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SUBSEQUENT EVENTS
 9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

27. SUBSEQUENT EVENTS

 

Activity Under 2021 ATM Offering

 

From October 1, 2021 through November 18, 2021, the Company sold an aggregate of 17.9 million shares of common stock pursuant to the 2021 Sales Agreement for gross proceeds of $39.5 million.

 

Investments in Alpha Fund

 

In October and November 2021, the Company purchased an additional $8.5 million of limited partnership interests in the Alpha Fund.

 

Investments by Alpha Fund

 

In October 2021, Alpha Fund purchased 1,650,000 shares of the Company’s common stock in open market transactions at an average purchase price of $2.42 per share. As of November 15, 2021, the Alpha Fund owned 2,650,000 shares of the Company’s common stock.

 

Stock Option and Restricted Stock Grants

 

On November 9, 2021, the Board approved the following grants:

 

·Grants to each independent director of non-qualified stock options to purchase 100,000 shares of the Company’s common stock with an exercise price of $2.19 per share, vesting monthly beginning on January 1, 2023 and ending December 31, 2024 and will be exercisable upon approval by the NYSE American and the Company’s stockholders;

 

·Grants to each of Milton C. Ault, III, William Horne, Henry Nisser and Kenneth Cragun of non-qualified stock options to purchase 1,000,000, 800,000, 600,000 and 300,000 shares of the Company’s common stock, respectively, with an exercise price of $2.19 per share, vesting monthly beginning on January 1, 2023 and ending December 31, 2024 and exercisable upon approval by the NYSE American and the Corporation’s stockholders;

 

·Grant to certain employees of non-qualified stock options to purchase an aggregate of 1,635,000 shares of the Company’s common stock with an exercise price of $2.19 per share, vesting over 36 months beginning on January 1, 2022 and exercisable pursuant to the Company’s 2021 Stock Incentive Plan, although one employee’s stock option grant of 100,000 options is exercisable at $2.66 per share vesting ratably over 48 months beginning October 1, 2021; and

 

·Restricted stock grant to certain employees of an aggregate of 200,000 shares pursuant to the Company’s 2021 Stock Incentive Plan. Such shares will vest 25% on November 15, 2021, 25% on May 15, 2022, 25% on November 15, 2022 and 25% on May 15, 2023.

 

TurnOnGreen Lease Agreement 

 

On November 5, 2021, the Company’s subsidiary, TurnOnGreen, entered into a lease agreement to lease a 31,165 square foot building in Milpitas, California. The lease term is approximately 50 months ending January 31, 2026. The total commitment under the lease is $2.3 million. 

 

Purchase Agreement for Bitcoin Mining Equipment

 

In November 2021, Ault Alliance entered into contracts with Bitmain Technologies Limited to purchase an aggregate of 16,000 Bitcoin miners for $121 million. The purchase includes both the environmentally friendly S19 XP Antminers that feature a processing power of 140 terahashes per second (TH/s) with an energy consumption of 3.01 kilowatt-hours (kWh) and the S19j Pro Antminers that feature a processing power of 100 TH/s with an energy consumption of 2.95 kWh. Based on current delivery schedules, Ault Alliance expects that the 16,000 newly purchased miners will be shipped by Bitmain between March 2022 and September 2022.