Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 17, 2023 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-12711 | |
Entity Registrant Name | AULT ALLIANCE, INC. | |
Entity Central Index Key | 0000896493 | |
Entity Tax Identification Number | 94-1721931 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 11411 Southern Highlands Pkwy | |
Entity Address, Address Line Two | 240 | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89141 | |
City Area Code | 949 | |
Local Phone Number | 444-5464 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 68,742,947 | |
Class A Common Stock, $0.001 par value | ||
Title of 12(b) Security | Class A Common Stock, $0.001 par value | |
Trading Symbol | AULT | |
Security Exchange Name | NYSEAMER | |
13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share | ||
Title of 12(b) Security | 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share | |
Trading Symbol | AULT PRD | |
Security Exchange Name | NYSEAMER |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,736,000 | $ 7,942,000 |
Restricted cash | 1,903,000 | 732,000 |
Cash and marketable securities held in trust account | 118,193,000 | |
Marketable equity securities | 72,000 | 6,590,000 |
Accounts receivable | 24,651,000 | 19,322,000 |
Inventories | 22,482,000 | 22,036,000 |
Investment in promissory notes and other, related party | 3,018,000 | 2,868,000 |
Loans receivable, current | 1,166,000 | 7,593,000 |
Prepaid expenses and other current assets | 8,709,000 | 5,074,000 |
Current assets of discontinued operations | 98,596,000 | 5,959,000 |
TOTAL CURRENT ASSETS | 169,333,000 | 196,309,000 |
Cash and marketable securities held in trust account | 2,171,000 | |
Intangible assets, net | 16,980,000 | 34,786,000 |
Goodwill | 8,973,000 | 27,902,000 |
Property and equipment, net | 132,044,000 | 146,779,000 |
Right-of-use assets | 10,419,000 | 8,419,000 |
Investments in common stock, related parties | 2,712,000 | 6,449,000 |
Investments in other equity securities | 26,014,000 | 42,494,000 |
Other assets | 9,810,000 | 5,841,000 |
Noncurrent assets of discontinued operations | 92,535,000 | |
TOTAL ASSETS | 378,456,000 | 561,514,000 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 88,213,000 | 60,780,000 |
Operating lease liability, current | 1,901,000 | 2,975,000 |
Notes payable, net | 30,255,000 | 39,621,000 |
Notes payable, related party | 16,225,000 | |
Convertible notes payable, current | 8,601,000 | 1,325,000 |
Redeemable noncontrolling interests in equity of subsidiaries | 117,993,000 | |
Current liabilities of discontinued operations | 69,212,000 | 2,631,000 |
TOTAL CURRENT LIABILITIES | 214,407,000 | 225,325,000 |
LONG TERM LIABILITIES | ||
Operating lease liability, non-current | 8,697,000 | 5,836,000 |
Notes payable | 21,211,000 | 29,831,000 |
Convertible notes payable | 9,453,000 | 11,451,000 |
Deferred underwriting commissions of Ault Disruptive Technologies Corporation (“Ault Disruptive”) subsidiary | 3,450,000 | 3,450,000 |
Noncurrent liabilities of discontinued operations | 61,633,000 | |
TOTAL LIABILITIES | 257,218,000 | 337,526,000 |
Redeemable noncontrolling interests in equity of subsidiaries | 2,179,000 | |
STOCKHOLDERS’ EQUITY | ||
Additional paid-in capital | 589,279,000 | 565,904,000 |
Accumulated deficit | (467,088,000) | (329,078,000) |
Accumulated other comprehensive loss | (2,102,000) | (1,100,000) |
Treasury stock, at cost | (30,540,000) | (29,235,000) |
TOTAL AULT ALLIANCE STOCKHOLDERS’ EQUITY | 89,561,000 | 206,492,000 |
Non-controlling interest | 29,498,000 | 17,496,000 |
TOTAL STOCKHOLDERS’ EQUITY | 119,059,000 | 223,988,000 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 378,456,000 | 561,514,000 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred Stock, value | ||
Series B Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred Stock, value | ||
Series D Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred Stock, value | ||
Common Class A [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common Stock, value | 12,000 | 1,000 |
Common Class B [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common Stock, value |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Series A Preferred Stock [Member] | ||
Convertible preferred stock, stated value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 7,040 | 7,040 |
Preferred stock, shares outstanding | 7,040 | 7,040 |
Preferred stock, liquidation preference, value | $ 176,000 | $ 176,000 |
Series B Preferred Stock [Member] | ||
Convertible preferred stock, stated value (in dollars per share) | $ 10 | $ 10 |
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 125,000 | 125,000 |
Preferred stock, shares outstanding | 125,000 | 125,000 |
Preferred stock, liquidation preference, value | $ 1,190,000 | $ 1,190,000 |
Series D Preferred Stock [Member] | ||
Convertible preferred stock, stated value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 425,197 | 172,838 |
Preferred stock, shares outstanding | 425,197 | 172,838 |
Preferred stock, liquidation preference, value | $ 10,630,000 | $ 4,321,000 |
Common Class A [Member] | ||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 12,379,673 | 1,274,157 |
Common stock, shares outstanding | 12,379,673 | 1,274,157 |
Common Class B [Member] | ||
Common stock, par or stated value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Total revenue | $ 47,963,000 | $ 44,265,000 | $ 119,930,000 | $ 87,161,000 |
Total cost of revenue | 38,295,000 | 25,448,000 | 91,156,000 | 43,191,000 |
Gross profit | 9,668,000 | 18,817,000 | 28,774,000 | 43,970,000 |
Operating expenses | ||||
Research and development | 1,769,000 | 521,000 | 5,415,000 | 1,945,000 |
Selling and marketing | 8,034,000 | 7,428,000 | 26,405,000 | 20,888,000 |
General and administrative | 17,760,000 | 15,362,000 | 59,540,000 | 44,357,000 |
Impairment of goodwill and intangible assets | 35,570,000 | |||
Impairment of property and equipment | 3,895,000 | 3,895,000 | ||
Impairment of deposit due to vendor bankruptcy filing | 2,000,000 | 2,000,000 | ||
Impairment of mined cryptocurrency | 113,000 | 515,000 | 376,000 | 2,930,000 |
Total operating expenses | 31,571,000 | 25,826,000 | 131,201,000 | 72,120,000 |
Loss from operations | (21,903,000) | (7,009,000) | (102,427,000) | (28,150,000) |
Other income (expense): | ||||
Interest and other income | 309,000 | 725,000 | 3,888,000 | 1,255,000 |
Interest expense | (4,414,000) | (2,367,000) | (30,537,000) | (32,063,000) |
Loss on extinguishment of debt | (1,546,000) | (1,700,000) | ||
Realized and unrealized (loss) gain on marketable securities | 74,000 | 709,000 | (170,000) | 1,016,000 |
Loss from investment in unconsolidated entity | (924,000) | |||
Impairment of equity securities | (9,555,000) | |||
(Loss) gain on the sale of fixed assets | (33,000) | 2,728,000 | ||
Change in fair value of warrant liability | (562,000) | (3,000) | 2,655,000 | (27,000) |
Total other expense, net | (6,172,000) | (936,000) | (32,691,000) | (30,743,000) |
Loss before income taxes | (28,075,000) | (7,945,000) | (135,118,000) | (58,893,000) |
Income tax (benefit) provision | (565,000) | 144,000 | 540,000 | 361,000 |
Net loss from continuing operations | (27,510,000) | (8,089,000) | (135,658,000) | (59,254,000) |
Net (loss) income from discontinued operations | (929,000) | 93,000 | (5,862,000) | (3,614,000) |
Net loss | (28,439,000) | (7,996,000) | (141,520,000) | (62,868,000) |
Net loss attributable to non-controlling interest | 6,668,000 | 725,000 | 10,420,000 | 1,061,000 |
Net loss attributable to Ault Alliance, Inc. | (21,771,000) | (7,271,000) | (131,100,000) | (61,807,000) |
Preferred dividends | (413,000) | (190,000) | (963,000) | (239,000) |
Net loss available to common stockholders | $ (22,184,000) | $ (7,461,000) | $ (132,063,000) | $ (62,046,000) |
Basic and diluted net income (loss) per common share: | ||||
Net income (loss) continuing operations basic | $ (3.80) | $ (7.71) | $ (47.66) | $ (77.70) |
Net income (loss) continuing operations diluted | (3.80) | (7.71) | (47.66) | (77.70) |
Net income (loss) discontinued operations basic | (0.17) | 0.10 | (2.21) | (4.81) |
Net income (loss) discontinued operations diluted | (0.17) | 0.10 | (2.21) | (4.81) |
Net loss per common share | $ (3.97) | $ (7.61) | $ (49.87) | $ (82.51) |
Weighted average basic common shares outstanding | 5,587,000 | 980,000 | 2,648,000 | 752,000 |
Weighted average diluted common shares outstanding | 5,587,000 | 980,000 | 2,648,000 | 752,000 |
Comprehensive loss | ||||
Foreign currency translation adjustment | $ (651,000) | $ 306,000 | $ (1,001,000) | $ (1,452,000) |
Other comprehensive loss | (651,000) | 306,000 | (1,001,000) | (1,452,000) |
Total comprehensive loss | (22,835,000) | (7,155,000) | (133,064,000) | (63,498,000) |
Revenue products [Member] | ||||
Total revenue | 28,164,000 | 27,031,000 | 54,594,000 | 43,539,000 |
Revenue Cryptocurrency Mining Net [Member] | ||||
Total revenue | 7,558,000 | 3,874,000 | 23,273,000 | 11,398,000 |
Crane Operations [Member] | ||||
Total revenue | 12,490,000 | 37,726,000 | ||
Lending and Trading Activities [Member] | ||||
Total revenue | (249,000) | 13,360,000 | 4,337,000 | 32,224,000 |
Product [Member] | ||||
Total cost of revenue | 20,425,000 | 20,193,000 | 39,248,000 | 30,985,000 |
Cost Of Revenue Crypto Currency Mining [Member] | ||||
Total cost of revenue | 10,228,000 | 5,255,000 | 28,057,000 | 12,206,000 |
Cost Of Sales Crane Operations [Member] | ||||
Total cost of revenue | 7,642,000 | 22,671,000 | ||
Cost Of Revenue Lending And Trading Activities [Member] | ||||
Total cost of revenue | $ 1,180,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Treasury Stocks [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 385,728,000 | $ (145,600,000) | $ (106,000) | $ 1,613,000 | $ (13,180,000) | $ 228,455,000 | ||
Beginning balance, shares at Dec. 31, 2021 | 132,040 | 281,149 | ||||||
Stock-based compensation | 5,190,000 | 556,000 | 5,746,000 | |||||
Issuance of common stock for cash | $ 1,000 | 167,982,000 | 167,983,000 | |||||
Issuance of common stock for cash, shares | 855,535 | |||||||
Financing cost in connection with sales of common stock | (4,103,000) | (4,103,000) | ||||||
Increase in ownership interest of subsidiary | (1,980,000) | (1,921,000) | (3,901,000) | |||||
Purchase of treasury stock - Ault Alpha | (15,607,000) | (15,607,000) | ||||||
Net loss | (61,807,000) | (61,807,000) | ||||||
Preferred dividends | (239,000) | (239,000) | ||||||
Foreign currency translation adjustments | (1,452,000) | (1,452,000) | ||||||
Net loss attributable to non-controlling interest | (1,061,000) | (1,061,000) | ||||||
Other | 1,000 | (1,000) | 1,000 | (1,000) | ||||
Preferred stock offering costs | (602,000) | (602,000) | ||||||
Issuance of Gresham Worldwide, Inc. common stock for acquisition of GIGA | 1,669,000 | 1,669,000 | ||||||
Non-controlling interest from GIGA acquisition | 2,735,000 | 2,735,000 | ||||||
Issuance of common stock for restricted stock awards | ||||||||
Issuance of common stock for restricted stock awards (in shares) | 1,473 | |||||||
Preferred stock issued for cash | 3,873,000 | 3,873,000 | ||||||
Preferred stock issued for cash, shares | 154,928 | |||||||
Non-controlling interest from AVLP acquisition | 6,738,000 | 6,738,000 | ||||||
Non-controlling interest from SMC acquisition | 10,336,000 | 10,336,000 | ||||||
Ending balance, value at Sep. 30, 2022 | $ 1,000 | 557,758,000 | (207,647,000) | (1,557,000) | 18,996,000 | (28,788,000) | 338,763,000 | |
Ending balance, shares at Sep. 30, 2022 | 286,968 | 1,138,157 | ||||||
Beginning balance, value at Jun. 30, 2022 | $ 1,000 | 550,036,000 | (200,184,000) | (1,863,000) | 18,048,000 | (20,639,000) | 345,399,000 | |
Beginning balance, shares at Jun. 30, 2022 | 278,658 | 1,081,469 | ||||||
Stock-based compensation | 1,563,000 | 479,000 | 2,042,000 | |||||
Issuance of common stock for cash | 4,557,000 | 4,557,000 | ||||||
Issuance of common stock for cash, shares | 56,688 | |||||||
Financing cost in connection with sales of common stock | (79,000) | (79,000) | ||||||
Increase in ownership interest of subsidiary | (132,000) | (1,539,000) | (1,671,000) | |||||
Purchase of treasury stock - Ault Alpha | (8,148,000) | (8,148,000) | ||||||
Net loss | (7,271,000) | (7,271,000) | ||||||
Preferred dividends | (190,000) | (190,000) | ||||||
Foreign currency translation adjustments | 306,000 | 306,000 | ||||||
Net loss attributable to non-controlling interest | (725,000) | (725,000) | ||||||
Other | 2,000 | (2,000) | (2,000) | (1,000) | (3,000) | |||
Preferred stock issued | 207,000 | 207,000 | ||||||
Preferred stock issued, shares | 8,310 | |||||||
Preferred stock offering costs | (65,000) | (65,000) | ||||||
Issuance of Gresham Worldwide, Inc. common stock for acquisition of GIGA | 1,669,000 | 1,669,000 | ||||||
Non-controlling interest from GIGA acquisition | 2,735,000 | 2,735,000 | ||||||
Ending balance, value at Sep. 30, 2022 | $ 1,000 | 557,758,000 | (207,647,000) | (1,557,000) | 18,996,000 | (28,788,000) | 338,763,000 | |
Ending balance, shares at Sep. 30, 2022 | 286,968 | 1,138,157 | ||||||
Beginning balance, value at Dec. 31, 2022 | $ 1,000 | 565,904,000 | (329,078,000) | (1,100,000) | 17,496,000 | (29,235,000) | 223,988,000 | |
Beginning balance, shares at Dec. 31, 2022 | 304,878 | 1,274,157 | ||||||
Stock-based compensation | 5,642,000 | 3,546,000 | 9,188,000 | |||||
Issuance of common stock for cash | $ 11,000 | 25,316,000 | 25,327,000 | |||||
Issuance of common stock for cash, shares | 10,917,388 | |||||||
Financing cost in connection with sales of common stock | (847,000) | (847,000) | ||||||
Issuance of common stock for conversion of preferred stock liabilities | 912,000 | 912,000 | ||||||
Issuance of common stock for conversion of preferred stock liabilities, shares | 143,402 | |||||||
Common stock issued in connection with issuance of notes payable | 162,000 | 162,000 | ||||||
Fair value of common stock issued in connection with notes payable, shares | 39,752 | |||||||
Remeasurement of Ault Disruptive subsidiary temporary equity | (5,945,000) | (5,945,000) | ||||||
Increase in ownership interest of subsidiary | 13,000 | (1,597,000) | (1,584,000) | |||||
Sale of subsidiary stock to non-controlling interests | 3,915,000 | 3,915,000 | ||||||
Purchase of treasury stock - Ault Alpha | (1,306,000) | (1,306,000) | ||||||
Net loss | (131,100,000) | (131,100,000) | ||||||
Preferred dividends | (963,000) | (963,000) | ||||||
Foreign currency translation adjustments | (1,001,000) | (1,001,000) | ||||||
Net loss attributable to non-controlling interest | (10,420,000) | (10,420,000) | ||||||
Other | (1,000) | (2,000) | (1,000) | 1,000 | 1,000 | (2,000) | ||
Preferred stock offering costs | (3,431,000) | (3,431,000) | ||||||
Issuance of common stock for restricted stock awards | ||||||||
Issuance of common stock for restricted stock awards (in shares) | 4,974 | |||||||
Preferred stock issued for cash | 6,309,000 | 6,309,000 | ||||||
Preferred stock issued for cash, shares | 252,359 | |||||||
Non-controlling position at RiskOn International, Inc. (“ROI”) subsidiary acquired | 6,357,000 | 6,357,000 | ||||||
Distribution to Circle 8 Crane Services, LLC (“Circle 8”) non-controlling interest | (500,000) | (500,000) | ||||||
Distribution of securities of TurnOnGreen to Ault Alliance stockholders ($2.02 per share) | (10,700,000) | 10,700,000 | ||||||
Ending balance, value at Sep. 30, 2023 | $ 12,000 | 589,279,000 | (467,088,000) | (2,102,000) | 29,498,000 | (30,540,000) | 119,059,000 | |
Ending balance, shares at Sep. 30, 2023 | 557,237 | 12,379,673 | ||||||
Beginning balance, value at Jun. 30, 2023 | $ 2,000 | 573,386,000 | (444,371,000) | (1,450,000) | 23,853,000 | (29,919,000) | 121,501,000 | |
Beginning balance, shares at Jun. 30, 2023 | 557,237 | 1,526,411 | ||||||
Stock-based compensation | 959,000 | 1,622,000 | 2,581,000 | |||||
Issuance of common stock for cash | $ 11,000 | 20,404,000 | 20,415,000 | |||||
Issuance of common stock for cash, shares | 10,707,601 | |||||||
Financing cost in connection with sales of common stock | (715,000) | (715,000) | ||||||
Issuance of common stock for conversion of preferred stock liabilities | 584,000 | 584,000 | ||||||
Issuance of common stock for conversion of preferred stock liabilities, shares | 105,909 | |||||||
Common stock issued in connection with issuance of notes payable | 162,000 | 162,000 | ||||||
Fair value of common stock issued in connection with notes payable, shares | 39,752 | |||||||
Remeasurement of Ault Disruptive subsidiary temporary equity | (530,000) | (530,000) | ||||||
Increase in ownership interest of subsidiary | (352,000) | (352,000) | ||||||
Sale of subsidiary stock to non-controlling interests | 343,000 | 343,000 | ||||||
Purchase of treasury stock - Ault Alpha | (621,000) | (621,000) | ||||||
Net loss | (21,771,000) | (21,771,000) | ||||||
Preferred dividends | (413,000) | (413,000) | ||||||
Foreign currency translation adjustments | (651,000) | (651,000) | ||||||
Net loss attributable to non-controlling interest | (6,668,000) | (6,668,000) | ||||||
Distribution of securities of Imperalis Holding Corp., d/b/a TurnOnGreen, Inc. (“TurnOnGreen”) to Ault Alliance stockholders ($1.44 per share) | (5,500,000) | 10,700,000 | 5,200,000 | |||||
Other | (1,000) | (1,000) | (3,000) | (1,000) | (6,000) | |||
Ending balance, value at Sep. 30, 2023 | $ 12,000 | $ 589,279,000 | $ (467,088,000) | $ (2,102,000) | $ 29,498,000 | $ (30,540,000) | $ 119,059,000 | |
Ending balance, shares at Sep. 30, 2023 | 557,237 | 12,379,673 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (141,520,000) | $ (62,868,000) |
Net loss from discontinued operations | (5,862,000) | (3,614,000) |
Net loss from continuing operations | (135,658,000) | (59,254,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 20,808,000 | 8,298,000 |
Amortization of debt discount | 22,463,000 | 26,665,000 |
Amortization of right-of-use assets | 2,142,000 | 1,193,000 |
Impairment of goodwill and intangible assets | 35,570,000 | |
Impairment of property and equipment | 3,895,000 | |
Stock-based compensation | 9,188,000 | 5,746,000 |
Impairment of deposit due to vendor bankruptcy filing | 2,000,000 | |
Gain on the sale of fixed assets | (2,728,000) | |
Impairment of equity securities | 11,555,000 | |
Impairment of cryptocurrencies | 376,000 | 2,930,000 |
Realized gain on the sale of cryptocurrencies | (404,000) | (829,000) |
Revenue, cryptocurrency mining | (23,273,000) | (11,398,000) |
Realized losses on sale of marketable securities | (33,140,000) | (19,194,000) |
Unrealized (gains) losses on marketable securities | (2,554,000) | 16,937,000 |
Unrealized losses on investments in common stock, related parties | 3,752,000 | 5,676,000 |
Unrealized gains on equity securities | (32,949,000) | |
Income from cash held in trust | (2,561,000) | |
Loss from investment in unconsolidated entity | 924,000 | |
Loss on remeasurement of investment in unconsolidated entity | 2,700,000 | |
Provision for loan losses | 1,180,000 | |
Change in the fair value of warrant liability | (2,655,000) | (917,000) |
Other | 1,550,000 | (766,000) |
Changes in operating assets and liabilities: | ||
Proceeds from the sale of cryptocurrencies | 21,330,000 | 8,952,000 |
Marketable equity securities | 71,159,000 | 68,532,000 |
Accounts receivable | (5,582,000) | (3,022,000) |
Inventories | (456,000) | (5,867,000) |
Prepaid expenses and other current assets | (1,530,000) | 1,599,000 |
Other assets | (3,969,000) | (2,944,000) |
Accounts payable and accrued expenses | 13,527,000 | 7,528,000 |
Lease liabilities | (2,511,000) | (1,334,000) |
Net cash provided by operating activities from continuing operations | 1,474,000 | 21,206,000 |
Net cash (used in) provided by operating activities from discontinued operations | (3,632,000) | 683,000 |
Net cash (used in) provided by operating activities | (2,158,000) | 21,889,000 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (8,734,000) | (80,058,000) |
Investment in promissory notes and other, related parties | (2,200,000) | |
Investments in common stock and warrants, related parties | (4,840,000) | |
Purchase of SMC, net of cash received | (8,239,000) | |
Purchase of GIGA, net of cash received | (3,687,000) | |
Cash received upon acquisition of AVLP | 1,245,000 | |
Acquisition of non-controlling interests | (1,584,000) | (3,901,000) |
Purchase of marketable equity securities | (1,981,000) | |
Sales of marketable equity securities | 11,748,000 | |
Investments in loans receivable | (182,000) | (7,081,000) |
Principal payments on loans receivable | 10,525,000 | |
Investments in equity securities | (10,702,000) | (22,449,000) |
Proceeds from the sale of fixed assets | 4,515,000 | |
Other | (79,000) | |
Net cash used in investing activities from continuing operations | (16,766,000) | (110,918,000) |
Net cash used in investing activities from discontinued operations | (6,103,000) | (4,442,000) |
Net cash used in investing activities | (22,869,000) | (115,360,000) |
Cash flows from financing activities: | ||
Gross proceeds from sales of common stock | 25,327,000 | 167,983,000 |
Financing cost in connection with sales of common stock | (847,000) | (4,103,000) |
Proceeds from sales of preferred stock | 6,309,000 | 3,873,000 |
Financing cost in connection with sales of preferred stock | (3,431,000) | (602,000) |
Proceeds from subsidiaries’ sale of stock to non-controlling interests | 3,915,000 | |
Distribution to Circle 8 non-controlling interest | (500,000) | |
Proceeds from notes payable | 40,406,000 | 15,268,000 |
Repayment of margin accounts | (767,000) | (16,111,000) |
Payments on notes payable | (58,068,000) | (67,698,000) |
Payments of preferred dividends | (963,000) | (239,000) |
Purchase of treasury stock | (1,306,000) | (15,607,000) |
Proceeds from sales of convertible notes | 9,169,000 | |
Payments on convertible notes | (660,000) | |
Net cash provided by financing activities from continuing operations | 18,584,000 | 82,764,000 |
Net cash provided by financing activities from discontinued operations | 5,189,000 | 3,297,000 |
Net cash provided by financing activities | 23,773,000 | 86,061,000 |
Effect of exchange rate changes on cash and cash equivalents | (311,000) | 920,000 |
Net decrease in cash and cash equivalents and restricted cash | (1,565,000) | (6,490,000) |
Cash and cash equivalents and restricted cash at beginning of period | 14,055,000 | 21,233,000 |
Cash and cash equivalents and restricted cash at end of period | 12,490,000 | 14,743,000 |
Less cash and cash equivalents and restricted cash of discontinued operations at end of period | (1,851,000) | (6,154,000) |
Cash and cash equivalents and restricted cash of continuing operations at end of period | 10,639,000 | 8,589,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest – continuing operations | 3,990,000 | 1,438,000 |
Cash paid during the period for interest – discontinued operations | 5,513,000 | 3,764,000 |
Non-cash investing and financing activities: | ||
Settlement of accounts payable with digital currency | 20,000 | 417,000 |
Conversion of investment in unconsolidated entity for acquisition of AVLP | 20,706,000 | |
Conversion of convertible notes payable, related party into shares of common stock | 400,000 | 400,000 |
Conversion of debt and equity securities to marketable securities | 23,703,000 | 40,324,000 |
Conversion of loans receivable to marketable securities | 5,430,000 | 3,650,000 |
Conversion of interest receivable to marketable securities | 250,000 | |
Recognition of new operating lease right-of-use assets and lease liabilities | 3,952,000 | 2,188,000 |
Remeasurement of Ault Disruptive temporary equity | 5,945,000 | |
Preferred stock exchanged for notes payable | 9,224,000 | |
Notes payable exchanged for convertible notes payable | 2,200,000 | |
Notes payable exchanged for notes payable, related party | 11,645,000 | |
Redeemable noncontrolling interests in equity of subsidiaries paid with cash and marketable securities held in trust account | 120,064,000 | |
Dividend paid in TurnOnGreen common stock in additional paid-in capital | $ 10,700,000 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS Ault Alliance, Inc., a Delaware corporation (“Ault Alliance” or the “Company”) is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly- and majority-owned subsidiaries and strategic investments, the Company owns and operates a data center at which it mines Bitcoin and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries, and provides mission-critical products that support a diverse range of industries, including metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations and textiles. In addition, the Company extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Alliance was founded by Milton “Todd” Ault, III, its Executive Chairman and is led by Milton “Todd” Ault, III, William B. Horne, its Chief Executive Officer and Vice Chairman and Henry Nisser, its President and General Counsel. Together, they constitute the Executive Committee, which manages the day-to-day operations of the Company. All major investment and capital allocation decisions are made for the Company by the Executive Committee. The Company has the following eight reportable segments: · Energy and Infrastructure (“Energy”) – crane operations, advanced textiles processing and oil exploration; · Technology and Finance (“Fintech”) – commercial lending, activist investing, stock trading, media, and digital learning; · The Singing Machine Company, Inc. (“SMC”) – consumer electronics; · Sentinum, Inc. (“Sentinum”) – cryptocurrency mining operations and colocation and hosting services for the emerging artificial intelligence ecosystems and other industries; · GIGA – defense industry; · TurnOnGreen – commercial electronics solutions; · RiskOn International, Inc., formerly BitNile Metaverse, Inc. (“ROI”) – immersive metaverse platform; and · Ault Disruptive – a special purpose acquisition company. Reverse Stock Split On May 15, 2023, pursuant to the authorization provided by the Company’s stockholders at a special meeting of stockholders, the Company’s board of directors approved an amendment to the Certificate of Incorporation to effectuate a reverse stock split of the Company’s issued and outstanding common stock by a ratio of one-for-three hundred (the “Reverse Split”). The Reverse Split did not affect the number of authorized shares of common stock, preferred stock or their respective par value per share. As a result of the Reverse Split, each three hundred shares of common stock issued and outstanding prior to the Reverse Split were converted into one share of common stock. The Reverse Split became effective in the State of Delaware on May 17, 2023. All share amounts in these financial statements have been updated to reflect the Reverse Split. |
LIQUIDITY AND FINANCIAL CONDITI
LIQUIDITY AND FINANCIAL CONDITION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
LIQUIDITY AND FINANCIAL CONDITION | 2. LIQUIDITY AND FINANCIAL CONDITION As of September 30, 2023, the Company had cash and cash equivalents of $ 8.7 45.1 The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Accordingly, the condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. In making this assessment management performed a comprehensive analysis of the Company’s current circumstances, including its financial position, cash flow and cash usage forecasts, as well as obligations and debts. Although management has a long history of successful capital raises, the analysis used to determine the Company’s ability as a going concern does not include cash sources beyond the Company’s direct control that management expects to be available within the next 12 months. Management expects that the Company’s existing cash and cash equivalents, accounts receivable and marketable securities as of September 30, 2023, will not be sufficient to enable the Company to fund its anticipated level of operations through one year from the date these financial statements are issued. Management anticipates raising additional capital through the private and public sales of the Company’s equity or debt securities and selling its marketable securities and digital currencies, or a combination thereof. Although management believes that such capital sources will be available, there can be no assurances that financing will be available to the Company when needed in order to allow the Company to continue its operations, or if available, on terms acceptable to the Company. If the Company does not raise sufficient capital in a timely manner, among other things, the Company may be forced to scale back its operations or cease operations altogether. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and do not include all the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The Company has made estimates and judgments affecting the amounts reported in the Company’s condensed consolidated financial statements and the accompanying notes. The actual results experienced by the Company may differ materially from the Company’s estimates. The condensed consolidated financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s amended Annual Report on Form 10-K/A for the year ended December 31, 2022 (the “2022 Annual Report”), filed with the Securities and Exchange Commission (the “SEC”) on May 22, 2023. The condensed consolidated balance sheet as of December 31, 2022 was derived from the Company’s audited 2022 financial statements contained in the above referenced 2022 Annual Report. Results of the three and nine months ended September 30, 2023, are not necessarily indicative of the results to be expected for the full year ending December 31, 2023. Significant Accounting Policies Other than as noted below, there have been no material changes to the Company’s significant accounting policies previously disclosed in the 2022 Annual Report. Revenue Recognition – Bitcoin Mining The Company recognizes revenue from Bitcoin mining under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the company satisfies a performance obligation. The Company has entered into a digital asset mining pool by executing a contract with a mining pool operator to provide computing power to the mining pool. The Company’s customer, as defined in ASC 606-10-20, is the mining pool operator with which the Company has agreed to the terms of service and user service agreement. The Company supplies computing power, in exchange for consideration, to the pool operator who in turn provides transaction verification services to third parties via a mining pool that includes other participants. The Company’s enforceable right to compensation begins only when, and lasts as long as, the Company provides computing power to the mining pool operator and is created as power is provided over time. The only consideration due to the Company relates to the provision of computing power. The contracts are terminable at any time by and at no cost to the Company, and by the pool operator. Providing computing power in digital asset transaction verification services is an output of the Company’s ordinary activities. Providing such computing power is the only performance obligation in the Company’s contracts with mining pool operators. The transaction consideration the Company receives, if any, is non-cash consideration in the form of Bitcoin. Changes in the fair value of the non-cash consideration due to form of the consideration (changes in the market price of Bitcoin) are not included in the transaction price and are therefore not included in revenue. The mining pool operator charges fees to cover the costs of maintaining the pool and are deducted from amounts the Company may otherwise earn and are treated as a reduction to the consideration received. Fees fluctuate and historically have been approximately 0.3% per reward earned, on average. In exchange for providing computing power, the Company is entitled to a Full-Pay-Per-Share payout of Bitcoin based on a contractual formula, which primarily calculates the hash rate provided by the Company to the mining pool as a percentage of total network hash rate, and other inputs. The Company is entitled to consideration even if a block is not successfully placed by the mining pool operator. The contract is in effect until terminated by either party. All consideration pursuant to this arrangement is variable. It is not probable that a significant reversal of cumulative revenue will occur and the Company is able to calculate the payout based on the contractual formula, non-cash revenue is estimated and recognized based on the spot price of the Company’s principal market for Bitcoin at the inception of each contract, which is determined to be daily. Non-cash consideration is measured at fair value at contract inception. Fair value of the crypto asset consideration is determined using the spot price of the Company’s principal market for Bitcoin at the beginning of the contract period. This amount is estimated and recognized in revenue upon inception, which is when hash rate is provided. There is no significant financing component in these transactions. Expenses associated with running the cryptocurrency mining business, such as equipment depreciation and electricity costs, are recorded as a component of cost of revenues. Preferred Stock Liabilities The Company follows ASC 480-10, “Distinguishing Liabilities from Equity” in its evaluation of the accounting for the Preferred Shares (as defined in Note 17). ASC 480-10-25-14 requires liability accounting for certain financial instruments, including shares that embody an unconditional obligation to transfer a variable number of shares, provided that the monetary value of the obligation is based solely or predominantly on one of the following three characteristics: · A fixed monetary amount known at inception; · Variations in something other than the fair value of the issuer’s shares; or · Variations in the fair value of the issuer’s equity shares, but the monetary value to the counterparty moves in the opposite direction as the value of the issuer’s shares. The number of shares delivered is determined on the basis of (1) the fixed monetary amount determined as the stated value and (2) the current stock price at settlement, so that the aggregate fair value of the shares delivered equals the monetary value of the obligation, which is fixed or predominantly fixed. Accordingly, the holder is not significantly exposed to gains and losses attributable to changes in the fair value of the Company’s equity shares. Instead, the Company is using its own equity shares as currency to settle a monetary obligation. Discontinued operations The Company records discontinued operations when the disposal of a separately identified business unit constitutes a strategic shift in the Company’s operations, as defined in ASC Topic 205-20, Discontinued Operations (“ASC Topic 205-20”). Reclassifications Certain prior period amounts have been reclassified for comparative purposes to conform to the current-period financial statement presentation. These reclassifications had no effect on previously reported results of operations. Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses,” (“ASU No. 2016-13”) to improve information on credit losses for financial assets and net investment in leases that are not accounted for at fair value through net income. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. This guidance was effective for the Company beginning on January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers.” The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. |
ASSETS HELD FOR SALE AND DISCON
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Assets Held For Sale And Discontinued Operations | |
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS | 4. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS Presentation of AGREE Operations In September 2023, the Company committed to a plan for its wholly owned subsidiary AGREE to list for sale its four recently renovated Midwest hotels, the Hilton Garden Inn in Madison West, the Residence Inn in Madison West, the Courtyard in Madison West, and the Hilton Garden Inn in Rockford. The decision to sell the hotels follows the decision to also list the multifamily development site in St. Petersburg, Florida and is driven by the Company’s desire to focus on its core businesses, Energy, Fintech and Sentinum. The Company’s real estate properties, which include both hotels and land are currently listed for sale. In connection with the planned sale of AGREE assets, the Company concluded that the net assets of AGREE met the criteria for classification as held for sale. In addition, the proposed sale represents a strategic shift that will have a significant effect on the Company’s operations and financial results. As a result, the Company has presented the results of operations, cash flows and financial position of AGREE as discontinued operations in the accompanying consolidated financial statements and notes for all periods presented. As of September 30, 2023, the Company expects the planned sale of AGREE assets to close within one year and, as a result, the Company has classified the total assets and total liabilities associated with AGREE as current in the consolidated balance sheets as of September 30, 2023. The following table presents the assets and liabilities of AGREE operations: Schedule of assets and liabilities of agree operations September 30, December 31, 2023 2022 Cash and cash equivalents $ 1,851,000 $ 2,550,000 Restricted cash - 2,831,000 Accounts receivable 256,000 264,000 Inventories 51,000 44,000 Prepaid expenses and other current assets 262,000 270,000 Total current assets 2,420,000 5,959,000 Property and equipment, net 96,176,000 92,535,000 Total assets 98,596,000 98,494,000 Accounts payable and accrued expenses 2,097,000 2,631,000 Total current liabilities 2,097,000 2,631,000 Notes payable 67,115,000 61,633,000 Total liabilities 69,212,000 64,264,000 Net assets of discontinued operations $ 29,384,000 $ 34,230,000 A disposal group classified as held for sale shall be measured at the lower of its carrying amount or fair value less costs to sell. No impairment was recognized up reclassification of the disposal group as held for sale. The following table presents the results of AGREE operations: Schedule of estimated costs to sell and expected For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenue, hotel and real estate operations $ 5,404,000 $ 5,513,000 $ 12,031,000 $ 12,809,000 Cost of revenue, hotel operations 3,278,000 3,230,000 9,086,000 8,350,000 Gross profit 2,126,000 2,283,000 2,945,000 4,459,000 General and administrative 1,076,000 585,000 3,294,000 4,309,000 Total operating expenses 1,076,000 585,000 3,294,000 4,309,000 Income (loss) from operations 1,050,000 1,698,000 (349,000 ) 150,000 Interest expense (1,979,000 ) (1,605,000 ) (5,513,000 ) (3,764,000 ) Net (loss) income from discontinued operations $ (929,000 ) $ 93,000 $ (5,862,000 ) $ (3,614,000 ) |
REVENUE DISAGGREGATION
REVENUE DISAGGREGATION | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE DISAGGREGATION | 5. REVENUE DISAGGREGATION The following tables summarize disaggregated customer contract revenues and the source of the revenue for the three and nine months ended September 30, 2023 and 2022. Revenues from lending and trading activities included in consolidated revenues were primarily interest, dividend and other investment income, which are not considered to be revenues from contracts with customers under GAAP. The Company’s disaggregated revenues consisted of the following for the three months ended September 30, 2023 (excludes Ault Disruptive, as that segment has no revenue): Schedule of disaggregated revenues GIGA TurnOn Green Fintech Sentinum SMC ROI Energy Total Primary Geographical Markets North America $ 3,711,000 $ 1,075,000 $ - $ 7,891,000 $ 15,931,000 $ 18,000 $ 12,929,000 $ 41,555,000 Europe 2,521,000 66,000 - - - - 2,000 2,589,000 Middle East and other 4,043,000 25,000 - - - - - 4,068,000 Revenue from contracts with customers 10,275,000 1,166,000 - 7,891,000 15,931,000 18,000 12,931,000 48,212,000 Revenue, lending and trading activities (North America) - - (249,000 ) - - - - (249,000 ) Total revenue $ 10,275,000 $ 1,166,000 $ (249,000 ) $ 7,891,000 $ 15,931,000 $ 18,000 $ 12,931,000 $ 47,963,000 Major Goods or Services Radio frequency/microwave filters $ 2,201,000 $ - $ - $ - $ - $ - $ - $ 2,201,000 Power supply units & systems 2,316,000 1,074,000 - - - - - 3,390,000 Healthcare diagnostic systems 1,243,000 - - - - - - 1,243,000 Defense systems 4,155,000 - - - - - - 4,155,000 Digital currency mining - - - 7,558,000 - - - 7,558,000 Karaoke machines and related consumer goods - - - - 15,931,000 - - 15,931,000 Crane rental - - - - - - 12,490,000 12,490,000 Other 360,000 92,000 - 333,000 - 18,000 441,000 1,244,000 Revenue from contracts with customers 10,275,000 1,166,000 - 7,891,000 15,931,000 18,000 12,931,000 48,212,000 Revenue, lending and trading activities - - (249,000 ) - - - - (249,000 ) Total revenue $ 10,275,000 $ 1,166,000 $ (249,000 ) $ 7,891,000 $ 15,931,000 $ 18,000 $ 12,931,000 $ 47,963,000 Timing of Revenue Recognition Goods transferred at a point in time $ 5,391,000 $ 1,162,000 $ - $ 7,891,000 $ 15,931,000 $ 18,000 $ 441,000 $ 30,834,000 Services transferred over time 4,884,000 4,000 - - - - 12,490,000 17,378,000 Revenue from contracts with customers $ 10,275,000 $ 1,166,000 $ - $ 7,891,000 $ 15,931,000 $ 18,000 $ 12,931,000 $ 48,212,000 The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2023 (excludes Ault Disruptive, as that segment has no revenue): GIGA TurnOn Green Fintech Sentinum SMC ROI Energy Total Primary Geographical Markets North America $ 8,901,000 $ 2,401,000 $ - $ 24,389,000 $ 21,939,000 $ 63,000 $ 38,604,000 $ 96,297,000 Europe 7,232,000 77,000 - - - - 109,000 7,418,000 Middle East and other 11,590,000 288,000 - - - - - 11,878,000 Revenue from contracts with customers 27,723,000 2,766,000 - 24,389,000 21,939,000 63,000 38,713,000 115,593,000 Revenue, lending and trading activities (North America) - - 4,337,000 - - - - 4,337,000 Total revenue $ 27,723,000 $ 2,766,000 $ 4,337,000 $ 24,389,000 $ 21,939,000 $ 63,000 $ 38,713,000 $ 119,930,000 Major Goods or Services Radio frequency/microwave filters $ 5,420,000 $ - $ - $ - $ - $ - $ - $ 5,420,000 Power supply units & systems 6,994,000 2,544,000 - - - - - 9,538,000 Healthcare diagnostic systems 3,481,000 - - - - - - 3,481,000 Defense systems 10,719,000 - - - - - - 10,719,000 Digital currency mining - - - 23,273,000 - - - 23,273,000 Karaoke machines and related consumer goods - - - - 21,939,000 - - 21,939,000 Crane rental - - - - - - 37,726,000 37,726,000 Other 1,109,000 222,000 - 1,116,000 - 63,000 987,000 3,497,000 Revenue from contracts with customers 27,723,000 2,766,000 - 24,389,000 21,939,000 63,000 38,713,000 115,593,000 Revenue, lending and trading activities - - 4,337,000 - - - - 4,337,000 Total revenue $ 27,723,000 $ 2,766,000 $ 4,337,000 $ 24,389,000 $ 21,939,000 $ 63,000 $ 38,713,000 $ 119,930,000 Timing of Revenue Recognition Goods transferred at a point in time $ 15,517,000 $ 2,755,000 $ - $ 24,389,000 $ 21,939,000 $ 63,000 $ 987,000 $ 65,650,000 Services transferred over time 12,206,000 11,000 - - - - 37,726,000 49,943,000 Revenue from contracts with customers $ 27,723,000 $ 2,766,000 $ - $ 24,389,000 $ 21,939,000 $ 63,000 $ 38,713,000 $ 115,593,000 The Company’s disaggregated revenues consisted of the following for the three months ended September 30, 2022 (excludes Ault Disruptive, as that segment has no revenue): GIGA TurnOn Green Fintech SMC Sentinum Total Primary Geographical Markets North America $ 2,472,000 $ 1,428,000 $ - $ 16,138,000 $ 4,146,000 $ 24,184,000 Europe 2,288,000 32,000 201,000 306,000 - 2,827,000 Middle East and other 3,022,000 202,000 - 670,000 - 3,894,000 Revenue from contracts with customers 7,782,000 1,662,000 201,000 17,114,000 4,146,000 30,905,000 Revenue, lending and trading activities (North America) - - 13,360,000 - - 13,360,000 Total revenue $ 7,782,000 $ 1,662,000 $ 13,561,000 $ 17,114,000 $ 4,146,000 $ 44,265,000 Major Goods or Services Power supply units $ 2,799,000 $ 1,480,000 $ - $ - $ - $ 4,279,000 Digital currency mining, net - - - - 3,874,000 3,874,000 Karaoke machines and related - - - 17,114,000 - 17,114,000 Other 4,983,000 182,000 201,000 - 272,000 5,638,000 Revenue from contracts with customers 7,782,000 1,662,000 201,000 17,114,000 4,146,000 30,905,000 Revenue, lending and trading activities - - 13,360,000 - - 13,360,000 Total revenue $ 7,782,000 $ 1,662,000 $ 13,561,000 $ 17,114,000 $ 4,146,000 $ 44,265,000 Timing of Revenue Recognition Goods transferred at a point in time $ 5,821,000 $ 1,662,000 $ 201,000 $ 17,114,000 $ 4,146,000 $ 28,944,000 Services transferred over time 1,961,000 - - - - 1,961,000 Revenue from contracts with customers $ 7,782,000 $ 1,662,000 $ 201,000 $ 17,114,000 $ 4,146,000 $ 30,905,000 The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2022: GIGA TurnOn Green Fintech SMC Sentinum Total Primary Geographical Markets North America $ 5,094,000 $ 3,262,000 $ 19,000 $ 16,138,000 $ 12,220,000 $ 36,733,000 Europe 7,007,000 79,000 201,000 306,000 - 7,593,000 Middle East and other 9,429,000 512,000 - 670,000 - 10,611,000 Revenue from contracts with customers 21,530,000 3,853,000 220,000 17,114,000 12,220,000 54,937,000 Revenue, lending and trading activities (North America) - - 32,224,000 - - 32,224,000 Total revenue $ 21,530,000 $ 3,853,000 $ 32,444,000 $ 17,114,000 $ 12,220,000 $ 87,161,000 Major Goods or Services Power supply units $ 6,928,000 $ 3,592,000 $ - $ - $ - $ 10,520,000 Healthcare diagnostic systems 2,285,000 - - - - 2,285,000 Defense systems 6,842,000 - - - - 6,842,000 Digital currency mining - - - - 11,398,000 11,398,000 Karaoke machines and related - - - 17,114,000 - 17,114,000 Other 5,475,000 261,000 220,000 - 822,000 6,778,000 Revenue from contracts with customers 21,530,000 3,853,000 220,000 17,114,000 12,220,000 54,937,000 Revenue, lending and trading activities - - 32,224,000 - - 32,224,000 Total revenue $ 21,530,000 $ 3,853,000 $ 32,444,000 $ 17,114,000 $ 12,220,000 $ 87,161,000 Timing of Revenue Recognition Goods transferred at a point in time $ 12,934,000 $ 3,853,000 $ 220,000 $ 17,114,000 $ 12,220,000 $ 46,341,000 Services transferred over time 8,596,000 - - - - 8,596,000 Revenue from contracts with customers $ 21,530,000 $ 3,853,000 $ 220,000 $ 17,114,000 $ 12,220,000 $ 54,937,000 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy: Fair value, assets measured on recurring basis Fair Value Measurement at September 30, 2023 Total Level 1 Level 2 Level 3 Assets: Investment in common stock of Alzamend Neuro, Inc. (“Alzamend”) – a related party $ 2,712,000 $ 2,712,000 $ - $ - Investments in marketable equity securities 72,000 72,000 - - Cash and marketable securities held in trust account 2,171,000 2,171,000 - - Total assets measured at fair value $ 4,955,000 $ 4,955,000 $ - $ - Liabilities: Warrant and embedded conversion feature liabilities $ 832,000 $ - $ - $ 832,000 Convertible promissory notes 18,054,000 - - 18,054,000 Total liabilities measured at fair value $ 18,886,000 $ - $ - $ 18,886,000 Fair Value Measurement at December 31, 2022 Total Level 1 Level 2 Level 3 Assets: Investment in common stock of Alzamend – a related party $ 6,449,000 $ 6,449,000 $ - $ - Investments in marketable equity securities 6,590,000 6,590,000 - - Cash and marketable securities held in trust account 118,193,000 118,193,000 - - Investments in other equity securities 13,340,000 - - 13,340,000 Total assets measured at fair value $ 144,572,000 $ 131,232,000 $ - $ 13,340,000 Liabilities: Warrant and embedded conversion feature liabilities $ 2,967,000 $ - $ - $ 2,967,000 Convertible promissory notes 12,776,000 - - 12,776,000 Total liabilities measured at fair value $ 15,743,000 $ - $ - $ 15,743,000 The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks. The following table summarizes the changes in investments in other equity securities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the nine months ended September 30, 2023 (no changes during the three months ended September 30, 2023): Schedule of investments Investments in Balance at January 1, 2023 $ 13,340,000 Conversion to Level 1 marketable securities (13,340,000 ) Balance at September 30, 2023 $ - Equity Investments for Which Measurement Alternative Has Been Selected As of September 30, 2023 and December 31, 2022, the Company held equity investments in other securities, which consisted of investments in preferred stock, valued at $ 26.0 29.2 Measurement Alternative Impairment The Company has made cumulative downward adjustments for impairments for equity securities that do not have readily determinable fair values as of September 30, 2023, totaling $ 11.6 9.6 2.0 |
Marketable EQUITY Securities
Marketable EQUITY Securities | 9 Months Ended |
Sep. 30, 2023 | |
Marketable Equity Securities | |
Marketable EQUITY Securities | 7. Marketable EQUITY Securities Marketable equity securities with readily determinable market prices consisted of the following as of September 30, 2023 and December 31, 2022: Schedule of marketable securities Marketable equity securities at September 30, 2023 Gross unrealized Gross unrealized Cost gains losses Fair value Common shares $ 5,133,000 $ 26,000 $ (5,087,000 ) $ 72,000 Marketable equity securities at December 31, 2022 Gross unrealized Gross unrealized Cost gains losses Fair value Common shares $ 10,271,000 $ 383,000 $ (4,064,000 ) $ 6,590,000 The Company’s investment in marketable equity securities is revalued on each balance sheet date. |
DIGITAL CURRENCIES
DIGITAL CURRENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Digital Currencies | |
DIGITAL CURRENCIES | 8. DIGITAL CURRENCIES The following table presents the activities of the digital currencies (included in prepaid expenses and other current assets) for the nine months ended September 30, 2023 and 2022: Schedule of activities of the digital currencies Digital Balance at January 1, 2023 $ 554,000 Additions of mined digital currencies 21,103,000 Payments to vendors (20,000 ) Impairment of mined cryptocurrency (376,000 ) Sale of digital currencies (21,330,000 ) Realized gain on sale of digital currencies 404,000 Balance at September 30, 2023 $ 335,000 Digital Balance at January 1, 2022 $ 2,165,000 Additions of mined digital currencies 11,398,000 Payments to vendors (418,000 ) Impairment of mined cryptocurrency (2,930,000 ) Sale of digital currencies (8,952,000 ) Realized gain on sale of digital currencies 829,000 Balance at September 30, 2022 $ 2,092,000 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 9. PROPERTY AND EQUIPMENT, NET At September 30, 2023 and December 31, 2022, property and equipment consisted of: Schedule of property and equipment September 30, 2023 December 31, 2022 Building and improvements $ 11,796,000 $ 10,428,000 Bitcoin mining equipment 50,640,000 42,438,000 Crane rental equipment 34,341,000 32,453,000 Land 2,692,000 2,567,000 Computer, software and related equipment 23,517,000 23,168,000 Aircraft 15,983,000 15,983,000 Vehicles 4,797,000 3,314,000 Office furniture and equipment 682,000 610,000 Oil and natural gas properties, unproved properties 3,878,000 972,000 148,326,000 131,933,000 Accumulated depreciation and amortization (25,726,000 ) (5,882,000 ) Property and equipment placed in service, net 122,600,000 126,051,000 Construction in progress AVLP equipment 9,444,000 9,400,000 Deposits on cryptocurrency machines - 11,328,000 Property and equipment, net $ 132,044,000 $ 146,779,000 Summary of depreciation expense: Schedule of depreciation For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Depreciation expense $ 7,805,000 $ 2,779,000 $ 20,047,000 $ 7,742,000 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 10. INTANGIBLE ASSETS, NET At September 30, 2023 and December 31, 2022, intangible assets consisted of: Schedule of intangible asset Useful Life September 30, 2023 December 31, Definite-lived intangible assets: Developed technology 3 8 $ 7,984,000 $ 24,584,000 Customer list 8 10 5,755,000 5,865,000 Trade names 5 10 3,916,000 4,316,000 Domain name and other intangible assets 5 580,000 630,000 18,235,000 35,395,000 Accumulated amortization (2,753,000 ) (2,102,000 ) Total definite-lived intangible assets $ 15,482,000 $ 33,786,000 Indefinite-lived intangible assets: Trade name and trademark Indefinite life 1,498,000 1,493,000 Total intangible assets, net $ 16,980,000 $ 34,786,000 Certain of the Company’s trade names and trademarks were determined to have an indefinite life. The remaining definite-lived intangible assets are primarily being amortized on a straight-line basis over their estimated useful lives. Schedule of indefinite-lived intangible assets For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Amortization expense $ 254,000 $ 223,000 $ 761,000 $ 381,000 As of September 30, 2023, intangible assets subject to amortization have an average remaining useful life of 9.5 Schedule of estimated amortization expense 2023 $ 507,000 2024 2,026,000 2025 1,926,000 2026 1,826,000 2027 1,826,000 Thereafter 7,371,000 $ 15,482,000 Impairment of AVLP Intangible Assets Due to indicators of impairment, AVLP intangible assets were tested for impairment as of June 30, 2023. Based on internally developed forecasts of undiscounted expected future cash flows, it was determined that the carrying amount of the assets were not recoverable and, based on an assessment of the fair value of the assets, impairment of $17.0 million was recognized as a non-cash impairment charge during the nine months ended September 30, 2023. The tradenames and patents/developed technology intangible assets were valued using the relief-from-royalty method. The relief-from-royalty method is one of the methods under the income approach whereby estimates of a company’s earnings attributable to the intangible asset are based on the royalty rate the company would have paid for the use of the asset if it did not own it. Royalty payments are estimated by applying royalty rates of 18% for patents and developed technology and 0.25% for trademarks. The resulting net annual royalty payments are then discounted to present value using a discount factor of 25.7%. |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2023 | |
Disclosure Goodwill Abstract | |
GOODWILL | 11. GOODWILL The following table summarizes the changes in the Company’s goodwill for the nine months ended September 30, 2023: Schedule of goodwill Goodwill Balance as of January 1, 2023 $ 27,902,000 Acquisition of ROI 17,000 Impairment of goodwill (18,570,000 ) Effect of exchange rate changes (376,000 ) Balance as of September 30, 2023 $ 8,973,000 Impairment of AVLP Goodwill The Company tests the recorded amount of goodwill for impairment on an annual basis on December 31 or more frequently if there are indicators that the carrying amount of the goodwill exceeds its carried value. The Company performed a goodwill impairment test as of June 30, 2023 related to AVLP as there were indicators of impairment related to certain unforeseen business developments and changes in financial projections. The valuation of the AVLP reporting unit was determined using a market and income approach methodology of valuation. The income approach was based on the projected cash flows discounted to their present value using discount rates that, in the Company’s judgment, consider the timing and risk of the forecasted cash flows using internally developed forecasts and assumptions. Under the income approach, the discount rate used is the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. The analysis included assumptions regarding AVLP’s revenue forecast and discount rates of 26.7% The results of the quantitative test indicated that the fair value of the AVLP reporting unit did not exceed its carrying amounts, including goodwill, in excess of the carrying value of the goodwill. As a result, the entire $ 18.6 |
CONSOLIDATED VARIABLE INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITY - SMC | 9 Months Ended |
Sep. 30, 2023 | |
Consolidated Variable Interest Entity - Smc | |
CONSOLIDATED VARIABLE INTEREST ENTITY - SMC | 12. CONSOLIDATED VARIABLE INTEREST ENTITY - SMC During the quarter ended September 30, 2023, the Company’s voting interest in SMC was less than 50%. As a result, the Company assessed its interest in SMC under the Variable Interest Entity Model. As a result of that assessment, the Company consolidates SMC as a variable interest entity (a “VIE”) due to the Company’s significant level of influence and control of SMC, the size of its investment, and its ability to participate in policy making decisions. As a result, the Company is considered the primary beneficiary of the VIE. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION | 13. BUSINESS COMBINATION ROI Acquisition On March 6, 2023, the Company closed a Share Exchange Agreement (the “Agreement”) with ROI and sold to ROI all of the outstanding shares of capital stock of the Company’s subsidiary, BitNile.com, Inc. (“BitNile.com”) as well as RiskOn360, Inc. (formerly Ault Iconic, Inc.) and the securities of Earnity, Inc. (“Earnity”) beneficially owned by BitNile.com as of the date of the Agreement (the “Transaction”). As consideration for the acquisition, ROI issued shares of preferred stock convertible into common stock of ROI representing approximately 73.2% of ROI’s outstanding common stock. Pending approval of the transaction by the Nasdaq Stock Market and ROI’s shareholders, the preferred stock combined are subject to a 19.99% beneficial ownership limitation. The Transaction benefits the Company as ROI is a publicly traded company and provides BitNile.com access to capital markets as the primary focus for ROI to fund the expected growth of the ROI metaverse platform. The holders of preferred stock will be entitled to receive dividends at a rate of 5% of the stated value of the preferred stock. The Company consolidates ROI as a VIE due to its significant level of influence and control of ROI, the size of its investment, and its ability to participate in policy making decisions. The Company is considered the primary beneficiary of the VIE. Schedule of variable interest entities Ault Alliance investment in ROI Amount Common stock $ 287,000 The total purchase price to acquire ROI has been allocated to the assets acquired and assumed liabilities based upon preliminary estimated fair values, with any excess purchase price allocated to goodwill. The goodwill resulting from this acquisition is not tax deductible. The fair value of the acquired assets and assumed liabilities as of the date of acquisition are based on preliminary estimates provided, in part, by a third-party valuation expert. The estimates are subject to change upon the finalization of appraisals and other valuation analyses, which are expected to be completed no later than one year from the date of acquisition. Although the completion of the valuation activities may result in asset and liability fair values that are different from the preliminary estimates included herein, it is not expected that those differences would alter the understanding of the impact of the Transaction on the consolidated financial position and results of operations of the Company. The preliminary purchase price allocation is as follows: Schedule of recognized identified assets acquired and liabilities assumed Preliminary Fair value of Company interest $ 287,000 Fair value of non-controlling interest 6,357,000 Total consideration $ 6,644,000 Identifiable net assets acquired: Cash $ 67,000 Investment in equity securities 8,076,000 Prepaid expenses and other current assets 172,000 Property and equipment, net 4,109,000 Right-of-use assets 339,000 Accounts payable and accrued expenses (5,790,000 ) Lease liabilities (346,000 ) Net assets acquired 6,627,000 Goodwill $ 17,000 |
INVESTMENTS _ RELATED PARTIES
INVESTMENTS – RELATED PARTIES | 9 Months Ended |
Sep. 30, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
INVESTMENTS – RELATED PARTIES | 14. INVESTMENTS – RELATED PARTIES Investments in Alzamend and Ault & Company, Inc. (“Ault & Company”) at September 30, 2023 and December 31, 2022, were comprised of the following: Investment in Promissory Notes, Related Parties – Ault & Company Schedule of investment Interest September 30, December 31, rate Due Date 2023 2022 Investment in promissory note of Ault & Company 8% December 31, 2023 $ 2,500,000 $ 2,500,000 Accrued interest receivable, Ault & Company 518,000 368,000 Total investment in promissory note, related party $ 3,018,000 $ 2,868,000 Summary of interest income, related party, recorded within interest and other income on the condensed consolidated statement of operations: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Interest income, related party $ 50,000 $ 50,000 $ 150,000 $ 150,000 Investment in Common Stock, Related Parties – Alzamend Schedule of investment in common stock Investments in common stock, related parties at September 30, 2023 Cost Gross unrealized losses Fair value Common shares $ 24,688,000 $ (21,976,000 ) $ 2,712,000 Investments in common stock, related parties at December 31, 2022 Cost Gross unrealized losses Fair value Common shares $ 24,673,000 $ (18,224,000 ) $ 6,449,000 The following table summarizes the changes in the Company’s investments in Alzamend common stock during the three months ended September 30, 2023 and 2022: Schedule of investment in warrants and common stock For the Three Months Ended September 30, 2023 2022 Balance at July 1 $ 5,836,000 $ 8,845,000 Investment in common stock of Alzamend - 177,000 Unrealized gain (loss) in common stock of Alzamend (3,124,000 ) 3,372,000 Balance at September 30 $ 2,712,000 $ 12,394,000 The following table summarizes the changes in the Company’s investments in Alzamend common stock during the nine months ended September 30, 2023 and 2022: For the Nine Months Ended September 30, 2023 2022 Balance at January 1 $ 6,449,000 $ 13,230,000 Investment in common stock of Alzamend 15,000 4,840,000 Unrealized loss in common stock of Alzamend (3,752,000 ) (5,676,000 ) Balance at September 30 $ 2,712,000 $ 12,394,000 Unrealized loss in common stock of Alzamend is recorded within revenue from lending and trading activities on the condensed consolidated statements of operations. |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 15. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Other current liabilities at September 30, 2023 and December 31, 2022 consisted of: Schedule of other current liabilities September 30, December 31, 2023 2022 Accounts payable $ 36,883,000 $ 20,027,000 Accrued payroll and payroll taxes 12,420,000 9,789,000 Financial instrument liabilities 863,000 651,000 Interest payable 3,946,000 3,207,000 Accrued legal 4,390,000 3,168,000 Accrued lender profit participation rights 2,497,000 6,000,000 Related party advances 68,000 352,000 Other accrued expenses 27,146,000 17,586,000 $ 88,213,000 $ 60,780,000 |
DIVIDEND PAYABLE IN TURNONGREEN
DIVIDEND PAYABLE IN TURNONGREEN COMMON STOCK | 9 Months Ended |
Sep. 30, 2023 | |
Dividend Payable In Turnongreen Common Stock | |
DIVIDEND PAYABLE IN TURNONGREEN COMMON STOCK | 16. DIVIDEND PAYABLE IN TURNONGREEN COMMON STOCK During the nine months ended September 30, 2023, the Company, in connection with a planned distribution of its holdings of TurnOnGreen, distributed to its stockholders 115.1 115.1 10.7 |
PREFERRED STOCK LIABILITY
PREFERRED STOCK LIABILITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
PREFERRED STOCK LIABILITY | 17. PREFERRED STOCK LIABILITY March 28, 2023 Security Purchase Agreement On March 28, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Investors”), pursuant to which the Company sold, in a private placement (the “Offering”), an aggregate of 100,000 100.00 83,000 1,000 16,000 The purchase price of the Series E Preferred Stock and the Series F Preferred Stock was paid for by the Investors’ canceling outstanding secured promissory notes in the principal amount of $8.4 million, whereas the purchase price of the shares of Series G Preferred Stock consisted primarily of accrued but unpaid interest on these notes. The Company recorded a loss on extinguishment of debt of $ 0.1 During the nine months ended September 30, 2023, the Investors converted 1,000 6,756 143,402 0.3 Exchange of Preferred Shares for Secured Debt and Assignment of Secured Note In August 2023, the Company and the Investors entered into an Exchange Agreement (the “Exchange Agreement”) pursuant to which the Investors exchanged 83,000 shares of Series E Convertible Stock and 9,244 shares of Series G Convertible Stock as well as their demand notes (the “Demand Notes”) with each Demand Note having a principal outstanding amount of approximately $0.8 million for two new 10% Secured OID Promissory Notes (the “Exchange Notes”), each with a principal face amount of $5.3 million, for an aggregate of amount owed of $10.5 million (the “Principal Amount”). The Company recorded a loss on extinguishment of debt of $1.5 million related to the transaction based on the difference between the carrying amount of the preferred stock liability and the value of the Exchange Notes. Concurrent with the Exchange Agreement, the Company assigned the Exchange Notes to Ault & Company. As consideration for Ault & Company assuming the Exchange Notes from the Company, the Company issued a 10% demand promissory note in the principal face amount of $10.5 million to Ault & Company. The Company and Milton “Todd” Ault, III, the Company’s Executive Chairman, entered into guaranty agreements with the Investors guaranteeing Ault & Company’s repayment of the Exchange Notes. Certificates of Elimination of Series E Preferred Stock, Series F Preferred Stock, and the Series G Preferred Stock On |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY | 9 Months Ended |
Sep. 30, 2023 | |
Redeemable Noncontrolling Interests In Equity Of Subsidiary Liability | |
REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY | 18. REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY The Company records redeemable noncontrolling interests in equity of subsidiaries to reflect the economic interests of the common stockholders in Ault Disruptive. As of September 30, 2023, the carrying amount of the redeemable noncontrolling interest in equity of subsidiaries was recorded at its redemption value of $ 2.2 11.3 10.61 120.0 The following table summarizes the changes in the Company’s redeemable noncontrolling interests in equity of subsidiaries during the nine months ended September 30, 2023: Redeemable noncontrolling interests in equity of subsidiaries as of December 31, 2022 $ 117,993,000 Redemption of ADRT common stock (120,064,000 ) Remeasurement of carrying value to redemption value 4,250,000 Redeemable noncontrolling interests in equity of subsidiaries as of September 30, 2023 $ 2,179,000 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | 19. NOTES PAYABLE Notes payable at September 30, 2023 and December 31, 2022, were comprised of the following: Schedule of notes payable Collateral Guarantors Interest Due date September December Circle 8 revolving credit facility Circle 8 cranes - 8.4% December 16, 2025 $ 16,960,000 $ 14,724,000 8.5% secured promissory notes Deposit accounts, 19,389 Antminers, BNI Montana assets, Circle 8 membership interests, Florida property, Michigan property, aircraft Ault & Company, Ault Lending, Sentinum, Alliance Cloud Services, Inc., Ault Aviation, LLC, Third Avenue Apartments LLC, BNI Montana, LLC, Milton C. Ault, III 8.5% May 7, 2024 22,749,000 17,389,000 16% promissory notes - Ault & Company, Sentinum, Ault Lending, Milton C. Ault, III 16.0% December 16, 2023 2,662,000 17,456,000 Circle 8 equipment financing notes Circle 8 equipment - 7.2% Various dates from March 15, 2024 November 15, 2026 7,375,000 10,677,000 3% secured promissory notes - - 3.0% N/A - 5,672,000 8% demand loans - - 8.0% Upon demand 1,800,000 - Short-term bank credit facilities - - 5.7% Renews monthly 2,056,000 1,702,000 XBTO note payable 2,482 Antminers - 12.5% December 30, 2023 1,087,000 2,749,000 10% secured promissory notes - - 10.0% N/A - 8,789,000 SMC line of credit SMC assets - 8.0% October 14, 2025 - 1,761,000 Other ($0.4 million in default) - - 400,000 858,000 Total notes payable - - $ 55,089,000 $ 81,777,000 Less: - - Unamortized debt discounts - - (3,623,000 ) (12,325,000 ) Total notes payable, net - - $ 51,466,000 $ 69,452,000 Less: current portion - - (30,255,000 ) (39,621,000 ) Notes payable – long-term portion - - $ 21,211,000 $ 29,831,000 Notes Payable Maturities The contractual maturities of the Company’s notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of September 30, 2023 were: Schedule of maturities Year 2023 $ 12,546,000 2024 23,405,000 2025 18,697,000 2026 441,000 $ 55,089,000 Interest Expense Schedule of interest expense For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Contractual interest expense $ 3,262,000 $ 2,263,000 $ 5,002,000 $ 4,373,000 Forbearance fees 518,000 - 7,319,000 1,203,000 Amortization of debt discount 634,000 104,000 18,216,000 26,487,000 Total interest expense $ 4,414,000 $ 2,367,000 $ 30,537,000 $ 32,063,000 Amendment to 8.5% Secured Promissory Notes On July 19, 2023, the Company and certain of its subsidiaries entered into an amendment agreement with the institutional investors and increased the principal balance of the secured promissory notes by an additional $8.8 million. The net proceeds to the Company from the amendment agreement were $7.5 million. 10% Secured Promissory Notes The 10% secured promissory notes were retired in March 2023 and converted into the Preferred Shares, as described in Note 17 – Preferred Stock Liability. |
NOTES PAYABLE, RELATED PARTY
NOTES PAYABLE, RELATED PARTY | 9 Months Ended |
Sep. 30, 2023 | |
Notes Payable Related Party | |
NOTES PAYABLE, RELATED PARTY | 20. NOTES PAYABLE, RELATED PARTY Notes payable, related party at September 30, 2023 and December 31, 2022, were comprised of the following: Schedule of notes payable related party Interest rate Due date September 30, December 31, Loan agreement 9.5 % Upon demand $ 4,580,000 $ - 12% demand promissory note 12.0 % Upon demand 1,100,000 - 10% demand promissory note 10.0 % Upon demand 10,545,000 - Total notes payable, related party $ 16,225,000 $ - Ault & Company Loan Agreement On June 8, 2023, the Company entered into a loan agreement with Ault & Company as lender. The loan agreement provides for an unsecured, non-revolving credit facility in an aggregate principal amount of up to $ 10 9.5% 4.6 In August 2023, Ault & Company assumed $11.6 million of secured promissory notes previously issued by the Company for which the Company has issued term notes to Ault & Company in the same amount. One term note has a principal amount of $1.1 million and bears interest at 12% and the second term note has a principal amount of $10.5 million and bears interest at 10%. Summary of interest expense, related party, recorded within interest expense on the condensed consolidated statement of operations: Schedule of interest expense, related party For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Interest expense, related party $ 287,000 $ - $ 292,000 $ - |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 9 Months Ended |
Sep. 30, 2023 | |
Convertible Notes | |
CONVERTIBLE NOTES | 21. CONVERTIBLE NOTES Convertible notes payable at September 30, 2023 and December 31, 2022, were comprised of the following: Schedule of convertible notes payable Conversion price per Interest Due date September December Convertible promissory note $ 4.00 4% May 10, 2024 $ - $ 660,000 Convertible promissory note - OID only 90% of 5-day VWAP OID Only September 28, 2024 2,200,000 - AVLP convertible promissory notes $ 0.35 7% August 22, 2025 9,911,000 9,911,000 GIGA senior secured convertible notes - in default $ 0.25 18% October 11, 2023 2,317,000 - ROI senior secured convertible notes $ 3.28 OID Only April 27, 2024 6,875,000 - Fair value of embedded conversion options 528,000 2,316,000 Total convertible notes payable $ 21,831,000 $ 12,887,000 Less: unamortized debt discounts (3,777,000 ) (111,000 ) Total convertible notes payable, net of financing cost, long term $ 18,054,000 $ 12,776,000 Less: current portion (8,601,000 ) (1,325,000 ) Convertible notes payable, net of financing cost – long-term portion $ 9,453,000 $ 11,451,000 The contractual maturities of the Company’s convertible notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of September 30, 2023 were: Schedule of contractual maturities Year Principal 2023 $ 2,317,000 2024 9,075,000 2025 10,439,000 $ 21,831,000 Significant inputs associated with the embedded conversion options include: Schedule of weighted average assumptions September 30, 2023 December 31, 2022 At Inception Contractual term in years 0.6 2.0 2.7 1.0 Volatility 75% 140% 82 % 111 % Dividend yield 0% 0 % 0 % Risk-free interest rate 4.6% 5.3% 4.0 % 3.5 % Activity related to the embedded conversion option derivative liabilities for the nine months ended September 30, 2023 was as follows: Schedule of derivative liabilities Balance as of December 31, 2022 $ 2,316,000 Fair value of embedded conversion options issued 1,652,000 Change in fair value (3,440,000 ) Ending balance as of September 30, 2023 $ 528,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 22. COMMITMENTS AND CONTINGENCIES Contingencies Litigation Matters The Company is involved in litigation arising from other matters in the ordinary course of business. The Company is regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving labor and employment, commercial disputes, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil penalties, or other adverse consequences. Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. The Company records a liability when it believes that it is probable that a loss has been incurred and the amount can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the reasonably possible loss. The Company evaluates developments in its legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and makes adjustments as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. With respect to the Company’s other outstanding matters, based on the Company’s current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on the Company’s business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. As of September 30, 2023, the Company had accrued $ 4.4 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | 23. STOCKHOLDERS’ EQUITY 2023 Issuances 2022 Common ATM Offering On February 25, 2022, the Company entered into an At-The-Market issuance sales agreement with Ascendiant Capital Markets, LLC (“Ascendiant Capital”) to sell shares of common stock having an aggregate offering price of up to $ 200 4.2 2022 Preferred ATM Offering On June 14, 2022, the Company entered into an At-The-Market sales agreement with Ascendiant Capital under which it may sell, from time to time, shares of its Series D Preferred Stock for aggregate gross proceeds of up to $ 46.4 252,359 2.9 2023 ATM Offering – Common Stock On June 9, 2023, the Company entered into an At-The-Market issuance sales agreement with Ascendiant Capital to sell shares of common stock having an aggregate offering price of up to $ 10 21.2 Issuance of Common Stock Upon Conversion of Preferred Stock During the nine months ended September 30, 2023, the Investors converted 1,000 6,756 143,402 Issuance of Common Stock for Restricted Stock Awards During the nine months ended September 30, 2023, the Company issued 4,974 Proceeds from Subsidiaries’ Sale of Stock to Non-Controlling Interests During the nine months ended September 30, 2023, SMC and ROI sold an aggregate of $ 2.3 at-the-market issuance sales agreements. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 24. INCOME TAXES The Company calculates its interim income tax provision in accordance with ASC Topic 270, Interim Reporting, and ASC Topic 740, Income Taxes. The Company’s effective tax rate (“ETR”) from continuing operations was (2.0%) 1.8% 0.4% 0.6% 0.6 0.1 0.5 0.4 21% |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | 25. NET LOSS PER SHARE Net loss per share is computed by dividing the net loss to common stockholders by the weighted average number of common shares outstanding. The calculation of the basic and diluted earnings per share is the same for all periods presented as the effect of the potential common stock equivalents is anti-dilutive due to the Company’s net loss position for all periods presented. Anti-dilutive securities, which are convertible into or exercisable for the Company’s common stock, consisted of the following at September 30, 2023 and 2022: Schedule of anti-dilutive securities September 30, 2023 2022 Stock options 19,000 21,000 Restricted stock grants - 7,000 Warrants 52,000 62,000 Convertible notes - 1,000 Total 71,000 91,000 |
SEGMENT AND CUSTOMERS INFORMATI
SEGMENT AND CUSTOMERS INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT AND CUSTOMERS INFORMATION | 26. SEGMENT AND CUSTOMERS INFORMATION The Company had the following reportable segments as of September 30, 2023 and six as of September 30, 2022; see Note 1 for a brief description of the Company’s business. The following data presents the revenues, expenditures and other operating data of the Company and its operating segments for the three and nine months ended September 30, 2023: Schedule of operating segments Nine Months Ended September 30, 2023 GIGA TurnOn Green Fintech Sentinum Ault SMC Energy ROI Holding Co. Total Revenue $ 27,723,000 $ 2,766,000 $ - $ 1,116,000 $ - $ 21,939,000 $ 987,000 $ 63,000 $ - $ 54,594,000 Revenue, cryptocurrency mining - - - 23,273,000 - - - - - 23,273,000 Revenue, lending and trading activities - - 4,337,000 - - - - - - 4,337,000 Revenue, crane operations - - - - - - 37,726,000 - - 37,726,000 Total revenues $ 27,723,000 $ 2,766,000 $ 4,337,000 $ 24,389,000 $ - $ 21,939,000 $ 38,713,000 $ 63,000 $ - $ 119,930,000 Depreciation and amortization expense $ 852,000 $ 68,000 $ - $ 14,362,000 $ - $ 779,000 $ 3,053,000 $ 152,000 $ 1,542,000 $ 20,808,000 Income (loss) from operations $ (5,620,000 ) $ (4,067,000 ) $ 1,091,000 $ (4,363,000 ) $ (1,052,000 ) $ (4,598,000 ) $ (30,216,000 ) $ (33,590,000 ) $ (20,012,000 ) $ (102,427,000 ) Capital expenditures $ 410,000 $ 131,000 $ - $ 1,426,000 $ - $ 383,000 $ 12,471,000 $ 407,000 $ 2,906,000 $ 18,134,000 Segment identifiable assets $ 36,917,000 $ 5,461,000 $ 24,727,000 $ 63,327,000 $ 2,465,000 $ 36,653,000 $ 73,447,000 $ 10,939,000 $ 25,924,000 279,860,000 Assets of discontinued operations 98,596,000 Total identifiable assets $ 378,456,000 Three Months Ended September 30, 2023 GIGA TurnOn Green Fintech Sentinum Ault SMC Energy ROI Holding Co. Total Revenue $ 10,275,000 $ 1,166,000 $ - $ 333,000 $ - $ 15,931,000 $ 441,000 $ 18,000 $ - $ 28,164,000 Revenue, cryptocurrency mining - - - 7,558,000 - - - - - 7,558,000 Revenue, lending and trading activities - - (249,000 ) - - - - - - (249,000 ) Revenue, crane operations - - - - - - 12,490,000 - - 12,490,000 Total revenues $ 10,275,000 $ 1,166,000 $ (249,000 ) $ 7,891,000 $ - $ 15,931,000 $ 12,931,000 $ 18,000 $ - $ 47,963,000 Depreciation and amortization expense $ 286,000 $ 24,000 $ - $ 5,792,000 $ - $ 338,000 $ 1,073,000 $ 32,000 $ 514,000 $ 8,059,000 Income (loss) from operations $ (503,000 ) $ (1,498,000 ) $ (1,039,000 ) $ (2,661,000 ) $ (214,000 ) $ 181,000 $ 2,505,000 $ (13,315,000 ) $ (5,359,000 ) $ (21,903,000 ) Capital expenditures $ 275,000 $ 121,000 $ - $ 261,000 $ - $ 199,000 $ 11,135,000 $ - $ 314,000 $ 12,305,000 Identifiable assets $ 36,917,000 $ 5,461,000 $ 24,727,000 $ 63,327,000 $ 2,465,000 $ 36,653,000 $ 73,447,000 $ 10,939,000 $ 25,924,000 279,860,000 Assets of discontinued operations 98,596,000 Total identifiable assets $ 378,456,000 Segment information for the three and nine months ended September 30, 2022: Nine Months Ended September 30, 2022 GIGA TurnOn Fintech Sentinum Ault SMC Holding Total Revenue $ 21,530,000 $ 3,853,000 $ 220,000 $ 822,000 $ - $ 17,114,000 $ - $ 43,539,000 Revenue, cryptocurrency mining - - - 11,398,000 - - - 11,398,000 Revenue, lending and trading activities - - 32,224,000 - - - - 32,224,000 Total revenues $ 21,530,000 $ 3,853,000 $ 32,444,000 $ 12,220,000 $ - $ 17,114,000 $ - $ 87,161,000 Depreciation and amortization expense $ 1,259,000 $ 403,000 $ 240,000 $ 6,949,000 $ - $ 166,000 $ 474,000 $ 9,491,000 Income (loss) from operations $ (1,881,000 ) $ (2,577,000 ) $ 4,212,000 $ (8,139,000 ) $ (1,100,000 ) $ 597,000 $ (19,262,000 ) $ (28,150,000 ) Capital expenditures $ 612,000 $ 176,000 $ 1,739,000 $ 77,299,000 $ - $ 66,000 $ 166,000 $ 80,058,000 Three Months Ended September 30, 2022 GIGA TurnOn Fintech Sentinum Ault SMC Holding Total Revenue $ 7,781,000 $ 1,662,000 $ 201,000 $ 273,000 $ - $ 17,114,000 $ - $ 27,031,000 Revenue, cryptocurrency mining - - - 3,874,000 - - - 3,874,000 Revenue, lending and trading activities - - 13,360,000 - - - - 13,360,000 Total revenues $ 7,781,000 $ 1,662,000 $ 13,561,000 $ 4,147,000 $ - $ 17,114,000 $ - $ 44,265,000 Depreciation and amortization expense $ 740,000 $ 393,000 $ 172,000 $ 2,809,000 $ - $ 166,000 $ (264,000 ) $ 4,016,000 Income (loss) from operations $ (661,000 ) $ (957,000 ) $ 3,786,000 $ (4,322,000 ) $ (314,000 ) $ 597,000 $ (5,138,000 ) $ (7,009,000 ) Capital expenditures $ 327,000 $ 51,000 $ 890,000 $ 5,915,000 $ - $ 66,000 $ 47,000 $ 7,296,000 |
CONCENTRATIONS OF CREDIT AND RE
CONCENTRATIONS OF CREDIT AND REVENUE RISK | 9 Months Ended |
Sep. 30, 2023 | |
Concentrations Of Credit And Revenue Risk | |
CONCENTRATIONS OF CREDIT AND REVENUE RISK | 27. CONCENTRATIONS OF CREDIT AND REVENUE RISK The following table summarizes accounts receivable that are concentrated with certain large customers as of September 30, 2023 and December 31, 2022: Schedule of concentrations of credit risk September 30, 2023 December 31, 2022 Customer A * 13 % Customer B 18 % 14 % The following table provides the percentage of total revenues attributable to customers from which 10% For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Customer V (Mining Pool Operator) * * 10% * Customer W (Mining Pool Operator) 13% * * * Customer X 12% 17% * * Customer Y * 11% * * Customer Z * * * 10% * Less than 10% |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 28. SUBSEQUENT EVENTS 2023 Common ATM Offering During the period between October 1, 2023 through November 17, 2023, the Company sold an aggregate of 54.2 10.0 Note Conversions In October 2023, an investor converted $ 0.5 2.1 Senior Secured Convertible Note, Related Party On October 13, 2023 (the “Closing Date”), the Company entered into a note purchase agreement with Ault & Company, pursuant to which the Company sold to the Purchaser (i) a senior secured convertible promissory note in the principal face amount of $ 17,519,832 17,519,832 The purchase price was comprised of the following: (i) cancellation of $4.6 million of cash loaned by Ault & Company to the Company since June 8, 2023 pursuant to the loan agreement; (ii) cancellation of $11.6 million of term loans made by the Company to Ault & Company in exchange for Ault & Company assuming liability for the payment of $11.6 million of secured notes; and (iii) the retirement of $1.25 million stated value of 125,000 shares of the Company’s Series B Convertible Preferred Stock (representing all shares issued and outstanding of that series) being transferred from Ault & Company to the Company. The Note has a principal face amount of $ 17,519,832 October 12, 2028 10% The Note is convertible into shares of common stock at a conversion price equal to the greater of (i) $0.10 per share (the “Floor Price”), and (ii) the lesser of (A) $0.2952 or (B) 105% of the volume weighted average price of the common stock during the ten trading days immediately prior to the date of conversion (the “Conversion Price”). The Conversion Price is subject to adjustment in the event of an issuance of common stock at a price per share lower than the Conversion Price then in effect, as well as upon customary stock splits, stock dividends, combinations or similar events. The Floor Price shall not be adjusted for stock dividends, stock splits, stock combinations and other similar transactions. The Warrants grant Ault & Company the right to purchase 47,685,988 0.1837 In addition, the Company and various subsidiaries of the Company granted a senior security interest in substantially all of their assets as collateral for the repayment of the Note, which is subordinated to the security interest granted to the holders of the outstanding Series C Preferred Purchase Agreement, Related Party On November 6, 2023, the Company entered into a securities purchase agreement (the “SPA”) with Ault & Company, pursuant to which the Company agreed to sell to Ault & Company up to 50,000 shares of Series C convertible preferred stock and warrants to purchase up to 370 million shares of common stock for a total purchase price of up to $50 million, of which up to $17.5 million of the Note may be tendered for cancellation. The consummation of the transactions contemplated by the SPA, specifically the conversion of the Series C convertible preferred stock and the exercise of the warrants in an aggregate number in excess of 19.99% on the execution date of the Agreement, are subject to various customary closing conditions as well as regulatory and stockholder approval. Series D Preferred Purchase Agreement, Related Party On November 15, 2023, the Company purchased from ROI 603.44 shares of ROI’s newly designated Series D Convertible Preferred Stock for a total purchase price of $15.1 million. The purchase price was paid by the cancellation of $15.1 million of cash advances made by the Company to ROI between January 1, 2023 and November 9, 2023. The preferred shares each have a stated value of $25,000 per share and each preferred share is convertible into a number of shares of ROI’s common stock determined by dividing the stated value by $0.51, or an aggregate of 29.6 million shares of ROI common stock, subject to adjustment in the event of an issuance of ROI common stock at a price per share lower than the conversion price, as well as upon customary stock splits, stock dividends, combinations or similar events. The preferred shares holders are entitled to receive dividends at a rate of 10% per annum from issuance until November 14, 2033. In addition, for as long as at least 25% of the Preferred Shares remain outstanding, ROI must obtain from the Company consent with respect to certain corporate events, including reclassifications, fundamental transactions, stock redemptions or repurchases, increases in the number of directors, and declarations or payment of dividends, and further ROI is subject to certain negative covenants, including covenants against issuing additional shares of capital stock or derivative securities, incurring indebtedness, engaging in related party transactions, selling of properties having a value of over $50,000, altering the number of directors, and discontinuing the business of any subsidiary, subject to certain exceptions and limitations. Payment of Related Party Advances On October 5, 2023, William B. Horne, the Company’s Chief Executive Officer, loaned the Company $ 262,500 12,500 On October 10, 2023, ROI repaid $ 52,000 Eco Pack Acquisition On November 10, 2023, the Company’s wholly owned subsidiary, Eco Pack Technologies, Inc., completed the acquisition of an 80% ownership interest in Eco Pack Technologies Limited, a company incorporated in England and Wales. As of the closing date, the total consideration paid amounted to $0.8 million. Additionally, the Company is committed to providing approximately $2.5 million in further funding over the next two years. Deficiency Letter from the NYSE American On November 13, 2023, the Company received a deficiency letter (the “Letter”) from the NYSE American LLC (the “NYSE American” or the “Exchange”) indicating that the Company is not in compliance with the Exchange’s continued listing standard set forth in Section 1003(f)(v) of the NYSE American Company Guide (the “Company Guide”) because the shares of common stock of the Company (the “Common Stock”) for a substantial period of time have been selling at a low price per share, which the Exchange determined to be a 30-trading day average price of less than $0.20 per share. The Letter has no immediate effect on the listing or trading of the Company’s Common Stock and the Common Stock will continue to trade on the NYSE American under the symbol “AULT”. Additionally, the Letter does not result in the immediate delisting of the Common Stock from the NYSE American. Pursuant to Section 1003(f)(v) of the Company Guide, the NYSE American staff determined that the Company’s continued listing is predicated on it demonstrating sustained price improvement within a reasonable period of time or effecting a reverse stock split of its common stock, which the staff determined to be no later than May 13, 2024. The Company intends to regain compliance with the NYSE American’s continued listing standards by undertaking a measure or measures that are in the best interests of the Company and its stockholders. The Company intends to closely monitor the price of its common stock and consider available options if the Common Stock does not trade at a consistent level likely to result in the Company regaining compliance by May 13, 2024. The Company’s receipt of the Letter does not affect the Company’s business, operations or reporting requirements with the Securities and Exchange Commission. The Company is actively engaged in discussions with the Exchange and is developing plans to regain compliance with the NYSE American’s continued listing standards within the cure period. ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS In this quarterly report, the “Company,” “AAI,” “we,” “us” and “our” refer to Ault Alliance, Inc., a Delaware corporation. AAI is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through our wholly and majority owned subsidiaries and strategic investments, we own and operate a data center at which we mine Bitcoin and offer colocation and hosting services for the emerging artificial intelligence ecosystems and other industries, and provide mission-critical products that support a diverse range of industries, including metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations and textiles. In addition, we own and operate hotels and extend credit to select entrepreneurial businesses through a licensed lending subsidiary. Recent Events and Developments On January 23, 2023, we filed a Certificate of Elimination with the Secretary of State of the State of Delaware with respect to our Series C convertible redeemable preferred stock (“Series C Preferred Stock”) which, effective upon filing, eliminated the Series C Preferred Stock. On February 8, 2023, we entered into a Share Exchange Agreement (the “Agreement”) with ROI and the other signatories thereto. The Agreement provides that, subject to the terms and conditions set forth therein, ROI will acquire all of the outstanding shares of capital stock of our then subsidiary, BitNile.com, Inc. (“BitNile.com”), of which we owned approximately 86%, and the remaining 14% was owned by minority shareholders (the “Minority Shareholders”), as well as Ault Iconic, (formerly Ault Media Group) and the securities of Earnity beneficially owned by BitNile.com (which represented approximately 19.9% of the outstanding equity securities of Earnity as of the date of the Agreement), in exchange for the following: (i) 8,637.5 shares of newly designated Series B Convertible Preferred Stock of ROI to be issued to our company (the “Series B Preferred”), and (ii) 1,362.5 shares of newly designated Series C Convertible Preferred Stock of ROI to be issued to the to the Minority Shareholders (the “Series C Preferred,” and together with the Series B Preferred, the “Preferred Stock”). The Series B Preferred and the Series C Preferred each have a stated value of $10,000 per share (the “Stated Value”), for a combined stated value of the Preferred Stock to be issued by ROI of $100 million, and subject to adjustment, are convertible into an aggregate of 13.3 million shares of common stock of ROI (the “ROI Common Stock”). ROI received approval of the Series A Convertible Preferred Stock transaction by its’s shareholders and the Nasdaq Stock Market to exceed the 19.9% beneficial ownership limitation. Pursuant to the Certificates of Designations of the Rights, Preferences and Limitations of the Series B Preferred and the Series C Preferred (collectively, the “Preferred Stock Certificates”), each share of Preferred Stock will be convertible into a number of shares of ROI Common Stock determined by dividing the Stated Value by $7.50 (the “Conversion Price”), or 1,333 shares of ROI Common Stock. The Conversion Price will be subject to certain adjustments, including potential downward adjustment if ROI closes a qualified financing resulting in at least $25 million in gross proceeds at a price per share that is lower than the Conversion Price then in effect. The holders of Preferred Stock will be entitled to receive dividends at a rate of 5% of the Stated Value per annum from issuance until February 7, 2033 (the “Dividend Term”). During the first two years of the Dividend Term, dividends will be payable in additional shares of Preferred Stock rather than cash, and thereafter dividends will be payable in either additional shares of Preferred Stock or cash as each holder may elect. If ROI fails to make a dividend payment as required by the Preferred Stock Certificates, the dividend rate will be increased to 12% for as long as such default remains ongoing and uncured. Each share of Preferred Stock will also have an $11,000 liquidation preference in the event of a liquidation, change of control event, dissolution or winding up of ROI, and will rank senior to all other capital stock of ROI with respect thereto, except that the Series B Preferred and Series C Preferred shall rank pari passu. Each share of Series B Preferred was originally entitled to vote with the ROI Common Stock at a rate of 10 votes per share of Common Stock into which the Series B Preferred is convertible, but that provision was subsequently eliminated. Other than certain rights granted to the Company relating to amendments or waiver of various negative covenants, the terms, rights, preferences and limitations of the Preferred Stock Certificates are essentially identical. The Agreement closed on March 6, 2023. On March 28, 2023, we entered into a securities purchase agreement (the “Purchase Agreement”) with certain sophisticated investors (the “Investors”), pursuant to which we agreed to issue and sell, in a private placement, an aggregate of 100,000 shares of our preferred stock, with each such share having a stated value of $100.00 and consisting of (i) 83,000 shares of Series E Convertible Preferred Stock (the “Series E Preferred Stock”), (ii) 1,000 shares of Series F Convertible Preferred Stock (the “Series F Preferred Stock”) and (iii) 16,000 shares of Series G Convertible Preferred Stock (the “Series G Preferred Stock” and collectively, the “Preferred Shares”). Each share of Series E Preferred Stock and Series F Preferred Stock had a purchase price of $100.00, equal to each such share’s stated value. The purchase price of the Series E Preferred Stock and the Series F Preferred Stock was paid for by the Investors’ canceling outstanding secured promissory notes in the principal amount of $8.4 million, whereas the purchase price of the shares of Series G Preferred Stock consisted of accrued but unpaid interest on these notes, as well as for other good and valuable consideration. Each Preferred Share is convertible into shares of our common stock at a conversion price equal to 85% of the closing sale price of our common stock on the trading day prior to the date of conversion, subject to a floor price of $0.10. The Preferred Shares are convertible at the option of the holder at any time following our receipt of stockholder approval of the Reverse Split (as defined below). The private placement closed on March 30, 2023. On April 6, 2023, we issued a term note with a principal amount of $1.1 million, bearing an interest rate of 12% (the “Term Note”). The Term Note was issued at a discount, with net proceeds to us amounting to $1.0 million. The Term Note was scheduled to mature on June 5, 2023. We exercised the option to extend the maturity date by one month, by paying a $30,000 extension fee. Ault & Company guaranteed repayment of the Term Note. On May 1, 2023, we entered into a securities purchase agreement (the “Series C Agreement”) with Ault & Company, pursuant to which we agreed to sell to Ault & Company up to 40,000 shares of Series C convertible preferred stock and warrants to purchase up to 1.3 million shares of common stock for a total purchase price of up to $40 million. The consummation of the transactions contemplated by the Series C Agreement are subject to various customary closing conditions and the receipt of certain third party consents. In addition to customary closing conditions, the closing of the transaction is also conditioned upon the receipt by Ault & Company of financing in an amount sufficient to consummate the transaction, in whole or in part. The Series C Agreement contains customary termination provisions for Ault & Company under certain circumstances, and the Series C Agreement shall automatically terminate if the closing has not occurred prior to May 31, 2023, although such date may be extended by Ault & Company for a period of 90 days as set forth in the Series C Agreement. Our stockholders approved, at a special meeting of our stockholders called for such purpose, an amendment (the “Amendment”) to our certificate of incorporation to authorize a reverse split of our common stock (the “Reverse Split”). The Investors agreed in the Purchase Agreement to not transfer, offer, sell, contract to sell, hypothecate, pledge or otherwise dispose of the Preferred Shares until after the Reverse Split. Pursuant to the certificate of designation of the Series E Preferred Stock, the shares of Series E Preferred Stock have the right to vote on such Amendment on an as converted to common stock basis. In addition, pursuant to the certificate of designation of the Series F Preferred Stock, the shares of Series F Preferred Stock have the right to vote on such Amendment. Each Investor has separately agreed to vote the shares of the Series E Preferred Stock in favor of the Amendment and that the shares of the Series F Preferred Stock shall automatically be voted in a manner that “mirrors” the proportions on which the shares of our common stock and Series E Preferred Stock are voted on the Amendment. The Amendment requires the approval of the majority of the votes associated with our outstanding capital stock entitled to vote on the proposal. Because the Series F Preferred Stock will automatically and without further action of the purchaser be voted in a manner that “mirrors” the proportions on which the shares of common stock and Series E Preferred Stock are voted on the Reverse Split, abstentions by common stockholders will not have any effect on the votes cast by the holders of the Series F Preferred Stock. The Series G Preferred Stock does not carry any voting rights, except as required by law or expressly provided by its certificate of designation. On June 8, 2023, we entered into a loan agreement with Ault & Company as lender. The loan agreement provides for an unsecured, non-revolving credit facility in an aggregate principal amount of up to $10 million. All loans under the loan agreement are due within five business days after request by Ault & Company and Ault & Company is not obligated to make any further advances under the loan agreement after December 8, 2023. Advances under the loan agreement bear interest at the rate of 9.5% per annum and may be repaid at any time without penalty or premium. As of the date of this report, $4.7 million has been advanced under the loan agreement and not repaid. On June 9, 2023, we entered into an At-the-Market Issuance Sales Agreement with Ascendiant Capital Markets, LLC, as sales agent (“Ascendiant Capital”) to sell shares of our common stock having an aggregate offering price of up to $10,000,000 (the “Shares”) from time to time, through an “at the market offering” (the “2023 Common ATM Offering”). On July 12, 2023, we and Ascendiant Capital entered into an amendment to the At-The-Market issuance sales agreement to increase the size of the 2023 Common ATM Offering from $10.0 million to $20.0 million. Through August 14, 2023, we have sold an aggregate of 3.8 million shares of common stock pursuant to the 2023 Common ATM Offering for gross proceeds of $16.1 million. On June 26, 2023, we established a record date for our initial distribution of TurnOnGreen securities. Stockholders as of this date were entitled to 40 shares of TurnOnGreen common stock, along with warrants to purchase 40 shares of TurnOnGreen common stock (the “TurnOnGreen Securities”) for every share of our common stock they held on the record date. The initial distribution was finalized in July 2023. We distributed 58.7 million TurnOnGreen Securities in the first distribution. On July 24, 2023, we established a record date for our second partial distribution of TurnOnGreen Securities. Stockholders as of this date were entitled to 15 shares of TurnOnGreen Securities for every share of the Company’s common stock they held on the record date. The second distribution was finalized on August 7, 2023, whereby we relinquished control of voting interests of TurnOnGreen. We distributed 56.4 million TurnOnGreen Securities in the second distribution. On July 19, 2023 we along with certain of our subsidiaries entered into a First Amendment and Joinder to Loan and Guarantee Agreement (the “Amendment”) with the institutional investors pursuant to which the (i) Loan and Guarantee Agreement, dated November 7, 2022, entered into between us and the institutional investors (the “Loan Agreement”) and (ii) Security Agreement, dated November 7, 2022, entered into between the institutional investors and Sentinum (the “Security Agreement”) was amended. Pursuant to the Amendment, we borrowed an additional $8.8 million. The net proceeds of the additional loan amount were $7.5 million. Effective August 3, 2023, we and the Investors entered into an Exchange Agreement (the “Exchange Agreement”) pursuant to which the Investors exchanged all of their Preferred Shares as well as their demand notes (the “Demand Notes”) issued to the Investors by us on or about May 20, 2023, with each Demand Note having a principal outstanding amount of approximately $0.8 million for two new 10% Secured OID Promissory Notes (the “Exchange Notes”), each with a principal face amount of $5.3 million, for an aggregate of amount owed of $10.5 million (the “Principal Amount”). We and Milton “Todd” Ault, III, our Executive Chairman, entered into guaranty agreements with the Investors guaranteeing repayment by Ault & Company, Inc., a related party (“Ault & Company”) of the Exchange Notes. Effective as of August 3, 2023, we assigned the Exchange Notes to Ault & Company. As consideration for Ault & Company assuming the Exchange Notes from us, we issued a 10% demand promissory note in the principal face amount of $10.5 million (the “First A&C Demand Note”) to Ault & Company. Effective as of August 10, 2023, we assigned the Term Note to Ault & Company. As consideration for Ault & Company assuming the Term Note from us, we issued a 12% demand promissory note in the principal face amount of $1.1 million (the “Second Demand Note”) to Ault & Company. On October 13, 2023 (the “Closing Date”), we entered into a note purchase agreement with Ault & Company, pursuant to which we sold to the Purchaser (i) a senior secured convertible promissory note in the principal face amount of $17.5 million (the “Note”) and warrants (the “Warrants”) to purchase shares of our common stock for a total purchase price of up to $17.5 million (the “Transaction”). The purchase price was comprised of the following: (i) cancellation of $4.6 million of cash loaned by Ault & Company to us since June 8, 2023 pursuant to the loan agreement; (ii) cancellation of $11.6 million of term loans made by us to Ault & Company in exchange for Ault & Company assuming liability for the payment of $11.6 million of secured notes; and (iii) the retirement of $1.25 million stated value of 125,000 shares of our Series B Convertible Preferred Stock (representing all shares issued and outstanding of that series) being transferred from Ault & Company to us. The Note has a principal face amount of $17.5 million and has a maturity date of October 12, 2028 (the “Maturity Date”). The Note bears interest at the rate of 10% per annum. Interest is payable, at the Purchaser’s option, in cash or shares of Common Stock at the applicable Conversion Price (as defined below). Accrued interest is payable on the Maturity Date, provided, however, that Ault & Company has the option, on not less than 10 calendar days’ notice to us, to require payment of accrued but unpaid interest on a monthly basis in arrears. The Note is convertible into shares of common stock at a conversion price equal to the greater of (i) $0.10 per share (the “Floor Price”), and (ii) the lesser of (A) $0.2952 or (B) 105% of the volume weighted average price of the common stock during the ten trading days immediately prior to the date of conversion (the “Conversion Price”). The Conversion Price is subject to adjustment in the event of an issuance of common stock at a price per share lower than the Conversion Price then in effect, as well as upon customary stock splits, stock dividends, combinations or similar events. The Floor Price shall not be adjusted for stock dividends, stock splits, stock combinations and other similar transactions. The Warrants grant Ault & Company the right to purchase 47,685,988 shares of common stock. The Warrants have a five-year term, expiring on the fifth anniversary of the Closing Date, and become exercisable on the first business day after the six-month anniversary of the Closing Date. The exercise price of the Warrants is $0.1837, which is subject to adjustment in the event of customary stock splits, stock dividends, combinations or similar events. In addition, we and various of our subsidiaries granted a senior security interest in substantially all of our assets as collateral for the repayment of the Note, which is subordinated to the security interest granted to the holders of the outstanding On November 6, 2023, we entered into a securities purchase agreement (the “SPA”) with Ault & Company, pursuant to which we agreed to sell to Ault & Company up to 50,000 shares of Series C convertible preferred stock and warrants to purchase up to 370 million shares of common stock for a total purchase price of up to $50 million, of which up to $17.5 million of the Note may be tendered for cancellation. The consummation of the transactions contemplated by the SPA, specifically the conversion of the Series C convertible preferred stock and the exercise of the warrants in an aggregate number in excess of 19.99% on the execution date of the Agreement, are subject to various customary closing conditions as well as regulatory and stockholder approval. In addition to customary closing conditions, the closing of the financing is also conditioned upon the receipt by Ault & Company of financing to consummate the transaction. The SPA contains customary termination provisions for Ault & Company under certain circumstances, and the Agreement shall automatically terminate if the closing has not occurred prior to December 29, 2023, although such date may be extended by Ault & Company for a period of 90 days as set forth in the SPA. On November 15, 2023, we purchased from ROI 603.44 shares of ROI’s newly designated Series D Convertible Preferred Stock for a total purchase price of $15.1 million. The purchase price was paid by the cancellation of $15.1 million of cash advances made by us to ROI between January 1, 2023 and November 9, 2023. The preferred shares each have a stated value of $25,000 per share and each preferred share is convertible into a number of shares of ROI’s common stock determined by dividing the stated value by $0.51, or an aggregate of 29.6 million shares of ROI common stock, subject to adjustment in the event of an issuance of ROI common stock at a price per share lower than the conversion price, as well as upon customary stock splits, stock dividends, combinations or similar events. The preferred shares holders are entitled to receive dividends at a rate of 10% per annum from issuance until November 14, 2033. In addition, for as long as at least 25% of the Preferred Shares remain outstanding, ROI must obtain our consent with respect to certain corporate events, including reclassifications, fundamental transactions, stock redemptions or repurchases, increases in the number of directors, and declarations or payment of dividends, and further ROI is subject to certain negative covenants, including covenants against issuing additional shares of capital stock or derivative securities, incurring indebtedness, engaging in related party transactions, selling of properties having a value of over $50,000, altering the number of directors, and discontinuing the business of any subsidiary, subject to certain exceptions and limitations. Presentation of AGREE as Discontinued Operations In September 2023, we committed to a plan for our wholly owned subsidiary AGREE to list for sale its four recently renovated Midwest hotels, the Hilton Garden Inn in Madison West, the Residence Inn in Madison West, the Courtyard in Madison West, and the Hilton Garden Inn in Rockford. The decision to sell the hotels follows the decision to also list the multifamily development site in St. Petersburg, Florida and is driven by our desire to focus on our core businesses, Energy, Fintech and Sentinum. We plan to use the proceeds from the sales of the hotel properties to pay off debt and commit more capital to our core businesses. In connection with the planned sale of AGREE assets, we concluded that the net assets of AGREE met the criteria for classification as held for sale. In addition, the proposed sale represents a strategic shift that will have a major effect on our operations and financial results. As a result, we have presented the results of operations, cash flows and financial position of AGREE as discontinued operations in the accompanying consolidated financial statements and notes for all periods presented. General As a holding company, our business objective is designed to increase stockholder value. Under the strategy we have adopted, we are focused on managing and financially supporting our existing subsidiaries and partner companies, with the goal of pursuing monetization opportunities and maximizing the value returned to stockholders. We have, are and will consider initiatives including, among others: public offerings, the sale of individual partner companies, the sale of certain or all partner company interests in secondary market transactions, or a combination thereof, as well as other opportunities to maximize stockholder value. We anticipate returning value to stockholders after satisfying our debt obligations and working capital needs. From time to time, we engage in discussions with other companies interested in our subsidiaries or partner companies, either in response to inquiries or as part of a process we initiate. To the extent we believe that a subsidiary or partner company’s further growth and development can best be supported by a different ownership structure or if we otherwise believe it is in our stockholders’ best interests, we will seek to sell some or all of our position in the subsidiary or partner company. These sales may take the form of privately negotiated sales of stock or assets, mergers and acquisitions, public offerings of the subsidiary or partner company’s securities and, in the case of publicly traded partner companies, sales of their securities in the open market. Our plans may include taking subsidiaries or partner companies public through rights offerings and directed share subscription programs. We will continue to consider these (or similar) initiatives and the sale of certain subsidiary or partner company interests in secondary market transactions to maximize value for our stockholders. In recent years, we have provided capital and relevant expertise to fuel the growth of businesses in metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations and textiles. We have provided capital to subsidiaries as well as partner companies in which we have an equity interest or may be actively involved, influencing development through board representation and management support. We are a Delaware corporation with our corporate office located at 11411 Southern Highlands Pkwy, Suite 240, Las Vegas, NV 89141. Our phone number is 949-444-5464 and our website address is www.ault.com. Results of Operations Results of Operations for the Three Months Ended September 30, 2023 and 2022 The following table summarizes the results of our operations for the three months ended September 30, 2023 and 2022. For the Three Months Ended September 30, 2023 2022 Revenue $ 28,164,000 $ 27,031,000 Revenue, cryptocurrency mining 7,558,000 3,874,000 Revenue, crane operations 12,490,000 - Revenue, lending and trading activities (249,000 ) 13,360,000 Total revenue 47,963,000 44,265,000 Cost of revenue, products 20,425,000 20,193,000 Cost of revenue, cryptocurrency mining 10,228,000 5,255,000 Cost of revenue, crane operations 7,642,000 - Total cost of revenue 38,295,000 25,448,000 Gross profit 9,668,000 18,817,000 Total operating expenses 31,571,000 25,826,000 Loss from operations (21,903,000 ) (7,009,000 ) Other income (expense): Interest and other income 309,000 725,000 Interest expense (4,414,000 ) (2,367,000 ) Loss on extinguishment of debt (1,546,000 ) - Realized and unrealized gain on marketable securities 74,000 709,000 Loss on the sale of fixed assets (33,000 ) - Change in fair value of warrant liability (562,000 ) (3,000 ) Total other expense, net (6,172,000 ) (936,000 ) Loss before income taxes (28,075,000 ) (7,945,000 ) Income tax (benefit) provision (565,000 ) 144,000 Net loss from continuing operations (27,510,000 ) (8,089,000 ) Net income (loss) from discontinued operations (929 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Other than as noted below, there have been no material changes to the Company’s significant accounting policies previously disclosed in the 2022 Annual Report. Revenue Recognition – Bitcoin Mining The Company recognizes revenue from Bitcoin mining under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the company satisfies a performance obligation. The Company has entered into a digital asset mining pool by executing a contract with a mining pool operator to provide computing power to the mining pool. The Company’s customer, as defined in ASC 606-10-20, is the mining pool operator with which the Company has agreed to the terms of service and user service agreement. The Company supplies computing power, in exchange for consideration, to the pool operator who in turn provides transaction verification services to third parties via a mining pool that includes other participants. The Company’s enforceable right to compensation begins only when, and lasts as long as, the Company provides computing power to the mining pool operator and is created as power is provided over time. The only consideration due to the Company relates to the provision of computing power. The contracts are terminable at any time by and at no cost to the Company, and by the pool operator. Providing computing power in digital asset transaction verification services is an output of the Company’s ordinary activities. Providing such computing power is the only performance obligation in the Company’s contracts with mining pool operators. The transaction consideration the Company receives, if any, is non-cash consideration in the form of Bitcoin. Changes in the fair value of the non-cash consideration due to form of the consideration (changes in the market price of Bitcoin) are not included in the transaction price and are therefore not included in revenue. The mining pool operator charges fees to cover the costs of maintaining the pool and are deducted from amounts the Company may otherwise earn and are treated as a reduction to the consideration received. Fees fluctuate and historically have been approximately 0.3% per reward earned, on average. In exchange for providing computing power, the Company is entitled to a Full-Pay-Per-Share payout of Bitcoin based on a contractual formula, which primarily calculates the hash rate provided by the Company to the mining pool as a percentage of total network hash rate, and other inputs. The Company is entitled to consideration even if a block is not successfully placed by the mining pool operator. The contract is in effect until terminated by either party. All consideration pursuant to this arrangement is variable. It is not probable that a significant reversal of cumulative revenue will occur and the Company is able to calculate the payout based on the contractual formula, non-cash revenue is estimated and recognized based on the spot price of the Company’s principal market for Bitcoin at the inception of each contract, which is determined to be daily. Non-cash consideration is measured at fair value at contract inception. Fair value of the crypto asset consideration is determined using the spot price of the Company’s principal market for Bitcoin at the beginning of the contract period. This amount is estimated and recognized in revenue upon inception, which is when hash rate is provided. There is no significant financing component in these transactions. Expenses associated with running the cryptocurrency mining business, such as equipment depreciation and electricity costs, are recorded as a component of cost of revenues. |
Preferred Stock Liabilities | Preferred Stock Liabilities The Company follows ASC 480-10, “Distinguishing Liabilities from Equity” in its evaluation of the accounting for the Preferred Shares (as defined in Note 17). ASC 480-10-25-14 requires liability accounting for certain financial instruments, including shares that embody an unconditional obligation to transfer a variable number of shares, provided that the monetary value of the obligation is based solely or predominantly on one of the following three characteristics: · A fixed monetary amount known at inception; · Variations in something other than the fair value of the issuer’s shares; or · Variations in the fair value of the issuer’s equity shares, but the monetary value to the counterparty moves in the opposite direction as the value of the issuer’s shares. The number of shares delivered is determined on the basis of (1) the fixed monetary amount determined as the stated value and (2) the current stock price at settlement, so that the aggregate fair value of the shares delivered equals the monetary value of the obligation, which is fixed or predominantly fixed. Accordingly, the holder is not significantly exposed to gains and losses attributable to changes in the fair value of the Company’s equity shares. Instead, the Company is using its own equity shares as currency to settle a monetary obligation. |
Discontinued operations | Discontinued operations The Company records discontinued operations when the disposal of a separately identified business unit constitutes a strategic shift in the Company’s operations, as defined in ASC Topic 205-20, Discontinued Operations (“ASC Topic 205-20”). |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified for comparative purposes to conform to the current-period financial statement presentation. These reclassifications had no effect on previously reported results of operations. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses,” (“ASU No. 2016-13”) to improve information on credit losses for financial assets and net investment in leases that are not accounted for at fair value through net income. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. This guidance was effective for the Company beginning on January 1, 2023. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers.” The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. |
ASSETS HELD FOR SALE AND DISC_2
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Assets Held For Sale And Discontinued Operations | |
Schedule of assets and liabilities of agree operations | Schedule of assets and liabilities of agree operations September 30, December 31, 2023 2022 Cash and cash equivalents $ 1,851,000 $ 2,550,000 Restricted cash - 2,831,000 Accounts receivable 256,000 264,000 Inventories 51,000 44,000 Prepaid expenses and other current assets 262,000 270,000 Total current assets 2,420,000 5,959,000 Property and equipment, net 96,176,000 92,535,000 Total assets 98,596,000 98,494,000 Accounts payable and accrued expenses 2,097,000 2,631,000 Total current liabilities 2,097,000 2,631,000 Notes payable 67,115,000 61,633,000 Total liabilities 69,212,000 64,264,000 Net assets of discontinued operations $ 29,384,000 $ 34,230,000 |
Schedule of estimated costs to sell and expected | Schedule of estimated costs to sell and expected For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenue, hotel and real estate operations $ 5,404,000 $ 5,513,000 $ 12,031,000 $ 12,809,000 Cost of revenue, hotel operations 3,278,000 3,230,000 9,086,000 8,350,000 Gross profit 2,126,000 2,283,000 2,945,000 4,459,000 General and administrative 1,076,000 585,000 3,294,000 4,309,000 Total operating expenses 1,076,000 585,000 3,294,000 4,309,000 Income (loss) from operations 1,050,000 1,698,000 (349,000 ) 150,000 Interest expense (1,979,000 ) (1,605,000 ) (5,513,000 ) (3,764,000 ) Net (loss) income from discontinued operations $ (929,000 ) $ 93,000 $ (5,862,000 ) $ (3,614,000 ) |
REVENUE DISAGGREGATION (Tables)
REVENUE DISAGGREGATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenues | Schedule of disaggregated revenues GIGA TurnOn Green Fintech Sentinum SMC ROI Energy Total Primary Geographical Markets North America $ 3,711,000 $ 1,075,000 $ - $ 7,891,000 $ 15,931,000 $ 18,000 $ 12,929,000 $ 41,555,000 Europe 2,521,000 66,000 - - - - 2,000 2,589,000 Middle East and other 4,043,000 25,000 - - - - - 4,068,000 Revenue from contracts with customers 10,275,000 1,166,000 - 7,891,000 15,931,000 18,000 12,931,000 48,212,000 Revenue, lending and trading activities (North America) - - (249,000 ) - - - - (249,000 ) Total revenue $ 10,275,000 $ 1,166,000 $ (249,000 ) $ 7,891,000 $ 15,931,000 $ 18,000 $ 12,931,000 $ 47,963,000 Major Goods or Services Radio frequency/microwave filters $ 2,201,000 $ - $ - $ - $ - $ - $ - $ 2,201,000 Power supply units & systems 2,316,000 1,074,000 - - - - - 3,390,000 Healthcare diagnostic systems 1,243,000 - - - - - - 1,243,000 Defense systems 4,155,000 - - - - - - 4,155,000 Digital currency mining - - - 7,558,000 - - - 7,558,000 Karaoke machines and related consumer goods - - - - 15,931,000 - - 15,931,000 Crane rental - - - - - - 12,490,000 12,490,000 Other 360,000 92,000 - 333,000 - 18,000 441,000 1,244,000 Revenue from contracts with customers 10,275,000 1,166,000 - 7,891,000 15,931,000 18,000 12,931,000 48,212,000 Revenue, lending and trading activities - - (249,000 ) - - - - (249,000 ) Total revenue $ 10,275,000 $ 1,166,000 $ (249,000 ) $ 7,891,000 $ 15,931,000 $ 18,000 $ 12,931,000 $ 47,963,000 Timing of Revenue Recognition Goods transferred at a point in time $ 5,391,000 $ 1,162,000 $ - $ 7,891,000 $ 15,931,000 $ 18,000 $ 441,000 $ 30,834,000 Services transferred over time 4,884,000 4,000 - - - - 12,490,000 17,378,000 Revenue from contracts with customers $ 10,275,000 $ 1,166,000 $ - $ 7,891,000 $ 15,931,000 $ 18,000 $ 12,931,000 $ 48,212,000 The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2023 (excludes Ault Disruptive, as that segment has no revenue): GIGA TurnOn Green Fintech Sentinum SMC ROI Energy Total Primary Geographical Markets North America $ 8,901,000 $ 2,401,000 $ - $ 24,389,000 $ 21,939,000 $ 63,000 $ 38,604,000 $ 96,297,000 Europe 7,232,000 77,000 - - - - 109,000 7,418,000 Middle East and other 11,590,000 288,000 - - - - - 11,878,000 Revenue from contracts with customers 27,723,000 2,766,000 - 24,389,000 21,939,000 63,000 38,713,000 115,593,000 Revenue, lending and trading activities (North America) - - 4,337,000 - - - - 4,337,000 Total revenue $ 27,723,000 $ 2,766,000 $ 4,337,000 $ 24,389,000 $ 21,939,000 $ 63,000 $ 38,713,000 $ 119,930,000 Major Goods or Services Radio frequency/microwave filters $ 5,420,000 $ - $ - $ - $ - $ - $ - $ 5,420,000 Power supply units & systems 6,994,000 2,544,000 - - - - - 9,538,000 Healthcare diagnostic systems 3,481,000 - - - - - - 3,481,000 Defense systems 10,719,000 - - - - - - 10,719,000 Digital currency mining - - - 23,273,000 - - - 23,273,000 Karaoke machines and related consumer goods - - - - 21,939,000 - - 21,939,000 Crane rental - - - - - - 37,726,000 37,726,000 Other 1,109,000 222,000 - 1,116,000 - 63,000 987,000 3,497,000 Revenue from contracts with customers 27,723,000 2,766,000 - 24,389,000 21,939,000 63,000 38,713,000 115,593,000 Revenue, lending and trading activities - - 4,337,000 - - - - 4,337,000 Total revenue $ 27,723,000 $ 2,766,000 $ 4,337,000 $ 24,389,000 $ 21,939,000 $ 63,000 $ 38,713,000 $ 119,930,000 Timing of Revenue Recognition Goods transferred at a point in time $ 15,517,000 $ 2,755,000 $ - $ 24,389,000 $ 21,939,000 $ 63,000 $ 987,000 $ 65,650,000 Services transferred over time 12,206,000 11,000 - - - - 37,726,000 49,943,000 Revenue from contracts with customers $ 27,723,000 $ 2,766,000 $ - $ 24,389,000 $ 21,939,000 $ 63,000 $ 38,713,000 $ 115,593,000 The Company’s disaggregated revenues consisted of the following for the three months ended September 30, 2022 (excludes Ault Disruptive, as that segment has no revenue): GIGA TurnOn Green Fintech SMC Sentinum Total Primary Geographical Markets North America $ 2,472,000 $ 1,428,000 $ - $ 16,138,000 $ 4,146,000 $ 24,184,000 Europe 2,288,000 32,000 201,000 306,000 - 2,827,000 Middle East and other 3,022,000 202,000 - 670,000 - 3,894,000 Revenue from contracts with customers 7,782,000 1,662,000 201,000 17,114,000 4,146,000 30,905,000 Revenue, lending and trading activities (North America) - - 13,360,000 - - 13,360,000 Total revenue $ 7,782,000 $ 1,662,000 $ 13,561,000 $ 17,114,000 $ 4,146,000 $ 44,265,000 Major Goods or Services Power supply units $ 2,799,000 $ 1,480,000 $ - $ - $ - $ 4,279,000 Digital currency mining, net - - - - 3,874,000 3,874,000 Karaoke machines and related - - - 17,114,000 - 17,114,000 Other 4,983,000 182,000 201,000 - 272,000 5,638,000 Revenue from contracts with customers 7,782,000 1,662,000 201,000 17,114,000 4,146,000 30,905,000 Revenue, lending and trading activities - - 13,360,000 - - 13,360,000 Total revenue $ 7,782,000 $ 1,662,000 $ 13,561,000 $ 17,114,000 $ 4,146,000 $ 44,265,000 Timing of Revenue Recognition Goods transferred at a point in time $ 5,821,000 $ 1,662,000 $ 201,000 $ 17,114,000 $ 4,146,000 $ 28,944,000 Services transferred over time 1,961,000 - - - - 1,961,000 Revenue from contracts with customers $ 7,782,000 $ 1,662,000 $ 201,000 $ 17,114,000 $ 4,146,000 $ 30,905,000 The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2022: GIGA TurnOn Green Fintech SMC Sentinum Total Primary Geographical Markets North America $ 5,094,000 $ 3,262,000 $ 19,000 $ 16,138,000 $ 12,220,000 $ 36,733,000 Europe 7,007,000 79,000 201,000 306,000 - 7,593,000 Middle East and other 9,429,000 512,000 - 670,000 - 10,611,000 Revenue from contracts with customers 21,530,000 3,853,000 220,000 17,114,000 12,220,000 54,937,000 Revenue, lending and trading activities (North America) - - 32,224,000 - - 32,224,000 Total revenue $ 21,530,000 $ 3,853,000 $ 32,444,000 $ 17,114,000 $ 12,220,000 $ 87,161,000 Major Goods or Services Power supply units $ 6,928,000 $ 3,592,000 $ - $ - $ - $ 10,520,000 Healthcare diagnostic systems 2,285,000 - - - - 2,285,000 Defense systems 6,842,000 - - - - 6,842,000 Digital currency mining - - - - 11,398,000 11,398,000 Karaoke machines and related - - - 17,114,000 - 17,114,000 Other 5,475,000 261,000 220,000 - 822,000 6,778,000 Revenue from contracts with customers 21,530,000 3,853,000 220,000 17,114,000 12,220,000 54,937,000 Revenue, lending and trading activities - - 32,224,000 - - 32,224,000 Total revenue $ 21,530,000 $ 3,853,000 $ 32,444,000 $ 17,114,000 $ 12,220,000 $ 87,161,000 Timing of Revenue Recognition Goods transferred at a point in time $ 12,934,000 $ 3,853,000 $ 220,000 $ 17,114,000 $ 12,220,000 $ 46,341,000 Services transferred over time 8,596,000 - - - - 8,596,000 Revenue from contracts with customers $ 21,530,000 $ 3,853,000 $ 220,000 $ 17,114,000 $ 12,220,000 $ 54,937,000 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets measured on recurring basis | Fair value, assets measured on recurring basis Fair Value Measurement at September 30, 2023 Total Level 1 Level 2 Level 3 Assets: Investment in common stock of Alzamend Neuro, Inc. (“Alzamend”) – a related party $ 2,712,000 $ 2,712,000 $ - $ - Investments in marketable equity securities 72,000 72,000 - - Cash and marketable securities held in trust account 2,171,000 2,171,000 - - Total assets measured at fair value $ 4,955,000 $ 4,955,000 $ - $ - Liabilities: Warrant and embedded conversion feature liabilities $ 832,000 $ - $ - $ 832,000 Convertible promissory notes 18,054,000 - - 18,054,000 Total liabilities measured at fair value $ 18,886,000 $ - $ - $ 18,886,000 Fair Value Measurement at December 31, 2022 Total Level 1 Level 2 Level 3 Assets: Investment in common stock of Alzamend – a related party $ 6,449,000 $ 6,449,000 $ - $ - Investments in marketable equity securities 6,590,000 6,590,000 - - Cash and marketable securities held in trust account 118,193,000 118,193,000 - - Investments in other equity securities 13,340,000 - - 13,340,000 Total assets measured at fair value $ 144,572,000 $ 131,232,000 $ - $ 13,340,000 Liabilities: Warrant and embedded conversion feature liabilities $ 2,967,000 $ - $ - $ 2,967,000 Convertible promissory notes 12,776,000 - - 12,776,000 Total liabilities measured at fair value $ 15,743,000 $ - $ - $ 15,743,000 |
Schedule of investments | Schedule of investments Investments in Balance at January 1, 2023 $ 13,340,000 Conversion to Level 1 marketable securities (13,340,000 ) Balance at September 30, 2023 $ - |
Marketable EQUITY Securities (T
Marketable EQUITY Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Marketable Equity Securities | |
Schedule of marketable securities | Schedule of marketable securities Marketable equity securities at September 30, 2023 Gross unrealized Gross unrealized Cost gains losses Fair value Common shares $ 5,133,000 $ 26,000 $ (5,087,000 ) $ 72,000 |
DIGITAL CURRENCIES (Tables)
DIGITAL CURRENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Digital Currencies | |
Schedule of activities of the digital currencies | Schedule of activities of the digital currencies Digital Balance at January 1, 2023 $ 554,000 Additions of mined digital currencies 21,103,000 Payments to vendors (20,000 ) Impairment of mined cryptocurrency (376,000 ) Sale of digital currencies (21,330,000 ) Realized gain on sale of digital currencies 404,000 Balance at September 30, 2023 $ 335,000 Digital Balance at January 1, 2022 $ 2,165,000 Additions of mined digital currencies 11,398,000 Payments to vendors (418,000 ) Impairment of mined cryptocurrency (2,930,000 ) Sale of digital currencies (8,952,000 ) Realized gain on sale of digital currencies 829,000 Balance at September 30, 2022 $ 2,092,000 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Schedule of property and equipment September 30, 2023 December 31, 2022 Building and improvements $ 11,796,000 $ 10,428,000 Bitcoin mining equipment 50,640,000 42,438,000 Crane rental equipment 34,341,000 32,453,000 Land 2,692,000 2,567,000 Computer, software and related equipment 23,517,000 23,168,000 Aircraft 15,983,000 15,983,000 Vehicles 4,797,000 3,314,000 Office furniture and equipment 682,000 610,000 Oil and natural gas properties, unproved properties 3,878,000 972,000 148,326,000 131,933,000 Accumulated depreciation and amortization (25,726,000 ) (5,882,000 ) Property and equipment placed in service, net 122,600,000 126,051,000 Construction in progress AVLP equipment 9,444,000 9,400,000 Deposits on cryptocurrency machines - 11,328,000 Property and equipment, net $ 132,044,000 $ 146,779,000 |
Schedule of depreciation | Schedule of depreciation For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Depreciation expense $ 7,805,000 $ 2,779,000 $ 20,047,000 $ 7,742,000 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible asset | Schedule of intangible asset Useful Life September 30, 2023 December 31, Definite-lived intangible assets: Developed technology 3 8 $ 7,984,000 $ 24,584,000 Customer list 8 10 5,755,000 5,865,000 Trade names 5 10 3,916,000 4,316,000 Domain name and other intangible assets 5 580,000 630,000 18,235,000 35,395,000 Accumulated amortization (2,753,000 ) (2,102,000 ) Total definite-lived intangible assets $ 15,482,000 $ 33,786,000 Indefinite-lived intangible assets: Trade name and trademark Indefinite life 1,498,000 1,493,000 Total intangible assets, net $ 16,980,000 $ 34,786,000 |
Schedule of indefinite-lived intangible assets | Schedule of indefinite-lived intangible assets For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Amortization expense $ 254,000 $ 223,000 $ 761,000 $ 381,000 |
Schedule of estimated amortization expense | Schedule of estimated amortization expense 2023 $ 507,000 2024 2,026,000 2025 1,926,000 2026 1,826,000 2027 1,826,000 Thereafter 7,371,000 $ 15,482,000 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Disclosure Goodwill Abstract | |
Schedule of goodwill | Schedule of goodwill Goodwill Balance as of January 1, 2023 $ 27,902,000 Acquisition of ROI 17,000 Impairment of goodwill (18,570,000 ) Effect of exchange rate changes (376,000 ) Balance as of September 30, 2023 $ 8,973,000 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of variable interest entities | Schedule of variable interest entities Ault Alliance investment in ROI Amount Common stock $ 287,000 |
Schedule of recognized identified assets acquired and liabilities assumed | Schedule of recognized identified assets acquired and liabilities assumed Preliminary Fair value of Company interest $ 287,000 Fair value of non-controlling interest 6,357,000 Total consideration $ 6,644,000 Identifiable net assets acquired: Cash $ 67,000 Investment in equity securities 8,076,000 Prepaid expenses and other current assets 172,000 Property and equipment, net 4,109,000 Right-of-use assets 339,000 Accounts payable and accrued expenses (5,790,000 ) Lease liabilities (346,000 ) Net assets acquired 6,627,000 Goodwill $ 17,000 |
INVESTMENTS _ RELATED PARTIES (
INVESTMENTS – RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule of investment | Schedule of investment Interest September 30, December 31, rate Due Date 2023 2022 Investment in promissory note of Ault & Company 8% December 31, 2023 $ 2,500,000 $ 2,500,000 Accrued interest receivable, Ault & Company 518,000 368,000 Total investment in promissory note, related party $ 3,018,000 $ 2,868,000 Summary of interest income, related party, recorded within interest and other income on the condensed consolidated statement of operations: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Interest income, related party $ 50,000 $ 50,000 $ 150,000 $ 150,000 |
Schedule of investment in common stock | Schedule of investment in common stock Investments in common stock, related parties at September 30, 2023 Cost Gross unrealized losses Fair value Common shares $ 24,688,000 $ (21,976,000 ) $ 2,712,000 Investments in common stock, related parties at December 31, 2022 Cost Gross unrealized losses Fair value Common shares $ 24,673,000 $ (18,224,000 ) $ 6,449,000 |
Schedule of investment in warrants and common stock | Schedule of investment in warrants and common stock For the Three Months Ended September 30, 2023 2022 Balance at July 1 $ 5,836,000 $ 8,845,000 Investment in common stock of Alzamend - 177,000 Unrealized gain (loss) in common stock of Alzamend (3,124,000 ) 3,372,000 Balance at September 30 $ 2,712,000 $ 12,394,000 The following table summarizes the changes in the Company’s investments in Alzamend common stock during the nine months ended September 30, 2023 and 2022: For the Nine Months Ended September 30, 2023 2022 Balance at January 1 $ 6,449,000 $ 13,230,000 Investment in common stock of Alzamend 15,000 4,840,000 Unrealized loss in common stock of Alzamend (3,752,000 ) (5,676,000 ) Balance at September 30 $ 2,712,000 $ 12,394,000 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of other current liabilities | Schedule of other current liabilities September 30, December 31, 2023 2022 Accounts payable $ 36,883,000 $ 20,027,000 Accrued payroll and payroll taxes 12,420,000 9,789,000 Financial instrument liabilities 863,000 651,000 Interest payable 3,946,000 3,207,000 Accrued legal 4,390,000 3,168,000 Accrued lender profit participation rights 2,497,000 6,000,000 Related party advances 68,000 352,000 Other accrued expenses 27,146,000 17,586,000 $ 88,213,000 $ 60,780,000 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Redeemable Noncontrolling Interests In Equity Of Subsidiary Liability | |
REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY | Redeemable noncontrolling interests in equity of subsidiaries as of December 31, 2022 $ 117,993,000 Redemption of ADRT common stock (120,064,000 ) Remeasurement of carrying value to redemption value 4,250,000 Redeemable noncontrolling interests in equity of subsidiaries as of September 30, 2023 $ 2,179,000 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable | Schedule of notes payable Collateral Guarantors Interest Due date September December Circle 8 revolving credit facility Circle 8 cranes - 8.4% December 16, 2025 $ 16,960,000 $ 14,724,000 8.5% secured promissory notes Deposit accounts, 19,389 Antminers, BNI Montana assets, Circle 8 membership interests, Florida property, Michigan property, aircraft Ault & Company, Ault Lending, Sentinum, Alliance Cloud Services, Inc., Ault Aviation, LLC, Third Avenue Apartments LLC, BNI Montana, LLC, Milton C. Ault, III 8.5% May 7, 2024 22,749,000 17,389,000 16% promissory notes - Ault & Company, Sentinum, Ault Lending, Milton C. Ault, III 16.0% December 16, 2023 2,662,000 17,456,000 Circle 8 equipment financing notes Circle 8 equipment - 7.2% Various dates from March 15, 2024 November 15, 2026 7,375,000 10,677,000 3% secured promissory notes - - 3.0% N/A - 5,672,000 8% demand loans - - 8.0% Upon demand 1,800,000 - Short-term bank credit facilities - - 5.7% Renews monthly 2,056,000 1,702,000 XBTO note payable 2,482 Antminers - 12.5% December 30, 2023 1,087,000 2,749,000 10% secured promissory notes - - 10.0% N/A - 8,789,000 SMC line of credit SMC assets - 8.0% October 14, 2025 - 1,761,000 Other ($0.4 million in default) - - 400,000 858,000 Total notes payable - - $ 55,089,000 $ 81,777,000 Less: - - Unamortized debt discounts - - (3,623,000 ) (12,325,000 ) Total notes payable, net - - $ 51,466,000 $ 69,452,000 Less: current portion - - (30,255,000 ) (39,621,000 ) Notes payable – long-term portion - - $ 21,211,000 $ 29,831,000 |
Schedule of maturities | Schedule of maturities Year 2023 $ 12,546,000 2024 23,405,000 2025 18,697,000 2026 441,000 $ 55,089,000 |
Schedule of interest expense | Schedule of interest expense For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Contractual interest expense $ 3,262,000 $ 2,263,000 $ 5,002,000 $ 4,373,000 Forbearance fees 518,000 - 7,319,000 1,203,000 Amortization of debt discount 634,000 104,000 18,216,000 26,487,000 Total interest expense $ 4,414,000 $ 2,367,000 $ 30,537,000 $ 32,063,000 |
NOTES PAYABLE, RELATED PARTY (T
NOTES PAYABLE, RELATED PARTY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Payable Related Party | |
Schedule of notes payable related party | Schedule of notes payable related party Interest rate Due date September 30, December 31, Loan agreement 9.5 % Upon demand $ 4,580,000 $ - 12% demand promissory note 12.0 % Upon demand 1,100,000 - 10% demand promissory note 10.0 % Upon demand 10,545,000 - Total notes payable, related party $ 16,225,000 $ - |
Schedule of interest expense, related party | Schedule of interest expense, related party For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Interest expense, related party $ 287,000 $ - $ 292,000 $ - |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Convertible Notes | |
Schedule of convertible notes payable | Schedule of convertible notes payable Conversion price per Interest Due date September December Convertible promissory note $ 4.00 4% May 10, 2024 $ - $ 660,000 Convertible promissory note - OID only 90% of 5-day VWAP OID Only September 28, 2024 2,200,000 - AVLP convertible promissory notes $ 0.35 7% August 22, 2025 9,911,000 9,911,000 GIGA senior secured convertible notes - in default $ 0.25 18% October 11, 2023 2,317,000 - ROI senior secured convertible notes $ 3.28 OID Only April 27, 2024 6,875,000 - Fair value of embedded conversion options 528,000 2,316,000 Total convertible notes payable $ 21,831,000 $ 12,887,000 Less: unamortized debt discounts (3,777,000 ) (111,000 ) Total convertible notes payable, net of financing cost, long term $ 18,054,000 $ 12,776,000 Less: current portion (8,601,000 ) (1,325,000 ) Convertible notes payable, net of financing cost – long-term portion $ 9,453,000 $ 11,451,000 |
Schedule of contractual maturities | Schedule of contractual maturities Year Principal 2023 $ 2,317,000 2024 9,075,000 2025 10,439,000 $ 21,831,000 |
Schedule of weighted average assumptions | Schedule of weighted average assumptions September 30, 2023 December 31, 2022 At Inception Contractual term in years 0.6 2.0 2.7 1.0 Volatility 75% 140% 82 % 111 % Dividend yield 0% 0 % 0 % Risk-free interest rate 4.6% 5.3% 4.0 % 3.5 % |
Schedule of derivative liabilities | Schedule of derivative liabilities Balance as of December 31, 2022 $ 2,316,000 Fair value of embedded conversion options issued 1,652,000 Change in fair value (3,440,000 ) Ending balance as of September 30, 2023 $ 528,000 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of anti-dilutive securities | Schedule of anti-dilutive securities September 30, 2023 2022 Stock options 19,000 21,000 Restricted stock grants - 7,000 Warrants 52,000 62,000 Convertible notes - 1,000 Total 71,000 91,000 |
SEGMENT AND CUSTOMERS INFORMA_2
SEGMENT AND CUSTOMERS INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of operating segments | Schedule of operating segments Nine Months Ended September 30, 2023 GIGA TurnOn Green Fintech Sentinum Ault SMC Energy ROI Holding Co. Total Revenue $ 27,723,000 $ 2,766,000 $ - $ 1,116,000 $ - $ 21,939,000 $ 987,000 $ 63,000 $ - $ 54,594,000 Revenue, cryptocurrency mining - - - 23,273,000 - - - - - 23,273,000 Revenue, lending and trading activities - - 4,337,000 - - - - - - 4,337,000 Revenue, crane operations - - - - - - 37,726,000 - - 37,726,000 Total revenues $ 27,723,000 $ 2,766,000 $ 4,337,000 $ 24,389,000 $ - $ 21,939,000 $ 38,713,000 $ 63,000 $ - $ 119,930,000 Depreciation and amortization expense $ 852,000 $ 68,000 $ - $ 14,362,000 $ - $ 779,000 $ 3,053,000 $ 152,000 $ 1,542,000 $ 20,808,000 Income (loss) from operations $ (5,620,000 ) $ (4,067,000 ) $ 1,091,000 $ (4,363,000 ) $ (1,052,000 ) $ (4,598,000 ) $ (30,216,000 ) $ (33,590,000 ) $ (20,012,000 ) $ (102,427,000 ) Capital expenditures $ 410,000 $ 131,000 $ - $ 1,426,000 $ - $ 383,000 $ 12,471,000 $ 407,000 $ 2,906,000 $ 18,134,000 Segment identifiable assets $ 36,917,000 $ 5,461,000 $ 24,727,000 $ 63,327,000 $ 2,465,000 $ 36,653,000 $ 73,447,000 $ 10,939,000 $ 25,924,000 279,860,000 Assets of discontinued operations 98,596,000 Total identifiable assets $ 378,456,000 Three Months Ended September 30, 2023 GIGA TurnOn Green Fintech Sentinum Ault SMC Energy ROI Holding Co. Total Revenue $ 10,275,000 $ 1,166,000 $ - $ 333,000 $ - $ 15,931,000 $ 441,000 $ 18,000 $ - $ 28,164,000 Revenue, cryptocurrency mining - - - 7,558,000 - - - - - 7,558,000 Revenue, lending and trading activities - - (249,000 ) - - - - - - (249,000 ) Revenue, crane operations - - - - - - 12,490,000 - - 12,490,000 Total revenues $ 10,275,000 $ 1,166,000 $ (249,000 ) $ 7,891,000 $ - $ 15,931,000 $ 12,931,000 $ 18,000 $ - $ 47,963,000 Depreciation and amortization expense $ 286,000 $ 24,000 $ - $ 5,792,000 $ - $ 338,000 $ 1,073,000 $ 32,000 $ 514,000 $ 8,059,000 Income (loss) from operations $ (503,000 ) $ (1,498,000 ) $ (1,039,000 ) $ (2,661,000 ) $ (214,000 ) $ 181,000 $ 2,505,000 $ (13,315,000 ) $ (5,359,000 ) $ (21,903,000 ) Capital expenditures $ 275,000 $ 121,000 $ - $ 261,000 $ - $ 199,000 $ 11,135,000 $ - $ 314,000 $ 12,305,000 Identifiable assets $ 36,917,000 $ 5,461,000 $ 24,727,000 $ 63,327,000 $ 2,465,000 $ 36,653,000 $ 73,447,000 $ 10,939,000 $ 25,924,000 279,860,000 Assets of discontinued operations 98,596,000 Total identifiable assets $ 378,456,000 Segment information for the three and nine months ended September 30, 2022: Nine Months Ended September 30, 2022 GIGA TurnOn Fintech Sentinum Ault SMC Holding Total Revenue $ 21,530,000 $ 3,853,000 $ 220,000 $ 822,000 $ - $ 17,114,000 $ - $ 43,539,000 Revenue, cryptocurrency mining - - - 11,398,000 - - - 11,398,000 Revenue, lending and trading activities - - 32,224,000 - - - - 32,224,000 Total revenues $ 21,530,000 $ 3,853,000 $ 32,444,000 $ 12,220,000 $ - $ 17,114,000 $ - $ 87,161,000 Depreciation and amortization expense $ 1,259,000 $ 403,000 $ 240,000 $ 6,949,000 $ - $ 166,000 $ 474,000 $ 9,491,000 Income (loss) from operations $ (1,881,000 ) $ (2,577,000 ) $ 4,212,000 $ (8,139,000 ) $ (1,100,000 ) $ 597,000 $ (19,262,000 ) $ (28,150,000 ) Capital expenditures $ 612,000 $ 176,000 $ 1,739,000 $ 77,299,000 $ - $ 66,000 $ 166,000 $ 80,058,000 Three Months Ended September 30, 2022 GIGA TurnOn Fintech Sentinum Ault SMC Holding Total Revenue $ 7,781,000 $ 1,662,000 $ 201,000 $ 273,000 $ - $ 17,114,000 $ - $ 27,031,000 Revenue, cryptocurrency mining - - - 3,874,000 - - - 3,874,000 Revenue, lending and trading activities - - 13,360,000 - - - - 13,360,000 Total revenues $ 7,781,000 $ 1,662,000 $ 13,561,000 $ 4,147,000 $ - $ 17,114,000 $ - $ 44,265,000 Depreciation and amortization expense $ 740,000 $ 393,000 $ 172,000 $ 2,809,000 $ - $ 166,000 $ (264,000 ) $ 4,016,000 Income (loss) from operations $ (661,000 ) $ (957,000 ) $ 3,786,000 $ (4,322,000 ) $ (314,000 ) $ 597,000 $ (5,138,000 ) $ (7,009,000 ) Capital expenditures $ 327,000 $ 51,000 $ 890,000 $ 5,915,000 $ - $ 66,000 $ 47,000 $ 7,296,000 |
CONCENTRATIONS OF CREDIT AND _2
CONCENTRATIONS OF CREDIT AND REVENUE RISK (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Concentrations Of Credit And Revenue Risk | |
Schedule of concentrations of credit risk | Schedule of concentrations of credit risk September 30, 2023 December 31, 2022 Customer A * 13 % Customer B 18 % 14 % The following table provides the percentage of total revenues attributable to customers from which 10% For the Three Months Ended For the Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Customer V (Mining Pool Operator) * * 10% * Customer W (Mining Pool Operator) 13% * * * Customer X 12% 17% * * Customer Y * 11% * * Customer Z * * * 10% |
LIQUIDITY AND FINANCIAL CONDI_2
LIQUIDITY AND FINANCIAL CONDITION (Details Narrative) | Sep. 30, 2023 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash and cash equivalents | $ 8,700,000 |
Working capital | $ 45,100,000 |
ASSETS HELD FOR SALE AND DISC_3
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Subsidiary, Sale of Stock [Line Items] | ||
Cash and cash equivalents | $ 8,736,000 | $ 7,942,000 |
Restricted cash | 1,903,000 | 732,000 |
Accounts receivable | 24,651,000 | 19,322,000 |
Inventories | 22,482,000 | 22,036,000 |
Prepaid expenses and other current assets | 8,709,000 | 5,074,000 |
TOTAL CURRENT ASSETS | 169,333,000 | 196,309,000 |
Property and equipment, net | 132,044,000 | 146,779,000 |
TOTAL ASSETS | 378,456,000 | 561,514,000 |
Accounts payable and accrued expenses | 88,213,000 | 60,780,000 |
TOTAL CURRENT LIABILITIES | 214,407,000 | 225,325,000 |
Notes payable | 21,211,000 | 29,831,000 |
TOTAL LIABILITIES | 257,218,000 | 337,526,000 |
AGREE [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Cash and cash equivalents | 1,851,000 | 2,550,000 |
Restricted cash | 2,831,000 | |
Accounts receivable | 256,000 | 264,000 |
Inventories | 51,000 | 44,000 |
Prepaid expenses and other current assets | 262,000 | 270,000 |
TOTAL CURRENT ASSETS | 2,420,000 | 5,959,000 |
Property and equipment, net | 96,176,000 | 92,535,000 |
TOTAL ASSETS | 98,596,000 | 98,494,000 |
Accounts payable and accrued expenses | 2,097,000 | 2,631,000 |
TOTAL CURRENT LIABILITIES | 2,097,000 | 2,631,000 |
Notes payable | 67,115,000 | 61,633,000 |
TOTAL LIABILITIES | 69,212,000 | 64,264,000 |
Net assets of discontinued operations | $ 29,384,000 | $ 34,230,000 |
ASSETS HELD FOR SALE AND DISC_4
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Cost of revenue, hotel operations | $ 38,295,000 | $ 25,448,000 | $ 91,156,000 | $ 43,191,000 |
Gross profit | 9,668,000 | 18,817,000 | 28,774,000 | 43,970,000 |
General and administrative | 17,760,000 | 15,362,000 | 59,540,000 | 44,357,000 |
Total operating expenses | 31,571,000 | 25,826,000 | 131,201,000 | 72,120,000 |
Income (loss) from operations | (21,903,000) | (7,009,000) | (102,427,000) | (28,150,000) |
Interest expense | (4,414,000) | (2,367,000) | (30,537,000) | (32,063,000) |
Net (loss) income from discontinued operations | (929,000) | 93,000 | (5,862,000) | (3,614,000) |
AGREE [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Revenue, hotel and real estate operations | 5,404,000 | 5,513,000 | 12,031,000 | 12,809,000 |
Cost of revenue, hotel operations | 3,278,000 | 3,230,000 | 9,086,000 | 8,350,000 |
Gross profit | 2,126,000 | 2,283,000 | 2,945,000 | 4,459,000 |
General and administrative | 1,076,000 | 585,000 | 3,294,000 | 4,309,000 |
Total operating expenses | 1,076,000 | 585,000 | 3,294,000 | 4,309,000 |
Income (loss) from operations | 1,050,000 | 1,698,000 | (349,000) | 150,000 |
Interest expense | (1,979,000) | (1,605,000) | (5,513,000) | (3,764,000) |
Net (loss) income from discontinued operations | $ (929,000) | $ 93,000 | $ (5,862,000) | $ (3,614,000) |
REVENUE DISAGGREGATION (Details
REVENUE DISAGGREGATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 47,963,000 | $ 44,265,000 | $ 119,930,000 | $ 87,161,000 |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 30,834,000 | 28,944,000 | 65,650,000 | 46,341,000 |
Revenue From Contracts With Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 48,212,000 | 30,905,000 | 115,593,000 | 54,937,000 |
Radio Frequency Microwave Filters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,201,000 | 5,420,000 | ||
Power supply units and systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,390,000 | 4,279,000 | 9,538,000 | 10,520,000 |
Healthcare Diagnostic Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,243,000 | 3,481,000 | 2,285,000 | |
Defense Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,155,000 | 10,719,000 | 6,842,000 | |
Digital Currency Mining [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,558,000 | 3,874,000 | 23,273,000 | 11,398,000 |
Karaoke Machines And Rleated Consumer Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
Crane rental [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,490,000 | 37,726,000 | ||
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,244,000 | 5,638,000 | 3,497,000 | 6,778,000 |
Revenue from contracts with customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 48,212,000 | 30,905,000 | 115,593,000 | 54,937,000 |
Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (249,000) | 13,360,000 | 4,337,000 | 32,224,000 |
Total [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 47,963,000 | 44,265,000 | 119,930,000 | 87,161,000 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 17,378,000 | 1,961,000 | 49,943,000 | 8,596,000 |
Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 48,212,000 | 30,905,000 | 115,593,000 | 54,937,000 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 41,555,000 | 24,184,000 | 96,297,000 | 36,733,000 |
North America [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (249,000) | 13,360,000 | 4,337,000 | 32,224,000 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,589,000 | 2,827,000 | 7,418,000 | 7,593,000 |
Middle East [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,068,000 | 3,894,000 | 11,878,000 | 10,611,000 |
GIGA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,275,000 | 7,782,000 | 27,723,000 | 21,530,000 |
GIGA [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,391,000 | 5,821,000 | 15,517,000 | 12,934,000 |
GIGA [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,884,000 | 1,961,000 | 12,206,000 | 8,596,000 |
GIGA [Member] | Revenue From Contracts With Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,275,000 | 7,782,000 | 27,723,000 | 21,530,000 |
GIGA [Member] | Radio Frequency Microwave Filters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,201,000 | 5,420,000 | ||
GIGA [Member] | Power supply units and systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,316,000 | 2,799,000 | 6,994,000 | 6,928,000 |
GIGA [Member] | Healthcare Diagnostic Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,243,000 | 3,481,000 | 2,285,000 | |
GIGA [Member] | Defense Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,155,000 | 10,719,000 | 6,842,000 | |
GIGA [Member] | Digital Currency Mining [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
GIGA [Member] | Karaoke Machines And Rleated Consumer Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
GIGA [Member] | Crane rental [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
GIGA [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 360,000 | 4,983,000 | 1,109,000 | 5,475,000 |
GIGA [Member] | Revenue from contracts with customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,275,000 | 7,782,000 | 27,723,000 | 21,530,000 |
GIGA [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
GIGA [Member] | Total [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,275,000 | 7,782,000 | 27,723,000 | 21,530,000 |
GIGA [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 10,275,000 | 7,782,000 | 27,723,000 | |
GIGA [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,711,000 | 2,472,000 | 8,901,000 | 5,094,000 |
GIGA [Member] | North America [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
GIGA [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,521,000 | 2,288,000 | 7,232,000 | 7,007,000 |
GIGA [Member] | Middle East [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,043,000 | 3,022,000 | 11,590,000 | 9,429,000 |
Turn On Green [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,166,000 | 1,662,000 | 2,766,000 | 3,853,000 |
Turn On Green [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,162,000 | 1,662,000 | 2,755,000 | 3,853,000 |
Turn On Green [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,000 | 11,000 | ||
Turn On Green [Member] | Revenue From Contracts With Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,166,000 | 1,662,000 | 2,766,000 | 3,853,000 |
Turn On Green [Member] | Radio Frequency Microwave Filters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Turn On Green [Member] | Power supply units and systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,074,000 | 1,480,000 | 2,544,000 | 3,592,000 |
Turn On Green [Member] | Healthcare Diagnostic Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Turn On Green [Member] | Defense Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Turn On Green [Member] | Digital Currency Mining [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Turn On Green [Member] | Karaoke Machines And Rleated Consumer Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Turn On Green [Member] | Crane rental [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Turn On Green [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 92,000 | 182,000 | 222,000 | 261,000 |
Turn On Green [Member] | Revenue from contracts with customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,166,000 | 1,662,000 | 2,766,000 | 3,853,000 |
Turn On Green [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Turn On Green [Member] | Total [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,166,000 | 1,662,000 | 2,766,000 | 3,853,000 |
Turn On Green [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,166,000 | 1,662,000 | 2,766,000 | 3,853,000 |
Turn On Green [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,075,000 | 1,428,000 | 2,401,000 | 3,262,000 |
Turn On Green [Member] | North America [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Turn On Green [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 66,000 | 32,000 | 77,000 | 79,000 |
Turn On Green [Member] | Middle East [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 25,000 | 202,000 | 288,000 | 512,000 |
Fintech [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (249,000) | 13,561,000 | 4,337,000 | 32,444,000 |
Fintech [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 201,000 | 220,000 | ||
Fintech [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Fintech [Member] | Revenue From Contracts With Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 201,000 | 220,000 | ||
Fintech [Member] | Radio Frequency Microwave Filters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Fintech [Member] | Power supply units and systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Fintech [Member] | Healthcare Diagnostic Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Fintech [Member] | Defense Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Fintech [Member] | Digital Currency Mining [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Fintech [Member] | Karaoke Machines And Rleated Consumer Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Fintech [Member] | Crane rental [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Fintech [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 201,000 | 220,000 | ||
Fintech [Member] | Revenue from contracts with customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 201,000 | 220,000 | ||
Fintech [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (249,000) | 13,360,000 | 4,337,000 | 32,224,000 |
Fintech [Member] | Total [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (249,000) | 13,561,000 | 4,337,000 | 32,444,000 |
Fintech [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 201,000 | 220,000 | ||
Fintech [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 19,000 | |||
Fintech [Member] | North America [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (249,000) | 13,360,000 | 4,337,000 | 32,224,000 |
Fintech [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 201,000 | 201,000 | ||
Fintech [Member] | Middle East [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,891,000 | 4,146,000 | 24,389,000 | 12,220,000 |
Sentinum [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,891,000 | 4,146,000 | 24,389,000 | 12,220,000 |
Sentinum [Member] | Revenue From Contracts With Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,891,000 | 4,146,000 | 24,389,000 | 12,220,000 |
Sentinum [Member] | Radio Frequency Microwave Filters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Power supply units and systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Healthcare Diagnostic Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Defense Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Digital Currency Mining [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,558,000 | 3,874,000 | 23,273,000 | 11,398,000 |
Sentinum [Member] | Karaoke Machines And Rleated Consumer Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Crane rental [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 333,000 | 272,000 | 1,116,000 | 822,000 |
Sentinum [Member] | Revenue from contracts with customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,891,000 | 4,146,000 | 24,389,000 | 12,220,000 |
Sentinum [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Total [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,891,000 | 4,146,000 | 24,389,000 | 12,220,000 |
Sentinum [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,891,000 | 4,146,000 | 24,389,000 | 12,220,000 |
Sentinum [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,891,000 | 4,146,000 | 24,389,000 | 12,220,000 |
Sentinum [Member] | North America [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Sentinum [Member] | Middle East [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
SMC [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
SMC [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Revenue From Contracts With Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
SMC [Member] | Radio Frequency Microwave Filters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Power supply units and systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Healthcare Diagnostic Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Defense Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Digital Currency Mining [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Karaoke Machines And Rleated Consumer Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
SMC [Member] | Crane rental [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Revenue from contracts with customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
SMC [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Total [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
SMC [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
SMC [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,931,000 | 16,138,000 | 21,939,000 | 16,138,000 |
SMC [Member] | North America [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
SMC [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 306,000 | 306,000 | ||
SMC [Member] | Middle East [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 670,000 | 670,000 | ||
ROI [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,000 | 63,000 | ||
ROI [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,000 | 63,000 | ||
ROI [Member] | Revenue From Contracts With Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,000 | 63,000 | ||
ROI [Member] | Radio Frequency Microwave Filters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Power supply units and systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Healthcare Diagnostic Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Defense Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Digital Currency Mining [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Karaoke Machines And Rleated Consumer Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Crane rental [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,000 | 63,000 | ||
ROI [Member] | Revenue from contracts with customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,000 | 63,000 | ||
ROI [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Total [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,000 | 63,000 | ||
ROI [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,000 | 63,000 | ||
ROI [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,000 | 63,000 | ||
ROI [Member] | North America [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
ROI [Member] | Middle East [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Energy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,931,000 | 38,713,000 | ||
Energy [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 441,000 | 987,000 | ||
Energy [Member] | Revenue From Contracts With Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,931,000 | 38,713,000 | ||
Energy [Member] | Radio Frequency Microwave Filters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Energy [Member] | Power supply units and systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Energy [Member] | Healthcare Diagnostic Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Energy [Member] | Defense Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Energy [Member] | Digital Currency Mining [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Energy [Member] | Karaoke Machines And Rleated Consumer Goods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Energy [Member] | Crane rental [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,490,000 | 37,726,000 | ||
Energy [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 441,000 | 987,000 | ||
Energy [Member] | Revenue from contracts with customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,931,000 | 38,713,000 | ||
Energy [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Energy [Member] | Total [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,931,000 | 38,713,000 | ||
Energy [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,490,000 | 37,726,000 | ||
Energy [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,931,000 | 38,713,000 | ||
Energy [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,929,000 | 38,604,000 | ||
Energy [Member] | North America [Member] | Revenue Lending and Trading Activities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
Energy [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,000 | 109,000 | ||
Energy [Member] | Middle East [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | ||||
GWW [Member] | Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 21,530,000 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Recurring [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 4,955,000 | $ 144,572,000 |
Total liabilities measured at fair value | 18,886,000 | 15,743,000 |
Warrant And Embedded Conversion Feature Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 832,000 | 2,967,000 |
Convertible promissory notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 18,054,000 | 12,776,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 4,955,000 | 131,232,000 |
Total liabilities measured at fair value | ||
Fair Value, Inputs, Level 1 [Member] | Warrant And Embedded Conversion Feature Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | ||
Fair Value, Inputs, Level 1 [Member] | Convertible promissory notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | ||
Total liabilities measured at fair value | ||
Fair Value, Inputs, Level 2 [Member] | Warrant And Embedded Conversion Feature Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | ||
Fair Value, Inputs, Level 2 [Member] | Convertible promissory notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 13,340,000 | |
Total liabilities measured at fair value | 18,886,000 | 15,743,000 |
Fair Value, Inputs, Level 3 [Member] | Warrant And Embedded Conversion Feature Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 832,000 | 2,967,000 |
Fair Value, Inputs, Level 3 [Member] | Convertible promissory notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 18,054,000 | 12,776,000 |
Alzamend Neuro Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 2,712,000 | 6,449,000 |
Alzamend Neuro Inc [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 2,712,000 | 6,449,000 |
Alzamend Neuro Inc [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | ||
Alzamend Neuro Inc [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | ||
Marketable equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 72,000 | 6,590,000 |
Marketable equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 72,000 | 6,590,000 |
Marketable equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | ||
Marketable equity securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | ||
Cash and marketable securities held in trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 2,171,000 | 118,193,000 |
Cash and marketable securities held in trust [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 2,171,000 | 118,193,000 |
Cash and marketable securities held in trust [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | ||
Cash and marketable securities held in trust [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | ||
Investments in other equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 13,340,000 | |
Investments in other equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | ||
Investments in other equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | ||
Investments in other equity securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 13,340,000 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - Fair Value, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance at Beginning | $ 13,340,000 |
Conversion to Level 1 marketable securities | (13,340,000) |
Balance at End |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Alternative investment | $ 26,000,000 | $ 29,200,000 |
Impairments for equity securities | 11,600,000 | |
Other Income Expense [Member] | ||
Impairments for equity securities | 9,600,000 | |
Revenue From Lending And Trading Activitie [Member] | ||
Impairments for equity securities | $ 2,000,000 |
Marketable EQUITY Securities (D
Marketable EQUITY Securities (Details) - Common Stock [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Cost | $ 5,133,000 | $ 10,271,000 |
Gross unrealized gains | 26,000 | 383,000 |
Gross unrealized losses | (5,087,000) | (4,064,000) |
Fair value | $ 72,000 | $ 6,590,000 |
DIGITAL CURRENCIES (Details)
DIGITAL CURRENCIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Impairment of mined cryptocurrency | $ 113,000 | $ 515,000 | $ 376,000 | $ 2,930,000 |
Digital currencies [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Beginning balance | 554,000 | 2,165,000 | ||
Additions of mined digital currencies | 21,103,000 | 11,398,000 | ||
Payments to vendors | (20,000) | (418,000) | ||
Impairment of mined cryptocurrency | (376,000) | (2,930,000) | ||
Sale of digital currencies | (21,330,000) | (8,952,000) | ||
Realized gain on sale of digital currencies | 404,000 | 829,000 | ||
Ending balance | $ 335,000 | $ 2,092,000 | $ 335,000 | $ 2,092,000 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 148,326,000 | $ 131,933,000 |
Accumulated depreciation and amortization | (25,726,000) | (5,882,000) |
Property and equipment placed in service, net | 122,600,000 | 126,051,000 |
Construction in progress AVLP equipment | 9,444,000 | 9,400,000 |
Deposits on cryptocurrency machines | 11,328,000 | |
Property, plant and equipment, net | 132,044,000 | 146,779,000 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,796,000 | 10,428,000 |
Bitcoin mining equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 50,640,000 | 42,438,000 |
Crane rental equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 34,341,000 | 32,453,000 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,692,000 | 2,567,000 |
Computer Software, Intangible Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 23,517,000 | 23,168,000 |
Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 15,983,000 | 15,983,000 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,797,000 | 3,314,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 682,000 | 610,000 |
Oil and Gas [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,878,000 | $ 972,000 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 7,805,000 | $ 2,779,000 | $ 20,047,000 | $ 7,742,000 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 18,235,000 | $ 35,395,000 |
Accumulated amortization | (2,753,000) | (2,102,000) |
Total definite-lived intangible assets | 15,482,000 | 33,786,000 |
Intangible assets, net | 16,980,000 | 34,786,000 |
Developed technology [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 7,984,000 | 24,584,000 |
Developed technology [Member] | Minimum [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life | 3 years | |
Developed technology [Member] | Maximum [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life | 8 years | |
Customer Lists [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 5,755,000 | 5,865,000 |
Customer Lists [Member] | Minimum [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life | 8 years | |
Customer Lists [Member] | Maximum [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life | 10 years | |
Trade Names [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 3,916,000 | 4,316,000 |
Trade Names [Member] | Minimum [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life | 5 years | |
Trade Names [Member] | Maximum [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life | 10 years | |
Domain name and other intangible assets [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life | 5 years | |
Intangible assets, gross | $ 580,000 | 630,000 |
Trademarks and Trade Names [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,498,000 | $ 1,493,000 |
INTANGIBLE ASSETS, NET (Detai_2
INTANGIBLE ASSETS, NET (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 254,000 | $ 223,000 | $ 761,000 | $ 381,000 |
INTANGIBLE ASSETS, NET (Detai_3
INTANGIBLE ASSETS, NET (Details 2) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 507,000 | |
2024 | 2,026,000 | |
2025 | 1,926,000 | |
2026 | 1,826,000 | |
2027 | 1,826,000 | |
Thereafter | 7,371,000 | |
Finite-Lived Intangible Assets, Net | $ 15,482,000 | $ 33,786,000 |
INTANGIBLE ASSETS, NET (Detai_4
INTANGIBLE ASSETS, NET (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible asset, useful life | 9 years 6 months |
Royalty payments description | Royalty payments are estimated by applying royalty rates of 18% for patents and developed technology and 0.25% for trademarks. The resulting net annual royalty payments are then discounted to present value using a discount factor of 25.7%. |
GOODWILL (Details)
GOODWILL (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Disclosure Goodwill Abstract | |
Beginning balance | $ 27,902,000 |
Acquisition of ROI | 17,000 |
Impairment of goodwill | (18,570,000) |
Effect of exchange rate changes | (376,000) |
Ending balance | $ 8,973,000 |
GOODWILL (Details Narrative)
GOODWILL (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Goodwill | $ 8,973,000 | $ 27,902,000 |
AVLP Convertible Promissory Notes [Member] | ||
Debt Instrument [Line Items] | ||
Discount rates | 26.70% | |
Goodwill | $ 18,600,000 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) | Mar. 06, 2023 USD ($) |
ROI Acquisition [Member] | |
Business Acquisition [Line Items] | |
Common stock | $ 287,000 |
BUSINESS COMBINATION (Details 1
BUSINESS COMBINATION (Details 1) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Business Combination and Asset Acquisition [Abstract] | |
Total purchase consideration | $ 287,000 |
Fair value of non-controlling interest | 6,357,000 |
Total consideration | 6,644,000 |
Cash | 67,000 |
Investment in equity securities | 8,076,000 |
Prepaid expenses and other current assets | 172,000 |
Property and equipment, net | 4,109,000 |
Right-of-use assets | 339,000 |
Accounts payable and accrued expenses | (5,790,000) |
Lease liabilities | (346,000) |
Net assets acquired | 6,627,000 |
Goodwill | $ 17,000 |
INVESTMENTS - RELATED PARTIES (
INVESTMENTS - RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Interest income, related party | $ 287,000 | $ 292,000 | |||
Avalanche international Corp and Alzamend [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Investment interest rate | 8% | 8% | |||
Investment due date | Dec. 31, 2023 | Dec. 31, 2023 | |||
Investment in promissory note of Ault & Company | $ 2,500,000 | $ 2,500,000 | |||
Accrued interest receivable Ault & Company | 518,000 | 368,000 | |||
Total investment in promissory notes, related parties | 3,018,000 | $ 2,868,000 | |||
Interest income, related party | $ 50,000 | $ 50,000 | $ 150,000 | $ 150,000 |
INVESTMENTS - RELATED PARTIES_2
INVESTMENTS - RELATED PARTIES (Details 1) - Common Stock [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Cost | $ 24,688,000 | $ 24,673,000 |
Gross unrealized losses | (21,976,000) | (18,224,000) |
Fair value | $ 2,712,000 | $ 6,449,000 |
INVESTMENTS - RELATED PARTIES_3
INVESTMENTS - RELATED PARTIES (Details 2) - Alzamend [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | $ 5,836,000 | $ 8,845,000 | $ 6,449,000 | $ 13,230,000 |
Investment in common stock of Alzamend | 177,000 | 15,000 | 4,840,000 | |
Unrealized loss in common stock of Alzamend | (3,124,000) | 3,372,000 | (3,752,000) | (5,676,000) |
Ending Balance | $ 2,712,000 | $ 12,394,000 | $ 2,712,000 | $ 12,394,000 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 36,883,000 | $ 20,027,000 |
Accrued payroll and payroll taxes | 12,420,000 | 9,789,000 |
Financial instrument liabilities | 863,000 | 651,000 |
Interest payable | 3,946,000 | 3,207,000 |
Accrued legal | 4,390,000 | 3,168,000 |
Accrued lender profit participation rights | 2,497,000 | 6,000,000 |
Related party advances | 68,000 | 352,000 |
Other accrued expenses | 27,146,000 | 17,586,000 |
Total | $ 88,213,000 | $ 60,780,000 |
DIVIDEND PAYABLE IN TURNONGRE_2
DIVIDEND PAYABLE IN TURNONGREEN COMMON STOCK (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 USD ($) shares | |
Dividend Payable In Turnongreen Common Stock | |
Dividend payable shares | 115,100,000 |
Shares purchased | 115,100,000 |
Non-controlling interest | $ | $ 10,700,000 |
PREFERRED STOCK LIABILITY (Deta
PREFERRED STOCK LIABILITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 28, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Loss on extinguishment of debt | $ 100,000 | |||||
Net loss | $ (21,771,000) | $ (7,271,000) | $ (131,100,000) | $ (61,807,000) | ||
Securities Purchase Agreement [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Shares sold | 100,000 | |||||
Preferred stock liability, stated value | $ 100 | |||||
Securities Purchase Agreement [Member] | Series E Convertible Preferred Liability [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Preferred stock liability, shares | 83,000 | 83,000 | 83,000 | |||
Securities Purchase Agreement [Member] | Series F Convertible Preferred Liability [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Preferred stock liability, shares | 1,000 | 1,000 | 1,000 | |||
Shares converted | 1,000 | 1,000 | ||||
Net loss | $ 300,000 | |||||
Securities Purchase Agreement [Member] | Series G Convertible Preferred Liability [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Preferred stock liability, shares | 16,000 | 16,000 | 16,000 | |||
Shares converted | 6,756 | 6,756 | ||||
Net loss | $ 300,000 | |||||
Securities Purchase Agreement [Member] | Companys Common Stock [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Converted aggregate share | 143,402 | 143,402 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Redeemable Noncontrolling Interests In Equity Of Subsidiary Liability | |
Redeemable noncontrolling interests at beginning | $ 117,993,000 |
Redemption of ADRT common stock | (120,064,000) |
Remeasurement of carrying value to redemption value | 4,250,000 |
Redeemable noncontrolling interests at ending | $ 2,179,000 |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY (Details Narrative) | 1 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Redeemable Noncontrolling Interests In Equity Of Subsidiary Liability | |
Redeemable noncontrolling interests in equity of subsidiaries | $ 2,200,000 |
Stock redeemed during the period, shares | shares | 11,300,000 |
Share Price | $ / shares | $ 10.61 |
Stock redeemed during the period, value | $ 120,000,000 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | ||
Total notes payable | $ 55,089,000 | $ 81,777,000 |
Unamortized debt discounts | (3,623,000) | (12,325,000) |
Total notes payable, net | 51,466,000 | 69,452,000 |
Less: current portion | (30,255,000) | (39,621,000) |
Notes payable - long-term portion | $ 21,211,000 | 29,831,000 |
Circle 8 Revolving Credit Facility [Member] | ||
Short-Term Debt [Line Items] | ||
Collateral | Circle 8 cranes | |
Interest rate | 8.40% | |
Due date | Dec. 16, 2025 | |
Total notes payable | $ 16,960,000 | 14,724,000 |
Secured promissory notes 8.5 percent [Member] | ||
Short-Term Debt [Line Items] | ||
Collateral | Deposit accounts, 19,389 Antminers, BNI Montana assets, Circle 8 membership interests, Florida property, Michigan property, aircraft | |
Interest rate | 8.50% | |
Due date | May 07, 2024 | |
Total notes payable | $ 22,749,000 | 17,389,000 |
Guarantors | Ault & Company, Ault Lending, Sentinum, Alliance Cloud Services, Inc., Ault Aviation, LLC, Third Avenue Apartments LLC, BNI Montana, LLC, Milton C. Ault, III | |
Promissory Note 16 Percent [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 16% | |
Due date | Dec. 16, 2023 | |
Total notes payable | $ 2,662,000 | 17,456,000 |
Guarantors | Ault & Company, Sentinum, Ault Lending, Milton C. Ault, III | |
Circle 8 equipment financing notes [Member] | ||
Short-Term Debt [Line Items] | ||
Collateral | Circle 8 equipment | |
Interest rate | 7.20% | |
Total notes payable | $ 7,375,000 | 10,677,000 |
Circle 8 equipment financing notes [Member] | Minimum [Member] | ||
Short-Term Debt [Line Items] | ||
Due date | Mar. 15, 2024 | |
Circle 8 equipment financing notes [Member] | Maximum [Member] | ||
Short-Term Debt [Line Items] | ||
Due date | Nov. 15, 2026 | |
Secured promissory notes 3 percent [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 3% | |
Total notes payable | 5,672,000 | |
Secured Promissory Notes 8 Percent [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Total notes payable | $ 1,800,000 | |
Shortrm Bank Credit Facilities [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 5.70% | |
Total notes payable | $ 2,056,000 | 1,702,000 |
XBTO Trading Note Payable [Member] | ||
Short-Term Debt [Line Items] | ||
Collateral | 2,482 Antminers | |
Interest rate | 12.50% | |
Due date | Dec. 30, 2023 | |
Total notes payable | $ 1,087,000 | 2,749,000 |
Secured promissory notes 10 percent [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 10% | |
Total notes payable | 8,789,000 | |
SMCLine of Credit [Member] | ||
Short-Term Debt [Line Items] | ||
Collateral | SMC assets | |
Interest rate | 8% | |
Due date | Oct. 14, 2025 | |
Total notes payable | 1,761,000 | |
Other [Member] | ||
Short-Term Debt [Line Items] | ||
Total notes payable | $ 400,000 | $ 858,000 |
NOTES PAYABLE (Details 1)
NOTES PAYABLE (Details 1) | Sep. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 12,546,000 |
2024 | 23,405,000 |
2025 | 18,697,000 |
2026 | 441,000 |
Total | $ 55,089,000 |
NOTES PAYABLE (Details 2)
NOTES PAYABLE (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Disclosure [Abstract] | ||||
Contractual interest expense | $ 3,262,000 | $ 2,263,000 | $ 5,002,000 | $ 4,373,000 |
Forbearance fees | 518,000 | 7,319,000 | 1,203,000 | |
Amortization of debt discount | 634,000 | 104,000 | 18,216,000 | 26,487,000 |
Total interest expense | $ 4,414,000 | $ 2,367,000 | $ 30,537,000 | $ 32,063,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) | 1 Months Ended |
Jul. 19, 2023 | |
Secured promissory notes 8.5 percent [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Amendment to 8.5% secured promissory notes, description | Company and certain of its subsidiaries entered into an amendment agreement with the institutional investors and increased the principal balance of the secured promissory notes by an additional $8.8 million. The net proceeds to the Company from the amendment agreement were $7.5 million. |
NOTES PAYABLE, RELATED PARTY (D
NOTES PAYABLE, RELATED PARTY (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | ||
Notes payable, related party | $ 16,225,000 | |
Loan Agreement [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 9.50% | |
Notes payable, related party | $ 4,580,000 | |
Demand Promissory Note 12 Percent [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 12% | |
Notes payable, related party | $ 1,100,000 | |
Demand Promissory Note 10 Percent [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 10% | |
Notes payable, related party | $ 10,545,000 |
NOTES PAYABLE, RELATED PARTY _2
NOTES PAYABLE, RELATED PARTY (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Notes Payable Related Party | ||||
Interest income, related party | $ 287,000 | $ 292,000 |
NOTES PAYABLE, RELATED PARTY _3
NOTES PAYABLE, RELATED PARTY (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | |
Jun. 08, 2023 | Aug. 31, 2023 | Sep. 30, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Advance from related party | $ 4,600 | ||
Secured Promissory Notes [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Ault & company loan agreement, description | Company assumed $11.6 million of secured promissory notes previously issued by the Company for which the Company has issued term notes to Ault & Company in the same amount. One term note has a principal amount of $1.1 million and bears interest at 12% and the second term note has a principal amount of $10.5 million and bears interest at 10%. | ||
Ault And Company [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Principal amount | $ 10,000 | ||
Interest rate | 9.50% |
CONVERTIBLE NOTES (Details)
CONVERTIBLE NOTES (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total convertible notes payable | $ 21,831,000 | $ 12,887,000 |
Less: unamortized debt discounts | (3,777,000) | (111,000) |
Total convertible notes payable, net of financing | 18,054,000 | 12,776,000 |
Less: current portion | (8,601,000) | (1,325,000) |
Convertible notes payable, net of financing cost | $ 9,453,000 | 11,451,000 |
Convertible Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Conversion price (in dollars per share) | $ 4 | |
Weighted average interest rate | 4% | |
Due date | May 10, 2024 | |
Total convertible notes payable | 660,000 | |
Convertible Promissory Note OID Only [Member] | ||
Debt Instrument [Line Items] | ||
Due date | Sep. 28, 2024 | |
Total convertible notes payable | $ 2,200,000 | |
Conversion price per share, description | 90% of 5-day VWAP | |
AVLP Convertible Promissory Notes [Member] | ||
Debt Instrument [Line Items] | ||
Conversion price (in dollars per share) | $ 0.35 | |
Weighted average interest rate | 7% | |
Due date | Aug. 22, 2025 | |
Total convertible notes payable | $ 9,911,000 | 9,911,000 |
GIGA senior secured convertible notes [Member] | ||
Debt Instrument [Line Items] | ||
Conversion price (in dollars per share) | $ 0.25 | |
Weighted average interest rate | 18% | |
Due date | Oct. 11, 2023 | |
Total convertible notes payable | $ 2,317,000 | |
ROI Senior Secured Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Conversion price (in dollars per share) | $ 3.28 | |
Due date | Apr. 27, 2024 | |
Total convertible notes payable | $ 6,875,000 | |
Fair Value Of Embedded Derivative [Member] | ||
Debt Instrument [Line Items] | ||
Total convertible notes payable | $ 528,000 | $ 2,316,000 |
CONVERTIBLE NOTES (Details 1)
CONVERTIBLE NOTES (Details 1) | Sep. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 12,546,000 |
2024 | 23,405,000 |
2025 | 18,697,000 |
Convertible notes payable | 55,089,000 |
Convertible Debt [Member] | |
Debt Instrument [Line Items] | |
2023 | 2,317,000 |
2024 | 9,075,000 |
2025 | 10,439,000 |
Convertible notes payable | $ 21,831,000 |
CONVERTIBLE NOTES (Details 2)
CONVERTIBLE NOTES (Details 2) | 5 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Contractual term in years | 2 years 8 months 12 days | ||
Volatility | 111% | 82% | |
Dividend yield | 0% | 0% | |
Dividend yield | 0% | ||
Risk-free interest rate | 3.50% | 4% | |
ROI [Member] | |||
Contractual term in years | 1 year | ||
Minimum [Member] | |||
Contractual term in years | 7 months 6 days | ||
Volatility | 75% | ||
Risk-free interest rate | 4.60% | ||
Maximum [Member] | |||
Contractual term in years | 2 years | ||
Volatility | 140% | ||
Risk-free interest rate | 5.30% |
CONVERTIBLE NOTES (Details 3)
CONVERTIBLE NOTES (Details 3) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Convertible Notes | |
Beginning balance | $ 2,316,000 |
Fair value of embedded conversion options issued | 1,652,000 |
Change in fair value | (3,440,000) |
Ending balance | $ 528,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued contingent loss | $ 4,400,000 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 14, 2022 | Jun. 09, 2022 | Feb. 25, 2022 | Sep. 30, 2023 | Mar. 28, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | |
Class of Stock [Line Items] | |||||||
Issuance of common stock for restricted stock awards | 4,974 | ||||||
SMC and ROI [Member] | |||||||
Class of Stock [Line Items] | |||||||
Sale of common stock | $ 2,300,000 | ||||||
At The Market Issuance Sales Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of common stock | $ 10,000,000 | 21,200,000 | |||||
At The Market Issuance Sales Agreement [Member] | Series D Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of common stock | $ 46,400,000 | $ 2,900,000 | |||||
Sold an aggregate shares | 252,359 | ||||||
At The Market Issuance Sales Agreement [Member] | Wilson Davis And Co Inc [Member] | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of common stock | $ 200,000,000 | $ 4,200,000 | |||||
Securities Purchase Agreement [Member] | |||||||
Class of Stock [Line Items] | |||||||
Sold an aggregate shares | 100,000 | ||||||
Securities Purchase Agreement [Member] | Series F Convertible Preferred Liability [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares converted | 1,000 | 1,000 | |||||
Securities Purchase Agreement [Member] | Series G Convertible Preferred Liability [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares converted | 6,756 | 6,756 | |||||
Securities Purchase Agreement [Member] | Companys Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Converted aggregate share | 143,402 | 143,402 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income Tax Rate | (2.00%) | 1.80% | 0.40% | 0.60% |
Income tax provision | $ 600,000 | $ 100,000 | $ 500,000 | $ 400,000 |
Federal statutory income tax rate | 21% |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 71,000 | 91,000 |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 19,000 | 21,000 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 7,000 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 52,000 | 62,000 |
Convertible notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 1,000 |
SEGMENT AND CUSTOMERS INFORMA_3
SEGMENT AND CUSTOMERS INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue, cryptocurrency mining | $ 23,273,000 | $ 11,398,000 | ||
Income (loss) from operations | $ (21,903,000) | $ (7,009,000) | (102,427,000) | (28,150,000) |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 28,164,000 | 27,031,000 | 54,594,000 | 43,539,000 |
Revenue, cryptocurrency mining | 7,558,000 | 3,874,000 | 23,273,000 | 11,398,000 |
Revenue, lending and trading activities | (249,000) | 13,360,000 | 4,337,000 | 32,224,000 |
Revenue, crane operations | 12,490,000 | 37,726,000 | ||
Total revenues | 47,963,000 | 44,265,000 | 119,930,000 | 87,161,000 |
Depreciation and amortization expense | 8,059,000 | 4,016,000 | 20,808,000 | 9,491,000 |
Income (loss) from operations | (21,903,000) | (7,009,000) | (102,427,000) | (28,150,000) |
Capital expenditures | 12,305,000 | 7,296,000 | 18,134,000 | 80,058,000 |
Identifiable assets | 279,860,000 | 279,860,000 | ||
Assets of discontinued operations | 98,596,000 | 98,596,000 | ||
Total identifiable assets | 378,456,000 | 378,456,000 | ||
Operating Segments [Member] | GIGA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 10,275,000 | 7,781,000 | 27,723,000 | 21,530,000 |
Revenue, cryptocurrency mining | ||||
Revenue, lending and trading activities | ||||
Revenue, crane operations | ||||
Total revenues | 10,275,000 | 7,781,000 | 27,723,000 | 21,530,000 |
Depreciation and amortization expense | 286,000 | 740,000 | 852,000 | 1,259,000 |
Income (loss) from operations | (503,000) | (661,000) | (5,620,000) | (1,881,000) |
Capital expenditures | 275,000 | 327,000 | 410,000 | 612,000 |
Identifiable assets | 36,917,000 | 36,917,000 | ||
Operating Segments [Member] | Turn On Green [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,166,000 | 1,662,000 | 2,766,000 | 3,853,000 |
Revenue, cryptocurrency mining | ||||
Revenue, lending and trading activities | ||||
Revenue, crane operations | ||||
Total revenues | 1,166,000 | 1,662,000 | 2,766,000 | 3,853,000 |
Depreciation and amortization expense | 24,000 | 393,000 | 68,000 | 403,000 |
Income (loss) from operations | (1,498,000) | (957,000) | (4,067,000) | (2,577,000) |
Capital expenditures | 121,000 | 51,000 | 131,000 | 176,000 |
Identifiable assets | 5,461,000 | 5,461,000 | ||
Operating Segments [Member] | Fintech [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 201,000 | 220,000 | ||
Revenue, cryptocurrency mining | ||||
Revenue, lending and trading activities | (249,000) | 13,360,000 | 4,337,000 | 32,224,000 |
Revenue, crane operations | ||||
Total revenues | (249,000) | 13,561,000 | 4,337,000 | 32,444,000 |
Depreciation and amortization expense | 172,000 | 240,000 | ||
Income (loss) from operations | (1,039,000) | 3,786,000 | 1,091,000 | 4,212,000 |
Capital expenditures | 890,000 | 1,739,000 | ||
Identifiable assets | 24,727,000 | 24,727,000 | ||
Operating Segments [Member] | Sentinum [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 333,000 | 273,000 | 1,116,000 | 822,000 |
Revenue, cryptocurrency mining | 7,558,000 | 3,874,000 | 23,273,000 | 11,398,000 |
Revenue, lending and trading activities | ||||
Revenue, crane operations | ||||
Total revenues | 7,891,000 | 4,147,000 | 24,389,000 | 12,220,000 |
Depreciation and amortization expense | 5,792,000 | 2,809,000 | 14,362,000 | 6,949,000 |
Income (loss) from operations | (2,661,000) | (4,322,000) | (4,363,000) | (8,139,000) |
Capital expenditures | 261,000 | 5,915,000 | 1,426,000 | 77,299,000 |
Identifiable assets | 63,327,000 | 63,327,000 | ||
Operating Segments [Member] | Ault Disruptive [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | ||||
Revenue, cryptocurrency mining | ||||
Revenue, lending and trading activities | ||||
Revenue, crane operations | ||||
Total revenues | ||||
Depreciation and amortization expense | ||||
Income (loss) from operations | (214,000) | (314,000) | (1,052,000) | (1,100,000) |
Capital expenditures | ||||
Identifiable assets | 2,465,000 | 2,465,000 | ||
Operating Segments [Member] | SMC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
Revenue, cryptocurrency mining | ||||
Revenue, lending and trading activities | ||||
Revenue, crane operations | ||||
Total revenues | 15,931,000 | 17,114,000 | 21,939,000 | 17,114,000 |
Depreciation and amortization expense | 338,000 | 166,000 | 779,000 | 166,000 |
Income (loss) from operations | 181,000 | 597,000 | (4,598,000) | 597,000 |
Capital expenditures | 199,000 | 66,000 | 383,000 | 66,000 |
Identifiable assets | 36,653,000 | 36,653,000 | ||
Operating Segments [Member] | Energy [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 441,000 | 987,000 | ||
Revenue, cryptocurrency mining | ||||
Revenue, lending and trading activities | ||||
Revenue, crane operations | 12,490,000 | 37,726,000 | ||
Total revenues | 12,931,000 | 38,713,000 | ||
Depreciation and amortization expense | 1,073,000 | 3,053,000 | ||
Income (loss) from operations | 2,505,000 | (30,216,000) | ||
Capital expenditures | 11,135,000 | 12,471,000 | ||
Identifiable assets | 73,447,000 | 73,447,000 | ||
Operating Segments [Member] | ROI [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 18,000 | 63,000 | ||
Revenue, cryptocurrency mining | ||||
Revenue, lending and trading activities | ||||
Revenue, crane operations | ||||
Total revenues | 18,000 | 63,000 | ||
Depreciation and amortization expense | 32,000 | 152,000 | ||
Income (loss) from operations | (13,315,000) | (33,590,000) | ||
Capital expenditures | 407,000 | |||
Identifiable assets | 10,939,000 | 10,939,000 | ||
Operating Segments [Member] | Holding Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | ||||
Revenue, cryptocurrency mining | ||||
Revenue, lending and trading activities | ||||
Revenue, crane operations | ||||
Total revenues | ||||
Depreciation and amortization expense | 514,000 | (264,000) | 1,542,000 | 474,000 |
Income (loss) from operations | (5,359,000) | (5,138,000) | (20,012,000) | (19,262,000) |
Capital expenditures | 314,000 | $ 47,000 | 2,906,000 | $ 166,000 |
Identifiable assets | $ 25,924,000 | $ 25,924,000 |
CONCENTRATIONS OF CREDIT AND _3
CONCENTRATIONS OF CREDIT AND REVENUE RISK (Details) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounts Receivable [Member] | Customer A [Member] | |||||
Product Information [Line Items] | |||||
Percentage of revenue | 13% | ||||
Accounts Receivable [Member] | Customer B [Member] | |||||
Product Information [Line Items] | |||||
Percentage of revenue | 18% | 14% | |||
Revenue Benchmark [Member] | Customer V [Member] | |||||
Product Information [Line Items] | |||||
Percentage of revenue | 10% | ||||
Revenue Benchmark [Member] | Customer W [Member] | |||||
Product Information [Line Items] | |||||
Percentage of revenue | 13% | ||||
Revenue Benchmark [Member] | Customer X [Member] | |||||
Product Information [Line Items] | |||||
Percentage of revenue | 12% | 17% | |||
Revenue Benchmark [Member] | Customer Y [Member] | |||||
Product Information [Line Items] | |||||
Percentage of revenue | 11% | ||||
Revenue Benchmark [Member] | Customer Z [Member] | |||||
Product Information [Line Items] | |||||
Percentage of revenue | 10% |
CONCENTRATIONS OF CREDIT AND _4
CONCENTRATIONS OF CREDIT AND REVENUE RISK (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member] | |
Product Information [Line Items] | |
Percentage of revenue | 10% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($) | 1 Months Ended | ||||||
Nov. 06, 2023 | Oct. 13, 2023 | Oct. 10, 2023 | Nov. 17, 2023 | Nov. 15, 2023 | Oct. 31, 2023 | Oct. 05, 2023 | |
Subsequent Event [Line Items] | |||||||
Note conversions, amount | $ 500,000 | ||||||
Note conversions, shares | 2,100,000 | ||||||
Senior secured convertible note, related party description | (i) cancellation of $4.6 million of cash loaned by Ault & Company to the Company since June 8, 2023 pursuant to the loan agreement; (ii) cancellation of $11.6 million of term loans made by the Company to Ault & Company in exchange for Ault & Company assuming liability for the payment of $11.6 million of secured notes; and (iii) the retirement of $1.25 million stated value of 125,000 shares of the Company’s Series B Convertible Preferred Stock (representing all shares issued and outstanding of that series) being transferred from Ault & Company to the Company. | ||||||
Debt instrument, maturity date | Oct. 12, 2028 | ||||||
Warrant share purchase | 47,685,988 | ||||||
Exercise price of warrants | $ 0.1837 | ||||||
Securities purchase agreement description | Company agreed to sell to Ault & Company up to 50,000 shares of Series C convertible preferred stock and warrants to purchase up to 370 million shares of common stock for a total purchase price of up to $50 million, of which up to $17.5 million of the Note may be tendered for cancellation. The consummation of the transactions contemplated by the SPA, specifically the conversion of the Series C convertible preferred stock and the exercise of the warrants in an aggregate number in excess of 19.99% on the execution date of the Agreement, are subject to various customary closing conditions as well as regulatory and stockholder approval. | ||||||
Preferred stock description | Company purchased from ROI 603.44 shares of ROI’s newly designated Series D Convertible Preferred Stock for a total purchase price of $15.1 million. The purchase price was paid by the cancellation of $15.1 million of cash advances made by the Company to ROI between January 1, 2023 and November 9, 2023. The preferred shares each have a stated value of $25,000 per share and each preferred share is convertible into a number of shares of ROI’s common stock determined by dividing the stated value by $0.51, or an aggregate of 29.6 million shares of ROI common stock, subject to adjustment in the event of an issuance of ROI common stock at a price per share lower than the conversion price, as well as upon customary stock splits, stock dividends, combinations or similar events. The preferred shares holders are entitled to receive dividends at a rate of 10% per annum from issuance until November 14, 2033. | ||||||
Chief Executive Officer [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Loan Payable | $ 262,500 | ||||||
Original issue discount | $ 12,500 | ||||||
Repayment of loan payable | $ 52,000 | ||||||
Sales Agreement [Member] | Preferred ATM Offering [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Number of common stock sold | 54,200,000 | ||||||
Proceeds from offering | $ 10,000,000 | ||||||
Note [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Face amount | $ 17,519,832 | ||||||
Debt instrument, purchase price | $ 17,519,832 | ||||||
Interest rate | 10% |