Delaware | 7374 | 86-1746728 | ||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
Chris Zochowski Richard Alsop Kristina Trauger Shearman & Sterling LLP 401 9th Street, NW Suite 800 Washington, DC 20004 (202) 508-8000 | Dean M. Colucci Michelle Geller Alex Pherson Duane Morris LLP 1540 Broadway New York, NY 10036 (973) 424-2020 |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Title of Each Class of Securities to be Registered | Proposed Maximum Aggregate Offering Price (1)(2) | Amount of Registration Fee (3) | Proposed Maximum Aggregate Offering Price (1)(2) | Amount of Registration Fee (3) | ||||
8.50% Senior Notes due 2026 | $28,750,000 | $2,665.13 | $40,250,000 | $3,731.18 | ||||
(1) | Estimated solely for the purpose of computing the registration fee in accordance with Rule 457(o) under the Securities Act of 1933, as amended (the “Securities Act”). |
(2) | Includes up to |
(3) | Pursuant to Rule 457(p) under the Securities Act, the registration fee for this registration statement is being offset in full by the unused portion of the registration fee ($12,546.50) previously paid by the Registrant in connection with the registration statement on Form S-1 (File No. 333-259678) filed with the SEC on September 20, 2021 (the “2021 Registration Statement”), of which $4,264.20 was used pursuant to the 2021 Registration Statement and $852.84 was used pursuant to a post-effective amendment (File No. 333-260177) to the 2021 Registration Statement filed with the SEC on October 8, 2021, and with the Registrant’s remaining balance in the amount of |
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(1) | Plus accrued interest from October 13, 2021 to, but not including, , 2021, the settlement date. |
(2) | See “ Underwriting |
(3) | B. Riley Securities, Inc. (“B. Riley”), as representative of the underwriters, may exercise an option to purchase up to an additional |
(4) | Total expenses of the offering payable by us, excluding underwriting discounts and commissions and the Structuring Fee (as defined in “Underwriting”), are estimated to be $ . |
B. Riley Securities | ||||
Ladenburg Thalmann | William Blair & Co. |
Aegis Capital Corp. | Alexander Capital L.P. | Colliers Securities LLC |
Northland Capital Markets | Revere Securities LLC | Wedbush Securities | Z ie gler |
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F-1 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Total revenue | $ | 35,754 | $ | 6,123 | $ | 62,993 | $ | 13,937 | ||||||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 9,659 | 4,072 | 19,046 | 8,681 | ||||||||||||
Selling, general and administrative expenses | 5,446 | 1,493 | 12,017 | 4,131 | ||||||||||||
Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||
Depreciation and amortization | 2,667 | 1,064 | 5,531 | 3,227 | ||||||||||||
Loss from operations | (11,865 | ) | (506 | ) | (4,696 | ) | (2,102 | ) | ||||||||
Total other (expense) income, net | (1,020 | ) | 217 | (1,263 | ) | (364 | ) | |||||||||
Benefit for income taxes | (4,989 | ) | — | (2,860 | ) | — | ||||||||||
Net loss | $ | (7,896 | ) | $ | (289 | ) | $ | (3,099 | ) | $ | (2,466 | ) | ||||
Basic | $ | (0.28 | ) | $ | (0.13 | ) | ||||||||||
Diluted | $ | (0.28 | ) | $ | (0.13 | ) |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | $ | 20,114 | $ | 4,439 | ||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 12,600 | 4,900 | ||||||
Selling, general and administrative expenses | 5,581 | 5,833 | ||||||
Depreciation and amortization | 4,564 | 1,679 | ||||||
Loss from operations | (2,631 | ) | (7,973 | ) | ||||
Interest and other expense, net | (659 | ) | (502 | ) | ||||
Net loss | $ | (3,290 | ) | $ | (8,475 | ) |
September 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||
Current assets | $ | 64,425 | $ | 14,541 | $ | 64,425 | $ | 7,774 | ||||||||
Long-term assets | 193,886 | 50,834 | 193,886 | 56,793 | ||||||||||||
Total assets | 258,311 | 65,375 | 258,311 | 64,567 | ||||||||||||
Total liabilities | 52,509 | 21,015 | 52,509 | 20,207 | ||||||||||||
Total stockholders’ equity | $ | 205,802 | $ | 44,360 | $ | 205,802 | $ | 44,360 |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | 43,864 | 63,333 | ||||||
Cost of revenue | 28,921 | 46,865 | ||||||
Gross profit | 14,943 | 16,468 | ||||||
Total operating expenses | 14,891 | 13,517 | ||||||
Income from operations | 52 | 2,951 | ||||||
Interest income and other, net | 496 | 1,049 | ||||||
Income taxes | (102 | ) | (154 | ) | ||||
Net income | $ | 446 | $ | 3,846 | ||||
Net income per share: Basic and Diluted | $ | 0.02 | $ | 0.20 |
December 31, 2020 | ||||
Current assets | $ | 37,612 | ||
Long-term assets | 1,654 | |||
Total assets | $ | 39,266 | ||
Total liabilities | $ | 4,830 | ||
Total stockholders’ equity | $ | 34,436 |
Issuer: | Greenidge Generation Holdings Inc. |
Notes Offered: | $35,000,000 aggregate principal amount of 8.50% Senior Notes due 2026 (or |
Offering Price: | % of the principal amount plus accrued interest from October 13, 2021 to, but not including, , 2021, totaling $ , and any additional interest from , 2021 if settlement occurs after that date. |
Fungibility: | The Notes will be consolidated, form a single series, and be fully fungible with our outstanding 8.50% Notes due 2026 issued in an aggregate principal amount of $55.2 million on October 13, 2021. After giving effect to the offering of the Notes, the total amount outstanding of our 8.50% Notes due 2026 will be |
Maturity Date: | The Notes will mature on October 31, 2026, unless redeemed prior to maturity. |
Interest Rate and Payment Dates: | 8.50% interest per annum on the principal amount of the Notes, payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, beginning on January 31, 2022 and at maturity. |
Ranking: | The Notes will be our senior unsecured obligations and will rank: |
The indenture governing the Notes does not limit the amount of indebtedness that we or our subsidiaries may incur or whether any such indebtedness can be secured by our assets. As of October 31, 2021, we had approximately $82.9 million of outstanding indebtedness, inclusive of $55.2 million of the Original Notes, which was unsecured, and approximately $0.8 million of outstanding capital lease obligations, which was secured. |
Guarantors: | The Notes will not be guaranteed by any of our subsidiaries or affiliates. |
Optional Redemption: | We may redeem the Notes for cash in whole or in part at any time at our option (i) on or after October 31, 2023 and prior to October 31, 2024, at a price equal to 102% of their principal amount, (ii) on or after October 31, 2024 and prior to October 31, 2025, at a price equal to 101% of their principal amount, and (iii) on or after October 31, 2025, at a price equal to 100% of their principal amount, plus (in each case noted above) accrued and unpaid interest to, but excluding, the date of redemption. See “ Description of Notes—Optional Redemption |
In addition, we may redeem the Notes, in whole, but not in part, at any time at our option, at a redemption price equal to 100.5% of the principal amount plus accrued and unpaid interest to, but not including, the date of redemption, upon the occurrence of certain change of control events. See “ Description of Notes—Optional Redemption Upon Change of Control |
Sinking Fund: | The Notes will not be subject to any sinking funding (i.e., no amounts will be set aside by us to ensure repayment of the Notes at maturity). |
Use of Proceeds: | We anticipate using the net proceeds of this offering for general corporate purposes, including funding capital expenditures, future acquisitions, investments and working capital and repaying indebtedness. For additional information, see “ Use of Proceeds |
Events of Default: | Events of default generally will include failure to pay principal, failure to pay interest, failure to observe or perform any other covenant or warranty in the Notes and the Original Notes, or in the indenture that governs the Notes and the Original Notes, and certain events of bankruptcy, insolvency or reorganization. See “ Description of Notes—Events of Default |
No Financial Covenants: | The indenture governing the Notes does not contain financial covenants. |
Additional Notes: | We may create and issue additional Notes ranking equally and ratably with the Notes and the Original Notes in all respects, so that such further additional Notes will constitute and form a single series with the Notes and the Original Notes and will have the same terms as to |
status, redemption or otherwise (except the price to public, the issue date, and, if applicable, the initial interest accrual date and initial interest payment date) as the Notes and the Original Notes; provided that if any such further additional Notes are not fungible with the Notes initially offered hereby for U.S. federal income tax purposes, such further additional Notes will have one or more separate CUSIP numbers. |
Defeasance: | The Notes are subject to legal and covenant defeasance by us. See “ Description of Notes—Defeasance |
Listing: | The issued and outstanding Original Notes are listed on the Nasdaq Global Market and have been trading under the symbol “GREEL” since October 14, 2021. We intend to list the Notes on the Nasdaq Global Select Market under the same trading symbol. |
Form and Denomination: | The Notes will be issued in book-entry form in denominations of $25 and integral multiples thereof. The Notes will be represented by a permanent global certificate deposited with the trustee as custodian for DTC and registered in the name of a nominee of DTC. Beneficial interests in any of the Notes will be shown on, and transfers will be effected only through, records maintained by DTC and its direct and indirect participants and any such interest may not be exchanged for certificated securities, except in limited circumstances. |
Settlement: | Delivery of the Notes will be made against payment therefor on or about , 2021. |
Trustee: | Wilmington Savings Fund Society, FSB |
Governing Law: | The indenture is and the Notes will be governed by and construed in accordance with the laws of the State of New York. |
Risk factors: | Investing in the Notes involves a high degree of risk and purchasers may lose their entire investment. See “ Risk Factors |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Total revenue | $ | 35,754 | $ | 6,123 | $ | 62,993 | $ | 13,937 | ||||||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 9,659 | 4,072 | 19,046 | 8,681 | ||||||||||||
Selling, general and administrative expenses | 5,446 | 1,493 | 12,017 | 4,131 | ||||||||||||
Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||
Depreciation and amortization | 2,667 | 1,064 | 5,531 | 3,227 | ||||||||||||
Loss from operations | (11,865 | ) | (506 | ) | (4,696 | ) | (2,102 | ) | ||||||||
Total other (expense) income, net | (1,020 | ) | 217 | (1,263 | ) | (364 | ) | |||||||||
Benefit for income taxes | (4,989 | ) | — | (2,860 | ) | — | ||||||||||
Net loss | $ | (7,896 | ) | $ | (289 | ) | $ | (3,099 | ) | $ | (2,466 | ) | ||||
Basic | $ | (0.28 | ) | $ | (0.13 | ) | ||||||||||
Diluted | $ | (0.28 | ) | $ | (0.13 | ) |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | $ | 20,114 | $ | 4,439 | ||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 12,600 | 4,900 | ||||||
Selling, general and administrative expenses | 5,581 | 5,833 | ||||||
Depreciation and amortization | 4,564 | 1,679 | ||||||
Loss from operations | (2,631 | ) | (7,973 | ) | ||||
Interest and other expense, net | (659 | ) | (502 | ) | ||||
Net loss | $ | (3,290 | ) | $ | (8,475 | ) |
September 30, 2021 | December 31, 2020 | |||||||
Current assets | $ | 64,425 | $ | 7,774 | ||||
Long-term assets | 193,886 | 56,793 | ||||||
Total assets | 258,311 | 64,567 | ||||||
Total liabilities | 52,509 | 20,207 | ||||||
Total stockholders’ equity | $ | 205,802 | $ | 44,360 |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | 43,864 | 63,333 | ||||||
Cost of revenue | 28,921 | 46,865 | ||||||
Gross profit | 14,943 | 16,468 | ||||||
Total operating expenses | 14,891 | 13,517 | ||||||
Income from operations | 52 | 2,951 | ||||||
Interest income and other, net | 496 | 1,049 | ||||||
Income taxes | (102 | ) | (154 | ) | ||||
Net income | $ | 446 | $ | 3,846 | ||||
Net income per share: Basic and Diluted | $ | 0.02 | $ | 0.20 |
December 31, 2020 | ||||
Current assets | $ | 37,612 | ||
Long-term assets | 1,654 | |||
Total assets | $ | 39,266 | ||
Total liabilities | $ | 4,830 | ||
Total stockholders’ equity | $ | 34,436 |
Issuer: | Greenidge Generation Holdings Inc. |
Notes Offered: | $35,000,000 aggregate principal amount of 8.50% Senior Notes due 2026 (or $40,250,000 aggregate principal amount of 8.50% Senior Notes due 2026 if the underwriters’ option is exercised in full). |
Offering Price: | % of the principal amount plus accrued interest from October 13, 2021 to, but not including, , 2021, totaling $ , and any additional interest from , 2021 if settlement occurs after that date. |
Fungibility: | The Notes will be consolidated, form a single series, and be fully fungible with our outstanding 8.50% Notes due 2026 issued in an aggregate principal amount of $55.2 million on October 13, 2021. After giving effect to the offering of the Notes, the total amount outstanding of our 8.50% Notes due 2026 will be $90,200,000 (or $95,450,000 aggregate principal amount of 8.50% Senior Notes due 2026 if the underwriters’ option is exercised in full). |
Maturity Date: | The Notes will mature on October 31, 2026, unless redeemed prior to maturity. |
Interest Rate and Payment Dates: | 8.50% interest per annum on the principal amount of the Notes, payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, beginning on January 31, 2022 and at maturity. |
Ranking: | The Notes will be our senior unsecured obligations and will rank: |
The indenture governing the Notes does not limit the amount of indebtedness that we or our subsidiaries may incur or whether any such indebtedness can be secured by our assets. As of October 31, 2021, we had approximately $82.9 million of outstanding indebtedness, inclusive of $55.2 million of the Original Notes, which was unsecured, and approximately $0.8 million of outstanding capital lease obligations, which was secured. |
Guarantors: | The Notes will not be guaranteed by any of our subsidiaries or affiliates. |
Optional Redemption: | We may redeem the Notes for cash in whole or in part at any time at our option (i) on or after October 31, 2023 and prior to October 31, 2024, at a price equal to 102% of their principal amount, (ii) on or after October 31, 2024 and prior to October 31, 2025, at a price equal to 101% of their principal amount, and (iii) on or after October 31, 2025, at a price equal to 100% of their principal amount, plus (in each case noted above) accrued and unpaid interest to, but excluding, the date of redemption. See “ Description of Notes—Optional Redemption |
In addition, we may redeem the Notes, in whole, but not in part, at any time at our option, at a redemption price equal to 100.5% of the principal amount plus accrued and unpaid interest to, but not including, the date of redemption, upon the occurrence of certain change of control events. See “ Description of Notes—Optional Redemption Upon Change of Control |
Sinking Fund: | The Notes will not be subject to any sinking funding (i.e., no amounts will be set aside by us to ensure repayment of the Notes at maturity). |
Use of Proceeds: | We anticipate using the net proceeds of this offering for general corporate purposes, including funding capital expenditures, future acquisitions, investments and working capital and repaying indebtedness. For additional information, see “ Use of Proceeds |
Events of Default: | Events of default generally will include failure to pay principal, failure to pay interest, failure to observe or perform any other covenant or warranty in the Notes and the Original Notes, or in the indenture that governs the Notes and the Original Notes, and certain events of bankruptcy, insolvency or reorganization. See “ Description of Notes—Events of Default |
No Financial Covenants: | The indenture governing the Notes does not contain financial covenants. |
Additional Notes: | We may create and issue additional Notes ranking equally and ratably with the Notes and the Original Notes in all respects, so that such further additional Notes will constitute and form a single series with the Notes and the Original Notes and will have the same terms as to |
status, redemption or otherwise (except the price to public, the issue date, and, if applicable, the initial interest accrual date and initial interest payment date) as the Notes and the Original Notes; provided that if any such further additional Notes are not fungible with the Notes initially offered hereby for U.S. federal income tax purposes, such further additional Notes will have one or more separate CUSIP numbers. |
Defeasance: | The Notes are subject to legal and covenant defeasance by us. See “ Description of Notes—Defeasance |
Listing: | The issued and outstanding Original Notes are listed on the Nasdaq Global Market and have been trading under the symbol “GREEL” since October 14, 2021. We intend to list the Notes on the Nasdaq Global Select Market under the same trading symbol. |
Form and Denomination: | The Notes will be issued in book-entry form in denominations of $25 and integral multiples thereof. The Notes will be represented by a permanent global certificate deposited with the trustee as custodian for DTC and registered in the name of a nominee of DTC. Beneficial interests in any of the Notes will be shown on, and transfers will be effected only through, records maintained by DTC and its direct and indirect participants and any such interest may not be exchanged for certificated securities, except in limited circumstances. |
Settlement: | Delivery of the Notes will be made against payment therefor on or about , 2021. |
Trustee: | Wilmington Savings Fund Society, FSB |
Governing Law: | The indenture is and the Notes will be governed by and construed in accordance with the laws of the State of New York. |
Risk factors: | Investing in the Notes involves a high degree of risk and purchasers may lose their entire investment. See “ Risk Factors |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Total revenue | $ | 35,754 | $ | 6,123 | $ | 62,993 | $ | 13,937 | ||||||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 9,659 | 4,072 | 19,046 | 8,681 | ||||||||||||
Selling, general and administrative expenses | 5,446 | 1,493 | 12,017 | 4,131 | ||||||||||||
Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||
Depreciation and amortization | 2,667 | 1,064 | 5,531 | 3,227 | ||||||||||||
Loss from operations | (11,865 | ) | (506 | ) | (4,696 | ) | (2,102 | ) | ||||||||
Total other (expense) income, net | (1,020 | ) | 217 | (1,263 | ) | (364 | ) | |||||||||
Benefit for income taxes | (4,989 | ) | — | (2,860 | ) | — | ||||||||||
Net loss | $ | (7,896 | ) | $ | (289 | ) | $ | (3,099 | ) | $ | (2,466 | ) | ||||
Basic | $ | (0.28 | ) | $ | (0.13 | ) | ||||||||||
Diluted | $ | (0.28 | ) | $ | (0.13 | ) |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | $ | 20,114 | $ | 4,439 | ||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 12,600 | 4,900 | ||||||
Selling, general and administrative expenses | 5,581 | 5,833 | ||||||
Depreciation and amortization | 4,564 | 1,679 | ||||||
Loss from operations | (2,631 | ) | (7,973 | ) | ||||
Interest and other expense, net | (659 | ) | (502 | ) | ||||
Net loss | $ | (3,290 | ) | $ | (8,475 | ) |
September 30, 2021 | December 31, 2020 | |||||||
Current assets | $ | 64,425 | $ | 7,774 | ||||
Long-term assets | 193,886 | 56,793 | ||||||
Total assets | 258,311 | 64,567 | ||||||
Total liabilities | 52,509 | 20,207 | ||||||
Total stockholders’ equity | $ | 205,802 | $ | 44,360 |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | 43,864 | 63,333 | ||||||
Cost of revenue | 28,921 | 46,865 | ||||||
Gross profit | 14,943 | 16,468 | ||||||
Total operating expenses | 14,891 | 13,517 | ||||||
Income from operations | 52 | 2,951 | ||||||
Interest income and other, net | 496 | 1,049 | ||||||
Income taxes | (102 | ) | (154 | ) | ||||
Net income | $ | 446 | $ | 3,846 | ||||
Net income per share: Basic and Diluted | $ | 0.02 | $ | 0.20 |
December 31, 2020 | ||||
Current assets | $ | 37,612 | ||
Long-term assets | 1,654 | |||
Total assets | $ | 39,266 | ||
Total liabilities | $ | 4,830 | ||
Total stockholders’ equity | $ | 34,436 |
Issuer: | Greenidge Generation Holdings Inc. |
Notes Offered: | $35,000,000 aggregate principal amount of 8.50% Senior Notes due 2026 (or $40,250,000 aggregate principal amount of 8.50% Senior Notes due 2026 if the underwriters’ option is exercised in full). |
Offering Price: | % of the principal amount plus accrued interest from October 13, 2021 to, but not including, , 2021, totaling $ , and any additional interest from , 2021 if settlement occurs after that date. |
Fungibility: | The Notes will be consolidated, form a single series, and be fully fungible with our outstanding 8.50% Notes due 2026 issued in an aggregate principal amount of $55.2 million on October 13, 2021. After giving effect to the offering of the Notes, the total amount outstanding of our 8.50% Notes due 2026 will be $90,200,000 (or $95,450,000 aggregate principal amount of 8.50% Senior Notes due 2026 if the underwriters’ option is exercised in full). |
Maturity Date: | The Notes will mature on October 31, 2026, unless redeemed prior to maturity. |
Interest Rate and Payment Dates: | 8.50% interest per annum on the principal amount of the Notes, payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, beginning on January 31, 2022 and at maturity. |
Ranking: | The Notes will be our senior unsecured obligations and will rank: |
The indenture governing the Notes does not limit the amount of indebtedness that we or our subsidiaries may incur or whether any such indebtedness can be secured by our assets. As of October 31, 2021, we had approximately $82.9 million of outstanding indebtedness, inclusive of $55.2 million of the Original Notes, which was unsecured, and approximately $0.8 million of outstanding capital lease obligations, which was secured. |
Guarantors: | The Notes will not be guaranteed by any of our subsidiaries or affiliates. |
Optional Redemption: | We may redeem the Notes for cash in whole or in part at any time at our option (i) on or after October 31, 2023 and prior to October 31, 2024, at a price equal to 102% of their principal amount, (ii) on or after October 31, 2024 and prior to October 31, 2025, at a price equal to 101% of their principal amount, and (iii) on or after October 31, 2025, at a price equal to 100% of their principal amount, plus (in each case noted above) accrued and unpaid interest to, but excluding, the date of redemption. See “ Description of Notes—Optional Redemption |
In addition, we may redeem the Notes, in whole, but not in part, at any time at our option, at a redemption price equal to 100.5% of the principal amount plus accrued and unpaid interest to, but not including, the date of redemption, upon the occurrence of certain change of control events. See “ Description of Notes—Optional Redemption Upon Change of Control |
Sinking Fund: | The Notes will not be subject to any sinking funding (i.e., no amounts will be set aside by us to ensure repayment of the Notes at maturity). |
Use of Proceeds: | We anticipate using the net proceeds of this offering for general corporate purposes, including funding capital expenditures, future acquisitions, investments and working capital and repaying indebtedness. For additional information, see “ Use of Proceeds |
Events of Default: | Events of default generally will include failure to pay principal, failure to pay interest, failure to observe or perform any other covenant or warranty in the Notes and the Original Notes, or in the indenture that governs the Notes and the Original Notes, and certain events of bankruptcy, insolvency or reorganization. See “ Description of Notes—Events of Default |
No Financial Covenants: | The indenture governing the Notes does not contain financial covenants. |
Additional Notes: | We may create and issue additional Notes ranking equally and ratably with the Notes and the Original Notes in all respects, so that such further additional Notes will constitute and form a single series with the Notes and the Original Notes and will have the same terms as to |
status, redemption or otherwise (except the price to public, the issue date, and, if applicable, the initial interest accrual date and initial interest payment date) as the Notes and the Original Notes; provided that if any such further additional Notes are not fungible with the Notes initially offered hereby for U.S. federal income tax purposes, such further additional Notes will have one or more separate CUSIP numbers. |
Defeasance: | The Notes are subject to legal and covenant defeasance by us. See “ Description of Notes—Defeasance |
Listing: | The issued and outstanding Original Notes are listed on the Nasdaq Global Market and have been trading under the symbol “GREEL” since October 14, 2021. We intend to list the Notes on the Nasdaq Global Select Market under the same trading symbol. |
Form and Denomination: | The Notes will be issued in book-entry form in denominations of $25 and integral multiples thereof. The Notes will be represented by a permanent global certificate deposited with the trustee as custodian for DTC and registered in the name of a nominee of DTC. Beneficial interests in any of the Notes will be shown on, and transfers will be effected only through, records maintained by DTC and its direct and indirect participants and any such interest may not be exchanged for certificated securities, except in limited circumstances. |
Settlement: | Delivery of the Notes will be made against payment therefor on or about , 2021. |
Trustee: | Wilmington Savings Fund Society, FSB |
Governing Law: | The indenture is and the Notes will be governed by and construed in accordance with the laws of the State of New York. |
Risk factors: | Investing in the Notes involves a high degree of risk and purchasers may lose their entire investment. See “ Risk Factors |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Total revenue | $ | 35,754 | $ | 6,123 | $ | 62,993 | $ | 13,937 | ||||||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 9,659 | 4,072 | 19,046 | 8,681 | ||||||||||||
Selling, general and administrative expenses | 5,446 | 1,493 | 12,017 | 4,131 | ||||||||||||
Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||
Depreciation and amortization | 2,667 | 1,064 | 5,531 | 3,227 | ||||||||||||
Loss from operations | (11,865 | ) | (506 | ) | (4,696 | ) | (2,102 | ) | ||||||||
Total other (expense) income, net | (1,020 | ) | 217 | (1,263 | ) | (364 | ) | |||||||||
Benefit for income taxes | (4,989 | ) | — | (2,860 | ) | — | ||||||||||
Net loss | $ | (7,896 | ) | $ | (289 | ) | $ | (3,099 | ) | $ | (2,466 | ) | ||||
Basic | $ | (0.28 | ) | $ | (0.13 | ) | ||||||||||
Diluted | $ | (0.28 | ) | $ | (0.13 | ) |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | $ | 20,114 | $ | 4,439 | ||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 12,600 | 4,900 | ||||||
Selling, general and administrative expenses | 5,581 | 5,833 | ||||||
Depreciation and amortization | 4,564 | 1,679 | ||||||
Loss from operations | (2,631 | ) | (7,973 | ) | ||||
Interest and other expense, net | (659 | ) | (502 | ) | ||||
Net loss | $ | (3,290 | ) | $ | (8,475 | ) |
September 30, 2021 | December 31, 2020 | |||||||
Current assets | $ | 64,425 | $ | 7,774 | ||||
Long-term assets | 193,886 | 56,793 | ||||||
Total assets | 258,311 | 64,567 | ||||||
Total liabilities | 52,509 | 20,207 | ||||||
Total stockholders’ equity | $ | 205,802 | $ | 44,360 |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | 43,864 | 63,333 | ||||||
Cost of revenue | 28,921 | 46,865 | ||||||
Gross profit | 14,943 | 16,468 | ||||||
Total operating expenses | 14,891 | 13,517 | ||||||
Income from operations | 52 | 2,951 | ||||||
Interest income and other, net | 496 | 1,049 | ||||||
Income taxes | (102 | ) | (154 | ) | ||||
Net income | $ | 446 | $ | 3,846 | ||||
Net income per share: Basic and Diluted | $ | 0.02 | $ | 0.20 |
December 31, 2020 | ||||
Current assets | $ | 37,612 | ||
Long-term assets | 1,654 | |||
Total assets | $ | 39,266 | ||
Total liabilities | $ | 4,830 | ||
Total stockholders’ equity | $ | 34,436 |
Issuer: | Greenidge Generation Holdings Inc. |
Notes Offered: | $35,000,000 aggregate principal amount of 8.50% Senior Notes due 2026 (or $40,250,000 aggregate principal amount of 8.50% Senior Notes due 2026 if the underwriters’ option is exercised in full). |
Offering Price: | % of the principal amount plus accrued interest from October 13, 2021 to, but not including, , 2021, totaling $ , and any additional interest from , 2021 if settlement occurs after that date. |
Fungibility: | The Notes will be consolidated, form a single series, and be fully fungible with our outstanding 8.50% Notes due 2026 issued in an aggregate principal amount of $55.2 million on October 13, 2021. After giving effect to the offering of the Notes, the total amount outstanding of our 8.50% Notes due 2026 will be $90,200,000 (or $95,450,000 aggregate principal amount of 8.50% Senior Notes due 2026 if the underwriters’ option is exercised in full). |
Maturity Date: | The Notes will mature on October 31, 2026, unless redeemed prior to maturity. |
Interest Rate and Payment Dates: | 8.50% interest per annum on the principal amount of the Notes, payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, beginning on January 31, 2022 and at maturity. |
Ranking: | The Notes will be our senior unsecured obligations and will rank: |
The indenture governing the Notes does not limit the amount of indebtedness that we or our subsidiaries may incur or whether any such indebtedness can be secured by our assets. As of October 31, 2021, we had approximately $82.9 million of outstanding indebtedness, inclusive of $55.2 million of the Original Notes, which was unsecured, and approximately $0.8 million of outstanding capital lease obligations, which was secured. |
Guarantors: | The Notes will not be guaranteed by any of our subsidiaries or affiliates. |
Optional Redemption: | We may redeem the Notes for cash in whole or in part at any time at our option (i) on or after October 31, 2023 and prior to October 31, 2024, at a price equal to 102% of their principal amount, (ii) on or after October 31, 2024 and prior to October 31, 2025, at a price equal to 101% of their principal amount, and (iii) on or after October 31, 2025, at a price equal to 100% of their principal amount, plus (in each case noted above) accrued and unpaid interest to, but excluding, the date of redemption. See “ Description of Notes—Optional Redemption |
In addition, we may redeem the Notes, in whole, but not in part, at any time at our option, at a redemption price equal to 100.5% of the principal amount plus accrued and unpaid interest to, but not including, the date of redemption, upon the occurrence of certain change of control events. See “ Description of Notes—Optional Redemption Upon Change of Control |
Sinking Fund: | The Notes will not be subject to any sinking funding (i.e., no amounts will be set aside by us to ensure repayment of the Notes at maturity). |
Use of Proceeds: | We anticipate using the net proceeds of this offering for general corporate purposes, including funding capital expenditures, future acquisitions, investments and working capital and repaying indebtedness. For additional information, see “ Use of Proceeds |
Events of Default: | Events of default generally will include failure to pay principal, failure to pay interest, failure to observe or perform any other covenant or warranty in the Notes and the Original Notes, or in the indenture that governs the Notes and the Original Notes, and certain events of bankruptcy, insolvency or reorganization. See “ Description of Notes—Events of Default |
No Financial Covenants: | The indenture governing the Notes does not contain financial covenants. |
Additional Notes: | We may create and issue additional Notes ranking equally and ratably with the Notes and the Original Notes in all respects, so that such further additional Notes will constitute and form a single series with the Notes and the Original Notes and will have the same terms as to |
status, redemption or otherwise (except the price to public, the issue date, and, if applicable, the initial interest accrual date and initial interest payment date) as the Notes and the Original Notes; provided that if any such further additional Notes are not fungible with the Notes initially offered hereby for U.S. federal income tax purposes, such further additional Notes will have one or more separate CUSIP numbers. |
Defeasance: | The Notes are subject to legal and covenant defeasance by us. See “ Description of Notes—Defeasance |
Listing: | The issued and outstanding Original Notes are listed on the Nasdaq Global Market and have been trading under the symbol “GREEL” since October 14, 2021. We intend to list the Notes on the Nasdaq Global Select Market under the same trading symbol. |
Form and Denomination: | The Notes will be issued in book-entry form in denominations of $25 and integral multiples thereof. The Notes will be represented by a permanent global certificate deposited with the trustee as custodian for DTC and registered in the name of a nominee of DTC. Beneficial interests in any of the Notes will be shown on, and transfers will be effected only through, records maintained by DTC and its direct and indirect participants and any such interest may not be exchanged for certificated securities, except in limited circumstances. |
Settlement: | Delivery of the Notes will be made against payment therefor on or about , 2021. |
Trustee: | Wilmington Savings Fund Society, FSB |
Governing Law: | The indenture is and the Notes will be governed by and construed in accordance with the laws of the State of New York. |
Risk factors: | Investing in the Notes involves a high degree of risk and purchasers may lose their entire investment. See “ Risk Factors |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Total revenue | $ | 35,754 | $ | 6,123 | $ | 62,993 | $ | 13,937 | ||||||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 9,659 | 4,072 | 19,046 | 8,681 | ||||||||||||
Selling, general and administrative expenses | 5,446 | 1,493 | 12,017 | 4,131 | ||||||||||||
Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||
Depreciation and amortization | 2,667 | 1,064 | 5,531 | 3,227 | ||||||||||||
Loss from operations | (11,865 | ) | (506 | ) | (4,696 | ) | (2,102 | ) | ||||||||
Total other (expense) income, net | (1,020 | ) | 217 | (1,263 | ) | (364 | ) | |||||||||
Benefit for income taxes | (4,989 | ) | — | (2,860 | ) | — | ||||||||||
Net loss | $ | (7,896 | ) | $ | (289 | ) | $ | (3,099 | ) | $ | (2,466 | ) | ||||
Basic | $ | (0.28 | ) | $ | (0.13 | ) | ||||||||||
Diluted | $ | (0.28 | ) | $ | (0.13 | ) |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | $ | 20,114 | $ | 4,439 | ||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 12,600 | 4,900 | ||||||
Selling, general and administrative expenses | 5,581 | 5,833 | ||||||
Depreciation and amortization | 4,564 | 1,679 | ||||||
Loss from operations | (2,631 | ) | (7,973 | ) | ||||
Interest and other expense, net | (659 | ) | (502 | ) | ||||
Net loss | $ | (3,290 | ) | $ | (8,475 | ) |
September 30, 2021 | December 31, 2020 | |||||||
Current assets | $ | 64,425 | $ | 7,774 | ||||
Long-term assets | 193,886 | 56,793 | ||||||
Total assets | 258,311 | 64,567 | ||||||
Total liabilities | 52,509 | 20,207 | ||||||
Total stockholders’ equity | $ | 205,802 | $ | 44,360 |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Total revenue | 43,864 | 63,333 | ||||||
Cost of revenue | 28,921 | 46,865 | ||||||
Gross profit | 14,943 | 16,468 | ||||||
Total operating expenses | 14,891 | 13,517 | ||||||
Income from operations | 52 | 2,951 | ||||||
Interest income and other, net | 496 | 1,049 | ||||||
Income taxes | (102 | ) | (154 | ) | ||||
Net income | $ | 446 | $ | 3,846 | ||||
Net income per share: Basic and Diluted | $ | 0.02 | $ | 0.20 |
December 31, 2020 | ||||
Current assets | $ | 37,612 | ||
Long-term assets | 1,654 | |||
Total assets | $ | 39,266 | ||
Total liabilities | $ | 4,830 | ||
Total stockholders’ equity | $ | 34,436 |
Issuer: | Greenidge Generation Holdings Inc. |
Notes Offered: | $35,000,000 aggregate principal amount of 8.50% Senior Notes due 2026 (or $40,250,000 aggregate principal amount of 8.50% Senior Notes due 2026 if the underwriters’ option is exercised in full). |
Offering Price: | % of the principal amount plus accrued interest from October 13, 2021 to, but not including, , 2021, totaling $ , and any additional interest from , 2021 if settlement occurs after that date. |
Fungibility: | The Notes will be consolidated, form a single series, and be fully fungible with our outstanding 8.50% Notes due 2026 issued in an aggregate principal amount of $55.2 million on October 13, 2021. After giving effect to the offering of the Notes, the total amount outstanding of our 8.50% Notes due 2026 will be $90,200,000 (or $95,450,000 aggregate principal amount of 8.50% Senior Notes due 2026 if the underwriters’ option is exercised in full). |
Maturity Date: | The Notes will mature on October 31, 2026, unless redeemed prior to maturity. |
Interest Rate and Payment Dates: | 8.50% interest per annum on the principal amount of the Notes, payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, beginning on January 31, 2022 and at maturity. |
Ranking: | The Notes will be our senior unsecured obligations and will rank: |
The indenture governing the Notes does not limit the amount of indebtedness that we or our subsidiaries may incur or whether any such indebtedness can be secured by our assets. As of October 31, 2021, we had approximately $82.9 million of outstanding indebtedness, inclusive of $55.2 million of the Original Notes, which was unsecured, and approximately $0.8 million of outstanding capital lease obligations, which was secured. |
Guarantors: | The Notes will not be guaranteed by any of our subsidiaries or affiliates. |
Optional Redemption: | We may redeem the Notes for cash in whole or in part at any time at our option (i) on or after October 31, 2023 and prior to October 31, 2024, at a price equal to 102% of their principal amount, (ii) on or after October 31, 2024 and prior to October 31, 2025, at a price equal to 101% of their principal amount, and (iii) on or after October 31, 2025, at a price equal to 100% of their principal amount, plus (in each case noted above) accrued and unpaid interest to, but excluding, the date of redemption. See “ Description of Notes—Optional Redemption |
In addition, we may redeem the Notes, in whole, but not in part, at any time at our option, at a redemption price equal to 100.5% of the principal amount plus accrued and unpaid interest to, but not including, the date of redemption, upon the occurrence of certain change of control events. See “ Description of Notes—Optional Redemption Upon Change of Control |
Sinking Fund: | The Notes will not be subject to any sinking funding (i.e., no amounts will be set aside by us to ensure repayment of the Notes at maturity). |
Use of Proceeds: | We anticipate using the net proceeds of this offering for general corporate purposes, including funding capital expenditures, future acquisitions, investments and working capital and repaying indebtedness. For additional information, see “ Use of Proceeds |
Events of Default: | Events of default generally will include failure to pay principal, failure to pay interest, failure to observe or perform any other covenant or warranty in the Notes and the Original Notes, or in the indenture that governs the Notes and the Original Notes, and certain events of bankruptcy, insolvency or reorganization. See “ Description of Notes—Events of Default |
No Financial Covenants: | The indenture governing the Notes does not contain financial covenants. |
Additional Notes: | We may create and issue additional Notes ranking equally and ratably with the Notes and the Original Notes in all respects, so that such further additional Notes will constitute and form a single series with the Notes and the Original Notes and will have the same terms as to |
status, redemption or otherwise (except the price to public, the issue date, and, if applicable, the initial interest accrual date and initial interest payment date) as the Notes and the Original Notes; provided that if any such further additional Notes are not fungible with the Notes initially offered hereby for U.S. federal income tax purposes, such further additional Notes will have one or more separate CUSIP numbers. |
Defeasance: | The Notes are subject to legal and covenant defeasance by us. See “ Description of Notes—Defeasance |
Listing: | The issued and outstanding Original Notes are listed on the Nasdaq Global Market and have been trading under the symbol “GREEL” since October 14, 2021. We intend to list the Notes on the Nasdaq Global Select Market under the same trading symbol. |
Form and Denomination: | The Notes will be issued in book-entry form in denominations of $25 and integral multiples thereof. The Notes will be represented by a permanent global certificate deposited with the trustee as custodian for DTC and registered in the name of a nominee of DTC. Beneficial interests in any of the Notes will be shown on, and transfers will be effected only through, records maintained by DTC and its direct and indirect participants and any such interest may not be exchanged for certificated securities, except in limited circumstances. |
Settlement: | Delivery of the Notes will be made against payment therefor on or about , 2021. |
Trustee: | Wilmington Savings Fund Society, FSB |
Governing Law: | The indenture is and the Notes will be governed by and construed in accordance with the laws of the State of New York. |
Risk factors: | Investing in the Notes involves a high degree of risk and purchasers may lose their entire investment. See “ Risk Factors |
��� | changes in commodity prices and the supply of commodities, including but not limited to natural gas and oil; |
As of September 30, 2021 | As of September 30, 2021 | |||||||||||||||||||||||
Actual | As adjusted for the Original Notes Offering | As further adjusted for this offering (1) (2) | Actual | As adjusted for the Original Notes Offering | As further adjusted for this offering (1) (2) | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Cash and cash equivalents | $ | 51,149 | $ | 103,854 | $ | $ | 51,149 | $ | 103,854 | $ | ||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Notes payable, current portion | 17,994 | 17,994 | ||||||||||||||||||||||
Lease obligations, current portion | 852 | 852 | ||||||||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Deferred tax liability | 3,959 | 3,959 | ||||||||||||||||||||||
Notes payable, net of current portion (3) | 7,369 | 7,369 | 7,369 | 7,369 | ||||||||||||||||||||
Finance lease obligation, net of current portion | 111 | 111 | 111 | 111 | ||||||||||||||||||||
Asset retirement obligations | 2,380 | 2,380 | ||||||||||||||||||||||
Environmental trust liability | 4,994 | 4,994 | 4,994 | 4,994 | ||||||||||||||||||||
Other long-term liabilities | 242 | 242 | ||||||||||||||||||||||
Original Notes (4) | — | 55,200 | 55,200 | — | 55,200 | |||||||||||||||||||
Notes offered hereby (5) | — | — | — | — | ||||||||||||||||||||
Total long-term liabilities | 19,055 | 74,255 | ||||||||||||||||||||||
Total Stockholders’ equity (deficit) | 202,029 | 202,029 | ||||||||||||||||||||||
Total Debt | 31,320 | 86,520 | ||||||||||||||||||||||
Total Stockholders’ equity | 205,802 | 205,802 | ||||||||||||||||||||||
Total capitalization | $ | 221,084 | $ | 276,284 | $ | $ | 237,122 | $ | 292,322 | $ |
(1) | Excludes up to an additional |
(2) | Excludes sales of shares of class A common stock in connection with the Purchase Agreement. |
(3) | Excludes funding of additional notes payable associated with the purchase commitments subsequent to September 30, 2021 as disclosed below under “ Description of Other Indebtedness |
(4) | Excludes unamortized debt issuance costs of approximately |
(5) | Excludes unamortized debt issuance costs of approximately $ million on the Notes offered hereby. |
$ in thousands | Total | Less than 1 Year | 1-3 Years | |||||||||
Notes payable (1) | $ | 42,932 | $ | 25,229 | $ | 17,703 | ||||||
Leases (2) | $ | 943 | $ | 670 | $ | 273 | ||||||
Natural gas commitments (3) | $ | 9,187 | $ | 9,187 | $ | — | ||||||
Purchase commitments (4) | $ | 103,778 | $ | 103,778 | $ | — |
(1) | The notes payable amounts presented in the above table include financed principal obligations plus estimated contractual future interest and risk premium payments. |
(2) | Lease obligations include fixed monthly rental payments and exclude estimated revenue sharing payments. |
(3) | Represents off balance sheet arrangements to purchase natural gas through March 1, 2022. |
(4) | Represents miner purchase commitments as of September 30, 2021 reduced by deposits made as of September 30, 2021. |
(1) | any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “Beneficial Owner” (as defined in Rules 13d-3 and13d-5 under the Exchange Act, except that for purposes of this clause (1) such Person shall be deemed to have “Beneficial Ownership” of all shares that any such Person has the right to acquire, whether such right is exercisable immediately or only |
after the passage of time), directly or indirectly, of more than 50.0% of the total voting power of the Voting Stock of the Company; |
(2) | the merger or consolidation of the Company with or into another Person or the merger of another Person with or into the Company, or the sale of all or substantially all the assets of the Company (determined on a consolidated basis) to another Person other than a transaction following which, in the case of a merger or consolidation transaction, holders of securities that represented 100.0% of the Voting Stock of the Company immediately prior to such transaction (or other securities into which such securities are converted as part of such merger or consolidation transaction) own directly or indirectly at least a majority of the voting power of the Voting Stock of the surviving Person in such merger or consolidation transaction immediately after such transaction and in substantially the same proportion as before the transaction; |
(3) | “Continuing Directors” (as defined below) cease to constitute at least a majority of the Company’s board of directors; or |
(4) | if after the Notes are initially listed on the Nasdaq Global Select Market or another national securities exchange, the Notes fail, or at any point cease, to be listed on the Nasdaq Global Select Market or such other national securities exchange. For the avoidance of doubt, it shall not be a Change of Control if after the Notes are initially listed on the Nasdaq Global Select Market or another national securities exchange, such Notes are subsequently listed on a different national securities exchange and the prior listing is terminated. |
Greenidge | Reorganization Pro Forma Adjustments | Note 4 | Pro Forma Greenidge Post- Reorganization | Support Pre-Merger | Merger Pro Froma Adjustments | Note 4 | Pro Froma Combined | |||||||||||||||||||||||||
Revenues | $ | 62,993 | $ | — | $ | 62,993 | $ | 24,837 | $ | — | $ | 87,830 | ||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization shown below) | 19,046 | — | 19,046 | 15,706 | (88 | ) | (f | ) | 34,664 | |||||||||||||||||||||||
Engineering and IT | — | — | — | 2,018 | (16 | ) | (f | ) | 2,002 | |||||||||||||||||||||||
Selling, general and administrative | 12,017 | — | 12,017 | 12,788 | (178 | ) | (f | ) | 20,238 | |||||||||||||||||||||||
(4,389 | ) | (h | ) | |||||||||||||||||||||||||||||
Merger and other costs | 31,095 | — | 31,095 | 4,389 | (h | ) | 35,484 | |||||||||||||||||||||||||
Depreciation and amortization | 5,531 | — | 5,531 | 282 | (f | ) | 8,938 | |||||||||||||||||||||||||
3,125 | (c | ) | ||||||||||||||||||||||||||||||
Loss from operations | (4,696 | ) | — | (4,696 | ) | (5,675 | ) | (3,125 | ) | (13,496 | ) | |||||||||||||||||||||
Interest (expense) income & other | (1,263 | ) | 22 | (d | ) | (1,241 | ) | 229 | — | (1,012 | ) | |||||||||||||||||||||
Loss before income taxes | (5,959 | ) | 22 | (5,937 | ) | (5,446 | ) | (3,125 | ) | (14,508 | ) | |||||||||||||||||||||
Income tax (benefit) provision | (2,860 | ) | 6 | (e | ) | (2,854 | ) | 73 | (859 | ) | (e | ) | (3,640 | ) | ||||||||||||||||||
Net loss | $ | (3,099 | ) | $ | 16 | $ | (3,083 | ) | $ | (5,519 | ) | $ | (2,266 | ) | $ | (10,868 | ) | |||||||||||||||
Net loss per common share | ||||||||||||||||||||||||||||||||
Basic | $ | (0.13 | ) | (0.11 | ) | (0.29 | ) | |||||||||||||||||||||||||
Diluted | $ | (0.13 | ) | (0.11 | ) | (0.29 | ) | |||||||||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||||||||
Basic | 28,949 | (98 | ) | (b | ) | 28,851 | 8,752 | (g | ) | 37,603 | ||||||||||||||||||||||
Diluted | 28,949 | (98 | ) | (b | ) | 28,851 | 8,752 | (g | ) | 37,603 |
Greenidge | Reorganization Pro Forma Adjustments | Note 4 | Pro Forma Greenidge Post Reorganization | Support | Merger Pro Forma Adjustments | Note 4 | Pro Forma Combined | Greenidge | Reorganization Pro Forma Adjustments | Note 4 | Pro Forma Greenidge Post Reorganization | Support | Merger Pro Forma Adjustments | Note 4 | Pro Forma Combined | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 20,114 | $ | — | $ | 20,114 | $ | 43,864 | — | $ | 63,978 | $ | 20,114 | $ | — | $ | 20,114 | $ | 43,864 | — | $ | 63,978 | ||||||||||||||||||||||||||||||||||||||||||
Cost of revenues (exclusive of depreciation and amortization shown below) | 12,600 | — | 12,600 | 28,921 | (247 | ) | (g | ) | 41,274 | 12,600 | — | 12,600 | 28,921 | (247 | ) | (f | ) | 41,274 | ||||||||||||||||||||||||||||||||||||||||||||||
Engineering and IT | — | — | — | 3,655 | (5 | ) | (g | ) | 3,650 | — | — | — | 3,655 | (5 | ) | (f | ) | 3,650 | ||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 5,581 | — | 5,581 | 11,236 | (67 | ) | (g | ) | 16,750 | 5,581 | — | 5,581 | 11,236 | (67 | ) | (f | ) | 16,750 | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,564 | — | 4,564 | — | 319 | (g | ) | 9,312 | 4,564 | — | 4,564 | — | 319 | (f | ) | 9,312 | ||||||||||||||||||||||||||||||||||||||||||||||||
4,429 | (c | ) | 4,429 | (c | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | (2,631 | ) | — | (2,631 | ) | 52 | (4,429 | ) | (7,008 | ) | (2,631 | ) | — | (2,631 | ) | 52 | (4,429 | ) | (7,008 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income (expense) and other | (659 | ) | 573 | (d) | (86 | ) | 496 | — | 410 | (659 | ) | 573 | (d) | (86 | ) | 496 | — | 410 | ||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (3,290 | ) | 573 | (2,717 | ) | 548 | (4,429 | ) | (6,598 | ) | (3,290 | ) | 573 | (2,717 | ) | 548 | (4,429 | ) | (6,598 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | — | 482 | (f | ) | 482 | 102 | (1,218 | ) | (e | ) | (634 | ) | — | — | — | 102 | (1,218 | ) | (e | ) | (1,116 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (3,290 | ) | $ | 91 | $ | (3,199 | ) | $ | 446 | $ | (3,211 | ) | $ | (5,964 | ) | $ | (3,290 | ) | $ | 573 | $ | (2,717 | ) | $ | 446 | $ | (3,211 | ) | $ | (5,482 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | ($ | 0.11 | ) | $ | 0.02 | ($ | 0.19 | ) | ($ | 0.10 | ) | $ | 0.02 | ($ | 0.17 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | ($ | 0.11 | ) | $ | 0.02 | ($ | 0.19 | ) | ($ | 0.10 | ) | $ | 0.02 | ($ | 0.17 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 28,000 | (b) | 28,000 | 19,192 | (19,192 | ) | (a | ) | 30,961 | 28,000 | (b) | 28,000 | 19,192 | (19,192 | ) | (a | ) | 31,523 | ||||||||||||||||||||||||||||||||||||||||||||||
2,961 | (h | ) | 3,523 | (g | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | 28,000 | (b) | 28,000 | 19,369 | (19,369 | ) | (a | ) | 30,961 | 28,000 | (b) | 28,000 | 19,369 | (19,369 | ) | (a | ) | 31,523 | ||||||||||||||||||||||||||||||||||||||||||||||
2,961 | (h | ) | 3,523 | (g | ) |
$ in thousands, except per share amount | ||||
Support common stock exchanged | 25,745,487 | |||
Exchange ratio | 0.115 | |||
Greenidge Class A common stock exchanged | 2,960,731 | |||
Greenidge common stock value per share | $ | 31.71 | ||
Consideration paid | $ | 93,885 | ||
$ in thousands | ||||
Cash and cash equivalents | $ | 27,113 | ||
Short term investments | 496 | |||
Accounts receivable | 5,383 | |||
Prepaid expenses and other current assets | 713 | |||
Property and equipment | 1,349 | |||
Other long-term assets | 383 | |||
Accounts payable | (117 | ) | ||
Accrued expenses and other current liabilities | (3,328 | ) | ||
Other long-term liabilities | (242 | ) | ||
Intangible assets | 22,690 | |||
Deferred tax liability | (6,904 | ) | ||
Goodwill | 46,349 | |||
Total consideration | $ | 93,885 | ||
$ in thousands | ||||||||
Identifiable Intangible Asset | Useful Life | Fair Value | ||||||
Customer relationships | 5 years | $ | 21,600 | |||||
Tradename | 10 years | 1,090 | ||||||
Total identifiable intangible assets | $ | 22,690 | ||||||
(a) | Represents the elimination of the historical equity of Support. |
(b) | Reflects the |
(c) | Reflects an adjustment for amortization of intangible assets, consisting of customer relationships and the Support.com trade name, recognized as a result of the transaction. The estimated value for the customer relationships is $21.6 million, which was determined by the present value of expected cash flows from such relationships. The estimated value of the customer relationships is assumed to be amortized over five years on a straight-line basis. The estimated value of the Support.com trade name is |
(d) | Reflects the elimination of interest expense related to loans from Greenidge’s controlling shareholder that have been deemed fully satisfied. |
(e) | Adjusts the tax provision to reflect the impact on the income tax provision resulting from the proforma adjustments, while assuming that the consolidated entity is a taxable entity due to the reorganization from an LLC to a corporation as of January 1, 2020. |
(f) |
Adjusts Support’s results to present depreciation and amortization as a separate line item, consistent with Greenidge’s presentation. |
Reflects the impact on the weighted average shares of the issuance of 2,960,731 shares of class A common stock to consummate the Merger, 562,174 shares for the Investor Fee associated with the successful completion of the Merger as if the Merger occurred on January 1, 2020. For the pro forma statement of operations for the nine months ended September 30, 2021, it also reflects the impact on the weighted average shares of the conversion of preferred stock to common stock as of January 29, 2021, the date of the private placement financing, since the conversion was caused by Greenidge’s class A common stock becoming publicly traded as a result of the Merger. |
(h) | Represents Merger related costs incurred by Support being reclassed to Merger and other costs. |
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
$ in thousands | 2021 | 2020 | Variance | 2021 | 2020 | Variance | ||||||||||||||||||
Total revenue | $ | 35,754 | $ | 6,123 | 483.9 | % | $ | 62,993 | $ | 13,937 | 352.0 | % | ||||||||||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 9,659 | 4,072 | 137.2 | % | 19,046 | 8,681 | 119.4 | % | ||||||||||||||||
Selling, general and administrative expenses | 5,446 | 1,493 | 264.8 | % | 12,017 | 4,131 | 190.9 | % | ||||||||||||||||
Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||||||||||
Depreciation and amortization | 2,667 | 1,064 | 150.7 | % | 5,531 | 3,227 | 71.4 | % | ||||||||||||||||
Loss from operations | (11,865 | ) | (506 | ) | N/A | (4,696 | ) | (2,102 | ) | N/A | ||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
Interest expense, net | (1,009 | ) | — | N/A | (1,377 | ) | — | N/A | ||||||||||||||||
Interest expense - related party | — | — | N/A | (22 | ) | (540 | ) | -95.9 | % | |||||||||||||||
Loss on sale of digital assets | 18 | 36 | -50.0 | % | 159 | 11 | N/A | |||||||||||||||||
Other (expense) income, net | (29 | ) | 181 | -116.0 | % | (23 | ) | 165 | N/A | |||||||||||||||
Total other (expense) income, net | (1,020 | ) | 217 | -570.0 | % | (1,263 | ) | (364 | ) | 247.0 | % | |||||||||||||
Loss before income taxes | (12,885 | ) | (289 | ) | N/A | (5,959 | ) | (2,466 | ) | 141.6 | % | |||||||||||||
(Benefit) provision for income taxes | (4,989 | ) | — | N/A | (2,860 | ) | — | N/A | ||||||||||||||||
Net loss | $ | (7,896 | ) | $ | (289 | ) | N/A | $ | (3,099 | ) | $ | (2,466 | ) | N/A | ||||||||||
Adjusted Amounts (a) | ||||||||||||||||||||||||
Income (loss) from operations | $ | 18,110 | $ | (506 | ) | $ | 26,527 | $ | (2,102 | ) | ||||||||||||||
Operating margin | 50.7 | % | -8.3 | % | 42.1 | % | -15.1 | % | ||||||||||||||||
Net income (loss) | $ | 12,166 | $ | (289 | ) | $ | 17,868 | $ | (2,466 | ) | ||||||||||||||
Other Financial Data (a) | ||||||||||||||||||||||||
EBITDA | $ | (9,209 | ) | $ | 775 | $ | 971 | $ | 1,301 | |||||||||||||||
as a percent of revenues | -25.8 | % | 12.7 | % | 1.5 | % | 9.3 | % | ||||||||||||||||
Adjusted EBITDA | $ | 21,177 | $ | 775 | $ | 33,668 | $ | 1,301 | ||||||||||||||||
as a percent of revenues | 59.2 | % | 12.7 | % | 53.4 | % | 9.3 | % |
(a) | Adjusted Amounts and Other Financial Data are non-GAAP performance measures. A reconciliation of reported amounts to adjusted amounts can be found in the “Non-GAAP Measures and Reconciliations |
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
$ in thousands | 2021 | 2020 | Variance | 2021 | 2020 | Variance | ||||||||||||||||||
Cryptocurrency mining | $ | 31,156 | $ | 3,043 | 923.9 | % | $ | 54,217 | $ | 8,673 | 525.1 | % | ||||||||||||
Power and capacity | 3,077 | 3,080 | -0.1 | % | 7,255 | 5,264 | 37.8 | % | ||||||||||||||||
Services and other | 1,521 | — | N/A | 1,521 | — | N/A | ||||||||||||||||||
Total revenue | $ | 35,754 | $ | 6,123 | 483.9 | % | $ | 62,993 | $ | 13,937 | 352.0 | % | ||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 2020 | 2021 | 2020 | ||||||||||||||
Cryptocurrency mining | 87.1 | % | 49.7 | % | 86.1 | % | 62.2 | % | ||||||||
Power and capacity | 8.6 | % | 50.3 | % | 11.5 | % | 37.8 | % | ||||||||
Services and other | 4.3 | % | N/A | 2.4 | % | N/A | ||||||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
$ in thousands | 2021 | 2020 | Variance | 2021 | 2020 | Variance | ||||||||||||||||||
Cryptocurrency mining | $ | 5,974 | $ | 1,027 | 481.7 | % | $ | 11,504 | $ | 2,966 | 287.9 | % | ||||||||||||
Power and capacity | 2,831 | 3,045 | -7.0 | % | 6,688 | 5,715 | 17.0 | % | ||||||||||||||||
Services and other | 854 | — | N/A | 854 | — | N/A | ||||||||||||||||||
Total cost of revenue | $ | 9,659 | $ | 4,072 | 137.2 | % | $ | 19,046 | $ | 8,681 | 119.4 | % | ||||||||||||
As a percentage of total revenue | 27.0 | % | 66.5 | % | 30.2 | % | 62.3 | % |
Quarters Ended September 30, | Nine Months Ended September 30, | Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
$ in thousands | 2021 | 2020 | Variance | 2021 | 2020 | Variance | 2021 | 2020 | Variance | 2021 | 2020 | Variance | ||||||||||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||||||||||||||
Cryptocurrency Mining and Power Generation | $ | 34,233 | $ | 6,123 | 459.1 | % | $ | 61,472 | $ | 13,937 | 341.1 | % | $ | 34,233 | $ | 6,123 | 459.1 | % | $ | 61,472 | $ | 13,937 | 341.1 | % | ||||||||||||||||||||||||
Support Services | 1,521 | — | N/A | 1,521 | — | N/A | 1,521 | — | N/A | 1,521 | — | N/A | ||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 35,754 | $ | 6,123 | 483.9 | % | $ | 62,993 | $ | 13,937 | 352.0 | % | $ | 35,754 | $ | 6,123 | 483.9 | % | $ | 62,993 | $ | 13,937 | 352.0 | % | ||||||||||||||||||||||||
SEGMENT ADJUSTED EBITDA | ||||||||||||||||||||||||||||||||||||||||||||||||
Cryptocurrency Mining and Power Generation | $ | 20,973 | $ | 775 | 2606.2 | % | $ | 33,464 | $ | 1,301 | 2472.2 | % | $ | 20,973 | $ | 775 | 2,606.2 | % | $ | 33,464 | $ | 1,301 | 2,472.2 | % | ||||||||||||||||||||||||
Support Services | 204 | — | N/A | 204 | — | N/A | 204 | — | N/A | 204 | — | N/A | ||||||||||||||||||||||||||||||||||||
Total Adjusted EBITDA | $ | 21,177 | $ | 775 | 2632.5 | % | $ | 33,668 | $ | 1,301 | 2487.9 | % | $ | 21,177 | $ | 775 | 2,632.5 | % | $ | 33,668 | $ | 1,301 | 2,487.9 | % | ||||||||||||||||||||||||
Reconciliation to loss before income taxes: | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | (2,667 | ) | (1,064 | ) | (5,531 | ) | (3,227 | ) | (2,667 | ) | (1,064 | ) | (5,531 | ) | (3,227 | ) | ||||||||||||||||||||||||||||||||
Stock-based compensation | (411 | ) | — | (1,474 | ) | — | (411 | ) | — | (1,474 | ) | — | ||||||||||||||||||||||||||||||||||||
Merger and other costs | (29,847 | ) | — | (31,095 | ) | — | (29,847 | ) | — | (31,095 | ) | — | ||||||||||||||||||||||||||||||||||||
Expansion costs | (128 | ) | — | (128 | ) | — | (128 | ) | — | (128 | ) | — | ||||||||||||||||||||||||||||||||||||
Interest expense, net | (1,009 | ) | — | (1,399 | ) | (540 | ) | (1,009 | ) | — | (1,399 | ) | (540 | ) | ||||||||||||||||||||||||||||||||||
Consolidated loss before income taxes | $ | (12,885 | ) | $ | (289 | ) | $ | (5,959 | ) | $ | (2,466 | ) | $ | (12,885 | ) | $ | (289 | ) | $ | (5,959 | ) | $ | (2,466 | ) | ||||||||||||||||||||||||
$ in thousands, except $ per MWh and average Bitcoin price | Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | Variance | 2021 | 2020 | Variance | |||||||||||||||||||
Cryptocurrency mining | $ | 31,156 | $ | 3,043 | 923.9 | % | $ | 54,217 | $ | 8,673 | 525.1 | % | ||||||||||||
Power and capacity | 3,077 | 3,080 | -0.1 | % | 7,255 | 5,264 | 37.8 | % | ||||||||||||||||
Total revenue | $ | 34,233 | $ | 6,123 | 459.1 | % | $ | 61,472 | $ | 13,937 | 341.1 | % | ||||||||||||
MWh | ||||||||||||||||||||||||
Cryptocurrency mining | 87,111 | 41,960 | 107.6 | % | 199,200 | 90,746 | 119.5 | % | ||||||||||||||||
Power and capacity | 44,915 | 89,028 | -49.5 | % | 126,990 | 175,602 | -27.7 | % | ||||||||||||||||
Revenue per MWh | ||||||||||||||||||||||||
Cryptocurrency mining | $ | 358 | $ | 73 | 393.2 | % | $ | 272 | $ | 96 | 184.8 | % | ||||||||||||
Power and capacity | $ | 69 | $ | 35 | 98.0 | % | $ | 57 | $ | 30 | 90.6 | % | ||||||||||||
Cost of revenue (exclusive of depreciation and amortization) | ||||||||||||||||||||||||
Cryptocurrency mining | $ | 5,974 | $ | 1,027 | 481.7 | % | $ | 11,504 | $ | 2,966 | 287.9 | % | ||||||||||||
Power and capacity | $ | 2,831 | $ | 3,045 | -7.0 | % | $ | 6,688 | $ | 5,715 | 17.0 | % | ||||||||||||
Cost of revenue per MWh (exclusive of depreciation and amortization) | ||||||||||||||||||||||||
Cryptocurrency mining | $ | 69 | $ | 24 | 180.2 | % | $ | 58 | $ | 33 | 76.7 | % | ||||||||||||
Power and capacity | $ | 63 | $ | 34 | 84.3 | % | $ | 53 | $ | 33 | 61.8 | % | ||||||||||||
Cryptocurrency Mining Metrics | ||||||||||||||||||||||||
Bitcoins mined | 729 | 246 | 189.9 | % | 1,257 | 919 | 34.4 | % | ||||||||||||||||
Average Bitcoin price | $ | 41,937 | $ | 10,629 | 294.6 | % | $ | 44,614 | $ | 9,287 | 380.4 | % | ||||||||||||
Average hash rate (EH/s) | 188.3 | % | 86.4 | % | ||||||||||||||||||||
Average difficulty | -6.6 | % | 24.5 | % |
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Adjusted operating income (loss) | ||||||||||||||||
Loss from operations | $ | (11,865 | ) | $ | (506 | ) | $ | (4,696 | ) | $ | (2,102 | ) | ||||
Add: Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||
Add: Expansion costs | 128 | — | 128 | — | ||||||||||||
Adjusted income (loss) from operations | $ | 18,110 | $ | (506 | ) | $ | 26,527 | $ | (2,102 | ) | ||||||
Adjusted operating margin | 50.7 | % | -8.3 | % | 42.1 | % | -15.1 | % | ||||||||
Adjusted net income (loss) | ||||||||||||||||
Net loss | $ | (7,896 | ) | $ | (289 | ) | $ | (3,099 | ) | $ | (2,466 | ) | ||||
Add: Merger and other costs, after tax | 19,969 | — | 20,874 | — | ||||||||||||
Add: Expansion costs, after tax | 93 | — | 93 | — | ||||||||||||
Adjusted net income (loss) | $ | 12,166 | $ | (289 | ) | $ | 17,868 | $ | (2,466 | ) | ||||||
EBITDA and Adjusted EBITDA | ||||||||||||||||
Net loss | $ | (7,896 | ) | $ | (289 | ) | $ | (3,099 | ) | $ | (2,466 | ) | ||||
Provision for income taxes | (4,989 | ) | — | (2,860 | ) | — | ||||||||||
Interest expense, net | 1,009 | — | 1,399 | 540 | ||||||||||||
Depreciation and amortization | 2,667 | 1,064 | 5,531 | 3,227 | ||||||||||||
EBITDA | (9,209 | ) | 775 | 971 | 1,301 | |||||||||||
Stock-based compensation | 411 | — | 1,474 | — | ||||||||||||
Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||
Expansion costs | 128 | — | 128 | — | ||||||||||||
Adjusted EBITDA | $ | 21,177 | $ | 775 | $ | 33,668 | $ | 1,301 | ||||||||
$ in thousands | Total | Less than 1 Year | 1 - 3 Years | |||||||||
Notes payable (1) | $ | 42,932 | $ | 25,229 | $ | 17,703 | ||||||
Leases (2) | $ | 943 | $ | 670 | $ | 273 | ||||||
Natural gas commitments (3) | $ | 9,187 | $ | 9,187 | $ | — | ||||||
Purchase commitments (4) | $ | 103,778 | $ | 103,778 | $ | — |
(1) | The Notes payable amounts presented in the above table include financed principal obligations plus estimated contractual future interest and risk premium payments. |
(2) | Lease obligations include fixed monthly rental payments and exclude estimated revenue sharing payments. |
(3) | Represents off balance sheet arrangements to purchase natural gas through March 1, 2022. |
(4) | Represents miner purchase commitments as of September 30, 2021 reduced by deposits made as of September 30, 2021. |
Nine Months Ended September 30, | ||||||||
$ in thousands | 2021 | 2020 | ||||||
Net cash provided by operating activities | $ | 26,666 | $ | 788 | ||||
Net cash used in investing activities | (38,644 | ) | (9,302 | ) | ||||
Net cash provided by financing activities | 58,075 | — | ||||||
Net change in cash and cash equivalents | 46,097 | (8,514 | ) | |||||
Cash and cash equivalents at beginning of year | 5,052 | 11,750 | ||||||
Cash and cash equivalents at end of period | $ | 51,149 | $ | 3,236 | ||||
February 2014: | GGH acquired Greenidge Generation as an idled coal-fired facility. | |
October 2016: | Greenidge Generation received all required permits to restart the power plant as a natural gas facility after 2.5 years. | |
October 2016: | Commenced construction on an approximately 4.6 mile natural gas pipeline and coal-to-gas | |
March 2017: | Commenced commercial operations as a wholesale power generator. | |
April 2018: | Began test mining bitcoin. | |
May 2019: | Completed construction on an approximately 1 MW bitcoin mining pilot program. | |
July 2019: | Ordered 5,000 next-generation ASIC miners. | |
January 2020: | Commenced commercial bitcoin mining operations. | |
July 2020: | Launched full-service data center for blockchain services and added approximately 5 MW of customer-owned hosted mining. | |
November 2020: | Ordered and financed 6,000 additional next-generation ASIC miners. | |
March/April 2021: | Purchased and deployed approximately 745 miners and placed orders for an additional 4,200 miners to be deployed over the course of 2021 and 2022. | |
May 2021: | Ordered an additional 2,100 miners to be deployed over the course of 2021 and 2022 and committed to operate an entirely carbon neutral mining operation through the purchase of voluntary carbon offsets. |
July 2021: | Purchased and deployed an additional 950 miners. | |
September 2021: | Acquisition of Support.com and public listing of our class A common stock. | |
October 2021: | Subsidiary of Greenidge entered into a Purchase and Sale Agreement for a property in Spartanburg, South Carolina, at which Greenidge intends to develop its next bitcoin mining operation, using existing electrical infrastructure at the location. Additionally, Greenidge entered into exclusive agreements regarding the potential construction of new data centers in Texas and an agreement giving it an exclusive right of first refusal at multiple power generation sites in the ERCOT market. |
Department/Function | Employees | |||
Management | 8 | |||
Accounting/Finance | 2 | |||
Administration | 5 | |||
Operations | 30 | |||
TOTALS | 45 | |||
Name | Age | Position | ||||
Jeffrey Kirt | 48 | Chief Executive Officer and Director | ||||
Dale Irwin | 50 | President | ||||
Timothy Rainey | 35 | Chief Financial Officer | ||||
Timothy Fazio | 48 | Chairman | ||||
Name and Principal Position | Year | Salary ($) | Bonus ($) (1) | All Other Compensation ($) (2) | Total ($) | |||||||||||||||
Dale Irwin, President | 2020 | 180,000 | 58,451 | 2,807 | 241,258 | |||||||||||||||
Timothy Rainey, Chief Financial Officer | 2020 | 135,000 | 43,418 | 13,199 | 191,617 |
(1) | Reflects performance bonus payouts to the named executive officers. |
(2) | Includes the cost of health insurance premiums paid by us for Mr. Irwin, and health insurance and phone stipends and 401(k) matching contributions for Mr. Rainey. |
Name | Grant Date | Number of Securities Underlying Unexercised Options Exercisable (#) | Number of Securities Underlying Unexercised Options Unexercisable (#) | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) (1) | Option Expiration Date | Number of shares or units of stock that have not vested (#) | Market value of shares or units of stock that have not vested ($) (2) | ||||||||||||||||||||||||
Jeffrey Kirt (3) | 3/8/2021 | — | — | — | — | — | 344,800 | 2,155,000 | ||||||||||||||||||||||||
Dale Irwin | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Timothy Rainey (4) | 2/21/2021 | 257,484 | 128,740 | — | 5.80 | 2/21/2031 | — | — |
(1) | The share numbers and option exercise price shown in this table reflect the 4-to-1 |
(2) | For purposes of this table, the market value of unvested restricted stock units is determined by multiplying the number of unvested restricted stock units by the assumed price of $6.25 per share. |
(3) | Mr. Kirt’s restricted stock units vest ratably over three years on an annual basis, subject to Mr. Kirt’s continued service on each applicable vesting date. |
(4) | The stock options granted to Mr. Rainey vest as follows: (i) 257,484 options vested on the grant date and (ii) the remaining options vest on the first anniversary of the grant date, subject to Mr. Rainey’s continued service on the applicable vesting date. |
Name | Fees Earned or Paid in Cash ($) (1) | Stock Awards ($) | Option Awards ($) | Non-equity incentive plan compensation ($) | Nonqualified deferred compensation earnings ($) | All Other Compensation ($) | Total ($) | |||||||||||||||||||||
Timothy Fazio | — | — | — | — | — | — | — | |||||||||||||||||||||
Andrew M. Bursky | — | — | — | — | — | — | — | |||||||||||||||||||||
Timothy Lowe | — | — | — | — | — | — | — | |||||||||||||||||||||
Daniel Rothaupt | 53,108 | — | — | — | — | — | 53,108 | |||||||||||||||||||||
David Filippelli | — | — | — | — | — | — | — | |||||||||||||||||||||
Jerome Lay | — | — | — | — | — | — | — |
(1) | Reflects fees paid for director duties provided by Mr. Rothaupt as part of an arrangement between Atlas and/or its affiliates and us. |
(i) | the gain is effectively connected with the conduct by the Non-U.S. Holder of a trade or business in the United States, subject to an applicable income tax treaty providing otherwise; or |
(ii) | the Non-U.S. Holder is an individual who is present in the United States for 183 or more days in the taxable year of the disposition and certain other requirements are met. |
| of Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public | Discount | Proceeds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) | Pursuant to the terms of the Underwriting Agreement, the underwriters will receive a discount equal to $ per Note. |
(2) | After deducting the underwriting discount but before deducting the structuring fee and expenses of the offering, estimated to be $ . |
(3) | If the Option is exercised in full, the total price to the public, underwriting discount and net proceeds to us (after deducting the underwriting discount but before deducting estimated offering expenses) will be $ , $ and $ , respectively. |
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September 30, 2021 | December 31, 2020 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 51,149 | $ | 5,052 | ||||
Short term investments | 496 | 0 | ||||||
Digital assets | 421 | 254 | ||||||
Accounts receivable | 5,501 | 390 | ||||||
Prepaid expenses | 5,042 | 155 | ||||||
Emissions and carbon offset credits | 1,816 | 1,923 | ||||||
Total current assets | 64,425 | 7,774 | ||||||
LONG-TERM ASSETS: | ||||||||
Property and equipment, net | 121,532 | 56,645 | ||||||
Right-of-use | 1,369 | 0 | ||||||
Intangible assets | 22,493 | 0 | ||||||
Goodwill | 46,349 | 0 | ||||||
Other long-term assets | 2,143 | 148 | ||||||
Total assets | $ | 258,311 | $ | 64,567 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 3,368 | $ | 1,745 | ||||
Accrued emissions expense | 1,674 | 2,082 | ||||||
Accrued expenses | 9,566 | 946 | ||||||
Accrued interest expense—related party | 0 | 20 | ||||||
Notes payable, current portion | 17,994 | 3,273 | ||||||
Notes payable—related party, current portion | 0 | 3,573 | ||||||
Lease obligations, current portion | 852 | 0 | ||||||
Total current liabilities | 33,454 | 11,639 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Deferred tax liability | 3,959 | 0 | ||||||
Notes payable, net of current portion | 7,369 | 1,364 | ||||||
Lease obligations, net of current portion | 111 | 0 | ||||||
Asset retirement obligations | 2,380 | 2,277 | ||||||
Environmental trust liability | 4,994 | 4,927 | ||||||
Other long-term liabilities | 242 | 0 | ||||||
Total liabilities | 52,509 | 20,207 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 13) | ||||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Preferred stock, par value $0.0001, 20,000,000 and 0 shares authorized, 0 and 0 | — | 0— | ||||||
Common stock, par value $ 0.0001, 3,000,000,000 and 0 shares authorized, 38,667,705 and 0 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 4 | 0 | ||||||
Additional paid-in capital | 233,813 | 0 | ||||||
Members’ capital, 0 and 49,978 units outstanding as of September 30, 2021 and December 31, 2020, respectively | 0 | 69,276 | ||||||
Accumulated deficit | (28,015 | ) | (24,916 | ) | ||||
Total stockholders’ equity | 205,802 | 44,360 | ||||||
Total liabilities and stockholders’ equity | $ | 258,311 | $ | 64,567 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
REVENUE: | ||||||||||||||||
Cryptocurrency mining | $ | 31,156 | $ | 3,043 | $ | 54,217 | $ | 8,673 | ||||||||
Power and capacity | 3,077 | 3,080 | 7,255 | 5,264 | ||||||||||||
Services and other | 1,521 | 0 | 1,521 | 0 | ||||||||||||
Total revenue | 35,754 | 6,123 | 62,993 | 13,937 | ||||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||||
Cost of revenue—cryptocurrency mining (exclusive of depreciation and amortization shown below) | 5,974 | 1,027 | 11,504 | 2,966 | ||||||||||||
Cost of revenue—power and capacity (exclusive of depreciation and amortization shown below) | 2,831 | 3,045 | 6,688 | 5,715 | ||||||||||||
Cost of revenue—services and other (exclusive of depreciation and amortization shown below) | 854 | 0 | 854 | 0 | ||||||||||||
Selling, general and administrative | 5,446 | 1,493 | 12,017 | 4,131 | ||||||||||||
Merger and other costs (Note 4) | 29,847 | 0 | 31,095 | 0 | ||||||||||||
Depreciation and amortization | 2,667 | 1,064 | 5,531 | 3,227 | ||||||||||||
Total operating costs and expenses | 47,619 | 6,629 | 67,689 | 16,039 | ||||||||||||
Loss from operations | (11,865 | ) | (506 | ) | (4,696 | ) | (2,102 | ) | ||||||||
OTHER INCOME (EXPENSE), NET: | ||||||||||||||||
Interest expense, net | (1,009 | ) | 0 | (1,377 | ) | 0 | ||||||||||
Interest expense—related party | 0 | 0 | (22 | ) | (540 | ) | ||||||||||
Gain on sale of digital assets | 18 | 36 | 159 | 11 | ||||||||||||
Other (expense) income, net | (29 | ) | 181 | (23 | ) | 165 | ||||||||||
Total other (expense) income, net | (1,020 | ) | 217 | (1,263 | ) | (364 | ) | |||||||||
LOSS BEFORE INCOME TAXES | (12,885 | ) | (289 | ) | (5,959 | ) | (2,466 | ) | ||||||||
Benefit for income taxes | (4,989 | ) | 0 | (2,860 | ) | 0 | ||||||||||
NET LOSS AND TOTAL COMPREHENSIVE LOSS | $ | (7,896 | ) | $ | (289 | ) | $ | (3,099 | ) | $ | (2,466 | ) | ||||
Loss per share: | ||||||||||||||||
Basic | $ | (0.28 | ) | $ | (0.13 | ) | ||||||||||
Diluted | $ | (0.28 | ) | $ | (0.13 | ) |
Additional Paid—In Capital | Common Units | Preferred Units | Senior Priority Units | Total Members’ Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Number of Units | Members’ Capital | Number of Units | Members’ Capital | Number of Units | Members’ Capital | Accumulated Deficit | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 750 | $ | 0 | 39,228 | $ | 39,074 | 10,000 | $ | 30,202 | $ | 69,276 | $ | (24,916 | ) | $ | 44,360 | ||||||||||||||||||||||||||||||||
Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for Greenidge class B common stock (Note 9) | — | — | 26,800,300 | 3 | 72,888 | — | — | (39,228 | ) | (39,074 | ) | (10,000 | ) | (30,202 | ) | (69,276 | ) | — | 3,615 | |||||||||||||||||||||||||||||||||||||
Contribution of GGH Common Units for Greenidge class B common stock (Note 9) | — | — | 1,199,700 | — | — | (750 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of preferred stock, net of stock issuance costs of $3,387 (Note 9) | 1,620,000 | 1 | — | — | 37,112 | — | — | — | — | — | — | — | — | 37,113 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 1,063 | — | — | — | — | — | — | — | — | 1,063 | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from stock options exercised | — | — | 160,000 | — | 1,000 | — | — | — | — | — | — | — | — | 1,000 | ||||||||||||||||||||||||||||||||||||||||||
Stock issued to purchase miners | — | — | 160,000 | — | 991 | — | — | — | — | — | — | — | — | 991 | ||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | — | — | 4,797 | 4,797 | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 1,620,000 | $ | 1 | 28,320,000 | $ | 3 | $ | 113,054 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | (20,119 | ) | $ | 92,939 | ||||||||||||||||||||||||||||||||
Shares issued to Support.com shareholders upon Merger, net of issuance costs of $2,296 (Note 9) | — | — | 2,960,731 | — | 91,588 | — | — | — | — | — | — | — | — | 91,588 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of shares for investor fee associated with successful completion of Merger (Note 9) | — | — | 562,174 | — | 17,826 | — | — | — | — | — | — | — | — | 17,826 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants to advisor in connection with completion of Merger (Note 9) | — | — | — | — | 8,779 | — | — | — | — | — | — | — | — | 8,779 | ||||||||||||||||||||||||||||||||||||||||||
Conversion of preferred stock (Note 9) | (1,620,000 | ) | (1 | ) | 6,480,000 | 1 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Shares issued upon exercise of warrants | — | — | 344,800 | — | 2,155 | — | — | — | — | — | — | — | — | 2,155 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 411 | — | — | — | — | — | — | — | — | 411 | ||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | (7,896 | ) | (7,896 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 0 | $ | 0 | 38,667,705 | $ | 4 | $ | 233,813 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | (28,015 | ) | $ | 205,802 | ||||||||||||||||||||||||||||||||
Additional Paid—In Capital | Common Units | Preferred Units | Senior Priority Units | Total Members’ Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Number of Units | Members’ Capital | Number of Units | Members’ Capital | Number of Units | Members’ Capital | Accumulated Deficit | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 750 | $ | 0 | 54,228 | $ | 54,074 | 0 | $ | 0 | $ | 54,074 | $ | (20,350 | ) | $ | 33,724 | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | (2,177 | ) | (2,177 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 750 | $ | 0 | 54,228 | $ | 54,074 | 0 | $ | 0 | $ | 54,074 | $ | (22,527 | ) | $ | 31,547 | ||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | (289 | ) | (289 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 750 | $ | 0 | 54,228 | $ | 54,074 | 0 | $ | 0 | $ | 54,074 | $ | (22,816 | ) | $ | 31,258 | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (3,099 | ) | $ | (2,466 | ) | ||
Adjustments to reconcile net loss to net cash flow from operating activities: | ||||||||
Depreciation and amortization | 5,531 | 3,227 | ||||||
Deferred income taxes | (2,945 | ) | 0 | |||||
Amortization of debt issuance costs | 54 | 0 | ||||||
Accretion of asset retirement obligations | 103 | 108 | ||||||
Stock-based compensation expense | 1,474 | 0 | ||||||
Investor fee paid in common stock | 17,826 | 0 | ||||||
Advisor fee paid in warrants | 8,779 | 0 | ||||||
Loss on environmental trust liability | 67 | 0 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 272 | (165 | ) | |||||
Emissions and carbon offset credits | 107 | (336 | ) | |||||
Prepaids and other assets | (5,955 | ) | (965 | ) | ||||
Accounts payable | (455 | ) | (1,062 | ) | ||||
Accrued emissions | (408 | ) | 941 | |||||
Accrued expenses | 5,315 | 1,506 | ||||||
Net cash flow provided by operating activities | 26,666 | 788 | ||||||
CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||
Purchases of and deposits for property and equipment | (65,757 | ) | (9,738 | ) | ||||
Cash received in Merger | 27,113 | 0 | ||||||
Project deposit | 0 | 436 | ||||||
Net cash flow used in investing activities | (38,644 | ) | (9,302 | ) | ||||
CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from issuance of preferred stock, net of issuance costs | 37,113 | 0 | ||||||
Proceeds from stock options exercised | 1,000 | 0�� | ||||||
Proceeds from warrants exercised | 2,155 | 0 | ||||||
Issuance costs associated with shares issued for Support acquisition | (2,296 | ) | 0 | |||||
Proceeds from notes payable, net of issuance costs | 25,112 | 0 | ||||||
Principal payments on notes payable | (4,440 | ) | 0 | |||||
Repayments of finance lease obligations | (569 | ) | 0 | |||||
Net cash flow provided by financing activities | 58,075 | 0 | ||||||
CHANGE IN CASH AND CASH EQUIVALENTS | 46,097 | (8,514 | ) | |||||
CASH AND CASH EQUIVALENTS—beginning of year | 5,052 | 11,750 | ||||||
CASH AND CASH EQUIVALENTS—end of period | $ | 51,149 | $ | 3,236 | ||||
1. | ORGANIZATION AND DESCRIPTION OF BUSINESS |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
3. | MERGER WITH SUPPORT |
3. | MERGER WITH SUPPORT (Continued) |
$ in thousands, except per share amount | ||||
Support common stock exchanged | 25,745,487 | |||
Exchange ratio | 0.115 | |||
Greenidge Class A common stock exchanged | 2,960,731 | |||
Greenidge common stock value per share | $ | 31.71 | ||
Consideration paid | $ | 93,885 | ||
$ in thousands | ||||
Cash and cash equivalents | $ | 27,113 | ||
Short-term investments | 496 | |||
Accounts receivable | 5,383 | |||
Prepaid expenses and other current assets | 713 | |||
Property and equipment | 1,349 | |||
Other long-term assets | 383 | |||
Accounts payable | (117 | ) | ||
Accrued expenses and other current liabilities | (3,328 | ) | ||
Other long-term liabilities | (242 | ) | ||
Intangible assets | 22,690 | |||
Deferred tax liability | (6,904 | ) | ||
Goodwill | 46,349 | |||
Total consideration | $ | 93,885 | ||
$ in thousands | ||||||||
Identifiable Intangible Asset | Useful Life | Fair Value | ||||||
Customer relationships | 5 years | $ | 21,600 | |||||
Tradename | 10 | 1,090 | ||||||
Total identifiable intangible assets | $ | 22,690 | ||||||
3. | MERGER WITH SUPPORT (Continued) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues | $ | 42,448 | $ | 16,461 | $ | 87,830 | $ | 47,258 | ||||||||
Net (loss) income | $ | (11,783 | ) | $ | (1,646 | ) | $ | (12,602 | ) | $ | (6,274 | ) |
4. | MERGER AND OTHER COSTS |
Three Months Ended | Nine Months Ended | |||||||
$ in thousands | September 30, 2021 | September 30, 2021 | ||||||
Merger related costs: | ||||||||
Investor fee paid in common stock (Note 9) | $ | 17,826 | $ | 17,826 | ||||
Advisor fee paid in warrants (Note 9) | 8,779 | 8,779 | ||||||
Professional and other fees | 1,140 | 1,434 | ||||||
Total Merger related costs | 27,745 | 28,039 | ||||||
Public company filing related costs | 2,102 | 3,056 | ||||||
Total Merger and other costs | $ | 29,847 | $ | 31,095 | ||||
5. | SEGMENT INFORMATION |
5. | SEGMENT INFORMATION (Continued) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues: | ||||||||||||||||
Cryptocurrency Mining and Power Generation | $ | 34,233 | $ | 6,123 | $ | 61,472 | $ | 13,937 | ||||||||
Support Services | 1,521 | 0— | 1,521 | 0— | ||||||||||||
Total Revenues | $ | 35,754 | $ | 6,123 | $ | 62,993 | $ | 13,937 | ||||||||
Segment Adjusted EBITDA | ||||||||||||||||
Cryptocurrency Mining and Power Generation | $ | 20,973 | $ | 775 | $ | 33,464 | $ | 1,301 | ||||||||
Support Services | 204 | 0— | 204 | 0— | ||||||||||||
Total Segments Adjusted EBITDA | $ | 21,177 | $ | 775 | $ | 33,668 | $ | 1,301 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Total Segments Adjusted EBITDA | $ | 21,177 | $ | 775 | $ | 33,668 | $ | 1,301 | ||||||||
Depreciation and amortization | (2,667 | ) | (1,064 | ) | (5,531 | ) | (3,227 | ) | ||||||||
Stock-based compensation | (411 | ) | 0— | (1,474 | ) | 0— | ||||||||||
Merger and other costs | (29,847 | ) | 0— | (31,095 | ) | 0— | ||||||||||
Expansion costs | (128 | ) | 0— | (128 | ) | 0— | ||||||||||
Interest expense, net | (1,009 | ) | 0— | (1,399 | ) | (540 | ) | |||||||||
Consolidated loss before income taxes | $ | (12,885 | ) | $ | (289 | ) | $ | (5,959 | ) | $ | (2,466 | ) | ||||
$ in thousands | September 30, 2021 | |||
Cryptocurrency Mining and Power Generation | 129,802 | |||
Support Services | 76,864 | |||
Total segment assets | 206,666 | |||
Cash and cash equivalents | 51,149 | |||
Short term investments | 496 | |||
Total assets | $ | 258,311 | ||
6. | PROPERTY AND EQUIPMENT |
$ in thousands | Estimated Useful Lives | September 30, 2021 | December 31, 2020 | |||||||||
Plant infrastructure | 15 - 39 years | $ | 34,273 | $ | 33,944 | |||||||
Miners | 5 years | 36,779 | 10,236 | |||||||||
Miner facility infrastructure | 15 years | 14,787 | 8,791 | |||||||||
Land | N/A | 300 | 300 | |||||||||
Equipment | 5 years | 948 | 211 | |||||||||
Software | 3 years | 1,130 | 66 | |||||||||
Coal ash impoundment | 4 years | 2,135 | 2,135 | |||||||||
Construction in process | N/A | 6,869 | 3,989 | |||||||||
Miner deposits | N/A | 38,467 | 5,959 | |||||||||
135,688 | 65,631 | |||||||||||
Less: Accumulated depreciation | (14,156 | ) | (8,986 | ) | ||||||||
$ | 121,532 | $ | 56,645 | |||||||||
7. | NOTES PAYABLE |
$ in thousands | ||||||||||||||||||||||||
Interest Rate | Initial Financing | Balance as of: | ||||||||||||||||||||||
Note | Loan Date | Maturity Date | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||
A | December 2020 | June 2022 | 17.0 | % | $ | 4,482 | $ | 1,992 | $ | 4,233 | ||||||||||||||
B | December 2020 | June 2022 | 17.0 | % | 428 | 166 | 404 | |||||||||||||||||
C | March 2021 | November 2022 | 17.0 | % | 2,229 | 1,733 | 0— | |||||||||||||||||
D | April 2021 | December 2022 | 17.0 | % | 4,012 | 3,343 | 0— | |||||||||||||||||
E—H | May 2021 | October 2023 | 15.0 | % | 12,080 | 11,751 | 0— | |||||||||||||||||
I | July 2021 | January 2023 | 17.0 | % | 4,457 | 3,962 | 0— | |||||||||||||||||
J | July 2021 | March 2023 | 17.0 | % | 2,701 | 2,415 | 0— | |||||||||||||||||
25,363 | 4,637 | |||||||||||||||||||||||
Less: Current portion | (17,994 | ) | (3,273 | ) | ||||||||||||||||||||
$ | 7,369 | $ | 1,364 | |||||||||||||||||||||
8. | RELATED PARTY TRANSACTIONS |
8. | RELATED PARTY TRANSACTIONS (Continued) |
$ in thousands | September 30, 2021 | December 31, 2020 | ||||||
Note payable to a related party due June 2021 | $ | 0 | $ | 2,382 | ||||
Note payable to a related party due May 2021 | 0 | 1,191 | ||||||
$ | 0 | $ | 3,573 | |||||
Less: Current Portion | $ | 0 | $ | (3,573 | ) | |||
$ | 0 | $ | 0 | |||||
8. | RELATED PARTY TRANSACTIONS (Continued) |
9. | STOCKHOLDERS’ EQUITY |
9. | STOCKHOLDERS’ EQUITY (Continued) |
9. | STOCKHOLDERS’ EQUITY (Continued) |
10. | EQUITY BASED COMPENSATION |
RSUs | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2020 | 0 | $ | 0 | |||||
Granted | 616,920 | 6.25 | ||||||
Unvested at September 30, 2021 | 616,920 | 6.25 |
10. | EQUITY BASED COMPENSATION (Continued) |
Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2020 | 0 | $ | 0 | — | ||||||||||||
Granted | 753,968 | 6.07 | ||||||||||||||
Exercised | (160,000 | ) | 6.25 | |||||||||||||
Forfeited | (10,888 | ) | 6.25 | |||||||||||||
Outstanding at September 30, 2020 | 583,080 | $ | 6.01 | 9.43 | $ | 11,387 | ||||||||||
Exercisable as of September 30, 2021 | 257,484 | $ | 5.80 | 9.64 | $ | 5,083 |
Weighted Average fair value of grants | $ | 1.54 | ||
Expected volatility | 35 | % | ||
Expected term (years) | 4.5 | |||
Risk-free interest rate | 0.4 | % | ||
Expected dividend yield | 0.0 | % |
11. | INCOME TAXES |
12. | EARNINGS PER SHARE |
$ in thousands, except per share amounts | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||
Numerator | ||||||||
Net loss | $ | (7,896 | ) | $ | (3,099 | ) | ||
Less: Net income attributable to the member units units before the reorganization | (648 | ) | (648 | ) | ||||
Net loss attributable to Greenidge | $ | (8,544 | ) | $ | (3,747 | ) | ||
Denominator | ||||||||
Basic weighted average shares outstanding | 30,116 | 28,949 | ||||||
Dilutive effect of equity awards | 0 | 0 | ||||||
Dilutive effect of convertible preferred stock | 0 | 0 | ||||||
Diluted weighted average shares outstanding | 30,116 | 28,949 | ||||||
Loss per share | ||||||||
Basic | $ | (0.28 | ) | $ | (0.13 | ) | ||
Diluted | $ | (0.28 | ) | $ | (0.13 | ) |
13. | COMMITMENTS AND CONTINGENCIES |
13. | COMMITMENTS AND CONTINGENCIES (Continued) |
14. | CONCENTRATIONS |
15. | SUPPLEMENTAL CASH FLOW INFORMATION |
$ in thousands | ||||
Shares issued to Support.com shareholders upon Merger (Notes 3 and 9) | $ | 93,885 | ||
Stock issued to purchase miners | $ | 991 | ||
Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for Greenidge class B common stock (Note 9) | $ | 72,891 | ||
Issuance of shares for investor fee associated with successful completion of Merger (Notes 4 and 9) | $ | 17,826 | ||
Issuance of warrants to advisor in connection with completion of Merger (Note 4 and 9) | $ | 8,779 |
16. | OTHER RISKS AND CONSIDERATIONS |
17. | SUBSEQUENT EVENTS |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
3. | MERGER WITH SUPPORT |
3. | MERGER WITH SUPPORT (Continued) |
$ in thousands, except per share amount | ||||
Support common stock exchanged | 25,745,487 | |||
Exchange ratio | 0.115 | |||
Greenidge Class A common stock exchanged | 2,960,731 | |||
Greenidge common stock value per share | $ | 31.71 | ||
Consideration paid | $ | 93,885 | ||
$ in thousands | ||||
Cash and cash equivalents | $ | 27,113 | ||
Short-term investments | 496 | |||
Accounts receivable | 5,383 | |||
Prepaid expenses and other current assets | 713 | |||
Property and equipment | 1,349 | |||
Other long-term assets | 383 | |||
Accounts payable | (117 | ) | ||
Accrued expenses and other current liabilities | (3,328 | ) | ||
Other long-term liabilities | (242 | ) | ||
Intangible assets | 22,690 | |||
Deferred tax liability | (6,904 | ) | ||
Goodwill | 46,349 | |||
Total consideration | $ | 93,885 | ||
$ in thousands | ||||||||
Identifiable Intangible Asset | Useful Life | Fair Value | ||||||
Customer relationships | 5 years | $ | 21,600 | |||||
Tradename | 10 | 1,090 | ||||||
Total identifiable intangible assets | $ | 22,690 | ||||||
3. | MERGER WITH SUPPORT (Continued) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues | $ | 42,448 | $ | 16,461 | $ | 87,830 | $ | 47,258 | ||||||||
Net (loss) income | $ | (11,783 | ) | $ | (1,646 | ) | $ | (12,602 | ) | $ | (6,274 | ) |
4. | MERGER AND OTHER COSTS |
Three Months Ended | Nine Months Ended | |||||||
$ in thousands | September 30, 2021 | September 30, 2021 | ||||||
Merger related costs: | ||||||||
Investor fee paid in common stock (Note 9) | $ | 17,826 | $ | 17,826 | ||||
Advisor fee paid in warrants (Note 9) | 8,779 | 8,779 | ||||||
Professional and other fees | 1,140 | 1,434 | ||||||
Total Merger related costs | 27,745 | 28,039 | ||||||
Public company filing related costs | 2,102 | 3,056 | ||||||
Total Merger and other costs | $ | 29,847 | $ | 31,095 | ||||
5. | SEGMENT INFORMATION |
5. | SEGMENT INFORMATION (Continued) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues: | ||||||||||||||||
Cryptocurrency Mining and Power Generation | $ | 34,233 | $ | 6,123 | $ | 61,472 | $ | 13,937 | ||||||||
Support Services | 1,521 | 0— | 1,521 | 0— | ||||||||||||
Total Revenues | $ | 35,754 | $ | 6,123 | $ | 62,993 | $ | 13,937 | ||||||||
Segment Adjusted EBITDA | ||||||||||||||||
Cryptocurrency Mining and Power Generation | $ | 20,973 | $ | 775 | $ | 33,464 | $ | 1,301 | ||||||||
Support Services | 204 | 0— | 204 | 0— | ||||||||||||
Total Segments Adjusted EBITDA | $ | 21,177 | $ | 775 | $ | 33,668 | $ | 1,301 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Total Segments Adjusted EBITDA | $ | 21,177 | $ | 775 | $ | 33,668 | $ | 1,301 | ||||||||
Depreciation and amortization | (2,667 | ) | (1,064 | ) | (5,531 | ) | (3,227 | ) | ||||||||
Stock-based compensation | (411 | ) | 0— | (1,474 | ) | 0— | ||||||||||
Merger and other costs | (29,847 | ) | 0— | (31,095 | ) | 0— | ||||||||||
Expansion costs | (128 | ) | 0— | (128 | ) | 0— | ||||||||||
Interest expense, net | (1,009 | ) | 0— | (1,399 | ) | (540 | ) | |||||||||
Consolidated loss before income taxes | $ | (12,885 | ) | $ | (289 | ) | $ | (5,959 | ) | $ | (2,466 | ) | ||||
$ in thousands | September 30, 2021 | |||
Cryptocurrency Mining and Power Generation | 129,802 | |||
Support Services | 76,864 | |||
Total segment assets | 206,666 | |||
Cash and cash equivalents | 51,149 | |||
Short term investments | 496 | |||
Total assets | $ | 258,311 | ||
6. | PROPERTY AND EQUIPMENT |
$ in thousands | Estimated Useful Lives | September 30, 2021 | December 31, 2020 | |||||||||
Plant infrastructure | 15 - 39 years | $ | 34,273 | $ | 33,944 | |||||||
Miners | 5 years | 36,779 | 10,236 | |||||||||
Miner facility infrastructure | 15 years | 14,787 | 8,791 | |||||||||
Land | N/A | 300 | 300 | |||||||||
Equipment | 5 years | 948 | 211 | |||||||||
Software | 3 years | 1,130 | 66 | |||||||||
Coal ash impoundment | 4 years | 2,135 | 2,135 | |||||||||
Construction in process | N/A | 6,869 | 3,989 | |||||||||
Miner deposits | N/A | 38,467 | 5,959 | |||||||||
135,688 | 65,631 | |||||||||||
Less: Accumulated depreciation | (14,156 | ) | (8,986 | ) | ||||||||
$ | 121,532 | $ | 56,645 | |||||||||
7. | NOTES PAYABLE |
$ in thousands | ||||||||||||||||||||||||
Interest Rate | Initial Financing | Balance as of: | ||||||||||||||||||||||
Note | Loan Date | Maturity Date | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||
A | December 2020 | June 2022 | 17.0 | % | $ | 4,482 | $ | 1,992 | $ | 4,233 | ||||||||||||||
B | December 2020 | June 2022 | 17.0 | % | 428 | 166 | 404 | |||||||||||||||||
C | March 2021 | November 2022 | 17.0 | % | 2,229 | 1,733 | 0— | |||||||||||||||||
D | April 2021 | December 2022 | 17.0 | % | 4,012 | 3,343 | 0— | |||||||||||||||||
E—H | May 2021 | October 2023 | 15.0 | % | 12,080 | 11,751 | 0— | |||||||||||||||||
I | July 2021 | January 2023 | 17.0 | % | 4,457 | 3,962 | 0— | |||||||||||||||||
J | July 2021 | March 2023 | 17.0 | % | 2,701 | 2,415 | 0— | |||||||||||||||||
25,363 | 4,637 | |||||||||||||||||||||||
Less: Current portion | (17,994 | ) | (3,273 | ) | ||||||||||||||||||||
$ | 7,369 | $ | 1,364 | |||||||||||||||||||||
8. | RELATED PARTY TRANSACTIONS |
8. | RELATED PARTY TRANSACTIONS (Continued) |
$ in thousands | September 30, 2021 | December 31, 2020 | ||||||
Note payable to a related party due June 2021 | $ | 0 | $ | 2,382 | ||||
Note payable to a related party due May 2021 | 0 | 1,191 | ||||||
$ | 0 | $ | 3,573 | |||||
Less: Current Portion | $ | 0 | $ | (3,573 | ) | |||
$ | 0 | $ | 0 | |||||
8. | RELATED PARTY TRANSACTIONS (Continued) |
9. | STOCKHOLDERS’ EQUITY |
9. | STOCKHOLDERS’ EQUITY (Continued) |
9. | STOCKHOLDERS’ EQUITY (Continued) |
10. | EQUITY BASED COMPENSATION |
RSUs | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2020 | 0 | $ | 0 | |||||
Granted | 616,920 | 6.25 | ||||||
Unvested at September 30, 2021 | 616,920 | 6.25 |
10. | EQUITY BASED COMPENSATION (Continued) |
Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2020 | 0 | $ | 0 | — | ||||||||||||
Granted | 753,968 | 6.07 | ||||||||||||||
Exercised | (160,000 | ) | 6.25 | |||||||||||||
Forfeited | (10,888 | ) | 6.25 | |||||||||||||
Outstanding at September 30, 2020 | 583,080 | $ | 6.01 | 9.43 | $ | 11,387 | ||||||||||
Exercisable as of September 30, 2021 | 257,484 | $ | 5.80 | 9.64 | $ | 5,083 |
Weighted Average fair value of grants | $ | 1.54 | ||
Expected volatility | 35 | % | ||
Expected term (years) | 4.5 | |||
Risk-free interest rate | 0.4 | % | ||
Expected dividend yield | 0.0 | % |
11. | INCOME TAXES |
12. | EARNINGS PER SHARE |
2020 | 2019 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 5,052 | $ | 11,750 | ||||
Digital assets | 254 | 269 | ||||||
Accounts receivable | 390 | 10 | ||||||
Fuel deposits | 808 | 164 | ||||||
Prepaid expenses | 155 | 96 | ||||||
Emissions credits | 1,923 | 559 | ||||||
Miner equipment deposits | 5,959 | 6,337 | ||||||
Total current assets | 14,541 | 19,185 | ||||||
LONG-TERM ASSETS: | ||||||||
Property and equipment, net of accumulated depreciation of $8,986 and $4,422 at December 31, 2020 and 2019, respectively | 50,686 | 37,064 | ||||||
Project deposit | 74 | 510 | ||||||
Other assets | 74 | 85 | ||||||
Total assets | $ | 65,375 | $ | 56,844 | ||||
LIABILITIES AND MEMBERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 1,745 | $ | 2,339 | ||||
Natural gas payable | 935 | 18 | ||||||
Accrued emissions expense, current portion | 2,082 | 105 | ||||||
Accrued expenses | 547 | 150 | ||||||
Accrued interest expense—related party, current portion | 20 | 396 | ||||||
Deferred revenue | 272 | 0 | ||||||
Note payable, current portion | 3,273 | 0 | ||||||
Notes payable—related party, current portion | 3,573 | 5,000 | ||||||
Total current liabilities | 12,447 | 8,008 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 8) | 0 | |||||||
LONG-TERM LIABILITIES: | ||||||||
Accrued emissions expense, net of current portion | 0 | 302 | ||||||
Accrued interest expense—related party, net of current portion | 0 | 278 | ||||||
Notes payable, net of current portion | 1,364 | 0 | ||||||
Notes payable—related party, net of current portion | 0 | 7,700 | ||||||
Asset retirement obligations | 2,277 | 2,135 | ||||||
Environmental trust liability | 4,927 | 4,697 | ||||||
Total liabilities | 21,015 | 23,120 | ||||||
MEMBERS’ EQUITY: | ||||||||
Members’ capital 49,978 units and 39,978 units at December 31, 2020 and December 31, 2019, respectively | 69,276 | 54,074 | ||||||
Accumulated deficit | (24,916 | ) | (20,350 | ) | ||||
Total members’ equity | 44,360 | 33,724 | ||||||
Total liabilities and members’ equity | $ | 65,375 | $ | 56,844 | ||||
$ in thousands, except per share amounts | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||
Numerator | ||||||||
Net loss | $ | (7,896 | ) | $ | (3,099 | ) | ||
Less: Net income attributable to the member units units before the reorganization | (648 | ) | (648 | ) | ||||
Net loss attributable to Greenidge | $ | (8,544 | ) | $ | (3,747 | ) | ||
Denominator | ||||||||
Basic weighted average shares outstanding | 30,116 | 28,949 | ||||||
Dilutive effect of equity awards | 0 | 0 | ||||||
Dilutive effect of convertible preferred stock | 0 | 0 | ||||||
Diluted weighted average shares outstanding | 30,116 | 28,949 | ||||||
Loss per share | ||||||||
Basic | $ | (0.28 | ) | $ | (0.13 | ) | ||
Diluted | $ | (0.28 | ) | $ | (0.13 | ) |
13. | COMMITMENTS AND CONTINGENCIES |
13. | COMMITMENTS AND CONTINGENCIES (Continued) |
2020 | 2019 | |||||||
REVENUE: | ||||||||
Cryptocurrency mining | $ | 13,016 | $ | 410 | ||||
Power and capacity | 7,098 | 4,029 | ||||||
Total revenue | 20,114 | 4,439 | ||||||
OPERATING COSTS AND EXPENSES | ||||||||
Cost of revenue-cryptocurrency mining (exclusive of depreciation and amortization shown below) | 4,465 | 94 | ||||||
Cost of revenue-power and capacity (exclusive of depreciation and amortization shown below) | 8,135 | 4,806 | ||||||
Selling, general, and administrative expenses | 5,581 | 5,833 | ||||||
Depreciation and amortization | 4,564 | 1,679 | ||||||
Loss from operations | (2,631 | ) | (7,973 | ) | ||||
OTHER INCOME (EXPENSE), NET: | ||||||||
Impairment loss on digital assets | — | (100 | ) | |||||
Interest expense | (91 | ) | — | |||||
Interest expense - related party | (573 | ) | (673 | ) | ||||
Gain on sale of digital assets | 123 | — | ||||||
Gain (loss) on environmental trust liability | (230 | ) | 241 | |||||
Other income and expense | 112 | 30 | ||||||
Total other expense, net | (659 | ) | (502 | ) | ||||
NET LOSS | $ | (3,290 | ) | $ | (8,475 | ) | ||
14. | CONCENTRATIONS |
Common Units | Preferred Units | Senior Priority Units | Total Members’ Capital | |||||||||||||||||||||||||||||||||
Number of Units | Members’ Capital | Number of Units | Members’ Capital | Number of Units | Members’ Capital | Accumulated Deficit | Total | |||||||||||||||||||||||||||||
Balance at January 1, 2019 | 750 | $ | — | 39,228 | $ | 39,074 | 0 | $ | — | $ | 39,074 | $ | (11,875 | ) | $ | 27,199 | ||||||||||||||||||||
Proceeds from sale of Greenidge Coin, LLC preferred units | — | — | 15,000 | 15,000 | — | — | 15,000 | — | 15,000 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (8,475 | ) | (8,475 | ) | |||||||||||||||||||||||||
Balance at December 31, 2019 | 750 | — | 54,228 | 54,074 | 0 | — | 54,074 | (20,350 | ) | 33,724 | ||||||||||||||||||||||||||
Conversion of notes payable to senior priority units—tranche 1 | — | — | — | — | 10,000 | 13,926 | 13,926 | — | 13,926 | |||||||||||||||||||||||||||
Deemed distribution of Greenidge Coin, LLC preferred units | — | — | — | 1,276 | — | — | 1,276 | (1,276 | ) | — | ||||||||||||||||||||||||||
Purchase and contribution of Greenidge Coin, LLC preferred units | — | — | (15,000 | ) | (16,276 | ) | — | 16,276 | — | — | — | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (3,290 | ) | (3,290 | ) | |||||||||||||||||||||||||
Balance at December 31, 2020 | 750 | $ | — | 39,228 | $ | 39,074 | 10,000 | $ | 30,202 | $ | 69,276 | $ | (24,916 | ) | $ | 44,360 | ||||||||||||||||||||
15. | SUPPLEMENTAL CASH FLOW INFORMATION |
$ in thousands | ||||
Shares issued to Support.com shareholders upon Merger (Notes 3 and 9) | $ | 93,885 | ||
Stock issued to purchase miners | $ | 991 | ||
Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for Greenidge class B common stock (Note 9) | $ | 72,891 | ||
Issuance of shares for investor fee associated with successful completion of Merger (Notes 4 and 9) | $ | 17,826 | ||
Issuance of warrants to advisor in connection with completion of Merger (Note 4 and 9) | $ | 8,779 |
2020 | 2019 | |||||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (3,290 | ) | $ | (8,475 | ) | ||
Adjustments to reconcile net loss to net cash flow from operating activities: | ||||||||
Depreciation | 4,564 | 1,679 | ||||||
Accretion of asset retirement obligation | 142 | — | ||||||
Loss (gain) on environmental trust liability | 230 | (241 | ) | |||||
Gain on sale of digital assets | (123 | ) | — | |||||
Impairment loss on digital assets | — | 100 | ||||||
Changes in: | ||||||||
Digital assets | (649 | ) | (369 | ) | ||||
Accounts receivable | (380 | ) | 4 | |||||
Fuel deposits | (644 | ) | 128 | |||||
Prepaid expenses | (59 | ) | 38 | |||||
Emissions credits | (1,364 | ) | (560 | ) | ||||
Other assets | 11 | (10 | ) | |||||
Accounts payable | (1,714 | ) | (164 | ) | ||||
Natural gas payable | 917 | 7 | ||||||
Accrued emissions | 1,675 | 407 | ||||||
Accrued expenses | 397 | (118 | ) | |||||
Accrued interest expense—related party | 572 | 673 | ||||||
Deferred revenue | 272 | — | ||||||
Net cash flow from operating activities | 557 | (6,901 | ) | |||||
CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (4,596 | ) | (3,458 | ) | ||||
Deposits on miner equipment | (5,959 | ) | (6,337 | ) | ||||
Project deposit | — | 41 | ||||||
Net cash flow from investing activities | (10,555 | ) | (9,754 | ) | ||||
CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from sale of Greenidge Coin, LLC preferred units | — | 15,000 | ||||||
Repayments on notes payable | (273 | ) | — | |||||
Borrowings on notes payable—related party | 3,573 | 12,700 | ||||||
Net cash flow from financing activities | 3,300 | 27,700 | ||||||
CHANGE IN CASH AND CASH EQUIVALENTS | (6,698 | ) | 11,045 | |||||
CASH AND CASH EQUIVALENTS—beginning of year | 11,750 | 705 | ||||||
CASH AND CASH EQUIVALENTS—end of year | $ | 5,052 | $ | 11,750 | ||||
SUPPLEMENTAL DISCLOSURES: CASH PAID FOR INTEREST | $ | 85 | $ | — | ||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||||||||
Miner deposits moved into property and equipment | $ | 6,337 | $ | — | ||||
Project deposits moved into property and equipment | $ | 436 | $ | — | ||||
Property and equipment purchases financed with note payable | $ | 4,910 | $ | — | ||||
Property and equipment purchases in accounts payable | $ | 1,120 | $ | 1,539 | ||||
Property and equipment purchased with digital assets | $ | 787 | $ | — | ||||
Initial recognition of asset retirement obligations | $ | — | $ | 2,135 | ||||
Notes payable principal converted to members’ equity | $ | 12,700 | $ | — | ||||
Notes payable accrued interest converted to members’ equity | $ | 1,226 | $ | — | ||||
Deemed distribution of Greenidge Coin, LLC preferred units | $ | 1,276 | $ | — | ||||
Contribution of Greenidge Coin, LLC preferred units | $ | 15,000 | $ | — | ||||
16. | OTHER RISKS AND CONSIDERATIONS |
17. | SUBSEQUENT EVENTS |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
3. | MERGER WITH SUPPORT |
3. | MERGER WITH SUPPORT (Continued) |
$ in thousands, except per share amount | ||||
Support common stock exchanged | 25,745,487 | |||
Exchange ratio | 0.115 | |||
Greenidge Class A common stock exchanged | 2,960,731 | |||
Greenidge common stock value per share | $ | 31.71 | ||
Consideration paid | $ | 93,885 | ||
$ in thousands | ||||
Cash and cash equivalents | $ | 27,113 | ||
Short-term investments | 496 | |||
Accounts receivable | 5,383 | |||
Prepaid expenses and other current assets | 713 | |||
Property and equipment | 1,349 | |||
Other long-term assets | 383 | |||
Accounts payable | (117 | ) | ||
Accrued expenses and other current liabilities | (3,328 | ) | ||
Other long-term liabilities | (242 | ) | ||
Intangible assets | 22,690 | |||
Deferred tax liability | (6,904 | ) | ||
Goodwill | 46,349 | |||
Total consideration | $ | 93,885 | ||
$ in thousands | ||||||||
Identifiable Intangible Asset | Useful Life | Fair Value | ||||||
Customer relationships | 5 years | $ | 21,600 | |||||
Tradename | 10 | 1,090 | ||||||
Total identifiable intangible assets | $ | 22,690 | ||||||
3. | MERGER WITH SUPPORT (Continued) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues | $ | 42,448 | $ | 16,461 | $ | 87,830 | $ | 47,258 | ||||||||
Net (loss) income | $ | (11,783 | ) | $ | (1,646 | ) | $ | (12,602 | ) | $ | (6,274 | ) |
4. | MERGER AND OTHER COSTS |
Three Months Ended | Nine Months Ended | |||||||
$ in thousands | September 30, 2021 | September 30, 2021 | ||||||
Merger related costs: | ||||||||
Investor fee paid in common stock (Note 9) | $ | 17,826 | $ | 17,826 | ||||
Advisor fee paid in warrants (Note 9) | 8,779 | 8,779 | ||||||
Professional and other fees | 1,140 | 1,434 | ||||||
Total Merger related costs | 27,745 | 28,039 | ||||||
Public company filing related costs | 2,102 | 3,056 | ||||||
Total Merger and other costs | $ | 29,847 | $ | 31,095 | ||||
5. | SEGMENT INFORMATION |
5. | SEGMENT INFORMATION (Continued) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues: | ||||||||||||||||
Cryptocurrency Mining and Power Generation | $ | 34,233 | $ | 6,123 | $ | 61,472 | $ | 13,937 | ||||||||
Support Services | 1,521 | 0— | 1,521 | 0— | ||||||||||||
Total Revenues | $ | 35,754 | $ | 6,123 | $ | 62,993 | $ | 13,937 | ||||||||
Segment Adjusted EBITDA | ||||||||||||||||
Cryptocurrency Mining and Power Generation | $ | 20,973 | $ | 775 | $ | 33,464 | $ | 1,301 | ||||||||
Support Services | 204 | 0— | 204 | 0— | ||||||||||||
Total Segments Adjusted EBITDA | $ | 21,177 | $ | 775 | $ | 33,668 | $ | 1,301 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Total Segments Adjusted EBITDA | $ | 21,177 | $ | 775 | $ | 33,668 | $ | 1,301 | ||||||||
Depreciation and amortization | (2,667 | ) | (1,064 | ) | (5,531 | ) | (3,227 | ) | ||||||||
Stock-based compensation | (411 | ) | 0— | (1,474 | ) | 0— | ||||||||||
Merger and other costs | (29,847 | ) | 0— | (31,095 | ) | 0— | ||||||||||
Expansion costs | (128 | ) | 0— | (128 | ) | 0— | ||||||||||
Interest expense, net | (1,009 | ) | 0— | (1,399 | ) | (540 | ) | |||||||||
Consolidated loss before income taxes | $ | (12,885 | ) | $ | (289 | ) | $ | (5,959 | ) | $ | (2,466 | ) | ||||
$ in thousands | September 30, 2021 | |||
Cryptocurrency Mining and Power Generation | 129,802 | |||
Support Services | 76,864 | |||
Total segment assets | 206,666 | |||
Cash and cash equivalents | 51,149 | |||
Short term investments | 496 | |||
Total assets | $ | 258,311 | ||
6. | PROPERTY AND EQUIPMENT |
$ in thousands | Estimated Useful Lives | September 30, 2021 | December 31, 2020 | |||||||||
Plant infrastructure | 15 - 39 years | $ | 34,273 | $ | 33,944 | |||||||
Miners | 5 years | 36,779 | 10,236 | |||||||||
Miner facility infrastructure | 15 years | 14,787 | 8,791 | |||||||||
Land | N/A | 300 | 300 | |||||||||
Equipment | 5 years | 948 | 211 | |||||||||
Software | 3 years | 1,130 | 66 | |||||||||
Coal ash impoundment | 4 years | 2,135 | 2,135 | |||||||||
Construction in process | N/A | 6,869 | 3,989 | |||||||||
Miner deposits | N/A | 38,467 | 5,959 | |||||||||
135,688 | 65,631 | |||||||||||
Less: Accumulated depreciation | (14,156 | ) | (8,986 | ) | ||||||||
$ | 121,532 | $ | 56,645 | |||||||||
7. | NOTES PAYABLE |
$ in thousands | ||||||||||||||||||||||||
Interest Rate | Initial Financing | Balance as of: | ||||||||||||||||||||||
Note | Loan Date | Maturity Date | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||
A | December 2020 | June 2022 | 17.0 | % | $ | 4,482 | $ | 1,992 | $ | 4,233 | ||||||||||||||
B | December 2020 | June 2022 | 17.0 | % | 428 | 166 | 404 | |||||||||||||||||
C | March 2021 | November 2022 | 17.0 | % | 2,229 | 1,733 | 0— | |||||||||||||||||
D | April 2021 | December 2022 | 17.0 | % | 4,012 | 3,343 | 0— | |||||||||||||||||
E—H | May 2021 | October 2023 | 15.0 | % | 12,080 | 11,751 | 0— | |||||||||||||||||
I | July 2021 | January 2023 | 17.0 | % | 4,457 | 3,962 | 0— | |||||||||||||||||
J | July 2021 | March 2023 | 17.0 | % | 2,701 | 2,415 | 0— | |||||||||||||||||
25,363 | 4,637 | |||||||||||||||||||||||
Less: Current portion | (17,994 | ) | (3,273 | ) | ||||||||||||||||||||
$ | 7,369 | $ | 1,364 | |||||||||||||||||||||
8. | RELATED PARTY TRANSACTIONS |
8. | RELATED PARTY TRANSACTIONS (Continued) |
$ in thousands | September 30, 2021 | December 31, 2020 | ||||||
Note payable to a related party due June 2021 | $ | 0 | $ | 2,382 | ||||
Note payable to a related party due May 2021 | 0 | 1,191 | ||||||
$ | 0 | $ | 3,573 | |||||
Less: Current Portion | $ | 0 | $ | (3,573 | ) | |||
$ | 0 | $ | 0 | |||||
8. | RELATED PARTY TRANSACTIONS (Continued) |
9. | STOCKHOLDERS’ EQUITY |
9. | STOCKHOLDERS’ EQUITY (Continued) |
9. | STOCKHOLDERS’ EQUITY (Continued) |
10. | EQUITY BASED COMPENSATION |
RSUs | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2020 | 0 | $ | 0 | |||||
Granted | 616,920 | 6.25 | ||||||
Unvested at September 30, 2021 | 616,920 | 6.25 |
10. | EQUITY BASED COMPENSATION (Continued) |
Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2020 | 0 | $ | 0 | — | ||||||||||||
Granted | 753,968 | 6.07 | ||||||||||||||
Exercised | (160,000 | ) | 6.25 | |||||||||||||
Forfeited | (10,888 | ) | 6.25 | |||||||||||||
Outstanding at September 30, 2020 | 583,080 | $ | 6.01 | 9.43 | $ | 11,387 | ||||||||||
Exercisable as of September 30, 2021 | 257,484 | $ | 5.80 | 9.64 | $ | 5,083 |
Weighted Average fair value of grants | $ | 1.54 | ||
Expected volatility | 35 | % | ||
Expected term (years) | 4.5 | |||
Risk-free interest rate | 0.4 | % | ||
Expected dividend yield | 0.0 | % |
11. | INCOME TAXES |
12. | EARNINGS PER SHARE |
$ in thousands, except per share amounts | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||
Numerator | ||||||||
Net loss | $ | (7,896 | ) | $ | (3,099 | ) | ||
Less: Net income attributable to the member units units before the reorganization | (648 | ) | (648 | ) | ||||
Net loss attributable to Greenidge | $ | (8,544 | ) | $ | (3,747 | ) | ||
Denominator | ||||||||
Basic weighted average shares outstanding | 30,116 | 28,949 | ||||||
Dilutive effect of equity awards | 0 | 0 | ||||||
Dilutive effect of convertible preferred stock | 0 | 0 | ||||||
Diluted weighted average shares outstanding | 30,116 | 28,949 | ||||||
Loss per share | ||||||||
Basic | $ | (0.28 | ) | $ | (0.13 | ) | ||
Diluted | $ | (0.28 | ) | $ | (0.13 | ) |
13. | COMMITMENTS AND CONTINGENCIES |
13. | COMMITMENTS AND CONTINGENCIES (Continued) |
14. | CONCENTRATIONS |
15. | SUPPLEMENTAL CASH FLOW INFORMATION |
$ in thousands | ||||
Shares issued to Support.com shareholders upon Merger (Notes 3 and 9) | $ | 93,885 | ||
Stock issued to purchase miners | $ | 991 | ||
Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for Greenidge class B common stock (Note 9) | $ | 72,891 | ||
Issuance of shares for investor fee associated with successful completion of Merger (Notes 4 and 9) | $ | 17,826 | ||
Issuance of warrants to advisor in connection with completion of Merger (Note 4 and 9) | $ | 8,779 |
16. | OTHER RISKS AND CONSIDERATIONS |
17. | SUBSEQUENT EVENTS |
17. | SUBSEQUENT EVENTS (Continued) |
2020 | 2019 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 5,052 | $ | 11,750 | ||||
Digital assets | 254 | 269 | ||||||
Accounts receivable | 390 | 10 | ||||||
Fuel deposits | 808 | 164 | ||||||
Prepaid expenses | 155 | 96 | ||||||
Emissions credits | 1,923 | 559 | ||||||
Miner equipment deposits | 5,959 | 6,337 | ||||||
Total current assets | 14,541 | 19,185 | ||||||
LONG-TERM ASSETS: | ||||||||
Property and equipment, net of accumulated depreciation of $8,986 and $4,422 at December 31, 2020 and 2019, respectively | 50,686 | 37,064 | ||||||
Project deposit | 74 | 510 | ||||||
Other assets | 74 | 85 | ||||||
Total assets | $ | 65,375 | $ | 56,844 | ||||
LIABILITIES AND MEMBERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 1,745 | $ | 2,339 | ||||
Natural gas payable | 935 | 18 | ||||||
Accrued emissions expense, current portion | 2,082 | 105 | ||||||
Accrued expenses | 547 | 150 | ||||||
Accrued interest expense—related party, current portion | 20 | 396 | ||||||
Deferred revenue | 272 | 0 | ||||||
Note payable, current portion | 3,273 | 0 | ||||||
Notes payable—related party, current portion | 3,573 | 5,000 | ||||||
Total current liabilities | 12,447 | 8,008 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 8) | 0 | |||||||
LONG-TERM LIABILITIES: | ||||||||
Accrued emissions expense, net of current portion | 0 | 302 | ||||||
Accrued interest expense—related party, net of current portion | 0 | 278 | ||||||
Notes payable, net of current portion | 1,364 | 0 | ||||||
Notes payable—related party, net of current portion | 0 | 7,700 | ||||||
Asset retirement obligations | 2,277 | 2,135 | ||||||
Environmental trust liability | 4,927 | 4,697 | ||||||
Total liabilities | 21,015 | 23,120 | ||||||
MEMBERS’ EQUITY: | ||||||||
Members’ capital 49,978 units and 39,978 units at December 31, 2020 and December 31, 2019, respectively | 69,276 | 54,074 | ||||||
Accumulated deficit | (24,916 | ) | (20,350 | ) | ||||
Total members’ equity | 44,360 | 33,724 | ||||||
Total liabilities and members’ equity | $ | 65,375 | $ | 56,844 | ||||
2020 | 2019 | |||||||
REVENUE: | ||||||||
Cryptocurrency mining | $ | 13,016 | $ | 410 | ||||
Power and capacity | 7,098 | 4,029 | ||||||
Total revenue | 20,114 | 4,439 | ||||||
OPERATING COSTS AND EXPENSES | ||||||||
Cost of revenue-cryptocurrency mining (exclusive of depreciation and amortization shown below) | 4,465 | 94 | ||||||
Cost of revenue-power and capacity (exclusive of depreciation and amortization shown below) | 8,135 | 4,806 | ||||||
Selling, general, and administrative expenses | 5,581 | 5,833 | ||||||
Depreciation and amortization | 4,564 | 1,679 | ||||||
Loss from operations | (2,631 | ) | (7,973 | ) | ||||
OTHER INCOME (EXPENSE), NET: | ||||||||
Impairment loss on digital assets | — | (100 | ) | |||||
Interest expense | (91 | ) | — | |||||
Interest expense - related party | (573 | ) | (673 | ) | ||||
Gain on sale of digital assets | 123 | — | ||||||
Gain (loss) on environmental trust liability | (230 | ) | 241 | |||||
Other income and expense | 112 | 30 | ||||||
Total other expense, net | (659 | ) | (502 | ) | ||||
NET LOSS | $ | (3,290 | ) | $ | (8,475 | ) | ||
Common Units | Preferred Units | Senior Priority Units | Total Members’ Capital | |||||||||||||||||||||||||||||||||
Number of Units | Members’ Capital | Number of Units | Members’ Capital | Number of Units | Members’ Capital | Accumulated Deficit | Total | |||||||||||||||||||||||||||||
Balance at January 1, 2019 | 750 | $ | — | 39,228 | $ | 39,074 | 0 | $ | — | $ | 39,074 | $ | (11,875 | ) | $ | 27,199 | ||||||||||||||||||||
Proceeds from sale of Greenidge Coin, LLC preferred units | — | — | 15,000 | 15,000 | — | — | 15,000 | — | 15,000 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (8,475 | ) | (8,475 | ) | |||||||||||||||||||||||||
Balance at December 31, 2019 | 750 | — | 54,228 | 54,074 | 0 | — | 54,074 | (20,350 | ) | 33,724 | ||||||||||||||||||||||||||
Conversion of notes payable to senior priority units—tranche 1 | — | — | — | — | 10,000 | 13,926 | 13,926 | — | 13,926 | |||||||||||||||||||||||||||
Deemed distribution of Greenidge Coin, LLC preferred units | — | — | — | 1,276 | — | — | 1,276 | (1,276 | ) | — | ||||||||||||||||||||||||||
Purchase and contribution of Greenidge Coin, LLC preferred units | — | — | (15,000 | ) | (16,276 | ) | — | 16,276 | — | — | — | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (3,290 | ) | (3,290 | ) | |||||||||||||||||||||||||
Balance at December 31, 2020 | 750 | $ | — | 39,228 | $ | 39,074 | 10,000 | $ | 30,202 | $ | 69,276 | $ | (24,916 | ) | $ | 44,360 | ||||||||||||||||||||
2020 | 2019 | |||||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (3,290 | ) | $ | (8,475 | ) | ||
Adjustments to reconcile net loss to net cash flow from operating activities: | ||||||||
Depreciation | 4,564 | 1,679 | ||||||
Accretion of asset retirement obligation | 142 | — | ||||||
Loss (gain) on environmental trust liability | 230 | (241 | ) | |||||
Gain on sale of digital assets | (123 | ) | — | |||||
Impairment loss on digital assets | — | 100 | ||||||
Changes in: | ||||||||
Digital assets | (649 | ) | (369 | ) | ||||
Accounts receivable | (380 | ) | 4 | |||||
Fuel deposits | (644 | ) | 128 | |||||
Prepaid expenses | (59 | ) | 38 | |||||
Emissions credits | (1,364 | ) | (560 | ) | ||||
Other assets | 11 | (10 | ) | |||||
Accounts payable | (1,714 | ) | (164 | ) | ||||
Natural gas payable | 917 | 7 | ||||||
Accrued emissions | 1,675 | 407 | ||||||
Accrued expenses | 397 | (118 | ) | |||||
Accrued interest expense—related party | 572 | 673 | ||||||
Deferred revenue | 272 | — | ||||||
Net cash flow from operating activities | 557 | (6,901 | ) | |||||
CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (4,596 | ) | (3,458 | ) | ||||
Deposits on miner equipment | (5,959 | ) | (6,337 | ) | ||||
Project deposit | — | 41 | ||||||
Net cash flow from investing activities | (10,555 | ) | (9,754 | ) | ||||
CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from sale of Greenidge Coin, LLC preferred units | — | 15,000 | ||||||
Repayments on notes payable | (273 | ) | — | |||||
Borrowings on notes payable—related party | 3,573 | 12,700 | ||||||
Net cash flow from financing activities | 3,300 | 27,700 | ||||||
CHANGE IN CASH AND CASH EQUIVALENTS | (6,698 | ) | 11,045 | |||||
CASH AND CASH EQUIVALENTS—beginning of year | 11,750 | 705 | ||||||
CASH AND CASH EQUIVALENTS—end of year | $ | 5,052 | $ | 11,750 | ||||
SUPPLEMENTAL DISCLOSURES: CASH PAID FOR INTEREST | $ | 85 | $ | — | ||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||||||||
Miner deposits moved into property and equipment | $ | 6,337 | $ | — | ||||
Project deposits moved into property and equipment | $ | 436 | $ | — | ||||
Property and equipment purchases financed with note payable | $ | 4,910 | $ | — | ||||
Property and equipment purchases in accounts payable | $ | 1,120 | $ | 1,539 | ||||
Property and equipment purchased with digital assets | $ | 787 | $ | — | ||||
Initial recognition of asset retirement obligations | $ | — | $ | 2,135 | ||||
Notes payable principal converted to members’ equity | $ | 12,700 | $ | — | ||||
Notes payable accrued interest converted to members’ equity | $ | 1,226 | $ | — | ||||
Deemed distribution of Greenidge Coin, LLC preferred units | $ | 1,276 | $ | — | ||||
Contribution of Greenidge Coin, LLC preferred units | $ | 15,000 | $ | — | ||||
1. | ORGANIZATION AND DESCRIPTION OF BUSINESS |
1. | ORGANIZATION AND DESCRIPTION OF BUSINESS (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
Coal Ash Pond | ||||
Balance at January 1, 2019 | $ | 0 | ||
Initial recognition | 2,135 | |||
Balance at December 31, 2019 | 2,135 | |||
Accretion | 142 | |||
Balance at December 31, 2020 | $ | 2,277 | ||
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
3. | PROPERTY AND EQUIPMENT |
Estimated Useful Lives | 2020 | 2019 | ||||||||||
Plant infrastructure | 15 – 39 | $ | 33,944 | $ | 31,387 | |||||||
Miners | 5 years | $ | 10,236 | — | ||||||||
Miner Facility | 15 years | 8,791 | — | |||||||||
Land | N/A | 300 | 300 | |||||||||
Equipment | 5 years | 211 | 206 | |||||||||
Software | 3 years | 66 | 66 | |||||||||
Coal ash impoundment | 4 years | 2,135 | 2,135 | |||||||||
Construction in process | N/A | 3,989 | 7,392 | |||||||||
59,672 | 41,486 | |||||||||||
Less: Accumulated depreciation | (8,986 | ) | (4,422 | ) | ||||||||
$ | 50,686 | $ | 37,064 | |||||||||
4. | NOTES PAYABLE |
4. | NOTES PAYABLE (Continued) |
Miner equipment note A | $ | 4,233 | ||
Miner equipment note B | 404 | |||
4,637 | ||||
Less: Current portion | (3,273 | ) | ||
$ | 1,364 | |||
2021 | $ | 3,273 | ||
2022 | 1,364 | |||
$ | 4,637 | |||
5. | RELATED PARTY TRANSACTIONS |
2020 | 2019 | |||||||
Note payable to a related party with interest at 8% per annum. All outstanding principal and accrued but unpaid interest is due June 2021. | $ | 2,382 | $ | 0 | ||||
Note payable to a related party with interest at 8% per annum. All outstanding principal and accrued but unpaid interest is due May 2021. | 1,191 | 0 | ||||||
Notes payable converted into Senior Priority Units—Tranche 1 (see Note 6). | 0 | 12,700 | ||||||
3,573 | 12,700 | |||||||
Less: Current portion | (3,573 | ) | (5,000 | ) | ||||
$ | 0 | $ | 7,700 | |||||
5. | RELATED PARTY TRANSACTIONS (Continued) |
6. | MEMBERS’ EQUITY |
6. | MEMBERS’ EQUITY (Continued) |
7. | EMPLOYEE BENEFIT PLAN |
8. | COMMITMENTS AND CONTINGENCIES |
9. | CONCENTRATIONS |
9. | CONCENTRATIONS (Continued) |
10. | OTHER RISKS AND CONSIDERATIONS |
11. | SUBSEQUENT EVENTS |
December 31, | ||||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 13,526 | $ | 10,087 | ||||
Short-term investments | 16,441 | 16,327 | ||||||
Accounts receivable, net | 6,975 | 9,398 | ||||||
Prepaid expenses and other current assets | 670 | 728 | ||||||
Total current assets | 37,612 | 36,540 | ||||||
Property and equipment, net | 1,115 | 533 | ||||||
Intangible assets | — | 250 | ||||||
Right of use assets, net | 61 | 68 | ||||||
Other assets | 478 | 649 | ||||||
TOTAL ASSETS | $ | 39,266 | $ | 38,040 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 366 | $ | 277 | ||||
Accrued compensation | 1,735 | 1,610 | ||||||
Other accrued liabilities | 879 | 940 | ||||||
Short-term lease liability | 58 | 61 | ||||||
Short-term deferred revenue | 881 | 1,193 | ||||||
Total current liabilities | 3,919 | 4,081 | ||||||
Other long-term liabilities | 911 | 792 | ||||||
Total liabilities | 4,830 | 4,873 | ||||||
Commitments and contingencies (Note 3) | ||||||||
Stockholders’ equity: | ||||||||
Common stock; par value $0.0001, 50,000 shares authorized; 19,973 issued and 19,490 outstanding at December 31, 2020 and 19,537 issued and 19,054 outstanding at December 31, 2019 | 2 | 2 | ||||||
Additional paid-in capital | 250,954 | 250,092 | ||||||
Treasury stock, at cost (483 shares at December 31, 2020 and 2019) | (5,297 | ) | (5,297 | ) | ||||
Accumulated other comprehensive loss | (2,419 | ) | (2,380 | ) | ||||
Accumulated deficit | (208,804 | ) | (209,250 | ) | ||||
Total stockholders’ equity | 34,436 | 33,167 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 39,266 | $ | 38,040 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Revenue: | ||||||||
Services | $ | 42,079 | $ | 59,545 | ||||
Software and other | 1,785 | 3,788 | ||||||
Total revenue | 43,864 | 63,333 | ||||||
Cost of revenue: | ||||||||
Cost of services | 28,697 | 46,714 | ||||||
Cost of software and other | 224 | 151 | ||||||
Total cost of revenue | 28,921 | 46,865 | ||||||
Gross profit | 14,943 | 16,468 | ||||||
Operating expenses: | ||||||||
Engineering and IT | 3,655 | 4,078 | ||||||
Sales and marketing | 2,362 | 1,760 | ||||||
General and administrative | 8,874 | 7,679 | ||||||
Total operating expenses | 14,891 | 13,517 | ||||||
Income from operations | 52 | 2,951 | ||||||
Interest income and other, net | 496 | 1,049 | ||||||
Income before income taxes | 548 | 4,000 | ||||||
Income tax provision | 102 | 154 | ||||||
Net income | $ | 446 | $ | 3,846 | ||||
Net income per share—basic and diluted | $ | 0.02 | $ | 0.20 | ||||
Weighted average common shares outstanding—basic | 19,192 | 18,977 | ||||||
Weighted average common shares outstanding—diluted | 19,369 | 19,026 |
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 446 | $ | 3,846 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustment | (44 | ) | 49 | |||||
Net unrealized gain on investments | 5 | 78 | ||||||
Other comprehensive income (loss) | (39 | ) | 127 | |||||
Comprehensive income | $ | 407 | $ | 3,973 | ||||
Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balances at December 31, 2018 | 18,955 | $ | 2 | $ | 268,794 | $ | (5,297 | ) | $ | (2,507 | ) | $ | (213,096 | ) | $ | 47,896 | ||||||||||||
Net income | — | — | — | — | — | 3,846 | 3,846 | |||||||||||||||||||||
Dividend payout | — | — | (19,054 | ) | — | — | — | (19,054 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | 127 | — | 127 | |||||||||||||||||||||
Issuance of common stock upon exercise of stock options & RSU releases | 73 | — | — | — | — | — | — | |||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 26 | — | 48 | — | — | — | 48 | |||||||||||||||||||||
Stock-based compensation expense | — | — | 304 | — | — | — | 304 | |||||||||||||||||||||
Balances at December 31, 2019 | 19,054 | $ | 2 | $ | 250,092 | $ | (5,297 | ) | $ | (2,380 | ) | $ | (209,250 | ) | $ | 33,167 | ||||||||||||
Net income | — | — | — | — | — | 446 | 446 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (39 | ) | — | (39 | ) | |||||||||||||||||||
Issuance of common stock upon exercise of stock options & RSU releases | 392 | — | 191 | — | — | — | 191 | |||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 44 | — | 37 | — | — | — | 37 | |||||||||||||||||||||
Stock-based compensation expense | — | — | 634 | — | — | — | 634 | |||||||||||||||||||||
Balances at December 31, 2020 | 19,490 | $ | 2 | $ | 250,954 | $ | (5,297 | ) | $ | (2,419 | ) | $ | (208,804 | ) | $ | 34,436 | ||||||||||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Operating Activities: | ||||||||
Net income | $ | 446 | $ | 3,846 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 314 | 294 | ||||||
Amortization of premiums and discounts on investments | 65 | 83 | ||||||
Stock-based compensation | 634 | 304 | ||||||
Impairment of intangible asset | 250 | — | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable, net | 2,423 | 2,893 | ||||||
Prepaid expenses and other current assets | 41 | 282 | ||||||
Other long-term assets | 142 | 40 | ||||||
Accounts payable | 87 | (92 | ) | |||||
Accrued compensation | 120 | (1,804 | ) | |||||
Accrued legal settlement | — | (10,000 | ) | |||||
Other accrued liabilities | (46 | ) | 26 | |||||
Other long-term liabilities | 104 | 18 | ||||||
Deferred revenue | (312 | ) | 58 | |||||
Net cash provided by (used in) operating activities | 4,268 | (4,052 | ) | |||||
Investing Activities: | ||||||||
Purchases of property and equipment | (896 | ) | (124 | ) | ||||
Disposal of property and equipment | — | 3 | ||||||
Purchase of investments | (13,375 | ) | (34,898 | ) | ||||
Proceeds from sale of investments | — | 9,766 | ||||||
Maturities of investments | 13,200 | 33,267 | ||||||
Net cash provided by (used in) investing activities | (1,071 | ) | 8,014 | |||||
Financing Activities: | ||||||||
Payment of dividend | — | (19,054 | ) | |||||
Proceeds from exercise of stock options | 191 | — | ||||||
Proceeds from employee stock purchase plan | 37 | 48 | ||||||
Net cash provided by (used in) financing activities | 228 | (19,006 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 14 | (51 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 3,439 | (15,095 | ) | |||||
Cash and cash equivalents at beginning of year | 10,087 | 25,182 | ||||||
Cash and cash equivalents at end of year | $ | 13,526 | $ | 10,087 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for income tax | $ | 135 | $ | 98 | ||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
As of December 31, 2020 | ||||||||||||||||
Cash | $ | 10,918 | $ | — | $ | — | $ | 10,918 | ||||||||
Money market funds | 1,258 | — | — | 1,258 | ||||||||||||
Certificates of deposit | 492 | — | — | 492 | ||||||||||||
Commercial paper | 3,274 | — | (1 | ) | 3,273 | |||||||||||
Corporate notes and bonds | 9,423 | 4 | — | 9,427 | ||||||||||||
U.S. government treasury | 4,599 | — | — | 4,599 | ||||||||||||
$ | 29,964 | $ | 4 | $ | (1 | ) | $ | 29,967 | ||||||||
Classified as: | ||||||||||||||||
Cash and cash equivalents | $ | 13,526 | $ | — | $ | — | $ | 13,526 | ||||||||
Short-term investments | 16,438 | 4 | (1 | ) | 16,441 | |||||||||||
$ | 29,964 | $ | 4 | $ | (1 | ) | $ | 29,967 | ||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
As of December 31, 2019 | ||||||||||||||||
Cash | $ | 7,814 | $ | — | $ | — | $ | 7,814 | ||||||||
Money market funds | 1,137 | — | — | 1,137 | ||||||||||||
Certificates of deposit | 475 | — | — | 475 | ||||||||||||
Commercial paper | 6,912 | — | (1 | ) | 6,911 | |||||||||||
Corporate notes and bonds | 7,922 | 15 | (4 | ) | 7,933 | |||||||||||
U.S. government agency securities | 2,145 | — | (1 | ) | 2,144 | |||||||||||
$ | 26,405 | $ | 15 | $ | (6 | ) | $ | 26,414 | ||||||||
Classified as: | ||||||||||||||||
Cash and cash equivalents | $ | 10,087 | $ | — | $ | — | $ | 10,087 | ||||||||
Short-term investments | 16,318 | 15 | (6 | ) | 16,327 | |||||||||||
$ | 26,405 | $ | 15 | $ | (6 | ) | $ | 26,414 | ||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
Due within one year | $ | 13,248 | $ | 12,754 | ||||
Due within two years | 3,193 | 3,573 | ||||||
$ | 16,441 | $ | 16,327 | |||||
As of December 31, 2020 | In Gain Position Less Than 12 Months | In Loss Position More Than 12 Months | Total in Gain Position | |||||||||||||||||||||
Description | Fair Value | Unrealized Gain | Fair Value | Unrealized Loss | Fair Value | Unrealized Gain | ||||||||||||||||||
Certificates of deposit | $ | 492 | $ | — | $ | — | $ | — | $ | 492 | $ | — | ||||||||||||
Corporate notes and bonds | 9,502 | 5 | 3,195 | (2 | ) | 12,697 | 3 | |||||||||||||||||
U.S. government agency securities | 4,599 | — | — | — | 4,599 | — | ||||||||||||||||||
Total | $ | 14,593 | $ | 6 | $ | 3,195 | $ | (2 | ) | $ | 17,788 | $ | 3 | |||||||||||
As of December 31, 2019 | In Gain Position Less Than 12 Months | In Loss Position More Than 12 Months | Total in Gain Position | |||||||||||||||||||||
Description | Fair Value | Unrealized Gain | Fair Value | Unrealized Loss | Fair Value | Unrealized Gain | ||||||||||||||||||
Certificates of deposit | $ | 475 | $ | — | $ | — | $ | — | $ | 475 | $ | — | ||||||||||||
Corporate notes and bonds | 10,120 | 15 | 4,714 | (5 | ) | 14,834 | 10 | |||||||||||||||||
U.S. government agency securities | 2,145 | (1 | ) | — | — | 2,145 | (1 | ) | ||||||||||||||||
Total | $ | 12,740 | $ | 14 | $ | 4,714 | $ | (5 | ) | $ | 17,454 | $ | 9 | |||||||||||
Amount | ||||
Balance, December 31, 2018 | $ | 13 | ||
Provision for doubtful accounts | 40 | |||
Accounts written off | (25 | ) | ||
Balance, December 31, 2019 | 28 | |||
Provision for doubtful accounts | 37 | |||
Accounts written off | (61 | ) | ||
Balance, December 31, 2020 | $ | 4 | ||
Amount | ||||
Balance, December 31, 2018 | $ | 1,135 | ||
Deferred revenue | 1,887 | |||
Recognition of unearned revenue | (1,829 | ) | ||
Balance, December 31, 2019 | 1,193 | |||
Deferred revenue | 1,243 | |||
Recognition of unearned revenue | (1,555 | ) | ||
Balance, December 31, 2020 | $ | 881 | ||
Years Ended December 31, | Years Ended December 31, | �� | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income | $ | 446 | $ | 3,846 | $ | 446 | $ | 3,846 | ||||||||
Basic: | ||||||||||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | 19,192 | 18,977 | ||||||||||||
Basic earnings per share | $ | 0.02 | $ | 0.20 | $ | 0.02 | $ | 0.20 | ||||||||
Diluted | ||||||||||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | 19,192 | 18,977 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options and restricted stock units | 177 | 49 | 177 | 49 | ||||||||||||
Diluted weighted-average commons shares outstanding | 19,369 | 19,026 | 19,369 | 19,026 | ||||||||||||
Diluted earnings per share | $ | 0.02 | $ | 0.20 | $ | 0.02 | $ | 0.20 | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of December 31, 2020 | ||||||||||||||||
Money market funds | $ | 1,258 | $ | — | $ | — | $ | 1,258 | ||||||||
Certificates of deposit | — | 492 | — | 492 | ||||||||||||
Commercial paper | — | 3,273 | — | 3,273 | ||||||||||||
Corporate notes and bonds | — | 9,427 | — | 9,427 | ||||||||||||
U.S. government agency securities | — | 4,599 | — | 4,599 | ||||||||||||
Total | $ | 1,258 | $ | 17,791 | $ | — | $ | 19,049 | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of December 31, 2019 | ||||||||||||||||
Money market funds | $ | 1,137 | $ | — | $ | — | $ | 1,137 | ||||||||
Certificates of deposit | — | 475 | — | 475 | ||||||||||||
Commercial paper | — | 6,911 | — | 6,911 | ||||||||||||
Corporate notes and bonds | — | 7,933 | — | 7,933 | ||||||||||||
U.S. government agency securities | — | 2,144 | — | 2,144 | ||||||||||||
Total | $ | 1,137 | $ | 17,463 | $ | — | $ | 18,600 | ||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
United States | $ | 1,110 | $ | 532 | ||||
Philippines | 4 | 1 | ||||||
India | 1 | — | ||||||
Total | $ | 1,115 | $ | 533 | ||||
December 31, | ||||||||
2020 | 2019 | |||||||
Computer equipment and software | $ | 8,114 | $ | 7,233 | ||||
Furniture and office equipment | 140 | 142 | ||||||
Leasehold improvements | 348 | 348 | ||||||
Construction in progress | 50 | 32 | ||||||
Accumulated depreciation | (7,537 | ) | (7,222 | ) | ||||
Total property and equipment, net | $ | 1,115 | $ | 533 | ||||
December 31, | ||||||||
2020 | 2019 | |||||||
Accrued expenses | $ | 369 | $ | 536 | ||||
Self-insurance accruals | 270 | 404 | ||||||
Payroll tax deferral | 240 | — | ||||||
Total other accrued liabilities | $ | 879 | $ | 940 | ||||
�� |
December 31, | ||||||||
2020 | 2019 | |||||||
Deferred tax liability, net | 443 | 428 | ||||||
Long-term income tax payable | 223 | 355 | ||||||
Payroll tax deferral | 240 | — | ||||||
Other long-term liabilities | 5 | 9 | ||||||
Total other long-term liabilities | $ | 911 | $ | 792 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Stock-based compensation expense related to grants of: | ||||||||
Stock options | $ | 224 | $ | 130 | ||||
RSU | 374 | 155 | ||||||
ESPP | 36 | 19 | ||||||
Total | $ | 634 | $ | 304 | ||||
Stock-based compensation expense recognized in: | ||||||||
Cost of service | $ | 28 | $ | 40 | ||||
Engineering and IT | 25 | 25 | ||||||
Sales and marketing | 38 | 38 | ||||||
General and administrative | 543 | 201 | ||||||
Total | $ | 634 | $ | 304 | ||||
2010 Plan/Restated Plan | Employee Stock Purchase Plan | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Risk-free interest rate | 0.4 | % | 1.7 | % | 0.2 | % | 2.0 | % | ||||||||
Expected term (in years) | 6.1 | 3.1 | 0.5 | 0.5 | ||||||||||||
Volatility | 42.5 | % | 35.6 | % | 74.4 | % | 42.4 | % | ||||||||
Expected dividend | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||
Weighted-average grant date fair value | $ | 0.55 | $ | 0.52 | $ | 0.34 | $ | 0.43 |
Number of shares | Weighted- average exercise price per share | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value (in thousands) | |||||||||||||
Outstanding at December 31, 2018 | 803 | $ | 2.89 | 8.43 | $ | 54 | ||||||||||
Granted | 90 | 0.94 | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | (77 | ) | 1.97 | |||||||||||||
Outstanding at December 31, 2019 | 816 | $ | 1.77 | 7.49 | $ | 16 | ||||||||||
Granted | 2,394 | 1.56 | �� | |||||||||||||
Exercised | (147 | ) | 1.30 | 116 | ||||||||||||
Forfeited | (434 | ) | 1.58 | |||||||||||||
Outstanding at December 31, 2020 | 2,629 | $ | 1.64 | 8.79 | $ | 1,605 | ||||||||||
Exercisable at December 31, 2020 | 724 | $ | 1.74 | 6.77 | $ | 468 | ||||||||||
Plan | Option plans ranges of exercise prices | Number of outstanding options | Weighted- average remaining contractual life | Weighted- average exercise price | ||||||||||||
2010 Plan/Restated Plan | $1.29 – $16.67 | 2,029,176 | 8.61 | $ | 1.86 | |||||||||||
Inducement Plan | $0.56 – $16.67 | 600,000 | 9.37 | $ | 1.33 | |||||||||||
2,629,176 | ||||||||||||||||
Number of shares | Weighted- average exercise price per share | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value (in thousands) | |||||||||||||
Outstanding at December 31, 2018 | 96 | $ | 2.78 | 0.60 | $ | 227 | ||||||||||
Granted | 243 | 1.39 | ||||||||||||||
Vested | (73 | ) | 2.06 | |||||||||||||
Forfeited | (17 | ) | 2.75 | |||||||||||||
Outstanding at December 31, 2019 | 249 | $ | 1.62 | 0.60 | $ | 271 | ||||||||||
Granted | 127 | 1.97 | ||||||||||||||
Vested | (245 | ) | 1.57 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at December 31, 2020 | 131 | $ | 2.05 | 0.70 | $ | 287 | ||||||||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
United States | $ | 50 | $ | 3,634 | ||||
Foreign | 498 | 366 | ||||||
Total | $ | 548 | $ | 4,000 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Current: | ||||||||
Federal | $ | — | $ | — | ||||
State | 9 | 16 | ||||||
Foreign | 45 | 118 | ||||||
Total current | $ | 54 | $ | 134 | ||||
Deferred: | ||||||||
Federal | $ | — | $ | — | ||||
State | — | — | ||||||
Foreign | 48 | 20 | ||||||
Total deferred | $ | 48 | $ | 20 | ||||
Provision for income taxes | $ | 102 | $ | 154 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Provision of Federal statutory rate | $ | 115 | $ | 835 | ||||
State taxes | 9 | 16 | ||||||
Permanent differences/other | 1,825 | (13 | ) | |||||
Stock-based compensation | (23 | ) | 23 | |||||
Federal valuation allowance used | (1,824 | ) | (707 | ) | ||||
Provision for income taxes | $ | 102 | $ | 154 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Deferred tax assets | ||||||||
Fixed assets | $ | 13 | $ | 78 | ||||
Accruals and reserves | 122 | 92 | ||||||
Stock options | 247 | 197 | ||||||
Net operating loss carryforwards | 36,608 | 38,335 | ||||||
Federal and state credits | 3,227 | 3,461 | ||||||
Foreign credits | 163 | 159 | ||||||
Intangible assets | 1,497 | 1,789 | ||||||
Research and development expense | 1,487 | 1,858 | ||||||
Gross deferred tax assets | 43,364 | 45,969 | ||||||
Valuation allowance | (43,238 | ) | (45,846 | ) | ||||
Total deferred tax assets | 126 | 123 | ||||||
Deferred tax liabilities (1) | (569 | ) | (551 | ) | ||||
Net deferred liabilities | $ | (443 | ) | $ | (428 | ) | ||
(1) | Of this amount, $554,000 relates to the Indian subsidiaries unremitted earnings deferred tax liability. The net deferred income tax liabilities are recorded in other long-term liabilities in the accompanying balance sheet. |
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Balance, beginning of year | $ | 2,121 | $ | 2,117 | ||||
Increase related to prior year tax positions | 3 | 4 | ||||||
Decrease related to prior year tax positions | (126 | ) | — | |||||
Settlements with tax authorities | (78 | ) | — | |||||
Balance, end of year | $ | 1,920 | $ | 2,121 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Operating leases | ||||||||
Right-of-use | $ | 61 | $ | 68 | ||||
Lease liabilities—short term | $ | 58 | $ | 61 | ||||
Lease liabilities—long-term | 3 | 7 | ||||||
Total lease liabilities | $ | 61 | $ | 68 | ||||
Operating leases | ||||
2021 | $ | 59 | ||
2022 | 3 | |||
Total | $ | 62 | ||
Less: imputed interest | (1 | ) | ||
Present value of lease liabilities | $ | 61 | ||
Operating cash flows from operating leases | $ | 181 | ||
Right-of-use | $ | 169 |
Years Ending December 31, | Operating Leases | |||
2021 | $ | 59 | ||
2022 | 3 | |||
Total minimum lease payments | $ | 62 | ||
B. Riley Securities | ||||
Ladenburg Thalmann | William Blair & Co. |
Aegis Capital Corp. | Alexander Capital L.P. | Colliers Securities LLC |
Northland Capital Markets | Revere Securities LLC | Wedbush Securities | Ziegler |
Amount to be paid | Amount to be paid | |||||||
SEC Registration Fee | $ | 2,665.13 | $ | 3,731.18 | ||||
FINRA filing fee | 6,537.50 | |||||||
Nasdaq listing fees and expenses | ||||||||
Accounting fees and expenses | 70,000.00 | |||||||
Legal fees and expenses | 300,000.00 | |||||||
Printing expenses | 75,000.00 | |||||||
Road show expenses | 8,500.00 | |||||||
Trustee fees and expenses | 10,000.00 | |||||||
Total | $ | $ | 473,768.68 | |||||
Exhibit No. | Description | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File, formatted in Inline XBRL (included within the Exhibit 101 attachments) |
* | Filed herewith |
** |
+ | Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) or Item 601(b)(2) of Regulation S-K. We hereby undertake to furnish copies of the omitted schedule or exhibit upon request by the Securities and Exchange Commission |
† | Management contract or compensatory plan or arrangement |
GREENIDGE GENERATION HOLDINGS INC. | ||
By: | /s/ Jeffrey E. Kirt | |
Jeffrey E. Kirt | ||
Chief Executive Officer |
Signature | Title | Date | ||
/s/ Jeffrey E. Kirt Jeffrey E. Kirt | Chief Executive Officer (Principal Executive Officer) and Director | |||
Timothy Rainey | Chief Financial Officer (Principal Financial and Accounting Officer) | |||
George (Ted) Rogers | Vice Chairman of the Board of Directors | |||
Timothy Fazio | Chairman of the Board of Directors | |||
Jerome Lay | Director | |||
Andrew M. Bursky | Director |
Signature | Title | Date | ||
Timothy Lowe | Director | |||
Daniel Rothaupt | Director | |||
David Filippelli | Director | |||
Michael Neuscheler | Director |
*By: | /s/ Jeffrey E. Kirt | |
Jeffrey E. Kirt, Attorney-in-fact |