BTCS (BTCS) 10-Q/A 12 Oct 18 2018 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Oct. 11, 2018
Document And Entity Information
Entity Registrant Name	BTCS Inc.
Entity Central Index Key	1,436,229
Document Type	10-Q/A
Document Period End Date	Jun. 30, 2018
Amendment Flag	true
Amendment Description	This is Amendment No. 1 on Form 10-Q/A ("Amendment No. 1") to the Quarterly Report on Form 10-Q for the three and six months ended June 30, 2018, as originally filed with the Securities and Exchange Commission (the "SEC") on July 23, 2018 (the "Original Filing") by BTCS Inc. (the "Company", "we", "us", or "our"). The purpose of this amendment is to correct errors in the Company's previously issued financial statements for the period ended March 31, 2018 in connection with the accounting for digital currencies as intangible assets with indefinite lives and record such digital currencies at cost less impairment. Other than the updated accounting treatment and disclosure that is as of June 30, 2018, the remaining disclosure in the Original Filing has been updated as necessary.
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		372,605,986
Trading Symbol	BTCS
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 32,440	$ 303,334
Digital currencies	96,710	217,119
Prepaid expense	68,333	67,736
Total current assets	197,483	588,189
Other assets:
Property and equipment, net	3,388	1,235
Total other assets	3,388	1,235
Total Assets	200,871	589,424
Liabilities and Stockholders' Equity:
Accounts payable and accrued expense	69,067	75,997
Total current liabilities	69,067	75,997
Stockholders' equity:
Common stock, 975,000,000 shares authorized at 0.001 par value, 372,337,169 and 363,043,769 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	372,337	363,044
Additional paid in capital	114,657,833	114,667,080
Accumulated deficit	(114,898,395)	(114,516,772)
Total stockholders' equity	131,804	513,427
Total Liabilities and stockholders' equity	200,871	589,424
Series B Convertible Preferred Stock [Member]
Stockholders' equity:
Preferred stock; 20,000,000 shares authorized at 0.001 par value:		25
Series C-1 Convertible Preferred Stock [Member]
Stockholders' equity:
Preferred stock; 20,000,000 shares authorized at 0.001 par value:	$ 29	$ 50

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	975,000,000	975,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	372,337,169	363,043,769
Common stock, shares outstanding	372,337,169	363,043,769
Series B Convertible Preferred Stock [Member]
Preferred stock, shares issued	0	25,877
Preferred stock, shares outstanding	0	25,877
Preferred stock, liquidation preference per share	$ 0.001	$ 0.001
Series C-1 Convertible Preferred Stock [Member]
Preferred stock, shares issued	29,414	29,414
Preferred stock, shares outstanding	29,414	29,414
Preferred stock, liquidation preference per share	$ 0.001	$ 0.001

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
E-commerce		$ 358		$ 3,539
Total revenues		358		3,539
Operating expenses :
General and administrative	234,129	215,022	489,792	394,408
Marketing	1,485	80	2,970	140
Total operating expenses	235,614	215,102	492,762	394,548
Net loss from operations	(235,614)	(214,744)	(492,762)	(391,009)
Other (expenses) income:
Fair value adjustments for warrant liabilities		1,485,813		(31,687,073)
Fair value adjustments for convertible notes				(16,849,071)
Realized gain on sale of digital currencies	18,926		111,139
Loss on issuance of Series C Convertible Preferred stock		(2,809,497)		(2,809,497)
Gain on extinguishment of debt		(6,870)		15,866,197
Gain on settlement of derivative liability		2,136,971		2,136,971
Loss from lease termination				(177,389)
Liquidated damages				(693,000)
Total other income (expense)	18,926	806,417	111,139	(34,212,862)
Net (loss) income	$ (216,688)	$ 591,673	$ (381,623)	$ (34,603,871)
Net loss per share, basic and diluted
Basic and Diluted	$ 0	$ 0.01	$ 0	$ (0.80)
Weighted average number of shares outstanding, basic and diluted
Basic and Diluted	371,326,525	66,171,066	369,781,431	43,079,285

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Net Cash flows used from operating activities:
Net loss	$ (381,623)	$ (34,603,871)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expenses	445	920
Issuance of common stock for services		10,000
Fair value adjustments for warrant liabilities		31,687,073
Fair value adjustments for convertible notes		16,849,071
Realized gain on sale of digital currencies	(111,139)
Proceeds from sale of digital currencies	231,548
Gain on extinguishment of debt		(15,866,197)
Loss from lease termination		177,389
Loss on issuance of Series C Convertible Preferred stock		2,809,497
Gain on settlement of derivative liability		(2,136,971)
Liquidated damages		693,000
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(597)	(28,019)
Accounts payable	(6,930)	(539,313)
Net cash used in operating activities	(268,296)	(947,421)
Net cash used in investing activities:
Purchase of property and equipment	(2,598)	(1,484)
Net cash used in investing activities	(2,598)	(1,484)
Net cash provided by financing activities:
Net proceeds from issuance of Series C Convertible Preferred Stock and warrants for cash in an offering		925,114
Payment to settle an investor loan		(54,000)
Net cash provided by financing activities		871,114
Net decrease in cash	(270,894)	(77,791)
Cash, beginning of period	303,334	95,068
Cash, end of period	32,440	17,277
Supplemental disclosure of non-cash financing and investing activities:
Conversion of Series B Convertible Preferred Stock to common stock	5,175	32,403
Conversion of Series C-1 Convertible Preferred Stock to common stock	4,118
Issuance of common stock due to Anti-Dilution provision		14,517
Cashless warrant exercise		24,628
Management redemption from escrow account		400
Fractional shares adjusted for reverse split		4
Issuance of common stock for settlement of debt		90,168,290
Preferred converted to Common Stock		(162)
Preferred issued for conversion of notes		$ 1,160

Business Organization and Natur

Business Organization and Nature of Operations	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Nature of Operations	Note 1 - Business Organization and Nature of Operations BTCS Inc. (formerly Bitcoin Shop, Inc.), a Nevada corporation (the “Company”) was incorporated in 2008. In February 2014, the Company entered the business of hosting an online ecommerce marketplace where consumers can purchase merchandise using digital currencies, including bitcoin and is currently focused on blockchain and digital currency ecosystems. In January 2015, the Company began a rebranding campaign using its BTCS.COM domain (shorthand for Blockchain Technology Consumer Solutions) to better reflect its broadened strategy. The Company released its new website which included broader information on its strategy. In late 2014 we shifted our focus towards our transaction verification service business, also known as bitcoin mining, though in mid-2016 we ceased our transaction verification services operation at our North Carolina facility due to capital constraints. Subject to additional financing, the Company plans to acquire additional Digital Assets to provide investors with indirect ownership of Digital Assets that are not securities, such as bitcoin and ether. The Company intends to acquire Digital Assets through open market purchases. Additionally, the Company may acquire Digital Assets by resuming its transaction verification services business through outsourced data centers and earning rewards in Digital Assets by securing their respective blockchains. We are not limiting our assets to a single type of Digital Asset and may purchase a variety of Digital Assets that appear to benefit our investors and/or blockchain, subject to the limitations regarding Digital Securities. The Company is also seeking to acquire controlling interests in businesses in the blockchain industry. We do not intend to operate outside of the Digital Asset and blockchain industries. The Company has not participated in any initial coin offerings as it believes most of the offerings entail the offering of Digital Securities and require registration under the Securities Act and under state securities laws, or can only be sold to accredited investors in the United States. Since about July 2017, initial coin offerings using Digital Securities have been (or should be) limited to accredited investors. Because we cannot qualify as an accredited investor, we do not intend to acquire coins in initial coin offerings or from purchasers in such offerings. Further, the Company does not intend to participate in registered or unregistered initial coin offerings. The Company will carefully review its purchases of Digital Securities to avoid violating the 1940 Act and seek to reduce potential liabilities under the federal securities laws. Digital asset blockchains are typically maintained by a network of participants which run servers which secure their blockchain. The market is rapidly evolving and there can be no assurances that we will be competitive with industry participants that have or may have greater resources than us.

Restatement of the Consolidated

Restatement of the Consolidated Financial Statements	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Restatement of the Consolidated Financial Statements	Note 2 - Restatement of the Consolidated Financial Statements The purpose of restatement is to correct errors in the Company’s previously issued financial statements for the period ended June 30, 2018 in connection with the accounting for digital currencies as intangible assets with indefinite lives and record such digital currencies at cost less impairment, if any. Management determined that the Company’s digital currencies for the three and six months ended June 30, 2018 were accounted for in error and were overstated by approximately $43,000. The originally filed accounting policy regarding digital currencies transactions and remeasurement stated that: “The Company accounts for digital currencies, which it considers to be an operating asset, at their initial cost and subsequently remeasures the carrying amounts of digital currencies it owns at each reporting date based on their current fair value. The changes in the fair value of digital currencies are included as a component of income or loss from operations. The Company currently classifies digital currencies as a current asset. Digital currencies are considered a crypto-currency and the Company receives deposits in various kinds of digital currencies including but not limited to bitcoins, litecoins and dogecoins from customer trade transactions. The Company obtains the equivalency rate of bitcoins to USD from various exchanges including, Bitstamp and Coinbase. The equivalency rate obtained from these sources represents a generally well recognized quoted price in an active market for bitcoins, which market and related database are accessible to the Company on an ongoing basis.” The updated accounting policy regarding digital currencies transactions and remeasurement state that: “Digital currencies are included in current assets in the consolidated balance sheets. Digital currencies are recorded at cost less impairment. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset that is amortized over the remaining useful life of that asset, if any. Subsequent reversal of impairment losses is not permitted. Realized gain (loss) on sale of digital currencies is included in other income (expense) in the consolidated statements of operations.” The effect of the restatement on the Company’s consolidated balance sheet as of June 30, 2018 are as follows: June 30, 2018 As Previously Reported Restatement Adjustment As Restated Digital currencies $ 139,655 $ (42,945 ) $ 96,710 Total current assets 240,428 (42,945 ) 197,483 Total Assets 243,816 (42,945 ) 200,871 Accumulated deficit (114,855,450 ) (42,945 ) (114,898,395 ) Total stockholders’ equity 174,749 (42,945 ) 131,804 Total Liabilities and stockholders’ equity 243,816 (42,945 ) 200,871 The effect of the restatement on the Company’s consolidated statement of operations for the three and six months ended June 30, 2018 are as follows: For the three months ended June 30, 2018 As Previously Reported Restatement Adjustment As Restated Total operating expenses 235,616 (2 ) 235,614 Net loss from operations (235,616 ) 2 (235,614 ) Revaluation of digital currencies (12,419 ) 12,419 - Realized gain on sale of digital currencies 11,265 7,661 18,926 Total other expenses (income) (1,154 ) 20,080 18,926 Net loss (236,770 ) 20,082 (216,688 ) Basic and Diluted Loss per Share (0.00 ) - (0.00 ) Basic and Diluted Shares 371,326,525 - 371,326,525 For the six months ended June 30, 2018 As Previously Reported Restatement Adjustment As Restated Total operating expenses 492,762 - 492,762 Net loss from operations (492,762 ) - (492,762 ) Revaluation of digital currencies (193,235 ) 193,235 - Realized gain (loss) on sale of digital currencies (51,914 ) 163,053 111,139 Total other expenses (income) (245,149 ) 356,288 111,139 Net loss (737,911 ) 356,288 (381,623 ) Basic and Diluted Loss per Share (0.00 ) - (0.00 ) Basic and Diluted Shares 369,781,431 - 369,781,431 The effect of the restatement on the Company’s consolidated statement of cash flows for the six months ended June 30, 2018 are as follows: For the six months ended June 30, 2018 As Previously Reported Restatement Adjustment As Restated Net loss $ (737,911 ) $ 356,288 $ (381,623 ) Change in fair value of digital currencies 193,235 (193,235 ) - Realized loss (gain) on sale of digital currencies 51,914 (163,053 ) (111,139 ) Net cash used in operating activities (499,844 ) 231,548 (268,296 ) Net cash provided by investing activities 231,548 (231,548 ) - The impacts of the restatement has been reflected throughout these financial statements, including the applicable footnotes, as appropriate

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 3 - Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but in the opinion of the Company’s management, reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The unaudited condensed consolidated financial statements and notes should be read in conjunction with the financial statements and notes for the year ended December 31, 2017.

Liquidity, Financial Condition

Liquidity, Financial Condition and Management's Plans	6 Months Ended
	Jun. 30, 2018
Liquidity Financial Condition And Managements Plans
Liquidity, Financial Condition and Management's Plans	Note 4 - Liquidity, Financial Condition and Management’s Plans The Company has commenced its planned operations but has limited operating activities to date. The Company has financed its operations since inception using proceeds received from capital contributions made by its officers and proceeds in financing transactions. Notwithstanding, the Company has limited revenues, limited capital resources and is subject to all of the risks and uncertainties that are typical of an early stage enterprise. Significant uncertainties include, among others, whether the Company will be able to raise the capital it needs to finance its longer-term operations and whether such operations, if launched, will enable the Company to sustain operations as a profitable enterprise. Our working capital needs are influenced by our level of operations, and generally decrease with higher levels of revenue. The Company used approximately $0.3 million of cash in its operating activities for the six months ended June 30, 2018. The Company incurred $0.4 million net loss for the six months ended June 30, 2018. The Company had cash of approximately $32,000, digital currencies of approximately $97,000 and a working capital of approximately $0.1 million at June 30, 2018. The Company expects to incur losses into the foreseeable future as it undertakes its efforts to execute its business plans. The Company will require significant additional capital to sustain its short-term operations and make the investments it needs to execute its longer-term business plan. The Company’s existing liquidity is not sufficient to fund its operations and anticipated capital expenditures for the foreseeable future. The Company is currently seeking to obtain additional debt or equity financing, however there are currently no commitments in place for further financing nor is there any assurance that such financing will be available to the Company on favorable terms, if at all. Because of recurring operating losses, net operating cash flow deficits, and an accumulated deficit, there is substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of the financial statements. The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has not made adjustments to the accompanying condensed consolidated financial statements to reflect the potential effects on the recoverability and classification of assets or liabilities should the Company be unable to continue as a going concern. The Company continues to incur ongoing administrative and other operating expenses, including public company expenses, in excess of revenues. While the Company continues to implement its business strategy, it intends to finance its activities by: ● managing current cash and cash equivalents on hand from the Company’s past debt and equity offerings by controlling costs, ● seeking additional financing through sales of additional securities

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 5 - Summary of Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2017 Annual Report. Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary BTCS Digital Manufacturing. All significant intercompany balances and transactions have been eliminated in consolidation. Concentration of Cash The Company maintains cash balances at two financial institutions in checking accounts and money market accounts. The Company considers all highly liquid investments with original maturities of six months or less when purchased to be cash and cash equivalents. As of June 30, 2018 and December 31, 2017, the Company had approximately $32,000 and $303,000 in cash and cash equivalents. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. Digital Currencies Translations and Remeasurements Digital currencies are included in current assets in the consolidated balance sheets. Digital currencies are recorded at cost less impairment. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset that is amortized over the remaining useful life of that asset, if any. Subsequent reversal of impairment losses is not permitted. Realized gain (loss) on sale of digital currencies is included in other income (expense) in the consolidated statements of operations. Use of Estimates The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). This requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. The Company’s significant estimates and assumptions include the recoverability and useful lives of long-lived assets, stock-based compensation, the valuation of derivative liabilities, and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates, including the carrying amount of the intangible assets, could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions. Fair Value of Financial Instruments Financial instruments, including cash and cash equivalents, accounts and other receivables, accounts payable and accrued liabilities are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The Company uses three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - inputs that are unobservable (for example, cash flow modeling inputs based on assumptions) Net Loss per Share Basic loss per share is computed by dividing the net income or loss applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the Company’s convertible preferred stock and warrants. Diluted loss per share excludes the shares issuable upon the conversion of preferred stock and warrants from the calculation of net loss per share if their effect would be anti-dilutive. The following financial instruments were not included in the diluted loss per share calculation as of June 30, 2018 and 2017 because their effect was anti-dilutive: As of June 30, 2018 2017 Warrants to purchase common stock 62,064,634 122,418,645 Series B Convertible Preferred stock - 199,785,600 Series C-1 Convertible Preferred stock 5,882,800 15,873,600 Total 67,947,434 338,077,845 Adoption of Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09) as modified by ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” and ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, new and enhanced disclosures will be required. Companies may adopt the new standard either using the full retrospective approach, a modified retrospective approach with practical expedients, or a cumulative effect upon adoption approach. The Company adopted ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Because the Company doesn’t have any customer contracts as of January 1, 2018, the adoption of ASU 2014-09 did not have a material impact on the Company’s condensed consolidated financial position, results of operations, equity or cash flows. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Stockholders' Equity	Note 6 - Stockholders’ Equity On January 1, 2018, the Company issued 5,175,400 shares of Common Stock upon the conversion of 25,877 shares of Series B Convertible Preferred stock. On April 20, 2018, the Company issued 392,200 shares of Common Stock upon the conversion of 1,961 shares of Series C-1 Convertible Preferred stock. On April 23, 2018, the Company issued 1,176,600 shares of Common Stock upon the conversion of 5,883 shares of Series C-1 Convertible Preferred stock. On April 24, 2018, the Company issued 2,549,200 shares of Common Stock upon the conversion of 12,746 shares of Series C-1 Convertible Preferred stock.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 7 - Subsequent Events: None

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary BTCS Digital Manufacturing. All significant intercompany balances and transactions have been eliminated in consolidation.
Concentration of Cash	Concentration of Cash The Company maintains cash balances at two financial institutions in checking accounts and money market accounts. The Company considers all highly liquid investments with original maturities of six months or less when purchased to be cash and cash equivalents. As of June 30, 2018 and December 31, 2017, the Company had approximately $32,000 and $303,000 in cash and cash equivalents. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash.
Digital Currencies Translations and Remeasurements	Digital Currencies Translations and Remeasurements Digital currencies are included in current assets in the consolidated balance sheets. Digital currencies are recorded at cost less impairment. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset that is amortized over the remaining useful life of that asset, if any. Subsequent reversal of impairment losses is not permitted. Realized gain (loss) on sale of digital currencies is included in other income (expense) in the consolidated statements of operations.
Use of Estimates	Use of Estimates The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). This requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. The Company’s significant estimates and assumptions include the recoverability and useful lives of long-lived assets, stock-based compensation, the valuation of derivative liabilities, and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates, including the carrying amount of the intangible assets, could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Financial instruments, including cash and cash equivalents, accounts and other receivables, accounts payable and accrued liabilities are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The Company uses three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - inputs that are unobservable (for example, cash flow modeling inputs based on assumptions)
Net Loss Per Share	Net Loss per Share Basic loss per share is computed by dividing the net income or loss applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the Company’s convertible preferred stock and warrants. Diluted loss per share excludes the shares issuable upon the conversion of preferred stock and warrants from the calculation of net loss per share if their effect would be anti-dilutive. The following financial instruments were not included in the diluted loss per share calculation as of June 30, 2018 and 2017 because their effect was anti-dilutive: As of June 30, 2018 2017 Warrants to purchase common stock 62,064,634 122,418,645 Series B Convertible Preferred stock - 199,785,600 Series C-1 Convertible Preferred stock 5,882,800 15,873,600 Total 67,947,434 338,077,845
Adoption of Recent Accounting Pronouncements	Adoption of Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09) as modified by ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,” and ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, new and enhanced disclosures will be required. Companies may adopt the new standard either using the full retrospective approach, a modified retrospective approach with practical expedients, or a cumulative effect upon adoption approach. The Company adopted ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Because the Company doesn’t have any customer contracts as of January 1, 2018, the adoption of ASU 2014-09 did not have a material impact on the Company’s condensed consolidated financial position, results of operations, equity or cash flows. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Restatement of the Consolidat_2

Restatement of the Consolidated Financial Statements (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Schedule of Error Corrections and Prior Period Adjustments	The effect of the restatement on the Company’s consolidated balance sheet as of June 30, 2018 are as follows: June 30, 2018 As Previously Reported Restatement Adjustment As Restated Digital currencies $ 139,655 $ (42,945 ) $ 96,710 Total current assets 240,428 (42,945 ) 197,483 Total Assets 243,816 (42,945 ) 200,871 Accumulated deficit (114,855,450 ) (42,945 ) (114,898,395 ) Total stockholders’ equity 174,749 (42,945 ) 131,804 Total Liabilities and stockholders’ equity 243,816 (42,945 ) 200,871 The effect of the restatement on the Company’s consolidated statement of operations for the three and six months ended June 30, 2018 are as follows: For the three months ended June 30, 2018 As Previously Reported Restatement Adjustment As Restated Total operating expenses 235,616 (2 ) 235,614 Net loss from operations (235,616 ) 2 (235,614 ) Revaluation of digital currencies (12,419 ) 12,419 - Realized gain on sale of digital currencies 11,265 7,661 18,926 Total other expenses (income) (1,154 ) 20,080 18,926 Net loss (236,770 ) 20,082 (216,688 ) Basic and Diluted Loss per Share (0.00 ) - (0.00 ) Basic and Diluted Shares 371,326,525 - 371,326,525 For the six months ended June 30, 2018 As Previously Reported Restatement Adjustment As Restated Total operating expenses 492,762 - 492,762 Net loss from operations (492,762 ) - (492,762 ) Revaluation of digital currencies (193,235 ) 193,235 - Realized gain (loss) on sale of digital currencies (51,914 ) 163,053 111,139 Total other expenses (income) (245,149 ) 356,288 111,139 Net loss (737,911 ) 356,288 (381,623 ) Basic and Diluted Loss per Share (0.00 ) - (0.00 ) Basic and Diluted Shares 369,781,431 - 369,781,431 The effect of the restatement on the Company’s consolidated statement of cash flows for the six months ended June 30, 2018 are as follows: For the six months ended June 30, 2018 As Previously Reported Restatement Adjustment As Restated Net loss $ (737,911 ) $ 356,288 $ (381,623 ) Change in fair value of digital currencies 193,235 (193,235 ) - Realized loss (gain) on sale of digital currencies 51,914 (163,053 ) (111,139 ) Net cash used in operating activities (499,844 ) 231,548 (268,296 ) Net cash provided by investing activities 231,548 (231,548 ) -

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Schedule of Earnings Per Share Anti-diluted	The following financial instruments were not included in the diluted loss per share calculation as of June 30, 2018 and 2017 because their effect was anti-dilutive: As of June 30, 2018 2017 Warrants to purchase common stock 62,064,634 122,418,645 Series B Convertible Preferred stock - 199,785,600 Series C-1 Convertible Preferred stock 5,882,800 15,873,600 Total 67,947,434 338,077,845

Restatement of the Consolidat_3

Restatement of the Consolidated Financial Statements (Details Narrative)	Jun. 30, 2018USD ($)
Restatement Adjustment [Member]
Digital currencies	$ 42,945

Restatement of the Consolidat_4

Restatement of the Consolidated Financial Statements - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Digital currencies	$ 96,710		$ 96,710		$ 217,119
Total current assets	197,483		197,483		588,189
Total Assets	200,871		200,871		589,424
Accumulated deficit	(114,898,395)		(114,898,395)		(114,516,772)
Total stockholders' equity	131,804		131,804		513,427
Total Liabilities and stockholders' equity	200,871		200,871		$ 589,424
Total operating expenses	235,614	$ 215,102	492,762	$ 394,548
Net loss from operations	(235,614)	(214,744)	(492,762)	(391,009)
Revaluation of digital currencies
Realized gain (loss) on sale of digital currencies	18,926		111,139
Total other expenses (income)	18,926	806,417	111,139	(34,212,862)
Net loss	$ (216,688)	$ 591,673	$ (381,623)	$ (34,603,871)
Basic and Diluted Loss per Share	$ 0	$ 0.01	$ 0	$ (0.80)
Basic and Diluted Shares	371,326,525	66,171,066	369,781,431	43,079,285
Change in fair value of digital currencies
Net cash used in operating activities			(268,296)	$ (947,421)
Net cash provided by investing activities			(2,598)	$ (1,484)
Previously Reported [Member]
Digital currencies	$ 139,655		139,655
Total current assets	240,428		240,428
Total Assets	243,816		243,816
Accumulated deficit	(114,855,450)		(114,855,450)
Total stockholders' equity	174,749		174,749
Total Liabilities and stockholders' equity	243,816		243,816
Total operating expenses	235,616		492,762
Net loss from operations	(235,616)		(492,762)
Revaluation of digital currencies	(12,419)		(193,235)
Realized gain (loss) on sale of digital currencies	11,265		(51,914)
Total other expenses (income)	(1,154)		(245,149)
Net loss	$ (236,770)		$ (737,911)
Basic and Diluted Loss per Share	$ 0		$ 0
Basic and Diluted Shares	371,326,525		369,781,431
Change in fair value of digital currencies			$ 193,235
Net cash used in operating activities			(499,844)
Net cash provided by investing activities			231,548
Restatement Adjustment [Member]
Digital currencies	$ (42,945)		(42,945)
Total current assets	(42,945)		(42,945)
Total Assets	(42,945)		(42,945)
Accumulated deficit	(42,945)		(42,945)
Total stockholders' equity	(42,945)		(42,945)
Total Liabilities and stockholders' equity	(42,945)		(42,945)
Total operating expenses	(2)
Net loss from operations	2
Revaluation of digital currencies	12,419		193,235
Realized gain (loss) on sale of digital currencies	7,661		163,053
Total other expenses (income)	20,080		356,288
Net loss	$ 20,082		$ 356,288
Basic and Diluted Loss per Share
Basic and Diluted Shares
Change in fair value of digital currencies			$ (193,235)
Net cash used in operating activities			231,548
Net cash provided by investing activities			$ (231,548)

Liquidity, Financial Conditio_2

Liquidity, Financial Condition and Management's Plans (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Liquidity Financial Condition And Managements Plans
Net cash used in operating activities			$ (268,296)	$ (947,421)
Net loss	$ (216,688)	$ 591,673	(381,623)	(34,603,871)
Cash	32,440	$ 17,277	32,440	$ 17,277	$ 303,334	$ 95,068
Digital currencies	96,710		96,710		$ 217,119
Working capital deficiency	$ 100,000		$ 100,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and cash equivalents	$ 32,440	$ 303,334	$ 17,277	$ 95,068

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Earnings Per Share Anti-diluted (Details) - shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Excluded potentially dilutive securities	67,947,434	338,077,845
Warrants to Purchase Common Stock [Member]
Excluded potentially dilutive securities	62,064,634	122,418,645
Series B Convertible Preferred Stock [Member]
Excluded potentially dilutive securities		199,785,600
Series C-1 Convertible Preferred Stock [Member]
Excluded potentially dilutive securities	5,882,800	15,873,600

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - shares	Apr. 24, 2018	Apr. 23, 2018	Apr. 20, 2018	Jan. 02, 2018
Series B Convertible Preferred Stock [Member]
Conversion of common stock, shares issued				5,175,400
Conversion of common stock, shares converted				25,877
Series C-1 Convertible Preferred Stock [Member]
Conversion of common stock, shares issued	2,549,200	1,176,600	392,200
Conversion of common stock, shares converted	12,746	5,883	1,961