Datacentrex, Inc.
For the period ended Jun 30, 2026. Filed Aug 12, 2026.
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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.
Jun 30, 2026 · Filed Aug 12, 2026
DTCX$1.05+5.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001493152-26-023091
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-12.
0001493152-26-037377
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 124 previous paragraphs and 133 current paragraphs.
90 unchanged; 25 reworded; 13 added; 8 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 4 previous and 6 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 (13)
Current report
Second Quarter FY26 Operational Highlights
Current report
The Company generated revenues of $1,913,779 for the three months ended June 30, 2026, as compared to $1,928,587 for the three months ended June 30, 2025. Revenue was relatively consistent for the three months ended June 30, 2026 and 2025 due to steady levels of operating activity during both periods. Cryptocurrency mining revenues are significantly affected by volatility in digital asset prices, changes in the blockchain network hash rate, increases in the overall quantity and efficiency of rigs utilizing the Scrypt mining algorithm, and changes in the difficulty index associated with solving blocks on the blockchain.
Current report
RESULTS OF OPERATIONS
Current report
Six Months Ended June 30, 2026 and 2025
Current report
Revenues
Current report
The Company generated revenues of $4,092,987 for the six months ended June 30, 2026 as compared to $2,088,212 for the six months ended June 30, 2025. The increase of $2,004,775 was driven primarily growth in the number of deployed units and expanded capacity, as well as the Company’s transition during 2026 to the hashrate marketplace monetization model under which settlement is typically received in Bitcoin.
Current report
Cost of Revenue
Current report
Cost of revenue increased by $2,300,820, to $3,374,852 for the six months ended June 30, 2026, from $1,074,032 for the six months ended June 30, 2025. Consistent with the three-month comparison, the increase was primarily attributable to the expansion of the Company’s deployed mining fleet, increased power rates and increased operating activity during 2026.
Current report
Operating expenses
Current report
Net Loss from operations
Current report
Other income (expense)
Current report
For the six months ended June 30, 2026, the Company had $1,806,200 in other expense, net. This included net unrealized and realized loss on digital assets of $2,481,598, other income of $6,467, and interest income, net, of $668,931. For the six months ended June 30, 2025, the Company had $105,024 in other expense, net, consisting of net unrealized and realized gain on digital assets of $71,482 and interest expense, net of $176,506.
Current report
Net Loss Before Income Taxes
Removed paragraphs (8)
Previous report
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Previous report
Recent Developments
Previous report
Public Offering
Previous report
On March 26, 2026, we entered into a placement agency with Dominari Securities LLC, pursuant to which we sold directly to investors, in a best efforts offering, an aggregate of (i) 4,510,000 shares of common stock at $2.00 per share and (ii) pre-funded warrants to purchase up to an aggregate of 5,575,000 shares of common stock at $1.99 per pre-funded warrant. The securities were offered and sold by us pursuant to our effective registration statement on Form S-3 (File No. 333-286951). The closing of the offering occurred on March 31, 2026 and the gross proceeds from the offering were approximately $20.2 million, before deducting placement agent fees and expenses and estimated offering expenses payable by us. We intend to use the net proceeds received from the offering for working capital and general corporate purposes.
Previous report
Waiver and Amendment
Previous report
On March 26, 2026, we entered into a Waiver and Amendment (the “Waiver and Amendment”) with the holders of the Company’s outstanding Series A Preferred Convertible Voting Stock (the “Series A Preferred Stock”), pursuant to which such holders (i) waived any adjustment to the conversion rate of the Series A Preferred Stock that would have otherwise resulted from the Offering, and (ii) agreed to amend the certificate of designation of the Series A Preferred Stock to change the conversion rate from 15 shares to 23 shares of common stock and the reference rate from $3.00 to $2.00 per share of common stock.
Previous report
First Quarter 2026 Operational Highlights
Previous report
The Company generated revenues of $2,179,208 for the three months ended March 31, 2026, as compared to $159,625 for the three months ended March 31, 2025. The Company began initial mining operations in the first quarter of 2025 and continued to expand its deployed units and capacity over the course of the year. The increase in revenues is attributable to growth in our number of deployed units and the transition during 2025 to the hashrate marketplace monetization model under which settlement is typically received in Bitcoin. Cryptocurrency mining revenues are impacted significantly by volatility in coin prices, as well as increases in the Blockchain’s Network Hash Rate resulting from the growth in the overall quantity and quality of rigs utilizing the Scrypt mining algorithm working to solve blocks on the blockchain and the difficulty index associated with the secure hashing algorithm employed in solving the blocks.
Reworded paragraphs (25)
Previous wording
The following discussion reflects the operations of Doge and its successors for the quarter ended March 31, 2026, as compared to the quarter ended March 31, 2025. The Company began the first quarter of 2025 with an initial deployment of approximately 1,500 Scrypt ASIC miners at a single colocation facility outside of the United States. Over the course of 2025, Doge deployed additional units in domestic colocation sites, relocated the original fleet of approximately 1,500 miners back to the United States and continued to deploy additional rigs. In first quarter of 2026, the Company maintained its operating fleet at 3,094 Scrypt ASIC miners across four domestic colocation facilities, with no material additions or removals. As of March 31, 2026, our total operating fleet consisted of 3,094 Scrypt ASIC miners deployed across four geographically diversified colocation facilities, all located in the United States.
Current wording
The following discussion reflects the operations of Doge and its successors for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025. The Company began the first quarter of 2025 with an initial deployment of approximately 1,500 Scrypt ASIC miners at a single colocation facility outside of the United States. Over the course of 2025, Doge deployed additional units in domestic colocation sites, relocated the original fleet of approximately 1,500 miners back to the United States and continued to deploy additional rigs. As of June 30, 2026, our total operating fleet consisted of 3,085 Scrypt ASIC miners deployed across four geographically diversified colocation facilities, all located in the United States with no material additions or removals during the quarter then ended.
Previous wording
We manage a treasury of digital assets and cash intended to preserve capital, maintain liquidity, and enhance long-term value creation. As of March 31, 2026, the Company held over $5.4 million in digital assets, comprising a mix of Bitcoin accumulated through hashrate marketplace settlement and unsold Dogecoin and Litecoin from pool-based mining. Management expects that future treasury concentration will favor Bitcoin over time, consistent with the Company’s hashrate marketplace monetization model in which settlement is typically received in Bitcoin.
Current wording
We manage a treasury of digital assets and cash intended to preserve capital, maintain liquidity, and enhance long-term value creation. As of June 30, 2026, the Company held over $5.9 million in digital assets, comprising a mix of Bitcoin accumulated through hashrate marketplace settlement and unsold Dogecoin and Litecoin from pool-based mining. Management expects that future treasury concentration will favor Bitcoin over time, consistent with the Company’s hashrate marketplace monetization model in which settlement is typically received in Bitcoin.
Previous wording
*Fleet Scaling and Deployment.*The Company began the first quarter of 2026 with a total operating fleet of 3,094 Scrypt ASIC miners deployed across four geographically diversified colocation facilities, all located in the United States. The fleet remained stable during the quarter, with no material additions or removals and no changes to colocation arrangements or contracted power capacity.
Current wording
*Fleet Scaling and Deployment.*The Company began the second quarter of 2026 with a total operating fleet of 3,085 Scrypt ASIC miners deployed across four geographically diversified colocation facilities, all located in the United States. The fleet remained stable during the quarter, with no material additions or removals and no changes to colocation arrangements or contracted power capacity.
Previous wording
*Hashrate and Power Capacity.*As of March 31, 2026, the Company’s fleet of 3,094 operating Scrypt ASIC miners had an average nameplate capacity of approximately 14 GH/s per unit, representing aggregate deployed hashrate of approximately 43.3 TH/s at full uptime. The fleet’s average nameplate power consumption was approximately 3.95 kW per unit, representing approximately 12.5 MW of total deployed power capacity across the Company’s four colocation facilities.
Current wording
*Hashrate and Power Capacity.*As of June 30, 2026, the Company’s fleet of 3,085 operating Scrypt ASIC miners had an average nameplate capacity of approximately 14 GH/s per unit, representing aggregate deployed hashrate of approximately 43.2 TH/s at full uptime. The fleet’s average nameplate power consumption was approximately 3.95 kW per unit, representing approximately 12.5 MW of total deployed power capacity across the Company’s four colocation facilities.
Previous wording
*Revenue and Financial Performance.*For the quarter ended March 31, 2026, the Company generated revenues of approximately $2.2 million from digital asset mining operations, with cost of revenue of approximately $1.7 million and gross profit of approximately $0.5 million. The Company reported a net loss attributable to common stockholders of approximately $6.2 million, driven primarily by depreciation expense of $3.3 million on mining equipment (amortized over a two-year useful life), stock-based compensation of $1.2 million, and general and administrative expenses associated with operating as a public company. Adjusted EBITDA was approximately $(1.7) million for the period, reflecting the impact of net realized and unrealized losses on digital assets held in treasury during the period.
Current wording
*Revenue and Financial Performance.*For the quarter ended June 30, 2026, the Company generated revenues of approximately $1.9 million from digital asset mining operations, with cost of revenue of approximately $1.7 million and gross profit of approximately $0.2 million. The Company reported a net loss attributable to common stockholders of approximately $5.5 million, driven primarily by depreciation expense of $3.3 million on mining equipment (amortized over a two-year useful life), stock-based compensation of $0.8 million, and general and administrative expenses associated with operating as a public company. Adjusted EBITDA, which is defined as net loss, adjusted for impacts of interest expense, income tax provision or benefit and depreciation and amortization, and non-cash stock-based compensation was approximately $(1.3) million for the period, reflecting the impact of net realized and unrealized losses on digital assets held in treasury during the period.
Previous wording
Cost of revenue for the three months ended March 31, 2026 of approximately $1,666,328 consisted primarily of direct production costs of the mining operations, including utilities and fees paid to the Company’s colocation agreement hosts, but excluding depreciation and amortization, which are separately stated. By comparison, cost of revenue for the three months ended March 31, 2025 of approximately $75,970 consisted primarily of direct production costs of the mining operations, including utilities and fees paid to the Company’s colocation agreement hosts. The increase of $1,590,358 reflects the substantial expansion of the Company’s deployed mining fleet and operating activity during 2025.
Current wording
Cost of revenue for the three months ended June 30, 2026 of approximately $1,708,524 consisted primarily of direct production costs of the mining operations, including utilities and fees paid to the Company’s colocation agreement hosts, but excluding depreciation and amortization, which are separately stated. By comparison, cost of revenue for the three months ended June 30, 2025 of approximately $998,062 consisted primarily of direct production costs of the mining operations, including utilities and fees paid to the Company’s colocation agreement hosts. The increase of $710,462 reflects the increased power rates of the Company’s deployed mining fleet.
Previous wording
For the three months ended March 31, 2026 the Company incurred operating expenses of $5,530,534, consisting of general and administrative expenses of $1,087,209, depreciation and amortization of $3,287,259, and stock-based compensation of $1,156,066. General and administrative expenses primarily reflect legal, accounting, and other professional fees, payroll and outside consultant fees, insurance, and public company compliance costs. Depreciation and amortization expense is primarily attributable to in-service mining equipment, which is amortized over a two-year useful life. Stock-based compensation reflects expense recognized under the Company’s equity incentive plan for eligible employees and directors. For the three months ended March 31, 2025 the Company incurred operating expenses of $391,351, consisting of general and administrative expenses of $201,871, depreciation and amortization of $189,480, and no stock-based compensation. The increase of $5,139,183 in operating expenses period over period is primarily attributable to increases in depreciation expense of $3,097,779 reflecting the substantially larger in-service mining fleet, stock-based compensation of $1,156,066, legal and accounting fees of approximately $297,431, and payroll and outside consultant fees of approximately $419,200.
Current wording
For the three months ended June 30, 2026 the Company incurred operating expenses of $5,001,465, consisting of general and administrative expenses of $863,281, depreciation and amortization of $3,287,326, and stock-based compensation of $850,858. General and administrative expenses primarily reflect legal, accounting, and other professional fees, payroll and outside consultant fees, insurance, and public company compliance costs. Depreciation and amortization expense is primarily attributable to in-service mining equipment, which is amortized over a two-year useful life. Stock-based compensation reflects expense recognized under the Company’s equity incentive plan for eligible employees and directors. For the three months ended June 30, 2025 the Company incurred operating expenses of $2,355,630, consisting of general and administrative expenses of $193,099, depreciation and amortization of $2,162,531, and no stock-based compensation. The increase of $2,645,835 in operating expenses period over period is primarily attributable to increases in depreciation expense of $1,124,795 reflecting the substantially larger in-service mining fleet, stock-based compensation of $850,858, legal and accounting fees of approximately $254,000, and payroll and outside consultant fees of approximately $356,000.
Previous wording
The Company realized a net loss from operations of $5,017,654 for the three months ended March 31, 2026, as compared to a net loss from operations of $307,696 for the three months ended March 31, 2025, which is attributed to the reasons stated above in the section “Operating Expenses.”
Current wording
The Company realized a net loss from operations of $4,796,210 for the three months ended June 30, 2026, as compared to a net loss from operations of $1,425,105 for the three months ended June 30, 2025, which is attributed to the reasons stated above in the section “Operating Expenses.”
Previous wording
For the three months ended March 31, 2026, the Company had $(1,134,053) in other income (expense), net. This included net unrealized and realized loss on digital assets of $(1,212,173), other income of $6,467, and interest income, net, of $71,653. For the three months ended March 31, 2025, the Company had $(899) in other income (expense), net, consisting of net unrealized and realized loss on digital assets.
Current wording
For the three months ended June 30, 2026, the Company had $672,147 in other expense, net. This included net unrealized and realized loss on digital assets of $1,269,425 and interest income, net, of $597,278. For the three months ended June 30, 2025, the Company had $104,125 in other expense, net, consisting of net unrealized and realized gain on digital assets of $72,381 and interest expense, net of $176,506.
Previous wording
The Company realized a net loss before income taxes of $6,151,707 for the three months ended March 31, 2026, as compared to $308,595 for the three months ended March 31, 2025. Our net losses were due to the reasons stated above in the preceding sections.
Current wording
The Company realized a net loss before income taxes of $5,468,357 for the three months ended June 30, 2026, as compared to $1,529,230 for the three months ended June 30, 2025. Our net losses were due to the reasons stated above in the preceding sections.
Previous wording
As of March 31, 2026, the Company had cash and cash equivalents of $42,474,352, stockholders’ equity of $79,151,311, and working capital of $59,475,256.
Current wording
As of June 30, 2026, the Company had cash and cash equivalents of $51,884,089, stockholders’ equity of $74,533,809, and working capital of $58,145,080.
Previous wording
The Company’s accumulated deficit was $(14,654,592) as of March 31, 2026.
Current wording
The Company’s accumulated deficit was $20,122,949 as of June 30, 2026.
Previous wording
The Company used net cash in operating activities of $3,226,706 for the three months ended March 31, 2026. For the three months ended March 31, 2026, operating cash flows were impacted by depreciation and amortization of $3,287,259, stock-based compensation of $1,156,066, digital asset mining revenue of $(2,179,208), net unrealized and realized loss on digital assets of $1,212,173, impairment of capitalized software of $60,092, increase in prepaid expense of $(246,627), increase in other receivables of $(29,913), and decrease in accounts payable and accrued expenses of $(334,841).
Current wording
The Company used net cash in operating activities of $4,991,617 for the six months ended June 30, 2026. For the six months ended June 30, 2026, operating cash flows were impacted by depreciation and amortization of $6,574,585, stock-based compensation of $2,006,924, digital asset mining revenue of $4,092,987, net unrealized and realized loss on digital assets of $2,481,598, impairment of capitalized software of $60,092, increase in prepaid expense of $108,694, increase in other receivables of $16,873, and decrease in accounts payable and accrued expenses of $276,198.
Previous wording
By comparison, the Company used net cash in operating activities of $1,250,573 for the three months ended March 31, 2025. For the three months ended March 31, 2025, operating cash flows were impacted by depreciation and amortization of $189,480, digital asset mining revenue of $(159,625), net unrealized and realized loss on digital assets of $899, increase in prepaid expense of $(311,551), increase in other assets of $(686,893), and increase in accounts payable and accrued expenses of $25,712.
Current wording
By comparison, the Company used net cash in operating activities of $2,337,272 for the six months ended June 30, 2025. For the six months ended June 30, 2025, operating cash flows were impacted by depreciation and amortization of $2,352,011, digital asset mining revenue of $2,088,212, net unrealized and realized gain on digital assets of $71,482, increase in prepaid expense of $60,691, increase in other assets of $686,893, and increase in accounts payable and accrued expenses of $55,820.
Previous wording
Net cash provided by investing activities for the three months ended March 31, 2026 was $31,872, consisting of proceeds from the sale of digital assets. The Company did not purchase additional mining equipment or pay deposits on equipment to be received during the period.
Current wording
Net cash provided by investing activities for the six months ended June 30, 2026 was $56,520 consisting of proceeds from the sale of digital assets. The Company did not purchase additional mining equipment or pay deposits on equipment to be received during the period.
Previous wording
By comparison, net cash used in investing activities for the three months ended March 31, 2025 was $20,651,395. During the three months ended March 31, 2025, the Company purchased $17,290,001 of mining equipment, paid $3,429,761 in deposits on mining equipment to be received, and received $68,367 in proceeds from sale of digital assets.
Current wording
By comparison, net cash used in investing activities for the six months ended June 30, 2025 was $23,988,068. During the six months ended June 30, 2025, the Company purchased $17,423,650 of mining equipment, paid $7,029,862 in deposits on mining equipment to be received, and received $465,444 in proceeds from sale of digital assets.
Previous wording
Cash provided by financing activities for the three months ended March 31, 2026 was $6,749,700, consisting of net proceeds from the Company’s March 2026 confidentially marketed public offering. The Company did not issue Class A-1 or Class A-2 Units during the three months ended March 31, 2026.
Current wording
Cash provided by financing activities for the six months ended June 30, 2026 was $17,899,700, consisting of net proceeds from the Company’s March 2026 confidentially marketed public offering. The Company did not issue Class A-1 or Class A-2 Units during the six months ended June 30, 2026.
Previous wording
By comparison, cash provided by financing activities for the three months ended March 31, 2025 was $22,095,000, consisting of $4,150,000 of proceeds from long-term debt, net of discount, and $17,945,000 of proceeds from the issuance of Class A-1 Units.
Current wording
By comparison, cash provided by financing activities for the six months ended June 30, 2025 was $30,117,402, consisting of $5,250,000 of proceeds from long-term debt net of discount, repayments of long term debt of $3,500,000, $17,945,000 of proceeds from the issuance of Class A-1 Units and $10,422,402 of proceeds from the issuance of Class A-2 Units.
Previous wording
As of March 31, 2026, we had cash and cash equivalents on hand of $42,474,352. We currently have minimal sources of liquidity such as arrangements with credit institutions that will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital.
Current wording
June 30, 2026, we had cash and cash equivalents on hand of $51,884,089. We currently have minimal sources of liquidity such as arrangements with credit institutions that will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital.
Previous wording
The following table presents additional information about our cryptocurrency mining activities in coins and amounts during the three months ended March 31, 2026.
Current wording
The following table presents additional information about our cryptocurrency mining activities in coins and amounts during the six months ended June 30, 2026.
Previous wording
The following table presents additional information about our cryptocurrency mining activities in coins and amounts during the three months ended March 31, 2025.
Current wording
The following table presents additional information about our cryptocurrency mining activities in coins and amounts during the six months ended June 30, 2025.
Previous wording
The Company utilizes third-party data center facilities to support its digital asset mining operations. Specifically, the Company has entered into colocation and hosting services agreements with independent data center providers for the ongoing provision of rack space, electrical power capacity, network connectivity, and cooling infrastructure required to operate the Company’s mining hardware. For the three months ended March 31, 2026, the Company incurred approximately $1,666,328 of colocation and hosting-related service expenses, which are included in cost of revenue in the accompanying consolidated statements of operations.
Current wording
The Company utilizes third-party data center facilities to support its digital asset mining operations. Specifically, the Company has entered into colocation and hosting services agreements with independent data center providers for the ongoing provision of rack space, electrical power capacity, network connectivity, and cooling infrastructure required to operate the Company’s mining hardware. For the six months ended June 30, 2026, the Company incurred approximately $3,374,852 of colocation and hosting-related service expenses, which are included in cost of revenue in the accompanying consolidated statements of operations.
Previous wording
Our board of directors and management team use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and amortization), and other items (such as non-recurring transactions mentioned above) that impact the comparability of financial results from period to period.
Current wording
Our board of directors and management team use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense and income), asset base (such as depreciation and amortization), and other items that impact the comparability of financial results from period to period. We believe each of these adjustments provides useful information to investors for the following reasons: (i) interest expense is excluded because it is a function of our financing arrangements and capital structure rather than our core operating performance, and its exclusion facilitates comparisons with companies that have different capital structures; (ii) depreciation and amortization is excluded because it is a non-cash charge that reflects the cost of capital assets acquired in prior periods and does not directly correspond to the current period operating performance of our mining operations, and its exclusion allows investors to evaluate operating results independent of the timing and magnitude of capital expenditures; and (iii) stock-based compensation expense is excluded because it is a non-cash charge that varies significantly based on the timing, size, and nature of equity awards granted, as well as factors such as stock price volatility and forfeiture rates, which are not directly related to our underlying operational performance, and its exclusion enables investors to compare our results with those of other companies that may utilize different forms and levels of employee compensation.
Previous wording
Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric as of March 31, 2026 and March 31, 2025 are presented in the table below:
Current wording
Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric as of the three months ended June 30, 2026 and June 30, 2025, are presented in the table below:
Previous wording
The Company utilizes third-party data center facilities to support its digital asset mining operations. Specifically, the Company has entered into colocation and hosting services agreements with independent data center providers for the ongoing provision of rack space, electrical power capacity, network connectivity, and cooling infrastructure required to operate the Company’s mining hardware. For the three months ended March 31, 2026, the Company incurred approximately $1,666,328 of colocation and hosting-related service expenses, which are included in cost of revenue in the accompanying consolidated statements of operations.
Current wording
The Company utilizes third-party data center facilities to support its digital asset mining operations. Specifically, the Company has entered into colocation and hosting services agreements with independent data center providers for the ongoing provision of rack space, electrical power capacity, network connectivity, and cooling infrastructure required to operate the Company’s mining hardware. For the six months ended June 30, 2026, the Company incurred approximately $3,374,852 of colocation and hosting-related service expenses, which are included in cost of revenue in the accompanying consolidated statements of operations.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The following table sets forth certain selected consolidated statements of operations data for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026 the Company incurred operating expenses of $10,531,999, consisting of general and administrative expenses of $1,950,490, depreciation and amortization of $6,574,585, and stock-based compensation of $2,006,924. For the six months ended June 30, 2025 the Company incurred operating expenses of $2,746,981, consisting of general and administrative expenses of $394,970, depreciation and amortization of $2,352,011, and no stock-based compensation. The increase of $7,785,018 in operating expenses period over period is primarily attributable to increases in depreciation expense of $4,222,574 reflecting the substantially larger in-service mining fleet, stock-based compensation of $2,006,924, legal and accounting fees of approximately $416,000, insurance cost of approximately $250,000 and payroll and outside consultant fees of approximately $700,000.
Current report — wording carried from elsewhere
The Company realized a net loss from operations of $9,813,864 for the six months ended June 30, 2026, as compared to a net loss from operations of $1,732,801 for the six months ended June 30, 2025, which is attributed to the reasons stated above in the section “Operating Expenses.”
Current report — wording carried from elsewhere
The Company realized a net loss before income taxes of $11,620,064 for the six months ended June 30, 2026, as compared to $1,837,825 for the six months ended June 30, 2025. Our net losses were due to the reasons stated above in the preceding sections.
Current report — wording carried from elsewhere
Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric as of the six months ended June 30, 2026 and June 30, 2025, are presented in the table below:
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS