QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2023

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY FINANCIAL DATA (UNAUDITED)

QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 21 - VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE

During the quarter ended March 31, 2023, the Company enacted a voluntary change in accounting principle from last-in-first-out (“LIFO”) to first-in-first-out (“FIFO”) in order to more accurately reflect the disposition of its digital assets. The change from LIFO to FIFO impacted the carrying value of digital asset loans made in August 2021 and December 2021, which was terminated at the point of repayment in kind for both loans in June 2022. The change in accounting principle resulted in a decrease in the carrying value of digital assets loaned and increased the gain on loaned digital assets for the year ended December 31, 2021. The change in accounting principle resulted in additional impairment of digital assets during the quarters ended March 31, 2023 and June 30, 2023. In accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), the change has been reflected in the Consolidated Statements of Comprehensive Income (Loss) through retrospective application to the year ended December 31, 2021.

The impacts of the voluntary change in accounting principle from LIFO to FIFO are as follows:

Consolidated Balance Sheets
	As of December 31, 2021
(in thousands)	As Reported		Adoption Adjustment		As Adjusted
Digital assets	$	95,227	$	9,677	$	104,904
Deferred tax liabilities	(22,575)		(2,393)		(24,968)
Accumulated deficit	(153,603)		7,284		(146,319)
Consolidated Statements of Comprehensive Income (Loss)
	Year Ended December 31, 2021
(in thousands, except share and per share data)	As Reported		Adoption Adjustment		As Adjusted
Total revenues	$	159,163	$	—	$	159,163
Total margin (total revenues less total cost of revenues)	116,767		—		116,767
Impairment of digital assets	(30,329)		8,077		(22,252)
Gains on digital assets and digital assets loan receivable	557		1,600		2,157
Operating income (loss)	(12,665)		9,677		(2,988)
Income tax expense	(22,575)		(2,393)		(24,968)
Net income (loss)	$	(37,097)	$	7,284	$	(29,813)
Net income (loss) per share - basic and diluted	$	(0.37)	$	0.07	$	(0.30)
Weighted average common shares - basic and diluted	99,337,587		—		99,337,587

Consolidated Balance Sheets
	As of December 31, 2022
(in thousands)	As Reported		Adoption Adjustment		As Adjusted
Accumulated deficit	$	840,341	$	—	$	840,341
Consolidated Statements of Comprehensive Loss
	Year Ended December 31, 2022
(in thousands, except share and per share data)	As Reported		Adoption Adjustment		As Adjusted
Total revenues	$	117,753	$	—	$	117,753
Total margin (total revenues less total cost of revenues)	(33,671)		—		(33,671)
Impairment of digital assets	(173,214)		(9,677)		(182,891)
Operating loss	(663,866)		(9,677)		(673,543)
Income tax benefit	21,839		2,393		24,232
Net loss	$	(686,738)	$	(7,284)	$	(694,022)
Net loss per share - basic and diluted	$	(6.05)	$	(0.07)	$	(6.12)
Weighted average common shares - basic and diluted	113,467,837		—		113,467,837