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EQUITY METHOD INVESTMENTS | 12 Months Ended
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Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract] |
EQUITY METHOD INVESTMENTS | 14. EQUITY METHOD INVESTMENTS Equity Investments in Unconsolidated Entity – AVLP The following table summarizes the changes in the Company’s equity investments in an unconsolidated entity, AVLP, during the year ended December 31, 2022:
Schedule of investments in an unconsolidated entity, AVLP |  |  |  |  |  |  |  |  |
|  | Investment in |  |  | Investment in |  |  |  |
|  | warrants and |  |  | promissory notes |  |  | Total |
|  | common stock |  |  | and advances |  |  | investment |
Balance at January 1, 2022 |  | $ | 39,000 |  |  | $ | 22,091,000 |  |  | $ | 22,130,000 |
Investment in convertible promissory notes |  |  | - |  |  |  | 2,200,000 |  |  |  | 2,200,000 |
Loss from equity investment |  |  | (39,000 | ) |  |  | (885,000 | ) |  |  | (924,000 | )
Accrued interest |  |  | - |  |  |  | 143,000 |  |  |  | 143,000 |
Loss on remeasurement upon conversion |  |  | - |  |  |  | (2,700,000 | ) |  |  | (2,700,000 | )
Conversion of AVLP convertible promissory notes |  |  | - |  |  |  | (17,040,000 | ) |  |  | (17,040,000 | )
Elimination of intercompany debt after conversion |  |  | - |  |  |  | (3,809,000 | ) |  |  | (3,809,000 | )
Balance at December 31, 2022 |  | $ | - |  |  | $ | - |  |  | $ | - |
Equity Investments in Unconsolidated Entity – SMC On November 20, 2023, SMC, a consolidated VIE of the Company, completed a transaction pursuant to which SMC entered into an agreement to sell 2.2 million shares of its common stock for $2.0 million to two affiliates of SMC, both of which are existing shareholders with representation on the board of directors of SMC. As a result of the transaction, Ault Alliance’s share ownership of SMC was diluted to approximately 28%. As a result of SMC’s transaction with its affiliates, the Company initiated a derivative lawsuit against SMC and certain Board members. Due to the significant change in Ault Alliance’s ownership and voting rights, the Company determined that it no longer met the criteria of the primary beneficiary and, accordingly, the Company deconsolidated SMC as of November 20, 2023. The Company recorded a $3.0 million loss on deconsolidation for the year ended December 31, 2023. Upon deconsolidation, the Company recorded its $2.3 million retained investment in SMC based upon the fair value of the common shares held by the Company at November 20, 2023. Due to the Company’s significant influence over SMC, the Company began accounting for its retained interest under the equity method of accounting. The following table summarizes the changes in the Company’s equity investments in an unconsolidated entity, SMC, during the year ended December 31, 2023:
Schedule of equity investments in unconsolidated entity – SMC |  |  |  |
Rollforward investment in unconsolidated entity |  | Amount |
Beginning balance - January 1, 2023 |  | $ | - |
Equity method investment in SMC upon deconsolidation |  |  | 2,259,000 |
Loss from investment in unconsolidated entity |  |  | (302,000 | )
Ending balance - December 31, 2023 |  | $ | 1,957,000 |
The following table provides summarized financial information for the Company’s ownership interest in SMC accounted for under the equity method for the December 31, 2023 period presented and has been compiled from SMC’s financial statements. Amounts presented represent totals at the investee level and not the Company’s proportionate share: Summarized Statements of Operations
Schedule of summarized statements of operations |  |  |  |
|  | For the Year Ended |
|  | December 31, |
|  | 2023 |
Revenue |  | $ | 32,581,000 |
Gross profit |  | $ | 6,964,000 |
Loss from operations |  | $ | (8,290,000 | )
Net loss |  | $ | (9,384,000 | )
Summarized Balance Sheet Information
Schedule of summarized balance sheet information |  |  |  |
|  | December 31, |
|  | 2023 |
Current assets |  | $ | 23,206,000 |
Non-current assets |  | $ | 4,509,000 |
Current liabilities |  | $ | 16,209,000 |
Non-current liabilities |  | $ | 3,928,000 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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