$PWCM

POWERCOMPUTE, INC.

CIK:0001640384|SEC Filings

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Digital mining revenues	$ 2,008,220	$ 1,806,364	$ 3,986,400	$ 4,080,304
Specialty finance revenue	87,771	94,945	195,428	162,334
Rental revenue	20,593	27,015	43,723	57,023
Total revenues	2,116,584	1,928,324	4,225,551	4,299,661
Operating costs and expenses:
Digital mining cost of revenues (exclusive of depreciation and amortization shown below)	1,571,273	1,288,399	3,439,617	2,836,694
Curtailment and energy sales	(145,071)	(223,269)	(512,666)	(372,955)
Staff costs and payroll	1,113,824	1,087,627	2,431,099	2,138,104
Depreciation and amortization	840,142	2,039,343	1,669,970	4,076,921
Loss (gain) on fair value of Bitcoin, net	1,318,607	(3,761,139)	5,103,025	(1,951,163)
Professional fees	450,389	308,829	796,083	673,314
Selling, general and administrative	345,317	375,420	721,745	685,384
Real estate management and disposal	20,008	22,420	33,383	58,734
Collection costs	12,804	8,589	25,184	25,941
Settlement costs with associations	0	0	0	3,693
Loss (gain) on disposal of assets	(2,739)	99,578	(2,739)	286,359
Other operating costs	447,123	259,012	808,218	514,960
Total operating costs and expenses	5,971,677	1,504,809	14,512,919	8,975,986
Operating income (loss)	(3,855,093)	423,515	(10,287,368)	(4,676,325)
Unrealized gain (loss) on marketable securities	8,110	(5,110)	5,730	(13,820)
Unrealized gain (loss) on investment and equity securities	(1,111)	(130,890)	12,913	(156,874)
Impairment loss on prepaid mining machine deposit	(17,193)	0	(17,193)
Gain on Galaxy loan derivative	1,669,659		1,692,033	0
Loss on fair value of purchased Bitcoin, net	0	0	0	(52,704)
Loss on fair value of digital assets receivable	(1,700,773)	0	(4,879,213)	0
Change in credit loss reserve on digital assets receivable	3,393	0	9,187	0
Interest expense	(687,087)	(227,546)	(1,232,258)	(448,452)
Interest income	14,532	531	15,064	1,676
Income (loss) before income taxes	(4,565,563)	60,500	(14,681,105)	(5,346,499)
Income tax expense	0	0	0	0
Net income (loss)	(4,565,563)	60,500	(14,681,105)	(5,346,499)
Less: loss (gain) attributable to non-controlling interest	1,253	40,054	(2,419)	48,379
Net income (loss) attributable to PowerCompute Inc.	(4,564,310)	100,554	(14,683,524)	(5,298,120)
Less: deemed dividends (Note 6)	(40,023)	0	(40,023)	0
Net income (loss) attributable to common shareholders	$ (4,604,333)	$ 100,554	$ (14,723,547)	$ (5,298,120)
Basic income (loss) per common share (Note 1)	$ (5.26)	$ 0.49	$ (16.99)	$ (25.8)
Diluted income (loss) per common share (Note 1)	$ (5.26)	$ 0.49	$ (16.99)	$ (25.8)
Weighted average number of common shares outstanding:
Basic	875,050	205,336	866,689	205,336
Diluted	875,050	205,336	866,689	205,336

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (14,681,105)	$ (5,346,499)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	1,669,970	4,076,921
Noncash lease expense	111,896	96,373
Amortization of debt issue costs and debt discount	711,540	42,528
Stock option expense	530,448	135,426
Accrued interest expense on finance lease	26,244	30,553
Loss on fair value of Bitcoin, net	5,103,025	(1,898,459)
Loss on fair value of digital assets receivable	4,879,213	0
Impairment loss on mining machine deposit	17,193	0
Unrealized loss on marketable securities	(5,730)	13,820
Gain on Galaxy loan derivative	(1,692,033)	0
Change in credit loss reserve on digital assets receivable	(9,187)	0
Unrealized loss (gain) on investment and equity securities	(12,913)	156,874
Loss on disposal of fixed assets	(2,739)	286,359
Write-off of income tax receivable	31,187	0
Change in operating assets and liabilities:
Prepaid expenses and other assets	480,006	398,424
Due to related party	28,507	5,449
Accounts payable and accrued expenses	(230,218)	540,514
Mining of digital assets	(3,986,400)	(4,080,304)
Lease liability payments	(191,786)	(171,474)
Net cash used in operating activities	(7,222,882)	(5,713,495)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(252,145)	(377,212)
Collection of note receivable	0	200,000
Proceeds from sale of fixed assets	0	953,153
Investment in digital assets - Tether	(5,296)	(30,315)
Proceeds from sale of Bitcoin	6,555,285	3,323,773
Proceeds from the sale of Tether	3,173	29,460
Change in deposits for mining equipment	0	(986,690)
Distribution to members	0	(1,015)
Net cash provided by investing activities	6,315,278	3,106,085
CASH FLOWS FROM FINANCING ACTIVITIES:
Insurance financing repayments	(461,406)	(410,877)
Proceeds from warrant exercise, net of issuance costs	2,909	0
Proceeds from the issuance of common stock, net of issuance costs	795,463	0
Issuance costs	0	(6,285)
Net cash used in financing activities	336,966	(417,162)
NET DECREASE IN CASH	(570,638)	(3,024,572)
CASH - BEGINNING OF PERIOD	1,424,426	3,378,152
CASH - END OF PERIOD	853,788	353,580
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Insurance financing	0	168,324
Recognition of Galaxy loan derivative	760,105	0
Digital assets transferred to digital assets receivable, net	2,375,176	0
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION
Cash paid for taxes	0	0
Cash paid for interest	568,015	337,850
Original Product [Member]
CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections (investment) of finance receivables	8,332	(2,434)
Special Product [Member]
CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections (investment) of finance receivables	$ 5,929	$ (2,635)

Consolidated Balance Sheets - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash	$ 853,788	$ 1,424,426
Marketable securities	43,110	37,380
Prepaid expenses and other assets	759,533	1,198,486
Finance receivables	3,272	17,533
Digital assets - current (Note 2)	751,547	2,563,474
Digital assets - collateral (Note 2)	5,500,000	5,500,000
Digital assets receivable, net (Note 2)	10,183,164	12,678,014
Galaxy loan derivative asset (Note 4)	979,600	47,673
Income tax receivable	0	31,187
Current assets	19,074,014	23,498,173
Fixed assets, net (Note 3)	8,620,463	9,917,350
Intangible assets, net (Note 3)	6,196,193	6,327,769
Deposits on mining equipment	14,974	1,597
Investment in Seastar Medical Holding Corporation	$ 37,986	$ 25,073
Investment, Issuer Affiliation [Extensible Enumeration]	us-gaap:InvestmentAffiliatedIssuerMember	us-gaap:InvestmentAffiliatedIssuerMember
Digital assets - long-term (Note 2)	$ 0	$ 8,233,035
Digital assets - collateral (Note 2)	2,200,000	2,200,000
Right of use assets (Note 5)	617,099	728,995
Other assets	325,988	384,234
Long-term assets	18,012,703	27,818,053
Total assets	37,086,717	51,316,226
Liabilities and stockholders' equity
Accounts payable and accrued expenses	1,515,657	1,745,875
Note payable - short-term (Note 4)	6,588,035	7,006,912
Master digital currency loan (Note 4)	10,809,494	10,920,838
Due to related parties (Note 7)	$ 76,826	$ 48,319
Other Liability, Current, Related Party [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Current portion of lease liability (Note 5)	$ 207,472	$ 194,618
Total current liabilities	19,197,484	19,916,562
Note payable - long-term (Note 4)	1,952,752	1,932,502
Lease liability - net of current portion (Note 5)	411,972	590,368
Long-term liabilities	2,364,724	2,522,870
Total liabilities	21,562,208	22,439,432
Stockholders' equity (Note 6)
Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and December 31, 2025	0	0
Common stock, par value $.001; 350,000,000 shares authorized; 934,662 and 564,940 shares issued and outstanding as of June 30, 2026 and December 31, 2025	935	565
Additional paid-in capital	124,528,398	123,199,948
Accumulated deficit	(107,266,452)	(92,582,928)
Total PowerCompute stockholders' equity	17,262,881	30,617,585
Non-controlling interest	(1,738,372)	(1,740,791)
Total stockholders' equity	15,524,509	28,876,794
Total liabilities and stockholders’ equity	$ 37,086,717	$ 51,316,226