BitMine Immersion Technologies Inc(US:BMNR)2024-12-09 13:00Financial Performance - The company generated $3,310,348 in revenue for the year ended August 31, 2024, compared to $645,278 in the previous year, representing a significant increase[299]. - The Company generated $3,030,910 in bitcoin revenue from self-mining digital assets for the year ended August 31, 2024, compared to $389,222 in the previous year, reflecting a significant increase[300]. - Revenue from equipment sales was $231,133 for the year ended August 31, 2024, a slight decrease from $244,036 in the previous year[302]. - The Company generated $48,305 in revenue from hosting for the year ended August 31, 2024, up from $12,022 in the previous year[308]. - Operating expenses for the year ended August 31, 2024, increased to $3,208,513, a 21.7% rise from $2,635,470 in 2023, driven by higher general and administrative expenses, depreciation, and professional fees[320]. - The company reported a net loss of $3,292,503, or $0.07 per share, for the year ended August 31, 2024, compared to a net loss of $2,464,884, or $0.05 per share, in 2023[322]. Mining Operations - The network hash rate increased by 68.15% from 368.924 EH/s as of August 31, 2023, to 620.355 EH/s as of August 31, 2024[286]. - The difficulty index rose by 60.89% from 55.61 trillion to 89.47 trillion during the same period[286]. - Self-mining revenues were positively impacted by 4.70 bitcoin earned, valued at $319,465, from operating 777 S-19 miners under a short-term lease[301]. - Cost of sales related to bitcoin mining was $2,330,752 for the year ended August 31, 2024, compared to $326,630 in the previous year[310]. - The average cost to mine one bitcoin in owned facilities decreased to $74,559.05 in 2024 from $85,491.00 in 2023, while the cost in hosted facilities was $49,221.12, up from $47,655.92[312]. - Energy costs represented 38.08% of bitcoin mining revenues in 2024, down from 60.24% in 2023, indicating improved efficiency[316]. - The average power price paid by the Company was $0.0340 per kilowatt hour in 2024, compared to $0.0530 in 2023, reflecting a reduction in energy costs[317]. Equipment and Infrastructure - The company purchased 1,050 used ASIC miners for $488,775 and entered into a hosting agreement with Soluna in Murray, Kentucky, with electricity costs at $0.025 per kWh[296]. - As of August 31, 2024, the company had a total of 1,640 miners, with 1,607 installed and 85 needing repair[297]. - The company plans to operate data centers using immersion cooling technology, which can be up to 95% more efficient than standard air cooling[279]. - The company has entered into an agreement with TSTT to co-locate up to 125 containers for hosting digital asset miners, with electricity costs at 3.5 cents per kWh[287][288]. - The Pecos, Texas joint venture received electricity at a rate of $0.03991 per kWh, providing more predictable pricing for operations[294]. Cash Flow and Financing - Cash flows used in operating activities decreased to $28,753 in 2024 from $809,715 in 2023, primarily due to a material decrease in operating loss after excluding non-cash items[324]. - Cash flows used in investing activities were $67,525 for the year ended August 31, 2024, significantly lower than $612,288 in 2023, attributed to reduced cash used for equipment purchases[325]. - Cash flows provided by financing activities totaled $325,000 in 2024, down from $1,300,000 in 2023, all sourced from related party loans[326]. - The principal amount borrowed under the Line of Credit Agreement with IDI was $1,875,000 as of December 5, 2024, with the company having the right to extend the maturity date[327]. Future Outlook - The primary factors impacting future revenues include bitcoin prices, operational facility completion, and electricity costs[284][285]. - The company expects to generate additional revenues from the resale of hosting equipment and miners in future periods[307]. - The company expects to receive approximately $31,000 per month from the sale of four immersion containers to the ROC Digital joint venture, which will enhance liquidity[328]. - The company has engaged an investment banker to explore additional capital-raising alternatives, including potential issuance of common stock and convertible notes, to expand its digital asset hosting and mining business[329]. Accounting and Compliance - The Company adopted ASC 606 for revenue recognition starting July 1, 2018, impacting reporting periods from January 1, 2018[342]. - Cryptocurrency is classified as intangible assets and assessed for impairment quarterly, with no amortization[359]. - The Company measures non-cash consideration based on the spot rate of bitcoin at midnight UTC on the day of contract inception[350]. - There are no deferred revenues or liability obligations recorded, as there are no payments in advance of performance[355]. - Net loss per common share is calculated by dividing net loss by the weighted average common shares outstanding, with no dilutive common stock equivalents as of August 31, 2024[364]. - The Company has not filed any tax returns, and its income tax returns are subject to examination for three years after filing[368]. - Recent accounting pronouncements deemed either immaterial or not applicable have been noted[369]. - The company is classified as a smaller reporting company and is not required to provide the information required by Item 7A[370].