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Ault Alliance(AULT) - 2021 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the nine months ended, the company reported 44millioninrevenue,adramaticincreasefromthepreviousyear,indicatingsignificantgrowth[9][12]Netincomefortheperiodwas44 million in revenue, a dramatic increase from the previous year, indicating significant growth [9][12] - Net income for the period was 1.3 million, a substantial improvement compared to a dramatic loss in the prior year [12] - The company's assets grew to 225million,althoughthisfigurewasvolatileduetomarktomarketadjustments[13]BusinessLineDataandKeyMetricsChangesThelenderscontributiontorevenueincreasedbyalmost225 million, although this figure was volatile due to mark-to-market adjustments [13] Business Line Data and Key Metrics Changes - The lender's contribution to revenue increased by almost 20 million for the year, highlighting its importance in future plans [10] - Revenue from trading activities saw a dramatic increase, with a reported gain of about 6.4milliononAlzamend,althoughthiswasmisleadingasnosharesweresold[10]Cryptorevenueexperiencedasignificantincrease,withthecompanyexpectingadramaticescalationinBitcoinminedduetonewmachinesbeingdelivered[11]MarketDataandKeyMetricsChangesGreshamWorldwide,asubsidiary,reporteda476.4 million on Alzamend, although this was misleading as no shares were sold [10] - Crypto revenue experienced a significant increase, with the company expecting a dramatic escalation in Bitcoin mined due to new machines being delivered [11] Market Data and Key Metrics Changes - Gresham Worldwide, a subsidiary, reported a 47% increase in performance compared to the previous year, benefiting from additional capital allocation [20] - The company noted volatility in its portfolio due to market fluctuations, particularly with positions in Alzamend and Mullen Technology [14][17] Company Strategy and Development Direction - The company plans to split into two separate entities, BitNile and Ault Alliance, to better reflect their distinct business models and growth trajectories [7][29] - BitNile will focus on cryptocurrency mining and data center operations, while Ault Alliance will manage other subsidiaries and seek stable, mature companies for acquisition [48][46] - The company is exploring the possibility of issuing Bitcoin as a dividend to shareholders, indicating a forward-thinking approach to capital distribution [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for significant revenue growth in the coming years, particularly with BitNile's mining operations [60] - The company acknowledged the volatility in quarterly earnings but emphasized the long-term growth story driven by blockchain technology [62] - Management noted that the current structure creates volatility but is necessary for the company's transformation and growth [13][21] Other Important Information - The company has secured the new symbol NILE for its upcoming name change to BitNile Holdings, which will take effect before the end of the year [48] - The management team emphasized the importance of transparency, committing to biweekly updates on mining activities and Bitcoin production [42] Q&A Session Summary Question: What is the outlook for the company's growth? - Management highlighted that 2021 has been a successful year with significant capital raised and a strong balance sheet, positioning the company for future growth [58] Question: How does the company plan to manage its debt? - The company reported less than 2 million in total debt, indicating a strong balance sheet and no immediate need for financing to service debt obligations [22] Question: What are the expectations for revenue from mining operations? - Management projected that with the ramp-up of mining operations, the company could achieve a run rate of approximately $300 million in revenue, depending on market conditions [36]