Quarterly report pursuant to Section 13 or 15(d)

Condensed Interim Consolidated Statements of Cash Flows (Unaudited)

v3.10.0.1
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities    
Net loss $ (47,526,128) $ (10,967,620)
Income (loss) from discontinued operations 96,132 (3,563,876)
Loss from continuing operations (47,622,260) (7,403,744)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities of continuing operations :    
Amortization of discount on convertible debt 4,750,000
Stock-based compensation 4,147,189 379,622
Depreciation and amortization 5,685,664 55,899
Deferred income tax benefit (3,525,000)
Amortization of license fee revenue (72,523) (72,524)
Common stock issued for services 277,940
Stock issued for the extinguishment of the BMSS payable 265,500
Property, plant & equipment impairment charge 26,858,023
Impairment of digital currencies 3,374,976
Realized gain on sale of digital currencies (451,341)
Changes in assets and liabilities:    
Prepaid contracts (1,584,699)
Prepaid expenses and other current assets (1,417,007) 192,071
Digital currencies - Mining (6,087,405)
Accounts payable 2,983,941 (4,997)
Accrued expenses 1,271,114 (129,875)
Net cash used in operating activities of continuing operations (15,895,888) (2,233,548)
Net cash used in operating activities of discontinued operations (68,824) (930,323)
Net cash used in operating activities (15,964,712) (3,163,871)
Continuing operations:    
Purchase of digital currencies (5,722,545)
Proceeds from sale of digital currencies 7,371,172
Purchases of property and equipment (20,311,436)
Purchases of other investments (6,412,726)
Proceeds from sale of short-term investments 7,506,761
Security deposits (703,275)
Purchases of patent and trademark application costs (32,850) (14,255)
Investment in Coinsquare (3,000,000)
Investment in Logical Brokerage, net of cash acquired (516,918)
Purchase of developed technology by 1172767 (531,176)
Net cash (used in) provided by investing activities of continuing operations (26,859,754) 4,492,506
Net cash provided by investing activities of discontinued operations 4,004
Net cash (used in) provided by investing activities (26,859,754) 4,496,510
Cash flows from financing activities - continuing operations:    
Proceeds from issuance of convertible notes 4,750,000
Proceeds from issuance of common stock, net of $336,491 in offering expenses 1,913,509
Redemption of equity rights (291,995)
Proceeds from notes payable 1,696,083
Repayment of notes payable and other obligations (135,574) (192,539)
Proceeds from exercise of warrants 350,000
Proceeds from exercise of stock options 78,522 98,260
Proceeds from sale of Riot shares held by 1172767 505,729
Proceeds from common shares sold by 1172767, net 220,446
Refund of escrow dividend 64,380
Net cash provided by financing activities of continuing operations 2,779,586 6,277,235
Net increase (decrease) in cash and cash equivalents (40,044,880) 7,609,874
Cash and cash equivalents at beginning of period 41,651,965 5,529,848
Cash and cash equivalents at end of period 1,607,085 13,139,722
Supplemental disclosure of cash flow information:    
Cash paid for interest 6,585 1,571
Supplemental disclosure of noncash investing and financing activities:    
Conversion of notes payable and accrued interest to preferred stock 4,798,671
Value of shares issued for Prive asset acquisition $ 8,480,000
Conversion of Preferred stock to Common stock 7,190,157
Deferred purchase price for BMSS $ 1,350,000