Exhibit 99.1
Datacentrex
Reports Second Quarter 2026 Financial Results;
Ends
Quarter with $51.9 Million in Cash and No Debt
| |
● |
Revenue
of $1.9 million and positive gross profit despite higher power costs and challenging digital asset market conditions |
| |
|
|
| |
● |
GAAP
net loss of $5.5 million; Net Cash Burn of approximately $61,000, an improvement of approximately 88% from the first quarter of 2026 |
| |
|
|
| |
● |
Cash
and digital assets totaled approximately $57.9 million as of June 30, 2026 |
August
12, 2026 – Datacentrex, Inc. (“Datacentrex” or the “Company”) (Nasdaq: DTCX), a diversified technology-driven
enterprise operating a digital asset mining business, today reported financial results for the second quarter ended June 30, 2026.
“Second-quarter
results reflected a challenging operating environment, particularly higher power costs and continued volatility in digital asset markets,
which affected gross margin and reported earnings,” said Parker Scott, Chief Executive Officer of Datacentrex. “Despite these
pressures, our mining operations remained gross-profit positive, and our Adjusted EBITDA loss improved sequentially to approximately
$1.3 million from approximately $1.7 million in the first quarter. Excluding non-cash losses on digital assets, and after $597,000 of
net interest income, our Net Cash Burn for the quarter was approximately $61,000, or nearly breakeven, compared with approximately $496,000
in the first quarter of 2026.”
“We
ended June with $51.9 million in cash, approximately $6.0 million in digital assets and no debt,” Scott continued. “This
liquidity allows us to remain patient and disciplined as we evaluate opportunities to improve fleet economics, expand our compute capacity
and deploy capital across the digital infrastructure landscape. Our priority is to pursue opportunities that we believe offer attractive
risk-adjusted returns and can create durable value for our stockholders.”
Second
Quarter 2026 Financial Highlights (unaudited)
| |
● |
Revenue
was approximately $1.9 million, compared with approximately $1.9 million in the second quarter of 2025. |
| |
|
|
| |
● |
Net
Cash Burn, a non-GAAP measure presented for the first time this quarter, was approximately $61,000, compared with approximately $496,000
in the first quarter of 2026 and net cash generation of approximately $561,000 in the second quarter of 2025. Net Cash Burn excludes
approximately $1.3 million of net realized and unrealized losses on digital assets and is presented after approximately $597,000
of net interest income. See the reconciliation table below. |
| |
|
|
| |
● |
Gross
profit was approximately $205,000, representing a gross margin of 10.7%, compared with approximately $931,000 and a gross margin
of 48.2% in the prior-year period. The reduction primarily reflected increased power rates for the Company’s deployed mining
fleet. |
| |
● |
Total
operating expenses were approximately $5.0 million, compared with approximately $2.4 million in the prior-year period. Second-quarter
2026 operating expenses included approximately $3.3 million of depreciation and amortization, approximately $851,000 of stock-based
compensation and approximately $863,000 of general and administrative expenses. |
| |
|
|
| |
● |
Reported
a GAAP net loss of approximately $5.5 million, or $(0.14) per basic and diluted share, compared with a net loss of approximately
$1.5 million in the second quarter of 2025. The second-quarter 2026 net loss included approximately $3.3 million of depreciation
and amortization, approximately $851,000 of stock-based compensation and approximately $1.3 million of net realized and unrealized
losses on digital assets, partially offset by approximately $597,000 of net interest income. |
| |
|
|
| |
● |
Reported
an Adjusted EBITDA loss of approximately $1.3 million, compared with an Adjusted EBITDA loss of approximately $1.7 million in the
first quarter of 2026, representing a sequential improvement of approximately 22%. |
| |
|
|
| |
● |
Ended
the quarter with approximately $51.9 million in cash and cash equivalents and approximately $6.0 million in digital assets, representing
combined cash and digital assets of approximately $57.9 million. |
Second
Quarter 2026 Operating Highlights
| |
● |
Operated
3,085 Scrypt ASIC miners across four geographically diversified colocation facilities, all located in the United States. |
| |
|
|
| |
● |
Maintained
approximately 43.2 TH/s of aggregate deployed hashrate at full uptime and approximately 12.5 MW of deployed power capacity. |
| |
|
|
| |
● |
Maintained
a stable operating fleet during the quarter, with no material additions or removals and no changes to colocation arrangements or
contracted power capacity. |
| |
|
|
| |
● |
Continued
to support Litecoin, Dogecoin and other Scrypt-based blockchain networks through merged-mining architecture, allowing the Company’s
compute assets to validate multiple blockchain networks without incremental energy consumption. |
| |
|
|
| |
● |
Continued
to monetize hashrate primarily through marketplace channels in which settlement is typically denominated in Bitcoin. |
About
Datacentrex, Inc.
Datacentrex,
Inc. is a diversified technology-driven enterprise operating a digital asset mining business and transitioning to potential high-growth
sectors including digital-asset infrastructure, data-center operations and quantum-computing-adjacent technologies. Datacentrex, Inc.
intends to pursue selective investments, partnerships, and acquisitions to drive innovation and value creation. For additional information,
please refer to the Company’s filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov.
Visit
Datacentrex’s investor relations website.
Non-GAAP
Financial Measures
This
press release includes Adjusted EBITDA and Net Cash Burn, each of which is a non-GAAP financial measure. The Company defines Adjusted
EBITDA as net income (loss), adjusted for impacts of interest expense, income tax provision or benefit and depreciation and amortization,
and non-cash stock-based compensation. The Company defines Net Cash Burn as net income (loss), adjusted for depreciation and amortization,
non-cash stock-based compensation, income tax provision or benefit, and net realized and unrealized gains and losses on digital assets.
Unlike Adjusted EBITDA, Net Cash Burn is not adjusted for interest, because management uses Net Cash Burn to assess the periodic cost
of sustaining the business after the benefit of interest earned on the Company’s cash balances; that net interest amount is shown
as a memorandum line in the reconciliation tables below and should not be added to Net Cash Burn a second time. Both gains and losses
on digital assets are excluded from Net Cash Burn symmetrically, and the definitions are applied consistently across the periods presented.
Because the Company’s mining revenue is settled in digital assets rather than in cash, Net Cash Burn reflects the combined change
in cash and digital assets attributable to operations; it is not a measure of liquidity and is not a substitute for net cash used in
operating activities, which was $4,991,617 for the six months ended June 30, 2026. Adjusted EBITDA and Net Cash Burn are not measures
calculated in accordance with U.S. GAAP and should not be considered in isolation or as substitutes for net income (loss) or any other
measure prepared in accordance with U.S. GAAP. Reconciliations of Adjusted EBITDA and Net Cash Burn to net loss, the most directly comparable
U.S. GAAP measure, for the three and six month periods presented are provided in the financial tables included in this press release
as net income (loss), adjusted for impacts of interest expense, income tax provision or benefit and depreciation and amortization, and
non-cash stock-based compensation.
Forward-Looking
Statements Disclaimer
This
press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements
regarding Datacentrex’s future financial condition, results of operations, business operations and business prospects, are forward-looking
statements. These statements are identified by the use of the words “could,” “believe,” “anticipate,”
“intend,” “estimate,” “expect,” “may,” “continue,” “predict,”
“potential,” “project” and similar expressions that are intended to identify forward-looking statements. All
forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions
that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties
and assumptions include, but are not limited to, Datacentrex’s ability to successfully achieve its strategic initiatives, including
its expectation that it will be able to secure additional miners; unexpected costs, charges or expenses resulting from the merger; potential
adverse reactions or changes to business relationships resulting from the completion of the merger; risks related to the inability of
Datacentrex to successfully operate as a combined business; risks associated with the possible failure to realize certain anticipated
benefits of the merger, including with respect to future financial and operating results; competition in Datacentrex’s markets;
risks associated with Datacentrex’s investment strategy, including digital asset market volatility, cybersecurity and custody of
digital assets, potential changes in laws or accounting standards relating to digital assets and regulatory developments affecting digital
assets; and volatility of Datacentrex’s stock price. Forward-looking statements also are affected by the risk factors described
in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including in the Company’s
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Investors and security holders are urged
to read these documents free of charge on the SEC’s website at: http://www.sec.gov. The risks and uncertainties that Datacentrex
has described are not the only ones Datacentrex faces. Additional risks and uncertainties not presently known to Datacentrex or that
Datacentrex currently deems immaterial may also affect Datacentrex’s operations. All forward-looking statements speak only as of
the date of this press release. You should not place undue reliance on these forward-looking statements. Although the Company believes
that its plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, it
can give no assurances that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve
significant risks and uncertainties (some of which are beyond Datacentrex’s control) and assumptions that could cause actual results
to differ materially from historical experience. Actual results may differ materially from those in the forward-looking statements and
the trading price for Datacentrex’s common stock may fluctuate significantly. Except as required by law, Datacentrex undertakes
no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise,
after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Company
Contact
Datacentrex
Investor Relations
ir@datacentrex.com
800-403-6150
DATACENTREX,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
| | |
June 30, 2026 (Unaudited) | | |
December 31, 2025 | |
| | |
| | |
| |
| ASSETS | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 51,884,089 | | |
$ | 38,919,486 | |
| Digital assets, at fair value | |
| 5,985,071 | | |
| 4,430,202 | |
| Other receivable | |
| 16,873 | | |
| - | |
| Prepaid expenses | |
| 577,510 | | |
| 468,817 | |
| Total current assets | |
| 58,463,543 | | |
| 43,818,505 | |
| | |
| | | |
| | |
| Equipment, net | |
| 12,028,842 | | |
| 18,537,452 | |
| Capitalized software costs, net | |
| 138,127 | | |
| 264,193 | |
| Deposits for equipment | |
| 3,600,100 | | |
| 3,600,100 | |
| Other assets | |
| 621,660 | | |
| 621,660 | |
| Total assets | |
$ | 74,852,272 | | |
$ | 66,841,910 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable and accrued expenses | |
$ | 318,463 | | |
$ | 594,658 | |
| Total current liabilities | |
| 318,463 | | |
| 594,658 | |
| | |
| | | |
| | |
| Commitments and Contingencies (Note 7) | |
| | | |
| | |
| Stockholders’ equity: | |
| | | |
| | |
| | |
| | | |
| | |
| Preferred stock - Series A, $0.001 par value, $45.00 stated value, 1,000,000 shares authorized; 163,767 and 158,420 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | |
| 163 | | |
| 158 | |
| Preferred stock - Series D, $0.001 par value, $4.34 stated value, 1,000,000 shares authorized; 13,914 and 16,240 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | |
| 14 | | |
| 16 | |
| | |
| | | |
| | |
| Common stock, $0.001 par value, 250,000,000 shares authorized; 39,643,626 and 30,375,530 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | |
| 39,643 | | |
| 30,375 | |
| Treasury stock, at cost – 59,191 shares | |
| (274,231 | ) | |
| (274,231 | ) |
| Additional paid in capital | |
| 94,891,169 | | |
| 74,993,819 | |
| Accumulated deficit | |
| (20,122,949 | ) | |
| (8,502,885 | ) |
| Total stockholders’ equity | |
| 74,533,809 | | |
| 66,247,252 | |
| | |
| | | |
| | |
| Total liabilities and stockholders’ equity | |
$ | 74,852,272 | | |
$ | 66,841,910 | |
DATACENTREX,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
June 30, 2026 | | |
June 30, 2025 | | |
June 30, 2026 | | |
June 30, 2025 | |
| | |
| | |
| | |
| | |
| |
| Revenues | |
$ | 1,913,779 | | |
$ | 1,928,587 | | |
$ | 4,092,987 | | |
$ | 2,088,212 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cost of revenue | |
| 1,708,524 | | |
| 998,062 | | |
| 3,374,852 | | |
| 1,074,032 | |
| | |
| | | |
| | | |
| | | |
| | |
| Gross profit | |
| 205,255 | | |
| 930,525 | | |
| 718,135 | | |
| 1,014,180 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating Expenses: | |
| | | |
| | | |
| | | |
| | |
| General and administrative expenses | |
| 863,281 | | |
| 193,099 | | |
| 1,950,490 | | |
| 394,970 | |
| Depreciation and amortization | |
| 3,287,326 | | |
| 2,162,531 | | |
| 6,574,585 | | |
| 2,352,011 | |
| Stock based compensation | |
| 850,858 | | |
| - | | |
| 2,006,924 | | |
| - | |
| Total Operating Expenses | |
| 5,001,465 | | |
| 2,355,630 | | |
| 10,531,999 | | |
| 2,746,981 | |
| | |
| | | |
| | | |
| | | |
| | |
| Loss From Operations | |
| (4,796,210 | ) | |
| (1,425,105 | ) | |
| (9,813,864 | ) | |
| (1,732,801 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Other Income (Expense): | |
| | | |
| | | |
| | | |
| | |
| Net realized and unrealized gains (losses), digital assets | |
| (1,269,425 | ) | |
| 72,381 | | |
| (2,481,598 | ) | |
| 71,482 | |
| Other income | |
| - | | |
| - | | |
| 6,467 | | |
| - | |
| Interest income (expense), net | |
| 597,278 | | |
| (176,506 | ) | |
| 668,931 | | |
| (176,506 | ) |
| Total Other Income (Expense) | |
| (672,147 | ) | |
| (104,125 | ) | |
| (1,806,200 | ) | |
| (105,024 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net Loss Before Income Taxes | |
| (5,468,357 | ) | |
| (1,529,230 | ) | |
| (11,620,064 | ) | |
| (1,837,825 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Provision for Income Taxes (Benefit) | |
| - | | |
| - | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | |
| Net Loss | |
$ | (5,468,357 | ) | |
$ | (1,529,230 | ) | |
$ | (11,620,064 | ) | |
$ | (1,837,825 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net Loss Per Common Share: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | (0.14 | ) | |
$ | - | | |
$ | (0.32 | ) | |
$ | - | |
| Diluted | |
$ | (0.14 | ) | |
$ | - | | |
$ | (0.32 | ) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted Average Common Shares Outstanding: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 39,201,327 | | |
| - | | |
| 36,232,290 | | |
| - | |
| Diluted | |
| 39,201,327 | | |
| - | | |
| 36,232,290 | | |
| - | |
Reconciliation
of Net Loss to Adjusted EBITDA and Net Cash Burn (Unaudited)
(in
dollars)
| | |
For the Three Months Ended | |
| | |
June 30, 2026 | | |
March 31, 2026 | | |
June 30, 2025 | |
| Net Loss | |
$ | (5,468,357 | ) | |
$ | (6,151,707 | ) | |
$ | (1,529,230 | ) |
| | |
| | | |
| | | |
| | |
| Depreciation | |
| 3,287,326 | | |
| 3,287,259 | | |
| 2,162,531 | |
| | |
| | | |
| | | |
| | |
| Stock based compensation | |
| 850,858 | | |
| 1,156,066 | | |
| - | |
| | |
| | | |
| | | |
| | |
| Interest expense | |
| - | | |
| - | | |
| 176,506 | |
| Adjusted EBITDA | |
$ | (1,330,173 | ) | |
$ | (1,708,382 | ) | |
$ | 809,807 | |
| Less: interest expense added back above | |
| - | | |
| - | | |
| (176,506 | ) |
| Net realized and unrealized (gains) losses on digital assets | |
| 1,269,425 | | |
| 1,212,173 | | |
| (72,381 | ) |
| Net Cash Burn (non-GAAP) | |
$ | (60,748 | ) | |
$ | (496,209 | ) | |
$ | 560,920 | |
| Memo: interest income (expense), net, included above | |
| 597,278 | | |
| 71,653 | | |
| (176,506 | ) |
Reconciliation
of Net Loss to Adjusted EBITDA and Net Cash Burn – Six Months (Unaudited)
| | |
For the Six Months Ended | |
| | |
June 30, 2026 | | |
June 30, 2025 | |
| Net Loss | |
$ | (11,620,064 | ) | |
$ | (1,837,825 | ) |
| Depreciation | |
| 6,574,585 | | |
| 2,352,011 | |
| Stock based compensation | |
| 2,006,924 | | |
| - | |
| Interest expense | |
| - | | |
| 176,506 | |
| Adjusted EBITDA | |
$ | (3,038,555 | ) | |
$ | 690,692 | |
| Less: interest expense added back above | |
| - | | |
| (176,506 | ) |
| Net realized and unrealized (gains) losses on digital assets | |
| 2,481,598 | | |
| (71,482 | ) |
| Net Cash Burn (non-GAAP) | |
$ | (556,957 | ) | |
$ | 442,704 | |
| Memo: interest income (expense), net, included above | |
| 668,931 | | |
| (176,506 | ) |
Adjusted
EBITDA for the second quarter of 2026 includes $1,269,425 of net realized and unrealized losses on digital assets, which are reflected
in the GAAP net loss and are not added back under the Company’s Adjusted EBITDA definition. Net Cash Burn excludes those amounts.
Amounts for the three months ended March 31, 2026 represent the six months ended June 30, 2026 less the three months ended June 30, 2026,
each as reported in the Company’s Quarterly Reports on Form 10-Q; both periods are presented in the tables above. Net Cash Burn
is not adjusted for interest and therefore includes net interest income of $597,278 for the three months ended June 30, 2026, which is
shown as a memorandum line above.
For
the three months ended June 30, 2026 , the Company had $672,147 in other expense, net. This included net unrealized and realized
loss on digital assets of $1,269,425 and interest income, net, of $597,278. For the three months ended June 30, 2025, the Company had
$104,125 in other expense, net, consisting of net unrealized and realized gain on digital assets of $72,381 and interest expense, net
of $176,506.
