Ault Alliance(AULT) - 2024 Q1 - Quarterly Report

Revenue Performance - Total revenue for the three months ended March 31, 2024, was $44,932,000, a 55$28,943,000 in the same period of 2023[116] - Revenue from digital assets mining reached $11,447,000, up 56$7,347,000 year-over-year[118] - Revenue from lending and trading activities was $9,099,000, a significant increase of$14,038,000 compared to a loss of $4,939,000 in the prior year[118] - Revenues from Sentinum's digital assets mining operations increased by$4.1 million due to a 134% increase in the average Bitcoin price, despite a 94% increase in mining difficulty[119] - Energy revenues from Circle 8 crane operations increased by $0.3 million, or 2$9.1 million for the three months ended March 31, 2024, with an unrealized gain of $8.9 million included in this revenue[121] - GIGA revenues increased by$0.9 million, driven by investments in force protection technologies due to ongoing global conflicts[122] - SMC revenues were $0 for the three months ended March 31, 2024, a decrease of$3.4 million compared to the same period in 2023[123] Profitability - Gross profit for the quarter was $19,509,000, compared to$2,485,000 in the same quarter of 2023[116] - Gross margins increased to 43% for the three months ended March 31, 2024, compared to 9% for the same period in 2023[124] - Net income attributable to Ault Alliance, Inc. was $3,717,000, a recovery from a net loss of$48,646,000 in the previous year[116] Operating Expenses - Total operating expenses decreased to $19,112,000 from$32,348,000 year-over-year[116] - General and administrative expenses decreased by $8.2 million, or 38$0.8 million for the three months ended March 31, 2024, due to lower expenditures on the BitNile metaverse platform[125] Cash Flow - Net cash used in operating activities totaled $10.2 million for the three months ended March 31, 2024, compared to net cash provided of$7.7 million for the same period in 2023[128] - Net cash provided by financing activities was $13.0 million for the three months ended March 31, 2024, compared to net cash used of$8.1 million for the same period in 2023[128] Strategic Initiatives - Ault Lending entered into a securities purchase agreement to acquire up to $6 million of Alzamend Series A convertible preferred stock[111] - The company plans to sell its four hotels under the AGREE subsidiary to focus on core businesses in Energy, Fintech, and Sentinum[112] - Ault Alliance established a record date for the final distribution of TurnOnGreen securities, distributing 25 million shares[111] Investment Gains - The company reported a gain of$17,900,000 on the conversion of investment in equity securities to marketable equity securities[116]