Executive Summary
Overview of QQ4 2024 results shows a modest sequential decline in revenue with a notable improvement in gross profitability versus the prior-year period, but the company continues to post operating and net losses amid tight liquidity and a leveraged balance sheet. Revenue for the quarter was $1.0935 million, down 44.8% QoQ and down approximately 26.9% YoY, reflecting continued volatility in the crypto mining segment. Gross profit reached $0.372 million with a gross margin of 34.0%, an improvement versus Q4 2023, while operating income remained negative at -$2.369 million and net income was -$2.382 million. EBITDA stood at -$1.706 million and free cash flow was -$0.929 million, underscoring ongoing cash burn.
The balance sheet signals material near-term liquidity risk: cash on hand was $57,815 at period end, and total liabilities of $7.81 million exceed total assets of $3.94 million, resulting in negative shareholders’ equity of -$3.87 million. The current ratio is 0.706, underscoring limited near-term liquidity. Debt remains modest at $0.5 million, with net debt of approximately $0.44 million, but the lack of readily available liquidity and negative equity heighten funding and solvency concerns.
Looking ahead, investors should monitor crypto price cycles, mining efficiency, energy costs, and the company’s ability to stabilize or restructure its balance sheet. Management commentary (where available) and forward guidance will be crucial to assess the trajectory of margins, cost discipline, and potential liquidity improvements. In the absence of explicit forward guidance in the data provided, the investment thesis remains cautious given the earnings trajectory, balance sheet pressures, and macro crypto-market volatility.
Key Performance Indicators
QoQ: 299.97% | YoY:172.38%
QoQ: -1 512.49% | YoY:73.65%
QoQ: -901.32% | YoY:74.23%
QoQ: -1 316.22% | YoY:80.65%
Key Insights
Revenue: $1.0935 million in QQ4 2024, down 44.8% QoQ and approximately -26.9% YoY. Gross profit: $0.372 million; Gross margin: 34.0%.
Profitability: EBITDA -$1.7059 million; Operating income -$2.3692 million; Net income -$2.3822 million; Net income margin -2.18%; EPS -$0.54.
Cash flow: Net cash provided by operating activities -$0.9294 million; Free cash flow -$0.9295 million.
Balance sheet and liquidity: Cash at end of period $57,815; Total assets $3.9427 million; Total liabilities $7.8081 m...
Financial Highlights
Revenue: $1.0935 million in QQ4 2024, down 44.8% QoQ and approximately -26.9% YoY. Gross profit: $0.372 million; Gross margin: 34.0%.
Profitability: EBITDA -$1.7059 million; Operating income -$2.3692 million; Net income -$2.3822 million; Net income margin -2.18%; EPS -$0.54.
Cash flow: Net cash provided by operating activities -$0.9294 million; Free cash flow -$0.9295 million.
Balance sheet and liquidity: Cash at end of period $57,815; Total assets $3.9427 million; Total liabilities $7.8081 million; Shareholders’ equity -$3.8655 million; Current ratio 0.706; Quick ratio 0.706; Cash ratio 0.0157; Total debt $0.5 million; Net debt $442,185.
Asset utilization and efficiency: Asset turnover 0.277; Fixed asset turnover 0.814; Payables turnover 0.739; Receivables turnover 0; Cash conversion cycle negative (−121.75 days).
Valuation and market positioning: Price-to-book and enterprise value multiples indicate a distressed balance sheet (negative equity) with limited valuation support; Price-to-sales 3.71; Enterprise value multiple −2.64.
Notes on data integrity: YoY and QoQ figures in the narrative section align with the four-quarter data; a discrepancy exists between the provided YoY revenue growth figure (3.25%) and the calculated YoY change from disclosed quarterly data (approximately -26.9%). For conservative interpretation, the internally calculated YoY and QoQ changes are referenced above where applicable.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.09M |
3.25% |
-44.86% |
| Gross Profit |
372.26K |
172.38% |
299.97% |
| Operating Income |
-2.37M |
73.65% |
-1 512.49% |
| Net Income |
-2.38M |
74.23% |
-901.32% |
| EPS |
-0.54 |
80.65% |
-1 316.22% |
Key Financial Ratios
operatingProfitMargin
-217%
operatingCashFlowPerShare
$-0.21
freeCashFlowPerShare
$-0.21
Management Commentary
No earnings call transcript data was provided in the input. Consequently, specific management quotes or themes cannot be cited. Investors should seek management commentary on mining margins, energy costs, capacity utilization, and liquidity when the company discusses QQ4 2024 results in full (press release and 10-Q/10-K filings).
Forward Guidance
No formal forward guidance was included in the provided data. Given the volatility inherent in crypto markets and mining economics, a prudent outlook would hinge on: (1) stabilization or improvement in cryptocurrency prices and network hash rate; (2) ongoing efficiency gains and cost discipline in mining operations; (3) ability to optimize capital structure to reduce cash burn or secure funding; (4) scalability of software/mining-related services to diversify revenue. Investors should monitor quarterly commentary on mining capacity utilization, energy efficiency initiatives, and any announced asset sales or restructuring plans that could meaningfully improve liquidity.