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Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information

 

15.Segment Information

 

The Company applies ASC 280, Segment Reporting, in determining its reportable segments. As of March 31, 2022, the Company had two reportable segments in Continuing Operations: Cryptocurrency Mining and Data Center Hosting. Until the sale of MTI Instruments, the Company also had an additional reportable segment: Test and Measurement Instrumentation, which has classified as discontinued operations. The guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker (“CODM”) to decide how to allocate resources and for purposes of assessing such segments’ performance. The Company’s CODM is comprised of several members of its executive management team who use revenue and cost of revenues of both reporting segments to assess the performance of the business of our reportable operating segments.

 

No operating segments have been aggregated to form the reportable segments. The Company does not allocate all assets to the reporting segments as these are managed on an entity-wide basis. Therefore, the Company does not separately disclose the total assets of its reportable operating segments.

 

The Cryptocurrency Mining segment generates revenue from the cryptocurrency the Company earns through its mining activities. The Data Center Hosting segment generates revenue from contracts for the provision/consumption of electricity and operation of the data center from the Company’s high performance computing facility in Calvert City, Kentucky.

 

For the three months ended March 31, 2022 and 2021, respectively, approximately 7% and 90% of the Company’s cryptocurrency mining revenue was generated from our operations in East Wenatchee, Washington, 44% and 10% from our operations in Calvert City, Kentucky and 49% and 0% from our operations in Murray, Kentucky. 100% of the Company’s data center hosting revenue was generated from the facility in Calvert City, Kentucky from hosting with two customers for three months ended March 31, 2022.

 

The Company evaluates performance based on profit or loss from operations before income taxes, accounting changes, items management does not deem relevant to segment performance, and interest income and expense. Inter-segment sales and expenses are not significant. Non-cash items of depreciation and amortization are included within both costs of sales and selling, general and administrative expenses.

 

The following table details revenue and cost of revenues for the Company’s reportable segments for three months ended March 31, 2022 and 2021, and reconciles to net income (loss) on the consolidated statements of operations :

 

(Dollars in thousands)  Three
Months
Ended
March 31,
2022		   Three
Months
Ended
March 31,
2021		 
Reportable segment revenue:          
Cryptocurrency mining revenue  $7,812   $995 
Data hosting revenue   1,504    — 
Total segment and consolidated revenue   9,316    995 
Reportable segment cost of revenue:          
Cost of revenues-cryptocurrency mining   7,721    328 
Cost of revenues-data hosting   1,138    — 
Total segment and consolidated cost of revenues   8,859    328 
Reconciling items:          
Selling, general and administrative expenses   7,255    1,298 
Interest expense   (2,881)   — 
Other income   —    5 

Income tax benefit from continuing operations

   547    — 
Net loss (continuing operations)   (9,132)   (626)
 Income (loss) from discontinued operations before income tax   226    (40)
 Income tax (expense) benefit from discontinued operations   —    — 

Net income (loss) from discontinued operations

   226    (40)
Net loss   (8,906)   (666)
           
Capital expenditures   25,438    296 
Depreciation and amortization   6,697    75