Remark (MARK) 10-Q 20 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 17, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-33720
Entity Registrant Name	Remark Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-1135689
Entity Address, Address Line One	800 S. Commerce St.
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89106
City Area Code	702
Local Phone Number	701-9514
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		46,139,701
Entity Central Index Key	0001368365
Current Fiscal year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash	$ 239	$ 145
Trade accounts receivable, net	1,155	1,287
Inventory, net	742	750
Deferred cost of revenue	6,178	6,644
Prepaid expense and other current assets	840	614
Total current assets	9,154	9,440
Property and equipment, net	478	189
Operating lease assets	432	517
Other long-term assets	74	90
Total assets	10,138	10,236
Liabilities
Obligations to issue common stock	12,173	10,033
Accrued expense and other current liabilities (including $1,031 and $495 of delinquent payroll taxes as of March 31, 2024 and December 31, 2023, respectively)	12,235	11,921
Contract liability	559	570
Notes payable (including a past due amount of $16,307 as of each of March 31, 2024 and December 31, 2023)	16,475	16,463
Total current liabilities	52,339	49,540
Operating lease liabilities, long-term	235	286
Total liabilities	52,574	49,826
Commitments and contingencies
Stockholders’ Deficit
Preferred stock, $0.001 par value; 1,000,000 shares authorized; zero issued	0	0
Common stock, $0.001 par value; 175,000,000 shares authorized; 41,153,044 and 22,038,855 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively	41	22
Additional paid-in-capital	390,247	379,244
Accumulated other comprehensive loss	(1,263)	(1,186)
Accumulated deficit	(431,461)	(417,670)
Total stockholders’ deficit	(42,436)	(39,590)
Total liabilities and stockholders’ deficit	10,138	10,236
Nonrelated Party
Liabilities
Accounts payable	9,880	9,348
Related Party
Liabilities
Accounts payable	$ 1,017	$ 1,205

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accrued delinquent payroll taxes	$ 1,031	$ 495
Past due amount	$ 16,307	$ 16,307
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	175,000,000	175,000,000
Common stock, shares, issued (in shares)	41,153,044	22,038,855
Common stock, shares, outstanding (in shares)	41,153,044	22,038,855

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 387	$ 826
Cost and expense
Cost of revenue (excluding depreciation and amortization)	350	455
Sales and marketing	300	366
Technology and development	346	169
General and administrative	3,023	2,833
Depreciation and amortization	64	46
Total cost and expense	4,083	3,869
Operating loss	(3,696)	(3,043)
Other income (expense)
Interest expense	(943)	(1,544)
Finance cost related to obligations to issue common stock	(9,147)	(3,576)
Other gain, net	(5)	1
Total other expense, net	(10,095)	(5,119)
Loss before income taxes	(13,791)	(8,162)
Provision for income taxes	0	0
Net loss	(13,791)	(8,162)
Other comprehensive income
Foreign currency translation adjustments	(77)	(318)
Comprehensive loss	$ (13,868)	$ (8,480)
Weighted-average shares outstanding, basic (in shares)	34,173,686	13,004,071
Weighted-average shares outstanding, diluted (in shares)	34,173,686	13,004,071
Net loss per share, basic (in dollars per share)	$ (0.40)	$ (0.63)
Net loss per share, diluted (in dollars per share)	$ (0.40)	$ (0.63)

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Statements of Stockholders’ Deficit - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022		11,539,564
Beginning balance at Dec. 31, 2022	$ (20,425)	$ 12	$ 368,945	$ (859)	$ (388,523)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8,162)				(8,162)
Share-based compensation	143		143
Common stock issued pursuant to agreements with Ionic (in shares)		2,094,428
Common stock issued pursuant to agreements with Ionic	2,985	$ 2	2,983
Foreign currency translation	(318)			(318)
Ending balance (in shares) at Mar. 31, 2023		13,633,992
Ending balance at Mar. 31, 2023	$ (25,777)	$ 14	372,071	(1,177)	(396,685)
Beginning balance (in shares) at Dec. 31, 2023	22,038,855	22,038,855
Beginning balance at Dec. 31, 2023	$ (39,590)	$ 22	379,244	(1,186)	(417,670)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(13,791)				(13,791)
Share-based compensation	15		15
Common stock issued pursuant to agreements with Ionic (in shares)		19,114,189
Common stock issued pursuant to agreements with Ionic	11,007	$ 19	10,988
Foreign currency translation	$ (77)			(77)
Ending balance (in shares) at Mar. 31, 2024	41,153,044	41,153,044
Ending balance at Mar. 31, 2024	$ (42,436)	$ 41	$ 390,247	$ (1,263)	$ (431,461)

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (13,791)	$ (8,162)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	64	46
Share-based compensation	6	156
Cost of extending note payable	0	750
Finance cost related to obligations to issue common stock	9,147	3,576
Accrued interest included in note payable	0	1,139
Provision for doubtful accounts	0	6
Other	14	(9)
Changes in operating assets and liabilities:
Accounts receivable	(120)	84
Inventory	3	(1)
Deferred cost of revenue	467	(22)
Prepaid expense and other assets	(179)	176
Operating lease assets	85	47
Accounts payable, accrued expense and other liabilities	977	(1)
Contract liability	0	162
Operating lease liabilities	(51)	(27)
Net cash used in operating activities	(3,378)	(2,080)
Cash flows from investing activities:
Purchases of property, equipment and software	(332)	(4)
Net cash used in investing activities	(332)	(4)
Cash flows from financing activities:
Proceeds from obligations to issue common stock - ELOC	4,000	1,000
Proceeds from obligations to issue common stock - Debentures	0	1,500
Advances from related parties	335	259
Repayments of advances from related parties	(522)	(355)
Repayments of debt	(9)	(8)
Net cash provided by financing activities	3,804	2,396
Net change in cash	94	312
Cash:
Beginning of period	145	52
End of period	239	364
Supplemental cash flow information:
Cash paid for interest	150	250
Supplemental schedule of non-cash investing and financing activities:
Issuance of common stock - Ionic ELOC and Debentures (Note 11)	11,007	0
Purchase of property and equipment pursuant to notes payable	$ 21	$ 0

ORGANIZATION AND BUSINESS

ORGANIZATION AND BUSINESS	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BUSINESS	NOTE 1. ORGANIZATION AND BUSINESS Organization and Business Remark Holdings, Inc. and its subsidiaries (“Remark”, “we”, “us”, or “our”) constitute a diversified global technology business with leading artificial intelligence (“AI”) and data-analytics solutions. The common stock of Remark Holdings, Inc. is traded in the OTCQX Best market under the ticker symbol MARK. We primarily sell AI-based products and services. We currently recognize substantially all of our revenue from China, with additional revenue from sales in the U.S. and the U.K. Going Concern During the three months ended March 31, 2024, and in each fiscal year since our inception, we have incurred operating losses which have resulted in a stockholders’ deficit of $42.4 million as of March 31, 2024. Additionally, our operations have historically used more cash than they have provided. Net cash used in operating activities was $3.4 million during the three months ended March 31, 2024. As of March 31, 2024, our cash balance was $0.2 million. Also, we did not make required repayments of the outstanding loans under the New Mudrick Loan Agreement when due (see Note 10 for more information) and we have accrued approximately $1.0 million of delinquent payroll taxes. Our history of recurring operating losses, working capital deficiencies and negative cash flows from operating activities give rise to, and management has concluded that there is, substantial doubt regarding our ability to continue as a going concern. Our independent registered public accounting firm, in its report on our consolidated financial statements for the year ended December 31, 2023, has also expressed substantial doubt about our ability to continue as a going concern. Our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. We intend to fund our future operations and meet our financial obligations through revenue growth from our AI and data analytics offerings. We cannot, however, provide assurance that revenue, income and cash flows generated from our businesses will be sufficient to sustain our operations in the twelve months following the filing of this Form 10-Q. As a result, we are actively evaluating strategic alternatives including debt and equity financings. Conditions in the debt and equity markets, as well as the volatility of investor sentiment regarding macroeconomic and microeconomic conditions (in particular, as a result of the COVID-19 pandemic, global supply chain disruptions, inflation and other cost increases, and the geopolitical conflict in Ukraine), will play primary roles in determining whether we can successfully obtain additional capital. We cannot be certain that we will be successful at raising additional capital. A variety of factors, many of which are outside of our control, may affect our cash flow; those factors include the lingering effects of the COVID-19 pandemic in China, regulatory issues, competition, financial markets and other general business conditions. Based on financial projections, we believe that we will be able to meet our ongoing requirements for at least the next 12 months with existing cash and based on the probable success of one or more of the following plans: • develop and grow new product line(s) • obtain additional capital through debt and/or equity issuances. However, projections are inherently uncertain and the success of our plans is largely outside of our control. As a result, there is substantial doubt regarding our ability to continue as a going concern, and we may fully utilize our cash resources prior to September 30, 2024.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation We prepared the accompanying unaudited Condensed Consolidated Balance Sheet as of March 31, 2024, with the audited Consolidated Balance Sheet amounts as of December 31, 2023 presented for comparative purposes, and the related unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss, the Condensed Consolidated Statements of Cash Flows and the Condensed Consolidated Statements of Stockholders’ Deficit three months ended March 31, 2024 in accordance with the instructions for Form 10-Q. In compliance with those instructions, we have omitted certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, though management believes the disclosures made herein are sufficient to ensure that the information presented is not misleading. Our results of operations and our cash flows as of the end of the interim periods reported herein do not necessarily indicate the results we may experience for the remainder of the year or for any other future period. Management believes that we have included all adjustments (including those of a normal, recurring nature) considered necessary to fairly present our unaudited Condensed Consolidated Balance Sheet and our unaudited Condensed Consolidated Statement of Stockholders’ Deficit, each as of March 31, 2024, as well as our unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss and Condensed Consolidated Statements of Cash Flows for all periods presented. You should read our unaudited condensed consolidated interim financial statements and footnotes in conjunction with our consolidated financial statements and footnotes included within the Annual Report on Form 10-K for the year ended December 31, 2022 (the “2023 Form 10-K”). Consolidation We include all of our subsidiaries in our condensed consolidated financial statements, eliminating all significant intercompany balances and transactions during consolidation. Use of Estimates We prepare our consolidated financial statements in conformity with GAAP. While preparing our financial statements, we make estimates and assumptions that affect amounts reported and disclosed in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ from those estimates. On an ongoing basis, we evaluate our estimates, including those related to accounts receivable, deferred cost of revenue, share-based compensation, deferred income taxes, and inventory reserve, among other items. The impact of the COVID-19 pandemic continues to unfold. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods. Cash Our cash consists of funds held in bank accounts. We maintain cash balances in United States dollars (“USD”), British pounds (“GBP”), RMB and Hong Kong dollars (“HKD”). The following table, reported in USD, disaggregates our cash balances by currency denomination (in thousands): March 31, 2024 December 31, 2023 Cash denominated in: USD $ 177 $ 31 RMB 16 109 GBP 42 1 HKD 4 4 Total cash $ 239 $ 145 We maintain substantially all of our USD-denominated cash at a U.S. financial institution where the balances are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At times, however, our cash balances may exceed the FDIC-insured limit. As of March 31, 2024, we do not believe we have any significant concentrations of credit risk. Cash held by our non-U.S. subsidiaries is subject to foreign currency fluctuations against the USD, although such risk is somewhat mitigated because we transfer U.S. funds to China to fund local operations. If, however, the USD is devalued significantly against the RMB, our cost to further develop our business in China could exceed original estimates. Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price). When reporting the fair values of our financial instruments, we prioritize those fair value measurements into one of three levels based on the nature of the inputs, as follows: Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities; Level 2: Valuations based on observable inputs that do not meet the criteria for Level 1, including quoted prices in inactive markets and observable market data for similar, but not identical instruments; and Level 3: Valuations based on unobservable inputs, which are based upon the best available information when external market data is limited or unavailable. The fair value hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not be available. We believe the reported carrying amounts for cash, marketable securities, receivables, prepaids and other current assets, accounts payable, accrued expense and other current liabilities, and short-term debt approximate their fair values because of the short-term nature of these financial instruments. Foreign Currency Translation We report all currency amounts in USD. Our overseas subsidiaries, however, maintain their books and records in their functional currencies, which are GBP in the United Kingdom (“U.K.”) and RMB in China. In general, when consolidating our subsidiaries with non-USD functional currencies, we translate the amounts of assets and liabilities into USD using the exchange rate on the balance sheet date, and the amounts of revenue and expense are translated at the average exchange rate prevailing during the period. The gains and losses resulting from translation of financial statement amounts into USD are recorded as a separate component of accumulated other comprehensive loss within stockholders’ deficit. We used the exchange rates in the following table to translate amounts denominated in non-USD currencies as of and for the periods noted: 2024 2023 Exchange rates at March 31st: GBP:USD 1.262 1.237 RMB:USD 0.138 0.146 HKD:USD 0.128 0.127 Average exchange rate during the three months ended March 31st: RMB:USD 0.139 0.146 GBP:USD 1.270 1.214 Revenue Recognition AI-Based Products We generate revenue by developing AI-based products, including fully-integrated AI solutions which combine our proprietary technology with third-party hardware and software products to meet end-user specifications. Under one type of contract for our AI-based products, we provide a single, continuous service to clients who control the assets as we create them. Accordingly, we recognize the revenue over the period of time during which we provide the service. Under another type of contract, we have performance obligations to provide fully-integrated AI solutions to our customer and we recognize revenue at the point in time when each performance obligation is completed and delivered to, tested by and accepted by our customer. We recognize revenue when we transfer control of the promised goods or services to our customers, and we recognize an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. If there is uncertainty related to the timing of collections from our customer, which may be the case if our customer is not the ultimate end user of our goods, we consider this to be uncertainty of the customer’s ability and intention to pay us when consideration is due. Accordingly, we recognize revenue only when we have transferred control of the goods or services and collectability of consideration from the customer is probable. When customers pay us prior to when we satisfy our obligation to transfer control of promised goods or services, we record the amount that reflects the consideration to which we expect to be entitled as a contract liability until such time as we satisfy our performance obligation. For contracts under which we have not yet completed the performance obligation, deferred costs are recorded for any amounts incurred in advance of the performance obligation. For our contracts with customers, we generally extend short-term credit policies to our customers, typically up to one year for large-scale projects. We record the incremental costs of obtaining contracts as an expense when incurred. We offer extended warranties on our products for periods of one Other We generate revenue from other sources, such as from advertising and marketing services. We recognize the revenue from these contracts at the point in time when we transfer control of the good sold to the customer or when we deliver the promised promotional materials or media content. Substantially all of our contracts with customers that generate Other revenue are completed within one year or less. Inventory We use the first-in first-out method to determine the cost of our inventory, then we report inventory at the lower of cost or net realizable value. We regularly review our inventory quantities on hand and record a provision for excess and obsolete inventory based primarily on our estimated sales forecasts. At March 31, 2024 and December 31, 2023, reserve for inventory was $2.2 million and $2.2 million, respectively. Internal Use Software We acquire or develop applications and other software that help us meet our internal needs with respect to operating our business. For such projects, planning cost and other costs related to the preliminary project stage, as well as costs incurred for post-implementation activities, are expensed as incurred. We capitalize costs incurred during the application development phase only when we believe it is probable the development will result in new or additional functionality. The types of costs capitalized during the application development phase include fees incurred with third parties for consulting, programming and other development activities performed to complete the software. We amortize our internal use software on a straight-line basis over an estimated useful life of three years. If we identify any internal use software to be abandoned, the cost less the accumulated amortization, if any, is recorded as amortization expense. Once we have fully amortized internal use software costs that we capitalized, we remove such amounts from their respective accounts. Net Income (Loss) per Share We calculate basic net income (loss) per share using the weighted-average number of common stock shares outstanding during the period. For the calculation of diluted net income (loss) per share, we give effect to all the shares of common stock that were outstanding during the period plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation when their effect is anti-dilutive. Dilutive potential shares of common stock consist of incremental shares of common stock issuable upon exercise of stock options and warrants. For the three months ended March 31, 2024 and 2023, there were no reconciling items related to either the numerator or denominator of the loss per share calculation, as their effect would have been anti-dilutive. Securities which may have affected the calculation of diluted earnings per share for the three and three months ended March 31, 2024 if their effect had been dilutive include 1,537,961 total outstanding options to purchase our common stock, 1,007,441 outstanding warrants to purchase our common stock, as well as an estimated 57,994,858 shares of our common stock issuable to Ionic Ventures, LLC (“Ionic”) in relation to our transactions with Ionic (see Note 11 ). Segments Existing GAAP, which establishes a management approach to segment reporting, defines operating segments as components of an entity about which separate, discrete financial information is available for evaluation by the chief operating decision maker. We have identified our Chief Executive Officer as our chief operating decision maker, who reviews operating results to make decisions about allocating resources and assessing performance based upon only one operating segment. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expense categories that are regularly provided to the chief operating decision maker and included in each reported measure of a segment’s profit or loss. The update also requires all annual disclosures about a reportable segment’s profit or loss and assets to be provided in interim periods and for entities with a single reportable segment to provide all the disclosures required by ASC 280, Segment Reporting, including the significant segment expense disclosures. For us, ASU 2023-07 will be effective on January 1, 2024 and interim periods beginning in fiscal year 2025, with early adoption permitted. The updates required by ASU 2023-07 should be applied retrospectively to all periods presented in the financial statements. We do not expect this standard to have a material impact on our results of operations, financial position or cash flows. We have reviewed all accounting pronouncements recently issued by the FASB and the SEC. The authoritative pronouncements that we have already adopted did not have a material effect on our financial condition, results of operations, cash flows or reporting thereof, and except as otherwise noted above, we do not believe that any of the authoritative pronouncements that we have not yet adopted will have a material effect upon our financial condition, results of operations, cash flows or reporting thereof.

CONCENTRATION OF RISK

CONCENTRATION OF RISK	3 Months Ended
	Mar. 31, 2024
Risks and Uncertainties [Abstract]
CONCENTRATION OF RISK	NOTE 3. CONCENTRATION OF RISK Revenue and Accounts Receivable The disaggregation of revenue tables in Note 4 demonstrate the concentration in our revenue from certain products and the geographic concentration of our business. We also have a concentration in the volume of business we transacted with customers, as during the three months ended March 31, 2024, apart from a de minimis amount, essentially all of our revenue resulted from one customer, while during three months ended March 31, 2023, one customer represented about 50% of our revenue. At March 31, 2024, net accounts receivable from three of our customers represented about 35%, 33% and 11%, respectively, of our net accounts receivable, while at December 31, 2023, net accounts receivable from three of our customers represented about 39%, 37% and 13%, respectively, of our net accounts receivable. Deferred Cost of Revenue See Note 6 for a discussion of a risk concentration regarding our deferred cost of revenue. Cost of Sales and Accounts Payable The various hardware we purchase to fulfill our contracts with customers is not especially unique in nature. Based on our analysis, we believe that should any disruption in our current supply chain occur, a sufficient number of alternative vendors is available to us, at reasonably comparable specifications and price, such that we would not experience a material negative impact on our ability to procure the hardware we need to operate our business.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
REVENUE	NOTE 4. REVENUE We primarily sell AI-based products and services based upon computer vision and other technologies. We do not include disclosures related to remaining performance obligations because substantially all our contracts with customers have an original expected duration of one year or less or, with regard to our stand-ready obligations, the amounts involved are not material. Disaggregation of Revenue The following table presents a disaggregation of our revenue by category of products and services (in thousands): Three Months Ended March 31, 2024 2023 AI-based products and services, including amounts from China Business Partner in 2023 (See Note 15 ) $ 387 $ 721 Other — 105 Revenue $ 387 $ 826 The following table presents a disaggregation of our revenue by country (in thousands): Three Months Ended March 31, 2024 2023 China $ 387 $ 743 United States and United Kingdom — 83 Revenue $ 387 $ 826 Significant Judgments When accounting for revenue we make certain judgments, such as whether we act as a principal or as an agent in transactions or whether our contracts with customers fall within the scope of current GAAP regarding revenue, that affect the determination of the amount and timing of our revenue from contracts with customers. Based on the current facts and circumstances related to our contracts with customers, none of the judgments we make involve an elevated degree of qualitative significance or complexity such that further disclosure is warranted in terms of their potential impact on the amount and timing of our revenue. Contract Assets and Contract Liabilities We do not currently generate material contract assets. During the three months ended March 31, 2024, our contract liability changed only as a result of routine business activity. During the three months ended March 31, 2024 and 2023, the amount of revenue we recognized that was included in the beginning balance of Contract liability was not material. During the three months ended March 31, 2024 and 2023, we did not recognize revenue from performance obligations that were satisfied in previous periods. Certain Agreements Related to AI-Based Product Sales in China We completed certain projects in China during the year ended December 31, 2023 worth approximately $1.4 million, but the agreement did not meet the criteria for revenue recognition on an accrual basis. We will recognize the revenue from such agreement as we receive the cash. We recognized approximately $0.4 million of such amount during the three months ended March 31, 2024. NOTE 6. DEFERRED COST OF REVENUE Deferred cost of revenue as of March 31, 2024 and December 31, 2023 of $6.2 million and $6.6 million, respectively, represent amounts we have paid in advance to vendors who provide services to us in relation to various projects in China. Specifically, the deferred cost of revenue balance as of March 31, 2024, a large percentage of which was paid to a single vendor in 2022 for project installations we expect will be provided to us through our China Business Partner (described in more detail in Note 15 ), will be utilized as the vendors install our software solutions and/or hardware at numerous sites across various regions of China for our customers and as the vendors perform other services for us pursuant to customer requirements. Because most of the projects for which we have engaged the vendors require purchases of hardware, equipment and/or supplies in advance of site visits, we made the prepayments in anticipation of several large batches of project installations. We did not make any additional advance payments to vendors in 2024 related to projects, and we were able to complete installations of projects that reduced by $0.4 million the deferred cost of revenue balance associated with the vendor which performs the project installations provided to us through our China Business Partner. Lengthy COVID-19 related lockdowns that occurred in various regions in China during 2022 were the initial cause of delays in completing projects for which we had paid in advance. A slow recovery from such lockdowns in addition to increased political tensions between the U.S. and China led to our decision to reduce staff in China, all of which has made progress in completing projects slow. Given that the delays were not a result of the vendor’s inability to either perform the services or refund the amounts we advanced, and also because we continue to complete some of the installations, we believe the balance as of March 31, 2024 will be fully recovered.

TRADE ACCOUNTS RECEIVABLE

TRADE ACCOUNTS RECEIVABLE	3 Months Ended
	Mar. 31, 2024
Receivables [Abstract]
TRADE ACCOUNTS RECEIVABLE	NOTE 5. TRADE ACCOUNTS RECEIVABLE March 31, 2024 December 31, 2023 Gross accounts receivable balance $ 6,823 $ 7,063 Allowance for bad debt (5,668) (5,776) Accounts receivable, net $ 1,155 $ 1,287 Generally, it is not unusual for Chinese entities to pay their vendors on longer timelines than the timelines typically observed in U.S. commerce. Trade receivables related to our China AI projects at March 31, 2024 and December 31, 2023; including approximately $0.7 million and $0.7 million, respectively, of trade receivables from projects related to work with our China Business Partner (see Note 15 for more information regarding our China Business Partner and related accounting); represented essentially all our gross trade receivables in each such period. When evaluating for current expected credit losses during 2023, we took into account our historical experience as well as our expectations based upon how we believe the COVID-19 pandemic has caused lingering effects on us and our customers.

DEFERRED COST OF REVENUE

DEFERRED COST OF REVENUE	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
DEFERRED COST OF REVENUE	NOTE 4. REVENUE We primarily sell AI-based products and services based upon computer vision and other technologies. We do not include disclosures related to remaining performance obligations because substantially all our contracts with customers have an original expected duration of one year or less or, with regard to our stand-ready obligations, the amounts involved are not material. Disaggregation of Revenue The following table presents a disaggregation of our revenue by category of products and services (in thousands): Three Months Ended March 31, 2024 2023 AI-based products and services, including amounts from China Business Partner in 2023 (See Note 15 ) $ 387 $ 721 Other — 105 Revenue $ 387 $ 826 The following table presents a disaggregation of our revenue by country (in thousands): Three Months Ended March 31, 2024 2023 China $ 387 $ 743 United States and United Kingdom — 83 Revenue $ 387 $ 826 Significant Judgments When accounting for revenue we make certain judgments, such as whether we act as a principal or as an agent in transactions or whether our contracts with customers fall within the scope of current GAAP regarding revenue, that affect the determination of the amount and timing of our revenue from contracts with customers. Based on the current facts and circumstances related to our contracts with customers, none of the judgments we make involve an elevated degree of qualitative significance or complexity such that further disclosure is warranted in terms of their potential impact on the amount and timing of our revenue. Contract Assets and Contract Liabilities We do not currently generate material contract assets. During the three months ended March 31, 2024, our contract liability changed only as a result of routine business activity. During the three months ended March 31, 2024 and 2023, the amount of revenue we recognized that was included in the beginning balance of Contract liability was not material. During the three months ended March 31, 2024 and 2023, we did not recognize revenue from performance obligations that were satisfied in previous periods. Certain Agreements Related to AI-Based Product Sales in China We completed certain projects in China during the year ended December 31, 2023 worth approximately $1.4 million, but the agreement did not meet the criteria for revenue recognition on an accrual basis. We will recognize the revenue from such agreement as we receive the cash. We recognized approximately $0.4 million of such amount during the three months ended March 31, 2024. NOTE 6. DEFERRED COST OF REVENUE Deferred cost of revenue as of March 31, 2024 and December 31, 2023 of $6.2 million and $6.6 million, respectively, represent amounts we have paid in advance to vendors who provide services to us in relation to various projects in China. Specifically, the deferred cost of revenue balance as of March 31, 2024, a large percentage of which was paid to a single vendor in 2022 for project installations we expect will be provided to us through our China Business Partner (described in more detail in Note 15 ), will be utilized as the vendors install our software solutions and/or hardware at numerous sites across various regions of China for our customers and as the vendors perform other services for us pursuant to customer requirements. Because most of the projects for which we have engaged the vendors require purchases of hardware, equipment and/or supplies in advance of site visits, we made the prepayments in anticipation of several large batches of project installations. We did not make any additional advance payments to vendors in 2024 related to projects, and we were able to complete installations of projects that reduced by $0.4 million the deferred cost of revenue balance associated with the vendor which performs the project installations provided to us through our China Business Partner. Lengthy COVID-19 related lockdowns that occurred in various regions in China during 2022 were the initial cause of delays in completing projects for which we had paid in advance. A slow recovery from such lockdowns in addition to increased political tensions between the U.S. and China led to our decision to reduce staff in China, all of which has made progress in completing projects slow. Given that the delays were not a result of the vendor’s inability to either perform the services or refund the amounts we advanced, and also because we continue to complete some of the installations, we believe the balance as of March 31, 2024 will be fully recovered.

PREPAID EXPENSE AND OTHER CURRE

PREPAID EXPENSE AND OTHER CURRENT ASSETS	3 Months Ended
	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSE AND OTHER CURRENT ASSETS	NOTE 7. PREPAID EXPENSE AND OTHER CURRENT ASSETS The following table presents the components of prepaid expense and other current assets (in thousands): March 31, 2024 December 31, 2023 Other receivables 157 147 Prepaid expense 555 339 Deposits 128 128 Total $ 840 $ 614

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 8. PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands, except estimated lives): Estimated Life March 31, 2024 December 31, 2023 Vehicles 3 $ 153 153 Computers and equipment 3 1,219 $ 1,217 Furniture and fixtures 3 42 42 Software 3 4,413 4,082 Leasehold improvements 3 206 204 Total property, equipment and software $ 6,033 $ 5,698 Less accumulated depreciation (5,555) (5,509) Total property, equipment and software, net $ 478 $ 189 For the three months ended March 31, 2024 and 2023, depreciation (and amortization of software) expense was not material.

ACCRUED EXPENSE AND OTHER CURRE

ACCRUED EXPENSE AND OTHER CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2024
Other Liabilities Disclosure [Abstract]
ACCRUED EXPENSE AND OTHER CURRENT LIABILITIES	NOTE 9. ACCRUED EXPENSE AND OTHER CURRENT LIABILITIES The following table presents the components of Accrued expense and other current liabilities (in thousands): March 31, 2024 December 31, 2023 Accrued compensation and benefit-related expense $ 2,303 $ 3,221 Accrued delinquent payroll taxes 1,031 495 Accrued interest 2,348 1,570 Other accrued expense 3,290 3,577 Other payables 2,099 2,138 Operating lease liability - current 254 288 Other current liabilities 910 632 Total $ 12,235 $ 11,921 Other current liabilities at March 31, 2024 includes $0.5 million that we received during the three months ended March 31, 2024 from a potential investor in relation to a proposed private stock sale for which an agreement has not yet been finalized.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 10. NOTES PAYABLE The following table presents our notes payable (in thousands) as of: March 31, 2024 December 31, 2023 New Mudrick Notes (Past Due) $ 16,307 $ 16,307 Other notes payable 168 156 Notes payable, net of unamortized discount and debt issuance cost $ 16,475 $ 16,463 On December 3, 2021, we entered into senior secured loan agreements (the “Original Mudrick Loan Agreements”) with certain of our subsidiaries as guarantors (the “Guarantors”) and certain institutional lenders affiliated with Mudrick Capital Management, LP (collectively, “Mudrick”), pursuant to which Mudrick extended credit to us consisting of term loans in the aggregate principal amount of $30.0 million (the “Original Mudrick Loans”). The Original Mudrick Loans bore interest at 16.5% per annum with an original maturity date of July 31, 2022. As of December 31, 2022, the outstanding balance of the Original Mudrick Loans was $14.4 million, and approximately $0.8 million of accrued interest was included in Accrued expense and other current liabilities. During the three months ended March 31, 2023, prior to the New Mudrick Loan Agreement (defined below) canceling the Original Mudrick Loans, we accrued approximately $0.6 million additional interest expense on the Original Mudrick Loans, of which $0.3 million was paid during such period. On March 14, 2023, we entered into a Note Purchase Agreement (the “New Mudrick Loan Agreement”) with Mudrick, pursuant to which all of the Original Mudrick Loans were cancelled in exchange for new notes payable to Mudrick (the “New Mudrick Notes”) in the aggregate principal amount of approximately $16.3 million. The principal balance of the New Mudrick Notes included the $14.4 million outstanding balance of the Original Mudrick Loans, plus $1.1 million of accrued interest on the Original Mudrick Loans, plus a fee of approximately $0.8 million payable to Mudrick as consideration for cancelling the Original Mudrick Loans and converting all amounts outstanding thereunder into the New Mudrick Notes. We recorded the $0.8 million as interest expense during the three months ended March 31, 2023. The New Mudrick Notes bear interest at a rate of 20.5% per annum, which is payable on the last business day of each month commencing on May 31, 2023. The interest rate will increase by 2% and the principal amount outstanding under the New Mudrick Notes and any unpaid interest thereon may become immediately due and payable upon the occurrence of any event of default under the New Mudrick Loan Agreement. All amounts outstanding under the New Mudrick Notes, including all accrued and unpaid interest, became due and payable in full on October 31, 2023. To secure the payment and performance of the obligations under the Original Mudrick Loan Agreements and the New Mudrick Loan Agreement, we, together with certain of our subsidiaries (the “Guarantors”), have granted to TMI Trust Company, as the collateral agent for the benefit of Mudrick, a first priority lien on, and security interest in, all assets of Remark and the Guarantors, subject to certain customary exceptions. We did not make required repayments of the outstanding loans under the New Mudrick Loan Agreement that were due beginning on June 30, 2023, which constitute events of default for which we have not received a waiver as of the date of this Form 10-Q. While we are actively engaged in discussions with Mudrick regarding a resolution of the events of default and have made progress in such discussions, we cannot provide any assurance that we will be successful in obtaining a waiver or that Mudrick will continue to forebear from taking any enforcement actions against us. Other Notes Payable The Other notes payable in the table above represent individually immaterial notes payable issued for the purchase of operating assets. Such notes payable bear interest at a weighted-average interest rate of approximately 7.1% and have a weighted-average remaining term of approximately 4.3 years. NOTE 11. OBLIGATIONS TO ISSUE COMMON STOCK (TRANSACTIONS WITH IONIC) Convertible Debentures On October 6, 2022, we entered into a debenture purchase agreement (the “2022 Debenture Purchase Agreement”) and a purchase agreement (the “Original ELOC Purchase Agreement”) with Ionic. Pursuant to the 2022 Debenture Purchase Agreement, we issued a convertible subordinated debenture in the original principal amount of approximately $2.8 million (the “2022 Debenture”) to Ionic for a purchase price of $2.5 million. The 2022 Debenture automatically converted into shares of our common stock (the “2022 Debenture Settlement Shares”) on November 17, 2022 upon the effectiveness of a registration statement we filed pursuant to a registration rights agreement we entered into with Ionic. Upon issuance of the 2022 Debenture, we initially estimated the obligation to issue common stock at approximately $3.6 million. As of December 31, 2022, we estimated such obligation to have a fair value of $1.9 million, representing an additional 1,720,349 shares to be issued pursuant to the 2022 Debenture. When the measurement period for determining the conversion price of the 2022 Debenture was completed, we determined that the final number of 2022 Debenture Settlement Shares would be 3,129,668 (inclusive of 898,854 shares that were issued during 2022), resulting in the issuance of an additional 2,230,814 shares during 2023 with a fair value of $3.1 million. On March 14, 2023, we entered into a new debenture purchase agreement (the “2023 Debenture Purchase Agreement”) with Ionic pursuant to which we authorized the issuance and sale of two convertible subordinated debentures in the aggregate principal amount of approximately $2.8 million for an aggregate purchase price of $2.5 million. The first debenture is in the original principal amount of approximately $1.7 million for a purchase price of $1.5 million (the “First 2023 Debenture”), which was issued on March 14, 2023, and the second debenture is in the original principal amount of approximately $1.1 million for a purchase price of $1.0 million (the “Second 2023 Debenture” and collectively with the First Debenture, the “2023 Debentures”), which was issued on April 12, 2023. The 2023 Debenture automatically converted into shares of our common stock (the “2023 Debenture Settlement Shares”) on June 26, 2023 upon the effectiveness of a registration statement we filed pursuant to a registration rights agreement we entered into with Ionic. Upon issuance of the First 2023 Debenture and the Second 2023 Debenture, we initially estimated the obligations to issue common stock at an aggregate of approximately $4.1 million, or equivalent estimated issuable shares of 3,669,228. As of December 31, 2023, we estimated that an aggregate total of 9,383,966 shares remained to be issued upon conversion in full of the 2023 Debentures, representing obligations with an aggregate fair value of $4.6 million. When the measurement period for determining the conversion price of the 2023 Debentures was completed, we determined that the final number of 2023 Debentures Settlement Shares would be 16,928,989 (inclusive of 657,000 shares that were issued during 2023), resulting in the issuance during the three months ended March 31, 2024 of an additional 16,271,989 shares with a fair value of $10.3 million in final settlement of the 2023 Debentures. Equity Line of Credit The Original ELOC Purchase Agreement, as amended by those certain letter agreements by and between Remark and Ionic, dated as of January 5, 2023; July 12, 2023; August 10, 2023 and September 15, 2023; as well as the first amendment on January 9, 2024, and subsequent letter agreement on February 14, 2024 (as amended, the “Amended ELOC Purchase Agreement”), provides that, upon the terms and subject to the conditions and limitations set forth therein, we have the right to direct Ionic to purchase up to an aggregate of $50.0 million of shares of our common stock over the 36-month term of the Amended ELOC Purchase Agreement. Under the Amended ELOC Purchase Agreement, after the satisfaction of certain commencement conditions, including, without limitation, the effectiveness of a resale registration statement filed with the SEC registering such shares and that the 2022 Debenture shall have been fully converted into shares of common stock or shall otherwise have been fully redeemed and settled in all respects in accordance with the terms of the 2022 Debenture, we have the right to present Ionic with a purchase notice (each, a “Purchase Notice”) directing Ionic to purchase any amount up to $3.0 million of our common stock per trading day, at a per share price equal to 80% (or 70% if our common stock is not then trading on Nasdaq) of the average of the two lowest volume-weighted average prices (“VWAPs”) over a specified measurement period. With each purchase under the Amended ELOC Purchase Agreement, we are required to deliver to Ionic an additional number of shares equal to 2.5% of the number of shares of common stock deliverable upon such purchase. The number of shares that we can issue to Ionic from time to time under the Amended ELOC Purchase Agreement shall be subject to the condition that we will not sell shares to Ionic to the extent that Ionic, together with its affiliates, would beneficially own more than 4.99% of the outstanding shares of our common stock immediately after giving effect to such sale (the “Beneficial Ownership Limitation”). In addition, Ionic will not be required to buy any shares of our common stock pursuant to a Purchase Notice on any trading day on which the closing trade price of our common stock is below $0.20 (as amended by the January 2023 Letter Agreement, as defined below). We will control the timing and amount of sales of our common stock to Ionic. Ionic has no right to require any sales by us, and is obligated to make purchases from us as directed solely by us in accordance with the Amended ELOC Purchase Agreement. The Amended ELOC Purchase Agreement provides that we will not be required or permitted to issue, and Ionic will not be required to purchase, any shares under the Amended ELOC Purchase Agreement if such issuance would violate Nasdaq rules, and we may, in our sole discretion, determine whether to obtain stockholder approval to issue shares in excess of 19.99% of our outstanding shares of common stock if such issuance would require stockholder approval under Nasdaq rules. Ionic has agreed that neither it nor any of its agents, representatives and affiliates will engage in any direct or indirect short-selling or hedging our common stock during any time prior to the termination of the Amended ELOC Purchase Agreement. The Amended ELOC Purchase Agreement may be terminated by us at any time after commencement, at our discretion; provided, however, that if we sold less than $25.0 million to Ionic (other than as a result of our inability to sell shares to Ionic as a result of the Beneficial Ownership Limitation, our failure to have sufficient shares authorized or our failure to obtain stockholder approval to issue more than 19.99% of our outstanding shares), we will pay to Ionic a termination fee of $0.5 million, which is payable, at our option, in cash or in shares of common stock at a price equal to the closing price on the day immediately preceding the date of receipt of the termination notice. Further, the Amended ELOC Purchase Agreement will automatically terminate on the date that we sell, and Ionic purchases, the full $50.0 million amount under the agreement or, if the full amount has not been purchased, on the expiration of the 36-month term of the Amended ELOC Purchase Agreement. On January 5, 2023, we and Ionic entered into a letter agreement (the “January 2023 Letter Agreement”) which amended the Original ELOC Purchase Agreement. Under the Letter Agreement, the parties agreed, among other things, to (i) amend the floor price below which Ionic will not be required to buy any shares of our common stock under the Amended ELOC Purchase Agreement from $0.25 to $0.20, determined on a post-reverse split basis, (ii) amend the per share purchase price for purchases under the Amended ELOC Purchase Agreement to 80% of the average of the two lowest daily VWAPs over a specified measurement period, which will commence at the conclusion of the applicable measurement period related to the 2022 Debenture and (iii) waive certain requirements in the Amended ELOC Purchase Agreement to allow for a one-time $0.5 million purchase under the Amended ELOC Purchase Agreement. As partial consideration for the waiver to allow for the $0.5 million purchase by Ionic, we agreed to issue to Ionic that number of shares (the “Letter Agreement Shares”) equal to the difference between (x) the variable conversion price in the 2022 Debenture, and (y) the calculation achieved as a result of the following formula: 80% (or 70% if our common stock is not then trading on Nasdaq) of the lowest VWAP starting on the trading day immediately following the receipt of pre-settlement conversion shares following the date on which the 2022 Debenture automatically converts or other relevant date of determination and ending the later of (a) 10 consecutive trading days after (and not including) the Automatic Conversion Date (as defined in the Amended ELOC Purchase Agreement) or such other relevant date of determination and (b) the trading day immediately after shares of our common stock in the aggregate amount of at least $13.9 million shall have traded on Nasdaq. As of March 31, 2023, we estimated the obligation to issue the Letter Agreement Shares at approximately $0.2 million. As of June 30, 2023, we had issued all of the 200,715 Letter Agreement Shares. On September 15, 2023, we and Ionic entered into a letter agreement (the “September 2023 Letter Agreement”) which amends the Amended ELOC Purchase Agreement, as previously amended on January 5, 2023. Under the September 2023 Letter Agreement, which repeated changes made in earlier letter agreements between Remark and Ionic dated July 12, 2023 and August 10, 2023, the parties agreed, among other things, to (i) allow Remark to deliver one or more irrevocable written notices (“Exemption Purchase Notices”) to Ionic in a total aggregate amount not to exceed $20.0 million, which total aggregate amount shall be reduced by the aggregate amount of previous Exemption Purchase Notices, (ii) amend the per share purchase price for purchases under an Exemption Purchase Notice to 80% of the average of the two lowest daily volume-weighted average prices (“VWAPs”) over a specified measurement period, (iii) amend the definition of the specified measurement period to stipulate that, for purposes of calculating the final purchase price, such measurement period begins the trading day after Ionic pays Remark the amount requested in the purchase notice, while the calculation of the dollar volume of Remark common stock traded on the principal market to determine the length of the measurement period shall begin on the trading day after the previous measurement period ends, iv) that any additional Exemption Purchase Notices that are not in accordance with the terms and provisions of the Purchase Agreement shall be subject to Ionic’s approval, v) to amend section 11(c) of the Amended ELOC Purchase Agreement to increase the Additional Commitment Fee from $0.5 million to $3.0 million and vi) that by September 29, 2023, the parties will amend the Debenture Transaction Documents to include a so-called Most Favored Nation provision that will provide Ionic with necessary protection against any future financing, settlement, exchange or other transaction whether with an existing or new lender, investor or counterparty, and that, if such amendment is not made by September 29, 2023, the Additional Commitment Fee shall be further increased to approximately $3.8 million. On January 9, 2024, we and Ionic entered into an amendment (the “First Amendment”) to the Amended ELOC Purchase Agreement. Under the First Amendment, the parties agreed, among other things, (i) to clarify that the Floor Price per the agreement is $0.25, (ii) to amend the per share purchase price for purchases under a Regular Purchase Notice to 80% of the average of the two lowest daily volume-weighted average prices (“VWAPs”) over a specified measurement period, (iii) to increase the frequency at which we can submit purchase notices, within limits, and (iv) to amend section 11(c) of the ELOC Purchase Agreement to increase the Additional Commitment Fee from $500,000 to approximately $3.8 million. On February 14, 2024, we and Ionic entered into a letter agreement (the “February 2024 Letter Agreement”) which amends the Amended ELOC Purchase Agreement. Under the February 2024 Letter Agreement, the parties agreed, among other things, (i) to redefine the definition of Principal Market to include markets in addition to the Nasdaq Capital Market and the OTC Bulletin Board, (ii) that Ionic will forbear from enforcing any noncompliance with the covenants in the Amended ELOC Purchase Agreement as a result of Remark’s delisting from Nasdaq and any related suspension of trading on Nasdaq, and (iii) to clarify that we can still issue Regular Purchase Notices despite the delisting from Nasdaq and any related suspension of trading on Nasdaq so long as the Principal Market is either the OTCQX, OTCQB, or OTCBB and each Regular Purchase does not exceed $500,000. As of December 31, 2023, we estimated that an additional 10,876,635 shares would be issued in settlement of our obligation to issue common stock under the ELOC Advances, representing an obligation with an aggregate fair value of $5.4 million. During the three months ended March 31, 2024, Ionic advanced to us a total of $4.0 million pursuant to the Amended ELOC Purchase Agreement. Upon issuance of the ELOC Advances during the three months ended March 31, 2024, we initially estimated the obligations to issue common stock at approximately $6.6 million (resulting in a finance cost of $2.6 million in excess of the $4.0 million advance), or equivalent estimated issuable shares of 15,356,612. During the three months ended March 31, 2024, we issued 2,842,200 shares with a fair value of $0.7 million in partial settlement of ELOC Advances. As of March 31, 2024, we estimated that an additional 57,994,858 shares with a fair value of $12.2 million would be issued in settlement of our obligation to issue common stock under the ELOC Advances. Accounting for the Debentures and the ELOC Using the guidance in ASC Topic 480, Distinguishing Liabilities from Equity , we evaluated the 2023 Debenture Purchase Agreement and its associated First 2023 Debenture, and the Amended ELOC Purchase Agreement and its associated ELOC Advances, and determined that all represented obligations that must or may be settled with a variable number of shares, the monetary value of which was based solely or predominantly on a fixed monetary amount known at inception. Using a Level 3 input, we estimated the number of shares of our common stock that we would have to issue for each obligation and multiplied the estimated number of shares by the closing market price of our common stock on the measurement date to determine the fair value of the obligation. We then recorded the amount of the initial obligation in excess of the purchase price as finance cost. We remeasure each obligation at every balance sheet date until all shares representing the obligation have been issued, with the change in the amount of the obligation being recorded as finance cost. The following table shows the changes in our obligations to issue common stock (dollars in thousands): 2023 Debentures ELOC Advances Total Obligations to Issue Common Stock Balance at December 31, 2023 $ 4,647 $ 5,386 $ 10,033 Establishment of new obligation to issue shares — 6,619 6,619 Issuance of Shares (10,321) (686) (11,007) Change in measurement of liability 5,674 854 6,528 Balance at March 31, 2024 $ — $ 12,173 $ 12,173 Estimated Number of Shares Issuable Balance at December 31, 2023 9,383,966 10,876,635 20,260,601 Establishment of new obligation to issue shares — 15,356,612 15,356,612 Issuance of Shares (16,271,989) (2,842,200) (19,114,189) Change in estimated number of shares issuable 6,888,023 34,603,811 41,491,834 Balance at March 31, 2024 — 57,994,858 57,994,858 The following table shows the composition of finance cost associated with our obligations to issue common stock (dollars in thousands) for the three months ended March 31, 2024: 2023 Debentures ELOC Advances Total Initial obligation in excess of purchase price $ — $ 2,619 2,619 Change in measurement of liability 5,674 854 6,528 Total $ 5,674 $ 3,473 $ 9,147 The following table shows the composition of finance cost associated with our obligations to issue common stock (dollars in thousands) for the three months ended March 31, 2023: 2022 Debentures First 2023 Debenture Letter Agreement ELOC Advance Total Initial obligation in excess of purchase price $ — $ 1,000 $ 249 $ 325 1,574 Change in measurement of liability 1,279 558 26 139 2,002 Total $ 1,279 $ 1,558 $ 275 $ 464 $ 3,576

OBLIGATIONS TO ISSUE COMMON STO

OBLIGATIONS TO ISSUE COMMON STOCK (TRANSACTIONS WITH IONIC)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
OBLIGATIONS TO ISSUE COMMON STOCK (TRANSACTIONS WITH IONIC)	NOTE 10. NOTES PAYABLE The following table presents our notes payable (in thousands) as of: March 31, 2024 December 31, 2023 New Mudrick Notes (Past Due) $ 16,307 $ 16,307 Other notes payable 168 156 Notes payable, net of unamortized discount and debt issuance cost $ 16,475 $ 16,463 On December 3, 2021, we entered into senior secured loan agreements (the “Original Mudrick Loan Agreements”) with certain of our subsidiaries as guarantors (the “Guarantors”) and certain institutional lenders affiliated with Mudrick Capital Management, LP (collectively, “Mudrick”), pursuant to which Mudrick extended credit to us consisting of term loans in the aggregate principal amount of $30.0 million (the “Original Mudrick Loans”). The Original Mudrick Loans bore interest at 16.5% per annum with an original maturity date of July 31, 2022. As of December 31, 2022, the outstanding balance of the Original Mudrick Loans was $14.4 million, and approximately $0.8 million of accrued interest was included in Accrued expense and other current liabilities. During the three months ended March 31, 2023, prior to the New Mudrick Loan Agreement (defined below) canceling the Original Mudrick Loans, we accrued approximately $0.6 million additional interest expense on the Original Mudrick Loans, of which $0.3 million was paid during such period. On March 14, 2023, we entered into a Note Purchase Agreement (the “New Mudrick Loan Agreement”) with Mudrick, pursuant to which all of the Original Mudrick Loans were cancelled in exchange for new notes payable to Mudrick (the “New Mudrick Notes”) in the aggregate principal amount of approximately $16.3 million. The principal balance of the New Mudrick Notes included the $14.4 million outstanding balance of the Original Mudrick Loans, plus $1.1 million of accrued interest on the Original Mudrick Loans, plus a fee of approximately $0.8 million payable to Mudrick as consideration for cancelling the Original Mudrick Loans and converting all amounts outstanding thereunder into the New Mudrick Notes. We recorded the $0.8 million as interest expense during the three months ended March 31, 2023. The New Mudrick Notes bear interest at a rate of 20.5% per annum, which is payable on the last business day of each month commencing on May 31, 2023. The interest rate will increase by 2% and the principal amount outstanding under the New Mudrick Notes and any unpaid interest thereon may become immediately due and payable upon the occurrence of any event of default under the New Mudrick Loan Agreement. All amounts outstanding under the New Mudrick Notes, including all accrued and unpaid interest, became due and payable in full on October 31, 2023. To secure the payment and performance of the obligations under the Original Mudrick Loan Agreements and the New Mudrick Loan Agreement, we, together with certain of our subsidiaries (the “Guarantors”), have granted to TMI Trust Company, as the collateral agent for the benefit of Mudrick, a first priority lien on, and security interest in, all assets of Remark and the Guarantors, subject to certain customary exceptions. We did not make required repayments of the outstanding loans under the New Mudrick Loan Agreement that were due beginning on June 30, 2023, which constitute events of default for which we have not received a waiver as of the date of this Form 10-Q. While we are actively engaged in discussions with Mudrick regarding a resolution of the events of default and have made progress in such discussions, we cannot provide any assurance that we will be successful in obtaining a waiver or that Mudrick will continue to forebear from taking any enforcement actions against us. Other Notes Payable The Other notes payable in the table above represent individually immaterial notes payable issued for the purchase of operating assets. Such notes payable bear interest at a weighted-average interest rate of approximately 7.1% and have a weighted-average remaining term of approximately 4.3 years. NOTE 11. OBLIGATIONS TO ISSUE COMMON STOCK (TRANSACTIONS WITH IONIC) Convertible Debentures On October 6, 2022, we entered into a debenture purchase agreement (the “2022 Debenture Purchase Agreement”) and a purchase agreement (the “Original ELOC Purchase Agreement”) with Ionic. Pursuant to the 2022 Debenture Purchase Agreement, we issued a convertible subordinated debenture in the original principal amount of approximately $2.8 million (the “2022 Debenture”) to Ionic for a purchase price of $2.5 million. The 2022 Debenture automatically converted into shares of our common stock (the “2022 Debenture Settlement Shares”) on November 17, 2022 upon the effectiveness of a registration statement we filed pursuant to a registration rights agreement we entered into with Ionic. Upon issuance of the 2022 Debenture, we initially estimated the obligation to issue common stock at approximately $3.6 million. As of December 31, 2022, we estimated such obligation to have a fair value of $1.9 million, representing an additional 1,720,349 shares to be issued pursuant to the 2022 Debenture. When the measurement period for determining the conversion price of the 2022 Debenture was completed, we determined that the final number of 2022 Debenture Settlement Shares would be 3,129,668 (inclusive of 898,854 shares that were issued during 2022), resulting in the issuance of an additional 2,230,814 shares during 2023 with a fair value of $3.1 million. On March 14, 2023, we entered into a new debenture purchase agreement (the “2023 Debenture Purchase Agreement”) with Ionic pursuant to which we authorized the issuance and sale of two convertible subordinated debentures in the aggregate principal amount of approximately $2.8 million for an aggregate purchase price of $2.5 million. The first debenture is in the original principal amount of approximately $1.7 million for a purchase price of $1.5 million (the “First 2023 Debenture”), which was issued on March 14, 2023, and the second debenture is in the original principal amount of approximately $1.1 million for a purchase price of $1.0 million (the “Second 2023 Debenture” and collectively with the First Debenture, the “2023 Debentures”), which was issued on April 12, 2023. The 2023 Debenture automatically converted into shares of our common stock (the “2023 Debenture Settlement Shares”) on June 26, 2023 upon the effectiveness of a registration statement we filed pursuant to a registration rights agreement we entered into with Ionic. Upon issuance of the First 2023 Debenture and the Second 2023 Debenture, we initially estimated the obligations to issue common stock at an aggregate of approximately $4.1 million, or equivalent estimated issuable shares of 3,669,228. As of December 31, 2023, we estimated that an aggregate total of 9,383,966 shares remained to be issued upon conversion in full of the 2023 Debentures, representing obligations with an aggregate fair value of $4.6 million. When the measurement period for determining the conversion price of the 2023 Debentures was completed, we determined that the final number of 2023 Debentures Settlement Shares would be 16,928,989 (inclusive of 657,000 shares that were issued during 2023), resulting in the issuance during the three months ended March 31, 2024 of an additional 16,271,989 shares with a fair value of $10.3 million in final settlement of the 2023 Debentures. Equity Line of Credit The Original ELOC Purchase Agreement, as amended by those certain letter agreements by and between Remark and Ionic, dated as of January 5, 2023; July 12, 2023; August 10, 2023 and September 15, 2023; as well as the first amendment on January 9, 2024, and subsequent letter agreement on February 14, 2024 (as amended, the “Amended ELOC Purchase Agreement”), provides that, upon the terms and subject to the conditions and limitations set forth therein, we have the right to direct Ionic to purchase up to an aggregate of $50.0 million of shares of our common stock over the 36-month term of the Amended ELOC Purchase Agreement. Under the Amended ELOC Purchase Agreement, after the satisfaction of certain commencement conditions, including, without limitation, the effectiveness of a resale registration statement filed with the SEC registering such shares and that the 2022 Debenture shall have been fully converted into shares of common stock or shall otherwise have been fully redeemed and settled in all respects in accordance with the terms of the 2022 Debenture, we have the right to present Ionic with a purchase notice (each, a “Purchase Notice”) directing Ionic to purchase any amount up to $3.0 million of our common stock per trading day, at a per share price equal to 80% (or 70% if our common stock is not then trading on Nasdaq) of the average of the two lowest volume-weighted average prices (“VWAPs”) over a specified measurement period. With each purchase under the Amended ELOC Purchase Agreement, we are required to deliver to Ionic an additional number of shares equal to 2.5% of the number of shares of common stock deliverable upon such purchase. The number of shares that we can issue to Ionic from time to time under the Amended ELOC Purchase Agreement shall be subject to the condition that we will not sell shares to Ionic to the extent that Ionic, together with its affiliates, would beneficially own more than 4.99% of the outstanding shares of our common stock immediately after giving effect to such sale (the “Beneficial Ownership Limitation”). In addition, Ionic will not be required to buy any shares of our common stock pursuant to a Purchase Notice on any trading day on which the closing trade price of our common stock is below $0.20 (as amended by the January 2023 Letter Agreement, as defined below). We will control the timing and amount of sales of our common stock to Ionic. Ionic has no right to require any sales by us, and is obligated to make purchases from us as directed solely by us in accordance with the Amended ELOC Purchase Agreement. The Amended ELOC Purchase Agreement provides that we will not be required or permitted to issue, and Ionic will not be required to purchase, any shares under the Amended ELOC Purchase Agreement if such issuance would violate Nasdaq rules, and we may, in our sole discretion, determine whether to obtain stockholder approval to issue shares in excess of 19.99% of our outstanding shares of common stock if such issuance would require stockholder approval under Nasdaq rules. Ionic has agreed that neither it nor any of its agents, representatives and affiliates will engage in any direct or indirect short-selling or hedging our common stock during any time prior to the termination of the Amended ELOC Purchase Agreement. The Amended ELOC Purchase Agreement may be terminated by us at any time after commencement, at our discretion; provided, however, that if we sold less than $25.0 million to Ionic (other than as a result of our inability to sell shares to Ionic as a result of the Beneficial Ownership Limitation, our failure to have sufficient shares authorized or our failure to obtain stockholder approval to issue more than 19.99% of our outstanding shares), we will pay to Ionic a termination fee of $0.5 million, which is payable, at our option, in cash or in shares of common stock at a price equal to the closing price on the day immediately preceding the date of receipt of the termination notice. Further, the Amended ELOC Purchase Agreement will automatically terminate on the date that we sell, and Ionic purchases, the full $50.0 million amount under the agreement or, if the full amount has not been purchased, on the expiration of the 36-month term of the Amended ELOC Purchase Agreement. On January 5, 2023, we and Ionic entered into a letter agreement (the “January 2023 Letter Agreement”) which amended the Original ELOC Purchase Agreement. Under the Letter Agreement, the parties agreed, among other things, to (i) amend the floor price below which Ionic will not be required to buy any shares of our common stock under the Amended ELOC Purchase Agreement from $0.25 to $0.20, determined on a post-reverse split basis, (ii) amend the per share purchase price for purchases under the Amended ELOC Purchase Agreement to 80% of the average of the two lowest daily VWAPs over a specified measurement period, which will commence at the conclusion of the applicable measurement period related to the 2022 Debenture and (iii) waive certain requirements in the Amended ELOC Purchase Agreement to allow for a one-time $0.5 million purchase under the Amended ELOC Purchase Agreement. As partial consideration for the waiver to allow for the $0.5 million purchase by Ionic, we agreed to issue to Ionic that number of shares (the “Letter Agreement Shares”) equal to the difference between (x) the variable conversion price in the 2022 Debenture, and (y) the calculation achieved as a result of the following formula: 80% (or 70% if our common stock is not then trading on Nasdaq) of the lowest VWAP starting on the trading day immediately following the receipt of pre-settlement conversion shares following the date on which the 2022 Debenture automatically converts or other relevant date of determination and ending the later of (a) 10 consecutive trading days after (and not including) the Automatic Conversion Date (as defined in the Amended ELOC Purchase Agreement) or such other relevant date of determination and (b) the trading day immediately after shares of our common stock in the aggregate amount of at least $13.9 million shall have traded on Nasdaq. As of March 31, 2023, we estimated the obligation to issue the Letter Agreement Shares at approximately $0.2 million. As of June 30, 2023, we had issued all of the 200,715 Letter Agreement Shares. On September 15, 2023, we and Ionic entered into a letter agreement (the “September 2023 Letter Agreement”) which amends the Amended ELOC Purchase Agreement, as previously amended on January 5, 2023. Under the September 2023 Letter Agreement, which repeated changes made in earlier letter agreements between Remark and Ionic dated July 12, 2023 and August 10, 2023, the parties agreed, among other things, to (i) allow Remark to deliver one or more irrevocable written notices (“Exemption Purchase Notices”) to Ionic in a total aggregate amount not to exceed $20.0 million, which total aggregate amount shall be reduced by the aggregate amount of previous Exemption Purchase Notices, (ii) amend the per share purchase price for purchases under an Exemption Purchase Notice to 80% of the average of the two lowest daily volume-weighted average prices (“VWAPs”) over a specified measurement period, (iii) amend the definition of the specified measurement period to stipulate that, for purposes of calculating the final purchase price, such measurement period begins the trading day after Ionic pays Remark the amount requested in the purchase notice, while the calculation of the dollar volume of Remark common stock traded on the principal market to determine the length of the measurement period shall begin on the trading day after the previous measurement period ends, iv) that any additional Exemption Purchase Notices that are not in accordance with the terms and provisions of the Purchase Agreement shall be subject to Ionic’s approval, v) to amend section 11(c) of the Amended ELOC Purchase Agreement to increase the Additional Commitment Fee from $0.5 million to $3.0 million and vi) that by September 29, 2023, the parties will amend the Debenture Transaction Documents to include a so-called Most Favored Nation provision that will provide Ionic with necessary protection against any future financing, settlement, exchange or other transaction whether with an existing or new lender, investor or counterparty, and that, if such amendment is not made by September 29, 2023, the Additional Commitment Fee shall be further increased to approximately $3.8 million. On January 9, 2024, we and Ionic entered into an amendment (the “First Amendment”) to the Amended ELOC Purchase Agreement. Under the First Amendment, the parties agreed, among other things, (i) to clarify that the Floor Price per the agreement is $0.25, (ii) to amend the per share purchase price for purchases under a Regular Purchase Notice to 80% of the average of the two lowest daily volume-weighted average prices (“VWAPs”) over a specified measurement period, (iii) to increase the frequency at which we can submit purchase notices, within limits, and (iv) to amend section 11(c) of the ELOC Purchase Agreement to increase the Additional Commitment Fee from $500,000 to approximately $3.8 million. On February 14, 2024, we and Ionic entered into a letter agreement (the “February 2024 Letter Agreement”) which amends the Amended ELOC Purchase Agreement. Under the February 2024 Letter Agreement, the parties agreed, among other things, (i) to redefine the definition of Principal Market to include markets in addition to the Nasdaq Capital Market and the OTC Bulletin Board, (ii) that Ionic will forbear from enforcing any noncompliance with the covenants in the Amended ELOC Purchase Agreement as a result of Remark’s delisting from Nasdaq and any related suspension of trading on Nasdaq, and (iii) to clarify that we can still issue Regular Purchase Notices despite the delisting from Nasdaq and any related suspension of trading on Nasdaq so long as the Principal Market is either the OTCQX, OTCQB, or OTCBB and each Regular Purchase does not exceed $500,000. As of December 31, 2023, we estimated that an additional 10,876,635 shares would be issued in settlement of our obligation to issue common stock under the ELOC Advances, representing an obligation with an aggregate fair value of $5.4 million. During the three months ended March 31, 2024, Ionic advanced to us a total of $4.0 million pursuant to the Amended ELOC Purchase Agreement. Upon issuance of the ELOC Advances during the three months ended March 31, 2024, we initially estimated the obligations to issue common stock at approximately $6.6 million (resulting in a finance cost of $2.6 million in excess of the $4.0 million advance), or equivalent estimated issuable shares of 15,356,612. During the three months ended March 31, 2024, we issued 2,842,200 shares with a fair value of $0.7 million in partial settlement of ELOC Advances. As of March 31, 2024, we estimated that an additional 57,994,858 shares with a fair value of $12.2 million would be issued in settlement of our obligation to issue common stock under the ELOC Advances. Accounting for the Debentures and the ELOC Using the guidance in ASC Topic 480, Distinguishing Liabilities from Equity , we evaluated the 2023 Debenture Purchase Agreement and its associated First 2023 Debenture, and the Amended ELOC Purchase Agreement and its associated ELOC Advances, and determined that all represented obligations that must or may be settled with a variable number of shares, the monetary value of which was based solely or predominantly on a fixed monetary amount known at inception. Using a Level 3 input, we estimated the number of shares of our common stock that we would have to issue for each obligation and multiplied the estimated number of shares by the closing market price of our common stock on the measurement date to determine the fair value of the obligation. We then recorded the amount of the initial obligation in excess of the purchase price as finance cost. We remeasure each obligation at every balance sheet date until all shares representing the obligation have been issued, with the change in the amount of the obligation being recorded as finance cost. The following table shows the changes in our obligations to issue common stock (dollars in thousands): 2023 Debentures ELOC Advances Total Obligations to Issue Common Stock Balance at December 31, 2023 $ 4,647 $ 5,386 $ 10,033 Establishment of new obligation to issue shares — 6,619 6,619 Issuance of Shares (10,321) (686) (11,007) Change in measurement of liability 5,674 854 6,528 Balance at March 31, 2024 $ — $ 12,173 $ 12,173 Estimated Number of Shares Issuable Balance at December 31, 2023 9,383,966 10,876,635 20,260,601 Establishment of new obligation to issue shares — 15,356,612 15,356,612 Issuance of Shares (16,271,989) (2,842,200) (19,114,189) Change in estimated number of shares issuable 6,888,023 34,603,811 41,491,834 Balance at March 31, 2024 — 57,994,858 57,994,858 The following table shows the composition of finance cost associated with our obligations to issue common stock (dollars in thousands) for the three months ended March 31, 2024: 2023 Debentures ELOC Advances Total Initial obligation in excess of purchase price $ — $ 2,619 2,619 Change in measurement of liability 5,674 854 6,528 Total $ 5,674 $ 3,473 $ 9,147 The following table shows the composition of finance cost associated with our obligations to issue common stock (dollars in thousands) for the three months ended March 31, 2023: 2022 Debentures First 2023 Debenture Letter Agreement ELOC Advance Total Initial obligation in excess of purchase price $ — $ 1,000 $ 249 $ 325 1,574 Change in measurement of liability 1,279 558 26 139 2,002 Total $ 1,279 $ 1,558 $ 275 $ 464 $ 3,576

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12. COMMITMENTS AND CONTINGENCIES At March 31, 2024, we had no material commitments outside the normal course of business. Contingencies As of March 31, 2024, we were neither a defendant in any material pending legal proceeding nor are we aware of any material threatened claims against us and, therefore, we have not accrued any contingent liabilities.

STOCKHOLDERS' DEFICIT

STOCKHOLDERS' DEFICIT	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' DEFICIT	NOTE 13. STOCKHOLDERS' DEFICIT Equity Issuances During the three months ended March 31, 2024, we issued a total of 10,499,291 shares to Ionic in full or partial settlement of ELOC Advances and convertible debentures pursuant to transactions with Ionic (see Note 11 ). Warrants The following table summarizes information related to our equity-classified stock warrant issuances as of and for the dates and periods noted: Shares Weighted Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 1,007,441 $ 39.90 2.7 $ — Granted — — Exercised — — Forfeited, cancelled or expired — — Outstanding at March 31, 2024 1,007,441 $ 39.90 2.4 $ — Share-Based Compensation We are authorized to issue equity-based awards under our 2014 Incentive Plan, our 2017 Incentive Plan and our 2022 Incentive Plan, each of which our stockholders have approved. We also award cash bonuses (“China Cash Bonuses”) to our employees in China, which grants are not subject to a formal incentive plan and which can only be settled in cash. We grant such awards to attract, retain and motivate eligible officers, directors, employees and consultants. Under each of the plans, we have granted shares of restricted stock and options to purchase common stock to our officers and employees with exercise prices equal to or greater than the fair value of the underlying shares on the grant date. Stock options and China Cash Bonuses generally expire 10 years from the grant date. All forms of equity awards and China Cash Bonuses vest upon the passage of time, the attainment of performance criteria, or both. When participants exercise stock options, we issue any shares of our common stock resulting from such exercise from new authorized and unallocated shares available at the time of exercise. The following table summarizes activity under our equity incentive plans related to equity-classified stock option grants as of and for the dates and periods noted: Shares Weighted Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 1,618,851 $ 30.31 4.5 $ 1 Granted — — Exercised — — Forfeited, cancelled or expired (80,890) 62.00 Outstanding at March 31, 2024 1,537,961 $ 28.65 4.2 $ — Exercisable at December 31, 2023 1,598,754 30.67 4.4 $ — Exercisable at March 31, 2024 1,518,464 28.65 4.1 $ — The following table summarizes activity related to our liability-classified China Cash Bonuses as of and for the dates and periods noted: Shares Weighted Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 56,750 $ 30.86 5.1 $ — Granted — — Exercised — — Forfeited, cancelled or expired — — Outstanding at March 31, 2024 56,750 $ 30.86 4.8 $ — Exercisable at December 31, 2023 56,750 30.86 5.1 $ — Exercisable at March 31, 2024 56,750 30.86 4.8 $ — The following table presents the change in the liability associated with our China Cash Bonuses included in Accrued expense and other current liabilities (in thousands): Three Months Ended March 31, Year Ended December 31, 2024 2023 Balance at beginning of period $ 11 $ 32 Share-based compensation expense related to China Cash Bonuses (9) (21) Balance at end of period $ 2 $ 11 The following table presents a breakdown of share-based compensation cost included in operating expense (in thousands): Three Months Ended March 31, 2024 2023 Stock options $ 15 $ 143 China Cash Bonuses (9) 12 Total $ 6 $ 155 We record share-based compensation expense in the books of the subsidiary that incurs the expense, while for equity-classified stock options we record the change in additional paid-in capital on the corporate entity because the corporate entity’s equity underlies such stock options.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 14. RELATED PARTY TRANSACTIONS As of March 31, 2024, we owed approximately $1.0 million to members of management representing various operating expense payments made on our behalf. The amounts due are unsecured and non-interest-bearing, with no formal terms of repayment.

CHINA BUSINESS PARTNER

CHINA BUSINESS PARTNER	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
CHINA BUSINESS PARTNER	NOTE 15. CHINA BUSINESS PARTNER We interact with an unrelated entity (the “China Business Partner”) in more than one capacity. Firstly, since 2020, we have been working with the China Business Partner to earn revenue by obtaining business from some of the largest companies in China. Secondly, our artificial intelligence business in the U.S. has purchased substantially all of its inventory from a subsidiary of the China Business Partner which manufactures certain equipment to our specifications. Though we did not make any such inventory purchases during the three months ended March 31, 2024, we did purchase software for internal use from the China Business Partner totaling approximately $0.3 million. In addition, a member of our senior leadership team maintains a role in the senior management structure of the China Business Partner. During the three months ended March 31, 2024 and 2023, we recognized no or de minimis amounts of revenue from the relationship with the China Business Partner. At March 31, 2024 and December 31, 2023, in addition to the outstanding accounts receivable balances from the China Business Partner described in Note 5 , we had outstanding accounts payable to the China Business Partner of $0.7 million and $0.7 million, respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 16. SUBSEQUENT EVENTS Ionic Transactions In May 2024, Ionic advanced to us approximately $0.8 million pursuant to the Amended ELOC Purchase Agreement. During April and May 2024, we issued a total of 4,986,657 shares to Ionic in partial settlement of ELOC Advances.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (13,791)	$ (8,162)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We prepared the accompanying unaudited Condensed Consolidated Balance Sheet as of March 31, 2024, with the audited Consolidated Balance Sheet amounts as of December 31, 2023 presented for comparative purposes, and the related unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss, the Condensed Consolidated Statements of Cash Flows and the Condensed Consolidated Statements of Stockholders’ Deficit three months ended March 31, 2024 in accordance with the instructions for Form 10-Q. In compliance with those instructions, we have omitted certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, though management believes the disclosures made herein are sufficient to ensure that the information presented is not misleading. Our results of operations and our cash flows as of the end of the interim periods reported herein do not necessarily indicate the results we may experience for the remainder of the year or for any other future period. Management believes that we have included all adjustments (including those of a normal, recurring nature) considered necessary to fairly present our unaudited Condensed Consolidated Balance Sheet and our unaudited Condensed Consolidated Statement of Stockholders’ Deficit, each as of March 31, 2024, as well as our unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss and Condensed Consolidated Statements of Cash Flows for all periods presented. You should read our unaudited condensed consolidated interim financial statements and footnotes in conjunction with our consolidated financial statements and footnotes included within the Annual Report on Form 10-K for the year ended December 31, 2022 (the “2023 Form 10-K”).
Consolidation	Consolidation We include all of our subsidiaries in our condensed consolidated financial statements, eliminating all significant intercompany balances and transactions during consolidation.
Use of Estimates	Use of Estimates We prepare our consolidated financial statements in conformity with GAAP. While preparing our financial statements, we make estimates and assumptions that affect amounts reported and disclosed in the consolidated financial statements and accompanying notes. Accordingly, actual results could differ from those estimates. On an ongoing basis, we evaluate our estimates, including those related to accounts receivable, deferred cost of revenue, share-based compensation, deferred income taxes, and inventory reserve, among other items. The impact of the COVID-19 pandemic continues to unfold. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods.
Cash	Cash Our cash consists of funds held in bank accounts.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price). When reporting the fair values of our financial instruments, we prioritize those fair value measurements into one of three levels based on the nature of the inputs, as follows: Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities; Level 2: Valuations based on observable inputs that do not meet the criteria for Level 1, including quoted prices in inactive markets and observable market data for similar, but not identical instruments; and Level 3: Valuations based on unobservable inputs, which are based upon the best available information when external market data is limited or unavailable. The fair value hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For some products or in certain market conditions, observable inputs may not be available. We believe the reported carrying amounts for cash, marketable securities, receivables, prepaids and other current assets, accounts payable, accrued expense and other current liabilities, and short-term debt approximate their fair values because of the short-term nature of these financial instruments.
Foreign Currency Translation	Foreign Currency Translation We report all currency amounts in USD. Our overseas subsidiaries, however, maintain their books and records in their functional currencies, which are GBP in the United Kingdom (“U.K.”) and RMB in China. In general, when consolidating our subsidiaries with non-USD functional currencies, we translate the amounts of assets and liabilities into USD using the exchange rate on the balance sheet date, and the amounts of revenue and expense are translated at the average exchange rate prevailing during the period. The gains and losses resulting from translation of financial statement amounts into USD are recorded as a separate component of accumulated other comprehensive loss within stockholders’ deficit.
Revenue Recognition	Revenue Recognition AI-Based Products We generate revenue by developing AI-based products, including fully-integrated AI solutions which combine our proprietary technology with third-party hardware and software products to meet end-user specifications. Under one type of contract for our AI-based products, we provide a single, continuous service to clients who control the assets as we create them. Accordingly, we recognize the revenue over the period of time during which we provide the service. Under another type of contract, we have performance obligations to provide fully-integrated AI solutions to our customer and we recognize revenue at the point in time when each performance obligation is completed and delivered to, tested by and accepted by our customer. We recognize revenue when we transfer control of the promised goods or services to our customers, and we recognize an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. If there is uncertainty related to the timing of collections from our customer, which may be the case if our customer is not the ultimate end user of our goods, we consider this to be uncertainty of the customer’s ability and intention to pay us when consideration is due. Accordingly, we recognize revenue only when we have transferred control of the goods or services and collectability of consideration from the customer is probable. When customers pay us prior to when we satisfy our obligation to transfer control of promised goods or services, we record the amount that reflects the consideration to which we expect to be entitled as a contract liability until such time as we satisfy our performance obligation. For contracts under which we have not yet completed the performance obligation, deferred costs are recorded for any amounts incurred in advance of the performance obligation. For our contracts with customers, we generally extend short-term credit policies to our customers, typically up to one year for large-scale projects. We record the incremental costs of obtaining contracts as an expense when incurred. We offer extended warranties on our products for periods of one Other We generate revenue from other sources, such as from advertising and marketing services. We recognize the revenue from these contracts at the point in time when we transfer control of the good sold to the customer or when we deliver the promised promotional materials or media content. Substantially all of our contracts with customers that generate Other revenue are completed within one year or less.
Inventory	Inventory
Internal Use Software	Internal Use Software We acquire or develop applications and other software that help us meet our internal needs with respect to operating our business. For such projects, planning cost and other costs related to the preliminary project stage, as well as costs incurred for post-implementation activities, are expensed as incurred. We capitalize costs incurred during the application development phase only when we believe it is probable the development will result in new or additional functionality. The types of costs capitalized during the application development phase include fees incurred with third parties for consulting, programming and other development activities performed to complete the software. We amortize our internal use software on a straight-line basis over an estimated useful life of three years. If we identify any internal use software to be abandoned, the cost less the accumulated amortization, if any, is recorded as amortization expense. Once we have fully amortized internal use software costs that we capitalized, we remove such amounts from their respective accounts.
Net Income (Loss) per Share	Net Income (Loss) per Share We calculate basic net income (loss) per share using the weighted-average number of common stock shares outstanding during the period. For the calculation of diluted net income (loss) per share, we give effect to all the shares of common stock that were outstanding during the period plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation when their effect is anti-dilutive. Dilutive potential shares of common stock consist of incremental shares of common stock issuable upon exercise of stock options and warrants.
Segments	Segments Existing GAAP, which establishes a management approach to segment reporting, defines operating segments as components of an entity about which separate, discrete financial information is available for evaluation by the chief operating decision maker. We have identified our Chief Executive Officer as our chief operating decision maker, who reviews operating results to make decisions about allocating resources and assessing performance based upon only one operating segment.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expense categories that are regularly provided to the chief operating decision maker and included in each reported measure of a segment’s profit or loss. The update also requires all annual disclosures about a reportable segment’s profit or loss and assets to be provided in interim periods and for entities with a single reportable segment to provide all the disclosures required by ASC 280, Segment Reporting, including the significant segment expense disclosures. For us, ASU 2023-07 will be effective on January 1, 2024 and interim periods beginning in fiscal year 2025, with early adoption permitted. The updates required by ASU 2023-07 should be applied retrospectively to all periods presented in the financial statements. We do not expect this standard to have a material impact on our results of operations, financial position or cash flows. We have reviewed all accounting pronouncements recently issued by the FASB and the SEC. The authoritative pronouncements that we have already adopted did not have a material effect on our financial condition, results of operations, cash flows or reporting thereof, and except as otherwise noted above, we do not believe that any of the authoritative pronouncements that we have not yet adopted will have a material effect upon our financial condition, results of operations, cash flows or reporting thereof.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Schedule of Cash and Cash Equivalents	The following table, reported in USD, disaggregates our cash balances by currency denomination (in thousands): March 31, 2024 December 31, 2023 Cash denominated in: USD $ 177 $ 31 RMB 16 109 GBP 42 1 HKD 4 4 Total cash $ 239 $ 145
Schedule of Exchange Rates	We used the exchange rates in the following table to translate amounts denominated in non-USD currencies as of and for the periods noted: 2024 2023 Exchange rates at March 31st: GBP:USD 1.262 1.237 RMB:USD 0.138 0.146 HKD:USD 0.128 0.127 Average exchange rate during the three months ended March 31st: RMB:USD 0.139 0.146 GBP:USD 1.270 1.214

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue by Major Category	The following table presents a disaggregation of our revenue by category of products and services (in thousands): Three Months Ended March 31, 2024 2023 AI-based products and services, including amounts from China Business Partner in 2023 (See Note 15 ) $ 387 $ 721 Other — 105 Revenue $ 387 $ 826
Schedule of Disaggregation of Revenue by Country	The following table presents a disaggregation of our revenue by country (in thousands): Three Months Ended March 31, 2024 2023 China $ 387 $ 743 United States and United Kingdom — 83 Revenue $ 387 $ 826

TRADE ACCOUNTS RECEIVABLE (Tabl

TRADE ACCOUNTS RECEIVABLE (Tables)	3 Months Ended
	Mar. 31, 2024
Receivables [Abstract]
Schedule of Components of Prepaid Expense and Other Current Assets	March 31, 2024 December 31, 2023 Gross accounts receivable balance $ 6,823 $ 7,063 Allowance for bad debt (5,668) (5,776) Accounts receivable, net $ 1,155 $ 1,287

PREPAID EXPENSE AND OTHER CUR_2

PREPAID EXPENSE AND OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid Expense and Other Current Assets	The following table presents the components of prepaid expense and other current assets (in thousands): March 31, 2024 December 31, 2023 Other receivables 157 147 Prepaid expense 555 339 Deposits 128 128 Total $ 840 $ 614

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consist of the following (in thousands, except estimated lives): Estimated Life March 31, 2024 December 31, 2023 Vehicles 3 $ 153 153 Computers and equipment 3 1,219 $ 1,217 Furniture and fixtures 3 42 42 Software 3 4,413 4,082 Leasehold improvements 3 206 204 Total property, equipment and software $ 6,033 $ 5,698 Less accumulated depreciation (5,555) (5,509) Total property, equipment and software, net $ 478 $ 189

ACCRUED EXPENSE AND OTHER CUR_2

ACCRUED EXPENSE AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2024
Other Liabilities Disclosure [Abstract]
Schedule of Accrued Expense and Other Current Liabilities	The following table presents the components of Accrued expense and other current liabilities (in thousands): March 31, 2024 December 31, 2023 Accrued compensation and benefit-related expense $ 2,303 $ 3,221 Accrued delinquent payroll taxes 1,031 495 Accrued interest 2,348 1,570 Other accrued expense 3,290 3,577 Other payables 2,099 2,138 Operating lease liability - current 254 288 Other current liabilities 910 632 Total $ 12,235 $ 11,921

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Notes Payable	The following table presents our notes payable (in thousands) as of: March 31, 2024 December 31, 2023 New Mudrick Notes (Past Due) $ 16,307 $ 16,307 Other notes payable 168 156 Notes payable, net of unamortized discount and debt issuance cost $ 16,475 $ 16,463

OBLIGATIONS TO ISSUE COMMON S_2

OBLIGATIONS TO ISSUE COMMON STOCK (TRANSACTIONS WITH IONIC) (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Activity Related to All Obligations to Issue Shares	The following table shows the changes in our obligations to issue common stock (dollars in thousands): 2023 Debentures ELOC Advances Total Obligations to Issue Common Stock Balance at December 31, 2023 $ 4,647 $ 5,386 $ 10,033 Establishment of new obligation to issue shares — 6,619 6,619 Issuance of Shares (10,321) (686) (11,007) Change in measurement of liability 5,674 854 6,528 Balance at March 31, 2024 $ — $ 12,173 $ 12,173 Estimated Number of Shares Issuable Balance at December 31, 2023 9,383,966 10,876,635 20,260,601 Establishment of new obligation to issue shares — 15,356,612 15,356,612 Issuance of Shares (16,271,989) (2,842,200) (19,114,189) Change in estimated number of shares issuable 6,888,023 34,603,811 41,491,834 Balance at March 31, 2024 — 57,994,858 57,994,858 The following table shows the composition of finance cost associated with our obligations to issue common stock (dollars in thousands) for the three months ended March 31, 2024: 2023 Debentures ELOC Advances Total Initial obligation in excess of purchase price $ — $ 2,619 2,619 Change in measurement of liability 5,674 854 6,528 Total $ 5,674 $ 3,473 $ 9,147 The following table shows the composition of finance cost associated with our obligations to issue common stock (dollars in thousands) for the three months ended March 31, 2023: 2022 Debentures First 2023 Debenture Letter Agreement ELOC Advance Total Initial obligation in excess of purchase price $ — $ 1,000 $ 249 $ 325 1,574 Change in measurement of liability 1,279 558 26 139 2,002 Total $ 1,279 $ 1,558 $ 275 $ 464 $ 3,576

STOCKHOLDERS' DEFICIT (Tables)

STOCKHOLDERS' DEFICIT (Tables)	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
Schedule of Share-based Payment Arrangement, Activity	The following table summarizes information related to our equity-classified stock warrant issuances as of and for the dates and periods noted: Shares Weighted Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 1,007,441 $ 39.90 2.7 $ — Granted — — Exercised — — Forfeited, cancelled or expired — — Outstanding at March 31, 2024 1,007,441 $ 39.90 2.4 $ —
Schedule of Stock Option Activity Under Equity Incentive Plans	The following table summarizes activity under our equity incentive plans related to equity-classified stock option grants as of and for the dates and periods noted: Shares Weighted Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 1,618,851 $ 30.31 4.5 $ 1 Granted — — Exercised — — Forfeited, cancelled or expired (80,890) 62.00 Outstanding at March 31, 2024 1,537,961 $ 28.65 4.2 $ — Exercisable at December 31, 2023 1,598,754 30.67 4.4 $ — Exercisable at March 31, 2024 1,518,464 28.65 4.1 $ — The following table summarizes activity related to our liability-classified China Cash Bonuses as of and for the dates and periods noted: Shares Weighted Average Exercise Price Per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 56,750 $ 30.86 5.1 $ — Granted — — Exercised — — Forfeited, cancelled or expired — — Outstanding at March 31, 2024 56,750 $ 30.86 4.8 $ — Exercisable at December 31, 2023 56,750 30.86 5.1 $ — Exercisable at March 31, 2024 56,750 30.86 4.8 $ —
Schedule of Change in Liability Balance Associated with China Cash Bonuses	The following table presents the change in the liability associated with our China Cash Bonuses included in Accrued expense and other current liabilities (in thousands): Three Months Ended March 31, Year Ended December 31, 2024 2023 Balance at beginning of period $ 11 $ 32 Share-based compensation expense related to China Cash Bonuses (9) (21) Balance at end of period $ 2 $ 11
Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount	The following table presents a breakdown of share-based compensation cost included in operating expense (in thousands): Three Months Ended March 31, 2024 2023 Stock options $ 15 $ 143 China Cash Bonuses (9) 12 Total $ 6 $ 155

ORGANIZATION AND BUSINESS (Deta

ORGANIZATION AND BUSINESS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stockholders' deficit	$ 42,436	$ 39,590	$ 25,777	$ 20,425
Net cash used in operating activities	3,400
Cash and cash equivalents	239	145
Accrued delinquent payroll taxes	$ 1,031	$ 495

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Cash and cash equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Total cash	$ 239	$ 145
USD
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Total cash	177	31
RMB
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Total cash	16	109
GBP
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Total cash	42	1
HKD
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Total cash	$ 4	$ 4

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Exchange Rates (Details)	Mar. 31, 2024	Mar. 31, 2023
GBP:USD
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency exchange rate	1.262	1.237
GBP:USD | Weighted Average
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency exchange rate	1.270	1.214
RMB:USD
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency exchange rate	0.138	0.146
RMB:USD | Weighted Average
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency exchange rate	0.139	0.146
HKD:USD
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency exchange rate	0.128	0.127

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) segment shares	Dec. 31, 2023 USD ($) shares
Disaggregation of Revenue [Line Items]
Term of contract	1 year
Reserve for inventory | $	$ 2.2	$ 2.2
Number of operating segments | segment	1
Stock options
Disaggregation of Revenue [Line Items]
Shares of common stock outstanding (in shares) | shares	1,537,961	1,618,851
Software
Disaggregation of Revenue [Line Items]
Estimate useful life (in years)	3 years
Other
Disaggregation of Revenue [Line Items]
Performance period (or less)	1 year
Minimum
Disaggregation of Revenue [Line Items]
Extended warranty period	1 year
Maximum
Disaggregation of Revenue [Line Items]
Extended warranty period	3 years

CONCENTRATION OF RISK (Details)

CONCENTRATION OF RISK (Details) - Customer Concentration Risk	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Customer A | Revenue
Concentration Risk [Line Items]
Concentration risk, percentage		50%
Customer A | Gross Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage	35%		39%
Customer B | Gross Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage	33%		37%
Customer C | Gross Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, percentage	11%		13%

REVENUE - Schedule of Disaggreg

REVENUE - Schedule of Disaggregated by Major Category (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 387	$ 826
AI-based products and services, including amounts from China Business Partner in 2023 (See Note 15)
Disaggregation of Revenue [Line Items]
Revenue	387	721
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 0	$ 105

REVENUE - Schedule of Disaggr_2

REVENUE - Schedule of Disaggregation by Country (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 387	$ 826
China
Disaggregation of Revenue [Line Items]
Revenue	387	743
United States and United Kingdom
Disaggregation of Revenue [Line Items]
Revenue	$ 0	$ 83

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue recognized on liability balances	$ 0	$ 0
Revenue recognized from performance obligations satisfied in previous periods	0	$ 0
AI-Based Products
Disaggregation of Revenue [Line Items]
Revenue recognized on liability balances	$ 400,000
Completed projects value			$ 1,400,000

TRADE ACCOUNTS RECEIVABLE - Sch

TRADE ACCOUNTS RECEIVABLE - Schedule of Components of Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Receivables [Abstract]
Gross accounts receivable balance	$ 6,823	$ 7,063
Allowance for bad debt	(5,668)	(5,776)
Accounts receivable, net	$ 1,155	$ 1,287

TRADE ACCOUNTS RECEIVABLE - Nar

TRADE ACCOUNTS RECEIVABLE - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
China | AI-Based Products
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	$ 0.7	$ 0.7

DEFERRED COST OF REVENUE (Detai

DEFERRED COST OF REVENUE (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Deferred cost of revenue	$ 6,178,000		$ 6,644,000
Revenue recognized on liability balances	0	$ 0
China Business Partner
Disaggregation of Revenue [Line Items]
Revenue recognized on liability balances	$ 400,000

PREPAID EXPENSE AND OTHER CUR_3

PREPAID EXPENSE AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Prepaid Expense and Other Current Assets
Other receivables	$ 157	$ 147
Prepaid expense	555	339
Deposits	128	128
Total	$ 840	$ 614

PROPERTY AND EQUIPMENT - Schedu

PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property, equipment and software	$ 6,033	$ 5,698
Less accumulated depreciation	(5,555)	(5,509)
Total property, equipment and software, net	$ 478	189
Vehicles
Property, Plant and Equipment [Line Items]
Estimated Life (Years)	3 years
Total property, equipment and software	$ 153	153
Computers and equipment
Property, Plant and Equipment [Line Items]
Estimated Life (Years)	3 years
Total property, equipment and software	$ 1,219	1,217
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Life (Years)	3 years
Total property, equipment and software	$ 42	42
Software
Property, Plant and Equipment [Line Items]
Estimated Life (Years)	3 years
Total property, equipment and software	$ 4,413	4,082
Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated Life (Years)	3 years
Total property, equipment and software	$ 206	$ 204

ACCRUED EXPENSE AND OTHER CUR_3

ACCRUED EXPENSE AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Accrued compensation and benefit-related expense	$ 2,303	$ 3,221
Accrued delinquent payroll taxes	1,031	495
Accrued interest	2,348	1,570
Other accrued expense	3,290	3,577
Other payables	2,099	2,138
Operating lease liability - current	$ 254	$ 288
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total	Total
Other current liabilities	$ 910	$ 632
Total	12,235	$ 11,921
Other current liabilities, potential investor	$ 500

NOTES PAYABLE - Schedule of Not

NOTES PAYABLE - Schedule of Notes Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 14, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Other notes payable	$ 168	$ 156
Notes payable, net of unamortized discount and debt issuance cost	16,475	16,463
New Mudrick Notes (Past Due) | Notes Payable
Short-term Debt [Line Items]
New Mudrick Notes (Past Due)	$ 16,307	$ 16,307	$ 14,400	$ 14,400

NOTES PAYABLE - Narrative (Deta

NOTES PAYABLE - Narrative (Details) - USD ($)		3 Months Ended
	Mar. 14, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 03, 2021
Debt Instrument [Line Items]
Interest expense		$ 943,000	$ 1,544,000
Short-term Note Payable to Private Lender
Debt Instrument [Line Items]
Debt, weighted average interest rate		7.10%
Debt instrument, weighted average remaining term		4 years 3 months 18 days
New Mudrick Notes (Past Due) | Short-term Note Payable to Private Lender
Debt Instrument [Line Items]
Principal balance of original mudrick loans	$ 14,400,000	$ 16,307,000		$ 16,307,000	$ 14,400,000
Accrued interest on loan			600,000
Interest expense			300,000
New Mudrick Notes (Past Due) | Short-term Note Payable to Private Lender | Accrued Expense and Other Current Liabilities
Debt Instrument [Line Items]
Accrued interest on loan					$ 800,000
New Mudrick Notes (Past Due) | Loans Payable
Debt Instrument [Line Items]
Principal balance of original mudrick loans						$ 30,000,000
Debt interest rate percentage	20.50%					16.50%
Increase, interest rate	2%
New Mudrick Note Purchase Agreement | Mudrick Lenders
Debt Instrument [Line Items]
Principal balance of original mudrick loans	$ 16,300,000
Accrued interest on loan	1,100,000
Interest expense	$ 800,000		$ 800,000

OBLIGATIONS TO ISSUE COMMON S_3

OBLIGATIONS TO ISSUE COMMON STOCK (TRANSACTIONS WITH IONIC) - Narrative (Details) $ / shares in Units, $ in Thousands										3 Months Ended		12 Months Ended
	Mar. 14, 2024 USD ($)	Jan. 09, 2024 USD ($) $ / shares	Jan. 08, 2024 USD ($)	Sep. 29, 2023 USD ($)	Sep. 15, 2023 USD ($)	Jun. 30, 2023 shares	Mar. 14, 2023 USD ($) debenture shares	Jan. 05, 2023 USD ($) day $ / shares	Oct. 06, 2022 USD ($) $ / shares shares	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 USD ($) shares
Debt Instrument [Line Items]
Obligations to issue common stock										$ 12,173		$ 10,033
Common stock issued pursuant to agreements with Ionic										11,007	$ 2,985
Letter Agreement
Debt Instrument [Line Items]
Obligations to issue common stock												200
Establishment of new obligation to issue shares (in shares) | shares						200,715
2022 Debentures
Debt Instrument [Line Items]
Obligations to issue common stock										$ 10,300		$ 3,100	$ 1,900
Additional shares to issue (in shares) | shares										16,271,989		2,230,814
Ionic
Debt Instrument [Line Items]
Additional shares to issue (in shares) | shares										57,994,858		20,260,601
Settlement shares (in shares) | shares							16,928,989		3,129,668			657,000	898,854
Aggregate fair value of obligation										$ 12,173		$ 10,033
Common stock issued pursuant to agreements with Ionic										11,007
Establishment of new obligation to issue shares										$ 6,619
Establishment of new obligation to issue shares (in shares) | shares										15,356,612
Common stock issuance upon note payable conversion (in shares) | shares										19,114,189
Ionic | ELOC Purchase Agreement
Debt Instrument [Line Items]
Sale of stock, amount authorized in transaction									$ 50,000
Stock purchase obligation, period of purchase									36 months
Required minimum closing trading price (in usd per share) | $ / shares									$ 0.20
Sale of stock, additional number of shares issued in percentage									2.50%
Cash received on sale of shares									$ 3,000
Stockholder approval, outstanding percentage of common stock percentage									19.99%
Payable termination fee									$ 500
Ionic | Maximum | ELOC Purchase Agreement
Debt Instrument [Line Items]
Sale of stock, purchase price, percentage		80%							80%
Ionic | Minimum | ELOC Purchase Agreement
Debt Instrument [Line Items]
Sale of stock, amount authorized in transaction									$ 25,000
Sale of stock, purchase price, percentage									70%
Ionic | Letter Agreement
Debt Instrument [Line Items]
Initial liability amount									$ 3,600
Ionic | Letter Agreement | Convertible Subordinated Debt
Debt Instrument [Line Items]
Principal balance of original mudrick loans							$ 2,800		2,800
Repurchase amount							$ 2,500		$ 2,500
Number of debentures | debenture							2
Ionic | 2022 Debentures
Debt Instrument [Line Items]
Additional shares to issue (in shares) | shares													1,720,349
Ionic | First Debenture Purchase Agreement | Convertible Subordinated Debt | First Debenture
Debt Instrument [Line Items]
Principal balance of original mudrick loans							$ 1,700
Repurchase amount							1,500
Ionic | Second Debenture Purchase Agreement | Convertible Subordinated Debt | Second Debenture
Debt Instrument [Line Items]
Principal balance of original mudrick loans							1,100
Repurchase amount							$ 1,000
Ionic | 2023 Debentures
Debt Instrument [Line Items]
Additional shares to issue (in shares) | shares										0		9,383,966
Aggregate fair value of obligation										$ 0		$ 4,647
Common stock issued pursuant to agreements with Ionic										10,321
Establishment of new obligation to issue shares	$ 4,100									$ 0
Establishment of new obligation to issue shares (in shares) | shares							3,669,228			0
Common stock issuance upon note payable conversion (in shares) | shares										16,271,989
Ionic | Debenture Purchase Agreement Amendment | Convertible Subordinated Debt
Debt Instrument [Line Items]
Beneficial ownership limitation percentage									4.99%
Ionic | Letter Agreement With Ionic | ELOC Purchase Agreement
Debt Instrument [Line Items]
Cash received on sale of shares								$ 500
Debt conversion percentage					80%
Suspension from trading or delisting, trading days | day								10
Minimum trading amount								$ 13,900
Commitment fee				$ 3,800
Sale of stock, maximum trading amount					$ 20,000
Ionic | Letter Agreement With Ionic | Maximum | ELOC Purchase Agreement
Debt Instrument [Line Items]
Conversion price (in usd per share) | $ / shares		$ 0.25						$ 0.25
Debt conversion percentage								80%
Commitment fee					3,000
Ionic | Letter Agreement With Ionic | Minimum | ELOC Purchase Agreement
Debt Instrument [Line Items]
Debt conversion percentage								70%
Commitment fee		$ 3,800	$ 500		$ 500
Ionic | ELOC Advances
Debt Instrument [Line Items]
Principal balance of original mudrick loans										$ 4,000
Additional shares to issue (in shares) | shares										57,994,858		10,876,635
Aggregate fair value of obligation										$ 12,173		$ 5,386
Finance cost										2,600
Common stock issued pursuant to agreements with Ionic										686
Establishment of new obligation to issue shares										$ 6,619
Establishment of new obligation to issue shares (in shares) | shares										15,356,612
Common stock issuance upon note payable conversion (in shares) | shares										2,842,200

OBLIGATIONS TO ISSUE COMMON S_4

OBLIGATIONS TO ISSUE COMMON STOCK (TRANSACTIONS WITH IONIC) - Schedule of Activity Related to All Obligations to Issue Shares (Details) - USD ($) $ in Thousands				3 Months Ended
	Mar. 14, 2024	Jun. 30, 2023	Mar. 14, 2023	Mar. 31, 2024	Mar. 31, 2023
Obligations to Issue Common Stock
Issuance of Shares				$ (11,007)	$ (2,985)
Convertible Debenture Rollforward [Roll Forward]
Total				9,147	3,576
Ionic
Obligations to Issue Common Stock
Beginning balance of convertible debenture, current				10,033
Establishment of new obligation to issue shares				6,619
Issuance of Shares				(11,007)
Change in measurement of liability				6,528	2,002
Ending balance of convertible debenture, current				$ 12,173
Convertible Debenture Rollforward [Roll Forward]
Estimated Number of Shares Issuable, Beginning (in shares)				20,260,601
Establishment of new obligation to issue shares (in shares)				15,356,612
Issuance of Shares (in shares)				(19,114,189)
Change in estimated number of shares issuable (in shares)				41,491,834
Estimated Number of Shares Issuable, Ending (in shares)				57,994,858
Initial obligation in excess of purchase price				$ 2,619	1,574
Change in measurement of liability				6,528	2,002
Total				$ 9,147	3,576
2022 Debentures
Convertible Debenture Rollforward [Roll Forward]
Estimated Number of Shares Issuable, Beginning (in shares)				2,230,814
Estimated Number of Shares Issuable, Ending (in shares)				16,271,989
2022 Debentures | Ionic
Obligations to Issue Common Stock
Change in measurement of liability					$ 1,279
Convertible Debenture Rollforward [Roll Forward]
Estimated Number of Shares Issuable, Beginning (in shares)					1,720,349
Initial obligation in excess of purchase price					$ 0
Change in measurement of liability					1,279
Total					1,279
2023 Debentures | Ionic
Obligations to Issue Common Stock
Beginning balance of convertible debenture, current				$ 4,647
Establishment of new obligation to issue shares	$ 4,100			0
Issuance of Shares				(10,321)
Change in measurement of liability				5,674	558
Ending balance of convertible debenture, current				$ 0
Convertible Debenture Rollforward [Roll Forward]
Estimated Number of Shares Issuable, Beginning (in shares)				9,383,966
Establishment of new obligation to issue shares (in shares)			3,669,228	0
Issuance of Shares (in shares)				(16,271,989)
Change in estimated number of shares issuable (in shares)				6,888,023
Estimated Number of Shares Issuable, Ending (in shares)				0
Initial obligation in excess of purchase price				$ 0	1,000
Change in measurement of liability				5,674	558
Total				5,674	1,558
Letter Agreement
Convertible Debenture Rollforward [Roll Forward]
Establishment of new obligation to issue shares (in shares)		200,715
Letter Agreement | Ionic
Obligations to Issue Common Stock
Change in measurement of liability					26
Convertible Debenture Rollforward [Roll Forward]
Initial obligation in excess of purchase price					249
Change in measurement of liability					26
Total					275
ELOC Advances | Ionic
Obligations to Issue Common Stock
Beginning balance of convertible debenture, current				5,386
Establishment of new obligation to issue shares				6,619
Issuance of Shares				(686)
Change in measurement of liability				854	139
Ending balance of convertible debenture, current				$ 12,173
Convertible Debenture Rollforward [Roll Forward]
Estimated Number of Shares Issuable, Beginning (in shares)				10,876,635
Establishment of new obligation to issue shares (in shares)				15,356,612
Issuance of Shares (in shares)				(2,842,200)
Change in estimated number of shares issuable (in shares)				34,603,811
Estimated Number of Shares Issuable, Ending (in shares)				57,994,858
Initial obligation in excess of purchase price				$ 2,619	325
Change in measurement of liability				854	139
Total				$ 3,473	$ 464

STOCKHOLDERS' DEFICIT - Narrati

STOCKHOLDERS' DEFICIT - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 shares
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option award expiration period	10 years
Ionic | Partial Settlement of ELOC Advances
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued in transaction (in shares)	10,499,291

STOCKHOLDERS' DEFICIT - Schedul

STOCKHOLDERS' DEFICIT - Schedule of Share-based Payment Arrangement, Activity (Details) - Warrant - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Shares
Outstanding at beginning of period (in share)	1,007,441
Granted (in shares)	0
Exercised (in shares)	0
Forfeited, cancelled or expired (in shares)	0
Outstanding at end of period (in shares)	1,007,441	1,007,441
Weighted Average Exercise Price Per Share
Outstanding at beginning of period (in dollars per share)	$ 39.90
Granted (in dollars per share)	0
Exercised (in dollars per share)	0
Forfeited, cancelled or expired (in dollars per share)	0
Outstanding at end of period (in dollars per share)	$ 39.90	$ 39.90
Weighted-Average Remaining Contractual Term
Outstanding (term)	2 years 4 months 24 days	2 years 8 months 12 days
Aggregate Intrinsic Value (in thousands)
Outstanding	$ 0	$ 0

STOCKHOLDERS' DEFICIT - Sched_2

STOCKHOLDERS' DEFICIT - Schedule of Stock Option Activity Under Equity Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Stock options
Shares
Outstanding at beginning of period (in shares)	1,618,851
Granted (in shares)	0
Exercised (in shares)	0
Forfeited, cancelled or expired (in shares)	(80,890)
Outstanding at end of period (in shares)	1,537,961	1,618,851
Options exercisable (in shares)	1,518,464	1,598,754
Weighted Average Exercise Price Per Share
Outstanding at beginning of period (in dollars per share)	$ 30.31
Granted (in dollars per share)	0
Exercised (in dollars per share)	0
Forfeited, cancelled or expired (in dollars per share)	62
Outstanding at end of period (in dollars per share)	28.65	$ 30.31
Options exercisable (in dollars per share)	$ 28.65	$ 30.67
Weighted-Average Remaining Contractual Term
Outstanding (term)	4 years 2 months 12 days	4 years 6 months
Options exercisable (term)	4 years 1 month 6 days	4 years 4 months 24 days
Aggregate Intrinsic Value (in thousands)
Outstanding	$ 0	$ 1
Options exercisable	$ 0	$ 0
China Cash Bonuses
Shares
Outstanding at beginning of period (in shares)	56,750
Granted (in shares)	0
Exercised (in shares)	0
Forfeited, cancelled or expired (in shares)	0
Outstanding at end of period (in shares)	56,750	56,750
Options exercisable (in shares)	56,750	56,750
Weighted Average Exercise Price Per Share
Outstanding at beginning of period (in dollars per share)	$ 30.86
Granted (in dollars per share)	0
Exercised (in dollars per share)	0
Forfeited, cancelled or expired (in dollars per share)	0
Outstanding at end of period (in dollars per share)	30.86	$ 30.86
Options exercisable (in dollars per share)	$ 30.86	$ 30.86
Weighted-Average Remaining Contractual Term
Outstanding (term)	4 years 9 months 18 days	5 years 1 month 6 days
Options exercisable (term)	4 years 9 months 18 days	5 years 1 month 6 days
Aggregate Intrinsic Value (in thousands)
Outstanding	$ 0	$ 0
Options exercisable	$ 0	$ 0

STOCKHOLDERS' DEFICIT - Sched_3

STOCKHOLDERS' DEFICIT - Schedule of Change in Liability Balance Associated with China Cash Bonuses (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Share-based Payment Award Liability [Roll Forward]
Share-based compensation expense related to China Cash Bonuses	$ 6	$ 155
China Cash Bonuses
Share-based Payment Award Liability [Roll Forward]
Balance at beginning of period	11	32	$ 32
Share-based compensation expense related to China Cash Bonuses	(9)	$ 12	(21)
Balance at end of period	$ 2		$ 11

STOCKHOLDERS' DEFICIT - Sched_4

STOCKHOLDERS' DEFICIT - Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 6	$ 155
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	15	143
China Cash Bonuses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ (9)	$ 12	$ (21)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Millions	Mar. 31, 2024 USD ($)
Management | Advances To Senior Management For Operating Expenses
Related Party Transaction [Line Items]
Accounts payable	$ 1

CHINA BUSINESS PARTNER (Details

CHINA BUSINESS PARTNER (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Trade accounts receivable, net	$ 1,155	$ 1,287
China Business Partner
Related Party Transaction [Line Items]
Payments to purchase software	300
China Business Partner | VIE
Related Party Transaction [Line Items]
Trade accounts receivable, net	$ 700	$ 700

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Ionic - USD ($) $ in Millions	2 Months Ended	3 Months Ended
	May 20, 2024	Mar. 31, 2024
Partial Settlement of ELOC Advances
Subsequent Event [Line Items]
Number of shares issued in transaction (in shares)		10,499,291
Partial Settlement of ELOC Advances | Subsequent Event
Subsequent Event [Line Items]
Number of shares issued in transaction (in shares)	4,986,657
ELOC Advances
Subsequent Event [Line Items]
New Mudrick Notes (Past Due)		$ 4
ELOC Advances | Subsequent Event
Subsequent Event [Line Items]
New Mudrick Notes (Past Due)	$ 0.8