Ecoark Announces Operating Results for Q1 Fiscal 2022 and Full-Year Increases Financial Guidance

 Ecoark expects to exceed previously issued full-year guidance for fiscal 2022

SAN ANTONIO, Aug. 16, 2021 (GLOBE NEWSWIRE) — Ecoark Holdings, Inc. (“Ecoark”) (NASDAQ: ZEST), today announced the following operating results for the first quarter of fiscal 2022 ended June 30, 2021.

  • Achieved revenue of $6.9 million, reflecting an approximately three-fold increase compared to $2.3 million in the prior year period
  • Generated gross profit of $2.9 million, up from $1.2 million in the prior year period and reflecting gross margins of 42%
  • Reported net income of $2.6 million, or $0.112 per basic and $0.097 per diluted share versus a net loss of $21.2 million or $1.154 loss per basic and diluted share in the prior year period. The net income for the first quarter of fiscal 2022 resulted from a non-cash gain of approximately $5.0 million due primarily to the change in fair value of derivative liabilities.
  • Exited the first quarter of fiscal 2022 with cash on hand of $0.84 million versus $1.8 million in the prior year quarter
  • Reported Stockholders’ equity of $20.7 million as of June 30, 2021, versus a stockholders’ deficit of $2.7 million as of June 30, 2020
  • Subsequent to June 30, 2021, Ecoark’s common stock began trading on The Nasdaq Capital Market and it raised $18.2 million in net proceeds from a registered direct offering

“We continue to grow and expand our operations, as evidenced by a 25% sequential increase in our revenue for the first quarter of fiscal 2022”, stated Randy May, Chief Executive Officer of Ecoark.  “Our team continues to actively pursue additional opportunities to generate value, including Ecoark’s recently announced investment in our cryptocurrency mining beta site.”

Update on Outlook for Fiscal 2022

The Company currently expects Trend Discovery to generate revenue and cash flow from operations of approximately $4.1 million and $2.5 million for full-year fiscal 2022. This reflects an increase from the Company’s previously issued guidance of $2.6 million and $1.1 million, respectively for full-year fiscal 2022.  The increase in revenue and cash flow expectations are primarily driven by forecasted contribution from Company’s recently announced 50 megawatt cryptocurrency mining beta site being developed in Texas. The project is being developed within Trend Discovery’s wholly owned subsidiary, Bitstream Mining LLC (“Bitstream”), with commercialization expected during the second quarter of fiscal 2022, subject to market conditions and availability of mining equipment.

Based on current West Texas Intermediate (“WTI”) crude oil prices of approximately $70 per barrel, Ecoark expects its energy business (Banner Midstream) to generate revenue and cash flow from operations of approximately $26.3 million and $6.3 million, respectively for full-year fiscal 2022.  This is consistent with previously issued guidance for Banner Midstream.  The Company, however, may revise this guidance in the following quarters based on the results from its continuing drilling program and potential volatility in WTI pricing.

Zest Labs continues to pursue several in process potential licensing agreements with large customers. Potential revenue from licensing agreements is not included in the Company’s outlook for fiscal 2022.

Ecoark is not providing guidance on its consolidated results of operations or earnings per share  for fiscal 2022 due to the inability to accurately forecast the charges resulting from volatility related to their fair value adjustments in warrant derivative liabilities.


About Ecoark Holdings, Inc.

Founded in 2011, Ecoark is a diversified holding company. The company has three wholly owned subsidiaries: Zest Labs, Inc. (“Zest Labs”), Banner Midstream Corp (“Banner Midstream”) and Trend Discovery Holdings Inc. (“Trend Discovery”). Zest Labs, offers the Zest Fresh™ solution, a breakthrough approach to quality management of fresh food, is specifically designed to help substantially reduce the $161 billion amount of food loss the U.S. experiences each year. Banner Midstream is engaged in oil and gas exploration, production, and drilling operations on over 30,000 cumulative acres of active mineral leases in Texas, Louisiana, and Mississippi. Banner Midstream also provides transportation and logistics services and procures and finances equipment to oilfield transportation services contractors. In addition to leading our new business opportunity, Trend Discovery invests in a select number of early-stage startups each year as part of the fund’s Venture Capital strategy; we are open-minded investors with a founder-first mentality. Trend Discovery manages the fund, Trend Discovery LP, which has an audited track record of uncorrelated outperformance of the S&P 500 since inception.


ZEST FRESH™ and Zest Labs™ are trademarks of Zest Labs, Inc.


Forward-looking Statements


This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to our expectations with respect to full-year financial guidance for the 2022 fiscal year, the anticipated fiscal 2022 changes in operating results by segment and the drivers for such changes, including expected strong operating results in the transportation division, additional drilling projects, the development of a cryptocurrency mining operation in Texas, the anticipated timing of its commercialization,  and other statements that are not statements of historical fact. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors, such as market and other conditions, many of which are outside management’s control. Important factors that could cause actual results to differ from those in the forward-looking statements include, without limitation, the risks and uncertainties arising from the adverse impact of the COVID-19 pandemic on our Company and the national and global economy, political and societal pressures which adversely affect the oil and gas industry, the cost of drilling and the availability and cost of additional capital, changes in applicable laws and regulations, fluctuations in oil and gas prices, general risks associated with the drilling and production activities, the possibility of adverse economic, business, competitive factors, and the risks and uncertainties related to the proposed digital assets business, including our ability to execute a binding power contract when expected on the terms acceptable to us, or at all, our ability to procure the necessary high speed computers needed for cryptocurrency mining in a timely manner, including due to the international semiconductor shortage, our limited experience in commercial scale cryptocurrency mining, intense competition in the cryptocurrency mining market, potential future legislation or regulatory initiative limiting the use of digital assets as a medium of exchange, significant volatility of the price of digital assets, and their potentially limited liquidity. Additional risks and uncertainties are identified and discussed in Ecoark’s filings with the SEC, including the Annual Report on Form 10-K for the fiscal year ended March 31, 2021 and prospectus supplement dated August 4, 2021. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Additional factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.



Investor Relations:
Marc Silverberg