Quarterly report pursuant to Section 13 or 15(d)

Condensed Interim Consolidated Statements of Cash Flows (Unaudited)

v3.19.3
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities    
Net loss $ (16,862,848) $ (47,526,128)
Income from discontinued operations 96,132
Loss from continuing operations (16,862,848) (47,622,260)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities of continuing operations:    
Stock-based compensation 431,430 4,147,189
Depreciation and amortization 70,482 5,685,664
Deferred income tax benefit (3,525,000)
Amortization of license fee revenue (72,523) (72,523)
Amortization of right of use assets 1,726,731
Common stock issued for services 277,940
Common stock issued for the extinguishment of the BMSS payable 265,500
Loss on issuance of convertible notes, common stock and warrants 6,154,660
Change in fair value of convertible notes 3,895,233
Change in fair value of warrant liability 2,869,726
Gain on deconsolidation of Tess (1,138,787)
Gain on extiguishment of accounts payable, other liabilities and accrued interest (842,925)
Impairment of property and equipment 26,858,023
Impairment of digital currencies 372,124 3,374,976
Realized gain on sale of digital currencies (665,218) (451,341)
Accrued interest on Verady investment (20,200)
Changes in assets and liabilities:    
Prepaid contracts (1,584,699)
Prepaid expenses and other current assets (756,135) (1,417,007)
Digital currencies - mining, net of mining pool operating fees (5,452,674) (6,087,405)
Accounts payable (1,798,539) 2,983,941
Accrued expenses 882,195 1,271,114
Lease liability (1,725,578)
Net cash used in operating activities of continuing operations (12,932,846) (15,895,888)
Net cash used in operating activities of discontinued operations (68,824)
Net cash used in operating activities (12,932,846) (15,964,712)
Cash flows from investing activities - continuing operations:    
Proceeds from sale of digital currencies 3,196,310 7,371,172
Purchase of digital currencies (5,722,545)
Purchases of property and equipment (8,569) (20,311,436)
Purchases of other investments (6,412,726)
Security deposits (703,275)
Patent costs incurred (26,566) (32,850)
Investment in Logical Brokerage, net of cash acquired (516,918)
Purchase of developed technology by Tess Pay, Inc. (531,176)
Net cash provided by (used in) investing activities 3,161,175 (26,859,754)
Cash flows from financing activities - continuing operations:    
Proceeds from issuance of convertible notes 3,000,000 1,696,083
Repayment of notes payable and other obligations (950,000) (135,574)
Proceeds from the issuance of common stock / At-the-market offering 23,610,642
Offering costs for the issuance of common stock / At-the-market offering (951,580)
Proceeds from exercise of warrants 350,000
Proceeds from exercise of stock options 78,522
Proceeds from sale of Riot shares held by Tess Pay, Inc. 505,729
Proceeds form the sale of common shares sold by Tess Pay, Inc. 220,446
Refund of escrow dividend 64,380
Net cash provided by financing activities of continuing operations 24,709,062 2,779,586
Net increase (decrease) in cash and cash equivalents 14,937,391 (40,044,880)
Cash and cash equivalents at beginning of period 225,390 41,651,965
Cash and cash equivalents at end of period 15,162,781 1,607,085
Supplemental disclosure of cash flow information:    
Cash paid for interest 6,585
Cash paid for taxes
Supplemental disclosure of noncash investing and financing activities:    
Conversion of notes payable to common stock 10,225,959
Reclassification of warrant liability to equity 5,438,660
Value of shares issued for Prive asset acquisition $ 8,480,000
Conversion of Preferred stock to Common stock 46,753 7,190,157
Common stock issued in connection with conversion of notes payable $ 255,000
Deferred purchase price for BMSS 1,350,000
Digitial currencies used to purchase miners $ 98,865