Mawson Infrastructure Group Inc. Files 2023 Annual Report on Form 10-K

Ticker: MIGI · Form: 10-K · Filed: Apr 1, 2024 · CIK: 1218683

Mawson Infrastructure Group INC. 10-K Filing Summary
FieldDetail
CompanyMawson Infrastructure Group INC. (MIGI)
Form Type10-K
Filed DateApr 1, 2024
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$0.001
Sentimentneutral

Sentiment: neutral

Topics: Mawson Infrastructure Group, MIGI, 10-K, Annual Report, Nasdaq

TL;DR

<b>Mawson Infrastructure Group Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operational status.</b>

AI Summary

Mawson Infrastructure Group Inc. (MIGI) filed a Annual Report (10-K) with the SEC on April 1, 2024. Mawson Infrastructure Group Inc. filed its annual report for the fiscal year ended December 31, 2023. The company is registered in Delaware with IRS Employer Identification No. 88-0445167. Its principal executive offices are located at 950 Railroad Avenue, Midland, Pennsylvania, 15059. Mawson's common stock, par value $0.001 per share, is traded under the symbol MIGI on The Nasdaq Stock Market LLC. The company has confirmed it has filed all required reports for the preceding 12 months and has been subject to filing requirements for the past 90 days.

Why It Matters

For investors and stakeholders tracking Mawson Infrastructure Group Inc., this filing contains several important signals. This filing provides a comprehensive overview of Mawson'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 publicly traded company on Nasdaq, Mawson's 10-K filing is a key document for regulatory compliance and transparency, offering insights into its business model, risks, and financial position.

Risk Assessment

Risk Level: medium — Mawson Infrastructure Group Inc. shows moderate risk based on this filing. The company's financial performance and operational status are subject to the inherent risks of the cryptocurrency and digital asset industry, which can be volatile and subject to rapid changes in regulation and market sentiment.

Analyst Insight

Investors should carefully review the detailed financial statements and risk factors outlined in the 10-K to understand Mawson's current financial health and potential future challenges.

Key Numbers

Key Players & Entities

FAQ

When did Mawson Infrastructure Group Inc. file this 10-K?

Mawson Infrastructure Group Inc. filed this Annual Report (10-K) with the SEC on April 1, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Mawson Infrastructure Group Inc. (MIGI).

Where can I read the original 10-K filing from Mawson Infrastructure Group Inc.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Mawson Infrastructure Group Inc..

What are the key takeaways from Mawson Infrastructure Group Inc.'s 10-K?

Mawson Infrastructure Group Inc. filed this 10-K on April 1, 2024. Key takeaways: Mawson Infrastructure Group Inc. filed its annual report for the fiscal year ended December 31, 2023.. The company is registered in Delaware with IRS Employer Identification No. 88-0445167.. Its principal executive offices are located at 950 Railroad Avenue, Midland, Pennsylvania, 15059..

Is Mawson Infrastructure Group Inc. a risky investment based on this filing?

Based on this 10-K, Mawson Infrastructure Group Inc. presents a moderate-risk profile. The company's financial performance and operational status are subject to the inherent risks of the cryptocurrency and digital asset industry, which can be volatile and subject to rapid changes in regulation and market sentiment.

What should investors do after reading Mawson Infrastructure Group Inc.'s 10-K?

Investors should carefully review the detailed financial statements and risk factors outlined in the 10-K to understand Mawson's current financial health and potential future challenges. The overall sentiment from this filing is neutral.

Risk Factors

Key Dates

Filing Stats: 4,561 words · 18 min read · ~15 pages · Grade level 16.1 · Accepted 2024-03-29 21:00:26

Key Financial Figures

Filing Documents

Business

Business 1 Item 1A

Risk Factors

Risk Factors 8 Item 1B Unresolved Staff Comments 25 Item 1C Cybersecurity 25 Item 2

Properties

Properties 26 Item 3

Legal Proceedings

Legal Proceedings 26 Item 4 Mine Safety Disclosures 27 PART II 28 Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28 Item 6 [Reserved] 28 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 28 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 38 Item 9 Changes In and Disagreements with Accountants on Accounting and Financial Disclosure 38 Item 9A

Controls and Procedures

Controls and Procedures 38 Item 9B Other Information 40 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 40 PART III 41 Item 10 Directors, Executive Officers and Corporate Governance 41 Item 11

Executive Compensation

Executive Compensation 41 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 41 Item 13 Certain Relationships and Related Transactions, Director Independence 41 Item 14 Principal Accountant Fees and Services 41 PART IV 42 Item 15 Exhibits, Financial Statement Schedules 42 Item 16 Form 10-K Summary 46

SIGNATURES

SIGNATURES 47 i INTRODUCTION Throughout this Annual Report on Form 10-K (this "Annual Report"), unless otherwise designated, the terms "we", "us", "our", the "Company", "Mawson" and "our company" refer to Mawson Infrastructure Group Inc., a Delaware corporation headquartered in the United States of America, and its consolidated subsidiaries (unless otherwise indicated). All dollar amounts refer to U.S. dollars unless otherwise indicated. Report concerning the contents of any contract, agreement or other document are summaries of such contracts, agreements or documents and are not complete descriptions of all of their terms. If we filed any of these documents as an exhibit to this Annual Report or to any registration statement or annual report that we previously filed, you may read the document itself for a complete description of its terms, and the summary included herein is qualified by reference to the full text of the document which is incorporated by reference into this Annual Report. Unless otherwise indicated, information contained in this Annual Report concerning our industry and the markets in which we operate, including our competitive position and market opportunity, is based on information from our own management estimates and research, as well as from industry and general publications and research, surveys and studies conducted by third parties. Management estimates are derived from publicly available information, our knowledge of our industry and assumptions based on such information and knowledge, which we believe to be reasonable. Our management estimates have not been verified by any independent source, and we have not independently verified any third-party information. In addition, assumptions and estimates of our and our industry's future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in Item 1A "Risk Factors" below. ii CAU

forward-looking statements, you should consider these risks and uncertainties

forward-looking statements, you should consider these risks and uncertainties. iv PART I

BUSINESS

ITEM 1. BUSINESS. Overview General Mawson Infrastructure Group Inc. ("Mawson," the "Company," "we," "us," and "our") is a corporation incorporated in Delaware in 2012. Shares of Mawson's common stock, par value $0.001 per share ("Common Stock") have been listed on The Nasdaq Capital Market since September 29, 2021. Mawson was previously known as Wize Pharma Inc, and changed its name on March 17, 2021, after the acquisition of Mawson Infrastructure Group Pty Ltd (then known as Cosmos Capital Limited), a digital infrastructure provider. Mawson is a Digital Infrastructure' Company, which operates (through its subsidiaries) data centers for the generation of Bitcoin cryptocurrency (also known as "Bitcoin mining"), in the United States. Because Mawson takes part in Bitcoin mining, it is often referred to as a Bitcoin miner. The Company has 3 primary businesses – digital currency or Bitcoin self-mining, customer co-location and related services, and energy markets. As of the date of this Annual Report, we operate two data center facilities in Pennsylvania, USA, and have rights to develop other sites of various sizes in Ohio. We seek to power our operations and facilities with renewable or sustainable power to further support our sustainability priorities. We may also operate in related and adjacent businesses, including transacting in new and used crypto-currency mining and modular data centers ("MDCs") equipment on a periodic basis, subject to prevailing market conditions and any surplus we may be experiencing. 1 Our Products and Services Mawson's business Mawson has three main businesses through which it generates its revenue: Bitcoin self-mining; Customer co-location services; and Energy markets program. Bitcoin Self-Mining Bitcoin mining involves the use of specialized computers ("Miners") to solve algorithmic problems in order to update the distributed or decentralized ledger of Bitcoin transactions securely. In return for providing this secu

business

business The main factors affecting Mawson's self-mining profitability are (in no particular order): The market price of Bitcoin; The reward Mawson earns for its mining operations; Changes in the Network Hash Rate (as described above); Type of hardware, such as types of Miners, used and deployed; The cost of land, or leases or other operational costs; and The cost of power. 4 There is a risk that a change in any of these factors could have a detrimental effect on Mawson's business. While Mawson takes steps to mitigate these risks, they cannot be avoided altogether. In particular, the market price of Bitcoin can be volatile, sometimes being subject to major changes in value in short time periods. In addition, the reward for Bitcoin mining is scheduled to halve approximately every 4 years. This phenomenon, which is a feature of the Bitcoin protocol, is known as halving'. The Bitcoin blockchain has undergone halving three times since its inception, on November 28, 2012, July 9, 2016, and May 11, 2020. The original reward was 50 Bitcoin per block, but after the last halving the reward was reduced to its current level of 6.25 Bitcoin per block. The next halving for the Bitcoin blockchain is anticipated to occur in or around April 2024. This process will re-occur until the total amount of Bitcoin currency rewards issued reaches 21 million and the theoretical supply of new Bitcoin is exhausted, which is expected to occur in or around 2140. The value of Bitcoin has historically risen after each halving event, due to the reduced supply of Bitcoin, however, there can be no guarantee that this will occur again in the future, or the timing known if such an event were to happen. Factors Affecting Profitability of Customer Co-location Services business The main factors affecting Mawson's co-location profitability are (in no particular order): Reliance on a large, single co-location services customer; Provide services at a profitable rate; Ability to acquir

business

business The main factors affecting Mawson's Energy management profitability are (in no particular order): Acquire appropriate hedge contracts; Access to power providers programs; and Regulatory or other changes. Mawson works closely with the PJM power providers and other power consultants to help ensure they stay up to date with the latest power provider programs. Mawson closely monitors the power markets and pricing in order to identify ways to maintain or enhance its profitability from potential opportunities. Mawson is in contact with various local, state and federal agencies to monitor changes in the regulatory environment that could potentially impact the energy management business. Environment and Sustainability Digital asset mining requires a large amount of computing power, which in turn requires a large amount of electricity. At Mawson we recognize the important role digital asset mining can play in supporting the energy grid and we seek to utilize and support renewable or sustainable energy sources. We hope to support the growth of further renewable or sustainable power into the grid. We also enter into arrangements where we may be compensated in certain circumstances if we curtail or reduce or cease our energy usage. Typically, this will occur when energy prices spike, and the mining of Bitcoin may become unprofitable. In this way we can provide stability to the energy grid by reducing our demand on renewable or sustainable energy at times of peak usage, or low supply, potentially reducing prices for other users. Other products and services Mawson will from time to time opportunistically sell hardware that it has acquired, whether used or unused, which is surplus to its requirements, or in order to fund newer and better equipment. Hardware that Mawson would typically sell includes miners, transformers and/or MDCs. 5 Suppliers Mawson engages a range of suppliers for access to hardware and software required to mine Bitcoin, provide co-l

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