Akerna (US:KERN)2024-05-13 23:23Mining Performance - For Q1 2024, Gryphon mined approximately 142 bitcoins, a decrease of 33% from 212 bitcoins mined in Q1 2023[164] - Mining revenues for 2023 totaled $21,052,000, with Q1 2024 revenues at $7,490,000, reflecting a 55% increase from Q1 2023's $4,840,000[165] - The cost to mine one bitcoin increased significantly from $12,910 in Q1 2023 to $34,063 in Q1 2024, indicating a rise of 164%[165] - Gryphon's breakeven cost for total Bitcoin Equivalent Coins generated was $34,063 in Q1 2024, compared to $12,385 in Q1 2023, marking a 175% increase[166] - The average value of one mined bitcoin rose from $22,830 in Q1 2023 to $52,746 in Q1 2024, an increase of 131%[165] Financial Overview - Total revenues for the three months ended March 31, 2024, were $7,490,000, up 47.6% from $5,076,000 in the same period of 2023[176] - Cost of revenues increased to $4,837,000 for the three months ended March 31, 2024, from $2,737,000 in 2023, a rise of 76.7%[180] - General and administrative expenses rose to $2,461,000 for the three months ended March 31, 2024, compared to $1,354,000 in 2023, an increase of 81.8%[181] - The company reported a loss from operations of $1,560,000 for the three months ended March 31, 2024, a slight improvement from a loss of $1,688,000 in the same period of 2023[176] - Other expenses increased significantly to $10,184,000 for the three months ended March 31, 2024, compared to $5,222,000 in 2023, marking a 95.0% increase[176] - The company reported a net loss of $11,744,000 for Q1 2024, compared to a net loss of $6,910,000 in Q1 2023[217] Cash Flow and Capital Resources - The company had cash and cash equivalents of $1,737,000 as of March 31, 2024, up from $915,000 as of December 31, 2023[199] - The accumulated deficit increased to approximately $58,180,000 as of March 31, 2024, from $47,175,000 as of December 31, 2023[199] - The company anticipates needing additional capital resources to fund operations and may consider selling additional equity or debt securities[200] - Net cash used in operating activities for Q1 2024 was approximately $983,000, compared to a net cash provided of $1,807,000 in Q1 2023[202][203][204] - Cash proceeds from the sale of digital currency in Q1 2024 were approximately $6,106,000, with operating expenditures of approximately $7,089,000[203] - Net cash provided by financing activities in Q1 2024 was approximately $1,805,000, primarily from cash proceeds of $1,395,000 from the issuance of common stock[202][206] Operational Strategy - Gryphon has deployed approximately 8,800 S19j Pro Antminers, with a focus on using net carbon neutral energy in its operations[160][162] - Gryphon's strategy includes working with power hosting partners committed to climate science, utilizing approximately 28 megawatts of renewable hydro energy[163] - The Coinmint Agreement involves hosting services for 7,200 S19j Pro Antminer machines at a hydro-powered facility[207] Market and Asset Valuation - The average value of Bitcoin rose to approximately $53,000 for the three months ended March 31, 2024, compared to $23,000 for the same period in 2023, an increase of approximately 130%[178] - Gryphon's electricity costs increased from $0.059 per kilowatt hour in Q1 2023 to $0.082 per kilowatt hour in Q1 2024, reflecting a 39% rise[168] - The global hashrate of the Bitcoin network increased sequentially by 18.9%, 9.1%, 21.6%, and 19.0% over the last four quarters ending March 31, 2024[168] Future Offerings - The company has initiated a new At The Market offering program with an aggregate offering price of up to $70,000,000, having sold 32,032 shares for total net proceeds of $44,958 as of May 9, 2024[175] - The company filed a prospectus supplement for an offering of up to $70.0 million of common stock under an at-the-market issuance sales agreement[201] - The company has a remaining capacity of $69,955,042 under the ATM as of May 9, 2024[201] Accounting and Financial Adjustments - Adjusted EBITDA for Q1 2024 was approximately $1,895,000, down from $4,235,000 in Q1 2023[217] - The adoption of ASU 2023-08 resulted in a $739,000 increase in digital assets as of January 1, 2024[218] - The company has no off-balance sheet arrangements that could materially affect its financial condition[209]