10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended September 30, 2024

¨	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from ________ to ________.

Commission file number 1-12711

HYPERSCALE DATA, INC.

(Exact name of registrant as specified in its charter)

Delaware	94-1721931
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

11411 Southern Highlands Parkway, Suite 240

Las Vegas, NV 89141

(Address of principal executive offices) (Zip code)

(949) 444-5464

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.001 par value	GPUS	NYSE American
13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share	GPUS PRD	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding year (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x    No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  x    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨	Accelerated filer  ¨
Non-accelerated filer  x	Smaller reporting company  x
Emerging growth company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ¨    No x

At November 19, 2024, the registrant had outstanding 38,846,318 shares of Class A common stock.

HYPERSCALE DATA, INC.

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023	F-1
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023	F-3
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023	F-4
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023	F-8
	Notes to Condensed Consolidated Financial Statements	F-10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	14
Item 4.	Controls and Procedures	14
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	16
Item 1A.	Risk Factors	17
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	17
Item 3.	Defaults Upon Senior Securities	17
Item 4.	Mine Safety Disclosures	17
Item 5.	Other Information	17
Item 6.	Exhibits	18

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “goals,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “may,” “will,” “would,” “should,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, uncertain events or assumptions, and other characterizations of future events or circumstances are forward-looking statements. Such statements are based on management’s expectations as of the date of this filing and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include those described throughout this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K/A for the year ended December 31, 2023, particularly the “Risk Factors” sections of such reports. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements in this Quarterly Report on Form 10-Q do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that had not been completed as of the date of filing of this Quarterly Report on Form 10-Q. In addition, the forward-looking statements in this Quarterly Report on Form 10-Q are made as of the date of this filing, and we do not undertake, and expressly disclaim any duty to update such statements, whether as a result of new information, new developments or otherwise, except to the extent that disclosure may be required by law.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

HYPERSCALE DATA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30,		December 31,
	2024		2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	7,190,000	$	6,105,000
Restricted cash		8,259,000		4,962,000
Marketable equity securities		687,000		27,000
Accounts receivable, net		6,824,000		6,736,000
Inventories		1,823,000		1,790,000
Investment in promissory notes and other, related party		14,786,000		3,968,000
Loans receivable, current		1,169,000		1,234,000
Prepaid expenses and other current assets		4,240,000		5,221,000
Current assets of discontinued operations		-		32,367,000
TOTAL CURRENT ASSETS		44,978,000		62,410,000
Cash and marketable securities held in trust account		804,000		2,200,000
Intangible assets, net		3,682,000		4,047,000
Goodwill		295,000		295,000
Property and equipment, net		160,874,000		195,666,000
Right-of-use assets		3,570,000		3,409,000
Investments in common stock and equity securities, related party		2,231,000		679,000
Investments in other equity securities		5,274,000		21,767,000
Other assets		9,785,000		8,717,000
TOTAL ASSETS	$	231,493,000	$	299,190,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	58,474,000	$	55,422,000
Operating lease liability, current		1,442,000		1,376,000
Notes payable, current		87,730,000		11,692,000
Notes payable, related party, current		171,000		2,375,000
Convertible notes payable, current		9,725,000		7,375,000
Guarantee liability		38,900,000		38,900,000
Current liabilities of discontinued operations		-		22,664,000
TOTAL CURRENT LIABILITIES		196,442,000		139,804,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-1

HYPERSCALE DATA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

(Unaudited)

	September 30,			December 31,
	2024			2023
LONG TERM LIABILITIES
Operating lease liability, non-current		2,339,000			2,163,000
Notes payable, non-current		16,760,000			85,420,000
Convertible notes payable, non-current		9,453,000			9,453,000
Deferred underwriting commissions of Ault Disruptive Technologies Corporation (“Ault Disruptive”) subsidiary		3,450,000			3,450,000
TOTAL LIABILITIES		228,444,000			240,290,000
COMMITMENTS AND CONTINGENCIES
Redeemable non-controlling interests in equity of subsidiaries		804,000			2,224,000
STOCKHOLDERS’ EQUITY
Series A Convertible Preferred Stock, $25 stated value per share, $0.001 par value – 1,000,000 shares authorized; 7,040 shares issued and outstanding at September 30, 2024 and December 31, 2023 (liquidation preference of $176,000 as of September 30, 2024 and December 31, 2023)		-			-
Series C Convertible Preferred Stock, $1,000 stated value per share, share, $0.001 par value – 75,000 shares authorized; 44,300 and 41,500 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively (liquidation preference of $44,300,000 and $41,500,000 at September 30, 2024 and December 31, 2023, respectively)		-			-
Series D Cumulative Redeemable Perpetual Preferred Stock, $25 stated value per share, $0.001 par value – 2,000,000 shares authorized; 323,835 shares and 425,197 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively (liquidation preference of $8,096,000 and $10,630,000 as of September 30, 2024 and December 31, 2023, respectively)		-			-
Class A Common Stock, $0.001 par value – 500,000,000 shares authorized; 38,846,318 and 4,483,459 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		39,000			4,000
Class B Common Stock, $0.001 par value – 25,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2024 and December 31, 2023		-			-
Additional paid-in capital		661,606,000			644,852,000
Accumulated deficit		(627,124,000	)		(567,469,000	)
Accumulated other comprehensive loss		(1,222,000	)		(2,097,000	)
Treasury stock, at cost		(30,571,000	)		(30,571,000	)
TOTAL HYPERSCALE DATA STOCKHOLDERS’ EQUITY		2,728,000			44,719,000
Non-controlling interest		(483,000	)		11,957,000
TOTAL STOCKHOLDERS’ EQUITY		2,245,000			56,676,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	231,493,000		$	299,190,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-2

HYPERSCALE DATA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Revenue	$	2,215,000		$	17,554,000		$	5,785,000		$	25,754,000
Revenue, crypto assets mining		5,264,000			7,558,000			25,201,000			23,273,000
Revenue, hotel and real estate operations		5,680,000			5,737,000			14,377,000			13,148,000
Revenue, crane operations		12,327,000			12,490,000			36,945,000			37,726,000
Revenue, lending and trading activities		5,575,000			(249,000	)		4,911,000			4,337,000
Total revenue		31,061,000			43,090,000			87,219,000			104,238,000
Cost of revenue, products		1,178,000			13,209,000			3,470,000			19,213,000
Cost of revenue, crypto assets mining		9,388,000			10,228,000			26,971,000			28,057,000
Cost of revenue, hotel and real estate operations		3,498,000			3,279,000			9,633,000			9,086,000
Cost of revenue, crane operations		7,957,000			7,642,000			23,704,000			22,671,000
Cost of revenue, lending and trading activities		495,000			-			495,000			1,180,000
Total cost of revenue		22,516,000			34,358,000			64,273,000			80,207,000
Gross profit		8,545,000			8,732,000			22,946,000			24,031,000
Operating expenses
Research and development		4,598,000			1,097,000			4,811,000			3,304,000
Selling and marketing		4,755,000			7,638,000			12,528,000			24,990,000
General and administrative		11,996,000			16,339,000			33,730,000			53,051,000
Impairment of property and equipment		11,791,000			3,895,000			19,746,000			3,895,000
Impairment of goodwill and intangible assets		-			-			-			35,570,000
Impairment of mined crypto assets		-			113,000			-			376,000
Total operating expenses		33,140,000			29,082,000			70,815,000			121,186,000
Loss from operations		(24,595,000	)		(20,350,000	)		(47,869,000	)		(97,155,000	)
Other income (expense):
Interest and other income		766,000			278,000			2,118,000			3,612,000
Interest expense		(7,766,000	)		(6,137,000	)		(18,825,000	)		(35,180,000	)
Gain on conversion of investment in equity securities to marketable equity securities		-			-			17,900,000			-
(Loss) gain on extinguishment of debt		(240,000	)		(1,546,000	)		502,000			(1,700,000	)
Loss from investment in unconsolidated entity		-			-			(1,958,000	)		-
Impairment of equity securities		-			-			(6,266,000	)		(9,555,000	)
Provision for loan losses, related party		-			-			(3,068,000	)		-
Change in fair value of warrant liability		-			499,000			-			2,655,000
Gain (loss) on the sale of fixed assets		32,000			(32,000	)		64,000			2,728,000
Total other expense, net		(7,208,000	)		(6,938,000	)		(9,533,000	)		(37,440,000	)
Loss before income taxes		(31,803,000	)		(27,288,000	)		(57,402,000	)		(134,595,000	)
Income tax provision (benefit)		52,000			(565,000	)		47,000			551,000
Net loss from continuing operations		(31,855,000	)		(26,723,000	)		(57,449,000	)		(135,146,000	)
Net gain (loss) from discontinued operations		2,216,000			(1,359,000	)		(779,000	)		(4,658,000	)
Net loss		(29,639,000	)		(28,082,000	)		(58,228,000	)		(139,804,000	)
Net loss attributable to non-controlling interest		4,090,000			6,311,000			2,469,000			8,704,000
Net loss attributable to Hyperscale Data, Inc.		(25,549,000	)		(21,771,000	)		(55,759,000	)		(131,100,000	)
Preferred dividends		(1,326,000	)		(412,000	)		(3,894,000	)		(963,000	)
Net loss available to common stockholders	$	(26,875,000	)	$	(22,183,000	)	$	(59,653,000	)	$	(132,063,000	)
Basic and diluted net gain (loss) per common share:
Continuing operations	$	(0.77	)	$	(93.39	)	$	(2.03	)	$	(1,201.94	)
Discontinued operations		0.06			(6.09	)		(0.03	)		(43.94	)
Net loss per common share	$	(0.71	)	$	(99.48	)	$	(2.06	)	$	(1,245.88	)
Weighted average basic and diluted common shares outstanding		37,901,000			223,000			28,907,000			106,000
Comprehensive loss
Net loss available to common stockholders	$	(26,875,000	)	$	(22,183,000	)	$	(59,653,000	)	$	(132,063,000	)
Foreign currency translation adjustment		(221,000	)		(282,000	)		(621,000	)		(702,000	)
Other comprehensive loss		(221,000	)		(282,000	)		(621,000	)		(702,000	)
Total comprehensive loss	$	(27,096,000	)	$	(22,465,000	)	$	(60,274,000	)	$	(132,765,000	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-3

HYPERSCALE DATA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

Three Months Ended September 30, 2024

																							Accumulated
	Preferred Stock																Additional						Other			Non-						Total
	Series A				Series C				Series D				Class A Common Stock				Paid-In			Accumulated			Comprehensive			Controlling			Treasury			Stockholders’
	Shares		Par Amount		Shares		Par Amount		Shares		Par Amount		Shares		Amount		Capital			Deficit			Loss			Interest			Stock			Equity
BALANCES, July 1, 2024		7,040	$	-		44,000	$	-		323,835	$	-		35,846,318	$	36,000	$	660,036,000		$	(600,282,000	)	$	(2,497,000	)	$	(440,000	)	$	(30,571,000	)	$	26,282,000
Issuance of Series C preferred stock, related party		-		-		300		-		-		-		-		-		286,000			-			-			-			-			286,000
Fair value of warrants issued in connection with Series C preferred stock, related party		-		-		-		-		-		-		-		-		14,000			-			-			-			-			14,000
Stock-based compensation		-		-		-		-		-		-		-		-		374,000			-			-			-			-			374,000
Issuance of Class A common stock for conversion of debt		-		-		-		-		-		-		3,000,000		3,000		897,000			-			-			-			-			900,000
Distribution to Circle 8 Crane Services, LLC (“Circle 8”) non-controlling interest		-		-		-		-		-		-		-		-		-			-			-			(55,000	)		-			(55,000	)
Net loss attributable to Hyperscale Data, Inc.		-		-		-		-		-		-		-		-		-			(25,549,000	)		-			-			-			(25,549,000	)
Series A preferred dividends ($0.63 per share)		-		-		-		-		-		-		-		-		-			(4,000	)		-			-			-			(4,000	)
Series C preferred dividends ($24.05 per share)		-		-		-		-		-		-		-		-		-			(1,059,000	)		-			-			-			(1,059,000	)
Series D preferred dividends ($0.81 per share)		-		-		-		-		-		-		-		-		-			(263,000	)		-			-			-			(263,000	)
Foreign currency translation adjustments		-		-		-		-		-		-		-		-		-			-			(221,000	)		-			-			(221,000	)
Net loss attributable to non-controlling interest		-		-		-		-		-		-		-		-		-			-			-			(2,861,000	)		-			(2,861,000	)
Deconsolidation of subsidiary		-		-		-		-		-		-		-		-		-			-			1,495,000			2,873,000			-			4,368,000
Other		-		-		-		-		-		-		-		-		(1,000	)		33,000			1,000			-			-			33,000
BALANCES, September 30, 2024		7,040	$	-		44,300	$	-		323,835	$	-		38,846,318	$	39,000	$	661,606,000		$	(627,124,000	)	$	(1,222,000	)	$	(483,000	)	$	(30,571,000	)	$	2,245,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-4

HYPERSCALE DATA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

Three Months Ended September 30, 2023

																								Accumulated
	Preferred Stock																	Additional						Other			Non-						Total
	Series A				Series B					Series D				Class A Common Stock				Paid-In			Accumulated			Comprehensive			Controlling			Treasury			Stockholders’
	Shares		Par Amount		Shares		Par Amount			Shares		Par Amount		Shares		Amount		Capital			Deficit			Loss			Interest			Stock			Equity
BALANCES, July 1, 2023		7,040	$	-		125,000	$	-	-		425,197	$	-		61,056	$	-	$	573,388,000		$	(444,371,000	)	$	(1,450,000	)	$	23,853,000		$	(29,919,000	)	$	121,501,000
Stock-based compensation		-		-		-		-			-		-		-		-		959,000			-			-			1,622,000			-			2,581,000
Issuance of common stock for cash		-		-		-		-			-		-		428,305		-		20,415,000			-			-			-			-			20,415,000
Financing cost in connection with sales of common stock		-		-		-		-			-		-		-		-		(715,000	)		-			-			-			-			(715,000	)
Issuance of common stock for conversion of preferred stock liabilities		-		-		-		-			-		-		4,236		-		584,000			-			-			-			-			584,000
Common stock issued in connection with issuance of notes payable		-		-		-		-			-		-		1,590		-		162,000			-			-			-			-			162,000
Remeasurement of Ault Disruptive subsidiary temporary  equity		-		-		-		-			-		-		-		-		-			(530,000	)		-			-			-			(530,000	)
Increase in ownership interest of subsidiary		-		-		-		-			-		-		-		-		-			-			-			(352,000	)		-			(352,000	)
Sale of subsidiary stock to non-controlling interests		-		-		-		-			-		-		-		-		-			-			-			343,000			-			343,000
Purchase of treasury stock - Ault Alpha LP (“Ault Alpha”)		-		-		-		-			-		-		-		-		-			-			-			-			(621,000	)		(621,000	)
Net loss attributable to Hyperscale Data, Inc.		-		-		-		-	-		-		-		-		-		-			(21,771,000	)		-			-			-			(21,771,000	)
Series A preferred dividends ($0.63 per share)		-		-		-		-			-		-		-		-		-			(4,000	)		-			-			-			(4,000	)
Series D preferred dividends ($0.81 per share)		-		-		-		-			-		-		-		-		-			(345,000	)		-			-			-			(345,000	)
Foreign currency translation adjustments		-		-		-		-			-		-		-		-		-			-			(651,000	)		-			-			(651,000	)
Net loss attributable to non-controlling interest		-		-		-		-			-		-		-		-		-			-			-			(6,668,000	)		-			(6,668,000	)
Distribution of securities of TurnOnGreen, Inc. (“TurnOnGreen”) to Hyperscale Data Class A common  stockholders ($36.00 per share)		-		-		-		-			-		-		-		-		(5,500,000	)		-			-			10,700,000			-			5,200,000
Other		-		-		-		-			-		-		-		-		(2,000	)		(67,000	)		(1,000	)		-			-			(70,000	)
BALANCES, September 30, 2023		7,040	$	-		125,000	$	-	-		425,197	$	-		495,187	$	-	$	589,291,000		$	(467,088,000	)	$	(2,102,000	)	$	29,498,000		$	(30,540,000	)	$	119,059,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-5

HYPERSCALE DATA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

Nine Months Ended September 30, 2024

																									Accumulated
	Preferred Stock																		Additional						Other			Non-						Total
	Series A				Series C				Series D					Class A Common Stock					Paid-In			Accumulated			Comprehensive			Controlling			Treasury			Stockholders’
	Shares		Par Amount		Shares		Par Amount		Shares			Par Amount		Shares			Amount		Capital			Deficit			Loss			Interest			Stock			Equity
BALANCES, January 1, 2024		7,040	$	-		41,500	$	-		425,197		$	-		4,483,459		$	4,000	$	644,852,000		$	(567,469,000	)	$	(2,097,000	)	$	11,957,000		$	(30,571,000	)	$	56,676,000
Issuance of Series C preferred stock, related party		-		-		2,800		-		-			-		-			-		2,601,000			-			-			-			-			2,601,000
Fair value of warrants issued in connection with Series C preferred stock, related party		-		-		-		-		-			-		-			-		199,000			-			-			-			-			199,000
Stock-based compensation																				1,189,000			-			-			-			-			1,189,000
Issuance of Class A common stock for cash		-		-		-		-		-			-		25,609,079			26,000		14,573,000			-			-			-			-			14,599,000
Financing cost in connection with sales of Class A common stock		-		-		-		-		-			-		-			-		(513,000	)		-			-			-			-			(513,000	)
Issuance of Class A common stock for conversion of debt		-		-		-		-		-			-		8,780,979			9,000		3,607,000			-			-			-			-			3,616,000
Increase in ownership interest of subsidiary		-		-		-		-		-			-		-			-		-			-			-			(893,000	)		-			(893,000	)
Sale of subsidiary stock to non-controlling interests		-		-		-		-		-			-		-			-		-			-			-			1,778,000			-			1,778,000
Distribution to Circle 8 non-controlling interest		-		-		-		-		-			-		-			-		-			-			-			(281,000	)		-			(281,000	)
Conversion of RiskOn International, Inc. (“ROI”) convertible note		-		-		-		-		-			-		-			-		-			-			-			863,000			-			863,000
Net loss attributable to Hyperscale Data, Inc.		-		-		-		-		-			-		-			-		-			(55,759,000	)		-			-			-			(55,759,000	)
Series A preferred dividends ($1.88 per share)		-		-		-		-		-			-		-			-		-			(13,000	)		-			-			-			(13,000	)
Series C preferred dividends ($71.22 per share)		-		-		-		-		-			-		-			-		-			(3,091,000	)		-			-			-			(3,091,000	)
Series D preferred dividends ($2.44 per share)		-		-		-		-		-			-		-			-		-			(790,000	)		-			-			-			(790,000	)
Foreign currency translation adjustments		-		-		-		-		-			-		-			-		-			-			(621,000	)		-			-			(621,000	)
Net loss attributable to non-controlling interest		-		-		-		-		-			-		-			-		-			-			-			(2,469,000	)		-			(2,469,000	)
Distribution of securities of TurnOnGreen to Hyperscale Data Class A common stockholders ($2.02 per share)		-		-		-		-		-			-		-			-		(4,900,000	)		-			-			4,900,000			-			-
Distribution of ROI investment in White River Energy Corp. (“White River”) to ROI shareholders		-		-		-		-		-			-		-			-		-			-			-			(19,210,000	)		-			(19,210,000	)
Deconsolidation of subsidiary		-		-		-		-		-			-		-			-		-			-			1,495,000			2,873,000			-			4,368,000
Other		-		-		-		-		(101,362	)		-		(27,199	)		-		(2,000	)		(2,000	)		1,000			(1,000	)		-			(4,000	)
BALANCES, September 30, 2024		7,040	$	-		44,300	$	-		323,835		$	-		38,846,318		$	39,000	$	661,606,000		$	(627,124,000	)	$	(1,222,000	)	$	(483,000	)	$	(30,571,000	)	$	2,245,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-6

HYPERSCALE DATA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

Nine Months Ended September 30, 2023

																								Accumulated
	Preferred Stock																	Additional						Other			Non-						Total
	Series A				Series B					Series D				Class A Common Stock				Paid-In			Accumulated			Comprehensive			Controlling			Treasury			Stockholders’
	Shares		Par Amount		Shares		Par Amount			Shares		Par Amount		Shares		Amount		Capital			Deficit			Loss			Interest			Stock			Equity
BALANCES, January 1, 2023		7,040	$	-		125,000	$	-	-		172,838	$	-		50,966	$	-	$	565,905,000		$	(329,078,000	)	$	(1,100,000	)	$	17,496,000		$	(29,235,000	)	$	223,988,000
Issuance of Class A common stock for restricted stock awards		-		-		-		-			-		-		199		-		-			-			-			-			-			-
Series D preferred stock issued for cash		-		-		-		-			252,359		-		-		-		6,309,000			-			-			-			-			6,309,000
Preferred stock offering costs		-		-		-		-			-		-		-		-		(3,431,000	)		-			-			-			-			(3,431,000	)
Stock-based compensation		-		-		-		-			-		-		-		-		5,642,000			-			-			3,546,000			-			9,188,000
Issuance of Class A common stock for cash		-		-		-		-			-		-		436,696		-		25,327,000			-			-			-			-			25,327,000
Financing cost in connection with sales of Class A common stock		-		-		-		-			-		-		-		-		(847,000	)		-			-			-			-			(847,000	)
Issuance of Class A common stock for conversion of preferred stock liabilities		-		-		-		-			-		-		5,736		-		912,000			-			-			-			-			912,000
Class A common stock issued in connection with issuance of notes payable		-		-		-		-			-		-		1,590		-		162,000			-			-			-			-			162,000
Remeasurement of Ault Disruptive subsidiary temporary equity		-		-		-		-			-		-		-		-		-			(5,945,000	)		-			-			-			(5,945,000	)
Increase in ownership interest of subsidiary		-		-		-		-			-		-		-		-		13,000			-			-			(1,597,000	)		-			(1,584,000	)
Non-controlling position at ROI subsidiary acquired		-		-		-		-			-		-		-		-		-			-			-			6,357,000			-			6,357,000
Sale of subsidiary stock to non-controlling interests		-		-		-		-			-		-		-		-		-			-			-			3,915,000			-			3,915,000
Distribution to Circle 8 non-controlling interest		-		-		-		-			-		-		-		-		-			-			-			(500,000	)		-			(500,000	)
Purchase of treasury stock - Ault Alpha		-		-		-		-			-		-		-		-		-			-			-			-			(1,306,000	)		(1,306,000	)
Net loss attributable to Hyperscale Data, Inc.		-		-		-		-	-		-		-		-		-		-			(131,100,000	)		-			-			-			(131,100,000	)
Series A preferred dividends ($1.25 per share)		-		-		-		-			-		-		-		-		-			(13,000	)		-			-			-			(13,000	)
Series D preferred dividends ($1.62 per share)		-		-		-		-			-		-		-		-		-			(762,000	)		-			-			-			(762,000	)
Foreign currency translation adjustments		-		-		-		-			-		-		-		-		-			-			(1,001,000	)		-			-			(1,001,000	)
Net loss attributable to non-controlling interest		-		-		-		-			-		-		-		-		-			-			-			(10,420,000	)		-			(10,420,000	)
Distribution of securities of TurnOnGreen to Hyperscale Data Class A common stockholders ($50.50 per share)		-		-		-		-			-		-		-		-		(10,700,000	)		-			-			10,700,000			-			-
Other		-		-		-		-			-		-		-		-		(1,000	)		(190,000	)		(1,000	)		1,000			1,000			(190,000	)
BALANCES, September 30, 2023		7,040	$	-		125,000	$	-	-		425,197	$	-		495,187	$	-	$	589,291,000		$	(467,088,000	)	$	(2,102,000	)	$	29,498,000		$	(30,540,000	)	$	119,059,000

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-7

HYPERSCALE DATA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine Months Ended September 30,
	2024			2023
Cash flows from operating activities:
Net loss	$	(58,228,000	)	$	(139,804,000	)
Net loss from discontinued operations		(779,000	)		(4,658,000	)
Net loss from continuing operations		(57,449,000	)		(135,146,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		19,653,000			22,378,000
Amortization of debt discount		8,422,000			22,756,000
Amortization of right-of-use assets		1,162,000			1,335,000
Impairment of goodwill and intangible assets		-			35,570,000
Stock-based compensation		2,940,000			7,594,000
Gain on the sale of fixed assets		(64,000	)		(2,728,000	)
Impairment of property and equipment		19,746,000			3,895,000
Impairment of equity securities		6,266,000			11,555,000
Impairment of crypto assets		-			376,000
Realized gain on the sale of crypto assets		(649,000	)		(404,000	)
Change in fair value of crypto assets		(24,000	)		-
Revenue, crypto assets mining		(19,563,000	)		(23,273,000	)
Realized gains on sale of marketable securities		(7,463,000	)		(33,140,000	)
Gain on conversion of investment in equity securities to marketable equity securities		(17,900,000	)		-
Unrealized gains on marketable securities		(266,000	)		(2,554,000	)
Realized losses on non-marketable equity securities		5,083,000			-
Unrealized losses on investments in common stock, related parties		557,000			3,752,000
Income from cash held in trust		(41,000	)		(2,561,000	)
Loss from investment in unconsolidated entity		1,958,000			-
Provision for loan losses		495,000			1,180,000
Provision for loan losses, related party		5,668,000			-
Change in the fair value of warrant liability		-			(2,655,000	)
Gain on extinguishment of debt		(502,000	)		-
Proceeds from the sale of crypto assets		20,038,000			21,330,000
Other		(1,194,000	)		1,550,000
Changes in operating assets and liabilities:
Marketable equity securities		10,755,000			71,159,000
Accounts receivable		(342,000	)		(4,792,000	)
Inventories		(42,000	)		(1,554,000	)
Prepaid expenses and other current assets		(182,000	)		(762,000	)
Other assets		(3,026,000	)		(4,023,000	)
Accounts payable and accrued expenses		3,471,000			13,333,000
Lease liabilities		(1,364,000	)		(1,595,000	)
Net cash (used in) provided by operating activities from continuing operations		(3,857,000	)		2,576,000
Net cash used in operating activities from discontinued operations		(6,366,000	)		(4,734,000	)
Net cash used in operating activities		(10,223,000	)		(2,158,000	)
Cash flows from investing activities:
Purchase of property and equipment		(4,762,000	)		(14,607,000	)
Acquisition of non-controlling interests		-			(1,584,000	)
Investments in loans receivable		(434,000	)		(182,000	)
Investments in non-marketable equity securities		-			(10,702,000	)
Proceeds from the sale of fixed assets		671,000			4,515,000
Investment in notes receivable, related party		(3,413,000	)		(2,361,000	)
Other		(109,000	)		(132,000	)
Net cash used in investing activities from continuing operations		(8,047,000	)		(25,053,000	)
Net cash (used in) provided by investing activities from discontinued operations		(3,799,000	)		2,184,000
Net cash used in investing activities		(11,846,000	)		(22,869,000	)

F-8

HYPERSCALE DATA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(Unaudited)

	For the Nine Months Ended September 30,
	2024			2023
Cash flows from financing activities:
Gross proceeds from sales of Class A common stock	$	14,599,000		$	25,327,000
Financing cost in connection with sales of Class A common stock		(513,000	)		(847,000	)
Proceeds from sales of Series D preferred stock		-			6,309,000
Financing cost in connection with sales of Series D preferred stock		-			(3,431,000	)
Proceeds from sales of Series C preferred stock and warrants, related party		2,800,000			-
Proceeds from subsidiaries’ sale of stock to non-controlling interests		1,778,000			3,915,000
Distribution to Circle 8 non-controlling interest		(281,000	)		(500,000	)
Proceeds from notes payable		49,237,000			81,026,000
Repayment of margin accounts		-			(767,000	)
Payments on notes payable		(47,006,000	)		(95,815,000	)
Payments on convertible notes payable, related party		(193,000	)		-
Payments on notes payable, related party		(1,908,000	)		-
Payments of preferred dividends		(3,894,000	)		(963,000	)
Purchase of treasury stock		-			(1,306,000	)
Proceeds from sales of convertible notes		6,700,000			9,169,000
Payments on convertible notes		(1,280,000	)		(660,000	)
Net cash provided by financing activities from continuing operations		20,039,000			21,457,000
Net cash provided by financing activities from discontinued operations		2,552,000			2,316,000
Net cash provided by financing activities		22,591,000			23,773,000
Effect of exchange rate changes on cash and cash equivalents		(442,000	)		(311,000	)
Net increase (decrease) in cash and cash equivalents and restricted cash		80,000			(1,565,000	)
Cash and cash equivalents and restricted cash at beginning of period - continuing operations		11,068,000			11,860,000
Cash and cash equivalents and restricted cash at beginning of period - discontinued operations		4,301,000			2,195,000
Cash and cash equivalents and restricted cash at beginning of period		15,369,000			14,055,000
Cash and cash equivalents and restricted cash at end of period		15,449,000			12,490,000
Less cash and cash equivalents and restricted cash of discontinued operations at end of period		-			2,114,000
Cash and cash equivalents and restricted cash of continued operations at end of period	$	15,449,000		$	10,376,000
Supplemental disclosures of cash flow information:
Cash paid during the period for interest - continuing operations	$	9,775,000		$	8,641,000
Cash paid during the period for interest - discontinued operations	$	946,000		$	862,000
Non-cash investing and financing activities:
Settlement of accounts payable with crypto assets	$	31,000		$	20,000
Settlement of interest payable with crypto assets	$	142,000		$	-
Settlement of note payable with crypto assets	$	506,000		$	-
Conversion of convertible notes payable into shares of Class A common stock	$	3,616,000		$	-
Conversion of convertible notes payable, related party into shares of Class A common stock	$	-		$	400,000
Conversion of debt and equity securities to marketable securities	$	4,996,000		$	23,703,000
Conversion of loans receivable to marketable securities	$	-		$	5,430,000
Exchange of related party advances for investment in other equity securities, related party	$	2,000,000		$	-
Recognition of new operating lease right-of-use assets and lease liabilities	$	1,889,000		$	3,952,000
Remeasurement of Ault Disruptive temporary equity	$	-		$	5,945,000
Preferred stock exchanged for notes payable	$	-		$	9,224,000
Notes payable exchanged for convertible notes payable	$	-		$	2,200,000
Notes payable exchanged for notes payable, related party	$	-		$	11,645,000
Dividend of ROI investment in White River to ROI shareholders	$	19,210,000		$	-
Redeemable non-controlling interests in equity of subsidiaries paid with cash and marketable securities held in trust account	$	1,463,000		$	120,064,000
Dividend paid in TurnOnGreen common stock in additional paid-in capital	$	4,900,000		$	10,700,000

F-9

1. DESCRIPTION OF BUSINESS

Hyperscale Data, Inc. (f/k/a Ault Alliance, Inc.), a Delaware corporation (“Hyperscale Data” or the “Company”) is a diversified holding company pursuing growth by acquiring and developing undervalued businesses and disruptive technologies with a global impact. Through its wholly- and majority-owned subsidiaries and strategic investments, the Company owns and operates a data center at which it mines Bitcoin and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries, and provides mission-critical products that support a diverse range of industries, including a metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, the Company extends credit to select entrepreneurial businesses through a licensed lending subsidiary.

The Company has the following reportable segments:

· Energy and Infrastructure (“Energy”) – crane operations and oil exploration;

· Technology and Finance (“Fintech”) – commercial lending, activist investing, and stock trading;

· Sentinum, Inc. (“Sentinum”) – crypto assets mining operations and colocation and hosting services for the emerging artificial intelligence ecosystems and other industries;

· TurnOnGreen – electric vehicle electrification infrastructure and commercial electronics solutions;

· ROI – immersive metaverse platform, media, and digital learning; and

· Ault Global Real Estate Equities, Inc. (“AGREE”) – hotel operations and other commercial real estate holdings.

The Company had a change to its reportable segments due to the discontinued operations of its majority owned subsidiary, Gresham Worldwide, Inc. (“GIGA”). See Note 4 below.

On September 10, 2024, the Company changed its name from Ault Alliance, Inc. to Hyperscale Data, Inc. and its Class A common stock ticker symbol was changed to “GPUS.” The name change did not affect the rights of security holders of the Company.

2. LIQUIDITY AND FINANCIAL CONDITION

As of September 30, 2024, the Company had cash and cash equivalents of $7.2 million (excluding restricted cash of $8.3 million), negative working capital of $151.5 million and a history of net operating losses. The Company has financed its operations principally through issuances of convertible debt, promissory notes and equity securities. These factors create substantial doubt about the Company’s ability to continue as a going concern for at least one year after the date that these condensed consolidated financial statements are issued.

The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Accordingly, the condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business.

In making this assessment management performed a comprehensive analysis of the Company’s current circumstances, including its financial position, cash flow and cash usage forecasts, as well as obligations and debts. Although management has a long history of successful capital raises, the analysis used to determine the Company’s ability as a going concern does not include cash sources beyond the Company’s direct control that management expects to be available within the next 12 months.

Management expects that the Company’s existing cash and cash equivalents, accounts receivable and marketable securities as of September 30, 2024, will not be sufficient to enable the Company to fund its anticipated level of operations through one year from the date these financial statements are issued. Management anticipates raising additional capital through the private and public sales of the Company’s equity or debt securities and selling its marketable securities as well as crypto assets, or a combination thereof. Although management believes that such capital sources will be available, there can be no assurances that financing will be available to the Company when needed in order to allow the Company to continue its operations, or if available, on terms acceptable to the Company. If the Company does not raise sufficient capital in a timely manner, among other things, the Company may be forced to scale back or cease its operations altogether.

F-10

3. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and do not include all the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The Company has made estimates and judgments affecting the amounts reported in the Company’s condensed consolidated financial statements and the accompanying notes. The actual results experienced by the Company may differ materially from the Company’s estimates. The condensed consolidated financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods presented.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2023 (the “2023 Annual Report”) as amended, filed with the Securities and Exchange Commission (the “SEC”) on September 24, 2024. The condensed consolidated balance sheet as of December 31, 2023 was derived from the Company’s audited 2023 financial statements contained in the above referenced 2023 Annual Report. Results of the three and nine months ended September 30, 2024, are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.

Prior Period Revision - Statement of Cash Flows

For the nine months ended September 30, 2024, the Company disclosed the borrowings of lines of credit and repayments of lines of credit as separate line items within notes payable activity of the financing activities section of the consolidated statement of cash flows. The Company has corrected these line items for the nine months ended September 30, 2023 for comparability purposes.

Significant Accounting Policies

Other than as noted below, there have been no material changes to the Company’s significant accounting policies previously disclosed in the 2023 Annual Report.

Revenue Recognition Crypto Assets Mining

The Company has entered into a crypto assets mining pool by executing a contract with a mining pool operator to provide hash calculation services to the mining pool. The Company’s customer, as defined in Accounting Standards Codification (“ASC”) 606-10-20, is the mining pool operator with which the Company has agreed to the terms of service and user service agreement. The Company supplies hash calculation services, in exchange for consideration, to the pool operator who in turn provides transaction verification services to third parties via a mining pool that includes other participants. The Company’s performance obligation is the provision of hash calculation services to the pool operator and this performance obligation is an output of the Company’s ordinary activities for which it decides when to provide services under the contract.

The Company’s enforceable right to compensation begins only when, and lasts as long as, the Company provides hash calculation services to the mining pool operator and is created as power is provided over time. The only consideration due to the Company relates to the provision of hash calculation services. The contract with the pool operator provides both parties the unilateral enforceable right to terminate the contract at any time without penalty. The customer termination option results in a contract that continuously renews throughout the day and therefore has a duration of less than 24 hours. The implied renewal option is not a material right because there are no upfront or incremental fees in the initial contract and the terms, conditions, and compensation amount for the renewal options are at the then market rates. Providing such hash calculation services is the only performance obligation in the Company’s contracts with mining pool operators.

The transaction consideration the Company receives, if any, is non-cash consideration in the form of Bitcoin. Changes in the fair value of the non-cash consideration due to form of the consideration (changes in the market price of Bitcoin) are not included in the transaction price and are therefore not included in revenue. The mining pool operator charges fees to cover the costs of maintaining the pool and are deducted from amounts the Company may otherwise earn and are treated as a reduction to the consideration earned. Fees fluctuate and historically have been approximately 0.3% per reward earned, on average.

The Company participated in mining pools that used the full pay-per-share (“FPPS”) payout method for the nine months ended September 30, 2024. The Company is entitled to compensation once it begins to perform hash calculations for the pool operator in accordance with the operator’s specifications over a 24-hour period beginning midnight UTC and ending 23:59:59 UTC on a daily basis. The non-cash consideration that the Company is entitled to for providing hash calculations to the pool operator under the FPPS payout method is made up of block rewards and transaction fees less pool operator fees determined as follows:

· The non-cash consideration in the form of a block reward is based on the total blocks expected to be generated on the Bitcoin network for the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC in accordance with the following formula: the daily hash calculations that the Company provided to the pool operator as a percent of the Bitcoin network’s implied hash calculations as determined by the network difficulty, multiplied by the total Bitcoin network block rewards expected to be generated for the same daily period.

F-11

· The non-cash consideration in the form of transaction fees paid by transaction requestors is based on the share of standard transaction fees over the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC. The pool operator calculates the standard transaction fee during the 24-hour period using a rolling 144 block moving average of actual transaction fees.

· The block reward and transaction fees earned by the Company are reduced by mining pool fees charged by the operator for operating the pool based on a rate schedule per the mining pool contract. The mining pool fee is only incurred to the extent the Company performs hash calculations and generates revenue in accordance with the pool operator’s payout formula during the same 24-hour period beginning midnight UTC daily.

The contract is in effect until terminated by either party.

All consideration pursuant to this arrangement is variable. It is not probable that a significant reversal of cumulative revenue will occur. The Company is able to calculate the payout based on the contractual formula, non-cash revenue is estimated and recognized based on the fair value of Bitcoin on the date of contract inception. Fair value of the crypto assets consideration is determined using the midnight UTC spot price of the Company’s principal market for Bitcoin. The Company recognizes non-cash consideration on the same day that control of the contracted service is transferred to the pool operator, which is the same day as the contract inception.

There is no significant financing component in these transactions.

Expenses associated with running the crypto assets mining business, such as equipment depreciation and electricity costs, are recorded as a component of cost of revenues.

Revenue Recognition Hotel Operations

The primary sources of revenue include room and food and beverage revenue from the Company’s hotels.

Rooms revenue represents revenue from the occupancy of the Company’s hotel rooms, which is driven by the occupancy and average daily rate charged. Rooms revenue includes revenue from guest no-shows, daily use, and early/late departure fees. The contracts for room stays with customers are generally short in duration and revenues are recognized as services are provided over the course of the hotel stay at the daily transaction price agreed to under the contract.

Food and beverage revenue consists of revenue from the restaurants and lounges, in room dining and mini bars, and banquet/catering revenue from group and social functions. Payment of the transaction price is due immediately when the customer purchases the goods and services. Therefore, revenue is recognized at a point in time when the physical possession has transferred to the customer.

Reclassifications

Certain prior period amounts have been reclassified for comparative purposes to conform to the current-period financial statement presentation, including the discontinued operations presentation of GIGA financial results. These reclassifications had no effect on previously reported results of operations.

Recently Issued Accounting Standards

On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose specific rate reconciliations, amount of income taxes separated by federal and individual jurisdiction, and the amount of income (loss) from continuing operations before income tax expense (benefit) disaggregated between federal, state, and foreign. The new standard is effective for the Company for its fiscal year beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.

On November 27, 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 is designed to improve the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. The new standard is effective for the Company for its fiscal year beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.

F-12

In March 2024, the FASB issued ASU No. 2024-01 Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards (“ASU 2024-01”). ASU 2024-01 improves clarity and operability without changing the guidance. ASU 2024-01 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2024 and early adoption is permitted. The Company does not expect the adoption of ASU 2024-01 to have a material impact on its consolidated financial statements.

4. DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS

Presentation of GIGA as Discontinued Operations 

On August 14, 2024, GIGA, filed a petition for reorganization under Chapter 11 of the bankruptcy laws. The filing placed GIGA under the control of the bankruptcy court, which oversees its reorganization and restructuring process. The Company assessed the inherent uncertainties associated with the outcome of the Chapter 11 reorganization process and the anticipated duration thereof, and concluded that it was appropriate to deconsolidate GIGA and its subsidiaries effective on the petition date. The Company recognized a gain on deconsolidation of GIGA of $2.0 million included in net gain (loss) from discontinued operations.

In connection with the Chapter 11 reorganization process, the Company concluded that the operations of GIGA met the criteria for discontinued operations as this strategic shift that will have a significant effect on the Company’s operations and financial results. As a result, the Company has presented the results of operations, cash flows and financial position of GIGA as discontinued operations in the accompanying consolidated financial statements and notes for all periods presented.

The following table presents the assets and liabilities of GIGA operations:

	September 30,		December 31,
	2024		2023
Cash and cash equivalents	$	-	$	3,601,000
Restricted cash		-		700,000
Accounts receivable		-		4,350,000
Inventories		-		6,643,000
Prepaid expenses and other current assets		-		4,859,000
Intangible assets, net		-		1,707,000
Goodwill		-		5,794,000
Property and equipment, net - current		-		1,690,000
Right-of-use assets		-		3,023,000
Total assets discontinued operations		-		32,367,000
Accounts payable and accrued expenses		-		14,005,000
Operating lease liability		-		3,098,000
Notes payable		-		1,174,000
Convertible notes payable		-		4,388,000
Liabilities discontinued operations		-		22,664,000
Net assets of discontinued operations	$	-	$	9,703,000

Net assets of discontinued operations excludes $14.0 million of intercompany notes payable to Hyperscale Data and Ault lending as of December 31, 2024.

F-13

The following table presents the results of GIGA operations:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Revenue, products	$	10,678,000		$	10,277,000		$	30,862,000		$	27,724,000
Cost of revenue, products		7,824,000			7,216,000			23,339,000			20,035,000
Gross profit		2,854,000			3,061,000			7,523,000			7,689,000
Operating expenses
Research and development		906,000			672,000			2,617,000			2,111,000
Selling and marketing		286,000			396,000			1,166,000			1,415,000
General and administrative		2,923,000			2,496,000			8,033,000			9,783,000
Total operating expenses		4,115,000			3,564,000			11,816,000			13,309,000
Loss from operations		(1,261,000	)		(503,000	)		(4,293,000	)		(5,620,000	)
Other income (expense):
Interest and other income		1,554,000			105,000			1,594,000			105,000
Interest expense		(415,000	)		(257,000	)		(1,662,000	)		(870,000	)
Change in fair value of warrant liability		-			(1,061,000	)		-			-
Total other income (expense), net		1,139,000			(1,213,000	)		(68,000	)		(765,000	)
Loss before income taxes		(122,000	)		(1,716,000	)		(4,361,000	)		(6,385,000	)
Income tax benefit		-			-			(15,000	)		(11,000	)
Net loss		(122,000	)		(1,716,000	)		(4,346,000	)		(6,374,000	)
Net loss attributable to non-controlling interest		325,000			357,000			1,554,000			1,716,000
Net income (loss) available to common stockholders	$	203,000		$	(1,359,000	)	$	(2,792,000	)	$	(4,658,000	)

The net gain (loss) from discontinued operations for the three and nine months ended September 30, 2024 on the condensed consolidated statement of operations and comprehensive loss includes the gain on deconsolidation as follows:

	For the Three Months Ended September 30, 2024		For the Nine Months Ended September 30, 2024
GIGA net income (loss)	$	203,000	$	(2,792,000	)
Gain on deconsolidation		2,013,000		2,013,000
Net gain (loss) from discontinued operations	$	2,216,000	$	(779,000	)

F-14

The cash flow activity related to discontinued operations is presented separately on the statement of cash flows as summarized below:

	For the Nine Months Ended September 30,
	2024			2023
Cash flows from operating activities:
Net loss	$	(4,346,000	)	$	(6,374,000	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		618,000			618,000
Amortization of right-of-use assets		684,000			807,000
Amortization of intangibles		157,000			220,000
Stock-based compensation		(858,000	)		1,594,000
Changes in operating assets and liabilities:
Accounts receivable		(1,638,000	)		(783,000	)
Inventories		1,514,000			1,091,000
Prepaid expenses and other current assets		(1,516,000	)		(706,000	)
Lease liabilities		(667,000	)		(916,000	)
Accounts payable and accrued expenses		(314,000	)		(285,000	)
Net cash used in operating activities		(6,366,000	)		(4,734,000	)
Cash flows from investing activities:
Purchase of property and equipment		(249,000	)		(177,000	)
Cash decrease upon deconsolidation		(3,550,000	)		-
Net cash used in investing activities		(3,799,000	)		(177,000	)
Cash flows from financing activities:
Proceeds from notes payable		2,552,000			2,316,000
Cash contributions from parent		3,383,000			2,361,000
Net cash provided by financing activities		5,935,000			4,677,000
Effect of exchange rate changes on cash and cash equivalents		(71,000	)		153,000
Net increase in cash and cash equivalents and restricted cash		(4,301,000	)		(81,000	)
Cash and cash equivalents and restricted cash at beginning of period		4,301,000			2,195,000
Cash and cash equivalents and restricted cash at end of period	$	-		$	2,114,000
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	946,000		$	862,000

5. CHANGE IN PLAN OF SALE OF AGREE HOTEL PROPERTIES

On April 30, 2024, the Company had a change in plan of sale for its four hotels owned and operated by AGREE. As a result, as of April 30, 2024, the assets no longer met the held for sale criteria and were required to be reclassified as held and used at the lower of adjusted carrying value or the fair value at the date of the not to sell.

For presentation purposes, the assets and liabilities previously held for sale as of December 31, 2023, were reclassified in the December 31, 2023 balance sheet in the accompanying financial statements back to their original asset and liability groups at their previous carrying values. In connection with this change in plan of sale, the Company recorded a loss on impairment of property and equipment related to the real estate assets of AGREE of $8.0 million during the nine months ended September 30, 2024. The fair values of property and equipment related to the real estate assets of AGREE were based on a discounted cash flow income approach for the hotel properties and a comparable sales market approach for the vacant land assets.

F-15

6. REVENUE DISAGGREGATION

The following tables summarize disaggregated customer contract revenues and the source of the revenue for the three months ended September 30, 2024 and 2023. Revenues from lending and trading activities included in consolidated revenues were primarily interest, dividend and other investment income, which are not considered to be revenues from contracts with customers under GAAP.

The Company’s disaggregated revenues consisted of the following for the three months ended September 30, 2024:

	TurnOnGreen		Fintech		Sentinum		AGREE		Energy		ROI		Holding Co.		Total
Primary Geographical Markets
North America	$	1,227,000	$	-	$	5,432,000	$	5,512,000	$	12,327,000	$	54,000	$	845,000	$	25,397,000
Europe		1,000		-		-		-		26,000		-		-		27,000
Middle East and other		62,000		-		-		-		-		-		-		62,000
Revenue from contracts with customers		1,290,000		-		5,432,000		5,512,000		12,353,000		54,000		845,000		25,486,000
Revenue, lending and trading activities (North America)		-		5,575,000		-		-		-		-		-		5,575,000
Total revenue	$	1,290,000	$	5,575,000	$	5,432,000	$	5,512,000	$	12,353,000	$	54,000	$	845,000	$	31,061,000
Major Goods or Services
Power supply units and systems	$	1,290,000	$	-	$	-	$	-	$	-	$	-	$	-	$	1,290,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-		4,362,000		-		-		-		-		4,362,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-		902,000		-		-		-		-		902,000
Hotel and real estate operations		-		-		168,000		5,512,000		-		-		-		5,680,000
Crane rental		-		-		-		-		12,327,000		-		-		12,327,000
Other		-		-		-		-		26,000		54,000		845,000		925,000
Revenue from contracts with customers		1,290,000		-		5,432,000		5,512,000		12,353,000		54,000		845,000		25,486,000
Revenue, lending and trading activities		-		5,575,000		-		-		-		-		-		5,575,000
Total revenue	$	1,290,000	$	5,575,000	$	5,432,000	$	5,512,000	$	12,353,000	$	54,000	$	845,000	$	31,061,000
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	22,000	$	-	$	5,432,000	$	5,512,000	$	26,000	$	54,000	$	845,000	$	11,891,000
Services transferred over time		1,268,000		-		-		-		12,327,000		-		-		13,595,000
Revenue from contracts with customers	$	1,290,000	$	-	$	5,432,000	$	5,512,000	$	12,353,000	$	54,000	$	845,000	$	25,486,000

The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2024:

	TurnOnGreen		Fintech		Sentinum		AGREE		Energy		ROI		Holding Co.		Total
Primary Geographical Markets
North America	$	3,565,000	$	-	$	25,926,000	$	13,652,000	$	36,945,000	$	121,000	$	1,819,000	$	82,028,000
Europe		15,000		-		-		-		94,000		-		-		109,000
Middle East and other		171,000		-		-		-		-		-		-		171,000
Revenue from contracts with customers		3,751,000		-		25,926,000		13,652,000		37,039,000		121,000		1,819,000		82,308,000
Revenue, lending and trading activities (North America)		-		4,911,000		-		-		-		-		-		4,911,000
Total revenue	$	3,751,000	$	4,911,000	$	25,926,000	$	13,652,000	$	37,039,000	$	121,000	$	1,819,000	$	87,219,000
Major Goods or Services
Power supply units and systems	$	3,751,000	$	-	$	-	$	-	$	-	$	-	$	-	$	3,751,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-		19,563,000		-		-		-		-		19,563,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-		5,638,000		-		-		-		-		5,638,000
Hotel and real estate operations		-		-		725,000		13,652,000		-		-		-		14,377,000
Crane rental		-		-		-		-		36,945,000		-		-		36,945,000
Other		-		-		-		-		94,000		121,000		1,819,000		2,034,000
Revenue from contracts with customers		3,751,000		-		25,926,000		13,652,000		37,039,000		121,000		1,819,000		82,308,000
Revenue, lending and trading activities		-		4,911,000		-		-		-		-		-		4,911,000
Total revenue	$	3,751,000	$	4,911,000	$	25,926,000	$	13,652,000	$	37,039,000	$	121,000	$	1,819,000	$	87,219,000
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	31,000	$	-	$	25,926,000	$	13,652,000	$	94,000	$	121,000	$	1,817,000	$	41,643,000
Services transferred over time		3,720,000		-		-		-		36,945,000		-		-		40,665,000
Revenue from contracts with customers	$	3,751,000	$	-	$	25,926,000	$	13,652,000	$	37,039,000	$	121,000	$	1,817,000	$	82,308,000

F-16

The Company’s disaggregated revenues consisted of the following for the three months ended September 30, 2023:

	TurnOnGreen		Fintech			Sentinum		AGREE		SMC		ROI		Energy		Total
Primary Geographical Markets
North America	$	1,075,000	$	-		$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,248,000
Europe		66,000		-			-		-		-		-		-		66,000
Middle East and other		25,000		-			-		-		-		-		-		25,000
Revenue from contracts with customers		1,166,000		-			7,891,000		5,404,000		15,931,000		18,000		12,929,000		43,339,000
Revenue, lending and trading activities (North America)		-		(249,000	)		-		-		-		-		-		(249,000	)
Total revenue	$	1,166,000	$	(249,000	)	$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,090,000
Major Goods or Services
Power supply units & systems	$	1,074,000	$	-		$	-	$	-	$	-	$	-	$	-	$	1,074,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-			6,389,000		-		-		-		-		6,389,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-			1,169,000		-		-		-		-		1,169,000
Hotel and real estate operations		-		-			333,000		5,404,000		-		-		-		5,737,000
Karaoke machines and related consumer goods		-		-			-		-		15,931,000		-		-		15,931,000
Crane rental		-		-			-		-		-		-		12,490,000		12,490,000
Other		92,000		-					-		-		18,000		439,000		549,000
Revenue from contracts with customers		1,166,000		-			7,891,000		5,404,000		15,931,000		18,000		12,929,000		43,339,000
Revenue, lending and trading activities		-		(249,000	)		-		-		-		-		-		(249,000	)
Total revenue	$	1,166,000	$	(249,000	)	$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,090,000
Timing of Revenue Recognition
Goods transferred at a point in time	$	1,160,000	$	-		$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	439,000	$	30,843,000
Services transferred over time		6,000		-			-		-		-		-		12,490,000		12,496,000
Revenue from contracts with customers	$	1,166,000	$	-		$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,339,000

The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2023:

	TurnOnGreen		Fintech		Sentinum		AGREE		SMC		ROI		Energy		Total
Primary Geographical Markets
North America	$	2,400,000	$	-	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,604,000	$	99,427,000
Europe		77,000		-		-		-		-		-		109,000		186,000
Middle East and other		288,000		-		-		-		-		-		-		288,000
Revenue from contracts with customers		2,765,000		-		24,389,000		12,032,000		21,939,000		63,000		38,713,000		99,901,000
Revenue, lending and trading activities (North America)		-		4,337,000		-				-		-		-		4,337,000
Total revenue	$	2,765,000	$	4,337,000	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,713,000	$	104,238,000
Major Goods or Services
Power supply units & systems	$	2,544,000	$	-	$	-	$	-	$	-	$	-	$	-	$	2,544,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-		21,103,000		-		-		-		-		21,103,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-		2,170,000		-		-		-		-		2,170,000
Hotel and real estate operations		-		-		1,116,000		12,032,000		-		-		-		13,148,000
Karaoke machines and related consumer goods		-		-		-		-		21,939,000		-		-		21,939,000
Crane rental		-		-		-		-		-		-		37,726,000		37,726,000
Other		221,000		-				-		-		63,000		987,000		1,271,000
Revenue from contracts with customers		2,765,000		-		24,389,000		12,032,000		21,939,000		63,000		38,713,000		99,901,000
Revenue, lending and trading activities		-		4,337,000		-		-		-		-		-		4,337,000
Total revenue	$	2,765,000	$	4,337,000	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,713,000	$	104,238,000
Timing of Revenue Recognition
Goods transferred at a point in time	$	11,000	$	-	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	987,000	$	59,421,000
Services transferred over time		2,754,000		-		-		-		-		-		37,726,000		40,480,000
Revenue from contracts with customers	$	2,765,000	$	-	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,713,000	$	99,901,000

F-17

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy:

	Fair Value Measurement at September 30, 2024
	Total		Level 1		Level 2		Level 3
Assets:
Investment in common stock of Alzamend Neuro, Inc. (“Alzamend”) – a related party	$	131,000	$	131,000	$	-	$	-
Investments in marketable equity securities		687,000		687,000		-		-
Crypto assets		65,000		65,000		-		-
Total assets measured at fair value	$	883,000	$	883,000	$	-	$	-
Liabilities:
Warrant and embedded conversion feature liabilities	$	8,000	$	-	$	-	$	8,000
Total liabilities measured at fair value	$	8,000	$	-	$	-	$	8,000

	Fair Value Measurement at December 31, 2023
	Total		Level 1		Level 2		Level 3
Assets:
Investment in common stock of Alzamend – a related party	$	679,000	$	679,000	$	-	$	-
Investments in marketable equity securities		27,000		27,000		-		-
Cash and marketable securities held in trust account		2,200,000		2,200,000		-		-
Total assets measured at fair value	$	2,906,000	$	2,906,000	$	-	$	-
Liabilities:
Warrant and embedded conversion feature liabilities	$	970,000	$	-	$	-	$	970,000
Total liabilities measured at fair value	$	970,000	$	-	$	-	$	970,000

The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks.

The changes in Level 3 fair value hierarchy during the three and nine months ended September 30, 2024 and 2023 were as follows:

	Level 3 Balance at Beginning of Period		Fair Value Adjustments			Grants		Level 3 Balance at End of Period
Nine months ended September 30, 2024
Warrant liabilities	$	60,000	$	(52,000	)	$	-	$	8,000
Embedded conversion feature liabilities	$	910,000	$	(910,000	)	$	-	$	-
Nine months ended September 30, 2023
Warrant liabilities	$	651,000	$	(4,981,000	)	$	4,330,000	$	-
Embedded conversion feature liabilities	$	2,316,000	$	(3,439,000	)	$	1,352,000	$	229,000

	Level 3 Balance at Beginning of Period		Fair Value Adjustments			Grants		Level 3 Balance at End of Period
Three months ended September 30, 2024
Warrant liabilities	$	578,000	$	(570,000	)	$	-	$	8,000
Embedded conversion feature liabilities	$	155,000	$	(155,000	)	$	-	$	-
Three months ended September 30, 2023
Warrant liabilities	$	2,446,000	$	(2,446,000	)	$	-	$	-
Embedded conversion feature liabilities	$	2,577,000	$	(2,348,000	)	$	-	$	229,000

F-18

8. Equity Investments for Which Measurement Alternative Has Been Selected

As of September 30, 2024 and December 31, 2023, the Company held equity investments in other securities valued at $5.3 million and $21.8 million, respectively, that were valued using a measurement alternative. These investments are included in other equity securities in the accompanying consolidated balance sheets.

The Company has made cumulative downward adjustments for impairments for equity securities that do not have readily determinable fair values for the nine months ended September 30, 2024 and 2023, totaling $6.3 million and $11.6 million, respectively. Approximately $6.3 million of the impairment charge for the nine months ended September 30, 2024 was reflected in other income (expense) on the condensed consolidated statement of operations and comprehensive loss. Approximately $9.6 million of the impairment charge for the nine months ended September 30, 2023 was reflected in other income (expense) and $2.0 million of the impairment charge related to Fintech lending operations and was recorded against revenue from lending and trading activities on the condensed consolidated statement of operations and comprehensive loss.

9. Marketable EQUITY Securities

Marketable equity securities with readily determinable market prices consisted of the following as of September 30, 2024 and December 31, 2023:

	Marketable equity securities at September 30, 2024
			Gross unrealized		Gross unrealized
	Cost		gains		losses			Fair value
Common shares	$	5,476,000	$	672,000	$	(5,461,000	)	$	687,000

	Marketable equity securities at December 31, 2023
			Gross unrealized		Gross unrealized
	Cost		gains		losses			Fair value
Common shares	$	5,119,000	$	12,000	$	(5,104,000	)	$	27,000

The Company’s investment in marketable equity securities is revalued on each balance sheet date.

10. CRYPTO ASSETS

The following table presents revenue from mined crypto assets for the three and nine months ended September 30, 2024 and 2023:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue from mined crypto assets at Sentinum owned and operated facilities	$	4,362,000	$	6,389,000	$	19,563,000	$	21,103,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		902,000		1,169,000		5,638,000		2,170,000
Revenue, crypto assets mining	$	5,264,000	$	7,558,000	$	25,201,000	$	23,273,000

F-19

The following table presents the activities of the crypto assets (included in prepaid expenses and other current assets) for the nine months ended September 30, 2024 and 2023:

	For the Nine Months Ended
	September 30,
	2024			2023
Balance at January 1	$	546,000		$	554,000
Additions of mined crypto assets		19,563,000			21,103,000
Sale of crypto assets		(20,038,000	)		(21,330,000	)
Payments to vendors with crypto assets		(31,000	)		(20,000	)
Payment of notes payable with crypto assets		(506,000	)		-
Payment of interest payable with crypto assets		(142,000	)		-
Realized gain on sale of crypto assets		649,000			404,000
Unrealized gain on crypto assets		24,000			-
Impairment of mined crypto assets		-			(376,000	)
Balance at September 30	$	65,000		$	335,000

11. PROPERTY AND EQUIPMENT, NET

At September 30, 2024 and December 31, 2023, property and equipment consisted of:

	September 30, 2024			December 31, 2023
Building, land and improvements	$	92,850,000		$	100,184,000
Crypto assets mining equipment		12,162,000			50,640,000
Crane rental equipment		34,500,000			34,469,000
Computer, software and related equipment		11,276,000			10,533,000
Aircraft		15,983,000			15,983,000
Other property and equipment		11,503,000			11,066,000
		178,274,000			222,875,000
Accumulated depreciation and amortization		(17,400,000	)		(27,209,000	)
Property and equipment, net	$	160,874,000		$	195,666,000

Summary of depreciation expense:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Depreciation expense	$	7,533,000	$	9,894,000	$	19,174,000	$	21,823,000

Impairment of Property and Equipment

During the three months ended September 30, 2024, due to increases in the Bitcoin mining difficulty level, which compounded the continued impact of the Bitcoin halving event, we concluded that indicated that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of the Company’s miners to be less than their net carrying value as of September 30, 2024, and an impairment charge of $10.5 million was recognized, decreasing the net carrying value of the Company’s crypto assets mining equipment to their estimated fair value. The Company valued the miners using an income approach utilizing a discounted cash flow and a discount rate of 20%. The Company estimated the cash flow from the miners over a two-year period assuming a utilization rate of 98%, a mining difficulty level of 101.6 trillion, a Bitcoin price of $76,000 and a power cost of $0.055 per kilowatt-hour. The estimated fair value of the Company’s miners is classified in Level 3 of the fair value hierarchy with no observable inputs using a discounted cash flow methodology.

In addition, the Company has recorded $1.2 million and $9.2 million in impairment charges related to real estate assets of AGREE during the three and nine months ended September 30, 2024, respectively.

F-20

12. INTANGIBLE ASSETS, NET

At September 30, 2024 and December 31, 2023, intangible assets consisted of:

	Useful Life	September 30, 2024			December 31, 2023
Definite lived intangible assets:
Developed technology	7 years	$	2,081,000		$	1,949,000
Customer list	10 years		1,290,000			1,290,000
Trade names	12 years		1,030,000			1,030,000
			4,401,000			4,269,000
Accumulated amortization			(719,000	)		(222,000	)
Total definite-lived intangible assets		$	3,682,000		$	4,047,000

Certain of the Company’s trade names and trademarks were determined to have an indefinite life. The remaining definite-lived intangible assets are primarily being amortized on a straight-line basis over their estimated useful lives.

Summary of amortization expense:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Amortization expense	$	371,000	$	226,000	$	479,000	$	541,000

As of September 30, 2024, intangible assets subject to amortization have an average remaining useful life of 6.9 years. The following table presents estimated amortization expense for each of the succeeding five calendar years and thereafter.

2024 (remainder)	$	124,000
2025		494,000
2026		494,000
2027		494,000
2028		494,000
2029		370,000
Thereafter		1,212,000
	$	3,682,000

13. INVESTMENTS – RELATED PARTIES

Investments in Alzamend, Ault & Company, Inc. (“Ault & Company”) and GIGA at September 30, 2024 and December 31, 2023, were comprised of the following:

Investment in Promissory Notes, Related Parties – Ault & Company and GIGA (Recorded in “Investment in Promissory Notes and Other, Related Party” on the Condensed Consolidated Balance Sheets)

	Interest		September 30,			December 31,
	Rate	Due Date	2024			2023
Promissory note, related party	8%	December 31, 2024	$	2,500,000		$	2,500,000
10% Senior Secured Convertible Promissory Note - GIGA	10%	December 31, 2024		4,383,000			-
12% Senior Secured Subordinated Convertible Promissory Note - GIGA	10%	December 31, 2024		6,750,000			-
12% Senior Secured Subordinated Convertible Promissory Note - GIGA	12%	June 30, 2025		5,194,000			-
Debtor in possession Loan Agreement - GIGA	6%	October 28, 2024		80,000			-
Accrued interest receivable GIGA				768,000			-
Accrued interest receivable Ault & Company				568,000			568,000
Other				211,000			900,000
Allowance for credit losses				(5,668,000	)		-
Total investment in promissory notes and other, related parties			$	14,786,000		$	3,968,000

F-21

Summary of interest income, related party, recorded within interest and other income on the condensed consolidated statement of operations:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Interest income, related party	$	557,000	$	50,000	$	1,144,000	$	150,000

At each reporting date, the Company applies its judgment to evaluate the collectability of the note receivable and makes a provision based on the assessed amount of expected credit loss. This judgment is based on parameters such as interest rates, market conditions and creditworthiness of the creditor.

The Company determined that the collectability of certain notes receivables is doubtful based on information available.

Upon the deconsolidation of the GIGA, the Company established an allowance for credit losses of $2.6 million related to notes receivable from GIGA included in net gain (loss) from discontinued operations.

During the three months ended March 31, 2024, due to uncertainties surrounding collection, the Company recorded a loan loss reserve of $3.1 million related to the promissory note from Ault & Company recorded in provision for loan losses, related party, reversed the related accrued receivable and did not record interest income on the note.

Investment in Alzamend Series B Convertible Preferred Stock, Warrants and Common Stock, Related Parties – Alzamend (Recorded in “Investments in Common Stock and Equity Securities, Related Party” on the Condensed Consolidated Balance Sheets)

	Investments in common stock, related parties at September 30, 2024
	Cost		Gross unrealized losses			Fair value
Common shares	$	24,697,000	$	(24,566,000	)	$	131,000
Alzamend series B convertible preferred stock, warrants		2,100,000		-			2,100,000
	$	26,797,000	$	(24,566,000	)	$	2,231,000

	Investments in common stock, related parties at December 31, 2023
	Cost		Gross unrealized losses			Fair value
Common shares	$	24,688,000	$	(24,009,000	)	$	679,000

The following tables summarize the changes in the Company’s investments in Alzamend common stock during the three and nine months ended September 30, 2024 and 2023:

	For the Three Months Ended September 30,
	2024			2023
Balance at July 1	$	304,000		$	5,836,000
Investment in common stock of Alzamend		-			-
Unrealized loss in common stock of Alzamend		(173,000	)		(3,124,000	)
Balance at September 30	$	131,000		$	2,712,000

	For the Nine Months Ended September 30,
	2024			2023
Balance at January 1	$	679,000		$	6,449,000
Investment in common stock of Alzamend		9,000			15,000
Unrealized loss in common stock of Alzamend		(557,000	)		(3,752,000	)
Balance at September 30	$	131,000		$	2,712,000

Ault Lending, LLC (“Ault Lending”) Investment in Alzamend Series B Convertible Preferred Stock and Warrants

	September 30,		December 31,
	2024		2023
Investment in Alzamend preferred stock	$	2,100,000	$	-
Total investment in other investments securities, related party	$	2,100,000	$	-

In connection with a securities purchase agreement entered into with Alzamend in January 2024, the Company purchased 2,100 shares of Alzamend Series B Convertible Preferred Stock and warrants to purchase 2.1 million shares of Alzamend common stock with a five-year term and an exercise price of $1.20 per share for a total purchase price of $2.1 million.

The Agreement provides that Ault Lending may purchase up to $6 million of Alzamend Series B Convertible Preferred Stock in one or more closings. There have been additional closings subsequent to January 2024.

F-22

The Company has elected to account for investment in other investments securities, related party, using a measurement alternative under which they are measured at cost and adjusted for observable price changes and impairments.

Messrs. Ault, Horne and Nisser are each paid $50,000 annually by Alzamend.

14. EQUITY METHOD INVESTMENT

Equity Investments in Unconsolidated Entity – Algorhythm Holdings, Inc. (f/k/a The Singing Machine Company) (“SMC”)

The following table summarizes the changes in the Company’s equity investments in an unconsolidated entity, SMC, included in other assets on the condensed consolidated balance sheet, during the nine months ended September 30, 2024:

Rollforward investment in unconsolidated entity	Amount
Beginning balance - January 1, 2024	$	1,957,000
Loss from investment in unconsolidated entity		(1,957,000	)
Ending balance - September 30, 2024	$	-

There was no activity in the investment in the unconsolidated entity account during the three months ended September 30, 2024, prior to the transition from the equity method of accounting on September 5, 2024, as described below. Consequently, the beginning balance, activity, and ending balance for this period were all zero.

On September 5, 2024, three of the Company’s employees resigned from the board of directors of SMC. As a result of the resignations, and as the Company owned less than 20% of SMC at the time, the Company no longer had the ability to exert significant influence over the operating and financial policies of SMC. The Company discontinued the equity method of accounting for the investment in SMC on September 5, 2024. As a result, the Company changed its accounting for SMC to an investment in marketable equity securities and recognized the investment at fair value, with a gain of $1.3 million recognized as revenue from lending and trading activities in the condensed consolidated statement of operations and comprehensive loss.

15. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Other current liabilities at September 30, 2024 and December 31, 2023 consisted of:

	September 30,		December 31,
	2024		2023
Accounts payable	$	20,419,000	$	26,777,000
Accrued payroll and payroll taxes		8,773,000		8,237,000
Warrant liabilities		8,000		60,000
Interest payable		8,669,000		4,197,000
Accrued legal		2,439,000		2,340,000
Other accrued expenses		18,166,000		13,811,000
	$	58,474,000	$	55,422,000

16. DIVIDEND PAYABLE IN TURNONGREEN COMMON STOCK

In March 2024, the Company, in connection with a planned distribution of its common stock holdings of TurnOnGreen, announced the distribution to its stockholders of 25.0 million shares of TurnOnGreen common stock and warrants to purchase 25.0 million shares of TurnOnGreen common stock, which resulted in an adjustment to additional paid in capital and increase to non-controlling interest of $4.9 million based on the recorded value of the Company’s holdings in TurnOnGreen at the record date of the distribution.

17. ROI Transfers of White River Common Stock

In January of 2024, ROI announced that it had concluded that, for regulatory reasons, ROI would be unable to effect the distribution of its shares of common stock of White River as contemplated by a registration statement previously filed by White River. In an effort to attempt to fulfill its original intent to transfer the shares to ROI shareholders of record as of September 30, 2022, ROI would send such shareholders an agreement whereby qualified shareholders can demonstrate to ROI’s satisfaction that they in fact were beneficial shareholders of ROI’s common or preferred stock as of September 30, 2022 and affirm that they are “accredited investors” by July 26, 2024.

F-23

During the nine months ended September 30, 2024, ROI transferred 12.0 million shares of White River common stock with a fair value of $19.2 million at the date of transfer to certain of its accredited investors to resolve the matters discussed above.

In conjunction with the transfers to non-controlling interests, shares of ROI’s investment in White River’s Series A Convertible Preferred Stock were converted into shares of White River common stock, resulting in a non-cash $17.9 million gain on conversion.

Ault Lending Transfer

On February 14, 2024, ROI transferred 2.5 million shares of White River common stock with a carryover basis of $0.5 million and a fair value of $7.5 million on the date of transfer to Ault Lending.

18. REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY

The Company records redeemable noncontrolling interests in equity of subsidiaries to reflect the economic interests of the common stockholders in Ault Disruptive.

Redemption of Shares

On September 27, 2024, Ault Disruptive announced that it will redeem all of its outstanding shares of common stock which occurred as of the close of business on October 11, 2024, because Ault Disruptive would not consummate an initial business combination within the time period required by its Amended and Restated Certificate of Incorporation, as amended. During the nine months ended September 30, 2024, shares of Ault Disruptive common stock were redeemed for an aggregate redemption amount of $1.5 million.

On October 11, 2024, all remaining shares of Ault Disruptive common stock were redeemed for a redemption amount of $0.8 million.

The following table summarizes the changes in the Company’s redeemable noncontrolling interests in equity of subsidiaries during the three months ended September 30, 2024 and 2023:

	For the Three Months Ended
	September 30,
	2024		2023
Redeemable noncontrolling interests in equity of subsidiaries as of July 1	$	795,000	$	1,951,000
Remeasurement of carrying value to redemption value		9,000		228,000
Redeemable noncontrolling interests in equity of subsidiaries as of September 30	$	804,000	$	2,179,000

The following table summarizes the changes in the Company’s redeemable noncontrolling interests in equity of subsidiaries during the nine months ended September 30, 2024 and 2023:

	For the Nine Months Ended
	September 30,
	2024			2023
Redeemable noncontrolling interests in equity of subsidiaries as of January 1	$	2,224,000		$	117,993,000
Redemption of Ault Disruptive common stock		(1,463,000	)		(120,064,000	)
Remeasurement of carrying value to redemption value		43,000			4,250,000
Redeemable noncontrolling interests in equity of subsidiaries as of September 30	$	804,000		$	2,179,000

Merger Agreement

On June 23, 2024, Ault Disruptive entered into a Merger Agreement with GIGA, intending for GIGA to become a majority owned subsidiary and for Ault Disruptive to be renamed Gresham Worldwide, Inc., trading under the ticker “GWWI” on the NYSE American. However, due to GIGA’s bankruptcy filing, the merger agreement was subsequently terminated.

On August 14, 2024, GIGA filed a petition for reorganization under Chapter 11 of the bankruptcy laws.

F-24

19. NOTES PAYABLE

Notes payable at September 30, 2024 and December 31, 2023, were comprised of the following:

	Collateral	Guarantors	Interest rate	Due date	September 30, 2024			December 31, 2023
AGREE secured construction loans	AGREE hotels	-	7.0%	January 1, 2025	$	68,750,000		$	67,632,000
Circle 8 revolving credit facility	Circle 8 cranes with a book value of $29.6 million	-	10.0%	December 16, 2025		13,651,000			15,907,000
16% promissory note (in default)	-	Ault & Company and Milton C. Ault, III	16.0% (default rate of 24.0%)	July 15, 2024		5,572,000			2,572,000
Circle 8 equipment financing notes	Circle 8 equipment with a book value of $4.3 million	-	10.5%	September 15, 2025 through June 15, 2027		3,829,000			5,629,000
15% term notes (in default as of November 1, 2024)	-	Milton C. Ault, III	15.0% (default rate of 22.99%)	October 31, 2024		5,399,000			-
8% demand loans	-	-	8.0%	Upon demand		-			950,000
Sentinum note payable	-	-	12.5%	-		-			1,067,000
ROI promissory note (in default)	-	-	15.0% (default rate of 18.0%)	April 30, 2024		2,094,000			-
Other ($0.9 million in default)	-	-	-	-		5,501,000			3,808,000
Total notes payable					$	104,796,000		$	97,565,000
Less:
Unamortized debt discounts						(306,000	)		(453,000	)
Total notes payable, net					$	104,490,000		$	97,112,000
Less: current portion						(87,730,000	)		(11,692,000	)
Notes payable – long-term portion					$	16,760,000		$	85,420,000

F-25

OID Only Term Note

On July 2, 2024, the Company entered into a term note agreement with institutional investors for the sale of up to $2.6 million in term notes, of which the principal amount of $1.8 million was immediately funded. A term note was issued at a discount, with net proceeds to the Company of $1.5 million. The term note does not accrue any interest. The term note was scheduled to mature on August 2, 2024. The term note is guaranteed by Mr. Ault. The term note maturity was extended to October 16, 2024, and an extension fee of $0.2 million accrues monthly until the term note is paid in full. The term note is included in “Other” in the table above.

ROI 15% Term Note

On February 9, 2024, ROI entered into a $1.77 million term note agreement with an institutional investor bearing interest of 15%. The term note was issued at a discount, with net proceeds to ROI of $1.75 million. The term note was scheduled to mature February 14, 2024. This note has been guaranteed by Ault & Company and Mr. Ault. The term note was subsequently amended to increase the principal amount due to $2.1 million, increase the interest rate to 18% and extend the maturity date to April 30, 2024. The term note is in default as of May 1, 2024.

15% Term Notes

Between April 29, 2024 and August 29, 2024, the Company entered into note agreements totaling $5.7 million with an institutional investor bearing interest of 15%. The term notes were issued at a discount, with net proceeds to the Company of $5.1 million. The term notes were amended to extend the maturity dates to October 31, 2024. The note is default as of November 1, 2024.

$20 Million Credit Agreement

On June 4, 2024 the Company entered into a Loan Agreement (the “Credit Agreement”) with two institutional investors (collectively, the “Lender”). The Credit Agreement provides for an unsecured, non-revolving credit facility with an aggregate draw limit of $20.0 million. However, the Company is restricted to having no more than $2.0 million in principal amount of outstanding advances at any given time under the Credit Agreement. As of September 30, 2024, $2.0 million has been advanced, exclusive of a $0.4 million original issue discount (“OID”).

All loans under the Credit Agreement will be evidenced by a promissory note. The Lender made an Advance to the Company of $1.5 million on the execution date. The advances are due December 4, 2024, provided, however, that if on such date, the Company has executed an equity line of credit agreement relating to the sale of shares of the Company’s 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, has an effective registration statement relating thereto and is not currently in default under such agreement, then the maturity date shall be automatically extended until June 4, 2025. The Lender is not obligated to make any further Advances under the Credit Agreement after the maturity date. Advances under the Credit Agreement will include the addition of an OID of 20% to the amount of each Advance and all Advances will bear interest at the rate of 15.0% per annum and may be repaid at any time without penalty or premium.

The obligations of the Company under the Credit Agreement are secured by a guaranty provided by Milton C. Ault, the Executive Chairman of the Company.

Circle 8 revolving credit facility

On October 16, 2024, Circle 8 was in default related to reporting requirements under the terms of their revolving credit facility. Circle 8 was able to obtain a waiver on November 19, 2024 to cure the event of default.

Notes Payable Maturities

The contractual maturities of the Company’s notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of September 30, 2024 were:

Year
2024 (remainder)	$	19,261,000
2025		84,124,000
2026		879,000
2027		266,000
2028		266,000
	$	104,796,000

F-26

Interest Expense

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Contractual interest expense	$	5,350,000	$	4,986,000	$	10,725,000	$	9,645,000
Forbearance fees		1,050,000		518,000		3,300,000		7,319,000
Amortization of debt discount		1,366,000		634,000		4,800,000		18,216,000
Total interest expense	$	7,766,000	$	6,138,000	$	18,825,000	$	35,180,000

20. NOTES PAYABLE, RELATED PARTY

Notes payable, related party at September 30, 2024 and December 31, 2023, were comprised of the following:

	Interest rate	Due date	September 30, 2024		December 31, 2023
Notes from officers – Hyperscale Data	18%	-	$	-	$	98,000
Notes from officers - TurnOnGreen	14%	Past due		46,000		51,000
Notes from board member - ROI	No interest	Upon demand		-		90,000
Ault & Company advances	No interest	Upon demand		-		1,909,000
Other related party advances	No interest	Upon demand		125,000		124,000
Total notes payable			$	171,000	$	2,272,000

Summary of interest expense, related party, recorded within interest expense on the condensed consolidated statement of operations:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Interest expense, related party	$	1,000	$	-	$	20,000	$	-

21. CONVERTIBLE NOTES

Convertible notes payable at September 30, 2024 and December 31, 2023, were comprised of the following:

	Conversion price per share	Interest rate	Due date	September 30, 2024			December 31, 2023
Convertible promissory note –OID only - in default	90% of 5-day VWAP	OID Only	September 28, 2024	$	393,000		$	1,673,000
10% OID convertible promissory note – in default as of October 20, 2024	$0.17	18%	October 19, 2024		4,730,000			-
Avalanche International Corp. (“AVLP”) convertible promissory notes, principal	$0.35 (AVLP stock)	7%	August 22, 2025		9,911,000			9,911,000
ROI senior secured convertible note - in default (1)	$0.11 (ROI stock)	OID Only	April 27, 2024		4,245,000			6,513,000
Fair value of embedded conversion options					-			910,000
Total convertible notes payable					19,279,000			19,007,000
Less: unamortized debt discounts					(101,000	)		(2,179,000	)
Total convertible notes payable, net of financing cost, long term				$	19,178,000		$	16,828,000
Less: current portion					(9,725,000	)		(7,375,000	)
Convertible notes payable, net of financing cost – long-term portion				$	9,453,000		$	9,453,000

(1) See Arena litigation discussed in Note 22 below.

F-27

10% OID Convertible Promissory Note

On July 18, 2024, the Company entered into a note purchase agreement (the “Purchase Agreement”) with an institutional investor (the “Investor”) pursuant to which the Investor purchased from the Company, on July 19, 2024, in a registered direct offering, a $5.4 million 10% OID Convertible Promissory Note (the “Note”). The Note was sold to the Investor for a purchase price of $4.9 million, which included an OID of $0.5 million. The Note accrues interest at the rate of 15%. The Note matured on October 19, 2024 and is in default as of October 20, 2024. The Note is convertible into shares of Class A common stock at a conversion price of $0.17 per share.

During the three and nine months ended September 30, 2024, the Investor converted $0.7 million of the Note into 3.0 million shares of Class A common stock that had a fair value of $0.9 million at the time of conversion and the Company recognized a $0.2 million loss on extinguishment of debt.

6% Convertible Promissory Notes

On March 11, 2024, the Company entered into a note purchase agreement with two institutional investors pursuant to which the investors agreed to acquire, and the Company agreed to issue and sell in a registered direct offering to the investors an aggregate of $2.0 million convertible promissory notes, bearing interest of 6%. The convertible promissory notes were converted into shares of Class A common stock in May 2024 at a conversion price of $0.35 per share and the Company recognized a $0.7 million loss on extinguishment of debt.

ROI Gain on Extinguishment of Senior Secured Convertible Notes

During the nine months ended September 30, 2024, ROI converted $2.3 million of ROI senior secured convertible notes that had a fair value of $0.9 million at the time of conversion and recognized a $1.4 million gain on extinguishment of debt.

Contractual Maturities

The contractual maturities of the Company’s convertible notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of September 30, 2024 were:

Year	Principal
2024	$	9,368,000
2025		9,911,000
	$	19,279,000

Significant inputs associated with the embedded conversion options include:

	September 30, 2024	December 31, 2023	At Inception
Contractual term in years	Variable	2.7	1.0
Volatility	75%	82%	111%
Dividend yield	0%	0%	0%
Risk-free interest rate	4.0%	4.0%	3.5%

Activity related to the embedded conversion option derivative liabilities for the nine months ended September 30, 2024 was as follows:

Balance as of January 1, 2024	$	910,000
Change in fair value		(910,000	)
Ending balance as of September 30, 2024	$	-

F-28

22. COMMITMENTS AND CONTINGENCIES

Contingencies

Litigation Matters

The Company is involved in litigation arising from other matters in the ordinary course of business. The Company is regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving labor and employment, commercial disputes, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil penalties, or other adverse consequences.

Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. The Company records a liability when it believes that it is probable that a loss has been incurred and the amount can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the reasonably possible loss. The Company evaluates developments in its legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and makes adjustments as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters.

Arena Litigation

Arena Investors, LP (ROI Litigation)

On May 30, 2024, Arena Investors, LP (“Arena”), in its capacity as collateral agent for five noteholders, filed a filed a Complaint (the “ROI Complaint”) in the Supreme Court of the State of New York, County of New York against the Company and ROI, in action captioned Arena Investors, LP v. Ault Alliance, Inc. and RiskOn International, Inc., Index No. 652792/2024.

The ROI Complaint asserts a cause of action for breach of contract against the Company based on a Guaranty, dated April 27, 2023, and entered into, amongst others, the Company and Arena, and seeks damages in the amount of in excess of $3.75 million, plus interest, attorneys’ fees, costs, expenses, and disbursements.

The ROI Complaint also asserts a cause of action for breach of contract against ROI based on an alleged breach of that certain Security Agreement, dated April 27, 2023, and entered into among ROI and Arena. In connection with this cause of action, Arena seeks, among other things, costs and expenses from the Company and ROI.

On July 31, 2024, the Company and ROI filed a motion to dismiss seeking to partially dismiss the ROI Complaint, as against the Company, and to dismiss the Compliant, in its entirety, as against ROI.

The Motion has been fully briefed and is currently pending before the Court.

Based on the Company’s assessment of the facts underlying the claims, the uncertainty of litigation, and the preliminary stage of the case, the Company cannot reasonably estimate the potential loss or range of loss that may result from this action. Notwithstanding, the Company has recorded the unpaid portion of the notes. An unfavorable outcome may have a material adverse effect on the Company’s business, financial condition and results of operations.

Arena Investors, LP (Gresham Litigation)

On June 6, 2024, Arena, in its capacity as collateral agent for Arena and Walleye Opportunities Master Fund Ltd. (“Walleye”), filed a Complaint (the “Complaint”) in the Supreme Court of the State of New York, County of New York against the Company and GIGA, in action captioned Arena Investors, LP v. Gresham Worldwide, Inc. f/k/a Giga-Tronics Incorporated and Ault Alliance, Inc., Index No. 652898/2024.

On July 8, 2024, Arena filed an Amended Complaint (the “Amended Complaint”) in the above-referenced action.  The Amended Complaint asserts a cause of action against the Company for declaratory and injunctive relief seeking an injunction enjoining the Company, and its agent, affiliates, servants, and employees from taking actions in breach of that certain Subordination Agreement, dated January 9, 2023, and entered into among Walleye, Arena, and the Company.

F-29

The Amended Complaint also asserts causes of action for breach of contract against GIGA based on two discrete convertible promissory notes (the “Notes”) that GIGA entered into with each of Arena and Walleye, as well as a claim for breach duty of good faith and fair dealing, against GIGA, and seeks, among other things, monetary damages in excess of $4.2 million, with interest thereon, attorneys’ fees, costs, and disbursements.  The Amended Complaint further asserts another cause of action against GIGA for breach of contract seeking declaratory and injunctive relief based on alleged inspection rights contained in a Security Agreement, dated January 9, 2023 (the “Security Agreement”), and entered into between the Walleye, Arena, and GIGA, which seeks the issuance of an injunction related to such alleged inspection rights, plus the costs and out-of-pocket expenses associated with the enforcement of same.

On July 12, 2024, the Court granted injunctive relief to Arena and ordered GIGA to comply with the inspection rights provision of the Security Agreement by July 17, 2024.

On July 19, 2024, Arena voluntarily discontinued its cause of action for breach duty of good faith and fair dealing claim against GIGA.

On July 29, 2024, the Company and GIGA filed a motion to dismiss, strike, and for sanctions (the “Motion”), in response to the Amended Complaint, on the grounds that, amongst other things, the underlying Notes are criminally usurious under New York.

On August 14, 2024, GIGA filed a petition for reorganization under Chapter 11 of the bankruptcy laws.

On November 12, 2024, GIGA removed the state court action to the United States District Court for the Southern District of New York.

Based on the Company’s assessment of the facts underlying the claims, the uncertainty of litigation, and the preliminary stage of the case, the Company cannot reasonably estimate the potential loss or range of loss that may result from this action. Notwithstanding, the Company has recorded the unpaid portion of the Notes. An unfavorable outcome may have a material adverse effect on the Company’s business, financial condition and results of operations.

Other Litigation Matters

With respect to the Company’s other outstanding matters, based on the Company’s current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on the Company’s business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. 

The Company had accrued loss contingencies related to litigation matters of $2.4 million and $2.3 million as of September 30, 2024 and December 31, 2023, respectively.

23. STOCKHOLDERS’ EQUITY

Reverse Stock Split

On January 12, 2024, pursuant to the authorization provided by the Company’s stockholders at the annual meeting of stockholders, the Company’s board of directors approved an amendment to the Certificate of Incorporation to effectuate a reverse stock split of the Company’s issued and outstanding common stock by a ratio of one-for-twenty-five (the “1-for-25 Reverse Split”). The 1-for-25 Reverse Split did not affect the number of authorized shares of common stock, preferred stock or their respective par value per share. As a result of the 1-for-25 Reverse Split, each twenty-five shares of common stock issued and outstanding prior to the 1-for-25 Reverse Split were converted into one share of common stock. The 1-for-25 Reverse Split became effective in the State of Delaware on January 16, 2024.

2023 Issuances

Common ATM Offering

During the three and nine months ended September 30, 2024, the Company sold an aggregate of 0 and 25.6 million shares of Class A common stock pursuant to the At-The-Market issuance sales agreement, as amended, entered into with Ascendiant Capital Markets, LLC in 2023 (the “2023 Common ATM Offering”) for gross proceeds of $0 and $14.6 million, respectively.

F-30

Series C Convertible Preferred Stock Offering, Related Party

During the three and nine months ended September 30, 2024, the Company sold to Ault & Company an aggregate of 300 and 2,800 shares of Series C Preferred Stock and Warrants to purchase 0.1 million and 0.8 million shares of Class A common stock, for a total purchase price of $0.3 million and $2.8 million, respectively.

Amendment to Loan and Guarantee Agreement

On September 17, 2024, the loan and guarantee agreement, dated as of December 14, 2023, as amended, pursuant to which the Company has guaranteed financial obligations of Ault & Company borrowings, was amended regarding the Company’s obligations to fund the restricted cash Segregated Account.

The Company agreed to deposit in the Segregated Account: (i) $0.4 million monthly commencing on September 30, 2024 and ending on February 28, 2025; and (ii) $0.5 million monthly commencing on March 31, 2025 and ending on the earlier of the term loan maturity date, prepayment of the term loan in full or the date on which the balance of the Segregated Account exceeds 110% of the outstanding balance of the term loan. As of September 30, 2024, the Company had deposited $6.5 million in the Segregated Account. In October 2024, the Company deposited an additional $0.4 million in the Segregated Account.

ELOC Purchase Agreement

On June 20, 2024, the Company entered into a purchase agreement, as amended on November 1, 2024 (the “ELOC Purchase Agreement”) with Orion Equity Partners, LLC (“Orion”), which provides that, upon the terms and subject to the conditions and limitations set forth therein, the Company has the right to direct Orion to purchase up to an aggregate of $37.5 million of shares of the Company’s 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share (the “Preferred Shares”) over the 36-month term of the ELOC Purchase Agreement at a purchase price equal to 91% of the average closing stock price during the seven consecutive trading days immediately preceding a given purchase date. Under the ELOC Purchase Agreement, after the satisfaction of certain commencement conditions, including, without limitation, the effectiveness of a resale registration statement registering the Preferred Shares for sale (the “Registration Statement”).

The ELOC Purchase Agreement may be terminated by the Company at any time after commencement, at its discretion, provided that at the time of termination, the Company does not have any outstanding amounts owed to the Lenders, who are affiliates of Orion, pursuant to the Credit Agreement.

There have been no purchases under the ELOC Purchase Agreement.

24. INCOME TAXES

The Company calculates its interim income tax provision in accordance with ASC Topic 270, Interim Reporting, and ASC Topic 740, Income Taxes. The Company’s effective tax rate (“ETR”) from continuing operations was 0.1% and 2.0% for the three months ended September 30, 2024 and 2023, respectively, and (0.21%) and 0.4% for the nine months ended September 30, 2024 and 2023, respectively. The Company recorded an income tax provision of $67,000 and $0.1 million for the three months ended September 30, 2024 and 2023, respectively, and an income tax provision of $47,000 and an income tax provision of $0.5 million for the nine months ended September 30, 2024 and 2023, respectively. The difference between the ETR and federal statutory rate of 21% is primarily attributable to items recorded for GAAP but permanently disallowed for U.S. federal income tax purposes and changes in valuation allowance.

F-31

25. NET LOSS PER SHARE

Net loss per share is computed by dividing the net loss to common stockholders by the weighted average number of common shares outstanding. The calculation of the basic and diluted earnings per share is the same for all periods presented as the effect of the potential common stock equivalents is anti-dilutive due to the Company’s net loss position for all periods presented. Anti-dilutive securities, which are convertible into or exercisable for the Company’s common stock, consisted of the following at September 30, 2024 and 2023:

	September 30,		September 30,
	2024		2023
Convertible preferred stock		264,322,000		-
Warrants		15,006,000		2,000
Convertible notes		315,000		-
Stock options		1,000		1,000
Total		279,644,000		3,000

F-32

26. SEGMENT AND CUSTOMERS INFORMATION

The Company had the following reportable segments as of September 30, 2024 and 2023; see Note 1 for a brief description of the Company’s business.

The following data presents the revenues, expenditures and other operating data of the Company and its operating segments for the three and nine months ended September 30, 2024:

Nine Months Ended September 30, 2024
	TurnOnGreen			Fintech			Sentinum			AGREE			Energy			ROI			Holding Co.			Total
Revenue	$	3,751,000		$	-		$	-		$	-		$	94,000		$	121,000		$	1,819,000		$	5,785,000
Revenue, crypto assets mining		-			-			25,201,000			-			-			-			-			25,201,000
Revenue, hotel and real estate operations		-			-			725,000			13,652,000			-			-			-			14,377,000
Revenue, crane operations		-			-			-			-			36,945,000			-			-			36,945,000
Revenue, lending and trading activities		-			4,911,000			-			-			-			-			-			4,911,000
Total revenues	$	3,751,000		$	4,911,000		$	25,926,000		$	13,652,000		$	37,039,000		$	121,000		$	1,819,000		$	87,219,000
Depreciation and amortization expense	$	73,000		$	-		$	12,322,000		$	2,162,000		$	3,513,000		$	57,000		$	1,526,000		$	19,653,000
Impairment of property and equipment	$	-		$	-		$	10,500,000		$	9,246,000		$	-		$	-		$	-		$	19,746,000
(Loss) income from operations	$	(2,781,000	)	$	3,634,000		$	(11,066,000	)	$	(8,850,000	)	$	1,464,000		$	(15,891,000	)	$	(14,379,000	)	$	(47,869,000	)
Interest expense	$	-		$	(5,000	)	$	(122,000	)	$	(5,345,000	)	$	(2,693,000	)	$	(2,215,000	)	$	(8,445,000	)	$	(18,825,000	)
Capital expenditures for the nine months ended September 30, 2024	$	53,000		$	-		$	1,675,000		$	774,000		$	2,054,000		$	112,000		$	95,000		$	4,763,000
Segment identifiable assets as of September 30, 2024	$	3,755,000		$	12,787,000		$	37,249,000		$	81,331,000		$	50,537,000		$	1,309,000		$	44,230,000		$	231,198,000

Three Months Ended September 30, 2024
	TurnOnGreen			Fintech		Sentinum			AGREE			Energy			ROI			Holding Co.			Total
Revenue	$	1,290,000		$	-	$	-		$	-		$	26,000		$	54,000		$	845,000		$	2,215,000
Revenue, crypto assets mining		-			-		5,264,000			-			-			-			-			5,264,000
Revenue, hotel and real estate operations		-			-		168,000			5,512,000			-			-			-			5,680,000
Revenue, crane operations		-			-		-			-			12,327,000			-			-			12,327,000
Revenue, lending and trading activities		-			5,575,000		-			-			-			-			-			5,575,000
Total revenues	$	1,290,000		$	5,575,000	$	5,432,000		$	5,512,000		$	12,353,000		$	54,000		$	845,000		$	31,061,000
Depreciation and amortization expense	$	25,000		$	-	$	4,170,000		$	1,771,000		$	1,426,000		$	19,000		$	493,000		$	7,904,000
Impairment of property and equipment	$	-		$	-	$	10,500,000		$	1,291,000		$	-		$	-		$	-		$	11,791,000
(Loss) income from operations	$	(1,479,000	)	$	4,484,000	$	(13,887,000	)	$	(1,268,000	)	$	514,000		$	(8,877,000	)	$	(4,082,000	)	$	(24,595,000	)
Interest expense	$	157,000		$	3,000	$	(4,000	)	$	(2,362,000	)	$	(682,000	)	$	328,000		$	(5,206,000	)	$	(7,766,000	)
Capital expenditures for the three months ended September 30, 2024	$	45,000		$	-	$	690,000		$	112,000		$	188,000		$	53,000		$	22,000		$	1,110,000

F-33

The following data presents the revenues, expenditures and other operating data of the Company and its operating segments for the three and nine months ended September 30, 2023:

Nine Months Ended September 30, 2023
	TurnOnGreen			Fintech		Sentinum			AGREE			Ault Disruptive			SMC			Energy			ROI			Holding Co.			Total
Revenue, product	$	2,765,000		$	-	$	-		$	-		$	-		$	21,939,000		$	987,000		$	63,000		$	-		$	25,754,000
Revenue, crypto assets mining		-			-		23,273,000			-			-			-			-			-			-			23,273,000
Revenue, hotel and real estate operations							1,116,000			12,032,000																		13,148,000
Revenue, lending and trading activities		-			4,337,000		-			-			-			-			-			-			-			4,337,000
Revenue, crane operations		-			-		-			-			-			-			37,726,000			-			-			37,726,000
Total revenues	$	2,765,000		$	4,337,000	$	24,389,000		$	12,032,000		$	-		$	21,939,000		$	38,713,000		$	63,000		$	-		$	104,238,000
Depreciation and amortization expense	$	68,000		$	-	$	14,362,000		$	2,408,000		$	-		$	779,000		$	3,053,000		$	152,000		$	1,556,000		$	22,378,000
(Loss) income from operations	$	(4,067,000	)	$	1,091,000	$	(4,363,000	)	$	(349,000	)	$	(1,052,000	)	$	(4,598,000	)	$	(30,216,000	)	$	(33,590,000	)	$	(20,011,000	)	$	(97,155,000	)
Capital expenditures for the nine months ended September 30, 2023	$	131,000		$	-	$	1,426,000		$	6,035,000		$	-		$	383,000		$	3,319,000		$	407,000		$	2,906,000		$	14,607,000
Segment identifiable assets as of December 31, 2023	$	4,995,000		$	17,027,000	$	59,903,000		$	90,991,000		$	2,347,000		$	-		$	51,254,000		$	9,937,000		$	43,943,000		$	280,397,000

Three Months Ended September 30, 2023
	TurnOnGreen			Fintech			Sentinum			AGREE		Ault Disruptive			SMC		Energy		ROI			Holding Co.			Total
Revenue, product	$	1,166,000		$	-		$	-		$	-	$	-		$	15,931,000	$	439,000	$	18,000		$	-		$	17,554,000
Revenue, crypto assets mining		-			-			7,558,000			-		-			-		-		-			-			7,558,000
Revenue, commercial real estate leases								333,000			5,404,000															5,737,000
Revenue, lending and trading activities		-			(249,000	)		-			-		-			-		-		-			-			(249,000	)
Revenue, crane operations		-			-			-			-		-			-		12,490,000		-			-			12,490,000
Total revenues	$	1,166,000		$	(249,000	)	$	7,891,000		$	5,404,000	$	-		$	15,931,000	$	12,929,000	$	18,000		$	-		$	43,090,000
Depreciation and amortization expense	$	24,000		$	-		$	5,792,000		$	774,000	$	-		$	338,000	$	1,073,000	$	32,000		$	528,000		$	8,561,000
(Loss) income from operations	$	(1,498,000	)	$	(1,039,000	)	$	(2,661,000	)	$	1,050,000	$	(214,000	)	$	181,000	$	2,505,000	$	(13,315,000	)	$	(5,359,000	)	$	(20,350,000	)
Capital expenditures for the three months ended September 30, 2023	$	121,000		$	-		$	261,000		$	518,000	$	-		$	199,000	$	1,983,000	$	-		$	314,000		$	3,396,000

F-34

27. CONCENTRATIONS OF CREDIT AND REVENUE RISK

Significant customers are those that represent more than 10% of the Company’s total revenue or accounts receivable balances for the periods and as of each balance sheet date presented. For each significant customer, revenue as a percentage of total revenue and gross accounts receivable as a percentage of total gross accounts receivable as of the periods presented were as follows:

	Accounts Receivable		Revenue
	September 30,	December 31,	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2024	2023	2024	2023	2024	2023
Customer A	*	*	14%	*	22%	*
Customer B	*	*	*	*	*	11%
Customer C	*	17%	*	*	*	*

* less than 10%

28. SUBSEQUENT EVENTS

Additional Closings of Series C Preferred Stock, Related Party

In October and November 2024, the Company sold to Ault & Company an aggregate of 2,230 shares of Series C Preferred Stock and Warrants to purchase 0.7 million shares of Class A common stock, for a total purchase price of $2.2 million.

Agreement to Sell St. Petersburg Property

On October 2, 2024, Third Avenue Apartments LLC, a wholly owned indirect subsidiary of the Company, entered into a contract of sale with a third-party purchaser and agreed to sell its real estate property in St. Petersburg, Florida for $13.2 million. The closing of the sale of the property is expected to occur on or before December 31, 2024. The Company is obligated to pay $11 million of the purchase price into the segregated account for the benefit of its senior secured lenders. Based on the expected sale price of the St. Petersburg property, the Company recorded an impairment charge of $1.3 million during the three and nine months ended September 30, 2024 in the condensed consolidated statement of operations and comprehensive loss.

10.00% Series E Cumulative Redeemable Perpetual Preferred Stock (the “Series E Preferred Stock”)

On November 11, 2024 the Company filed a Certificate of Designation, Rights and Preferences (the “Certificate of Designation”) with the Secretary of State of the State of Delaware to establish the preferences, voting powers, limitations as to dividends or other distributions, qualifications, terms and conditions of redemption and other terms and conditions of the Company’s Series E Preferred Stock. The following is a summary description of those terms and the general effect of the issuance of the shares of Series E Preferred Stock on the Company’s other classes of registered securities.

The Series E Preferred Stock will, as to dividend rights and rights as to the distribution of assets upon the Company’s liquidation, dissolution or winding-up, rank: (1) senior to all classes or series of Common Stock and to all other equity securities issued by the Company other than equity securities referred to in clauses (2) and (3); (2) on parity with any future class or series of the Company’s equity securities expressly designated as ranking on parity with the Series E Preferred Stock, (3) junior to the Company’s Series A Cumulative Redeemable Perpetual Preferred Stock and its Series C Convertible Preferred Stock; and all equity securities issued by the Company expressly designated as ranking senior to the Series E Preferred Stock; and (4) junior to all the Company’s existing and future indebtedness.

To the extent the shares of Series E Preferred Stock are issued, the Company will pay cumulative cash dividends on the Series E Preferred Stock when, as and if declared by its board of directors (or a duly authorized committee of its board of directors), only out of funds legally available for payment of dividends. Dividends on the Series E Preferred Stock will accrue on the stated amount of $25.00 per share of the Series E Preferred Stock at a rate per annum equal to 10.00% (equivalent to $3.00 per year), payable monthly in arrears.

The Series E Preferred Stock is redeemable by the Company. Holders of shares of the Series E Preferred Stock generally will have no voting rights, except as required by law and as provided in the Certificate of Designation. Voting rights for holders of the Series E Preferred Stock exist primarily with respect to material and adverse changes in the terms of the Series E Preferred Stock and the creation of additional classes or series of preferred stock that rank senior to the Series E Preferred Stock.

F-35

Further, unless the Company has received the approval of two-thirds of the votes entitled to be cast by the holders of Series E Preferred Stock, the Company will not effect any consummation of a binding share exchange or reclassification of the Series E Preferred Stock or a merger or consolidation of the Company with another entity, unless (a) the shares of Series E Preferred Stock remain outstanding or, in the case of a merger or consolidation with respect to which the Company is not the surviving entity, the shares of Series E Preferred Stock are converted into or exchanged for preference securities, or (b) such shares remain outstanding or such preference securities are not materially less favorable than the Series E Preferred Stock immediately prior to such consummation.

Reverse Stock Split

At the June 28, 2024 annual meeting of stockholders, voted upon and approved Proposal 5, an amendment to the Company’s Certificate of Incorporation to effect a Reverse Split with a ratio of not less than one-for-two and not more than one-for-thirty-five at any time prior to June 27, 2025, with the exact ratio to be set at a whole number within this range as determined by the Company’s board of directors in its sole discretion.

On October 24, 2024, the board of directors authorized a special committee of the board to determine the ratio of the reverse split. On November 8, 2024, the special committee approved a one-for-thirty-five reverse split of the Class A common stock that will be effective in the State of Delaware on Friday, November 22, 2024. The Company anticipates that beginning with the opening of trading on Monday, November 25, 2024, the Company’s Class A common stock will trade on the NYSE American on a split-adjusted basis.

Special Dividend of Class B Common Stock

On November 15, 2024, the Company announced that it plans to issue a special one-time dividend (the “Distribution”) of 5.0 million shares of its Class B Common Stock (the “Class B Common Stock”) to all holders of its Class A Common Stock (the “Class A Common Stock”) and the Series C Convertible Preferred Stock on an as-converted basis.

The record date for the Distribution is November 29, 2024. Stockholders who own the Company’s Class A Common Stock at the close of trading on that date will be eligible to receive the shares of Class B Common Stock. Further, the Company has set a payment date of December 16, 2024, subject to adjustment. On the record date, the Company anticipates there will be approximately 1.1 million shares of Class A Common Stock and approximately 5.9 million Class A Common Stock equivalents, based on the current conversion price of the Company’s Series C Convertible Preferred Stock, issued and outstanding (collectively, the “Eligible Capital Stock”), for an aggregate of approximately 7.0 million shares of Eligible Capital Stock. Consequently, the number of shares of Class B Common Stock issuable is approximately 0.71 for each share of Eligible Capital Stock. The foregoing figures reflect the implementation of the one-for-thirty-five reserve stock split that will be effectuated on November 25, 2024.

The Class B Common Stock is identical to the currently outstanding Class A Common Stock, with the exception that each share thereof carries ten times the voting power of a share of Class A Common Stock. The Class B Common Stock is convertible at any time after the payment date into Class A Common Stock on a one-for-one basis.

F-36

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

In this quarterly report on Form 10-Q (the “Quarterly Report”), the “Company,” “Hyperscale Data,” “we,” “us” and “our” refer to Hyperscale Data, Inc., a Delaware corporation. Hyperscale Data is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through our wholly and majority owned subsidiaries and strategic investments, we own and operate a data center at which we mine Bitcoin and offer colocation and hosting services for the emerging artificial intelligence ecosystems and other industries, and provide mission-critical products that support a diverse range of industries, including metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, we own and operate hotels and extend credit to select entrepreneurial businesses through a licensed lending subsidiary.

Recent Events and Developments

On December 14, 2023, we, along with our wholly owned subsidiaries Sentinum, Third Avenue, ACS, BNI Montana, Ault Lending, Ault Aviation and AGREE (collectively with our company, Sentinum, Third Avenue, ACS, BNI Montana, Ault Lending and Ault Aviation, the “Guarantors”) entered into a Loan and Guaranty Agreement (the “2023 Loan Agreement”) with institutional lenders, pursuant to which Ault & Company, Inc. (“Ault & Company”), a related party, borrowed $36 million and issued secured promissory notes to the lenders in the aggregate amount of $38.9 million (collectively, the “Secured Notes”; and the transaction, the “Loan”). The 2023 Loan Agreement was amended as of April 15, 2024.

Pursuant to the 2023 Loan Agreement, the Guarantors, as well as Milton C. Ault, III, our Executive Chairman and the Chief Executive Officer of Ault & Company, agreed to act as guarantors for repayment of the Secured Notes. In addition, certain Guarantors entered into various agreements as collateral in support of the guarantee of the Secured Notes, including (i) a security agreement by Sentinum, pursuant to which Sentinum granted to the Lenders a security interest in (a) 19,226 Antminers (the “Miners”), (b) all of the crypto currency mined or otherwise generated from the Miners and (c) the membership interests of ACS, (ii) a security agreement by the Company, Ault Lending, BNI Montana and AGREE, pursuant to which those entities granted to the lenders a security interest in substantially all of their assets, as well as a pledge of equity interests in Ault Aviation, AGREE, Sentinum, Third Avenue, Ault Energy, LLC, our wholly owned subsidiary (“Ault Energy”), ADTC, Eco Pack, and Circle 8 Holdco, (iii) a mortgage and security agreement by Third Avenue on the real estate property owned by Third Avenue in St. Petersburg, Florida (the “Florida Property”), (iv) a future advance mortgage by ACS on the real estate property owned by ACS in Dowagiac, Michigan (the “Michigan Property”), (v) an aircraft mortgage and security agreement by Ault Aviation on a private aircraft owned by Ault Aviation (the “Aircraft”), and (vi) deposit account control agreements over certain bank accounts held by certain of our subsidiaries.

In addition, pursuant to the 2023 Loan Agreement, we agreed to establish a segregated deposit account (the “Segregated Account”), which would be used as a further guarantee of repayment of the Secured Notes. $3.5 million of cash was paid into the Segregated Account on the closing date. We are required to have the minimum balance in the Segregated Account be not less than $7 million, $15 million, $20 million and $27.5 million on the five-month, nine-month, one-year and two-year anniversaries of the closing date, respectively. In addition, starting on March 31, 2024, we were required to deposit $0.3 million monthly into the Segregated Account, which increases to $0.4 million monthly starting March 31, 2025. Further, we agreed to deposit into the Segregated Account, (i) up to the first $7 million of net proceeds, if any, from the sale of the Hilton Garden Inn in Madison West, the Residence Inn in Madison West, the Courtyard in Madison West, and the Hilton Garden Inn in Rockford; (ii) 50% of cash dividends (on a per dividend basis) received from Circle 8 on or after June 30, 2024; (iii) 30% of the net proceeds from any bond offerings we conduct, which shall not exceed $9 million in the aggregate; and (iv) 25% of the net proceeds from cash flows, collections and revenues from loans or other investments made by Ault Lending (including but not limited to sales of loans or investments, dividends, interest payments and amortization payments), which shall not exceed $5 million in the aggregate. In addition, if we decide to sell certain assets, we further agreed to deposit funds into the Segregated Account from the sale of those assets, including, (i) $15 million from the sale of the Florida Property, (ii) $11 million from the sale of the Aircraft, (iii) $17 million from the sale of the Michigan Property, (iv) $350 per Miner, subject to a de minimis threshold of $1 million, and (v) $10 million from the sale of Circle 8.

On May 15, 2024, the 2023 Loan Agreement was amended to extend the date by which we were required to have a specified minimum balance in the Segregated Account from May 15, 2024 to July 22, 2024 and the specified minimum balance to be in the account as of such date was increased from $7 million to $7.4 million. On July 25, 2024, the 2023 Loan Agreement was further amended to extend the date by which we were required to have a specified minimum balance in the Segregated Account from July 22, 2024 to July 31, 2024 and to require that we deposit $600,000 in the Segregated account on July 25, 2024.

1

On January 12, 2024, pursuant to the approval provided by our stockholders at the annual meeting of stockholders, we filed an Amendment to our Certificate of Incorporation with the State of Delaware to effectuate a reverse stock split of our common stock affecting both the authorized and issued and outstanding number of such shares by a ratio of one-for-twenty-five. The reverse stock split became effective on January 16, 2024. All share amounts in this report have been updated to reflect the reverse stock split.

On January 31, 2024, Ault Lending entered into a securities purchase agreement (the “January 2024 SPA”) with Alzamend Neuro, Inc. (“Alzamend”), pursuant to which Alzamend agreed to sell, in one or more closings, to Ault Lending up to 6,000 shares of Series B convertible preferred stock (the “ALZN Series B Preferred”) and warrants to purchase up to 6.0 million shares of Alzamend common stock (the “ALZN Series B Warrants”) for a total purchase price of up to $6.0 million. On January 31, 2024, Ault Lending purchased 1,220 shares of ALZN Series B Preferred and warrants to purchase 122,000 shares for a total purchase price of $1.22 million. The purchase price was paid by the cancellation of $1.22 million of cash advances made by Ault Lending to Alzamend between November 9, 2023 and January 31, 2023. Each share of ALZN Series B Preferred has a stated value of $1.00 per share and is convertible into a number of shares of Alzamend’s common stock determined by dividing the stated value by $10.00, subject to adjustment in the event of an issuance of Alzamend common stock at a price per share lower than the conversion price, as well as upon customary stock splits, stock dividends, combinations or similar events. The ALZN Series B Warrants are exercisable on the first business day after the six-month anniversary of issuance and have a five-year term, expiring on the fifth anniversary of the initial exercise date. The exercise price of the ALZN Series B Warrants is $12.00, subject to adjustment in the event of an issuance of Alzamend common stock at a price per share lower than the conversion price, as well as upon customary stock splits, stock dividends, combinations or similar events.

On each of March 7, 2024, March 8, 2024, March 18, 2024, March 19, 2024 and April 17, 2024 pursuant to the securities purchase agreement we entered into with Ault & Company, dated as of November 6, 2023 (the “November 2023 SPA”), we sold to Ault & Company 500 shares of Series C Convertible Preferred Stock and warrants to purchase 147,820 shares of common stock to the Purchaser, for a purchase price of $0.5 million.  On August 2, 2024, pursuant to the November 2023 SPA, we sold to Ault & Company 300 shares of Series C Convertible Preferred Stock and warrants to purchase 88,692 shares of common stock to the Purchaser, for a purchase price of $500,000.  As of the date of this report, Ault & Company has purchased an aggregate of 44,300 shares of Series C Convertible Preferred Stock and warrants to purchase an aggregate of 13,096,823 shares of common stock, for an aggregate purchase price of $44.3 million.

On March 11, 2024, we entered into a note purchase agreement with two institutional investors (the “Buyers”) pursuant to which the Buyers purchased from the Company, on March 12, 2024 in a registered direct offering to the Buyers an aggregate of $2.0 million principal face amount convertible promissory notes (the “Notes”). The Notes were sold to the Buyers for an aggregate purchase price of $1.8 million, which reflects an original issue discount of $0.2 million. The Notes accrue interest at the rate of 6% per annum, unless an event of default (as defined in the Notes) occurs, at which time the Notes would accrue interest at 12% per annum. The Notes were subsequently converted in full into shares of common stock at a conversion price of $0.35 per share.

On March 26, 2024, pursuant to the January 2024 SPA, Ault Lending purchased 780 shares of ALZN Series B Preferred Stock and ALZN Series B Warrants to purchase 78,000 shares of Alzamend common, for a purchase price of $0.8 million.  As of the date of this report, Ault Lending has purchased an aggregate of 2,000 shares of ALZN Series B Preferred and ALZN Series B Warrants to purchase an aggregate of 0.2 million shares of Alzamend common stock, for an aggregate purchase price of $2.0 million.

On March 25, 2024 we entered into an amendment to the (i) November 2023 SPA, (ii) the related Certificate of Designation of Preferences, Rights and Limitations of the Series C Preferred Convertible Stock and (iii) the number of Series C Warrants, to provide for (A) an increase in the dollar amount of the Series C Convertible Preferred Stock that Ault & Company may purchase from us from $50.0 million to $75.0 million and (B) extended the date of on which the final closing may occur to June 30, 2024, subject to Ault & Company’s ability to further extended such date for ninety days.

On April 15, 2024, we established a record date for our final distribution of securities of TurnOnGreen. Stockholders as of this date were entitled to 0.83 shares of TurnOnGreen common stock, along with warrants to purchase 0.83 shares of TurnOnGreen common stock (the “TurnOnGreen Securities”) for every share of our common stock they held on the record date. The final distribution was paid on April 29, 2024. We distributed 25.0 million TurnOnGreen Securities in the final distribution.

Effective April 29, 2024, we issued to an accredited investor a term note with a principal face amount of $1.7 million. The note bears interest at the rate of 15% per annum and the note was issued with an original issuance discount. The maturity date of the note was May 17, 2024. The note contained a standard and customary event of default for failure to make payments when due under the note. The purchase price for the note was $1.6 million. The term note was amended on May 16, 2024 to extend the maturity date to June 15, 2024 and further amended on June 18, 2024 to extend the maturity date to July 31, 2024.

2

On June 4, 2024, we entered into a Loan Agreement (the “2024 Credit Agreement”) with OREE Lending Company, LLC and Helios Funds LLC, as lenders. The 2024 Credit Agreement provides for an unsecured, non-revolving credit facility in an aggregate draw limit of up to $20.0 million, provided, however, that at no point will we be allowed to have outstanding loans under the 2024 Credit Agreement in a principal amount received of more than $2.0 million. The lenders made a loan to the Company of $1.5 million on June 4, 2024. The loans under the 2024 Credit Agreement are due December 4, 2024, provided, however, that if on such date, we have executed an equity line of credit agreement relating to the sale of shares of the Series D Preferred Stock, which was executed on June 20, 2024, have an effective registration statement relating thereto and are not currently in default under such agreement, then the maturity date shall be automatically extended until June 4, 2025. The lenders are not obligated to make any further loans under the 2024 Credit Agreement after the maturity date described above. Loans under the 2024 Credit Agreement will be evidenced by promissory notes (the “Promissory Notes”) and will include the addition of an original issuance discount of 20% to the amount of each loan and all loans will bear interest at the rate of 15.0% per annum and may be repaid at any time without penalty or premium.

On June 23, 2024, Ault Disruptive entered into an Agreement and Plan of Merger (as it may be amended, supplemented or otherwise modified from time to time, the “Merger Agreement”) by and among Ault Disruptive, ADRT Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of Ault Disruptive (“Merger Sub”), and Gresham Worldwide, Inc., a California corporation (“GIGA”). The transactions contemplated by the Merger Agreement are referred to herein as the “Business Combination.”

Pursuant to the Merger Agreement and subject to the terms and conditions set forth therein, the Merger Sub was intended to merge with and into GIGA (the “Merger”), with GIGA being the surviving corporation and thereby becoming a wholly owned subsidiary of Ault Disruptive. Upon the Closing of the Business Combination (the “Effective Time”), it was expected that Ault Disruptive would be renamed Gresham Worldwide, Inc., and thereafter remain listed on the NYSE American under a new ticker symbol, “GWWI.”

However, on August 14, 2024, GIGA filed a petition for reorganization under Chapter 11 of the bankruptcy laws. Consequently, Ault Disruptive was required to terminate the Merger Agreement, which it did on August 15, 2024.  Ault Disruptive does not presently intend to enter into a new agreement and plan of merger with a third party.

On September 27, 2024, Ault Disruptive announced that it will redeem all of its outstanding shares of common stock which occurred as of the close of business on October 11, 2024, because Ault Disruptive would not consummate an initial business combination within the time period required by its Amended and Restated Certificate of Incorporation, as amended. During the nine months ended September 30, 2024, shares of Ault Disruptive common stock were redeemed for an aggregate redemption amount of $1.5 million.

On October 11, 2024, all remaining shares of Ault Disruptive common stock were redeemed for a redemption amount of $0.8 million.

On July 18, 2024, we entered into a note purchase agreement with an institutional investor pursuant to which the institutional investor agreed to acquire, and we agreed to issue and sell in a registered direct offering to the institutional investor, a $5.4 million 10% OID Convertible Promissory Note (the “OID Note”). The OID Note was sold to the institutional investor for a purchase price of $4.9 million, an original issue discount of $0.5 million. The OID Note will accrue interest at the rate of 15% per annum, unless an event of default occurs, at which time the OID Note would accrue interest at 18% per annum. The OID Note will mature on October 19, 2024. In addition, the OID Note is convertible at any time after NYSE American approval of a Supplemental Listing Application into shares of our common stock at a conversion price of $0.22 per share (the “OID Conversion Price”), subject to adjustment. However, we may not issue shares of common stock upon conversion of the OID Note to the extent such issuance would result in an aggregate number of shares of common stock exceeding 19.99% of the total shares of common stock issued and outstanding as of July 18, 2024, in accordance with the rules and regulations of the New York Stock Exchange (the “NYSE Limit”) unless we first obtain stockholder approval (“Stockholder Approval”).

If, on September 2, 2024 (the “Adjustment Date”), the closing bid price of our common stock is lower than the OID Conversion Price, then the OID Conversion Price will be reduced to 85% of the closing bid price of the common stock on September 2, 2024. However, if after July 19, 2024, and prior to the date on which Stockholder Approval is obtained, the holder of the OID Note has converted a portion of the outstanding amount under the OID Note into shares of our common stock in an aggregate amount equal to the NYSE Limit, then the Adjustment Date will be extended by such number of days between such date and the date on which we obtain Stockholder Approval.

On September 17, 2024, the loan and guarantee agreement, dated as of December 14, 2023, as amended, pursuant to which we have guaranteed financial obligations of Ault & Company borrowings, was amended regarding our obligations to fund the restricted cash Segregated Account.

3

We agreed to deposit in the Segregated Account: (i) $0.4 million monthly commencing on September 30, 2024 and ending on February 28, 2025; and (ii) $0.5 million monthly commencing on March 31, 2025 and ending on the earlier of the term loan maturity date, prepayment of the term loan in full or the date on which the balance of the Segregated Account exceeds 110% of the outstanding balance of the term loan. As of September 30, 2024 we had deposited $6.5 million in the Segregated Account. In October 2024, we deposited an additional $0.4 million in the Segregated Account.

On August 2, 2024, pursuant to the November 2023 SPA we entered into with Ault & Company, we sold 300 shares of Series C Convertible Preferred Stock and warrants to purchase 0.1 million shares of common stock to Ault & Company, for a purchase price of $0.3 million.

In October and November 2024, we sold to Ault & Company an aggregate of 2,230 shares of Series C Preferred Stock and Warrants to purchase 0.7 million shares of Class A common stock, for a total purchase price of $2.2 million.

On November 11, 2024 we filed a Certificate of Designation, Rights and Preferences (the “Certificate of Designation”) with the Secretary of State of the State of Delaware to establish the preferences, voting powers, limitations as to dividends or other distributions, qualifications, terms and conditions of redemption and other terms and conditions of our Series E Preferred Stock. The following is a summary description of those terms and the general effect of the issuance of the shares of Series E Preferred Stock on our other classes of registered securities.

The Series E Preferred Stock will, as to dividend rights and rights as to the distribution of assets upon our liquidation, dissolution or winding-up, rank: (1) senior to all classes or series of Common Stock and to all other equity securities issued by us other than equity securities referred to in clauses (2) and (3); (2) on parity with any future class or series of our equity securities expressly designated as ranking on parity with the Series E Preferred Stock, (3) junior to our Series A Cumulative Redeemable Perpetual Preferred Stock and its Series C Convertible Preferred Stock; and all equity securities issued by us expressly designated as ranking senior to the Series E Preferred Stock; and (4) junior to all our existing and future indebtedness.

To the extent the shares of Series E Preferred Stock are issued, we will pay cumulative cash dividends on the Series E Preferred Stock when, as and if declared by its board of directors (or a duly authorized committee of its board of directors), only out of funds legally available for payment of dividends. Dividends on the Series E Preferred Stock will accrue on the stated amount of $25.00 per share of the Series E Preferred Stock at a rate per annum equal to 10.00% (equivalent to $3.00 per year), payable monthly in arrears.

The Series E Preferred Stock is redeemable by us. Holders of shares of the Series E Preferred Stock generally will have no voting rights, except as required by law and as provided in the Certificate of Designation. Voting rights for holders of the Series E Preferred Stock exist primarily with respect to material and adverse changes in the terms of the Series E Preferred Stock and the creation of additional classes or series of preferred stock that rank senior to the Series E Preferred Stock.

Further, unless we have received the approval of two-thirds of the votes entitled to be cast by the holders of Series E Preferred Stock, we will not effect any consummation of a binding share exchange or reclassification of the Series E Preferred Stock or a merger or consolidation of us with another entity, unless (a) the shares of Series E Preferred Stock remain outstanding or, in the case of a merger or consolidation with respect to which we are not the surviving entity, the shares of Series E Preferred Stock are converted into or exchanged for preference securities, or (b) such shares remain outstanding or such preference securities are not materially less favorable than the Series E Preferred Stock immediately prior to such consummation.

At the June 28, 2024 annual meeting of stockholders, voted upon and approved Proposal 5, an amendment to our Certificate of Incorporation to effect a Reverse Split with a ratio of not less than one-for-two and not more than one-for-thirty-five at any time prior to June 27, 2025, with the exact ratio to be set at a whole number within this range as determined by our board of directors in its sole discretion.

On October 24, 2024, the board of directors authorized a special committee of the board to determine the ratio of the reverse split. On November 8, 2024, the special committee approved a one-for-thirty-five reverse split of the Class A common stock that will be effective in the State of Delaware on Friday, November 22, 2024. We anticipate that beginning with the opening of trading on Monday, November 25, 2024, our Class A common stock will trade on the NYSE American on a split-adjusted basis.

On November 15, 2024, we announced that we plan to issue a special one-time dividend (the “Distribution”) of 5.0 million shares of our Class B Common Stock (the “Class B Common Stock”) to all holders of our Class A Common Stock (the “Class A Common Stock”) and the Series C Convertible Preferred Stock on an as-converted basis.

The record date for the Distribution is November 29, 2024. Stockholders who own our Class A Common Stock at the close of trading on that date will be eligible to receive the shares of Class B Common Stock. Further, we have set a payment date of December 16, 2024, subject to adjustment. On the record date, we anticipate there will be approximately 1.1 million shares of Class A Common Stock and approximately 5.9 million Class A Common Stock equivalents, based on the current conversion price of our Series C Convertible Preferred Stock, issued and outstanding (collectively, the “Eligible Capital Stock”), for an aggregate of approximately 7.0 million shares of Eligible Capital Stock. Consequently, the number of shares of Class B Common Stock issuable is approximately 0.71 for each share of Eligible Capital Stock. The foregoing figures reflect the implementation of the one-for-thirty-five reserve stock split that will be effectuated on November 25, 2024.

The Class B Common Stock is identical to the currently outstanding Class A Common Stock, with the exception that each share thereof carries ten times the voting power of a share of Class A Common Stock. The Class B Common Stock is convertible at any time after the payment date into Class A Common Stock on a one-for-one basis.

4

Presentation of GIGA as Discontinued Operations

On August 14, 2024, our majority owned subsidiary, Gresham Worldwide, Inc. (“GIGA”), filed a petition for reorganization under Chapter 11 of the bankruptcy laws. The filing placed GIGA under the control of the bankruptcy court, which oversees its reorganization and restructuring process. We assessed the inherent uncertainties associated with the outcome of the Chapter 11 reorganization process and the anticipated duration thereof, and concluded that it was appropriate to deconsolidate GIGA and its subsidiaries effective on the petition date. We recognized a gain on deconsolidation of GIGA of $2.0 million included in net gain (loss) from discontinued operations.

In connection with the Chapter 11 reorganization process, we concluded that the operations of GIGA met the criteria for discontinued operations as this strategic shift that will have a significant effect on our operations and financial results. As a result, we have presented the results of operations, cash flows and financial position of GIGA as discontinued operations in the accompanying consolidated financial statements and notes for all periods presented.

Change in Plan of Sales of AGREE Hotel Properties

On April 30, 2024, we had a change in plan of sale for our four hotels owned and operated by AGREE. As a result, as of April 30, 2024, the assets no longer met the held for sale criteria and were required to be reclassified as held and used at the lower of adjusted carrying value or the fair value at the date of the not to sell.

For presentation purposes, the assets and liabilities previously held for sale as of December 31, 2023, were reclassified in the December 31, 2023 balance sheet in the accompanying financial statements back to their original asset and liability groups at their previous carrying values. In connection with this change in plan of sale, we recorded a loss on impairment of property and equipment related to the real estate assets of AGREE of $8.0 million during the nine months ended September 30, 2024.

General

As a holding company, our business objective is to increase stockholder value through developing and growing our subsidiaries. Under the strategy we have adopted, we are focused on managing and financially supporting our existing subsidiaries and partner companies, with the goal of pursuing monetization opportunities and maximizing the value returned to stockholders. We have, are and will consider initiatives including, among others: public offerings, the sale of individual partner companies, the sale of certain or all partner company interests in secondary market transactions, or a combination thereof, as well as other opportunities to maximize stockholder value. We anticipate returning value to stockholders after satisfying our debt obligations and working capital needs.

From time to time, we engage in discussions with other companies interested in our subsidiaries or partner companies, either in response to inquiries or as part of a process we initiate. To the extent we believe that a subsidiary or partner company’s further growth and development can best be supported by a different ownership structure or if we otherwise believe it is in our stockholders’ best interests, we will seek to sell all or a portion of our position in the subsidiary or partner company. These sales may take the form of privately negotiated sales of stock or assets, mergers and acquisitions, public offerings of the subsidiary or partner company’s securities and, in the case of publicly traded partner companies, sales of their securities in the open market. Our plans may include taking subsidiaries or partner companies public through rights offerings and directed share subscription programs. We will continue to consider these (or similar) initiatives and the sale of certain subsidiary or partner company interests in secondary market transactions to maximize value for our stockholders.

In recent years, we have provided capital and relevant expertise to fuel the growth of businesses in metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. We have provided capital to subsidiaries as well as partner companies in which we have an equity interest or may be actively involved, influencing development through board representation and management support.

We are a Delaware corporation with our corporate office located at 11411 Southern Highlands Pkwy, Suite 240, Las Vegas, NV 89141. Our phone number is 949-444-5464 and our website address is www.hyperscaledata.com.

5

Results of Operations

Results of Operations for the Three Months Ended September 30, 2024 and 2023

The following table summarizes the results of our operations for the three months ended September 30, 2024 and 2023.

	For the Three Months Ended September 30,
	2024			2023
Revenue	$	2,215,000		$	17,554,000
Revenue, crypto assets mining		5,264,000			7,558,000
Revenue, hotel and real estate operations		5,680,000			5,737,000
Revenue, crane operations		12,327,000			12,490,000
Revenue, lending and trading activities		5,575,000			(249,000	)
Total revenue		31,061,000			43,090,000
Cost of revenue, products		1,178,000			13,209,000
Cost of revenue, crypto assets mining		9,388,000			10,228,000
Cost of revenue, hotel and real estate operations		3,498,000			3,279,000
Cost of revenue, crane operations		7,957,000			7,642,000
Cost of revenue, lending and trading activities		495,000			-
Total cost of revenue		22,516,000			34,358,000
Gross profit		8,545,000			8,732,000
Operating expenses
Research and development		4,598,000			1,097,000
Selling and marketing		4,755,000			7,638,000
General and administrative		11,996,000			16,339,000
Impairment of property and equipment		11,791,000			3,895,000
Impairment of mined crypto assets		-			113,000
Total operating expenses		33,140,000			29,082,000
Loss from operations		(24,595,000	)		(20,350,000	)
Other income (expense):
Interest and other income		766,000			278,000
Interest expense		(7,766,000	)		(6,137,000	)
Loss on extinguishment of debt		(240,000	)		(1,546,000	)
Change in fair value of warrant liability		-			499,000
Gain (loss) on the sale of fixed assets		32,000			(32,000	)
Total other expense, net		(7,208,000	)		(6,938,000	)
Loss before income taxes		(31,803,000	)		(27,288,000	)
Income tax provision (benefit)		52,000			(565,000	)
Net loss from continuing operations		(31,855,000	)		(26,723,000	)
Net gain (loss) from discontinued operations		2,216,000			(1,359,000	)
Net loss		(29,639,000	)		(28,082,000	)
Net loss attributable to non-controlling interest		4,090,000			6,311,000
Net loss attributable to Hyperscale Data, Inc.		(25,549,000	)		(21,771,000	)
Preferred dividends		(1,326,000	)		(412,000	)
Net loss available to common stockholders	$	(26,875,000	)	$	(22,183,000	)
Comprehensive loss
Net loss available to common stockholders	$	(26,875,000	)	$	(22,183,000	)
Other comprehensive income (loss)
Foreign currency translation adjustment		(221,000	)		(282,000	)
Other comprehensive income		(221,000	)		(282,000	)
Total comprehensive loss	$	(27,096,000	)	$	(22,465,000	)

6

Revenues

Revenues by segment for the three months ended September 30, 2024 and 2023 were as follows:

	For the Three Months Ended September 30,					Increase
	2024		2023			(Decrease)			%
Sentinum
Revenue, crypto assets mining	$	5,264,000	$	7,558,000		$	(2,294,000	)		-30	%
Revenue, commercial real estate leases		168,000		333,000			(165,000	)		-50	%
Energy
Revenue, crane operations		12,327,000		12,490,000			(163,000	)		-1	%
Other		26,000		439,000			(413,000	)		-94	%
Fintech
Revenue, lending and trading activities		5,575,000		(249,000	)		5,824,000			-2339	%
AGREE		5,512,000		5,404,000			108,000			2	%
SMC		-		15,931,000			(15,931,000	)		-100	%
TurnOnGreen		1,290,000		1,166,000			124,000			11	%
ROI		54,000		18,000			36,000			200	%
Other		845,000		-			845,000			-
Total revenue	$	31,061,000	$	43,090,000		$	(12,029,000	)		-28	%

Sentinum

Revenues from Sentinum’s crypto assets mining operations decreased by $2.2 million, primarily due to an estimated $5.3 million unfavorable impact from the April 19, 2024 Bitcoin halving event on the Bitcoin network, coupled with a 76% increase in the average Bitcoin mining difficulty level for the three months ended September 30, 2024, compared to the corresponding period in 2023. This decrease was partially offset by a 128% increase in the average Bitcoin price and a $0.3 million reduction in revenue from Sentinum’s crypto mining equipment hosted at third-party facilities for the three months ended September 30, 2024, compared to the corresponding period in 2023.

Halving is a key part of the Bitcoin protocol and serves to control the overall supply and reduce the risk of inflation in crypto assets using a proof-of-work consensus algorithm. The Bitcoin halving event reduced the block subsidy by half from 6.25 to 3.125 Bitcoin. Transaction fees were not directly impacted by the halving.

Energy

Energy revenues from Circle 8’s crane operations decreased by $0.2 million, or 1%, for the three months ended September 30, 2024, remaining essentially flat compared to the prior period.

Fintech

Revenues from our lending and trading activities were $5.6 million for the three months ended September 30, 2024, driven primarily by $2.6 million in realized gains from trading activities, $2.6 million in fee income, and $0.6 million in unrealized gains on investment positions. In comparison, revenues from lending and trading activities for the same period in 2023 were negative $0.2 million, due to a $3.0 million unrealized loss from our investment in Alzamend and $0.8 million in net unrealized losses on investments in marketable equity securities, partially offset by $3.0 million in realized gains from trading activities and $0.5 million dividend income.

Revenues from our trading activities for the three months ended September 30, 2024 included net gains on equity securities, including unrealized gains and losses from market price changes. These gains and losses have caused, and will continue to cause, significant volatility in our periodic earnings.

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SMC

Due to the significant change in our ownership and voting rights, we determined that we no longer met the criteria of the primary beneficiary and, accordingly, we deconsolidated SMC as of November 20, 2023. SMC revenues were $0 for the three months ended September 30, 2024, a decrease of $15.9 million compared to the corresponding period in 2023.

TurnOnGreen

TurnOnGreen's revenues increased by $0.1 million for the three months ended September 30, 2024, compared to the corresponding period in 2023. This rise was primarily due to higher sales from a single, higher-margin customer in the defense industry during the three months ended September 30, 2024.

Gross Margins

Gross margins rose to 28% for the three months ended September 30, 2024, compared to 20% for the same period in 2023. This increase was influenced by our lending and trading activities, which contributed favorably in 2024 but had a negative impact in 2023. In both periods, gross margins were adversely affected by negative margins from our crypto assets mining operations. Excluding the impacts of both our lending and trading activities and our crypto assets mining operations, adjusted gross margins for the three months ended September 30, 2024, and 2023 would have been 38% and 33%, respectively. Gross margins improved due to the deconsolidation of the lower margin of SMC business.

Research and Development

Research and development expenses increased by $3.5 million for the three months ended September 30, 2024, due to increased expenditures related to development work on ROI’s BitNile gaming platform.

Selling and Marketing

Selling and marketing expenses were $4.8 million for the three months ended September 30, 2024, compared to $7.6 million for the three months ended September 30, 2023, a decrease of $2.9 million, or 38%. The decrease was primarily the result of a $2.0 million decrease in sales and marketing expenses at ROI primarily due to lower advertising and promotion costs and a $1.2 million decrease in sales and marketing expenses from SMC due to the deconsolidation of SMC as of November 20, 2023.

General and Administrative

General and administrative expenses were $12.0 million for the three months ended September 30, 2024, compared to $16.3 million for the three months ended September 30, 2023, a decrease of $4.3 million, or 27%. General and administrative expenses decreased from the comparative prior period, mainly due to the following:

· $2.8 million decrease in general and administrative expenses from SMC due to the deconsolidation of SMC as of November 20, 2023;

· $1.4 million lower professional fees; and

· $1.4 million lower salaries and benefits.

Partially offset by:

· $1.0 million higher operating expenses at AGREE; and

· $0.9 million higher operating expenses at Circle 8.

Impairment of Property and Equipment

During the three months ended September 30, 2024, due to increases in the Bitcoin mining difficulty level, which compounded the continued impact of the Bitcoin halving event, we concluded that indicated that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of our miners to be less than their net carrying value as of September 30, 2024, and an impairment charge of $10.5 million was recognized, decreasing the net carrying value of our crypto assets mining equipment to their estimated fair value.

In addition, we recorded $1.2 million in impairment charges related to real estate assets of AGREE during the three months ended September 30, 2024.

Other Income (Expense), Net

Other expense, net was $7.2 million for the three months ended September 30, 2024, compared to other expense, net of $6.9 million for the three months ended September 30, 2023.

Interest and other income was $0.8 million for the three months ended September 30, 2024, compared to $0.3 million for the three months ended September 30, 2023.

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Interest expense was $7.8 million for the three months ended September 30, 2024, compared to $6.1 million for the three months ended September 30, 2023. Interest expense for the three months ended September 30, 2024 included contractual interest of $5.4 million, amortization of debt discount of $1.4 million and forbearance and extension fees of $1.1 million. Interest expense for the three months ended September 30, 2023 included contractual interest of $5.0 million, amortization of debt discount of $0.6 million and forbearance and extension fees of $0.5 million.

During the three months ended September 30, 2024, an investor converted $0.7 million of a convertible note into 3.0 million shares of Class A common stock that had a fair value of $0.9 million at the time of conversion and we recognized a $0.2 million loss on extinguishment of debt.

Income Tax Provision (Benefit)

The income tax provision (benefit) was $52,000 and ($0.6) million during the three months ended September 30, 2024 and 2023, respectively. The effective income tax provision (benefit) rate was 0.2% and (2.1%) for the three months ended September 30, 2024 and 2023, respectively. The lower income tax provision during the three months ended September 30, 2024 related primarily to lower dividend income compared to the prior year period as a result of the decline in cash and marketable securities held in the trust account as a result of redemptions of Ault Disruptive common stock subject to possible redemption.

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Results of Operations for the Nine Months Ended September 30, 2024 and 2023

The following table summarizes the results of our operations for the nine months ended September 30, 2024 and 2023.

	For the Nine Months Ended September 30,
	2024			2023
Revenue	$	5,785,000		$	25,754,000
Revenue, crypto assets mining		25,201,000			23,273,000
Revenue, hotel and real estate operations		14,377,000			13,148,000
Revenue, crane operations		36,945,000			37,726,000
Revenue, lending and trading activities		4,911,000			4,337,000
Total revenue		87,219,000			104,238,000
Cost of revenue, products		3,470,000			19,213,000
Cost of revenue, crypto assets mining		26,971,000			28,057,000
Cost of revenue, hotel and real estate operations		9,633,000			9,086,000
Cost of revenue, crane operations		23,704,000			22,671,000
Cost of revenue, lending and trading activities		495,000			1,180,000
Total cost of revenue		64,273,000			80,207,000
Gross profit		22,946,000			24,031,000
Operating expenses
Research and development		4,811,000			3,304,000
Selling and marketing		12,528,000			24,990,000
General and administrative		33,730,000			53,051,000
Impairment of property and equipment		19,746,000			3,895,000
Impairment of goodwill and intangible assets		-			35,570,000
Impairment of mined crypto assets		-			376,000
Total operating expenses		70,815,000			121,186,000
Loss from operations		(47,869,000	)		(97,155,000	)
Other income (expense):
Interest and other income		2,118,000			3,612,000
Interest expense		(18,825,000	)		(35,180,000	)
Gain on conversion of investment in equity securities to marketable equity securities		17,900,000			-
Gain (loss) on extinguishment of debt		502,000			(1,700,000	)
Loss from investment in unconsolidated entity		(1,958,000	)		-
Impairment of equity securities		(6,266,000	)		(9,555,000	)
Provision for loan losses, related party		(3,068,000	)		-
Change in fair value of warrant liability		-			2,655,000
Gain on the sale of fixed assets		64,000			2,728,000
Total other expense, net		(9,533,000	)		(37,440,000	)
Loss before income taxes		(57,402,000	)		(134,595,000	)
Income tax provision		47,000			551,000
Net loss from continuing operations		(57,449,000	)		(135,146,000	)
Net loss from discontinued operations		(779,000	)		(4,658,000	)
Net loss		(58,228,000	)		(139,804,000	)
Net loss attributable to non-controlling interest		2,469,000			8,704,000
Net loss attributable to Hyperscale Data, Inc.		(55,759,000	)		(131,100,000	)
Preferred dividends		(3,894,000	)		(963,000	)
Net loss available to common stockholders	$	(59,653,000	)	$	(132,063,000	)
Comprehensive loss
Net loss available to common stockholders	$	(59,653,000	)	$	(132,063,000	)
Other comprehensive income (loss)
Foreign currency translation adjustment		(621,000	)		(702,000	)
Other comprehensive income		(621,000	)		(702,000	)
Total comprehensive loss	$	(60,274,000	)	$	(132,765,000	)

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Revenues

Revenues by segment for the nine months ended September 30, 2024 and 2023 were as follows:

	For the Nine Months Ended September 30,				Increase
	2024		2023		(Decrease)			%
Sentinum
Revenue, crypto assets mining	$	25,201,000	$	23,273,000	$	1,928,000			8	%
Revenue, commercial real estate leases		725,000		1,116,000		(391,000	)		-35	%
Energy
Revenue, crane operations		36,945,000		37,726,000		(781,000	)		-2	%
Other		94,000		987,000		(893,000	)		-90	%
Fintech
Revenue, lending and trading activities		4,911,000		4,337,000		574,000			13	%
AGREE		13,652,000		12,032,000		1,620,000			13	%
SMC		-		21,939,000		(21,939,000	)		-100	%
TurnOnGreen		3,751,000		2,765,000		986,000			36	%
ROI		121,000		63,000		58,000			92	%
Other		1,819,000		-		1,819,000			-
Total revenue	$	87,219,000	$	104,238,000	$	(17,019,000	)		-16	%

Sentinum

Revenues from Sentinum’s crypto assets mining operations increased $4.2 million due primarily to a $3.5 million increase in revenue from Sentinum crypto mining equipment hosted at third-party facilities and a 128% increase in the average Bitcoin price, partially offset by an 76% increase in the average Bitcoin mining difficulty level for the nine months ended September 30, 2024, compared to the corresponding period in 2023, and an $9.7 million unfavorable impact from the April 19, 2024 Bitcoin halving event occurred on the Bitcoin network.

Energy

Energy revenues from Circle 8’s crane operations decreased by $0.8 million, or 2%, for the nine months ended September 30, 2024, remaining essentially flat compared to the prior period. This decrease was primarily due to lower utilization of the crane fleet, as five cranes were out of service during the three months ended June 30, 2024.

Fintech

Revenues from our lending and trading activities were $4.9 million for the nine months ended September 30, 2024, driven primarily by $2.5 million in realized gains from trading activities and $2.7 million in fee income, partially offset by a $0.6 million unrealized loss from our investment in Alzamend. In comparison, revenues from lending and trading activities for the same period in 2023 were $4.3 million, driven primarily by $8.5 million in net realized and unrealized gains on investments in marketable equity securities and $1.6 million in dividend income, partially offset by a $3.6 million unrealized loss from our investment in Alzamend and a $2.0 million impairment for equity securities that do not have readily determinable fair values related to Fintech lending operations.

Revenues from our trading activities for the nine months ended September 30, 2024 included net gains on equity securities, including unrealized gains and losses from market price changes. These gains and losses have caused, and will continue to cause, significant volatility in our periodic earnings.

SMC

Due to the significant change in our ownership and voting rights, we determined that we no longer met the criteria of the primary beneficiary and, accordingly, we deconsolidated SMC as of November 20, 2023. SMC revenues were $0 for the nine months ended September 30, 2024, a decrease of $21.9 million compared to the corresponding period in 2023.

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TurnOnGreen

TurnOnGreen's revenues increased by $1.0 million for the nine months ended September 30, 2024, compared to the corresponding period in 2023. This rise was primarily due to higher sales from a single, higher-margin customer in the defense industry during the nine months ended September 30, 2024.

Gross Margins

Gross margins rose to 26% for the nine months ended September 30, 2024, compared to 23% for the same period in 2023. This increase was influenced by our lending and trading activities, which contributed favorably to our gross margins for the nine months ended September 30, 2024 and 2023. In both periods, gross margins were adversely affected by negative margins from our crypto assets mining operations. Excluding the impacts of both our lending and trading activities and our crypto assets mining operations, adjusted gross margins for the nine months ended September 30, 2024, and 2023 would have been 36% and 33%, respectively. Gross margins improved due to the deconsolidation of the lower margin of SMC business.

Research and Development

Research and development expenses increased by $1.5 million for the nine months ended September 30, 2024, due to increased expenditures primarily related to development work on ROI’s BitNile gaming platform.

Selling and Marketing

Selling and marketing expenses were $12.5 million for the nine months ended September 30, 2024, compared to $25.0 million for the nine months ended September 30, 2023, a decrease of $12.5 million, or 48%. The decrease was primarily the result of an $10.2 million decrease in sales and marketing expenses at ROI primarily due to lower advertising and promotion costs and a $2.4 million decrease in sales and marketing expenses from SMC due to the deconsolidation of SMC as of November 20, 2023.

General and Administrative

General and administrative expenses were $33.7 million for the nine months ended September 30, 2024, compared to $53.1 million for the nine months ended September 30, 2023, a decrease of $19.3 million, or 36%. General and administrative expenses decreased from the comparative prior period, mainly due to the following:

· $7.9 million decrease in general and administrative expenses from SMC due to the deconsolidation of SMC as of November 20, 2023;

· $4.6 million lower stock compensation expense;

· $4.0 million lower salaries and benefits;

· $1.2 million lower professional fees; and

· $1.2 million lower performance bonus related to realized gains on trading activities.

Impairment of Property and Equipment

During the three months ended September 30, 2024, due to increases in the Bitcoin mining difficulty level, which compounded the continued impact of the Bitcoin halving event, we concluded that indicated that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of our miners to be less than their net carrying value as of September 30, 2024, and an impairment charge of $10.5 million was recognized, decreasing the net carrying value of our crypto assets mining equipment to their estimated fair value.

In addition, we recorded $9.2 million in impairment charges related to real estate assets of AGREE during the nine months ended September 30, 2024.

Other Income (Expense), Net

Other expense, net was $9.5 million for the nine months ended September 30, 2024, compared to other expense, net of $37.4 million for the nine months ended September 30, 2023.

Interest and other income was $2.1 million for the nine months ended September 30, 2024, compared to $3.6 million for the nine months ended September 30, 2023. The decrease in interest and other income is primarily due to the decline in Ault Disruptive’s interest income as a result of the decline in cash and marketable securities held in the trust account as a result of redemptions of Ault Disruptive common stock subject to possible redemption.

Interest expense was $18.8 million for the nine months ended September 30, 2024, compared to $35.2 million for the nine months ended September 30, 2023. Interest expense for the nine months ended September 30, 2024 included contractual interest of $10.7 million, amortization of debt discount of $4.8 million, and forbearance and extension fees of $3.3 million. Interest expense for the nine months ended September 30, 2023 included amortization of debt discount of $18.2 million, contractual interest of $9.6 million and forbearance and extension fees of $7.3 million.

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Gain on conversion of investment in equity securities to marketable equity securities of $17.9 million relates to ROI conversion of White River common stock. During the nine months ended September 30, 2024, ROI transferred 14.5 million shares of White River common stock with a fair value of $19.2 million at the date of transfer. In conjunction with the transfers, ROI converted a portion of their White River’s Series A Convertible Preferred Stock into common stock and recorded a noncash $17.9 million gain on conversion.

During the three months ended March 31, 2024, ROI converted $2.3 million of ROI senior secured convertible notes that had a fair value of $0.9 million at the time of conversion and recognized a $1.4 million gain on extinguishment of debt. During the three months ended September 30, 2024, holders of our convertible notes converted $2.0 million of convertible notes that had a fair value of $2.7 million at the time of conversion and recognized a $0.7 million loss on extinguishment of debt.

During the three months ended September 30, 2024, an investor converted $0.7 million of a convertible note into 3.0 million shares of Class A common stock that had a fair value of $0.9 million at the time of conversion and we recognized a $0.2 million loss on extinguishment of debt.

Loss from investment in unconsolidated entity was $2.0 million for the nine months ended September 30, 2024, representing our share of losses from our equity method investment in SMC.

For the nine months ended September 30, 2024, the provision for loan losses on the related party note receivable from Ault & Company was $3.1 million, due to uncertainties regarding collection. This compares to no provision for the same period in 2023.

Cumulative downward adjustments for impairments for our equity securities without readily determinable fair values held at were $6.3 million for the nine months ended September 30, 2024.

Income Tax Provision

The income tax provision was $47,000 and $0.5 million during the nine months ended September 30, 2024 and 2023, respectively. The effective income tax provision rate was 0.1% and 0.4% for the nine months ended September 30, 2024 and 2023, respectively. The lower income tax provision during the nine months ended September 30, 2024 related primarily to lower dividend income compared to the prior year period as a result of the decline in cash and marketable securities held in the trust account as a result of redemptions of Ault Disruptive common stock subject to possible redemption.

Liquidity and Capital Resources

On September 30, 2024, we had cash and cash equivalents of $7.2 million (excluding restricted cash of $8.3 million), compared to cash and cash equivalents of $6.1 million (excluding restricted cash of $5.0 million) at December 31, 2023. The increase in cash and cash equivalents was primarily due to cash provided by financing activities related to the sale of common and preferred stock, as well as proceeds from notes payable and convertible notes, partially offset by the payment of debt, purchases of property and equipment and cash used in operating activities.

Net cash used in operating activities totaled $10.2 million for the nine months ended September 30, 2024, compared to $2.2 million for the nine months ended September 30, 2023. Cash used in operating activities for the nine months ended September 30, 2024 included $20.0 million proceeds from the sale of crypto assets from our Sentinum crypto assets mining operations, offset by operating losses and changes in working capital. Net cash used in operating activities for the nine months ended September 30, 2024 included $6.4 million cash used in operating activities from discontinued operations.

Net cash used in investing activities was $11.8 million for the nine months ended September 30, 2024, compared to $22.9 million for the nine months ended September 30, 2023. Net cash used in investing activities for the nine months ended September 30, 2024 was primarily related to $4.8 million capital expenditures. Net cash used in investing activities for the nine months ended September 30, 2024 included $3.8 million cash used in investing activities from discontinued operations.

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Net cash provided by financing activities was $22.6 million for the nine months ended September 30, 2024, compared to $23.8 million for the nine months ended September 30, 2023, and primarily reflects the following transactions:

· During the period between January 1, 2024 through March 13, 2024, we sold an aggregate of 25.6 million shares of common stock pursuant to the At-The-Market issuance sales agreement, as amended, entered into with Ascendiant Capital Markets, LLC in 2023 (the “2023 Common ATM Offering”) for gross proceeds of $14.6 million and effective March 14, 2024, the 2023 Common ATM Offering was terminated;

· $49.3 million proceeds from notes payable, partially offset by $47.0 million payments on notes payable;

· $6.7 million proceeds from convertible notes payable, partially offset by $1.3 million payments on notes payable;

· $2.8 million proceeds from sales of Series C preferred stock, related party;

· $1.8 million proceeds from subsidiaries’ sale of stock to non-controlling interests;

· $3.9 million payments of preferred dividends; and

· $1.9 million payments on notes payable, related party.

Net cash provided by financing activities for the nine months ended September 30, 2024 included $2.6 million cash provided by financing activities from discontinued operations.

Financing Transactions Subsequent to September 30, 2024

In October 2024, we sold to Ault & Company an aggregate of 1,400 shares of Series C Preferred Stock and Warrants to purchase 0.4 million shares of Class A common stock, for a total purchase price of $1.4 million.

Critical Accounting Estimates

There have been no material changes to our critical accounting estimates previously disclosed in the 2023 Annual Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable for a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We have established disclosure controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to management, including the principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

Our principal executive officer and principal financial officer, with the assistance of other members of the Company’s management, have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report. Based upon our evaluation, each of our principal executive officer and principal financial officer has concluded that the Company’s internal control over financial reporting was not effective as of the end of the period covered by this Quarterly Report because the Company has not yet completed its remediation of the material weakness previously identified and disclosed in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2023, the end of its most recent fiscal year.

Management has identified the following material weaknesses:

1. We do not have sufficient resources in our accounting department, which restricts our ability to gather, analyze and properly review information related to financial reporting, including applying complex accounting principles relating to consolidation accounting, related party transactions, fair value estimates, accounting contingencies and analysis of financial instruments for proper classification in the consolidated financial statements, in a timely manner;

14

2. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties during our assessment of our disclosure controls and procedures and concluded that the control deficiency that resulted represented a material weakness;

3. Our primary user access controls (i.e., provisioning, de-provisioning, privileged access and user access reviews) to ensure appropriate authorization and segregation of duties that would adequately restrict user and privileged access to the financially relevant systems and data to appropriate personnel were not designed and/or implemented effectively. We did not design and/or implement sufficient controls for program change management to certain financially relevant systems affecting our processes; and

4. The Company did not design and/or implement user access controls to ensure appropriate segregation of duties or program change management controls for certain financially relevant systems impacting the Company’s processes around revenue recognition and crypto assets to ensure that IT program and data changes affecting the Company’s (i) financial IT applications, (ii) crypto assets mining equipment, and (iii) underlying accounting records, are identified, tested, authorized and implemented appropriately to validate that data produced by its relevant IT system(s) were complete and accurate. Automated process-level controls and manual controls that are dependent upon the information derived from such financially relevant systems were also determined to be ineffective as a result of such deficiency. In addition, the Company has not effectively designed a manual key control to detect material misstatements in revenue.

Planned Remediation

Management continues to work to improve its controls related to our material weaknesses, specifically relating to user access and change management surrounding our IT systems and applications. Management will continue to implement measures to remediate material weaknesses, such that these controls are designed, implemented, and operating effectively. The remediation actions include: (i) enhancing design and documentation related to both user access and change management processes and control activities; and (ii) developing and communicating additional policies and procedures to govern the area of IT change management. In order to achieve the timely implementation of the above, management has commenced the following actions and will continue to assess additional opportunities for remediation on an ongoing basis:

· Engaging a third-party specialist to assist management with improving the Company’s overall control environment, focusing on change management and access controls;

· Implementing new applications and systems that are aligned with management’s focus on creating strong internal controls; and

· Continuing to increase headcount across the Company, with a particular focus on hiring individuals with strong Sarbanes Oxley and internal control backgrounds.

We are currently working to improve and simplify our internal processes and implement enhanced controls, as discussed above, to address the material weaknesses in our internal control over financial reporting and to remedy the ineffectiveness of our disclosure controls and procedures. These material weaknesses will not be considered to be remediated until the applicable remediated controls are operating for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

Despite the existence of these material weaknesses, we believe that the condensed consolidated financial statements included in the period covered by this Quarterly Report fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles. 

Changes in Internal Controls over Financial Reporting.

Except as detailed above, during the fiscal quarter ended September 30, 2024, there were no significant changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Litigation Matters

The Company is involved in litigation arising from other matters in the ordinary course of business. We are regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving labor and employment, commercial disputes, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil penalties, or other adverse consequences.

Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. We record a liability when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters.

Arena Litigation

Arena Investors, LP (ROI Litigation)

On May 30, 2024, Arena Investors, LP (“Arena”), in its capacity as collateral agent for five noteholders, filed a filed a Complaint (the “ROI Complaint”) in the Supreme Court of the State of New York, County of New York against the Company and ROI, in action captioned Arena Investors, LP v. Ault Alliance, Inc. and RiskOn International, Inc., Index No. 652792/2024.

The ROI Complaint asserts a cause of action for breach of contract against the Company based on a Guaranty, dated April 27, 2023, and entered into, amongst others, the Company and Arena, and seeks damages in the amount of in excess of $3.75 million, plus interest, attorneys’ fees, costs, expenses, and disbursements.

The ROI Complaint also asserts a cause of action for breach of contract against ROI based on an alleged breach of that certain Security Agreement, dated April 27, 2023, and entered into among ROI and Arena. In connection with this cause of action, Arena seeks, among other things, costs and expenses from the Company and ROI.

On July 31, 2024, the Company and ROI filed a motion to dismiss seeking to partially dismiss the ROI Complaint, as against the Company, and to dismiss the Compliant, in its entirety, as against ROI.

The Motion has been fully briefed and is currently pending before the Court.

Based on the Company’s assessment of the facts underlying the claims, the uncertainty of litigation, and the preliminary stage of the case, the Company cannot reasonably estimate the potential loss or range of loss that may result from this action. Notwithstanding, the Company has recorded the unpaid portion of the notes. An unfavorable outcome may have a material adverse effect on the Company’s business, financial condition and results of operations.

Arena Investors, LP (Gresham Litigation)

On June 6, 2024, Arena, in its capacity as collateral agent for Arena and Walleye Opportunities Master Fund Ltd. (“Walleye”), filed a Complaint (the “Complaint”) in the Supreme Court of the State of New York, County of New York against the Company and GIGA, in action captioned Arena Investors, LP v. Gresham Worldwide, Inc. f/k/a Giga-Tronics Incorporated and Ault Alliance, Inc., Index No. 652898/2024.

On July 8, 2024, Arena filed an Amended Complaint (the “Amended Complaint”) in the above-referenced action.  The Amended Complaint asserts a cause of action against the Company for declaratory and injunctive relief seeking an injunction enjoining the Company, and its agent, affiliates, servants, and employees from taking actions in breach of that certain Subordination Agreement, dated January 9, 2023, and entered into among Walleye, Arena, and the Company.

16

The Amended Complaint also asserts causes of action for breach of contract against GIGA based on two discrete convertible promissory notes (the “Notes”) that GIGA entered into with each of Arena and Walleye, as well as a claim for breach duty of good faith and fair dealing, against GIGA, and seeks, among other things, monetary damages in excess of $4.2 million, with interest thereon, attorneys’ fees, costs, and disbursements.  The Amended Complaint further asserts another cause of action against GIGA for breach of contract seeking declaratory and injunctive relief based on alleged inspection rights contained in a Security Agreement, dated January 9, 2023 (the “Security Agreement”), and entered into between the Walleye, Arena, and GIGA, which seeks the issuance of an injunction related to such alleged inspection rights, plus the costs and out-of-pocket expenses associated with the enforcement of same.

On July 12, 2024, the Court granted injunctive relief to Arena and ordered GIGA to comply with the inspection rights provision of the Security Agreement by July 17, 2024.

On July 19, 2024, Arena voluntarily discontinued its cause of action for breach duty of good faith and fair dealing claim against GIGA.

On July 29, 2024, the Company and GIGA filed a motion to dismiss, strike, and for sanctions (the “Motion”), in response to the Amended Complaint, on the grounds that, amongst other things, the underlying Notes are criminally usurious under New York.

On August 14, 2024, GIGA filed a petition for reorganization under Chapter 11 of the bankruptcy laws

On November 12, 2024, GIGA removed the state court action to the United States District Court for the Southern District of New York.

Based on the Company’s assessment of the facts underlying the claims, the uncertainty of litigation, and the preliminary stage of the case, the Company cannot reasonably estimate the potential loss or range of loss that may result from this action. Notwithstanding, the Company has recorded the unpaid portion of the Notes. An unfavorable outcome may have a material adverse effect on the Company’s business, financial condition and results of operations.

Other Litigation Matters

With respect to our other outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. 

ITEM 1A. RISK FACTORS

There are no updates or changes to the risk factors set forth in our Annual Report on Form 10-K/A for the year ended December 31, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

17

ITEM 6. EXHIBITS

Exhibit Number	Description
3.1	Certificate of Incorporation, dated September 22, 2017.  Incorporated herein by reference to the Current Report on Form 8-K filed on December 29, 2017 as Exhibit 3.1 thereto.
3.2	Certificate of Designations of Rights and Preferences of 10% Series A Cumulative Redeemable Perpetual Preferred Stock, dated September 13, 2018. Incorporated herein by reference to the Current Report on Form 8-K filed on September 14, 2018 as Exhibit 3.1  thereto.
3.3	Certificate of Amendment to Certificate of Incorporation, dated January 2, 2019. Incorporated by reference to the Current Report on Form 8-K filed on January 3, 2019 as Exhibit 3.1 thereto.
3.4	Certificate of Amendment to Certificate of Incorporation (1-for-20 Reverse Stock Split of Common Stock), dated March 14, 2019. Incorporated herein by reference to the Current Report on Form 8-K filed on March 14, 2019 as Exhibit 3.1 thereto.
3.5	Certificate of Ownership and Merger. Incorporated by reference to the Current Report on Form 8-K filed on January 19, 2021 as Exhibit 2.1 thereto.
3.6	Certificate of Ownership and Merger, as filed with the Secretary of State of the State of Delaware on December 1, 2021. Incorporated by reference to the Current Report on Form 8-K filed on December 13, 2021 as Exhibit 3.1 thereto.
3.7	Certificate of Designation, Preferences and Rights relating to the 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, dated May 25, 2022. Incorporated by reference to the Registration Statement on Form 8-A filed on May 26, 2022 as Exhibit 3.6 thereto.
3.8	Certificate of Increase of the Designated Number of Shares of 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, dated June 10, 2022. Incorporated by reference to the Current Report on Form 8-K filed on June 14, 2022 as Exhibit 3.1 thereto.
3.9	Certificate of Correction to the Certificate of Designation, Rights and Preferences of 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, dated June 16, 2022. Incorporated by reference to the Current Report on Form 8-K filed on June 17, 2022 as Exhibit 3.1 thereto.
3.10	Certificate of Amendment to Certificate of Incorporation (1-for-300 Reverse Stock Split of Common Stock), dated May 15, 2023. Incorporated herein by reference to the Current Report on Form 8-K filed on May 16, 2023 as Exhibit 3.1 thereto.
3.11	Certificate of Elimination of the Series E convertible redeemable preferred stock of Hyperscale Data, Inc. Incorporated herein by reference to the Current Report on Form 8-K filed on August 18, 2023 as Exhibit 3.1 thereto.
3.12	Certificate of Elimination of the Series F convertible redeemable preferred stock of Hyperscale Data, Inc. Incorporated herein by reference to the Current Report on Form 8-K filed on August 18, 2023 as Exhibit 3.2 thereto.
3.13	Certificate of Elimination of the Series G convertible redeemable preferred stock of Hyperscale Data, Inc. Incorporated herein by reference to the Current Report on Form 8-K filed on August 18, 2023 as Exhibit 3.3 thereto.
3.14	Certificate of Designation of Preferences, Rights and Limitations of Series C Cumulative Preferred Stock, dated November 15, 2023. Incorporated herein by reference to the Current Report on Form 8-K filed on November 21, 2023 as Exhibit 3.1 thereto.
3.15	Certificate of Elimination of the Series B convertible redeemable preferred stock of Hyperscale Data, Inc. Incorporated herein by reference to the Current Report on Form 8-K filed on December 12, 2023 as Exhibit 3.1 thereto.
3.16	Certificate of Amendment to Certificate of Incorporation filed with the Delaware Secretary of State on January 12, 2024. Incorporated by reference to the Current Report on Form 8-K filed on January 12, 2024 as Exhibit 3.2 thereto.
3.17	Second Amended and Restated Bylaws, effective as of January 11, 2024. Incorporated by reference to the Current Report on Form 8-K filed on January 12, 2024 as Exhibit 3.1 thereto.
3.18	Certificate of Increase to Certificate Designations of Preferences, Rights and Limitations of Series C Convertible Preferred Stock. Incorporated herein by reference to the Current Report on Form 8-K filed on April 4, 2024 as Exhibit 3.1 thereto.
3.19	Certificate of Amendment to Certificate of Incorporation filed with the Delaware Secretary of State on September 6, 2024 and effective September 10, 2024. Incorporated herein by reference to the Current Report on Form 8-K filed on September 6, 2024 as Exhibit 3.1 thereto.
10.1	Note Purchase Agreement, dated July 18, 2024, by and among the Company and Esousa Group Holdings, LLC. Incorporated by reference to the Current Report on Form 8-K filed on July 19, 2024 as Exhibit 10.1 thereto.
10.2	Form of Note. Incorporated by reference to the Current Report on Form 8-K filed on July 19, 2024 as Exhibit 4.1 thereto.
31.1*	Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a).
31.2*	Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).
32.1**	Certification of Chief Executive Officer and Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.

18

101.INS*	Inline XBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

____________________

* Filed herewith.

** Furnished herewith.

19

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated:  November 19, 2024

HYPERSCALE DATA, INC.
By:	/s/ William B. Horne
	William B. Horne
	Chief Executive Officer
	(Principal Executive Officer)
By:	/s/ Kenneth S. Cragun
	Kenneth S. Cragun
	Chief Financial Officer
	(Principal Accounting Officer)

20

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, William B. Horne, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hyperscale Data, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 19, 2024

/s/ William B. Horne

Name: William B. Horne

Title: Chief Executive Officer

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Kenneth S. Cragun, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hyperscale Data, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 19, 2024

/s/ Kenneth S. Cragun

Name: Kenneth S. Cragun

Title: Chief Financial Officer

(Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Hyperscale Data, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: November 19, 2024
	By: /s/ William B. Horne
	Name: William B. Horne
	Title: Chief Executive Officer
	(Principal Executive Officer)
Date: November 19, 2024
	By: /s/ Kenneth S. Cragun
	Name: Kenneth S. Cragun
	Title: Chief Financial Officer
	(Principal Accounting Officer)

XML

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 19, 2024
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	1-12711
Entity Registrant Name	HYPERSCALE DATA, INC.
Entity Central Index Key	0000896493
Entity Tax Identification Number	94-1721931
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	11411 Southern Highlands Parkway
Entity Address, Address Line Two	Suite 240
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89141
City Area Code	949
Local Phone Number	444-5464
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		38,846,318
Class A Common Stock, $0.001 par value
Title of 12(b) Security	Class A Common Stock, $0.001 par value
Trading Symbol	GPUS
Security Exchange Name	NYSEAMER
13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share
Title of 12(b) Security	13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share
Trading Symbol	GPUS
Security Exchange Name	NYSEAMER

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash and cash equivalents	$ 7,190,000	$ 6,105,000
Restricted cash	8,259,000	4,962,000
Marketable equity securities	687,000	27,000
Accounts receivable, net	6,824,000	6,736,000
Inventories	1,823,000	1,790,000
Investment in promissory notes and other, related party	14,786,000	3,968,000
Loans receivable, current	1,169,000	1,234,000
Prepaid expenses and other current assets	4,240,000	5,221,000
Current assets of discontinued operations		32,367,000
TOTAL CURRENT ASSETS	44,978,000	62,410,000
Cash and marketable securities held in trust account	804,000	2,200,000
Intangible assets, net	3,682,000	4,047,000
Goodwill	295,000	295,000
Property and equipment, net	160,874,000	195,666,000
Right-of-use assets	3,570,000	3,409,000
Investments in common stock and equity securities, related party	2,231,000	679,000
Investments in other equity securities	5,274,000	21,767,000
Other assets	9,785,000	8,717,000
TOTAL ASSETS	231,493,000	299,190,000
CURRENT LIABILITIES
Accounts payable and accrued expenses	58,474,000	55,422,000
Operating lease liability, current	1,442,000	1,376,000
Notes payable, current	87,730,000	11,692,000
Notes payable, related party, current	171,000	2,375,000
Convertible notes payable, current	9,725,000	7,375,000
Guarantee liability	38,900,000	38,900,000
Current liabilities of discontinued operations		22,664,000
TOTAL CURRENT LIABILITIES	196,442,000	139,804,000
LONG TERM LIABILITIES
Operating lease liability, non-current	2,339,000	2,163,000
Notes payable, non-current	16,760,000	85,420,000
Convertible notes payable, non-current	9,453,000	9,453,000
Deferred underwriting commissions of Ault Disruptive Technologies Corporation (“Ault Disruptive”) subsidiary	3,450,000	3,450,000
TOTAL LIABILITIES	228,444,000	240,290,000
Redeemable non-controlling interests in equity of subsidiaries	804,000	2,224,000
STOCKHOLDERS’ EQUITY
Additional paid-in capital	661,606,000	644,852,000
Accumulated deficit	(627,124,000)	(567,469,000)
Accumulated other comprehensive loss	(1,222,000)	(2,097,000)
Treasury stock, at cost	(30,571,000)	(30,571,000)
TOTAL HYPERSCALE DATA STOCKHOLDERS’ EQUITY	2,728,000	44,719,000
Non-controlling interest	(483,000)	11,957,000
TOTAL STOCKHOLDERS’ EQUITY	2,245,000	56,676,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	231,493,000	299,190,000
Series A Preferred Stock [Member]
STOCKHOLDERS’ EQUITY
Preferred Stock, value
Series C Preferred Stock [Member]
STOCKHOLDERS’ EQUITY
Preferred Stock, value
Series D Preferred Stock [Member]
STOCKHOLDERS’ EQUITY
Preferred Stock, value
Common Class A [Member]
STOCKHOLDERS’ EQUITY
Common Stock, value	39,000	4,000
Common Class B [Member]
STOCKHOLDERS’ EQUITY
Common Stock, value

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Series A Preferred Stock [Member]
Convertible preferred stock, stated value (in dollars per share)	$ 25	$ 25
Preferred stock, par or stated value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	7,040	7,040
Preferred stock, shares outstanding	7,040	7,040
Preferred stock, liquidation preference, value	$ 176,000	$ 176,000
Series C Preferred Stock [Member]
Convertible preferred stock, stated value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, par or stated value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	75,000	75,000
Preferred stock, shares issued	44,300	41,500
Preferred stock, shares outstanding	44,300	41,500
Preferred stock, liquidation preference, value	$ 44,300,000	$ 41,500,000
Series D Preferred Stock [Member]
Convertible preferred stock, stated value (in dollars per share)	$ 25	$ 25
Preferred stock, par or stated value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	323,835	425,197
Preferred stock, shares outstanding	323,835	425,197
Preferred stock, liquidation preference, value	$ 8,096,000	$ 10,630,000
Common Class A [Member]
Common stock, par or stated value per share	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	38,846,318	4,483,459
Common stock, shares outstanding	38,846,318	4,483,459
Common Class B [Member]
Common stock, par or stated value per share	$ 0.001	$ 0.001
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Total revenue	$ 31,061,000	$ 43,090,000	$ 87,219,000	$ 104,238,000
Total cost of revenue	22,516,000	34,358,000	64,273,000	80,207,000
Gross profit	8,545,000	8,732,000	22,946,000	24,031,000
Operating expenses
Research and development	4,598,000	1,097,000	4,811,000	3,304,000
Selling and marketing	4,755,000	7,638,000	12,528,000	24,990,000
General and administrative	11,996,000	16,339,000	33,730,000	53,051,000
Impairment of property and equipment	11,791,000	3,895,000	19,746,000	3,895,000
Impairment of goodwill and intangible assets				35,570,000
Impairment of mined crypto assets		113,000		376,000
Total operating expenses	33,140,000	29,082,000	70,815,000	121,186,000
Loss from operations	(24,595,000)	(20,350,000)	(47,869,000)	(97,155,000)
Other income (expense):
Interest and other income	766,000	278,000	2,118,000	3,612,000
Interest expense	(7,766,000)	(6,137,000)	(18,825,000)	(35,180,000)
Gain on conversion of investment in equity securities to marketable equity securities			17,900,000
(Loss) gain on extinguishment of debt	(240,000)	(1,546,000)	502,000	(1,700,000)
Loss from investment in unconsolidated entity			(1,958,000)
Impairment of equity securities			(6,266,000)	(9,555,000)
Provision for loan losses, related party			(3,068,000)
Change in fair value of warrant liability		499,000		2,655,000
Gain (loss) on the sale of fixed assets	32,000	(32,000)	64,000	2,728,000
Total other expense, net	(7,208,000)	(6,938,000)	(9,533,000)	(37,440,000)
Loss before income taxes	(31,803,000)	(27,288,000)	(57,402,000)	(134,595,000)
Income tax provision (benefit)	52,000	(565,000)	47,000	551,000
Net loss from continuing operations	(31,855,000)	(26,723,000)	(57,449,000)	(135,146,000)
Net gain (loss) from discontinued operations	2,216,000	(1,359,000)	(779,000)	(4,658,000)
Net loss	(29,639,000)	(28,082,000)	(58,228,000)	(139,804,000)
Net loss attributable to non-controlling interest	4,090,000	6,311,000	2,469,000	8,704,000
Net loss attributable to Hyperscale Data, Inc.	(25,549,000)	(21,771,000)	(55,759,000)	(131,100,000)
Preferred dividends	(1,326,000)	(412,000)	(3,894,000)	(963,000)
Net loss available to common stockholders	$ (26,875,000)	$ (22,183,000)	$ (59,653,000)	$ (132,063,000)
Basic and diluted net gain (loss) per common share:
Basic net loss per common share continuing operations	$ (0.77)	$ (93.39)	$ (2.03)	$ (1,201.94)
Diluted net loss per common share continuing operations	(0.77)	(93.39)	(2.03)	(1,201.94)
Basic net loss per common share discontinued operations	0.06	(6.09)	(0.03)	(43.94)
Diluted net loss per common share discontinued operations	0.06	(6.09)	(0.03)	(43.94)
Basic net loss per common share	(0.71)	(99.48)	(2.06)	(1,245.88)
Diluted net loss per common share	$ (0.71)	$ (99.48)	$ (2.06)	$ (1,245.88)
Weighted average basic common shares outstanding	37,901,000	223,000	28,907,000	106,000
Weighted average diluted common shares outstanding	37,901,000	223,000	28,907,000	106,000
Comprehensive loss
Foreign currency translation adjustment	$ (221,000)	$ (282,000)	$ (621,000)	$ (702,000)
Other comprehensive loss	(221,000)	(282,000)	(621,000)	(702,000)
Total comprehensive loss	(27,096,000)	(22,465,000)	(60,274,000)	(132,765,000)
Product [Member]
Total revenue	2,215,000	17,554,000	5,785,000	25,754,000
Total cost of revenue	1,178,000	13,209,000	3,470,000	19,213,000
Digital Assets Mining [Member]
Total revenue	5,264,000	7,558,000	25,201,000	23,273,000
Total cost of revenue	9,388,000	10,228,000	26,971,000	28,057,000
Hotel and real estate operations [Member]
Total revenue	5,680,000	5,737,000	14,377,000	13,148,000
Total cost of revenue	3,498,000	3,279,000	9,633,000	9,086,000
Crane Operations [Member]
Total revenue	12,327,000	12,490,000	36,945,000	37,726,000
Total cost of revenue	7,957,000	7,642,000	23,704,000	22,671,000
Lending and Trading Activities [Member]
Total revenue	5,575,000	(249,000)	4,911,000	4,337,000
Total cost of revenue	$ 495,000		$ 495,000	$ 1,180,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY (Unaudited) - USD ($)	Preferred Stock Series A [Member]	Preferred Stock Series C [Member]	Preferred Stock Series D [Member]	Class A Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Treasury Stocks [Member]	Total	Preferred Stock Series B [Member]
Beginning balance, value at Dec. 31, 2022					$ 565,905,000	$ (329,078,000)	$ (1,100,000)	$ 17,496,000	$ (29,235,000)	$ 223,988,000
Beginning balance, shares at Dec. 31, 2022	7,040		172,838	50,966							125,000
Issuance of Class A common stock for restricted stock awards
Issuance of Class A common stock for restricted stock awards, shares				199
Series D preferred stock issued for cash					6,309,000					6,309,000
Series D preferred stock issued for cash, shares			252,359
Preferred stock offering costs					(3,431,000)					(3,431,000)
Stock-based compensation					5,642,000			3,546,000		9,188,000
Net loss attributable to Hyperscale Data, Inc.						(131,100,000)				(131,100,000)
Series A preferred dividends ($1.25 per share)						13,000				13,000
Series D preferred dividends ($1.62 per share)						762,000				762,000
Foreign currency translation adjustments							(1,001,000)			(1,001,000)
Net loss attributable to non-controlling interest								(10,420,000)		(10,420,000)
Other					(1,000)	(190,000)	(1,000)	1,000	1,000	(190,000)
Issuance of Class A common stock for cash					25,327,000					25,327,000
Financing cost in connection with sales of Class A common stock					(847,000)					(847,000)
Issuance of Class A common stock for conversion of preferred stock liabilities					912,000					912,000
Remeasurement of Ault Disruptive subsidiary temporary equity						(5,945,000)				(5,945,000)
Increase in ownership interest of subsidiary					13,000			(1,597,000)		(1,584,000)
Sale of subsidiary stock to non-controlling interests								3,915,000		3,915,000
Distribution of securities of TurnOnGreen to Hyperscale Data Class A common stockholders ($50.50 per share)					(10,700,000)			10,700,000
Distribution to Circle 8 non-controlling interest								(500,000)		(500,000)
Issuance of Class A common stock for cash, shares				436,696
Issuance of Class A common stock for conversion of preferred stock liabilities, shares				5,736
Class A common stock issued in connection with issuance of notes payable					162,000					162,000
Class A common stock issued in connection with issuance of notes payable, shares				1,590
Non-controlling position at ROI subsidiary acquired								6,357,000		6,357,000
Purchase of treasury stock - Ault Alpha									(1,306,000)	(1,306,000)
Ending balance, value at Sep. 30, 2023					589,291,000	(467,088,000)	(2,102,000)	29,498,000	(30,540,000)	119,059,000
Ending balance, shares at Sep. 30, 2023	7,040		425,197	495,187							125,000
Beginning balance, value at Jun. 30, 2023					573,388,000	(444,371,000)	(1,450,000)	23,853,000	(29,919,000)	121,501,000
Beginning balance, shares at Jun. 30, 2023	7,040		425,197	61,056							125,000
Stock-based compensation					959,000			1,622,000		2,581,000
Net loss attributable to Hyperscale Data, Inc.						(21,771,000)				(21,771,000)
Series A preferred dividends ($1.25 per share)						4,000				4,000
Series D preferred dividends ($1.62 per share)						345,000				345,000
Foreign currency translation adjustments							(651,000)			(651,000)
Net loss attributable to non-controlling interest								(6,668,000)		(6,668,000)
Other					(2,000)	(67,000)	(1,000)			(70,000)
Issuance of Class A common stock for cash					20,415,000					20,415,000
Issuance of common stock for cash, shares				428,305
Financing cost in connection with sales of Class A common stock					(715,000)					(715,000)
Issuance of Class A common stock for conversion of preferred stock liabilities					584,000					584,000
Issuance of common stock for conversion of preferred stock liabilities, shares				4,236
Common stock issued in connection with issuance of notes payable					162,000					162,000
Common stock issued in connection with issuance of notes payable, shares				1,590
Remeasurement of Ault Disruptive subsidiary temporary equity						(530,000)				(530,000)
Increase in ownership interest of subsidiary								(352,000)		(352,000)
Sale of subsidiary stock to non-controlling interests								343,000		343,000
Purchase of treasury stock - Ault Alpha LP (“Ault Alpha”)									(621,000)	(621,000)
Distribution of securities of TurnOnGreen to Hyperscale Data Class A common stockholders ($50.50 per share)					(5,500,000)			10,700,000		5,200,000
Ending balance, value at Sep. 30, 2023					589,291,000	(467,088,000)	(2,102,000)	29,498,000	(30,540,000)	119,059,000
Ending balance, shares at Sep. 30, 2023	7,040		425,197	495,187							125,000
Beginning balance, value at Dec. 31, 2023				$ 4,000	644,852,000	(567,469,000)	(2,097,000)	11,957,000	(30,571,000)	56,676,000
Beginning balance, shares at Dec. 31, 2023	7,040	41,500	425,197	4,483,459
Issuance of Series C preferred stock, related party					2,601,000					2,601,000
Issuance of Series C preferred stock, related party, shares		2,800
Fair value of warrants issued in connection with Series C preferred stock, related party					199,000					199,000
Stock-based compensation					1,189,000					1,189,000
Issuance of Class A common stock for conversion of debt				$ 9,000	3,607,000					3,616,000
Issuance of Class A common stock for conversion of debt, shares				8,780,979
Net loss attributable to Hyperscale Data, Inc.						(55,759,000)				(55,759,000)
Series A preferred dividends ($1.25 per share)						13,000				13,000
Series C preferred dividends ($71.22 per share)						3,091,000				3,091,000
Series D preferred dividends ($1.62 per share)						790,000				790,000
Foreign currency translation adjustments							(621,000)			(621,000)
Net loss attributable to non-controlling interest								(2,469,000)		(2,469,000)
Deconsolidation of subsidiary							1,495,000	2,873,000		4,368,000
Other					(2,000)	(2,000)	1,000	(1,000)		(4,000)
Issuance of Class A common stock for cash				$ 26,000	14,573,000					14,599,000
Issuance of common stock for cash, shares				25,609,079
Increase in ownership interest of subsidiary								(893,000)		(893,000)
Sale of subsidiary stock to non-controlling interests								1,778,000		1,778,000
Distribution of securities of TurnOnGreen to Hyperscale Data Class A common stockholders ($50.50 per share)					(4,900,000)			4,900,000
Financing cost in connection with sales of Class A common stock					(513,000)					(513,000)
Distribution to Circle 8 non-controlling interest								(281,000)		(281,000)
Conversion of RiskOn International, Inc. (“ROI”) convertible note								863,000		863,000
Distribution of ROI investment in White River Energy Corp. (“White River”) to ROI shareholders								(19,210,000)		(19,210,000)
Other, shares			(101,362)	(27,199)
Ending balance, value at Sep. 30, 2024				$ 39,000	661,606,000	(627,124,000)	(1,222,000)	(483,000)	(30,571,000)	2,245,000
Ending balance, shares at Sep. 30, 2024	7,040	44,300	323,835	38,846,318							44,300
Beginning balance, value at Jun. 30, 2024				$ 36,000	660,036,000	(600,282,000)	(2,497,000)	(440,000)	(30,571,000)	26,282,000
Beginning balance, shares at Jun. 30, 2024	7,040	44,000	323,835	35,846,318
Issuance of Series C preferred stock, related party					286,000					286,000
Issuance of Series C preferred stock, related party, shares		300
Fair value of warrants issued in connection with Series C preferred stock, related party					14,000					14,000
Stock-based compensation					374,000					374,000
Issuance of Class A common stock for conversion of debt				$ 3,000	897,000					900,000
Issuance of Class A common stock for conversion of debt, shares				3,000,000
Distribution to Circle 8 Crane Services, LLC (“Circle 8”) non-controlling interest								(55,000)		(55,000)
Net loss attributable to Hyperscale Data, Inc.						(25,549,000)				(25,549,000)
Series A preferred dividends ($1.25 per share)						4,000				4,000
Series C preferred dividends ($71.22 per share)						1,059,000				1,059,000
Series D preferred dividends ($1.62 per share)						263,000				263,000
Foreign currency translation adjustments							(221,000)			(221,000)
Net loss attributable to non-controlling interest								(2,861,000)		(2,861,000)
Deconsolidation of subsidiary							1,495,000	2,873,000		4,368,000
Other					(1,000)	33,000	1,000			33,000
Ending balance, value at Sep. 30, 2024				$ 39,000	$ 661,606,000	$ (627,124,000)	$ (1,222,000)	$ (483,000)	$ (30,571,000)	$ 2,245,000
Ending balance, shares at Sep. 30, 2024	7,040	44,300	323,835	38,846,318							44,300

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Cash flows from operating activities:
Net loss			$ (58,228,000)	$ (139,804,000)
Net loss from discontinued operations			(779,000)	(4,658,000)
Net loss from continuing operations			(57,449,000)	(135,146,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			19,653,000	22,378,000
Amortization of debt discount			8,422,000	22,756,000
Amortization of right-of-use assets			1,162,000	1,335,000
Impairment of goodwill and intangible assets				35,570,000
Stock-based compensation			2,940,000	7,594,000
Gain on the sale of fixed assets	$ (32,000)	$ 32,000	(64,000)	(2,728,000)
Impairment of property and equipment	11,791,000	3,895,000	19,746,000	3,895,000
Impairment of equity securities			6,266,000	11,555,000
Impairment of crypto assets				376,000
Realized gain on the sale of crypto assets			(649,000)	(404,000)
Change in fair value of crypto assets			(24,000)
Revenue, crypto assets mining			(19,563,000)	(23,273,000)
Realized gains on sale of marketable securities			(7,463,000)	(33,140,000)
Gain on conversion of investment in equity securities to marketable equity securities			(17,900,000)
Unrealized gains on marketable securities			(266,000)	(2,554,000)
Realized losses on non-marketable equity securities			5,083,000
Unrealized losses on investments in common stock, related parties			557,000	3,752,000
Income from cash held in trust			(41,000)	(2,561,000)
Loss from investment in unconsolidated entity			1,958,000
Provision for loan losses			495,000	1,180,000
Provision for loan losses, related party			5,668,000
Change in the fair value of warrant liability				(2,655,000)
Gain on extinguishment of debt			(502,000)
Proceeds from the sale of crypto assets			20,038,000	21,330,000
Other			(1,194,000)	1,550,000
Changes in operating assets and liabilities:
Marketable equity securities			10,755,000	71,159,000
Accounts receivable			(342,000)	(4,792,000)
Inventories			(42,000)	(1,554,000)
Prepaid expenses and other current assets			(182,000)	(762,000)
Other assets			(3,026,000)	(4,023,000)
Accounts payable and accrued expenses			3,471,000	13,333,000
Lease liabilities			(1,364,000)	(1,595,000)
Net cash (used in) provided by operating activities from continuing operations			(3,857,000)	2,576,000
Net cash used in operating activities from discontinued operations			(6,366,000)	(4,734,000)
Net cash used in operating activities			(10,223,000)	(2,158,000)
Cash flows from investing activities:
Purchase of property and equipment			(4,762,000)	(14,607,000)
Acquisition of non-controlling interests				(1,584,000)
Investments in loans receivable			(434,000)	(182,000)
Investments in non-marketable equity securities				(10,702,000)
Proceeds from the sale of fixed assets			671,000	4,515,000
Investment in notes receivable, related party			(3,413,000)	(2,361,000)
Other			(109,000)	(132,000)
Net cash used in investing activities from continuing operations			(8,047,000)	(25,053,000)
Net cash (used in) provided by investing activities from discontinued operations			(3,799,000)	2,184,000
Net cash used in investing activities			(11,846,000)	(22,869,000)
Cash flows from financing activities:
Gross proceeds from sales of Class A common stock			14,599,000	25,327,000
Financing cost in connection with sales of Class A common stock			(513,000)	(847,000)
Proceeds from sales of Series D preferred stock				6,309,000
Financing cost in connection with sales of Series D preferred stock				(3,431,000)
Proceeds from sales of Series C preferred stock and warrants, related party			2,800,000
Proceeds from subsidiaries’ sale of stock to non-controlling interests			1,778,000	3,915,000
Distribution to Circle 8 non-controlling interest			(281,000)	(500,000)
Proceeds from notes payable			49,237,000	81,026,000
Repayment of margin accounts				(767,000)
Payments on notes payable			(47,006,000)	(95,815,000)
Payments on convertible notes payable, related party			(193,000)
Payments on notes payable, related party			(1,908,000)
Payments of preferred dividends			(3,894,000)	(963,000)
Purchase of treasury stock				(1,306,000)
Proceeds from sales of convertible notes			6,700,000	9,169,000
Payments on convertible notes			(1,280,000)	(660,000)
Net cash provided by financing activities from continuing operations			20,039,000	21,457,000
Net cash provided by financing activities from discontinued operations			2,552,000	2,316,000
Net cash provided by financing activities			22,591,000	23,773,000
Effect of exchange rate changes on cash and cash equivalents			(442,000)	(311,000)
Net increase (decrease) in cash and cash equivalents and restricted cash			80,000	(1,565,000)
Cash and cash equivalents and restricted cash at beginning of period - continuing operations			11,068,000	11,860,000	11,860,000
Cash and cash equivalents and restricted cash at beginning of period - discontinued operations			4,301,000	2,195,000	2,195,000
Cash and cash equivalents and restricted cash at beginning of period			15,369,000	14,055,000	14,055,000
Cash and cash equivalents and restricted cash at end of period	15,449,000	12,490,000	15,449,000	12,490,000	15,369,000
Less cash and cash equivalents and restricted cash of discontinued operations at end of period		2,114,000		2,114,000	4,301,000
Cash and cash equivalents and restricted cash of continued operations at end of period	$ 15,449,000	$ 10,376,000	15,449,000	10,376,000	$ 11,068,000
Supplemental disclosures of cash flow information:
Cash paid during the period for interest - continuing operations			9,775,000	8,641,000
Cash paid during the period for interest - discontinued operations			946,000	862,000
Non-cash investing and financing activities:
Settlement of accounts payable with crypto assets			31,000	20,000
Settlement of interest payable with crypto assets			142,000
Settlement of note payable with crypto assets			506,000
Conversion of convertible notes payable into shares of Class A common stock			3,616,000
Conversion of convertible notes payable, related party into shares of Class A common stock				400,000
Conversion of debt and equity securities to marketable securities			4,996,000	23,703,000
Conversion of loans receivable to marketable securities				5,430,000
Exchange of related party advances for investment in other equity securities, related party			2,000,000
Recognition of new operating lease right-of-use assets and lease liabilities			$ 1,889,000	$ 3,952,000
Remeasurement of Ault Disruptive temporary equity				5,945,000
Preferred stock exchanged for notes payable				$ 9,224,000
Notes payable exchanged for convertible notes payable				2,200,000
Notes payable exchanged for notes payable, related party				11,645,000
Dividend of ROI investment in White River to ROI shareholders			$ 19,210,000
Redeemable non-controlling interests in equity of subsidiaries paid with cash and marketable securities held in trust account			1,463,000	120,064,000
Dividend paid in TurnOnGreen common stock in additional paid-in capital			$ 4,900,000	$ 10,700,000

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Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (25,549,000)	$ (21,771,000)	$ (55,759,000)	$ (131,100,000)

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Insider Trading Arrangements	9 Months Ended
	Sep. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

DESCRIPTION OF BUSINESS

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

DESCRIPTION OF BUSINESS

1. DESCRIPTION OF BUSINESS

Hyperscale Data, Inc. (f/k/a Ault Alliance, Inc.), a Delaware corporation (“Hyperscale Data” or the “Company”) is a diversified holding company pursuing growth by acquiring and developing undervalued businesses and disruptive technologies with a global impact. Through its wholly- and majority-owned subsidiaries and strategic investments, the Company owns and operates a data center at which it mines Bitcoin and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries, and provides mission-critical products that support a diverse range of industries, including a metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, the Company extends credit to select entrepreneurial businesses through a licensed lending subsidiary.

The Company has the following reportable segments:

· Energy and Infrastructure (“Energy”) – crane operations and oil exploration;

· Technology and Finance (“Fintech”) – commercial lending, activist investing, and stock trading;

· Sentinum, Inc. (“Sentinum”) – crypto assets mining operations and colocation and hosting services for the emerging artificial intelligence ecosystems and other industries;

· TurnOnGreen – electric vehicle electrification infrastructure and commercial electronics solutions;

· ROI – immersive metaverse platform, media, and digital learning; and

· Ault Global Real Estate Equities, Inc. (“AGREE”) – hotel operations and other commercial real estate holdings.

The Company had a change to its reportable segments due to the discontinued operations of its majority owned subsidiary, Gresham Worldwide, Inc. (“GIGA”). See Note 4 below.

On September 10, 2024, the Company changed its name from Ault Alliance, Inc. to Hyperscale Data, Inc. and its Class A common stock ticker symbol was changed to “GPUS.” The name change did not affect the rights of security holders of the Company.

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LIQUIDITY AND FINANCIAL CONDITION

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

LIQUIDITY AND FINANCIAL CONDITION

2. LIQUIDITY AND FINANCIAL CONDITION

As of September 30, 2024, the Company had cash and cash equivalents of $7.2 million (excluding restricted cash of $8.3 million), negative working capital of $151.5 million and a history of net operating losses. The Company has financed its operations principally through issuances of convertible debt, promissory notes and equity securities. These factors create substantial doubt about the Company’s ability to continue as a going concern for at least one year after the date that these condensed consolidated financial statements are issued.

The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Accordingly, the condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business.

In making this assessment management performed a comprehensive analysis of the Company’s current circumstances, including its financial position, cash flow and cash usage forecasts, as well as obligations and debts. Although management has a long history of successful capital raises, the analysis used to determine the Company’s ability as a going concern does not include cash sources beyond the Company’s direct control that management expects to be available within the next 12 months.

Management expects that the Company’s existing cash and cash equivalents, accounts receivable and marketable securities as of September 30, 2024, will not be sufficient to enable the Company to fund its anticipated level of operations through one year from the date these financial statements are issued. Management anticipates raising additional capital through the private and public sales of the Company’s equity or debt securities and selling its marketable securities as well as crypto assets, or a combination thereof. Although management believes that such capital sources will be available, there can be no assurances that financing will be available to the Company when needed in order to allow the Company to continue its operations, or if available, on terms acceptable to the Company. If the Company does not raise sufficient capital in a timely manner, among other things, the Company may be forced to scale back or cease its operations altogether.

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

3. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and do not include all the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The Company has made estimates and judgments affecting the amounts reported in the Company’s condensed consolidated financial statements and the accompanying notes. The actual results experienced by the Company may differ materially from the Company’s estimates. The condensed consolidated financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods presented.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2023 (the “2023 Annual Report”) as amended, filed with the Securities and Exchange Commission (the “SEC”) on September 24, 2024. The condensed consolidated balance sheet as of December 31, 2023 was derived from the Company’s audited 2023 financial statements contained in the above referenced 2023 Annual Report. Results of the three and nine months ended September 30, 2024, are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.

Prior Period Revision - Statement of Cash Flows

For the nine months ended September 30, 2024, the Company disclosed the borrowings of lines of credit and repayments of lines of credit as separate line items within notes payable activity of the financing activities section of the consolidated statement of cash flows. The Company has corrected these line items for the nine months ended September 30, 2023 for comparability purposes.

Significant Accounting Policies

Other than as noted below, there have been no material changes to the Company’s significant accounting policies previously disclosed in the 2023 Annual Report.

Revenue Recognition Crypto Assets Mining

The Company has entered into a crypto assets mining pool by executing a contract with a mining pool operator to provide hash calculation services to the mining pool. The Company’s customer, as defined in Accounting Standards Codification (“ASC”) 606-10-20, is the mining pool operator with which the Company has agreed to the terms of service and user service agreement. The Company supplies hash calculation services, in exchange for consideration, to the pool operator who in turn provides transaction verification services to third parties via a mining pool that includes other participants. The Company’s performance obligation is the provision of hash calculation services to the pool operator and this performance obligation is an output of the Company’s ordinary activities for which it decides when to provide services under the contract.

The Company’s enforceable right to compensation begins only when, and lasts as long as, the Company provides hash calculation services to the mining pool operator and is created as power is provided over time. The only consideration due to the Company relates to the provision of hash calculation services. The contract with the pool operator provides both parties the unilateral enforceable right to terminate the contract at any time without penalty. The customer termination option results in a contract that continuously renews throughout the day and therefore has a duration of less than 24 hours. The implied renewal option is not a material right because there are no upfront or incremental fees in the initial contract and the terms, conditions, and compensation amount for the renewal options are at the then market rates. Providing such hash calculation services is the only performance obligation in the Company’s contracts with mining pool operators.

The transaction consideration the Company receives, if any, is non-cash consideration in the form of Bitcoin. Changes in the fair value of the non-cash consideration due to form of the consideration (changes in the market price of Bitcoin) are not included in the transaction price and are therefore not included in revenue. The mining pool operator charges fees to cover the costs of maintaining the pool and are deducted from amounts the Company may otherwise earn and are treated as a reduction to the consideration earned. Fees fluctuate and historically have been approximately 0.3% per reward earned, on average.

The Company participated in mining pools that used the full pay-per-share (“FPPS”) payout method for the nine months ended September 30, 2024. The Company is entitled to compensation once it begins to perform hash calculations for the pool operator in accordance with the operator’s specifications over a 24-hour period beginning midnight UTC and ending 23:59:59 UTC on a daily basis. The non-cash consideration that the Company is entitled to for providing hash calculations to the pool operator under the FPPS payout method is made up of block rewards and transaction fees less pool operator fees determined as follows:

· The non-cash consideration in the form of a block reward is based on the total blocks expected to be generated on the Bitcoin network for the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC in accordance with the following formula: the daily hash calculations that the Company provided to the pool operator as a percent of the Bitcoin network’s implied hash calculations as determined by the network difficulty, multiplied by the total Bitcoin network block rewards expected to be generated for the same daily period.

· The non-cash consideration in the form of transaction fees paid by transaction requestors is based on the share of standard transaction fees over the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC. The pool operator calculates the standard transaction fee during the 24-hour period using a rolling 144 block moving average of actual transaction fees.

· The block reward and transaction fees earned by the Company are reduced by mining pool fees charged by the operator for operating the pool based on a rate schedule per the mining pool contract. The mining pool fee is only incurred to the extent the Company performs hash calculations and generates revenue in accordance with the pool operator’s payout formula during the same 24-hour period beginning midnight UTC daily.

The contract is in effect until terminated by either party.

All consideration pursuant to this arrangement is variable. It is not probable that a significant reversal of cumulative revenue will occur. The Company is able to calculate the payout based on the contractual formula, non-cash revenue is estimated and recognized based on the fair value of Bitcoin on the date of contract inception. Fair value of the crypto assets consideration is determined using the midnight UTC spot price of the Company’s principal market for Bitcoin. The Company recognizes non-cash consideration on the same day that control of the contracted service is transferred to the pool operator, which is the same day as the contract inception.

There is no significant financing component in these transactions.

Expenses associated with running the crypto assets mining business, such as equipment depreciation and electricity costs, are recorded as a component of cost of revenues.

Revenue Recognition Hotel Operations

The primary sources of revenue include room and food and beverage revenue from the Company’s hotels.

Rooms revenue represents revenue from the occupancy of the Company’s hotel rooms, which is driven by the occupancy and average daily rate charged. Rooms revenue includes revenue from guest no-shows, daily use, and early/late departure fees. The contracts for room stays with customers are generally short in duration and revenues are recognized as services are provided over the course of the hotel stay at the daily transaction price agreed to under the contract.

Food and beverage revenue consists of revenue from the restaurants and lounges, in room dining and mini bars, and banquet/catering revenue from group and social functions. Payment of the transaction price is due immediately when the customer purchases the goods and services. Therefore, revenue is recognized at a point in time when the physical possession has transferred to the customer.

Reclassifications

Certain prior period amounts have been reclassified for comparative purposes to conform to the current-period financial statement presentation, including the discontinued operations presentation of GIGA financial results. These reclassifications had no effect on previously reported results of operations.

Recently Issued Accounting Standards

On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose specific rate reconciliations, amount of income taxes separated by federal and individual jurisdiction, and the amount of income (loss) from continuing operations before income tax expense (benefit) disaggregated between federal, state, and foreign. The new standard is effective for the Company for its fiscal year beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.

On November 27, 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 is designed to improve the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. The new standard is effective for the Company for its fiscal year beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.

In March 2024, the FASB issued ASU No. 2024-01 Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards (“ASU 2024-01”). ASU 2024-01 improves clarity and operability without changing the guidance. ASU 2024-01 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2024 and early adoption is permitted. The Company does not expect the adoption of ASU 2024-01 to have a material impact on its consolidated financial statements.

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DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2024

Deconsolidation Of Subsidiary And Discontinued Operations

DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS

4. DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS

Presentation of GIGA as Discontinued Operations 

On August 14, 2024, GIGA, filed a petition for reorganization under Chapter 11 of the bankruptcy laws. The filing placed GIGA under the control of the bankruptcy court, which oversees its reorganization and restructuring process. The Company assessed the inherent uncertainties associated with the outcome of the Chapter 11 reorganization process and the anticipated duration thereof, and concluded that it was appropriate to deconsolidate GIGA and its subsidiaries effective on the petition date. The Company recognized a gain on deconsolidation of GIGA of $2.0 million included in net gain (loss) from discontinued operations.

In connection with the Chapter 11 reorganization process, the Company concluded that the operations of GIGA met the criteria for discontinued operations as this strategic shift that will have a significant effect on the Company’s operations and financial results. As a result, the Company has presented the results of operations, cash flows and financial position of GIGA as discontinued operations in the accompanying consolidated financial statements and notes for all periods presented.

The following table presents the assets and liabilities of GIGA operations:

	September 30,		December 31,
	2024		2023
Cash and cash equivalents	$	-	$	3,601,000
Restricted cash		-		700,000
Accounts receivable		-		4,350,000
Inventories		-		6,643,000
Prepaid expenses and other current assets		-		4,859,000
Intangible assets, net		-		1,707,000
Goodwill		-		5,794,000
Property and equipment, net - current		-		1,690,000
Right-of-use assets		-		3,023,000
Total assets discontinued operations		-		32,367,000
Accounts payable and accrued expenses		-		14,005,000
Operating lease liability		-		3,098,000
Notes payable		-		1,174,000
Convertible notes payable		-		4,388,000
Liabilities discontinued operations		-		22,664,000
Net assets of discontinued operations	$	-	$	9,703,000

Net assets of discontinued operations excludes $14.0 million of intercompany notes payable to Hyperscale Data and Ault lending as of December 31, 2024.

The following table presents the results of GIGA operations:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Revenue, products	$	10,678,000		$	10,277,000		$	30,862,000		$	27,724,000
Cost of revenue, products		7,824,000			7,216,000			23,339,000			20,035,000
Gross profit		2,854,000			3,061,000			7,523,000			7,689,000
Operating expenses
Research and development		906,000			672,000			2,617,000			2,111,000
Selling and marketing		286,000			396,000			1,166,000			1,415,000
General and administrative		2,923,000			2,496,000			8,033,000			9,783,000
Total operating expenses		4,115,000			3,564,000			11,816,000			13,309,000
Loss from operations		(1,261,000	)		(503,000	)		(4,293,000	)		(5,620,000	)
Other income (expense):
Interest and other income		1,554,000			105,000			1,594,000			105,000
Interest expense		(415,000	)		(257,000	)		(1,662,000	)		(870,000	)
Change in fair value of warrant liability		-			(1,061,000	)		-			-
Total other income (expense), net		1,139,000			(1,213,000	)		(68,000	)		(765,000	)
Loss before income taxes		(122,000	)		(1,716,000	)		(4,361,000	)		(6,385,000	)
Income tax benefit		-			-			(15,000	)		(11,000	)
Net loss		(122,000	)		(1,716,000	)		(4,346,000	)		(6,374,000	)
Net loss attributable to non-controlling interest		325,000			357,000			1,554,000			1,716,000
Net income (loss) available to common stockholders	$	203,000		$	(1,359,000	)	$	(2,792,000	)	$	(4,658,000	)

The net gain (loss) from discontinued operations for the three and nine months ended September 30, 2024 on the condensed consolidated statement of operations and comprehensive loss includes the gain on deconsolidation as follows:

	For the Three Months Ended September 30, 2024		For the Nine Months Ended September 30, 2024
GIGA net income (loss)	$	203,000	$	(2,792,000	)
Gain on deconsolidation		2,013,000		2,013,000
Net gain (loss) from discontinued operations	$	2,216,000	$	(779,000	)

The cash flow activity related to discontinued operations is presented separately on the statement of cash flows as summarized below:

	For the Nine Months Ended September 30,
	2024			2023
Cash flows from operating activities:
Net loss	$	(4,346,000	)	$	(6,374,000	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		618,000			618,000
Amortization of right-of-use assets		684,000			807,000
Amortization of intangibles		157,000			220,000
Stock-based compensation		(858,000	)		1,594,000
Changes in operating assets and liabilities:
Accounts receivable		(1,638,000	)		(783,000	)
Inventories		1,514,000			1,091,000
Prepaid expenses and other current assets		(1,516,000	)		(706,000	)
Lease liabilities		(667,000	)		(916,000	)
Accounts payable and accrued expenses		(314,000	)		(285,000	)
Net cash used in operating activities		(6,366,000	)		(4,734,000	)
Cash flows from investing activities:
Purchase of property and equipment		(249,000	)		(177,000	)
Cash decrease upon deconsolidation		(3,550,000	)		-
Net cash used in investing activities		(3,799,000	)		(177,000	)
Cash flows from financing activities:
Proceeds from notes payable		2,552,000			2,316,000
Cash contributions from parent		3,383,000			2,361,000
Net cash provided by financing activities		5,935,000			4,677,000
Effect of exchange rate changes on cash and cash equivalents		(71,000	)		153,000
Net increase in cash and cash equivalents and restricted cash		(4,301,000	)		(81,000	)
Cash and cash equivalents and restricted cash at beginning of period		4,301,000			2,195,000
Cash and cash equivalents and restricted cash at end of period	$	-		$	2,114,000
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	946,000		$	862,000

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CHANGE IN PLAN OF SALE OF AGREE HOTEL PROPERTIES

9 Months Ended

Sep. 30, 2024

Change In Plan Of Sale Of Agree Hotel Properties

CHANGE IN PLAN OF SALE OF AGREE HOTEL PROPERTIES

5. CHANGE IN PLAN OF SALE OF AGREE HOTEL PROPERTIES

On April 30, 2024, the Company had a change in plan of sale for its four hotels owned and operated by AGREE. As a result, as of April 30, 2024, the assets no longer met the held for sale criteria and were required to be reclassified as held and used at the lower of adjusted carrying value or the fair value at the date of the not to sell.

For presentation purposes, the assets and liabilities previously held for sale as of December 31, 2023, were reclassified in the December 31, 2023 balance sheet in the accompanying financial statements back to their original asset and liability groups at their previous carrying values. In connection with this change in plan of sale, the Company recorded a loss on impairment of property and equipment related to the real estate assets of AGREE of $8.0 million during the nine months ended September 30, 2024. The fair values of property and equipment related to the real estate assets of AGREE were based on a discounted cash flow income approach for the hotel properties and a comparable sales market approach for the vacant land assets.

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REVENUE DISAGGREGATION

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

REVENUE DISAGGREGATION

6. REVENUE DISAGGREGATION

The following tables summarize disaggregated customer contract revenues and the source of the revenue for the three months ended September 30, 2024 and 2023. Revenues from lending and trading activities included in consolidated revenues were primarily interest, dividend and other investment income, which are not considered to be revenues from contracts with customers under GAAP.

The Company’s disaggregated revenues consisted of the following for the three months ended September 30, 2024:

	TurnOnGreen		Fintech		Sentinum		AGREE		Energy		ROI		Holding Co.		Total
Primary Geographical Markets
North America	$	1,227,000	$	-	$	5,432,000	$	5,512,000	$	12,327,000	$	54,000	$	845,000	$	25,397,000
Europe		1,000		-		-		-		26,000		-		-		27,000
Middle East and other		62,000		-		-		-		-		-		-		62,000
Revenue from contracts with customers		1,290,000		-		5,432,000		5,512,000		12,353,000		54,000		845,000		25,486,000
Revenue, lending and trading activities (North America)		-		5,575,000		-		-		-		-		-		5,575,000
Total revenue	$	1,290,000	$	5,575,000	$	5,432,000	$	5,512,000	$	12,353,000	$	54,000	$	845,000	$	31,061,000
Major Goods or Services
Power supply units and systems	$	1,290,000	$	-	$	-	$	-	$	-	$	-	$	-	$	1,290,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-		4,362,000		-		-		-		-		4,362,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-		902,000		-		-		-		-		902,000
Hotel and real estate operations		-		-		168,000		5,512,000		-		-		-		5,680,000
Crane rental		-		-		-		-		12,327,000		-		-		12,327,000
Other		-		-		-		-		26,000		54,000		845,000		925,000
Revenue from contracts with customers		1,290,000		-		5,432,000		5,512,000		12,353,000		54,000		845,000		25,486,000
Revenue, lending and trading activities		-		5,575,000		-		-		-		-		-		5,575,000
Total revenue	$	1,290,000	$	5,575,000	$	5,432,000	$	5,512,000	$	12,353,000	$	54,000	$	845,000	$	31,061,000
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	22,000	$	-	$	5,432,000	$	5,512,000	$	26,000	$	54,000	$	845,000	$	11,891,000
Services transferred over time		1,268,000		-		-		-		12,327,000		-		-		13,595,000
Revenue from contracts with customers	$	1,290,000	$	-	$	5,432,000	$	5,512,000	$	12,353,000	$	54,000	$	845,000	$	25,486,000

The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2024:

	TurnOnGreen		Fintech		Sentinum		AGREE		Energy		ROI		Holding Co.		Total
Primary Geographical Markets
North America	$	3,565,000	$	-	$	25,926,000	$	13,652,000	$	36,945,000	$	121,000	$	1,819,000	$	82,028,000
Europe		15,000		-		-		-		94,000		-		-		109,000
Middle East and other		171,000		-		-		-		-		-		-		171,000
Revenue from contracts with customers		3,751,000		-		25,926,000		13,652,000		37,039,000		121,000		1,819,000		82,308,000
Revenue, lending and trading activities (North America)		-		4,911,000		-		-		-		-		-		4,911,000
Total revenue	$	3,751,000	$	4,911,000	$	25,926,000	$	13,652,000	$	37,039,000	$	121,000	$	1,819,000	$	87,219,000
Major Goods or Services
Power supply units and systems	$	3,751,000	$	-	$	-	$	-	$	-	$	-	$	-	$	3,751,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-		19,563,000		-		-		-		-		19,563,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-		5,638,000		-		-		-		-		5,638,000
Hotel and real estate operations		-		-		725,000		13,652,000		-		-		-		14,377,000
Crane rental		-		-		-		-		36,945,000		-		-		36,945,000
Other		-		-		-		-		94,000		121,000		1,819,000		2,034,000
Revenue from contracts with customers		3,751,000		-		25,926,000		13,652,000		37,039,000		121,000		1,819,000		82,308,000
Revenue, lending and trading activities		-		4,911,000		-		-		-		-		-		4,911,000
Total revenue	$	3,751,000	$	4,911,000	$	25,926,000	$	13,652,000	$	37,039,000	$	121,000	$	1,819,000	$	87,219,000
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	31,000	$	-	$	25,926,000	$	13,652,000	$	94,000	$	121,000	$	1,817,000	$	41,643,000
Services transferred over time		3,720,000		-		-		-		36,945,000		-		-		40,665,000
Revenue from contracts with customers	$	3,751,000	$	-	$	25,926,000	$	13,652,000	$	37,039,000	$	121,000	$	1,817,000	$	82,308,000

The Company’s disaggregated revenues consisted of the following for the three months ended September 30, 2023:

	TurnOnGreen		Fintech			Sentinum		AGREE		SMC		ROI		Energy		Total
Primary Geographical Markets
North America	$	1,075,000	$	-		$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,248,000
Europe		66,000		-			-		-		-		-		-		66,000
Middle East and other		25,000		-			-		-		-		-		-		25,000
Revenue from contracts with customers		1,166,000		-			7,891,000		5,404,000		15,931,000		18,000		12,929,000		43,339,000
Revenue, lending and trading activities (North America)		-		(249,000	)		-		-		-		-		-		(249,000	)
Total revenue	$	1,166,000	$	(249,000	)	$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,090,000
Major Goods or Services
Power supply units & systems	$	1,074,000	$	-		$	-	$	-	$	-	$	-	$	-	$	1,074,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-			6,389,000		-		-		-		-		6,389,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-			1,169,000		-		-		-		-		1,169,000
Hotel and real estate operations		-		-			333,000		5,404,000		-		-		-		5,737,000
Karaoke machines and related consumer goods		-		-			-		-		15,931,000		-		-		15,931,000
Crane rental		-		-			-		-		-		-		12,490,000		12,490,000
Other		92,000		-					-		-		18,000		439,000		549,000
Revenue from contracts with customers		1,166,000		-			7,891,000		5,404,000		15,931,000		18,000		12,929,000		43,339,000
Revenue, lending and trading activities		-		(249,000	)		-		-		-		-		-		(249,000	)
Total revenue	$	1,166,000	$	(249,000	)	$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,090,000
Timing of Revenue Recognition
Goods transferred at a point in time	$	1,160,000	$	-		$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	439,000	$	30,843,000
Services transferred over time		6,000		-			-		-		-		-		12,490,000		12,496,000
Revenue from contracts with customers	$	1,166,000	$	-		$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,339,000

The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2023:

	TurnOnGreen		Fintech		Sentinum		AGREE		SMC		ROI		Energy		Total
Primary Geographical Markets
North America	$	2,400,000	$	-	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,604,000	$	99,427,000
Europe		77,000		-		-		-		-		-		109,000		186,000
Middle East and other		288,000		-		-		-		-		-		-		288,000
Revenue from contracts with customers		2,765,000		-		24,389,000		12,032,000		21,939,000		63,000		38,713,000		99,901,000
Revenue, lending and trading activities (North America)		-		4,337,000		-				-		-		-		4,337,000
Total revenue	$	2,765,000	$	4,337,000	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,713,000	$	104,238,000
Major Goods or Services
Power supply units & systems	$	2,544,000	$	-	$	-	$	-	$	-	$	-	$	-	$	2,544,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-		21,103,000		-		-		-		-		21,103,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-		2,170,000		-		-		-		-		2,170,000
Hotel and real estate operations		-		-		1,116,000		12,032,000		-		-		-		13,148,000
Karaoke machines and related consumer goods		-		-		-		-		21,939,000		-		-		21,939,000
Crane rental		-		-		-		-		-		-		37,726,000		37,726,000
Other		221,000		-				-		-		63,000		987,000		1,271,000
Revenue from contracts with customers		2,765,000		-		24,389,000		12,032,000		21,939,000		63,000		38,713,000		99,901,000
Revenue, lending and trading activities		-		4,337,000		-		-		-		-		-		4,337,000
Total revenue	$	2,765,000	$	4,337,000	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,713,000	$	104,238,000
Timing of Revenue Recognition
Goods transferred at a point in time	$	11,000	$	-	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	987,000	$	59,421,000
Services transferred over time		2,754,000		-		-		-		-		-		37,726,000		40,480,000
Revenue from contracts with customers	$	2,765,000	$	-	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,713,000	$	99,901,000

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FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy:

	Fair Value Measurement at September 30, 2024
	Total		Level 1		Level 2		Level 3
Assets:
Investment in common stock of Alzamend Neuro, Inc. (“Alzamend”) – a related party	$	131,000	$	131,000	$	-	$	-
Investments in marketable equity securities		687,000		687,000		-		-
Crypto assets		65,000		65,000		-		-
Total assets measured at fair value	$	883,000	$	883,000	$	-	$	-
Liabilities:
Warrant and embedded conversion feature liabilities	$	8,000	$	-	$	-	$	8,000
Total liabilities measured at fair value	$	8,000	$	-	$	-	$	8,000

	Fair Value Measurement at December 31, 2023
	Total		Level 1		Level 2		Level 3
Assets:
Investment in common stock of Alzamend – a related party	$	679,000	$	679,000	$	-	$	-
Investments in marketable equity securities		27,000		27,000		-		-
Cash and marketable securities held in trust account		2,200,000		2,200,000		-		-
Total assets measured at fair value	$	2,906,000	$	2,906,000	$	-	$	-
Liabilities:
Warrant and embedded conversion feature liabilities	$	970,000	$	-	$	-	$	970,000
Total liabilities measured at fair value	$	970,000	$	-	$	-	$	970,000

The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks.

The changes in Level 3 fair value hierarchy during the three and nine months ended September 30, 2024 and 2023 were as follows:

	Level 3 Balance at Beginning of Period		Fair Value Adjustments			Grants		Level 3 Balance at End of Period
Nine months ended September 30, 2024
Warrant liabilities	$	60,000	$	(52,000	)	$	-	$	8,000
Embedded conversion feature liabilities	$	910,000	$	(910,000	)	$	-	$	-
Nine months ended September 30, 2023
Warrant liabilities	$	651,000	$	(4,981,000	)	$	4,330,000	$	-
Embedded conversion feature liabilities	$	2,316,000	$	(3,439,000	)	$	1,352,000	$	229,000

	Level 3 Balance at Beginning of Period		Fair Value Adjustments			Grants		Level 3 Balance at End of Period
Three months ended September 30, 2024
Warrant liabilities	$	578,000	$	(570,000	)	$	-	$	8,000
Embedded conversion feature liabilities	$	155,000	$	(155,000	)	$	-	$	-
Three months ended September 30, 2023
Warrant liabilities	$	2,446,000	$	(2,446,000	)	$	-	$	-
Embedded conversion feature liabilities	$	2,577,000	$	(2,348,000	)	$	-	$	229,000

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Equity Investments for Which Measurement Alternative Has Been Selected

9 Months Ended

Sep. 30, 2024

Equity Investments For Which Measurement Alternative Has Been Selected

Equity Investments for Which Measurement Alternative Has Been Selected

8. Equity Investments for Which Measurement Alternative Has Been Selected

As of September 30, 2024 and December 31, 2023, the Company held equity investments in other securities valued at $5.3 million and $21.8 million, respectively, that were valued using a measurement alternative. These investments are included in other equity securities in the accompanying consolidated balance sheets.

The Company has made cumulative downward adjustments for impairments for equity securities that do not have readily determinable fair values for the nine months ended September 30, 2024 and 2023, totaling $6.3 million and $11.6 million, respectively. Approximately $6.3 million of the impairment charge for the nine months ended September 30, 2024 was reflected in other income (expense) on the condensed consolidated statement of operations and comprehensive loss. Approximately $9.6 million of the impairment charge for the nine months ended September 30, 2023 was reflected in other income (expense) and $2.0 million of the impairment charge related to Fintech lending operations and was recorded against revenue from lending and trading activities on the condensed consolidated statement of operations and comprehensive loss.

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Marketable EQUITY Securities

9 Months Ended

Sep. 30, 2024

Marketable Equity Securities

Marketable EQUITY Securities

9. Marketable EQUITY Securities

Marketable equity securities with readily determinable market prices consisted of the following as of September 30, 2024 and December 31, 2023:

	Marketable equity securities at September 30, 2024
			Gross unrealized		Gross unrealized
	Cost		gains		losses			Fair value
Common shares	$	5,476,000	$	672,000	$	(5,461,000	)	$	687,000

	Marketable equity securities at December 31, 2023
			Gross unrealized		Gross unrealized
	Cost		gains		losses			Fair value
Common shares	$	5,119,000	$	12,000	$	(5,104,000	)	$	27,000

The Company’s investment in marketable equity securities is revalued on each balance sheet date.

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CRYPTO ASSETS

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

CRYPTO ASSETS

10. CRYPTO ASSETS

The following table presents revenue from mined crypto assets for the three and nine months ended September 30, 2024 and 2023:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue from mined crypto assets at Sentinum owned and operated facilities	$	4,362,000	$	6,389,000	$	19,563,000	$	21,103,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		902,000		1,169,000		5,638,000		2,170,000
Revenue, crypto assets mining	$	5,264,000	$	7,558,000	$	25,201,000	$	23,273,000

The following table presents the activities of the crypto assets (included in prepaid expenses and other current assets) for the nine months ended September 30, 2024 and 2023:

	For the Nine Months Ended
	September 30,
	2024			2023
Balance at January 1	$	546,000		$	554,000
Additions of mined crypto assets		19,563,000			21,103,000
Sale of crypto assets		(20,038,000	)		(21,330,000	)
Payments to vendors with crypto assets		(31,000	)		(20,000	)
Payment of notes payable with crypto assets		(506,000	)		-
Payment of interest payable with crypto assets		(142,000	)		-
Realized gain on sale of crypto assets		649,000			404,000
Unrealized gain on crypto assets		24,000			-
Impairment of mined crypto assets		-			(376,000	)
Balance at September 30	$	65,000		$	335,000

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PROPERTY AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

11. PROPERTY AND EQUIPMENT, NET

At September 30, 2024 and December 31, 2023, property and equipment consisted of:

	September 30, 2024			December 31, 2023
Building, land and improvements	$	92,850,000		$	100,184,000
Crypto assets mining equipment		12,162,000			50,640,000
Crane rental equipment		34,500,000			34,469,000
Computer, software and related equipment		11,276,000			10,533,000
Aircraft		15,983,000			15,983,000
Other property and equipment		11,503,000			11,066,000
		178,274,000			222,875,000
Accumulated depreciation and amortization		(17,400,000	)		(27,209,000	)
Property and equipment, net	$	160,874,000		$	195,666,000

Summary of depreciation expense:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Depreciation expense	$	7,533,000	$	9,894,000	$	19,174,000	$	21,823,000

Impairment of Property and Equipment

During the three months ended September 30, 2024, due to increases in the Bitcoin mining difficulty level, which compounded the continued impact of the Bitcoin halving event, we concluded that indicated that an impairment triggering event had occurred. Testing performed indicated the estimated fair value of the Company’s miners to be less than their net carrying value as of September 30, 2024, and an impairment charge of $10.5 million was recognized, decreasing the net carrying value of the Company’s crypto assets mining equipment to their estimated fair value. The Company valued the miners using an income approach utilizing a discounted cash flow and a discount rate of 20%. The Company estimated the cash flow from the miners over a two-year period assuming a utilization rate of 98%, a mining difficulty level of 101.6 trillion, a Bitcoin price of $76,000 and a power cost of $0.055 per kilowatt-hour. The estimated fair value of the Company’s miners is classified in Level 3 of the fair value hierarchy with no observable inputs using a discounted cash flow methodology.

In addition, the Company has recorded $1.2 million and $9.2 million in impairment charges related to real estate assets of AGREE during the three and nine months ended September 30, 2024, respectively.

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INTANGIBLE ASSETS, NET

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET

12. INTANGIBLE ASSETS, NET

At September 30, 2024 and December 31, 2023, intangible assets consisted of:

	Useful Life	September 30, 2024			December 31, 2023
Definite lived intangible assets:
Developed technology	7 years	$	2,081,000		$	1,949,000
Customer list	10 years		1,290,000			1,290,000
Trade names	12 years		1,030,000			1,030,000
			4,401,000			4,269,000
Accumulated amortization			(719,000	)		(222,000	)
Total definite-lived intangible assets		$	3,682,000		$	4,047,000

Certain of the Company’s trade names and trademarks were determined to have an indefinite life. The remaining definite-lived intangible assets are primarily being amortized on a straight-line basis over their estimated useful lives.

Summary of amortization expense:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Amortization expense	$	371,000	$	226,000	$	479,000	$	541,000

As of September 30, 2024, intangible assets subject to amortization have an average remaining useful life of 6.9 years. The following table presents estimated amortization expense for each of the succeeding five calendar years and thereafter.

2024 (remainder)	$	124,000
2025		494,000
2026		494,000
2027		494,000
2028		494,000
2029		370,000
Thereafter		1,212,000
	$	3,682,000

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INVESTMENTS – RELATED PARTIES

9 Months Ended

Sep. 30, 2024

SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]

INVESTMENTS – RELATED PARTIES

13. INVESTMENTS – RELATED PARTIES

Investments in Alzamend, Ault & Company, Inc. (“Ault & Company”) and GIGA at September 30, 2024 and December 31, 2023, were comprised of the following:

Investment in Promissory Notes, Related Parties – Ault & Company and GIGA (Recorded in “Investment in Promissory Notes and Other, Related Party” on the Condensed Consolidated Balance Sheets)

	Interest		September 30,			December 31,
	Rate	Due Date	2024			2023
Promissory note, related party	8%	December 31, 2024	$	2,500,000		$	2,500,000
10% Senior Secured Convertible Promissory Note - GIGA	10%	December 31, 2024		4,383,000			-
12% Senior Secured Subordinated Convertible Promissory Note - GIGA	10%	December 31, 2024		6,750,000			-
12% Senior Secured Subordinated Convertible Promissory Note - GIGA	12%	June 30, 2025		5,194,000			-
Debtor in possession Loan Agreement - GIGA	6%	October 28, 2024		80,000			-
Accrued interest receivable GIGA				768,000			-
Accrued interest receivable Ault & Company				568,000			568,000
Other				211,000			900,000
Allowance for credit losses				(5,668,000	)		-
Total investment in promissory notes and other, related parties			$	14,786,000		$	3,968,000

Summary of interest income, related party, recorded within interest and other income on the condensed consolidated statement of operations:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Interest income, related party	$	557,000	$	50,000	$	1,144,000	$	150,000

At each reporting date, the Company applies its judgment to evaluate the collectability of the note receivable and makes a provision based on the assessed amount of expected credit loss. This judgment is based on parameters such as interest rates, market conditions and creditworthiness of the creditor.

The Company determined that the collectability of certain notes receivables is doubtful based on information available.

Upon the deconsolidation of the GIGA, the Company established an allowance for credit losses of $2.6 million related to notes receivable from GIGA included in net gain (loss) from discontinued operations.

During the three months ended March 31, 2024, due to uncertainties surrounding collection, the Company recorded a loan loss reserve of $3.1 million related to the promissory note from Ault & Company recorded in provision for loan losses, related party, reversed the related accrued receivable and did not record interest income on the note.

Investment in Alzamend Series B Convertible Preferred Stock, Warrants and Common Stock, Related Parties – Alzamend (Recorded in “Investments in Common Stock and Equity Securities, Related Party” on the Condensed Consolidated Balance Sheets)

	Investments in common stock, related parties at September 30, 2024
	Cost		Gross unrealized losses			Fair value
Common shares	$	24,697,000	$	(24,566,000	)	$	131,000
Alzamend series B convertible preferred stock, warrants		2,100,000		-			2,100,000
	$	26,797,000	$	(24,566,000	)	$	2,231,000

	Investments in common stock, related parties at December 31, 2023
	Cost		Gross unrealized losses			Fair value
Common shares	$	24,688,000	$	(24,009,000	)	$	679,000

The following tables summarize the changes in the Company’s investments in Alzamend common stock during the three and nine months ended September 30, 2024 and 2023:

	For the Three Months Ended September 30,
	2024			2023
Balance at July 1	$	304,000		$	5,836,000
Investment in common stock of Alzamend		-			-
Unrealized loss in common stock of Alzamend		(173,000	)		(3,124,000	)
Balance at September 30	$	131,000		$	2,712,000

	For the Nine Months Ended September 30,
	2024			2023
Balance at January 1	$	679,000		$	6,449,000
Investment in common stock of Alzamend		9,000			15,000
Unrealized loss in common stock of Alzamend		(557,000	)		(3,752,000	)
Balance at September 30	$	131,000		$	2,712,000

Ault Lending, LLC (“Ault Lending”) Investment in Alzamend Series B Convertible Preferred Stock and Warrants

	September 30,		December 31,
	2024		2023
Investment in Alzamend preferred stock	$	2,100,000	$	-
Total investment in other investments securities, related party	$	2,100,000	$	-

In connection with a securities purchase agreement entered into with Alzamend in January 2024, the Company purchased 2,100 shares of Alzamend Series B Convertible Preferred Stock and warrants to purchase 2.1 million shares of Alzamend common stock with a five-year term and an exercise price of $1.20 per share for a total purchase price of $2.1 million.

The Agreement provides that Ault Lending may purchase up to $6 million of Alzamend Series B Convertible Preferred Stock in one or more closings. There have been additional closings subsequent to January 2024.

The Company has elected to account for investment in other investments securities, related party, using a measurement alternative under which they are measured at cost and adjusted for observable price changes and impairments.

Messrs. Ault, Horne and Nisser are each paid $50,000 annually by Alzamend.

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EQUITY METHOD INVESTMENT

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INVESTMENT

14. EQUITY METHOD INVESTMENT

Equity Investments in Unconsolidated Entity – Algorhythm Holdings, Inc. (f/k/a The Singing Machine Company) (“SMC”)

The following table summarizes the changes in the Company’s equity investments in an unconsolidated entity, SMC, included in other assets on the condensed consolidated balance sheet, during the nine months ended September 30, 2024:

Rollforward investment in unconsolidated entity	Amount
Beginning balance - January 1, 2024	$	1,957,000
Loss from investment in unconsolidated entity		(1,957,000	)
Ending balance - September 30, 2024	$	-

There was no activity in the investment in the unconsolidated entity account during the three months ended September 30, 2024, prior to the transition from the equity method of accounting on September 5, 2024, as described below. Consequently, the beginning balance, activity, and ending balance for this period were all zero.

On September 5, 2024, three of the Company’s employees resigned from the board of directors of SMC. As a result of the resignations, and as the Company owned less than 20% of SMC at the time, the Company no longer had the ability to exert significant influence over the operating and financial policies of SMC. The Company discontinued the equity method of accounting for the investment in SMC on September 5, 2024. As a result, the Company changed its accounting for SMC to an investment in marketable equity securities and recognized the investment at fair value, with a gain of $1.3 million recognized as revenue from lending and trading activities in the condensed consolidated statement of operations and comprehensive loss.

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ACCOUNTS PAYABLE AND ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

15. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Other current liabilities at September 30, 2024 and December 31, 2023 consisted of:

	September 30,		December 31,
	2024		2023
Accounts payable	$	20,419,000	$	26,777,000
Accrued payroll and payroll taxes		8,773,000		8,237,000
Warrant liabilities		8,000		60,000
Interest payable		8,669,000		4,197,000
Accrued legal		2,439,000		2,340,000
Other accrued expenses		18,166,000		13,811,000
	$	58,474,000	$	55,422,000

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DIVIDEND PAYABLE IN TURNONGREEN COMMON STOCK

9 Months Ended

Sep. 30, 2024

Dividend Payable In Turnongreen Common Stock

DIVIDEND PAYABLE IN TURNONGREEN COMMON STOCK

16. DIVIDEND PAYABLE IN TURNONGREEN COMMON STOCK

In March 2024, the Company, in connection with a planned distribution of its common stock holdings of TurnOnGreen, announced the distribution to its stockholders of 25.0 million shares of TurnOnGreen common stock and warrants to purchase 25.0 million shares of TurnOnGreen common stock, which resulted in an adjustment to additional paid in capital and increase to non-controlling interest of $4.9 million based on the recorded value of the Company’s holdings in TurnOnGreen at the record date of the distribution.

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ROI Transfers of White River Common Stock

9 Months Ended

Sep. 30, 2024

Roi Transfers Of White River Common Stock

ROI Transfers of White River Common Stock

17. ROI Transfers of White River Common Stock

In January of 2024, ROI announced that it had concluded that, for regulatory reasons, ROI would be unable to effect the distribution of its shares of common stock of White River as contemplated by a registration statement previously filed by White River. In an effort to attempt to fulfill its original intent to transfer the shares to ROI shareholders of record as of September 30, 2022, ROI would send such shareholders an agreement whereby qualified shareholders can demonstrate to ROI’s satisfaction that they in fact were beneficial shareholders of ROI’s common or preferred stock as of September 30, 2022 and affirm that they are “accredited investors” by July 26, 2024.

During the nine months ended September 30, 2024, ROI transferred 12.0 million shares of White River common stock with a fair value of $19.2 million at the date of transfer to certain of its accredited investors to resolve the matters discussed above.

In conjunction with the transfers to non-controlling interests, shares of ROI’s investment in White River’s Series A Convertible Preferred Stock were converted into shares of White River common stock, resulting in a non-cash $17.9 million gain on conversion.

Ault Lending Transfer

On February 14, 2024, ROI transferred 2.5 million shares of White River common stock with a carryover basis of $0.5 million and a fair value of $7.5 million on the date of transfer to Ault Lending.

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REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY

9 Months Ended

Sep. 30, 2024

Redeemable Noncontrolling Interests In Equity Of Subsidiary Liability

REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY

18. REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY

The Company records redeemable noncontrolling interests in equity of subsidiaries to reflect the economic interests of the common stockholders in Ault Disruptive.

Redemption of Shares

On September 27, 2024, Ault Disruptive announced that it will redeem all of its outstanding shares of common stock which occurred as of the close of business on October 11, 2024, because Ault Disruptive would not consummate an initial business combination within the time period required by its Amended and Restated Certificate of Incorporation, as amended. During the nine months ended September 30, 2024, shares of Ault Disruptive common stock were redeemed for an aggregate redemption amount of $1.5 million.

On October 11, 2024, all remaining shares of Ault Disruptive common stock were redeemed for a redemption amount of $0.8 million.

The following table summarizes the changes in the Company’s redeemable noncontrolling interests in equity of subsidiaries during the three months ended September 30, 2024 and 2023:

	For the Three Months Ended
	September 30,
	2024		2023
Redeemable noncontrolling interests in equity of subsidiaries as of July 1	$	795,000	$	1,951,000
Remeasurement of carrying value to redemption value		9,000		228,000
Redeemable noncontrolling interests in equity of subsidiaries as of September 30	$	804,000	$	2,179,000

The following table summarizes the changes in the Company’s redeemable noncontrolling interests in equity of subsidiaries during the nine months ended September 30, 2024 and 2023:

	For the Nine Months Ended
	September 30,
	2024			2023
Redeemable noncontrolling interests in equity of subsidiaries as of January 1	$	2,224,000		$	117,993,000
Redemption of Ault Disruptive common stock		(1,463,000	)		(120,064,000	)
Remeasurement of carrying value to redemption value		43,000			4,250,000
Redeemable noncontrolling interests in equity of subsidiaries as of September 30	$	804,000		$	2,179,000

Merger Agreement

On June 23, 2024, Ault Disruptive entered into a Merger Agreement with GIGA, intending for GIGA to become a majority owned subsidiary and for Ault Disruptive to be renamed Gresham Worldwide, Inc., trading under the ticker “GWWI” on the NYSE American. However, due to GIGA’s bankruptcy filing, the merger agreement was subsequently terminated.

On August 14, 2024, GIGA filed a petition for reorganization under Chapter 11 of the bankruptcy laws.

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NOTES PAYABLE

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

NOTES PAYABLE

19. NOTES PAYABLE

Notes payable at September 30, 2024 and December 31, 2023, were comprised of the following:

	Collateral	Guarantors	Interest rate	Due date	September 30, 2024			December 31, 2023
AGREE secured construction loans	AGREE hotels	-	7.0%	January 1, 2025	$	68,750,000		$	67,632,000
Circle 8 revolving credit facility	Circle 8 cranes with a book value of $29.6 million	-	10.0%	December 16, 2025		13,651,000			15,907,000
16% promissory note (in default)	-	Ault & Company and Milton C. Ault, III	16.0% (default rate of 24.0%)	July 15, 2024		5,572,000			2,572,000
Circle 8 equipment financing notes	Circle 8 equipment with a book value of $4.3 million	-	10.5%	September 15, 2025 through June 15, 2027		3,829,000			5,629,000
15% term notes (in default as of November 1, 2024)	-	Milton C. Ault, III	15.0% (default rate of 22.99%)	October 31, 2024		5,399,000			-
8% demand loans	-	-	8.0%	Upon demand		-			950,000
Sentinum note payable	-	-	12.5%	-		-			1,067,000
ROI promissory note (in default)	-	-	15.0% (default rate of 18.0%)	April 30, 2024		2,094,000			-
Other ($0.9 million in default)	-	-	-	-		5,501,000			3,808,000
Total notes payable					$	104,796,000		$	97,565,000
Less:
Unamortized debt discounts						(306,000	)		(453,000	)
Total notes payable, net					$	104,490,000		$	97,112,000
Less: current portion						(87,730,000	)		(11,692,000	)
Notes payable – long-term portion					$	16,760,000		$	85,420,000

OID Only Term Note

On July 2, 2024, the Company entered into a term note agreement with institutional investors for the sale of up to $2.6 million in term notes, of which the principal amount of $1.8 million was immediately funded. A term note was issued at a discount, with net proceeds to the Company of $1.5 million. The term note does not accrue any interest. The term note was scheduled to mature on August 2, 2024. The term note is guaranteed by Mr. Ault. The term note maturity was extended to October 16, 2024, and an extension fee of $0.2 million accrues monthly until the term note is paid in full. The term note is included in “Other” in the table above.

ROI 15% Term Note

On February 9, 2024, ROI entered into a $1.77 million term note agreement with an institutional investor bearing interest of 15%. The term note was issued at a discount, with net proceeds to ROI of $1.75 million. The term note was scheduled to mature February 14, 2024. This note has been guaranteed by Ault & Company and Mr. Ault. The term note was subsequently amended to increase the principal amount due to $2.1 million, increase the interest rate to 18% and extend the maturity date to April 30, 2024. The term note is in default as of May 1, 2024.

15% Term Notes

Between April 29, 2024 and August 29, 2024, the Company entered into note agreements totaling $5.7 million with an institutional investor bearing interest of 15%. The term notes were issued at a discount, with net proceeds to the Company of $5.1 million. The term notes were amended to extend the maturity dates to October 31, 2024. The note is default as of November 1, 2024.

$20 Million Credit Agreement

On June 4, 2024 the Company entered into a Loan Agreement (the “Credit Agreement”) with two institutional investors (collectively, the “Lender”). The Credit Agreement provides for an unsecured, non-revolving credit facility with an aggregate draw limit of $20.0 million. However, the Company is restricted to having no more than $2.0 million in principal amount of outstanding advances at any given time under the Credit Agreement. As of September 30, 2024, $2.0 million has been advanced, exclusive of a $0.4 million original issue discount (“OID”).

All loans under the Credit Agreement will be evidenced by a promissory note. The Lender made an Advance to the Company of $1.5 million on the execution date. The advances are due December 4, 2024, provided, however, that if on such date, the Company has executed an equity line of credit agreement relating to the sale of shares of the Company’s 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, has an effective registration statement relating thereto and is not currently in default under such agreement, then the maturity date shall be automatically extended until June 4, 2025. The Lender is not obligated to make any further Advances under the Credit Agreement after the maturity date. Advances under the Credit Agreement will include the addition of an OID of 20% to the amount of each Advance and all Advances will bear interest at the rate of 15.0% per annum and may be repaid at any time without penalty or premium.

The obligations of the Company under the Credit Agreement are secured by a guaranty provided by Milton C. Ault, the Executive Chairman of the Company.

Circle 8 revolving credit facility

On October 16, 2024, Circle 8 was in default related to reporting requirements under the terms of their revolving credit facility. Circle 8 was able to obtain a waiver on November 19, 2024 to cure the event of default.

Notes Payable Maturities

The contractual maturities of the Company’s notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of September 30, 2024 were:

Year
2024 (remainder)	$	19,261,000
2025		84,124,000
2026		879,000
2027		266,000
2028		266,000
	$	104,796,000

Interest Expense

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Contractual interest expense	$	5,350,000	$	4,986,000	$	10,725,000	$	9,645,000
Forbearance fees		1,050,000		518,000		3,300,000		7,319,000
Amortization of debt discount		1,366,000		634,000		4,800,000		18,216,000
Total interest expense	$	7,766,000	$	6,138,000	$	18,825,000	$	35,180,000

XML

NOTES PAYABLE, RELATED PARTY

9 Months Ended

Sep. 30, 2024

Notes Payable Related Party

NOTES PAYABLE, RELATED PARTY

20. NOTES PAYABLE, RELATED PARTY

Notes payable, related party at September 30, 2024 and December 31, 2023, were comprised of the following:

	Interest rate	Due date	September 30, 2024		December 31, 2023
Notes from officers – Hyperscale Data	18%	-	$	-	$	98,000
Notes from officers - TurnOnGreen	14%	Past due		46,000		51,000
Notes from board member - ROI	No interest	Upon demand		-		90,000
Ault & Company advances	No interest	Upon demand		-		1,909,000
Other related party advances	No interest	Upon demand		125,000		124,000
Total notes payable			$	171,000	$	2,272,000

Summary of interest expense, related party, recorded within interest expense on the condensed consolidated statement of operations:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Interest expense, related party	$	1,000	$	-	$	20,000	$	-

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CONVERTIBLE NOTES

9 Months Ended

Sep. 30, 2024

Convertible Notes

CONVERTIBLE NOTES

21. CONVERTIBLE NOTES

Convertible notes payable at September 30, 2024 and December 31, 2023, were comprised of the following:

	Conversion price per share	Interest rate	Due date	September 30, 2024			December 31, 2023
Convertible promissory note –OID only - in default	90% of 5-day VWAP	OID Only	September 28, 2024	$	393,000		$	1,673,000
10% OID convertible promissory note – in default as of October 20, 2024	$0.17	18%	October 19, 2024		4,730,000			-
Avalanche International Corp. (“AVLP”) convertible promissory notes, principal	$0.35 (AVLP stock)	7%	August 22, 2025		9,911,000			9,911,000
ROI senior secured convertible note - in default (1)	$0.11 (ROI stock)	OID Only	April 27, 2024		4,245,000			6,513,000
Fair value of embedded conversion options					-			910,000
Total convertible notes payable					19,279,000			19,007,000
Less: unamortized debt discounts					(101,000	)		(2,179,000	)
Total convertible notes payable, net of financing cost, long term				$	19,178,000		$	16,828,000
Less: current portion					(9,725,000	)		(7,375,000	)
Convertible notes payable, net of financing cost – long-term portion				$	9,453,000		$	9,453,000

(1) See Arena litigation discussed in Note 22 below.

10% OID Convertible Promissory Note

On July 18, 2024, the Company entered into a note purchase agreement (the “Purchase Agreement”) with an institutional investor (the “Investor”) pursuant to which the Investor purchased from the Company, on July 19, 2024, in a registered direct offering, a $5.4 million 10% OID Convertible Promissory Note (the “Note”). The Note was sold to the Investor for a purchase price of $4.9 million, which included an OID of $0.5 million. The Note accrues interest at the rate of 15%. The Note matured on October 19, 2024 and is in default as of October 20, 2024. The Note is convertible into shares of Class A common stock at a conversion price of $0.17 per share.

During the three and nine months ended September 30, 2024, the Investor converted $0.7 million of the Note into 3.0 million shares of Class A common stock that had a fair value of $0.9 million at the time of conversion and the Company recognized a $0.2 million loss on extinguishment of debt.

6% Convertible Promissory Notes

On March 11, 2024, the Company entered into a note purchase agreement with two institutional investors pursuant to which the investors agreed to acquire, and the Company agreed to issue and sell in a registered direct offering to the investors an aggregate of $2.0 million convertible promissory notes, bearing interest of 6%. The convertible promissory notes were converted into shares of Class A common stock in May 2024 at a conversion price of $0.35 per share and the Company recognized a $0.7 million loss on extinguishment of debt.

ROI Gain on Extinguishment of Senior Secured Convertible Notes

During the nine months ended September 30, 2024, ROI converted $2.3 million of ROI senior secured convertible notes that had a fair value of $0.9 million at the time of conversion and recognized a $1.4 million gain on extinguishment of debt.

Contractual Maturities

The contractual maturities of the Company’s convertible notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of September 30, 2024 were:

Year	Principal
2024	$	9,368,000
2025		9,911,000
	$	19,279,000

Significant inputs associated with the embedded conversion options include:

	September 30, 2024	December 31, 2023	At Inception
Contractual term in years	Variable	2.7	1.0
Volatility	75%	82%	111%
Dividend yield	0%	0%	0%
Risk-free interest rate	4.0%	4.0%	3.5%

Activity related to the embedded conversion option derivative liabilities for the nine months ended September 30, 2024 was as follows:

Balance as of January 1, 2024	$	910,000
Change in fair value		(910,000	)
Ending balance as of September 30, 2024	$	-

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

22. COMMITMENTS AND CONTINGENCIES

Contingencies

Litigation Matters

The Company is involved in litigation arising from other matters in the ordinary course of business. The Company is regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving labor and employment, commercial disputes, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil penalties, or other adverse consequences.

Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. The Company records a liability when it believes that it is probable that a loss has been incurred and the amount can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the reasonably possible loss. The Company evaluates developments in its legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and makes adjustments as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters.

Arena Litigation

Arena Investors, LP (ROI Litigation)

On May 30, 2024, Arena Investors, LP (“Arena”), in its capacity as collateral agent for five noteholders, filed a filed a Complaint (the “ROI Complaint”) in the Supreme Court of the State of New York, County of New York against the Company and ROI, in action captioned Arena Investors, LP v. Ault Alliance, Inc. and RiskOn International, Inc., Index No. 652792/2024.

The ROI Complaint asserts a cause of action for breach of contract against the Company based on a Guaranty, dated April 27, 2023, and entered into, amongst others, the Company and Arena, and seeks damages in the amount of in excess of $3.75 million, plus interest, attorneys’ fees, costs, expenses, and disbursements.

The ROI Complaint also asserts a cause of action for breach of contract against ROI based on an alleged breach of that certain Security Agreement, dated April 27, 2023, and entered into among ROI and Arena. In connection with this cause of action, Arena seeks, among other things, costs and expenses from the Company and ROI.

On July 31, 2024, the Company and ROI filed a motion to dismiss seeking to partially dismiss the ROI Complaint, as against the Company, and to dismiss the Compliant, in its entirety, as against ROI.

The Motion has been fully briefed and is currently pending before the Court.

Based on the Company’s assessment of the facts underlying the claims, the uncertainty of litigation, and the preliminary stage of the case, the Company cannot reasonably estimate the potential loss or range of loss that may result from this action. Notwithstanding, the Company has recorded the unpaid portion of the notes. An unfavorable outcome may have a material adverse effect on the Company’s business, financial condition and results of operations.

Arena Investors, LP (Gresham Litigation)

On June 6, 2024, Arena, in its capacity as collateral agent for Arena and Walleye Opportunities Master Fund Ltd. (“Walleye”), filed a Complaint (the “Complaint”) in the Supreme Court of the State of New York, County of New York against the Company and GIGA, in action captioned Arena Investors, LP v. Gresham Worldwide, Inc. f/k/a Giga-Tronics Incorporated and Ault Alliance, Inc., Index No. 652898/2024.

On July 8, 2024, Arena filed an Amended Complaint (the “Amended Complaint”) in the above-referenced action.  The Amended Complaint asserts a cause of action against the Company for declaratory and injunctive relief seeking an injunction enjoining the Company, and its agent, affiliates, servants, and employees from taking actions in breach of that certain Subordination Agreement, dated January 9, 2023, and entered into among Walleye, Arena, and the Company.

The Amended Complaint also asserts causes of action for breach of contract against GIGA based on two discrete convertible promissory notes (the “Notes”) that GIGA entered into with each of Arena and Walleye, as well as a claim for breach duty of good faith and fair dealing, against GIGA, and seeks, among other things, monetary damages in excess of $4.2 million, with interest thereon, attorneys’ fees, costs, and disbursements.  The Amended Complaint further asserts another cause of action against GIGA for breach of contract seeking declaratory and injunctive relief based on alleged inspection rights contained in a Security Agreement, dated January 9, 2023 (the “Security Agreement”), and entered into between the Walleye, Arena, and GIGA, which seeks the issuance of an injunction related to such alleged inspection rights, plus the costs and out-of-pocket expenses associated with the enforcement of same.

On July 12, 2024, the Court granted injunctive relief to Arena and ordered GIGA to comply with the inspection rights provision of the Security Agreement by July 17, 2024.

On July 19, 2024, Arena voluntarily discontinued its cause of action for breach duty of good faith and fair dealing claim against GIGA.

On July 29, 2024, the Company and GIGA filed a motion to dismiss, strike, and for sanctions (the “Motion”), in response to the Amended Complaint, on the grounds that, amongst other things, the underlying Notes are criminally usurious under New York.

On August 14, 2024, GIGA filed a petition for reorganization under Chapter 11 of the bankruptcy laws.

On November 12, 2024, GIGA removed the state court action to the United States District Court for the Southern District of New York.

Based on the Company’s assessment of the facts underlying the claims, the uncertainty of litigation, and the preliminary stage of the case, the Company cannot reasonably estimate the potential loss or range of loss that may result from this action. Notwithstanding, the Company has recorded the unpaid portion of the Notes. An unfavorable outcome may have a material adverse effect on the Company’s business, financial condition and results of operations.

Other Litigation Matters

With respect to the Company’s other outstanding matters, based on the Company’s current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on the Company’s business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. 

The Company had accrued loss contingencies related to litigation matters of $2.4 million and $2.3 million as of September 30, 2024 and December 31, 2023, respectively.

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STOCKHOLDERS’ EQUITY

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

STOCKHOLDERS’ EQUITY

23. STOCKHOLDERS’ EQUITY

Reverse Stock Split

On January 12, 2024, pursuant to the authorization provided by the Company’s stockholders at the annual meeting of stockholders, the Company’s board of directors approved an amendment to the Certificate of Incorporation to effectuate a reverse stock split of the Company’s issued and outstanding common stock by a ratio of one-for-twenty-five (the “1-for-25 Reverse Split”). The 1-for-25 Reverse Split did not affect the number of authorized shares of common stock, preferred stock or their respective par value per share. As a result of the 1-for-25 Reverse Split, each twenty-five shares of common stock issued and outstanding prior to the 1-for-25 Reverse Split were converted into one share of common stock. The 1-for-25 Reverse Split became effective in the State of Delaware on January 16, 2024.

2023 Issuances

Common ATM Offering

During the three and nine months ended September 30, 2024, the Company sold an aggregate of 0 and 25.6 million shares of Class A common stock pursuant to the At-The-Market issuance sales agreement, as amended, entered into with Ascendiant Capital Markets, LLC in 2023 (the “2023 Common ATM Offering”) for gross proceeds of $0 and $14.6 million, respectively.

Series C Convertible Preferred Stock Offering, Related Party

During the three and nine months ended September 30, 2024, the Company sold to Ault & Company an aggregate of 300 and 2,800 shares of Series C Preferred Stock and Warrants to purchase 0.1 million and 0.8 million shares of Class A common stock, for a total purchase price of $0.3 million and $2.8 million, respectively.

Amendment to Loan and Guarantee Agreement

On September 17, 2024, the loan and guarantee agreement, dated as of December 14, 2023, as amended, pursuant to which the Company has guaranteed financial obligations of Ault & Company borrowings, was amended regarding the Company’s obligations to fund the restricted cash Segregated Account.

The Company agreed to deposit in the Segregated Account: (i) $0.4 million monthly commencing on September 30, 2024 and ending on February 28, 2025; and (ii) $0.5 million monthly commencing on March 31, 2025 and ending on the earlier of the term loan maturity date, prepayment of the term loan in full or the date on which the balance of the Segregated Account exceeds 110% of the outstanding balance of the term loan. As of September 30, 2024, the Company had deposited $6.5 million in the Segregated Account. In October 2024, the Company deposited an additional $0.4 million in the Segregated Account.

ELOC Purchase Agreement

On June 20, 2024, the Company entered into a purchase agreement, as amended on November 1, 2024 (the “ELOC Purchase Agreement”) with Orion Equity Partners, LLC (“Orion”), which provides that, upon the terms and subject to the conditions and limitations set forth therein, the Company has the right to direct Orion to purchase up to an aggregate of $37.5 million of shares of the Company’s 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share (the “Preferred Shares”) over the 36-month term of the ELOC Purchase Agreement at a purchase price equal to 91% of the average closing stock price during the seven consecutive trading days immediately preceding a given purchase date. Under the ELOC Purchase Agreement, after the satisfaction of certain commencement conditions, including, without limitation, the effectiveness of a resale registration statement registering the Preferred Shares for sale (the “Registration Statement”).

The ELOC Purchase Agreement may be terminated by the Company at any time after commencement, at its discretion, provided that at the time of termination, the Company does not have any outstanding amounts owed to the Lenders, who are affiliates of Orion, pursuant to the Credit Agreement.

There have been no purchases under the ELOC Purchase Agreement.

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INCOME TAXES

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

24. INCOME TAXES

The Company calculates its interim income tax provision in accordance with ASC Topic 270, Interim Reporting, and ASC Topic 740, Income Taxes. The Company’s effective tax rate (“ETR”) from continuing operations was 0.1% and 2.0% for the three months ended September 30, 2024 and 2023, respectively, and (0.21%) and 0.4% for the nine months ended September 30, 2024 and 2023, respectively. The Company recorded an income tax provision of $67,000 and $0.1 million for the three months ended September 30, 2024 and 2023, respectively, and an income tax provision of $47,000 and an income tax provision of $0.5 million for the nine months ended September 30, 2024 and 2023, respectively. The difference between the ETR and federal statutory rate of 21% is primarily attributable to items recorded for GAAP but permanently disallowed for U.S. federal income tax purposes and changes in valuation allowance.

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NET LOSS PER SHARE

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

NET LOSS PER SHARE

25. NET LOSS PER SHARE

Net loss per share is computed by dividing the net loss to common stockholders by the weighted average number of common shares outstanding. The calculation of the basic and diluted earnings per share is the same for all periods presented as the effect of the potential common stock equivalents is anti-dilutive due to the Company’s net loss position for all periods presented. Anti-dilutive securities, which are convertible into or exercisable for the Company’s common stock, consisted of the following at September 30, 2024 and 2023:

	September 30,		September 30,
	2024		2023
Convertible preferred stock		264,322,000		-
Warrants		15,006,000		2,000
Convertible notes		315,000		-
Stock options		1,000		1,000
Total		279,644,000		3,000

XML

SEGMENT AND CUSTOMERS INFORMATION

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

SEGMENT AND CUSTOMERS INFORMATION

26. SEGMENT AND CUSTOMERS INFORMATION

The Company had the following reportable segments as of September 30, 2024 and 2023; see Note 1 for a brief description of the Company’s business.

The following data presents the revenues, expenditures and other operating data of the Company and its operating segments for the three and nine months ended September 30, 2024:

Nine Months Ended September 30, 2024
	TurnOnGreen			Fintech			Sentinum			AGREE			Energy			ROI			Holding Co.			Total
Revenue	$	3,751,000		$	-		$	-		$	-		$	94,000		$	121,000		$	1,819,000		$	5,785,000
Revenue, crypto assets mining		-			-			25,201,000			-			-			-			-			25,201,000
Revenue, hotel and real estate operations		-			-			725,000			13,652,000			-			-			-			14,377,000
Revenue, crane operations		-			-			-			-			36,945,000			-			-			36,945,000
Revenue, lending and trading activities		-			4,911,000			-			-			-			-			-			4,911,000
Total revenues	$	3,751,000		$	4,911,000		$	25,926,000		$	13,652,000		$	37,039,000		$	121,000		$	1,819,000		$	87,219,000
Depreciation and amortization expense	$	73,000		$	-		$	12,322,000		$	2,162,000		$	3,513,000		$	57,000		$	1,526,000		$	19,653,000
Impairment of property and equipment	$	-		$	-		$	10,500,000		$	9,246,000		$	-		$	-		$	-		$	19,746,000
(Loss) income from operations	$	(2,781,000	)	$	3,634,000		$	(11,066,000	)	$	(8,850,000	)	$	1,464,000		$	(15,891,000	)	$	(14,379,000	)	$	(47,869,000	)
Interest expense	$	-		$	(5,000	)	$	(122,000	)	$	(5,345,000	)	$	(2,693,000	)	$	(2,215,000	)	$	(8,445,000	)	$	(18,825,000	)
Capital expenditures for the nine months ended September 30, 2024	$	53,000		$	-		$	1,675,000		$	774,000		$	2,054,000		$	112,000		$	95,000		$	4,763,000
Segment identifiable assets as of September 30, 2024	$	3,755,000		$	12,787,000		$	37,249,000		$	81,331,000		$	50,537,000		$	1,309,000		$	44,230,000		$	231,198,000

Three Months Ended September 30, 2024
	TurnOnGreen			Fintech		Sentinum			AGREE			Energy			ROI			Holding Co.			Total
Revenue	$	1,290,000		$	-	$	-		$	-		$	26,000		$	54,000		$	845,000		$	2,215,000
Revenue, crypto assets mining		-			-		5,264,000			-			-			-			-			5,264,000
Revenue, hotel and real estate operations		-			-		168,000			5,512,000			-			-			-			5,680,000
Revenue, crane operations		-			-		-			-			12,327,000			-			-			12,327,000
Revenue, lending and trading activities		-			5,575,000		-			-			-			-			-			5,575,000
Total revenues	$	1,290,000		$	5,575,000	$	5,432,000		$	5,512,000		$	12,353,000		$	54,000		$	845,000		$	31,061,000
Depreciation and amortization expense	$	25,000		$	-	$	4,170,000		$	1,771,000		$	1,426,000		$	19,000		$	493,000		$	7,904,000
Impairment of property and equipment	$	-		$	-	$	10,500,000		$	1,291,000		$	-		$	-		$	-		$	11,791,000
(Loss) income from operations	$	(1,479,000	)	$	4,484,000	$	(13,887,000	)	$	(1,268,000	)	$	514,000		$	(8,877,000	)	$	(4,082,000	)	$	(24,595,000	)
Interest expense	$	157,000		$	3,000	$	(4,000	)	$	(2,362,000	)	$	(682,000	)	$	328,000		$	(5,206,000	)	$	(7,766,000	)
Capital expenditures for the three months ended September 30, 2024	$	45,000		$	-	$	690,000		$	112,000		$	188,000		$	53,000		$	22,000		$	1,110,000

The following data presents the revenues, expenditures and other operating data of the Company and its operating segments for the three and nine months ended September 30, 2023:

Nine Months Ended September 30, 2023
	TurnOnGreen			Fintech		Sentinum			AGREE			Ault Disruptive			SMC			Energy			ROI			Holding Co.			Total
Revenue, product	$	2,765,000		$	-	$	-		$	-		$	-		$	21,939,000		$	987,000		$	63,000		$	-		$	25,754,000
Revenue, crypto assets mining		-			-		23,273,000			-			-			-			-			-			-			23,273,000
Revenue, hotel and real estate operations							1,116,000			12,032,000																		13,148,000
Revenue, lending and trading activities		-			4,337,000		-			-			-			-			-			-			-			4,337,000
Revenue, crane operations		-			-		-			-			-			-			37,726,000			-			-			37,726,000
Total revenues	$	2,765,000		$	4,337,000	$	24,389,000		$	12,032,000		$	-		$	21,939,000		$	38,713,000		$	63,000		$	-		$	104,238,000
Depreciation and amortization expense	$	68,000		$	-	$	14,362,000		$	2,408,000		$	-		$	779,000		$	3,053,000		$	152,000		$	1,556,000		$	22,378,000
(Loss) income from operations	$	(4,067,000	)	$	1,091,000	$	(4,363,000	)	$	(349,000	)	$	(1,052,000	)	$	(4,598,000	)	$	(30,216,000	)	$	(33,590,000	)	$	(20,011,000	)	$	(97,155,000	)
Capital expenditures for the nine months ended September 30, 2023	$	131,000		$	-	$	1,426,000		$	6,035,000		$	-		$	383,000		$	3,319,000		$	407,000		$	2,906,000		$	14,607,000
Segment identifiable assets as of December 31, 2023	$	4,995,000		$	17,027,000	$	59,903,000		$	90,991,000		$	2,347,000		$	-		$	51,254,000		$	9,937,000		$	43,943,000		$	280,397,000

Three Months Ended September 30, 2023
	TurnOnGreen			Fintech			Sentinum			AGREE		Ault Disruptive			SMC		Energy		ROI			Holding Co.			Total
Revenue, product	$	1,166,000		$	-		$	-		$	-	$	-		$	15,931,000	$	439,000	$	18,000		$	-		$	17,554,000
Revenue, crypto assets mining		-			-			7,558,000			-		-			-		-		-			-			7,558,000
Revenue, commercial real estate leases								333,000			5,404,000															5,737,000
Revenue, lending and trading activities		-			(249,000	)		-			-		-			-		-		-			-			(249,000	)
Revenue, crane operations		-			-			-			-		-			-		12,490,000		-			-			12,490,000
Total revenues	$	1,166,000		$	(249,000	)	$	7,891,000		$	5,404,000	$	-		$	15,931,000	$	12,929,000	$	18,000		$	-		$	43,090,000
Depreciation and amortization expense	$	24,000		$	-		$	5,792,000		$	774,000	$	-		$	338,000	$	1,073,000	$	32,000		$	528,000		$	8,561,000
(Loss) income from operations	$	(1,498,000	)	$	(1,039,000	)	$	(2,661,000	)	$	1,050,000	$	(214,000	)	$	181,000	$	2,505,000	$	(13,315,000	)	$	(5,359,000	)	$	(20,350,000	)
Capital expenditures for the three months ended September 30, 2023	$	121,000		$	-		$	261,000		$	518,000	$	-		$	199,000	$	1,983,000	$	-		$	314,000		$	3,396,000

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CONCENTRATIONS OF CREDIT AND REVENUE RISK

9 Months Ended

Sep. 30, 2024

Concentrations Of Credit And Revenue Risk

CONCENTRATIONS OF CREDIT AND REVENUE RISK

27. CONCENTRATIONS OF CREDIT AND REVENUE RISK

Significant customers are those that represent more than 10% of the Company’s total revenue or accounts receivable balances for the periods and as of each balance sheet date presented. For each significant customer, revenue as a percentage of total revenue and gross accounts receivable as a percentage of total gross accounts receivable as of the periods presented were as follows:

	Accounts Receivable		Revenue
	September 30,	December 31,	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2024	2023	2024	2023	2024	2023
Customer A	*	*	14%	*	22%	*
Customer B	*	*	*	*	*	11%
Customer C	*	17%	*	*	*	*

* less than 10%

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

28. SUBSEQUENT EVENTS

Additional Closings of Series C Preferred Stock, Related Party

In October and November 2024, the Company sold to Ault & Company an aggregate of 2,230 shares of Series C Preferred Stock and Warrants to purchase 0.7 million shares of Class A common stock, for a total purchase price of $2.2 million.

Agreement to Sell St. Petersburg Property

On October 2, 2024, Third Avenue Apartments LLC, a wholly owned indirect subsidiary of the Company, entered into a contract of sale with a third-party purchaser and agreed to sell its real estate property in St. Petersburg, Florida for $13.2 million. The closing of the sale of the property is expected to occur on or before December 31, 2024. The Company is obligated to pay $11 million of the purchase price into the segregated account for the benefit of its senior secured lenders. Based on the expected sale price of the St. Petersburg property, the Company recorded an impairment charge of $1.3 million during the three and nine months ended September 30, 2024 in the condensed consolidated statement of operations and comprehensive loss.

10.00% Series E Cumulative Redeemable Perpetual Preferred Stock (the “Series E Preferred Stock”)

On November 11, 2024 the Company filed a Certificate of Designation, Rights and Preferences (the “Certificate of Designation”) with the Secretary of State of the State of Delaware to establish the preferences, voting powers, limitations as to dividends or other distributions, qualifications, terms and conditions of redemption and other terms and conditions of the Company’s Series E Preferred Stock. The following is a summary description of those terms and the general effect of the issuance of the shares of Series E Preferred Stock on the Company’s other classes of registered securities.

The Series E Preferred Stock will, as to dividend rights and rights as to the distribution of assets upon the Company’s liquidation, dissolution or winding-up, rank: (1) senior to all classes or series of Common Stock and to all other equity securities issued by the Company other than equity securities referred to in clauses (2) and (3); (2) on parity with any future class or series of the Company’s equity securities expressly designated as ranking on parity with the Series E Preferred Stock, (3) junior to the Company’s Series A Cumulative Redeemable Perpetual Preferred Stock and its Series C Convertible Preferred Stock; and all equity securities issued by the Company expressly designated as ranking senior to the Series E Preferred Stock; and (4) junior to all the Company’s existing and future indebtedness.

To the extent the shares of Series E Preferred Stock are issued, the Company will pay cumulative cash dividends on the Series E Preferred Stock when, as and if declared by its board of directors (or a duly authorized committee of its board of directors), only out of funds legally available for payment of dividends. Dividends on the Series E Preferred Stock will accrue on the stated amount of $25.00 per share of the Series E Preferred Stock at a rate per annum equal to 10.00% (equivalent to $3.00 per year), payable monthly in arrears.

The Series E Preferred Stock is redeemable by the Company. Holders of shares of the Series E Preferred Stock generally will have no voting rights, except as required by law and as provided in the Certificate of Designation. Voting rights for holders of the Series E Preferred Stock exist primarily with respect to material and adverse changes in the terms of the Series E Preferred Stock and the creation of additional classes or series of preferred stock that rank senior to the Series E Preferred Stock.

Further, unless the Company has received the approval of two-thirds of the votes entitled to be cast by the holders of Series E Preferred Stock, the Company will not effect any consummation of a binding share exchange or reclassification of the Series E Preferred Stock or a merger or consolidation of the Company with another entity, unless (a) the shares of Series E Preferred Stock remain outstanding or, in the case of a merger or consolidation with respect to which the Company is not the surviving entity, the shares of Series E Preferred Stock are converted into or exchanged for preference securities, or (b) such shares remain outstanding or such preference securities are not materially less favorable than the Series E Preferred Stock immediately prior to such consummation.

Reverse Stock Split

At the June 28, 2024 annual meeting of stockholders, voted upon and approved Proposal 5, an amendment to the Company’s Certificate of Incorporation to effect a Reverse Split with a ratio of not less than one-for-two and not more than one-for-thirty-five at any time prior to June 27, 2025, with the exact ratio to be set at a whole number within this range as determined by the Company’s board of directors in its sole discretion.

On October 24, 2024, the board of directors authorized a special committee of the board to determine the ratio of the reverse split. On November 8, 2024, the special committee approved a one-for-thirty-five reverse split of the Class A common stock that will be effective in the State of Delaware on Friday, November 22, 2024. The Company anticipates that beginning with the opening of trading on Monday, November 25, 2024, the Company’s Class A common stock will trade on the NYSE American on a split-adjusted basis.

Special Dividend of Class B Common Stock

On November 15, 2024, the Company announced that it plans to issue a special one-time dividend (the “Distribution”) of 5.0 million shares of its Class B Common Stock (the “Class B Common Stock”) to all holders of its Class A Common Stock (the “Class A Common Stock”) and the Series C Convertible Preferred Stock on an as-converted basis.

The record date for the Distribution is November 29, 2024. Stockholders who own the Company’s Class A Common Stock at the close of trading on that date will be eligible to receive the shares of Class B Common Stock. Further, the Company has set a payment date of December 16, 2024, subject to adjustment. On the record date, the Company anticipates there will be approximately 1.1 million shares of Class A Common Stock and approximately 5.9 million Class A Common Stock equivalents, based on the current conversion price of the Company’s Series C Convertible Preferred Stock, issued and outstanding (collectively, the “Eligible Capital Stock”), for an aggregate of approximately 7.0 million shares of Eligible Capital Stock. Consequently, the number of shares of Class B Common Stock issuable is approximately 0.71 for each share of Eligible Capital Stock. The foregoing figures reflect the implementation of the one-for-thirty-five reserve stock split that will be effectuated on November 25, 2024.

The Class B Common Stock is identical to the currently outstanding Class A Common Stock, with the exception that each share thereof carries ten times the voting power of a share of Class A Common Stock. The Class B Common Stock is convertible at any time after the payment date into Class A Common Stock on a one-for-one basis.

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

Other than as noted below, there have been no material changes to the Company’s significant accounting policies previously disclosed in the 2023 Annual Report.

Revenue Recognition Crypto Assets Mining

The Company has entered into a crypto assets mining pool by executing a contract with a mining pool operator to provide hash calculation services to the mining pool. The Company’s customer, as defined in Accounting Standards Codification (“ASC”) 606-10-20, is the mining pool operator with which the Company has agreed to the terms of service and user service agreement. The Company supplies hash calculation services, in exchange for consideration, to the pool operator who in turn provides transaction verification services to third parties via a mining pool that includes other participants. The Company’s performance obligation is the provision of hash calculation services to the pool operator and this performance obligation is an output of the Company’s ordinary activities for which it decides when to provide services under the contract.

The Company’s enforceable right to compensation begins only when, and lasts as long as, the Company provides hash calculation services to the mining pool operator and is created as power is provided over time. The only consideration due to the Company relates to the provision of hash calculation services. The contract with the pool operator provides both parties the unilateral enforceable right to terminate the contract at any time without penalty. The customer termination option results in a contract that continuously renews throughout the day and therefore has a duration of less than 24 hours. The implied renewal option is not a material right because there are no upfront or incremental fees in the initial contract and the terms, conditions, and compensation amount for the renewal options are at the then market rates. Providing such hash calculation services is the only performance obligation in the Company’s contracts with mining pool operators.

The transaction consideration the Company receives, if any, is non-cash consideration in the form of Bitcoin. Changes in the fair value of the non-cash consideration due to form of the consideration (changes in the market price of Bitcoin) are not included in the transaction price and are therefore not included in revenue. The mining pool operator charges fees to cover the costs of maintaining the pool and are deducted from amounts the Company may otherwise earn and are treated as a reduction to the consideration earned. Fees fluctuate and historically have been approximately 0.3% per reward earned, on average.

The Company participated in mining pools that used the full pay-per-share (“FPPS”) payout method for the nine months ended September 30, 2024. The Company is entitled to compensation once it begins to perform hash calculations for the pool operator in accordance with the operator’s specifications over a 24-hour period beginning midnight UTC and ending 23:59:59 UTC on a daily basis. The non-cash consideration that the Company is entitled to for providing hash calculations to the pool operator under the FPPS payout method is made up of block rewards and transaction fees less pool operator fees determined as follows:

· The non-cash consideration in the form of a block reward is based on the total blocks expected to be generated on the Bitcoin network for the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC in accordance with the following formula: the daily hash calculations that the Company provided to the pool operator as a percent of the Bitcoin network’s implied hash calculations as determined by the network difficulty, multiplied by the total Bitcoin network block rewards expected to be generated for the same daily period.

· The non-cash consideration in the form of transaction fees paid by transaction requestors is based on the share of standard transaction fees over the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC. The pool operator calculates the standard transaction fee during the 24-hour period using a rolling 144 block moving average of actual transaction fees.

· The block reward and transaction fees earned by the Company are reduced by mining pool fees charged by the operator for operating the pool based on a rate schedule per the mining pool contract. The mining pool fee is only incurred to the extent the Company performs hash calculations and generates revenue in accordance with the pool operator’s payout formula during the same 24-hour period beginning midnight UTC daily.

The contract is in effect until terminated by either party.

All consideration pursuant to this arrangement is variable. It is not probable that a significant reversal of cumulative revenue will occur. The Company is able to calculate the payout based on the contractual formula, non-cash revenue is estimated and recognized based on the fair value of Bitcoin on the date of contract inception. Fair value of the crypto assets consideration is determined using the midnight UTC spot price of the Company’s principal market for Bitcoin. The Company recognizes non-cash consideration on the same day that control of the contracted service is transferred to the pool operator, which is the same day as the contract inception.

There is no significant financing component in these transactions.

Expenses associated with running the crypto assets mining business, such as equipment depreciation and electricity costs, are recorded as a component of cost of revenues.

Revenue Recognition Hotel Operations

The primary sources of revenue include room and food and beverage revenue from the Company’s hotels.

Rooms revenue represents revenue from the occupancy of the Company’s hotel rooms, which is driven by the occupancy and average daily rate charged. Rooms revenue includes revenue from guest no-shows, daily use, and early/late departure fees. The contracts for room stays with customers are generally short in duration and revenues are recognized as services are provided over the course of the hotel stay at the daily transaction price agreed to under the contract.

Food and beverage revenue consists of revenue from the restaurants and lounges, in room dining and mini bars, and banquet/catering revenue from group and social functions. Payment of the transaction price is due immediately when the customer purchases the goods and services. Therefore, revenue is recognized at a point in time when the physical possession has transferred to the customer.

Reclassifications

Certain prior period amounts have been reclassified for comparative purposes to conform to the current-period financial statement presentation, including the discontinued operations presentation of GIGA financial results. These reclassifications had no effect on previously reported results of operations.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose specific rate reconciliations, amount of income taxes separated by federal and individual jurisdiction, and the amount of income (loss) from continuing operations before income tax expense (benefit) disaggregated between federal, state, and foreign. The new standard is effective for the Company for its fiscal year beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.

On November 27, 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 is designed to improve the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. The new standard is effective for the Company for its fiscal year beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.

In March 2024, the FASB issued ASU No. 2024-01 Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards (“ASU 2024-01”). ASU 2024-01 improves clarity and operability without changing the guidance. ASU 2024-01 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2024 and early adoption is permitted. The Company does not expect the adoption of ASU 2024-01 to have a material impact on its consolidated financial statements.

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DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Sep. 30, 2024

Deconsolidation Of Subsidiary And Discontinued Operations

Schedule of presents the assets and liabilities

	September 30,		December 31,
	2024		2023
Cash and cash equivalents	$	-	$	3,601,000
Restricted cash		-		700,000
Accounts receivable		-		4,350,000
Inventories		-		6,643,000
Prepaid expenses and other current assets		-		4,859,000
Intangible assets, net		-		1,707,000
Goodwill		-		5,794,000
Property and equipment, net - current		-		1,690,000
Right-of-use assets		-		3,023,000
Total assets discontinued operations		-		32,367,000
Accounts payable and accrued expenses		-		14,005,000
Operating lease liability		-		3,098,000
Notes payable		-		1,174,000
Convertible notes payable		-		4,388,000
Liabilities discontinued operations		-		22,664,000
Net assets of discontinued operations	$	-	$	9,703,000

Schedule of operations

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Revenue, products	$	10,678,000		$	10,277,000		$	30,862,000		$	27,724,000
Cost of revenue, products		7,824,000			7,216,000			23,339,000			20,035,000
Gross profit		2,854,000			3,061,000			7,523,000			7,689,000
Operating expenses
Research and development		906,000			672,000			2,617,000			2,111,000
Selling and marketing		286,000			396,000			1,166,000			1,415,000
General and administrative		2,923,000			2,496,000			8,033,000			9,783,000
Total operating expenses		4,115,000			3,564,000			11,816,000			13,309,000
Loss from operations		(1,261,000	)		(503,000	)		(4,293,000	)		(5,620,000	)
Other income (expense):
Interest and other income		1,554,000			105,000			1,594,000			105,000
Interest expense		(415,000	)		(257,000	)		(1,662,000	)		(870,000	)
Change in fair value of warrant liability		-			(1,061,000	)		-			-
Total other income (expense), net		1,139,000			(1,213,000	)		(68,000	)		(765,000	)
Loss before income taxes		(122,000	)		(1,716,000	)		(4,361,000	)		(6,385,000	)
Income tax benefit		-			-			(15,000	)		(11,000	)
Net loss		(122,000	)		(1,716,000	)		(4,346,000	)		(6,374,000	)
Net loss attributable to non-controlling interest		325,000			357,000			1,554,000			1,716,000
Net income (loss) available to common stockholders	$	203,000		$	(1,359,000	)	$	(2,792,000	)	$	(4,658,000	)

Schedule of gain on deconsolidation

	For the Three Months Ended September 30, 2024		For the Nine Months Ended September 30, 2024
GIGA net income (loss)	$	203,000	$	(2,792,000	)
Gain on deconsolidation		2,013,000		2,013,000
Net gain (loss) from discontinued operations	$	2,216,000	$	(779,000	)

Schedule of statement of cash flows

	For the Nine Months Ended September 30,
	2024			2023
Cash flows from operating activities:
Net loss	$	(4,346,000	)	$	(6,374,000	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		618,000			618,000
Amortization of right-of-use assets		684,000			807,000
Amortization of intangibles		157,000			220,000
Stock-based compensation		(858,000	)		1,594,000
Changes in operating assets and liabilities:
Accounts receivable		(1,638,000	)		(783,000	)
Inventories		1,514,000			1,091,000
Prepaid expenses and other current assets		(1,516,000	)		(706,000	)
Lease liabilities		(667,000	)		(916,000	)
Accounts payable and accrued expenses		(314,000	)		(285,000	)
Net cash used in operating activities		(6,366,000	)		(4,734,000	)
Cash flows from investing activities:
Purchase of property and equipment		(249,000	)		(177,000	)
Cash decrease upon deconsolidation		(3,550,000	)		-
Net cash used in investing activities		(3,799,000	)		(177,000	)
Cash flows from financing activities:
Proceeds from notes payable		2,552,000			2,316,000
Cash contributions from parent		3,383,000			2,361,000
Net cash provided by financing activities		5,935,000			4,677,000
Effect of exchange rate changes on cash and cash equivalents		(71,000	)		153,000
Net increase in cash and cash equivalents and restricted cash		(4,301,000	)		(81,000	)
Cash and cash equivalents and restricted cash at beginning of period		4,301,000			2,195,000
Cash and cash equivalents and restricted cash at end of period	$	-		$	2,114,000
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	946,000		$	862,000

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REVENUE DISAGGREGATION (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of disaggregated revenues

	TurnOnGreen		Fintech		Sentinum		AGREE		Energy		ROI		Holding Co.		Total
Primary Geographical Markets
North America	$	1,227,000	$	-	$	5,432,000	$	5,512,000	$	12,327,000	$	54,000	$	845,000	$	25,397,000
Europe		1,000		-		-		-		26,000		-		-		27,000
Middle East and other		62,000		-		-		-		-		-		-		62,000
Revenue from contracts with customers		1,290,000		-		5,432,000		5,512,000		12,353,000		54,000		845,000		25,486,000
Revenue, lending and trading activities (North America)		-		5,575,000		-		-		-		-		-		5,575,000
Total revenue	$	1,290,000	$	5,575,000	$	5,432,000	$	5,512,000	$	12,353,000	$	54,000	$	845,000	$	31,061,000
Major Goods or Services
Power supply units and systems	$	1,290,000	$	-	$	-	$	-	$	-	$	-	$	-	$	1,290,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-		4,362,000		-		-		-		-		4,362,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-		902,000		-		-		-		-		902,000
Hotel and real estate operations		-		-		168,000		5,512,000		-		-		-		5,680,000
Crane rental		-		-		-		-		12,327,000		-		-		12,327,000
Other		-		-		-		-		26,000		54,000		845,000		925,000
Revenue from contracts with customers		1,290,000		-		5,432,000		5,512,000		12,353,000		54,000		845,000		25,486,000
Revenue, lending and trading activities		-		5,575,000		-		-		-		-		-		5,575,000
Total revenue	$	1,290,000	$	5,575,000	$	5,432,000	$	5,512,000	$	12,353,000	$	54,000	$	845,000	$	31,061,000
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	22,000	$	-	$	5,432,000	$	5,512,000	$	26,000	$	54,000	$	845,000	$	11,891,000
Services transferred over time		1,268,000		-		-		-		12,327,000		-		-		13,595,000
Revenue from contracts with customers	$	1,290,000	$	-	$	5,432,000	$	5,512,000	$	12,353,000	$	54,000	$	845,000	$	25,486,000

The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2024:

	TurnOnGreen		Fintech		Sentinum		AGREE		Energy		ROI		Holding Co.		Total
Primary Geographical Markets
North America	$	3,565,000	$	-	$	25,926,000	$	13,652,000	$	36,945,000	$	121,000	$	1,819,000	$	82,028,000
Europe		15,000		-		-		-		94,000		-		-		109,000
Middle East and other		171,000		-		-		-		-		-		-		171,000
Revenue from contracts with customers		3,751,000		-		25,926,000		13,652,000		37,039,000		121,000		1,819,000		82,308,000
Revenue, lending and trading activities (North America)		-		4,911,000		-		-		-		-		-		4,911,000
Total revenue	$	3,751,000	$	4,911,000	$	25,926,000	$	13,652,000	$	37,039,000	$	121,000	$	1,819,000	$	87,219,000
Major Goods or Services
Power supply units and systems	$	3,751,000	$	-	$	-	$	-	$	-	$	-	$	-	$	3,751,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-		19,563,000		-		-		-		-		19,563,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-		5,638,000		-		-		-		-		5,638,000
Hotel and real estate operations		-		-		725,000		13,652,000		-		-		-		14,377,000
Crane rental		-		-		-		-		36,945,000		-		-		36,945,000
Other		-		-		-		-		94,000		121,000		1,819,000		2,034,000
Revenue from contracts with customers		3,751,000		-		25,926,000		13,652,000		37,039,000		121,000		1,819,000		82,308,000
Revenue, lending and trading activities		-		4,911,000		-		-		-		-		-		4,911,000
Total revenue	$	3,751,000	$	4,911,000	$	25,926,000	$	13,652,000	$	37,039,000	$	121,000	$	1,819,000	$	87,219,000
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	31,000	$	-	$	25,926,000	$	13,652,000	$	94,000	$	121,000	$	1,817,000	$	41,643,000
Services transferred over time		3,720,000		-		-		-		36,945,000		-		-		40,665,000
Revenue from contracts with customers	$	3,751,000	$	-	$	25,926,000	$	13,652,000	$	37,039,000	$	121,000	$	1,817,000	$	82,308,000

The Company’s disaggregated revenues consisted of the following for the three months ended September 30, 2023:

	TurnOnGreen		Fintech			Sentinum		AGREE		SMC		ROI		Energy		Total
Primary Geographical Markets
North America	$	1,075,000	$	-		$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,248,000
Europe		66,000		-			-		-		-		-		-		66,000
Middle East and other		25,000		-			-		-		-		-		-		25,000
Revenue from contracts with customers		1,166,000		-			7,891,000		5,404,000		15,931,000		18,000		12,929,000		43,339,000
Revenue, lending and trading activities (North America)		-		(249,000	)		-		-		-		-		-		(249,000	)
Total revenue	$	1,166,000	$	(249,000	)	$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,090,000
Major Goods or Services
Power supply units & systems	$	1,074,000	$	-		$	-	$	-	$	-	$	-	$	-	$	1,074,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-			6,389,000		-		-		-		-		6,389,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-			1,169,000		-		-		-		-		1,169,000
Hotel and real estate operations		-		-			333,000		5,404,000		-		-		-		5,737,000
Karaoke machines and related consumer goods		-		-			-		-		15,931,000		-		-		15,931,000
Crane rental		-		-			-		-		-		-		12,490,000		12,490,000
Other		92,000		-					-		-		18,000		439,000		549,000
Revenue from contracts with customers		1,166,000		-			7,891,000		5,404,000		15,931,000		18,000		12,929,000		43,339,000
Revenue, lending and trading activities		-		(249,000	)		-		-		-		-		-		(249,000	)
Total revenue	$	1,166,000	$	(249,000	)	$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,090,000
Timing of Revenue Recognition
Goods transferred at a point in time	$	1,160,000	$	-		$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	439,000	$	30,843,000
Services transferred over time		6,000		-			-		-		-		-		12,490,000		12,496,000
Revenue from contracts with customers	$	1,166,000	$	-		$	7,891,000	$	5,404,000	$	15,931,000	$	18,000	$	12,929,000	$	43,339,000

The Company’s disaggregated revenues consisted of the following for the nine months ended September 30, 2023:

	TurnOnGreen		Fintech		Sentinum		AGREE		SMC		ROI		Energy		Total
Primary Geographical Markets
North America	$	2,400,000	$	-	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,604,000	$	99,427,000
Europe		77,000		-		-		-		-		-		109,000		186,000
Middle East and other		288,000		-		-		-		-		-		-		288,000
Revenue from contracts with customers		2,765,000		-		24,389,000		12,032,000		21,939,000		63,000		38,713,000		99,901,000
Revenue, lending and trading activities (North America)		-		4,337,000		-				-		-		-		4,337,000
Total revenue	$	2,765,000	$	4,337,000	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,713,000	$	104,238,000
Major Goods or Services
Power supply units & systems	$	2,544,000	$	-	$	-	$	-	$	-	$	-	$	-	$	2,544,000
Revenue from mined crypto assets at Sentinum owned and operated facilities		-		-		21,103,000		-		-		-		-		21,103,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		-		-		2,170,000		-		-		-		-		2,170,000
Hotel and real estate operations		-		-		1,116,000		12,032,000		-		-		-		13,148,000
Karaoke machines and related consumer goods		-		-		-		-		21,939,000		-		-		21,939,000
Crane rental		-		-		-		-		-		-		37,726,000		37,726,000
Other		221,000		-				-		-		63,000		987,000		1,271,000
Revenue from contracts with customers		2,765,000		-		24,389,000		12,032,000		21,939,000		63,000		38,713,000		99,901,000
Revenue, lending and trading activities		-		4,337,000		-		-		-		-		-		4,337,000
Total revenue	$	2,765,000	$	4,337,000	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,713,000	$	104,238,000
Timing of Revenue Recognition
Goods transferred at a point in time	$	11,000	$	-	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	987,000	$	59,421,000
Services transferred over time		2,754,000		-		-		-		-		-		37,726,000		40,480,000
Revenue from contracts with customers	$	2,765,000	$	-	$	24,389,000	$	12,032,000	$	21,939,000	$	63,000	$	38,713,000	$	99,901,000

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair value, assets measured on recurring basis

	Fair Value Measurement at September 30, 2024
	Total		Level 1		Level 2		Level 3
Assets:
Investment in common stock of Alzamend Neuro, Inc. (“Alzamend”) – a related party	$	131,000	$	131,000	$	-	$	-
Investments in marketable equity securities		687,000		687,000		-		-
Crypto assets		65,000		65,000		-		-
Total assets measured at fair value	$	883,000	$	883,000	$	-	$	-
Liabilities:
Warrant and embedded conversion feature liabilities	$	8,000	$	-	$	-	$	8,000
Total liabilities measured at fair value	$	8,000	$	-	$	-	$	8,000

	Fair Value Measurement at December 31, 2023
	Total		Level 1		Level 2		Level 3
Assets:
Investment in common stock of Alzamend – a related party	$	679,000	$	679,000	$	-	$	-
Investments in marketable equity securities		27,000		27,000		-		-
Cash and marketable securities held in trust account		2,200,000		2,200,000		-		-
Total assets measured at fair value	$	2,906,000	$	2,906,000	$	-	$	-
Liabilities:
Warrant and embedded conversion feature liabilities	$	970,000	$	-	$	-	$	970,000
Total liabilities measured at fair value	$	970,000	$	-	$	-	$	970,000

Schedule of changes in fair value hierarchy

	Level 3 Balance at Beginning of Period		Fair Value Adjustments			Grants		Level 3 Balance at End of Period
Nine months ended September 30, 2024
Warrant liabilities	$	60,000	$	(52,000	)	$	-	$	8,000
Embedded conversion feature liabilities	$	910,000	$	(910,000	)	$	-	$	-
Nine months ended September 30, 2023
Warrant liabilities	$	651,000	$	(4,981,000	)	$	4,330,000	$	-
Embedded conversion feature liabilities	$	2,316,000	$	(3,439,000	)	$	1,352,000	$	229,000

	Level 3 Balance at Beginning of Period		Fair Value Adjustments			Grants		Level 3 Balance at End of Period
Three months ended September 30, 2024
Warrant liabilities	$	578,000	$	(570,000	)	$	-	$	8,000
Embedded conversion feature liabilities	$	155,000	$	(155,000	)	$	-	$	-
Three months ended September 30, 2023
Warrant liabilities	$	2,446,000	$	(2,446,000	)	$	-	$	-
Embedded conversion feature liabilities	$	2,577,000	$	(2,348,000	)	$	-	$	229,000

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Marketable EQUITY Securities (Tables)

9 Months Ended

Sep. 30, 2024

Marketable Equity Securities

Schedule of marketable securities

	Marketable equity securities at September 30, 2024
			Gross unrealized		Gross unrealized
	Cost		gains		losses			Fair value
Common shares	$	5,476,000	$	672,000	$	(5,461,000	)	$	687,000

	Marketable equity securities at December 31, 2023
			Gross unrealized		Gross unrealized
	Cost		gains		losses			Fair value
Common shares	$	5,119,000	$	12,000	$	(5,104,000	)	$	27,000

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CRYPTO ASSETS (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of revenue from crypto assets

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue from mined crypto assets at Sentinum owned and operated facilities	$	4,362,000	$	6,389,000	$	19,563,000	$	21,103,000
Revenue from Sentinum crypto mining equipment hosted at third-party facilities		902,000		1,169,000		5,638,000		2,170,000
Revenue, crypto assets mining	$	5,264,000	$	7,558,000	$	25,201,000	$	23,273,000

Schedule of activities of the crypto assets

	For the Nine Months Ended
	September 30,
	2024			2023
Balance at January 1	$	546,000		$	554,000
Additions of mined crypto assets		19,563,000			21,103,000
Sale of crypto assets		(20,038,000	)		(21,330,000	)
Payments to vendors with crypto assets		(31,000	)		(20,000	)
Payment of notes payable with crypto assets		(506,000	)		-
Payment of interest payable with crypto assets		(142,000	)		-
Realized gain on sale of crypto assets		649,000			404,000
Unrealized gain on crypto assets		24,000			-
Impairment of mined crypto assets		-			(376,000	)
Balance at September 30	$	65,000		$	335,000

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PROPERTY AND EQUIPMENT, NET (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	September 30, 2024			December 31, 2023
Building, land and improvements	$	92,850,000		$	100,184,000
Crypto assets mining equipment		12,162,000			50,640,000
Crane rental equipment		34,500,000			34,469,000
Computer, software and related equipment		11,276,000			10,533,000
Aircraft		15,983,000			15,983,000
Other property and equipment		11,503,000			11,066,000
		178,274,000			222,875,000
Accumulated depreciation and amortization		(17,400,000	)		(27,209,000	)
Property and equipment, net	$	160,874,000		$	195,666,000

Schedule of depreciation

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Depreciation expense	$	7,533,000	$	9,894,000	$	19,174,000	$	21,823,000

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INTANGIBLE ASSETS, NET (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible asset

	Useful Life	September 30, 2024			December 31, 2023
Definite lived intangible assets:
Developed technology	7 years	$	2,081,000		$	1,949,000
Customer list	10 years		1,290,000			1,290,000
Trade names	12 years		1,030,000			1,030,000
			4,401,000			4,269,000
Accumulated amortization			(719,000	)		(222,000	)
Total definite-lived intangible assets		$	3,682,000		$	4,047,000

Schedule of amortization expense

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Amortization expense	$	371,000	$	226,000	$	479,000	$	541,000

Schedule of estimated amortization expense

2024 (remainder)	$	124,000
2025		494,000
2026		494,000
2027		494,000
2028		494,000
2029		370,000
Thereafter		1,212,000
	$	3,682,000

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INVESTMENTS – RELATED PARTIES (Tables)

9 Months Ended

Sep. 30, 2024

SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]

Schedule of investment

	Interest		September 30,			December 31,
	Rate	Due Date	2024			2023
Promissory note, related party	8%	December 31, 2024	$	2,500,000		$	2,500,000
10% Senior Secured Convertible Promissory Note - GIGA	10%	December 31, 2024		4,383,000			-
12% Senior Secured Subordinated Convertible Promissory Note - GIGA	10%	December 31, 2024		6,750,000			-
12% Senior Secured Subordinated Convertible Promissory Note - GIGA	12%	June 30, 2025		5,194,000			-
Debtor in possession Loan Agreement - GIGA	6%	October 28, 2024		80,000			-
Accrued interest receivable GIGA				768,000			-
Accrued interest receivable Ault & Company				568,000			568,000
Other				211,000			900,000
Allowance for credit losses				(5,668,000	)		-
Total investment in promissory notes and other, related parties			$	14,786,000		$	3,968,000

Schedule of Interest income, related party

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Interest income, related party	$	557,000	$	50,000	$	1,144,000	$	150,000

Schedule of investment in common stock

	Investments in common stock, related parties at September 30, 2024
	Cost		Gross unrealized losses			Fair value
Common shares	$	24,697,000	$	(24,566,000	)	$	131,000
Alzamend series B convertible preferred stock, warrants		2,100,000		-			2,100,000
	$	26,797,000	$	(24,566,000	)	$	2,231,000

	Investments in common stock, related parties at December 31, 2023
	Cost		Gross unrealized losses			Fair value
Common shares	$	24,688,000	$	(24,009,000	)	$	679,000

Schedule of investment in warrants and common stock

	For the Three Months Ended September 30,
	2024			2023
Balance at July 1	$	304,000		$	5,836,000
Investment in common stock of Alzamend		-			-
Unrealized loss in common stock of Alzamend		(173,000	)		(3,124,000	)
Balance at September 30	$	131,000		$	2,712,000

	For the Nine Months Ended September 30,
	2024			2023
Balance at January 1	$	679,000		$	6,449,000
Investment in common stock of Alzamend		9,000			15,000
Unrealized loss in common stock of Alzamend		(557,000	)		(3,752,000	)
Balance at September 30	$	131,000		$	2,712,000

Schedule of investment in warrants and preferred stock

	September 30,		December 31,
	2024		2023
Investment in Alzamend preferred stock	$	2,100,000	$	-
Total investment in other investments securities, related party	$	2,100,000	$	-

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EQUITY METHOD INVESTMENT (Tables)

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Schedule of equity investments in unconsolidated entity – SMC

Rollforward investment in unconsolidated entity	Amount
Beginning balance - January 1, 2024	$	1,957,000
Loss from investment in unconsolidated entity		(1,957,000	)
Ending balance - September 30, 2024	$	-

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ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Schedule of other current liabilities

	September 30,		December 31,
	2024		2023
Accounts payable	$	20,419,000	$	26,777,000
Accrued payroll and payroll taxes		8,773,000		8,237,000
Warrant liabilities		8,000		60,000
Interest payable		8,669,000		4,197,000
Accrued legal		2,439,000		2,340,000
Other accrued expenses		18,166,000		13,811,000
	$	58,474,000	$	55,422,000

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REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY (Tables)

9 Months Ended

Sep. 30, 2024

Redeemable Noncontrolling Interests In Equity Of Subsidiary Liability

Redeemable noncontrolling interests in equity of subsidiary liability

	For the Three Months Ended
	September 30,
	2024		2023
Redeemable noncontrolling interests in equity of subsidiaries as of July 1	$	795,000	$	1,951,000
Remeasurement of carrying value to redemption value		9,000		228,000
Redeemable noncontrolling interests in equity of subsidiaries as of September 30	$	804,000	$	2,179,000

The following table summarizes the changes in the Company’s redeemable noncontrolling interests in equity of subsidiaries during the nine months ended September 30, 2024 and 2023:

	For the Nine Months Ended
	September 30,
	2024			2023
Redeemable noncontrolling interests in equity of subsidiaries as of January 1	$	2,224,000		$	117,993,000
Redemption of Ault Disruptive common stock		(1,463,000	)		(120,064,000	)
Remeasurement of carrying value to redemption value		43,000			4,250,000
Redeemable noncontrolling interests in equity of subsidiaries as of September 30	$	804,000		$	2,179,000

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NOTES PAYABLE (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of notes payable

	Collateral	Guarantors	Interest rate	Due date	September 30, 2024			December 31, 2023
AGREE secured construction loans	AGREE hotels	-	7.0%	January 1, 2025	$	68,750,000		$	67,632,000
Circle 8 revolving credit facility	Circle 8 cranes with a book value of $29.6 million	-	10.0%	December 16, 2025		13,651,000			15,907,000
16% promissory note (in default)	-	Ault & Company and Milton C. Ault, III	16.0% (default rate of 24.0%)	July 15, 2024		5,572,000			2,572,000
Circle 8 equipment financing notes	Circle 8 equipment with a book value of $4.3 million	-	10.5%	September 15, 2025 through June 15, 2027		3,829,000			5,629,000
15% term notes (in default as of November 1, 2024)	-	Milton C. Ault, III	15.0% (default rate of 22.99%)	October 31, 2024		5,399,000			-
8% demand loans	-	-	8.0%	Upon demand		-			950,000
Sentinum note payable	-	-	12.5%	-		-			1,067,000
ROI promissory note (in default)	-	-	15.0% (default rate of 18.0%)	April 30, 2024		2,094,000			-
Other ($0.9 million in default)	-	-	-	-		5,501,000			3,808,000
Total notes payable					$	104,796,000		$	97,565,000
Less:
Unamortized debt discounts						(306,000	)		(453,000	)
Total notes payable, net					$	104,490,000		$	97,112,000
Less: current portion						(87,730,000	)		(11,692,000	)
Notes payable – long-term portion					$	16,760,000		$	85,420,000

Schedule of maturities

Year
2024 (remainder)	$	19,261,000
2025		84,124,000
2026		879,000
2027		266,000
2028		266,000
	$	104,796,000

Schedule of interest expense

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Contractual interest expense	$	5,350,000	$	4,986,000	$	10,725,000	$	9,645,000
Forbearance fees		1,050,000		518,000		3,300,000		7,319,000
Amortization of debt discount		1,366,000		634,000		4,800,000		18,216,000
Total interest expense	$	7,766,000	$	6,138,000	$	18,825,000	$	35,180,000

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NOTES PAYABLE, RELATED PARTY (Tables)

9 Months Ended

Sep. 30, 2024

Notes Payable Related Party

Schedule of notes payable, related party

	Interest rate	Due date	September 30, 2024		December 31, 2023
Notes from officers – Hyperscale Data	18%	-	$	-	$	98,000
Notes from officers - TurnOnGreen	14%	Past due		46,000		51,000
Notes from board member - ROI	No interest	Upon demand		-		90,000
Ault & Company advances	No interest	Upon demand		-		1,909,000
Other related party advances	No interest	Upon demand		125,000		124,000
Total notes payable			$	171,000	$	2,272,000

Schedule of interest expense, related party

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Interest expense, related party	$	1,000	$	-	$	20,000	$	-

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CONVERTIBLE NOTES (Tables)

9 Months Ended

Sep. 30, 2024

Convertible Notes

Schedule of convertible notes payable

	Conversion price per share	Interest rate	Due date	September 30, 2024			December 31, 2023
Convertible promissory note –OID only - in default	90% of 5-day VWAP	OID Only	September 28, 2024	$	393,000		$	1,673,000
10% OID convertible promissory note – in default as of October 20, 2024	$0.17	18%	October 19, 2024		4,730,000			-
Avalanche International Corp. (“AVLP”) convertible promissory notes, principal	$0.35 (AVLP stock)	7%	August 22, 2025		9,911,000			9,911,000
ROI senior secured convertible note - in default (1)	$0.11 (ROI stock)	OID Only	April 27, 2024		4,245,000			6,513,000
Fair value of embedded conversion options					-			910,000
Total convertible notes payable					19,279,000			19,007,000
Less: unamortized debt discounts					(101,000	)		(2,179,000	)
Total convertible notes payable, net of financing cost, long term				$	19,178,000		$	16,828,000
Less: current portion					(9,725,000	)		(7,375,000	)
Convertible notes payable, net of financing cost – long-term portion				$	9,453,000		$	9,453,000

(1) See Arena litigation discussed in Note 22 below.

Schedule of contractual maturities

Year	Principal
2024	$	9,368,000
2025		9,911,000
	$	19,279,000

Schedule of weighted average assumptions

	September 30, 2024	December 31, 2023	At Inception
Contractual term in years	Variable	2.7	1.0
Volatility	75%	82%	111%
Dividend yield	0%	0%	0%
Risk-free interest rate	4.0%	4.0%	3.5%

Schedule of derivative liabilities

Balance as of January 1, 2024	$	910,000
Change in fair value		(910,000	)
Ending balance as of September 30, 2024	$	-

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NET LOSS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of net loss per share

	September 30,		September 30,
	2024		2023
Convertible preferred stock		264,322,000		-
Warrants		15,006,000		2,000
Convertible notes		315,000		-
Stock options		1,000		1,000
Total		279,644,000		3,000

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SEGMENT AND CUSTOMERS INFORMATION (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of operating segments

Nine Months Ended September 30, 2024
	TurnOnGreen			Fintech			Sentinum			AGREE			Energy			ROI			Holding Co.			Total
Revenue	$	3,751,000		$	-		$	-		$	-		$	94,000		$	121,000		$	1,819,000		$	5,785,000
Revenue, crypto assets mining		-			-			25,201,000			-			-			-			-			25,201,000
Revenue, hotel and real estate operations		-			-			725,000			13,652,000			-			-			-			14,377,000
Revenue, crane operations		-			-			-			-			36,945,000			-			-			36,945,000
Revenue, lending and trading activities		-			4,911,000			-			-			-			-			-			4,911,000
Total revenues	$	3,751,000		$	4,911,000		$	25,926,000		$	13,652,000		$	37,039,000		$	121,000		$	1,819,000		$	87,219,000
Depreciation and amortization expense	$	73,000		$	-		$	12,322,000		$	2,162,000		$	3,513,000		$	57,000		$	1,526,000		$	19,653,000
Impairment of property and equipment	$	-		$	-		$	10,500,000		$	9,246,000		$	-		$	-		$	-		$	19,746,000
(Loss) income from operations	$	(2,781,000	)	$	3,634,000		$	(11,066,000	)	$	(8,850,000	)	$	1,464,000		$	(15,891,000	)	$	(14,379,000	)	$	(47,869,000	)
Interest expense	$	-		$	(5,000	)	$	(122,000	)	$	(5,345,000	)	$	(2,693,000	)	$	(2,215,000	)	$	(8,445,000	)	$	(18,825,000	)
Capital expenditures for the nine months ended September 30, 2024	$	53,000		$	-		$	1,675,000		$	774,000		$	2,054,000		$	112,000		$	95,000		$	4,763,000
Segment identifiable assets as of September 30, 2024	$	3,755,000		$	12,787,000		$	37,249,000		$	81,331,000		$	50,537,000		$	1,309,000		$	44,230,000		$	231,198,000

Three Months Ended September 30, 2024
	TurnOnGreen			Fintech		Sentinum			AGREE			Energy			ROI			Holding Co.			Total
Revenue	$	1,290,000		$	-	$	-		$	-		$	26,000		$	54,000		$	845,000		$	2,215,000
Revenue, crypto assets mining		-			-		5,264,000			-			-			-			-			5,264,000
Revenue, hotel and real estate operations		-			-		168,000			5,512,000			-			-			-			5,680,000
Revenue, crane operations		-			-		-			-			12,327,000			-			-			12,327,000
Revenue, lending and trading activities		-			5,575,000		-			-			-			-			-			5,575,000
Total revenues	$	1,290,000		$	5,575,000	$	5,432,000		$	5,512,000		$	12,353,000		$	54,000		$	845,000		$	31,061,000
Depreciation and amortization expense	$	25,000		$	-	$	4,170,000		$	1,771,000		$	1,426,000		$	19,000		$	493,000		$	7,904,000
Impairment of property and equipment	$	-		$	-	$	10,500,000		$	1,291,000		$	-		$	-		$	-		$	11,791,000
(Loss) income from operations	$	(1,479,000	)	$	4,484,000	$	(13,887,000	)	$	(1,268,000	)	$	514,000		$	(8,877,000	)	$	(4,082,000	)	$	(24,595,000	)
Interest expense	$	157,000		$	3,000	$	(4,000	)	$	(2,362,000	)	$	(682,000	)	$	328,000		$	(5,206,000	)	$	(7,766,000	)
Capital expenditures for the three months ended September 30, 2024	$	45,000		$	-	$	690,000		$	112,000		$	188,000		$	53,000		$	22,000		$	1,110,000

The following data presents the revenues, expenditures and other operating data of the Company and its operating segments for the three and nine months ended September 30, 2023:

Nine Months Ended September 30, 2023
	TurnOnGreen			Fintech		Sentinum			AGREE			Ault Disruptive			SMC			Energy			ROI			Holding Co.			Total
Revenue, product	$	2,765,000		$	-	$	-		$	-		$	-		$	21,939,000		$	987,000		$	63,000		$	-		$	25,754,000
Revenue, crypto assets mining		-			-		23,273,000			-			-			-			-			-			-			23,273,000
Revenue, hotel and real estate operations							1,116,000			12,032,000																		13,148,000
Revenue, lending and trading activities		-			4,337,000		-			-			-			-			-			-			-			4,337,000
Revenue, crane operations		-			-		-			-			-			-			37,726,000			-			-			37,726,000
Total revenues	$	2,765,000		$	4,337,000	$	24,389,000		$	12,032,000		$	-		$	21,939,000		$	38,713,000		$	63,000		$	-		$	104,238,000
Depreciation and amortization expense	$	68,000		$	-	$	14,362,000		$	2,408,000		$	-		$	779,000		$	3,053,000		$	152,000		$	1,556,000		$	22,378,000
(Loss) income from operations	$	(4,067,000	)	$	1,091,000	$	(4,363,000	)	$	(349,000	)	$	(1,052,000	)	$	(4,598,000	)	$	(30,216,000	)	$	(33,590,000	)	$	(20,011,000	)	$	(97,155,000	)
Capital expenditures for the nine months ended September 30, 2023	$	131,000		$	-	$	1,426,000		$	6,035,000		$	-		$	383,000		$	3,319,000		$	407,000		$	2,906,000		$	14,607,000
Segment identifiable assets as of December 31, 2023	$	4,995,000		$	17,027,000	$	59,903,000		$	90,991,000		$	2,347,000		$	-		$	51,254,000		$	9,937,000		$	43,943,000		$	280,397,000

Three Months Ended September 30, 2023
	TurnOnGreen			Fintech			Sentinum			AGREE		Ault Disruptive			SMC		Energy		ROI			Holding Co.			Total
Revenue, product	$	1,166,000		$	-		$	-		$	-	$	-		$	15,931,000	$	439,000	$	18,000		$	-		$	17,554,000
Revenue, crypto assets mining		-			-			7,558,000			-		-			-		-		-			-			7,558,000
Revenue, commercial real estate leases								333,000			5,404,000															5,737,000
Revenue, lending and trading activities		-			(249,000	)		-			-		-			-		-		-			-			(249,000	)
Revenue, crane operations		-			-			-			-		-			-		12,490,000		-			-			12,490,000
Total revenues	$	1,166,000		$	(249,000	)	$	7,891,000		$	5,404,000	$	-		$	15,931,000	$	12,929,000	$	18,000		$	-		$	43,090,000
Depreciation and amortization expense	$	24,000		$	-		$	5,792,000		$	774,000	$	-		$	338,000	$	1,073,000	$	32,000		$	528,000		$	8,561,000
(Loss) income from operations	$	(1,498,000	)	$	(1,039,000	)	$	(2,661,000	)	$	1,050,000	$	(214,000	)	$	181,000	$	2,505,000	$	(13,315,000	)	$	(5,359,000	)	$	(20,350,000	)
Capital expenditures for the three months ended September 30, 2023	$	121,000		$	-		$	261,000		$	518,000	$	-		$	199,000	$	1,983,000	$	-		$	314,000		$	3,396,000

XML

LIQUIDITY AND FINANCIAL CONDITION (Details Narrative)	Sep. 30, 2024 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash Equivalents, at Carrying Value	$ 7,200,000
Restricted Cash Equivalents	8,300,000
Working Capital	$ 151,500,000

XML

DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS (Details) - GIGA [Member] - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Investment Company, Nonconsolidated Subsidiary [Line Items]
Cash and cash equivalents		$ 3,601,000
Restricted cash		700,000
Accounts receivable		4,350,000
Inventories		6,643,000
Prepaid expenses and other current assets		4,859,000
Intangible assets, net		1,707,000
Goodwill		5,794,000
Property and equipment, net - current		1,690,000
Right-of-use assets		3,023,000
Total assets discontinued operations		32,367,000
Accounts payable and accrued expenses		14,005,000
Operating lease liability		3,098,000
Notes payable		1,174,000
Convertible notes payable		4,388,000
Liabilities discontinued operations		22,664,000
Net assets of discontinued operations		$ 9,703,000

XML

DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other income (expense):
Net loss	$ 2,216,000	$ (1,359,000)	$ (779,000)	$ (4,658,000)
GIGA [Member]
Investment Company, Nonconsolidated Subsidiary [Line Items]
Revenue, products	10,678,000	10,277,000	30,862,000	27,724,000
Cost of revenue, products	7,824,000	7,216,000	23,339,000	20,035,000
Gross profit	2,854,000	3,061,000	7,523,000	7,689,000
Research and development	906,000	672,000	2,617,000	2,111,000
Selling and marketing	286,000	396,000	1,166,000	1,415,000
General and administrative	2,923,000	2,496,000	8,033,000	9,783,000
Total operating expenses	4,115,000	3,564,000	11,816,000	13,309,000
Loss from operations	(1,261,000)	(503,000)	(4,293,000)	(5,620,000)
Other income (expense):
Interest and other income	1,554,000	105,000	1,594,000	105,000
Interest expense	(415,000)	(257,000)	(1,662,000)	(870,000)
Change in fair value of warrant liability		(1,061,000)
Total other income (expense), net	1,139,000	(1,213,000)	(68,000)	(765,000)
Loss before income taxes	(122,000)	(1,716,000)	(4,361,000)	(6,385,000)
Income tax benefit			(15,000)	(11,000)
Net loss	(122,000)	(1,716,000)	(4,346,000)	(6,374,000)
Net loss attributable to non-controlling interest	325,000	357,000	1,554,000	1,716,000
Net income (loss) available to common stockholders	$ 203,000	$ (1,359,000)	$ (2,792,000)	$ (4,658,000)

XML

DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS (Details 2) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Deconsolidation Of Subsidiary And Discontinued Operations
GIGA net income (loss)	$ 203,000	$ (2,792,000)
Gain on deconsolidation	2,013,000	2,013,000
Net gain (loss) from discontinued operations	$ 2,216,000	$ (779,000)

XML

DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ 2,216,000	$ (1,359,000)	$ (779,000)	$ (4,658,000)
Changes in operating assets and liabilities:
Net cash used in operating activities			(6,366,000)	(4,734,000)
Cash flows from investing activities:
Net cash used in investing activities			(3,799,000)	2,184,000
Cash flows from financing activities:
Net cash provided by financing activities			2,552,000	2,316,000
Effect of exchange rate changes on cash and cash equivalents			(442,000)	(311,000)
Cash and cash equivalents and restricted cash at beginning of period			15,369,000	14,055,000
Cash and cash equivalents and restricted cash at end of period	15,449,000	12,490,000	15,449,000	12,490,000
GIGA [Member]
Cash flows from operating activities:
Net loss	(122,000)	(1,716,000)	(4,346,000)	(6,374,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			618,000	618,000
Amortization of right-of-use assets			684,000	807,000
Amortization of intangibles			157,000	220,000
Stock-based compensation			(858,000)	1,594,000
Changes in operating assets and liabilities:
Accounts receivable			$ (1,638,000)	$ (783,000)
Inventories			1,514,000	1,091,000
Prepaid expenses and other current assets			$ (1,516,000)	$ (706,000)
Lease liabilities			(667,000)	(916,000)
Accounts payable and accrued expenses			(314,000)	(285,000)
Net cash used in operating activities			(6,366,000)	(4,734,000)
Cash flows from investing activities:
Purchase of property and equipment			(249,000)	(177,000)
Cash decrease upon deconsolidation			(3,550,000)
Net cash used in investing activities			(3,799,000)	(177,000)
Cash flows from financing activities:
Proceeds from notes payable			2,552,000	2,316,000
Cash contributions from parent			3,383,000	2,361,000
Net cash provided by financing activities			5,935,000	4,677,000
Effect of exchange rate changes on cash and cash equivalents			(71,000)	153,000
Net increase in cash and cash equivalents and restricted cash			(4,301,000)	(81,000)
Cash and cash equivalents and restricted cash at beginning of period			4,301,000	2,195,000
Cash and cash equivalents and restricted cash at end of period		$ 2,114,000		2,114,000
Supplemental disclosures of cash flow information:
Cash paid during the period for interest			$ 946,000	$ 862,000

XML

DECONSOLIDATION OF SUBSIDIARY AND DISCONTINUED OPERATIONS (Details Narrative) - USD ($)		3 Months Ended	9 Months Ended
	Aug. 14, 2024	Sep. 30, 2024	Sep. 30, 2024
Gain on deconsolidation		$ 2,013,000	$ 2,013,000
Intercompany notes payable		$ 14,000,000.0	$ 14,000,000.0
GIGA [Member]
Gain on deconsolidation	$ 2,000,000.0

XML

CHANGE IN PLAN OF SALE OF AGREE HOTEL PROPERTIES (Details Narrative)	3 Months Ended
	Sep. 30, 2024 USD ($)
Real Estate Assets [Member]
Property, Plant and Equipment [Line Items]
Loss on impairment of property and equipment	$ 8,000,000.0

XML

REVENUE DISAGGREGATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 31,061,000	$ 43,090,000	$ 87,219,000	$ 104,238,000
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	11,891,000	30,843,000	41,643,000	59,421,000
Revenue from contracts with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	25,486,000	43,339,000	82,308,000	99,901,000
Power supply units and systems [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,290,000	1,074,000	3,751,000	2,544,000
Revenue From Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue	4,362,000	6,389,000	19,563,000	21,103,000
Revenue From Sentinum Crypto Mining Equipment Hosted At Third Party Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue	902,000	1,169,000	5,638,000	2,170,000
Hotel and real estate operations [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,680,000	5,737,000	14,377,000	13,148,000
Crane Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,327,000	12,490,000	36,945,000	37,726,000
Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue	925,000	549,000	2,034,000	1,271,000
Revenues from contract with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	25,486,000	43,339,000	82,308,000	99,901,000
Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,575,000	(249,000)	4,911,000	4,337,000
Total [Member]
Disaggregation of Revenue [Line Items]
Total revenue	31,061,000	43,090,000	87,219,000	104,238,000
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	13,595,000	12,496,000	40,665,000	40,480,000
Karaoke machines and releated consumer goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue		15,931,000		21,939,000
Revenue from Contract with Customer Benchmark [Member]
Disaggregation of Revenue [Line Items]
Total revenue	25,486,000	43,339,000	82,308,000	99,901,000
North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue	25,397,000	43,248,000	82,028,000	99,427,000
North America [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,575,000	(249,000)	4,911,000	4,337,000
Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue	27,000	66,000	109,000	186,000
Middle East [Member]
Disaggregation of Revenue [Line Items]
Total revenue	62,000	25,000	171,000	288,000
Turn On Green [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,290,000	1,166,000	3,751,000	2,765,000
Turn On Green [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	22,000	1,160,000	31,000	11,000
Turn On Green [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,268,000	6,000	3,720,000	2,754,000
Turn On Green [Member] | Revenue from contracts with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,290,000	1,166,000	3,751,000	2,765,000
Turn On Green [Member] | Power supply units and systems [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,290,000	1,074,000	3,751,000	2,544,000
Turn On Green [Member] | Revenue From Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Turn On Green [Member] | Revenue From Sentinum Crypto Mining Equipment Hosted At Third Party Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Turn On Green [Member] | Hotel and real estate operations [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Turn On Green [Member] | Crane Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Turn On Green [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue		92,000		221,000
Turn On Green [Member] | Revenues from contract with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,290,000	1,166,000	3,751,000	2,765,000
Turn On Green [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Turn On Green [Member] | Total [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,290,000	1,166,000	3,751,000	2,765,000
Turn On Green [Member] | Karaoke machines and releated consumer goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Turn On Green [Member] | Revenue from Contract with Customer Benchmark [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,290,000	1,166,000	3,751,000	2,765,000
Turn On Green [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,227,000	1,075,000	3,565,000	2,400,000
Turn On Green [Member] | North America [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Turn On Green [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,000	66,000	15,000	77,000
Turn On Green [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Total revenue	62,000	25,000	171,000	288,000
Fintech [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,575,000	(249,000)	4,911,000	4,337,000
Fintech [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Revenue from contracts with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Power supply units and systems [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Revenue From Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Revenue From Sentinum Crypto Mining Equipment Hosted At Third Party Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Hotel and real estate operations [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Crane Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Revenues from contract with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,575,000	(249,000)	4,911,000	4,337,000
Fintech [Member] | Total [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,575,000	(249,000)	4,911,000	4,337,000
Fintech [Member] | Karaoke machines and releated consumer goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Revenue from Contract with Customer Benchmark [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | North America [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,575,000	(249,000)	4,911,000	4,337,000
Fintech [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Fintech [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Sentinum [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,432,000	7,891,000	25,926,000	24,389,000
Sentinum [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,432,000	7,891,000	25,926,000	24,389,000
Sentinum [Member] | Revenue from contracts with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,432,000	7,891,000	25,926,000	24,389,000
Sentinum [Member] | Power supply units and systems [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Sentinum [Member] | Revenue From Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue	4,362,000	6,389,000	19,563,000	21,103,000
Sentinum [Member] | Revenue From Sentinum Crypto Mining Equipment Hosted At Third Party Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue	902,000	1,169,000	5,638,000	2,170,000
Sentinum [Member] | Hotel and real estate operations [Member]
Disaggregation of Revenue [Line Items]
Total revenue	168,000	333,000	725,000	1,116,000
Sentinum [Member] | Crane Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Sentinum [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Sentinum [Member] | Revenues from contract with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,432,000	7,891,000	25,926,000	24,389,000
Sentinum [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Sentinum [Member] | Total [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,432,000	7,891,000	25,926,000	24,389,000
Sentinum [Member] | AGREE [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,512,000		13,652,000
Sentinum [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Sentinum [Member] | Karaoke machines and releated consumer goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Sentinum [Member] | Revenue from Contract with Customer Benchmark [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,432,000	7,891,000	25,926,000	24,389,000
Sentinum [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,432,000	7,891,000	25,926,000	24,389,000
Sentinum [Member] | North America [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Sentinum [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Sentinum [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,512,000	5,404,000	13,652,000	12,032,000
AGREE [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,512,000	5,404,000	13,652,000	12,032,000
AGREE [Member] | Revenue from contracts with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,512,000	5,404,000	13,652,000	12,032,000
AGREE [Member] | Power supply units and systems [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Revenue From Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Revenue From Sentinum Crypto Mining Equipment Hosted At Third Party Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Hotel and real estate operations [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,512,000	5,404,000	13,652,000	12,032,000
AGREE [Member] | Crane Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Revenues from contract with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,512,000	5,404,000	13,652,000	12,032,000
AGREE [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Total [Member]
Disaggregation of Revenue [Line Items]
Total revenue		5,404,000		12,032,000
AGREE [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Karaoke machines and releated consumer goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Revenue from Contract with Customer Benchmark [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,512,000	5,404,000	13,652,000	12,032,000
AGREE [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue	5,512,000	5,404,000	13,652,000	12,032,000
AGREE [Member] | North America [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue
AGREE [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Energy [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,353,000	12,929,000	37,039,000	38,713,000
Energy [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	26,000	439,000	94,000	987,000
Energy [Member] | Revenue from contracts with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,353,000	12,929,000	37,039,000	38,713,000
Energy [Member] | Power supply units and systems [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Energy [Member] | Revenue From Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Energy [Member] | Revenue From Sentinum Crypto Mining Equipment Hosted At Third Party Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Energy [Member] | Hotel and real estate operations [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Energy [Member] | Crane Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,327,000	12,490,000	36,945,000	37,726,000
Energy [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue	26,000	439,000	94,000	987,000
Energy [Member] | Revenues from contract with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,353,000	12,929,000	37,039,000	38,713,000
Energy [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Energy [Member] | Total [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,353,000	12,929,000	37,039,000	38,713,000
Energy [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,327,000	12,490,000	36,945,000	37,726,000
Energy [Member] | Karaoke machines and releated consumer goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Energy [Member] | Revenue from Contract with Customer Benchmark [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,353,000	12,929,000	37,039,000	38,713,000
Energy [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue	12,327,000	12,929,000	36,945,000	38,604,000
Energy [Member] | North America [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Energy [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue	26,000		94,000	109,000
Energy [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member]
Disaggregation of Revenue [Line Items]
Total revenue	54,000	18,000	121,000	63,000
ROI [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	54,000	18,000	121,000	63,000
ROI [Member] | Revenue from contracts with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	54,000	18,000	121,000	63,000
ROI [Member] | Power supply units and systems [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Revenue From Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Revenue From Sentinum Crypto Mining Equipment Hosted At Third Party Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Hotel and real estate operations [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Crane Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue	54,000	18,000	121,000	63,000
ROI [Member] | Revenues from contract with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	54,000	18,000	121,000	63,000
ROI [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Total [Member]
Disaggregation of Revenue [Line Items]
Total revenue	54,000	18,000	121,000	63,000
ROI [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Karaoke machines and releated consumer goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Revenue from Contract with Customer Benchmark [Member]
Disaggregation of Revenue [Line Items]
Total revenue	54,000	18,000	121,000	63,000
ROI [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue	54,000	18,000	121,000	63,000
ROI [Member] | North America [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue
ROI [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member]
Disaggregation of Revenue [Line Items]
Total revenue	845,000		1,819,000
Holding Company [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue	845,000		1,817,000
Holding Company [Member] | Revenue from contracts with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	845,000		1,817,000
Holding Company [Member] | Power supply units and systems [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member] | Revenue From Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member] | Revenue From Sentinum Crypto Mining Equipment Hosted At Third Party Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member] | Hotel and real estate operations [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member] | Crane Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue	845,000		1,819,000
Holding Company [Member] | Revenues from contract with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue	845,000		1,819,000
Holding Company [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member] | Total [Member]
Disaggregation of Revenue [Line Items]
Total revenue	845,000		1,819,000
Holding Company [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member] | Revenue from Contract with Customer Benchmark [Member]
Disaggregation of Revenue [Line Items]
Total revenue	845,000		1,819,000
Holding Company [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue	845,000		1,819,000
Holding Company [Member] | North America [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue
Holding Company [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member]
Disaggregation of Revenue [Line Items]
Total revenue		15,931,000		21,939,000
SMC [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue		15,931,000		21,939,000
SMC [Member] | Revenue from contracts with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue		15,931,000		21,939,000
SMC [Member] | Power supply units and systems [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Revenue From Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Revenue From Sentinum Crypto Mining Equipment Hosted At Third Party Facilities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Hotel and real estate operations [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Crane Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Revenues from contract with customer [Member]
Disaggregation of Revenue [Line Items]
Total revenue		15,931,000		21,939,000
SMC [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Total [Member]
Disaggregation of Revenue [Line Items]
Total revenue		15,931,000		21,939,000
SMC [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Karaoke machines and releated consumer goods [Member]
Disaggregation of Revenue [Line Items]
Total revenue		15,931,000		21,939,000
SMC [Member] | Revenue from Contract with Customer Benchmark [Member]
Disaggregation of Revenue [Line Items]
Total revenue		15,931,000		21,939,000
SMC [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Total revenue		15,931,000		21,939,000
SMC [Member] | North America [Member] | Revenue lending and trading activities [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Europe [Member]
Disaggregation of Revenue [Line Items]
Total revenue
SMC [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Total revenue

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Inputs, Level 3 [Member] | Warrant and embedded conversion feature liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value		$ 155,000	$ 910,000	$ 229,000	$ 2,577,000	$ 2,316,000
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	883,000		2,906,000
Total liabilities measured at fair value	8,000		970,000
Fair Value, Recurring [Member] | Warrant and embedded conversion feature liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	8,000		970,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	883,000		2,906,000
Total liabilities measured at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Warrant and embedded conversion feature liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Total liabilities measured at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Warrant and embedded conversion feature liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Total liabilities measured at fair value	8,000		970,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Warrant and embedded conversion feature liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	8,000		970,000
Alzamend Neuro Inc [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	131,000		679,000
Alzamend Neuro Inc [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	131,000		679,000
Alzamend Neuro Inc [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Alzamend Neuro Inc [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Marketable Equity Securities [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	687,000		27,000
Marketable Equity Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	687,000		27,000
Marketable Equity Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Marketable Equity Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Crypto Assets [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	65,000
Crypto Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	65,000
Crypto Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Crypto Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Cash and marketable securities held in trust [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value			2,200,000
Cash and marketable securities held in trust [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value			2,200,000
Cash and marketable securities held in trust [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value
Cash and marketable securities held in trust [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - Fair Value, Inputs, Level 3 [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Warrant Liabilities [Member]
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Balance at beginning of period	$ 578,000	$ 2,446,000	$ 60,000	$ 651,000
Fair Value Adjustments	(570,000)	(2,446,000)	(52,000)	(4,981,000)
Grants				4,330,000
Balance at end of period	8,000		8,000
Warrant and embedded conversion feature liabilities [Member]
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Balance at beginning of period	155,000	2,577,000	910,000	2,316,000
Fair Value Adjustments	(155,000)	(2,348,000)	(910,000)	(3,439,000)
Grants				1,352,000
Balance at end of period		$ 229,000		$ 229,000

XML

Equity Investments for Which Measurement Alternative Has Been Selected (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Equity Investments For Which Measurement Alternative Has Been Selected
Equity investments in other securities	$ 5,300,000		$ 21,800,000
Equity method investment, other than temporary impairment	6,300,000	$ 11,600,000
Prior year adjustments	$ 6,300,000	$ 9,600,000

XML

MARKETABLE EQUITY SECURITIES (Details) - Common Stock [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Cost	$ 5,476,000	$ 5,119,000
Gross unrealized gains	672,000	12,000
Gross unrealized losses	(5,461,000)	(5,104,000)
Fair value	$ 687,000	$ 27,000

XML

CRYPTO ASSETS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Mined Crypto Assets At Sentinum Owned And Operated Facilities [Member]
Property, Plant and Equipment [Line Items]
Revenues	$ 4,362,000	$ 6,389,000	$ 19,563,000	$ 21,103,000
Crypto Assets [Member]
Property, Plant and Equipment [Line Items]
Revenues	902,000	1,169,000	25,201,000	23,273,000
Sentinum mining equipment hosted at third party facilities [Member]
Property, Plant and Equipment [Line Items]
Revenues	$ 5,264,000	$ 7,558,000	$ 5,638,000	$ 2,170,000

XML

CRYPTO ASSETS (Details 1) - Crypto Assets [Member] - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Line Items]
Beginning balance	$ 546,000	$ 554,000
Additions of mined crypto assets	19,563,000	21,103,000
Sale of crypto assets	(20,038,000)	(21,330,000)
Payments to vendors with crypto assets	(31,000)	(20,000)
Payment of notes payable with crypto assets	(506,000)
Payment of interest payable with crypto assets	(142,000)
Realized gain on sale of crypto assets	649,000	404,000
Unrealized gain on crypto assets	24,000
Impairment of mined crypto assets		(376,000)
Ending balance	$ 65,000	$ 335,000

XML

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 178,274,000	$ 222,875,000
Accumulated depreciation and amortization	(17,400,000)	(27,209,000)
Property, Plant and Equipment, Net	160,874,000	195,666,000
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	92,850,000	100,184,000
Crypto Assets Mining Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	12,162,000	50,640,000
Crane Rental Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	34,500,000	34,469,000
Computer Software, Intangible Asset [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	11,276,000	10,533,000
Aircraft [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	15,983,000	15,983,000
Other Property And Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 11,503,000	$ 11,066,000

XML

PROPERTY AND EQUIPMENT, NET (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 7,533,000	$ 9,894,000	$ 19,174,000	$ 21,823,000

XML

PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Impairment charge		$ 10,500,000
Bitcoin price	$ 76,000
Real Estate [Member]
Impairment charge	$ 1,200,000	$ 9,200,000

XML

INTANGIBLE ASSETS, NET (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Indefinite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (719,000)	$ (222,000)
Total definite-lived intangible assets	$ 3,682,000	4,047,000
Developed Technology [Member]
Indefinite-Lived Intangible Assets [Line Items]
Useful Life	7 years
Intangible assets, gross	$ 2,081,000	1,949,000
Customer Lists [Member]
Indefinite-Lived Intangible Assets [Line Items]
Useful Life	10 years
Intangible assets, gross	$ 1,290,000	1,290,000
Trade Names [Member]
Indefinite-Lived Intangible Assets [Line Items]
Useful Life	12 years
Intangible assets, gross	$ 1,030,000	1,030,000
Domain name and other intangible assets [Member]
Indefinite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 4,401,000	$ 4,269,000

XML

INTANGIBLE ASSETS, NET (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 371,000	$ 226,000	$ 479,000	$ 541,000

XML

INTANGIBLE ASSETS, NET (Details 2)	Sep. 30, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2024 (remainder)	$ 124,000
2025	494,000
2026	494,000
2027	494,000
2028	494,000
2029	370,000
Thereafter	1,212,000
Finite-Lived Intangible Assets, Net	$ 3,682,000

XML

INTANGIBLE ASSETS, NET (Details Narrative)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Estimated useful lives description	intangible assets subject to amortization have an average remaining useful life of 6.9 years.

XML

INVESTMENTS - RELATED PARTIES (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Interest Rate	8.00%
Due date	December 31, 2024
Investment in promissory note of Ault & Company and GIGA	$ 2,500,000		$ 2,500,000
Accrued interest receivable GIGA	768,000
Accrued interest receivable Ault & Company	568,000		568,000
Other	211,000		900,000
Allowance for credit losses	(5,668,000)
Total investment in promissory notes and other, related parties	$ 14,786,000		3,968,000
Ten Percentage Senior Secured Convertible Promissory Note [Member] | GIGA [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Interest Rate	10.00%
Due date	December 31, 2024
Investment in promissory note of Ault & Company and GIGA	$ 4,383,000
Twelve Percentage Senior Secured Subordinated Convertible Promissory Note [Member] | GIGA [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Interest Rate	10.00%
Due date	December 31, 2024
Investment in promissory note of Ault & Company and GIGA	$ 6,750,000
Twelve Percentage Senior Secured Subordinated Convertible Promissory Note 2 [Member] | GIGA [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Interest Rate	12.00%
Due date	June 30, 2025
Investment in promissory note of Ault & Company and GIGA	$ 5,194,000
Debtor In Possession Loan Agreement [Member] | GIGA [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Interest Rate	6.00%
Due date	October 28, 2024
Investment in promissory note of Ault & Company and GIGA	$ 80,000

XML

INVESTMENTS - RELATED PARTIES (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]
Interest income, related party	$ 557,000	$ 50,000	$ 1,144,000	$ 150,000

XML

INVESTMENTS - RELATED PARTIES (Details 2) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Cost	$ 26,797,000
Gross unrealized losses	(24,566,000)
Fair value	2,231,000
Common Stock [Member]
Cost	24,697,000	$ 24,688,000
Gross unrealized losses	(24,566,000)	(24,009,000)
Fair value	131,000	$ 679,000
Alzamend Series B Convertible Preferred Stock Warrants [Member]
Cost	2,100,000
Gross unrealized losses
Fair value	$ 2,100,000

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INVESTMENTS - RELATED PARTIES (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]
Beginning Balance	$ 304,000	$ 5,836,000	$ 679,000	$ 6,449,000
Investment in common stock of Alzamend			9,000	15,000
Unrealized loss in common stock of Alzamend	(173,000)	(3,124,000)	(557,000)	(3,752,000)
Ending Balance	$ 131,000	$ 2,712,000	$ 131,000	$ 2,712,000

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INVESTMENTS - RELATED PARTIES (Details 4) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]
Investment in Alzamend preferred stock	$ 2,100,000
Total investment in other investments securities, related party	$ 2,100,000

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INVESTMENTS – RELATED PARTIES (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2024	Sep. 30, 2024
Defined Benefit Plan Disclosure [Line Items]
Loan loss reserve	$ 3,100,000
Messrs Ault [Member]
Defined Benefit Plan Disclosure [Line Items]
Related party payment		$ 50,000
Nisser [Member]
Defined Benefit Plan Disclosure [Line Items]
Related party payment		$ 50,000

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EQUITY METHOD INVESTMENT (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Loss from investment in unconsolidated entity			$ (1,958,000)
SMC Acquisition [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			1,957,000
Loss from investment in unconsolidated entity			(1,957,000)
Ending balance

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ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accounts payable	$ 20,419,000	$ 26,777,000
Accrued payroll and payroll taxes	8,773,000	8,237,000
Warrant liabilities	8,000	60,000
Interest payable	8,669,000	4,197,000
Accrued legal	2,439,000	2,340,000
Other accrued expenses	18,166,000	13,811,000
Total	$ 58,474,000	$ 55,422,000

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DIVIDEND PAYABLE IN TURNONGREEN COMMON STOCK (Details Narrative)	9 Months Ended
	Sep. 30, 2024 USD ($) shares
Dividend Payable In Turnongreen Common Stock
Dividend payable shares	25,000,000.0
Shares purchased	25,000,000.0
Non-controlling interest | $	$ 4,900,000

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ROI Transfers of White River Common Stock (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Feb. 14, 2024	Sep. 30, 2024
Investment owned, fair value		$ 2,231,000
Unrealized gain		$ 17,900,000
Ault lending transfer description	ROI transferred 2.5 million shares of White River common stock with a carryover basis of $0.5 million and a fair value of $7.5 million on the date of transfer to Ault Lending.
Accredited Investors [Member]
Shares held in employee trust, shares		12,000,000.0
Investment owned, fair value		$ 19,200,000

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REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Redeemable Noncontrolling Interests In Equity Of Subsidiary Liability
Redeemable noncontrolling interests at beginning	$ 795,000	$ 1,951,000	$ 2,224,000	$ 117,993,000
Redemption of Ault Disruptive common stock			(1,463,000)	(120,064,000)
Remeasurement of carrying value to redemption value	9,000	228,000	43,000	4,250,000
Redeemable noncontrolling interests at ending	$ 804,000	$ 2,179,000	$ 804,000	$ 2,179,000

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REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY (Details Narrative) - USD ($)		9 Months Ended
	Oct. 11, 2024	Sep. 30, 2024
Redeemable Noncontrolling Interests In Equity Of Subsidiary Liability
Stock redeemed during the period, value	$ 800,000	$ 1,500,000

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NOTES PAYABLE (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Total notes payable	$ 104,796,000
Total notes payable	(306,000)	$ (453,000)
Total notes payable	104,490,000	97,112,000
Total notes payable	(87,730,000)	(11,692,000)
Total notes payable	$ 16,760,000	85,420,000
AGREE Secured Construction Loans [Member]
Short-Term Debt [Line Items]
Collateral	AGREE hotels
Interest rate	7.00%
Due date	Jan. 01, 2025
Total notes payable	$ 68,750,000	67,632,000
Circle 8 Revolving Credit Facility [Member]
Short-Term Debt [Line Items]
Collateral	Circle 8 cranes with a book value of $29.6 million
Interest rate	10.00%
Due date	Dec. 16, 2025
Total notes payable	$ 13,651,000	15,907,000
Promissory Note 16 Percent [Member]
Short-Term Debt [Line Items]
Interest rate	16.00%
Due date	Jul. 15, 2024
Total notes payable	$ 5,572,000	2,572,000
Circle 8 equipment financing notes [Member]
Short-Term Debt [Line Items]
Collateral	Circle 8 equipment with a book value of $4.3 million
Interest rate	10.50%
Total notes payable		950,000
Circle 8 equipment financing notes [Member] | Minimum [Member]
Short-Term Debt [Line Items]
Due date	Sep. 15, 2025
Circle 8 equipment financing notes [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Due date	Jun. 15, 2027
Secured Promissory Notes 8 Percent [Member]
Short-Term Debt [Line Items]
Interest rate	8.00%
Total notes payable		3,829,000
Term Note 15 Percent [Member]
Short-Term Debt [Line Items]
Interest rate	15.00%
Due date	Oct. 31, 2024
Total notes payable	$ 5,629,000	5,399,000
Promissory Note 15 Percent [Member]
Short-Term Debt [Line Items]
Total notes payable
Sentinum Note Payable [Member]
Short-Term Debt [Line Items]
Interest rate	12.50%
Total notes payable		1,067,000
ROI Promissory Note [Member]
Short-Term Debt [Line Items]
Interest rate	15.00%
Due date	Apr. 30, 2024
Total notes payable	$ 2,094,000
Other [Member]
Short-Term Debt [Line Items]
Total notes payable	$ 5,501,000	$ 3,808,000

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NOTES PAYABLE (Details 1)	Sep. 30, 2024 USD ($)
Debt Disclosure [Abstract]
2024 (remainder)	$ 19,261,000
2025	84,124,000
2026	879,000
2027	266,000
2028	266,000
Total	$ 104,796,000

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NOTES PAYABLE (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Disclosure [Abstract]
Contractual interest expense	$ 5,350,000	$ 4,986,000	$ 10,725,000	$ 9,645,000
Forbearance fees	1,050,000	518,000	3,300,000	7,319,000
Amortization of debt discount	1,366,000	634,000	4,800,000	18,216,000
Total interest expense	$ 7,766,000	$ 6,138,000	$ 18,825,000	$ 35,180,000

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NOTES PAYABLE (Details Narrative) - USD ($)				3 Months Ended	9 Months Ended
	Jul. 02, 2024	Jun. 04, 2024	Feb. 09, 2024	Apr. 29, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable					$ 9,453,000		$ 9,453,000
Net proceeds from notes payable					49,237,000	$ 81,026,000
O I D Only Term Note [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable	$ 2,600,000
Principal amount	1,800,000
Net proceeds from notes payable	$ 1,500,000
Maturity date	Oct. 16, 2024
Extension fee	$ 200,000
R O I 15 Percentage Term Note [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable			$ 1,770,000
Principal amount			2,100,000
Net proceeds from notes payable			$ 1,750,000
Maturity date			Apr. 30, 2024
Interest rate			15.00%
Interest rate, increase			18.00%
Term Note 15 Percentage [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Convertible notes payable				$ 5,700,000
Net proceeds from notes payable				$ 5,100,000
Maturity date				Oct. 31, 2024
Interest rate				15.00%
Credit Agreement 20 Million [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Principal amount		$ 2,000,000.0
Maturity date		Dec. 04, 2024
Line of Credit		$ 20,000,000.0
Advance credit		$ 2,000,000.0
Original issue discount					$ 400,000
Original issuance discount		20.00%

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NOTES PAYABLE, RELATED PARTY (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]
Notes payable, related party	$ 171,000	$ 2,272,000
Notes From Officers Hyperscale Data [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest rate	18.00%
Notes payable, related party		98,000
Notes from officers turn on green [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest rate	14.00%
Notes payable, related party	$ 46,000	51,000
Notes from board member ROI [Member]
Defined Benefit Plan Disclosure [Line Items]
Notes payable, related party		90,000
Ault and company advances [Member]
Defined Benefit Plan Disclosure [Line Items]
Notes payable, related party		1,909,000
Other Related Party Advances [Member]
Defined Benefit Plan Disclosure [Line Items]
Notes payable, related party	$ 125,000	$ 124,000

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NOTES PAYABLE, RELATED PARTY (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Notes Payable Related Party
Interest expense, related party	$ 1,000		$ 20,000

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CONVERTIBLE NOTES (Details) - USD ($)		9 Months Ended
		Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total convertible notes payable			$ 910,000
Fair value of embedded options and derivatives		19,279,000	19,007,000
Less: unamortized debt discounts		(101,000)	(2,179,000)
Total convertible notes payable, net of financing cost, long term		19,178,000	16,828,000
Less: current portion		(9,725,000)	(7,375,000)
Convertible Notes Payable Net of Financing Cost Long Term		$ 9,453,000	9,453,000
Convertible Promissory Note [Member]
Debt Instrument [Line Items]
Due date		Sep. 28, 2024
Total convertible notes payable		$ 393,000	1,673,000
O I D Convertible Promissory Note 10 Percentage [Member]
Debt Instrument [Line Items]
Due date		Oct. 19, 2024
Total convertible notes payable		$ 4,730,000
Conversion price per share		$ 0.17
Interest rate on convertible note		18.00%
AVLP Convertible Promissory Notes [Member]
Debt Instrument [Line Items]
Due date		Aug. 22, 2025
Total convertible notes payable		$ 9,911,000	9,911,000
Conversion price per share		$ 0.35
Interest rate on convertible note		7.00%
ROI Senior Secured Convertible Note [Member]
Debt Instrument [Line Items]
Due date	[1]	Apr. 27, 2024
Total convertible notes payable	[1]	$ 4,245,000	$ 6,513,000
Conversion price per share	[1]	$ 0.11

[1] See Arena litigation discussed in Note 22 below.

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CONVERTIBLE NOTES (Details 1)	Sep. 30, 2024 USD ($)
Debt Instrument [Line Items]
2024	$ 19,261,000
2025	84,124,000
Convertible notes payable	104,796,000
Convertible Debt [Member]
Debt Instrument [Line Items]
2024	9,368,000
2025	9,911,000
Convertible notes payable	$ 19,279,000

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CONVERTIBLE NOTES (Details 2)	5 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Dec. 31, 2023
Convertible Notes
Contractual term in years	1 year		2 years 8 months 12 days
Volatility	111.00%	75.00%	82.00%
Dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	3.50%	4.00%	4.00%

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CONVERTIBLE NOTES (Details 3)	9 Months Ended
	Sep. 30, 2024 USD ($)
Convertible Notes
Beginning balance	$ 910,000
Change in fair value	(910,000)
Ending balance

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CONVERTIBLE NOTES (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 11, 2024	Jul. 18, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Instrument [Line Items]
Gain on extinguishment of debt			$ (240,000)	$ (1,546,000)	$ 502,000	$ (1,700,000)
Senior Secured Convertible Notes [Member]
Debt Instrument [Line Items]
Converted amount					2,300,000
Fair value			900,000		900,000
Gain on extinguishment of debt					1,400,000
Investor [Member]
Debt Instrument [Line Items]
Note purchase price		$ 4,900,000
Debt instrument, interest rate during period		15.00%
Common stock convertible conversion price		$ 0.17
O I D Convertible Promissory Note 10 Percentage [Member] | Investor [Member]
Debt Instrument [Line Items]
Sale of stock amount		$ 5,400,000
Converted amount					$ 700,000
Converted shares					3,000,000.0
Fair value			$ 900		$ 900
Gain on extinguishment of debt					$ 200,000
Convertible promissory notes [Member] | Investor [Member]
Debt Instrument [Line Items]
Sale of stock amount	$ 2,000,000.0
Debt instrument, interest rate during period	6.00%
Common stock convertible conversion price	$ 0.35
Gain on extinguishment of debt	$ 700,000

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COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Sep. 30, 2024	Jul. 08, 2024	May 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Damaged property costs		$ 4,200,000	$ 3,750,000
Accrued contingent loss	$ 2,400,000			$ 2,300,000

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STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended	9 Months Ended
	Oct. 31, 2024	Sep. 17, 2024	Jun. 20, 2024	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Segregated Account [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amount diposited	$ 400,000				$ 6,500,000
Series C Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred stock, par value per share				$ 0.001	$ 0.001	$ 0.001
At The Market Issuance Sales Agreement [Member] | Series C Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sold an aggregate shares				300	2,800
Number of shares agreed to purchase				100,000	800,000
Number of shares agreed to purchase, value				$ 300,000	$ 2,800,000
At The Market Issuance Sales Agreement [Member] | Common Stock [Member] | Issuances 2023 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Sold an aggregate shares				0	25,600,000
Proceeds from issuance of common stock				$ 0	$ 14,600,000
Guarantee Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Description of agreed to deposit		(i) $0.4 million monthly commencing on September 30, 2024 and ending on February 28, 2025; and (ii) $0.5 million monthly commencing on March 31, 2025 and ending on the earlier of the term loan maturity date, prepayment of the term loan in full or the date on which the balance of the Segregated Account exceeds 110% of the outstanding balance of the term loan.
ELOC Purchase Agreement [Member] | Orion equity partners LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares agreed to purchase, value			$ 37,500,000
Interest rate			13.00%
Term			36 months
ELOC Purchase Agreement [Member] | Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | Orion equity partners LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred stock, par value per share			$ 0.001

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INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent	0.10%	2.00%	0.21%	0.40%
Income tax provision	$ 67,000	$ 100,000	$ 47,000	$ 500,000
Effective income tax rate reconciliation, at federal statutory income tax rate, percent			21.00%

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NET LOSS PER SHARE (Details) - shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	279,644,000	3,000
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	264,322,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	15,006,000	2,000
Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	315,000
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,000	1,000

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SEGMENT AND CUSTOMERS INFORMATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Impairment of property and equipment	$ 11,791,000	$ 3,895,000	$ 19,746,000	$ 3,895,000
(Loss) income from operations	(24,595,000)	(20,350,000)	(47,869,000)	(97,155,000)
Interest expense	7,766,000	6,137,000	18,825,000	35,180,000
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenue, product	2,215,000	17,554,000	5,785,000	25,754,000
Revenue, crypto assets mining	5,264,000	7,558,000	25,201,000	23,273,000
Revenue, hotel and real estate operations	5,680,000		14,377,000
Revenue, crane operations	12,327,000	12,490,000	36,945,000	37,726,000
Revenue, lending and trading activities	5,575,000	(249,000)	4,911,000	4,337,000
Total revenues	31,061,000	43,090,000	87,219,000	104,238,000
Depreciation and amortization expense	7,904,000	8,561,000	19,653,000	22,378,000
Impairment of property and equipment	11,791,000		19,746,000
(Loss) income from operations	(24,595,000)	(20,350,000)	(47,869,000)	(97,155,000)
Interest expense	(7,766,000)		(18,825,000)
Capital expenditures for the three months ended September 30, 2023	1,110,000	3,396,000	4,763,000	14,607,000
Segment identifiable assets as of December 31, 2023			231,198,000	280,397,000
Revenue, commercial real estate leases		5,737,000		13,148,000
Operating Segments [Member] | Turn On Green [Member]
Segment Reporting Information [Line Items]
Revenue, product	1,290,000	1,166,000	3,751,000	2,765,000
Revenue, crypto assets mining
Revenue, hotel and real estate operations
Revenue, crane operations
Revenue, lending and trading activities
Total revenues	1,290,000	1,166,000	3,751,000	2,765,000
Depreciation and amortization expense	25,000	24,000	73,000	68,000
Impairment of property and equipment
(Loss) income from operations	(1,479,000)	(1,498,000)	(2,781,000)	(4,067,000)
Interest expense	157,000
Capital expenditures for the three months ended September 30, 2023	45,000	121,000	53,000	131,000
Segment identifiable assets as of December 31, 2023			3,755,000	4,995,000
Operating Segments [Member] | Fintech [Member]
Segment Reporting Information [Line Items]
Revenue, product
Revenue, crypto assets mining
Revenue, hotel and real estate operations
Revenue, crane operations
Revenue, lending and trading activities	5,575,000	(249,000)	4,911,000	4,337,000
Total revenues	5,575,000	(249,000)	4,911,000	4,337,000
Depreciation and amortization expense
Impairment of property and equipment
(Loss) income from operations	4,484,000	(1,039,000)	3,634,000	1,091,000
Interest expense	3,000		(5,000)
Capital expenditures for the three months ended September 30, 2023
Segment identifiable assets as of December 31, 2023			12,787,000	17,027,000
Operating Segments [Member] | Sentinum [Member]
Segment Reporting Information [Line Items]
Revenue, product
Revenue, crypto assets mining	5,264,000	7,558,000	25,201,000	23,273,000
Revenue, hotel and real estate operations	168,000		725,000
Revenue, crane operations
Revenue, lending and trading activities
Total revenues	5,432,000	7,891,000	25,926,000	24,389,000
Depreciation and amortization expense	4,170,000	5,792,000	12,322,000	14,362,000
Impairment of property and equipment	10,500,000		10,500,000
(Loss) income from operations	(13,887,000)	(2,661,000)	(11,066,000)	(4,363,000)
Interest expense	(4,000)		(122,000)
Capital expenditures for the three months ended September 30, 2023	690,000	261,000	1,675,000	1,426,000
Segment identifiable assets as of December 31, 2023			37,249,000	59,903,000
Revenue, commercial real estate leases		333,000		1,116,000
Operating Segments [Member] | AGREE [Member]
Segment Reporting Information [Line Items]
Revenue, product
Revenue, crypto assets mining
Revenue, hotel and real estate operations	5,512,000		13,652,000
Revenue, crane operations
Revenue, lending and trading activities
Total revenues	5,512,000	5,404,000	13,652,000	12,032,000
Depreciation and amortization expense	1,771,000	774,000	2,162,000	2,408,000
Impairment of property and equipment	1,291,000		9,246,000
(Loss) income from operations	(1,268,000)	1,050,000	(8,850,000)	(349,000)
Interest expense	(2,362,000)		(5,345,000)
Capital expenditures for the three months ended September 30, 2023	112,000	518,000	774,000	6,035,000
Segment identifiable assets as of December 31, 2023			81,331,000	90,991,000
Revenue, commercial real estate leases		5,404,000		12,032,000
Operating Segments [Member] | Energy [Member]
Segment Reporting Information [Line Items]
Revenue, product	26,000	439,000	94,000	987,000
Revenue, crypto assets mining
Revenue, hotel and real estate operations
Revenue, crane operations	12,327,000	12,490,000	36,945,000	37,726,000
Revenue, lending and trading activities
Total revenues	12,353,000	12,929,000	37,039,000	38,713,000
Depreciation and amortization expense	1,426,000	1,073,000	3,513,000	3,053,000
Impairment of property and equipment
(Loss) income from operations	514,000	2,505,000	1,464,000	(30,216,000)
Interest expense	(682,000)		(2,693,000)
Capital expenditures for the three months ended September 30, 2023	188,000	1,983,000	2,054,000	3,319,000
Segment identifiable assets as of December 31, 2023			50,537,000	51,254,000
Operating Segments [Member] | ROI [Member]
Segment Reporting Information [Line Items]
Revenue, product	54,000	18,000	121,000	63,000
Revenue, crypto assets mining
Revenue, hotel and real estate operations
Revenue, crane operations
Revenue, lending and trading activities
Total revenues	54,000	18,000	121,000	63,000
Depreciation and amortization expense	19,000	32,000	57,000	152,000
Impairment of property and equipment
(Loss) income from operations	(8,877,000)	(13,315,000)	(15,891,000)	(33,590,000)
Interest expense	328,000		(2,215,000)
Capital expenditures for the three months ended September 30, 2023	53,000		112,000	407,000
Segment identifiable assets as of December 31, 2023			1,309,000	9,937,000
Operating Segments [Member] | Holding Company [Member]
Segment Reporting Information [Line Items]
Revenue, product	845,000		1,819,000
Revenue, crypto assets mining
Revenue, hotel and real estate operations
Revenue, crane operations
Revenue, lending and trading activities
Total revenues	845,000		1,819,000
Depreciation and amortization expense	493,000	528,000	1,526,000	1,556,000
Impairment of property and equipment
(Loss) income from operations	(4,082,000)	(5,359,000)	(14,379,000)	(20,011,000)
Interest expense	(5,206,000)		(8,445,000)
Capital expenditures for the three months ended September 30, 2023	$ 22,000	314,000	95,000	2,906,000
Segment identifiable assets as of December 31, 2023			$ 44,230,000	43,943,000
Operating Segments [Member] | Ault Disruptive [Member]
Segment Reporting Information [Line Items]
Revenue, product
Revenue, crypto assets mining
Revenue, crane operations
Revenue, lending and trading activities
Total revenues
Depreciation and amortization expense
(Loss) income from operations		(214,000)		(1,052,000)
Capital expenditures for the three months ended September 30, 2023
Segment identifiable assets as of December 31, 2023				2,347,000
Operating Segments [Member] | SMC [Member]
Segment Reporting Information [Line Items]
Revenue, product		15,931,000		21,939,000
Revenue, crypto assets mining
Revenue, crane operations
Revenue, lending and trading activities
Total revenues		15,931,000		21,939,000
Depreciation and amortization expense		338,000		779,000
(Loss) income from operations		181,000		(4,598,000)
Capital expenditures for the three months ended September 30, 2023		$ 199,000		383,000
Segment identifiable assets as of December 31, 2023

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CONCENTRATIONS OF CREDIT AND REVENUE RISK (Details Narrative) - Customer Concentration Risk [Member]	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Revenue Benchmark [Member] | Customer A [Member]
Product Information [Line Items]
Concentration risk, percentage	14.00%	22.00%
Revenue Benchmark [Member] | Customer B [Member]
Product Information [Line Items]
Concentration risk, percentage			11.00%
Accounts Receivable [Member] | Customer C [Member]
Product Information [Line Items]
Concentration risk, percentage				17.00%

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SUBSEQUENT EVENTS (Details Narrative) - USD ($) shares in Millions		1 Months Ended		2 Months Ended	3 Months Ended	9 Months Ended
	Oct. 02, 2024	Nov. 29, 2024	Nov. 15, 2024	Nov. 30, 2024	Sep. 30, 2024	Sep. 30, 2024
Subsequent Event [Line Items]
Impairment charge						$ 10,500,000
Class B Common Stock [Member]
Subsequent Event [Line Items]
Stock or Units Available for Distributions			5.0
Distribution description		The record date for the Distribution is November 29, 2024. Stockholders who own the Company’s Class A Common Stock at the close of trading on that date will be eligible to receive the shares of Class B Common Stock. Further, the Company has set a payment date of December 16, 2024, subject to adjustment. On the record date, the Company anticipates there will be approximately 1.1 million shares of Class A Common Stock and approximately 5.9 million Class A Common Stock equivalents, based on the current conversion price of the Company’s Series C Convertible Preferred Stock, issued and outstanding (collectively, the “Eligible Capital Stock”), for an aggregate of approximately 7.0 million shares of Eligible Capital Stock. Consequently, the number of shares of Class B Common Stock issuable is approximately 0.71 for each share of Eligible Capital Stock. The foregoing figures reflect the implementation of the one-for-thirty-five reserve stock split that will be effectuated on November 25, 2024.
St. Petersburg [Member]
Subsequent Event [Line Items]
Sale of property	$ 13,200,000
Obligation payment	$ 11,000,000
Impairment charge					$ 1,300,000	$ 1,300,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Additional Closings of Series C Preferred Stock, Related Party description				Company sold to Ault & Company an aggregate of 2,230 shares of Series C Preferred Stock and Warrants to purchase 0.7 million shares of Class A common stock, for a total purchase price of $2.2 million.