Discontinued Operations

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 3 – Discontinued Operations

On January 23, 2024, the Company sold all of its cryptocurrency miners (the “Mining Equipment”) for consideration consisting of (i) $1.0 million in cash and (ii) $1.0 million in deferred cash payments (the “Deferred Purchase Price”), to be paid out of (i) 20% of the monthly net revenues received by the buyer associated with or otherwise attributable to the Mining Equipment until the aggregate amount of such payments equals $250,000 and (ii) thereafter, 50% of the monthly net revenues received by the buyer associated with or otherwise attributable to the Mining Equipment until the aggregate amount of such payments equals the Deferred Purchase Price, plus accrued interest, (collectively, the “Crypto Sale”). As of June 30, 2024, the Company presents the Deferred Purchase Price payment as a note receivable on its condensed consolidated balance sheet, $0.5 million of which is classified as current and $0.3 million of which is classified as non–current, based on when the payments are expected. The Company did not have a note receivable balance on its condensed consolidated balance sheet as of December 31, 2023. The Company recognized a loss of $1.1 million related to this disposition on its condensed consolidated statement of operations and statement of cash flows for the six months ended June 30, 2024. 

The Company has presented the related assets and liabilities associated with discontinued operations separately as discontinued operations in its condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023. The following table presents the major classes of assets included as part of discontinued operations in the Company’s condensed consolidated balance sheets for the periods indicated:

	June 30, 2024		December 31, 2023
Accounts receivable	$	—	$	322,655
Property and equipment, net		—		3,182,307
Total assets – discontinued operations	$	—	$	3,504,962

Additionally, the Company has presented the financial results associated with discontinued operations separately as discontinued operations on its condensed consolidated statements of operations for the three and six months ended June 30, 2024 and 2023 and its condensed consolidated statements of cash flows for the six months ended June 30, 2024 and 2023.The following table presents the major classes of line items constituting the loss from discontinued operations the Company’s condensed consolidated statements of operations and condensed consolidated statements of cash flows for the periods presented:

	Three Months Ended June 30,					Six Months Ended June 30,
	2024		2023			2024			2023
Cryptocurrency mining revenue	$	—	$	179,318		$	192,625		$	179,318
Cryptocurrency mining costs		—		(93,244	)		(55,063	)		(93,244	)
Depreciation and amortization		—		(132,851	)		(102,210	)		(132,851	)
Impairment of cryptocurrency mining equipment		—		(16,794,688	)		—			(16,794,688	)
Loss from sale of cryptocurrency mining equipment		—		—			(1,080,097	)		—
Loss from discontinued operations before income taxes		—		(16,841,465	)		(1,044,745	)		(16,841,465	)
Provision for income taxes		—		—			—			—
Net loss from discontinued operations	$	—	$	(16,841,465	)	$	(1,044,745	)	$	(16,841,465	)