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) | ||
8.50% Senior Notes due 2026 | $28,750,000 | $2,665.13 | ||
Registration Fee | ||||
(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 |
Per Note | Total | |||||||
Public offering price (1) | $ | $ | ||||||
Underwriting discount | $ | $ | ||||||
Proceeds, before expenses, payable to us | $ | $ |
(1) | Plus accrued interest from October 13, 2021 to, but not including, , 2021, the settlement date. |
(2) | See “ Underwriting |
B. Riley Securities, Inc. (“B. Riley”), as representative of the underwriters, may exercise an option to purchase up to an additional $ aggregate principal amount of Notes offered hereby, within 30 days of the date of this prospectus. If this option is exercised in full, the total offering price will be $ , the total underwriting discount paid by us will be $ , and total proceeds to us, before expenses, will be approximately $ . |
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 | ||||||
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iii | ||||
1 | ||||
F-1 |
We may be able to incur substantially more debt, which could have important consequences to you. |
The Notes will be unsecured and therefore will be effectively subordinated to any secured indebtedness that we currently have or that we may incur in the future. |
The Notes will be structurally subordinated to the indebtedness and other liabilities of our subsidiaries. |
The indenture under which the Notes will be issued contains limited protection for holders of the Notes. |
An increase in market interest rates could result in a decrease in the value of the Notes. |
An active trading market for the Notes may not be sustained, which could limit the market price of the Notes or your ability to sell them. |
We may redeem the Notes before maturity, and you may be unable to reinvest the proceeds at the same or a higher rate of return. |
The rating for the Notes could at any time be revised downward or withdrawn entirely at the discretion of the issuing rating agency. Our subsidiaries conduct the substantial majority of our operations and own our operating assets. |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Total revenue | $ | 16,176 | $ | 4,672 | $ | 27,239 | $ | 7,814 | $ | 35,754 | $ | 6,123 | $ | 62,993 | $ | 13,937 | ||||||||||||||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 4,724 | 2,582 | 9,146 | 4,609 | 9,659 | 4,072 | 19,046 | 8,681 | ||||||||||||||||||||||||
Selling, general and administrative expenses | 4,565 | 1,189 | 8,060 | 2,638 | 5,446 | 1,493 | 12,017 | 4,131 | ||||||||||||||||||||||||
Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||||||||||||||||||
Depreciation and amortization | 1,603 | 1,130 | 2,864 | 2,163 | 2,667 | 1,064 | 5,531 | 3,227 | ||||||||||||||||||||||||
Income (loss) from operations | 5,284 | (229 | ) | 7,169 | (1,596 | ) | ||||||||||||||||||||||||||
Interest and other expense, net | (369 | ) | (342 | ) | (243 | ) | (581 | ) | ||||||||||||||||||||||||
Provision for income taxes | (1,397 | ) | — | (2,129 | ) | — | ||||||||||||||||||||||||||
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 income (loss) | $ | 3,518 | $ | (571 | ) | $ | 4,797 | $ | (2,177 | ) | ||||||||||||||||||||||
Net loss | $ | (7,896 | ) | $ | (289 | ) | $ | (3,099 | ) | $ | (2,466 | ) | ||||||||||||||||||||
Net income (loss) per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.10 | $ | 0.15 | $ | (0.28 | ) | $ | (0.13 | ) | ||||||||||||||||||||||
Diluted | $ | 0.08 | $ | 0.12 | $ | (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 | ) |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||
Current assets | $ | 59,933 | $ | 14,541 | $ | 64,425 | $ | 14,541 | ||||||||
Long-term assets | 68,754 | 50,834 | 193,886 | 50,834 | ||||||||||||
Total assets | $ | 128,687 | $ | 65,375 | 258,311 | 65,375 | ||||||||||
Total liabilities | $ | 35,748 | $ | 21,015 | 52,509 | 21,015 | ||||||||||
Total stockholders’ equity | $ | 92,939 | $ | 44,360 | $ | 205,802 | $ | 44,360 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Total revenue | $ | 8,512 | $ | 11,034 | $ | 18,143 | $ | 22,983 | ||||||||
Cost of revenue | 5,492 | 7,172 | 11,587 | 14,886 | ||||||||||||
Gross profit | 3,020 | 3,862 | 6,556 | 8,097 | ||||||||||||
Total operating expenses | 3,869 | 3,389 | 9,424 | 7,295 | ||||||||||||
Income (loss) from operations | (849 | ) | 473 | (2,868 | ) | 802 | ||||||||||
Interest income and other, net | 75 | 173 | 117 | 257 | ||||||||||||
Income taxes | (25 | ) | (29 | ) | (42 | ) | (78 | ) | ||||||||
Net income (loss) | $ | (799 | ) | $ | 617 | $ | (2,793 | ) | $ | 981 | ||||||
Net income (loss) per share: Basic and Diluted | $ | (0.03 | ) | $ | 0.03 | $ | (0.13 | ) | $ | 0.05 |
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 |
June 30, 2021 | December 31, 2020 | December 31, 2020 | ||||||||||
Current assets | $ | 44,567 | $ | 37,612 | $ | 37,612 | ||||||
Long-term assets | 1,438 | 1,654 | 1,654 | |||||||||
Total assets | $ | 46,005 | $ | 39,266 | $ | 39,266 | ||||||
Total liabilities | $ | 5,758 | $ | 4,830 | $ | 4,830 | ||||||
Total stockholders’ equity | $ | 40,247 | $ | 34,436 | $ | 34,436 |
Three Months Ended September 30, 2021 | ||||||||
Low | High | |||||||
(in millions) | ||||||||
Net Loss | $ | (19 | ) | $ | (16 | ) | ||
Taxes | 3 | 4 | ||||||
Depreciation and amortization | 3 | 3 | ||||||
Interest | 1 | 1 | ||||||
EBITDA | (12 | ) | (8 | ) | ||||
Stock-based compensation | — | — | ||||||
Merger and public company filing related costs — noncash (1) | 27 | 27 | ||||||
Merger and public company filing related costs — cash (1) | 3 | 3 | ||||||
Adjusted EBITDA | $ | 18 | $ | 22 |
Issuer: | Greenidge Generation Holdings Inc. |
Notes Offered: | $ |
Offering Price: |
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 |
Interest Rate and Payment Dates: |
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 |
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 |
101% of their principal amount, and (iii) on or after 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 |
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 |
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 | $ | 14,541 | ||||
Long-term assets | 193,886 | 50,834 | ||||||
Total assets | 258,311 | 65,375 | ||||||
Total liabilities | 52,509 | 21,015 | ||||||
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: | $ aggregate principal amount of 8.50% Senior Notes due 2026 (or $ 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 $ . |
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 | $ | 14,541 | ||||
Long-term assets | 193,886 | 50,834 | ||||||
Total assets | 258,311 | 65,375 | ||||||
Total liabilities | 52,509 | 21,015 | ||||||
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: | $ aggregate principal amount of 8.50% Senior Notes due 2026 (or $ 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 $ . |
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 |
As of September 30, 2021 | ||||||||||||
Actual | As adjusted for the Original Notes Offering | As further adjusted for this offering (1) (2) | ||||||||||
(in thousands) | ||||||||||||
Cash and cash equivalents | $ | 51,149 | $ | 103,854 | $ | |||||||
Long-term liabilities: | ||||||||||||
Deferred tax liability | 3,959 | 3,959 | ||||||||||
Notes payable, net of current portion (3) | 7,369 | 7,369 | ||||||||||
Finance lease obligation, net of current portion | 111 | 111 | ||||||||||
Asset retirement obligations | 2,380 | 2,380 | ||||||||||
Environmental trust liability | 4,994 | 4,994 | ||||||||||
Other long-term liabilities | 242 | 242 | ||||||||||
Original Notes (4) | — | 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 capitalization | $ | 221,084 | $ | 276,284 | $ |
As of June 30, 2021 | ||||||||||||
Actual | As adjusted for the acquisition of Support (1) | As further adjusted for this offering (1) | ||||||||||
(in thousands) | ||||||||||||
Cash and cash equivalents | $ | 37,890 | $ | 70,185 | $ | |||||||
Long-term liabilities: | ||||||||||||
Deferred tax liability | 482 | 5,105 | 5,105 | |||||||||
Notes payable, net of current portion | 7,064 | 7,064 | 7,064 | |||||||||
Finance lease obligation, net of current portion | 409 | 409 | 409 | |||||||||
Asset retirement obligations | 2,345 | 2,345 | 2,345 | |||||||||
Environmental trust liability | 4,994 | 4,994 | 4,994 | |||||||||
Notes offered hereby | — | — | ||||||||||
Total long-term liabilities | 15,294 | 20,824 | ||||||||||
Total Stockholders’ equity (deficit) | 92,939 | 391,449 | 391,449 | |||||||||
Total capitalization | $ | 108,233 | 412,273 | $ |
(1) | Excludes up to |
(2) | Excludes sales of shares of class A common stock in connection with the Purchase |
(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 $2.6 million on the Original Notes. |
(5) | Excludes unamortized debt issuance costs of approximately $ million on the Notes offered hereby. |
Total | Less than 1 Year | 1-3 Years | ||||||||||||||||||||||
$ in thousands | Total | Less than 1 Year | 1-3 Years | |||||||||||||||||||||
Notes payable (1) | $ | 43,791 | $ | 20,798 | $ | 22,993 | $ | 42,932 | $ | 25,229 | $ | 17,703 | ||||||||||||
Equipment lease (2) | $ | 680 | $ | 544 | $ | 136 | ||||||||||||||||||
Leases (2) | $ | 943 | $ | 670 | $ | 273 | ||||||||||||||||||
Natural gas commitments (3) | $ | 1,718 | $ | 1,718 | $ | — | $ | 9,187 | $ | 9,187 | $ | — | ||||||||||||
Purchase commitments (4) | $ | 22,471 | $ | 22,471 | $ | — | $ | 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) |
(3) | Represents off balance sheet arrangements to purchase natural gas through March 1, 2022. |
(4) | Represents miner purchase commitments as of |
(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 | Support | Pro Forma Adjustments | Note 4 | Pro Forma Combined | ||||||||||||||||
Assets: | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 37,890 | $ | 32,295 | $ | — | $ | 70,185 | ||||||||||||
Short term investments | — | 6,201 | — | 6,201 | ||||||||||||||||
Digital assets | 222 | — | — | 222 | ||||||||||||||||
Accounts receivable | 369 | 5,470 | — | 5,839 | ||||||||||||||||
Fuel deposits | 1,297 | — | — | 1,297 | ||||||||||||||||
Miner equipment deposits | 16,523 | — | — | 16,523 | ||||||||||||||||
Emissions and carbon offset credits | 1,665 | — | — | 1,665 | ||||||||||||||||
Prepaid expense and other current assets | 1,967 | 601 | — | 2,568 | ||||||||||||||||
Total current assets | 59,933 | 44,567 | — | 104,500 | ||||||||||||||||
Property and equipment, net | 67,346 | 1,043 | — | 68,389 | ||||||||||||||||
Deposits and other assets | 1,408 | 395 | — | 1,803 | ||||||||||||||||
Intangible assets | — | — | 16,810 | (a)(b) | 16,810 | |||||||||||||||
Goodwill | — | — | 250,841 | (b) | 250,841 | |||||||||||||||
Total assets | $ | 128,687 | $ | 46,005 | $ | 267,651 | $ | 442,343 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable | $ | 1,650 | $ | 242 | $ | — | $ | 1,892 | ||||||||||||
Natural gas payable | 1,088 | — | — | 1,088 | ||||||||||||||||
Accrued expenses | 3,226 | 3,408 | 4,765 | (h) | 11,399 | |||||||||||||||
Accrued emissions expense—current | 814 | — | — | 814 | ||||||||||||||||
Deferred revenue | 40 | 1,189 | — | 1,229 | ||||||||||||||||
Notes payable—current portion | 11,499 | — | — | 11,499 | ||||||||||||||||
Finance lease, current portion | 570 | 12 | — | 582 | ||||||||||||||||
Income taxes payable | 1,567 | — | — | 1,567 | ||||||||||||||||
Total current liabilities | 20,454 | 4,851 | 4,765 | 30,070 | ||||||||||||||||
Deferred tax liability | 482 | — | 4,623 | (b)(c) | 5,105 | |||||||||||||||
Notes payable—net of current portion | 7,064 | — | — | 7,064 | ||||||||||||||||
Finance lease obligation, net of current portion | 409 | — | — | 409 | ||||||||||||||||
Asset retirement obligations | 2,345 | — | — | 2,345 | ||||||||||||||||
Environmental trust liability | 4,994 | — | — | 4,994 | ||||||||||||||||
Other long-term liabilities | — | 907 | — | 907 | ||||||||||||||||
Total liabilities | 35,748 | 5,758 | 9,388 | 50,894 | ||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | — | 3 | (3 | ) | (b) | — | ||||||||||||||
Members’ capital | — | — | — | (d) | — | |||||||||||||||
Common stock class A | — | — | — | �� | — | |||||||||||||||
Common stock class B | 3 | — | — | 3 | ||||||||||||||||
Series A preferred GGHI | 1 | — | — | 1 | ||||||||||||||||
Additional paid-in-capital | 113,054 | 259,620 | (259,620 | ) | (b) | 474,013 | ||||||||||||||
303,275 | (b) | |||||||||||||||||||
57,684 | (e) | |||||||||||||||||||
Treasury stock, at cost | — | (5,297 | ) | 5,297 | (b) | — | ||||||||||||||
Accumulated other comprehensive loss | — | (2,482 | ) | 2,482 | (b) | — | ||||||||||||||
Accumulated deficit | (20,119 | ) | (211,597 | ) | 211,597 | (b) | (82,568 | ) | ||||||||||||
(4,765 | ) | (h) | ||||||||||||||||||
(57,684 | ) | (e) | ||||||||||||||||||
Total stockholders’ equity | 92,939 | 40,247 | 258,263 | 391,449 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 128,687 | $ | 46,005 | $ | 267,651 | $ | 442,343 | ||||||||||||
Greenidge | Support | Merger Pro Forma Adjustments | Pro Forma Note 4 | Pro Forma Combined | ||||||||||||||||
Revenues | $ | 16,176 | $ | 8,512 | $ | — | $ | 24,688 | ||||||||||||
Cost of revenues (exclusive of depreciation and amortization shown below) | 4,724 | 5,492 | (20 | ) | (k | ) | 10,196 | |||||||||||||
Engineering and IT | — | 555 | (8 | ) | (k | ) | 547 | |||||||||||||
Selling, general and administrative | 4,565 | 3,314 | (57 | ) | (k | ) | 7,822 | |||||||||||||
Depreciation and amortization | 1,603 | — | 85 | (k | ) | 2,497 | ||||||||||||||
809 | (f | ) | ||||||||||||||||||
Income (loss) from operations | 5,284 | (849 | ) | (809 | ) | 3,626 | ||||||||||||||
Interest income (expense) and other | (369 | ) | 75 | — | (g | ) | (294 | ) | ||||||||||||
Income (loss) before income taxes | 4,915 | (774 | ) | (809 | ) | 3,332 | ||||||||||||||
Income tax provision | (1,397 | ) | (25 | ) | 223 | (i | ) | (1,199 | ) | |||||||||||
Net income (loss) | $ | 3,518 | $ | (799 | ) | $ | (587 | ) | $ | 2,132 | ||||||||||
Net income (loss) per common share: | ||||||||||||||||||||
Basic | $ | 0.10 | ($ | 0.03 | ) | $ | 0.06 | |||||||||||||
Diluted | $ | 0.08 | ($ | 0.03 | ) | $ | 0.06 | |||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||
Basic | 28,320 | 24,150 | (24,150 | ) | (b | ) | 38,360 | |||||||||||||
10,040 | (l | ) | ||||||||||||||||||
Diluted | 35,425 | 24,150 | (24,150 | ) | (b | ) | 38,360 | |||||||||||||
2,935 | (l | ) |
Greenidge | Support | Merger Pro Forma Adjustments | Pro Forma Note 4 | Pro Forma Combined | ||||||||||||||||
Revenues | $ | 27,239 | $ | 18,143 | $ | — | $ | 45,382 | ||||||||||||
Cost of revenues (exclusive of depreciation and amortization shown below) | 9,146 | 11,587 | (70 | ) | (k | ) | 20,663 | |||||||||||||
Engineering and IT | — | 1,479 | (9 | ) | (k | ) | 1,470 | |||||||||||||
Selling, general and administrative | 8,060 | 7,945 | (112 | ) | (k | ) | 15,893 | |||||||||||||
Depreciation and amortization | 2,864 | — | 191 | (k | ) | 4,673 | ||||||||||||||
1,618 | (f | ) | ||||||||||||||||||
Income (loss) from operations | 7,169 | (2,868 | ) | (1,618 | ) | 2,683 | ||||||||||||||
Interest income (expense) and other | (243 | ) | 117 | 22 | (g | ) | (104 | ) | ||||||||||||
Income (loss) before income taxes | 6,926 | (2,751 | ) | (1,596 | ) | 2,579 | ||||||||||||||
Income tax provision | (2,129 | ) | (42 | ) | 439 | (i | ) | (1,732 | ) | |||||||||||
Net income (loss) | $ | 4,797 | $ | (2,793 | ) | $ | (1,157 | ) | $ | 847 | ||||||||||
Net income (loss) per common share: | ||||||||||||||||||||
Basic | $ | 0.15 | ($ | 0.13 | ) | $ | 0.02 | |||||||||||||
Diluted | $ | 0.12 | ($ | 0.13 | ) | $ | 0.02 | |||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||
Basic | 28,283 | 22,189 | (22,189 | ) | (b | ) | 38,360 | |||||||||||||
10,077 | (l | ) | ||||||||||||||||||
Diluted | 35,245 | 22,189 | (22,189 | ) | (b | ) | 38,360 | |||||||||||||
3,115 | (l | ) |
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 | ) | (k | ) | 41,274 | 12,600 | — | 12,600 | 28,921 | (247 | ) | (g | ) | 41,274 | ||||||||||||||||||||||||||||||||||||||||||||||
Engineering and IT | — | — | — | 3,655 | (5 | ) | (k | ) | 3,650 | — | — | — | 3,655 | (5 | ) | (g | ) | 3,650 | ||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 5,581 | — | 5,581 | 11,236 | 4,765 | (h | ) | 79,199 | 5,581 | — | 5,581 | 11,236 | (67 | ) | (g | ) | 16,750 | |||||||||||||||||||||||||||||||||||||||||||||||
57,684 | (e | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(67 | ) | (k | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,564 | — | 4,564 | — | 319 | (k | ) | 8,120 | 4,564 | — | 4,564 | — | 319 | (g | ) | 9,312 | ||||||||||||||||||||||||||||||||||||||||||||||||
3,237 | (f | ) | 4,429 | (c | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | (2,631 | ) | — | (2,631 | ) | 52 | (65,686 | ) | (68,265 | ) | (2,631 | ) | — | (2,631 | ) | 52 | (4,429 | ) | (7,008 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income (expense) and other | (659 | ) | — | (659 | ) | 496 | 573 | (g | ) | 410 | (659 | ) | 573 | (d) | (86 | ) | 496 | — | 410 | |||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (3,290 | ) | — | (3,290 | ) | 548 | (65,113 | ) | (67,855 | ) | (3,290 | ) | 573 | (2,717 | ) | 548 | (4,429 | ) | (6,598 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | — | (482 | ) | (j | ) | (482 | ) | (102 | ) | 2,948 | (i | ) | 2,364 | — | 482 | (f | ) | 482 | 102 | (1,218 | ) | (e | ) | (634 | ) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (3,290 | ) | $ | (482 | ) | $ | (3,772 | ) | $ | 446 | $ | (62,165 | ) | $ | (65,491 | ) | $ | (3,290 | ) | $ | 91 | $ | (3,199 | ) | $ | 446 | $ | (3,211 | ) | $ | (5,964 | ) | |||||||||||||||||||||||||||||||
Net income (loss) per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | ($ | 0.13 | ) | $ | 0.02 | ($ | 1.72 | ) | ($ | 0.11 | ) | $ | 0.02 | ($ | 0.19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | ($ | 0.13 | ) | $ | 0.02 | ($ | 1.72 | ) | ($ | 0.11 | ) | $ | 0.02 | ($ | 0.19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 28,000 | 19,192 | (19,192 | ) | (b | ) | 38,040 | 28,000 | (b) | 28,000 | 19,192 | (19,192 | ) | (a | ) | 30,961 | ||||||||||||||||||||||||||||||||||||||||||||||||
10,040 | (l | ) | 2,961 | (h | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | 28,000 | 19,369 | (19,369 | ) | (b | ) | 38,040 | 28,000 | (b) | 28,000 | 19,369 | (19,369 | ) | (a | ) | 30,961 | ||||||||||||||||||||||||||||||||||||||||||||||||
10,040 | (l | ) | 2,961 | (h | ) |
$ 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 | $ | 32,295 | $ | 27,113 | ||||
Short term investments | 6,201 | 496 | ||||||
Accounts receivable | 5,470 | 5,383 | ||||||
Prepaid expenses and other current assets | 601 | 713 | ||||||
Property and equipment | 1,043 | 1,349 | ||||||
Other assets | 395 | |||||||
Other long-term assets | 383 | |||||||
Accounts payable | (242 | ) | (117 | ) | ||||
Accrued Expenses and other current liabilities | (3,420 | ) | ||||||
Deferred revenue | (1,189 | ) | ||||||
Other liabilities | (907 | ) | ||||||
Accrued expenses and other current liabilities | (3,328 | ) | ||||||
Other long-term liabilities | (242 | ) | ||||||
Intangible assets | 16,810 | (1) | 22,690 | |||||
Deferred tax liability | (4,623 | )(2) | (6,904 | ) | ||||
Goodwill | 250,841 | (3) | 46,349 | |||||
Total consideration | $ | 303,275 | $ | 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) |
(b) |
Total consideration | $ | 303,275 | (y) | |
Common stock | (3 | ) | ||
Additional paid-in capital | (259,620 | ) | ||
Treasury stock | 5,297 | |||
Accumulated other comprehensive loss | 2,482 | |||
Accumulated deficit | 211,597 | |||
Assets: | ||||
Intangible assets | (16,810 | ) | ||
Liabilities: | ||||
Deferred tax liability | 4,623 | |||
Goodwill | $ | 250,841 | ||
Reflects the March 16, 2021 amendments to the organizational documents of Greenidge whereby (i) Greenidge established its class A common stock (with one vote per share) and class B common stock (with ten votes per share), (ii) all then outstanding common stock of Greenidge was converted to class B common stock, and (iii) a forward split of 4 for 1 was effected for all outstanding common stock of Greenidge. In connection with this, the effective conversion rate for the series A preferred stock issued in the Series A Private Placement was adjusted to provide that each share of series A preferred stock will be converted into four shares of class B common stock upon the filing and effectiveness of a registration statement registering such underlying class B common stock for resale. These events eliminated the historical equity of GGH |
Reflects an adjustment for amortization of intangible assets, consisting of customer |
amortization benefit. The estimated value of the trade name is assumed to be amortized over 10 years on a straight line basis. |
Reflects the elimination of interest expense related to loans from Greenidge’s controlling shareholder that have been deemed fully satisfied. |
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. |
Reflects an adjustment for the proforma effect of the reorganization from an LLC to a corporation, as if the reorganization occurred on January 1, 2020, to recognize a deferred tax liability for the differences between the recorded values and tax bases of assets and liabilities. |
Adjusts Support’s results to present depreciation and amortization as a separate line item, consistent with Greenidge’s presentation. |
Quarters Ended June 30, | Increase (Decrease) | Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | 2021 | 2020 | Variance | 2021 | 2020 | Variance | ||||||||||||||||||||||||||||||
Total revenue | $ | 16,176 | $ | 4,672 | $ | 11,504 | 246.2 | % | $ | 35,754 | $ | 6,123 | 483.9 | % | $ | 62,993 | $ | 13,937 | 352.0 | % | ||||||||||||||||||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 4,724 | 2,582 | 2,142 | 83.0 | % | 9,659 | 4,072 | 137.2 | % | 19,046 | 8,681 | 119.4 | % | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 4,565 | 1,189 | 3,376 | 283.9 | % | 5,446 | 1,493 | 264.8 | % | 12,017 | 4,131 | 190.9 | % | |||||||||||||||||||||||||||
Merger and other costs | 29,847 | — | 31,095 | — | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,603 | 1,130 | 473 | 41.9 | % | 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 | 5,284 | (229 | ) | 5,513 | N/A | $ | 18,110 | $ | (506 | ) | $ | 26,527 | $ | (2,102 | ) | |||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||||||||||
Interest expense | (202 | ) | — | (202 | ) | N/A | ||||||||||||||||||||||||||||||||||
Interest expense—related party | — | (273 | ) | 273 | N/A | |||||||||||||||||||||||||||||||||||
Loss on sale of digital assets | (154 | ) | (44 | ) | (110 | ) | 250.0 | % | ||||||||||||||||||||||||||||||||
Other expense, net | (13 | ) | (25 | ) | 12 | -48.0 | % | |||||||||||||||||||||||||||||||||
Total other expense, net | (369 | ) | (342 | ) | (27 | ) | 7.9 | % | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 4,915 | (571 | ) | 5,486 | N/A | |||||||||||||||||||||||||||||||||||
Provision for income taxes | (1,397 | ) | — | (1,397 | ) | N/A | ||||||||||||||||||||||||||||||||||
Operating margin | 50.7 | % | -8.3 | % | 42.1 | % | -15.1 | % | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 3,518 | $ | (571 | ) | $ | 4,089 | N/A | $ | 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 June 30, | Increase (Decrease) | Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | 2021 | 2020 | Variance | 2021 | 2020 | Variance | ||||||||||||||||||||||||||||||
Cryptocurrency mining | $ | 14,064 | $ | 3,341 | $ | 10,723 | 321.0 | % | $ | 31,156 | $ | 3,043 | 923.9 | % | $ | 54,217 | $ | 8,673 | 525.1 | % | ||||||||||||||||||||
Power and capacity | 2,112 | 1,331 | 781 | 58.7 | % | 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 | $ | 16,176 | $ | 4,672 | $ | 11,504 | 246.2 | % | $ | 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, | |||||||||||||||||||||||
$ in thousands | 2021 | 2020 | Variance | 2021 | 2020 | Variance | ||||||||||||||||||
REVENUES | ||||||||||||||||||||||||
Cryptocurrency Mining and Power Generation | $ | 34,233 | $ | 6,123 | 459.1 | % | $ | 61,472 | $ | 13,937 | 341.1 | % | ||||||||||||
Support Services | 1,521 | — | N/A | 1,521 | — | N/A | ||||||||||||||||||
Total Revenues | $ | 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 | % | ||||||||||||
Support Services | 204 | — | N/A | 204 | — | N/A | ||||||||||||||||||
Total Adjusted EBITDA | $ | 21,177 | $ | 775 | 2632.5 | % | $ | 33,668 | $ | 1,301 | 2487.9 | % | ||||||||||||
Reconciliation to loss before income taxes: | ||||||||||||||||||||||||
Depreciation and amortization | (2,667 | ) | (1,064 | ) | (5,531 | ) | (3,227 | ) | ||||||||||||||||
Stock-based compensation | (411 | ) | — | (1,474 | ) | — | ||||||||||||||||||
Merger and other costs | (29,847 | ) | — | (31,095 | ) | — | ||||||||||||||||||
Expansion costs | (128 | ) | — | (128 | ) | — | ||||||||||||||||||
Interest expense, net | (1,009 | ) | — | (1,399 | ) | (540 | ) | |||||||||||||||||
Consolidated loss before income taxes | $ | (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 June 30, | ||||||||
2021 | 2020 | |||||||
Cryptocurrency mining | 86.9 | % | 71.5 | % | ||||
Power and capacity | 13.1 | % | 28.5 | % | ||||
Total revenue | 100.0 | % | 100.0 | % | ||||
Quarters Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Cryptocurrency mining | $ | 2,754 | $ | 1,362 | $ | 1,392 | 102.2 | % | ||||||||
Power and capacity | 1,970 | 1,220 | 750 | 61.5 | % | |||||||||||
Total cost of revenue | $ | 4,724 | $ | 2,582 | $ | 2,142 | 83.0 | % | ||||||||
Quarters Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Selling, general and administrative expenses | $ | 4,565 | $ | 1,189 | $ | 3,376 | 283.9 | % |
Quarters Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Depreciation and amortization | $ | 1,603 | $ | 1,130 | $ | 473 | 41.9 | % |
Quarters Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Interest expense | $ | (202 | ) | $ | — | $ | (202 | ) | N/A | |||||||
Interest expense—related party | — | (273 | ) | 273 | N/A | |||||||||||
Loss on sale of digital assets | (154 | ) | (44 | ) | (110 | ) | 250.0 | % | ||||||||
Other expense, net | (13 | ) | (25 | ) | 12 | -48.0 | % | |||||||||
Total other expense, net | $ | (369 | ) | $ | (342 | ) | $ | (27 | ) | 7.9 | % | |||||
Quarters Ended June 30, | ||||||||
$ in thousands | 2021 | 2020 | ||||||
Income (loss) before income taxes | $ | 4,915 | $ | (571 | ) | |||
Provision for income taxes | $ | (1,397 | ) | $ | — | |||
Effective Tax Rate | 28.4 | % | 0.0 | % |
Six Months Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Total revenue | $ | 27,239 | $ | 7,814 | $ | 19,425 | 248.6 | % | ||||||||
Cost of revenue (exclusive of depreciation and amortization shown below) | 9,146 | 4,609 | 4,537 | 98.4 | % | |||||||||||
Selling, general and administrative expenses | 8,060 | 2,638 | 5,422 | 205.5 | % | |||||||||||
Depreciation and amortization | 2,864 | 2,163 | 701 | 32.4 | % | |||||||||||
Income (loss) from operations | 7,169 | (1,596 | ) | 8,765 | N/A | |||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (368 | ) | — | (368 | ) | N/A | ||||||||||
Interest expense—related party | (22 | ) | (540 | ) | 518 | -95.9 | % | |||||||||
Gain (loss) on sale of digital assets | 141 | (25 | ) | 166 | N/A | |||||||||||
Other income (expense), net | 6 | (16 | ) | 22 | N/A | |||||||||||
Total other expense, net | (243 | ) | (581 | ) | 338 | -58.2 | % | |||||||||
Income (loss) before income taxes | 6,926 | (2,177 | ) | 9,103 | N/A | |||||||||||
Provision for income taxes | (2,129 | ) | — | (2,129 | ) | N/A | ||||||||||
Net income (loss) | $ | 4,797 | $ | (2,177 | ) | $ | 6,974 | N/A | ||||||||
Six Months Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Cryptocurrency mining | $ | 23,061 | $ | 5,630 | $ | 17,431 | 309.6 | % | ||||||||
Power and capacity | 4,178 | 2,184 | 1,994 | 91.3 | % | |||||||||||
Total revenue | $ | 27,239 | $ | 7,814 | $ | 19,425 | 248.6 | % | ||||||||
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cryptocurrency mining | 84.7 | % | 72.1 | % | ||||
Power and capacity | 15.3 | % | 27.9 | % | ||||
Total revenue | 100.0 | % | 100.0 | % | ||||
Six Months Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Cryptocurrency mining | $ | 5,150 | $ | 1,939 | $ | 3,211 | 165.6 | % | ||||||||
Power and capacity | 3,996 | 2,670 | 1,326 | 49.7 | % | |||||||||||
Total cost of revenue | $ | 9,146 | $ | 4,609 | $ | 4,537 | 98.4 | % | ||||||||
Six Months Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Selling, general and administrative expenses | $ | 8,060 | $ | 2,638 | $ | 5,422 | 205.5 | % |
Six Months Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Depreciation and amortization | $ | 2,864 | $ | 2,163 | $ | 701 | 32.4 | % |
Six Months Ended June 30, | Increase (Decrease) | |||||||||||||||
$ in thousands | 2021 | 2020 | $ Amount | % Change | ||||||||||||
Interest expense | $ | (368 | ) | $ | — | $ | (368 | ) | N/A | |||||||
Interest expense—related party | (22 | ) | (540 | ) | 518 | N/A | ||||||||||
Gain (loss) on sale of digital assets | 141 | (25 | ) | 166 | N/A | |||||||||||
Other income (expense), net | 6 | (16 | ) | 22 | N/A | |||||||||||
Total other expense, net | $ | (243 | ) | $ | (581 | ) | $ | 338 | -58.2 | % | ||||||
Six Months Ended June 30, | ||||||||
$ in thousands | 2021 | 2020 | ||||||
Income (loss) before income taxes | $ | 6,926 | $ | (2,177 | ) | |||
Provision for income taxes | $ | (2,129 | ) | $ | — | |||
Effective Tax Rate | 30.7 | % | 0.0 | % |
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||||||
$ in thousands | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | ||||||||||||||||
Cryptocurrency mining | $ | 14,064 | $ | 3,341 | $ | 23,061 | $ | 5,630 | ||||||||
Power and capacity | $ | 2,112 | $ | 1,331 | $ | 4,178 | $ | 2,184 | ||||||||
Revenue per MWh | ||||||||||||||||
Cryptocurrency mining | $ | 220 | $ | 106 | $ | 206 | $ | 115 | ||||||||
Power and capacity | $ | 51 | $ | 25 | $ | 51 | $ | 25 | ||||||||
Cost of revenue (exclusive of depreciation and amortization) | ||||||||||||||||
Cryptocurrency mining | $ | 2,754 | $ | 1,362 | $ | 5,150 | $ | 1,939 | ||||||||
Power and capacity | $ | 1,970 | $ | 1,220 | $ | 3,996 | $ | 2,670 | ||||||||
Cost of revenue per MWh (exclusive of depreciation and amortization) | ||||||||||||||||
Cryptocurrency mining | $ | 43 | $ | 43 | $ | 46 | $ | 40 | ||||||||
Power and capacity | $ | 47 | $ | 23 | $ | 49 | $ | 31 | ||||||||
MWh | ||||||||||||||||
Cryptocurrency mining | 63,803 | 31,595 | 112,089 | 48,786 | ||||||||||||
Power and capacity | 41,747 | 53,045 | 82,075 | 86,574 |
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 | 2,667 | 1,064 | 5,531 | 3,227 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | (9,209 | ) | 775 | 971 | 1,301 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 411 | — | 1,474 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Merger and other | 29,847 | — | 31,095 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
128 | — | 128 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 21,177 | $ | 775 | $ | 33,668 | $ | 1,301 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | ||||||||||||||||||||||
$ in thousands | Total | Less than 1 Year | 1 - 3 Years | |||||||||||||||||||||
Notes payable (1) | $ | 43,791 | $ | 20,798 | $ | 22,993 | $ | 42,932 | $ | 25,229 | $ | 17,703 | ||||||||||||
Equipment lease (2) | $ | 680 | $ | 544 | $ | 136 | ||||||||||||||||||
Leases (2) | $ | 943 | $ | 670 | $ | 273 | ||||||||||||||||||
Natural gas commitments (3) | $ | 1,718 | $ | 1,718 | $ | — | $ | 9,187 | $ | 9,187 | $ | — | ||||||||||||
Purchase commitments (4) | $ | 22,471 | $ | 22,471 | $ | — | $ | 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) |
(3) | Represents off balance sheet arrangements to purchase natural gas through March 1, 2022. |
(4) | Represents miner purchase commitments as of |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | |||||||||||||||
$ in thousands | 2021 | 2020 | ||||||||||||||
Net cash provided by operating activities | $ | 9,402 | $ | 695 | $ | 26,666 | $ | 788 | ||||||||
Net cash used in investing activities | (29,581 | ) | (8,913 | ) | (38,644 | ) | (9,302 | ) | ||||||||
Net cash provided by financing activities | 53,017 | — | 58,075 | — | ||||||||||||
Net change in cash and cash equivalents | 32,838 | (8,218 | ) | 46,097 | (8,514 | ) | ||||||||||
Cash and cash equivalents at beginning of year | 5,052 | 11,750 | 5,052 | 11,750 | ||||||||||||
Cash and cash equivalents at end of period | $ | 37,890 | $ | 3,532 | $ | 51,149 | $ | 3,236 | ||||||||
February 2014: | GGH | |
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. | |
Acquisition of Support.com and public listing of our class A common stock. | ||
October 2021: | Subsidiary of Greenidge | |
Department/Function | Employees | |||
Management | 8 | |||
Accounting/Finance | 2 | |||
Administration | 5 | |||
Operations | ||||
TOTALS | ||||
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 ($) | Total ($) | 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 | 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. |
Underwriter | Principal Amount of Notes | |||
B. Riley Securities, Inc. | $ | |||
Total | $ | |||
Price to the Public | Underwriting Discount (1) | Net Proceeds (2) | ||||||||||
Per Note | $ | $ | $ | |||||||||
Total (3) | $ | $ | $ | |||||||||
(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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June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash and cash equivalents | $ | 37,890 | $ | 5,052 | $ | 51,149 | $ | 5,052 | ||||||||
Short term investments | 496 | 0 | ||||||||||||||
Digital assets | 222 | 254 | 421 | 254 | ||||||||||||
Accounts receivable | 369 | 390 | 5,501 | 390 | ||||||||||||
Fuel deposits | 1,297 | 808 | ||||||||||||||
Prepaid expenses | 1,967 | 155 | 5,042 | 155 | ||||||||||||
Emissions credits | 981 | 1,923 | ||||||||||||||
Carbon offset credits | 684 | |||||||||||||||
Miner equipment deposits | 16,523 | 5,959 | ||||||||||||||
Emissions and carbon offset credits | 1,816 | 1,923 | ||||||||||||||
Total current assets | 59,933 | 14,541 | 64,425 | 7,774 | ||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||
Property and equipment, net | 67,346 | 50,686 | 121,532 | 56,645 | ||||||||||||
Right-of-use assets | 1,310 | — | 1,369 | 0 | ||||||||||||
Intangible assets | 22,493 | 0 | ||||||||||||||
Goodwill | 46,349 | 0 | ||||||||||||||
Other long-term assets | 98 | 148 | 2,143 | 148 | ||||||||||||
Total assets | $ | 128,687 | $ | 65,375 | $ | 258,311 | $ | 64,567 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||
Accounts payable | $ | 1,650 | $ | 1,745 | $ | 3,368 | $ | 1,745 | ||||||||
Natural gas payable | 1,088 | 935 | ||||||||||||||
Accrued emissions expense | 814 | 2,082 | 1,674 | 2,082 | ||||||||||||
Income taxes payable | 1,567 | — | ||||||||||||||
Accrued expenses | 3,226 | 547 | 9,566 | 946 | ||||||||||||
Accrued interest expense —related party | — | 20 | ||||||||||||||
Deferred revenue | 40 | 272 | ||||||||||||||
Accrued interest expense—related party | 0 | 20 | ||||||||||||||
Notes payable, current portion | 11,499 | 3,273 | 17,994 | 3,273 | ||||||||||||
Notes payable—related party | — | 3,573 | ||||||||||||||
Finance lease obligation, current portion | 570 | — | ||||||||||||||
Notes payable—related party, current portion | 0 | 3,573 | ||||||||||||||
Lease obligations, current portion | 852 | 0 | ||||||||||||||
Total current liabilities | 20,454 | 12,447 | 33,454 | 11,639 | ||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||
Deferred tax liability | 482 | — | 3,959 | 0 | ||||||||||||
Notes payable, net of current portion | 7,064 | 1,364 | 7,369 | 1,364 | ||||||||||||
Finance lease obligation, net of current portion | 409 | — | ||||||||||||||
Lease obligations, net of current portion | 111 | 0 | ||||||||||||||
Asset retirement obligations | 2,345 | 2,277 | 2,380 | 2,277 | ||||||||||||
Environmental trust liability | 4,994 | 4,927 | 4,994 | 4,927 | ||||||||||||
Other long-term liabilities | 242 | 0 | ||||||||||||||
Total liabilities | 35,748 | 21,015 | 52,509 | 20,207 | ||||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 11) | 0 | |||||||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 13) | ||||||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||||||
Preferred stock, par value $0.0001, 20,000,000 and 0 shares authorized, 1,620,000 and 0 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 1 | 0— | ||||||||||||||
Common stock, par value $0.0001, 500,000,000 and 0 shares authorized, 28,320,000 and 0 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 3 | 0— | ||||||||||||||
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 | 113,054 | 0— | 233,813 | 0 | ||||||||||||
Members’ capital, 0 and 49,978 units outstanding as of June 30, 202 1 and December 31, 2020, respectively | — | 69,276 | ||||||||||||||
Members’ capital, 0 and 49,978 units outstanding as of September 30, 2021 and December 31, 2020, respectively | 0 | 69,276 | ||||||||||||||
Accumulated deficit | (20,119 | ) | (24,916 | ) | (28,015 | ) | (24,916 | ) | ||||||||
Total stockholders’ equity | 92,939 | 44,360 | 205,802 | 44,360 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 128,687 | $ | 65,375 | $ | 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 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
REVENUE: | ||||||||||||||||
Cryptocurrency mining | $ | 14,064 | $ | 3,341 | $ | 23,061 | $ | 5,630 | ||||||||
Power and capacity | 2,112 | 1,331 | 4,178 | 2,184 | ||||||||||||
Total revenue | 16,176 | 4,672 | 27,239 | 7,814 | ||||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||||
Cost of revenue—cryptocurrency mining (exclusive of depreciation and amortization shown below) | 2,754 | 1,362 | 5,150 | 1,939 | ||||||||||||
Cost of revenue—power and capacity (exclusive of depreciation and amortization shown below) | 1,970 | 1,220 | 3,996 | 2,670 | ||||||||||||
Selling, general and administrative | 4,565 | 1,189 | 8,060 | 2,638 | ||||||||||||
Depreciation and amortization | 1,603 | 1,130 | 2,864 | 2,163 | ||||||||||||
Total operating costs and expenses | 10,892 | 4,901 | 20,070 | 9,410 | ||||||||||||
Income (loss) from operations | 5,284 | (229 | ) | 7,169 | (1,596 | ) | ||||||||||
OTHER INCOME (EXPENSE), NET: | ||||||||||||||||
Interest expense | (202 | ) | — | (368 | ) | — | ||||||||||
Interest expense—related party | — | (273 | ) | (22 | ) | (540 | ) | |||||||||
Loss (gain) on sale of digital assets | (154 | ) | (44 | ) | 141 | (25 | ) | |||||||||
Other (expense) income, net | (13 | ) | (25 | ) | 6 | (16 | ) | |||||||||
Total other expense, net | (369 | ) | (342 | ) | (243 | ) | (581 | ) | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 4,915 | (571 | ) | 6,926 | (2,177 | ) | ||||||||||
Provision for income taxes | (1,397 | ) | — | (2,129 | ) | — | ||||||||||
NET INCOME (LOSS) AND TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 3,518 | $ | (571 | ) | $ | 4,797 | $ | (2,177 | ) | ||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.10 | $ | 0.15 | ||||||||||||
Diluted | $ | 0.08 | $ | 0.12 |
Additional Paid—In Capital | Common Units | Preferred Units | Senior Priority Units | Total Members’ Capital | Accumulated Deficit | Total | 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 | 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 | Shares | Amount | Shares | Amount | Total Members’ Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | — | $ | — | — | $ | — | $ | — | 750 | $ | — | 39,228 | $ | 39,074 | 10,000 | $ | 30,202 | $ | 69,276 | $ | (24,916 | ) | $ | 44,360 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 750 | $ | 0 | 39,228 | $ | 39,074 | 10,000 | $ | 30,202 | $ | 69,276 | $ | (24,916 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for GGHI Common Stock | — | — | 26,800,300 | 3 | 72,888 | — | — | (39,228 | ) | (39,074 | ) | (10,000 | ) | (30,202 | ) | (69,276 | ) | — | 3,615 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution of GGH Common Units for GGHI Common Stock | — | — | 1,199,700 | — | — | (750 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of preferred stock, net of stock issuance costs of $3,387 | 1,620,000 | 1 | — | — | 37,112 | — | — | — | — | — | — | — | — | 37,112 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | — | — | 656 | — | — | — | — | — | — | — | — | 656 | — | — | — | — | 1,063 | — | — | — | — | — | — | — | — | 1,063 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from stock options exercised | — | — | 160,000 | — | 1,000 | — | — | — | — | — | — | — | — | 1,000 | — | — | 160,000 | — | 1,000 | — | — | — | — | — | — | — | — | 1,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued to purchase miners | — | — | 160,000 | — | 991 | — | — | — | — | — | — | — | — | 991 | — | — | 160,000 | — | 991 | — | — | — | — | — | — | — | — | 991 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | — | — | 1,279 | 1,279 | — | — | — | — | — | — | — | — | — | — | — | — | 4,797 | 4,797 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 1,620,000 | $ | 1 | 28,320,000 | $ | 3 | $ | 112,647 | — | $ | — | — | $ | — | — | $ | — | $ | — | $ | (23,637 | ) | $ | 89,014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | — | — | 407 | — | — | — | — | — | — | — | — | 407 | — | — | — | — | 411 | — | — | — | — | — | — | — | — | 411 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | — | — | 3,518 | 3,518 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | (7,896 | ) | (7,896 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 1,620,000 | $ | 1 | 28,320,000 | $ | 3 | $ | 113,054 | — | $ | — | — | $ | — | — | $ | — | $ | — | $ | (20,119 | ) | $ | 92,939 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | Accumulated Deficit | Total | 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 | 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 | Shares | Amount | Shares | Amount | Total Members’ Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | — | $ | — | — | $ | — | $ | — | 750 | $ | — | 54,228 | $ | 54,074 | — | $ | — | $ | 54,074 | $ | (20,350 | ) | $ | 33,724 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 750 | $ | 0 | 54,228 | $ | 54,074 | 0 | $ | 0 | $ | 54,074 | $ | (20,350 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | (1,606 | ) | (1,606 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (2,177 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | — | $ | — | — | $ | — | $ | — | 750 | $ | — | 54,228 | $ | 54,074 | — | $ | — | $ | 54,074 | $ | (21,956 | ) | $ | 32,118 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | — | — | — | — | — | — | — | — | — | — | (571 | ) | (571 | ) | — | — | — | — | — | — | — | — | — | — | — | — | (289 | ) | (289 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | — | $ | — | — | $ | — | $ | — | 750 | $ | — | 54,228 | $ | 54,074 | — | $ | — | $ | 54,074 | $ | (22,527 | ) | $ | 31,547 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 750 | $ | 0 | 54,228 | $ | 54,074 | 0 | $ | 0 | $ | 54,074 | $ | (22,816 | ) | $ | 31,258 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income (loss) | $ | 4,797 | $ | (2,177 | ) | |||||||||||
Adjustments to reconcile net income (loss) to net 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 | 2,864 | 2,163 | 5,531 | 3,227 | ||||||||||||
Deferred income taxes | 482 | — | (2,945 | ) | 0 | |||||||||||
Amortization of debt issuance costs | 54 | 0 | ||||||||||||||
Accretion of asset retirement obligations | 68 | 74 | 103 | 108 | ||||||||||||
(Loss) gain on sale of digital assets | (141 | ) | 25 | |||||||||||||
Stock-based compensation expense | 1,063 | — | 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 | — | 67 | 0 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 21 | 10 | 272 | (165 | ) | |||||||||||
Emissions credits/carbon offsets | 258 | 3 | ||||||||||||||
Emissions and carbon offset credits | 107 | (336 | ) | |||||||||||||
Prepaids and other assets | (2,129 | ) | (1,458 | ) | (5,955 | ) | (965 | ) | ||||||||
Accounts payable | (870 | ) | (190 | ) | (455 | ) | (1,062 | ) | ||||||||
Income taxes payable | 1,567 | — | ||||||||||||||
Accrued emissions | (1,268 | ) | 473 | (408 | ) | 941 | ||||||||||
Accrued expenses | 2,623 | 1,772 | 5,315 | 1,506 | ||||||||||||
Net cash flow provided by operating activities | 9,402 | 695 | 26,666 | 788 | ||||||||||||
CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of property and equipment | (19,068 | ) | (9,340 | ) | ||||||||||||
Deposits on miner equipment | (10,564 | ) | — | |||||||||||||
Purchases of and deposits for property and equipment | (65,757 | ) | (9,738 | ) | ||||||||||||
Cash received in Merger | 27,113 | 0 | ||||||||||||||
Project deposit | 51 | 427 | 0 | 436 | ||||||||||||
Net cash flow used in investing activities | (29,581 | ) | (8,913 | ) | (38,644 | ) | (9,302 | ) | ||||||||
CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||||||||||
Proceeds from issuance of preferred stock, net of issuance costs | 37,112 | — | 37,113 | 0 | ||||||||||||
Proceeds from stock options exercised | 1,000 | — | 1,000 | 0 | ||||||||||||
Proceeds from notes payable | 15,686 | — | ||||||||||||||
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 | (1,760 | ) | — | (4,440 | ) | 0 | ||||||||||
Proceeds from finance lease obligations | 1,404 | — | ||||||||||||||
Repayments of capital lease obligations | (425 | ) | — | |||||||||||||
Repayments of finance lease obligations | (569 | ) | 0 | |||||||||||||
Net cash flow provided by financing activities | 53,017 | — | 58,075 | 0 | ||||||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | 32,838 | (8,218 | ) | 46,097 | (8,514 | ) | ||||||||||
CASH AND CASH EQUIVALENTS—beginning of year | 5,052 | 11,750 | 5,052 | 11,750 | ||||||||||||
CASH AND CASH EQUIVALENTS—end of period | $ | 37,890 | $ | 3,532 | $ | 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. |
Estimated Useful Lives | June 30, 2021 | December 31, 2020 | ||||||||||
Plant infrastructure | 15 – 39 years | $ | 34,216 | $ | 33,944 | |||||||
Miners | 5 years | 24,146 | 10,236 | |||||||||
Miner facility infrastructure | 15 years | 13,804 | 8,791 | |||||||||
Land | N/A | 300 | 300 | |||||||||
Equipment | 5 years | 211 | 211 | |||||||||
Software | 3 years | 186 | 66 | |||||||||
Coal ash impoundment | 4 years | 2,135 | 2,135 | |||||||||
Construction in process | N/A | 4,104 | 3,989 | |||||||||
79,102 | 59,672 | |||||||||||
Less: Accumulated depreciation | (11,756 | ) | (8,986 | ) | ||||||||
$ | 67,346 | $ | 50,686 | |||||||||
$ 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 | ) |
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 | |||||||||||||||||||||
Interest Rate | Initial Financing | Balance as of: | ||||||||||||||||||||||
Note | Loan Date | Maturity Date | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||
A | December 2020 | June 2022 | 17.0 | % | $ | 4,482 | $ | 2,739 | $ | 4,233 | ||||||||||||||
B | December 2020 | June 2022 | 17.0 | % | 428 | 261 | 404 | |||||||||||||||||
C | March 2021 | November 2022 | 17.0 | % | 2,229 | 2,105 | — | |||||||||||||||||
D | April 2021 | December 2022 | 17.0 | % | 4,012 | 4,012 | — | |||||||||||||||||
E – H | May 2021 | October 2023 | 15.0 | % | 9,446 | 9,446 | — | |||||||||||||||||
18,563 | 4,637 | |||||||||||||||||||||||
Less: Current portion | (11,499 | ) | (3,273 | ) | ||||||||||||||||||||
$ | 7,064 | $ | 1,364 | |||||||||||||||||||||
RELATED PARTY TRANSACTIONS |
8. | RELATED PARTY TRANSACTIONS (Continued) |
June 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 | |||||
$ 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) |
STOCKHOLDERS’ EQUITY |
9. | STOCKHOLDERS’ EQUITY (Continued) |
STOCKHOLDERS’ EQUITY (Continued) |
10. | EQUITY BASED COMPENSATION |
RSUs | Weighted Average Grant Date Fair Value | RSUs | Weighted Average Grant Date Fair Value | |||||||||||||
Unvested at December 31, 2020 | 0 | $ | 0 | 0 | $ | 0 | ||||||||||
Granted | 616,920 | 6.25 | 616,920 | 6.25 | ||||||||||||
Unvested at June 30, 2021 | 616,920 | 6.25 | ||||||||||||||
Unvested at September 30, 2021 | 616,920 | 6.25 |
EQUITY BASEDCOMPENSATION (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 |
Options | Weighted Average Exercise per Share | Weighted Average Remaining Contractual Life (in years) | ||||||||||
Outstanding at December 31, 2020 | 0 | $ | 0 | — | ||||||||
Granted | 716,968 | 6.01 | 10.00 | |||||||||
Exercised | (160,000 | ) | 6.25 | 0.10 | ||||||||
Forfeited | (6,000 | ) | 6.25 | 9.70 | ||||||||
Outstanding at June 30, 202 1 | 550,968 | 6.01 | 9.68 | |||||||||
Options vested and expected to vest as of June 30, 2021 | 550,968 | 6.01 | 9.68 | |||||||||
Options vested and exercisable as of June 30, 2021 | 257,484 | $ | 5.80 | 9.64 |
Weighted Average fair value of grants | $ | 1.60 | ||
Expected volatility | 35 | % | ||
Expected term (years) | 4.5 | |||
Risk-free interest rate | 0.4 | % | ||
Expected dividend yield | 0.0 | % |
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 |
EARNINGS PER SHARE |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Numerator | ||||||||
Net income | $ | 3,518 | $ | 4,797 | ||||
Less: Net income attributable to the member units before the reorganization | (648 | ) | (648 | ) | ||||
Net income attributable to Greenidge | $ | 2,870 | $ | 4,149 | ||||
Denominator | ||||||||
Basic weighted average shares outstanding | 28,320 | 28,283 | ||||||
Dilutive effect of equity awards | 625 | 482 | ||||||
Dilutive effect of convertible preferred stock | 6,480 | 6,480 | ||||||
Diluted weighted average shares outstanding | 35,425 | 35,245 | ||||||
Earnings per share | ||||||||
Basic | $ | 0.10 | $ | 0.15 | ||||
Diluted | $ | 0.08 | $ | 0.12 |
$ 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 |
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 | — | ||||||
Note payable, current portion | 3,273 | — | ||||||
Notes payable—related party, current portion | 3,573 | 5,000 | ||||||
Total current liabilities | 12,447 | 8,008 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 8) | 0 | 0 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Accrued emissions expense, net of current portion | — | 302 | ||||||
Accrued interest expense—related party, net of current portion | — | 278 | ||||||
Notes payable, net of current portion | 1,364 | — | ||||||
Notes payable—related party, net of current portion | — | 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 | |||||||
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) |
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 |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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) |
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 |
June 30, 2021 | December 31, 2020 | December 31, | ||||||||||||||
(unaudited) | 2020 | 2019 | ||||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 32,295 | $ | 13,526 | $ | 13,526 | $ | 10,087 | ||||||||
Short-term investments | 6,201 | 16,441 | 16,441 | 16,327 | ||||||||||||
Accounts receivable, net | 5,470 | 6,975 | 6,975 | 9,398 | ||||||||||||
Prepaid expenses and other current assets | 601 | 670 | 670 | 728 | ||||||||||||
Total current assets | 44,567 | 37,612 | 37,612 | 36,540 | ||||||||||||
Property and equipment, net | 1,043 | 1,115 | 1,115 | 533 | ||||||||||||
Right-of-use | 12 | 61 | ||||||||||||||
Intangible assets | — | 250 | ||||||||||||||
Right of use assets, net | 61 | 68 | ||||||||||||||
Other assets | 383 | 478 | 478 | 649 | ||||||||||||
Total assets | $ | 46,005 | $ | 39,266 | ||||||||||||
TOTAL ASSETS | $ | 39,266 | $ | 38,040 | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 242 | $ | 366 | $ | 366 | $ | 277 | ||||||||
Accrued compensation | 2,192 | 1,735 | 1,735 | 1,610 | ||||||||||||
Other accrued liabilities | 1,216 | 879 | 879 | 940 | ||||||||||||
Short-term lease liability | 12 | 58 | 58 | 61 | ||||||||||||
Short-term deferred revenue | 1,189 | 881 | 881 | 1,193 | ||||||||||||
Total current liabilities | 4,851 | 3,919 | 3,919 | 4,081 | ||||||||||||
Other long-term liabilities | 907 | 911 | 911 | 792 | ||||||||||||
Total liabilities | 5,758 | 4,830 | 4,830 | 4,873 | ||||||||||||
Commitments and contingencies (Note 3) | ||||||||||||||||
Stockholders’ equity: | ||||||||||||||||
Common stock; par value $0.0001, 50,000 shares authorized; 24,572 issued and 24,220 outstanding at June 30, 2021 and 19,973 issued and 19,490 outstanding at December 31, 2020 | 3 | 2 | ||||||||||||||
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 | 259,620 | 250,954 | 250,954 | 250,092 | ||||||||||||
Treasury stock, at cost (483 shares at March 31, 2021 and December 31, 2020) | (5,297 | ) | (5,297 | ) | ||||||||||||
Treasury stock, at cost (483 shares at December 31, 2020 and 2019) | (5,297 | ) | (5,297 | ) | ||||||||||||
Accumulated other comprehensive loss | (2,482 | ) | (2,419 | ) | (2,419 | ) | (2,380 | ) | ||||||||
Accumulated deficit | (211,597 | ) | (208,804 | ) | (208,804 | ) | (209,250 | ) | ||||||||
Total stockholders’ equity | 40,247 | 34,436 | 34,436 | 33,167 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 46,005 | $ | 39,266 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 39,266 | $ | 38,040 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Years Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2020 | 2019 | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Services | $ | 7,979 | $ | 10,606 | $ | 17,117 | $ | 22,117 | $ | 42,079 | $ | 59,545 | ||||||||||||
Software and other | 533 | 428 | 1,026 | 866 | 1,785 | 3,788 | ||||||||||||||||||
Total revenue | 8,512 | 11,034 | 18,143 | 22,983 | 43,864 | 63,333 | ||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||
Cost of services | 5,401 | 7,136 | 11,406 | 14,821 | 28,697 | 46,714 | ||||||||||||||||||
Cost of software and other | 91 | 36 | 181 | 65 | 224 | 151 | ||||||||||||||||||
Total cost of revenue | 5,492 | 7,172 | 11,587 | 14,886 | 28,921 | 46,865 | ||||||||||||||||||
Gross profit | 3,020 | 3,862 | 6,556 | 8,097 | 14,943 | 16,468 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Engineering and IT | 555 | 968 | 1,479 | 2,008 | 3,655 | 4,078 | ||||||||||||||||||
Sales and marketing | 334 | 517 | 759 | 1,330 | 2,362 | 1,760 | ||||||||||||||||||
General and administrative | 2,980 | 1,904 | 7,186 | 3,957 | 8,874 | 7,679 | ||||||||||||||||||
Total operating expenses | 3,869 | 3,389 | 9,424 | 7,295 | 14,891 | 13,517 | ||||||||||||||||||
Income (loss) from operations | (849 | ) | 473 | (2,868 | ) | 802 | ||||||||||||||||||
Income from operations | 52 | 2,951 | ||||||||||||||||||||||
Interest income and other, net | 75 | 173 | 117 | 257 | 496 | 1,049 | ||||||||||||||||||
Income (loss) before income taxes | (774 | ) | 646 | (2,751 | ) | 1,059 | ||||||||||||||||||
Income before income taxes | 548 | 4,000 | ||||||||||||||||||||||
Income tax provision | 25 | 29 | 42 | 78 | 102 | 154 | ||||||||||||||||||
Net income (loss) | $ | (799 | ) | $ | 617 | $ | (2,793 | ) | $ | 981 | ||||||||||||||
Net income | $ | 446 | $ | 3,846 | ||||||||||||||||||||
Net income (loss) per share—basic and diluted | $ | (0.03 | ) | $ | 0.03 | $ | (0.13 | ) | $ | 0.05 | ||||||||||||||
Net income per share—basic and diluted | $ | 0.02 | $ | 0.20 | ||||||||||||||||||||
Weighted average common shares outstanding—basic | 24,150 | 19,054 | 22,189 | 19,060 | 19,192 | 18,977 | ||||||||||||||||||
Weighted average common shares outstanding—diluted | 24,150 | 19,352 | 22,189 | 19,336 | 19,369 | 19,026 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) | $ | (799 | ) | $ | 617 | $ | (2,793 | ) | $ | 981 | ||||||
Other comprehensive income (loss): | ||||||||||||||||
Change in foreign currency translation adjustment | (59 | ) | (11 | ) | (60 | ) | (222 | ) | ||||||||
Change in net unrealized gain (loss) on investments | 1 | 38 | (3 | ) | 37 | |||||||||||
Other comprehensive income (loss) | (58 | ) | 27 | (63 | ) | (185 | ) | |||||||||
Comprehensive income (loss) | $ | (857 | ) | $ | 644 | $ | (2,856 | ) | $ | 796 | ||||||
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 | ||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Shares | ||||||||||||||||||||||
Balances at March 31, 2020 | 19,054 | $ | 2 | $ | 250,206 | $ | (5,297 | ) | $ | (2,592 | ) | $ | (208,886 | ) | $ | 33,433 | ||||||||||||
Net income | — | — | — | — | — | 617 | 617 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | 27 | — | 27 | |||||||||||||||||||||
Issuance of common stock upon exercise of stock options for cash | 1 | — | — | — | — | — | — | |||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 24 | — | 17 | — | — | — | 17 | |||||||||||||||||||||
Stock-based compensation expense | — | — | 118 | — | — | — | 118 | |||||||||||||||||||||
Balances at June 30, 2020 | 19,079 | $ | 2 | $ | 250,341 | $ | (5,297 | ) | $ | (2,565 | ) | $ | (208,269 | ) | $ | 34,212 | ||||||||||||
Balances at March 31, 2021 | 24,089 | $ | 3 | $ | 259,401 | $ | (5,297 | ) | $ | (2,424 | ) | $ | (210,798 | ) | $ | 40,885 | ||||||||||||
Net loss | — | — | — | — | — | (799 | ) | (799 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | (58 | ) | — | (58 | ) | |||||||||||||||||||
Issuance of common stock upon exercise of stock options & RSU releases & employee share purchases | 131 | — | 66 | — | — | — | 66 | |||||||||||||||||||||
Stock-based compensation expense | — | — | 153 | 0 | 0 | 153 | ||||||||||||||||||||||
Balances at June 30, 2021 | 24,220 | $ | 3 | $ | 259,620 | $ | (5,297 | ) | $ | (2,482 | ) | $ | (211,597 | ) | $ | 40,247 | ||||||||||||
Common Stock | 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 | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | 19,054 | $ | 2 | $ | 250,092 | $ | (5,297 | ) | $ | (2,380 | ) | $ | (209,250 | ) | $ | 33,167 | 19,054 | $ | 2 | $ | 250,092 | $ | (5,297 | ) | $ | (2,380 | ) | $ | (209,250 | ) | $ | 33,167 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 981 | 981 | — | — | — | — | — | 446 | 446 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (185 | ) | — | (185 | ) | — | — | — | — | (39 | ) | — | (39 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options for cash | 1 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options & RSU releases | 392 | — | 191 | — | — | — | 191 | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 24 | — | 17 | — | — | — | 17 | 44 | — | 37 | — | — | — | 37 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 232 | — | — | — | 232 | — | — | 634 | — | — | — | 634 | ||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2020 | 19,079 | $ | 2 | $ | 250,341 | $ | (5,297 | ) | $ | (2,565 | ) | $ | (208,269 | ) | $ | 34,212 | ||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | 19,490 | $ | 2 | $ | 250,954 | $ | (5,297 | ) | $ | (2,419 | ) | $ | (208,804 | ) | $ | 34,436 | 19,490 | $ | 2 | $ | 250,954 | $ | (5,297 | ) | $ | (2,419 | ) | $ | (208,804 | ) | $ | 34,436 | ||||||||||||||||||||||||
Net loss | — | — | — | — | — | (2,793 | ) | (2,793 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (63 | ) | — | (63 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options & RSU releases & employee share purchases | 820 | — | 1,063 | — | — | — | 1,063 | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock per Greenidge Merger Agreement | 3,910 | 1 | 7,233 | — | — | — | 7,234 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 370 | — | — | — | 370 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | 24,220 | $ | 3 | $ | 259,620 | $ | (5,297 | ) | $ | (2,482 | ) | $ | (211,597 | ) | $ | 40,247 | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||
2021 | 2020 | 2020 | 2019 | |||||||||||||
Operating Activities: | ||||||||||||||||
Net income (loss) | $ | (2,793 | ) | $ | 981 | |||||||||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||||||||||
Net income | $ | 446 | $ | 3,846 | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation | 187 | 145 | 314 | 294 | ||||||||||||
Amortization of premiums and discounts on investments | (45 | ) | 34 | 65 | 83 | |||||||||||
Stock-based compensation | 370 | 232 | 634 | 304 | ||||||||||||
Impairment of intangible asset | 250 | — | ||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable, net | 1,505 | 2,149 | 2,423 | 2,893 | ||||||||||||
Prepaid expenses and other current assets | 61 | 129 | 41 | 282 | ||||||||||||
Other long-term assets | 139 | (163 | ) | 142 | 40 | |||||||||||
Accounts payable | (128 | ) | 41 | 87 | (92 | ) | ||||||||||
Accrued compensation | 428 | 961 | 120 | (1,804 | ) | |||||||||||
Accrued legal settlement | — | (10,000 | ) | |||||||||||||
Other accrued liabilities | 275 | (188 | ) | (46 | ) | 26 | ||||||||||
Other long-term liabilities | (16 | ) | (82 | ) | 104 | 18 | ||||||||||
Deferred revenue | 309 | (167 | ) | (312 | ) | 58 | ||||||||||
Net cash provided by operating activities | 292 | 4,072 | ||||||||||||||
Net cash provided by (used in) operating activities | 4,268 | (4,052 | ) | |||||||||||||
Investing Activities: | ||||||||||||||||
Purchases of property and equipment | (115 | ) | (830 | ) | (896 | ) | (124 | ) | ||||||||
Purchases of investments | (400 | ) | — | |||||||||||||
Disposal of property and equipment | — | 3 | ||||||||||||||
Purchase of investments | (13,375 | ) | (34,898 | ) | ||||||||||||
Proceeds from sale of investments | — | 9,766 | ||||||||||||||
Maturities of investments | 10,687 | 7,869 | 13,200 | 33,267 | ||||||||||||
Net cash provided by investing activities | 10,172 | 7,039 | ||||||||||||||
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 | ||||||||||||||
Financing Activities: | ||||||||||||||||
Proceeds from employee stock purchase plan | 15 | 17 | ||||||||||||||
Proceeds from exercise of stock options | 1,048 | — | ||||||||||||||
Proceeds from Greenidge transaction stock issuance | 7,234 | — | ||||||||||||||
Net cash provided by financing activities | 8,297 | 17 | ||||||||||||||
Net cash provided by (used in) financing activities | 228 | (19,006 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 8 | 18 | 14 | (51 | ) | |||||||||||
Net increase in cash and cash equivalents | 18,769 | 11,146 | ||||||||||||||
Cash and cash equivalents at beginning of period | 13,526 | 10,087 | ||||||||||||||
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 period | $ | 32,295 | $ | 21,233 | ||||||||||||
Cash and cash equivalents at end of year | $ | 13,526 | $ | 10,087 | ||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Income taxes paid | $ | 41 | $ | 2 | ||||||||||||
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 | ||
Balance at December 31, 2020 | $ | 881 | ||
Deferred revenue | 495 | |||
Recognition of unearned revenue | (187 | ) | ||
Balance at June 30, 2021 | $ | 1,189 | ||
Balance at December 31, 2019 | $ | 1,193 | ||
Deferred revenue | 1,452 | |||
Recognition of unearned revenue | (1,619 | ) | ||
Balance at June 30, 2020 | $ | 1,026 |
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, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 446 | $ | 3,846 | ||||
Basic: | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Basic earnings per share | $ | 0.02 | $ | 0.20 | ||||
Diluted | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Effect of dilutive securities: | ||||||||
Stock options and restricted stock units | 177 | 49 | ||||||
Diluted weighted-average commons shares outstanding | 19,369 | 19,026 | ||||||
Diluted earnings per share | $ | 0.02 | $ | 0.20 | ||||
As of June 30, 2021 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Cash | $ | 8,347 | $ | — | $ | — | $ | 8,347 | ||||||||
Money market funds | 23,948 | — | — | 23,948 | ||||||||||||
Certificates of deposit | 507 | — | — | 507 | ||||||||||||
Commercial paper | 775 | — | — | 775 | ||||||||||||
Corporate notes and bonds | 4,419 | — | 1 | 4,420 | ||||||||||||
U.S. government treasury | 500 | — | — | 500 | ||||||||||||
Total | $ | 38,496 | $ | — | $ | 1 | $ | 38,497 | ||||||||
Classified as: | ||||||||||||||||
Cash and cash equivalents | 32,295 | — | — | 32,295 | ||||||||||||
Short-term investments | 6,200 | — | 1 | 6,201 | ||||||||||||
Total | $ | 38,495 | $ | — | $ | 1 | $ | 38,496 | ||||||||
As of December 31, 2020 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
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 | ||||||||||||
Total | $ | 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 | |||||||||||
Total | $ | 29,964 | $ | 4 | $ | (1 | ) | $ | 29,967 | |||||||
June 30, 2021 | December 31, 2020 | |||||||
Due within one year | $ | 5,701 | $ | 13,248 | ||||
Due within two years | 500 | 3,193 | ||||||
$ | 6,201 | $ | 16,441 | |||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) | $ | (799 | ) | $ | 617 | $ | (2,793 | ) | $ | 981 | ||||||
Earnings per share—basic and diluted | $ | (0.03 | ) | $ | 0.03 | $ | (0.13 | ) | $ | 0.05 | ||||||
Weighted-average shares of common stock outstanding—basic | 24,150 | 19,054 | 22,189 | 19,060 | ||||||||||||
Weighted-average shares of common stock outstanding—diluted | 24,150 | 19,352 | 22,189 | 19,336 |
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 | ||||
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, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 446 | $ | 3,846 | ||||
Basic: | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Basic earnings per share | $ | 0.02 | $ | 0.20 | ||||
Diluted | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Effect of dilutive securities: | ||||||||
Stock options and restricted stock units | 177 | 49 | ||||||
Diluted weighted-average commons shares outstanding | 19,369 | 19,026 | ||||||
Diluted earnings per share | $ | 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 | ||||
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, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 446 | $ | 3,846 | ||||
Basic: | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Basic earnings per share | $ | 0.02 | $ | 0.20 | ||||
Diluted | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Effect of dilutive securities: | ||||||||
Stock options and restricted stock units | 177 | 49 | ||||||
Diluted weighted-average commons shares outstanding | 19,369 | 19,026 | ||||||
Diluted earnings per share | $ | 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 |
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 | ||||
Number of Shares (in thousands) | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding at December 31, 2020 | 2,629 | $ | 1.64 | 8.79 | $ | 1,605 | ||||||||||
Granted | 40 | 2.39 | — | |||||||||||||
Exercised | (633 | ) | 1.68 | — | ||||||||||||
Forfeited | (336 | ) | 1.71 | — | ||||||||||||
Outstanding at June 30, 2021 | 1,700 | $ | 1.62 | 8.65 | $ | 3,821 | ||||||||||
Exercisable at June 30, 2021 | 327 | $ | 1.61 | 6.83 | 790 | |||||||||||
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 | ||||||||
Number of Shares (in thousands) | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding at December 31, 2020 | 131 | $ | 2.05 | 0.7 | $ | 287 | ||||||||||
Granted | 100 | 2.15 | ||||||||||||||
Released | (100 | ) | $ | 2.15 | ||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at June 30, 2021 | 131 | 2.05 | 0.2 | $ | 504 | |||||||||||
Exercisable at June 30, 2021 | — | — | — | |||||||||||||
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, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 446 | $ | 3,846 | ||||
Basic: | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Basic earnings per share | $ | 0.02 | $ | 0.20 | ||||
Diluted | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Effect of dilutive securities: | ||||||||
Stock options and restricted stock units | 177 | 49 | ||||||
Diluted weighted-average commons shares outstanding | 19,369 | 19,026 | ||||||
Diluted earnings per share | $ | 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 |
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, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 446 | $ | 3,846 | ||||
Basic: | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Basic earnings per share | $ | 0.02 | $ | 0.20 | ||||
Diluted | ||||||||
Weighted-average common shares outstanding | 19,192 | 18,977 | ||||||
Effect of dilutive securities: | ||||||||
Stock options and restricted stock units | 177 | 49 | ||||||
Diluted weighted-average commons shares outstanding | 19,369 | 19,026 | ||||||
Diluted earnings per share | $ | 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 |
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 | ||||||||||
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 | |||||||
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 |
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 | ||||||
Amount to be paid | ||||
SEC Registration Fee | $ | 2,665.13 | ||
FINRA filing fee | ||||
Nasdaq listing fees and expenses | ||||
Accounting fees and expenses | ||||
Legal fees and expenses | ||||
Printing expenses | ||||
Road show expenses | ||||
Trustee fees and expenses | ||||
Total | $ | |||
Amount to be paid | ||||
SEC Registration Fee | $ | 4,264.20 | ||
FINRA filing fee | 17,750.00 | |||
Nasdaq listing fees and expenses | 17,500.00 | |||
Accounting fees and expenses | 100,000.00 | |||
Legal fees and expenses | 475,000.00 | |||
Printing expenses | 75,000.00 | |||
Road show expenses | 8,500.00 | |||
Trustee fees and expenses | 10,000.00 | |||
Total | $ | 708,014.20 | ||
Exhibit No. | Description | |
10.2 † | Form of Stock Option Agreement for Greenidge Generation Holdings Inc. 2021 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-4 filed on May 4, 2021) | |
10.3 † | Form of Restricted Stock Award Agreement for Greenidge Generation Holdings Inc. 2021 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to the Registration Statement on Form S-4 filed on May 4, 2021) | |
10.4 † | Form of Restricted Stock Unit Award Agreement for the Greenidge Generation Holdings Inc. 2021 Equity Incentive Plan (incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q filed on November 15, 2021) | |
10.5 | Agreement between Greenidge Generation and Empire Pipeline Inc. (incorporated by reference to Exhibit 10.7 to the Registration Statement on Form S-4 filed on June 25, 2021) | |
| Purchase Agreement, dated as of September 15, 2021, between Greenidge Generation Holdings Inc. and B. Riley Principal Capital, LLC (incorporated by reference to Exhibit 10.1 to the Report on Form 8-K furnished on September 15, 2021) | |
| Registration Rights Agreement, dated as of September 15, 2021, between Greenidge Generation Holdings Inc. and B. Riley Principal Capital, LLC (incorporated by reference to Exhibit 10.2 to the Report on Form 8-K furnished on September 15, 2021) | |
10.8+ | Purchase and Sale Agreement, dated as of October 21, 2021, between LSC Communications MCL LLC and 300 Jones Road LLC (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed on November 15, 2021) | |
10.9 † | Form of Indemnification Agreement with Directors and Officers of Greenidge Generation Holdings Inc. (incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q filed on November 15, 2021) | |
10.10 † | Employment Agreement, dated November 12, 2021, between Greenidge Generation Holdings Inc. and Timothy Rainey (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed on November 15, 2021) | |
10.11 † | Executive Employment Agreement, dated November 12, 2021, between Greenidge Generation Holdings Inc. and Robert Loughran (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed on November 15, 2021) | |
21.1 | Subsidiaries of Greenidge Generation Holdings Inc. (incorporated by reference to Exhibit 21.1 to the Registration Statement on Form S-1 filed on September 1, 2021) | |
23.1* | Consent of Plante & Moran, PLLC | |
23.2* | Consent of Armanino LLP | |
23.3** | Consent of Shearman & Sterling LLP (included in Exhibit 5.1) | |
24.1* | Power of Attorney | |
25.1* | Form T-1 Statement of Eligibility under Trust Indenture Act of 1939, as amended, of | |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because iXBRL tags are embedded within the Inline XBRL document). | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document |
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) | November 17, 2021 | ||
George (Ted) Rogers | Vice Chairman of the Board of Directors | |||
Timothy Fazio | Chairman of the Board of Directors | November 17, 2021 | ||
Jerome Lay | Director | November 17, 2021 | ||
Andrew M. Bursky | Director | November 17, 2021 |
Signature | Title | Date | ||
Timothy Lowe | Director | November 17, 2021 | ||
Daniel Rothaupt | Director | November 17, 2021 | ||
David Filippelli | Director | November 17, 2021 | ||
Michael Neuscheler | Director | November 17, 2021 |