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VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE
 6 Months Ended
Jun. 30, 2023
Accounting Changes and Error Corrections [Abstract]  
VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE

NOTE 2 – VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE

 

During the quarter ended March 31, 2023 and effective January 1, 2023, we 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 our digital assets. The change from LIFO to FIFO increased the carrying value of digital assets, resulting in additional impairment of digital assets during the quarter ended March 31, 2022. 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 operations through retrospective application to the quarter ended March 31, 2022.

 

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

SCHEDULE OF VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE

   For the three months ended 
   March 31, 2022 (unaudited) 
   (Restated) 
Condensed Consolidated Statements of Operation Impact     
Impairment of digital assets  $(5,670)
Income tax benefit  $1,412 
Net loss impact  $(4,258)

 

   For the six months ended 
   June 30, 2022 (unaudited) 
   (Restated) 
Condensed Consolidated Statements of Operation Impact     
Impairment of digital assets  $(9,449)
Income tax expense  $1,032 
Net loss impact  $(8,417)

 

   As of 
   March 31, 2022 (unaudited) 
   (Restated) 
Condensed Consolidated Balance Sheet Impact     
Digital assets  $4,076 
Deferred tax liabilities  $

981

 

 

 

   As of 
   June 30, 2022 (unaudited) 
   (Restated) 
Condensed Consolidated Balance Sheet Impact     
Digital assets  $297 
Deferred tax liabilities  $

1,361