Ault Alliance, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Ault Alliance, Inc. (formerly BitNile Holdings, Inc.) has filed its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

Ault Alliance, Inc. (GPUS-PD) filed a Annual Report (10-K) with the SEC on April 16, 2024. Ault Alliance, Inc. (formerly BitNile Holdings, Inc.) filed its 2023 Form 10-K on April 16, 2024. The filing covers the fiscal year ending December 31, 2023. The company's business address is 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141. Ault Alliance, Inc. operates in the Electronic Components, NEC industry (SIC 3679). The company has undergone several name changes, including from DPW Holdings, Inc. and Ault Global Holdings, Inc.

Why It Matters

For investors and stakeholders tracking Ault Alliance, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Ault Alliance's financial health, operational segments, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. Understanding the company's historical name changes and its current operational focus in electronic components is important for contextualizing its market position and potential growth areas.

Risk Assessment

Risk Level: medium — Ault Alliance, Inc. shows moderate risk based on this filing. The company has a history of name changes and operates in a sector with evolving technologies, suggesting potential volatility and the need for careful due diligence.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand the company's performance and potential risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-04-16 — Filing Date (Date of submission)
• 0000896493 — Central Index Key (Company identifier)
• 3679 — SIC Code (Industry classification)

Key Players & Entities

• Ault Alliance, Inc. (company) — Filer name
• BitNile Holdings, Inc. (company) — Former company name
• DPW Holdings, Inc. (company) — Former company name
• Ault Global Holdings, Inc. (company) — Former company name
• 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141 (company) — Business address
• 20231231 (date) — Fiscal year end
• 20240416 (date) — Filing date
• 3679 (industry) — Standard Industrial Classification

FAQ

Industry Context

Ault Alliance, Inc. operates within the Electronic Components, NEC sector, which involves the manufacturing and distribution of electronic parts and accessories.

Regulatory Implications

As a publicly traded company, Ault Alliance, Inc. 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. Review the full 2023 10-K filing for detailed financial statements and management discussion.
2. Analyze the company's operational segments and revenue streams to understand its business model.
3. Investigate the company's history of name changes and its implications for its corporate identity and market perception.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-16: Filing Date — Date Ault Alliance, Inc. submitted its 2023 Form 10-K.

Year-Over-Year Comparison

This filing is the 2023 Form 10-K, providing an update on the company's financial and operational status compared to previous filings.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share AULT NYSE Ameri
• $118.7151 — ice as reported on the NYSE American of $118.7151. Shares of the registrant's common stoc
• $200 million — ng an aggregate offering price of up to $200 million from time to time, through an "at the m
• $177 million — eceived gross proceeds of approximately $177 million through the sale of 42,382 shares of co
• $46.4 million — ng an aggregate offering price of up to $46.4 million from time to time, through an "at the m
• $3.4 million — eceived gross proceeds of approximately $3.4 million through the sale of 281,197 Series D Pr
• $18.9 million — nd certain of our subsidiaries borrowed $18.9 million of principal amount of term loans (the
• $0.6 m — require us to make monthly payments of $0.6 million, which increased to $1.1 million
• $1.1 million — nts of $0.6 million, which increased to $1.1 million in November 2023. The Term Loans were i
• $1.89 million — sued with an original issue discount of $1.89 million. The lenders received warrants to purc
• $3,375 — on stock, exercisable for four years at $3,375 per share and warrants to purchase anot
• $5,625 — on stock, exercisable for four years at $5,625 per share, subject to adjustment. On J
• $8.8 million — he Amendment, we borrowed an additional $8.8 million. The net proceeds of the additional loa
• $7.5 million — eeds of the additional loan amount were $7.5 million and the aggregate size of the Term Loan
• $24.3 million — m Loans increased from $18.9 million to $24.3 million. The Term Loans were repaid in December

Filing Documents

• aa32524110k.htm (10-K) — 4304KB
• ex4_27.htm (EX-4.27) — 8KB
• ex10_28.htm (EX-10.28) — 46KB
• ex10_29.htm (EX-10.29) — 59KB
• ex21.htm (EX-21) — 23KB
• ex23_1.htm (EX-23.1) — 3KB
• ex23_2.htm (EX-23.2) — 4KB
• ex31_1.htm (EX-31.1) — 9KB
• ex31_2.htm (EX-31.2) — 9KB
• ex32_1.htm (EX-32.1) — 6KB
• ex97_1.htm (EX-97.1) — 21KB
• formula.jpg (GRAPHIC) — 36KB
• luxor_logo.jpg (GRAPHIC) — 9KB
• orgchart.jpg (GRAPHIC) — 187KB
• p35chart.jpg (GRAPHIC) — 81KB
• p36charta.jpg (GRAPHIC) — 74KB
• p36chartb.jpg (GRAPHIC) — 68KB
• 0001214659-24-006963.txt (&nbsp;) — 19782KB
• ault-20231231.xsd (EX-101.SCH) — 165KB
• ault-20231231_cal.xml (EX-101.CAL) — 140KB
• ault-20231231_def.xml (EX-101.DEF) — 571KB
• ault-20231231_lab.xml (EX-101.LAB) — 849KB
• ault-20231231_pre.xml (EX-101.PRE) — 796KB
• aa32524110k_htm.xml (XML) — 3567KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 46 Item 1B. Unresolved Staff Comments 114 Item 1C. Cybersecurity 114 Item 2.

Properties

Properties 115 Item 3.

Legal Proceedings

Legal Proceedings 116 Item 4. Mine Safety Disclosures 116 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 117 Item 6. Reserved 118 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 118 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 134 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data F-1 – F-53 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 134 Item 9A.

Controls and Procedures

Controls and Procedures 135 Item 9B. Other Information 137 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 137 PART III Item 10. Directors, Executive Officers and Corporate Governance 138 Item 11.

Executive Compensation

Executive Compensation 144 Item 12.

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

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 151 Item 13. Certain Relationships and Related Transactions, and Director Independence 153 Item 14. Principal Accountant Fees and Services 161 PART IV Item 15. Exhibits and Financial Statement Schedules 162 Item 16. Form 10-K Summary 164

Signatures

Signatures 165 CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (the "Annual Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or our future financial performance. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "expects," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predict," "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions; uncertainties and other factors may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Our expectations are as of the date this Annual Report is filed, and we do not intend to update any of the forward-looking statements after the date this Annual Report is filed to confirm these statements to actual results, unless required by law. This Annual Report also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other industry data. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified the statistical and other industry data generated by independent parties and contained in this Annual Report and, accordingly, we cannot guarantee their accuracy or completeness, though we do generally believe the data to be reliable. In addition, proj

BUSINESS

ITEM 1. BUSINESS Company Overview Ault Alliance, Inc., a Delaware corporation, was incorporated in September 2017 (sometimes referred to as "AAI," the "Company," "we" or "us"). Through our wholly and majority-owned subsidiaries and strategic investments, we own and/or operate data centers at which we mine Bitcoin and offer colocation and hosting services for the emerging artificial intelligence ("AI") ecosystems and other industries, and provide mission-critical products that support a diverse range of industries, including a metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics and textiles. Our direct and indirect wholly owned subsidiaries include (i) Sentinum, Inc. ("Sentinum"), (ii) Alliance Cloud Services, LLC ("ACS"), (iii) BNI Montana, LLC ("BNI Montana"), (iv) Ault Capital Group, Inc. ("Ault Capital"), (v) Ault Lending, LLC ("Ault Lending"), (vii) Ault Global Real Estate Equities, Inc. ("AGREE"), (viii) Ault Disruptive Technologies Company, LLC ("ADTC"), which is the sponsor, Manager and the majority owner of Ault Disruptive Technologies Corporation ("Ault Disruptive"), (ix) Eco Pack Technologies, Inc. ("Eco Pack"), which has a controlling interest in Eco Pack Technologies Limited, (x) Ault Aviation, LLC ("Ault Aviation") and (xi) Third Avenue Apartments, LLC ("Third Avenue"). We also have a direct controlling interest in (i) Circle 8 Holdco LLC ("Circle 8 Holdco"), which wholly owns Circle 8 Crane Services, LLC ("Circle 8"), (ii) TurnOnGreen, Inc., formerly known as Imperalis Holding Corp. ("TurnOnGreen"), which wholly owns TOG Technologies, Inc. ("TOG Technologies") and Digital Power Corporation ("Digital Power"), (iii) Gresham Worldwide, Inc., formerly known as Giga-tronics Incorporated ("GIGA"), which wholly owns Gresham Holdings, Inc., formerly Gresham Worldwide, Inc. ("GWW"), which in turn wholly owns Gresham Power Electronics Ltd. ("Gresham Power"), Enertec Systems

View Full Filing

View this 10-K filing on SEC EDGAR