$GPUS-PD

DIGITAL POWER CORP

CIK:0000896493|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Total revenue	$ 34,841,000	$ 25,856,000	$ 78,920,000	$ 50,877,000
Total cost of revenue	26,046,000	19,729,000	55,056,000	39,467,000
Gross profit	8,795,000	6,127,000	23,864,000	11,410,000
Operating expenses
General and administrative	19,845,000	9,865,000	38,371,000	19,069,000
Selling and marketing	8,139,000	6,277,000	13,751,000	8,611,000
Research and development	4,281,000	112,000	9,081,000	241,000
Impairment of property and equipment	2,300,000		2,300,000
Change in fair value of crypto assets	(2,656,000)		4,749,000
Total operating expenses	31,909,000	16,254,000	68,252,000	27,921,000
Loss from operations	(23,114,000)	(10,127,000)	(44,388,000)	(16,511,000)
Other income (expense):
Interest and other income	443,000	1,081,000	1,212,000	1,321,000
Interest expense	(3,942,000)	(7,664,000)	(10,488,000)	(11,503,000)
Gain on extinguishment of settlement obligation	16,060,000		16,060,000
Change in fair value of crypto assets, restricted	(2,395,000)		(7,077,000)
Impairment of crypto assets, restricted	(7,123,000)		(7,123,000)
Gain (loss) on extinguishment of debt	270,000		759,000	(4,569,000)
Change in fair value of embedded derivative liabilities	827,000		2,151,000
(Loss) gain on deconsolidation of subsidiary		(359,000)		9,690,000
Loss on the sale of fixed assets		(398,000)		(559,000)
Total other income (expense), net	4,140,000	(7,340,000)	(4,506,000)	(5,620,000)
Loss before income taxes	(18,974,000)	(17,467,000)	(48,894,000)	(22,131,000)
Income tax (benefit) provision	(24,000)	(129,000)	192,000	(70,000)
Net loss	(18,950,000)	(17,338,000)	(49,086,000)	(22,061,000)
Net income attributable to non-controlling interest	(406,000)	(1,713,000)	(220,000)	(1,195,000)
Net loss attributable to Hyperscale Data	(19,356,000)	(19,051,000)	(49,306,000)	(23,256,000)
Preferred dividends	(2,298,000)	(2,215,000)	(4,804,000)	(4,181,000)
Net loss attributable to common stockholders	$ (21,654,000)	$ (21,266,000)	$ (54,110,000)	$ (27,437,000)
Basic net loss per common share	$ (0.05)	$ (2.66)	$ (0.13)	$ (3.89)
Diluted net loss per common share	$ (0.05)	$ (2.66)	$ (0.13)	$ (3.89)
Weighted average basic common shares outstanding	475,216,000	7,986,000
Weighted average diluted common shares outstanding	475,216,000	7,986,000	427,340,000	7,062,000
Comprehensive loss
Foreign currency translation adjustment	$ 1,359,000		$ 553,000	$ 6,000
Other comprehensive income	1,359,000		553,000	6,000
Total comprehensive loss	(20,295,000)	(21,266,000)	(53,557,000)	(27,431,000)
Crane Operations [Member]
Total revenue	11,052,000	11,582,000	22,053,000	25,351,000
Total cost of revenue	7,327,000	8,141,000	14,507,000	16,388,000
Revenue defense solutions [Member]
Total revenue	11,916,000	1,692,000	23,834,000	3,284,000
Revenue Crypto Assets Mining [Member]
Total revenue	4,923,000	4,684,000	10,000,000	9,882,000
Hotel and real estate operations [Member]
Total revenue	5,869,000	5,622,000	9,725,000	9,287,000
Total cost of revenue	3,303,000	3,285,000	6,293,000	6,129,000
Lending and Trading Activities [Member]
Total revenue	(2,279,000)	1,826,000	9,242,000	1,798,000
Total cost of revenue	1,010,000		2,954,000
Other [Member]
Total revenue	3,360,000	450,000	4,066,000	1,275,000
Total cost of revenue	1,018,000	217,000	$ 2,345,000	$ 972,000
Other income (expense):
Weighted average basic common shares outstanding			427,340,000	7,062,000
Costof revenue defense solutions [Member]
Total cost of revenue	7,761,000	1,012,000	$ 15,720,000	$ 1,873,000
Cost of Revenue Crypto Assets Mining [Member]
Total cost of revenue	$ 5,627,000	$ 7,074,000	$ 13,237,000	$ 14,105,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (49,086,000)	$ (22,061,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	10,989,000	9,977,000
Amortization of debt discount	3,246,000	4,882,000
Amortization of right-of-use assets	705,000	741,000
Stock-based compensation	558,000	135,000
Loss on the sale of fixed assets		559,000
Revenue, crypto assets mining	(10,000,000)	(9,882,000)
Impairment of property and equipment	2,300,000
Proceeds from the sale of crypto assets		9,940,000
Change in fair value and impairment of crypto assets and crypto assets, restricted	18,949,000	10,000
Proceeds from the sale of investment in equity securities		3,953,000
Realized gains on non-marketable equity securities		(1,401,000)
Change in fair value of embedded derivatives	(2,151,000)
(Gain) loss on extinguishment of debt	(759,000)	4,569,000
Gain on deconsolidation of subsidiary		(9,690,000)
Other operating activities	2,291,000	(636,000)
Changes in operating assets and liabilities:
Marketable equity securities	252,000	(54,000)
Accounts receivable	(4,240,000)	(1,196,000)
Inventories	(1,256,000)	293,000
Prepaid expenses and other current assets	(2,167,000)	591,000
Other assets	(1,728,000)	348,000
Accounts payable and accrued expenses	22,959,000	2,613,000
Lease liabilities	(747,000)	(746,000)
Net cash used in operating activities	(9,885,000)	(7,055,000)
Cash flows from investing activities:
Purchase of property and equipment	(17,315,000)	(3,277,000)
Purchase of crypto assets	(8,914,000)
Investments in loans receivable	(6,371,000)	(1,350,000)
Collections on loans receivable	5,293,000	236,000
Investments in non-marketable equity securities	(12,693,000)
Proceeds from the sale of property and equipment	64,000	820,000
Investment in notes receivable, related party	(5,000,000)	(691,000)
Collections on notes receivable, related party		1,945,000
Other investing activities	(135,000)	(14,000)
Net cash used in investing activities	(45,071,000)	(2,331,000)
Cash flows from financing activities:
Gross proceeds from sales of Class A common stock	50,174,000
Offering costs related to issuance of Class A common stock	(1,454,000)
Proceeds from sales of Series B preferred stock		7,899,000
Proceeds from sales of Series D preferred stock	566,000	3,450,000
Proceeds from sales of Series C preferred stock and warrants, related party		960,000
Proceeds from notes payable	60,100,000	29,127,000
Payments on notes payable	(44,479,000)	(30,289,000)
Repayments of related party notes payable	(2,398,000)	(93,000)
Proceeds from related party notes payable	874,000
Payments of preferred dividends	(4,804,000)	(4,161,000)
Proceeds from issuance of convertible notes	16,001,000	5,020,000
Payments on convertible notes	(1,981,000)	(300,000)
Repurchase of common stock pursuant to tender offer	(1,834,000)
Net cash provided by financing activities	70,765,000	11,613,000
Effect of exchange rate changes on cash and cash equivalents	57,000	6,000
Net increase in cash and cash equivalents and restricted cash	15,866,000	2,233,000
Cash, cash equivalents and restricted cash at beginning of period	49,226,000	25,022,000
Cash, cash equivalents and restricted cash at end of period	65,092,000	27,255,000
Supplemental disclosures of cash flow information:
Cash paid for interest	5,344,000	5,336,000
Non-cash investing and financing activities:
Transfers from crypto assets to crypto assets, restricted	55,871,000
Settlement of accounts payable with crypto assets	110,000	16,000
Conversion of convertible notes payable into shares of Class A common stock	1,000,000	11,313,000
Conversion of Series B preferred stock into shares of Class A common stock		3,000
Conversion of debt and equity securities to marketable securities	2,803,000
Conversion of other equity securities to marketable securities	299,000
Exchange of related party advances for investment in other equity securities, related party	1,800,000
Note payable issued for equity securities	1,955,000
Recognition of new operating lease right-of-use assets and lease liabilities	$ 1,699,000	$ 1,552,000
Notes payable exchanged for convertible notes payable		9,103,000
Paid-in-kind dividends settled through issuance of Series B preferred stock		$ 20,000
Property and equipment acquired through note payable financing	$ 1,501,000

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS
Cash and cash equivalents	$ 36,780,000	$ 13,076,000
Restricted cash	28,312,000	36,150,000
Accounts receivable, net	18,787,000	14,548,000
Inventories	6,069,000	4,812,000
Loans receivable, current	4,103,000	187,000
Crypto assets	4,409,000	46,197,000
Prepaid expenses and other current assets	15,567,000	14,732,000
TOTAL CURRENT ASSETS	114,027,000	129,702,000
Crypto assets, restricted	41,642,000
Intangible assets, net	13,607,000	13,673,000
Goodwill	10,405,000	10,326,000
Property and equipment, net	148,279,000	141,988,000
Right-of-use assets	7,635,000	6,651,000
Investments in common stock and equity securities, related party	170,000	15,000
Investments in other equity securities	16,467,000	4,108,000
Other assets	7,806,000	7,244,000
TOTAL ASSETS	360,038,000	313,707,000
CURRENT LIABILITIES
Accounts payable and accrued expenses	61,418,000	39,207,000
Operating lease liability, current	2,001,000	1,776,000
Notes payable, current	95,236,000	82,055,000
Notes payable, related party, current	162,000	1,686,000
Convertible notes payable	3,940,000	6,750,000
Guarantee liability	38,900,000	38,900,000
TOTAL CURRENT LIABILITIES	201,657,000	170,374,000
LONG-TERM LIABILITIES
Operating lease liability, non-current	5,925,000	5,198,000
Notes payable, non-current	10,698,000	1,066,000
Convertible notes payable, non-current	23,046,000	7,843,000
Other long-term liabilities	2,181,000	3,369,000
TOTAL LIABILITIES	243,507,000	187,850,000
STOCKHOLDERS’ EQUITY
Preferred stock, $0.001 par value - 25,000,000 shares authorized; 2,333,172 and 2,299,188 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively (liquidation preference of $90,875,000 as of June 30, 2026)	2,000	2,000
Additional paid-in capital	903,734,000	853,156,000
Note receivable – related party	(5,000,000)
Accumulated deficit	(790,495,000)	(734,560,000)
Accumulated other comprehensive income	1,365,000	812,000
TOTAL HYPERSCALE DATA STOCKHOLDERS’ EQUITY	110,211,000	119,757,000
Non-controlling interest	6,320,000	6,100,000
TOTAL STOCKHOLDERS’ EQUITY	116,531,000	125,857,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	360,038,000	313,707,000
Common Class A [Member]
STOCKHOLDERS’ EQUITY
Common Stock, value	581,000	323,000
Common Class B [Member]
STOCKHOLDERS’ EQUITY
Common Stock, value	$ 24,000	$ 24,000