Ault Alliance Achieves Profitability in the First Quarter of 2024; Revenue Increases by 55% to $45 Million

Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), reported its financial results for the first quarter ended March 31, 2024, which were disclosed on a quarterly report on Form 10-Q filed yesterday with the Securities and Exchange Commission.

First quarter 2024 highlights include:

• Total revenue increased 55% to $44.9 million, compared to $28.9 million in the prior year’s first fiscal quarter;
• Revenue of approximately $3 million from Ault Global Real Estate Equities, Inc. (“AGREE”), was not included in the total revenue of $44.9 million as the assets of AGREE were classified as discontinued operations as they were previously held for sale;
• Revenue from digital assets mining increased 56% to $11.4 million, compared to $7.3 million in the prior year’s first fiscal quarter;
• Revenue from lending and trading activities increased to $9.1 million, compared to negative $4.9 million in the prior year’s first fiscal quarter;
• Gross margins improved to 43%, compared to 9% in the prior year’s first fiscal quarter;
• Operating expenses declined 41% to $19.1 million, compared to $32.3 million in the prior year’s first fiscal quarter;
• Income from operations improved to $0.4 million, compared to a loss from operations of $29.9 million in the prior year’s first fiscal quarter;
• Total assets of $299.8 million as of March 31, 2024; and
• Net income available to common stockholders of $2.5 million, compared to a net loss available to common stockholders of $48.9 million in the prior year first fiscal quarter.

Milton “Todd” Ault III, the Founder and Executive Chairman of Ault Alliance, expressed optimism about the Company’s trajectory, noting, “We are beginning to see the results of our commitment to focusing on and strengthening our key assets, as three of our main reporting segments, Sentinum, Inc. (“Sentinum”), Technology and Finance (“Fintech”) and Energy and Infrastructure (“Energy”), all reported positive income from operations for the fiscal quarter ended March 31, 2024. Only the Energy segment reported positive income from operations during the comparable period for the prior quarter. However, we recognize that the next few quarters may present fluctuations in our results, due to variables such as Bitcoin volatility and difficulty as well as the dynamic, evolving artificial intelligence (“AI”) industry, which we anticipate will significantly impact our future operations.”