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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts.


	June 30, 2022		December 31, 2021
Customer A	12	%	—	%
Customer B	10	%	—	%
Customer C	7	%	18	%
Customer D	—	%	20	%

The following table sets forth our concentration of revenue sources as a percentage of total net revenues:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Customer E	1	%	6	%	1	%	11	%
Customer F	—	%	21	%	—	%	19	%
Customer G	—	%	13	%	—	%	11	%

Schedule of Digital Assets

The following table sets forth our digital asset holdings as of June 30, 2022:


Asset	Gross Carrying Amount		Accumulated Digital Asset Impairment		Digital Asset Carrying Value
Bitcoin	$	37,882	$	(26,295)	$	11,587
Ether	3,163		(2,471)		692
Other	1,210		(897)		313
Total	$	42,255	$	(29,663)	$	12,592

The following table sets forth our digital asset holdings as of December 31, 2021:


Asset	Gross Carrying Amount		Accumulated Digital Asset Impairment		Digital Asset Carrying Value
Bitcoin	$	36,963	$	(8,554)	$	28,409
Ethereum	4,714		(670)		4,044
Other	287		(159)		128
Total	$	41,964	$	(9,383)	$	32,581

Accumulated digital asset impairment noted above represent impairment on the remaining cost lots as of the respective dates. Changes in our digital asset holdings for the six months ended June 30, 2022 were as follows:


	Bitcoin		Ethereum		Other		Total
Net balance at December 31, 2021	$	28,409	$	4,044	$	128	$	32,581
Received from customers, net of expenses	28		377		—		405
Purchases of digital assets	923		—		—		923
Exchanges of digital assets	—		(923)		923		—
Realized gain	26		168		—		194
Impairment expense	(17,799)		(2,974)		(738)		(21,511)
Net balance at 6/30/2022	$	11,587	$	692	$	313	$	12,592

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table sets forth common stock equivalents that have been excluded from the computation of dilutive weighted average shares outstanding as their inclusion would have been anti-dilutive:


	June 30,
	2022	2021
Convertible notes	—	21,136
Warrants	5,636,801	5,996,112
Options	934,729	1,071,782
Restricted stock units	2,621,346	4,665,060
Restricted shares	—	574
Total	9,192,876	11,754,664

Financial Instruments Measured at Fair Value

Determining which category an asset or liability falls within the hierarchy requires significant judgment. Our financial instruments measured at fair value as of June 30, 2022 are set forth below:


	Level 1		Level 2		Level 3		Total
Assets:
Digital assets	$	12,592	$	—	$	—	$	12,592
Total	$	12,592	$	—	$	—	$	12,592

Liabilities:
Warrant liability	$	—	$	1,136	$	—	$	1,136
Total	$	—	$	1,136	$	—	$	1,136

Our financial instruments measured at fair value as of December 31, 2021 are set forth below:


	Level 1		Level 2		Level 3		Total
Assets:
Digital assets	$	32,581	$	—	$	—	$	32,581
Total	$	32,581	$	—	$	—	$	32,581

	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability	$	—	$	3,605	$	—	$	3,605
Total	$	—	$	3,605	$	—	$	3,605

Summary of Calculated Aggregate Fair Values and Assumptions

The following table sets forth the assumptions used to calculate the fair values of the liability classified warrant issued in connection with our 2020 Convertible Notes as of the dates presented:


	June 30, 2022			December 31, 2021
Strike price per share	$	2.25		$	2.25
Closing price per share	$	1.08		$	2.63
Term (years)	1.04			1.53
Volatility	205		%	186		%
Risk-free rate	2.85		%	0.56		%
Dividend Yield	—			—