Hyperscale Data, Inc.
For the period ended Sep 30, 2025. Filed Nov 17, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 17, 2025
GPUS$0.14-2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-15.
0001214659-25-012364
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-17.
0001214659-25-016799
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 121 previous paragraphs and 136 current paragraphs.
63 unchanged; 42 reworded; 28 added; 14 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 15 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report
In this quarterly report on Form 10-Q (the “Quarterly Report”), the “Company,” “Hyperscale Data,” “we,” “us” and “our” refer to Hyperscale Data, Inc., a Delaware corporation. Hyperscale Data operates as an artificial intelligence (“AI”) data center company anchored by Bitcoin. Through its wholly owned subsidiary, Sentinum, Inc., the Company owns and operates a large-scale data center platform that integrates AI compute infrastructure with Bitcoin mining operations under a unified, parallel compute model. This hybrid architecture enables Hyperscale Data to generate compute power for enterprise AI workloads through NVIDIA graphic processing unit clusters, while also operating high-efficiency Bitcoin mining systems that contribute to the Bitcoin network and the Company’s growing digital asset treasury.
Current report
On August 29, 2025, we entered into a sales agreement with Wilson-Davis & Co., Inc. to sell shares of our Class A common stock, having an aggregate offering price of up to $125 million from time to time, through an “at-the-market” (“ATM”) offering program. Between August 29, 2025 and November 4, 2025, we received gross proceeds of $125 million through the sale of 255.4 million shares of our Class A common stock through the ATM offering.
Current report
On September 26, 2025, Ault Lending entered into a loan and security agreement (the “Loan Agreement”) with GIGA, pursuant to which Ault Lending agreed to loan GIGA up to $10.0 million (the “Loan”), subject to the terms and conditions of the Loan Agreement. The Loan, which is evidenced by the issuance by GIGA of a15% Senior Secured Original Issue Discount Convertible Promissory Note (the “GIGA Note”) in the original principal amount of $11.0 million, was to be funded in three tranches. The first tranche, in an amount of $6.5 million, was funded on September 30, 2025, and the remaining tranches, totaling $3.5 million, are expected to be funded pursuant to the terms of the Loan Agreement. The GIGA Note, which matures on November 15, 2028, was issued as part of GIGA’s confirmed Chapter 11 plan of reorganization and is secured by substantially all of GIGA’s assets. The GIGA Note is convertible into shares of GIGA common stock at a conversion price equal to the greater of (i) $0.10 per share (the “GIGA Floor Price”), which GIGA Floor Price shall not be adjusted for stock dividends, stock splits, stock combinations and other similar transactions and (ii) the lesser of a 5% premium to the volume weighted average price during the five trading days immediately prior to the trading day immediately preceding the date of conversion into shares of common stock or $1.00.
Current report
On November 7, 2025, we entered into an amendment to the July SPA to provide for an extension of the date on which the final closing (the “Termination Date”) may occur to the later of (i) December 31, 2027, and (ii) the date that shall be one year following the date upon which the Company has completed taking the requisite action(s) to enable it to issue shares of Class A common stock to each person holding instruments entitling such person to convert all of such convertible instrument, including but not limited to the Series H Preferred Stock, into shares of Class A common stock provided, however, that Ault & Company may extend the Termination Date for an additional ninety (90) days, by notice to the Company.
Current report
On June 6, 2025, we entered into a settlement agreement with GIGA and GIGA’s senior secured lenders pursuant. On August 29, 2025, the United States Bankruptcy Court for the District of Arizona confirmed GIGA’s bankruptcy plan. Under that plan, GIGA’s senior lenders released GIGA and us in exchange for a settlement payment. That payment was made on September 30, 2025, and it is anticipated that the plan will be effective, and GIGA will emerge from bankruptcy, on November 28, 2025.
Current report
Deconsolidation of a Subsidiary of RiskOn International, Inc. (“ROI”)
Current report
During the three months ended September 30, 2025, we recognized a gain of $2.7 million in connection with the bankruptcy proceedings for a subsidiary of ROI. We deconsolidated the subsidiary as we determined that we no longer maintained a controlling financial interest in the subsidiary. The gain recognized reflects the derecognition of the subsidiary’s remaining assets, liabilities, and equity balances. We evaluated the criteria for discontinued operations and determined that the operations of the subsidiary did not meet the requirements for such classification.
Current report
Revenues from Sentinum’s crypto assets mining operations increased by $0.4 million, to $5.7 million for the three months ended September 30, 2025, compared to $5.3 million for the same period in 2024. The increase was primarily due to a $1.3 million, or 30%, increase in revenue from self-mined Bitcoin operations at Sentinum-owned and operated facilities. This increase was partially offset by the cessation of third-party hosted mining operations, which generated $0.9 million of revenue in the prior-year period but none in 2025. The increase in self-mining revenue was driven by an 88% increase in the average Bitcoin price during the three months ended September 30, 2025, compared to the same period in 2024, partially offset by a 51% increase in the average Bitcoin network difficulty level.
Current report
Revenues from our lending and trading activities decreased $5.4 million to approximately $0.1 million for the three months ended September 30, 2025, compared to $5.6 million the same period in 2024. Revenues from our lending and trading activities were $5.6 million for the three months ended September 30, 2024, driven primarily by $2.6 million in realized gains from trading activities, $2.6 million in fee income, and $0.6 million in unrealized gains on investment positions.
Current report
Other revenues were relatively consistent year-over-year, totaling $0.9 million for both the three months ended September 30, 2025 and 2024.
Current report
Research and development expenses decreased by $3.0 million for the three months ended September 30, 2025, due to decreased expenditures related to development work on ROI’s Bitnile social gaming platform.
Current report
During the three months ended September 30, 2024, due to increases in the Bitcoin mining difficulty level, which compounded the impact of the Bitcoin halving event that occurred earlier in 2024, we concluded that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of our miners to be less than their net carrying value as of September 30, 2024, and an impairment charge of $10.5 million was recognized, decreasing the net carrying value of our crypto assets mining equipment to their estimated fair value.
Current report
In addition, we recorded $1.2 million in impairment charges related to real estate assets of AGREE during the three months ended September 30, 2024.
Current report
Other Income (Expense), Net
Current report
Interest expense totaled $3.1 million for the three months ended September 30, 2025, compared to $7.8 million for the same period in 2024. Interest expense is lower due to lower debt balances as well as lower forbearance fees and amortization of debt discount.
Current report
During the three months ended September 30, 2025, we recognized a gain of $2.7 million in connection with the bankruptcy proceedings for a subsidiary of ROI. We deconsolidated the subsidiary as we determined that we no longer maintained a controlling financial interest in the subsidiary. The gain recognized reflects the derecognition of the subsidiary’s remaining assets, liabilities, and equity balances.
Current report
During the three months ended September 30, 2025, we recognized a gain on extinguishment of debt of $1.1 million related to the pay-off of an ROI note payable.
Current report
During the three months ended September 30, 2025, we recognized a loss on the sale of fixed assets of $0.7 million in connection with the sale of equipment at Circle 8.
Current report
Results of Operations for the Nine Months Ended September 30, 2025 and 2024
Current report
Research and development expenses decreased by $3.0 million for the nine months ended September 30, 2025, due to decreased expenditures related to development work on ROI’s Bitnile social gaming platform.
Current report
During the three months ended September 30, 2024, due to increases in the Bitcoin mining difficulty level, which compounded the impact of the Bitcoin halving event that occurred earlier in 2024, we concluded that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of our miners to be less than their net carrying value as of September 30, 2024, and an impairment charge of $10.5 million was recognized, decreasing the net carrying value of our crypto assets mining equipment to their estimated fair value.
Current report
Other expense, net was $4.9 million and $9.5 million for the nine months ended September 30, 2025 and 2024, respectively.
Current report
Interest expense totaled $14.6 million for the nine months ended September 30, 2025, compared to $18.8 million for the same period in 2024. Interest expense is lower due to lower debt balances as well as lower forbearance fees and amortization of debt discount.
Current report
During the three months ended September 30, 2025, we recognized a gain on extinguishment of debt of $1.1 million related to the pay-off of an ROI note payable.
Current report
During the three months ended September 30, 2025, we recognized a gain of $2.7 million in connection with the bankruptcy proceedings for a subsidiary of ROI. We deconsolidated the subsidiary as we determined that we no longer maintained a controlling financial interest in the subsidiary. The gain recognized reflects the derecognition of the subsidiary’s remaining assets, liabilities, and equity balances.
Current report
Issuance of Class A Common Stock pursuant to the ATM Offering
Current report
From October 1, 2025 through November 4, 2025, we received gross proceeds of $86.2 million through the sale of 172.7 million shares of our Class A common stock through the ATM offering.
Removed paragraphs (14)
Previous report
In this quarterly report on Form 10-Q (the “Quarterly Report”), the “Company,” “Hyperscale Data,” “we,” “us” and “our” refer to Hyperscale Data, Inc., a Delaware corporation. Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence (“AI”) ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, Ault Capital Group, Inc. (“ACG”), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies.
Previous report
n/m - not meaningful
Previous report
Revenues from our lending and trading activities increased $11.6 million to approximately $1.8 million for the three months ended June 30, 2025, compared to negative $9.8 million the same period in 2024. Revenues from our lending and trading activities were $1.8 million for the three months ended June 30, 2025, primarily due to a $1.4 million realized gain from the sale of an investment in other equity securities and $0.3 million in fee income during the three months ended June 30, 2025. Revenues from our lending and trading activities were negative $9.8 million for the three months ended June 30, 2024, primarily due to a $9.4 million unrealized loss on 2.5 million shares of White River Energy Corp. (“White River”) common stock and a $0.5 million unrealized loss from our investment in Alzamend included in revenue from lending and trading activities.
Previous report
Other revenues decreased by $0.3 million, to $0.5 million for the three months ended June 30, 2025, compared to $0.7 million in the corresponding period in 2024. This decline was primarily due to lower corporate aircraft charter revenue from third parties.
Previous report
Gross margins improved to 24% for the three months ended June 30, 2025, compared to negative 21% for the same period in 2024. The improvement was primarily driven by the strong performance of our lending and trading activities, which positively impacted gross margins in the current period, in contrast to their negative contribution in the prior-year period. In both periods, gross margins were adversely affected by low or negative contributions from our crypto asset mining operations. Excluding the impact of lending and trading activities and crypto asset mining, adjusted gross margins were 35% and 34% for the three months ended June 30, 2025 and 2024, respectively.
Previous report
Research and development expenses remained consistent at $0.1 million for both the three months ended June 30, 2025 and 2024.
Previous report
Interest expense totaled $7.6 million for the three months ended June 30, 2025, compared to $5.3 million for the same period in 2024. The increase was primarily driven by higher amortization of debt discount associated with new convertible notes issued during the second quarter of 2025. These notes included embedded derivative features and incurred transaction-related costs, which contributed to the higher non-cash interest expense recognized during the period.
Previous report
Results of Operations for the Six Months Ended June 30, 2025 and 2024
Previous report
n/m - not meaningful
Previous report
Energy revenues from Circle 8’s crane operations grew by $0.7 million, or 3%, for the six months ended June 30, 2025, compared to the same period in 2024. The increase was driven by a strong start to the year, as oil and gas companies launched new projects amid renewed optimism following the presidential inauguration. However, this early momentum slowed in the second quarter as broader economic pressures and uncertainty in commodity markets dampened demand for crane services.
Previous report
Research and development expenses remained consistent at $0.2 million for both the six months ended June 30, 2025 and 2024.
Previous report
Other Expense, Net
Previous report
Other expense, net was $5.6 million for the six months ended June 30, 2025, compared to other expense, net of $2.3 million for the six months ended June 30, 2024.
Previous report
Interest expense was $11.5 million for the six months ended June 30, 2025, a slight increase from $11.0 million for the same period in 2024.
Reworded paragraphs (42)
Previous wording
Hyperscale Data currently expects the divestiture of ACG (the “Divestiture”) to occur in the first quarter of 2026, though there can be no assurance that the Divestiture will be completed during such quarter. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of digital assets. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in extending private credit and structured finance through a licensed lending subsidiary.
Current wording
Through its other wholly owned subsidiary, Ault Capital Group, Inc. (“ACG”), the Company currently holds a portfolio of diversified businesses and strategic investments spanning commercial lending and trading, hotel operations, crane rental, AI-driven software and gaming platforms, and commercial electronics. In addition, ACG is actively engaged in extending private credit and structured finance through a licensed lending subsidiary. Hyperscale Data currently expects the divestiture of ACG (the “Divestiture”) to occur in the second quarter of 2026, though there can be no assurance that the Divestiture will be completed during such quarter. Upon the occurrence of the Divestiture, the Company would operate as a focused AI data center and Bitcoin infrastructure company.
Previous wording
On June 6, 2025, we entered into a settlement agreement (the “Agreement”) with our defense affiliate Gresham Worldwide, Inc. (“GIGA”) and GIGA’s senior secured lenders pursuant in its Chapter 11 bankruptcy proceedings. While the Agreement is subject to court approval, GIGA is expected to emerge from bankruptcy as a subsidiary of the Company on or before October 1, 2025.
Current wording
On June 6, 2025, we entered into a settlement agreement (the “Agreement”) with our defense affiliate Gresham Worldwide, Inc. (“GIGA”) and GIGA’s senior secured lenders pursuant in its Chapter 11 bankruptcy proceedings. On August 29, 2025, the United States Bankruptcy Court for the District of Arizona confirmed GIGA’s bankruptcy plan. Under that plan, GIGA’s senior lenders released GIGA and us in exchange for a settlement payment. That payment was made on September 30, 2025, and it is anticipated that the plan will be effective, and GIGA will emerge from bankruptcy, on November 28, 2025.
Previous wording
On July 31, 2025, we entered into a securities purchase agreement (the “July 2025 SPA”) with Ault & Company, Inc. (“Ault & Company”), pursuant to which we agreed to sell, in one or more closings, to Ault & Company up to 100,000 shares of Series H convertible preferred stock (“Series H Preferred Stock”) for a total purchase price of up to $100.0 million. The July 2025 SPA provides that the financing may be conducted through one or more closings. As of the date of this filing, no shares of Series H Preferred Stock have been sold, nor has the Certificate of Designations been filed with the State of Delaware, the jurisdiction where we are incorporated.
Current wording
On July 31, 2025, we entered into a securities purchase agreement (the “July 2025 SPA”) with Ault & Company, Inc. (“Ault & Company”), pursuant to which we agreed to sell, in one or more closings, to Ault & Company up to 100,000 shares of Series H convertible preferred stock (“Series H Preferred Stock”) for a total purchase price of up to $100.0 million. The July 2025 SPA provides that the financing may be conducted through one or more closings. As of the date of this filing, we have sold 4,000 shares of Series H Preferred Stock to Ault & Company.
Previous wording
On March 28, 2025, AVLP, a majority-owned subsidiary of ours, filed a voluntary petition for liquidation under Chapter 7 of the U.S. Bankruptcy Code. As a result of the filing, AVLP became subject to the control of the bankruptcy court, and we no longer maintained a controlling financial interest. Accordingly, we deconsolidated AVLP effective as of the petition date. In connection with the deconsolidation, we recognized a gain of $10.0 million, which is included in the condensed consolidated statement of operations for the six months ended June 30, 2025. We evaluated the criteria for discontinued operations and determined that the operations of AVLP did not meet the requirements for such classification.
Current wording
On March 28, 2025, AVLP, a majority-owned subsidiary of ours, filed a voluntary petition for liquidation under Chapter 7 of the U.S. Bankruptcy Code. As a result of the filing, AVLP became subject to the control of the bankruptcy court, and we no longer maintained a controlling financial interest. Accordingly, we deconsolidated AVLP effective as of the petition date. In connection with the deconsolidation, we recognized a gain of $10.0 million, which is included in the condensed consolidated statement of operations for the nine months ended September 30, 2025. We evaluated the criteria for discontinued operations and determined that the operations of AVLP did not meet the requirements for such classification.
Previous wording
On April 16, 2025, Eco Pack, a majority-owned subsidiary of ours, filed a voluntary liquidation under the insolvency regulations in the UK. As a result of the filing, we no longer maintained a controlling financial interest. Accordingly, we deconsolidated Eco Pack effective as of the filing date. In connection with the deconsolidation, we recognized a loss of $0.4 million, which is included in the condensed consolidated statement of operations for the six months ended June 30, 2025. We evaluated the criteria for discontinued operations and determined that the operations of Eco Pack did not meet the requirements for such classification.
Current wording
On April 16, 2025, Eco Pack, a majority-owned subsidiary of ours, filed a voluntary liquidation under the insolvency regulations in the UK. As a result of the filing, we no longer maintained a controlling financial interest. Accordingly, we deconsolidated Eco Pack effective as of the filing date. In connection with the deconsolidation, we recognized a loss of $0.4 million, which is included in the condensed consolidated statement of operations for the nine months ended September 30, 2025. We evaluated the criteria for discontinued operations and determined that the operations of Eco Pack did not meet the requirements for such classification.
Previous wording
Energy revenues from Circle 8’s crane operations declined slightly by $0.1 million, or 1%, for the three months ended June 30, 2025, compared to the same period in 2024. The modest decrease reflects a slowdown in demand from oil and gas customers, as many exploration projects were delayed or scaled back amid continued market uncertainty. Key contributing factors included fluctuations in crude oil prices, softer global demand, trade-related concerns, and higher borrowing costs, all of which impacted the pace of new project starts and the need for crane services.
Current wording
Energy revenues from Circle 8’s crane operations declined by $2.6 million, or 21%, for the three months ended September 30, 2025, compared to the same period in 2024. The decrease reflects a slowdown in demand from oil and gas customers, as many exploration projects were delayed or scaled back amid continued market uncertainty. Key contributing factors included fluctuations in crude oil prices, softer global demand and trade-related concerns, all of which impacted the pace of new project starts and the need for crane services.
Previous wording
Revenues from AGREE’s hotel operations increased by $0.2 million, or 5%, for the three months ended June 30, 2025, compared to the same period in 2024. The modest increase reflects stable occupancy levels and consistent average daily rates, indicating steady performance in our hotel operations year-over-year.
Current wording
Revenues from AGREE’s hotel operations increased by $0.4 million, or 7%, for the three months ended September 30, 2025, compared to the same period in 2024. The increase reflects incremental improvements in both occupancy and average daily rates, indicating continued progress in hotel performance year-over-year.
Previous wording
Revenues from our trading activities for the three months ended June 30, 2025 included net gains on equity securities, including unrealized gains and losses from market price changes. These gains and losses have caused, and will continue to cause, significant volatility in our periodic earnings.
Current wording
Revenues from our trading activities for the three months ended September 30, 2025 and 2024 included net gains on equity securities, including unrealized gains and losses from market price changes. These gains and losses have caused, and will continue to cause, significant volatility in our periodic earnings.
Previous wording
TurnOnGreen’s revenues increased by $0.5 million, to $1.7 million for the three months ended June 30, 2025, compared to $1.2 million in the corresponding period in 2024. This rise was primarily due to higher sales from a single customer in the defense industry during the three months ended June 30, 2025.
Current wording
TurnOnGreen’s revenues increased by $0.5 million, to $1.7 million for the three months ended September 30, 2025, compared to $1.2 million in the corresponding period in 2024. This rise was primarily due to sales from two new customers during the three months ended September 30, 2025.
Previous wording
Selling and marketing expenses were $6.3 million for the three months ended June 30, 2025, compared to $3.7 million for the three months ended June 30, 2024, an increase of $2.6 million, or 69%. The increase was primarily the result of a $2.6 million increase in sales and marketing expenses at RiskOn International, Inc. (“ROI”) from higher advertising and promotion costs.
Current wording
Selling and marketing expenses were $7.4 million for the three months ended September 30, 2025, compared to $4.8 million for the three months ended September 30, 2024, an increase of $2.6 million, or 55%. The increase was primarily the result of an increase in sales and marketing expenses at ROI from higher advertising and promotion costs.
Previous wording
General and administrative expenses were $9.9 million for the three months ended June 30, 2025, compared to $11.4 million for the same period in 2024, representing a decrease of $1.5 million, or 13%. The decrease was primarily driven by the deconsolidation of AVLP and Eco Pack, the completion and wind-down of Ault Disruptive Technologies Corporation (“Ault Disruptive”) following the full redemption of its public shares, and a reduction in stock-based compensation expense.
Current wording
General and administrative expenses were $11.3 million for the three months ended September 30, 2025, compared to $12.0 million for the same period in 2024, representing a decrease of $0.6 million, or 5%. The decrease was primarily driven by the deconsolidation of AVLP and Eco Pack, the completion and wind-down of Ault Disruptive Technologies Corporation (“Ault Disruptive”) following the full redemption of its public shares.
Previous wording
Other expense, net was $7.3 million for the three months ended June 30, 2025, compared to other expense, net of $12.9 million for the three months ended June 30, 2024.
Current wording
Other income, net was $0.7 million for the three months ended September 30, 2025, compared to other expense, net of $7.2 million for the three months ended September 30, 2024.
Previous wording
Interest and other income totaled $1.1 million and $0.7 million for the three months ended June 30, 2025 and 2024, respectively.
Current wording
Interest and other income totaled $0.6 million and $0.8 million for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Our effective tax rate from continuing operations was a benefit of 0.7% for the three months ended June 30, 2025, compared to 0.0% for the same period in 2024. We recorded an income tax benefit of $0.1 million and $4,000 for the three months ended June 30, 2025 and 2024, respectively.
Current wording
Our effective tax rate from continuing operations was a provision of 1.9% for the three months ended September 30, 2025, compared to 0.2% for the same period in 2024. We recorded an income tax provision of $0.3 million and $0.1 million for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
The following table summarizes the results of our operations for the six months ended June 30, 2025 and 2024.
Current wording
The following table summarizes the results of our operations for the nine months ended September 30, 2025 and 2024.
Previous wording
Revenues by business category for the six months ended June 30, 2025 and 2024 were as follows:
Current wording
Revenues by business category for the nine months ended September 30, 2025 and 2024 were as follows:
Previous wording
Revenues from Sentinum’s crypto assets mining operations decreased $3.8 million to $4.7 million for the three months ended June 30, 2025, compared to $8.5 million for the three months ended June 30, 2024. The decrease was due primarily to a $1.7 million decline in revenue from mined crypto assets at Sentinum owned and operated facilities coupled with a $2.2 million decline in revenue from Sentinum crypto mining equipment hosted at third-party facilities. The $1.7 million decrease in revenue from mined crypto assets at Sentinum owned and operated facilities was due to the April 2024 Bitcoin halving event that occurred on the Bitcoin network and a 45% increase in the average Bitcoin mining difficulty level, partially offset by a 50% increase in the average Bitcoin price for the three months ended June 30, 2025, compared to the corresponding period in 2024. No revenue was generated from third-party hosted mining operations in 2025.
Current wording
Revenues from Sentinum’s crypto assets mining operations decreased $9.6 million to $15.6 million for the nine months ended September 30, 2025, compared to $25.2 million for the nine months ended September 30, 2024. The decrease was due primarily to a $4.0 million decline in revenue from mined crypto assets at Sentinum owned and operated facilities coupled with a $5.6 million decline in revenue from Sentinum crypto mining equipment hosted at third-party facilities. The $4.0 million decrease in revenue from mined crypto assets at Sentinum owned and operated facilities was due to the April 2024 Bitcoin halving event that occurred on the Bitcoin network and a 45% increase in the average Bitcoin mining difficulty level, partially offset by a 70% increase in the average Bitcoin price for the nine months ended September 30, 2025, compared to the corresponding period in 2024. No revenue was generated from third-party hosted mining operations in 2025.
Previous wording
Revenues from AGREE’s hotel operations increased by $0.4 million, or 5%, for the six months ended June 30, 2025, compared to the same period in 2024. The modest increase reflects stable occupancy levels and consistent average daily rates, indicating steady performance in our hotel operations year-over-year.
Current wording
Revenues from AGREE’s hotel operations increased by $0.8 million, or 6%, for the nine months ended September 30, 2025, compared to the same period in 2024. The increase reflects incremental improvements in both occupancy and average daily rates, indicating continued progress in hotel performance year-over-year.
Previous wording
Revenues from our lending and trading activities decreased $2.5 million to approximately $1.8 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a $1.4 million realized gain from the sale of an investment in other equity securities and $0.3 million in fee income during the six months ended June 30, 2025. Revenues from our lending and trading activities were negative $0.7 million for the three months ended June 30, 2024, primarily due to a $0.4 million unrealized loss from our investment in Alzamend included in revenue from lending and trading activities.
Current wording
Revenues from our lending and trading activities decreased $3.0 million to approximately $1.9 million for the nine months ended September 30, 2025, compared to the same period in 2024. The decrease was primarily attributable to lower realized gains from trading activities and a reduction in fee-generating transactions during the current period. Revenues for the nine months ended September 30, 2025, included a $1.5 million realized gain from the sale of an investment in other equity securities and $0.3 million in fee income, compared to $2.5 million in realized gains from trading activities and $2.3 million in fee income during the nine months ended September 30, 2024.
Previous wording
Revenues from our trading activities for the six months ended June 30, 2025 included net gains on equity securities, including unrealized gains and losses from market price changes. These gains and losses have caused, and will continue to cause, significant volatility in our periodic earnings.
Current wording
Revenues from our trading activities for the nine months ended September 30, 2025 and 2024 included net gains on equity securities, including unrealized gains and losses from market price changes. These gains and losses have caused, and will continue to cause, significant volatility in our periodic earnings.
Previous wording
TurnOnGreen’s revenues increased by $0.8 million, to $3.3 million for the six months ended June 30, 2025, compared to $2.5 million in the corresponding period in 2024. This rise was primarily due to higher sales from a single customer in the defense industry during the six months ended June 30, 2025.
Current wording
TurnOnGreen’s revenues increased by $1.3 million, to $5.0 million for the nine months ended September 30, 2025, compared to $3.8 million in the corresponding period in 2024. This increase was primarily due to higher sales from two new customers during the nine months ended September 30, 2025.
Previous wording
Other revenues increased by $0.2 million, to $1.2 million for the six months ended June 30, 2025, compared to $1.0 million in the corresponding period in 2024. This rise was primarily due to higher corporate aircraft charter revenue from third parties.
Current wording
Other revenues increased by $0.2 million, to $2.1 million for the nine months ended September 30, 2025, compared to $1.9 million in the corresponding period in 2024. This increase was primarily due to higher corporate aircraft charter revenue from third parties.
Previous wording
Gross margins decreased to 22% for the six months ended June 30, 2025, compared to 26% for the same period in 2024. The decline was primarily driven by unfavorable margins from our crypto asset mining operations, partially offset by favorable contributions from our lending and trading activities. Gross margins of 22% for the six months ended June 30, 2025 reflected a similar mix of negative mining performance and positive trading results. Excluding the impact of lending and trading activities and crypto asset mining, adjusted gross margins for the six months ended June 30, 2025 and 2024 would have been 35% and 34%, respectively.
Current wording
Gross margins decreased to 24% for the nine months ended September 30, 2025, compared to 26% for the same period in 2024. The decline was primarily driven by unfavorable margins from our crypto asset mining operations, partially offset by favorable contributions from our lending and trading activities. Excluding the impact of lending and trading activities and crypto asset mining, adjusted gross margins for the nine months ended September 30, 2025 and 2024 would have been 36% for both periods.
Previous wording
Selling and marketing expenses were $8.6 million for the six months ended June 30, 2025, compared to $7.8 million for the six months ended June 30, 2024, an increase of $0.8 million, or 11%. The increase was primarily the result of a $1.0 million increase in sales and marketing expenses at ROI from higher advertising and promotion costs.
Current wording
Selling and marketing expenses were $16.0 million for the nine months ended September 30, 2025, compared to $12.5 million for the nine months ended September 30, 2024, an increase of $3.5 million, or 28%. The increase was primarily the result of an increase in sales and marketing expenses at ROI from higher advertising and promotion costs.
Previous wording
General and administrative expenses were $19.1 million for the six months ended June 30, 2025, compared to $21.7 million for the six months ended June 30, 2024, a decrease of $2.7 million. The decrease was primarily driven by the deconsolidation of AVLP and Eco Pack, the completion and wind-down of Ault Disruptive following the full redemption of its public shares, and a reduction in stock-based compensation expense.
Current wording
General and administrative expenses were $30.4 million for the nine months ended September 30, 2025, compared to $33.7 million for the nine months ended September 30, 2024, a decrease of $3.3 million. The decrease was primarily driven by the deconsolidation of AVLP and Eco Pack, the completion and wind-down of Ault Disruptive following the full redemption of its public shares, lower salaries and benefits, lower performance-based bonuses at Ault Lending and a reduction in stock-based compensation expense.
Previous wording
On April 30, 2024, we had a change in plan of sale for our four hotels owned and operated by AGREE. As a result, as of April 30, 2024, the assets no longer met the held for sale criteria and were required to be reclassified as held and used at the lower of adjusted carrying value or the fair value at the date of the determination not to sell. In connection with this change in plan of sale, we recorded a loss on impairment of property and equipment related to the real estate assets of AGREE of $8.0 million during the three months ended June 30, 2024. The fair values of property and equipment related to the real estate assets of AGREE were based on a discounted cash flow income approach for the hotel properties and a comparable sales market approach for the vacant land assets.
Current wording
On April 30, 2024, we had a change in plan of sale for our four hotels owned and operated by AGREE. As a result, as of April 30, 2024, the assets no longer met the held for sale criteria and were required to be reclassified as held and used at the lower of adjusted carrying value or the fair value at the date of the determination not to sell. In connection with this change in plan of sale, we recorded a loss on impairment of property and equipment related to the real estate assets of AGREE of $9.2 million during the nine months ended September 30, 2024. The fair values of property and equipment related to the real estate assets of AGREE were based on a discounted cash flow income approach for the hotel properties and a comparable sales market approach for the vacant land assets.
Previous wording
Interest and other income totaled $1.3 million and $1.2 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Interest and other income totaled $2.0 million and $2.1 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
For the six months ended June 30, 2024, we recognized a noncash gain of $17.9 million related to the conversion of White River common stock by ROI into marketable equity securities. During the period, ROI transferred 6.7 million shares of White River common stock with a fair value of $19.2 million at the date of transfer. In connection with these transfers, ROI converted a portion of its White River Series A convertible preferred stock into common stock. No such gains were recognized during the six months ended June 30, 2025.
Current wording
For the nine months ended September 30, 2024, we recognized a noncash gain of $17.9 million related to the conversion of White River common stock by ROI into marketable equity securities. During the period, ROI transferred 6.7 million shares of White River common stock with a fair value of $19.2 million at the date of transfer. In connection with these transfers, ROI converted a portion of its White River Series A convertible preferred stock into common stock. No such gains were recognized during the nine months ended September 30, 2025.
Previous wording
During the six months ended June 30, 2025, we recognized a total net loss on extinguishment of convertible notes of $4.6 million. This amount includes:
Current wording
During the nine months ended September 30, 2025, we recognized a total net loss on extinguishment of convertible notes of $3.4 million. This amount includes:
Previous wording
During the six months ended June 30, 2024, ROI converted $2.3 million of ROI senior secured convertible notes that had a fair value of $0.9 million at the time of conversion and recognized a $1.4 million gain on extinguishment of debt. During the three months ended June 30, 2024, holders of our convertible notes converted $2.0 million of convertible notes that had a fair value of $2.7 million at the time of conversion and recognized a $0.7 million loss on extinguishment of debt.
Current wording
During the nine months ended September 30, 2024, the holder of ROI convertible notes converted $2.3 million of their senior secured convertible notes that had a fair value of $0.9 million at the time of conversion and recognized a $1.4 million gain on extinguishment of debt. During the three months ended September 30, 2024, holders of our convertible notes converted $2.0 million of convertible notes that had a fair value of $2.7 million at the time of conversion and recognized a $0.7 million loss on extinguishment of debt.
Previous wording
Loss from investment in unconsolidated entity was $1.3 million for the six months ended June 30, 2024, representing our share of losses from our equity method investment in Algorhythm Holdings, Inc.
Current wording
Loss from investment in unconsolidated entity was $1.3 million for the nine months ended September 30, 2024, representing our share of losses from our equity method investment in Algorhythm Holdings, Inc.
Previous wording
On March 28, 2025, AVLP, formerly a majority-owned subsidiary of ours, filed a voluntary petition for liquidation under Chapter 7 of the U.S. Bankruptcy Code. As a result of the filing, AVLP became subject to the control of the bankruptcy court, and we no longer maintained a controlling financial interest. Accordingly, we deconsolidated AVLP effective as of the petition date. In connection with the deconsolidation, we recognized a gain of $10.0 million, which is included in the condensed consolidated statement of operations for the six months ended June 30, 2025.
Current wording
On March 28, 2025, AVLP, formerly a majority-owned subsidiary of ours, filed a voluntary petition for liquidation under Chapter 7 of the U.S. Bankruptcy Code. As a result of the filing, AVLP became subject to the control of the bankruptcy court, and we no longer maintained a controlling financial interest. Accordingly, we deconsolidated AVLP effective as of the petition date. In connection with the deconsolidation, we recognized a gain of $10.0 million, which is included in the condensed consolidated statement of operations for the nine months ended September 30, 2025.
Previous wording
On April 16, 2025, Eco Pack, formerly a majority-owned subsidiary of ours, filed a voluntary liquidation under the insolvency regulations in the UK. As a result of the filing, we no longer maintained a controlling financial interest. Accordingly, we deconsolidated Eco Pack effective as of the filing date. In connection with the deconsolidation, we recognized a loss of $0.4 million, which is included in the condensed consolidated statement of operations for the six months ended June 30, 2025.
Current wording
On April 16, 2025, Eco Pack, formerly a majority-owned subsidiary of ours, filed a voluntary liquidation under the insolvency regulations in the UK. As a result of the filing, we no longer maintained a controlling financial interest. Accordingly, we deconsolidated Eco Pack effective as of the filing date. In connection with the deconsolidation, we recognized a loss of $0.4 million, which is included in the condensed consolidated statement of operations for the nine months ended September 30, 2025.
Previous wording
Cumulative downward adjustments for impairments for our equity securities without readily determinable fair values held at were $6.3 million for the three months ended June 30, 2024. No such impairments were recognized during the three months ended June 30, 2025.
Current wording
Cumulative downward adjustments for impairments for our equity securities without readily determinable fair values held at were $6.3 million for the nine months ended September 30, 2024.
Previous wording
During the six months ended June 30, 2024, we recorded a $3.1 million loan loss reserve related to the promissory note from Ault & Company due to uncertainties surrounding collection. The reserve was recorded within provision for loan losses – related party.
Current wording
During the nine months ended September 30, 2024, we recorded a $3.1 million loan loss reserve related to the promissory note from Ault & Company due to uncertainties surrounding collection. The reserve was recorded within provision for loan losses – related party.
Previous wording
Our effective tax rate from continuing operations was a benefit of 0.3% for the six months ended June 30, 2025, compared to 0.0% for the same period in 2024. We recorded an income tax benefit of $0.1 million and $5,000 for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Our effective tax rate from continuing operations was a provision of 0.5% for the nine months ended September 30, 2025, compared to 0.1% for the same period in 2024. We recorded an income tax provision of $0.2 million and $47,000 for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
As of June 30, 2025, we had cash and cash equivalents of $5.9 million, excluding restricted cash of $21.3 million, compared to $4.5 million in cash and cash equivalents and $20.5 million in restricted cash as of December 31, 2024. The increase in cash and cash equivalents was primarily driven by cash inflows from financing activities, including the sale of preferred stock and proceeds from notes payable and convertible notes. These inflows were partially offset by cash used in operating activities, debt repayments and purchases of property and equipment.
Current wording
As of September 30, 2025, we had cash and cash equivalents of $24.8 million, excluding restricted cash of $22.8 million, compared to $4.5 million in cash and cash equivalents, excluding $20.5 million in restricted cash, as of December 31, 2024. The increase in cash and cash equivalents was primarily driven by cash inflows from financing activities, including the sale of common stock, preferred stock and proceeds from notes payable and convertible notes. These inflows were partially offset by cash used in operating activities, debt repayments and purchases of property and equipment.
Previous wording
Net cash used in operating activities totaled $7.1 million for the six months ended June 30, 2025, compared to $13.9 million for the six months ended June 30, 2024. Cash used in operating activities for the six months ended June 30, 2025 included $9.9 million proceeds from the sale of crypto assets from our Sentinum crypto assets mining operations, offset by operating losses and changes in working capital. Net cash used in operating activities for the six months ended June 30, 2024 included $3.8 million cash used in operating activities from discontinued operations.
Current wording
Net cash used in operating activities totaled $24.8 million for the nine months ended September 30, 2025, compared to $10.2 million for the nine months ended September 30, 2024. Cash used in operating activities for the nine months ended September 30, 2025 included $13.1 million proceeds from the sale of crypto assets from our Sentinum crypto assets mining operations and $4.0 million proceeds from the sale of an investment in equity securities, offset by operating losses and changes in working capital. Net cash used in operating activities for the nine months ended September 30, 2024 included $6.4 million cash used in operating activities from discontinued operations.
Previous wording
Net cash used in investing activities was $2.3 million for the six months ended June 30, 2025, compared to net cash used in investing activities of $3.8 million for the six months ended June 30, 2024. Net cash used investing activities for the six months ended June 30, 2025 included capital expenditures of $3.3 million partially offset by proceeds from collections on notes receivable, related party of $1.9 million. Net cash used in investing activities for the six months ended June 30, 2024 included $1.6 million cash provided by investing activities from discontinued operations.
Current wording
Net cash used in investing activities was $12.9 million for the nine months ended September 30, 2025, compared to net cash used in investing activities of $11.8 million for the nine months ended September 30, 2024. Net cash used in investing activities for the nine months ended September 30, 2025 included:
Previous wording
Net cash provided by financing activities was $11.6 million for the six months ended June 30, 2025, compared to $18.8 million for the six months ended June 30, 2024, and primarily reflects the following transactions:
Current wording
Net cash provided by financing activities was $60.4 million for the nine months ended September 30, 2025, compared to $22.6 million for the nine months ended September 30, 2024, and primarily reflects the following transactions:
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Gross margins decreased to 26% for the three months ended September 30, 2025, compared to 28% for the three months ended September 30, 2024. The decline was primarily driven by unfavorable margins from our crypto asset mining activities, partially offset by favorable contributions from our lending and trading activities. Excluding the effects of margin from our mining, lending, and trading activities adjusted gross margins for each of the three months ended September 30, 2025 and 2024 would have been 38%.
Current report — wording carried from elsewhere
Energy revenues from Circle 8’s crane operations declined by $1.9 million, or 5%, for the nine months ended September 30, 2025, compared to the same period in 2024. The decrease reflects a slowdown in demand from oil and gas customers, as many exploration projects were delayed or scaled back amid continued market uncertainty. Key contributing factors included fluctuations in crude oil prices, softer global demand and trade-related concerns, all of which impacted the pace of new project starts and the need for crane services.
Current report — wording carried from elsewhere
Net cash used in investing activities for the nine months ended September 30, 2024 included $3.8 million cash provided by investing activities from discontinued operations.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Revenues from Sentinum’s crypto assets mining operations decreased $10.1 million to $9.9 million for the six months ended June 30, 2025, compared to $19.9 million for the six months ended June 30, 2024. The decrease was due primarily to a $5.3 million decline in revenue from mined crypto assets at Sentinum owned and operated facilities coupled with a $4.7 million decline in revenue from Sentinum crypto mining equipment hosted at third-party facilities. The $5.3 million decrease in revenue from mined crypto assets at Sentinum owned and operated facilities was due to the April 2024 Bitcoin halving event that occurred on the Bitcoin network and a 42% increase in the average Bitcoin mining difficulty level, partially offset by a 61% increase in the average Bitcoin price for the six months ended June 30, 2025, compared to the corresponding period in 2024. No revenue was generated from third-party hosted mining operations in 2025.
Previous report — wording carried elsewhere
On April 30, 2024, we had a change in plan of sale for our four hotels owned and operated by AGREE. As a result, as of April 30, 2024, the assets no longer met the held for sale criteria and were required to be reclassified as held and used at the lower of adjusted carrying value or the fair value at the date of the determination not to sell. In connection with this change in plan of sale, we recorded a loss on impairment of property and equipment related to the real estate assets of AGREE of $8.0 million during the six months ended June 30, 2024. The fair values of property and equipment related to the real estate assets of AGREE were based on a discounted cash flow income approach for the hotel properties and a comparable sales market approach for the vacant land assets.