RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| Accounting Changes and Error Corrections [Abstract] |
|
| ERROR CORRECTION OF REVENUE RECOGNITION |
The
impacts of the Revenue Recognition – Principal versus Agent correction are as follows:
ERROR CORRECTION OF REVENUE RECOGNITION
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
Year ended
December 31,
2022
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
December 31,
2022
|
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
5 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
| Cost of revenues - energy, hosting and other |
|
|
(5 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
| Net income (loss) impact |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| (in thousands) |
|
March 31,
2021
(Restated)
|
|
|
June 30,
2021
(Restated)
|
|
|
September 30,
2021
(Restated)
|
|
|
December 31,
2021
|
|
|
Year ended
December 31,
2021
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31,
2021
(Restated)
|
|
|
June 30,
2021
(Restated)
|
|
|
September 30,
2021
(Restated)
|
|
|
December 31,
2021
(Restated)
|
|
|
December 31,
2021
(Restated)
|
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
— |
|
|
|
— |
|
|
|
624 |
|
|
|
8,075 |
|
|
|
8,699 |
|
| Cost of revenues - energy, hosting and other |
|
|
— |
|
|
|
— |
|
|
|
(624 |
) |
|
|
(8,075 |
) |
|
|
(8,699 |
) |
| Net income (loss) impact |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
| ERROR CORRECTION OF DIGITAL ASSETS |
The
impacts of the Impairment of Digital Assets correction are as follows:
ERROR CORRECTION OF DIGITAL ASSETS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
As of (unaudited) |
|
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| Consolidated Balance Sheets Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital assets |
|
|
(6,204 |
) |
|
|
(9,344 |
) |
|
|
(5,433 |
) |
|
|
— |
|
| Digital assets, restricted - Current assets |
|
|
— |
|
|
|
(3,657 |
) |
|
|
— |
|
|
|
— |
|
| Digital assets, restricted - Other assets |
|
|
— |
|
|
|
— |
|
|
|
(3,039 |
) |
|
|
— |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
Year ended
December 31,
2022
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
December 31,
2022
|
|
Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impairment of digital assets |
|
|
(3,756 |
) |
|
|
(6,797 |
) |
|
|
4,529 |
|
|
|
— |
|
|
|
(6,024 |
) |
| Net income (loss) impact |
|
|
(3,756 |
) |
|
|
(6,797 |
) |
|
|
4,529 |
|
|
|
— |
|
|
|
(6,024 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
As
of (unaudited) |
|
| (in
thousands) |
|
March
31, 2021
(Restated) |
|
|
June
30, 2021
(Restated) |
|
|
September
30, 2021
(Restated) |
|
|
December
31, 2021
(Restated) |
|
| Consolidated
Balance Sheets Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital
assets |
|
|
(204 |
) |
|
|
(2,148 |
) |
|
|
(1,597 |
) |
|
|
(2,448 |
) |
| (in thousands) |
|
March 31,
2021
(Restated)
|
|
|
June 30,
2021
(Restated)
|
|
|
September 30,
2021
(Restated)
|
|
|
December 31,
2021
|
|
|
Year ended
December 31,
2021
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31,
2021
(Restated)
|
|
|
June 30,
2021
(Restated)
|
|
|
September 30,
2021
(Restated)
|
|
|
December 31,
2021
(Restated)
|
|
|
December 31,
2021
(Restated)
|
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impairment of digital assets |
|
|
(204 |
) |
|
|
(1,944 |
) |
|
|
551 |
|
|
|
(851 |
) |
|
|
(2,448 |
) |
| Net income (loss) impact |
|
|
(204 |
) |
|
|
(1,944 |
) |
|
|
551 |
|
|
|
(851 |
) |
|
|
(2,448 |
) |
|
| ERROR CORRECTION OF FUNDS |
The
impacts of the Fund errors are as follows:
ERROR
CORRECTION OF FUNDS
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| |
|
|
|
| |
|
As of (unaudited) |
|
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| Consolidated Balance Sheets Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
31 |
|
|
|
(500 |
) |
|
|
— |
|
|
|
— |
|
| Digital assets held in Fund |
|
|
202 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Accrued expenses |
|
|
233 |
|
|
|
(500 |
) |
|
|
— |
|
|
|
— |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
Year ended
December 31,
2022
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
December 31,
2022
|
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and administrative expenses |
|
|
(214 |
) |
|
|
(221 |
) |
|
|
(234 |
) |
|
|
— |
|
|
|
(669 |
) |
| Realized and unrealized gains (losses) on digital assets held within Investment Fund |
|
|
(5,328 |
) |
|
|
(79,689 |
) |
|
|
— |
|
|
|
— |
|
|
|
(85,017 |
) |
| Change in fair value of digital assets held in Fund |
|
|
5,542 |
|
|
|
79,910 |
|
|
|
234 |
|
|
|
— |
|
|
|
85,686 |
|
| Net income (loss) impact |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| (in thousands) |
|
March 31, 2021
(Restated) |
|
|
June 30, 2021
(Restated) |
|
|
September 30, 2021
(Restated) |
|
|
December 31, 2021 |
|
| |
|
As of (unaudited) |
|
| (in thousands) |
|
March 31, 2021
(Restated) |
|
|
June 30, 2021
(Restated) |
|
|
September 30, 2021
(Restated) |
|
|
December 31, 2021
(Restated) |
|
| Consolidated Balance Sheets Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
— |
|
|
|
38 |
|
|
|
— |
|
|
|
34 |
|
| Digital assets held in Fund |
|
|
205 |
|
|
|
111 |
|
|
|
144 |
|
|
|
137 |
|
| Accrued expenses |
|
|
205 |
|
|
|
149 |
|
|
|
144 |
|
|
|
171 |
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31,
2021
(Restated) |
|
|
June 30,
2021
(Restated) |
|
|
September 30,
2021
(Restated) |
|
|
December 31,
2021
(Restated) |
|
|
December 31,
2021
(Restated) |
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and administrative expenses |
|
|
(205 |
) |
|
|
(203 |
) |
|
|
(237 |
) |
|
|
(273 |
) |
|
|
(918 |
) |
| Realized and unrealized gains (losses) on digital assets held within Investment Fund |
|
|
132,028 |
|
|
|
(114,705 |
) |
|
|
42,087 |
|
|
|
15,286 |
|
|
|
74,696 |
|
| Change in fair value of digital assets held in Fund |
|
|
(131,823 |
) |
|
|
114,908 |
|
|
|
(41,850 |
) |
|
|
(15,013 |
) |
|
|
(73,778 |
) |
| Net income (loss) impact |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
| ERROR CORRECTION OF DISPOSAL OF ASSETS |
The impacts of this error are as follows:
ERROR CORRECTION OF DISPOSAL OF ASSETS
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| |
|
As of (unaudited) |
|
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| Consolidated Balance Sheets Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
— |
|
|
|
(4,122 |
) |
|
|
(6,237 |
) |
|
|
— |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
Year ended
December 31,
2022
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
December 31,
2022
|
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of equipment, net of disposals |
|
|
— |
|
|
|
(4,122 |
) |
|
|
(2,115 |
) |
|
|
— |
|
|
|
(6,237 |
) |
| Net income (loss) impact |
|
|
— |
|
|
|
(4,122 |
) |
|
|
(2,115 |
) |
|
|
— |
|
|
|
(6,237 |
) |
|
| ERROR CORRECTION OF OTHER ADJUSTMENTS |
The
Company corrected other errors relating to (i) accruals for legal expenses, (ii) valuation of bifurcated derivatives related to the
SAFE investments, (iii) accumulated comprehensive income and other income, and (iv) classification of prepaid expenses between
short-term and long-term, as follows:
ERROR CORRECTION OF OTHER ADJUSTMENTS
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| |
|
As of (unaudited) |
|
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| Consolidated Balance Sheets Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prepaid expenses and other current assets |
|
|
(2,000 |
) |
|
|
(1,000 |
) |
|
|
(1,000 |
) |
|
|
— |
|
| Investments |
|
|
20 |
|
|
|
(10 |
) |
|
|
(10 |
) |
|
|
— |
|
| Long term prepaids |
|
|
2,000 |
|
|
|
1,000 |
|
|
|
1,000 |
|
|
|
— |
|
| Accrued expenses |
|
|
284 |
|
|
|
284 |
|
|
|
78 |
|
|
|
— |
|
| Accumulated other comprehensive loss |
|
|
451 |
|
|
|
451 |
|
|
|
451 |
|
|
|
— |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
Year ended
December 31,
2022
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
December 31,
2022
|
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and administrative expenses |
|
|
— |
|
|
|
— |
|
|
|
206 |
|
|
|
— |
|
|
|
206 |
|
| Other non-operating income (loss) |
|
|
20 |
|
|
|
(30 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
| Net income (loss) impact |
|
|
20 |
|
|
|
(30 |
) |
|
|
206 |
|
|
|
— |
|
|
|
196 |
|
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| |
|
As of (unaudited) |
|
| (in thousands) |
|
March 31, 2021
(Restated) |
|
|
June 30, 2021
(Restated) |
|
|
September 30, 2021
(Restated) |
|
|
December 31, 2021 |
|
| Consolidated Balance Sheets Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prepaid expenses and other current assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,000 |
) |
| Accounts payable |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,000 |
) |
| Accrued expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
284 |
|
| Accumulated other comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
451 |
|
| (in thousands) |
|
March 31,
2021
(Restated)
|
|
|
June 30,
2021
(Restated)
|
|
|
September 30,
2021
(Restated)
|
|
|
December 31,
2021
|
|
|
Year ended
December 31,
2021
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31, 2021
(Restated) |
|
|
June 30,
2021
(Restated)
|
|
|
September 30, 2021
(Restated) |
|
|
December 31, 2021
(Restated) |
|
|
December 31, 2021
(Restated) |
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and administrative expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(284 |
) |
|
|
(284 |
) |
| Net income (loss) impact |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(284 |
) |
|
|
(284 |
) |
| Foreign currency translation adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(451 |
) |
|
|
(451 |
) |
| Comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(735 |
) |
|
|
(735 |
) |
|
| ERROR CORRECTION OF INCOME TAX EFFECT |
As
a result of the adjustments to the restated financial statements presented, our income tax expense decreased by approximately $781
thousand for the year ended December 31, 2021,
primarily due to changes in deferred taxes as a result of the cumulative impact of the restatement. See NOTE 7 – INCOME TAXES,
for additional details regarding income taxes.
ERROR
CORRECTION OF INCOME TAX EFFECT
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| |
|
As of (unaudited) |
|
| (in thousands) |
|
March 31, 2022
(Restated) |
|
|
June 30, 2022
(Restated) |
|
|
September 30, 2022
(Restated) |
|
|
December 31, 2022 |
|
| Consolidated Balance Sheets Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accrued expenses |
|
|
— |
|
|
|
— |
|
|
|
(33 |
) |
|
|
— |
|
| Deferred tax liabilities |
|
|
(1,711 |
) |
|
|
(1,134 |
) |
|
|
(1,223 |
) |
|
|
— |
|
| (in thousands) |
|
March 31,
2022
(Restated)
|
|
|
June 30,
2022
(Restated)
|
|
|
September 30,
2022
(Restated)
|
|
|
December 31,
2022
|
|
|
Year ended
December 31,
2022
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31, 2022 (Restated) |
|
|
June 30,
2022 (Restated)
|
|
|
September 30, 2022 (Restated) |
|
|
December 31, 2022 |
|
|
December 31, 2022
|
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax benefit (expense) |
|
|
930 |
|
|
|
(577 |
) |
|
|
122 |
|
|
|
— |
|
|
|
475 |
|
| Net income (loss) impact |
|
|
930 |
|
|
|
(577 |
) |
|
|
122 |
|
|
|
— |
|
|
|
475 |
| (in thousands) |
|
March 31, 2021
(Restated) |
|
|
June 30, 2021
(Restated) |
|
|
September 30, 2021
(Restated) |
|
|
December 31, 2021 |
|
| |
|
As of (unaudited) |
|
| (in thousands) |
|
March 31, 2021
(Restated) |
|
|
June 30, 2021
(Restated) |
|
|
September 30, 2021
(Restated) |
|
|
December 31, 2021 |
|
| Consolidated Balance Sheets Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred tax liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(781 |
) |
| (in thousands) |
|
March 31,
2021
(Restated)
|
|
|
June 30,
2021
(Restated)
|
|
|
September 30,
2021
(Restated)
|
|
|
December 31,
2021
|
|
|
Year ended
December 31,
2021
|
|
| |
|
Three months ended (unaudited) |
|
|
Year ended |
|
| (in thousands) |
|
March 31, 2021
(Restated) |
|
|
June 30,
2021
(Restated)
|
|
|
September 30, 2021
(Restated) |
|
|
December 31, 2021
(Restated) |
|
|
December 31, 2021
(Restated) |
|
| Consolidated Statements of Comprehensive Income (Loss) Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax benefit (expense) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
781 |
|
|
|
781 |
|
| Net income (loss) impact |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
781 |
|
|
|
781 |
|
|
| SCHEDULE OF RESTATEMENTS |
SCHEDULE OF RESTATEMENTS
Restated
Consolidated Balance Sheets (in thousands)
| |
|
As Reported |
|
|
Restatement Adjustments |
|
|
Accounting Policy Adjustments |
|
|
As Restated |
|
| |
|
As of December 31, 2021 |
|
| (in thousands) |
|
As Reported |
|
|
Restatement Adjustments |
|
|
Accounting Policy Adjustments |
|
|
As Restated |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
268,522 |
|
|
$ |
34 |
|
|
$ |
— |
|
|
$ |
268,556 |
|
| Digital assets |
|
|
102,806 |
|
|
|
(2,448 |
) |
|
|
(5,133 |
) |
|
|
95,225 |
|
| Digital assets held in Fund |
|
|
223,779 |
|
|
|
137 |
|
|
|
— |
|
|
|
223,916 |
|
| Other receivable |
|
|
— |
|
|
|
— |
|
|
|
26,933 |
|
|
|
26,933 |
|
| Deposits |
|
|
34,458 |
|
|
|
— |
|
|
|
— |
|
|
|
34,458 |
|
| Digital assets, restricted |
|
|
20,437 |
|
|
|
— |
|
|
|
(20,437 |
) |
|
|
— |
|
| Prepaid expenses and other current assets |
|
|
38,148 |
|
|
|
(3,000 |
) |
|
|
— |
|
|
|
35,148 |
|
| Total current assets |
|
|
688,150 |
|
|
|
(5,277 |
) |
|
|
1,363 |
|
|
|
684,236 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
276,243 |
|
|
|
— |
|
|
|
— |
|
|
|
276,243 |
|
| Advances to vendors |
|
|
466,255 |
|
|
|
— |
|
|
|
— |
|
|
|
466,255 |
|
| Investments |
|
|
3,000 |
|
|
|
— |
|
|
|
— |
|
|
|
3,000 |
|
| Long term prepaids |
|
|
13,666 |
|
|
|
— |
|
|
|
— |
|
|
|
13,666 |
|
| Intangible assets, net |
|
|
931 |
|
|
|
— |
|
|
|
— |
|
|
|
931 |
|
| Total other assets |
|
|
760,095 |
|
|
|
— |
|
|
|
— |
|
|
|
760,095 |
|
| TOTAL ASSETS |
|
$ |
1,448,245 |
|
|
$ |
(5,277 |
) |
|
$ |
1,363 |
|
|
$ |
1,444,331 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
10,773 |
|
|
$ |
(3,000 |
) |
|
$ |
— |
|
|
$ |
7,773 |
|
| Accrued expenses |
|
|
2,155 |
|
|
|
455 |
|
|
|
— |
|
|
|
2,610 |
|
| Current portion of accrued interest |
|
|
867 |
|
|
|
— |
|
|
|
— |
|
|
|
867 |
|
| Total current liabilities |
|
|
13,795 |
|
|
|
(2,545 |
) |
|
|
— |
|
|
|
11,250 |
|
| Long-term liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Notes payable |
|
|
728,406 |
|
|
|
— |
|
|
|
— |
|
|
|
728,406 |
|
| Deferred tax liabilities |
|
|
23,021 |
|
|
|
(781 |
) |
|
|
335 |
|
|
|
22,575 |
|
| Total long-term liabilities |
|
|
751,427 |
|
|
|
(781 |
) |
|
|
335 |
|
|
|
750,981 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commitments and Contingencies |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Common stock |
|
|
10 |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
| Additional paid-in capital |
|
|
835,694 |
|
|
|
— |
|
|
|
— |
|
|
|
835,694 |
|
| Accumulated other comprehensive loss |
|
|
(451 |
) |
|
|
451 |
|
|
|
— |
|
|
|
— |
|
| Accumulated deficit |
|
|
(152,230 |
) |
|
|
(2,402 |
) |
|
|
1,028 |
|
|
|
(153,604 |
) |
| Total stockholders’ equity |
|
|
683,023 |
|
|
|
(1,951 |
) |
|
|
1,028 |
|
|
|
682,100 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
1,448,245 |
|
|
$ |
(5,277 |
) |
|
$ |
1,363 |
|
|
$ |
1,444,331 |
|
Restated
Consolidated Statements of Other Comprehensive Income (Loss)
| (in thousands, except share and per share data) |
|
As Reported |
|
|
Restatement Adjustments |
|
|
Accounting Policy Adjustments |
|
|
As Restated |
|
| |
|
Year ended December 31, 2021 |
|
| (in thousands, except share and per share data) |
|
As Reported |
|
|
Restatement Adjustments |
|
|
Accounting Policy Adjustments |
|
|
As Restated |
|
| Total revenues |
|
$ |
150,464 |
|
|
$ |
8,699 |
|
|
$ |
— |
|
|
$ |
159,163 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenues - energy, hosting and other |
|
|
(18,792 |
) |
|
|
(8,699 |
) |
|
|
— |
|
|
|
(27,491 |
) |
| Cost of revenues - depreciation and amortization |
|
|
(14,904 |
) |
|
|
— |
|
|
|
— |
|
|
|
(14,904 |
) |
| Total cost of revenues |
|
|
(33,696 |
) |
|
|
(8,699 |
) |
|
|
— |
|
|
|
(42,395 |
) |
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and administrative expenses |
|
|
(172,303 |
) |
|
|
(1,202 |
) |
|
|
(851 |
) |
|
|
(174,356 |
) |
| Impairment of digital assets |
|
|
(29,553 |
) |
|
|
(2,448 |
) |
|
|
1,671 |
|
|
|
(30,330 |
) |
| Realized and unrealized gains (losses) on digital assets loan receivable and digital assets |
|
|
14 |
|
|
|
— |
|
|
|
543 |
|
|
|
557 |
|
| Realized and unrealized gains (losses) on digital assets held within Investment Fund |
|
|
— |
|
|
|
74,696 |
|
|
|
— |
|
|
|
74,696 |
|
| Total operating expenses |
|
|
(201,842 |
) |
|
|
71,046 |
|
|
|
1,363 |
|
|
|
(129,433 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in fair value of digital assets held in Fund |
|
|
73,779 |
|
|
|
(73,779 |
) |
|
|
— |
|
|
|
— |
|
| Other non-operating income (loss) |
|
|
(307 |
) |
|
|
— |
|
|
|
19 |
|
|
|
(288 |
) |
| Interest expense |
|
|
(1,570 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,570 |
) |
| Income tax benefit (expense) |
|
|
(23,003 |
) |
|
|
781 |
|
|
|
(354 |
) |
|
|
(22,576 |
) |
| Net income (loss) |
|
$ |
(36,175 |
) |
|
$ |
(1,952 |
) |
|
$ |
1,028 |
|
|
$ |
(37,099 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share, basic and diluted: |
|
$ |
(0.36 |
) |
|
$ |
(0.02 |
) |
|
$ |
0.01 |
|
|
$ |
(0.37 |
) |
| Weighted average shares outstanding, basic and diluted: |
|
|
99,337,587 |
|
|
|
99,337,587 |
|
|
|
99,337,587 |
|
|
|
99,337,587 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency translation adjustments |
|
|
— |
|
|
|
(451 |
) |
|
|
— |
|
|
|
(451 |
) |
| Comprehensive income (loss) |
|
|
(36,175 |
) |
|
|
(2,403 |
) |
|
|
1,028 |
|
|
|
(37,550 |
) |
Restated
Consolidated Statements of Cash Flows (in thousands)
| (in thousands, except share and per share data) |
|
As Reported |
|
|
Restatement Adjustments |
|
|
Accounting Policy Adjustments |
|
|
As Restated |
|
| |
|
Year ended December 31, 2021 |
|
| (in thousands) |
|
As Reported |
|
|
Restatement Adjustments |
|
|
Accounting Policy Adjustments |
|
|
As Restated |
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(36,175 |
) |
|
|
(1,951 |
) |
|
|
1,028 |
|
|
|
(37,098 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
14,904 |
|
|
|
|
|
|
|
— |
|
|
|
14,904 |
|
| Deferred tax expense (benefit) |
|
|
23,021 |
|
|
|
(781 |
) |
|
|
335 |
|
|
|
22,575 |
|
| Realized and unrealized losses (gains) on digital assets held within Investment Fund |
|
|
— |
|
|
|
(74,696 |
) |
|
|
— |
|
|
|
(74,696 |
) |
| Realized and unrealized gains (losses) on digital assets loan receivable and digital assets |
|
|
(14 |
) |
|
|
— |
|
|
|
(543 |
) |
|
|
(557 |
) |
| Change in fair value of digital assets held in Investment Fund |
|
|
(73,779 |
) |
|
|
73,779 |
|
|
|
— |
|
|
|
— |
|
| Impairment of digital assets |
|
|
29,553 |
|
|
|
2,447 |
|
|
|
(1,671 |
) |
|
|
30,329 |
|
| Stock-based compensation |
|
|
160,786 |
|
|
|
— |
|
|
|
— |
|
|
|
160,786 |
|
| Other adjustments from operations, net |
|
|
1,069 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
1,068 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
| Digital assets |
|
|
(150,513 |
) |
|
|
— |
|
|
|
— |
|
|
|
(150,513 |
) |
| Prepaid expenses and other assets |
|
|
136 |
|
|
|
— |
|
|
|
851 |
|
|
|
987 |
|
| Accounts payable and accrued expenses |
|
|
11,927 |
|
|
|
455 |
|
|
|
— |
|
|
|
12,382 |
|
| Accrued interest |
|
|
867 |
|
|
|
— |
|
|
|
— |
|
|
|
867 |
|
| Net cash used in operating activities |
|
|
(18,218 |
) |
|
|
(748 |
) |
|
|
— |
|
|
|
(18,966 |
) |
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Advances to vendors |
|
|
(435,065 |
) |
|
|
— |
|
|
|
— |
|
|
|
(435,065 |
) |
| Loan receivable |
|
|
(30,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
(30,000 |
) |
| Purchase of property and equipment |
|
|
(273,851 |
) |
|
|
— |
|
|
|
— |
|
|
|
(273,851 |
) |
| Purchase of digital assets in Fund |
|
|
(150,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
(150,000 |
) |
| Purchase of equity investments |
|
|
(3,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,000 |
) |
| Sale of digital assets in Fund |
|
|
— |
|
|
|
780 |
|
|
|
— |
|
|
|
780 |
|
| Net cash used in investing activities |
|
|
(891,916 |
) |
|
|
780 |
|
|
|
— |
|
|
|
(891,136 |
) |
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from issuance of common stock, net of issuance costs |
|
|
312,196 |
|
|
|
— |
|
|
|
— |
|
|
|
312,196 |
|
| Proceeds from issuance of convertible debt, net of issuance costs |
|
|
728,406 |
|
|
|
— |
|
|
|
— |
|
|
|
728,406 |
|
| Borrowings from revolving credit agreement |
|
|
77,500 |
|
|
|
— |
|
|
|
— |
|
|
|
77,500 |
|
| Repayments of revolving credit agreement |
|
|
(77,500 |
) |
|
|
— |
|
|
|
— |
|
|
|
(77,500 |
) |
| Value of shares withheld for taxes |
|
|
(4,714 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,714 |
) |
| Proceeds received on exercise of options and warrants |
|
|
1,445 |
|
|
|
— |
|
|
|
— |
|
|
|
1,445 |
|
| Net cash provided by financing activities |
|
|
1,037,333 |
|
|
|
— |
|
|
|
— |
|
|
|
1,037,333 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
127,199 |
|
|
|
32 |
|
|
|
— |
|
|
|
127,231 |
|
| Cash, cash equivalents and restricted cash — beginning of period |
|
|
141,323 |
|
|
|
- |
|
|
|
- |
|
|
|
141,323 |
|
| Cash, cash equivalents and restricted cash — end of period |
|
|
268,522 |
|
|
|
32 |
|
|
|
— |
|
|
|
268,554 |
|
|