Historical
|
Pro Forma Adjustments
|
Pro Forma
| |||||||||||
September 30, 2023
|
November 2023
Series D Exchange
|
Notes
|
September 30, 2023
| ||||||||||
ASSETS:
| |||||||||||||
Cash and cash equivalents
|
$
|
4,979,299
|
$
|
-
|
$
|
4,979,299
| |||||||
Digital currencies
|
641,999
|
-
|
641,999
| ||||||||||
Accounts receivable
|
486,706
|
-
|
486,706
| ||||||||||
Inventory
|
3,143,284
|
-
|
3,143,284
| ||||||||||
Prepaid insurance
|
1,842,250
|
-
|
1,842,250
| ||||||||||
Due from related parties
|
97,288
|
-
|
97,288
| ||||||||||
Other current assets
|
1,137,834
|
-
|
1,137,834
| ||||||||||
Total current assets
|
12,328,660
|
-
|
12,328,660
| ||||||||||
Equipment deposits
|
-
|
-
|
-
| ||||||||||
Property, plant and equipment, net
|
156,481,678
|
-
|
156,481,678
| ||||||||||
Operating lease right-of-use assets
|
1,552,735
|
-
|
1,552,735
| ||||||||||
Land
|
1,748,440
|
-
|
1,748,440
| ||||||||||
Road bond
|
211,958
|
-
|
211,958
| ||||||||||
Security deposits
|
348,888
|
-
|
348,888
| ||||||||||
Other noncurrent assets
|
155,992
|
-
|
155,992
| ||||||||||
TOTAL ASSETS
|
$
|
172,828,351
|
$
|
-
|
$
|
172,828,351
| |||||||
LIABILITIES:
| |||||||||||||
Accounts payable
|
$
|
14,666,753
|
$
|
-
|
$
|
14,666,753
| |||||||
Accrued liabilities
|
9,638,819
|
94,274
|
(a)
|
9,733,093
| |||||||||
Financed insurance premiums
|
1,112,558
|
-
|
1,112,558
| ||||||||||
Current portion of long-term debt, net of discounts and issuance fees
|
1,654,634
|
-
|
1,654,634
| ||||||||||
Current portion of operating lease liabilities
|
748,369
|
-
|
748,369
| ||||||||||
Due to related parties
|
451,367
|
-
|
451,367
| ||||||||||
Total current liabilities
|
28,272,500
|
94,274
|
28,366,774
| ||||||||||
Asset retirement obligation
|
1,062,677
|
-
|
1,062,677
| ||||||||||
Warrant liabilities
|
5,434,420
|
-
|
5,434,420
| ||||||||||
Long-term debt, net of discounts and issuance fees
|
57,653,823
|
-
|
57,653,823
| ||||||||||
Long-term operating lease liabilities
|
899,576
|
-
|
899,576
| ||||||||||
Contract liabilities
|
560,510
|
-
|
560,510
| ||||||||||
Total liabilities
|
93,883,506
|
94,274
|
93,977,780
| ||||||||||
COMMITMENTS AND CONTINGENCIES
| |||||||||||||
REDEEMABLE COMMON STOCK:
| |||||||||||||
Common Stock - Class V; $0.0001 par value; 34,560,000 shares authorized and 2,405,760 shares issued and outstanding
|
10,563,277
|
-
|
10,563,277
| ||||||||||
Total redeemable common stock
|
10,563,277
|
-
|
10,563,277
| ||||||||||
STOCKHOLDERS' EQUITY (DEFICIT):
| |||||||||||||
Common Stock - Class A; $0.0001 par value; 685,440,000 shares authorized; 7,876,688 shares issued and outstanding.
|
788
|
-
|
788
| ||||||||||
Series C convertible preferred stock; $0.0001 par value; 23,102 shares authorized; 5,990 shares issued and outstanding.
|
2
|
(2
|
)
|
(b)
|
-
| ||||||||
Series D convertible preferred stock; $0.0001 par value; 15,582 shares authorized; 15,582 shares issued and outstanding.
|
-
|
2
|
(b)
|
2
| |||||||||
Accumulated deficits
|
(321,126,596
|
)
|
20,492,568
|
(b)
|
(300,634,028
|
)
| |||||||
Additional paid-in capital
|
389,507,374
|
(20,586,842
|
)
|
(a) (b)
|
368,920,532
| ||||||||
Total stockholders' equity (deficit)
|
68,381,568
|
(94,274
|
)
|
68,287,294
| |||||||||
Total redeemable common stock and stockholders' equity (deficit)
|
78,944,845
|
(94,274
|
)
|
78,850,571
| |||||||||
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
|
$
|
172,828,351
|
$
|
-
|
$
|
172,828,351
|
Historical
|
Pro Forma Adjustments
|
Pro Forma
| |||||||||||
Nine Months Ended
September 30, 2023
|
November 2023
Series D Exchange
|
Notes
|
Nine Months Ended
September 30, 2023
| ||||||||||
OPERATING REVENUES:
| |||||||||||||
Cryptocurrency mining
|
$
|
37,764,990
|
$
|
-
|
$
|
37,764,990
| |||||||
Energy
|
4,682,590
|
-
|
4,682,590
| ||||||||||
Cryptocurrency hosting
|
9,195,072
|
-
|
9,195,072
| ||||||||||
Capacity
|
1,442,067
|
-
|
1,442,067
| ||||||||||
Other
|
142,194
|
-
|
142,194
| ||||||||||
Total operating revenues
|
53,226,913
|
-
|
53,226,913
| ||||||||||
OPERATING EXPENSES:
| |||||||||||||
Fuel
|
22,262,141
|
-
|
22,262,141
| ||||||||||
Operations and maintenance
|
24,206,080
|
-
|
24,206,080
| ||||||||||
General and administrative
|
25,145,444
|
-
|
25,145,444
| ||||||||||
Depreciation and amortization
|
26,025,021
|
-
|
26,025,021
| ||||||||||
Loss on disposal of fixed assets
|
108,367
|
-
|
108,367
| ||||||||||
Realized gain on sale of digital currencies
|
(725,139
|
)
|
-
|
(725,139
|
)
| ||||||||
Impairments on digital currencies
|
683,241
|
-
|
683,241
| ||||||||||
Impairments on equipment deposits
|
5,422,338
|
-
|
5,422,338
| ||||||||||
Total operating expenses
|
103,127,493
|
-
|
103,127,493
| ||||||||||
NET OPERATING LOSS
|
(49,900,580
|
)
|
-
|
(49,900,580
|
)
| ||||||||
OTHER INCOME (EXPENSE):
| |||||||||||||
Interest expense
|
(7,428,530
|
)
|
-
|
(7,428,530
|
)
| ||||||||
Loss on debt extinguishment
|
(28,960,947
|
)
|
-
|
(28,960,947
|
)
| ||||||||
Changes in fair value of warrant liabilities
|
5,580,453
|
-
|
5,580,453
| ||||||||||
Other
|
45,000
|
-
|
45,000
| ||||||||||
Total other income (expense)
|
(30,764,024
|
)
|
-
|
(30,764,024
|
)
| ||||||||
NET LOSS
|
$
|
(80,664,604
|
)
|
$
|
-
|
$
|
(80,664,604
|
)
| |||||
NET LOSS attributable to noncontrolling interest
|
(26,663,731
|
)
|
-
|
(26,663,731
|
)
| ||||||||
Deemed contribution from exchange of Series C convertible preferred stock
|
-
|
20,492,568
|
(c)
|
20,492,568
| |||||||||
NET LOSS attributable to Stronghold Digital Mining, Inc.
|
$
|
(54,000,873
|
)
|
$
|
20,492,568
|
$
|
(33,508,305
|
)
| |||||
NET LOSS attributable to Class A common shareholders:
| |||||||||||||
Basic
|
$
|
(8.93
|
)
|
$
|
(5.54
|
)
| |||||||
Diluted
|
$
|
(8.93
|
)
|
$
|
(5.54
|
)
| |||||||
Weighted average number of Class A common shares outstanding:
| |||||||||||||
Basic
|
6,047,891
|
6,047,891
| |||||||||||
Diluted
|
6,047,891
|
6,047,891
|
(a) |
Reflects an increase in accrued liabilities of approximately $0.1 million for legal transaction fees incurred as part of the Series D Exchange Transaction, offset by a decrease in additional paid-in capital.
|
(b) |
Reflects an increase in Series D Preferred Stock, offset by a decrease in Series C Preferred Stock associated with the Series D Exchange Transaction. The pro forma balance sheet as of September 30, 2023, also reflects a change in accumulated deficit and additional paid-in capital of approximately $20.5 million, which represents a deemed contribution resulting from a change in fair value associated with the newly-issued Series D Preferred Stock.
|
(c) |
Reflects a deemed contribution of approximately $20.5 million resulting from the extinguishment of the shares of Series C Preferred Stock associated with the Series D Exchange Transaction. This deemed contribution represents the difference between the carrying value of the existing Series C Preferred Stock and the estimated fair value of the newly-issued Series D Preferred Stock.
|
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Disclaimer
Stronghold Digital Mining Inc. published this content on 05 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 December 2023 21:08:32 UTC.