Riot Blockchain, Inc. Annual report pursuant to Section 13 and 15(d)

Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Tables)

Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Estimated Useful Lives of Property and Equipment

Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for leasehold improvements are typically the lesser of the estimated useful life of the asset or the life of the term of the lease. The estimated useful lives for all other property and equipment are as follows:

			Life (Years)
Buildings and improvements			10-25
Miners and mining equipment			2
Machinery and facility equipment			5-7
Office and computer equipment			3

Schedule of Carrying Amounts and Estimated Lives of Intangible Assets with Finite Lives

As of December 31, 2021, the carrying amounts and estimated lives of the Company’s intangible assets with finite lives were as follows:

($ in thousands)	Gross book value		Accumulated amortization			Net book value		Weighted-average life (years)
Customer contracts	$	6,300	$	(51	)	$	6,249		10
Trademark		5,000		(42	)		4,958		10
UL Listings		2,700		(19	)		2,681		12
Patents		742		(468	)		274		Various
Finite-lived intangible assets	$	14,742	$	(580	)	$	14,162

As of December 31, 2020, the carrying amounts of the Company’s intangible assets with finite lives were as follows:

Gross

book value

Accumulated amortization

Net book

value

Patents

713

(377

)

336

Schedule of Estimated Amortization of Intangible Asset

The following table represents the total estimated amortization of intangible assets for the five succeeding years:

For the years ending December 31,	Estimated amortization expense
2022	$	1,446
2023		1,446
2024		1,446
2025		1,446
2026		1,446
Thereafter		6,932
Total	$	14,162

Schedule of Antidilutive Securities

Since the Company has only incurred losses, basic and diluted net loss per share is the same. Securities that could potentially dilute loss per share in the future were not included in the computation of diluted loss per share at December 31, 2021, 2020 and 2019 because their inclusion would be anti-dilutive are as follows:

	December 31,
	2021		2020		2019
Warrants to purchase common stock		63,000		2,061,770		3,574,257
Options to purchase common stock		-		12,000		12,000
Unvested restricted stock awards		4,015,146		633,305		1,524,499
Convertible Series B preferred shares		2,199		4,199		4,199
Total		4,080,345		2,711,274		5,114,955