Revenue Performance - Total revenue decreased by $1,963,259, or 23.5%, to $6,381,663 for the three months ended September 30, 2019, compared to $8,344,922 for the same period in 2018[230] - Revenue from cryptocurrency mining decreased by $282,993 due to a reduction in active miners from 1,512 to 978 and increased difficulty in mining[231] - Revenue from restaurant operations decreased by $548,057, primarily due to construction projects affecting access to locations and increased competition[233] - Total revenue for the nine months ended September 30, 2019, decreased by $1,515,830, or 7.2%, to $19,468,773 from $20,984,603 for the same period in 2018[253] Profitability and Loss - Net loss attributable to DPW Holdings was $10,340,851 for the three months ended September 30, 2019, compared to a net loss of $7,449,971 for the same period in 2018[227] - Basic and diluted net loss per common share was $(6.47) for the three months ended September 30, 2019, compared to $(88.23) for the same period in 2018[227] - The company recorded an operating loss of $7,970,036 for the three months ended September 30, 2019, compared to an operating loss of $4,187,845 for the same period in 2018, representing an increase in operating loss of approximately 90%[241] - Net loss for the three months ended September 30, 2019, was $10,340,851, compared to a net loss of $7,524,385 for the same period in 2018, indicating an increase in net loss of approximately 37%[246] - Operating loss increased to $16,476,978 for the nine months ended September 30, 2019, compared to $11,255,164 for the same period in 2018[264] - The net loss for the nine months ended September 30, 2019, was $21,110,774, slightly higher than the net loss of $20,616,868 for the same period in 2018[270] Expenses - Gross margin increased to 27.3% for the three months ended September 30, 2019, compared to 24.3% for the same period in 2018[234] - Engineering and product development expenses increased by $148,347 to $481,902 for the three months ended September 30, 2019, attributed to increased spending at Enertec[237] - Selling and marketing expenses decreased by $397,878 to $392,725 for the three months ended September 30, 2019, due to a reduction in sales and marketing personnel[238] - General and administrative expenses decreased by $568,671 to $4,519,641 for the three months ended September 30, 2019, mainly due to lower stock compensation and legal fees[239] - General and administrative expenses increased by $1,886,849 to $14,584,758 for the nine months ended September 30, 2019, primarily due to acquisitions of Enertec and I.AM[262] - Engineering and product development expenses increased by $364,855 to $1,408,848 for the nine months ended September 30, 2019, attributed to the acquisition of Enertec[259] Cash Flow and Financing - Net cash used in operating activities totaled $8,377,278 for the nine months ended September 30, 2019, a decrease from $9,430,055 in the prior year[274] - Net cash used in investing activities was $2,686,506 for the nine months ended September 30, 2019, significantly lower than $19,915,693 for the same period in 2018[276] - The company raised $11,083,232 from financing activities for the nine months ended September 30, 2019, compared to $28,791,362 in the previous year[276] - The company anticipates continuing to incur losses and will need to raise additional capital to support working capital requirements[281] Other Financial Metrics - Interest income increased to $898,646 for the three months ended September 30, 2019, compared to $712,262 for the same period in 2018, reflecting an increase of approximately 26%[242] - Interest expense decreased to $2,954,843 for the three months ended September 30, 2019, from $4,072,539 for the same period in 2018, a reduction of approximately 27.5%[243] - Other comprehensive loss was $11,431,449 for the three months ended September 30, 2019, compared to $8,869,634 for the same period in 2018, indicating an increase of approximately 29%[248] - The fair value of the warrants issued in the Offering decreased by $165,840 during the three months ended September 30, 2019[245] - Interest income rose to $2,647,110 for the nine months ended September 30, 2019, up from $1,955,885 in the prior year[265] - Interest expense decreased to $5,586,639 for the nine months ended September 30, 2019, compared to $11,335,069 for the same period in 2018[266] Asset Impairment - Asset impairment charges of $4,315,856 were recognized during the three months ended September 30, 2019, related to impairments of cryptocurrency equipment[240] - The company recognized asset impairment charges of $4,315,856 related to cryptocurrency equipment during the nine months ended September 30, 2019[263]
Ault Alliance(AULT) - 2019 Q3 - Quarterly Report