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MGT Capital Investments Inc (MGTI+200.00%). has submitted its 10-Q filing for the quarterly period ended March 31, 2024.
The filing reports total revenue of $102,000 for the quarter, a decrease from $107,000 in the same quarter of the previous year. Revenue from Bitcoin mining was $17,000, down from $21,000, while hosting services contributed $85,000, slightly less than the $86,000 in the prior year.
Operating expenses for the quarter were $329,000, a decrease from $617,000 in the previous year. This reduction was primarily due to lower general and administrative expenses, which fell to $234,000 from $483,000, and a decrease in the cost of revenue to $95,000 from $134,000.
The company reported a net income of $296,000 for the quarter, compared to a net loss of $3,798,000 in the previous year. This improvement was largely due to gains from changes in the fair value of derivative liabilities and warrant derivative liabilities.
MGT Capital Investments Inc. had cash and cash equivalents of $26,000 as of March 31, 2024. The company acknowledges the need for additional funding to sustain operations and meet its financial obligations.
The company's mining facility in LaFayette, Georgia, operates with approximately 35 Antminer S19 Pro miners. MGT continues to lease space and provide hosting services for third-party miners.
The filing outlines the challenges faced by the company, including the volatility of Bitcoin prices, regulatory developments, and economic uncertainties. MGT is exploring potential expansion opportunities and other sites for Bitcoin mining facilities.
MGT Capital Investments Inc. has identified a material weakness in its internal controls over financial reporting due to insufficient segregation of duties and independent review of duties performed.
The filing also details recent changes in the company's management, including the resignation of the Chief Executive Officer and the appointment of an Interim Principal Executive Officer.
MGT Capital Investments Inc. continues to face liquidity challenges and is seeking additional capital to support its operations and growth initiatives.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the MGT Capital Investments Inc quarterly 10-Q report dated January 31, 2025. To report an error, please email earnings@qz.com.