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Sphere 3D Corp. (ANY-0.57%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing revenues of $2.4 million, down from $5.7 million in the same quarter the previous year. The decrease is attributed to a reduction in the number of mining machines in operation.
Operating costs and expenses for the quarter were reported at $7.5 million, compared to $12.1 million in the previous year. The decrease is primarily due to lower hosting fees and the sale of the Service and Product segment.
The company reported a net income of $104,000 for the quarter, compared to a net loss of $6.3 million in the previous year. This improvement is attributed to gains from the sale of equity securities and a termination fee from a hosting agreement.
Cash and cash equivalents increased to $4.95 million as of September 30, 2024, from $586,000 at the end of 2023. This increase is primarily due to proceeds from the sale of investment in equity securities.
Sphere 3D Corp. continues to focus on its Bitcoin mining operations and is in the process of refreshing its mining fleet with newer-generation machines to improve efficiency.
The company acknowledges its dependence on the price of Bitcoin and the availability of cost-effective electricity for its mining operations. It also highlights potential risks related to regulatory changes and market conditions.
The filing notes the company's ongoing legal proceedings with Gryphon Digital Mining, Inc., with claims and counterclaims related to breach of contract and fiduciary duties.
Sphere 3D Corp. has received a notice from Nasdaq (NDAQ-0.10%) regarding non-compliance with the minimum bid price requirement but has since regained compliance.
The company does not anticipate cash dividend payments to common stockholders in the near future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sphere 3D Corp. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.