v3.19.2
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities    
Net loss $ (15,028,728) $ (40,999,188)
Income from discontinued operations 96,132
Loss from continuing operations (15,028,728) (41,095,320)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities of continuing operations:    
Stock-based compensation 350,068 2,492,029
Depreciation and amortization 47,068 5,027,326
Deferred income tax benefit (3,525,000)
Amortization of license fee revenue (48,349) (48,349)
Amortization of right of use assets 1,148,481
Common stock issued for services 277,940
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 (808,026)
Impairment of property and equipment 26,858,023
Impairment of digital currencies 2,979,045
Realized gain on sale of digital currencies (641,610)
Changes in assets and liabilities:    
Prepaid contracts (2,584,699)
Prepaid expenses and other current assets 916,460 221,142
Digital currencies - mining, net of mining pool operating fees (3,771,888) (3,669,999)
Accrued interest (19,578)
Accounts payable (1,831,697) 2,303,611
Accrued expenses 880,210 1,253,072
Lease liability (1,155,526)
Net cash used in operating activities of continuing operations (8,182,283) (9,511,179)
Net cash used in operating activities of discontinued operations (68,824)
Net cash used in operating activities (8,182,283) (9,580,003)
Cash flows from investing activities - continuing operations:    
Proceeds from sale of digital currencies 3,196,310 1,626,800
Purchase of digital currencies (5,625,000)
Purchases of property and equipment (5,569) (20,084,225)
Purchases of other investments (6,412,726)
Security deposits (703,275)
Purchases of patent costs (25,959) (31,068)
Investment in Logical Brokerage, net of cash acquired (516,918)
Purchase of developed technology by Tess (60,019)
Net cash provided by (used in) investing activities 3,164,782 (31,806,431)
Cash flows from financing activities - continuing operations:    
Proceeds from issuance of convertible notes 3,000,000 775,555
Repayment of notes payable and other obligations (950,000) (135,574)
Proceeds from the issuance of common stock / At-the-market offering 19,671,712
Offering costs for the issuance of common stock / At-the-market offering (818,971)
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. 320,000
Net cash provided by financing activities of continuing operations 20,902,741 1,388,503
Net increase (decrease) in cash and cash equivalents 15,885,240 (39,997,931)
Cash and cash equivalents at beginning of period 225,390 41,651,965
Cash and cash equivalents at end of period 16,110,630 1,654,034
Supplemental disclosure of cash flow information:    
Cash paid for interest 1,526
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 42,503 4,010,755
Deferred purchase price for BMSS $ 1,500,000

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