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Segment Reporting
6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Information
The Company has two operating segments, (1) Digital Mining and (2) Service and Product. The segment disclosures present the measure(s) used by the chief operating decision maker to decide how to allocate resources and for purposes of assessing such segments’ performance.
The Digital Mining segment generates revenue from the digital currency the Company earns through its bitcoin mining activities. The Company generates its digital mining revenue from two mining pool operators. The Company’s revenue from digital mining is generated in the United States.
The Service and Product segment generates revenue from customer contracts for service and extended service contract and the sale of products related to the Company’s data storage product line. The Company’s revenue from service and product is generated in the United States.
Summary information by segment (in thousands):
Three months ended June 30, 2023Digital MiningService and ProductUnallocatedTotal Consolidated
Revenue$4,966 $500 $— $5,466 
Segment gross profit$891 $292 $— $1,183 
Segment loss from operations$(821)$(285)$(3,590)$(4,696)
Interest expense— — 1,173 1,173 
Depreciation and amortization$1,346 $$26 $1,375 
Six months ended June 30, 2023Digital MiningService and ProductUnallocatedTotal Consolidated
Revenue$7,490 $1,002 $— $8,492 
Segment gross profit$1,451 $495 $— $1,946 
Segment loss from operations$(712)$(742)$(6,982)$(8,436)
Capital expenditures$1,561 $— $— $1,561 
Interest expense— — 1,173 1,173 
Depreciation and amortization$2,331 $17 $52 $2,400 
Three months ended June 30, 2022Digital MiningService and ProductUnallocatedTotal Consolidated
Revenue$1,211 $710 $— $1,921 
Segment gross profit$592 $369 $— $961 
Segment loss from operations$(4,762)$(145)$(10,487)$(15,394)
Capital expenditures$6,265 $— $— $6,265 
Depreciation and amortization$7,425 $34 $26 $7,485 
Six months ended June 30, 2022Digital MiningService and ProductUnallocatedTotal Consolidated
Revenue$1,958 $1,335 $— $3,293 
Segment gross profit$984 $635 $— $1,619 
Segment loss from operations$(15,412)$(397)$(14,696)$(30,505)
Capital expenditures$16,264 $— $— $16,264 
Depreciation and amortization$13,730 $67 $52 $13,849 
A summary of segment assets is as follows (in thousands):
As of June 30, 2023Digital MiningService and ProductUnallocatedTotal Consolidated
Total assets$58,252 $616 $12,410 $71,278 
As of December 31, 2022Digital MiningService and ProductUnallocatedTotal Consolidated
Total assets$63,077 $689 $19,250 $83,016 
Service and product had the following customers that represented more than 10% of revenue.
Three Months
Ended June 30,
Six Months
Ended June 30,
2023202220232022
Customer A24.7 %18.9 %24.2 %20.1 %
Customer B13.9 %14.3 %14.4 %13.0 %
Customer C10.9 %— %10.9 %— %
Service and product had the following receivable’s that represented more than 10% of accounts receivable.
June 30,
2023
December 31,
2022
Customer A36.2 %— %
Customer B26.7 %22.7 %
Customer C17.8 %15.2 %
Customer D— %10.5 %
Customer E— %14.5 %
Customer F— %10.2 %