The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result in our possible inability to continue as a going concern. continuing to evaluate opportunities for investments in the, evaluating options to monetize, partner or license the Company's assets, including appendicitis product portfolio; and, On April 10, 2017, the Company was notified by The NASDAQ Stock Market, LLC of its failure to comply with Nasdaq Listing Rule 5605 (the "Rule") which, Comparative Results for the Nine Months Ended September 30, 2017 and 2016, During each of the nine month periods ended September 30, 2017 and 2016, $73,000 of license payments under the License Agreement was recognized as revenue. Is Riot Blockchain undervalued compared to its fair value and its price relative to the market? Decreases in prepaid and other current assets of $192,000 provided cash, primarily related to reductions in operating activities. It is involved in digital currency mining operation, which utilizes specialized computers that generate digital…. Quantitative and Qualitative Disclosures About Market Risk. This includes the use of the service in U.S. states where crypto exchanges are not legalized, which points to a restricted range of customers to begin with. Accelerating Growth: Unable to compare RIOT's earnings growth over the past year to its 5-year average as it is currently unprofitable. Cash was consumed from continuing operations by the loss of $7,404,000, less non-cash items of $5,113,000 in non-cash items consisting of amortization of debt discount to interest of $4,750,000, stock-based compensation totaling $380,000, depreciation and amortization totaling $56,000, net of amortization of license fees totaling $73,000. Diluted net income (loss) per share reflect the potential dilution of securities that could share in the Company's income (loss). All rights reserved. Therefore, the determination of estimates requires the exercise of judgment. Level 1— quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 — observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and. In August 2015, the FASB issued ASU 2015-14. The Company is renting space in the building under short-term lease agreements that provide certain storage space. Acquisition and Discontinued Operations: On September 12, 2016, the Company completed the strategic acquisition of BDI, a privately-held entity. The Company performs a goodwill impairment analysis in the fourth quarter of each year, or whenever there is an indication of impairment. Please use the Advanced Chart if you want to have more than one view.

If left undetected, the hacker could have been able to steal an additional $150 million. Cryptocurrency holders have realized exponential value due to large increases in the prices of cryptocurrencies and may seek to lock in cryptocurrency appreciation, which investing in the Company’s securities may be perceived as a way to achieve that result, but may l not continue in the future.

The impact of geopolitical events on the supply and demand for cryptocurrencies is uncertain. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective as of September 30, 2017.

The specified conditions were successfully completed as of September 20, 2017, resulting in the conversion of $4,750,000 in principal and accrued interest of $48,671 for a total of $4,798,671 worth of convertible notes, exchanged for 19,194.72 shares of Series A Preferred Stock, with a stated value of $250 per share, equaling rights to 1,919,472 shares of common stock. Cryptocurrency exchanges and other trading venues (including the Company’s Coinsquare exchange) are relatively new and, in most cases, largely unregulated and may therefore may be subject to fraud and failures. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update No. Although the Company does not participate in ICOs, its clients and customers may participate in ICOs and these actions may be a prelude to further action which chills widespread acceptance of blockchain and cryptocurrency adoption and have a material adverse effect the ability of the Company to continue as a going concern or to pursue this segment at all, which would have a material adverse effect on the business, prospects or operations of the Company.

As an alternative to gold or fiat currencies that are backed by central governments, cryptocurrencies, which are relatively new, are subject to supply and demand forces. Three and Nine Months Ended September 30, Operating loss from continuing operations, Gain on property and equipment sale (Note 3), Total income (loss) from discontinued operations, Basic and diluted net income (loss) per share (Note 1), Basic and diluted net loss per share (Note 1), Basic and diluted weighted average number of shares outstanding (Note 1), Consolidated Statement of Stockholders’ Equity, Private placement of Common Stock (Note 6), Common Shares in escrow forfeited and retired (Note 6). Of the total amount paid, $291,995 was charged to stockholders’ equity and $7,505 was charged to compensation expense. There is a risk that some or all of the Company's coins could be lost or stolen. Convertible Note Private Placement offering: In March 2017, the Company completed a 2% convertible note financing with certain accredited investors with gross proceeds totaling $4,750,000. The API will also track the location and identity of users “in order to prevent fraud and improper use of its RiotX exchange”, as explained by the company. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. The Company’s 10.9% investment in Coinsquare is accounted for on the cost method. The WU License Agreement contains customary terms for confidentiality, prosecution and infringement provisions for licensed patents, publication rights, indemnification and insurance coverage. How has Riot Blockchain performed over the past 5 years? Please note you can display only one indicator at a time in this view. The malicious actor or botnet could control, exclude or modify the ordering of transactions, though it could not generate new units or transactions using such control. We expect to continue to incur losses from operations for the near-term and these losses could be significant as we incur costs and expenses associated with our recent and potential future investments, as well as public company and administrative related expenses are incurred and any possible expenses which may be incurred from final shutdown of BDI’s operations. Consolidated Statement of Stockholders’ Equity. As of December 31, 2019, approximately 7,400 of the miners were installed and operating. Such a restriction could result in the Company liquidating its inventory at unfavorable prices and may adversely affect the Company's shareholders and have a material adverse effect on the ability of the Company to continue as a going concern or to pursue this segment at all, raise new capital or maintain a securities listing with an exchange (such as the Company’s current listing with NASDAQ) which would have a material adverse effect on the business, prospects or operations of the Company and harm investors in the Company’s securities. Such events would have a material adverse effect on the ability of the Company to continue as a going concern or to pursue this segment at all, which would have a material adverse effect on the business, prospects or operations of the Company and potentially the value of any cryptocurrencies the Company holds or expects to acquire for its own account. Note 9. Riot Blockchain is planning to launch a regulated crypto exchange in the U.S. The effect of any future regulatory change on the Company or any cryptocurrency that the Company may mine or hold for others is impossible to predict, and such change could have a material adverse effect on the ability of the Company to continue as a going concern or to pursue this segment at all, which would have a material adverse effect on the business, prospects or operations of the Company. The Company has experienced recurring losses and negative cash flows from operations. Temporary Reduction in Warrant Exercise Prices: On October 10, 2017, the Company’s Board of Directors approved a temporary reduction in the exercise price of warrants issued in the March 2017 private offerings to $3.00 per share. The shareholders of Kairos also will receive a royalty to be paid from cash flow generated from operations, which shall entitle such shareholders to receive 40% of the gross profits generated on a monthly basis until they have received a total of $1,000,000, at which point the royalty is extinguished. He has been Chief Executive Officer at Riot ... Show more. In connection with the private placements, the Company also entered into a registration rights agreement, with the investors pursuant to which the Company agreed to file a registration statement covering the resale of the shares of common stock issuable upon exercise or conversion of the securities and to maintain its effectiveness until all such securities have been sold or may be sold without restriction. To the extent that the profit margins of bitcoin mining operations are not high, operators of bitcoin mining operations are more likely to immediately sell bitcoins earned by mining in the market, resulting in a reduction in the price of bitcoins that could adversely impact the Company and similar actions could affect other cryptocurrencies. 337927). Effective January 14, 2017, the Company adopted a plan to exit the business of BiOptix Diagnostics, Inc. ("BDI") and commenced a significant reduction in the workforce. The Company is currently evaluating the impact that the adoption of ASU 2017-09 will have on its consolidated financial statements. Upon consummation of the Merger, the separate existence of Merger Sub ceased. Based upon the Company’s experience, approximately 80% of the outstanding September 30, 2017 nonvested stock options, or approximately 24,000 options, are expected to vest in the future, under their terms. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements.

In order to incentivize miners to continue to contribute processing power to the network, the network may either formally or informally transition from a set reward to transaction fees earned upon solving for a block. The ESG Ratings model is based on a carefully crafted and applied list of KeyMetrics® that result in an overall ESG concern level as expressed by Red (High Concern), Yellow (Average Concern), and Green (Low Concern) flags. Read More The company was founded on July 24, 2000 and is headquartered in Castle Rock, CO. Although currently bitcoins, Ethereum, and other cryptocurrencies, the blockchain and digital assets generally are not regulated or are lightly regulated in most countries, including the United States, one or more countries such as China and Russia may take regulatory actions in the future that could severely restrict the right to acquire, own, hold, sell or use these digital assets or to exchange for fiat currency.

Basic net income (loss) per share includes no dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period, excluding any nonvested restricted common shares. The total fair value of restricted stock granted, net of forfeitures, during the nine months ended September 30, 2017 was approximately $1,431,000, including approximately $136,000 which vested in the period. A decile score of 1 indicates lower governance risk, while a 10 indicates higher governance risk. In many of these instances, the customers of the closed exchanges were not compensated or made whole for partial or complete losses of their account balances.