Fri, Aug 16, 9:22 PM (151 days ago)
Ault Alliance, Inc. reported significant financial challenges for Q2 2024, with a net loss of $39.8 million compared to $64.3 million in Q2 2023. Total revenue decreased to $28.4 million from $47.4 million, primarily due to a substantial loss in lending and trading activities. Digital asset mining revenues slightly increased, while hotel operations showed growth. The company’s gross profit turned negative, reflecting increased costs across operations, including impairments totaling $8 million related to property and equipment. Ault Alliance faced liquidity issues, with cash and equivalents of $9.6 million and negative working capital of $162.4 million. The company emphasized the need for additional capital to sustain operations, with plans to raise funds through equity and debt sales. The ongoing uncertainties, including litigation and impairments, raise substantial doubt about its ability to continue as a going concern. Management aims to enhance operational efficiency and financial reporting controls amid these challenges, while also navigating significant debts and potential litigation impacts on future performance.