Marathon Digital Holdings Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Change in Fair Value of Assets Measured Level 1

The following table presents the activities of the digital currencies for the three months ended March 31, 2019:

Digital currencies at December 31, 2018	$	-
Additions of digital currencies		230,694
Realized loss on sale of digital currencies		(608	)
Sale of digital currencies		(224,449	)
Digital Currencies at March 31, 2019	$	5,637

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of March 31, 2019 and December 31, 2018, respectively:

	Fair value measured at March 31, 2019
	Total carrying value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
	March 31, 2019		(Level 1)		(Level 2)		(Level 3)
Liabilities
Warrant liability	$	76,817	$	-	$	-	$	76,817

	Fair value measured at December 31, 2018
	Total carrying value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities
Warrant liability	$	39,083	$	-	$	-	$	39,083

Schedule of Fair Value of Warrant Liabilities

FV of warrant liabilities

	Fair value
Outstanding as of December 31, 2018	$	39,083
Change in fair value of warrants		37,734
Outstanding as of March 31, 2019	$	76,817

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at March 31, 2019 and 2018 are as follows:

	As of March 31,
	2019		2018
Warrants to purchase common stock		182,191		182,191
Options to purchase common stock		1,466,520		112,193
Preferred stock to exchange common stock		-		485,540
Convertible notes to exchange common stock		312,221		612,221
Total		1,960,932		1,392,145

Schedule of Computation of Basic and Diluted Loss Per Share

The following table sets forth the computation of basic and diluted loss per share:

	For the three months ended March 31,
	2019			2018
Net loss attributable to common shareholders	$	(1,044,862	)	$	(2,402,820	)

Denominator:
Weighted average common shares - basic and diluted		6,338,418			3,805,684

Loss per common share - basic and diluted	$	(0.16	)	$	(0.63	)