Hyperscale Data, Inc.(GPUS) - 2024 Q4 - Annual Report

Stock Distribution and Corporate Actions - The company announced a distribution of 5.0 million shares of Class B Common Stock to holders of Class A common stock and Series C Convertible Preferred Stock, with a record date of November 29, 2024, and a payment date of December 16, 2024[460]. - A reverse stock split of Class A common stock was executed at a ratio of one-for-thirty-five, effective November 22, 2024[461]. - The company entered into a securities purchase agreement to sell up to 50,000 shares of Series B Convertible Preferred Stock for a total purchase price of up to $50.0 million[468]. - The Series G Preferred Stock has a stated value of$1,000.00 and is convertible into shares of Class A common stock at a conversion price based on market conditions[466]. - The company issued a total of 135,957 shares of Series D preferred stock for the settlement of ELOC advances totaling $2.0 million from January 1, 2025 through April 14, 2025[519]. Financial Performance - Total revenue for the year ended December 31, 2024, was$106.66 million, a decrease of 21% from $134.85 million in 2023[480]. - Revenue from crypto assets mining decreased by$2.51 million, or 8%, to $30.6 million in 2024, primarily due to a$4.1 million decline in revenue from mined crypto assets[481][482]. - Crane operations revenue decreased by $1.72 million, or 4$47.48 million in 2024, attributed to competitive pricing pressures and lower utilization of the crane fleet[483]. - Revenues from lending and trading activities improved to $1.89 million in 2024, compared to a loss of$2.0 million in 2023, driven by realized gains and fee income[484]. - Gross margins increased to 23% in 2024 from 18% in 2023, influenced by improved performance in lending and trading activities[490]. Expenses and Impairments - Research and development expenses rose by $6.6 million to$11.01 million in 2024, primarily for the development of new platforms[491]. - Selling and marketing expenses decreased by 56% to $14.02 million in 2024, mainly due to reduced advertising costs[492]. - General and administrative expenses decreased by 48$35.25 million in 2024, largely due to the deconsolidation of SMC and lower professional fees[493][494]. - Impairment charges for property and equipment totaled $10.5 million in 2024, primarily due to increased Bitcoin mining difficulty[499]. - The company recognized a$1.5 million impairment of intangible assets in 2024, compared to a $24.7 million impairment in 2023[495]. - AVLP recognized an impairment charge of$14.0 million for property and equipment, with an estimated fair value of $0 as of December 31, 2023[501]. - Impairment of mined digital currencies was$0.5 million for the year ended December 31, 2023[502]. - Other expense, net decreased to $4.7 million for the year ended December 31, 2024, down from$91.3 million in 2023[503]. - Interest expense decreased to $19.7 million for the year ended December 31, 2024, compared to$44.3 million for 2023[505]. Cash Flow and Equity - Cash and cash equivalents were $4.6 million as of December 31, 2024, down from$6.1 million at the end of 2023[513]. - Net cash used in operating activities increased to $19.4 million for the year ended December 31, 2024, compared to$5.4 million in 2023[514]. - Net cash provided by investing activities was $3.2 million for the year ended December 31, 2024, compared to a net cash used of$29.5 million in 2023[515]. - Net cash provided by financing activities was $25.8 million for the year ended December 31, 2024, down from$37.0 million in 2023[517]. - Cumulative downward adjustments for impairments of equity securities were $6.3 million for the year ended December 31, 2024, compared to$9.6 million in 2023[511]. - Stockholders' equity reported at approximately $2.2 million, below the required$6 million for NYSE American listing standards[530]. Compliance and Future Plans - Company has reported losses from continuing operations and/or net losses in five of the most recent fiscal years ended December 31, 2023[530]. - Compliance plan submitted to NYSE American by January 17, 2025, to regain compliance within 18 months[531]. - NYSE American accepted the compliance plan on March 4, 2025, granting a listing extension until June 18, 2026[531]. - Company will undergo periodic reviews, including quarterly monitoring for compliance with the plan[531].