Sphere 3D Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Sphere 3D Corp. has filed its annual 10-K report for the fiscal year ending December 31, 2023, detailing its financial performance and business operations.</b>

AI Summary

Sphere 3D Corp. (ANY) filed a Annual Report (10-K) with the SEC on March 13, 2024. Sphere 3D Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 243 Tresser Blvd, 17th Floor, Stamford, CT 06901. Sphere 3D Corp. operates within the Finance Services industry, SIC code 6199. The filing was submitted on March 13, 2024.

Why It Matters

For investors and stakeholders tracking Sphere 3D Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Sphere 3D Corp.'s financial health, operational activities, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. As a public company, Sphere 3D Corp. is required to file a 10-K annually, offering transparency into its financial statements, risk factors, and management's discussion and analysis, enabling stakeholders to make informed investment decisions.

Risk Assessment

Risk Level: medium — Sphere 3D Corp. shows moderate risk based on this filing. The company's financial performance and operational details are not fully available in this header-only filing, requiring a deeper dive into the full document for a complete risk assessment.

Analyst Insight

Review the full 10-K filing for Sphere 3D Corp. to understand its financial performance, operational risks, and strategic outlook for 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-13 — Filing Date (Date of submission)

Key Players & Entities

• Sphere 3D Corp. (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-13 (date) — Filing date
• 243 Tresser Blvd, 17th Floor, Stamford, CT 06901 (address) — Business address
• 6199 (industry_code) — Standard Industrial Classification

FAQ

Industry Context

Sphere 3D Corp. operates in the Finance Services sector, specifically within digital mining and product/service offerings.

Regulatory Implications

As a publicly traded company, Sphere 3D Corp. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Analyze the full 10-K document for detailed financial statements and management's discussion.
2. Identify specific revenue streams and growth percentages for digital mining and product/service segments.
3. Assess the company's risk factors and their potential impact on future operations.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-13: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), providing year-end financial and operational data compared to previous periods.

Key Financial Figures

• $8.4 million — we paid costs under the Gryphon MSA of $8.4 million and $1.3 million, respectively. On Apr
• $1.3 m — der the Gryphon MSA of $8.4 million and $1.3 million, respectively. On April 7, 2023,
• $0.6 million — ximately 21.6 Bitcoin and approximately $0.6 million of revenue at December 31, 2023, before
• $33.9 million — , we have a pre-paid deposit balance of $33.9 million towards the Hosting Sub-Lease, which we
• $23.9 million — ing Sub-Lease, which we have recorded a $23.9 million provision for losses on the deposit due
• $8.2 million — nded December 31, 2023 and 2022, we had $8.2 million and $15.7 million, respectively, of exp
• $15.7 m — 2023 and 2022, we had $8.2 million and $15.7 million, respectively, of expense include
• $10.0 million — ntific's emergence from bankruptcy, for $10.0 million of Core Scientific's equity. The Settle
• $0.1 m — Hosting Agreement, we paid a deposit of $0.1 million, and will pay an additional $0.2
• $0.2 m — 0.1 million, and will pay an additional $0.2 million, representing the last two months
• $2.6 million — Hosting Agreement, we paid a deposit of $2.6 million representing the last two months of est
• $0.2 million — Hosting Agreement, we paid a deposit of $0.2 million representing a partial payment towards
• $0.7 million — we have deposits, in the aggregate, of $0.7 million to Compute North for which during the y
• $0.3 million — cember 31, 2023 and 2022, we recorded a $0.3 million and $0.4 million, respectively, provisi
• $0.4 m — nd 2022, we recorded a $0.3 million and $0.4 million, respectively, provision for loss

Filing Documents

• any-20231231.htm (10-K) — 1510KB
• exhibit42descriptionofsecu.htm (EX-4.2) — 18KB
• exhibit211subsidiaries2023.htm (EX-21.1) — 4KB
• exhibit231123123.htm (EX-23.1) — 3KB
• exhibit311123123.htm (EX-31.1) — 16KB
• exhibit312123123.htm (EX-31.2) — 16KB
• exhibit321123123.htm (EX-32.1) — 5KB
• exhibit322123123.htm (EX-32.2) — 6KB
• any-20231231_g1.jpg (GRAPHIC) — 62KB
• 0001591956-24-000004.txt (&nbsp;) — 9348KB
• any-20231231.xsd (EX-101.SCH) — 80KB
• any-20231231_cal.xml (EX-101.CAL) — 88KB
• any-20231231_def.xml (EX-101.DEF) — 415KB
• any-20231231_lab.xml (EX-101.LAB) — 823KB
• any-20231231_pre.xml (EX-101.PRE) — 640KB
• any-20231231_htm.xml (XML) — 1080KB

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 28

Cybersecurity

Item 1C. Cybersecurity 28

Properties

Item 2. Properties 29

Legal Proceedings

Item 3. Legal Proceedings 29

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 29 PART II

Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases

Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30

[Reserved]

Item 6. [Reserved] 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 36

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 37

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 37

Controls and Procedures

Item 9A. Controls and Procedures 37

Other Information

Item 9B. Other Information 37

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 37 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 38

Executive Compensation

Item 11. Executive Compensation 38

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 38

Certain Relationship and Related Transactions, and Director Independence

Item 13. Certain Relationship and Related Transactions, and Director Independence 38

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 38 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 38

Form 10-K Summary

Item 16. Form 10-K Summary 42

SIGNATURES

SIGNATURES 43 3 This Annual Report on Form 10-K contains forward-looking information that involves risks and uncertainties. This forward-looking information includes, but is not limited to, statements with respect to management's expectations regarding the future growth, results of operations, performance and business prospects of Sphere 3D. This forward-looking information relates to, among other things, future business plans and business planning process, uses of cash, and may also include other statements that are predictive in nature, or that depend upon or refer to future events or conditions. The words "could", "expects", "may", "will", "anticipates", "assumes", "intends", "plans", "believes", "estimates", "guidance", and similar expressions are intended to identify statements containing forward-looking information, although not all forward-looking statements include such words. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Although forward-looking statements in this Annual Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include without limitation those discussed under the heading "Risk Factors" in Part I, Item 1A. below, as well as those discussed elsewhere in this Annual Report. Readers are urged not to place undue reliance on these forward-looking statements, w

Business

Item 1. Business Overview Sphere 3D was incorporated under the Business Corporations Act (Ontario) on May 2, 2007 as T.B. Mining Ventures Inc. On March 24, 2015, we completed a short-form amalgamation with a wholly-owned subsidiary. In connection with the short-form amalgamation, we changed our name to "Sphere 3D Corp." Any reference to the "Company", "Sphere 3D", "we", "our", "us", or similar terms refers to Sphere 3D Corp. and its subsidiaries. In December 2014, we completed the acquisition of Overland Storage, Inc. ("Overland") to grow our business in the containerization and virtualization technologies along with data management products that enabled workload-optimized solutions. In November 2018, we sold our Overland business. In January 2022, we commenced operations of our Bitcoin mining business and are dedicated to becoming a leader in the Blockchain and Crypto Industry. We have established and plan to continue to grow an enterprise-scale mining operation through the procurement of mining equipment and partnering with experienced service providers. On December 28, 2023, we sold our service and product segment which included HVE ConneXions and Unified ConneXions. See additional information below. Digital assets and blockchain Bitcoin is a digital asset issued by and transmitted through an open source protocol maintained by a peer-to-peer network of decentralized user nodes. This network hosts a public transaction ledger blockchain where the digital assets and their corresponding transactions are recorded. The digital assets are stored in individual wallets with public addresses and a private key that controls access. The blockchain is updated without a single owner or operator of the network. New digital assets are generated and mined rewarding users after transactions are verified in the blockchain. 1 Digital assets and their corresponding markets emulate fiat currency exchange markets, such as the U.S. dollar, where they can be exchanged to various f

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View this 10-K filing on SEC EDGAR