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VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE
 9 Months Ended
Sep. 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, 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 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 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

   As of 
  

December 31, 2021

(Restated)

 
Condensed Consolidated Balance Sheet Impact     
Accumulated deficit   7,284 

 

                
   Three months ended (unaudited) 
   March 31, 2022 (Restated)  

June 30,

2022 (Restated)

  

September 30, 2022

(Restated)

 
Consolidated Statements of Comprehensive Income (Loss) Impact               
Impairment of digital assets  $(5,660)  $(4,017)  $— 
Income tax benefit (expense)   1,412    (380)   232 
Net income (loss) impact  $(4,248)  $(4,397)  $232 
Net income (loss) per share, basic and diluted impact  $(0.04)  $(0.04)  $— 

 

   Six months ended (unaudited)   Nine months ended (unaudited)   Year ended 
  

June 30,

2022 (Restated)

  

September 30, 2022

(Restated)

  

December 31, 2022

(Restated)

 
Consolidated Statements of Comprehensive Income (Loss) Impact               
Impairment of digital assets  $(9,677)  $(9,677)  $(9,677)
Income tax benefit (expense)   1,032    1,264    2,393 
Net income (loss) impact  $(8,645)  $(8,413)  $(7,284)
Net income (loss) per share, basic and diluted impact  $(0.08)  $(0.08)  $(0.06)

 

                
   As of (unaudited) 
  

March 31,

2022

  

June 30,

2022

   September 30, 2022 (Restated) 
Condensed Consolidated Balance Sheet Impact               
Digital assets  $4,017   $—   $— 
Deferred tax liabilities   981    1,361    1,129 
Accumulated deficit   3,036    (1,361)   (1,129)