REVISION OF CERTAIN PRIOR PERIOD AMOUNTS
|9 Months Ended|
Sep. 30, 2022
|Accounting Changes and Error Corrections [Abstract]|
|REVISION OF CERTAIN PRIOR PERIOD AMOUNTS||
NOTE 12 –REVISION OF CERTAIN PRIOR PERIOD AMOUNTS
We have revised amounts reported in previously issued financial statements for the periods presented in this Quarterly report on Form 10-Q related to an immaterial error. The error relates to the non-consolidation of an investment fund as described below. We evaluated the aggregate effects of the errors to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the errors were not material to the previously issued financial statements and disclosures included in our Annual Reports on Form 10-K for the years ended December 31, 2021, or for any quarterly periods included therein or through our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022.
On January 25, 2021, the Company entered into a limited partnership agreement with NYDIG Digital Assets Fund III, LP (“Fund”) whereas the Fund purchased approximately 4,812.66 bitcoin at an aggregate purchase price of $150 million. On June 10, 2022 the company withdrew approximately 4,768.5 bitcoin from the investment fund and the Fund was subsequently terminated. During the period of time when the company held its investment in the Fund, it accounted for the results of the Fund, in their entirety, as a single line item on the balance sheet (“Digital currencies held in fund”), statements of operations and statements of cash flows (“Change in fair value of digital currencies held in fund”). Subsequent to the termination of the Fund, the Company concluded that this accounting was incorrect and that it must consolidate the Fund, showing any assets, liabilities and expenses of the Fund as separate components of its financial statements.
The correction of this error has resulted in revisions to certain line items on the balance sheet as of December 31, 2021, the statements of operations for the three and nine months ended September 30, 2021, and the statement of cash flows for the nine-month period ended September 30, 2021. A reconciliation of the various financial statement captions that have been revised from the previous period presentation follows:
SCHEDULE OF RESTATEMENTS AND RECLASSIFICATIONS
The entire disclosure for reporting error correction.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef