Financial Performance - Total revenue for the three months ended June 30, 2024, was 4,754 million for the same period in 2023[14]. - Cryptocurrency mining revenue increased to 2,055 million in the prior year[14]. - Total operating expenses rose to 8,447 million in the same period last year, reflecting a 27.6% increase[14]. - The net income for the three months ended June 30, 2024, was 10,813 million in the same period of 2023[14]. - Basic and diluted net income per share for the three months ended June 30, 2024, was 0.20 per share in the prior year[14]. - For the six months ended June 30, 2024, the company reported a net income of 22,045 for the same period in 2023[29]. Assets and Liabilities - Total current assets decreased from 2,610,000 on June 30, 2024, representing a decline of approximately 21.7%[12]. - Total liabilities increased from 75,509,000, indicating a reduction of approximately 26%[12]. - The total assets decreased from 41,595,000, a decline of about 1.5%[12]. - The company has a total shareholders' deficit of (59,637,000) at the end of 2023, showing an improvement of approximately 43%[12]. - Current liabilities surged from 70,524,000, an increase of approximately 218%[12]. - The accumulated deficit improved from (89,175,000), reflecting a reduction of about 17%[12]. Cash Flow and Financing - Cash reserves significantly dropped from 274,000, a decrease of about 90.4%[12]. - The company reported a net cash used in operating activities of 10,546 in the prior year[29]. - Cash and cash equivalents as of June 30, 2024, were 55,919[31]. - The company extinguished debt totaling 45,053[32]. Cryptocurrency Operations - The company is highly dependent on a small number of bitcoin mining equipment suppliers, which poses a risk to its operations[6]. - GRIID's cryptocurrency mining operations are solely focused on bitcoin, with significant investments in energy infrastructure and data centers across North America[26]. - The Company generated 5,475 units of cryptocurrency from mining activities during the six months ended June 30, 2024, an increase from 3,644 units in the same period of 2023, representing a growth of approximately 50.5%[54]. - The Company held 1.57 bitcoins with an average cost basis of 27,540 per bitcoin as of June 30, 2023, indicating a significant reduction in holdings[54]. - The total cryptocurrency impairment for the three months ended June 30, 2024, was 144 million in the same period of 2023[14]. Equity and Shareholder Information - The company issued 1,999,490 equity shares during the three months ended June 30, 2024, increasing the total common shares to 71,875,428[17]. - The Company incurred 17,639,000 paid as of August 14, 2024[52]. - The Company granted options to purchase 2,125,000 shares at an exercise price of 1.35 per share[100]. Risks and Challenges - The company anticipates potential challenges in maintaining its public company status and the liquidity of its securities[6]. - The Company faces uncertainties in revenue and operating results due to fluctuations in the bitcoin market and regulatory factors[6]. - GRIID's future financial viability is contingent on bitcoin prices remaining stable, highlighting the risks associated with cryptocurrency mining[30]. - The Company anticipates potential risks related to the proposed transaction with CleanSpark, including integration challenges and market conditions[6]. Operational Developments - The CleanSpark Merger Agreement includes an aggregate merger consideration of 38,000 in revenue for the three months ended June 30, 2024, compared to $0 in the same period of 2023[45]. - Two sites began hosting mining services after June 30, 2024, with Union Data Diner LLC starting on July 26, 2024[105]. - Ava Data LLC entered into PowerFlex Agreements with TVA, participating in demand response programs for monetary credits[102]. - Union Data Diner LLC increased its power supply contract demand from 780 kW to 5,000 kW for on-peak demand[103].
Adit EdTech(ADEX) - 2024 Q2 - Quarterly Report