Financial Performance - Total revenue decreased by $44.8 million, or 72%, to $17.4 million for the three months ended June 30, 2022, from $62.1 million for the same period in 2021 [129]. - Revenue from cryptocurrency mining operations increased to $4.0 million for the three months ended June 30, 2022, compared to $0.3 million for the same period in 2021, representing a 1266% increase [132]. - Revenue from lending and trading activities decreased to $0.9 million for the three months ended June 30, 2022, from $53.3 million for the same period in 2021, a decline of 98% [134]. - Total revenue for the six months ended June 30, 2022, was $50.2 million, a decrease of $25.2 million or 33% compared to $75.4 million for the same period in 2021 [150]. - Revenue from cryptocurrency mining operations increased to $7.5 million, up 1687% from $421,000 in the prior year [151]. - Revenue from lending and trading activities decreased to $18.9 million, down 68% from $58.5 million in the prior year, primarily due to significant unrealized gains in the previous period [156]. Expenses and Losses - Gross margins decreased to 28.8% for the three months ended June 30, 2022, compared to 89.9% for the same period in 2021 [137]. - Research and development expenses increased by $0.2 million to $0.7 million for the three months ended June 30, 2022, from $0.5 million for the same period in 2021 [138]. - Selling and marketing expenses rose to $7.0 million for the three months ended June 30, 2022, compared to $1.5 million for the same period in 2021, an increase of 364% [139]. - General and administrative expenses increased to $19.0 million for the three months ended June 30, 2022, from $8.0 million for the same period in 2021, a rise of 138% [140]. - The company recorded a loss from operations of $23.7 million for the three months ended June 30, 2022, compared to a gain of $45.8 million for the same period in 2021 [141]. - Net loss for the three months ended June 30, 2022 was $25.8 million, compared to net income of $42.2 million for the same period in 2021 [146]. - General and administrative expenses rose to $32.7 million, a 150% increase from $13.1 million in the prior year, mainly due to costs associated with hotel operations and stock compensation [162]. - The company recorded a loss from operations of $22.7 million for the six months ended June 30, 2022, compared to a gain of $47.0 million in the prior year [163]. - Net loss for the six months ended June 30, 2022 was $54.6 million, compared to net income of $44.2 million for the same period in 2021 [169]. Investments and Acquisitions - BitNile sold 239.7 million shares of common stock for gross proceeds of $163.4 million as part of the 2022 Common ATM Offering [119]. - Ault Alliance's stalking horse bid for EYP's assets was based on an enterprise value of approximately $67.7 million, with a purchase price of $62.5 million [119]. - Digital Power Lending made a $4 million investment in Alzamend Neuro, bringing total investment to $10 million, contingent on achieving specific milestones [120]. - BNI acquired the remaining 30% interest in Alliance Cloud Services for $1.8 million, making it a wholly-owned subsidiary [120]. - The company converted $20 million in convertible promissory notes into approximately 51.9 million shares of Avalanche International Corp., increasing ownership to about 92% [120]. - Revenue from hotel operations was $7.3 million for the six months ended June 30, 2022, compared to $0 for the same period in 2021, following the acquisition of four hotel properties for $71.3 million [155]. Cash Flow and Financial Position - Cash and cash equivalents increased to $24.1 million as of June 30, 2022, up from $15.9 million at December 31, 2021 [171]. - Net cash provided by operating activities totaled $15.0 million for the six months ended June 30, 2022, compared to a net cash used of $21.7 million for the same period in 2021 [171]. - Net cash used in investing activities was $82.8 million for the six months ended June 30, 2022, compared to $29.7 million for the same period in 2021 [171]. - Cash provided by financing activities was $75.5 million for the six months ended June 30, 2022, down from $138.1 million for the same period in 2021 [171]. - The company believes current cash on hand and proceeds from the 2022 ATM Offering are sufficient to meet operating and capital requirements for at least the next twelve months [171]. Other Financial Metrics - Other comprehensive loss was $1.5 million for the three months ended June 30, 2022, compared to other comprehensive income of $5.8 million for the same period in 2021 [146]. - Other comprehensive loss was $1.8 million for the six months ended June 30, 2022, an improvement from a loss of $2.9 million for the same period in 2021 [170]. - Realized gain on marketable securities was $0.1 million for the six months ended June 30, 2022, down from $0.4 million for the same period in 2021 [168]. - Loss from investment in unconsolidated entity was $0.9 million for the six months ended June 30, 2022, compared to $3,000 for the same period in 2021 [168]. - Interest expense increased significantly to $31.9 million for the six months ended June 30, 2022, compared to $0.3 million in the prior year, primarily due to the issuance of Senior Notes [166].
Ault Alliance(AULT) - 2022 Q2 - Quarterly Report