Company: ANY
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001591956-25-000009
Chunk: 63

Company: Sphere 3D Corp.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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 2024, we had revenues of $3.0 million and $4.7 million, respectively. The $1.7 million decrease in revenue is primarily due to the April 2024 halving event, and the process of removing our older mining equipment and replacing them with newer generation machines. The refreshing of our mining equipment is expected to be an ongoing process through 2025 which may result in further fluctuations in exahash. During the second quarter of 2025 and 2024, all of our revenue was derived from Bitcoin mining. 

Operating Expenses

Cost of Revenue (exclusive of depreciation and amortization expense)

For the second quarter of 2025 and 2024, direct cost of revenues were $2.3 million and $4.0 million, respectively. The $1.7 million decrease in cost of revenue was primarily due to lower hosting fees related to machines taken offline to be relocated and the transition of removing older mining machines and replacing them with newer generation machines.

24

General and Administrative Expense

General and administrative expenses were $2.1 million and $3.0 million for the second quarter of 2025 and 2024. The decrease of $0.9 million was due to a decrease of $0.5 million in share-based compensation primarily related to forfeited awards, a decrease of $0.4 million in legal fees related to resolved litigation, a $0.2 million decrease in director fees, and a $0.1 million decrease in insurance and property tax expenses. These decreases were offset by an increase of $0.3 million in costs related to strategic business growth efforts.

Depreciation and Amortization Expense

Depreciation and amortization expense was $1.7 million and $1.8 million for the second quarter of 2025 and 2024, respectively. The decrease of $0.1 million was primarily due to less depreciation related to our Bitcoin mining machines due to the disposal of machines.

Impairment of Property and Equipment

Impairment of property and equipment was nil and $0.9 million for the second quarter of 2025 and 2024, respectively, and the prior year related to idle mining equipment not expected to return to use. 

Loss on Disposal of Property and Equipment

Loss on disposal of property and equipment was $0.1 million and $0.7 million for the second quarter of 2025 and 2024, respectively, and related to the disposal of or sale of mining equipment.