Sphere 3D(ANY) - 2022 Q1 - Quarterly Report

Sphere 3D 2021 Fiscal Year Financial Results Sphere 3D's 2021 fiscal year results detail a strategic pivot to cryptocurrency mining, balance sheet improvements, and financial performance Management Discussion and Outlook Sphere 3D pivoted to cryptocurrency mining in 2021, raising over $200 million, eliminating debt, and ordering 60,000 Bitcoin miners - The company successfully pivoted to focus on the cryptocurrency mining industry, aiming to become a leading carbon-neutral bitcoin mining company[1] - The balance sheet significantly improved by raising over $200 million, eliminating long-term debt, and increasing shareholder's equity from approximately $5 million in 2020 to almost $270 million in 2021[1] - An agreement was made to purchase 60,000 Bitmain S19j Pro Bitcoin Miners, with the first 1,000 activated post year-end, anticipating significant revenue increases in 2022[2] - As part of its ESG commitment, the company sponsored the Minority Equality Opportunities Acquisition SPAC, which raised $126.5 million in its IPO[2] Fiscal Year 2021 Financial Performance Sphere 3D reported a wider net loss in FY2021 due to increased operating expenses, despite significant balance sheet strengthening Summary of Key Financial Metrics | Financial Metric | FY 2021 | FY 2020 | | :--- | :--- | :--- | | Net Revenue | $3.7 million | $4.8 million | | Gross Margin | 45.6% | 46.4% | | Operating Expenses | $21.4 million | $8.2 million | | Net Loss from Operations | $17.8 million | $5.8 million | | Net Loss per Share | ($0.58) | ($0.98) | Consolidated Statements of Operations Consolidated statements of operations reflect decreased revenue and a widened net loss in 2021, primarily due to increased operating expenses Consolidated Statements of Operations | (In thousands of U.S. dollars) | 2021 | 2020 | | :--- | :--- | :--- | | Revenue | $3,720 | $4,848 | | Gross profit | $1,698 | $2,249 | | Loss from operations | ($19,718) | ($5,965) | | Net loss available to common shareholders | ($17,820) | ($5,779) | | Net loss per share (Basic and diluted) | ($0.58) | ($0.98) | - Revenue decreased from $4.8 million in 2020 to $3.7 million in 2021[9] - Net loss available to common shareholders widened to $17.8 million in 2021 from $5.8 million in 2020, primarily due to a significant increase in General and Administrative expenses from $5.5 million to $18.3 million[9] Consolidated Balance Sheets Consolidated balance sheets reflect significant financial strengthening in 2021, with substantial asset growth, increased cash, and eliminated long-term debt Consolidated Balance Sheets | (In thousands of U.S. dollars) | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total current assets | $78,422 | $2,090 | | Cash and cash equivalents | $54,355 | $461 | | Total assets | $275,924 | $11,833 | | Total current liabilities | $5,208 | $5,805 | | Long-term debt | $0 | $672 | | Total shareholders' equity | $269,626 | $5,009 | - Total assets increased dramatically from $11.8 million in 2020 to $275.9 million in 2021[11] - Cash and cash equivalents grew significantly from $461 thousand in 2020 to $54.4 million in 2021[11] - The company eliminated its long-term debt of $672 thousand and substantially increased total shareholders' equity from $5.0 million to $269.6 million[11]