Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

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Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Schedule of Change in Fair Value of Assets Measured Level 1

The following table presents the activities of the digital currencies for the nine months ended September 30, 2018:

 

Digital currenciess at December 31, 2017   $ -  
Additions of digital currencies     1,200,171  
Realized loss on sale of digital currencies     (73,533 )
Sale of digital currencies     (1,126,638 )
Digital Currencies at September 30, 2018   $ -  

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2018 and December 31, 2017, respectively:

 

    Fair value measured at September 30, 2018  
    Total carrying value at September 30,     Quoted prices in active markets     Significant other observable inputs     Significant unobservable inputs  
    2018     (Level 1)     (Level 2)     (Level 3)  
Liabilities                                
Warrant liability   $ 145,124     $ -     $ -     $ 145,124  

 

    Fair value measured at December 31, 2017  
    Total carrying value at December 31,     Quoted prices in active markets     Significant other observable inputs     Significant unobservable inputs  
    2017     (Level 1)     (Level 2)     (Level 3)  
Liabilities                                
Warrant liability   $ 1,794,396     $ -     $ -     $ 1,794,396  

Schedule of Fair Value of Warrant Liabilities

FV of warrant liabilities

 

    Fair value  
Outstanding as of December 31, 2017   $ 1,794,396  
Exercised     (55,791 )
Change in fair value of warrants     (1,593,481 )
Outstanding as of September 30, 2018   $ 145,124  

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share at September 30, 2018 and 2017 are as follows:

 

    As of September 30,  
    2018     2017  
Warrants to purchase common stock     728,764       7,487,893  
Options to purchase common stock     416,079       613,194  
Preferred stock to exchange common stock     -       195,501  
Convertible notes to exchange common stock     1,248,882       13,750,000  
Total     2,393,725       22,046,588  

Schedule of Computation of Basic and Diluted Loss Per Share

The following table sets forth the computation of basic and diluted loss per share:

 

    For the three months ended September 30,     For the nine months ended September 30,  
    2018     2017     2018     2017  
Net loss attributable to common shareholders   $ (1,340,457 )   $ (6,677,486 )   $ (8,419,922 )   $ (12,484,925 )
                                 
Denominator:                                
Weighted average common shares - basic and diluted     24,321,788       6,270,299       19,893,901       5,564,465  
                                 
Loss per common share - basic and diluted   $ (0.06 )   $ (1.06 )   $ (0.42 )   $ (2.24 )