Financial Performance - Total revenue for the year ended December 31, 2021, was $52,400,000, a 120% increase from $23,871,000 in 2020[604]. - Revenue from cryptocurrency mining was $3,450,000, while revenue from lending and trading activities surged to $16,854,000, up 6864% from $242,000 in the previous year[604]. - Gross profit for 2021 was $28,542,000, compared to $7,514,000 in 2020[602]. - The company reported a loss from continuing operations of $(23,971,000) for 2021, compared to $(33,388,000) in 2020[602]. - GWW segment revenues increased by $7,368,000, or 40%, to $25,581,000 in 2021, driven by improved liquidity and increased military market solutions[605]. - TOGI revenues slightly declined by $70,000, or 1%, to $5,346,000 in 2021[606]. - The net loss for the year ended December 31, 2021, was $24.2 million compared to a net loss of $32.7 million for the year ended December 31, 2020[627]. Investments and Acquisitions - The company acquired a 617,000 square foot energy-efficient facility for $4.0 million, funded by its working capital[575]. - The company invested $10 million in Alzamend Neuro, Inc., with $6 million funded as of the report date, for a total of 6,666,667 shares at $1.50 per share[576]. - The company executed contracts to purchase 4,000 Bitcoin miners for a gross purchase price of $27.3 million, with 1,000 units received by September 30, 2021[579]. - The company invested approximately $11.5 million for Series A preferred stock of Earnity Inc., acquiring about 19.99% of its common stock[580]. - The company entered into construction loan agreements totaling $68.75 million for the acquisition of four hotel properties, with a purchase price of $69.2 million[583]. - The company purchased 129,363,756 shares of IMHC's common stock for $200,000, resulting in a change in control of IMHC[582]. - The company entered into a Share Exchange Agreement with Giga-tronics Incorporated, which includes the issuance of 2,920,085 shares of GIGA's common stock[584]. - The company acquired a property for $15,500,000, with $1,500,000 previously funded and $14,000,000 paid on the closing date, intended for a high-rise multi-family project development[588]. - The real estate segment acquired four hotel properties for $71.3 million on December 22, 2021[630]. Revenue Streams - Revenues from cryptocurrency mining operations were $3.5 million for the year ended December 31, 2021, compared to nil for the year ended December 31, 2020[607]. - Revenues from lending and trading activities increased to $16.9 million for the year ended December 31, 2021, from $0.2 million for the year ended December 31, 2020[608]. Expenses - Research and development expenses increased by $0.2 million to $2.0 million for the year ended December 31, 2021[612]. - Selling and marketing expenses were $7.8 million for the year ended December 31, 2021, compared to $1.2 million for the year ended December 31, 2020, an increase of 560%[613]. - General and administrative expenses were $36.7 million for the year ended December 31, 2021, compared to $12.5 million for the year ended December 31, 2020, an increase of 193%[614]. Cash Flow and Financing - Cash and cash equivalents and restricted cash increased to $21.2 million as of December 31, 2021, from $18.7 million at December 31, 2020[629]. - Net cash provided by financing activities was $419.9 million for the year ended December 31, 2021, compared to $37.3 million for the year ended December 31, 2020[635]. - The 2021 ATM Offering raised gross proceeds of $200 million through the sale of 52,552,353 shares of common stock[635]. - Secured promissory notes issued on December 30, 2021, had an aggregate principal amount of approximately $66 million, bearing interest at 8% per annum[636]. - The outstanding balance under AGREE Madison Construction Loan Agreements was $55.1 million as of December 31, 2021, with loans due on January 1, 2025[637]. - The initial public offering of ADTC in December 2021 generated gross proceeds of $112.1 million[638]. - As of March 31, 2022, the company had sold 140.7 million shares under the 2022 ATM Offering for gross proceeds of $110.4 million at an average price of $0.78 per share[639]. - The company believes its 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[640]. Future Plans - The company plans to fund property improvement plans of $13.7 million for the acquired hotel properties[583]. - The company plans to pursue monetization opportunities and maximize stockholder value through various initiatives, including public offerings and sales of subsidiary interests[597]. Technology Investment - The investment in AVLP is based on its novel technology for textile applications, which significantly reduces the use of water, harmful chemicals, and energy compared to conventional methods[646].
Ault Alliance(AULT) - 2021 Q4 - Annual Report