Financial Performance - Total assets increased to $13,133,672 in 2021 from $1,551,892 in 2020, representing a growth of approximately 747%[18] - Validator revenue for the three months ended September 30, 2021, was $323,376, compared to $0 in the same period of 2020[20] - Gross profit for the three months ended September 30, 2021, was $251,686, with a gross margin of approximately 77.9%[20] - Total operating expenses for the three months ended September 30, 2021, were $5,311,132, significantly higher than $879,954 in the same period of 2020[20] - Net loss attributable to common stockholders for the three months ended September 30, 2021, was $3,855,525, compared to a loss of $1,005,324 in 2020[20] - For the nine months ended September 30, 2021, the net loss was $15,466,585, compared to a net loss of $1,795,897 for the same period in 2020, indicating a significant increase in losses[31] - The company reported a net loss per share attributable to common stockholders of $0.59 for the three months ended September 30, 2021, compared to $0.33 in 2020[20] - Operating expenses for the nine months ended September 30, 2021, were approximately $15.6 million, compared to $1.4 million in the same period of 2020, largely due to $13.3 million in stock-based compensation expense[173] - Net loss for the nine months ended September 30, 2021, was approximately $15.5 million, up from $1.8 million in the same period of 2020[176] Cash and Assets - Cash and digital assets increased to $3,818,907 in 2021 from $1,519,787 in 2020, indicating a growth of approximately 151%[18] - The company reported a cash balance of $658,931 at the end of the period, up from $364,703 at the end of the same period in 2020[31] - As of September 30, 2021, the fair market value of the Company's liquid digital assets was approximately $6.2 million, with cash reserves of approximately $0.66 million, ensuring adequate funding for operations for at least the next twelve months[44] - The fair market value of the company's liquid digital assets was approximately $6.2 million as of September 30, 2021, indicating a stable asset base[187] - As of November 4, 2021, the fair market value of the company's digital assets was approximately $45.7 million[150] Stock and Equity - The company had a total of 10,102,711 common shares outstanding as of September 30, 2021, up from 4,201,035 shares in 2020[18] - The company executed a 1-for-10 reverse stock split effective August 13, 2021, adjusting the conversion ratios for preferred stock accordingly[39] - The Company plans to continue raising funds through the sale of common stock and issuance of debt to support operations over the next twelve months[43] - The Company raised $9.5 million through a private placement of 950,000 shares of common stock and warrants on March 4, 2021[87] - The Series C-2 Convertible Preferred Stock was subscribed for $1,100,000, with a recognized compensation expense of $179,277 due to fair value differences[94] - The Series C-2 was reclassified to permanent equity after stockholder approval on March 31, 2021, following the initial classification as temporary equity[98] - The Company issued a $1,000,000 promissory note on January 15, 2021, with similar terms as the previous note, including a 12% interest rate and a 35% discount conversion feature[79] Operational Developments - The company is developing a proprietary staking-as-a-service platform aimed at securing proof-of-stake blockchains, which is expected to be a core focus going forward[35] - A proprietary digital asset data analytics platform is under development to enable users to aggregate portfolio holdings from multiple exchanges and wallets[36] - The company has resumed its blockchain infrastructure operations, focusing on transaction validation services[35] - The company currently operates validator nodes on Ethereum's beacon chain, Cardano, Tezos, Avalanche, and Cosmos[144] - The company is developing a digital asset data analytics dashboard to allow users to evaluate their crypto portfolios across multiple exchanges[151] - The dashboard will include a staking-as-a-service feature for users to delegate tokens to company-operated validator nodes[152] Financial Strategy and Funding - The Company received net proceeds of approximately $14.6 million from various equity and debt instruments during the nine months ended September 30, 2021[44] - The company generated net cash provided by financing activities of $13,506,039 for the nine months ended September 30, 2021, compared to $1,885,494 in the same period of 2020[31] - The company has no off-balance sheet transactions or guarantees beyond normal business operations, ensuring transparency in financial reporting[188] - The company anticipates hiring a new Chief Financial Officer by December 31, 2021, following the resignation of the previous CFO on November 4, 2021[201] Compliance and Governance - The company has effective disclosure controls and procedures in place, as confirmed by the evaluation conducted by the CEO and CFO[191] - The company has filed various Inline XBRL documents to enhance transparency and compliance with regulatory requirements[211] - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the most recently completed fiscal quarter[193] - The company is currently assessing the impact of recent accounting standards on its financial statements and disclosures, including ASU 2019-12 and ASU 2020-06[73][74]
BTCS(BTCS) - 2021 Q3 - Quarterly Report