Financing Activities - BitNile sold 256.7 million shares of common stock for gross proceeds of $168.0 million as of September 30, 2022, under the 2022 Common ATM Offering[128] - The company sold 14.8 million shares of common stock for gross proceeds of $2.6 million during the 2022 Common ATM Offering[183] - The company sold 8,933 shares of Series D Preferred Stock for gross proceeds of $124,000 during the 2022 Preferred ATM Offering[183] - A credit agreement with Fifth Third Bank provides a secured revolving credit facility of up to $15 million, maturing on October 14, 2025[184] - The company borrowed $18.9 million in term loans with an interest rate of 8.5% per annum, maturing in 18 months, with monthly payments starting at $0.6 million[185] - The company issued 3% Secured Promissory Notes with a principal amount of $8,181,819, maturing on May 18, 2023[186] - The company must maintain a minimum fixed charge coverage of 1.05 to 1 under the credit agreement[184] - As of November 18, 2022, the availability under the credit agreement was approximately $4.0 million[184] - The company used proceeds from the loans to purchase a private aircraft for a total price of $15.8 million[185] - The company believes its current cash and proceeds from the 2022 ATM Offering are sufficient to meet operating and capital requirements for at least the next twelve months[186] Revenue and Financial Performance - Total revenue for the three months ended September 30, 2022, was $49.8 million, an increase of $80.6 million from a loss of $30.8 million in the same period of 2021[140] - Revenue from cryptocurrency mining operations was $3.9 million for the three months ended September 30, 2022, compared to $0.3 million in the same period of 2021, reflecting a 1,324% increase[144] - Revenue from hotel operations was $5.5 million for the three months ended September 30, 2022, compared to $0 in the same period of 2021, following the acquisition of four hotel properties for $71.3 million[145] - GWW segment revenue increased by $1.4 million, or 22%, to $7.8 million for the three months ended September 30, 2022, driven by military market solutions[141] - TurnOnGreen revenues increased by $0.6 million, or 52%, to $1.7 million for the three months ended September 30, 2022, due to increased sales to defense customers[142] - SMC revenues were $17.1 million for the three months ended September 30, 2022, attributed to the acquisition of SMC in June 2022[143] - Total revenue for the nine months ended September 30, 2022, was $99.97 million, a 124% increase from $44.58 million in the same period of 2021[159] - Revenue from cryptocurrency mining reached $11.4 million for the nine months ended September 30, 2022, a significant increase of 1545% from $0.693 million in the same period of 2021[159] - Revenues from the GWW segment increased by 12% to $21.53 million for the nine months ended September 30, 2022, from $19.20 million in the same period of 2021[160] - TurnOnGreen revenues declined by 11% to $3.85 million for the nine months ended September 30, 2022, from $4.31 million in the same period of 2021, due to supply chain challenges[161] - SMC revenues increased by $17.1 million for the nine months ended September 30, 2022, compared to $0 for the same period in 2021, due to the acquisition of SMC in June 2022[162] - BNI's cryptocurrency mining revenues were $11.4 million for the nine months ended September 30, 2022, up from $0.7 million in the prior year, driven by increased mining activities and favorable market conditions[163] - AGREE revenues reached $12.8 million for the nine months ended September 30, 2022, compared to $0 in the same period of 2021, following the acquisition of four hotel properties for $71.3 million[163] - Ault Alliance's revenues from lending and trading activities increased to $32.2 million for the nine months ended September 30, 2022, from $19.6 million in the prior year, attributed to significant realized and unrealized gains[165] Expenses and Losses - Total cost of revenue for the three months ended September 30, 2022, was $28.7 million, compared to $5.3 million in the same period of 2021[138] - Net loss attributable to BitNile Holdings, Inc. for the three months ended September 30, 2022, was $7.3 million, compared to a net loss of $42.9 million in the same period of 2021[138] - Loss from operations for the three months ended September 30, 2022, was $5.3 million, a significant improvement from a loss of $49.9 million in the same period of 2021[138] - Gross margins were 42.4% for the three months ended September 30, 2022, down from 117.1% in the same period of 2021, with adjusted gross margins of 27.6% and 35.8% for 2022 and 2021, respectively[146] - Selling and marketing expenses rose to $7.4 million for the three months ended September 30, 2022, an increase of 273% from $2.0 million in the same period of 2021, primarily due to higher marketing costs[147] - General and administrative expenses increased by 41% to $15.9 million for the three months ended September 30, 2022, compared to $11.3 million in the same period of 2021, largely due to costs from acquired entities[148] - Interest expense surged to $4.0 million for the three months ended September 30, 2022, compared to $0.1 million in the same period of 2021, primarily due to interest on construction loans and secured promissory notes[151] - Gross margins decreased to 48.4% for the nine months ended September 30, 2022, down from 62.6% in the prior year, impacted by lower margins from cryptocurrency mining operations[166] - Research and development expenses rose by $0.3 million to $1.9 million for the nine months ended September 30, 2022, due to product development efforts[167] - Selling and marketing expenses surged to $20.9 million for the nine months ended September 30, 2022, an increase of 341% from $4.7 million in the prior year, primarily due to higher advertising costs[167] - General and administrative expenses doubled to $48.7 million for the nine months ended September 30, 2022, compared to $24.4 million in the prior year, driven by costs from acquisitions and increased operational expenses[168] Investments and Acquisitions - 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[129] - BitNile's investment in Alzamend Neuro included a total of $10 million, with $4 million funded in April 2022 upon achieving a milestone[129] - The company increased its ownership of Avalanche International Corp. from less than 20% to approximately 92% by converting $20 million in convertible promissory notes into common stock[129] - Ault Lending made open market purchases of The Singing Machine Company, acquiring over 50% of its common stock for a total purchase price of $7.4 million[129] - BNI's hosting agreement with Compute North involves hosting approximately 6,500 Bitcoin miners for five years, with a deposit of approximately $2 million paid[131] - The company recorded an impairment of $2 million on a deposit related to the hosting of Bitcoin miners due to Compute North's bankruptcy[132] - The company allocates the purchase price of acquired businesses based on estimated fair values, with any excess recorded as goodwill[187]
Ault Alliance(AULT) - 2022 Q3 - Quarterly Report