Akerna (US:KERN)2025-08-14 20:06Financial Performance - Gryphon's mining revenues decreased to $2,935,000 for the six months ended June 30, 2025, down 77.4% from $13,005,000 in the same period of 2024[189]. - The company reported a net loss of $11,537,000 for the six months ended June 30, 2025, an improvement from a net loss of $15,753,000 in the same period of 2024[254]. - Adjusted EBITDA for the first half of 2025 was $(9,088,000), compared to $(1,079,000) in the first half of 2024, indicating a significant decline in operational performance[254]. - The company’s EBITDA for the first half of 2025 was $(9,942,000), compared to $(8,594,000) in the first half of 2024[254]. - The company emphasizes that adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to similar measures of other companies[253]. Mining Operations - The company mined approximately 31 bitcoins in the first half of 2025, a significant decrease from 226 bitcoins mined in the same period of 2024[178]. - Mining revenues decreased to $1,377,000 for the three months ended June 30, 2025, from $5,515,000 for the same period in 2024, a decrease of $4,138,000 or 75.0%[210]. - The average value of Bitcoin mined increased to $98,000 for the three months ended June 30, 2025, compared to $66,000 for the same period in 2024, an increase of $32,000 or 49.0%[210]. - The cost to mine one bitcoin rose to $117,636 in the first half of 2025, compared to $38,291 in the same period of 2024[179]. - The company suspended mining operations on April 15, 2025, due to high industry hash rates and energy costs[185]. Expenses and Costs - The cost of revenues decreased to $3,662,000 for the six months ended June 30, 2025, down 57.6% from $8,640,000 in 2024[192]. - General and administrative expenses decreased to $4,647,000 for the six months ended June 30, 2025, a reduction of 26.1% from $6,289,000 in 2024[193]. - Total operating expenses decreased to $3,609,000 for the three months ended June 30, 2025, from $11,381,000 for the same period in 2024, a decrease of $7,772,000 or 68.3%[209]. - General and administrative expenses decreased to $1,647,000 for the three months ended June 30, 2025, from $3,828,000 for the same period in 2024, a decrease of $2,181,000 or 57.0%[213]. - Depreciation expense decreased to $515,000 for the three months ended June 30, 2025, from $3,292,000 for the same period in 2024, a decrease of $2,777,000 or 84.4%[217]. - Interest expense decreased to $9,000 for the six months ended June 30, 2025, from $620,000 for the same period in 2024, a decrease of $611,000 or 98.5%[208]. - Other expenses decreased to $3,839,000 for the six months ended June 30, 2025, from $8,327,000 for the same period in 2024, a decrease of $4,488,000 or 53.9%[200]. - Stock-based compensation expense decreased to $39,000 for the three months ended June 30, 2025, from $140,000 for the same period in 2024, a decrease of $101,000 or 72.1%[216]. Cash Flow and Financial Position - Net cash used in operating activities was approximately $4,098,000 for the six months ended June 30, 2025, compared to $782,000 for the same period in 2024[230]. - Net cash used in investing activities was approximately $1,815,000 for the six months ended June 30, 2025, compared to $954,000 in the same period of 2024[233]. - Net cash provided by financing activities was approximately $5,856,000 for the six months ended June 30, 2025, compared to $2,040,000 for the same period in 2024[235]. - As of June 30, 2025, the Company had cash and cash equivalents of $678,000, down from $735,000 as of December 31, 2024[226]. - The Company reported an accumulated deficit of approximately $79,272,000 as of June 30, 2025, compared to $67,735,000 as of December 31, 2024[226]. - The Company believes its current cash levels will not be sufficient to meet anticipated cash needs for at least the next 12 months, indicating a need for additional capital resources[227]. Mergers and Acquisitions - Merger and acquisition costs increased to $3,164,000 for the six months ended June 30, 2025, compared to $394,000 for the same period in 2024, an increase of $2,770,000 or 703.0%[204]. - The Company incurred approximately $989,000 in costs related to the ABTC merger for the six months ended June 30, 2025[224]. Unrealized Gains and Losses - The Company incurred an unrealized gain on digital assets of $200,000 for the three months ended June 30, 2025, compared to an unrealized loss of $318,000 for the same period in 2024[218]. - Unrealized gain on marketable securities was $23,000 for the three months ended June 30, 2025, compared to an unrealized loss of $56,000 for the same period in 2024, reflecting a 141.1% improvement[220]. - The unrealized loss on marketable securities was $43,000 for the first half of 2025, compared to $272,000 in the first half of 2024[254]. Accounting Changes - The adoption of ASU 2023-08 on January 1, 2024, resulted in a $740,000 increase in the company's digital assets[255]. - The company has implemented ASU 2023-07, which requires the disclosure of significant segment expenses and expanded interim disclosures[256].