Ault Global Holdings Reports Preliminary Q2 2021 Financial Results
13 July 2021 - 8:30PM
Business Wire
Q2 2021 Revenue of Approximately $62 million, up 1048% From
the Prior Year’s Quarter
Q2 2021 Income Before Taxes of Approximately $44 Million
Compared to a $1.4 Million Loss in the Prior Year’s Quarter
Ault Global Holdings, Inc. (NYSE American: DPW), a diversified
holding company (the “Company”), reports preliminary revenue
for its second quarter ended June 30, 2021.
Q2-2021 revenue highlights
- Revenue of approximately $62 million, an increase of
approximately 1048% from $5.4 million in the prior second fiscal
quarter;
- Revenue from lending and investing activities of approximately
$53 million, due to the allocation of capital to the Company’s
wholly owned subsidiary, Digital Power Lending, LLC (“DP
Lending”);
- Revenue from lending and investing activities includes an
approximate $40 million gain from the Company’s investment in
Alzamend Neuro, Inc. (Nasdaq: ALZN) (“Alzamend”), a
preclinical stage biopharmaceutical company focused on developing
novel products for the treatment of neurodegenerative diseases and
psychiatric disorders;
- Revenue from cryptocurrency mining of approximately $300,000 as
the Company resumed cryptocurrency mining operations with
approximately 1,000 miners during March 2021; and
- Income before taxes of approximately $44 million for the
quarter, which represents the second sequential quarter of
profitability.
The Company’s Founder and Executive Chairman, Milton “Todd”
Ault, III said, “Our preliminary financial results in the second
quarter of 2021 reflect strength of our lending and trading
activities at DP Lending, our financial services subsidiary. We
believe our current lending and investing pipeline is strong and if
the market conditions for investing in small cap stocks remains
strong, the future prospects for the Company are extremely
promising. We see strength across all our subsidiaries and expect
to allocate additional capital to our lending and investment
platform in the third quarter. Simply stated, we are in the
strongest position of our Company’s 52-year history. As discussed
in the previous quarter, our key initiatives for 2021 include:
- exploring a potential IPO or other transaction to access
capital markets for our Gresham Worldwide defense business;
- exploring a potential IPO for our power electronics and
electric vehicle charger business;
- completing the initial 30,000 square foot buildout of our
Michigan data center;
- ramping up cryptocurrency mining operations at our Michigan
data center;
- ramping up fulfilment of the $50 million MTIX purchase order
for MLSE plasma-laser systems;
- expanding our loan and investment portfolio at DP Lending;
and
- considering further acquisitions.
With the strongest balance sheet in the Company’s history, a
capable management team and a talented group of CEOs at the
subsidiary level, the future prospects look bright for the
Company.”
The Company has certain beneficial ownership and rights to
further invest in Alzamend as follows:
- The Company beneficially owns approximately 5.3 million shares
of Alzamend common stock held by its wholly owned subsidiary, DP
Lending.
- The Company has the right to acquire 1.35 million shares of
Alzamend common stock upon the exercise of warrants beneficially
owned by DP Lending.
- In March 2021, Alzamend entered into a securities purchase
agreement with DP Lending pursuant to which Alzamend agreed to sell
an aggregate of 6.7 million shares of its common stock for an
aggregate of $10 million, or $1.50 per share, which sales will be
made in tranches. Alzamend further agreed to issue to DP Lending
warrants to purchase such number of shares of its common stock
equal to 50% of the shares of common stock purchased under the
securities purchase agreement at an exercise price of $3.00 per
share. On March 9, 2021, the Company purchased 2.7 million shares
of Alzamend common stock (included in the 5.3 million shares of
Alzamend common stock held by DP Lending described above) upon
closing of the first tranche of $4 million. Under the terms of the
securities purchase agreement, DP Lending may purchase an
additional 4.0 million shares.
- Finally, Alzamend agreed that for a period of 18 months
following the date of the payment of the final tranche of $4
million, DP Lending will have the right to invest an additional $10
million on the same terms, except that no specific milestones have
been determined with respect to the additional $10 million.
Should the Company exercise all warrants and options to invest,
it would own approximately 22.6 million shares with an average cost
of $2.27 per share of common stock, representing 22% of Alzamend’s
issued and outstanding common stock.
For more information on Ault Global Holdings and its
subsidiaries, the Company recommends that stockholders, investors
and any other interested parties read the Company’s public filings
with the SEC, available at www.sec.gov, and press releases
available under the Investor Relations section at
www.AultGlobal.com.
About Ault Global Holdings, Inc.
Ault Global Holdings, Inc. is a diversified holding company
pursuing growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, the Company
provides mission-critical products that support a diverse range of
industries, including defense/aerospace, industrial, automotive,
telecommunications, medical/biopharma, and textiles. In addition,
the Company extends credit to select entrepreneurial businesses
through a licensed lending subsidiary. Ault Global Holdings’
headquarters are located at 11411 Southern Highlands Parkway, Suite
240, Las Vegas, NV 89141; www.AultGlobal.com.
About Alzamend Neuro
Alzamend Neuro, Inc. (“Alzamend”) (www.Alzamend.com) is a
Delaware corporation with its corporate headquarters in Tampa,
Florida. The mission of Alzamend is to help the Alzheimer’s
community by supporting the full product development life cycle of
treatment and cures of neurodegenerative diseases and psychiatric
disorders, including Alzheimer’s disease. With Alzamend’s two
current and future product candidates, Alzamend aims to bring
treatments or cures to market at a reasonable cost as quickly as
possible. Alzamend’s current pipeline consists of two novel
therapeutic drug candidates, AL001 - a patented ionic cocrystal
technology delivering a therapeutic combination of lithium,
proline, and salicylate, and AL002 - a patented method using a
mutant-peptide sensitized cell as a cell-based therapeutic vaccine
that seeks to restore the ability of a patient’s immunological
system to combat Alzheimer’s disease. Both of Alzamend’s product
candidates are licensed from the pursuant to royalty-bearing
exclusive worldwide licenses from the University of South
Florida.
Forward-Looking Statements
This press release contains “forward looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on the Company’s
website at www.AultGlobal.com.
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