Item 1A. Risk Factors
ITEM
1A. RISK FACTORS
A description of the risks associated with our
business, financial condition and results of operations is set forth in “Item 1A. Risk Factors” of our annual report on Form
10-K for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission on March 31, 2022, and are supplemented
with the following revised risk factors:
We currently derive a significant portion of
our revenues from a few customers. Material or significant loss of business from these customers could have an adverse effect on our business,
financial condition and operating results.
We currently derive a large portion of our revenues
from a few customers, and material or significant loss of business from these customers could have a significant impact on our results
of operations. As of June 30, 2022, three customers accounted for approximately 42% of our sales: CleanSpark accounted for approximately
14%, which were revenues recorded prior to the termination of the Distribution Agreement on June 3, 2022; Enchanted Rock, LLC became one
of our largest customers following the termination of the Distribution Agreement and accounted for approximately 11%; and a utility company
based in California accounted for approximately 17%. We expect that, following the termination of the Distribution Agreement, Enchanted
Rock, LLC will constitute a large portion of our business, and material or significant loss of business from this customer could have
an adverse effect on our business, financial condition and operating results.
ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM
3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM
4. MINE SAFETY DISCLOSURES
Not
applicable.
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