Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.19.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (12,814,324) $ (31,333,569)
Adjustments to reconcile net loss to net cash (used in) operating activities:    
Depreciation 2,003,695 26,106
Amortization of patents and website 66,017 1,824,162
Loss on sale of companies 2,610,784
Gain on debt extinguishment (2,970,313)
Gain on extinguishment of warrant liability (305,358)
Gain on Fortress loan extinguishment (11,940,493)
Realized loss on sale of digital currencies 152,485
Change in fair value of warrant liability (1,699,522) 21,855,723
Impairment of intangible assets 2,475,149
Impairment of goodwill 228,401
Impairment of mining equipment 2,222,688
Stock based compensation 1,425,683 1,976,816
Amortization of debt discount 2,290,028 3,561,109
Warrants exchanged for common stock 980,400
Bad debt allowance 6,826
Change in fair value of Clouding earnout (1,482,012)
Break-up fee - issuance of shares to GBV 2,850,000
Non-controlling interest 163,848
Litigation liability 2,150,000
Changes in operating assets and liabilities:    
Accounts receivables 88,243
Digital currencies (1,495,402)
Litigation liability (2,150,000)
Prepaid expenses and other assets (371,151) 335,194
Other non current assets 201,203
Accounts payable and accrued expenses (725,594) (1,253,875)
Net cash used in operating activities (8,238,571) (10,808,483)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of digital currencies 1,342,917
Acquisition of patents (250,000)
Purchase of property and equipment (5,251,719) (7,788)
Net cash used in investing activities (4,158,802) (7,788)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment on note payable (1,273,000)
Proceeds received on issuance of notes payable 5,488,693
Proceeds received on private placement 16,074,416
Proceeds from warrant purchase 17,410
Proceeds received on exercise of warrants 141,100
Net cash provided by financing activities 20,448,619
Effect of foreign exchange rate changes 15 317,867
Net (decrease) increase in cash and cash equivalents (12,397,358) 9,950,215
Cash and cash equivalents - beginning of period 14,948,529 4,998,314
Cash and cash equivalents - end of period 2,551,171 14,948,529
SUPPLEMENTAL CASH FLOW INFORMATION    
Cash paid for interest expense 1,543,925
Cash paid during the year for income taxes 5,459
Supplemental schedule of non-cash investing and financing activities:    
Issuance of Series D Preferred Stock 678,713
Conversion of Series B Preferred Stock to common stock 20
Conversion of Series D Preferred Stock to common stock 63
Conversion of Series E Preferred Stock to common stock 551
Warrants converted to Series E preferred stock 21,525,410
Warrants reclassed to equity 18,187
Common stock issued for acquisition of patents 960,000
Common stock issued for note conversion 3,055,588 1,549,803
Restricted stock issuance 44 78
Beneficial conversion feature 4,017,729
Common stock issued for account payable 331,739
Warrants exercised into common shares $ 55,791