Revenue Performance - Total revenue for Q1 2022 was $32.83 million, a significant increase of 147% compared to $13.25 million in Q1 2021[125] - Cryptocurrency mining revenue reached $3.55 million in Q1 2022, up from $130,000 in Q1 2021[125] - Revenue from lending and trading activities surged to $17.92 million in Q1 2022, compared to $5.21 million in Q1 2021[125] - Total revenue increased by $19.6 million, or 148%, to $32.8 million for the three months ended March 31, 2022, compared to $13.2 million for the same period in 2021[126] - Revenue from cryptocurrency mining operations surged to $3.5 million, a 2,629% increase from $0.1 million in the prior year[130] - Revenues from lending and trading activities rose to $17.9 million, up 244% from $5.2 million for the same period in 2021[132] Profitability and Loss - Gross profit for Q1 2022 was $22.33 million, representing a gross margin of approximately 68%[125] - The company reported a net loss of $28.77 million in Q1 2022, compared to a net income of $1.99 million in Q1 2021[125] - The company reported a net loss of $28.8 million for the three months ended March 31, 2022, compared to a net income of $2.0 million in the same period in 2021[146] - Gross margins improved to 68.0% for the three months ended March 31, 2022, compared to 61.4% in the prior year[134] Operating Expenses - Operating expenses increased to $21.30 million in Q1 2022, up from $6.94 million in Q1 2021[125] - Selling and marketing expenses increased by $5.2 million, or 422%, to $6.5 million, primarily due to higher marketing costs at Ault Alliance[136] - General and administrative expenses rose by $8.6 million, or 169%, to $13.7 million, driven by non-cash stock compensation and costs from hotel operations[137] Cash Flow and Investments - Net cash provided by operating activities totaled $25.0 million for the three months ended March 31, 2022, compared to a net cash used of $14.2 million in the prior year[148] - Net cash used in investing activities was $24.4 million, including $35.4 million for capital expenditures related to Bitcoin mining equipment[149] - Cash and cash equivalents increased to $39.4 million as of March 31, 2022, up from $15.9 million at the end of 2021[148] Strategic Acquisitions and Investments - The company fully paid off $66 million in senior secured notes on March 30, 2022[112] - BitNile acquired the remaining 30% interest in Alliance Cloud Services for $1.8 million, making it a wholly-owned subsidiary[119] - Ault Alliance's stalking horse bid for EYP's assets is based on an enterprise value of approximately $67.7 million[114] - The company plans to continue pursuing growth through acquisitions and strategic investments in various sectors, including cryptocurrency and defense[123] Variable Interest Entity (VIE) and Technology Development - AVLP is classified as a Variable Interest Entity (VIE) and is not consolidated due to the company not being the primary beneficiary[154] - As of March 31, 2022, the company's ownership percentage in AVLP was less than 20%[155] - The company advanced a total of $3.6 million to AVLP under existing loan agreements[155] - AVLP has developed a novel cost-effective and environmentally friendly material synthesis technology for textile applications[156] - AVLP's technology includes Multiplex Laser Surface Enhancement, which enhances functionalities such as dyeability, hydrophilicity, and fire retardancy[156] - The new technology significantly reduces the use of water, harmful chemicals, and energy compared to conventional textile treatment methods[156]
Ault Alliance(AULT) - 2022 Q1 - Quarterly Report