Restatement Of Consolidated Financial Statements For Quarters Ended March 31 2023 And March 31 2022 And Voluntary Change In Accounting Principle

SCHEDULE OF CHANGE IN ACCOUNTING PRINCIPLE FOR CONDENSED CONSOLIDATED BALANCE SHEET

The following tables for the Unaudited Interim Consolidated Condensed Balance Sheet, Consolidated Condensed Statement of Operations, and Consolidated Condensed Statement of Cash Flows present the impact of the Principle Change for the three months ended March 31, 2022.

	As Reported			Adjustments		As Restated
	As of March 31, 2022
	As Reported			Adjustments		As Restated
	(unaudited)					(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	117,942		$	—	$	117,942
Restricted cash		600			—		600
Digital assets		129,448			4,076		133,524
Digital assets held in Fund		218,439			—		218,439
Other receivable		29,870			—		29,870
Deposits		40,792			—		40,792
Prepaid expenses and other current assets		52,765			—		52,765
Total current assets		589,856			4,076		593,932

Other assets:
Property and equipment		333,317			—		333,317
Advances to vendors		594,240			—		594,240
Investments		13,520			—		13,520
Long term prepaids		5,131			—		5,131
Right-of-use assets		1,326			—		1,326
Total other assets		947,534			—		947,534
TOTAL ASSETS		1,537,390			4,076		1,541,466

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		7,715			—		7,715
Accrued expenses		4,642			—		4,642
Operating lease liabilities		264			—		264
Current portion of accrued interest		2,710			—		2,710
Total current liabilities		15,331			—		15,331
Long-term liabilities:
Notes payable		729,377			—		729,377
Operating lease liabilities		1,071			—		1,071
Deferred tax liabilities		18,312			981		19,293
Total long-term liabilities		748,760			981		749,741

Stockholders’ Equity:
Preferred stock		—			—		—
Common stock		11			—		11
Additional paid-in capital		939,742			—		939,742
Accumulated deficit		(166,454	)		3,095		(163,359	)
Total stockholders’ equity		773,299			3,095		776,394
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,537,390		$	4,076	$	1,541,466

SCHEDULE OF CHANGE IN ACCOUNTING PRINCIPLE FOR CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	As Reported			Adjustment			As Restated
	For the three months ended
	March 31, 2022
	As Reported			Adjustment			As Restated
	(unaudited)						(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(12,851	)	$	(4,258	)	$	(17,109	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		13,877			—			13,877
Amortization of prepaid service contract		4,662			—			4,662
Deferred tax benefit		(4,262	)		(1,412	)		(5,674	)
Losses on digital assets held within Investment Fund		5,328			—			5,328
Losses on digital assets loan receivable		461			—			461
Impairment of digital assets		17,647			5,670			23,317
Stock-based compensation		9,275			—			9,275
Amortization of debt issuance costs		971			—			971
Impairment of patents		919			—			919
Other adjustments from operations, net		(215	)		—			(215	)
Changes in operating assets and liabilities:
Revenues from digital asset production		(51,874	)		—			(51,874	)
Deposits		(6,287	)		—			(6,287	)
Prepaid expenses and other assets		(4,889	)		—			(4,889	)
Accounts payable and accrued expenses		(667	)		—			(667	)
Accrued interest		1,843			—			1,843
Net cash used in operating activities		(26,062	)		—			(26,062	)
CASH FLOWS FROM INVESTING ACTIVITIES
Advances to vendors		(192,391	)		—			(192,391	)
Purchase of property and equipment		(6,534	)		—			(6,534	)
Purchase of equity investments		(10,500	)		—			(10,500	)
Net cash used in investing activities		(209,425	)		—			(209,425	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock, net of issuance costs		85,473			—			85,473
Net cash provided by financing activities		85,473			—			85,473

Net decrease in cash, cash equivalents and restricted cash		(150,014	)		—			(150,014	)
Cash and cash equivalents — beginning of period		268,556			-			268,556
Cash, cash equivalents and restricted cash — end of period	$	118,542			-		$	118,542