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

Annual report pursuant to Section 13 and 15(d)

Restatement of Previously Issued Interim Condensed Consolidated Financial Statements

Restatement of Previously Issued Interim Condensed Consolidated Financial Statements

12 Months Ended

Dec. 31, 2022

Restatement of Interim Financial Information Disclosure [Abstract]

Restatement of Previously Issued Interim Condensed Consolidated Financial Statements

Note 23. Restatement of Previously Issued Interim Condensed Consolidated Financial Statements

The following tables present the impacts of the restatement adjustments, as described in Note 2. Restatement of Previously Issued Financial Statements, to the previously reported financial information as of and for the periods ended March 31, 2022 and 2021, June 30, 2022 and 2021, and September 30, 2022 and 2021. Restated Statements of Stockholders’ Equity are not presented as all impacted items on those statements, Net income (loss), Accumulated deficit, and Total stockholders’ equity, are presented within the following tables.

Restated Condensed Consolidated Balance Sheets (Unaudited)


	As of March 31, 2022 (unaudited)						As of March 31, 2021 (unaudited)
	As previously						As previously
	reported		Adjustment		As restated		reported		Adjustment		As restated
ASSETS
Current assets
Cash and cash equivalents	$	113,581	$	—	$	113,581	$	241,012	$	—	$	241,012
Accounts receivable, net		16,019		—		16,019		—		—		—
Costs and estimated earnings in excess of billings		11,058		—		11,058		—		—		—
Prepaid expenses and other current assets		20,958		—		20,958		629		—		629
Bitcoin		189,634		(8,002)		181,632		34,567		(3,814)		30,753
Future power credits, current portion		79,261		—		79,261		—		—		—
Investments in marketable equity securities, at fair value		9,193		—		9,193		—		—		—
Total current assets		439,704		(8,002)		431,702		276,208		(3,814)		272,394

Property and equipment, net		338,632		—		338,632		28,306		—		28,306
Deposits		330,360		—		330,360		70,730		—		70,730
Finite-lived intangible assets, net		13,723		—		13,723		351		—		351
Goodwill		335,648		—		335,648		—		—		—
Derivative asset		69,762		—		69,762		—		—		—
Operating lease right-of-use assets		21,616		—		21,616		—		—		—
Other long-term assets		310		—		310		310		—		310
Total assets	$	1,549,755	$	(8,002)	$	1,541,753	$	375,905	$	(3,814)	$	372,091

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	11,269	$	—	$	11,269	$	2,904	$	—	$	2,904
Billings in excess of costs and estimated earnings		4,963		—		4,963		—		—		—
Accrued expenses		16,430		—		16,430		4,432		—		4,432
Deferred revenue, current portion		2,747		—		2,747		97		—		97
Contingent consideration liability - future power credits, current portion		79,261		—		79,261		—		—		—
Operating lease liability, current portion		1,507		—		1,507		—		—		—
Total current liabilities		116,177		—		116,177		7,433		—		7,433

Deferred revenue, less current portion		19,328		—		19,328		655		—		655
Operating lease liability, less current portion		20,346		—		20,346		—		—		—
Other long-term liabilities		6,220		—		6,220		—		—		—
Total liabilities		162,071		—		162,071		8,088		—		8,088

Stockholders’ equity
Preferred stock, no par value:
2% Series A Convertible Preferred stock		—		—		—		—		—		—
0% Series B Convertible Preferred stock		—		—		—		11		—		11
Common stock, no par value		1,589,893		—		1,589,893		590,188		—		590,188
Accumulated deficit		(202,209)		(8,002)		(210,211)		(222,382)		(3,814)		(226,196)
Total stockholders’ equity		1,387,684		(8,002)		1,379,682		367,817		(3,814)		364,003
Total liabilities and stockholders’ equity	$	1,549,755	$	(8,002)	$	1,541,753	$	375,905	$	(3,814)	$	372,091


	As of June 30, 2022 (unaudited)						As of June 30, 2021 (unaudited)
	As previously						As previously
	reported		Adjustment		As restated		reported		Adjustment		As restated
ASSETS
Current assets
Cash and cash equivalents	$	270,483	$	—	$	270,483	$	147,183	$	—	$	147,183
Accounts receivable, net		16,091		—		16,091		27		—		27
Costs and estimated earnings in excess of billings		13,779		—		13,779		—		—		—
Prepaid expenses and other current assets		12,999		—		12,999		1,060		—		1,060
Bitcoin		126,574		(8,727)		117,847		48,254		(4,142)		44,112
Future power credits, current portion		54,477		—		54,477		—		—		—
Investments in marketable equity securities, at fair value		2,028		—		2,028		24,799		—		24,799
Total current assets		496,431		(8,727)		487,704		221,323		(4,142)		217,181

Property and equipment, net		424,744		—		424,744		142,315		—		142,315
Deposits		363,010		—		363,010		78,861		—		78,861
Finite-lived intangible assets, net		13,371		—		13,371		89,713		—		89,713
Goodwill		—		—		—		253,909		—		253,909
Derivative asset		130,693		—		130,693		30,360		—		30,360
Operating lease right-of-use assets		21,166		—		21,166		6,440		—		6,440
Future power credits, less current portion		—		—		—		83,138		—		83,138
Other long-term assets		310		—		310		310		—		310
Total assets	$	1,449,725	$	(8,727)	$	1,440,998	$	906,369	$	(4,142)	$	902,227

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	18,761	$	—	$	18,761	$	28,607	$	—	$	28,607
Billings in excess of costs and estimated earnings		6,389		—		6,389		—		—		—
Accrued expenses		16,771		—		16,771		4,464		—		4,464
Deferred revenue, current portion		2,651		—		2,651		2,724		—		2,724
Contingent consideration liability - future power credits, current portion		54,477		—		54,477		—		—		—
Operating lease liability, current portion		1,518		—		1,518		1,680		—		1,680
Total current liabilities		100,567		—		100,567		37,475		—		37,475

Deferred revenue, less current portion		18,851		—		18,851		20,789		—		20,789
Operating lease liability, less current portion		19,968		—		19,968		6,620		—		6,620
Contingent consideration liability - future power credits, less current portion		—		—		—		83,138		—		83,138
Deferred tax liability		—		—		—		41,491		—		41,491
Other long-term liabilities		8,274		—		8,274		2,693		—		2,693
Total liabilities		147,660		—		147,660		192,206		—		192,206

Stockholders’ equity
Preferred stock, no par value:
2% Series A Convertible Preferred stock		—		—		—		—		—		—
0% Series B Convertible Preferred stock		—		—		—		11		—		11
Common stock, no par value		1,857,108		—		1,857,108		917,197		—		917,197
Accumulated deficit		(555,043)		(8,727)		(563,770)		(203,045)		(4,142)		(207,187)
Total stockholders’ equity		1,302,065		(8,727)		1,293,338		714,163		(4,142)		710,021
Total liabilities and stockholders’ equity	$	1,449,725	$	(8,727)	$	1,440,998	$	906,369	$	(4,142)	$	902,227


	As of September 30, 2022 (unaudited)						As of September 30, 2021 (unaudited)
	As previously						As previously
	reported		Adjustment		As restated		reported		Adjustment		As restated
ASSETS
Current assets
Cash and cash equivalents	$	254,974	$	—	$	254,974	$	57,880	$	—	$	57,880
Accounts receivable, net		17,385		—		17,385		3,632		—		3,632
Costs and estimated earnings in excess of billings		15,119		—		15,119		—		—		—
Prepaid expenses and other current assets		22,100		—		22,100		1,552		—		1,552
Bitcoin		125,151		(4,593)		120,558		102,313		(10,834)		91,479
Future power credits, current portion		39,996		—		39,996		—		—		—
Investments in marketable equity securities, at fair value		2,170		—		2,170		13,647		—		13,647
Total current assets		476,895		(4,593)		472,302		179,024		(10,834)		168,190

Property and equipment, net		650,191		—		650,191		214,251		—		214,251
Deposits		178,502		—		178,502		94,416		—		94,416
Finite-lived intangible assets, net		13,017		—		13,017		84,807		—		84,807
Goodwill		—		—		—		253,737		—		253,737
Derivative asset		112,944		—		112,944		37,773		—		37,773
Operating lease right-of-use assets		21,763		—		21,763		6,692		—		6,692
Future power credits, less current portion		—		—		—		83,397		—		83,397
Other long-term assets		310		—		310		310		—		310
Total assets	$	1,453,622	$	(4,593)	$	1,449,029	$	954,407	$	(10,834)	$	943,573

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	12,664	$	—	$	12,664	$	14,651	$	—	$	14,651
Billings in excess of costs and estimated earnings		11,229		—		11,229		—		—		—
Accrued expenses		38,915		—		38,915		7,252		—		7,252
Deferred revenue, current portion		2,555		—		2,555		2,546		—		2,546
Contingent consideration liability - future power credits, current portion		39,996		—		39,996		—		—		—
Operating lease liability, current portion		1,699		—		1,699		1,125		—		1,125
Total current liabilities		107,058		—		107,058		25,574		—		25,574

Deferred revenue, less current portion		18,364		—		18,364		20,256		—		20,256
Operating lease liability, less current portion		20,510		—		20,510		7,254		—		7,254
Contingent consideration liability - future power credits, less current portion		—		—		—		83,397		—		83,397
Deferred tax liability		—		—		—		41,491		—		41,491
Other long-term liabilities		8,319		—		8,319		6,120		—		6,120
Total liabilities		154,251		—		154,251		184,092		—		184,092

Stockholders’ equity
Preferred stock, no par value:
2% Series A Convertible Preferred stock		—		—		—		—		—		—
0% Series B Convertible Preferred stock		—		—		—		11		—		11
Common stock, no par value		1,890,983		—		1,890,983		988,692		—		988,692
Accumulated deficit		(591,612)		(4,593)		(596,205)		(218,388)		(10,834)		(229,222)
Total stockholders’ equity		1,299,371		(4,593)		1,294,778		770,315		(10,834)		759,481
Total liabilities and stockholders’ equity	$	1,453,622	$	(4,593)	$	1,449,029	$	954,407	$	(10,834)	$	943,573

Restated Condensed Consolidated Statements of Operations (Unaudited)


	For the three months ended March 31, 2022 (unaudited)
	As previously
	reported		Adjustment		As restated
Revenue:
Bitcoin Mining	$	57,945	$	—	$	57,945
Data Center Hosting		9,694		—		9,694
Engineering		12,124		—		12,124
Other revenue		24		—		24
Total revenue		79,787		—		79,787

Costs and expenses:
Cost of revenue:
Bitcoin Mining		19,094		—		19,094
Data Center Hosting		14,985		—		14,985
Engineering		11,549		—		11,549
Selling, general, and administrative		10,910		—		10,910
Depreciation and amortization		14,245		—		14,245
Change in fair value of derivative asset		(46,235)		—		(46,235)
Change in fair value of contingent consideration		176		—		176
Realized gain on sale/exchange of Bitcoin		(9,236)		(429)		(9,665)
Impairment of Bitcoin		26,390		(520)		25,870
Total costs and expenses		41,878		(949)		40,929
Operating income (loss)		37,909		949		38,858

Other income (expense):
Interest income (expense)		(357)		—		(357)
Unrealized loss on marketable equity securities		(1,611)		—		(1,611)
Total other income (expense)		(1,968)		—		(1,968)

Net income (loss) before taxes		35,941		949		36,890

Current income tax benefit (expense)		(312)		—		(312)
Deferred income tax benefit (expense)		—		—		—
Total income tax benefit (expense)		(312)		—		(312)

Net income (loss)		35,629		949		36,578
Net (income) loss attributable to non-controlling interest		—		—		—
Net income (loss) attributable to Riot Platforms, Inc.	$	35,629	$	949	$	36,578

Basic and diluted net income (loss) per share	$	0.30	$	0.01	$	0.31
Basic and diluted weighted average number of shares outstanding		117,042,347		—		117,042,347


	For the three months ended June 30, 2022 (unaudited)						For the six months ended June 30, 2022 (unaudited)
	As previously						As previously
	reported		Adjustment		As restated		reported		Adjustment		As restated
Revenue:
Bitcoin Mining	$	46,151	$	—	$	46,151	$	104,096	$	—	$	104,096
Data Center Hosting		9,834		—		9,834		19,528		—		19,528
Engineering		16,938		—		16,938		29,062		—		29,062
Other revenue		24		—		24		48		—		48
Total revenue		72,947		—		72,947		152,734		—		152,734

Costs and expenses:
Cost of revenue:
Bitcoin Mining		17,995		—		17,995		37,089		—		37,089
Data Center Hosting		15,184		—		15,184		30,169		—		30,169
Engineering		15,175		—		15,175		26,724		—		26,724
Acquisition-related costs		—		—		—		78		—		78
Selling, general, and administrative		10,713		—		10,713		21,545		—		21,545
Depreciation and amortization		20,562		—		20,562		34,807		—		34,807
Change in fair value of derivative asset		(60,931)		—		(60,931)		(104,614)		—		(104,614)
Power curtailment credits		(5,706)		—		(5,706)		(8,258)		—		(8,258)
Change in fair value of contingent consideration		—		—		—		176		—		176
Realized gain on sale/exchange of Bitcoin		(14,353)		(907)		(15,260)		(23,589)		(1,336)		(24,925)
Gain on exchange of equipment		(8,614)		—		(8,614)		(8,614)		—		(8,614)
Impairment of Bitcoin		99,787		1,632		101,419		126,177		1,112		127,289
Impairment of goodwill		335,648		—		335,648		335,648		—		335,648
Total costs and expenses		425,460		725		426,185		467,338		(224)		467,114
Operating income (loss)		(352,513)		(725)		(353,238)		(314,604)		224		(314,380)

Other income (expense):
Interest income (expense)		—		—		—		(357)		—		(357)
Realized loss on sale of marketable equity securities		(1,624)		—		(1,624)		(1,624)		—		(1,624)
Unrealized loss on marketable equity securities		(4,837)		—		(4,837)		(6,448)		—		(6,448)
Other income (expense)		(59)		—		(59)		(59)		—		(59)
Total other income (expense)		(6,520)		—		(6,520)		(8,488)		—		(8,488)

Net income (loss) before taxes		(359,033)		(725)		(359,758)		(323,092)		224		(322,868)

Current income tax benefit (expense)		(427)		—		(427)		(739)		—		(739)
Deferred income tax benefit (expense)		6,626		—		6,626		6,626		—		6,626
Total income tax benefit (expense)		6,199		—		6,199		5,887		—		5,887

Net income (loss)		(352,834)		(725)		(353,559)		(317,205)		224		(316,981)

Basic and diluted net income (loss) per share	$	(2.71)	$	(0.01)	$	(2.71)	$	(2.56)	$	0.00	$	(2.56)
Basic and diluted weighted average number of shares outstanding		130,405,502		—		130,405,502		123,760,839		—		123,760,839


	For the three months ended September 30, 2022 (unaudited)						For the nine months ended September 30, 2022 (unaudited)
	As previously						As previously
	reported		Adjustment		As restated		reported		Adjustment		As restated
Revenue:
Bitcoin Mining	$	22,070	$	—	$	22,070	$	126,166	$	—	$	126,166
Data Center Hosting		8,371		—		8,371		27,899		—		27,899
Engineering		15,824		—		15,824		44,886		—		44,886
Other revenue		25		—		25		73		—		73
Total revenue		46,290		—