Mawson Infrastructure (US:MIGI)2023-11-13 21:16Revenue Performance - Digital currency mining revenue for Q3 2023 was $6.90 million, a 17% increase from $5.91 million in Q3 2022, driven by a 32% increase in the average price of bitcoin[154]. - Total revenues for Q3 2023 were $11.33 million, down from $28.33 million in Q3 2022[152]. - Digital currency mining revenue for the nine months ended September 30, 2023, was $14.55 million, a decrease of 64% from $40.91 million in 2022, attributed to a 55% decrease in bitcoin production[169]. - Total revenues for the nine months ended September 30, 2023, were $29.55 million, down from $67.53 million in 2022, reflecting a significant decline in mining-related revenues[168]. - Co-location revenue decreased to $2.96 million in Q3 2023 from $5.73 million in Q3 2022 due to the expiration of the co-location agreement with Celsius Mining LLC[155]. - Co-location revenue increased to $11.88 million for the nine months ended September 30, 2023, compared to $9.84 million in 2022, due to more miners being co-located[170]. Expenses and Losses - Cost of revenues decreased to $7.72 million in Q3 2023 from $18.18 million in Q3 2022, primarily due to reduced power costs[158]. - Selling, general and administrative expenses were $3.66 million in Q3 2023, down from $5.00 million in Q3 2022, reflecting a $1.16 million reduction in payroll costs[160]. - The company reported a loss from operations of $16.22 million in Q3 2023, compared to a loss of $8.24 million in Q3 2022[152]. - The net loss attributed to Mawson Infrastructure Group stockholders for Q3 2023 was $19.05 million, compared to a net loss of $20.86 million in Q3 2022[152]. - The company incurred a loss after tax of $47.49 million for the nine months ended September 30, 2023, compared to a loss of $34.32 million for the same period in 2022[203]. - For the nine months ended September 30, 2023, the net loss increased to $48,361,138 from $35,227,490 in the same period of 2022[210]. Cash Flow and Financial Position - Net cash used by operating activities for the nine months ended September 30, 2023, was $4.82 million, a significant decrease from $25.14 million provided in the same period of 2022[195]. - As of September 30, 2023, the company had $17.78 million in outstanding short-term borrowings, down from $23.61 million as of December 31, 2022[194]. - The company reported negative working capital of $32.98 million as of September 30, 2023, compared to negative working capital of $15.17 million as of December 31, 2022[195]. - Cash and cash equivalents increased to $1.50 million as of September 30, 2023, from $0.95 million as of December 31, 2022[192]. - For the nine months ended September 30, 2023, net cash provided by investing activities was $10.51 million, a turnaround from net cash used of $55.47 million in the same period of 2022[196]. Stock and Compliance Issues - The company received a notice from Nasdaq regarding non-compliance with the $1.00 minimum bid price requirement, with a compliance period until April 1, 2024[147]. - Stock-based compensation expenses for the three months ended September 30, 2023, were $3.78 million, up from $0.80 million in the same period of 2022[161]. - The company raised $4.60 million through a registered direct offering of 2,083,336 shares at a price of $2.40 per share on May 3, 2023[4]. - The company has $15.33 million in dispute related to a deposit with Celsius Mining LLC[190]. Depreciation and Amortization - Depreciation and amortization for the nine months ended September 30, 2023, was $28.63 million, a decrease of 37.6% from $46.06 million in 2022, primarily due to fewer miners owned[179]. - Depreciation and amortization expenses for the three months ended September 30, 2023, were $11,875,618, down from $16,252,106 in the same period of 2022[210]. Other Financial Metrics - The average price of bitcoin increased from $21,293 in Q3 2022 to $28,109 in Q3 2023, despite a 13% decrease in total bitcoin produced[154]. - The loss on the fair value of the derivative asset for the nine months ended September 30, 2023, was $6.65 million, compared to a gain of $21.38 million in 2022[180]. - Selling, general and administrative expenses decreased to $14.90 million for the nine months ended September 30, 2023, from $20.88 million in 2022, a reduction of 28.6%[176]. - The company reported unrealized and realized losses of $600,619 for the three months ended September 30, 2023, compared to losses of $7,320,412 in the same period of 2022[210]. Accounting Policies - There were no material changes to critical accounting policies and estimates as disclosed in the Annual Report for the year ended December 31, 2022[211]. - The company, as a smaller reporting entity, has opted not to provide disclosures regarding market risk[212].