Akerna (KERN) - 2024 Q2 - Quarterly Results

Financial Performance - Total mining revenue for Q2 2024 was $5.5 million, up from$4.9 million in Q2 2023[2] - The company reported a net loss of $4.0 million in Q2 2024, compared to a net loss of$2.6 million in Q2 2023[3] - Adjusted EBITDA loss was $3.0 million in Q2 2024, an improvement from a loss of$4.2 million in Q2 2023[3] - The net loss for the quarter was $4,009,000, compared to a net loss of$2,623,000 in the same quarter of the previous year, indicating an increase in losses of approximately 52.7%[15] - Net loss for the six months ended June 30, 2024, was $15,753,000, compared to a net loss of$9,533,000 for the same period in 2023, representing a 65.5% increase in losses[17] Mining Operations - Gryphon achieved a quarterly hashrate of 899 PH/s in Q2 2024, a 20% increase compared to Q2 2023[1] - Gryphon mined approximately 84 bitcoins in Q2 2024, down from 187 bitcoins in Q2 2023[4] - The breakeven cost per bitcoin in Q2 2024 was $45,452, compared to$34,063 in Q2 2023[2] - Mining activities revenue increased to $5,515,000 for the quarter ended June 30, 2024, compared to$4,963,000 for the same period in 2023, reflecting a growth of 11.1%[15] Expenses and Liabilities - Current liabilities as of June 30, 2024, totaled $25.4 million, with total assets of$11.4 million[5] - Current liabilities rose significantly from $19,433,000 at the end of 2023 to$25,439,000 as of June 30, 2024, an increase of about 30.9%[14] - General and administrative expenses surged to $3,828,000 for the quarter ended June 30, 2024, compared to$1,092,000 in the same quarter of 2023, marking an increase of approximately 250.5%[15] - The company reported a total operating expense of $11,381,000 for the quarter, up from$7,967,000 in the same quarter of the previous year, which is an increase of about 42.4%[15] - The accumulated deficit increased from $47,175,000 at the end of 2023 to$62,189,000 as of June 30, 2024, reflecting a rise of approximately 31.8%[16] Cash Flow and Assets - The company’s cash and cash equivalents increased to $1,219,000 as of June 30, 2024, from$915,000 at the end of 2023, representing a growth of about 33.2%[14] - Total assets decreased from $18,834,000 on December 31, 2023, to$11,448,000 as of June 30, 2024, representing a decline of approximately 39.2%[14] - Total cash at the end of the period was $1,219,000, up from$980,000 at the end of June 2023[17] - Cash used in operating activities was $(782,000) for the six months ended June 30, 2024, compared to cash provided of$2,676,000 in the same period of 2023[17] - Cash flows from investing activities showed a net cash outflow of $(954,000) for the first half of 2024, compared to$(1,902,000) in 2023[17] - Net cash provided by financing activities was $2,040,000 for the first half of 2024, compared to a net cash used of$(63,000) in 2023[17] Strategic Initiatives - The company completed its miner upgrade program ahead of schedule, adding approximately 23 PH/s to its hashing power[3] - Gryphon has authorized a stock repurchase program of up to $5 million to enhance shareholder value[3] - The company incurred merger and acquisition costs of$394,000 during the quarter, indicating ongoing strategic activities in this area[15] - The company is focusing on acquiring low-cost power to ensure long-term success in bitcoin mining[2] Digital Assets - Unrealized loss on digital assets amounted to $1,385,000 for the first half of 2024, while the company recorded an impairment of digital assets of$233,000 in 2023[17] - The company reported proceeds from the sale of digital assets of $12,969,000 in the first half of 2024, an increase from$9,155,000 in 2023[17] - Digital assets used for principal and interest payment of notes payable amounted to $3,283,000 in the first half of 2024, down from$6,243,000 in 2023[17]