Ault Global Holdings Reports Second Quarter 2021 Results

August 16, 2021 at 6:30 AM EDT

Q2 2021 Revenue of $62.1 Million, up 1050% From the Prior Year’s Quarter

Q2 2021 Net Income of $42.2 Million Compared to a $1.4 Million Loss in the Prior Year’s Quarter

Total Assets of More Than a Quarter of a Billion Dollars ($259.1 Million)

LAS VEGAS--(BUSINESS WIRE)--Aug. 16, 2021-- Ault Global Holdings, Inc. (NYSE American: DPW) a diversified holding company (the “Company”), today announced its financial results for the second quarter ended June 30, 2021.

Q2-2021 highlights

  • Revenue of $62.1 million, an increase of 1050% from $5.4 million in the prior second fiscal quarter;
  • Revenue from lending and trading activities of $53.3 million due to the allocation of capital to the Company’s wholly owned subsidiary, Digital Power Lending, LLC (“DP Lending”);
  • Revenue from lending and trading activities includes an approximate $40 million unrealized gain from the Company’s investment in Alzamend Neuro, Inc. (Nasdaq: ALZN) (“Alzamend”), early clinical-stage biopharmaceutical company focused on developing novel products for the treatment of neurodegenerative diseases and psychiatric disorders;
  • Revenue from cryptocurrency mining of $291,000 as the Company resumed cryptocurrency mining operations with approximately 1,000 miners during March 2021;
  • Net income of $42.2 million for the quarter, which represents the largest quarterly profit in Company history;
  • Positive working capital of $127.9 million;
  • Total assets of more than a quarter-of-a-billion dollars ($259.1 million); and
  • Cash of $105.4 million, marketable securities of $30.2 million and other investments of $81.5 million as of June 30, 2021.

Six months ended June 30, 2021 highlights

  • Revenue of $75.4 million, an increase of 585% from $11.0 million in the prior six-month period;
  • Revenue from lending and trading activities of $58.5 million due to the allocation of capital to DP Lending;
  • Revenue from cryptocurrency mining of $421,000 as the Company resumed cryptocurrency mining operations with approximately 1,000 miners during March 2021; and
  • Net income of $44.2 million compared to a net loss of $7.9 million in the prior six-month period.

Revenues

Revenues by segment for the three months ended June 30, 2021 and 2020 were as follows:

For the Three Months Ended June 30,

2021

2020

Increase

%

 

Gresham Worldwide (“GWW”)

$

6,475,000

 

$

4,189,000

 

$

2,286,000

 

55%

Coolisys Technologies Corp. (“Coolisys”)

 

1,831,000

 

1,246,000

 

585,000

47%

Ault Alliance:

 

 

 

 

 

 

 

Revenue, cryptocurrency mining

 

291,000

 

 

291,000

Revenue, lending and trading activities

 

53,274,000

 

 

(34,000)

 

 

53,308,000

 

156788%

Other

$

258,000

 

 

258,000

Total revenue

$

62,129,000

 

$

5,401,000

 

$

56,728,000

 

1050%

GWW

GWW’s revenues increased by $2.3 million, or 55%, to $6.5 million for the three months ended June 30, 2021, from $4.2 million for the three months ended June 30, 2020. GWW revenue in 2021 includes $1.7 million from Relec, which was acquired on November 30, 2020. In addition, the increase in revenue from our GWW segment for customized solutions for the military markets reflected the benefit of capital that was allocated to our defense business based on the overall improved capital structure of the Company.

Coolisys

Coolisys’ revenues increased by $586,000 or 47%, to $1.8 million for the three months ended June 30, 2021, from $1.2 million for three months ended June 30, 2020. The increase is due, in part, to the lack of disruptions to Coolisys’ business operations, which Coolisys experienced in the prior year period related to the temporary suspension of operations related to the outbreak of COVID-19.

Ault Alliance

Revenues from our cryptocurrency mining operations were $291,000 for the three months ended June 30, 2021, compared to nil for the three months ended June 30, 2020, as we resumed our cryptocurrency mining operations during the first quarter of 2021. Our decision to resume cryptocurrency mining operations in 2021 was based on several factors, including the market prices of digital currencies, and favorable power costs available at our Michigan Data Center, operated by our majority owned subsidiary Alliance Cloud Services, LLC (“Alliance”).

Revenues from our lending and trading activities increased to $53.3 million for the three months ended June 30, 2021, from negative revenues of $34,000 for the three months ended June 30, 2020, which is attributable to a significant allocation of capital from our recent equity financing transactions to our loan and investment portfolio. During the three months ended June 30, 2021, DP Lending generated significant income from appreciation of investments in marketable securities as well as shares of common stock underlying convertible notes and warrants issued to DP Lending in certain financing transactions. Under its business model, DP Lending also generates revenue through origination fees charged to borrowers and interest generated from each loan.

Revenues from our trading activities in 2021 included significant 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.

Gross margins

Gross margins increased to 89.9% for the three months ended June 30, 2021 compared to 37.1% for the three months ended June 30, 2020. Our gross margins have typically ranged between 33% and 37%, with slight variations depending on the overall composition of our revenue.

Our gross margins of 89.9% recognized during the three months ended June 30, 2021 resulted from the favorable margins from our lending and trading activities. Excluding the effects of margin from our lending and trading activities, our adjusted gross margins for the three months ended June 30, 2021, would have been 29%, slightly lower than our historical range.

Operating expenses

Operating expenses increased to $10.0 million for the three months ended June 30, 2021, representing an increase of $7.3 million compared to $2.7 million for the three months ended June 30, 2020.

The increase in operating expenses from the three months ended June 30, 2020 was due to the following:

  • Research and development expenses increased by $69,000 to $531,000 for the three months ended June 30, 2021, from $462,000 for the three months ended June 30, 2020. The increase in research and development expenses is due to costs incurred by Coolisys related to the development of our electric vehicle charger products;
  • Selling and marketing expenses were $1.5 million for the three months ended June 30, 2021, compared to $295,000 for the three months ended June 30, 2020, an increase of $1.2 million, or 410%. The increase was in part the result of increases in personnel costs directly attributable to the increase in sales and marketing personnel and consultants, primarily at Ault Alliance related to digital marketing and digital learning. The increase is also attributable to costs incurred at Coolisys to grow our selling and marketing infrastructure related to our electric vehicle charger products;
  • General and administrative expenses were $8.0 million for the three months ended June 30, 2021, compared to $2.9 million for the three months ended June 30, 2020, an increase of $5.1 million. General and administrative expenses increased from the comparative prior period due mainly to:
    • the accrual of a $2.9 million performance bonus related to trading activities during the period;
    • non-cash stock compensation costs of $545,000 related to GWW options and shares issued to GWW’s Chief Executive Officer and Chief Operating Officer;
    • general and administrative costs of $363,000 related to Relec, which was acquired on November 30, 2020;
    • increased costs related to our Michigan Data Center; and
    • higher consulting, audit, legal and insurance costs; and
  • The three months ended June 30, 2020 included a $1.0 million reversal of a provision for credit losses.

The Company’s Chief Financial Officer, Kenneth S. Cragun, said, “The financial results for the second quarter of 2021 demonstrate that we are continuing to achieve our objectives to grow revenue and improve operating results, with revenue growth of 1050% over the prior second fiscal quarter and net income of $42.2 million. We saw tremendous growth from our lending and trading activities with the infusion of capital and growth in all of our business segments. Our balance sheet remains strong, ending the second quarter of 2021 with positive working capital of $127.9 million.”

The Company’s Founder and Executive Chairman, Milton “Todd” Ault, III said, “Our results for the second quarter of 2021 reflect the strength of our lending and trading activities at DP Lending, our financial services subsidiary. We believe our current lending and investing pipeline is strong and if the market conditions for investing in small cap stocks remains strong, the future prospects for the Company are extremely promising. Quite simply, we are in the strongest position of our Company’s 52-year history. We have grown assets to more than a quarter of a billion and are announcing a goal to grow assets to more than one billion dollars. Over the longer term, we envision allocating $250 million to DP Lending, $250 million to real estate investments, and $500 million to completing acquisitions of profitable companies, or distressed companies that we believe we can make profitable. As discussed in the previous quarter, our near-term key initiatives include:

  • Exploring a potential IPO or other transaction to access capital markets for our GWW defense business;
  • Exploring a potential IPO for our power electronics and electric vehicle charger business;
  • Completing the initial 30,000 square foot buildout of our Michigan Data Center;
  • Ramping up cryptocurrency mining operations at our Michigan Data Center;
  • Ramping up fulfillment of the $50 million MTIX purchase order for MLSE plasma-laser systems;
  • Expanding our loan and investment portfolio at DP Lending; and
  • Considering further acquisitions.

Considering our subsidiaries operating in the sectors of defense, electric vehicle chargers, power electronic businesses, data center, crypto mining, lending and investment platform, the road ahead is bright.”

For more information on Ault Global Holdings and its subsidiaries, the Company recommends that stockholders, investors and any other interested parties read the Company’s public filings and press releases available under the Investor Relations section at www.AultGlobal.com or available at www.sec.gov.

About Ault Global Holdings, Inc.

Ault Global Holdings, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, the Company provides mission-critical products that support a diverse range of industries, including defense/aerospace, industrial, automotive, telecommunications, medical/biopharma, and textiles. In addition, the Company extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Global Holding’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; www.AultGlobal.com.

Forward-Looking Statements

This press release contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.AultGlobal.com.

AULT GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 

June 30,

December 31,

2021

2020

ASSETS

 

CURRENT ASSETS

 

 

 

Cash and cash equivalents

$

105,391,000

$

18,680,000

Marketable equity securities

 

30,172,000

 

 

2,563,000

Accounts receivable

 

4,730,000

 

3,852,000

Accounts and other receivable, related party

 

1,196,000

 

 

1,196,000

Accrued revenue

 

1,594,000

 

1,696,000

Inventories

 

2,900,000

 

 

3,374,000

Prepaid expenses and other current assets

 

5,373,000

 

2,988,000

TOTAL CURRENT ASSETS

 

151,356,000

 

 

34,349,000

 

Intangible assets, net

 

4,175,000

 

 

4,390,000

Goodwill

 

9,589,000

 

9,646,000

Property and equipment, net

 

7,262,000

 

 

2,123,000

Right-of-use assets

 

4,605,000

 

4,318,000

Investment in promissory notes, related parties

 

13,913,000

 

 

10,668,000

Investments in common stock and warrants, related parties

 

60,355,000

 

6,139,000

Investments in debt and equity securities

 

4,013,000

 

 

262,000

Investment in limited partnership

 

1,869,000

 

1,869,000

Loans receivable

 

572,000

 

 

750,000

Other investments, related parties

 

788,000

 

803,000

Other assets

 

604,000

 

 

326,000

TOTAL ASSETS

$

259,101,000

$

75,643,000

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES

Accounts payable and accrued expenses

$

7,784,000

 

$

10,579,000

Accounts payable and accrued expenses, related party

 

 

36,000

Operating lease liability, current

 

876,000

 

 

524,000

Revolving credit facility

 

103,000

 

125,000

Notes payable, net

 

1,808,000

 

 

4,048,000

Notes payable, related parties

 

 

188,000

Convertible notes payable, related party

 

 

 

400,000

Warrant liability

 

4,580,000

 

4,192,000

Income taxes payable

 

2,770,000

 

 

Other current liabilities

 

5,572,000

 

 

1,790,000

TOTAL CURRENT LIABILITIES

$

23,493,000

$

21,882,000

AULT GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(Unaudited)

 

June 30,

December 31,

2021

2020

LONG TERM LIABILITIES

Operating lease liability, non-current

 

3,792,000

 

 

3,855,000

Notes payable

 

 

336,000

Notes payable, related parties

 

 

 

52,000

Convertible notes payable

 

427,000

 

386,000

 

TOTAL LIABILITIES

 

27,712,000

 

26,511,000

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

Series A Convertible Preferred Stock, $25.00 stated value per share,

 

 

$0.001 par value – 1,000,000 shares authorized; 7,040 shares

issued and outstanding at June 30, 2021 and December 31, 2020

(redemption amount and liquidation preference of $176,000

as of June 30, 2021 and December 31, 2020)

Series B Convertible Preferred Stock, $10 stated value per share,

 

 

 

$0.001 par value – 500,000 shares authorized; 125,000 shares issued

 

 

 

and outstanding at June 30, 2021 and December 31, 2020 (liquidation

 

 

 

preference of $1,250,000 at June 30, 2021 and December 31, 2020)

 

 

 

Class A Common Stock, $0.001 par value – 500,000,000 shares authorized;

 

56,000

 

28,000

56,159,963 and 27,753,562 shares issued and outstanding at June 30,

2021 and December 31, 2020, respectively

Class B Common Stock, $0.001 par value – 25,000,000 shares authorized;

 

 

 

nil shares issued and outstanding at June 30, 2021 and December 31,

2020

 

 

 

Additional paid-in capital

 

311,760,000

 

171,397,000

Accumulated deficit

 

(77,190,000)

 

 

(121,397,000)

Accumulated other comprehensive gain (loss)

 

(4,601,000)

 

(1,718,000)

TOTAL AULT GLOBAL HOLDINGS STOCKHOLDERS’ EQUITY

 

230,025,000

 

 

48,310,000

 

Non-controlling interest

 

1,364,000

 

 

822,000

 

TOTAL STOCKHOLDERS’ EQUITY

 

231,389,000

 

 

49,132,000

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

259,101,000

 

75,643,000 

AULT GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Unaudited)

 

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Revenue

$

8,564,000

 

$

5,435,000

 

$

16,469,000

 

$

11,004,000

Revenue, cryptocurrency mining

 

291,000

 

 

421,000

 

Revenue, lending and trading activities

 

53,274,000

 

 

(34,000)

 

 

58,485,000

 

 

2,000

Total revenue

 

62,129,000

 

5,401,000

 

75,375,000

 

11,006,000

Cost of revenue

 

6,278,000

 

 

3,496,000

 

 

11,386,000

 

 

7,349,000

Gross profit

 

55,851,000

 

1,905,000

 

63,989,000

 

3,657,000

 

Operating expenses

 

 

 

 

 

 

 

Research and development

 

531,000

 

462,000

 

1,133,000

 

903,000

Selling and marketing

 

1,505,000

 

 

295,000

 

 

2,747,000

 

 

633,000

General and administrative

 

7,992,000

 

2,918,000

 

13,084,000

 

5,821,000

Provision for credit losses

 

 

 

(1,000,000)

 

 

 

 

Total operating expenses

 

10,028,000

 

2,675,000

 

16,964,000

 

7,357,000

Income (loss) from continuing operations

 

45,823,000

 

 

(770,000)

 

 

47,025,000

 

 

(3,700,000)

Other income (expenses)

Interest income

 

14,000

 

 

36,000

 

 

51,000

 

 

36,000

Interest expense

 

(22,000)

 

(963,000)

 

(337,000)

 

(2,049,000)

Change in fair value of marketable equity securities

 

(1,915,000)

 

 

337,000

 

 

45,000

 

 

(29,000)

Realized gain on marketable securities

 

 

 

397,000

 

Gain (loss) on extinguishment of debt

 

447,000

 

 

(12,000)

 

 

929,000

 

 

(475,000)

Change in fair value of warrant liability

 

290,000

 

(10,000)

 

(388,000)

 

(6,000)

Total other income (expenses), net

 

(1,186,000)

 

 

(612,000)

 

 

697,000

 

 

(2,523,000)

Income (loss) from continuing operations before income taxes

 

44,637,000

 

 

(1,382,000)

 

47,722,000

 

(6,223,000)

Income tax (expense) benefit

 

(3,504,000)

 

 

6,000

 

 

(3,510,000)

 

 

12,000

Net income (loss) from continuing operations

 

41,133,000

 

(1,376,000)

 

44,212,000

 

(6,211,000)

Net loss from discontinued operations, net of taxes

 

 

 

 

 

 

 

(1,698,000)

Net income (loss)

 

41,133,000

 

(1,376,000)

 

44,212,000

 

(7,909,000)

Net loss attributable to non-controlling interest

 

1,083,000

 

 

 

 

3,000

 

 

Net income (loss) attributable to Ault Global Holdings

 

42,216,000

 

(1,376,000)

 

44,215,000

 

(7,909,000)

Preferred dividends

 

(4,000)

 

 

(3,000)

 

 

(9,000)

 

 

(7,000)

Net income (loss) available to common stockholders

$

42,212,000

$

(1,379,000)

$

44,206,000

$

(7,916,000)

 

 

 

 

 

 

 

 

Basic net income (loss) per common share:

 

 

 

 

 

 

 

Continuing operations

$

0.82

$

(0.24)

$

0.97

$

(1.20)

Discontinued operations

 

 

 

 

 

 

 

(0.33)

Net income (loss) per common share

$

0.82

$

(0.24)

$

0.97

$

(1.52)

 

 

 

 

 

 

 

 

Diluted net income (loss) per common share:

 

 

 

 

 

 

 

Continuing operations

$

0.79

$

(0.24)

$

0.91

$

(1.20)

Discontinued operations

 

 

 

 

 

 

 

(0.33)

Net income (loss) per common share

$

0.79

$

(0.24)

$

0.91

$

(1.52)

Weighted average basic common shares outstanding

 

50,783,000

 

 

5,864,000

 

 

45,052,000

 

 

5,199,000

Weighted average diluted common shares outstanding

 

52,780,000

 

5,864,000

 

47,574,000

 

5,199,000

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

 

 

 

 

 

 

Net income (loss) available to common stockholders

$

42,212,000

$

(1,379,000)

$

44,206,000

$

(7,916,000)

Other comprehensive income (loss)

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

134,000

 

97,000

 

41,000

 

(51,000)

Net unrealized gain (loss) on derivative securities of related party

 

(5,893,000)

 

 

761,000

 

 

(2,924,000)

 

 

(481,000)

Other comprehensive income (loss)

 

(5,759,000)

 

858,000

 

(2,883,000)

 

(532,000)

Total comprehensive income (loss)

$

36,453,000

 

$

(521,000)

 

$

41,323,000

 

$

(8,448,000)

 

AULT GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

 

For the Six Months Ended June 30,

2021

2020

 

Cash flows from operating activities:

 

 

 

Net income (loss)

$

44,212,000

$

(7,909,000)

Less: Net loss from discontinued operations

 

 

 

(1,698,000)

Net income (loss) from continuing operations

 

44,212,000

 

(6,211,000)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

Depreciation

 

446,000

 

260,000

Amortization

 

191,000

 

 

167,000

Amortization of right-of-use assets

 

441,000

 

247,000

Amortization, related party

 

15,000

 

 

Interest expense – debt discount

 

40,000

 

908,000

Gain on extinguishment of debt

 

(929,000)

 

 

Change in fair value of warrant liability

 

(290,000)

 

10,000

Accretion of original issue discount on notes receivable – related party

 

(4,000)

 

 

15,000

Accretion of original issue discount on notes receivable

 

(955,000)

 

(4,000)

Increase in accrued interest on notes receivable – related party

 

(1,000)

 

 

Stock-based compensation

 

584,000

 

143,000

Realized losses on other investments

 

 

 

28,000

Realized gains on sale of marketable securities

 

(12,283,000)

 

(15,000)

Unrealized gains on marketable equity securities

 

(3,483,000)

 

 

(52,000)

Unrealized (gains) losses on equity securities – related party

 

(39,852,000)

 

65,000

Unrealized (gains) losses on equity securities

 

(1,224,000)

 

 

73,000

Changes in operating assets and liabilities:

 

 

 

Marketable equity securities

 

(9,616,000)

 

Accounts receivable

 

(887,000)

 

 

199,000

Accrued revenue

 

78,000

 

34,000

Inventories

 

485,000

 

 

(35,000)

Prepaid expenses and other current assets

 

(2,537,000)

 

181,000

Other assets

 

(246,000)

 

 

(39,000)

Accounts payable and accrued expenses

 

(2,651,000)

 

1,365,000

Accounts payable, related parties

 

(36,000)

 

 

(24,000)

Income taxes payable

 

2,770,000

 

 

Other current liabilities

 

4,472,000

 

660,000

Lease liabilities

 

(439,000)

 

 

(234,000)

Net cash used in continuing operating activities

 

(21,699,000)

 

(2,259,000)

Net cash provided by discontinued operating activities

 

 

 

1,000

Net cash used in operating activities

 

(21,699,000)

 

(2,258,000)

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchase of property and equipment

 

(5,590,000)

 

(190,000)

Investment in promissory notes, related parties

 

(4,040,000)

 

 

(199,000)

Investments in common stock and warrants, related parties

 

(16,483,000)

 

(10,000)

Investment in real property, related party

 

(2,670,000)

 

 

Proceeds from sale of investment in real property, related party

 

2,670,000

 

Purchase of marketable equity securities

 

 

 

Sales of marketable equity securities

 

430,000

 

110,000

Proceeds from loans receivable

 

 

 

140,000

Investments in debt and equity securities

 

(4,054,000)

 

(3,000)

Net cash used in investing activities

$

(29,737,000)

 

$

(152,000)

AULT GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (continued)

 

For the Six Months Ended June 30,

2021

2020

 

Cash flows from financing activities:

 

 

 

Gross proceeds from sales of common stock

$

144,044,000

$

Financing cost in connection with sales of equity securities

 

(4,541,000)

 

 

Proceeds from convertible notes payable

 

 

100,000

Proceeds from notes payable

 

500,000

 

 

3,148,000

Proceeds from short-term advances – related party

 

 

604,000

Payments on short-term advances – related party

 

 

 

(98,000)

Payments on notes payable

 

(1,917,000)

 

(186,000)

Payments on advances on future receipts

 

-

 

 

(20,000)

Payments of preferred dividends

 

(9,000)

 

(7,000)

Payments on revolving credit facilities, net

 

(23,000)

 

 

68,000

 

 

Net cash provided by financing activities

 

138,054,000

 

3,609,000

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

93,000

 

 

9,000

 

Net increase in cash and cash equivalents

 

86,711,000

 

 

1,208,000

 

Cash and cash equivalents at beginning of period

 

18,680,000

 

 

483,000

 

 

Cash and cash equivalents at end of period

$

105,391,000

$

1,691,000

 

 

 

 

Supplemental disclosures of cash flow information:

Cash paid during the period for interest

$

658,000

 

$

71,000

 

Non-cash investing and financing activities:

 

 

 

Cancellation of convertible notes payable into shares of common stock

$

$

2,689,000

Cancellation of notes payable into shares of common stock

$

449,000

 

$

Payment of accounts payable with digital currency

$

119,000

$

Issuance of common stock in payment of liability

$

 

$

229,000

Cancellation of short-term advances, related party into shares of common stock

$

$

740,000

Issuance of notes payable and convertible notes payable in payment of accrued expenses

$

 

$

420,000

Conversion of debt and equity securities to marketable securities

$

2,656,000

$

Conversion of loans to debt and equity securities

$

150,000

 

$

Conversion of convertible notes payable, related party into shares

of common stock

$

400,000

 

$

 

IR@AultGlobal.com or 1-888-753-2235

 

Source: Ault Global Holdings, Inc.