Quarterly report pursuant to Section 13 or 15(d)

Consolidated Condensed Statements of Cash Flows (Unaudited)

v3.20.2
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (5,213,544) $ (2,365,149)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 1,797,959 412,083
Amortization of patents and website 53,382 53,382
Realized gain (loss) on sale of digital currencies (15,466) (13,208)
Change in fair value of warrant liability 18,651 7,753
Change in fair value of mining payable 66,547
Stock based compensation 1,032,199 620,030
Amortization of right-of-use assets 72,332 67,602
Changes in operating assets and liabilities:    
Accounts receivables
Digital currencies (1,713,832) (908,175)
Lease liability (70,880) (66,707)
Prepaid expenses and other assets 172,472 154,930
Accounts payable and accrued expenses 351,960 (163,822)
Net cash used in operating activities (3,448,220) (2,201,281)
CASH FLOWS FROM INVESTING ACTIVITIES    
Sale of digital currencies 1,278,550 918,502
Purchase of property and equipment (3,133,908) (5,224)
Deposit for purchase of the miners (13,269,670)
Net cash (used in) provided by investing activities (15,125,028) 913,278
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds received on issuance of notes payable 62,500
Proceeds from issuance of common stock/At-the-market offering 29,756,736 83,453
Offering costs for the issuance of common stock/At-the-market offering (963,754) (3,636)
Proceeds from issuance of common stock and warrant, net 6,271,600
Proceeds received on exercise of warrants 5,313
Net cash provided by financing activities 35,132,395 79,817
Net increase (decrease) in cash and cash equivalents 16,559,147 (1,208,186)
Cash and cash equivalents - beginning of period 692,963 2,551,171
Cash and cash equivalents - end of period 17,252,110 1,342,985
Supplemental schedule of non-cash investing and financing activities:    
Par value adjustment due to reverse split 1
Common stock issued for purchase of mining servers 171,622 2,233,773
Mining servers payable 1,852,477
Reduction of share commitment for purchase of mining servers 408,625
Common stock issued for note conversion $ 1,579,074