Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities      
Net loss $ (7,926) $ (12,667) $ (20,303)
Adjustments to reconcile net loss to net cash used in operating activities:      
Stock-based compensation 68,491 3,407 745
Depreciation and amortization 26,324 4,494 119
Amortization of license fee revenue (97) (97) (96)
Amortization of right of use assets 275 367 2,297
Income tax expense (benefit) 254 (143)
Issuance of common stock warrant for settlement of advisory fees 1,157
Impairment of long-term investment 9,413
Impairment of cryptocurrencies 36,462 989 844
Loss on issuance of convertible notes, common stock and warrants 6,155
Change in fair value of convertible notes 3,896
Change in fair value of warrant liability 2,869
Gain on deconsolidation of Tess (1,139)
Impairment of intangible rights acquired 700
Reversal of registration rights penalty (1,358)
Change in fair value of derivative asset (12,112)
Change in fair value of contingent consideration 975
Gain on extinguishment of accounts payable, other liabilities and accrued interest (854)
Realized gain on sale/exchange of long-term investment (26,260)
Realized gain on sale/exchange of cryptocurrencies (253) (5,184) (665)
Unrealized loss on marketable equity securities 13,655
Gain on sale of equipment (29)
Accrued interest on Verady investment (20)
Changes in assets and liabilities:      
Accounts receivable (4,446)
Prepaid expenses and other current assets (1,890) 795 (101)
Costs and estimated earnings in excess of billings 3,343
Cryptocurrencies - mining (184,422) (11,838) (6,606)
Security deposits (3,180)
Future power credits (975)
Accounts payable (2,770) 1 (1,887)
Accrued expenses 16,070 928 1,070
Billings in excess of costs and estimated earnings (619)
Customer deposits 6,124
Deferred revenue (12,895)
Lease liability (1,662) (368) (2,296)
Net cash used in operating activities (86,377) (11,147) (15,415)
Cash flows from investing activities      
Acquisition of Whinstone, net of cash acquired (40,879)
Acquisition of ESS Metron, net of cash acquired (29,567)
Proceeds from the sale of long-term investments 1,800
Proceeds from sale of cryptocurrencies 295 8,298 3,196
Proceeds from the sale of equipment 146
Deposits on equipment (274,833) (33,093) (1,449)
Purchases of property and equipment, including construction in progress (147,116) (8,139) (4,958)
Patent costs incurred (30) (44) (38)
Net cash used in investing activities (490,330) (32,832) (3,249)
Cash flows from financing activities      
Proceeds from issuance of convertible notes 3,000
Repayment of notes payable and other obligations (950)
Proceeds from the issuance of common stock / At-the-market offering 684,817 264,727 24,825
Offering costs for the issuance of common stock / At-the-market offering (14,901) (7,255) (996)
Proceeds from exercise of common stock warrants 806 2,895
Repurchase of common shares to pay employee withholding taxes (5,082) (446)
Net cash provided by financing activities 665,640 259,921 25,879
Net increase in cash and cash equivalents 88,933 215,942 7,215
Cash and cash equivalents at beginning of year 223,382 7,440 225
Cash and cash equivalents at end of year 312,315 223,382 7,440
Supplemental disclosure of cash flow information:      
Cash paid for interest
Cash paid for taxes
Supplemental disclosure of noncash investing and financing activities:      
Issuance of common stock for business combinations 352,887
Issuance of common stock to settle previously accrued executive compensation 175
Reclassification of deposits to property and equipment 46,711 1,449
Construction in progress included in accrued expenses 2,423
Cryptocurrencies received from sale of equipment 52
Conversion of preferred stock to common stock 11 47
Conversion of notes payable to common stock 10,226
Reclassification of warrant liability to equity 5,439
Common stock issued in connection with conversion of notes payable 255
Cryptocurrencies used to purchase miners $ 99