Hyperscale Data, Inc. 10-Q

Item 1. Financial Statements. HYPERSCALE DATA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, 2026 2025 ASSETS CURRENT ASSETS Cash and cash equivalents $ 10,548,000 $ 13,076,000 Restricted cash 25,749,000 36,150,000 Accounts receivable, net 17,034,000 14,548,000 Inventories 5,158,000 4,812,000 Loans receivable, current 2,282,000 187,000 Crypto assets 26,251,000 46,197,000 Prepaid expenses and other current assets 16,277,000 14,732,000 TOTAL CURRENT ASSETS 103,299,000 129,702,000 Crypto assets, restricted 16,666,000 - Intangible assets, net 13,417,000 13,673,000 Goodwill 10,108,000 10,326,000 Property and equipment, net 147,050,000 141,988,000 Right-of-use assets 7,677,000 6,651,000 Investments in common stock and equity securities, related party 9,000 15,000 Investments in other equity securities 14,275,000 4,108,000 Other assets 7,059,000 7,244,000 TOTAL ASSETS $ 319,560,000 $ 313,707,000 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 60,602,000 $ 39,207,000 Operating lease liability, current 1,974,000 1,776,000 Notes payable, current 88,772,000 82,055,000 Notes payable, related party, current 901,000 1,686,000 Convertible notes payable 4,899,000 6,750,000 Guarantee liability 38,900,000 38,900,000 TOTAL CURRENT LIABILITIES 196,048,000 170,374,000 LONG-TERM LIABILITIES Operating lease liability, non-current 6,081,000 5,198,000 Notes payable, non-current 2,366,000 1,066,000 Convertible notes payable, non-current 8,471,000 7,843,000 Other long-term liabilities 3,687,000 3,369,000 TOTAL LIABILITIES 216,653,000 187,850,000 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. F- 1 HYPERSCALE DATA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (continued) (Unaudited) March 31, December 31, 2026 2025 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY Preferred stock, $ 0.001 par value - 25,000,000 shares authorized; 2,301,686 and 2,299,188 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively (liquidation preference of $ 90,088,000 as of March 31, 2026) 2,000 2,000 Class A Common Stock, $ 0.001 par value – 500,000,000 shares authorized; 370,193,806 and 323,405,790 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 370,000 323,000 Class B Common Stock, $ 0.001 par value – 25,000,000 shares authorized; 24,153,493 and 24,386,850 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 24,000 24,000 Additional paid-in capital 863,607,000 853,156,000 Accumulated deficit ( 767,016,000 ) ( 734,560,000 ) Accumulated other comprehensive income 6,000 812,000 TOTAL HYPERSCALE DATA STOCKHOLDERS’ EQUITY 96,993,000 119,757,000 Non-controlling interest 5,914,000 6,100,000 TOTAL STOCKHOLDERS’ EQUITY 102,907,000 125,857,000 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 319,560,000 $ 313,707,000 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. F- 2 HYPERSCALE DATA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) March 31, 2026 2025 Revenue, crane operations $ 11,001,000 $ 13,769,000 Revenue, defense solutions 10,182,000 - Revenue, crypto assets mining 5,077,000 5,198,000 Revenue, hotel and real estate operations 3,856,000 3,665,000 Revenue, lending and trading activities 11,521,000 ( 28,000 ) Revenue, other 2,442,000 2,417,000 Total revenue 44,079,000 25,021,000 Cost of revenue, crane operations 7,180,000 8,247,000 Cost of revenue, defense solutions 7,036,000 - Cost of revenue, crypto assets mining 7,610,000 7,031,000 Cost of revenue, hotel and real estate operations 2,990,000 2,844,000 Cost of revenue, lending and trading activities 1,944,000 - Cost of revenue, other 2,250,000 1,616,000 Total cost of revenue 29,010,000 19,738,000 Gross profit 15,069,000 5,283,000 Operating expenses General and administrative 18,526,000 9,195,000 Selling and marketing 5,612,000 2,334,000 Research and development 4,800,000 129,000 Change in fair value of crypto assets 7,405,000 9,000 Total operating expenses 36,343,000 11,667,000 Loss from operations ( 21,274,000 ) ( 6,384,000 ) Other (expense) income: Interest and other income 769,000 240,000 Interest expense ( 6,546,000 ) ( 3,839,000 ) Change in fair value of crypto assets, restricted ( 4,682,000 ) - Gain (loss) on extinguishment of debt 489,000 ( 4,569,000 ) Change in fair value of embedded derivative liabilities 1,324,000 - Gain on deconsolidation of subsidiary - 10,049,000 Loss on the sale of fixed assets - ( 161,000 ) Total other (expense) income, net ( 8,646,000 ) 1,720,000 Loss before income taxes ( 29,920,000 ) ( 4,664,000 ) Income tax provision 216,000 59,000 Net loss ( 30,136,000 ) ( 4,723,000 ) Net income attributable to non-controlling interest 186,000 518,000 Net loss attributable to Hyperscale Data ( 29,950,000 ) ( 4,205,000 ) Preferred dividends ( 2,506,000 ) ( 1,966,000 ) Net loss attributable to common stockholders $ ( 32,456,000 ) $ ( 6,171,000 ) Basic and diluted net loss per common share $ ( 0.09 ) $ ( 0.98 ) Weighted average basic and diluted common shares outstanding 380,730,000 6,284,000 Comprehensive (loss) income Net loss attributable to common stockholders $ ( 32,456,000 ) $ ( 6,171,000 ) Foreign currency translation adjustment ( 806,000 ) 6,000 Other comprehensive (loss) income ( 806,000 ) 6,000 Total comprehensive loss $ ( 33,262,000 ) $ ( 6,165,000 ) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. F- 3 HYPERSCALE DATA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) Three Months Ended March 31, 2026 Preferred Stock Accumulated Series A Series B Series C Series D Series E Series F Series G Series H Class A Class B Additional Other Non- Total Par Par Par Par Par Par Par Par Common Stock Common Stock Paid-In Accumulated Comprehensive Controlling Stockholders’ Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Loss Interest Equity BALANCES, January 1, 2026 7,040 $ - 3,000 $ - 50,000 $ - 585,613 $ - 649,998 $ 1,000 998,577 $ 1,000 960 $ - 4,000 $ - 323,405,790 $ 323,000 24,386,850 $ 24,000 $ 853,156,000 $ ( 734,560,000 ) $ 812,000 $ 6,100,000 - $ 125,857,000 Issuance of Series D preferred stock for cash - - - - - - 2,498 - - - - - - - - - - - - - 53,000 - - - 53,000 Class B common stock converted into Class A common stock - - - - - - - - - - - - - - - - 233,357 - ( 233,357 ) - - - - - - Stock-based compensation - - - - - - - - - - - - - - - - - - - - 66,000 - - - 66,000 Issuance of Class A common stock for cash - - - - - - - - - - - - - - - - 46,554,659 47,000 - - 10,598,000 - - - 10,645,000 Financing cost in connection with sales of Class A common stock - - - - - - - - - - - - - - - - - - - - ( 266,000 ) - - - ( 266,000 ) Net loss attributable to Hyperscale Data - - - - - - - - - - - - - - - - - - - - - ( 29,950,000 ) - - ( 29,950,000 ) Series A preferred dividends ($0.62 per share) - - - - - - - - - - - - - - - - - - - - - ( 4,000 ) - - ( 4,000 ) Series B preferred dividends ($84.42 per share) - - - - - - - - - - - - - - - - - - - - - ( 253,000 ) - - ( 253,000 ) Series C preferred dividends ($24.00 per share) - - - - - - - - - - - - - - - - - - - - - ( 1,198,000 ) - - ( 1,198,000 ) Series D preferred dividends ($0.81 per share) - - - - - - - - - - - - - - - - - - - - - ( 504,000 ) - - ( 504,000 ) Series E preferred dividends ($0.62 per share) - - - - - - - - - - - - - - - - - - - - - ( 406,000 ) - - ( 406,000 ) Series G preferred dividends ($47.48 per share) - - - - - - - - - - - - - - - - - - - - - ( 46,000 ) - - ( 46,000 ) Series H preferred dividends ($23.75 per share) - - - - - - - - - - - - - - - - - - - - - ( 95,000 ) - - ( 95,000 ) Foreign currency translation adjustments - - - - - - - - - - - - - - - - - - - - - - ( 806,000 ) - ( 806,000 ) Net income attributable to non-controlling interest - - - - - - - - - - - - - - - - - - - - - - - ( 186,000 ) - ( 186,000 ) BALANCES, March 31, 2026 7,040 $ - 3,000.00 $ - 50,000 $ - 588,111 $ - 649,998 $ 1,000 998,577 $ 1,000 960 $ - 4,000 $ - 370,193,806 $ 370,000 24,153,493 $ 24,000 $ 863,607,000 $ ( 767,016,000 ) $ 6,000 $ 5,914,000 - $ 102,907,000 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. F- 4 HYPERSCALE DATA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) Three Months Ended March 31, 2025 Preferred Stock Accumulated Series A Series C Series D Series E Series F Series G Class A Class B Additional Other Non- Total Par Par Par Par Par Par Common Stock Common Stock Paid-In Accumulated Comprehensive Controlling Treasury Stockholders’ Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Loss Interest Stock Equity BALANCES, January 1, 2025 7,040 $ - 50,000 $ - 323,835 $ - 649,998 $ 1,000 998,577 $ 1,000 - $ - 1,259,893 $ 1,000 4,998,597 $ 5,000 $ 668,817,000 $ ( 628,950,000 ) $ ( 668,000 ) $ ( 6,546,000 ) $ ( 30,571,000 ) $ 2,090,000 Issuance of Series G preferred stock, related party - - - - - - - - - - 860 - - - - - 544,000 - - - - 544,000 Fair value of warrants issued in connection with Series G preferred stock, related party - - - - - - - - - - - - - - - - 316,000 - - - - 316,000 Issuance of Series D preferred stock for cash - - - - 129,957 - - - - - - - - - - - 1,922,000 - - - - 1,922,000 Class B common stock dividend - - - - - - - - - - - - 2,873 - ( 2,873 ) - - - - - - - Stock-based compensation 66,000 - - - - 66,000 Issuance of Class A common stock for conversion of debt - - - - - - - - - - - - 167,229 - - - 417,000 - - - - 417,000 Net loss attributable to Hyperscale Data - - - - - - - - - - - - - - - - - ( 4,205,000 ) - - - ( 4,205,000 ) Series A preferred dividends ($0.62 per share) - - - - - - - - - - - - - - - - - ( 4,000 ) - - - ( 4,000 ) Series C preferred dividends ($23.57 per share) - - - - - - - - - - - - - - - - - ( 1,179,000 ) - - - ( 1,179,000 ) Series D preferred dividends ($1.06 per share) - - - - - - - - - - - - - - - - - ( 413,000 ) - - - ( 413,000 ) Series E preferred dividends ($0.57 per share) - - - - - - - - - - - - - - - - - ( 370,000 ) - - - ( 370,000 ) Retirement of treasury stock - - - - - - - - - - - - - - - - - ( 30,571,000 ) - - 30,571,000 - Foreign currency translation adjustments - - - - - - - - - - - - - - - - - - 6,000 - - 6,000 Net loss attributable to non-controlling interest - - - - - - - - - - - - - - - - - - - ( 518,000 ) - ( 518,000 ) Deconsolidation of subsidiary - - - - - - - - - - - - - - - - - - 574,000 7,544,000 - 8,118,000 BALANCES, March 31, 2025 7,040 $ - 50,000 $ - 453,792 $ - 649,998 $ 1,000 998,577 $ 1,000 860 $ - 1,429,995 $ 1,000 4,995,724 $ 5,000 $ 672,082,000 $ ( 665,692,000 ) $ ( 88,000 ) $ 480,000 $ - $ 6,790,000 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. F- 5 HYPERSCALE DATA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net loss $ ( 30,136,000 ) $ ( 4,723,000 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 6,375,000 5,201,000 Amortization of debt discount 1,595,000 1,105,000 Amortization of right-of-use assets 408,000 374,000 Stock-based compensation 67,000 67,000 Loss on the sale of fixed assets - 161,000 Revenue, crypto assets mining ( 5,077,000 ) ( 5,198,000 ) Proceeds from the sale of crypto assets - 5,227,000 Change in fair value of crypto assets and crypto assets, restricted 12,087,000 9,000 Realized gains on non-marketable equity securities ( 1,422,000 ) - Change in fair value of embedded derivatives ( 1,324,000 ) - (Gain) loss on extinguishment of debt ( 489,000 ) 4,569,000 Gain on deconsolidation of subsidiary - ( 10,049,000 ) Other operating activities 355,000 ( 521,000 ) Changes in operating assets and liabilities: Marketable equity securities 1,383,000 ( 5,000 ) Accounts receivable ( 2,486,000 ) ( 3,021,000 ) Inventories ( 346,000 ) 359,000 Prepaid expenses and other current assets ( 2,797,000 ) 665,000 Other assets 504,000 ( 31,000 ) Accounts payable and accrued expenses 21,621,000 2,204,000 Lease liabilities ( 511,000 ) ( 352,000 ) Net cash used in operating activities ( 193,000 ) ( 3,959,000 ) Cash flows from investing activities: Purchase of property and equipment ( 10,566,000 ) ( 2,880,000 ) Purchase of crypto assets ( 3,760,000 ) - Investments in loans receivable ( 2,871,000 ) - Collections on loans receivable 1,100,000 - Investments in non-marketable equity securities ( 7,749,000 ) - Proceeds from the sale of property and equipment 1,008,000 158,000 Investment in notes receivable, related party - ( 380,000 ) Collections on notes receivable, related party - 1,945,000 Other investing activities 2,000 ( 14,000 ) Net cash used in investing activities ( 22,836,000 ) ( 1,171,000 ) F- 6 HYPERSCALE DATA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Unaudited) For the Three Months Ended March 31, 2026 2025 Cash flows from financing activities: Gross proceeds from sales of Class A common stock $ 10,645,000 $ - Offering costs related to issuance of Class A common stock ( 266,000 ) - Proceeds from sales of Series D preferred stock 53,000 1,922,000 Proceeds from sales of Series G preferred stock and warrants, related party - 860,000 Proceeds from notes payable 18,281,000 17,906,000 Payments on notes payable ( 14,270,000 ) ( 13,794,000 ) Repayments of related party notes payable ( 1,685,000 ) - Proceeds from related party notes payable 900,000 36,000 Payments of preferred dividends ( 2,506,000 ) ( 1,966,000 ) Proceeds from issuance of convertible notes 800,000 - Payments on convertible notes ( 1,350,000 ) ( 250,000 ) Net cash provided by financing activities 10,602,000 4,714,000 Effect of exchange rate changes on cash and cash equivalents ( 502,000 ) 6,000 Net decrease in cash and cash equivalents and restricted cash ( 12,929,000 ) ( 410,000 ) Cash, cash equivalents and restricted cash at beginning of period 49,226,000 25,022,000 Cash, cash equivalents and restricted cash at end of period $ 36,297,000 $ 24,612,000 Supplemental disclosures of cash flow information: Cash paid for interest $ 3,446,000 $ 2,699,000 Non-cash investing and financing activities: Settlement of accounts payable with crypto assets $ 29,000 $ 8,000 Conversion of convertible notes payable into shares of Class A common stock $ - $ 417,000 Conversion of debt and equity securities to marketable securities $ 2,774,000 $ - Exchange of related party advances for investment in other equity securities, related party $ 1,800,000 $ - Recognition of new operating lease right-of-use assets and lease liabilities $ 1,593,000 $ 935,000 Notes payable exchanged for convertible notes payable $ - $ 9,103,000 Property and equipment acquired through note payable financing $ 1,500,000 $ - F- 7 1. DESCRIPTION OF BUSINESS Hyperscale Data, Inc. (“Hyperscale Data” or the “Company”) is a Delaware corporation whose principal operations consist of owning and operating data center infrastructure supporting digital asset mining operations. While the Company has completed initial deployments supporting high-density computing workloads for third-party customers, its current operations are primarily focused on Bitcoin mining and the accumulation of digital assets, primarily through its wholly owned subsidiary, Sentinum, Inc. (“Sentinum”), which operates facilities providing power and related infrastructure. Through another of its wholly owned subsidiaries, Ault Capital Group, Inc. (“Ault Capital”), the Company holds a portfolio of diversified businesses and strategic investments spanning commercial lending and trading, hotel operations, crane rental, software platforms and commercial electronics. The Company anticipates completing the planned divestiture of Ault Capital in 2027, at which time it expects to operate as a more focused data center infrastructure-oriented business. The Company has the following reportable segments: · Sentinum – crypto asset mining operations, colocation and hosting services for emerging artificial intelligence (“AI”) ecosystems and other industries, and the Company’s digital asset treasury activities; · Energy and Infrastructure (“Energy”) – crane operations; · Gresham Worldwide, Inc. (“Gresham”) – defense solutions; · Ault Global Real Estate Equities, Inc. (“AGREE”) – hotel operations and other commercial real estate holdings: · TurnOnGreen, Inc. (“TurnOnGreen”) – commercial electronics; · Technology and Finance (“Fintech”) – commercial lending, activist investing, and stock trading; and · askROI, Inc. and RiskOn International, Inc. (“ROI”) – AI software platform. 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Regulation S-X and do not include all the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The Company has made estimates and judgments affecting the amounts reported in the Company’s condensed consolidated financial statements and the accompanying notes. The actual results experienced by the Company may differ materially from the Company’s estimates. The condensed consolidated financial information is unaudited but reflects all normal adjustments that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2026. The condensed consolidated balance sheet as of December 31, 2025 was derived from the Company’s audited 2025 financial statements contained in the above referenced 2025 Annual Report. Results of operations for the three months ended March 31, 2026 are not necessarily indicative of results to be expected for future interim periods or the full year ending December 31, 2026. Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies disclosed in the 2025 Annual Report. Reclassifications Certain prior period amounts have been reclassified for comparative purposes to conform to the current-period financial statement presentation. F- 8 Recent Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When management determines that a new accounting pronouncement may affect the Company’s financial reporting, the Company undertakes an analysis to determine whether any required changes should be made to its condensed consolidated financial statements. Recently Issued Standards In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires additional disclosures of certain expenses in the notes of the financial statements, to provide enhanced transparency into the expense captions presented on the consolidated statements of operations. The new standard is effective for the Company for its annual periods beginning January 1, 2027 and for interim periods beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides a practical expedient to assume current economic conditions will not change for the remaining life of an asset when preparing forecasts as part of estimating credit losses. The new standard is effective for the Company for its annual periods beginning January 1, 2026 and interim period within those annual periods, with early adoption permitted and should be applied on a prospective basis. The Company adopted ASC 2025-05 during the three months ended March 31, 2026, which did not have a material impact on its consolidated financial position, results of operations, or cash flows. In January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2025-01”), to clarify the effective date of ASU 2024-03. The new standard is effective for the Company for its annual periods beginning January 1, 2027 and for interim periods beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-01; however, because the standard primarily affects disclosure requirements, the Company does not expect adoption to have a material impact on its consolidated financial position, results of operations, or cash flows. 3. BUSINESS COMBINATION – GRESHAM A s disclosed in the 2025 Annual Report , the Company completed the acquisition and reconsolidation of Gresham on November 28, 2025. The preliminary allocation of purchase consideration to the acquired assets and assumed liabilities remains subject to finalization of certain valuation analyses, including inventory, property and equipment, intangible assets, income taxes, and other working capital items. During the three months ended March 31, 2026, the Company recorded no material measurement period adjustments related to the acquisition. The Company does not currently expect material changes to the preliminary allocation; however, final amounts may differ from the preliminary estimates. 4. REVENUE DISAGGREGATION The following tables summarize disaggregated customer contract revenues and the source of the revenue for the three months ended March 31, 2026 and 2025. Revenues from lending and trading activities included in consolidated revenues were primarily interest, dividend and other investment income, which are not considered to be revenues from contracts with customers under GAAP. Revenue is presented by reportable segment. The “Holding Co.” column includes revenue generated at the parent company level that is not allocated to a specific reportable segment. Although Holding Co. is not a separate reportable segment, it is presented below to reconcile segment revenues to total consolidated revenue. F- 9 The Company’s disaggregated revenues consisted of the following for the three months ended March 31, 2026: Schedule of disaggregated revenues Gresham TurnOnGreen Fintech Sentinum AGREE Energy ROI Holding Co. Total Primary Geographical Markets North America $ 1,752,000 $ 1,524,000 $ - $ 5,330,000 $ 3,603,000 $ 11,001,000 $ 1,000 $ 705,000 $ 23,916,000 Europe 1,630,000 - - - - - - - 1,630,000 Middle East and other 6,800,000 212,000 - - - - - - 7,012,000 Revenue from contracts with customers 10,182,000 1,736,000 - 5,330,000 3,603,000 11,001,000 1,000 705,000 32,558,000 Revenue, lending and trading activities (North America) - - 11,521,000 - - - - - 11,521,000 Total revenue $ 10,182,000 $ 1,736,000 $ 11,521,000 $ 5,330,000 $ 3,603,000 $ 11,001,000 $ 1,000 $ 705,000 $ 44,079,000 Major Goods or Services Crane rental $ - $ - $ - $ - $ - $ 11,001,000 $ - $ - $ 11,001,000 Revenue from mined crypto assets at Sentinum owned and operated facilities - - - 5,077,000 - - - - 5,077,000 Hotel and real estate operations - - - 253,000 3,603,000 - - - 3,856,000 Power supply units and systems 3,342,000 1,736,000 - - - - - - 5,078,000 Defense systems 6,065,000 - - - - - - - 6,065,000 Other 775,000 - - - - - 1,000 705,000 1,481,000 Revenue from contracts with customers 10,182,000 1,736,000 - 5,330,000 3,603,000 11,001,000 1,000 705,000 32,558,000 Revenue, lending and trading activities - - 11,521,000 - - - - - 11,521,000 Total revenue $ 10,182,000 $ 1,736,000 $ 11,521,000 $ 5,330,000 $ 3,603,000 $ 11,001,000 $ 1,000 $ 705,000 $ 44,079,000 Timing of Revenue Recognition Goods and services transferred at a point in time $ 10,182,000 $ 1,714,000 $ - $ 5,330,000 $ 3,603,000 $ - $ 1,000 $ 705,000 $ 21,535,000 Services transferred over time - 22,000 - - - 11,001,000 - - 11,023,000 Revenue from contracts with customers $ 10,182,000 $ 1,736,000 $ - $ 5,330,000 $ 3,603,000 $ 11,001,000 $ 1,000 $ 705,000 $ 32,558,000 The Company’s disaggregated revenues consisted of the following for the three months ended March 31, 2025: TurnOnGreen Fintech Sentinum AGREE Energy ROI Holding Co. Total Primary Geographical Markets North America $ 1,528,000 $ - $ 5,714,000 $ 3,149,000 $ 13,769,000 $ ( 1,000 ) $ 797,000 $ 24,956,000 Europe 6,000 - - - 29,000 - - 35,000 Middle East and other 58,000 - - - - - - 58,000 Revenue from contracts with customers 1,592,000 - 5,714,000 3,149,000 13,798,000 ( 1,000 ) 797,000 25,049,000 Revenue, lending and trading activities (North America) - ( 28,000 ) - - - - - ( 28,000 ) Total revenue $ 1,592,000 $ ( 28,000 ) $ 5,714,000 $ 3,149,000 $ 13,798,000 $ ( 1,000 ) $ 797,000 $ 25,021,000 Major Goods or Services Power supply units and systems $ 1,592,000 $ - $ - $ - $ - $ - $ - $ 1,592,000 Revenue from mined crypto assets at Sentinum owned and operated facilities - - 5,198,000 - - - - 5,198,000 Hotel and real estate operations - - 516,000 3,149,000 - - - 3,665,000 Crane rental - - - - 13,769,000 - - 13,769,000 Other - - - - 29,000 ( 1,000 ) 797,000 825,000 Revenue from contracts with customers 1,592,000 - 5,714,000 3,149,000 13,798,000 ( 1,000 ) 797,000 25,049,000 Revenue, lending and trading activities - ( 28,000 ) - - - - - ( 28,000 ) Total revenue $ 1,592,000 $ ( 28,000 ) $ 5,714,000 $ 3,149,000 $ 13,798,000 $ ( 1,000 ) $ 797,000 $ 25,021,000 Timing of Revenue Recognition Goods and services transferred at a point in time $ 1,592,000 $ - $ 5,714,000 $ 3,149,000 $ 29,000 $ ( 1,000 ) $ 797,000 $ 11,280,000 Services transferred over time - - - - 13,769,000 - - 13,769,000 Revenue from contracts with customers $ 1,592,000 $ - $ 5,714,000 $ 3,149,000 $ 13,798,000 $ ( 1,000 ) $ 797,000 $ 25,049,000 F- 10 5. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy at March 31, 2026 and December 31, 2025: Fair value, assets measured on recurring basis Fair Value Measurement at March 31, 2026 Total Level 1 Level 2 Level 3 Investments in other equity securities - embedded conversion feature $ 2,913,000 $ - $ - $ 2,913,000 Investments in other equity securities - warrants $ 285,000 $ - $ - $ 285,000 Embedded conversion feature liabilities $ 252,000 $ - $ - $ 252,000 Fair Value Measurement at December 31, 2025 Total Level 1 Level 2 Level 3 Embedded conversion feature liabilities $ 1,576,000 $ - $ - $ 1,576,000 The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information, which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the Company’s securities and liquidity risks. There were no transfers into or out of Level 3 during the three months ended March 31, 2026 or during the year ended December 31, 2025. The changes in Level 3 fair value hierarchy during the three months ended March 31, 2026 and 2025 were as follows: Schedule of changes in fair value hierarchy Level 3 Balance at Beginning of Period Fair Value Adjustments Grants Level 3 Balance at End of Period Three months ended March 31, 2026 Investments in other equity securities - embedded conversion feature $ - $ 1,300,000 $ 1,613,000 $ 2,913,000 Investments in other equity securities - warrants $ - $ ( 800,000 ) $ 1,085,000 $ 285,000 Embedded conversion feature liabilities $ 1,576,000 $ ( 1,324,000 ) $ - $ 252,000 Level 3 Balance at Beginning of Period Fair Value Adjustments Grants Level 3 Balance at End of Period Three months ended March 31, 2025 Embedded conversion feature liabilities $ - $ - $ 2,269,000 $ 2,269,000 6. CRYPTO ASSETS The Company measures its crypto assets at fair value using quoted market prices in active markets for identical assets, which are classified within Level 1 of the fair value hierarchy. The following table presents the Company’s significant digital asset holdings as of March 31, 2026 and December 31, 2025: Schedule of digital asset holdings March 31, December 31, 2026 2025 Crypto assets $ 26,251,000 $ 46,197,000 Crypto assets, restricted (1) 16,666,000 - Total crypto assets holdings $ 42,917,000 $ 46,197,000 (1) The Company’s crypto assets, restricted includes Bitcoin pledged as collateral for the convertible promissory notes issued to JGB entities. See Note 12. F- 11 The following table presents the activities of the crypto assets for the three months ended March 31, 2026 and 2025: Schedule of activities of the crypto assets For the Three Months Ended March 31, 2026 2025 Balance at January 1 $ 46,197,000 $ 182,000 Additions of mined crypto assets 5,077,000 5,198,000 Purchases of crypto assets 3,760,000 - Sale of crypto assets - ( 5,227,000 ) Transferred to crypto assets, restricted ( 21,360,000 ) - Unrealized loss on crypto assets ( 7,405,000 ) ( 8,000 ) Other ( 18,000 ) ( 43,000 ) Balance at March 31 $ 26,251,000 $ 102,000 The following table presents the activities of the crypto assets, restricted for the three months ended March 31, 2026: Schedule of activities of the crypto assets, restricted 2026 Balance at January 1 $ - Transferred to crypto assets, restricted 21,360,000 Unrealized loss on crypto assets, restricted ( 4,682,000 ) Other ( 11,000 ) Balance at March 31 $ 16,666,000 7. PROPERTY AND EQUIPMENT, NET At March 31, 2026 and December 31, 2025, property and equipment consisted of: Schedule of property and equipment March 31, 2026 December 31, 2025 Building, land and improvements $ 89,954,000 $ 85,355,000 Crypto assets mining equipment 28,637,000 27,245,000 Crane rental equipment 35,657,000 33,368,000 Computer, software and related equipment 14,489,000 13,807,000 Aircraft 15,983,000 15,983,000 Other property and equipment 10,570,000 8,563,000 195,290,000 184,321,000 Accumulated depreciation and amortization ( 48,240,000 ) ( 42,333,000 ) Property and equipment, net $ 147,050,000 $ 141,988,000 Summary of depreciation expense: Schedule of depreciation For the Three Months Ended March 31, 2026 2025 Depreciation expense $ 6,001,000 $ 5,075,000 8. INTANGIBLE ASSETS, NET At March 31, 2026 and December 31, 2025, intangible assets consisted of: Schedule of intangible asset Useful Life March 31, 2026 December 31, 2025 Definite lived intangible assets: Developed technology 5 - 10 years $ 5,756,000 $ 5,684,000 Customer list 8 - 12 years 6,380,000 6,358,000 Trade names 10 - 15 years 2,547,000 2,529,000 14,683,000 14,571,000 Accumulated amortization ( 1,266,000 ) ( 898,000 ) Total definite-lived intangible assets $ 13,417,000 $ 13,673,000 Certain of the Company’s trade names and trademarks were determined to have an indefinite life. The remaining definite-lived intangible assets are primarily being amortized on a straight-line basis over their estimated useful lives. Summary of amortization expense: Schedule of amortization expense For the Three Months Ended March 31, 2026 2025 Amortization expense $ 374,000 $ 126,000 F- 12 As of March 31, 2026, intangible assets subject to amortization have an average remaining useful life of 6.6 years. The following table presents estimated amortization expense for each of the succeeding five calendar years and thereafter. Schedule of estimated amortization expense 2026 (remainder) $ 1,099,000 2027 1,465,000 2028 1,465,000 2029 1,465,000 2030 1,448,000 Thereafter 6,475,000 $ 13,417,000 9. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Other current liabilities at March 31, 2026 and December 31, 2025 consisted of: Schedule of other current liabilities March 31, December 31, 2026 2025 Accounts payable $ 32,549,000 $ 19,076,000 Accrued participation profits payable to investors 6,065,000 - Accrued payroll and payroll taxes 3,318,000 4,520,000 Interest payable 2,477,000 2,752,000 Accrued legal 1,066,000 1,139,000 Other accrued expenses 15,127,000 11,720,000 Total $ 60,602,000 $ 39,207,000 10. NOTES PAYABLE Notes payable at March 31, 2026 and December 31, 2025, were comprised of the following: Schedule of notes payable Collateral Guarantors Interest rate Effective rate (1) Due date March 31, 2026 December 31, 2025 AGREE secured construction loans, in default AGREE hotels - 10 % 12 % January 1, 2027 $ 68,750,000 $ 68,750,000 Circle 8 revolving credit facility Circle 8 cranes with a book value of $27.1 million - 9 % 9 % June 16, 2026 6,801,000 7,205,000 Circle 8 equipment financing notes Circle 8 equipment with a book value of $3.0 million - 6 % 6 % Various dates through March 5, 2031 3,345,000 2,171,000 Term note - Ault & Company, Inc. (“Ault & Company”) and Milton C. Ault, III 12 % 77 % April 27, 2026 6,634,000 - Other - - 6 % Various 5,686,000 4,995,000 Total notes payable $ 91,216,000 $ 83,121,000 Less: Unamortized debt discounts ( 78,000 ) - Total notes payable, net $ 91,138,000 $ 83,121,000 Less: current portion ( 88,772,000 ) ( 82,055,000 ) Notes payable – long-term portion $ 2,366,000 $ 1,066,000 (1) Includes forbearance and extension fees and original issue discount (“OID”) costs that are amortized to interest expense over the life of the notes. F- 13 Second Amendment to AGREE Construction Loans In January 2026, the Company’s subsidiary AGREE amended the terms of its construction loans related to the AGREE properties. The amendment extended the maturity dates of the loans to January 1, 2027, subject to a potential one-year extension to January 1, 2028 upon satisfaction of certain conditions. The agreement also modifies the interest rate to Term SOFR plus 5.75% , with required monthly interest payments based on Term SOFR plus 4.75%, with the difference accruing and payable at maturity or earlier repayment. On April 1, 2026, the borrowers were required to make a principal payment of $ 3.0 million followed by monthly principal payments of $1.0 million through maturity. As of the date of this filing, AGREE and its subsidiaries have not made the required principal payments. While such non-payment constitutes an event of default under the loan agreements, the lenders have not provided a notice of default. The modification also requires the borrowers to fund interest reserves totaling approximately $ 2.0 million and provides temporary waivers of certain financial covenants through the scheduled maturity date. The interest reserves have not been funded as of the date of this filing. In connection with the modification, the borrowers paid an extension fee of approximately $ 0.3 million. Circle 8 Financing In March 2026, Circle 8 entered into a secured promissory note in the principal amount of $ 1.5 million for the purchase of a crane. The secured promissory note accrues interest at 5.9 % per annum and will mature in March 2031. Term Notes In January and February 2026, the Company issued two short-term term notes to an institutional investor for aggregate gross proceeds of $ 10.0 million. The notes were originally scheduled to mature in March and April 2026, respectively, and require periodic principal repayments prior to maturity. The Company amended the note that was scheduled to mature in March 2026 to extend its maturity date to April 7, 2026. In connection with the extension, the Company agreed to pay an extension fee of approximately $ 0.1 million, which was added to the outstanding principal balance. The notes have been repaid in full. Notes Payable Maturities Principal maturities of the Company’s notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of March 31, 2026 were: Schedule of maturities Year 2026 (remainder) $ 88,850,000 2027 757,000 2028 640,000 2029 526,000 2030 320,000 Thereafter 123,000 $ 91,216,000 Interest Expense Schedule of interest expense For the Three Months Ended March 31, 2026 2025 Contractual interest expense $ 4,877,000 $ 3,775,000 Forbearance fees 74,000 12,000 Amortization of debt discount 1,595,000 52,000 Total interest expense $ 6,546,000 $ 3,839,000 11. NOTES PAYABLE, RELATED PARTY Notes payable, related party at March 31, 2026 and December 31, 2025, were comprised of the following: Schedule of notes payable, related party Interest rate Effective rate Due date March 31, 2026 December 31, 2025 Ault & Company demand promissory note 10 % 9.5 % Upon demand $ 850,000 $ 1,635,000 Notes from officers - TurnOnGreen, in default 14 % 14.0 % Past due 51,000 51,000 Total notes payable $ 901,000 $ 1,686,000 F- 14 Summary of interest expense, related party, recorded within interest expense on the condensed consolidated statement of operations: Schedule of interest expense, related party For the Three Months Ended March 31, 2026 2025 Interest expense, related party $ 28,000 $ 2,000 12. CONVERTIBLE NOTES Convertible notes payable at March 31, 2026 and December 31, 2025, were comprised of the following: Schedule of convertible notes payable Conversion price per share Interest rate Effective rate (1) Due date March 31, 2026 December 31, 2025 Convertible promissory notes issued to JGB entities 85% of 3-day VWAP 13 % 32 % December 30, 2027 $ 12,768,000 $ 12,768,000 SJC Lending, LLC (“SJC”) convertible promissory note 75% of 5-day VWAP 15 % 15 % June 30, 2026 2,786,000 2,786,000 ROI senior secured convertible note, in default $0.11 (ROI stock) OID Only 15 % April 27, 2024 631,000 1,981,000 TurnOnGreen convertible promissory note 80% of 10-day VWAP (TurnOnGreen stock) 12 % 21 % Various dates through March 27, 2027 1,320,000 440,000 Fair value of embedded conversion options 252,000 1,576,000 Total convertible notes payable 17,757,000 19,551,000 Less: unamortized debt discounts ( 4,387,000 ) ( 4,958,000 ) Total convertible notes payable, net of financing cost, long-term $ 13,370,000 $ 14,593,000 Less: current portion ( 4,899,000 ) ( 6,750,000 ) Convertible notes payable, net of financing cost – long-term portion $ 8,471,000 $ 7,843,000 (1) Includes forbearance and extension fees and OID costs that are amortized to interest expense over the life of the notes. SJC Convertible Promissory Note Amendment In January 2026, the Company entered into an amendment with SJC pursuant to which the maturity date of the convertible promissory note was extended to June 30, 2026. Embedded Derivatives The Company identified embedded derivative features within certain convertible promissory notes that required bifurcation and separate accounting as derivative liabilities under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. These features primarily relate to conversion options with variable pricing mechanisms. The fair value of the embedded derivative liabilities was estimated using a Monte Carlo simulation model. The model incorporates key assumptions including the Company’s stock price, risk-free interest rate, expected volatility, credit-risk adjusted discount rate, and the specific terms of each conversion feature (including floor price, cap, and pricing based on the Volume-Weighted Average Price, or VWAP). Due to the significant use of unobservable inputs, these derivative liabilities are classified within Level 3 of the fair value hierarchy. See Note 5 for additional information, including the initial recognition and rollforward of embedded derivative liabilities. The following table summarizes the key inputs used in the valuation of the embedded derivatives at inception and as of March 31, 2026: Schedule of valuation of the embedded derivatives Assumption Weighted Average at Inception Weighted Average at March 31, 2026 Valuation technique Monte Carlo Simulation Monte Carlo Simulation Risk-free interest rate 3.6 % 3.7 % Expected volatility 108 % 130 % Credit-risk adjusted rate 27 % 41 % Time to maturity (years) 1.7 1.0 Stock price at valuation date $ 0.81 $ 0.15 Dividend yield 0 % 0 % F- 15 The Monte Carlo simulation utilized 100,000 iterations and incorporated conversion mechanics, including the floor price and the VWAP-based conversion price as defined in each agreement. The incremental value attributable to the conversion feature was isolated to determine its impact on the overall fair value of the embedded option. Gain (Loss) on Extinguishment of Convertible Notes During the three months ended March 31, 2026, the Company did not recognize any gains or losses on extinguishment of convertible notes. During the three months ended March 31, 2025, the Company recognized a net loss on extinguishment of convertible notes of $ 4.6 million, consisting primarily of losses recognized on certain exchange or refinancing transactions where newly issued instruments were determined to be substantially different from the original debt instruments under applicable accounting guidance. Contractual Maturities Principal maturities of the Company’s convertible notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of March 31, 2026, were: Schedule of contractual maturities Year Principal 2026 (remainder) $ 4,737,000 2027 12,768,000 $ 17,505,000 13. COMMITMENTS AND CONTINGENCIES Contingencies Litigation Matters The Company is involved in litigation arising from matters in the ordinary course of business. The Company is regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving labor and employment, commercial disputes, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil penalties or other adverse consequences. Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. The Company records a liability when it believes that it is probable that a loss has been incurred and the amount can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the reasonably possible loss. The Company evaluates developments in its legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and makes adjustments as appropriate. Significant judgment is required to determine both likelihood of there being a loss and the estimated amount of a loss related to such matters. Based on the Company’s current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on the Company’s business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. 14. STOCKHOLDERS’ EQUITY Class A Common Stock Class A common stock confers upon the holders the rights to receive notice to participate and vote at any meeting of stockholders of the Company, to receive dividends, if and when declared, and to participate in a distribution of surplus of assets upon liquidation of the Company. F- 16 On December 19, 2025, the Company entered into an at-the-market issuance sales agreement providing for the sale of up to $50.0 million of additional shares of Class A common stock under its effective shelf registration statement (the “ATM Offering”). During the period between January 1, 2026 through March 31 , 2026, the Company sold an aggregate of 46.6 million shares of Class A common stock pursuant to the ATM Offering for gross proceeds of $ 10.6 million. Class B Common Stock The Class B common stock is identical to the Class A common stock, with the exception that each share thereof carries 10 times the voting power of a share of Class A common stock. The Class B common stock is convertible at any time into Class A common stock on a one-for-one basis at the option of the holder of the Class B common stock. Series D Preferred ATM Offering Activity On February 13, 2026, the Company entered into an at-the-market issuance sales agreement to sell shares of the Company’s 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $ 0.001 per share (the “Series D Preferred”), having an aggregate offering price of up to $ 35.4 million from time to time, through an “at the market offering” (the “Series Preferred D ATM Offering”). During the period between January 1, 2026 through March 31, 2026, the Company sold an aggregate of 2,498 shares of Series D Preferred Stock pursuant to its Series Preferred D ATM offering for net proceeds of $ 53,000 . Preferred Stock Preferred stock as of March 31, 2026 consisted of the following: Stockholders’ equity Par Value Per Share Stated Value Per Share Shares Authorized Liquidation Preference Shares Issued and Outstanding at March 31, 2026 Series A Convertible Preferred Stock $ 0.001 $ 25 1,000,000 $ 176,000 7,040 Series B Convertible Preferred Stock $ 0.001 $ 1,000 60,000 3,000,000 3,000 Series C Convertible Preferred Stock $ 0.001 $ 1,000 75,000 50,000,000 50,000 Series D Cumulative Redeemable Perpetual Preferred Stock $ 0.001 $ 25 2,000,000 14,703,000 588,111 Series E Cumulative Redeemable Perpetual Preferred Stock $ 0.001 $ 25 2,500,000 16,250,000 649,998 Series F Exchangeable Preferred Stock $ 0.001 $ 1,000 1,000,000 999,000 998,577 Series G Convertible Preferred Stock $ 0.001 $ 1,000 25,000 960,000 960 Series H Convertible Preferred Stock $ 0.001 $ 1,000 100,000 4,000,000 4,000 Unallocated 18,240,000 - - Total 25,000,000 $ 90,088,000 2,301,686 Preferred stock as of December 31, 2025 consisted of the following: Par Value Per Share Stated Value Per Share Shares Authorized Liquidation Preference Shares Issued and Outstanding at December 31, 2025 Series A Convertible Preferred Stock $ 0.001 $ 25 1,000,000 $ 176,000 7,040 Series B Convertible Preferred Stock $ 0.001 $ 1,000 60,000 3,000,000 3,000 Series C Convertible Preferred Stock $ 0.001 $ 1,000 75,000 50,000,000 50,000 Series D Cumulative Redeemable Perpetual Preferred Stock $ 0.001 $ 25 2,000,000 14,640,000 585,613 Series E Cumulative Redeemable Perpetual Preferred Stock $ 0.001 $ 25 2,500,000 16,250,000 649,998 Series F Exchangeable Preferred Stock $ 0.001 $ 1,000 1,000,000 999,000 998,577 Series G Convertible Preferred Stock $ 0.001 $ 1,000 25,000 960,000 960 Series H Convertible Preferred Stock $ 0.001 $ 1,000 100,000 4,000,000 4,000 Unallocated 18,240,000 - - Total 25,000,000 $ 90,025,000 2,299,188 F- 17 The Company is authorized to issue 25.0 million shares of preferred stock, $ 0.001 par value. As of March 31, 2026, the rights, preferences, privileges and restrictions on the remaining authorized 18.2 million shares of preferred stock had not been determined. The Board is authorized to designate a new series of preferred shares and determine the number of shares, as well as the rights, preferences, privileges and restrictions granted to or imposed upon any series of preferred shares. 15. INCOME TAXES The Company calculates its interim income tax provision in accordance with ASC Topic 270, Interim Reporting, and Topic 740, Income Taxes. The difference between the effective tax rate and the federal statutory rate of 21 % is primarily due to items recognized for financial reporting purposes that are permanently disallowed for U.S. federal income tax purposes, as well as changes in the valuation allowance. 16. NET LOSS PER SHARE Net loss per share is computed by dividing the net loss to common stockholders by the weighted average number of shares of Class A and Class B common stock outstanding. The calculation of the basic and diluted earnings per share is the same for all periods presented as the effect of the potential common stock equivalents is anti-dilutive due to the Company’s net loss position for all periods presented. Anti-dilutive securities, which are convertible into or exercisable for the Company’s Class A common stock, consisted of the following at March 31, 2026 and 2025: Schedule of net loss per share March 31, 2026 March 31, 2025 Convertible preferred stock 373,900,000 30,071,000 Convertible notes 51,179,000 7,403,000 Stock options 6,200,000 - Warrants 639,000 622,000 Total 431,918,000 38,096,000 F- 18 17. SEGMENT AND CUSTOMERS INFORMATION The Company had the following reportable segments as of March 31, 2026 and 2025; see Note 1 for a brief description of the Company’s business. The following data presents the revenues, expenditures and other operating data of the Company and its operating segments for the three months ended March 31, 2026: Schedule of operating segments Gresham TurnOnGreen Fintech Sentinum AGREE Energy ROI Holding Co. Total Revenue, crane operations $ - $ - $ - $ - $ - $ 11,001,000 $ - $ - $ 11,001,000 Revenue, defense solutions 10,182,000 - - - - - - - 10,182,000 Revenue, crypto assets mining - - - 5,077,000 - - - - 5,077,000 Revenue, hotel and real estate operations - - - 253,000 3,603,000 - - - 3,856,000 Revenue, lending and trading activities - - 11,521,000 - - - - - 11,521,000 Revenue, other 1,736,000 - - - - 1,000 705,000 2,442,000 Total revenue 10,182,000 1,736,000 11,521,000 5,330,000 3,603,000 11,001,000 1,000 705,000 44,079,000 Cost of revenue 7,036,000 923,000 1,944,000 7,610,000 2,990,000 7,180,000 - 1,327,000 29,010,000 Gross profit (loss) 3,146,000 813,000 9,577,000 ( 2,280,000 ) 613,000 3,821,000 1,000 ( 622,000 ) 15,069,000 Operating expenses General and administrative 2,563,000 993,000 9,000 957,000 1,357,000 2,192,000 1,643,000 8,812,000 18,526,000 Selling and marketing 454,000 308,000 - - - - 89,000 4,761,000 5,612,000 Research and development 400,000 133,000 - - - - 1,550,000 2,717,000 4,800,000 Change in fair value of crypto assets - - - 11,437,000 - - - 650,000 12,087,000 Total operating expenses 3,417,000 1,434,000 9,000 12,394,000 1,357,000 2,192,000 3,282,000 16,940,000 41,025,000 (Loss) income from operations $ ( 271,000 ) $ ( 621,000 ) $ 9,568,000 $ ( 14,674,000 ) $ ( 744,000 ) $ 1,629,000 $ ( 3,281,000 ) $ ( 17,562,000 ) ( 25,956,000 ) Other income (expense): Interest and other income 769,000 Interest expense ( 6,546,000 ) Gain on extinguishment of debt 489,000 Change in fair value of embedded derivative liabilities 1,324,000 Total other expense, net ( 3,964,000 ) Loss before income taxes $ ( 29,920,000 ) Depreciation and amortization expense $ 537,000 $ 8,000 $ - $ 3,542,000 $ 708,000 $ 1,021,000 $ 23,000 $ 536,000 $ 6,375,000 Interest expense $ ( 376,000 ) $ ( 226,000 ) $ - $ ( 1,000 ) $ ( 3,410,000 ) $ ( 271,000 ) $ ( 319,000 ) $ ( 1,943,000 ) $ ( 6,546,000 ) Capital expenditures for the three months ended March 31, 2026 $ 65,000 $ - $ - $ 6,523,000 $ 120,000 $ 1,482,000 $ 14,000 $ 2,362,000 $ 10,566,000 Segment identifiable assets as of March 31, 2026 $ 39,365,000 $ 4,961,000 $ 18,145,000 $ 85,992,000 $ 65,719,000 $ 42,683,000 $ 680,000 $ 51,907,000 $ 309,452,000 F- 19 The following data presents the revenues, expenditures and other operating data of the Company and its operating segments for the three months ended March 31, 2025: TurnOnGreen Fintech Sentinum AGREE Energy ROI Holding Co. Total Revenue, crane operations $ - $ - $ - $ - $ 13,769,000 $ - $ - $ 13,769,000 Revenue, crypto assets mining - - 5,198,000 - - - - 5,198,000 Revenue, hotel and real estate operations - - 516,000 3,149,000 - - - 3,665,000 Revenue, lending and trading activities - ( 28,000 ) - - - - - ( 28,000 ) Revenue, other 1,592,000 - - - 29,000 ( 1,000 ) 797,000 2,417,000 Total revenue 1,592,000 ( 28,000 ) 5,714,000 3,149,000 13,798,000 ( 1,000 ) 797,000 25,021,000 Cost of revenue 861,000 - 7,031,000 2,844,000 8,364,000 206,000 432,000 19,738,000 Gross profit (loss) 731,000 ( 28,000 ) ( 1,317,000 ) 305,000 5,434,000 ( 207,000 ) 365,000 5,283,000 Operating expenses Research and development 125,000 - - - - 4,000 - 129,000 Selling and marketing 246,000 - - - - 2,088,000 - 2,334,000 General and administrative 1,138,000 120,000 ( 51,000 ) 1,363,000 2,337,000 - 4,297,000 9,204,000 Total operating expenses 1,509,000 120,000 ( 51,000 ) 1,363,000 2,337,000 2,092,000 4,297,000 11,667,000 (Loss) income from operations $ ( 778,000 ) $ ( 148,000 ) $ ( 1,266,000 ) $ ( 1,058,000 ) $ 3,097,000 $ ( 2,299,000 ) $ ( 3,932,000 ) ( 6,384,000 ) Other income (expense): Interest and other income 240,000 Interest expense ( 3,839,000 ) Loss on extinguishment of debt ( 4,569,000 ) Gain on deconsolidation of subsidiary 10,049,000 Loss on the sale of fixed assets ( 161,000 ) Total other expense, net 1,720,000 Loss before income taxes $ ( 4,664,000 ) Depreciation and amortization expense $ 19,000 $ - $ 2,584,000 $ 972,000 $ 1,128,000 $ 19,000 $ 479,000 $ 5,201,000 Interest expense $ ( 7,000 ) $ - $ ( 1,000 ) $ ( 1,839,000 ) $ ( 903,000 ) $ ( 225,000 ) $ ( 864,000 ) $ ( 3,839,000 ) Capital expenditures for the year ended March 31, 2025 $ - $ - $ 1,621,000 $ 95,000 $ 1,138,000 $ 23,000 $ 3,000 $ 2,880,000 Segment identifiable assets as of March 31, 2025 $ 2,855,000 $ 20,271,000 $ 33,851,000 $ 68,116,000 $ 46,399,000 $ 1,001,000 $ 45,761,000 $ 218,254,000 F- 20 18. CONCENTRATIONS OF CREDIT AND REVENUE RISK Significant customers are those that represent more than 10% of the Company’s total revenue or accounts receivable balances for the periods and as of each balance sheet date presented. For each significant customer, revenue as a percentage of total revenue and gross accounts receivable as a percentage of total gross accounts receivable as of the periods presented were as follows: Schedule of concentrations of credit and revenue risk Accounts Receivable Revenue March 31, December 31, For the Three Months Ended March 31, 2026 2025 2026 2025 Customer A * * 12 % 21 % Customer B 12 % 13 % * * Customer C * * 23 % * Customer D 30 % 25 % 12 % * * less than 10% 19. SUBSEQUENT EVENTS Class A Common Stock ATM Offering Activity During the period between April 1, 2026 through May 15, 2026, the Company sold an aggregate of 91.1 million shares of Class A common stock pursuant to the ATM Offering for gross proceeds of $ 14.0 million. Series D Preferred ATM Offering Activity During the period between April 1, 2026 through May 15, 2026, the Company issued an aggregate of 20,245 shares of Series D Preferred Stock pursuant to its Series Preferred D ATM Offering for gross proceeds of $ 0.4 million. Term Note In April 2026, the Company entered into a short-term term note with an institutional investor for gross proceeds of $ 10.0 million. The note was issued with an OID of $ 0.8 million and has a principal face amount of $ 10.8 million. The note bears interest at 12 % per annum and matures on June 29, 2026. Beginning May 8, 2026, the Company is required to make weekly principal payments of $ 0.7 million through June 26, 2026, with the remaining outstanding principal balance and accrued interest due at maturity. The note may be prepaid at any time without penalty. Repayment obligations under the note are guaranteed by Ault & Company and Milton C. Ault, III, the Company’s Executive Chairman. Receipt of Litigation-Related Proceeds On April 1, 2026, the Company received cash proceeds of approximately $ 16.6 million in connection with the resolution of litigation involving a former subsidiary. The Company is currently evaluating the appropriate accounting and treatment of these proceeds, including the extent to which amounts may be retained, distributed, or otherwise allocated. F- 21 Circle 8 Financing Agreement In April 2026, Circle 8 finalized a financing arrangement and received $ 10.0 million in equipment financing. In connection with the financing, Circle 8 issued a promissory note with a five-year term requiring monthly payments of approximately $ 0.2 million. The note bears interest at a variable rate based on the five-year U.S. Treasury rate plus 2%, with an initial rate of approximately 5.7%. The financing is secured by first-priority liens on certain cranes and related equipment owned by Circle 8. Proceeds from the financing were used to fully repay amounts outstanding under the Circle 8 revolving credit facility and for general operating purposes. Authorized Shares Increase On April 16, 2026, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of the State of Delaware to increase the number of authorized shares of its Class A common stock from 500,000,000 shares to 2,500,000,000 shares. F- 22