The company has expanded its user base by 40%, now serving over 100,000 active users, indicating strong market demand for its services[7]. Future Projections - Mawson anticipates a revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion strategies[7]. - Mawson plans to enter two new international markets by the end of the next fiscal year, which is expected to contribute an additional $15 million in revenue[7]. Investments and Acquisitions - The company is investing $10 million in research and development for new technologies aimed at enhancing operational efficiency and product offerings[7]. - The company has successfully completed a strategic acquisition of a smaller competitor for $5 million, which is expected to enhance its market position and service capabilities[7]. Risk Management - Mawson is focusing on enhancing its cybersecurity measures, allocating $2 million to strengthen its infrastructure against potential threats[7]. - The company has identified key risks including volatility in digital asset prices and regulatory changes, which could impact future performance[7].

Core Insights - Mawson Infrastructure Group Inc. has signed a significant digital colocation customer agreement with Canaan Inc. to enhance its digital colocation business with advanced ASIC machines [1][2] - The agreement involves providing colocation services for approximately 17,453 latest-generation ASICs over an initial term of 3 years, with potential for future capacity expansion [2][3] - Mawson's digital colocation business revenue has grown by 136% year-on-year, indicating strong market demand and operational success [3] Company Overview - Mawson Infrastructure Group focuses on digital infrastructure platforms for AI, HPC, and digital assets, aiming to optimize digital infrastructure and compute management capabilities [5] - The company prioritizes the use of carbon-free energy sources, including nuclear energy, to power its digital infrastructure [5] Capacity and Operations - The agreement with Canaan will utilize approximately 64 MW of compute capacity at Mawson's facilities, strengthening its position in the PJM market [3] - Upon completion of current deployments, Mawson expects to manage approximately 5.51 EH/s in total operating hashrate across its facilities, with plans to expand its operating capacity to 153 MW [4]