Gryphon Digital Mining(US:GRYP)2020-05-15 10:08Revenue Growth - Total revenue for the nine months ended March 31, 2020, was $9,569,638, representing a 33% increase compared to $7,201,191 for the same period in 2019[120] - Total revenue increased to $9.6 million for the nine months ended March 31, 2020, up from $7.2 million for the same period in 2019, representing a 33% increase[121] - Total revenue for the three months ended March 31, 2020, was $3.1 million, an increase of $0.7 million or 32% compared to $2.3 million for the same period in 2019[134] Software and Consulting Revenue - Software revenue increased by 16% to $7,148,964, while consulting revenue surged by 172% to $2,248,947 during the same period[120] - Software revenue rose to $7.1 million for the nine months ended March 31, 2020, compared to $6.2 million in the prior year, marking a 16% increase, with MJ Platform driving a 27% growth in revenue[122] - Consulting revenue surged to $2.2 million for the nine months ended March 31, 2020, from $0.8 million in the same period of 2019, reflecting a 172% increase[124] - Total software revenue increased to $2.3 million for the three months ended March 31, 2020, up 16% from $2.0 million in the same period of 2019, accounting for 76% of total revenue[135] - Consulting revenue surged to $0.7 million for the three months ended March 31, 2020, a 219% increase from $0.2 million in the same period of 2019, representing 23% of total revenue[137][138] Profitability and Expenses - Gross profit for the nine months ended March 31, 2020, was $5,112,528, with a gross profit margin of 53.4%, up from 50.7% in the previous year[120] - Gross profit for the nine months ended March 31, 2020, was $5.1 million, an increase of $1.5 million or 40%, with a gross profit margin of 53.4%[128] - Gross profit for the three months ended March 31, 2020, was $1.6 million, a 42% increase from $1.2 million in the same period of 2019, with a gross profit margin of 53.7%[141] - Operating expenses rose significantly by 74% to $17,905,798, driven by a 40% increase in product development expenses and an 87% increase in selling, general, and administrative expenses[120] - Operating expenses increased to $17.9 million for the nine months ended March 31, 2020, up from $10.3 million in the prior year, a rise of 74%[130] - Total operating expenses rose to $7.1 million for the three months ended March 31, 2020, a 95% increase from $3.7 million in the same period of 2019[143] Net Loss and Cash Flow - The net loss attributable to Akerna stockholders for the nine months ended March 31, 2020, was $(12,533,587), a 90% increase compared to $(6,580,157) in the prior year[120] - Cash used in operating activities increased to $11.6 million during the nine months ended March 31, 2020, compared to $6.4 million in the same period of 2019, primarily driven by a net loss of $12.6 million[147] - Cash and restricted cash balance was $14.8 million as of March 31, 2020, down from $22.4 million as of June 30, 2019[147] Strategic Plans and Market Position - The company has helped monitor legal compliance for over $18 billion in cannabis sales to date, indicating a strong market presence[103] - Consulting services are expected to grow as more states emerge with legalization reforms, driven by the company's established reputation in the cannabis industry[112] - The company’s platforms, Leaf Data Systems and MJ Platform, provide comprehensive solutions for regulatory compliance and inventory management in the cannabis sector[104] - The company is expanding features for MJ Platform and Leaf Data Systems through acquisitions and partnerships, enhancing customer experience and value[108] - The company expects to continue investing in marketing and sales to expand domestic and international activities and build brand awareness[132] - The company plans to implement a cost reduction plan expected to reduce recurring operating expenses by $2 million to $3 million annually[151] - The company anticipates that current cash will be sufficient to meet working capital requirements for the next twelve months[151] - The company is exploring strategic business opportunities, including investments in technology companies through acquisitions and joint ventures[151]