XML 21 R9.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Digital Assets | 6 Months Ended
--- | ---
Jun. 30, 2024
Digital Assets [Abstract] |
DIGITAL ASSETS | NOTE 2 – DIGITAL ASSETS The following table summarizes the digital currency transactions of Bitcoin for:
|  | June 30, 2024 |  |  | December 31, 2023 |
ASC 2023-08 fair value adjustment |  | $ | 739,000 |  |  | $ | - |
Digital assets beginning balance |  |  | 2,097,000 |  |  |  | 6,746,000 |
Revenue recognized from mined digital assets |  |  | 13,005,000 |  |  |  | 21,052,000 |
Revenue share from Sphere 3D |  |  | - |  |  |  | 321,000 |
Cost of digital assets sold for cash |  |  | (12,969,000 | ) |  |  | (17,977,000 | )
Cost of digital assets transferred for noncash expenditures |  |  | (3,283,000 | ) |  |  | (7,770,000 | )
Impairment loss on digital assets |  |  | - |  |  |  | (275,000 | )
Fair value gain on digital assets |  |  | 1,385,000 |  |  |  | - |
Digital assets ending balance |  | $ | 974,000 |  |  | $ | 2,097,000 |
For the six months ended June 30, 2024 and the year ended December 31, 2023, the Company used digital assets with a value of $3,283,000 and $7,770,000, respectively, for the payment of principal and interest for its notes payable. The following table presents the Company’s Bitcoin holdings as of:
|  | June 30, 2024 |  |  | December 31, 2023 |
Number of Bitcoin held |  |  | 15.77 |  |  |  | 67.18 |
Carrying basis - per Bitcoin |  | $ | 57,637 |  |  | $ | 31,213 |
Fair value - per Bitcoin |  | $ | 61,776 |  |  | $ | 42,214 |
Carrying basis of Bitcoin |  | $ | 908,000 |  |  | $ | 2,097,000 |
Fair value of Bitcoin |  | $ | 974,000 |  |  | $ | 2,836,000 |
The carrying basis (or cost basis) represents the valuation of Bitcoin at the time the Company earns the Bitcoin through mining activities. The carrying amount for 67.18 Bitcoin held as of the adoption of ASC 350-60, was determined on the “cost less impairment” basis. The Company’s Bitcoin holdings are not subject to rehypothecation and do not serve as collateral for any existing loans or agreements. As of each of June 30, 2024 and December 31, 2023, the Company held no other crypto currency. As of June 30, 2024 and December 31, 2023, the Company held 100% of its Bitcoin in cold storage and nil hot wallets, respectively. Adoption of ASU 2023-08, Accounting for and Disclosure of Crypto Assets Effective January 1, 2024, the Company early adopted ASU 2023-08, which requires entities to measure crypto assets at fair value with changes recognized in the consolidated statement of operation each reporting period. The Company’s digital assets are within the scope of ASU 2023-08 and the transition guidance requires a cumulative-effect adjustment as of the beginning of the current fiscal year for any difference between the carrying amount of the Company’s digital assets and fair value. As a result of the Company’s early adoption of ASU 2023-08, the Company recorded a $739,000 increase in digital assets and a $739,000 decrease in accumulated deficit on the consolidated balance sheets as of January 1, 2024.

X
- References No definition available. + Details
Name: | us-gaap_CryptoAssetFairValueAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for crypto asset. Excludes crypto asset held for platform user. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147476168/350-60-50-6 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147476168/350-60-50-6 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147476168/350-60-50-4 + Details
Name: | us-gaap_CryptoAssetTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration