Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 11, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40808 | |
Entity Registrant Name | Greenidge Generation Holdings Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-1746728 | |
Entity Address, Address Line One | 135 Rennell Drive | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, City or Town | Fairfield | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06890 | |
City Area Code | 203 | |
Local Phone Number | 718-5960 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001844971 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Class A Common Stock, $0.0001 par value | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, $0.0001 par value | |
Trading Symbol | GREE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 16,213,043 | |
8.50% Senior Notes due 2026 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 8.50% Senior Notes due 2026 | |
Trading Symbol | GREEL | |
Security Exchange Name | NASDAQ | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 28,526,372 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 28,013,000 | $ 82,599,000 |
Restricted cash | 10,500,000 | 0 |
Short-term investments | 0 | 496,000 |
Digital assets | 337,000 | 476,000 |
Accounts receivable | 4,704,000 | 5,524,000 |
Prepaid expenses | 9,694,000 | 9,146,000 |
Emissions and carbon offset credits | 1,259,000 | 2,361,000 |
Total current assets | 54,507,000 | 100,602,000 |
LONG-TERM ASSETS: | ||
Property and equipment, net | 246,071,000 | 217,091,000 |
Right-of-use assets | 222,000 | 1,472,000 |
Intangible assets, net | 2,841,000 | 3,537,000 |
Goodwill | 3,062,000 | 3,062,000 |
Deferred tax assets | 29,000 | 15,058,000 |
Other long-term assets | 615,000 | 445,000 |
Total assets | 307,347,000 | 341,267,000 |
CURRENT LIABILITIES: | ||
Accounts payable | 4,064,000 | 5,923,000 |
Accrued emissions expense | 5,226,000 | 2,634,000 |
Accrued expenses | 15,560,000 | 10,375,000 |
Income taxes payable | 185,000 | 2,481,000 |
Long-term debt, current portion | 73,218,000 | 19,577,000 |
Lease obligations, current portion | 112,000 | 736,000 |
Total current liabilities | 98,365,000 | 41,726,000 |
LONG-TERM LIABILITIES: | ||
Long-term debt, net of current portion and deferred financing fees | 96,515,000 | 75,251,000 |
Lease obligations, net of current portion | 137,000 | 193,000 |
Environmental liabilities | 22,415,000 | 11,306,000 |
Other long-term liabilities | 358,000 | 368,000 |
Total liabilities | 217,790,000 | 128,844,000 |
COMMITMENTS AND CONTINGENCIES (NOTE 13) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, par value $0.0001, 20,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, par value $0.0001, 3,000,000,000 shares authorized, 42,964,462 and 40,865,336 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 4,000 | 4,000 |
Additional paid-in capital | 290,576,000 | 281,815,000 |
Cumulative translation adjustment | (139,000) | 0 |
Accumulated deficit | (200,884,000) | (69,396,000) |
Total stockholders' equity | 89,557,000 | 212,423,000 |
Total liabilities and stockholders' equity | $ 307,347,000 | $ 341,267,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, issued (in shares) | 42,964,462 | 40,865,336 |
Common stock, outstanding (in shares) | 42,964,462 | 40,865,336 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
REVENUE: | ||||
Total revenue | $ 29,359 | $ 35,754 | $ 98,353 | $ 62,993 |
OPERATING COSTS AND EXPENSES: | ||||
Selling, general and administrative | 10,240 | 5,446 | 35,720 | 12,017 |
Merger and other costs | 242 | 29,847 | 940 | 31,095 |
Depreciation and amortization | 13,835 | 2,667 | 22,680 | 5,531 |
Impairment of long-lived assets | 0 | 0 | 71,500 | 0 |
Remeasurement of environmental liability | 0 | 0 | 11,109 | 0 |
Total operating costs and expenses | 46,412 | 47,619 | 199,003 | 67,689 |
Loss from operations | (17,053) | (11,865) | (100,650) | (4,696) |
OTHER EXPENSE, NET: | ||||
Interest expense, net | (5,430) | (1,009) | (15,693) | (1,377) |
Interest expense - related party | 0 | 0 | 0 | (22) |
Gain (loss) on sale of digital assets | 0 | 18 | (15) | 159 |
Loss on sale of assets | (759) | 0 | (130) | 0 |
Other income (loss), net | 144 | (29) | 200 | (23) |
Total other expense, net | (6,045) | (1,020) | (15,638) | (1,263) |
Loss before income taxes | (23,098) | (12,885) | (116,288) | (5,959) |
Provision for income taxes | 79 | (4,989) | 15,200 | (2,860) |
Net loss | (23,177) | (7,896) | (131,488) | (3,099) |
Foreign currency translation adjustment | 27 | 0 | (139) | 0 |
Comprehensive loss | $ (23,150) | $ (7,896) | $ (131,627) | $ (3,099) |
Loss per share: | ||||
Basic (in dollars per share) | $ (0.55) | $ (0.26) | $ (3.16) | $ (0.13) |
Diluted (in dollars per share) | $ (0.55) | $ (0.26) | $ (3.16) | $ (0.13) |
Cryptocurrency datacenter | ||||
REVENUE: | ||||
Total revenue | $ 18,272 | $ 31,156 | $ 61,571 | $ 54,217 |
OPERATING COSTS AND EXPENSES: | ||||
Cost of revenue | 14,675 | 5,974 | 34,795 | 11,504 |
Power and capacity | ||||
REVENUE: | ||||
Total revenue | 3,613 | 3,077 | 12,395 | 7,255 |
OPERATING COSTS AND EXPENSES: | ||||
Cost of revenue | 3,760 | 2,831 | 10,955 | 6,688 |
Services and other | ||||
REVENUE: | ||||
Total revenue | 7,474 | 1,521 | 24,387 | 1,521 |
OPERATING COSTS AND EXPENSES: | ||||
Cost of revenue | $ 3,660 | $ 854 | $ 11,304 | $ 854 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid - In Capital | Common Units | Preferred Units | Senior Priority Units | Total Members' Capital | Accumulated Deficit | Cumulative Translation Adjustment |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2020 | 0 | 0 | ||||||||
Stockholders' equity, beginning balance at Dec. 31, 2020 | $ 44,360 | $ 0 | $ 0 | $ 0 | $ (24,916) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Contribution of GGH Preferred Units, GGH Senior Priority Units, and notes payable to related party for GGHI Common Stock (in shares) | 26,800,300,000 | (39,228,000) | (10,000,000) | |||||||
Contribution of GGH Preferred Units, GGH Senior Priority Units, and notes payable to related party for GGHI Common Stock | 3,615 | $ 3 | 72,888 | $ (39,074) | $ (30,202) | $ (69,276) | ||||
Contribution of GGH Common Units for GGHI Common Stock (in shares) | 1,199,700,000 | |||||||||
Proceeds from sale of preferred stock, net of stock issuance costs/Shares issued to Support.com shareholders upon Merger, net of issuance costs (in shares) | 1,620,000,000 | |||||||||
Proceeds from sale of preferred stock, net of stock issuance costs/Shares issued to Support.com shareholders upon Merger, net of issuance costs | 37,113 | $ 1 | 37,112 | |||||||
Stock-based compensation expense | 1,063 | 1,063 | ||||||||
Proceeds from stock options exercised (in shares) | 160,000,000 | |||||||||
Proceeds from stock options exercised | 1,000 | 1,000 | ||||||||
Stock issued to purchase miners (in shares) | 160,000,000 | |||||||||
Stock issued to purchase miners | 991 | 991 | ||||||||
Net loss | 4,797 | 4,797 | ||||||||
Stockholders' equity ending balance (in shares) at Jun. 30, 2021 | 1,620,000,000 | 28,320,000,000 | ||||||||
Stockholders equity, ending balance at Jun. 30, 2021 | 92,939 | $ 1 | $ 3 | 113,054 | (20,119) | |||||
Members' capital, common units, beginning balance (in shares) at Dec. 31, 2020 | 750,000 | |||||||||
Members' capital, beginning balance at Dec. 31, 2020 | $ 0 | $ 39,074 | $ 30,202 | 69,276 | ||||||
Members' capital, preferred units, beginning balance (in shares) at Dec. 31, 2020 | 39,228,000 | |||||||||
Members' capital, senior priority units, beginning balance (in shares) at Dec. 31, 2020 | 10,000,000 | |||||||||
Increase (Decrease) In Limited Liability Company (LLC) Members' Equity [Roll Forward] | ||||||||||
Contribution of GGH Preferred Units, GGH Senior Priority Units, and notes payable to related party for GGHI Common Stock (in shares) | 26,800,300,000 | (39,228,000) | (10,000,000) | |||||||
Contribution of GGH Preferred Units, GGH Senior Priority Units, and notes payable to related party for GGHI Common Stock | 3,615 | $ 3 | 72,888 | $ (39,074) | $ (30,202) | (69,276) | ||||
Contribution of GGH Common Units for GGHI Common Stock | $ (750) | |||||||||
Members' capital, common units, ending balance (in shares) at Jun. 30, 2021 | 0 | |||||||||
Members' capital, ending balance at Jun. 30, 2021 | $ 0 | $ 0 | $ 0 | 0 | ||||||
Members' capital, preferred units, ending balance (in shares) at Jun. 30, 2021 | 0 | |||||||||
Members' capital, senior priority units, ending balance (in shares) at Jun. 30, 2021 | 0 | |||||||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2020 | 0 | 0 | ||||||||
Stockholders' equity, beginning balance at Dec. 31, 2020 | 44,360 | $ 0 | $ 0 | 0 | (24,916) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of shares for investor fee associated with successful completion of Merger | 17,826 | |||||||||
Issuance of warrants to advisor in connection with completion of Merger | 8,779 | |||||||||
Net loss | (3,099) | |||||||||
Stockholders' equity ending balance (in shares) at Sep. 30, 2021 | 0 | 38,667,705,000 | ||||||||
Stockholders equity, ending balance at Sep. 30, 2021 | 205,802 | $ 0 | $ 4 | 233,813 | (28,015) | |||||
Members' capital, common units, beginning balance (in shares) at Dec. 31, 2020 | 750,000 | |||||||||
Members' capital, beginning balance at Dec. 31, 2020 | $ 0 | $ 39,074 | $ 30,202 | 69,276 | ||||||
Members' capital, preferred units, beginning balance (in shares) at Dec. 31, 2020 | 39,228,000 | |||||||||
Members' capital, senior priority units, beginning balance (in shares) at Dec. 31, 2020 | 10,000,000 | |||||||||
Members' capital, common units, ending balance (in shares) at Sep. 30, 2021 | 0 | |||||||||
Members' capital, ending balance at Sep. 30, 2021 | $ 0 | $ 0 | $ 0 | 0 | ||||||
Members' capital, preferred units, ending balance (in shares) at Sep. 30, 2021 | 0 | |||||||||
Members' capital, senior priority units, ending balance (in shares) at Sep. 30, 2021 | 0 | |||||||||
Stockholders' equity, beginning balance (in shares) at Jun. 30, 2021 | 1,620,000,000 | 28,320,000,000 | ||||||||
Stockholders' equity, beginning balance at Jun. 30, 2021 | 92,939 | $ 1 | $ 3 | 113,054 | (20,119) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Proceeds from sale of preferred stock, net of stock issuance costs/Shares issued to Support.com shareholders upon Merger, net of issuance costs (in shares) | 2,960,731,000 | |||||||||
Proceeds from sale of preferred stock, net of stock issuance costs/Shares issued to Support.com shareholders upon Merger, net of issuance costs | 91,588 | 91,588 | ||||||||
Issuance of shares for investor fee associated with successful completion of Merger | 17,826 | $ 0 | 17,826 | |||||||
Issuance of shares for investor fee associated with successful completion of Merger (in shares) | 562,174,000 | |||||||||
Issuance of warrants to advisor in connection with completion of Merger | 8,779 | 8,779 | ||||||||
Conversion of preferred stock (in shares) | (1,620,000,000) | 6,480,000,000 | ||||||||
Conversion of preferred stock | 0 | $ (1) | $ 1 | |||||||
Shares issued upon exercise of warrants (in shares) | 344,800,000 | |||||||||
Shares issued upon exercise of warrants | 2,155 | 2,155 | ||||||||
Stock-based compensation expense | 411 | 411 | ||||||||
Net loss | (7,896) | (7,896) | ||||||||
Stockholders' equity ending balance (in shares) at Sep. 30, 2021 | 0 | 38,667,705,000 | ||||||||
Stockholders equity, ending balance at Sep. 30, 2021 | 205,802 | $ 0 | $ 4 | 233,813 | (28,015) | |||||
Members' capital, common units, beginning balance (in shares) at Jun. 30, 2021 | 0 | |||||||||
Members' capital, beginning balance at Jun. 30, 2021 | $ 0 | $ 0 | $ 0 | 0 | ||||||
Members' capital, preferred units, beginning balance (in shares) at Jun. 30, 2021 | 0 | |||||||||
Members' capital, senior priority units, beginning balance (in shares) at Jun. 30, 2021 | 0 | |||||||||
Members' capital, common units, ending balance (in shares) at Sep. 30, 2021 | 0 | |||||||||
Members' capital, ending balance at Sep. 30, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Members' capital, preferred units, ending balance (in shares) at Sep. 30, 2021 | 0 | |||||||||
Members' capital, senior priority units, ending balance (in shares) at Sep. 30, 2021 | 0 | |||||||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2021 | 40,865,336 | |||||||||
Stockholders' equity, beginning balance at Dec. 31, 2021 | 212,423 | $ 4 | 281,815 | (69,396) | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation expense | 362 | 362 | ||||||||
Issuance of shares, net of issuance costs (in shares) | 415,000 | |||||||||
Issuance of shares, net of issuance costs | 3,791 | 3,791 | ||||||||
Restricted shares award issuance, net of withholdings (in shares) | 82,601 | |||||||||
Restricted shares award issuance, net of withholdings | (65) | (65) | ||||||||
Proceeds from stock options exercised (in shares) | 334 | |||||||||
Proceeds from stock options exercised | 2 | 2 | ||||||||
Foreign currency translation adjustment | (32) | (32) | ||||||||
Net loss | (429) | (429) | ||||||||
Stockholders' equity ending balance (in shares) at Mar. 31, 2022 | 41,363,271 | |||||||||
Stockholders equity, ending balance at Mar. 31, 2022 | 216,052 | $ 4 | 285,905 | (69,825) | (32) | |||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2021 | 40,865,336 | |||||||||
Stockholders' equity, beginning balance at Dec. 31, 2021 | 212,423 | $ 4 | 281,815 | (69,396) | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of shares for investor fee associated with successful completion of Merger | 0 | |||||||||
Issuance of warrants to advisor in connection with completion of Merger | 0 | |||||||||
Net loss | (131,488) | |||||||||
Stockholders' equity ending balance (in shares) at Sep. 30, 2022 | 42,964,462 | |||||||||
Stockholders equity, ending balance at Sep. 30, 2022 | 89,557 | $ 4 | 290,576 | (200,884) | (139) | |||||
Stockholders' equity, beginning balance (in shares) at Mar. 31, 2022 | 41,363,271 | |||||||||
Stockholders' equity, beginning balance at Mar. 31, 2022 | 216,052 | $ 4 | 285,905 | (69,825) | (32) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation expense | 306 | 306 | ||||||||
Issuance of shares, net of issuance costs (in shares) | 553,587 | |||||||||
Issuance of shares, net of issuance costs | 2,078 | 2,078 | ||||||||
Proceeds from stock options exercised (in shares) | 1,962 | |||||||||
Proceeds from stock options exercised | 12 | 12 | ||||||||
Foreign currency translation adjustment | (134) | (134) | ||||||||
Net loss | (107,882) | (107,882) | ||||||||
Stockholders' equity ending balance (in shares) at Jun. 30, 2022 | 41,918,820 | |||||||||
Stockholders equity, ending balance at Jun. 30, 2022 | 110,432 | $ 4 | 288,301 | (177,707) | (166) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation expense | 361 | 361 | ||||||||
Issuance of shares, net of issuance costs (in shares) | 1,045,642 | |||||||||
Issuance of shares, net of issuance costs | 1,914 | 1,914 | ||||||||
Foreign currency translation adjustment | 27 | 27 | ||||||||
Net loss | (23,177) | (23,177) | ||||||||
Stockholders' equity ending balance (in shares) at Sep. 30, 2022 | 42,964,462 | |||||||||
Stockholders equity, ending balance at Sep. 30, 2022 | $ 89,557 | $ 4 | $ 290,576 | $ (200,884) | $ (139) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Preferred Stock | Support Com | ||
Payment of stock issuance costs | $ 2,296 | $ 3,387 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net loss | $ (131,488) | $ (3,099) |
Adjustments to reconcile net loss to net cash flow from operating activities: | ||
Depreciation and amortization | 22,680 | 5,531 |
Deferred income taxes | 15,016 | (2,945) |
Impairment of long-lived assets | 71,500 | 0 |
Amortization of debt issuance costs | 3,059 | 54 |
Long-lived asset impairment | 85 | 0 |
Loss on sale of assets | 130 | 0 |
Remeasurement of environmental liability | 11,109 | 170 |
Stock-based compensation expense | 1,029 | 1,474 |
Investor fee paid in common stock | 0 | 17,826 |
Advisor fee paid in warrants | 0 | 8,779 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 820 | 272 |
Emissions and carbon offset credits | 1,102 | 107 |
Prepaids and other assets | (548) | (5,955) |
Accounts payable | (1,559) | (455) |
Accrued emissions | 2,592 | (408) |
Accrued expenses | 5,185 | 5,315 |
Income taxes payable | (2,296) | 0 |
Other | 358 | 0 |
Net cash flow used for operating activities | (1,226) | 26,666 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||
Purchases of and deposits for property and equipment | (127,374) | (65,757) |
Proceeds from sale of assets | 4,802 | 0 |
Proceeds from sale of marketable securities | 496 | 0 |
Cash received in merger | 0 | 27,113 |
Net cash flow used for investing activities | (122,076) | (38,644) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of preferred stock, net of issuance costs | 0 | 37,113 |
Proceeds from issuance of common stock, net of issuance costs | 7,783 | 0 |
Proceeds from stock options exercised | 14 | 1,000 |
Proceeds from warrants exercised | 0 | 2,155 |
Issuance costs associated with shares issued for Support acquisition | 0 | (2,296) |
Restricted stock unit awards settled in cash for taxes | (65) | 0 |
Proceeds from debt, net of issuance costs | 107,105 | 25,112 |
Principal payments on debt | (35,258) | (4,440) |
Repayments of lease obligations | (363) | (569) |
Net cash flow provided by financing activities | 79,216 | 58,075 |
CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (44,086) | 46,097 |
CASH AND CASH EQUIVALENTS - beginning of year | 82,599 | 5,052 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH - end of period | $ 38,513 | $ 51,149 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ORGANIZATION AND DESCRIPTION OF BUSINESS Greenidge Generation Holdings Inc. (“Greenidge”) and its subsidiaries (collectively, the “Company”) own and operate a vertically integrated cryptocurrency datacenter and power generation company. The Company owns and operates facilities at two locations: the Town of Torrey, New York and Spartanburg, South Carolina. The Company’s cryptocurrency datacenter operations generate revenue in the form of bitcoin by earning bitcoin as rewards and transaction fees for supporting the global bitcoin network with application-specific integrated circuit computers (“ASICs” or “miners”) owned by the Company. The earned bitcoin is then exchanged for U.S. dollars. The Company owns and operates a 106 megawatt ("MW") power facility that is connected to the New York Independent System Operator (“NYISO”) power grid. The Company sells electricity to the NYISO at all times when its power plant is running and increases or decreases the amount of electricity sold based on prevailing prices in the wholesale electricity market and demand for electricity. Merger with Support.com, Inc. On September 14, 2021, GGH Merger Sub, Inc. (“Merger Sub”), a wholly owned subsidiary of Greenidge, merged with and into Support.com, Inc. (“Support.com”), with Support.com continuing as the surviving corporation (the “Merger”) and a wholly owned subsidiary of Greenidge, pursuant to the Agreement and Plan of Merger, dated March 19, 2021 (the “Merger Agreement”), among Greenidge, Support.com and Merger Sub. The Merger combined the respective businesses of Greenidge and Support.com through an all-stock transaction and has been accounted for using the acquisition method of accounting in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") 805, Business Combinations , with Greenidge being deemed the acquiring company for accounting purposes (see Note 3). Prior to the Merger, Greenidge's class A common stock ("class A common stock") was registered pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and, upon completion of the Merger on September 15, 2021, began trading on The Nasdaq Global Select Market ("Nasdaq") under the ticker symbol “GREE”. Concurrently, Support.com deregistered its shares pursuant to the Exchange Act. Support.com provides solutions and technical programs to customers delivered by home-based employees. Support.com’s homesourcing model, which enables outsourced work to be delivered by people working from home, has been specifically designed for remote work, with attention to security, recruiting, training, delivery, and employee engagement. Since the consummation of the Merger, the Support.com business operates as a wholly-owned subsidiary and a segment of Greenidge. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Presentation of Condensed Consolidated Financial Statements In the opinion of Greenidge management, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results for the interim periods presented and such adjustments are of a normal recurring nature. The results for the unaudited interim condensed consolidated statements of operations and comprehensive (loss) income are not necessarily indicative of results to be expected for the year ending December 31, 2022 or for any future interim period. The unaudited condensed interim consolidated financial statements do not include all of the information and notes required by United States Generally Accepted Accounting Principles ("GAAP") for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements of the Company in Greenidge's 2021 Annual Report on Form 10-K. There have been no material changes to the Company’s significant accounting policies during 2022. In accordance with the FASB Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern , the Company’s management evaluated whether there are conditions or events that pose risk associated with the Company's ability to continue as a going concern within one year after the date these financial statements have been issued. The Company’s condensed financial statements have been prepared assuming that it will continue as a going concern. During the second quarter of 2022, the price of bitcoin decreased approximately 57% and the price of natural gas increased approximately 53% and these economic conditions did not improve during the third quarter. The Company’s profit and cash flows are impacted significantly by volatility in the prices of bitcoin and natural gas, and the volatility in these commodity prices significantly impacted the Company's results during 2022. At September 30, 2022, the Company had $38.5 million of cash and cash equivalents, including restricted cash, and $0.6 million of bitcoin holdings at fair value, while having $24.9 million of accounts payable and accrued expenses, as well as $88.6 million of principal and interest payments on debt due within the next 12 months. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has evaluated different options to improve its liquidity to fund the Company’s expenses and to support the Company’s debt servicing requirements. These options include, but are not limited to: • selling or monetizing certain assets, including but not limited to sales of additional miners, sales of surplus mining infrastructure equipment, or sales of unannounced and undeveloped locations the Company was evaluating for expansion; • issuances of equity, including but not limited to issuances under the 2022 Purchase Agreement (as defined in Note 9, Stockholders' Equity) and the ATM Agreement (as defined in Note 9, Stockholders' Equity); • migrating certain of its equipment to lower cost locations; and • negotiating with lenders to modify the terms of certain of the Company’s existing financings, which could result in various modifications, including but not limited to, the modification of interest rates and/or debt amortization, assignment of collateral and changes to the Company's business model. On March 18, 2022, Greenidge issued a secured promissory note, as borrower, in favor of B. Riley Commercial Capital, LLC, as noteholder (the "Noteholder"), evidencing a $26.5 million aggregate principal amount loan by the Noteholder to Greenidge (the "Secured Promissory Note"). In the Company's efforts to further improve liquidity, Greenidge and the Noteholder amended the Secured Promissory Note on August 10, 2022. The amendment extended the maturity to June 2023, reduced scheduled monthly amortization payments and reduced mandatory prepayments. The Company has received proceeds of $59.8 million since October 2021 from sales of common stock under the 2021 Purchase Agreement (as defined in Note 9, Stockholders' Equity) and the 2022 Purchase Agreement (as defined in Note 9, Stockholders' Equity), of which $2.5 million of proceeds, net of discounts, was received during the three months ended September 30, 2022. In September 2022, Greenidge entered into an ATM Agreement (as defined in Note 9, Stockholders' Equity), and since September 30, 2022 through November 11, 2022, the Company received proceeds of $1.6 million from sales of common stock under the ATM Agreement. The Company sold assets, including certain miners and other assets during the nine months ended September 30, 2022 for proceeds of $4.8 million; however, demand for miners has continued to decline during the third quarter of 2022. The Company anticipates that existing cash resources will be depleted by the end of the first quarter of 2023. Depending on its assumptions regarding the timing and ability to achieve more normalized levels of operating revenue, the estimated amount of required liquidity will vary significantly. Similarly, management cannot predict when or if bitcoin prices will recover to prior levels, or when energy costs may decrease. While the Company continues to work to implement the options to improve liquidity, there can be no assurance that these efforts will be successful. Management's ability to successfully implement these options could be negatively impacted by items outside of its control, in particular, significant decreases in the price of bitcoin, regulatory changes concerning cryptocurrency, increases in energy costs or other macroeconomic conditions and other matters identified in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2021 and Part II, Item 1A " Risk Factors " of this Quarterly Report on Form 10-Q. Given the lack of improvement in the above mentioned factors in the third quarter of 2022, there is uncertainty regarding the Company’s financial condition and substantial doubt about its ability to continue as a going concern for a reasonable period of time. Restricted Cash The Company has agreed to certain restrictions on $10.5 million of cash received associated with certain financings made during the three months ended September 30, 2022 . The Company agreed to certain restrictions associated with this cash which is classified as restricted as of September 30, 2022. Reclassifications Certain prior year amounts have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements, Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. As an emerging growth company, the Company has elected to adopt this pronouncement following the effective date for private companies beginning with periods beginning after December 15, 2021. The Company adopted this standard on January 1, 2022, and the adoption did not materially impact the Company's condensed consolidated financial statements. |
MERGER WITH SUPPORT.COM
MERGER WITH SUPPORT.COM | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
MERGER WITH SUPPORT.COM | MERGER WITH SUPPORT.COM As described in Note 1, on September 14, 2021, Greenidge and Support.com combined their respective businesses through an all-stock merger transaction where Support.com became a wholly owned subsidiary of Greenidge. The Merger has been accounted for as a business combination using the acquisition method of accounting in accordance with the provisions of FASB ASC 805, Business Combinations (“ASC 805”). Greenidge was determined to be the acquiring company for accounting purposes. Results of Support.com Operations Since the Merger For the three months ended September 30, 2022, the acquired Support.com business contributed $7.5 million in revenue and $1.0 million of operating income, which includes approximately $0.2 million of amortization expenses of acquired intangible assets. For the nine months ended September 30, 2022, the acquired Support.com business contributed $24.4 million in revenue and $4.3 million of operating income, which includes approximately $0.7 million of amortization expenses of acquired intangible assets. Supplemental Pro Forma Financial Information In accordance with ASC 805, the following supplemental unaudited pro forma information gives effect to the Merger as if it had occurred on January 1, 2021. The unaudited pro forma financial information reflects certain adjustments related to the acquisition, such as: • Conforming the accounting policies of Support.com to those applied by Greenidge; • Recording certain incremental expenses resulting from purchase accounting adjustments, such as amortization expense in connection with fair value adjustments to intangible assets; and • Recording the related tax effects of pro forma adjustments. $ in thousands Three Months Ended Nine Months Ended Revenues $ 42,448 $ 87,830 Net loss $ (11,783) $ (12,602) The pro forma results for three and nine months ended September 30, 2021 include $30.0 million and $32.4 million, respectively, of transaction costs for both Greenidge and Support.com $24.5 million and $26.9 million after tax, respectively), such as advisor fees, legal and accounting expenses. These costs will not affect the combined company’s statement of operations beyond 12 months after the closing date, September 14, 2021. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Effective September 14, 2021, following the completion of the Merger (see Notes 1 and 3), Support.com began operating within the Company as a separate operating and reporting segment; therefore, Greenidge has two operating and reporting segments since the Merger: (i) Cryptocurrency Datacenter and Power Generation and (ii) Support Services. The Cryptocurrency Datacenter and Power Generation segment generates revenue primarily by earning bitcoin, with miners that are owned by the Company, as rewards and transaction fees for supporting the global bitcoin network. The Cryptocurrency Datacenter and Power Generation segment also sells surplus electricity generated by its power plant, and not consumed in cryptocurrency datacenter operations, to the NYISO power grid at prices set on a daily basis through the NYISO wholesale market. In addition, the Company receives revenues from the sale of its capacity and ancillary services in the NYISO wholesale market. The Cryptocurrency Datacenter and Power Generation segment operates in the United States. The Support Services segment provides solutions and technical programs to customers delivered by home-based employees. The Support Services segment provides customer service, sales support, and technical support primarily to large corporations, businesses and professional services organizations. The Support Services segment also earns revenues for end-user software products provided through direct customer downloads and sales via partners. The Support Services segment operates primarily in the United States, but also has employees located in Philippines, India, Mexico, Colombia and Canada, including those staff providing support services. The Company’s measure of profit or loss for segment reporting is income (loss) before income taxes, interest and depreciation and amortization and adjusted for share based compensation and excluding items not indicative of ongoing business trends (referred to as “Segment Adjusted EBITDA”). This is the measure used by the Company's Chief Operating Decision Maker to assess performance and allocate resources. The table below presents information about reportable segments for the three and nine months ended September 30, 2022 and 2021, respectively: Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2022 2021 2022 2021 Revenues: Cryptocurrency Datacenter and Power Generation $ 21,885 $ 34,233 $ 73,966 $ 61,472 Support Services 7,474 1,521 24,387 1,521 Total Revenues $ 29,359 $ 35,754 $ 98,353 $ 62,993 Segment Adjusted EBITDA (loss) Cryptocurrency Datacenter and Power Generation $ (3,669) $ 20,973 $ 3,886 $ 33,464 Support Services 1,381 204 5,282 204 Total Segments Adjusted EBITDA (loss) $ (2,288) $ 21,177 $ 9,168 $ 33,668 In addition, the table below provides a reconciliation of the total of the Segments Adjusted EBITDA to the consolidated (loss) income before income taxes: Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2022 2021 2022 2021 Total Segments Adjusted EBITDA (loss) $ (2,288) $ 21,177 $ 9,168 $ 33,668 Depreciation and amortization (13,835) (2,667) (22,680) (5,531) Stock-based compensation (361) (411) (1,029) (1,474) Merger and other costs (242) (29,847) (940) (31,095) Expansion costs (183) (128) (2,375) (128) Interest expense, net (5,430) (1,009) (15,693) (1,399) Loss on sale of assets (759) — (130) — Long-lived asset impairment — — (71,500) — Remeasurement of environmental liability — — (11,109) — Consolidated loss before income taxes $ (23,098) $ (12,885) $ (116,288) $ (5,959) |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following at September 30, 2022 and December 31, 2021: $ in thousands Estimated Useful September 30, 2022 December 31, 2021 Plant infrastructure 10 years $ 10,226 $ 34,725 Miners 3 years 176,309 48,121 Miner facility infrastructure 10 years 32,368 15,143 Land N/A 8,460 8,460 Equipment 5 years 1,012 1,660 Software 3 years 636 636 Coal ash impoundment 4 years — 2,410 Construction in process N/A 26,076 25,856 Miner deposits N/A 27,281 98,110 282,368 235,121 Less: Accumulated depreciation (36,297) (18,030) $ 246,071 $ 217,091 The Company has reevaluated the useful lives of the assets and adjusted the lives of the miners from 5 years to 3 years and the lives of plant infrastructure from 15 - 39 years to 10 years effective July 1, 2022. Total depreciation expense was $13.6 million and $2.7 million for the three months ended September 30, 2022 and 2021, respectively, and $22.0 million and $5.5 million for the nine months ended September 30, 2022 and 2021, respectively. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of a long-lived asset, management evaluates whether the estimated future undiscounted net cash flows, based on prevailing market conditions, from the asset are less than its carrying amount. If impairment is indicated, the long-lived asset is written down to fair value. As a result of the significant reduction in the price of bitcoin and increased energy prices during the nine months ended September 30, 2022, the Company recognized a noncash impairment charge of $71.5 million for the assets associated with the Cryptocurrency Datacenter and Power Generation segment to reduce the net book value of the long-lived assets |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS As described in Notes 1 and 3, on September 14, 2021, Greenidge and Support.com combined their respective businesses through an all-stock merger transaction that was accounted for as a business combination in accordance with ASC 805. Prior to the Merger, Greenidge did not have any intangible assets. The following is a summary of finite-lived intangible assets: $ in thousands As of September 30, 2022 Intangible Assets Accumulated Amortization Intangible Assets, Net Customer relationships $ 3,320 $ (867) $ 2,453 Tradename 490 (102) 388 Total $ 3,810 $ (969) $ 2,841 As of December 31, 2021 Intangible Assets Accumulated Amortization Intangible Assets, Net Customer relationships $ 3,320 $ (244) $ 3,076 Tradename 490 (29) 461 Total $ 3,810 $ (273) $ 3,537 Amortization expense was $0.2 million and $0.7 million for the three and nine months ended September 30, 2022, respectively. There was less than $0.1 million of amortization expense for both the three and nine months ended September 30, 2021. Future amortization expense is as follows: $ in thousands Amortization 2022 (for the remainder of) $ 232 2023 928 2024 928 2025 684 Thereafter 69 Total $ 2,841 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The Company has entered into equipment finance agreements that are secured by the purchased miner equipment. These agreements generally require monthly payments of principal, interest and a risk premium fee. The following table provides information on the equipment financing agreements: $ in thousands Balance as of: Note Loan Date Maturity Date Interest Amount Financed September 30, 2022 December 31, 2021 Equipment Financings: A December 2020 June 2022 17.0 % $ 4,482 $ — $ 1,245 B December 2020 June 2022 17.0 % 428 — 95 C March 2021 November 2022 17.0 % 2,229 248 1,362 D April 2021 December 2022 17.0 % 4,012 669 2,674 E - H May 2021 October 2023 15.0 % 15,724 12,235 15,513 I July 2021 January 2023 17.0 % 4,457 1,238 3,468 J July 2021 March 2023 17.0 % 2,717 604 1,962 K October 2021 June 2023 17.0 % 2,223 864 1,976 L March 2022 April 2024 13.0 % 81,375 74,690 — Bonds Payable October 2021/December 2021 October 2026 8.5 % 72,200 72,200 72,200 Secured Promissory Note March 2022 June 2023 7.5 % 26,500 13,410 — Total debt 176,158 100,495 Less: Debt discount and issuance costs (6,425) (5,667) Total debt at book value 169,733 94,828 Less: Current portion (73,218) (19,577) Long-term debt, net of current portion and deferred financing fees $ 96,515 $ 75,251 The Company incurred interest expense of $5.4 million and $1.0 million during the three months ended September 30, 2022 and 2021, respectively, and $15.7 million and $1.4 million during the nine months ended September 30, 2022 and 2021, respectively, under the terms of these financings. Minimum future principal payments on debt as of September 30, 2022 were as follows: $ in thousands Remainder of 2022 $ 20,404 2023 66,479 2024 17,075 2025 — 2026 72,200 Total $ 176,158 Master Equipment Financing Agreement On March 21, 2022, Greenidge, as guarantor, together with its wholly-owned subsidiaries GTX Gen 1 Collateral LLC, GNY Collateral LLC and GSC Collateral LLC (collectively, the “Borrowers”), entered into a Master Equipment Finance Agreement (the “NYDIG Financing Agreement”) with NYDIG ABL LLC ("NYDIG"), as lender, whereby NYDIG agreed to lend to the Borrowers approximately $81 million under loan schedules that were partially funded for approximately $54 million in March 2022, with additional funding of $17 million through September 30, 2022, to finance the acquisition of certain miners and related equipment (the “Financed Equipment”). The Borrowers' obligations under the NYDIG Financing Agreement are fully and unconditionally guaranteed by Greenidge. Outstanding borrowings under the NYDIG Financing Agreement are secured by all assets of the Borrowers, including without limitation, the Financed Equipment and proceeds thereof (including bitcoin). The partially funded loan schedules bear interest at a rate of 13% per annum and have terms of twenty-five months. Certain loan schedules are interest-only for a specified period and otherwise payments on loan schedules include both an interest and principal payment. Pursuant to the terms of the NYDIG Financing Agreement, the Borrowers and with certain exceptions, the Company, will be subject to certain covenants and restrictive provisions which will, among other things: limit the Borrowers’ ability to incur additional indebtedness for borrowed money; limit additional liens on the collateral or the equity interests of any of the Borrowers; limit consolidations or mergers including the Borrowers or the Company unless such would not constitute a Change in Control (as defined therein); limit disposing of the collateral or any portion of the collateral with certain exceptions; limit the Borrowers’ ability to make certain restricted payments and investments; and limit the ability to create certain direct obligations of the Borrowers or the Company unless the NYDIG Financing Agreement is at least pari passu in right of payment; each of which are subject to customary and usual exceptions and baskets. The loans under the NYDIG Financing Agreement cannot be voluntarily partially prepaid, but may be prepaid in whole subject to a make-whole calculation. The NYDIG Financing Agreement is denoted in the table above as "Equipment Financings: L." Secured Promissory Note As disclosed in Note 2, on March 18, 2022, Greenidge issued the Secured Promissory Note in favor of the Noteholder. The Secured Promissory Note is guaranteed by certain of Greenidge’s wholly-owned subsidiaries: Greenidge South Carolina LLC, GSC RE LLC and 300 Jones Road LLC. The loan outstanding under the Secured Promissory Note originally bore interest at a rate of 6% per annum and originally matured on July 20, 2022, subject to up to five 30-day extensions, through December 2022, that may be elected by Greenidge provided no Event of Default (as defined therein) has occurred and is continuing and Greenidge pays an Exit Fee (as defined therein) to the Noteholder. Pursuant to the terms of the Secured Promissory Note, Greenidge and its subsidiaries will be subject to certain covenants and restrictive provisions which will, among other things, limit their ability to incur additional indebtedness for borrowed money or additional liens other than debt and liens permitted pursuant to the Secured Promissory Note; consolidate or merge unless Greenidge survives; or transfer all or substantially all of their assets; make certain restricted payments or investments; have a Change of Control (as defined therein); modify certain material agreements; and engage in certain types of transactions with affiliates; each of which are subject to customary and usual exceptions and baskets. The Secured Promissory Note is secured by a first priority mortgage lien on certain real property together with related improvements, fixtures and personal property located at Greenidge's South Carolina Facility. Greenidge’s obligations under the Secured Promissory Note may be prepaid in whole or in part without penalties or fees. On August 10, 2022, Greenidge and the Noteholder agreed to amend the terms of the Secured Promissory Note, by extending the maturity to June 2023, reducing scheduled monthly amortization payments and revising the interest rate to 7.5%. The Exit Fees (as defined therein) associated with the four 30-day extensions subsequent to August 10, 2022, were accelerated and added to the principal balance as of that date. The principal balance following the amendment was $16.4 million as of August 10, 2022. Additionally mandatory repayments of the Secured Promissory Note were revised, such that 65% of the net cash proceeds received from sales of stock under the 2022 Purchase Agreement shall be paid to Noteholder to repay the Secured Promissory Note. Fair Value Disclosure The notional value and estimated fair value of the Company's debt totaled $176.2 million and $139.2 million, respectively, at September 30, 2022. The notional value does not include unamortized discounts and debt issuance costs of $6.4 million at September 30, 2022. The estimated fair value of the Bonds Payable, representing the fair value of our 8.50% senior secured notes due 2026, was measured using quoted market prices at the reporting date. Such instruments were valued using Level 1 inputs. For the Equipment Financings and Secured Promissory Note, the Company believes the notional values approximate their fair values. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Letters of Credit The Company's controlling stockholder, Atlas Holdings LLC ("Atlas"), obtained a letter of credit from a financial institution in the amount of $5.0 million at September 30, 2022, payable to the New York State Department of Environmental Conservation ("NYSDEC"). This letter of credit guarantees the current value of the Company’s landfill environmental liability (see Note 13). Atlas also obtained a letter of credit from a financial institution in the amount of $3.6 million at September 30, 2022, payable to Empire Pipeline Incorporated (“Empire”) in the event the Company should not make contracted payments for costs related to a pipeline interconnection project the Company has entered into with Empire (see Note 13). Guarantee An affiliate of Atlas has guaranteed the payment obligation of Greenidge in favor of Emera Energy Services, Inc. ("Emera") under an Energy Management Agreement and an ISDA Master Agreement under which Greenidge may enter into various transactions involving the purchase and sale of natural gas, electricity and other commodities with Emera. This guaranty is limited to $1.0 million. Other Affiliates of Atlas from time to time incur certain expansion costs for the benefit of Greenidge, which are fully reimbursed by Greenidge. The amount of costs reimbursed by Greenidge during the nine months ended September 30, 2022 was less than $0.1 million. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Equity Purchase Agreement with B. Riley Principal Capital, LLC On September 15, 2021, Greenidge entered into a common stock purchase agreement (the “2021 Purchase Agreement”) with B. Riley Principal Capital, LLC (the “Investor”) pursuant to which Greenidge has the right to “put” or sell to the Investor up to $500 million of shares of class A common stock, subject to certain limitations and conditions set forth in the 2021 Purchase Agreement, from time to time during the term of the 2021 Purchase Agreement. The per share purchase price for the shares of class A common stock that Greenidge elected to sell to the Investor pursuant to the 2021 Purchase Agreement were determined by reference to the volume weighted average price of class A common stock during the applicable purchase date on which Greenidge had timely delivered written notice to the Investor directing it to purchase shares under the 2021 Purchase Agreement, less a fixed 5% discount, which was to be increased to a fixed 6% discount at such time that the Company received aggregate cash proceeds of $200 million as payment for all shares of class A common stock purchased by the Investor in all prior sales of class A common stock made under the 2021 Purchase Agreement. The Investor had no obligation to purchase shares pursuant to the 2021 Purchase Agreement to the extent that such purchase would have caused the Investor to own more than 4.99% of the Company’s issued and outstanding shares of class A common stock. Greenidge and the Investor entered into a mutual termination agreement on April 6, 2022 (the "Mutual Termination"), which became effective immediately upon signing. Prior to the termination, the Company had sold an aggregate of 2,547,500 shares of class A common stock pursuant to the 2021 Purchase Agreement representing proceeds of $54.9 million, net of discounts, under the 2021 Purchase Agreement. The Company did not incur any early termination penalties as a result of the Mutual Termination. On April 7, 2022, Greenidge entered into a new common stock purchase agreement, as amended by Amendment No. 1 to Common Stock Purchase Agreement, dated as of April 13, 2022 (as amended, the “2022 Purchase Agreement”) with the Investor. Pursuant to the 2022 Purchase Agreement, Greenidge has the right to sell to the Investor up to $500 million in shares of its class A common stock, subject to certain limitations and the satisfaction of specified conditions in the 2022 Purchase Agreement, from time to time over the 24-month period commencing on April 28, 2022. The per share purchase price for the shares of class A common stock that Greenidge elects to sell to the Investor pursuant to the 2022 Purchase Agreement will be determined by reference to the volume weighted average price of the class A common stock (“VWAP”) during the full primary (or “regular”) trading session on Nasdaq on the applicable purchase date, calculated in accordance with the 2022 Purchase Agreement, or, if the total aggregate number (or “volume”) of class A common stock traded on Nasdaq reaches a certain threshold amount (calculated in accordance with the 2022 Purchase Agreement) prior to the official close of the regular trading session on Nasdaq on such purchase date, then the VWAP will be calculated only for the period beginning at the official open (or “commencement”) of the regular trading session and ending at the time the volume of class A common stock traded on Nasdaq reaches such threshold amount (such period for each purchase, the “Purchase Valuation Period”), less a fixed 5% discount to the VWAP for the Purchase Valuation Period, which shall be increased to 6% at such time that Greenidge has received aggregate cash proceeds of $200 million from all prior sales of class A common stock to the Investor under the 2021 Purchase Agreement and the 2022 Purchase Agreement. The per share purchase price for the shares of class A common stock that Greenidge elects to sell to the Investor in an intraday purchase pursuant to the 2022 Purchase Agreement will be calculated in the same manner as in the case of a regular purchase, provided that the VWAP for such intraday purchase will be measured during the portion of the normal trading hours on Nasdaq on the applicable purchase date that will begin 30 minutes after the latest of (i) the time that the applicable intraday purchase notice is timely received by the Investor, (ii) the time that the Purchase Valuation Period for any prior regular purchase effected on the same purchase date (if any) has ended and (iii) the time that the Intraday Purchase Valuation Period (defined below) for the most recent prior intraday purchase effected on the same purchase date (if any) has ended, and ending at the earlier of (x) the official close of the regular trading session on Nasdaq on such purchase date and (y) the time the volume of shares of class A common stock traded on Nasdaq reaches a certain threshold amount calculated in accordance with the 2022 Purchase Agreement (such period for each intraday purchase, the “Intraday Purchase Valuation Period”), less a fixed 5% discount to the VWAP for the Intraday Purchase Valuation Period, which shall be increased to 6% at such time that Greenidge has received aggregate cash proceeds of $200 million from all prior sales of class A common stock to the Investor under the 2021 Purchase Agreement and the 2022 Purchase Agreement. In addition, on April 13, 2022, Greenidge entered into Amendment No. 1 to the 2022 Purchase Agreement (the “Amendment”) with the Investor. The Amendment provides for an additional feature that would cause the period used to determine the applicable purchase price to be paid by the Investor for shares elected to be sold by Greenidge to terminate on the applicable purchase date if the trading price of the class A common stock falls below a minimum price threshold. The Amendment also modifies the maximum amount of shares of Greenidge’s class A common stock that Greenidge can elect to sell to the Investor in any single purchase effected by Greenidge. Under the applicable Nasdaq rules, unless stockholder approval is obtained, Greenidge may not sell more than 19.99% of the total number of shares of its class A common stock and class B common stock issued and outstanding immediately prior to the execution of the 2022 Purchase Agreement, which number of shares shall be reduced on a share-for-share basis by the number of shares of class A common stock that may be aggregated with the transactions contemplated by the 2022 Purchase Agreement under the applicable Nasdaq rules. Sales of common stock pursuant to the 2022 Purchase Agreement, and the timing of any sales, are solely at the option of the Company, and the Company is under no obligation to sell any securities to the Investor under the 2022 Purchase Agreement. In connection with the 2022 Purchase Agreement, Greenidge entered into a registration rights agreement with the Investor, pursuant to which Greenidge agreed to prepare and file a registration statement registering the resale by the Investor of those shares of Greenidge’s class A common stock to be issued under the 2022 Purchase Agreement. The registration statement became effective on April 28, 2022 (the "Effective Date"), relating to the resale of 5,720,951 shares of Greenidge’s class A common stock in connection with the 2022 Purchase Agreement. From the Effective Date to September 30, 2022, Greenidge issued 1,599,229 shares of class A common stock to the Investor pursuant to the 2022 Purchase Agreement for aggregate proceeds of $5.0 million, net of discounts. At The Market Issuance Sales Agreement with B. Riley Securities On September 19, 2022, as amended on October 3, 2022, Greenidge entered into an at market issuance sales agreement (the "ATM Agreement") with B. Riley Securities, Inc. ("B. Riley") and Northland Securities, Inc. ("Northland"), relating to shares of Greenidge’s class A common stock. Under the ATM Agreement, B. Riley will use its commercially reasonable efforts to sell on Greenidge’s behalf the shares of Greenidge’s class A common stock requested to be sold by Greenidge, consistent with B. Riley’s normal trading and sales practices, under the terms and subject to the conditions set forth in the ATM Agreement. Greenidge has the discretion, subject to market demand, to vary the timing, prices and number of shares sold in accordance with the ATM Agreement. B. Riley may sell the Company’s class A common stock by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act. Greenidge will pay B. Riley commissions for its services in acting as sales agent, in an amount equal to up to 5.0% of the gross proceeds of all class A common stock sold through it as sales agent under the ATM Agreement. Pursuant to the registration statement filed registering shares to be sold in accordance with the terms of the ATM Agreement, Greenidge may offer and sell shares of its class A common stock up to a maximum aggregate offering price of $22,800,000. |
EQUITY BASED COMPENSATION
EQUITY BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY BASED COMPENSATION | EQUITY BASED COMPENSATION In February 2021, Greenidge adopted an equity incentive plan and reserved 3,831,112 shares of class A common stock for issuance under the plan (the “2021 Equity Plan”), applicable to employees and non-employee directors. Restricted Common Stock Unit Awards During the nine months ended September 30, 2022, the Company awarded 55,870 restricted common stock units (“RSUs”) under the 2021 Equity Plan to employees, which are generally eligible to vest over a three-year period. The Company’s unvested RSU awards activity for the nine months ended September 30, 2022 is summarized below: RSUs Weighted Average Unvested at December 31, 2021 516,987 $ 6.80 Granted 55,870 $ 5.70 Vested (90,704) $ 6.25 Unvested at September 30, 2022 482,153 $ 6.77 The value of RSU grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. During the nine months ended September 30, 2022, the fair market value of the awards granted totaled $0.3 million, and as of September 30, 2022, there was approximately $2.0 million of total unrecognized compensation cost related to unvested restricted stock rights, which is expected to be recognized over a remaining weighted-average vesting period of approximately 1.02 years. Common Stock Options The Company’s common stock options activity for the nine months ended September 30, 2022 is summarized below: Options Weighted Average Weighted Average Aggregate Outstanding at December 31, 2021 583,080 $ 6.01 9.2 $ 5,854 Exercised (2,296) $ 6.25 Forfeited (9,554) $ 6.77 Expired (667) $ 6.25 Outstanding at September 30, 2022 570,563 $ 6.00 8.38 $ - Exercisable as of September 30, 2022 447,930 $ 5.89 8.35 $ 8,386 The value of common stock option grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. As of September 30, 2022, there was approximately $0.2 million of total unrecognized compensation cost related to unvested common stock options, which is expected to be recognized over a remaining weighted-average vesting period of approximately 1.49 years. Stock-based Compensation The Company recognized stock-based compensation expense of $0.4 million and $0.4 million during the three months ended September 30, 2022 and 2021, respectively, and $1.0 million and $1.5 million during the nine months ended September 30, 2022 and 2021, respectively. Stock-based compensation expense is included in selling, general and |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs. The Company's effective tax rate was (0.3)% and (13.1)% for the three and nine months ended September 30, 2022, respectively. The Company continued to evaluate the realizability of deferred tax assets and due to continued reduced profitability as a result of the declines in bitcoin prices ,concluded that a valuation allowance should continue to be recognized for any deferred tax assets generated during the quarter. As a result there was no net income tax benefit for pretax losses of the U.S. operations in the three months ended September 30, 2022. The effective tax rate for the nine months ended September 30, 2022 was different from the U.S. federal statutory rate of 21% primarily due to a charge of $15.0 million for the recognition of a valuation allowance during the second quarter of 2022 for deferred tax assets. Deferred tax assets primarily relate to historical net operating loss carryforwards of the Support.com business that was acquired in 2021. The Company's effective tax rate was 38.7% and 48.0% for the three and nine months ended September 30, 2021, respectively. The effective tax rates for the three and nine months ended September 30, 2021 include the recognition of a deferred tax liability caused by the reorganization from a limited liability company to a corporation during the three months ended March 31, 2021. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by assuming the exercise, settlement, and vesting of all potential dilutive common stock equivalents outstanding for the period using the treasury stock method. The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings and diluted per share of common stock. Three Months Ended September 30: Nine Months Ended September 30: $ in thousands, except per share amounts 2022 2021 2022 2021 Numerator Net loss $ (23,177) $ (7,896) $ (131,488) $ (3,099) Less: Net income attributable to the member units before the reorganization — — — (648) Net loss attributable to Greenidge $ (23,177) $ (7,896) $ (131,488) $ (3,747) Denominator Basic weighted average shares outstanding 42,239 30,116 41,620 28,949 Diluted weighted average shares outstanding 42,239 30,116 41,620 28,949 (Loss) earnings per share Basic $ (0.55) $ (0.26) $ (3.16) $ (0.13) Diluted $ (0.55) $ (0.26) $ (3.16) $ (0.13) For the nine months ended September 30, 2021, basic (loss) earnings per share is applicable only for the period from January 29, 2021 through September 30, 2021, which is the period following the reorganization of Greenidge Generation Holdings LLC (" GGH") into Greenidge and presents the period that the Company had outstanding common stock. Prior to the reorganization, there were no shares of common stock outstanding, and the limited liability structure of GGH consisted of member units. The Company analyzed the calculation of earnings per unit for periods prior to the reorganization and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements. For the three and nine months ended September 30, 2022, there was no impact of dilution from any of the outstanding 482,153 RSUs or 570,563 common stock options due to the net loss, since inclusion of any impact from these awards would be anti-dilutive. For the three and nine months ended September 30, 2021, there were no shares excluded from the calculation of diluted earnings per share due to the net loss, since inclusion of any impact from these awards would be antidilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, the Company may be involved in various lawsuits and legal proceedings that arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in such matters may arise and harm the Company's business. The Company is currently not aware of any such legal proceedings or claims that it believes will have a material adverse effect on its business, financial condition or operating results. Environmental Liabilities The Company owns and operates a fully permitted landfill that also acts as a leachate treatment facility. In accordance with ASC 410-30, Environmental Obligations ("ASC 410-30") , the Company has recorded an environmental liability of $8.6 million as of September 30, 2022 and December 31, 2021. As required by NYSDEC, companies with landfills are required to fund a trust to cover closure costs and expenses after the landfill has stopped operating or, in lieu of a trust, may negotiate to maintain a letter of credit guaranteeing the payment of the liability. Estimates are based on various assumptions including, but not limited to, closure and post-closure cost estimates, timing of expenditures, escalation factors, and requirements of granted permits. Additional adjustments to the environment liability may occur periodically due to potential changes in estimates and assumptions. The Company has coal combustion residual ("CCR") liabilities associated with the closure of a coal ash pond located on the Company's property in the Town of Torrey, New York. In accordance with ASC 410-30, the Company has a liability of $13.8 million as of September 30, 2022, which includes a charge of $11.1 million during the nine-months ended September 30, 2022 as a result of an update to the cost estimates as part of the ongoing evaluation of the site. CCRs are subject to federal and state requirements. Estimates are based on various assumptions including, but not limited to, closure and post-closure cost estimates, timing of expenditures, escalation factors, and requirements of granted permits. Additional adjustments to the environment liability may occur periodically due to potential changes in remediation requirements regarding coal combustion residuals which may lead to material changes in estimates and assumptions. Other Matters Support.com has received and may in the future receive additional requests for information, including subpoenas, from other governmental agencies relating to the subject matter of a Consent Order and Civil Investigative Demands. The Company intends to cooperate with these information requests and is not aware of any other legal proceedings against the Company by governmental authorities at this time. Commitments The Company entered into a contract with Empire in September 2020 that provides for the transportation to its pipeline of 15,000 dekatherms of natural gas per day, approximately $0.2 million per month. The contract ends in September 2030 and may be terminated by either party with 12 months' notice after the initial 10-year period. |
CONCENTRATIONS
CONCENTRATIONS | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | CONCENTRATIONS The Company has one power customer, NYISO, that accounted for 12% and 9% of consolidated revenue for the three months ended September 30, 2022 and 2021, respectively. NYISO accounted for 13% and 12% of consolidated revenue for the nine months ended September 30, 2022 and 2021, respectively. For cryptocurrency datacenter operations, Greenidge considers its mining pool operators to be its customers. Greenidge has historically used a limited number of pool operators that have operated under contracts with a one-day term, which allows Greenidge the option to change pool operators on a daily basis. Revenue from one of the Company’s pool operator customers accounted for approximately 60% and 62% of total revenue for the three months ended September 30, 2022 and 2021, respectively, and 56% and 37% for the nine months ended September 30, 2022 and 2021, respectively. The Support Services segment's largest customer accounted for approximately 19% and 18% of the Company's consolidated revenue during the three and nine months ended September 30, 2022, respectively, and also accounted for approximately 69% and 67% of the Company's consolidated accounts receivable balance at September 30, 2022 and December 31, 2021, respectively. The contract with the Support Services segment's largest customer expires on December 31, 2022 and has not been renewed. The Company has one natural gas vendor that accounted for approximately 67% and 60% of the aggregate cost of revenue- cryptocurrency data center and cost of revenue- power and capacity for the three months ended September 30, 2022 and 2021, respectively and 64% and 59% of cost of revenue for the nine months ended September 30, 2022 and 2021, respectively. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Greenidge had the following noncash investing and financing activities: Nine Months Ended September 30, $ in thousands 2022 2021 Shares issued to Support.com shareholders upon Merger $ — $ 93,885 Property and equipment purchases financed with common stock $ — $ 991 Contribution of Preferred Units, Senior Priority Units, and notes payable to related $ — $ 72,891 Issuance of shares for investor fee associated with successful completion $ — $ 17,826 Issuance of warrants to advisor in connection with completion of Merger $ — $ 8,779 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent events have been evaluated through November 14, 2022, the date at which the condensed consolidated financial statements were available to be issued, and the Company has concluded that no such events or transactions took place that would require disclosure herein except as stated directly below. Management Transition Effective October 8, 2022, The Board of Directors appointed David Anderson to the position of Chief Executive Officer and Scott MacKenzie to the position of Chief Strategy Officer. Upon assuming the role, Mr. Anderson joined Greenidge's Board of Directors. As an inducement for Messrs. Anderson and MacKenzie to enter into employment with Greenidge, Greenidge's Compensation Committee approved grants of stock options ("Options") to each of Messrs. Anderson and MacKenzie. The Options granted to Mr. Anderson are exercisable for 1,852,812 shares of Greenidge's class A common stock ("Shares") and the Options granted to Mr. MacKenzie are exercisable for 1,224,030 Shares. The options were granted on October 10, 2022 and have an exercise price equal to the closing price of a Share on the grant date. The Options vest in equal annual installments on each of the first, second and third anniversaries of the grant date, subject to Messrs. Anderson's and MacKenzie's continued service through the applicable vesting dates, respectively. Greenidge also announced the mutual agreement between Greenidge and Jeffrey Kirt that Mr. Kirt would resign from his roles as CEO and Director, effective as of October 7, 2022 and transition to providing consulting services to Greenidge. Mr. Kirt’s consulting services to Greenidge are scheduled to continue through October 10, 2023. Under the terms of the letter agreement that describe the terms of Mr. Kirt’s separation of employment from Greenidge and the terms of his consulting services to Greenidge, Mr. Kirt will receive his base salary of $750,000 during the consulting period, immediate vesting of 229,868 RSUs, and a one-time grant under the Company’s 2021 Equity Incentive Plan of 280,000 restricted stock units that were fully vested at grant on October 10, 2022 and settle in twelve weekly installments beginning on October 14, 2022. ATM Agreement On September 19, 2022, as amended on October 3, 2022, Greenidge entered into the ATM Agreement with B. Riley and Northland. Pursuant to the ATM Agreement, Greenidge may offer and sell shares of its class A common stock having an aggregate offering price of $22,800,000. See Note 9, Stockholder's Equity. Support Services Customer Contract In October 2022, the Company was informed that the contract associated with the Support Services segment's largest customer, which expires on December 31, 2022, will not be renewed beyond that date. This customer accounted for approximately 19% and 18% of the Company's consolidated revenue during the three and nine months ended September 30, 2022, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Restricted Cash | Restricted Cash The Company has agreed to certain restrictions on $10.5 million of cash received associated with certain financings made during the three months ended September 30, 2022 . |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current period presentation. |
Recent Accounting Pronouncements, Adopted | Recent Accounting Pronouncements, Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. As an emerging growth company, the Company has elected to adopt this pronouncement following the effective date for private companies beginning with periods beginning after December 15, 2021. The Company adopted this standard on January 1, 2022, and the adoption did not materially impact the Company's condensed consolidated financial statements. |
MERGER WITH SUPPORT.COM (Tables
MERGER WITH SUPPORT.COM (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Supplemental Pro Forma Financial Information | $ in thousands Three Months Ended Nine Months Ended Revenues $ 42,448 $ 87,830 Net loss $ (11,783) $ (12,602) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Information about Reportable Segments | The table below presents information about reportable segments for the three and nine months ended September 30, 2022 and 2021, respectively: Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2022 2021 2022 2021 Revenues: Cryptocurrency Datacenter and Power Generation $ 21,885 $ 34,233 $ 73,966 $ 61,472 Support Services 7,474 1,521 24,387 1,521 Total Revenues $ 29,359 $ 35,754 $ 98,353 $ 62,993 Segment Adjusted EBITDA (loss) Cryptocurrency Datacenter and Power Generation $ (3,669) $ 20,973 $ 3,886 $ 33,464 Support Services 1,381 204 5,282 204 Total Segments Adjusted EBITDA (loss) $ (2,288) $ 21,177 $ 9,168 $ 33,668 |
Reconciliation of Total of Segments Adjusted EBITDA to Consolidated (Loss) Income Before Income Taxes | In addition, the table below provides a reconciliation of the total of the Segments Adjusted EBITDA to the consolidated (loss) income before income taxes: Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2022 2021 2022 2021 Total Segments Adjusted EBITDA (loss) $ (2,288) $ 21,177 $ 9,168 $ 33,668 Depreciation and amortization (13,835) (2,667) (22,680) (5,531) Stock-based compensation (361) (411) (1,029) (1,474) Merger and other costs (242) (29,847) (940) (31,095) Expansion costs (183) (128) (2,375) (128) Interest expense, net (5,430) (1,009) (15,693) (1,399) Loss on sale of assets (759) — (130) — Long-lived asset impairment — — (71,500) — Remeasurement of environmental liability — — (11,109) — Consolidated loss before income taxes $ (23,098) $ (12,885) $ (116,288) $ (5,959) |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of the following at September 30, 2022 and December 31, 2021: $ in thousands Estimated Useful September 30, 2022 December 31, 2021 Plant infrastructure 10 years $ 10,226 $ 34,725 Miners 3 years 176,309 48,121 Miner facility infrastructure 10 years 32,368 15,143 Land N/A 8,460 8,460 Equipment 5 years 1,012 1,660 Software 3 years 636 636 Coal ash impoundment 4 years — 2,410 Construction in process N/A 26,076 25,856 Miner deposits N/A 27,281 98,110 282,368 235,121 Less: Accumulated depreciation (36,297) (18,030) $ 246,071 $ 217,091 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-lived Intangible Assets | The following is a summary of finite-lived intangible assets: $ in thousands As of September 30, 2022 Intangible Assets Accumulated Amortization Intangible Assets, Net Customer relationships $ 3,320 $ (867) $ 2,453 Tradename 490 (102) 388 Total $ 3,810 $ (969) $ 2,841 As of December 31, 2021 Intangible Assets Accumulated Amortization Intangible Assets, Net Customer relationships $ 3,320 $ (244) $ 3,076 Tradename 490 (29) 461 Total $ 3,810 $ (273) $ 3,537 |
Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization expense is as follows: $ in thousands Amortization 2022 (for the remainder of) $ 232 2023 928 2024 928 2025 684 Thereafter 69 Total $ 2,841 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Equipment Financing Agreements | The following table provides information on the equipment financing agreements: $ in thousands Balance as of: Note Loan Date Maturity Date Interest Amount Financed September 30, 2022 December 31, 2021 Equipment Financings: A December 2020 June 2022 17.0 % $ 4,482 $ — $ 1,245 B December 2020 June 2022 17.0 % 428 — 95 C March 2021 November 2022 17.0 % 2,229 248 1,362 D April 2021 December 2022 17.0 % 4,012 669 2,674 E - H May 2021 October 2023 15.0 % 15,724 12,235 15,513 I July 2021 January 2023 17.0 % 4,457 1,238 3,468 J July 2021 March 2023 17.0 % 2,717 604 1,962 K October 2021 June 2023 17.0 % 2,223 864 1,976 L March 2022 April 2024 13.0 % 81,375 74,690 — Bonds Payable October 2021/December 2021 October 2026 8.5 % 72,200 72,200 72,200 Secured Promissory Note March 2022 June 2023 7.5 % 26,500 13,410 — Total debt 176,158 100,495 Less: Debt discount and issuance costs (6,425) (5,667) Total debt at book value 169,733 94,828 Less: Current portion (73,218) (19,577) Long-term debt, net of current portion and deferred financing fees $ 96,515 $ 75,251 |
Minimum Future Principal Payments on Debt | Minimum future principal payments on debt as of September 30, 2022 were as follows: $ in thousands Remainder of 2022 $ 20,404 2023 66,479 2024 17,075 2025 — 2026 72,200 Total $ 176,158 |
EQUITY BASED COMPENSATION (Tabl
EQUITY BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Unvested Restricted Common Stock Unit Awards Activity | The Company’s unvested RSU awards activity for the nine months ended September 30, 2022 is summarized below: RSUs Weighted Average Unvested at December 31, 2021 516,987 $ 6.80 Granted 55,870 $ 5.70 Vested (90,704) $ 6.25 Unvested at September 30, 2022 482,153 $ 6.77 |
Stock Options Activity | The Company’s common stock options activity for the nine months ended September 30, 2022 is summarized below: Options Weighted Average Weighted Average Aggregate Outstanding at December 31, 2021 583,080 $ 6.01 9.2 $ 5,854 Exercised (2,296) $ 6.25 Forfeited (9,554) $ 6.77 Expired (667) $ 6.25 Outstanding at September 30, 2022 570,563 $ 6.00 8.38 $ - Exercisable as of September 30, 2022 447,930 $ 5.89 8.35 $ 8,386 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings and diluted per share of common stock. Three Months Ended September 30: Nine Months Ended September 30: $ in thousands, except per share amounts 2022 2021 2022 2021 Numerator Net loss $ (23,177) $ (7,896) $ (131,488) $ (3,099) Less: Net income attributable to the member units before the reorganization — — — (648) Net loss attributable to Greenidge $ (23,177) $ (7,896) $ (131,488) $ (3,747) Denominator Basic weighted average shares outstanding 42,239 30,116 41,620 28,949 Diluted weighted average shares outstanding 42,239 30,116 41,620 28,949 (Loss) earnings per share Basic $ (0.55) $ (0.26) $ (3.16) $ (0.13) Diluted $ (0.55) $ (0.26) $ (3.16) $ (0.13) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Greenidge had the following noncash investing and financing activities: Nine Months Ended September 30, $ in thousands 2022 2021 Shares issued to Support.com shareholders upon Merger $ — $ 93,885 Property and equipment purchases financed with common stock $ — $ 991 Contribution of Preferred Units, Senior Priority Units, and notes payable to related $ — $ 72,891 Issuance of shares for investor fee associated with successful completion $ — $ 17,826 Issuance of warrants to advisor in connection with completion of Merger $ — $ 8,779 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) | Sep. 30, 2022 location |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of locations where facilities are owned and operated | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Nov. 11, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Mar. 18, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Short-Term Debt [Line Items] | |||||||||
Percentage of decrease in bitcoin | 57% | ||||||||
Percentage of increase in natural gas | 53% | ||||||||
Cash and cash equivalents, including restricted cash | $ 38,513 | $ 38,513 | $ 51,149 | $ 38,513 | $ 82,599 | $ 5,052 | |||
Bitcoin holdings at fair value | 600 | 600 | 600 | ||||||
Accounts payable and accrued expenses | 24,900 | 24,900 | 24,900 | ||||||
Principal payments plus interest payments on debt | 88,600 | ||||||||
Proceeds from sale of common stock | 7,783 | 0 | |||||||
Proceeds from sale of assets | 4,802 | $ 0 | |||||||
Restricted cash | 10,500 | $ 10,500 | 10,500 | $ 0 | |||||
Subsequent Event | |||||||||
Short-Term Debt [Line Items] | |||||||||
Proceeds from sale of common stock | $ 1,600 | ||||||||
B. Riley Commercial Capital, LLC | Promissory Note | |||||||||
Short-Term Debt [Line Items] | |||||||||
Aggregate principal loan amount | $ 26,500 | ||||||||
B Riley | |||||||||
Short-Term Debt [Line Items] | |||||||||
Proceeds from sale of common stock | $ 2,500 | $ 59,800 |
MERGER WITH SUPPORT.COM - Narra
MERGER WITH SUPPORT.COM - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Operating income | $ (17,053) | $ (11,865) | $ (100,650) | $ (4,696) |
Amortization expense | 200 | 100 | 700 | 100 |
Support.Com Business Acquisition | ||||
Business Acquisition [Line Items] | ||||
Revenue | 7,500 | 24,400 | ||
Operating income | 1,000 | 4,300 | ||
Amortization expense | $ 200 | $ 700 | ||
Transaction costs, before taxes | 30,000 | 32,400 | ||
Transaction costs, after taxes | $ 24,500 | $ 26,900 |
MERGER WITH SUPPORT.COM - Suppl
MERGER WITH SUPPORT.COM - Supplemental Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | |||||||
Net loss | $ (23,177) | $ (107,882) | $ (429) | $ (7,896) | $ 4,797 | $ (131,488) | $ (3,099) |
Support.Com Business Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Revenues | 42,448 | 87,830 | |||||
Net loss | $ (11,783) | $ (12,602) |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reporting segments | 2 |
SEGMENT INFORMATION - Informati
SEGMENT INFORMATION - Information about Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total Revenues | $ 29,359 | $ 35,754 | $ 98,353 | $ 62,993 |
Total Segments Adjusted EBITDA (loss) | (2,288) | 21,177 | 9,168 | 33,668 |
Cryptocurrency Datacenter and Power Generation | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 18,272 | 31,156 | 61,571 | 54,217 |
Cryptocurrency Datacenter and Power Generation | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 21,885 | 34,233 | 73,966 | 61,472 |
Total Segments Adjusted EBITDA (loss) | (3,669) | 20,973 | 3,886 | 33,464 |
Support Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 7,474 | 1,521 | 24,387 | 1,521 |
Total Segments Adjusted EBITDA (loss) | $ 1,381 | $ 204 | $ 5,282 | $ 204 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Total of Segments Adjusted EBITDA to Consolidated (Loss) Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting [Abstract] | ||||
Total Segments Adjusted EBITDA (loss) | $ (2,288) | $ 21,177 | $ 9,168 | $ 33,668 |
Depreciation and amortization | (13,835) | (2,667) | (22,680) | (5,531) |
Stock-based compensation | (361) | (411) | (1,029) | (1,474) |
Merger and other costs | (242) | (29,847) | (940) | (31,095) |
Expansion costs | (183) | (128) | (2,375) | (128) |
Interest expense, net | (5,430) | (1,009) | (15,693) | (1,399) |
Loss on sale of assets | (759) | 0 | (130) | 0 |
Long-lived asset impairment | 0 | 0 | (71,500) | 0 |
Remeasurement of environmental liability | 0 | 0 | (11,109) | 0 |
Loss before income taxes | $ (23,098) | $ (12,885) | $ (116,288) | $ (5,959) |
PROPERTY AND EQUIPMENT - Proper
PROPERTY AND EQUIPMENT - Property and Equipment, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 282,368 | $ 235,121 |
Less: Accumulated depreciation | (36,297) | (18,030) |
Property and equipment, net | $ 246,071 | 217,091 |
Plant infrastructure | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Property and equipment, gross | $ 10,226 | 34,725 |
Miners | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Property and equipment, gross | $ 176,309 | 48,121 |
Miner facility infrastructure | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Property and equipment, gross | $ 32,368 | 15,143 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,460 | 8,460 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Property and equipment, gross | $ 1,012 | 1,660 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Property and equipment, gross | $ 636 | 636 |
Coal ash impoundment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 4 years | |
Property and equipment, gross | $ 0 | 2,410 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 26,076 | 25,856 |
Miner deposits | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 27,281 | $ 98,110 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 13,600 | $ 2,700 | $ 22,000 | $ 5,500 | |
Impairment of long-lived assets | $ 0 | $ 0 | $ 71,500 | $ 0 | |
Miners | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Miners | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 5 years | ||||
Plant infrastructure | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 10 years | ||||
Plant infrastructure | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 15 years | ||||
Plant infrastructure | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 39 years | ||||
Cryptocurrency Datacenter and Power Generation | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of long-lived assets | $ 71,500 |
INTANGIBLE ASSETS - Finite-live
INTANGIBLE ASSETS - Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | $ 3,810 | $ 3,810 |
Accumulated Amortization | (969) | (273) |
Total | 2,841 | 3,537 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | 3,320 | 3,320 |
Accumulated Amortization | (867) | (244) |
Total | 2,453 | 3,076 |
Tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets | 490 | 490 |
Accumulated Amortization | (102) | (29) |
Total | $ 388 | $ 461 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 0.2 | $ 0.1 | $ 0.7 | $ 0.1 |
INTANGIBLE ASSETS - Finite-Li_2
INTANGIBLE ASSETS - Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (for the remainder of) | $ 232 | |
2023 | 928 | |
2024 | 928 | |
2025 | 684 | |
Thereafter | 69 | |
Total | $ 2,841 | $ 3,537 |
DEBT - Equipment Financing Agre
DEBT - Equipment Financing Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Amount Financed | $ 176,200 | |
Less: Debt discount and issuance costs | (6,400) | |
Less: Current portion | (73,218) | $ (19,577) |
Long-term debt, net of current portion and deferred financing fees | 96,515 | 75,251 |
Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Total debt | 176,158 | 100,495 |
Less: Debt discount and issuance costs | (6,425) | (5,667) |
Total | 169,733 | 94,828 |
Less: Current portion | (73,218) | (19,577) |
Long-term debt, net of current portion and deferred financing fees | $ 96,515 | 75,251 |
Equipment Finance Agreement | Promissory Note | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.50% | |
Amount Financed | $ 26,500 | |
Total debt | $ 13,410 | 0 |
Miner Equipment Note A | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 17% | |
Amount Financed | $ 4,482 | |
Total debt | $ 0 | 1,245 |
Miner Equipment Note B | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 17% | |
Amount Financed | $ 428 | |
Total debt | $ 0 | 95 |
Miner Equipment Note C | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 17% | |
Amount Financed | $ 2,229 | |
Total debt | $ 248 | 1,362 |
Miner Equipment Note D | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 17% | |
Amount Financed | $ 4,012 | |
Total debt | $ 669 | 2,674 |
Miner Equipment Note E And H | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 15% | |
Amount Financed | $ 15,724 | |
Total debt | $ 12,235 | 15,513 |
Miner Equipment Note I | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 17% | |
Amount Financed | $ 4,457 | |
Total debt | $ 1,238 | 3,468 |
Miner Equipment Note J | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 17% | |
Amount Financed | $ 2,717 | |
Total debt | $ 604 | 1,962 |
Miner Equipment Note K | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 17% | |
Amount Financed | $ 2,223 | |
Total debt | $ 864 | 1,976 |
Miner Equipment Note L | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 13% | |
Amount Financed | $ 81,375 | |
Total debt | $ 74,690 | 0 |
Bonds | Equipment Finance Agreement | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.50% | |
Amount Financed | $ 72,200 | |
Total debt | $ 72,200 | $ 72,200 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Aug. 10, 2022 USD ($) renewal_option | Mar. 21, 2022 USD ($) | Mar. 18, 2022 renewal_option | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 5.4 | $ 1 | $ 15.7 | $ 1.4 | ||||
Amended principal amount | $ 16.4 | |||||||
Percentage of proceeds received from sale of stock to be used to repay debt | 65% | |||||||
Debt instrument, face amount | 176.2 | 176.2 | ||||||
Debt instrument, fair value | 139.2 | 139.2 | ||||||
Unamortized discounts and debt issuance costs | 6.4 | 6.4 | ||||||
Greenidge And Noteholder | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.50% | |||||||
Master Equipment Financing Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal loan amount | $ 81 | |||||||
Interest rate | 13% | |||||||
Promissory Note | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6% | |||||||
Number of renewal options | renewal_option | 4 | 5 | ||||||
Renewal term | 30 days | 30 days | ||||||
Master Equipment Finance Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowed amount partially funded | $ 17 | $ 17 | $ 54 | |||||
Debt term | 25 months | |||||||
8.50% Senior Secured Notes Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 8.50% | 8.50% |
DEBT - Minimum Future Principal
DEBT - Minimum Future Principal Payments on Debt (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2022 | $ 20,404 |
2023 | 66,479 |
2024 | 17,075 |
2025 | 0 |
2026 | 72,200 |
Total | $ 176,158 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Greenidge Blocker Corp | |
Related Party Transaction [Line Items] | |
Costs reimbursed | $ 0.1 |
Letter of Credit | |
Related Party Transaction [Line Items] | |
Net proceeds from new line of credit | 5 |
Empire | |
Related Party Transaction [Line Items] | |
Net proceeds from new line of credit | 3.6 |
Atlas | |
Related Party Transaction [Line Items] | |
Limited guaranty payment | $ 1 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||
Oct. 03, 2022 | Apr. 28, 2022 | Apr. 07, 2022 | Apr. 06, 2022 | Sep. 15, 2021 | Nov. 11, 2022 | Sep. 30, 2022 | |
Class of Stock [Line Items] | |||||||
Maximum class A common stock and class B common stock shares in excess of the exchange cap | 19.99% | ||||||
Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Discount on consideration received | 5% | 5% | |||||
Discount on consideration received, triggering event achieved | 6% | 6% | |||||
Discount on consideration received, triggering event, amount | $ 200,000,000 | $ 200,000,000 | |||||
Maximum percentage of ownership by investor | 4.99% | ||||||
Sale of stock, period | 24 months | ||||||
At The Market Issuance Sales Agreement | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued in transaction | 1,634,964 | ||||||
Underwriter compensation, percentage of gross stock sales | 5% | ||||||
Maximum aggregate consideration to be received on transaction | $ 22,800,000 | ||||||
Net proceeds received | $ 1,600,000 | ||||||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Additional common stock issued (in shares) | 1,599,229 | ||||||
Additional common stock issued | $ 5,000,000 | ||||||
Common Class A | Common Stock Purchase Agreement and Registration Rights Agreement | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of private placement | $ 500,000,000 | $ 500,000,000 | |||||
Number of shares issued in transaction | 2,547,500 | ||||||
Proceeds from common stock purchase agreement | $ 54,900,000 | ||||||
Common Class A | Greenidge Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Additional common stock issued (in shares) | 5,720,951 |
EQUITY BASED COMPENSATION - Nar
EQUITY BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Feb. 28, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Stock-based compensation expense | $ 0.4 | $ 0.4 | $ 1 | $ 1.5 | |
2021 Equity Plan | |||||
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Common stock reserved for issuance (in shares) | 3,831,112 | ||||
Resticted Common Stock Unit | |||||
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Granted (in shares) | 55,870 | ||||
Fair market value of the awards granted | $ 0.3 | ||||
Unrecognized compensation cost | 2 | $ 2 | |||
Unrecognized compensation cost, period for recognition | 1 year 7 days | ||||
Resticted Common Stock Unit | 2021 Equity Plan | |||||
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Granted (in shares) | 55,870 | ||||
Vesting period | 3 years | ||||
Share-Based Payment Arrangement, Option | |||||
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Unrecognized compensation cost | $ 0.2 | $ 0.2 | |||
Unrecognized compensation cost, period for recognition | 1 year 5 months 26 days |
EQUITY BASED COMPENSATION - Unv
EQUITY BASED COMPENSATION - Unvested Restricted Common Stock Unit Awards Activity (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
RSUs | |
Unvested, beginning balance (in shares) | shares | 516,987 |
Granted (in shares) | shares | 55,870 |
Vested (in shares) | shares | (90,704) |
Unvested, ending balance (in shares) | shares | 482,153 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 6.80 |
Granted (in dollars per share) | $ / shares | 5.70 |
Vested (in dollars per share) | $ / shares | 6.25 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 6.77 |
EQUITY BASED COMPENSATION - Sto
EQUITY BASED COMPENSATION - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Weighted Average Exercise Price Per Share | ||
Weighted average exercise price per share, exercised (in dollars per share) | $ 6.25 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||
Exercisable, weighted average remaining contractual life as of end of period | 8 years 4 months 6 days | |
Outstanding, aggregate intrinsic value as of end of period | $ 0 | |
Share-Based Payment Arrangement, Option | ||
Options | ||
Outstanding, beginning balance (in shares) | 583,080 | |
Exercised (in shares) | (2,296) | |
Forfeited (in shares) | (9,554) | |
Expired (in shares) | (667) | |
Outstanding, ending balance (in shares) | 570,563 | 583,080 |
Weighted Average Exercise Price Per Share | ||
Weighted average exercise price per share, beginning balance (in dollars per share) | $ 6.01 | |
Weighted average exercise price per share, forfeited (in dollars per share) | 6.77 | |
Weighted average exercise price per share, expired (in dollars per share) | 6.25 | |
Weighted average exercise price per share, ending balance (in dollars per share) | $ 6 | $ 6.01 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||
Exercisable as of end of period (in shares) | 447,930 | |
Exercisable, weighted average exercise price per share as of end of period (in dollars per share) | $ 5.89 | |
Outstanding, weighted average remaining contractual life as of beginning of period | 9 years 2 months 12 days | |
Outstanding, weighted average remaining contractual life as of end of period | 8 years 4 months 17 days | |
Outstanding, aggregate intrinsic value as of beginning period | $ 5,854 | |
Outstanding, aggregate intrinsic value as of end of period | $ 5,854 | |
Exercisable, aggregate intrinsic value, as of end of period | $ 8,386 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate as a percentage | (0.30%) | 38.70% | (13.10%) | 48% |
Charge for recognition of valuation allowance | $ 15 |
EARNINGS PER SHARE - Basic Earn
EARNINGS PER SHARE - Basic Earnings and Diluted Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator | |||||||
Net loss | $ (23,177) | $ (107,882) | $ (429) | $ (7,896) | $ 4,797 | $ (131,488) | $ (3,099) |
Less: Net income attributable to the member units before the reorganization | 0 | 0 | 0 | (648) | |||
Net loss attributable to Greenidge, basic | (23,177) | (7,896) | (131,488) | (3,747) | |||
Net loss attributable to Greenidge, diluted | $ (23,177) | $ (7,896) | $ (131,488) | $ (3,747) | |||
Denominator | |||||||
Basic weighted average shares outstanding (in shares) | 42,239,000 | 30,116,000 | 41,620,000 | 28,949,000 | |||
Diluted weighted average shares outstanding (in shares) | 42,239,000 | 30,116,000 | 41,620,000 | 28,949,000 | |||
(Loss) earnings per share | |||||||
Basic (in dollars per share) | $ (0.55) | $ (0.26) | $ (3.16) | $ (0.13) | |||
Diluted (in dollars per share) | $ (0.55) | $ (0.26) | $ (3.16) | $ (0.13) |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jan. 28, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Common stock, outstanding (in shares) | 42,964,462 | 42,964,462 | 40,865,336 | |||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 0 | 0 | 0 | 0 | ||
Resticted Common Stock Unit | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Number of shares outstanding | 482,153 | 482,153 | ||||
Common Stock | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Common stock, outstanding (in shares) | 0 | |||||
Number of shares outstanding | 570,563 | 570,563 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 USD ($) dth | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Product Liability Contingency [Line Items] | ||||
Environmental trust liability | $ 22,415 | $ 22,415 | $ 11,306 | |
Purchase commitment, energy volume required per day (in dekatherm) | dth | 15,000,000 | |||
Purchase commitment per month | $ 200 | |||
Purchase commitment, termination notice period | 12 months | |||
Purchase commitment period | 10 years | |||
Coal ash impoundment | ||||
Product Liability Contingency [Line Items] | ||||
Environmental trust liability | 8,600 | 8,600 | $ 8,600 | |
Environmental obligations | $ 13,800 | |||
Selling General And Administrative Expenses Member | Coal ash impoundment | ||||
Product Liability Contingency [Line Items] | ||||
Environmental obligations | $ 11,100 |
CONCENTRATIONS (Details)
CONCENTRATIONS (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cryptocurrency datacenter | |||||
Concentration Risk [Line Items] | |||||
Revenue from contract with customer, term | 1 day | ||||
Sales Revenue Net | Customer Concentration Risk | One Major Customer | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 12% | 9% | 13% | 12% | |
Sales Revenue Net | Customer Concentration Risk | Operator Customer One | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 60% | 62% | 56% | 37% | |
Sales Revenue Net | Supplier Concentration Risk | One Major Customer | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 67% | 60% | 64% | 59% | |
Sales Revenue Net | Supplier Concentration Risk | Operator Customer One | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 19% | 18% | |||
Accounts Receivable | Customer Concentration Risk | One Major Customer | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 69% | 67% |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |||
Shares issued to Support.com shareholders upon Merger | $ 0 | $ 93,885 | |
Property and equipment purchases financed with common stock | 0 | 991 | |
Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for Greenidge class B common stock | 0 | 72,891 | |
Issuance of shares for investor fee associated with successful completion of Merger | $ 17,826 | 0 | 17,826 |
Issuance of warrants to advisor in connection with completion of Merger | $ 8,779 | $ 0 | $ 8,779 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 3 Months Ended | 9 Months Ended | |||
Oct. 10, 2022 shares | Oct. 07, 2022 USD ($) installment shares | Oct. 03, 2022 USD ($) | Sep. 30, 2022 | Sep. 30, 2022 shares | |
Operator Customer One | Sales Revenue Net | Supplier Concentration Risk | |||||
Subsequent Event [Line Items] | |||||
Concentration risk percentage | 19% | 18% | |||
Restricted Stock Units (RSUs) | |||||
Subsequent Event [Line Items] | |||||
Vested in period (in shares) | 90,704 | ||||
Grants in period (in shares) | 55,870 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Mutual agreement, base salary | $ | $ 750,000 | ||||
Subsequent Event | At The Market Issuance Sales Agreement | |||||
Subsequent Event [Line Items] | |||||
Maximum aggregate consideration to be received on transaction | $ | $ 22,800,000 | ||||
Subsequent Event | Restricted Stock Units (RSUs) | |||||
Subsequent Event [Line Items] | |||||
Vested in period (in shares) | 229,868 | ||||
Grants in period (in shares) | 280,000 | ||||
Number of installments to settle share based awards fully vested | installment | 12 | ||||
Subsequent Event | Chief Executive Officer | |||||
Subsequent Event [Line Items] | |||||
Grants in period (in shares) | 1,852,812 | ||||
Subsequent Event | Chief Executive Officer | Share-Based Payment Arrangement, Tranche One | |||||
Subsequent Event [Line Items] | |||||
Vesting period | 1 year | ||||
Subsequent Event | Chief Executive Officer | Share-Based Payment Arrangement, Tranche Two | |||||
Subsequent Event [Line Items] | |||||
Vesting period | 1 year | ||||
Subsequent Event | Chief Executive Officer | Share-Based Payment Arrangement, Tranche Three | |||||
Subsequent Event [Line Items] | |||||
Vesting period | 1 year | ||||
Subsequent Event | Chief Strategy Officer | |||||
Subsequent Event [Line Items] | |||||
Grants in period (in shares) | 1,224,030 | ||||
Subsequent Event | Chief Strategy Officer | Share-Based Payment Arrangement, Tranche One | |||||
Subsequent Event [Line Items] | |||||
Vesting period | 1 year | ||||
Subsequent Event | Chief Strategy Officer | Share-Based Payment Arrangement, Tranche Two | |||||
Subsequent Event [Line Items] | |||||
Vesting period | 1 year | ||||
Subsequent Event | Chief Strategy Officer | Share-Based Payment Arrangement, Tranche Three | |||||
Subsequent Event [Line Items] | |||||
Vesting period | 1 year |