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REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY

9 Months Ended

Sep. 30, 2024

Redeemable Noncontrolling Interests In Equity Of Subsidiary Liability

REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY

18. REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF SUBSIDIARY LIABILITY

The Company records redeemable noncontrolling interests in equity of subsidiaries to reflect the economic interests of the common stockholders in Ault Disruptive.

Redemption of Shares

On September 27, 2024, Ault Disruptive announced that it will redeem all of its outstanding shares of common stock which occurred as of the close of business on October 11, 2024, because Ault Disruptive would not consummate an initial business combination within the time period required by its Amended and Restated Certificate of Incorporation, as amended. During the nine months ended September 30, 2024, shares of Ault Disruptive common stock were redeemed for an aggregate redemption amount of $1.5 million.

On October 11, 2024, all remaining shares of Ault Disruptive common stock were redeemed for a redemption amount of $0.8 million.

The following table summarizes the changes in the Company’s redeemable noncontrolling interests in equity of subsidiaries during the three months ended September 30, 2024 and 2023:


	For the Three Months Ended
	September 30,
	2024		2023
Redeemable noncontrolling interests in equity of subsidiaries as of July 1	$	795,000	$	1,951,000
Remeasurement of carrying value to redemption value		9,000		228,000
Redeemable noncontrolling interests in equity of subsidiaries as of September 30	$	804,000	$	2,179,000

The following table summarizes the changes in the Company’s redeemable noncontrolling interests in equity of subsidiaries during the nine months ended September 30, 2024 and 2023:

	For the Nine Months Ended
	September 30,
	2024			2023
Redeemable noncontrolling interests in equity of subsidiaries as of January 1	$	2,224,000		$	117,993,000
Redemption of Ault Disruptive common stock		(1,463,000	)		(120,064,000	)
Remeasurement of carrying value to redemption value		43,000			4,250,000
Redeemable noncontrolling interests in equity of subsidiaries as of September 30	$	804,000		$	2,179,000

Merger Agreement

On June 23, 2024, Ault Disruptive entered into a Merger Agreement with GIGA, intending for GIGA to become a majority owned subsidiary and for Ault Disruptive to be renamed Gresham Worldwide, Inc., trading under the ticker “GWWI” on the NYSE American. However, due to GIGA’s bankruptcy filing, the merger agreement was subsequently terminated.

On August 14, 2024, GIGA filed a petition for reorganization under Chapter 11 of the bankruptcy laws.