Ault Alliance Expects $190-$200 Million in Revenue for Full
Year 2023
Ault Alliance, Inc. (NYSE American: AULT), a diversified holding
company (“Ault Alliance,” or the “Company”), with
core interests in crane rental, data center activities, and its
technology and finance operations (“Ault Venture Group”), is
pleased to report preliminary unaudited third quarter 2023 revenue
exceeding $52.5 million.
Preliminary unaudited revenues by business segment are as
follows:
Preliminary
Actual
Actual
Business Segment
Q3-2023
Q2-2023
Q3-2022
Circle 8 Newco LLC crane operations
$
12,500,000
$
12,672,000
$
-
Sentinum, Inc. (“Sentinum”):
Cryptocurrency mining
7,600,000
8,368,000
4,146,000
Alliance Cloud Services, LLC
300,000
325,000
201,000
Ault Venture Group:
Ault Lending, LLC (“Ault
Lending”)
(100,000
)
9,525,000
13,360,000
Ault Global Real Estate Equities, Inc.
5,400,000
4,384,000
5,513,000
The Singing Machine Company, Inc.
15,900,000
2,625,000
17,114,000
BitNile Metaverse, Inc. (“BitNile
Metaverse”)
18,000
45,000
-
Giga-tronics Incorporated
(“GIGA”)
9,700,000
8,740,000
7,782,000
Imperalis Holding Corp. d/b/a TurnOnGreen,
Inc.
1,200,000
724,000
1,662,000
Total revenue
$
52,518,000
$
47,408,000
$
49,778,000
Focus on Cash Flow-Generating Subsidiaries
The Company is working diligently to focus on its cash
flow-generating subsidiaries. “We’re proud of the performance in
our Circle 8 crane operations and our Sentinum data centers. Cash
flow is improving, and we have an eye towards future
profitability,” said Milton “Todd” Ault III, Executive Chairman of
Ault Alliance.
Sentinum Bitcoin Mining Update
The annualized revenue run rate of Sentinum Bitcoin mining is
currently approximately $32 million, many times greater than the
current market capitalization of Ault Alliance as a whole. The
Company is continually perplexed by the market’s inability to value
any cash-producing assets within the Company and remains committed
to the long-term value of its operations, including its Sentinum
Bitcoin mining operations.
Sentinum is currently building out an additional data center
site in Montana. Sentinum plans to use the Montana site as a
hosting facility for Bitcoin and other cryptocurrency miners.
Steady Advancements in Ault Venture Group and Defense
Sector
The Ault Venture Group holds various public ownerships of
companies and anticipates leveraging market opportunities over the
next 12 months. GIGA, which does business as Gresham Worldwide, a
defense company, reported revenue growth of over 12% from the last
quarter. “The defense business, especially our Israeli division, is
experiencing robust growth amidst the current conflict,” said Mr.
Ault. The Company believes that GIGA is undervalued and is working
with management to determine new strategic paths that may unlock
the intrinsic value of the defense business and its
subsidiaries.
Challenges at Ault Lending
Ault Lending faced challenges but shows early signs of
stabilization. “We remain cautiously optimistic,” noted Mr. Ault.
Revenues from our trading activities at Ault Lending includes net
losses on equity securities, including unrealized gains and losses
from market price changes. These gains and losses cause significant
volatility in our periodic earnings.
Stabilization in Ault Global Real Estate Equities, Inc. Hotel
Revenue
“Our Midwest hotel portfolio is showing stable seasonal revenue
and hopes to capitalize on growing work travel trends and other
opportunities in both Rockford, IL, and Madison, WI.,” said Mr.
Ault. The Company previously announced that it seeks to sell the
newly renovated hotels for approximately $100 million in addition
to the decision to also list the St. Petersburg property for a $20
million asking price. The decision to list the properties is driven
by the Company’s desire to focus on its core businesses.
Promising Outlook for BitNile Metaverse Business
While BitNile Metaverse is currently not contributing
significantly to revenue, the Company anticipates increased revenue
growth in its BitNile Metaverse business for 2024. “Starting from
the ground up, we expect to see significant growth in this sector
and will be announcing our future plans in the coming weeks,” added
Mr. Ault.
Outlook for 2023
Ault Alliance projects a total consolidated revenue of $190-200
million for the fiscal year ending December 31, 2023. “Our focus is
on delivering a foundation of stable revenue with year-over-year
growth,” concluded Mr. Ault.
Statement on Company’s Common Stock Performance
Mr. Ault notes that the performance of the Company’s common
stock remains unacceptable. “We are working diligently to
articulate the Company’s growth prospects to the market. We are
making dramatic improvements across our business lines and are
focused on building a more stable enterprise. While we maintain our
belief in the holding company model, we are incredibly disappointed
in the stock’s performance,” added Mr. Ault.
For more information on Ault Alliance and its subsidiaries, Ault
Alliance recommends that stockholders, investors, and any other
interested parties read Ault Alliance’s public filings and press
releases available under the Investor Relations section at
www.Ault.com or at www.sec.gov/.
About Ault Alliance, Inc.
Ault Alliance, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, Ault
Alliance owns and operates a data center at which it mines Bitcoin
and offers colocation and hosting services for the emerging
artificial intelligence ecosystems and other industries, and
provides mission-critical products that support a diverse range of
industries, including metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, consumer electronics, hotel operations and
textiles. In addition, Ault Alliance extends credit to select
entrepreneurial businesses through a licensed lending subsidiary.
Ault Alliance’s headquarters are located at 11411 Southern
Highlands Parkway, Suite 240, Las Vegas, NV 89141;
www.ault.com/.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update any of
them publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8- K. All filings are available at www.sec.gov and on the Company’s
website at www.ault.com/.
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version on businesswire.com: https://www.businesswire.com/news/home/20231023122942/en/
Ault Alliance Investor Contact: IR@Ault.com or
1-888-753-2235
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