TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which
owns and operates vertically integrated, domestic Bitcoin mining
facilities powered by more than 91% zero-carbon energy, today
announced its unaudited interim financial results for the third
quarter of fiscal year 2023 and provided an operational update.
Third Quarter 2023 GAAP Operational and Financial
Highlights
- Self-mined 611 bitcoin at Lake Mariner and realized another 13
bitcoin via hosting profit share.
- Revenue increased to $19.0 million in Q3 2023 compared to $15.5
million in Q2 2023.
- Gross profit increased to $10.7 million in Q3 2023 compared to
$10.3 million in Q2 2023.
- Total installed hashrate capacity of 5.5 EH/s as of September
30, 2023, representing an increase of 267% relative to the same
prior year period.
- Announced order of 18,500 Antminer S19j XP bitcoin miners for a
total price of $75.4 million. After coupons and credits, the
Company currently expects to pay $53.4 million, or $19.0 per
terahash.
Key GAAP Metrics ($ in thousands) |
|
Three Months Ended Q3 2023 |
|
|
Three Months Ended Q2 2023 |
|
% Change |
|
Revenue |
$ |
18,955 |
|
$ |
15,456 |
|
22.6 |
% |
Gross profit |
$ |
10,687 |
|
$ |
10,343 |
|
3.3 |
% |
Gross profit margin |
|
56.4 |
% |
|
66.9 |
% |
(15.7 |
%) |
|
|
|
|
|
|
|
|
|
Third Quarter 2023 Non-GAAP Operational and Financial
Highlights
- Self-mined 994 bitcoin across the Lake Mariner and Nautilus
Cryptomine facilities plus hosting profit share.
- Total value of bitcoin self-mined1 of $27.9 million2 in Q3 2023
compared to $25.3 million3 in Q2 2023.
- Power cost per bitcoin self-mined increased 29%
quarter-over-quarter, from $7,197 per bitcoin in Q2 2023 to $9,322
per bitcoin in Q3 2023, due to the 13% increase in network
difficulty during the period and higher energy prices at the Lake
Mariner facility in New York.
- Adjusted EBITDA increased 19% to $9.0 million in Q3 2023
compared to $7.6 million in Q2 2023.
Key Non-GAAP Metrics 4 |
|
Three Months Ended Q3 2023 |
|
|
Three Months Ended Q2 2023 |
|
% Change |
|
Bitcoin Self-Mined 5 |
|
994 |
|
|
908 |
|
9.5 |
% |
Value per Bitcoin Self-Mined 6 |
$ |
28,104 |
|
$ |
27,913 |
|
0.7 |
% |
Power Cost per Bitcoin Self-Mined 7 |
$ |
9,322 |
|
$ |
7,197 |
|
29.5 |
% |
Avg. Operating Hash Rate (EH/s) 8 |
|
4.8 |
|
|
4.0 |
|
20.0 |
% |
_______________1 Includes BTC earned from profit
sharing associated with a hosting agreement that expires in
December 2023 at the Lake Mariner facility and TeraWulf’s net share
of BTC produced at the Nautilus Cryptomine facility.2 Values profit
share BTC at $28,104 per BTC as opposed to $38,000 per BTC, which
was the quoted price of bitcoin in the Company’s principal market
at the time of hosting contract inception.3 Values profit share BTC
at $27,913 per BTC as opposed to $38,000 per BTC, which was the
quoted price of bitcoin in the Company’s principal market at the
time of hosting contract inception.4 The Company’s share of the
earnings or losses of operating results at the Nautilus Cryptomine
facility is reflected within “Equity in net income (loss) of
investee, net of tax” in the consolidated statements of operations.
Accordingly, operating results of the Nautilus Cryptomine facility
are not reflected in revenue, cost of revenue or cost of operations
lines in TeraWulf’s consolidated statements of operations.
The Company uses these metrics as indictors of
operational progress and effectiveness and believes they are useful
to investors for the same purposes and to provide comparisons to
peer companies. All figures except Bitcoin Self-Mined are
estimates.5 Includes BTC earned from profit sharing associated with
a hosting agreement that expires in December 2023 at the Lake
Mariner facility and TeraWulf’s net share of BTC produced at the
Nautilus Cryptomine facility.6 Computed as the weighted-average
opening price of BTC on each respective day the Self-Mined Bitcoin
is earned. Excludes value earned from hosting contract, which
expires in December 2023, for which the quoted price of bitcoin in
the Company’s principal market at the time of contract inception
was approximately $38,000.7 Q3 2023 and Q2 2023 Calculation
excludes 13 and 17 bitcoin, respectively, earned via hosting profit
share.8 While nameplate inventory for WULF’s two facilities is 5.5
EH/s, inclusive of gross total hosted miners, actual monthly hash
rate performance depends on a variety of factors, including (but
not limited to) performance tuning to increase efficiency and
maximize margin, scheduled outages (scopes to improve reliability
or performance), unscheduled outages, curtailment due to
participation in various cash generating demand response programs,
derate of ASICS due to adverse weather and ASIC maintenance and
repair.
Management Commentary
“We continue to execute our stated goals, delivering strong
results in Q3 2023,” stated Paul Prager, Chief Executive Officer of
TeraWulf. “While the summer months are seasonally the most
challenging operating environment, we demonstrated strong
operational results due to outstanding effort by our operating
employees to optimize the performance of our miners as well as the
advantageous location of our facilities in the Northeast U.S.,
which has temperate conditions, resulting in fewer high heat events
and ensuing wear and tear on our machines, relative to regions like
Texas with more extreme weather,” added Prager.
“From a growth perspective, during the third quarter, we
significantly advanced construction of Building 3 at our Lake
Mariner facility, which when completed, will add 43 MW of
infrastructure capacity,” commented Nazar Khan, Chief Operating
Officer of the Company. “We plan to energize Building 3 with S19j
XPs, 5,500 of which will be self-mining, with the balance of miners
to be host-to-owned for BITMAIN until we complete payment for the
entire 18,500 miner order, which we expect by the fourth quarter of
2024.”
“Converting our prior deposits on the S19j XP order into owned
machines not only underscores the value of our strategic
relationship with BITMAIN, but also exemplifies our
capital-efficient, infrastructure-first approach to managing growth
ahead of the next halving in April,” said Prager. “By virtue of the
host-to-own arrangement, we will defer additional capital outlays
for the S19j XP order until well beyond the halving, and avoid what
might be excessive dilution given current depressed market
valuations.”
Production and Operations Update
As of September 30, 2023, the Company had an operational miner
fleet of approximately 50,000 of the latest generation miners,
comprised of 34,000 miners at its wholly owned Lake Mariner
facility in New York (5,000 of which are hosted pursuant to an
agreement that expires in December 2023) and 16,000 self-miners at
the nuclear-powered Nautilus Cryptomine facility in Pennsylvania.
The Company’s total installed hashrate was 5.5 exahashes per second
(EH/s) and 160 MW of capacity across its two sites.
TeraWulf is currently expanding mining operations at its wholly
owned Lake Mariner facility in New York with the addition of
Building 3, which is expected to increase the facility’s bitcoin
mining infrastructure capacity from its current 110 MW to 153 MW by
year-end 2023. In July 2023, the Company announced the
purchase of 18,500 Antminer S19j XP bitcoin mining machines from
BITMAIN, which have a power-efficiency rating of 21.5 joules per
terahash (J/TH) and a bitcoin mining hashrate of 151 terahash per
second (TH/s) each, for a combined total hashrate of 2.8 EH/s for
the 18,500 units, which are targeted to be delivered and installed
at the Lake Mariner facility in December 2023. The Company
announced plans to convert the deposits already made towards the
S19j XP purchase order into 5,500 miners and host-to-own the
remaining 13,000 miners for BITMAIN with the expectation to
complete the entire 18,500 miner purchase by the fourth quarter of
2024.
As of September 30, 2023, the Company’s stake in phase one of
the Nautilus Cryptomine facility – 50 MW and 1.9 EH/s – was fully
operational. TeraWulf has the option to add an additional 50 MW of
bitcoin mining capacity at the Nautilus Cryptomine facility, for a
total of 100 MW, which TeraWulf plans to deploy in future phases
pending capital availability.
Third Quarter 2023 GAAP Financial
Results
Revenue in the third quarter of 2023 increased
22.6% to $19.0 million as compared to $15.5 million in the second
quarter of 2023. This increase is attributable to a significant
growth in operating self-mining hashrate as well as a higher
average bitcoin price relative to the second quarter of 2023.
Notably, revenue and expenses reported in the TeraWulf GAAP income
statement excludes revenue and expenses from the Nautilus joint
venture; the net financial impact of the Nautilus joint venture is
captured within equity in net income (loss) of investee, net of tax
in the consolidated statements of operations.
Gross profit in the third quarter increased to
$10.7 million compared to $10.3 million in the second quarter of
2023. Gross profit margin as a percentage of revenue decreased to
56.4% in the third quarter of 2023 compared to 66.9% in the second
quarter of 2023, primarily driven by energy costs at the Lake
Mariner facility as well as an increase in bitcoin network
difficulty.
About TeraWulf
TeraWulf (Nasdaq: WULF) owns and operates vertically integrated,
environmentally clean Bitcoin mining facilities in the United
States. Led by an experienced group of energy entrepreneurs, the
Company currently has two Bitcoin mining facilities: the wholly
owned Lake Mariner facility in New York, and Nautilus Cryptomine
facility in Pennsylvania, a joint venture with Cumulus Coin, LLC.
TeraWulf generates domestically produced Bitcoin powered by
nuclear, hydro, and solar energy with a goal of utilizing 100%
zero-carbon energy. With a core focus on ESG that ties directly to
its business success, TeraWulf expects to offer attractive mining
economics at an industrial scale.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, as amended. Such
forward-looking statements include statements concerning
anticipated future events and expectations that are not historical
facts. All statements, other than statements of historical fact,
are statements that could be deemed forward-looking statements. In
addition, forward-looking statements are typically identified by
words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,”
“anticipate,” “intend,” “outlook,” “estimate,” “forecast,”
“project,” “continue,” “could,” “may,” “might,” “possible,”
“potential,” “predict,” “should,” “would” and other similar words
and expressions, although the absence of these words or expressions
does not mean that a statement is not forward-looking.
Forward-looking statements are based on the current expectations
and beliefs of TeraWulf’s management and are inherently subject to
a number of factors, risks, uncertainties and assumptions and their
potential effects. There can be no assurance that future
developments will be those that have been anticipated. Actual
results may vary materially from those expressed or implied by
forward-looking statements based on a number of factors, risks,
uncertainties and assumptions, including, among others: (1)
conditions in the cryptocurrency mining industry, including
fluctuation in the market pricing of bitcoin and other
cryptocurrencies, and the economics of cryptocurrency mining,
including as to variables or factors affecting the cost, efficiency
and profitability of cryptocurrency mining; (2) competition among
the various providers of cryptocurrency mining services; (3)
changes in applicable laws, regulations and/or permits affecting
TeraWulf’s operations or the industries in which it operates,
including regulation regarding power generation, cryptocurrency
usage and/or cryptocurrency mining, and/or regulation regarding
safety, health, environmental and other matters, which could
require significant expenditures; (4) the ability to implement
certain business objectives and to timely and cost-effectively
execute integrated projects; (5) failure to obtain adequate
financing on a timely basis and/or on acceptable terms with regard
to growth strategies or operations; (6) loss of public confidence
in bitcoin or other cryptocurrencies and the potential for
cryptocurrency market manipulation; (7) adverse geopolitical or
economic conditions, including a high inflationary environment; (8)
the potential of cybercrime, money-laundering, malware infections
and phishing and/or loss and interference as a result of equipment
malfunction or break-down, physical disaster, data security breach,
computer malfunction or sabotage (and the costs associated with any
of the foregoing); (9) the availability, delivery schedule and cost
of equipment necessary to maintain and grow the business and
operations of TeraWulf, including mining equipment and
infrastructure equipment meeting the technical or other
specifications required to achieve its growth strategy; (10)
employment workforce factors, including the loss of key employees;
(11) litigation relating to TeraWulf, RM 101 f/k/a IKONICS
Corporation and/or the business combination; and (12) other risks
and uncertainties detailed from time to time in the Company’s
filings with the Securities and Exchange Commission (“SEC”).
Potential investors, stockholders and other readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date on which they were made. TeraWulf
does not assume any obligation to publicly update any
forward-looking statement after it was made, whether as a result of
new information, future events or otherwise, except as required by
law or regulation. Investors are referred to the full discussion of
risks and uncertainties associated with forward-looking statements
and the discussion of risk factors contained in the Company’s
filings with the SEC, which are available at www.sec.gov.
Company Contact:Jason AssadDirector of
Corporate Communications assad@terawulf.com(678) 570-6791
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2023 AND DECEMBER 31,
2022
(In thousands, except number of shares
and par value)
|
September 30, 2023 |
|
December 31, 2022 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
CURRENT
ASSETS: |
|
|
|
Cash and cash equivalents |
$ |
6,595 |
|
|
$ |
1,279 |
|
Restricted cash |
|
— |
|
|
|
7,044 |
|
Digital currency, net |
|
614 |
|
|
|
183 |
|
Prepaid expenses |
|
2,360 |
|
|
|
5,095 |
|
Other receivables |
|
2,723 |
|
|
|
— |
|
Other current assets |
|
688 |
|
|
|
543 |
|
Total current assets |
|
12,980 |
|
|
|
14,144 |
|
Equity
in net assets of investee |
|
105,557 |
|
|
|
98,741 |
|
Property, plant and equipment, net |
|
181,294 |
|
|
|
191,521 |
|
Right-of-use asset |
|
11,194 |
|
|
|
11,944 |
|
Other
assets |
|
768 |
|
|
|
1,337 |
|
TOTAL
ASSETS |
$ |
311,793 |
|
|
$ |
317,687 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
CURRENT
LIABILITIES: |
|
|
|
Accounts payable |
$ |
19,422 |
|
|
$ |
21,862 |
|
Accrued construction liabilities |
|
724 |
|
|
|
2,903 |
|
Other accrued liabilities |
|
6,743 |
|
|
|
14,963 |
|
Share based liabilities due to related party |
|
2,085 |
|
|
|
14,583 |
|
Other amounts due to related parties |
|
1,433 |
|
|
|
3,295 |
|
Contingent value rights |
|
1,366 |
|
|
|
10,900 |
|
Current portion of operating lease liability |
|
46 |
|
|
|
42 |
|
Insurance premium financing payable |
|
199 |
|
|
|
2,117 |
|
Convertible promissory notes |
|
— |
|
|
|
3,416 |
|
Current portion of long-term debt |
|
76,461 |
|
|
|
51,938 |
|
Total current liabilities |
|
108,479 |
|
|
|
126,019 |
|
Operating lease liability, net of current portion |
|
912 |
|
|
|
947 |
|
Long-term debt |
|
48,468 |
|
|
|
72,967 |
|
TOTAL
LIABILITIES |
|
157,859 |
|
|
|
199,933 |
|
|
|
|
|
Commitments and Contingencies (See Note 12) |
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
Preferred stock, $0.001 par value, 100,000,000 and 25,000,000
authorized at September 30, 2023 and December 31, 2022,
respectively; 9,566 issued and outstanding at September 30,
2023 and December 31, 2022; aggregate liquidation preference
of $11,145 and $10,349 at September 30, 2023 and
December 31, 2022, respectively |
|
9,273 |
|
|
|
9,273 |
|
Common stock, $0.001 par value, 400,000,000 and 200,000,000
authorized at September 30, 2023 and December 31, 2022,
respectively; 232,222,332 and 145,492,971 issued and outstanding at
September 30, 2023 and December 31, 2022,
respectively |
|
232 |
|
|
|
145 |
|
Additional paid-in capital |
|
393,799 |
|
|
|
294,810 |
|
Accumulated deficit |
|
(249,370 |
) |
|
|
(186,474 |
) |
Total stockholders' equity |
|
153,934 |
|
|
|
117,754 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
311,793 |
|
|
$ |
317,687 |
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
2023 AND 2022
(In thousands, except number of shares and loss per
common share; unaudited)
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
18,955 |
|
|
$ |
3,864 |
|
|
$ |
45,944 |
|
|
$ |
5,466 |
|
Cost of
revenue (exclusive of depreciation shown below) |
|
8,268 |
|
|
|
5,181 |
|
|
|
18,383 |
|
|
|
5,804 |
|
Gross
profit (loss) |
|
10,687 |
|
|
|
(1,317 |
) |
|
|
27,561 |
|
|
|
(338 |
) |
|
|
|
|
|
|
|
|
Cost of
operations: |
|
|
|
|
|
|
|
Operating expenses |
|
442 |
|
|
|
261 |
|
|
|
1,218 |
|
|
|
1,689 |
|
Operating expenses – related party |
|
779 |
|
|
|
603 |
|
|
|
2,015 |
|
|
|
812 |
|
Selling, general and administrative expenses |
|
5,767 |
|
|
|
5,934 |
|
|
|
18,137 |
|
|
|
16,253 |
|
Selling, general and administrative expenses – related party |
|
4,519 |
|
|
|
2,948 |
|
|
|
10,093 |
|
|
|
8,187 |
|
Depreciation |
|
8,224 |
|
|
|
1,515 |
|
|
|
20,085 |
|
|
|
1,719 |
|
Realized gain on sale of digital currency |
|
(697 |
) |
|
|
(127 |
) |
|
|
(1,883 |
) |
|
|
(127 |
) |
Impairment of digital currency |
|
922 |
|
|
|
119 |
|
|
|
2,231 |
|
|
|
682 |
|
Loss on disposals of property, plant, and equipment |
|
420 |
|
|
|
— |
|
|
|
420 |
|
|
|
— |
|
Loss on nonmonetary miner exchange |
|
— |
|
|
|
804 |
|
|
|
— |
|
|
|
804 |
|
Total cost of operations |
|
20,376 |
|
|
|
12,057 |
|
|
|
52,316 |
|
|
|
30,019 |
|
|
|
|
|
|
|
|
|
Operating loss |
|
(9,689 |
) |
|
|
(13,374 |
) |
|
|
(24,755 |
) |
|
|
(30,357 |
) |
Interest
expense |
|
(10,251 |
) |
|
|
(7,230 |
) |
|
|
(25,535 |
) |
|
|
(16,691 |
) |
Other
income |
|
59 |
|
|
|
— |
|
|
|
113 |
|
|
|
— |
|
Loss
before income tax and equity in net loss of investee |
|
(19,881 |
) |
|
|
(20,604 |
) |
|
|
(50,177 |
) |
|
|
(47,048 |
) |
Income
tax (expense) benefit |
|
— |
|
|
|
256 |
|
|
|
— |
|
|
|
256 |
|
Equity
in net income (loss) of investee, net of tax |
|
850 |
|
|
|
(12,739 |
) |
|
|
(12,613 |
) |
|
|
(14,611 |
) |
Loss
from continuing operations |
|
(19,031 |
) |
|
|
(33,087 |
) |
|
|
(62,790 |
) |
|
|
(61,403 |
) |
Loss
from discontinued operations, net of tax |
|
(68 |
) |
|
|
(901 |
) |
|
|
(106 |
) |
|
|
(4,437 |
) |
Net
loss |
|
(19,099 |
) |
|
|
(33,988 |
) |
|
|
(62,896 |
) |
|
|
(65,840 |
) |
Preferred stock dividends |
|
(272 |
) |
|
|
(247 |
) |
|
|
(796 |
) |
|
|
(531 |
) |
Net loss
attributable to common stockholders |
$ |
(19,371 |
) |
|
$ |
(34,235 |
) |
|
$ |
(63,692 |
) |
|
$ |
(66,371 |
) |
|
|
|
|
|
|
|
|
Loss per
common share: |
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.09 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.59 |
) |
Discontinued operations |
|
- |
|
|
|
(0.01 |
) |
|
|
- |
|
|
|
(0.04 |
) |
Basic and diluted |
$ |
(0.09 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.63 |
) |
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
221,718,367 |
|
|
|
108,839,269 |
|
|
|
199,259,314 |
|
|
|
104,391,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND
2022
(In thousands; unaudited)
|
Nine Months Ended September
30, |
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
Net loss |
$ |
(62,896 |
) |
|
$ |
(65,840 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Amortization of debt issuance costs, commitment fees and accretion
of debt discount |
|
14,316 |
|
|
|
7,468 |
|
Related party expense to be settled with respect to common
stock |
|
2,502 |
|
|
|
— |
|
Common stock issued for interest expense |
|
26 |
|
|
|
82 |
|
Stock-based compensation expense |
|
4,023 |
|
|
|
1,050 |
|
Depreciation |
|
20,085 |
|
|
|
1,719 |
|
Amortization of right-of-use asset |
|
750 |
|
|
|
53 |
|
Increase in digital currency from mining and hosting services |
|
(41,936 |
) |
|
|
(3,561 |
) |
Impairment of digital currency |
|
2,231 |
|
|
|
682 |
|
Realized gain on sale of digital currency |
|
(1,883 |
) |
|
|
(127 |
) |
Proceeds from sale of digital currency |
|
52,570 |
|
|
|
2,946 |
|
Loss on disposals of property, plant, and equipment |
|
420 |
|
|
|
— |
|
Loss on nonmonetary miner exchange |
|
— |
|
|
|
804 |
|
Deferred income tax benefit |
|
— |
|
|
|
(256 |
) |
Equity in net loss of investee, net of tax |
|
12,613 |
|
|
|
14,611 |
|
Loss from discontinued operations, net of tax |
|
106 |
|
|
|
4,437 |
|
Changes in operating assets and liabilities: |
|
— |
|
|
|
— |
|
Decrease (increase) in prepaid expenses |
|
2,735 |
|
|
|
(1,218 |
) |
Decrease in amounts due from related parties |
|
— |
|
|
|
815 |
|
Increase in other receivables |
|
(2,723 |
) |
|
|
— |
|
Increase in other current assets |
|
(97 |
) |
|
|
(1,129 |
) |
Decrease (increase) in other assets |
|
69 |
|
|
|
(879 |
) |
(Decrease) increase in accounts payable |
|
(3,936 |
) |
|
|
5,663 |
|
(Decrease) increase in other accrued liabilities |
|
(3,463 |
) |
|
|
2,537 |
|
(Decrease) increase in other amounts due to related parties |
|
(2,396 |
) |
|
|
1,652 |
|
(Decrease) increase in operating lease liability |
|
(31 |
) |
|
|
185 |
|
Net cash used in operating activities from continuing
operations |
|
(6,915 |
) |
|
|
(28,306 |
) |
Net cash provided by (used in) operating activities from
discontinued operations |
|
283 |
|
|
|
(1,303 |
) |
Net cash used in operating activities |
|
(6,632 |
) |
|
|
(29,609 |
) |
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
Investments in joint venture, including direct payments made on
behalf of joint venture |
|
(2,845 |
) |
|
|
(37,997 |
) |
Reimbursable payments for deposits on plant and equipment made on
behalf of a joint venture or joint venture partner |
|
— |
|
|
|
(11,741 |
) |
Reimbursement of payments for deposits on plant and equipment made
on behalf of a joint venture or joint venture partner |
|
— |
|
|
|
11,716 |
|
Purchase of and deposits on plant and equipment |
|
(41,392 |
) |
|
|
(53,947 |
) |
Proceeds from sale of net assets held for sale |
|
— |
|
|
|
13,500 |
|
Payment of contingent value rights liability |
|
(9,598 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(53,835 |
) |
|
|
(78,469 |
) |
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
Proceeds from issuance of long-term debt, net of issuance costs
paid of $0 and $38 |
|
— |
|
|
|
14,962 |
|
Proceeds from insurance premium and property, plant and equipment
financing |
|
790 |
|
|
|
4,854 |
|
Principal payments on insurance premium and property, plant and
equipment financing |
|
(2,613 |
) |
|
|
(4,724 |
) |
Proceeds from issuance of common stock, net of issuance costs paid
of $1,051 and $142 |
|
57,664 |
|
|
|
36,828 |
|
Proceeds from warrant issuances |
|
2,500 |
|
|
|
— |
|
Payments of tax withholding related to net share settlements of
stock-based compensation awards |
|
(852 |
) |
|
|
— |
|
Proceeds from issuance of preferred stock |
|
— |
|
|
|
9,566 |
|
Proceeds from issuance of convertible promissory note |
|
1,250 |
|
|
|
14,700 |
|
Principal payments on convertible promissory note |
|
— |
|
|
|
(2,832 |
) |
Net cash provided by financing activities |
|
58,739 |
|
|
|
73,354 |
|
|
|
|
|
Net
change in cash and cash equivalents and restricted cash |
|
(1,728 |
) |
|
|
(34,724 |
) |
Cash and
cash equivalents and restricted cash at beginning of period |
|
8,323 |
|
|
|
46,455 |
|
Cash and
cash equivalents and restricted cash at end of period |
$ |
6,595 |
|
|
$ |
11,731 |
|
|
|
|
|
Cash paid during the
period for: |
|
|
|
Interest |
$ |
15,542 |
|
|
$ |
9,220 |
|
Income taxes |
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Non-GAAP Measure
The Company presents adjusted EBITDA, which is not a measurement
of financial performance under generally accepted accounting
principles in the United States (“GAAP”). The Company’s non-GAAP
“Adjusted EBITDA” excludes (i) impacts of interest, taxes,
depreciation and amortization; (ii) preferred stock dividends,
stock-based compensation expense and related party expense to be
settled with respect to common stock, all of which are non-cash
items that the Company believes are not reflective of its general
business performance, and for which the accounting requires
management judgment, and the resulting expenses could vary
significantly in comparison to other companies; (iii) equity in net
loss of investee, net of tax, related to Nautilus; (iv) costs
related to non-routine regulatory activities, which costs
management does not believe are reflective of the Company’s ongoing
operating activities; (v) other income which is related to interest
income or income for which management believes is not reflective of
the Company’s ongoing operating activities; and (vi) gains and
losses related to discontinued operations that are not be
applicable to the Company’s future business activities. The
Company’s non-GAAP Adjusted EBITDA also includes the impact of
distributions from investee received in bitcoin related to a return
on the Nautilus investment, which management believes, in
conjunction with excluding the impact of equity in net loss of
investee, net of tax, is reflective of assets available for the
Company’s use in its ongoing operations as a result of its
investment in Nautilus.
Management believes that providing this non-GAAP financial
measure that excludes these items allows for meaningful comparisons
between the Company's core business operating results and those of
other companies, and provides the Company with an important tool
for financial and operational decision making and for evaluating
its own core business operating results over different periods of
time. In addition to management's internal use of non-GAAP adjusted
EBITDA, management believes that adjusted EBITDA is also useful to
investors and analysts in comparing the Company’s performance
across reporting periods on a consistent basis. Management believes
the foregoing to be the case even though some of the excluded items
involve cash outlays and some of them recur on a regular basis
(although management does not believe any of such items are normal
operating expenses necessary to generate the Company’s bitcoin
related revenues). For example, the Company expects that
share-based compensation expense, which is excluded from adjusted
EBITDA, will continue to be a significant recurring expense over
the coming years and is an important part of the compensation
provided to certain employees, officers, directors and consultants.
Additionally, management does not consider any of the excluded
items to be expenses necessary to generate the Company’s bitcoin
related revenue.
The Company's adjusted EBITDA measure may not be directly
comparable to similar measures provided by other companies in the
Company’s industry, as other companies in the Company’s industry
may calculate non-GAAP financial results differently. The Company's
adjusted EBITDA is not a measurement of financial performance under
GAAP and should not be considered as an alternative to operating
(loss) income or any other measure of performance derived in
accordance with GAAP. Although management utilizes internally and
presents adjusted EBITDA, the Company only utilizes that measure
supplementally and does not consider it to be a substitute for, or
superior to, the information provided by GAAP financial results.
Accordingly, adjusted EBITDA is not meant to be considered in
isolation of, and should be read in conjunction with, the
information contained in the Company’s consolidated financial
statements, which have been prepared in accordance with GAAP.
The following table is a reconciliation of the Company’s
non-GAAP adjusted EBITDA to its most directly comparable GAAP
measure (i.e., net loss attributable to common stockholders) for
the periods indicated (in thousands):
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss attributable to
common stockholders |
$ |
(19,371 |
) |
|
$ |
(34,235 |
) |
|
$ |
(63,692 |
) |
|
$ |
(66,371 |
) |
Adjustments to reconcile net
loss attributable to common stockholders to non-GAAP adjusted
EBITDA: |
|
|
|
|
|
|
|
Preferred stock dividends |
|
272 |
|
|
|
247 |
|
|
|
796 |
|
|
|
531 |
|
Loss from discontinued operations, net of tax |
|
68 |
|
|
|
901 |
|
|
|
106 |
|
|
|
4,437 |
|
Equity in net (income) loss of investee, net of tax, related to
Nautilus |
|
(850 |
) |
|
|
12,739 |
|
|
|
12,613 |
|
|
|
14,611 |
|
Distributions from investee, related to Nautilus |
|
6,739 |
|
|
|
— |
|
|
|
11,682 |
|
|
|
— |
|
Income tax expense (benefit) |
|
— |
|
|
|
(256 |
) |
|
|
— |
|
|
|
(256 |
) |
Interest expense |
|
10,251 |
|
|
|
7,230 |
|
|
|
25,535 |
|
|
|
16,691 |
|
Depreciation |
|
8,224 |
|
|
|
1,515 |
|
|
|
20,085 |
|
|
|
1,719 |
|
Amortization of right-of-use asset |
|
249 |
|
|
|
12 |
|
|
|
750 |
|
|
|
53 |
|
Stock-based compensation expense |
|
1,413 |
|
|
|
568 |
|
|
|
4,023 |
|
|
|
1,050 |
|
Related party expense to be settled with respect to common
stock |
|
2,085 |
|
|
|
— |
|
|
|
2,502 |
|
|
|
— |
|
Costs related to non-routine regulatory activities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
996 |
|
Other income |
|
(59 |
) |
|
|
— |
|
|
|
(113 |
) |
|
|
— |
|
Non-GAAP adjusted EBITDA |
$ |
9,021 |
|
|
$ |
(11,279 |
) |
|
$ |
14,287 |
|
|
$ |
(26,539 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TeraWulf (NASDAQ:WULF)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
TeraWulf (NASDAQ:WULF)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024