Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
|
2 Months Ended |
9 Months Ended |
12 Months Ended |
Dec. 31, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
| Operating activities: |
|
|
|
|
|
| Net loss |
|
$ (7,653,000)
|
$ (4,239,000)
|
$ (5,779,000)
|
$ (4,281,000)
|
| Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
|
|
| Gain on extinguishment of debt |
|
(1,125,000)
|
|
|
|
| Forgiveness of related party liabilities |
|
|
|
|
(1,745,000)
|
| Forgiveness of liabilities |
|
(139,000)
|
(776,000)
|
(776,000)
|
(551,000)
|
| Impairment of acquired intangible assets |
|
|
|
286,000
|
70,000
|
| Preferred shares penalty fee |
|
653,000
|
|
|
|
| Depreciation expense |
|
835,000
|
742,000
|
971,000
|
1,030,000
|
| Amortization of debt issuance costs |
|
485,000
|
392,000
|
526,000
|
|
| Share-based compensation |
|
299,000
|
5,000
|
5,000
|
637,000
|
| Preferred shares interest expense, related party |
|
|
|
|
291,000
|
| Provision for losses on accounts receivable |
|
|
|
34,000
|
187,000
|
| Revaluation of subscription agreements |
|
|
(79,000)
|
(79,000)
|
158,000
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
| Accounts receivable |
|
38,000
|
110,000
|
71,000
|
773,000
|
| Inventories |
|
57,000
|
94,000
|
195,000
|
477,000
|
| Accounts payable and accrued liabilities |
|
1,918,000
|
3,380,000
|
3,583,000
|
317,000
|
| Accrued payroll and employee compensation |
|
2,000
|
66,000
|
(50,000)
|
182,000
|
| Deferred revenue |
|
(477,000)
|
(553,000)
|
(597,000)
|
(102,000)
|
| Other assets and liabilities, net |
|
42,000
|
(1,138,000)
|
(972,000)
|
744,000
|
| Net cash used in operating activities |
|
(5,065,000)
|
(1,996,000)
|
(2,582,000)
|
(1,813,000)
|
| Investing activities: |
|
|
|
|
|
| Loan receivable |
|
|
|
(2,000,000)
|
|
| Deposit for purchase of property and equipment |
|
(85,000,000)
|
|
|
|
| Notes receivable |
|
(10,035,000)
|
|
|
|
| Investment in special purpose acquisition company, net |
|
(4,420,000)
|
|
|
|
| Net cash used in investing activities |
|
(99,455,000)
|
|
(2,000,000)
|
|
| Financing activities: |
|
|
|
|
|
| Proceeds from issuance of common shares and warrants, net |
|
194,572,000
|
115,000
|
364,000
|
707,000
|
| Proceeds from debt |
|
|
|
1,042,000
|
|
| Proceeds from issuance of preferred shares, net |
|
9,575,000
|
2,735,000
|
2,735,000
|
|
| Payments for debt |
|
(1,103,000)
|
|
|
|
| Proceeds from long-term debt |
|
447,000
|
667,000
|
|
|
| Proceeds from exercise of warrants |
|
1,458,000
|
120,000
|
180,000
|
|
| Payments for line of credit, net |
|
(402,000)
|
(2,000)
|
(83,000)
|
391,000
|
| Payments for preferred share dividends |
|
(218,000)
|
|
|
|
| Proceeds from debt-related party |
|
|
500,000
|
700,000
|
523,000
|
| Payments for debt-related party |
|
|
(42,000)
|
(117,000)
|
|
| Proceeds from convertible debt |
|
|
375,000
|
|
|
| Proceeds from convertible debt-related party |
|
|
200,000
|
|
|
| Proceeds from exercise of stock options |
|
252,000
|
76,000
|
75,000
|
|
| Net cash provided by financing activities |
|
204,581,000
|
4,744,000
|
4,896,000
|
1,621,000
|
| Effect of exchange rate changes on cash |
|
(1,000)
|
(1,000)
|
(2,000)
|
|
| Net increase (decrease) in cash and cash equivalents |
|
100,060,000
|
2,747,000
|
312,000
|
(192,000)
|
| Cash and cash equivalents, beginning of year |
|
461,000
|
149,000
|
149,000
|
341,000
|
| Cash and cash equivalents, end of year |
$ 461,000
|
100,521,000
|
2,896,000
|
461,000
|
149,000
|
| Supplemental disclosures of cash flow information: |
|
|
|
|
|
| Cash paid for interest |
|
34,000
|
25,000
|
33,000
|
39,000
|
| Issuance of common shares for settlement of liabilities and preferred dividends |
|
3,704,000
|
2,034,000
|
|
|
| Issuance of common shares for conversion of convertible debt |
|
799,000
|
783,000
|
783,000
|
|
| Issuance of common shares for related party liabilities |
|
|
|
379,000
|
529,000
|
| Issuance of common shares for exercise of warrants applied to settlement of liabilities |
|
92,000
|
|
|
|
| Issuance of common shares for settlement of liabilities |
|
|
|
2,034,000
|
764,000
|
| Issuance of common shares for acquisition of intangible asset |
|
11,408,000
|
1,560,000
|
1,560,000
|
|
| Assumption of notes receivable |
|
|
|
1,100,000
|
|
| Issuance of convertible debt-related party for prepaid business advisory services |
|
|
150,000
|
150,000
|
|
| Conversion of related party accrued interest to Series B preferred shares |
|
|
|
|
344,000
|
| Conversion of related party liabilities to Series C preferred shares |
|
|
|
|
1,152,000
|
| Issuance of Series C preferred shares for prepayment of services |
|
|
|
|
$ 448,000
|
| Issuance of common shares for settlement of related party liabilities |
|
|
$ 379,000
|
|
|
| Gryphon Digital Mining, Inc. |
|
|
|
|
|
| Operating activities: |
|
|
|
|
|
| Net loss |
(2,000)
|
(14,403,000)
|
|
|
|
| Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
|
|
| Unrealized loss on impairment of digital assets |
|
130,000
|
|
|
|
| Interest earned on digital assets |
|
(25,000)
|
|
|
|
| Realized gain from disposition of digital assets |
|
(36,000)
|
|
|
|
| Digital assets used for operating expenses |
|
168,000
|
|
|
|
| Amortization of debt discount |
|
428,000
|
|
|
|
| Depreciation expense |
|
26,000
|
|
|
|
| Common stock issued for compensation |
|
830,000
|
|
|
|
| Common stock issued for compensation to seed stage advisors |
|
1,671,000
|
|
|
|
| Common stock issued for compensation to officers and directors |
|
7,655,000
|
|
|
|
| Compensation cost related to restricted common stock awards |
|
874,000
|
|
|
|
| Series seed II Preferred Stock issued for compensation |
|
110,000
|
|
|
|
| Compensation for services contributed by the Company’s president |
|
188,000
|
|
|
|
| Fair value of penny warrants issued for services |
|
1,036,000
|
|
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
| Accounts receivable |
|
(136,000)
|
|
|
|
| Prepaid expense |
(1,000)
|
(85,000)
|
|
|
|
| Accounts payable and accrued liabilities |
|
618,000
|
|
|
|
| Net cash used in operating activities |
(3,000)
|
(951,000)
|
|
|
|
| Investing activities: |
|
|
|
|
|
| Net cash used in investing activities |
|
(27,253,000)
|
|
|
|
| Financing activities: |
|
|
|
|
|
| Proceeds from issuance of notes payable |
|
10,000,000
|
|
|
|
| Proceeds from issuance of convertible debentures |
|
9,079,000
|
|
|
|
| Proceeds from collection of subscription receivable |
|
4,000
|
|
|
|
| Proceeds from issuance of common stock |
15,000
|
12,905,000
|
|
|
|
| Proceeds from additional capital contributions |
|
16,000
|
|
|
|
| Proceeds from issuance of series seed II preferred stock |
|
1,473,000
|
|
|
|
| Proceeds from exercise of warrants |
|
1,000
|
|
|
|
| Proceeds from the issuance of series seed preferred stock |
|
300,000
|
|
|
|
| Net cash provided by financing activities |
15,000
|
33,778,000
|
|
|
|
| Net increase (decrease) in cash and cash equivalents |
12,000
|
|
|
|
|
| Cash and cash equivalents, beginning of year |
|
12,000
|
|
|
|
| Cash and cash equivalents, end of year |
12,000
|
5,586,000
|
|
$ 12,000
|
|
| Net change in cash |
|
5,574,000
|
|
|
|
| Supplemental disclosures of cash flow information: |
|
|
|
|
|
| Cash paid for interest |
|
|
|
|
|
| Cash paid for income taxes |
|
|
|
|
|
| Non-cash investing and financing activities |
|
|
|
|
|
| Deposits used for purchase of mining equipment |
|
3,656,000
|
|
|
|
| Digital assets received for purchase of common stock and Series Seed II |
|
1,374,000
|
|
|
|
| Relative fair value of warrants issued with convertible notes |
|
4,490,000
|
|
|
|
| Digital assets used as deposits for mining equipment |
|
1,067,000
|
|
|
|
| Supplemental disclosures of non-cash financing activities: |
|
|
|
|
|
| Deposit for purchase of bitcoin mining machines |
$ (14,192,000)
|
(27,093,000)
|
|
|
|
| Deposits |
|
$ (160,000)
|
|
|
|