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

Quarterly report pursuant to Section 13 or 15(d)

Fair value measurements (Tables)

Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Weighted Average Unobservable Inputs

A summary of weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s Notes and Warrants at the issuance date of January 28, 2019 and during the conversion of the Notes as of June 27, 2019, are as follows:

Senior Secured Promissory Notes:

	January 28, 2019		As of June 27, 2019
		(Unaudited)		(Unaudited)
Dividend yield		0%		0%
Expected price volatility		119.5%		122.2%-127.1%
Risk free interest rate		2.60%		2.07%-2.44%
Expected term		1 year		—

Warrants:

	January 28, 2019		As of June 27, 2019
		(Unaudited)		(Unaudited)
Dividend yield		0%		0
Expected price volatility		111.6%		119.9%-120.5%
Risk free interest rate		2.58%		2.23%-2.58%
Expected term		5 years		4 years, 10 months

Schedule of Changes in Level 3 Liabilities Measured at Fair Value

The following table presents changes in Level 3 liabilities measured at fair value for the nine months ended September 30, 2019.

	Convertible Notes			Warrant Liability
Issuance of senior secured convertible notes	$	6,330,726		$	—
Issuance of warrants in connection with convertible notes		—			2,568,934
Balance at January 28, 2019		6,330,726			2,568,934
Change in fair value		1,644,582			2,753,228
Balance at March 31, 2019		7,975,308			5,322,162
Change in fair value		2,250,651			116,498
Conversion of convertible notes to common stock		(10,225,959	)		—
Reclassification of warrant liability to equity		—			(5,438,660	)
Balance at September 30, 2019	$	—		$	—