Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.22.2.2
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
Schedules of Concentration Risk
The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts.
September 30, 2022 December 31, 2021
Customer A 24  % —  %
Customer B 15  % —  %
Customer C 5  % 18  %
Customer D —  % 20  %
The following table sets forth our concentration of revenue sources as a percentage of total net revenues:

Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Customer B 1  % 35  % 1  % 15  %
Customer E —  % 8  % —  % 14  %
Schedule of Digital Assets
The following table sets forth our digital asset holdings as of September 30, 2022:
Asset Gross Carrying Amount Accumulated Digital Asset Impairment Digital Asset Carrying
Value
Bitcoin $ 37,882  $ (26,295) $ 11,587 
Ether 3,175  (2,471) 704 
Other 1,223  (897) 326 
Total $ 42,280  $ (29,663) $ 12,617 
The following table sets forth our digital asset holdings as of December 31, 2021:
Asset Gross Carrying Amount Accumulated Digital Asset Impairment Digital Asset Carrying
Value
Bitcoin $ 36,963  $ (8,554) $ 28,409 
Ethereum 4,714  (670) 4,044 
Other 287  (159) 128 
Total $ 41,964  $ (9,383) $ 32,581 
Accumulated digital asset impairment noted above represents impairment on the remaining cost lots as of the respective dates. Changes in our digital asset holdings for the nine months ended September 30, 2022 were as follows:
Bitcoin Ethereum Other Total
Net balance at December 31, 2021 $ 28,409  $ 4,044  $ 128  $ 32,581 
Received from customers, net of expenses 28  376  25  429 
Purchases of digital assets 923  —  —  923 
Exchanges of digital assets —  (911) 911  — 
Other 26  169  —  195 
Impairment expense (17,799) (2,974) (738) (21,511)
Net balance at September 30, 2022 $ 11,587  $ 704  $ 326  $ 12,617 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following table sets forth common stock equivalents that have been excluded from the computation of dilutive weighted average shares outstanding as their inclusion would have been anti-dilutive:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Convertible notes — 19,324 — 19,324
Warrants 5,636,801 7,676,112 5,636,801 7,676,112
Options 984,729 207,257 984,729 1,117,697
Restricted stock units 3,353,776 3,807,154 3,353,776 3,807,154
Restricted shares — 574 — 574
Total 9,975,306 11,710,421 9,975,306 12,620,861
Schedule of Financial Instruments Measured at Fair Value
Determining which category an asset or liability falls within the hierarchy requires significant judgment. Our financial instruments measured at fair value as of September 30, 2022 are set forth below:
Level 1 Level 2 Level 3 Total
Assets:
Digital assets $ 12,617  $ —  $ —  $ 12,617 
Total $ 12,617  $ —  $ —  $ 12,617 
Liabilities:
Warrant liability $ —  $ 338  $ —  $ 338 
Total $ —  $ 338  $ —  $ 338 


    Our financial instruments measured at fair value as of December 31, 2021 are set forth below:
Level 1 Level 2 Level 3 Total
Assets:
Digital assets $ 32,581  $ —  $ —  $ 32,581 
Total $ 32,581  $ —  $ —  $ 32,581 
Level 1 Level 2 Level 3 Total
Liabilities:
Warrant liability $ —  $ 3,605  $ —  $ 3,605 
Total $ —  $ 3,605  $ —  $ 3,605 
Summary of Calculated Aggregate Fair Values and Assumptions
The following table sets forth the assumptions used to calculate the fair values of the liability classified warrant issued in connection with our 2020 Convertible Notes as of the dates presented:

September 30, 2022 December 31, 2021
Strike price per share $ 2.25  $ 2.25 
Closing price per share $ 1.18  $ 2.63 
Term (years) 0.78 1.53
Volatility 99  % 186  %
Risk-free rate 4.15  % 0.56  %
Dividend Yield — —