Beware: Ault Alliance's Bankruptcy is Highly LikelyOn April 17, 2024, Milton C. Ault (aka Milton Todd Ault III) announced a strong performance from its global defense and electronics subsidiary Gresham Worldwide.
At the same time, he disclosed to the SEC (10K form, April 17, 2024) that: […Management expects that ''AULT Alliance'' existing cash and cash equivalents, accounts receivable and marketable securities as of December 31, 2023, will not be sufficient to enable the Company to fund its anticipated level of operations through one year from the date these financial statements are issued….]
When looking at Ault Alliance financial statements, it is easy to know why:
| Item | Dec 31, 2023 / USD | Dec 31, 2022/ USD |
| Total assets | 299,190,000 | 561,514,000 |
| Total liabilities | 240,290,000 | 337,526,000 |
| Total stockholders’ equity | 58,900,000 | 223,988,000 |
| Total comprehensive loss | (233,398,000) | (183,204,000) |
Net losses increased; equity decreased. It is highly likely that Ault Alliance will go bankrupt in 2024. So, you could expect more stock dilution.
Do not believe the rosy picture Mr. Ault is conveying. On Nov 30th, 2022, Mr. Ault announced revenue guidance of more than $200 M for 2023. It only made $156M as per the SEC 10K form for April 17, 2024.
Do not believe bitcoin mining will save the company. As per the SEC (10K form, April 17, 2024) Ault Alliance [as of December 31, 2023…held 16.7 Bitcoins valued at $0.5 million…mining operations generated a net loss of $2.6 million and revenue of $33.1 million during the year ended December 31, 2023, compared to a net loss of $91.6 million and revenue of $16.7 million during the year ended December 31, 2022…]