Mining Performance - For the three months ended June 30, 2024, Gryphon mined approximately 84 bitcoins, a decrease of 55% compared to 187 bitcoins mined in the same period of 2023[124] - Gryphon's mining revenues for Q2 2024 were $5,515,000, representing a 10.9% increase from $4,963,000 in Q2 2023[126] - Mining revenues increased to $13,005,000 for the six months ended June 30, 2024, from $9,803,000 for the same period in 2023, representing a growth of $3,202,000 or 32.7%[138] Cost and Revenue Analysis - The cost to mine one bitcoin increased to $45,452 in Q2 2024, up from $15,096 in Q2 2023, reflecting a significant rise in operational costs[126] - Gryphon's breakeven cost of total BTC equivalent was $45,452 in Q2 2024, compared to $14,115 in Q2 2023, highlighting increased operational challenges[126] - The average value of one mined bitcoin in Q2 2024 was $65,655, compared to $26,540 in Q2 2023, indicating a substantial increase in bitcoin prices[126] - The average value of Bitcoin rose to $59,000 for the six months ended June 30, 2024, compared to $26,000 for the same period in 2023, an increase of $34,000 or 131%[138] - Total revenues for the six months ended June 30, 2024, were $13,005,000, up from $10,359,000 in 2023, reflecting a growth of $2,646,000 or 25.5%[136] Operating Expenses - Total operating expenses increased to $20,431,000 for the six months ended June 30, 2024, from $14,590,000 in 2023, an increase of $5,841,000 or 40.0%[136] - General and administrative expenses surged to $6,289,000 for the six months ended June 30, 2024, from $2,446,000 in 2023, marking an increase of $3,843,000 or 157.1%[140] - General and administrative expenses surged to $3,828,000 for the three months ended June 30, 2024, compared to $1,092,000 in 2023, marking a 250.6% increase[159] Financial Losses - Loss from operations increased to $(7,426,000) for the six months ended June 30, 2024, compared to $(4,231,000) in 2023, a rise of $3,195,000 or 75.5%[136] - The Company reported a loss from operations of $5,866,000 for the three months ended June 30, 2024, compared to a loss of $2,684,000 in 2023, reflecting an increase of $3,182,000 or 118.6%[155] - The Company reported a net loss of $(15,753,000) for the six months ended June 30, 2024, compared to $(9,533,000) in 2023[195] Cash Flow and Financing - Cash and cash equivalents as of June 30, 2024, were $1,219,000, up from $915,000 as of December 31, 2023[171] - The Company anticipates that its current cash levels will not be sufficient to meet its operational needs for at least the next 12 months, indicating a need for additional capital resources[172] - Net cash used in operating activities for the six months ended June 30, 2024, was approximately $(782,000), compared to $2,676,000 in 2023, reflecting a decrease in cash proceeds from digital currency sales[176] - Net cash provided by financing activities was approximately $2,040,000 for the six months ended June 30, 2024, compared to $(63,000) in 2023, driven by cash proceeds from the issuance of common stock[177] Interest and Unrealized Gains - Interest expense increased to $620,000 for the six months ended June 30, 2024, from $368,000 in 2023, an increase of $252,000 or 68.5%[151] - The Company recognized a $1,385,000 unrealized gain on digital assets as of June 30, 2024, following the implementation of ASU No. 2023-08[147] - The Company recognized a $318,000 unrealized gain on digital assets as of June 30, 2024, following the implementation of ASU No. 2023-08[166] Corporate Strategy and ESG - Gryphon operates approximately 8,800 bitcoin ASIC mining computers, utilizing 28 megawatts of power at its primary hosting facility in New York, which relies on renewable hydro energy[123] - Gryphon's strategy focuses on ESG-led mining, aiming to create a net carbon neutral bitcoin miner by partnering with power hosting providers committed to climate science[123] Legal and Compliance Issues - The company was involved in litigation with Sphere 3D, alleging breach of contract and fiduciary duty, with Gryphon filing counterclaims against Sphere 3D[205][206] - The Core Complaint against the company sought damages of $100 million, but a settlement was reached, dismissing all claims against the company[213] - The company received a PPP Loan of $2.2 million, which was previously forgiven, but the SBA is reviewing this determination for potential reversal[215][216] - The company is cooperating with a DOJ inquiry regarding the PPP Loan, with no formal demands for repayment made yet[217] Internal Controls and Governance - As of June 30, 2024, the company's disclosure controls and procedures were deemed ineffective due to insufficient staffing in the accounting and financial reporting department[200] - The identified material weakness could lead to a reasonable possibility of material misstatements in financial statements not being prevented or detected timely[201] - The company plans to enhance internal resources for technical accounting and financial reporting, potentially hiring a full-time person dedicated to internal controls[201] - The company is utilizing external third-party audit firms to improve controls related to its material weaknesses[202] - The company is committed to ongoing evaluation and improvement of its internal control over financial reporting[203] Debt and Financial Obligations - The BTC Note was amended to extend the maturity date to March 2026 and increase the interest rate to 6% per annum[182] - The Company has a collateral coverage ratio requirement of 110% under the BTC Note, and as of June 30, 2024, it was not in breach of this ratio[185] - The merger and acquisition cost was $394,000 related to the disposal of its subsidiary MJ Freeway, which occurred on February 8, 2024[154]

Financial Data and Key Metrics Changes - For Q1 2024, the company reported a net loss of $11.7 million, compared to a net loss of $6.9 million in Q1 2023, indicating a deterioration in financial performance [6] - Adjusted EBITDA for Q1 2024 was approximately $1.9 million, down from $4.2 million in Q1 2023, reflecting challenges in operational effectiveness [7] - The average breakeven cost for bitcoin mining increased to approximately $34,000 in Q1 2024 from $23,800 in Q4 2023, driven by rising energy costs and mining difficulty [14][25] Business Line Data and Key Metrics Changes - The company mined approximately 142 bitcoin in Q1 2024, generating mining revenues of $7.5 million, up from $4.8 million in the same period last year [14] - The daily average global hash rate increased by 88% year-over-year, contributing to the company's operational metrics [4] Market Data and Key Metrics Changes - Bitcoin's price surged from $22,830 to $52,746, a 131% increase, enhancing profitability for each bitcoin mined [5] - The company’s self-mining hash rate reached approximately 0.94 exahash per second, with plans to expand towards a target of 10 exahash [24][11] Company Strategy and Development Direction - The company aims to expand its hash rate in an accretive manner through organic growth and M&A, focusing on distressed asset acquisitions [11][21] - The management emphasizes maintaining a low-cost structure and driving operational efficiencies to remain competitive in the industry [11][10] - The company has initiated a share buyback program, allowing for the repurchase of up to $5 million of common stock, reflecting confidence in its strategy [12] Management Comments on Operating Environment and Future Outlook - Management highlighted the impact of the bitcoin halving event, which is expected to lead to industry consolidation, positioning the company as a potential consolidator [13] - The management expressed optimism about the future, citing a commitment to environmental stewardship and maintaining a carbon-neutral operation [11][10] Other Important Information - The company reported cash and cash equivalents of approximately $1.7 million and $4.2 million in bitcoin as of March 31, 2024, indicating a stable liquidity position [8] - The increase in debt reported is attributed to the structure being denominated in bitcoin, reflecting the correlation with bitcoin's price [9] Q&A Session Summary Question: Can you talk about your strategy utilizing both the ATM and the buyback? - The company views both tools as part of a good capital management strategy, considering share buybacks when the stock price is deemed unreasonably low [28][29] Question: Can you quantify the risk related to the PPP loan investigation? - Management indicated that the risk is currently unquantifiable, but the note was for about $2.2 million, with a remote probability of significant issues arising [32][36] Question: What opportunities do you see for M&A? - The company is actively exploring distressed asset acquisitions, with a focus on companies that are struggling post-halving due to lack of capital [37] Question: What are your organic growth opportunities? - Management stated that M&A will likely trigger organic growth, as they prefer to avoid significant capital raises at this time [39] Question: How do you view your debt levels? - The company clarified that its bitcoin-denominated debt is fully hedged and does not pose a risk, despite appearing larger on the balance sheet due to market valuation changes [49] Question: What is your strategy regarding geographic positioning? - The company is open to opportunities globally, prioritizing regions with good rule of law and favorable economics for operations [60][62]

Financial Performance - Total mining revenue in Q1 2024 was $7.5 million, a 56.3% increase from $4.8 million in Q1 2023[4] - The company reported a net loss of $11.7 million in Q1 2024, compared to a net loss of $6.9 million in Q1 2023[4] - Adjusted EBITDA for Q1 2024 was $1.9 million, down from $4.2 million in Q1 2023[4] - Total revenues for Q1 2024 were $7,490,000, a 47.7% increase from $5,076,000 in Q1 2023[21] - Mining activities generated revenues of $7,490,000 in Q1 2024, compared to $4,840,000 in Q1 2023, reflecting a 54.1% growth[21] - The net loss for Q1 2024 was $11,744,000, compared to a net loss of $6,910,000 in Q1 2023, indicating a 70.5% increase in losses[21] - Net loss per share for Q1 2024 was $(0.36), compared to $(0.28) in Q1 2023[21] Mining Operations - Breakeven cost per bitcoin in Q1 2024 was $34,063, significantly higher than $12,910 in Q1 2023[4] - Gryphon completed its miner upgrade program ahead of schedule, adding approximately 23 PH/s to hashing power and improving average fleet efficiency to 28.5 J/T[4] - The self-mining hash rate capacity reached approximately 0.94 EH/s following the upgrades[4] - The company mined approximately 142 Bitcoin in Q1 2024, down from 212 Bitcoin in Q1 2023[4] Expenses and Liabilities - Total operating expenses increased to $9,050,000 in Q1 2024, up from $6,764,000 in Q1 2023, representing a 33.6% rise[21] - As of March 31, 2024, total assets were $17.8 million, while total liabilities were $30.2 million[9] - The company experienced a change in fair value of notes payable, resulting in an expense of $9,638,000 in Q1 2024[24] Cash Flow and Shareholder Value - Cash and cash equivalents at the end of Q1 2024 were $1,737,000, down from $2,016,000 at the end of Q1 2023[24] - The company reported a net cash used in operating activities of $(983,000) for Q1 2024, compared to net cash provided of $1,807,000 in Q1 2023[24] - Proceeds from the issuance of common stock amounted to $1,395,000 in Q1 2024[24] - The company has authorized a stock repurchase program of up to $5 million to enhance shareholder value[4] Future Projections - Based on a projected average Bitcoin price of $70,000, the company expects a gross profit of approximately $16.6 million from current mining operations in 2024[7] Digital Asset Revenue - Digital asset revenue was reported at $(7,490,000) for Q1 2024, compared to $(4,840,000) in Q1 2023[24]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from / to Commission file number 001-39096 GRYPHON DIGITAL MINING, INC. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (Stat ...

Gryphon Digital Mining, Inc. (NASDAQ:GRYP) Q4 2023 Earnings Conference Call April 2, 2024 9:00 AM ET Company Participants Rob Chang - CEO Sim Salzman - CFO Conference Call Participants Kevin Dede - H.C. Wainwright Operator Greetings, and welcome to the Gryphon Digital Mining FY Financial Year 2023 Earnings Call. On the call are Rob Chang, Chief Executive Officer of the Company and Sim Salzman, Chief Financial Officer of the Company. Before I turn the call over to Mr. Chang, please note that statements made ...

Exhibit 99.4 AKERNA CORP. AND GRYPHON DIGITAL MINING, INC. UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION The following unaudited pro forma condensed combined financial information gives effect to the Merger and other related transactions contemplated by the Merger Agreement, as may be amended from time to time, or otherwise assumed to have occurred in advance of the Merger as defined and described in Note 1 to this unaudited pro forma condensed combined financial information. The Merger will ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-39096 GRYPHON DIGITAL MINING, INC. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (State or ot ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from / to Commission file number 001-39096 AKERNA CORP. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (State or other j ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from / to Commission file number 001-39096 AKERNA CORP. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (State or other jurisd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from / to Commission file number 001-39096 AKERNA CORP. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (State or other juris ...