Sphere 3D Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Sphere 3D Corp. has filed its Q1 2024 10-Q report, detailing financial performance and operational segments including Bitcoin mining.</b>

AI Summary

Sphere 3D Corp. (ANY) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. Sphere 3D Corp. filed a 10-Q for the quarterly period ended March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31st. Sphere 3D Corp. is classified under Finance Services (SIC 6199). The filing includes data related to Bitcoin Mining and Service & Product segments.

Why It Matters

For investors and stakeholders tracking Sphere 3D Corp., this filing contains several important signals. This 10-Q provides investors with an update on Sphere 3D's financial health and operational progress in Q1 2024, including its involvement in Bitcoin mining. Understanding the segment performance (Bitcoin Mining vs. Service & Product) is crucial for assessing the company's revenue streams and strategic focus.

Risk Assessment

Risk Level: medium — Sphere 3D Corp. shows moderate risk based on this filing. The company's financial performance and operational status are subject to the volatile nature of the cryptocurrency market, particularly Bitcoin, as indicated by its 'BitcoinMiningMember' segment.

Analyst Insight

Investors should analyze the revenue and cost breakdown for the Bitcoin Mining segment to assess profitability and operational efficiency in the current crypto market conditions.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Period End Date (Conformed period of report)
• 2024-05-13 — Filing Date (Filed as of date)
• Q1 2024 — Quarterly Period (Reporting period)
• 1231 — Fiscal Year End (Fiscal year end date)

Key Players & Entities

• Sphere 3D Corp. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-13 (date) — Filed as of date
• 0001591956 (company) — Central Index Key
• 6199 (industry) — Standard Industrial Classification
• 09 Crypto Assets (company) — Organization name
• 2024-01-01 (date) — Reporting period start date
• 2023-12-31 (date) — Previous fiscal year end

FAQ

Risk Factors

• Market Volatility [high — market]: The company's performance is significantly tied to the volatile cryptocurrency market, particularly Bitcoin prices.
• Bitcoin Mining Operations [medium — operational]: Operational efficiency and costs associated with Bitcoin mining are critical factors for profitability.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-13: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides an update on the company's financial performance and operations for the quarter.)

Filing Documents

• any-20240331.htm (10-Q) — 807KB
• exhibit31133124.htm (EX-31.1) — 15KB
• exhibit31233124.htm (EX-31.2) — 16KB
• exhibit32133124.htm (EX-32.1) — 5KB
• exhibit3223312024.htm (EX-32.2) — 5KB
• 0001591956-24-000012.txt (&nbsp;) — 5443KB
• any-20240331.xsd (EX-101.SCH) — 50KB
• any-20240331_cal.xml (EX-101.CAL) — 46KB
• any-20240331_def.xml (EX-101.DEF) — 232KB
• any-20240331_lab.xml (EX-101.LAB) — 516KB
• any-20240331_pre.xml (EX-101.PRE) — 382KB
• any-20240331_htm.xml (XML) — 624KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements: Page Condensed Consolidated Balance Sheets (unaudited) - March 31, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Operations (unaudited) - Three Months Ended March 31, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Loss (unaudited) - Three Months Ended March 31, 2024 and 2023 5 Condensed Consolidated Statements of Shareholders' Equity (unaudited)- Three Months Ended March 31, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows (unaudited) - Three Months Ended March 31, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements (unaudited) 8

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 30

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 36

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 36

Other Information

Item 5. Other Information 36

Exhibits

Item 6. Exhibits 37 Signature 39 2

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Sphere 3D Corp. Condensed Consolidated Balance Sheets (in thousands of U.S. dollars, except shares) (unaudited) March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 2,050 $ 586 Digital assets 127 986 Investment in equity securities 7,260 — Other current assets 1,981 11,938 Total current assets 11,418 13,510 Property and equipment, net 22,717 24,166 Intangible assets, net 4,210 4,581 Other non-current assets 3,605 3,406 Total assets $ 41,950 $ 45,663 Liabilities, Temporary Equity and Shareholders' Equity Current liabilities: Accounts payable $ 2,013 $ 2,374 Accrued liabilities 1,127 1,179 Accrued payroll and employee compensation 1,685 1,482 Warrant liabilities 76 205 Other current liabilities 106 106 Total current liabilities 5,007 5,346 Commitments and contingencies (Note 12) Temporary equity: Series H preferred shares, no par value, unlimited shares authorized, 26,556 and 43,515 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 9,467 13,794 Shareholders' equity: Common shares, no par value; unlimited shares authorized, 17,796,326 and 15,373,616 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 481,115 475,702 Accumulated other comprehensive loss ( 1,811 ) ( 1,808 ) Accumulated deficit ( 451,828 ) ( 447,371 ) Total shareholders' equity 27,476 26,523 Total liabilities, temporary equity, and shareholders' equity $ 41,950 $ 45,663 See accompanying notes to condensed consolidated financial statements. 3 Sphere 3D Corp. Condensed Consolidated Statements of Operations (in thousands of U.S. dollars, except share and per share amounts) (unaudited) Three Months Ended March 31, 2024 2023 Revenues: Bitcoin mining revenue $ 6,946 $ 2,524 Service and product revenue — 502 Total revenues 6,946 3,026 Operating costs and expenses: Cost of Bitcoin mining revenue 4,307 1,965 Cost of service

View Full Filing

View this 10-Q filing on SEC EDGAR