Company: ANY
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001591956-25-000014
Chunk: 67

Company: Sphere 3D Corp.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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 party at any time with a 10 days written notification to the other party. Fees are 25,000 per month for ongoing work, and $1.45 million fee for certain transactions, payable in cash and equity. In July 2025, we issued two RSU grants for an aggregate of 740,740 common shares with a fair value of approximately $0.45 million for the equity portion of the fee. In July 2025, 50% of the RSU grants vested and 370,370 common shares were issued.

Results of Operations

The Third Quarter of 2025 Compared with the Third Quarter of 2024

Revenue

For the third quarter of 2025 and 2024, we had revenues of $2.6 million and $2.4 million, respectively. The $0.2 million increase in revenue is primarily due to the increase in the fair value of Bitcoin offset by 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 third 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 third quarter of 2025 and 2024, direct cost of revenues were $2.0 million and $2.7 million, respectively. The $0.7 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.

General and Administrative Expense

General and administrative expenses were $1.8 million and $3.0 million for the third quarter of 2025 and 2024, respectively. The $1.2 million decrease was primarily due to a $1.2 million decrease in legal fees related to a resolved litigation, a decrease of $0.3 million in share-based compensation primarily related to forfeited awards, a $0.2 million decrease in insurance expense. These decreases were offset by a $0.3 million provision for the remaining portion of the Rebel Mining Company settlement that is in default and a $0.2 million increase in costs related to strategic business growth efforts.

Depreciation and Amortization Expense

Depreciation and amortization expense was $1.7 million for both the third quarter of 2025