Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.20.2
Property and Equipment
6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 6. Property and Equipment

Property and equipment consisted of the following as of June 30, 2020 and December 31, 2019 (in thousands):

June 30, 2020

December 31, 2019

(Unaudited)

 

Miners

$

6,322

$

5,010

 

Leasehold improvements

-

38

 

Office and computer equipment

82

103

 

Total cost of property and equipment

6,404

5,151

 

Less accumulated depreciation

(1,459

)

(100

)

Property and equipment, net

$

4,945

$

5,051

 

During the three months ended June 30, 2020, the Company pre-paid for the purchase of 1,040 S19 Miners and 2,000 S19 Pro Miners from Bitmain for an aggregate purchase price of approximately $7.0 million. The $7.0 million prepayment is recorded as a deposit on the accompanying condensed consolidated balance sheet.

During July 2020, the Company received 1,432 of these 3,040 new next generation S19 and S19 Pro Miners from Bitmain at the Coinmint Facility, with the balance to be delivered in the latter part of the third quarter.

Depreciation and amortization expense totaled approximately $0.8 million (including $0.03 million of patent amortization) for the three months ended June 30, 2020. Depreciation and amortization expense was nominal for the three months ended June 30, 2019. Depreciation and amortization expense totaled approximately $1.5 million (including $0.1 million of patent amortization) for the six months ended June 30, 2020. Depreciation and amortization expense was nominal for the six months ended June 30, 2019. Depreciation is computed on the straight-line basis for the periods the assets are in service.