Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41163 TERAWULF INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer ...

Table of Contents 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, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41163 TERAWULF INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incor ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41163 TERAWULF INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Emplo ...

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41163 TERAWULF INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer i ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 9 Federal Street 21601 Easton MD (Address of principal executive offices) (State) (Zip Code) (410) 770-9500 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION ...

Table of Contents 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, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41163 TERAWULF INC. (Exact name of registrant as specified in its charter) DE 87-1909475 (State or other jurisdiction of (I.R.S. ...

Financial Performance - Net sales for the three months ended September 30, 2021, increased to $4,743,452, up 51.4% from $3,134,984 in the same period of 2020[13] - Gross profit for the nine months ended September 30, 2021, was $4,007,726, representing a 66.1% increase compared to $2,411,906 for the same period in 2020[13] - The net loss for the three months ended September 30, 2021, was $851,736, compared to a net loss of $273,996 in the same period of 2020[13] - For the nine months ended September 30, 2021, total net sales were $12,068,208, a 31.5% increase from $9,204,615 in the same period of 2020[58][59] - Gross profit for the three months ended September 30, 2021 was $1,582,090, up from $873,779 in the same period of 2020, reflecting a gross margin improvement[56][57] - Gross profit for the first nine months of 2021 was $4.0 million, or 33.2% of sales, compared to $2.4 million, or 26.2% of sales in the same period of 2020[103] Assets and Liabilities - Total current assets decreased to $5,214,388 as of September 30, 2021, down 33.1% from $7,803,453 as of December 31, 2020[12] - Total liabilities decreased to $2,198,303 as of September 30, 2021, down 38.9% from $3,596,053 as of December 31, 2020[12] - Total stockholders' equity decreased to $10,181,903 as of September 30, 2021, down 14.0% from $11,839,346 as of December 31, 2020[12] - Cash at the end of the period was $1,500,847, a decrease of 59.4% from $3,693,845 at the beginning of the period[21] - As of September 30, 2021, total trade receivables amounted to $1,875,177, down from $2,119,213 as of December 31, 2020[62] Expenses - Research and development expenses for the nine months ended September 30, 2021, were $398,425, down 23.6% from $521,334 in the same period of 2020[13] - Selling, general and administrative expenses in Q3 2021 were $2.3 million, or 47.9% of sales, compared to $980,000 or 31.3% of sales in Q3 2020, primarily due to $1.1 million in professional service and stock compensation expenses related to a strategic business combination[99] - Research and development expenses for Q3 2021 were $135,000, or 2.8% of sales, similar to $137,000, or 4.4% of sales in Q3 2020[100] - Selling, general and administrative expenses increased to $5.4 million, or 44.8% of sales, in the first nine months of 2021, up from $4.0 million, or 43.1% of sales in the same period of 2020[104] Strategic Transactions - The Company has incurred approximately $1.1 million in pre-tax expenses related to the Transaction in Q3 2021 and $1.9 million for the first nine months of 2021[33] - Upon consummation of the Transaction, shareholders will receive $5.00 in cash and one share of the combined company's common stock, representing approximately 2% of the combined company's pro forma common equity ownership[29] - The Transaction is expected to close in Q4 2021, subject to regulatory approvals and shareholder approvals[31] - The Company is currently evaluating a strategic business combination with TeraWulf, Inc., which may impact future financial results[77] - The Company has incurred significant transaction costs related to the mergers, with a maximum reimbursement from TeraWulf of $640,000 for expenses incurred[147] Legal Matters - Six shareholder lawsuits have been filed against the Company related to the mergers, alleging violations of the Securities Exchange Act of 1934[141] - The Company is not currently a party to any legal proceedings that would materially affect its financial position or results of operations, except for the aforementioned lawsuits[140] - The Company believes the lawsuits are without merit but acknowledges the uncertainty and potential costs associated with them[155] Future Outlook - The Company expects to have sufficient cash to fund its operations beyond twelve months from the date of the financial statements issuance[27] - The company plans to maintain its research and development spending at approximately 5% of annual sales to expedite product development and form technological alliances[127] - The company is pursuing strategic partnerships, acquisitions, and new product development as part of its future growth strategy[131] - If the mergers are not completed, the Company's stock price may decline due to market assumptions regarding the mergers' completion[151]

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2021 For the Transition Period From to . Commission file number 000-25727 IKONICS CORPORATION (Exact name of registrant as specified in its charter) Minnesota 41-0730027 (State or other jurisdiction of incorporation or organization) 4832 Grand Avenue Duluth, Minnesota 55807 (Address of principal e ...

PART I. FINANCIAL INFORMATION [Item 1. Condensed Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Financial%20Statements) Unaudited Q1 2021 condensed financial statements reflect a reduced net loss, positive operating cash flow, and slightly increased total assets [Condensed Balance Sheets](index=4&type=section&id=Condensed%20Balance%20Sheets) Condensed Balance Sheet Highlights (Unaudited) | Account | March 31, 2021 ($) | December 31, 2020 ($) | | :--- | :--- | :--- | | **Assets** | | | | Cash | 4,428,269 | 3,693,845 | | Total current assets | 8,164,356 | 7,803,453 | | Total assets | 15,635,977 | 15,435,399 | | **Liabilities & Equity** | | | | Total current liabilities | 4,074,392 | 3,596,053 | | Total stockholders' equity | 11,561,585 | 11,839,346 | | Total liabilities and stockholders' equity | 15,635,977 | 15,435,399 | [Condensed Statements of Operations](index=5&type=section&id=Condensed%20Statements%20of%20Operations) Condensed Statements of Operations (Unaudited, for the three months ended March 31) | Metric | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | Net Sales | 3,073,408 | 3,497,192 | | Gross Profit | 996,332 | 1,153,232 | | Loss from Operations | (322,181) | (811,368) | | Net Loss | (321,639) | (587,006) | | Basic & Diluted Loss Per Share | (0.16) | (0.30) | [Condensed Statements of Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Condensed Statements of Cash Flows (Unaudited, for the three months ended March 31) | Cash Flow Activity | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | 771,355 | (427,276) | | Net cash (used in) provided by investing activities | (6,787) | 1,104,749 | | Net cash used in financing activities | (30,144) | (35,682) | | **Net Increase in Cash** | **734,424** | **641,791** | | **Cash at End of Period** | **4,428,269** | **1,605,440** | [Notes to Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) - The financial statements are unaudited and management believes they include all necessary recurring adjustments for a fair presentation, noting the COVID-19 pandemic could continue to have a material adverse impact on operations, financial condition, and cash flows[19](index=19&type=chunk)[22](index=22&type=chunk) Segment Net Sales (for the three months ended March 31) | Segment | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | Chromaline | 1,698,681 | 1,964,340 | | IKONICS Imaging | 1,086,601 | 970,099 | | DTX | 76,311 | 112,529 | | AMS | 211,815 | 450,224 | - On April 1, 2021, the Company repaid its entire **$2.7 million** Duluth Economic Development Authority loan, plus interest, using existing cash on hand, with the loan classified as a current liability as of March 31, 2021[52](index=52&type=chunk) - The company maintains a **$2.05 million** bank line of credit, which was unused during the first three months of 2021 and 2020[53](index=53&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2021 sales decreased by **12.1%** to **$3.1 million** due to pandemic impacts, yet net loss significantly narrowed [Impact of the COVID-19 Pandemic](index=16&type=section&id=Impact%20of%20the%20COVID-19%20Pandemic) - The COVID-19 pandemic has caused decreased demand for the company's products and is expected to have a significant adverse effect on business, operating results, and financial condition throughout 2021[59](index=59&type=chunk) - To mitigate negative impacts, the company implemented cost reduction efforts in 2020, including workforce reduction, decreased 401(k) contributions, and elimination of non-essential expenditures[59](index=59&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Q1 Sales Comparison by Segment (2021 vs. 2020) | Segment | Q1 2021 Sales ($) | Q1 2020 Sales ($) | % Change | | :--- | :--- | :--- | :--- | | Chromaline | 1.7M | 2.0M | -13.5% | | AMS | 212k | 450k | -53.0% | | DTX | 76k | 113k | -32.2% | | IKONICS Imaging | 1.1M | 970k | +12.0% | - The sales increase in the IKONICS Imaging segment is attributed to improving sales of its IKONART® product[76](index=76&type=chunk) - Gross margin decreased slightly from **33.0%** to **32.4%** due to lower sales and production volume, particularly in the AMS segment which has a high fixed cost structure[77](index=77&type=chunk) - Selling, general and administrative (SG&A) expenses decreased significantly to **$1.2 million** from **$1.8 million**, primarily due to reductions in personnel and travel expenses, and the absence of **$365,000** in one-time CEO transition costs incurred in Q1 2020[78](index=78&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash increased to **$4.4 million** at March 31, 2021, from **$3.7 million** at December 31, 2020[84](index=84&type=chunk) - Operating activities provided **$771,000** in cash during Q1 2021, a significant improvement from a **$427,000** use of cash in Q1 2020[84](index=84&type=chunk) - On April 1, 2021, the company repaid a **$2.7 million** loan with existing cash on hand after being notified by the bank that the loan would be recalled per the agreement[91](index=91&type=chunk) - The company has an available and unused bank line of credit of **$2.05 million**, which expires in August 2021[92](index=92&type=chunk) - Planned capital expenditures for 2021 are approximately **$220,000**, to be funded with existing cash and cash from operations[94](index=94&type=chunk) [Future Outlook](index=24&type=section&id=Future%20Outlook) - AMS Business: The company has three long-term sales agreements with major aerospace companies but anticipates reduced order volume for 2021 due to the COVID-19 pandemic[101](index=101&type=chunk) - DTX Business: The company is pursuing initiatives for its inkjet technology and working on production improvements with its German partner, AKK[100](index=100&type=chunk) - IKONICS Imaging: The new IKONART® product, which provides a novel way to make custom reusable stencils, has been positively received and is generating sales growth[102](index=102&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable for the reporting period - Not applicable[106](index=106&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures are effective[106](index=106&type=chunk) - There were no changes to the Company's internal control over financial reporting during the first quarter of 2021 that materially affected, or are reasonably likely to materially affect, these controls[107](index=107&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[110](index=110&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the company's 2020 Annual Report on Form 10-K - There have been no material changes or additions to the Company's risk factors as discussed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020[110](index=110&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section is not applicable for the reporting period - Not applicable[112](index=112&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) The report lists filed exhibits, including CEO and CFO certifications and Interactive Data Files - Exhibits filed with the report include CEO and CFO certifications (31.1, 31.2, 32) and Interactive Data Files (101)[112](index=112&type=chunk)