Mawson Infrastructure Group Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues increased to $12.32 million, up from $11.33 million in the same period of 2023, marking a rise of $983,387. Digital colocation revenue surged significantly to $9.52 million, a 222% increase from $2.96 million in the prior year, attributed to the expansion from serving a single customer to multiple customers. Energy management revenues also grew by 33% to $1.96 million. Gross profit for the quarter was $4.32 million, compared to $3.62 million in 2023. However, the company reported a loss from operations of $(11.40) million, an improvement from $(16.22) million in the previous year, and a net loss of $(12.23) million, down from $(19.33) million.

For the nine-month period, total revenues reached $44.20 million, up from $29.55 million in 2023, with digital colocation revenue increasing by 118% to $25.88 million. The net loss for the nine months was $(41.82) million, a decrease from $(48.36) million in the same period last year.

The company’s cash and cash equivalents as of September 30, 2024, stood at $5.76 million, an increase from $4.48 million at the end of 2023. However, total assets decreased to $60.77 million from $84.77 million, while total liabilities rose to $62.32 million from $54.38 million, resulting in a stockholders’ equity deficit of $(1.56) million, down from $29.24 million.

Strategically, Mawson has been focusing on expanding its digital infrastructure capabilities, including a recent lease amendment to expand its Ohio facility and a new digital colocation agreement expected to generate significant revenue. The company is also involved in ongoing legal disputes, including arbitration with Celsius Network, LLC, and litigation related to its Australian subsidiaries, which have been placed into liquidation.

Mawson's operational challenges include a negative working capital of $36.09 million and ongoing concerns regarding its ability to continue as a going concern. The company is exploring various strategies to enhance liquidity, including expanding its digital infrastructure platform and engaging with capital providers for potential equity and debt financing.