Gryphon Digital Mining(US:GRYP)2021-05-21 18:31Revenue Performance - Total revenue increased by 31% to $4.0 million for the three months ended March 31, 2021, compared to $3.1 million for the same period in 2020[126]. - Software revenue rose by 62% to $3.8 million, accounting for 95% of total revenue in Q1 2021, up from 76% in Q1 2020[127]. - Consulting revenue decreased by 75% to $0.2 million, representing 4% of total revenue in Q1 2021, down from 23% in Q1 2020[129]. - Other revenue was less than $0.1 million, accounting for 1% of total revenue for the three months ended March 31, 2021 and 2020[131]. Profitability and Loss - Gross profit increased by 53% to $2.6 million, with a gross profit margin of 64% compared to 55% in the previous year[126]. - Loss from operations improved by 28% to $(3.5) million compared to $(4.9) million in the prior year[126]. - Net loss for the three months ended March 31, 2021 was $6.5 million, compared to a net loss of $4.6 million for the same period in 2020[143]. - Adjusted EBITDA for the three months ended March 31, 2021 was $(1.8) million, compared to $(3.2) million for the same period in 2020[143]. Expenses - Operating expenses decreased by 7% to $6.1 million, with significant reductions in general and administrative expenses by 46%[126]. - Cost of revenue was $1.5 million, or 36.2% of total revenue for the three months ended March 31, 2021, down from $1.4 million, or 45.5% for the same period in 2020[133]. - Product development expense increased by $0.5 million, or 63%, to $1.4 million for the three months ended March 31, 2021, primarily due to acquisitions and increased stock-based compensation[135]. - Sales and marketing expense decreased by $0.3 million, or 15%, to $1.7 million for the three months ended March 31, 2021, mainly due to the cancellation of in-person customer events[136]. - General and administrative expense decreased by $1.6 million, or 46%, to $1.9 million for the three months ended March 31, 2021, largely due to prior acquisition-related costs[137]. Cash and Capital - Cash used in operating activities decreased to $1.4 million for the three months ended March 31, 2021, down from $3.9 million in the same period in 2020[152]. - As of March 31, 2021, the company had cash of $15.4 million and working capital of $6.5 million[145]. - The principal balance of senior secured convertible notes was $7.5 million as of March 31, 2021, which can be paid by issuing shares[146]. Strategic Initiatives - The company completed the acquisition of Viridian Sciences Inc. in April 2021 to enhance its software offerings[113]. - The company plans to invest in marketing personnel and resources to accelerate customer growth and expand its market presence[111]. - Software revenue from government clients remained stable at $1.1 million for both Q1 2021 and Q1 2020[128]. - The company anticipates increased demand for consulting services in the second half of 2021 as more states pass cannabis legislation[129].