Financing Activities - Hyperscale Data issued a convertible promissory note of $1.9 million on February 5, 2025, with a conversion price of $4.00 per share and an interest rate of 15% per annum [161]. - A convertible promissory note of $4.2 million was issued on March 14, 2025, with a conversion price based on the greater of $0.40 or 75% of the VWAP [163]. - Hyperscale Data entered into a securities purchase agreement to sell up to 50,000 shares of Series B Convertible Preferred Stock for a total of $50.0 million [166]. - Each share of Series B Preferred Stock has a stated value of $1,000.00 and offers a cumulative cash dividend of 15% per annum [167]. - A securities purchase agreement was made to sell up to 100,000 shares of Series H convertible preferred stock for a total of $100.0 million [176]. - Between August 29, 2025, and November 4, 2025, the company raised $125 million through the sale of 255.4 million shares of Class A common stock via an ATM offering [178]. - The A&R Forbearance Note issued in February 2025 has a principal amount of $3.5 million and accrues interest at 18% per annum [162]. Revenue Performance - Total revenue for the three months ended September 30, 2025, was $24.3 million, a decrease of 22% from $31.1 million in the same period of 2024 [196]. - Revenue from crane operations declined by $2.6 million, or 21%, to $9.7 million due to reduced demand from oil and gas customers [199]. - Revenue from crypto assets mining increased by $0.4 million, or 8%, to $5.7 million, driven by a 30% increase in self-mined Bitcoin revenue [198]. - AGREE's hotel operations revenues increased by $0.4 million, or 7%, for the three months ended September 30, 2025, compared to the same period in 2024 [200]. - Total revenue for the nine months ended September 30, 2025, was $75.2 million, a decrease of $12.0 million, or 14%, compared to $87.2 million in the same period in 2024 [223]. - Revenues from crypto assets mining decreased by $9.6 million, or 38%, to $15.6 million for the nine months ended September 30, 2025, compared to $25.2 million in the same period in 2024 [224]. - TurnOnGreen's revenues increased by $1.3 million, to $5.0 million for the nine months ended September 30, 2025, compared to $3.8 million in the corresponding period in 2024, a rise of 34% [229]. Net Loss and Impairments - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $15.3 million, compared to a net loss of $26.9 million in the same period of 2024 [196]. - A loss on impairment of property and equipment related to real estate assets of AGREE was recorded at $8.0 million for the year ended December 31, 2024 [186]. - Net loss available to common stockholders was $42.7 million for the nine months ended September 30, 2025, compared to a net loss of $59.7 million in the same period in 2024 [222]. Bankruptcy and Subsidiary Developments - The company anticipates that Gresham Worldwide, Inc. will emerge from bankruptcy on November 28, 2025, following a settlement agreement [173]. - The company anticipates GIGA will emerge from bankruptcy on November 28, 2025, following the confirmation of its bankruptcy plan [184]. - The company recognized a gain of $2.7 million related to the bankruptcy proceedings for a subsidiary during the three months ended September 30, 2025 [190]. - The company deconsolidated GIGA and recognized a gain of $2.0 million on deconsolidation included in net gain from discontinued operations [182]. Expenses and Margins - Gross margins decreased to 26% for the three months ended September 30, 2025, compared to 28% for the same period in 2024, primarily due to unfavorable margins from crypto asset mining activities [206]. - Research and development expenses decreased by $3.0 million for the three months ended September 30, 2025, due to reduced expenditures on the Bitnile social gaming platform [207]. - Selling and marketing expenses increased by $2.6 million, or 55%, to $7.4 million for the three months ended September 30, 2025, compared to $4.8 million in the same period in 2024 [208]. - Gross margins decreased to 24% for the nine months ended September 30, 2025, down from 26% for the same period in 2024, primarily due to unfavorable margins from crypto asset mining operations [231]. - Research and development expenses decreased by $3.0 million for the nine months ended September 30, 2025, due to reduced expenditures on the Bitnile social gaming platform [232]. - Selling and marketing expenses increased by $3.5 million, or 28%, to $16.0 million for the nine months ended September 30, 2025, driven by higher advertising and promotion costs [233]. - General and administrative expenses decreased by $3.3 million to $30.4 million for the nine months ended September 30, 2025, primarily due to the deconsolidation of AVLP and Eco Pack [234]. Cash Flow and Financial Position - Net cash used in operating activities totaled $24.8 million for the nine months ended September 30, 2025, compared to $10.2 million for the same period in 2024 [249]. - Net cash used in investing activities was $12.9 million for the nine months ended September 30, 2025, compared to $11.8 million for the same period in 2024 [250]. - Net cash provided by financing activities was $60.4 million for the nine months ended September 30, 2025, compared to $22.6 million for the same period in 2024 [251]. - As of September 30, 2025, cash and cash equivalents were $24.8 million, up from $4.5 million as of December 31, 2024 [248]. - The effective tax rate from continuing operations was a provision of 0.5% for the nine months ended September 30, 2025, compared to 0.1% for the same period in 2024 [247].
Hyperscale Data, Inc.(GPUS) - 2025 Q3 - Quarterly Report