(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | o | Accelerated filer | o | |||||||||||
x | Smaller reporting company | |||||||||||||
Emerging growth company |
Page | ||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Digital assets | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $0 at March 31, 2023 and December 31, 2022 | |||||||||||
Prepaid expenses and other assets | |||||||||||
Emissions and carbon offset credits | |||||||||||
Income tax receivable | |||||||||||
Current assets held for sale | |||||||||||
Total current assets | |||||||||||
LONG-TERM ASSETS: | |||||||||||
Property and equipment, net | |||||||||||
Other long-term assets | |||||||||||
Total assets | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | |||||||||||
Accrued emissions expense | |||||||||||
Accrued expenses | |||||||||||
Short-term environmental liability | |||||||||||
Long-term debt, current portion | |||||||||||
Current liabilities held for sale | |||||||||||
Total current liabilities | |||||||||||
LONG-TERM LIABILITIES: | |||||||||||
Long-term debt, net of current portion and deferred financing fees | |||||||||||
Environmental liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 10) | |||||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Preferred stock, par value $ | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Cumulative translation adjustment | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders' equity | ( | ( | |||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
REVENUE: | |||||||||||
Datacenter hosting revenue | $ | $ | |||||||||
Cryptocurrency mining revenue | |||||||||||
Power and capacity | |||||||||||
Total revenue | |||||||||||
OPERATING COSTS AND EXPENSES: | |||||||||||
Cost of revenue - datacenter hosting (exclusive of depreciation) | |||||||||||
Cost of revenue - cryptocurrency mining (exclusive of depreciation) | |||||||||||
Cost of revenue - power and capacity (exclusive of depreciation) | |||||||||||
Selling, general and administrative | |||||||||||
Depreciation | |||||||||||
Gain on sale of assets | ( | ||||||||||
Total operating costs and expenses | |||||||||||
Operating (loss) income | ( | ||||||||||
OTHER EXPENSE, NET: | |||||||||||
Interest expense, net | ( | ( | |||||||||
Gain (loss) on sale of digital assets | ( | ||||||||||
Other income, net | |||||||||||
Total other expense, net | ( | ( | |||||||||
Loss from continuing operations before income taxes | ( | ( | |||||||||
Benefit from income taxes | ( | ||||||||||
Net loss from continuing operations | ( | ( | |||||||||
Income from discontinued operations, net of tax | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
(Loss) income per basic share: | |||||||||||
Loss per basic share from continuing operations | $ | ( | $ | ( | |||||||
Income per basic share from discontinued operations | |||||||||||
Loss per basic share | $ | ( | $ | ( | |||||||
(Loss) income per diluted share: | |||||||||||
Loss per diluted share from continuing operations | $ | ( | $ | ( | |||||||
Income per diluted share from discontinued operations | |||||||||||
Loss per diluted share | $ | ( | $ | ( | |||||||
Average Shares Outstanding | |||||||||||
Basic | |||||||||||
Diluted |
Common Stock | Additional Paid - In Capital | Cumulative Translation Adjustment | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Issuance of shares, net of issuance costs | — | — | ||||||||||||||||||||||||||||||||||||
Restricted shares award issuance, net of withholdings | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Issuance of shares for amendment fee associated with debt modification (Note 9), net of issuance costs | — | — | — | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Issuance of shares, net of issuance costs | — | — | ||||||||||||||||||||||||||||||||||||
Restricted shares award issuance, net of withholdings | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||
Proceeds from stock options exercised | — | — | — | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | ( | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Income from discontinued operations | |||||||||||
Net loss from continuing operations | ( | ( | |||||||||
Adjustments to reconcile net loss from continuing operations to net cash flow from operating activities: | |||||||||||
Depreciation | |||||||||||
Accrued interest added to principal | |||||||||||
Deferred income taxes | ( | ||||||||||
Amortization of debt issuance costs | |||||||||||
Gain on sale of assets | ( | ||||||||||
Stock-based compensation expense | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Emissions and carbon offset credits | |||||||||||
Digital assets | |||||||||||
Prepaids and other assets | ( | ||||||||||
Income tax receivable | |||||||||||
Accounts payable | |||||||||||
Accrued emissions | ( | ||||||||||
Accrued expenses | ( | ||||||||||
Income tax payable | |||||||||||
Other | |||||||||||
Net cash flow (used for) provided by operating activities from continuing operations | ( | ||||||||||
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS: | |||||||||||
Purchases of and deposits for property and equipment | ( | ( | |||||||||
Proceeds from sale of assets | |||||||||||
Proceeds from sale of marketable securities | |||||||||||
Net cash flow used for investing activities from continuing operations | ( | ( | |||||||||
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS: | |||||||||||
Proceeds from issuance of common stock, net of issuance costs | |||||||||||
Proceeds from stock options exercised | |||||||||||
Restricted stock unit awards settled in cash for taxes | ( | ||||||||||
Proceeds from debt, net of issuance costs | |||||||||||
Principal payments on debt | ( | ( | |||||||||
Repayments of lease obligations | ( | ||||||||||
Net cash flow provided by financing activities from continuing operations | |||||||||||
Discontinued Operations: | |||||||||||
Net cash flow from operating activities of discontinued operations | |||||||||||
Net cash flow from investing activities of discontinued operations | |||||||||||
Net cash flow from financing activities of discontinued operations | |||||||||||
Increase (decrease) in cash and cash equivalents from discontinued operations | |||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | |||||||||||
CASH AND CASH EQUIVALENTS - beginning of year | |||||||||||
CASH AND CASH EQUIVALENTS - end of period | $ | $ |
$ in thousands | March 31, 2023 | December 31, 2022 | |||||||||
Assets: | |||||||||||
Accounts receivable | $ | $ | |||||||||
Prepaid expenses and other current assets | |||||||||||
Current assets held for sale | |||||||||||
Property and equipment, net | |||||||||||
Other assets | |||||||||||
Long-term assets held for sale | |||||||||||
Loss on classification to held for sale | ( | ||||||||||
Assets held for sale | |||||||||||
Liabilities: | |||||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Current liabilities held for sale | |||||||||||
Other long-term liabilities | |||||||||||
Long-term liabilities held for sale | |||||||||||
Liabilities held for sale | $ | $ |
Three Months Ended March 31, | |||||||||||
$ in thousands | 2023 | 2022 | |||||||||
Revenue | $ | $ | |||||||||
Cost of revenue - services and other (exclusive of depreciation and amortization) | ( | ( | |||||||||
Depreciation and amortization | ( | ||||||||||
Selling, general and administrative | ( | ( | |||||||||
Merger and other costs | ( | ||||||||||
Gain on asset disposal | |||||||||||
Loss on assets classified as held for sale | ( | ||||||||||
Other income, net | ( | ||||||||||
Pretax income from discontinued operations | |||||||||||
Provision for income taxes | |||||||||||
Income from discontinued operations, net of tax | $ | $ |
$ in thousands | Estimated Useful Lives | March 31, 2023 | December 31, 2022 | ||||||||||||||
Miners | $ | $ | |||||||||||||||
Miner facility infrastructure | |||||||||||||||||
Land | N/A | ||||||||||||||||
Equipment | |||||||||||||||||
Construction in process | N/A | ||||||||||||||||
Miner deposits | N/A | ||||||||||||||||
Less: Accumulated depreciation | ( | ||||||||||||||||
$ | $ |
$ in thousands | Balance as of: | |||||||||||||||||||||||||||||||||||||
Note | Loan Date | Maturity Date | Interest Rate | Amount Financed | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||
Equipment Financings: | ||||||||||||||||||||||||||||||||||||||
A-D | May 2021 | October 2023 | % | $ | $ | $ | ||||||||||||||||||||||||||||||||
E | July 2021 | January 2023 | % | $ | ||||||||||||||||||||||||||||||||||
F | March 2022 | April 2024 | % | $ | ||||||||||||||||||||||||||||||||||
Senior Unsecured Notes | October 2021/December 2021 | October 2026 | % | $ | ||||||||||||||||||||||||||||||||||
Secured Promissory Note | March 2022 | November 2023 | % | $ | ||||||||||||||||||||||||||||||||||
Senior Secured Loan | January 2023 | January 2025 | % | $ | ||||||||||||||||||||||||||||||||||
Total Debt | ||||||||||||||||||||||||||||||||||||||
Less: Debt discount and issue costs | ( | ( | ||||||||||||||||||||||||||||||||||||
Total debt at book value | ||||||||||||||||||||||||||||||||||||||
Less: Current portion | ( | ( | ||||||||||||||||||||||||||||||||||||
Long-term debt, net of current portion and deferred financing fees | $ | $ |
$ in thousands | |||||
Remainder of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Total | $ |
Three Months Ended March 31, | |||||||||||
$ in thousands, except per share amounts | 2023 | 2022 | |||||||||
Numerator | |||||||||||
Net loss from continuing operations | $ | ( | $ | ( | |||||||
Income from discontinued operations, net of tax | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Denominator | |||||||||||
Basic weighted average shares outstanding | |||||||||||
Diluted weighted average shares outstanding (a) | |||||||||||
(Loss) income per basic share: | |||||||||||
Loss per basic share from continuing operations | $ | ( | $ | ( | |||||||
Income per basic share from discontinued operations | |||||||||||
Loss per basic share | $ | ( | $ | ( | |||||||
(Loss) income per diluted share: | |||||||||||
Loss per diluted share from continuing operations | $ | ( | $ | ( | |||||||
Income per diluted share from discontinued operations | |||||||||||
Loss per diluted share | $ | ( | $ | ( |
(Unaudited) | |||||||||||
Three Months Ended March 31, | |||||||||||
$ in thousands, except per share amounts | 2023 | 2022 | |||||||||
Numerator | |||||||||||
Net loss from continuing operations | $ | ( | $ | ( | |||||||
Income from discontinued operations, net of tax | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Denominator | |||||||||||
Basic weighted average shares outstanding | |||||||||||
Diluted weighted average shares outstanding | |||||||||||
(Loss) income per basic share: | |||||||||||
Loss per basic share from continuing operations | $ | ( | $ | ( | |||||||
Income per basic share from discontinued operations | |||||||||||
Loss per basic share | $ | ( | $ | ( | |||||||
(Loss) income per diluted share: | |||||||||||
Loss per diluted share from continuing operations | $ | ( | $ | ( | |||||||
Income per diluted share from discontinued operations | |||||||||||
Loss per diluted share | $ | ( | $ | ( |
RSUs | Weighted Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2022 | $ | ||||||||||
Vested | ( | $ | |||||||||
Unvested at March 31, 2023 | $ |
Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||||||||||||||||||
Outstanding at December 31, 2022 | $ | |||||||||||||||||||||||||
Forfeited | ( | $ | ||||||||||||||||||||||||
Outstanding at March 31, 2023 | $ | $ | ||||||||||||||||||||||||
Exercisable as of March 31, 2023 | $ | $ |
$ in thousands | March 31, 2023 | December 31, 2022 | |||||||||
Prepaid expenses: | |||||||||||
Electric deposits | $ | $ | |||||||||
Prepaid insurance | |||||||||||
Other | |||||||||||
Total | $ | $ | |||||||||
Accrued expenses: | |||||||||||
Accrued interest | $ | $ | |||||||||
Other | |||||||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||||||
$ in thousands | 2023 | 2022 | |||||||||
Property and equipment purchases in accounts payable | $ | $ | |||||||||
Common stock issued for amendment fee to lender | $ | $ | |||||||||
Exchange of assets for reduction in debt | $ | $ | |||||||||
Exchange of coupons for reduction in debt | $ | $ | |||||||||
Exchange of equipment deposits for reduction in debt | $ | $ | |||||||||
Accrued interest added to debt principal | $ | $ |
Three Months Ended March 31, | Variance | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||
Datacenter hosting revenue | $ | 6,944 | $ | — | $ | 6,944 | N/A | ||||||||||||||||
Cryptocurrency mining revenue | 6,451 | 23,232 | (16,781) | (72) | % | ||||||||||||||||||
Power and capacity | 1,762 | 5,923 | (4,161) | (70) | % | ||||||||||||||||||
Total revenue | 15,157 | 29,155 | (13,998) | (48) | % | ||||||||||||||||||
OPERATING COSTS AND EXPENSES: | |||||||||||||||||||||||
Cost of revenue (exclusive of depreciation) | 9,735 | 12,479 | (2,744) | (22) | % | ||||||||||||||||||
Selling, general and administrative | 9,013 | 11,809 | (2,796) | (24) | % | ||||||||||||||||||
Depreciation | 3,820 | 3,653 | 167 | 5 | % | ||||||||||||||||||
Gain on sale of assets | (1,744) | — | (1,744) | N/A | |||||||||||||||||||
Total operating costs and expenses | 20,824 | 27,941 | (7,117) | (25) | % | ||||||||||||||||||
Operating (loss) income | (5,667) | 1,214 | (6,881) | (567) | % | ||||||||||||||||||
OTHER EXPENSE, NET: | |||||||||||||||||||||||
Interest expense, net | (3,573) | (3,353) | (220) | (7) | % | ||||||||||||||||||
Gain (loss) on sale of digital assets | 398 | (5) | 403 | N/A | |||||||||||||||||||
Other income, net | — | 16 | (16) | N/A | |||||||||||||||||||
Total other expense, net | (3,175) | (3,342) | 167 | 5 | % | ||||||||||||||||||
Loss from continuing operations before income taxes | (8,842) | (2,128) | (6,714) | (316) | % | ||||||||||||||||||
Benefit from income taxes | — | (381) | 381 | N/A | |||||||||||||||||||
Net loss from continuing operations | $ | (8,842) | $ | (1,747) | $ | (7,095) | (406) | % | |||||||||||||||
Adjusted Amounts (a) | |||||||||||||||||||||||
Adjusted operating (loss) income from continuing operations | $ | (5,794) | $ | 3,318 | $ | (9,112) | (275) | % | |||||||||||||||
Adjusted operating margin from continuing operations | (38.2) | % | 11.4 | % | |||||||||||||||||||
Adjusted net loss from continuing operations | $ | (8,969) | $ | (211) | $ | (8,758) | N/A | ||||||||||||||||
Other Financial Data (a) | |||||||||||||||||||||||
EBITDA (loss) from continuing operations | $ | (1,449) | $ | 4,878 | $ | (6,327) | (130) | % | |||||||||||||||
as a percent of revenues | (9.6) | % | 16.7 | % | |||||||||||||||||||
Adjusted EBITDA (loss) from continuing operations | $ | (1,095) | $ | 7,344 | $ | (8,439) | (115) | % | |||||||||||||||
as a percent of revenues | (7.2) | % | 25.2 | % |
Three Months Ended March 31, | Variance | ||||||||||||||||||||||
$ in thousands, except $ per MWh and average bitcoin price | 2023 | 2022 | $ | % | |||||||||||||||||||
Revenue | |||||||||||||||||||||||
Datacenter hosting revenue | $ | 6,944 | $ | — | $ | 6,944 | N/A | ||||||||||||||||
Cryptocurrency mining revenue | 6,451 | 23,232 | (16,781) | (72) | % | ||||||||||||||||||
Power and capacity | 1,762 | 5,923 | (4,161) | (70) | % | ||||||||||||||||||
Total revenue | $ | 15,157 | $ | 29,155 | $ | (13,998) | (48) | % | |||||||||||||||
Components of revenue as % of total | |||||||||||||||||||||||
Datacenter hosting | 46 | % | — | % | |||||||||||||||||||
Cryptocurrency mining | 42 | % | 80 | % | |||||||||||||||||||
Power and capacity | 12 | % | 20 | % | |||||||||||||||||||
Total revenue | 100 | % | 100 | % | |||||||||||||||||||
MWh | |||||||||||||||||||||||
Datacenter hosting | 90,979 | — | 90,979 | N/A | |||||||||||||||||||
Cryptocurrency mining | 59,633 | 101,090 | (41,457) | (41) | % | ||||||||||||||||||
Power and capacity | 30,192 | 53,261 | (23,069) | (43) | % | ||||||||||||||||||
Revenue per MWh | |||||||||||||||||||||||
Datacenter hosting | $ | 76 | $ | — | $ | 76 | N/A | ||||||||||||||||
Cryptocurrency mining | $ | 108 | $ | 230 | $ | (122) | (53) | % | |||||||||||||||
Power and capacity | $ | 58 | $ | 111 | $ | (53) | (48) | % | |||||||||||||||
Cost of revenue (exclusive of depreciation) | |||||||||||||||||||||||
Datacenter hosting | $ | 4,671 | $ | — | $ | 4,671 | N/A | ||||||||||||||||
Cryptocurrency mining | $ | 3,248 | $ | 8,456 | $ | (5,208) | (62) | % | |||||||||||||||
Power and capacity | $ | 1,816 | $ | 4,023 | $ | (2,207) | (55) | % | |||||||||||||||
Cost of revenue per MWh (exclusive of depreciation) | |||||||||||||||||||||||
Datacenter hosting | $ | 51 | $ | — | $ | 51 | N/A | ||||||||||||||||
Cryptocurrency mining | $ | 54 | $ | 84 | $ | (30) | (36) | % | |||||||||||||||
Power and capacity | $ | 60 | $ | 76 | $ | (16) | (21) | % | |||||||||||||||
Cryptocurrency Mining Metrics | |||||||||||||||||||||||
Bitcoins produced: | |||||||||||||||||||||||
Datacenter hosting | 393 | — | 393 | N/A | |||||||||||||||||||
Cryptocurrency mining | 305 | 561 | (256) | (46) | % | ||||||||||||||||||
Total bitcoins produced | 698 | 561 | 137 | 24 | % | ||||||||||||||||||
Average bitcoin price | $ | 22,877 | $ | 41,188 | $ | (18,311) | (44) | % | |||||||||||||||
Average active hash rate (EH/s) (Company-owned miners) | (24) | % | |||||||||||||||||||||
Average difficulty | 51 | % |
Three Months Ended March 31, | Variance | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
Datacenter hosting | $ | 4,671 | $ | — | $ | 4,671 | N/A | ||||||||||||||||
Cryptocurrency mining | 3,248 | 8,456 | (5,208) | (62) | % | ||||||||||||||||||
Power and capacity | 1,816 | 4,023 | (2,207) | (55) | % | ||||||||||||||||||
Total cost of revenue (exclusive of depreciation) | $ | 9,735 | $ | 12,479 | $ | (2,744) | (22) | % | |||||||||||||||
As a percentage of total revenue | 64.2 | % | 42.8 | % |
Three Months Ended March 31, | Variance | ||||||||||||||||||||||
2023 | 2022 | $ | % | ||||||||||||||||||||
Adjusted operating (loss) income from continuing operations | |||||||||||||||||||||||
Operating (loss) income from continuing operations | $ | (5,667) | $ | 1,214 | $ | (6,881) | (567) | % | |||||||||||||||
Expansion costs | — | 2,104 | (2,104) | N/A | |||||||||||||||||||
Gain on sale of assets | (1,744) | — | (1,744) | N/A | |||||||||||||||||||
Debt restructuring costs | 1,617 | — | 1,617 | N/A | |||||||||||||||||||
Adjusted operating (loss) income from continuing operations | $ | (5,794) | $ | 3,318 | $ | (9,112) | (275) | % | |||||||||||||||
Adjusted operating margin | (38.2 | %) | 11.4 | % | |||||||||||||||||||
Adjusted net loss from continuing operations | |||||||||||||||||||||||
Net loss from continuing operations | $ | (8,842) | $ | (1,747) | $ | (7,095) | 406 | % | |||||||||||||||
Expansion costs, after tax | — | 1,536 | (1,536) | N/A | |||||||||||||||||||
Gain on sale of assets, after tax | (1,744) | — | (1,744) | N/A | |||||||||||||||||||
Debt restructuring costs, after tax | 1,617 | — | 1,617 | N/A | |||||||||||||||||||
Adjusted net loss from continuing operations | $ | (8,969) | $ | (211) | $ | (8,758) | N/A | ||||||||||||||||
EBITDA (loss) and Adjusted EBITDA (loss) from continuing operations | |||||||||||||||||||||||
Net loss from continuing operations | $ | (8,842) | $ | (1,747) | $ | (7,095) | (406) | % | |||||||||||||||
Benefit from income taxes | — | (381) | 381 | N/A | |||||||||||||||||||
Interest expense, net | 3,573 | 3,353 | 220 | 7 | % | ||||||||||||||||||
Depreciation | 3,820 | 3,653 | 167 | 5 | % | ||||||||||||||||||
EBITDA (loss) from continuing operations | (1,449) | 4,878 | (6,327) | (130) | % | ||||||||||||||||||
Stock-based compensation | 481 | 362 | 119 | 33 | % | ||||||||||||||||||
Gain on sale of assets | (1,744) | — | (1,744) | N/A | |||||||||||||||||||
Debt restructuring costs | 1,617 | — | 1,617 | N/A | |||||||||||||||||||
Expansion costs | — | 2,104 | (2,104) | N/A | |||||||||||||||||||
Adjusted EBITDA (loss) from continuing operations | $ | (1,095) | $ | 7,344 | $ | (8,439) | (115) | % |
$ in thousands | Total | Remainder of 2023 | 2024-2025 | 2026-2027 | Thereafter | |||||||||||||||||||||||||||
Debt payments | $ | 125,392 | $ | 14,585 | $ | 32,470 | $ | 78,337 | $ | - | ||||||||||||||||||||||
Leases | 209 | 98 | 111 | — | — | |||||||||||||||||||||||||||
Environmental obligations | 28,000 | 600 | 9,500 | 9,850 | 8,050 | |||||||||||||||||||||||||||
Natural gas transportation | 14,220 | 1,422 | 3,792 | 3,792 | 5,214 | |||||||||||||||||||||||||||
Total | $ | 167,821 | $ | 16,705 | $ | 45,873 | $ | 91,979 | $ | 13,264 |
Three Months Ended March 31, | |||||||||||
$ in thousands | 2023 | 2022 | |||||||||
Net cash (used for) provided by operating activities from continuing operations | $ | (607) | $ | 4,723 | |||||||
Net cash used for investing activities from continuing operations | (5,867) | (70,641) | |||||||||
Net cash provided by financing activities from continuing operations | 4,813 | 78,163 | |||||||||
Increase in cash and cash equivalents from discontinued operations | 3,490 | 1,609 | |||||||||
Net change in cash and cash equivalents | 1,829 | 13,854 | |||||||||
Cash and cash equivalents at beginning of year | 15,217 | 82,599 | |||||||||
Cash and cash equivalents at end of period | $ | 17,046 | $ | 96,453 |
Exhibit No. | Description | |||||||
10.1 | Debt Settlement Agreement, dated as of January 30, 2023, by and among Greenidge Generation Holdings Inc., Greenidge Generation LLC, the other Subsidiaries of Greenidge Generation Holdings Inc., and NYDIG ABL LLC (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on January 30, 2023). | |||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101 | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Balance Sheets, (ii) the Statements of Operations, (iii) the Statements of Cash Flows and (iv) the Notes to Unaudited Condensed Interim Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Furnished herewith. |
Greenidge Generation Holdings Inc. | ||||||||
Date: May 15, 2023 | By: | /s/ David Anderson | ||||||
David Anderson | ||||||||
Chief Executive Officer | ||||||||
Date: May 15, 2023 | By: | /s/ Robert Loughran | ||||||
Robert Loughran | ||||||||
Chief Financial Officer |
Date: | May 15, 2023 | By: | /s/ David C. Anderson | |||||||||||
David C. Anderson | ||||||||||||||
Chief Executive Officer |
Date: | May 15, 2023 | By: | /s/ Robert Loughran | |||||||||||
Robert Loughran | ||||||||||||||
Chief Financial Officer |
Date: | May 15, 2023 | By: | /s/ David C. Anderson | |||||||||||
David C. Anderson | ||||||||||||||
Chief Executive Officer |
Date: | May 15, 2023 | By: | /s/ Robert Loughran | |||||||||||
Robert Loughran | ||||||||||||||
Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2023 |
Dec. 31, 2022 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, issued (in shares) | 59,798,127 | 46,252,779 |
Common stock, outstanding (in shares) | 59,798,127 | 46,252,779 |
ORGANIZATION AND DESCRIPTION OF BUSINESS |
3 Months Ended |
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Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ORGANIZATION AND DESCRIPTION OF BUSINESSGreenidge Generation Holdings Inc. ("Greenidge") and its subsidiaries (collectively, the "Company") own and operate a vertically integrated cryptocurrency datacenter and power generation company. The Company owns and operates facilities at two locations: the Town of Torrey, New York (the "New York Facility") and Spartanburg, South Carolina (the "South Carolina Facility"). The Company generates revenue in U.S. dollars by providing hosting, power and technical support services to third-party owned bitcoin mining equipment and generates revenue in the form of bitcoin by earning bitcoin as rewards and transaction fees for supporting the global bitcoin network with application-specific integrated circuit computers ("ASICs" or "miners") owned by the Company, which may be operated at the Company's sites or at third-party hosting sites through short-term hosting agreements. The earned bitcoin are then exchanged for U.S. dollars. The Company also owns and operates a 106 megawatt ("MW") power facility that is connected to the New York Independent System Operator ("NYISO") power grid. In addition to the electricity used "behind the meter" by the New York datacenter, the Company sells electricity to the NYISO at all times when its power plant is running and increases or decreases the amount of electricity sold based on prevailing prices in the wholesale electricity market and demand for electricity. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of Condensed Consolidated Financial Statements In the opinion of Greenidge management, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results for the interim periods presented and such adjustments are of a normal recurring nature. The results for the unaudited interim condensed consolidated statements of operations are not necessarily indicative of results to be expected for the year ending December 31, 2023 or for any future interim period. The unaudited interim condensed consolidated financial statements do not include all of the information and notes required by United States Generally Accepted Accounting Principles for complete financial statements. The Company has reflected the operations of its Support.com business as discontinued operations for all periods presented. See Note 3, “Discontinued Operations” for further information. Unless otherwise noted, amounts and disclosures throughout these notes to the Company's condensed consolidated financial statements relate solely to continuing operations and exclude all discontinued operations. The accompanying condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements of the Company in its 2022 Annual Report on Form 10-K. Going Concern In accordance with the Financial Accounting Standards Board (the "FASB") Accounting Standards Update ("ASU") 2014-15, Presentation of Financial Statements – Going Concern, the Greenidge's management evaluated whether there are conditions or events that pose risk associated with the Company's ability to continue as a going concern within one year after the date these financial statements have been issued. The Company’s condensed consolidated financial statements have been prepared assuming that it will continue as a going concern. When comparing to December 31, 2021, during 2022 the bitcoin price declined as much as 66% and ended the year 64% lower. Natural gas prices were much higher during 2022 compared to 2021, peaking at approximately 160% higher than the December 31, 2021 price, and ending the year approximately 47% higher than the December 31, 2021 price. The volatility in these commodity prices negatively impacted the Company's results in 2022. As a result, management took certain actions during the second half of 2022 and the first quarter of 2023 to improve the Company's liquidity that are described further below. At March 31, 2023, the Company had $17.0 million of cash and cash equivalents, while having $15.6 million of accounts payable and accrued expenses, as well as $16.7 million of principal and interest payments on debt due within the next 12 months. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. In an effort to improve liquidity, on January 30, 2023, the Company entered into debt restructuring agreements with NYDIG ABL LLC ("NYDIG") and B. Riley Commercial Capital, LLC ("B. Riley Commercial"). The Company also raised equity through issuances of its stock under a common stock purchase agreement, as amended, dated as of April 13, 2022 (the “Equity Purchase Agreement”), by and between the Company and B. Riley Principal Capital, LLC (“B. Riley Principal”) and an at-the-market issuance sales agreement, as amended, dated as of September 19, 2022, by and among the Company, B. Riley Securities, Inc. (“B. Riley Securities”) and Northland Securities, Inc., relating to shares of Greenidge’s Class A common stock (the "ATM Agreement"). See Note 5, "Debt" for further details regarding the debt restructuring agreements, and see Note 9, "Stockholder's Equity" for further details regarding the equity purchase agreements and the ATM Agreement. The restructuring of the NYDIG debt is expected to improve the Company's liquidity during 2023 as annual interest payments on the remaining $17.3 million principal balance are approximately $2.5 million. This reduced debt service is substantially lower than the $62.7 million of principal and interest payments which would have been required in 2023 pursuant to the 2021 and 2022 Master Equipment Finance Agreements, both of which were refinanced in January 2023. In September 2022, Greenidge entered into the ATM Agreement, and since October 23, 2022 through May 12, 2023, have received net proceeds of $11.0 million from sales of Class A common stock under the ATM Agreement, of which $9.0 million of net proceeds was received since January 1, 2023. See Note 9, "Stockholder's Equity", for further details. In conjunction with the restructuring of the debt with NYDIG, the Company also entered into hosting agreements with NYDIG on January 30, 2023 (the “NYDIG Hosting Agreements”), which is expected to improve its liquidity position, as it provided for cost reimbursements for key input costs, while allowing the Company to participate in the upside as bitcoin prices rise. In addition, the Company sold equipment, coupons and certain environmental credits for total proceeds of $11.7 million from the second quarter of 2022 through the first quarter of 2023 to raise additional funds. Since entering into the NYDIG Hosting Agreements, the Company has identified opportunities to deploy its company-owned miners. In March 2023, the Company entered into a hosting agreement with Conifex Timber Inc. ("Conifex"), whereby Conifex will provide hosting services to Greenidge utilizing renewable power (the “Conifex Hosting Agreement”). In April 2023, the Company entered into a hosting agreement with Core Scientific, Inc. ("Core") in which Core will host and operate Greenidge-owned bitcoin miners at its facilities (the “Core Hosting Agreement”, and together with the NYDIG Hosting Agreements and the Conifex Hosting Agreement, the “Hosting Agreements”). In addition, the Company installed approximately 1,500 additional company-owned miners at its existing facilities. The Company believes that the installation of these miners at Conifex and Core facilities along with those miners at its own facilities will improve the Company's profits and liquidity during the remainder of 2023 and beyond. Despite these improvements to the Company's financial condition, Greenidge management expects that it will require additional capital in order to fund the Company’s expenses and to support the Company’s debt servicing requirements. Management continues to assess different options to improve its liquidity which include, but are not limited to: •issuances of equity, including but not limited to issuances under the Equity Purchase Agreement and/or the ATM Agreement. •a sale of the Company's excess real estate at its South Carolina facility that is not used in its datacenter operations. The Company estimates that its cash resources will fall below $10 million by the end of the first quarter of 2024, which would be considered an Event of Default as defined under the Senior Secured Loan that would require the repayment of the loan balance if a waiver is not obtained from the lender. The Company's estimate of cash resources available to the Company through 2023 and through the first quarter of 2024 is dependent on completion of certain actions, including its ability to sell excess real estate in South Carolina, as mentioned above, bitcoin prices and blockchain difficulty levels similar to those existing as of the filing of this Quarterly Report on Form 10-Q and energy prices similar to the those experienced in the first quarter of 2023. While bitcoin prices have begun to recover in the first quarter of 2023, management cannot predict when or if bitcoin prices will recover to prior levels, or volatility in energy costs. While the Company continues to work to implement options to improve liquidity, there can be no assurance that these efforts will be successful and the Company's liquidity could be negatively impacted by items outside of its control, in particular, significant decreases in the price of bitcoin, regulatory changes concerning cryptocurrency, increases in energy costs or other macroeconomic conditions and other matters identified in Part I, Item 1A "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Given this uncertainty regarding the Company's financial condition over the next 12 months, the Company has concluded that there is substantial doubt about its ability to continue as a going concern for a reasonable period of time. Reclassifications Certain prior year amounts have been reclassified to conform to the current year’s presentation. At December 31, 2022, the Company reported its Support.com business as discontinued operations. As a result, assets and liabilities related to the Support.com have been classified as held for sale for all periods presented. Revenue From Contracts With Customers - Hosting On January 30, 2023, Greenidge entered into the NYDIG Hosting Agreements, with Greenidge operating miners owned by NYDIG affiliates. Under these agreements, the Company agreed to host, power and provide technical support services, and other related services, to NYDIG affiliates’ mining equipment at certain Greenidge facilities for a term of five years. The terms of such arrangements requires NYDIG affiliates to pay a reimbursement fee that covers the cost of power and direct costs associated with management of the mining facilities, a hosting fee as well as a gross profit-sharing arrangement. Under the NYDIG Hosting Agreements, NYDIG affiliates are required to provide Greenidge an upfront security deposit, pay a configuration fee for the setup of new or relocated miners, and pay for repairs and parts consumed in non-routine maintenance (i.e., units that are out of service for more than 12 hours). Datacenter Hosting Revenue The Company generates revenue from contacts with customers from providing hosting services to a single third-party customer. Hosting revenue is recognized as services are performed on a variable basis. The Company recognizes variable hosting revenue each month as the uncertainty related to the consideration is resolved, hosting services are provided to its customer, and its customer utilizes the hosting service (the customer simultaneously receives and consumes the benefits of the Company's performance). The Company's performance obligation related to these services is satisfied over time. The Company recognizes revenue for services that are performed on a consumption basis (the amount of electricity utilized by the customer) as well as through a fixed fee that is earned monthly and a profit sharing component based on the net proceeds earned by the customer in the month from bitcoin mining activities. The Company bills its customer at the beginning of each month based on the anticipated consumption under the contract. Invoices are collected in the month of invoicing under the terms of the contract. The Company recognizes revenue based on actual consumption in the period and invoices adjustments in subsequent periods or retains credits toward future consumption. Recent Accounting Pronouncements, Adopted There were not any recently adopted or newly issued accounting pronouncements, that have had, or are expected to have, a material impact on the Company's condensed consolidated financial statements and disclosures.
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DISCONTINUED OPERATIONS |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS A business is classified as held for sale when management having the authority to approve the action commits to a plan to sell or exit the business, the sale or exit is probable to occur during the next 12 months at a price or cost that is reasonable in relation to its current fair value and certain other criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. When the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized and updated each reporting period as appropriate. The contract for Support.com's largest customer was not renewed upon expiration on December 31, 2022. As a result of this material change in the business, management and the board of directors made the determination to consider various alternatives for Support.com, including the disposition of assets. At December 31, 2022, the Company classified the Support.com business as held for sale and discontinued operations in the condensed consolidated financial statements as a result of its strategic shift to strictly focus on its cryptocurrency datacenter and power generation operations. In January 2023, Greenidge completed the sale of a portion of the assets of Support.com for net proceeds of approximately $2.6 million and is continuing to evaluate alternatives for the remainder of the Support.com segment assets. Major classes of assets and liabilities consist of the following:
The Company reasonably expects to close on the sale or exit of Support.com within one year; therefore, the assets and liabilities of Support.com have been presented as current at March 31, 2023 and December 31, 2022. Financial results from discontinued operations consist of the following:
The Company’s effective income tax rate from discontinued operations for the three months ended March 31, 2023 and 2022 was 0% and 1.0%, respectively , primarily due to foreign rate differences.
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PROPERTY AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following at March 31, 2023 and December 31, 2022:
Total depreciation expense was $3.8 million and $3.7 million for the three months ended March 31, 2023 and 2022, respectively. On January 30, 2023, Greenidge entered into an agreement regarding its 2021 and 2022 Master Equipment Finance Agreements with NYDIG. During the three months ended March 31, 2023, the Company transferred ownership of bitcoin mining equipment with net book value of $50.0 million and miner deposits of $7.4 million that remained accrued to Greenidge for previous purchases of mining equipment with a bitcoin miner manufacturer and the related debt was canceled pursuant to a debt settlement agreement entered into with NYDIG. There was no gain or loss recognized on the sales as these assets. The Company recognized a gain on the sale of assets of $1.7 million, which primarily related to the sale of bitcoin miner manufacturer coupons, including $1.1 million that were transferred as part of the debt restructuring agreement with NYDIG.
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DEBT |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT The following table provides information on the Company's debt agreements:
The Company incurred interest expense of $3.6 million and $3.4 million during the three months ended March 31, 2023 and 2022, respectively, under the terms of these financings. Senior Secured Loan On March 21, 2022, Greenidge, as guarantor, together with its wholly-owned subsidiaries GTX Gen 1 Collateral LLC, GNY Collateral LLC and GSC Collateral LLC (collectively, the "Borrowers"), entered into a Master Equipment Finance Agreement (the "NYDIG Financing Agreement") with NYDIG, as lender, whereby NYDIG agreed to lend to the Borrowers approximately $81 million under loan schedules that were partially funded for approximately $54 million in March 2022, with additional funding of $17 million through December 31, 2022, to finance the acquisition of certain miners and related equipment (the "Financed Equipment"). The Borrowers' obligations under the NYDIG Financing Agreement were fully and unconditionally guaranteed by Greenidge. Outstanding borrowings under the NYDIG Financing Agreement were secured by all assets of the Borrowers, including without limitation, the Financed Equipment and proceeds thereof (including bitcoin). The loan schedules bore interest at a rate of 13% per annum and had terms of 25 months. Certain loan schedules were interest-only for a specified period and otherwise payments on loan schedules included both an interest and principal payment. Pursuant to the terms of the NYDIG Financing Agreement, the Borrowers and with certain exceptions, the Company, were subject to certain covenants and restrictive provisions which, among other things limited: the Borrowers’ ability to incur additional indebtedness for borrowed money; additional liens on the collateral or the equity interests of any of the Borrowers; consolidations or mergers including the Borrowers or the Company unless such would not constitute a Change in Control (as defined therein); disposing of the collateral or any portion of the collateral with certain exceptions; the Borrowers’ ability to make certain restricted payments and investments; and the ability to create certain direct obligations of the Borrowers or the Company unless the NYDIG Financing Agreement is at least pari passu in right of payment; each of which were subject to customary and usual exceptions and baskets. The loans under the NYDIG Financing Agreement could not be voluntarily partially prepaid, but could be prepaid in whole subject to a make-whole calculation. The NYDIG Financing Agreement is denoted in the table above as "Equipment Financings: A - D and F." At December 31, 2022, Greenidge owed a payment of principal and interest in the amount of approximately $1.0 million due on December 25, 2022. Prior to defaulting on any payments, the Company and NYDIG entered into a waiver that stated both parties agreed that failure to pay the December 25, 2022 and the January 10, 2023 payments when due would not be an event of default if payment was made in full by January 27, 2023. On January 30, 2023, the Company concurrently entered into a debt settlement agreement (the "Debt Settlement Agreement"), the Asset Purchase Agreement (the "NYDIG Purchase Agreement"), and a Senior Secured Loan Agreement (the "Senior Secured Loan") with NYDIG in order to refinance and replace certain outstanding indebtedness under certain Master Equipment Financing Agreements and related loan documentation (the "MEFAs"). The $75.8 million in debt previously outstanding under the MEFAs was reduced by $58.5 million pursuant to the Debt Settlement Agreement and the remaining $17.3 million outstanding under the MEFAs was refinanced. In exchange for this reduction in debt, the Company transferred under the NYDIG Purchase Agreement $50.0 million of bitcoin miners to NYDIG and $8.5 million of miner deposits and coupons that remained accrued to Greenidge for previous purchases of mining equipment with a bitcoin miner manufacturer. As part of the Debt Settlement Agreement, the Company entered into the Senior Secured Loan Agreement, as borrower, with NYDIG, as administrative agent and as collateral agent and is denoted in the table above as "Senior Secured Loan". The Company evaluated the amendment under ASC 470-50, "Debt Modification and Extinguishment", and concluded that the updated terms qualified as a debt modification, therefore, no gain or loss was recorded. The initial principal balance under the Secured Loan (the "Refinanced Amount") is approximately $17.3 million. Interest is payable monthly at an interest rate of 15% per annum, computed on the basis of a 360 day year of twelve 30-day months through January 30, 2025. The Secured Loan includes clauses requiring the Company to maintain cash balances in excess of $10 million, and failure to maintain this balance may be considered an event of default by the lender. The Secured Loan contains customary representations, warranties and covenants including restrictions on indebtedness, liens, restricted payments and dividend, investments, asset sales and similar covenants and contains customary events of default. In addition, the Secured Loan allowed for a voluntary prepayment of the loan in kind of approximately $10.2 million by transferring ownership of certain mining infrastructure assets to NYDIG if NYDIG entered into a binding agreement by April 30, 2023, facilitated by Greenidge, securing rights to a site for a future mining facility. The Company was informed on April 30, 2023 that NYDIG would not be entering into the binding agreement for the future mining facility and that portion of the debt remains outstanding. Secured Promissory Note On March 18, 2022, Greenidge issued a secured promissory note, as borrower, in favor of B. Riley Commercial as noteholder (the "Noteholder"), evidencing a $26.5 million aggregate principal amount loan by B. Riley Commercial to Greenidge (the "Secured Promissory Note"). The Secured Promissory Note is guaranteed by certain of Greenidge’s wholly-owned subsidiaries: Greenidge South Carolina LLC, GSC RE LLC and 300 Jones Road LLC. The loan outstanding under the Secured Promissory Note originally bore interest at a rate of 6% per annum and originally matured on July 20, 2022, subject to up to five 30-day extensions, through December 2022, that may be elected by Greenidge provided no Event of Default (as defined therein) occurred and is continuing and Greenidge pays an Exit Fee (as defined therein) to the B. Riley Commercial. Pursuant to the terms of the Secured Promissory Note, Greenidge and its subsidiaries were subject to certain covenants and restrictive provisions which will, among other things, limit their ability to incur additional indebtedness for borrowed money or additional liens other than debt and liens permitted pursuant to the Secured Promissory Note; consolidate or merge unless Greenidge survives; or transfer all or substantially all of their assets; make certain restricted payments or investments; have a Change of Control (as defined therein); modify certain material agreements; and engage in certain types of transactions with affiliates; each of which are subject to customary and usual exceptions and baskets. The Secured Promissory Note is secured by a first priority mortgage lien on certain real property together with related improvements, fixtures and personal property located at Greenidge's South Carolina Facility. Greenidge’s obligations under the Secured Promissory Note may be prepaid in whole or in part without penalties or fees. On August 10, 2022, Greenidge and B. Riley Commercial agreed to amend the terms of the Secured Promissory Note, by extending the maturity to June 2023, reducing scheduled monthly amortization payments and revising the interest rate to 7.5%. The Exit Fees (as defined therein) associated with the four 30-day extensions subsequent to August 10, 2022, were accelerated and added to the principal balance as of that date. The principal balance following the amendment was $16.4 million as of August 10, 2022. Additionally mandatory repayments of the Secured Promissory Note were revised, such that 65% of the net cash proceeds received from sales of stock under the Equity Purchase Agreement would be paid to B. Riley Commercial to repay the Secured Promissory Note. The Company evaluated the amendment under ASC 470-50, "Debt Modification and Extinguishment", and concluded that the updated terms qualified as a debt modification, and therefore, no gain or loss was recorded. On January 13, 2023, Greenidge and B. Riley Commercial entered into a Waiver and Acknowledgement Letter (the "B Riley Waiver") regarding the terms of the Amended and Restated Bridge Promissory Note dated August 10, 2022 executed by Greenidge in favor of B. Riley Commercial. Under the B Riley Waiver, B. Riley Commercial agreed that Greenidge’s failure to pay the approximately $1.5 million payment of principal and interest due under the BRCC Note on December 20, 2022 would not be an event of default if that payment were made in full by the earlier of January 20, 2023 or the date that Greenidge and B. Riley Commercial enter into a mutually satisfactory amendment to the BRCC Note addressing, among other things, future amortization requirements under the Secured Promissory Note. The waiver left the due dates for other scheduled payments under the BRCC Note unaffected. On January 30, 2023, Greenidge entered into the Consent and Amendment No. 1 to the Promissory Note (the "B. Riley Amendment") with B. Riley Commercial. The B. Riley Amendment modified the payment dates and principal and interest payment amounts under the Promissory Note, requiring no principal and interest payments until June 2023 and monthly payments thereafter through November 2023. Under the terms of the B. Riley Amendment, each of B. Riley Commercial and Atlas Holdings LLC ("Atlas"), or an affiliate thereof, purchased $1 million of Greenidge’s Class A common stock under the ATM Agreement. B. Riley Commercial purchased common stock on a principal basis at $0.75 per share and Atlas or its affiliate purchased common stock at market prices through B. Riley acting as sales agent. Greenidge also paid a $1 million dollar amendment fee to B. Riley Commercial, payable by the delivery of Greenidge Class A common stock to B. Riley Commercial, as principal under the ATM Agreement, at a price of $0.75 per share. Under the B. Riley Amendment, Greenidge is required to make mandatory monthly debt repayments under the Promissory Note of 15% of the net proceeds of sales of equity, including sales under the ATM Agreement and the equity purchase agreement. In addition, Greenidge may potentially reduce its monthly principal amortization payments from approximately $1.5 million to $400 thousand per month, if it were to pay at least $6 million of principal debt prior to June 20, 2023. Through May 12, 2023, Greenidge has used $2.9 million of net proceeds from sales under the ATM Agreement to repay a portion of the Promissory Note, reducing the principal balance. The Company evaluated the amendment under ASC 470-50, "Debt Modification and Extinguishment", and concluded that the updated terms qualified as a debt modification, therefore, no gain or loss was recorded. Senior Unsecured Notes During the fourth quarter of 2021, the Company sold $72.2 million of 8.50% Senior Notes due October 2026 (the "Notes") pursuant to the Company's registration statement on Form S-1. Interest on the Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year to the holders of record at the close of business on the immediately preceding January 15, April 15, July 15 and October 15, respectively. The Notes are senior unsecured obligations of the Company and rank equal in right of payment with the Company's existing and future senior unsecured indebtedness. The Notes trade on the Nasdaq Global Select Market under the symbol "GREEL." The Company may redeem the Notes for cash in whole or in part at any time (i) on or after October 31, 2023 and prior to October 31, 2024, at a price equal to 102% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption, (ii) on or after October 31, 2024 and prior to October 31, 2025, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption, and (iii) on or after October 31, 2025 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, the Company may redeem the Notes, in whole, but not in part, at any time at its option, at a redemption price equal to 100.5% of the principal amount plus accrued and unpaid interest to, but not including, the date of redemption, upon the occurrence of certain change of control events. Minimum Future Principal Payments Minimum future principal payments on debt at March 31, 2023 were as follows:
Fair Value Disclosure The notional value and estimated fair value of the Company's debt totaled $97.3 million and $38.1 million, respectively at March 31, 2023 and $157.5 million and $88.5 million, respectively at December 31, 2022. The notional value does not include unamortized discounts and debt issuance costs of $6.0 million and $5.7 million at March 31, 2023 and December 31, 2022, respectively. The estimated fair value of the senior unsecured notes, representing the fair value of the Company's 8.50% senior secured notes due October 2026, was measured using quoted market prices at the reporting date. Such instruments were valued using Level 1 inputs. For the equipment financings, senior secured note and Secured Promissory Note, the Company believes the notional values approximate their fair values.
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EARNINGS PER SHARE | EARNINGS PER SHARE The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by assuming the exercise, settlement, and vesting of all potential dilutive common stock equivalents outstanding for the period using the treasury stock method. The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings and diluted per share of common stock.
(a) For the three months ended March 31, 2023, there was no impact of dilution from any of the outstanding 154,535 RSUs or 3,639,184 common stock options due to the net loss, since inclusion of any impact from these awards would be anti-dilutive. For the three months ended March 31, 2022, there was no impact of dilution from any of the outstanding 431,618 RSUs or 579,858 common stock options due to the net loss, since inclusion of any impact from these awards would be antidilutive. Reverse Stock Split On April 11, 2023, the stockholders approved a reverse stock split of the Company's issued and outstanding Class A common stock, par value $0.0001 per share and Class B common stock, par value $0.0001 per share, such that all outstanding shares of common stock shall be reclassified into a smaller number of shares such that every ten (10) shares of Class A common stock are combined and reclassified into one (1) share of Class A common stock and every ten (10) shares of Class B common stock are combined and reclassified into one (1) share of Class B common stock such that every holder of outstanding shares of common stock on the effective date specified in the Certificate of Amendment shall receive, subject to the treatment of fractional shares described in the Certificate of Amendment, one share of Class A common stock or Class B common stock, as applicable, in exchange for ten shares of Class A common stock or Class B common stock, as applicable, held by such holder (the “Reverse Stock Split,”). Since the Reverse Stock Split has not yet been consummated, the financial statements and footnotes presented have not yet been retroactively adjusted. The following unaudited proforma financial information presents the consolidated results of operations of the Company for the three months ended March 31, 2023 and 2022, as if the Reverse Stock Split had occurred as of the beginning of the first period presented instead of on the expected effective date of May 16, 2023.
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EQUITY BASED COMPENSATION |
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EQUITY BASED COMPENSATION | EQUITY BASED COMPENSATION In February 2021, Greenidge adopted an equity incentive plan and reserved 3,831,112 shares of Class A common stock for issuance under the plan (the “2021 Equity Plan”), applicable to employees and non-employee directors. In April 2023, the stockholders approved an amendment and restatement of the Company's 2021 Equity Plan to increase the maximum aggregate number of shares of Class A common stock that may be issued for all purposes under the Plan by 5,000,000 shares of Class A common stock from 3,831,112 to 8,831,112 shares of Class A common stock and to remove the counting of shares of Class A common stock granted in connection with awards other than stock options and stock appreciation rights against the total number of shares available under the Plan as two shares of Class A common stock for every one share of Class A common stock granted in connection with such award. For the three months ended March 31, 2023, no additional shares had been granted under the 2021 Equity Plan. In October 2022, the Company registered 3,076,842 shares of Class A common stock, outside the 2021 Equity Plan, that were reserved for issuance upon the vesting and exercise of non-qualified stock options inducement grants. Restricted Common Stock Unit Awards Restricted stock unit ("RSU") awards are generally eligible to vest over a three-year period. The Company’s unvested RSU awards activity for the three months ended March 31, 2023 is summarized below:
The value of RSU grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. There were no grants awarded during the three months ended March 31, 2023. At March 31, 2023, there was approximately $0.9 million of total unrecognized compensation cost related to unvested restricted stock rights, which is expected to be recognized over a remaining weighted-average vesting period of approximately 1.4 years. Common Stock Options The Company’s common stock options activity for the three months ended March 31, 2023 is summarized below:
The value of common stock option grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. At March 31, 2023, there was approximately $2.7 million of total unrecognized compensation cost related to unvested common stock options, which is expected to be recognized over a remaining weighted-average vesting period of approximately 2.5 years. Stock-Based Compensation The Company recognized stock-based compensation expense of $0.5 million and $0.4 million during the three months ended March 31, 2023 and 2022, respectively. Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations.
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INCOME TAXES |
3 Months Ended |
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Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs. The effective tax rate for the three months ended March 31, 2023 was 0% which was lower than the statutory rate of 21% because the Company has recognized a full valuation allowance on its deferred tax assets. The Company continued to evaluate the realizability of deferred tax assets and due to continued reduced profitability concluded that a valuation allowance should continue to be recognized for any deferred tax assets generated during the quarter. As a result, there was no net income tax benefit recorded for pretax losses of the U.S. operations in the three months ended March 31, 2023. The effective tax rate for the three months ended March 31, 2022 was 17.9% which was lower than the statutory rate of 21% primarily due to state income taxes and tax benefits associated with stock-based compensation.
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STOCKHOLDERS' EQUITY |
3 Months Ended |
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Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Equity Purchase Agreement with B. Riley Principal Capital, LLC On September 15, 2021, as amended on April 7, 2022, Greenidge entered into the Equity Purchase Agreement with B. Riley Principal. Pursuant to the Equity Purchase Agreement, Greenidge has the right to sell to B. Riley up to $500 million in shares of its Class A common stock, subject to certain limitations and the satisfaction of specified conditions in the Equity Purchase Agreement, from time to time over the 24-month period commencing on April 28, 2022. In connection with the Equity Purchase Agreement, Greenidge entered into a registration rights agreement with the Investor, pursuant to which Greenidge agreed to prepare and file a registration statement registering the resale by the Investor of those shares of Greenidge’s Class A common stock to be issued under the Equity Purchase Agreement. The registration statement became effective on April 28, 2022 (the "Effective Date"), relating to the resale of 5,720,951 shares of Greenidge’s Class A common stock in connection with the Equity Purchase Agreement. From the Effective Date to March 31, 2023, Greenidge issued 1,599,229 shares of Class A common stock to the Investor pursuant to the Equity Purchase Agreement for aggregate proceeds of $5.0 million, net of discounts, of which there were no issuances in the three months ended March 31, 2023. At The Market Issuance Sales Agreement with B. Riley Securities On September 19, 2022, as amended on October 3, 2022, Greenidge entered into the ATM Agreement with B. Riley and Northland, relating to shares of Greenidge’s Class A common stock. Under the ATM Agreement, B. Riley will use its commercially reasonable efforts to sell on Greenidge’s behalf the shares of Greenidge’s Class A common stock requested to be sold by Greenidge, consistent with B. Riley’s normal trading and sales practices, under the terms and subject to the conditions set forth in the ATM Agreement. Greenidge has the discretion, subject to market demand, to vary the timing, prices and number of shares sold in accordance with the ATM Agreement. B. Riley may sell the Company’s Class A common stock by any method permitted by law deemed to be an "at the market offering" as defined in Rule 415(a)(4) promulgated under the Securities Act. Greenidge pays B. Riley commissions for its services in acting as sales agent, in an amount to up to 5.0% of the gross proceeds of all Class A common stock sold through it as sales agent under the ATM Agreement. Pursuant to the registration statement filed registering shares to be sold in accordance with the terms of the ATM Agreement, Greenidge may offer and sell shares of its Class A common stock up to a maximum aggregate offering price of $22,800,000. From October 1, 2022 through May 12, 2023, Greenidge issued 16,698,400 shares under the ATM Agreement for net proceeds of $11.0 million, of which 12,119,264 shares were issued for net proceeds of $8.2 million for the three months ended March 31, 2023. Additionally, Greenidge issued 1,333,333 shares to B. Riley as payment of a $1.0 million amendment fee on the Promissory Note in February 2023.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, the Company may be involved in various lawsuits and legal proceedings that arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in such matters may arise and harm the Company's business. The Company is currently not aware of any such legal proceedings or claims that it believes will have a material adverse effect on its business, financial condition or operating results. Environmental Liabilities The Company has a coal combustion residual ("CCR") liability associated with the closure of a coal ash pond located on the Company's property in the Town of Torrey, New York. In accordance with ASC 410-30, Environmental Obligations ("ASC 410-30"), the Company has a liability of $17.5 million as of each of March 31, 2023 and December 31, 2022. CCRs are subject to federal and state requirements. Estimates are based on various assumptions including, but not limited to, closure and post-closure cost estimates, timing of expenditures, escalation factors, and requirements of granted permits. Additional adjustments to the environment liability may occur periodically due to potential changes in remediation requirements regarding coal combustion residuals which may lead to material changes in estimates and assumptions. The Company owns and operates a fully permitted landfill that also acts as a leachate treatment facility. In accordance with ASC 410-30, the Company has recorded an environmental liability of $10.5 million as of each of March 31, 2023 and December 31, 2022. As required by NYSDEC, companies with landfills are required to fund a trust to cover closure costs and expenses after the landfill has stopped operating or, in lieu of a trust, may negotiate to maintain a letter of credit guaranteeing the payment of the liability. Estimates are based on various assumptions including, but not limited to, closure and post-closure cost estimates, timing of expenditures, escalation factors, and requirements of granted permits. Additional adjustments to the environment liability may occur periodically due to potential changes in estimates and assumptions. The liability has been determined based on estimated costs to remediate as well as post-closure costs which are assumed over an approximate 30-year period and assumes an annual inflation rate of 3.0%. Other Matters Support.com has received and may in the future receive additional requests for information, including subpoenas, from other governmental agencies relating to the subject matter of a consent order and civil investigative demands. The Company intends to cooperate with these information requests and is not aware of any other legal proceedings against the Company by governmental authorities at this time. Commitments The Company entered into a contract with Empire in September 2020 that provides for the transportation to its pipeline of 15,000 dekatherms of natural gas per day, approximately $0.2 million per month. The contract ends in September 2030 and may be terminated by either party with 12 months' notice after the initial 10-year period.
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CONCENTRATIONS |
3 Months Ended |
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Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | CONCENTRATIONS The Company has a single hosting customer that accounted for 46% of the company's revenue during the three months ended March 31, 2023. There was no datacenter hosting revenue during the three months ended March 31, 2022. For the Company's self-mining operations, Greenidge considers its mining pool operators to be its customers. Greenidge has historically used a limited number of pool operators that have operated under contracts with a one-day term, which allows Greenidge the option to change pool operators at any time. Revenue from one of the Company’s pool operator customers accounted for approximately 34% and 65% of total revenue for the three months ended March 31, 2023 and 2022, respectively. The Company has one major power customer, NYISO, that accounted for 12% and 20% of its revenue for the three months ended March 31, 2023 and 2022, respectively. The Company has one natural gas vendor that accounted for approximately 42% and 60% of cost of revenue for the three months ended March 31, 2023 and 2022, respectively.
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RELATED PARTY TRANSACTIONS |
3 Months Ended |
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Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Letters of Credit The Company's controlling stockholder, Atlas, has a letter of credit from a financial institution in the amount of $5.0 million at March 31, 2023 and December 31, 2022, payable to the NYSDEC. This letter of credit guarantees the current value of the Company’s landfill environmental liability. See Note 10, "Commitments and Contingencies" under the section "Environmental Liabilities" for further details. Atlas also has a letter of credit from a financial institution in the amount of $3.6 million at March 31, 2023 and December 31, 2022, payable to Empire Pipeline Incorporated (“Empire”) in the event the Company should not make contracted payments for costs related to a pipeline interconnection project the Company has entered into with Empire (see Note 10, "Commitments and Contingencies"). Guarantee An affiliate of Atlas has guaranteed the payment obligation of Greenidge in favor of Emera Energy Services, Inc. ("Emera") under an Energy Management Agreement and an ISDA Master Agreement under which Greenidge may enter into various transactions involving the purchase and sale of natural gas, electricity and other commodities with Emera. This guaranty is limited to $1.0 million. Atlas did not make any payments under the guarantee during the three months ended March 31, 2023 and 2022.
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SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION | SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION
Greenidge had the following noncash investing and financing activities:
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SUBSEQUENT EVENTS |
3 Months Ended |
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Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent events have been evaluated through May 15, 2023, the date at which the condensed consolidated financial statements were available to be issued, and the Company has concluded that no such events or transactions took place that would require disclosure herein except as stated directly below. On March 22, 2023, the board of directors authorized a resolution for management to enact a a reverse stock split of its issued and outstanding Class A common stock, par value $0.0001 per share and Class B common stock, par value $0.0001 per share, such that all outstanding shares of common stock shall be reclassified into a smaller number of shares such that every ten (10) shares of Class A common stock are combined and reclassified into one (1) share of Class A common stock and every ten (10) shares of Class B common stock are combined and reclassified into one (1) share of Class B common stock such that every holder of outstanding shares of common stock on the effective date specified in the Certificate of Amendment shall receive, subject to the treatment of fractional shares described in the Certificate of Amendment, one share of Class A common stock or Class B common stock, as applicable, in exchange for ten shares of Class A common stock or Class B common stock, as applicable, held by such holder (the “Reverse Stock Split,”). On April 11, 2023, the stockholders approved the reverse stock split which will become effective on May 16, 2023. See Note 6, "Earnings Per Share" for further details.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year’s presentation. At December 31, 2022, the Company reported its Support.com business as discontinued operations. As a result, assets and liabilities related to the Support.com have been classified as held for sale for all periods presented. Revenue From Contracts With Customers - Hosting On January 30, 2023, Greenidge entered into the NYDIG Hosting Agreements, with Greenidge operating miners owned by NYDIG affiliates. Under these agreements, the Company agreed to host, power and provide technical support services, and other related services, to NYDIG affiliates’ mining equipment at certain Greenidge facilities for a term of five years. The terms of such arrangements requires NYDIG affiliates to pay a reimbursement fee that covers the cost of power and direct costs associated with management of the mining facilities, a hosting fee as well as a gross profit-sharing arrangement. Under the NYDIG Hosting Agreements, NYDIG affiliates are required to provide Greenidge an upfront security deposit, pay a configuration fee for the setup of new or relocated miners, and pay for repairs and parts consumed in non-routine maintenance (i.e., units that are out of service for more than 12 hours). Datacenter Hosting Revenue The Company generates revenue from contacts with customers from providing hosting services to a single third-party customer. Hosting revenue is recognized as services are performed on a variable basis. The Company recognizes variable hosting revenue each month as the uncertainty related to the consideration is resolved, hosting services are provided to its customer, and its customer utilizes the hosting service (the customer simultaneously receives and consumes the benefits of the Company's performance). The Company's performance obligation related to these services is satisfied over time. The Company recognizes revenue for services that are performed on a consumption basis (the amount of electricity utilized by the customer) as well as through a fixed fee that is earned monthly and a profit sharing component based on the net proceeds earned by the customer in the month from bitcoin mining activities. The Company bills its customer at the beginning of each month based on the anticipated consumption under the contract. Invoices are collected in the month of invoicing under the terms of the contract. The Company recognizes revenue based on actual consumption in the period and invoices adjustments in subsequent periods or retains credits toward future consumption.
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Recent Accounting Pronouncements, Adopted | Recent Accounting Pronouncements, Adopted There were not any recently adopted or newly issued accounting pronouncements, that have had, or are expected to have, a material impact on the Company's condensed consolidated financial statements and disclosures.
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DISCONTINUED OPERATIONS (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | Major classes of assets and liabilities consist of the following:
Financial results from discontinued operations consist of the following:
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PROPERTY AND EQUIPMENT (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and equipment, net consisted of the following at March 31, 2023 and December 31, 2022:
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DEBT (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment Financing Agreements | The following table provides information on the Company's debt agreements:
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Minimum Future Principal Payments on Debt | Minimum future principal payments on debt at March 31, 2023 were as follows:
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EARNINGS PER SHARE (Tables) |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted | The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings and diluted per share of common stock.
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Earnings Per Share, Basic and Diluted, Pro Forma Information | The following unaudited proforma financial information presents the consolidated results of operations of the Company for the three months ended March 31, 2023 and 2022, as if the Reverse Stock Split had occurred as of the beginning of the first period presented instead of on the expected effective date of May 16, 2023.
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EQUITY BASED COMPENSATION (Tables) |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unvested Restricted Common Stock Unit Awards Activity | The Company’s unvested RSU awards activity for the three months ended March 31, 2023 is summarized below:
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Stock Options Activity | The Company’s common stock options activity for the three months ended March 31, 2023 is summarized below:
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SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaid and Accrued Expenses |
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Summary of supplemental cash flow information | Greenidge had the following noncash investing and financing activities:
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ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) |
Mar. 31, 2023
location
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of locations where facilities are owned and operated | 2 |
DISCONTINUED OPERATIONS - Narrative (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | |
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Jan. 31, 2023 |
Mar. 31, 2023 |
Mar. 31, 2022 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Effective income tax rate from discontinued operations | 0.00% | 1.00% | |
Support Com | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from divestiture of business | $ 2.6 |
DISCONTINUED OPERATIONS - Major Classes of Assets and Liabilities to be Transferred (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
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Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
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Assets: | |||
Current assets held for sale | $ 1,833 | $ 6,473 | |
Liabilities: | |||
Current liabilities held for sale | 2,154 | 3,974 | |
Support Com | Discontinued Operations, Held-for-sale | |||
Assets: | |||
Accounts receivable | 1,526 | 3,996 | |
Prepaid expenses and other current assets | 1,028 | 1,253 | |
Current assets held for sale | 2,554 | 5,249 | |
Property and equipment, net | 533 | 743 | |
Other assets | 481 | 481 | |
Long-term assets held for sale | 1,014 | 1,224 | |
Loss on classification to held for sale | (1,735) | $ 0 | 0 |
Assets held for sale | 1,833 | 6,473 | |
Liabilities: | |||
Accounts payable | 130 | 191 | |
Accrued expenses | 1,482 | 3,351 | |
Current liabilities held for sale | 1,612 | 3,542 | |
Other long-term liabilities | 542 | 432 | |
Long-term liabilities held for sale | 542 | 432 | |
Liabilities held for sale | $ 2,154 | $ 3,974 |
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jan. 30, 2023 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 3,800 | $ 3,700 | |
Gain on sale of assets | 1,744 | 0 | |
Miners | |||
Property, Plant and Equipment [Line Items] | |||
Exchange of property plant and equipment, for reduction in debt | $ 50,000 | 49,950 | 0 |
Mining Equipment And Mining Deposits | |||
Property, Plant and Equipment [Line Items] | |||
Gain on sale of assets | 1,700 | ||
Miner Coupons | |||
Property, Plant and Equipment [Line Items] | |||
Exchange of property plant and equipment, for reduction in debt | $ 1,100 | $ 1,152 | $ 0 |
DEBT - Minimum Future Principal Payments on Debt (Details) $ in Thousands |
Mar. 31, 2023
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Remainder of 2023 | $ 7,797 |
2024 | 0 |
2025 | 17,322 |
2026 | 72,200 |
2027 | 0 |
Total | $ 97,319 |
EQUITY BASED COMPENSATION - Unvested Restricted Common Stock Unit Awards Activity (Details) - Restricted Stock Units (RSUs) |
3 Months Ended |
---|---|
Mar. 31, 2023
$ / shares
shares
| |
RSUs | |
Unvested, beginning balance (in shares) | shares | 247,286 |
Vested (in shares) | shares | (92,751) |
Unvested, ending balance (in shares) | shares | 154,535 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 6.89 |
Vested (in dollars per share) | $ / shares | 6.49 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 7.12 |
INCOME TAXES (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate as a percentage | 0.00% | 17.90% |
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020
USD ($)
dth
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Mar. 31, 2022
USD ($)
|
|
Product Liability Contingency [Line Items] | ||||
Environmental trust liability | $ 26,900 | $ 27,400 | ||
Environmental liability related to landfill, period | 30 years | |||
Annual inflation rate on environmental liability related to landfill | 3.00% | |||
Purchase commitment, energy volume required per day (in dekatherm) | dth | 15,000,000 | |||
Purchase commitment per month | $ 200 | |||
Purchase commitment, termination notice period | 12 months | |||
Purchase commitment period | 10 years | |||
Coal ash impoundment | ||||
Product Liability Contingency [Line Items] | ||||
Environmental liability | 17,500 | $ 17,500 | ||
Environmental trust liability | $ 10,500 | $ 10,500 |
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Letter of Credit | ||
Related Party Transaction [Line Items] | ||
Net proceeds from new line of credit | $ 5.0 | $ 5.0 |
Empire | ||
Related Party Transaction [Line Items] | ||
Net proceeds from new line of credit | 3.6 | $ 3.6 |
Atlas | ||
Related Party Transaction [Line Items] | ||
Limited guaranty payment | $ 1.0 |
SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION - Balance Sheet Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Prepaid expenses: | ||
Electric deposits | $ 1,400 | $ 1,400 |
Prepaid insurance | 2,314 | 3,822 |
Other | 1,132 | 1,044 |
Total | 4,846 | 6,266 |
Accrued expenses: | ||
Accrued interest | 1,346 | 1,741 |
Other | 4,200 | 9,586 |
Total | $ 5,546 | $ 11,327 |
SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION - Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jan. 30, 2023 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Property, Plant and Equipment [Line Items] | |||
Property and equipment purchases in accounts payable | $ 751 | $ 10,271 | |
Common stock issued for amendment fee to lender | 1,000 | 0 | |
Accrued interest added to debt principal | 680 | 0 | |
Miners | |||
Property, Plant and Equipment [Line Items] | |||
Exchange of property plant and equipment, for reduction in debt | $ 50,000 | 49,950 | 0 |
Miner Coupons | |||
Property, Plant and Equipment [Line Items] | |||
Exchange of property plant and equipment, for reduction in debt | 1,100 | 1,152 | 0 |
Miner deposits | |||
Property, Plant and Equipment [Line Items] | |||
Exchange of property plant and equipment, for reduction in debt | $ 7,400 | $ 7,381 | $ 0 |
SUBSEQUENT EVENTS (Details) |
Apr. 11, 2023
$ / shares
|
Mar. 31, 2023
$ / shares
|
Dec. 31, 2022
$ / shares
|
---|---|---|---|
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Subsequent Event | Common Class A | |||
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.0001 | ||
Stockholder's equity, reverse stock split | 10 | ||
Subsequent Event | Common Class B | |||
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.0001 | ||
Stockholder's equity, reverse stock split | 10 |
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