Riot Platforms, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 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)

6 Months Ended

Jun. 30, 2021

Deferred Tax Liability

Upon the acquisition of Whinstone, the Company recognized a deferred tax liability of approximately $37.8 million consisting of the tax basis differences of derivative related assets acquired, totaling $18.8 million in deferred income tax liability and acquisition fair value adjustments for fixed assets and non-deductible intangible assets totaling $19.0 million in deferred income taxes, on acquired fair value of such assets, using a blended federal and state statutory rate of 21%. Deferred income tax expense for the period ended June 30, 2021, relates to the tax effect of the post acquisition change in derivative related assets. The following is a summary of the deferred tax liability during the six months ended June 30, 2021:

Beginning balance at January 1, 2021	$	-
Acquisition of Whinstone		37,761
Deferred income tax expense		3,730
Ending balance at June 30, 2021	$	41,491

Schedule of Reconciliation of Numerator and Denominator

The following is a reconciliation of the numerator and denominator of the diluted net income (loss) per share computations for the periods presented below (in thousands except for share and per share amounts):

	Three Months Ended June 30,					Six Months Ended June 30,
	2021		2020			2021		2020
Basic and diluted income (loss) per share:
Net income (loss)	$	19,337	$	(10,590	)	$	26,867	$	(14,867	)

Basic weighted average number of shares outstanding		88,681,338		34,528,836			85,937,612		31,591,846
Add:				-					-
Options to purchase common stock		10,627		-			10,697		-
Unvested restricted stock awards		546,880		-			550,759		-
Convertible Series B preferred shares		2,199		-			2,403		-
Diluted weighted average number of shares outstanding		89,241,044		34,528,836			86,501,471		31,591,846

Basic net income (loss) per share	$	0.22	$	(0.31	)	$	0.31	$	(0.47	)

Diluted net income (loss) per share	$	0.22	$	(0.31	)	$	0.31	$	(0.47	)

Schedule of Antidilutive Securities

Securities that could potentially dilute income (loss) per share in the future were not included in the computation of diluted income (loss) per share at June 30, 2021 and 2020 because their inclusion would be anti-dilutive are as follows:

	June 30, 2021		June 30, 2020
Warrants to purchase common stock		-		3,554,257
Options to purchase common stock		12,000		12,000
Unvested restricted stock awards		635,845		1,313,455
Convertible Series B preferred shares		2,199		4,199
Total		650,044		4,883,911