Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Entity Central Index Key | 0001591956 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity File Number | 001-36532 |
Entity Registrant Name | Sphere 3D Corp. |
Entity Incorporation, State or Country Code | A6 |
Entity Address, Country | CA |
Entity Address, Address Line One | 895 Don Mills Road, Bldg. 2, Suite 900 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Postal Zip Code | M3C 1W3 |
Title of 12(b) Security | Common Shares |
Trading Symbol | ANY |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 63,566,403 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Business Contact | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 895 Don Mills Road Bldg. 2, Suite 900 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Postal Zip Code | M3C 1W3 |
Contact Personnel Name | Peter Tassiopoulos |
Contact Personnel Email Address | Peter.Tassiopoulos@sphere3d.com |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Smythe LLP |
Auditor Location | Vancouver, Canada |
Auditor Firm ID | 995 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents | $ 54,355,000 | $ 461,000 |
Accounts receivable, net | 181,000 | 264,000 |
Inventories | 0 | 558,000 |
Notes receivable | 1,859,000 | 0 |
Other Current Assets | 22,027,000 | 807,000 |
Assets, Current | 78,422,000 | 2,090,000 |
Notes receivable | 11,988,000 | 3,207,000 |
Long-term Investments | 19,949,000 | 2,100,000 |
Intangible Assets, Net | 63,017,000 | 2,608,000 |
Goodwill | 0 | 1,385,000 |
Other Assets | 102,548,000 | 443,000 |
Total Assets | 275,924,000 | 11,833,000 |
Accounts Payable | 1,252,000 | 1,976,000 |
Accrued Liabilities | 3,250,000 | 958,000 |
Accrued Payroll and Employee Compensation | 199,000 | 293,000 |
Deferred Revenue | 210,000 | 657,000 |
Secured Debt, Current | 0 | 1,121,000 |
Debt, Related Party | 0 | 304,000 |
Line of credit | 0 | 406,000 |
Other Current Liabilities | 297,000 | 90,000 |
Liabilities, Current | 5,208,000 | 5,805,000 |
Deferred Revenue, long-term | 58,000 | 301,000 |
Unsecured Long-term Debt, Noncurrent | 0 | 672,000 |
Other Non-current Liabilities | 1,032,000 | 46,000 |
Total Liabilities | 6,298,000 | 6,824,000 |
Commitments and Contingencies (Note 16) | ||
Preferred shares, no par value, unlimited shares authorized, 96,000 and 9,355,778 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 42,350,000 | 11,769,000 |
Common shares, no par value; 63,566,403 and 7,867,186 shares issued and outstanding as of December 31, 2021 and 2020, respectively | 444,265,000 | 192,406,000 |
Accumulated Other Comprehensive Loss | (1,794,000) | (1,791,000) |
Accumulated Deficit | (215,195,000) | (197,375,000) |
Total shareholders' equity | 269,626,000 | 5,009,000 |
Total liabilities and shareholders' equity | $ 275,924,000 | $ 11,833,000 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets Parenthetical Data - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Issued | 96,000 | 9,355,778 |
Preferred Stock, Shares Outstanding | 96,000 | 9,355,778 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares, Issued | 63,566,403 | 7,867,186 |
Common Stock, Shares, Outstanding | 63,566,403 | 7,867,186 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 3,720 | $ 4,848 | $ 5,579 |
Cost of revenue | 2,022 | 2,599 | 3,725 |
Gross Profit | 1,698 | 2,249 | 1,854 |
Sales and Marketing | 1,317 | 1,255 | 1,831 |
Research and Development | 971 | 1,202 | 2,052 |
General and Administrative | 18,308 | 5,471 | 3,925 |
Impairment of Goodwill and Acquired Intangible Assets | 820 | 286 | 70 |
Operating Expenses | 21,416 | 8,214 | 7,878 |
Loss from Operations | (19,718) | (5,965) | (6,024) |
Other Income (Expense) | |||
Interest Expense, Related Party | (495) | (454) | (331) |
Interest Expense, Debt | (21) | (274) | (22) |
Interest income and other, net | 2,930 | 918 | 2,096 |
Income (Loss) Attributable to Parent, before Tax | (17,304) | (5,775) | (4,281) |
(Benefit from) provision for income taxes | (15) | 4 | 0 |
Net loss | (17,289) | (5,779) | (4,281) |
Dividends on preferred shares | 531 | 0 | 0 |
Net loss available to common shareholders | $ (17,820) | $ (5,779) | $ (4,281) |
Loss Per Share, Basic and Diluted [Abstract] | |||
Net loss per share basic and diluted | $ (0.58) | $ (0.98) | $ (1.59) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 30,862,508 | 5,884,555 | 2,692,510 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net loss | $ (17,289) | $ (5,779) | $ (4,281) |
Other Comprehensive Loss | |||
Foreign currency translation adjustment | (3) | (22) | 47 |
Other Comprehensive (Loss) Income | (3) | (22) | 47 |
Comprehensive loss | $ (17,292) | $ (5,801) | $ (4,234) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities [Abstract] | |||
Net loss | $ (17,289) | $ (5,779) | $ (4,281) |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Gain on disposal of product line | (4,992) | 0 | 0 |
Issuance of Stock and Warrants for settlement of liabilities | 2,821 | 0 | 0 |
Gain on Forgiveness of Debt | (1,125) | 0 | 0 |
Gain on forgiveness of Liabilities | (189) | (776) | (551) |
Increase (Decrease) in Due to Related Parties | 0 | 0 | (1,745) |
Impairment of goodwill and acquired intangible assets | 820 | 286 | 70 |
Preferred shares penalty fee | 653 | 0 | 0 |
Depreciation and Amortization | 5,685 | 971 | 1,030 |
Share-based Payment Arrangement, Noncash Expense | 366 | 5 | 637 |
Provision for losses on accounts receivable | 0 | 34 | 187 |
Revaluation of subscription agreements | 0 | (79) | 158 |
Amortization of Debt Issuance Costs | 485 | 526 | 0 |
Increase (Decrease) in Due to Other Related Parties, Current | 0 | 0 | 291 |
Changes in operating assets and liabilities: | |||
Accounts Receivable | 75 | 71 | 773 |
Inventories | 57 | 195 | 477 |
Accounts Payable and Accrued Liabilities | 3,925 | 3,583 | 317 |
Accrued Payroll and Employee Compensation | (94) | (50) | 182 |
Deferred Revenue | (555) | (597) | (102) |
Other Assets and Liabilities, Net | (19,161) | (972) | 744 |
Net Cash Used in Operating Activities | (28,518) | (2,582) | (1,813) |
Investing activities: | |||
Deposits for Purchase of Equipment | (102,238) | 0 | 0 |
Payments to acquire notes receivable | (10,035) | (2,000) | 0 |
Payments to Acquire Other Investments | (10,420) | 0 | 0 |
Net Cash Used in Investing Activities | (122,693) | (2,000) | 0 |
Financing activities: | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | 9,575 | 2,735 | 0 |
Proceeds from issuance of common shares and warrants | 194,572 | 364 | 707 |
Repayments of Debt | (1,103) | 0 | 0 |
Proceeds from Issuance of Unsecured Debt | 447 | 1,042 | 0 |
Proceeds from Debt, Related Party | 0 | 700 | 523 |
Payments on Debt, Related Party | 0 | (117) | 0 |
Proceeds from (Repayments of) Lines of Credit | (402) | (83) | 391 |
Proceeds from exercise of outstanding warrants | 1,991 | 180 | 0 |
Proceeds from Stock Options Exercised | 252 | 75 | 0 |
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | (227) | 0 | 0 |
Net Cash Provided by Financing Activities | 205,105 | 4,896 | 1,621 |
Effect of exchange rate changes on cash and cash equivalents | 0 | (2) | 0 |
Net increase in cash and cash equivalents | 53,894 | 312 | (192) |
Cash and Cash Equivalents, beginning of period | 461 | 149 | 341 |
Cash and Cash Equivalents, end of period | $ 54,355 | $ 461 | $ 149 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Supplemental Disclosures of Cash Flow Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid for interest | $ 34,000 | $ 33,000 | $ 39,000 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Issuance of preferred shares for acquisition of intangible asset | 42,350,000 | 0 | 0 |
Issuance of common shares for settlement of liabilities | 17,731,000 | 2,034,000 | 764,000 |
Noncash or Part Noncash Acquisition, Value of Assets Acquired | 11,408,000 | 1,560,000 | 0 |
Assumption of notes receivable | 0 | 1,100,000 | 0 |
Debt Conversion, Converted Instrument, Amount | 799,000 | 783,000 | 0 |
Issuance of common shares for related party liabilities | 0 | 379,000 | 529,000 |
Convertible debt issued for prepaid services | 0 | 150,000 | 0 |
Conversion of related party liabilities to preferred shares | 0 | 0 | 1,496,000 |
Issuance of preferred shares for prepayment of services | $ 0 | $ 0 | $ 448,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity Statement - USD ($) $ in Thousands | Total | Common Shares [Member] | Common Shares Including Additional Paid in Capital [Member] | Preferred Stock [Member] | Preferred Stock Including Additional Paid in Capital | AOCI [Member] | Accumulated Deficit [Member] |
Shares, Issued, period start at Dec. 31, 2018 | 2,219,141 | 0 | |||||
Total Shareholders' Equity, period start at Dec. 31, 2018 | $ (5,607) | $ 183,524 | $ 0 | $ (1,816) | $ (187,315) | ||
Preferred Shares Issued | 8,443,778 | ||||||
Preferred shares issued, amount | 8,444 | 8,444 | |||||
Stock Issued During Period, Shares, New Issues | 415,765 | ||||||
Stock Issued During Period, Value, New Issues | 707 | 707 | |||||
Stock Issued During Period, Shares, Issued for Services | 673,500 | ||||||
Stock Issued During Period, Value, Issued for Services | $ 764 | 764 | |||||
Stock Issued During Period, Shares, Related Party Interest Expense | 410,158 | ||||||
Stock Issued During Period, Value, Related Party Interest Expense | $ 529 | ||||||
Issuance of common shares pursuant to the vesting of restricted stock units | 131,541 | ||||||
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | $ 0 | 0 | |||||
Exercise of stock options | 0 | ||||||
Share-based Compensation, Requisite Service Period Recognition | $ 637 | 637 | |||||
Other Comprehensive (Loss) Income | 47 | 47 | |||||
Net loss | (4,281) | (4,281) | |||||
Shares, Issued, period end at Dec. 31, 2019 | 3,850,105 | 8,443,778 | |||||
Total Shareholders' Equity, period end at Dec. 31, 2019 | 1,240 | 186,161 | 8,444 | (1,769) | (191,596) | ||
Preferred Shares Issued | 1,697,000 | ||||||
Preferred shares issued, amount | 3,835 | 3,835 | |||||
Common shares issued upon conversion of preferred shares | 785,000 | ||||||
Conversion of preferred shares | 0 | 510 | |||||
Preferred stock converted to common stock | (785,000) | ||||||
Preferred stock converted to common stock value | (510) | ||||||
Stock Issued During Period, Shares, New Issues | 230,000 | ||||||
Stock Issued During Period, Value, New Issues | 537 | 537 | |||||
Stock Issued During Period, Shares, Purchase of Assets | 480,000 | ||||||
Stock Issued During Period, Value, Purchase of Assets | 1,560 | 1,560 | |||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,205,820 | ||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 783 | 783 | |||||
Stock Issued During Period, Shares, Issued for Services | 965,841 | ||||||
Stock Issued During Period, Value, Issued for Services | 2,413 | 2,413 | |||||
Issuance of stock options, settlement of liabilities | 182 | 182 | |||||
Issuance of common shares pursuant to the vesting of restricted stock units | 20,420 | ||||||
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | 0 | 0 | |||||
Shares Issued, Warrants Exercised | 300,000 | ||||||
Exercise of warrants, amount | $ 180 | 180 | |||||
Exercise of stock options | 30,000 | 30,000 | |||||
Stock Issued During Period, Value, Stock Options Exercised | $ 75 | 75 | |||||
Share-based Compensation, Requisite Service Period Recognition | 5 | 5 | |||||
Other Comprehensive (Loss) Income | (22) | (22) | |||||
Net loss | (5,779) | (5,779) | |||||
Shares, Issued, period end at Dec. 31, 2020 | 7,867,186 | 9,355,778 | |||||
Total Shareholders' Equity, period end at Dec. 31, 2020 | 5,009 | 192,406 | 11,769 | (1,791) | (197,375) | ||
Preferred Shares Issued | 106,000 | ||||||
Preferred shares issued, amount | 51,925 | 51,925 | |||||
Common shares issued upon conversion of preferred shares | 11,081,824 | ||||||
Conversion of preferred shares | 0 | 21,344 | |||||
Preferred stock converted to common stock | (9,365,778) | ||||||
Preferred stock converted to common stock value | (21,344) | ||||||
Stock Issued During Period, Shares, New Issues | 32,018,530 | ||||||
Stock Issued During Period, Value, New Issues | 195,017 | 195,017 | |||||
Stock Issued During Period, Shares, Purchase of Assets | 4,500,000 | ||||||
Stock Issued During Period, Value, Purchase of Assets | 11,408 | 11,408 | |||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 468,225 | ||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 799 | 799 | |||||
Stock Issued During Period, Shares, Issued for Services | 4,664,852 | ||||||
Stock Issued During Period, Value, Issued for Services | 17,731 | ||||||
Issuance of stock options, settlement of liabilities | 17,731 | ||||||
Issuance of common shares pursuant to the vesting of restricted stock units | 133,553 | ||||||
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | 0 | 0 | |||||
Shares Issued, Warrants Exercised | 2,732,233 | ||||||
Exercise of warrants, amount | $ 2,121 | 2,121 | |||||
Exercise of stock options | 100,000 | 100,000 | |||||
Stock Issued During Period, Value, Stock Options Exercised | $ 252 | 252 | |||||
Share-based Compensation, Requisite Service Period Recognition | 366 | 366 | |||||
Other Comprehensive (Loss) Income | (3) | (3) | |||||
Net loss | (17,289) | (17,289) | |||||
Dividends, Preferred Stock | (531) | (531) | |||||
Adjustments to Additional Paid in Capital, Warrant Issued | 2,821 | 2,821 | |||||
Shares, Issued, period end at Dec. 31, 2021 | 63,566,403 | 96,000 | |||||
Total Shareholders' Equity, period end at Dec. 31, 2021 | $ 269,626 | $ 444,265 | $ 42,350 | $ (1,794) | $ (215,195) |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization and Business Sphere 3D Corp. was incorporated under the Business Corporations Act (Ontario) on May 2, 2007 as T.B. Mining Ventures Inc. On March 24, 2015, the Company completed a short-form amalgamation with a wholly-owned subsidiary. In connection with the short-form amalgamation, the Company changed its name to “Sphere 3D Corp.” Any reference to the “Company”, “Sphere 3D”, “we”, “our”, “us”, or similar terms refers to Sphere 3D Corp. and its subsidiaries. The Company delivers data management and desktop and application virtualization solutions through hybrid cloud, cloud and on premise implementations by its global reseller network. The Company achieves this through a combination of containerized applications, virtual desktops, virtual storage and physical hyper-converged platforms. The Company’s products allow organizations to deploy a combination of public, private or hybrid cloud strategies while backing them up with the latest storage solutions. The Company’s brands include HVE ConneXions (“HVE”) and Unified ConneXions (“UCX”). In October 2021, the Company entered into a definitive agreement and sold its SnapServer ® product line and associated assets. The Company has commenced planning and has entered into a series of agreements that will enable it to enter the cryptocurrency space, including entering into the Hertford Agreement with Hertford Advisors Ltd., the Master Services Agreement between Sphere 3D and Gryphon Digital Mining, Inc. (“Gryphon”), the Sub-License and Delegation Agreement with Gryphon, and the NuMiner Agreement with NuMiner Global, Inc. (“NuMiner”). See Intangible Assets and Goodwill and Commitments and Contingencies in the Notes to the Consolidated Financial Statements for additional information. Management has projected that cash on hand will not be sufficient to allow the Company to continue operations beyond November 30, 2022 if we are unable to raise additional funding for operations. We expect our working capital needs to increase in the future as we continue to expand and enhance our operations. Our ability to raise additional funds for working capital or to pay for the purchase of cryptocurrency mining machines through equity or debt financings or other sources may depend on the financial success of our then current business and successful implementation of our key strategic initiatives, financial, economic and market conditions and other factors, some of which are beyond our control. No assurance can be given that we will be successful in raising the required capital at a reasonable cost and at the required times, or at all. Further equity financings may have a dilutive effect on shareholders and any debt financing, if available, may require restrictions to be placed on our future financing and operating activities. We require additional capital and if we are unsuccessful in raising that capital, we may be required to cancel our existing purchase obligations under our current mining purchase agreements, or we may not be able to continue our business operations in the cryptocurrency mining industry or we may be unable to advance our growth initiatives, either of which could adversely impact our business, financial condition and results of operations. Significant changes from the Company’s current forecasts, including but not limited to: (i) shortfalls from projected sales levels; (ii) unexpected increases in product costs; (iii) increases in operating costs; (iv) changes in the historical timing of collecting accounts receivable; and (v) inability to maintain compliance with the requirements of the NASDAQ Capital Market and/or inability to maintain listing with the NASDAQ Capital Market could have a material adverse impact on the Company’s ability to access the level of funding necessary to continue its operations at current levels. If any of these events occurs or the Company is unable to generate sufficient cash from operations or financing sources, the Company may be forced to liquidate assets where possible and/or curtail, suspend or cease planned programs or operations generally or seek bankruptcy protection or be subject to an involuntary bankruptcy petition, any of, which would have a material adverse effect on the Company’s business, results of operations, financial position and liquidity. Given the Company’s existing purchase obligations, if such agreements are not cancelled by the Company, management has projected that cash on hand will not be sufficient to allow the Company to meet its outstanding purchase obligations through 2022 if the Company is unable to raise additional debt or equity funding for operations. On a short-term basis, the Company plans to raise debt or equity funding to meet its payment obligations under its current contracts and for additional working capital. The Company incurred losses from operations and negative cash flows from operating activities for the 12 months ended December 31, 2021, and such losses might continue for a period of time. Based upon the Company's current expectations and projections for the next year, the Company believes that it may not have sufficient liquidity necessary to sustain operations beyond November 30, 2022. These factors, among others, raise substantial doubt that the Company will be able to continue as a going concern. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Merger Agreement On June 3, 2021, the Company into an Agreement and Plan of Merger, which was subsequently amended on December 29, 2021 (the “Merger Agreement”), which the Company agreed to acquire all of the issued and outstanding capital stock of Gryphon Digital Mining, Inc. (“Gryphon”) through a merger transaction (the “Merger”), in which Sphere GDM Corp., a Delaware corporation and a wholly-owned subsidiary of Sphere 3D (“Merger Sub”), will merge with and into Gryphon, with Gryphon surviving under the name Gryphon Digital Mining USA, Inc., as a wholly-owned direct subsidiary of Sphere 3D, and Sphere 3D will issue common shares in exchange for all of the issued and outstanding capital stock of Gryphon. Completion of the Merger is conditioned upon the satisfaction of certain closing conditions, including the approval by our shareholders, as set forth in the Merger Agreement. The Merger Agreement, among other matters, (i) provides for the number of our common shares that will be issued by us in the merger as a result of certain equity financings completed by Gryphon following the execution and delivery of the Merger Agreement; (ii) provides for the termination provisions of the Merger Agreement with provisions that allow either party to terminate the Merger Agreement prior to March 31, 2022 upon a breach of the Merger Agreement by the other party following an opportunity to cure such breach, and to allow either party to terminate the Merger Agreement on or after March 31, 2022 for any reason or no reason by notice to the other party; (iii) provide that, upon any such termination of the Merger Agreement, we will forgive all amounts outstanding under the outstanding Promissory Note and Security Agreement with Gryphon, which was amended on August 30, 2021, September 29, 2021, and further amended on December 29, 2021 (as amended, the “Gryphon Note”), and release to Gryphon 850,000 common shares deposited into an escrow account for the benefit of Gryphon; and (iv) provide that, in connection with any termination of the Merger Agreement, each party shall have released the other party and its affiliates from any claims, actions or proceedings such party shall have at the time of such termination against the other party existing by reason of, based upon or arising out of the Merger Agreement. As consideration for the merger transaction, the Company expects to issue 122,005,654 common shares to the shareholders of Gryphon, subject to adjustment. If the Merger is consummated, and all regulatory approvals are received, we will continue to trade on the NASDAQ. The closing of the merger agreement is subject to customary closing conditions for a transaction of this nature and may be terminated by the parties under certain circumstances. Terminated Merger Agreement On July 14, 2020, the Company entered into a definitive merger agreement (the “Rainmaker Merger Agreement”) pursuant to which it planned to acquire all of the outstanding securities of Rainmaker Worldwide Inc. (“Rainmaker”), a global Water-as-a-Service provider. The Company’s business model would have focused on Water-as-a-Service and Rainmaker management would have assumed leadership of the combined entity. On February 12, 2021, the Rainmaker Merger Agreement was terminated as the Company was unable to obtain all necessary regulatory approvals relating to the proposed transaction prior to the agreed date of January 31, 2021. No break-fee or termination costs were paid by either party. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Principles of Consolidation The consolidated financial statements of the Company have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”), applied on a basis consistent for all periods. These consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been appropriately eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of provisions for impairment assessments of definite-live intangible assets, other indefinite-lived intangible assets; goodwill, deferred revenue; allowance for doubtful receivables; inventory valuation; warranty provisions; equity treatment of preferred shares; and litigation claims. Actual results could differ from these estimates. Foreign Currency Translation The financial statements of foreign subsidiaries, for which the functional currency is the local currency, are translated into U.S. dollars using the exchange rate at the consolidated balance sheet date for assets and liabilities and a weighted-average exchange rate during the year for revenue, expenses, gains and losses. Translation adjustments are recorded as other comprehensive income (loss) within shareholders’ equity. Gains or losses from foreign currency transactions are recognized in the consolidated statements of operations. Such transactions resulted in a loss of $41,000, $23,000, and $22,000 for the years ended December 31, 2021, 2020 and 2019, respectively. Cash Equivalents Highly liquid investments with insignificant interest rate risk and original maturities of three months or less, when purchased, are classified as cash equivalents. Cash equivalents are composed of money market funds. The carrying amounts approximate fair value due to the short maturities of these instruments. Accounts Receivable Accounts receivable is recorded at the invoiced amount and is non-interest bearing. We estimate our allowance for doubtful accounts based on an assessment of the collectability of specific accounts and the overall condition of the accounts receivable portfolio. When evaluating the adequacy of the allowance for doubtful accounts, we analyze specific trade and other receivables, historical bad debts, customer credits, customer concentrations, customer credit-worthiness, current economic trends and changes in customers’ payment terms and/or patterns. We review the allowance for doubtful accounts on a quarterly basis and record adjustments as considered necessary. Customer accounts are written-off against the allowance for doubtful accounts when an account is considered uncollectable. At December 31, 2021 and 2020, allowance for doubtful accounts of nil and $0.1 million, respectively, was recorded. Inventories Inventories are stated at the lower of cost and net realizable value using the first-in-first-out method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We assess the value of inventories periodically based upon numerous factors including, among others, expected product or material demand, current market conditions, technological obsolescence, current cost, and net realizable value. If necessary, we write down our inventory for obsolete or unmarketable inventory by an amount equal to the difference between the cost of the inventory and the net realizable value. Investments The Company holds investments in equity securities of public and nonpublic companies for business and strategic purposes. The nonpublic equity securities do not have a readily determinable fair value and are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company reviews its investments on a regular basis to determine if the investments are impaired. For purposes of this assessment, the Company considers the investee’s cash position, earnings and revenue outlook, liquidity and management ownership, among other factors, in its review. If management’s assessment indicates that an impairment exists, the Company estimates the fair value of the equity investment and recognizes in current earnings an impairment loss that is equal to the difference between the fair value of the equity investment and its carrying amount. Goodwill and Intangible Assets Goodwill represents the excess of consideration paid over the value assigned to the net tangible and identifiable intangible assets acquired. For intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish their recorded values. For intangible assets acquired in a non-monetary exchange, the estimated fair values of the assets transferred (or the estimated fair values of the assets received, if more clearly evident) are used to establish their recorded values. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. Purchased intangible assets are amortized on a straight-line basis over their economic lives of 15 months to 15 years for supplier agreements, six years for channel partner relationships, and seven years for customer relationships as this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. Impairment of Goodwill and Intangible Assets Goodwill and intangible assets are tested for impairment on an annual basis at December 31, or more frequently if there are indicators of impairment. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. Intangible assets are quantitatively assessed for impairment, if necessary, by comparing their estimated fair values to their carrying values. If the carrying value exceeds the fair value, the difference is recorded as an impairment. Revenue Recognition The Company accounts for revenue pursuant to ASU 2014-09, Revenue from Contracts with Customers and all the related amendments (“Topic 606”). Under Topic 606, an entity is required to recognize revenue to depict the transfer of promised 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, and contract consideration will be recognized on a “sell-in basis” or when control of the purchased goods or services transfer to the distributor. The Company generates revenue primarily from: (i) solutions for standalone storage and integrated hyper-converged storage; (ii) professional services; and (iii) warranty and customer services. The Company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To determine revenue recognition for contracts with customers the Company performs the following five steps: (i) identify the promised goods or services in the contract; (ii) identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) determine the transaction price, including the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligations. Approximately 70% of the Company’s revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied at a point in time. These contracts are generally comprised of a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when change of control has been transferred to the customer, generally at the time of shipment of products. The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically less than 45 days. Revenue on direct product sales, excluding sales to distributors, are not entitled to any specific right of return or price protection, except for any defective product that may be returned under our standard product warranty. Product sales to distribution customers that are subject to certain rights of return, stock rotation privileges and price protections, contain a component of “variable consideration.” Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated fixed price and is net of estimates for variable considerations. For performance obligations related to warranty and customer services, such as extended product warranties, the Company transfers control and recognizes revenue on a time-elapsed basis. The performance obligations are satisfied as services are rendered typically on a stand-ready basis over the contract term, which is generally 12 months. In limited circumstances where a customer is unable to accept shipment and requests products be delivered to, and stored on, the Company’s premises, also known as a “bill-and-hold” arrangement, revenue is recognized when: (i) the customer has requested delayed delivery and storage of the products, (ii) the goods are segregated from the inventory, (iii) the product is complete, ready for shipment and physical transfer to the customer, and (iv) the Company does not have the ability to use the product or direct it to another customer. The Company also enters into revenue arrangements that may consist of multiple performance obligations of its product and service offerings such as for sales of hardware devices and extended warranty services. The Company allocates contract fees to the performance obligations on a relative stand-alone selling price basis. The Company determines the stand-alone selling price based on its normal pricing and discounting practices for the specific product and/or service when sold separately. When the Company is unable to establish the individual stand-alone price for all elements in an arrangement by reference to sold separately instances, the Company may estimate the stand-alone selling price of each performance obligation using a cost plus a margin approach, by reference to third party evidence of selling price, based on the Company’s actual historical selling prices of similar items, or based on a combination of the aforementioned methodologies; whichever management believes provides the most reliable estimate of stand-alone selling price. Warranty and Extended Warranty The Company records a provision for standard warranties provided with all products. If future actual costs to repair were to differ significantly from estimates, the impact of these unforeseen costs or cost reductions would be recorded in subsequent periods. Separately priced extended on-site warranties and service contracts are offered for sale to customers on all product lines. The Company contracts with third party service providers to provide service relating to on-site warranties and service contracts. Extended warranty and service contract revenue and amounts paid in advance to outside service organizations are deferred and recognized as service revenue and cost of service, respectively, over the period of the service agreement. The Company will typically apply the practical expedient to agreements wherein the period between transfer of any good or service in the contract and when the customer pays for that good or service is one year or less. Advanced payments for long-term maintenance and warranty contracts do not give rise to a significant financing component. Rather, such payments are required by the Company primarily for reasons other than the provision of finance to the entity. Shipping and Handling Amounts billed to customers for shipping and handling are included in revenue, and costs incurred related to shipping and handling are included in cost of product revenue. Advertising Costs Advertising costs are expensed as incurred. Advertising expenses were $104,000, $140,000, and $16,000 for the years ended December 31, 2021, 2020 and 2019, respectively. Research and Development Costs Research and development expenses include payroll, employee benefits, share-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include third-party development and programming costs. Research and development expenses are charged to operating expenses as incurred when these expenditures relate to the Company’s research and development efforts and have no alternative future uses. Segment Information The Company reports segment data based on the management approach. The management approach designates the internal reporting that is used by management for making operating and investment decisions and evaluating performance as the source of our reportable segments. We use one measurement of profitability and do not disaggregate our business for internal reporting. We operate in one segment providing data management, and desktop and application virtualization solutions for small and medium businesses and distributed enterprises. We disclose information about products and services, geographic areas, and major customers. Income Taxes The Company provides for income taxes utilizing the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of our assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when a judgment is made that it is considered more likely than not that a tax benefit will not be realized. A decision to record a valuation allowance results in an increase in income tax expense or a decrease in income tax benefit. If the valuation allowance is released in a future period, income tax expense will be reduced accordingly. The calculation of tax liabilities involves evaluating uncertainties in the application of complex global tax regulations. The impact of an uncertain income tax position is recognized at the largest amount that is “more likely than not” to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. Comprehensive Loss Comprehensive loss and its components encompass all changes in equity other than those arising from transactions with shareholders, including net loss and foreign currency translation adjustments, and is disclosed in a separate consolidated statement of comprehensive loss. Concentration of Credit Risks Financial instruments that potentially subject us to concentrations of credit risk consist primarily of notes receivable and trade accounts receivable, which are generally not collateralized. To reduce credit risk, we perform ongoing credit evaluations of its customers and maintain allowances for potential credit losses for estimated bad debt losses. At December 31, 2021 and 2020, there were four customers that made up 82.0% and 46.8%, respectively, of accounts receivable. There were two customers that made up in the aggregate 25.5%, 29.3%, and 24.5% of net revenue for the years ended December 31, 2021, 2020 and 2019, respectively. Share-based Compensation The Company accounts for share-based awards, and similar equity instruments, granted to employees, non-employee directors, and consultants under the fair value method. Share-based compensation award types include stock options and restricted stock. The Company uses the Black-Scholes option pricing model to estimate the fair value of option awards on the measurement date, which generally is the date of grant. The expense is recognized over the requisite service period (usually the vesting period) for the estimated number of instruments for which service is expected to be rendered. The fair value of restricted stock units (“RSUs”) is estimated based on the market value of the Company’s common shares on the date of grant. The fair value of options granted to non-employees is estimated at the measurement date, which generally is the date of grant, using the Black-Scholes option pricing model. Share-based compensation expense for options with graded vesting is recognized pursuant to an accelerated method. Share-based compensation expense for RSUs is recognized over the vesting period using the straight-line method. Share-based compensation expense for an award with performance conditions is recognized when the achievement of such performance conditions are determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Forfeitures are recognized in share-based compensation expense as they occur. The Company has not recognized, and does not expect to recognize in the near future, any tax benefit related to share-based compensation cost as a result of the full valuation allowance of our net deferred tax assets and its net operating loss carryforward. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. If not discussed, the Company believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06 , Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) . The new guidance eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance requires that the if-converted method is used in computing diluted EPS for all convertible instruments. The update is effective for annual reporting periods, including interim periods, beginning after December 15, 2021. The adoption of the new standard is not expected to have a material effect on our financial position, results of operations or cash flows. |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Disposal of SnapServer ® Product Line In October 2021, the Company and Filecoiner, Inc. (“Filecoiner”) entered into an acquisition agreement under which the Company’s subsidiary, HVE, sold the assets, including intellectual property, associated with the Company’s SnapServer ® product line to Filecoiner, in exchange for 8,000 shares of Series B preferred stock of Filecoiner (“Filecoiner Series B Preferred Stock”) with a fair value equal to $6.4 million determined using valuation models. The Company recorded a gain on the sale of the assets of $5.0 million and is included in interest income and other, net on the consolidated statement of operations. The Company is performing the operating duties for the SnapServer ® product line on behalf of Filecoiner. The Company expects to continue to provide this service for a period time and has entered into a transition services agreement with Filecoiner. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements The authoritative guidance for fair value measurements establishes a three tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The Company’s consolidated financial instruments include cash equivalents, accounts receivable, notes receivable, investments, accounts payable, accrued liabilities and preferred shares. Fair value estimates of these instruments are made at a specific point in time, based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. The carrying amount of cash equivalents, accounts receivable, notes receivable, accounts payable and accrued liabilities are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. The Company estimates the fair value of the preferred shares utilizing Level 2 inputs, including market yields for similar investments. The following table provides information by level for liabilities that are measured at fair value using significant unobservable inputs (Level 3) (in thousands): Warrant liability as of January 1, 2020 $ — Additions to warrant liability 186 Reclassification to equity (97) Warrant liability as of December 31, 2020 89 Additions to warrant liability — Reclassification to equity (84) Warrant liability as of December 31, 2021 $ 5 Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis The Company's non-financial assets such as intangible assets are recorded at fair value when an impairment is recognized or at the time acquired in an asset acquisition or business combination measured using significant unobservable inputs (Level 3). As discussed in Note 8 - Intangible Assets and Goodwill , at December 31, 2021 and 2020, the Company recorded impairment charges associated with goodwill and acquired intangible assets and reduced the carrying amount of such assets subject to the impairment to their estimated fair value. As discussed in Note 8 Intangible Assets and Goodwill , in October 2021, the Company issued preferred shares with a fair value of $42.4 million to Hertford. The fair value was measured using Level 2 inputs, which included publicly available machine contract pricing. In addition, in August 2021, the Company issued common shares to Hertford with a fair value of $11.4 million. The fair value was measured using Level 1 and 2 inputs, which included a marketability discount. As discussed in Note 11 Share Capital |
Receivables, Loans, Notes Recei
Receivables, Loans, Notes Receivable, and Others | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure | Notes Receivable In July 2021, the Company entered into a Promissory Note and Security Agreement with Gryphon, which was amended on August 30, 2021, September 29, 2021, and further amended on December 29, 2021 (the “Gryphon Note” as amended). The Gryphon Note, pursuant to which the Company agreed to loan in the aggregate to Gryphon $12.5 million, has a payment schedule whereby the principal and accrued interest shall be due and payable commencing on completion of the Merger Agreement continuing for a term of three years. The Gryphon Note is unsecured and bears interest at the rate of 9.5% per annum. The Gryphon Note is agreed to be forgiven by the Company if the Merger Agreement is terminated. As of December 31, 2021, the outstanding Gryphon Note balance, including accrued interest, was $10.3 million. In January 2022, the Company loaned Gryphon an additional $2.5 million bringing the aggregate principal balance for the Gryphon Note to $12.5 million. In September 2020, the Company entered into a Senior Secured Convertible Promissory Note with Rainmaker (the “Rainmaker Note”), pursuant to which the Company loaned Rainmaker the principal amount of $3.1 million. The Rainmaker Note is secured as a registered lien under the Uniform Commercial Code and the Personal Property Security Act (Ontario) against the assets of Rainmaker and bears interest at the rate of 10% per annum. The principal and interest accrue monthly and are due and payable in full on September 14, 2023. The Company has the right, at any time, to convert all or any portion of the then outstanding and unpaid Rainmaker Note and interest into at the conversion price as defined in the Rainmaker Note. |
Investments, All Other Investme
Investments, All Other Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Investment | Investments Filecoiner Common Stock In October 2021, the Company purchased 1,500,000 shares of common stock of Filecoiner, a private corporation, at a price equal to $4.00 per share and was recorded at cost. As of December 31, 2021, the Filecoiner common stock held by the Company was recorded on a cost basis or $6.0 million. Filecoiner Preferred Stock In October 2021, the Company received 8,000 shares of Series B preferred stock of Filecoiner (“Filecoiner Series B Preferred Stock”) for consideration for the sale of its SnapServer ® product line to Filecoiner. The preferred shares have a liquidation preference of $1,000 per share, do not accrue dividends nor have voting rights. Filecoiner will use 1.5% of its annual gross revenue to redeem any outstanding shares of Filecoiner Series B Preferred Stock. This amount will be paid to the holder of the Filecoiner Series B Preferred Stock within 15 days of the completion of Filecoiner's annual 12/31 audited financial statements. During any 12-calendar month period, 25% of the shares of Series B Preferred Stock shall be convertible at the option of the holder thereof at any time into a number of shares of common stock determined by dividing (i) the original issue price by (ii) the conversion price then in effect. The initial conversion price for the Series B Preferred Stock is equal to $8.00 per share. The conversion price from time to time in effect is subject to adjustment as hereinafter defined in the Filecoiner acquisition agreement. The fair value of the Filecoiner Series B Preferred Stock was estimated using a Monte Carlo simulation with the following inputs: discount rate of 40%, risk-free rate of 1.05%, cost of debt of 7.48%, together with a capital option pricing model using the following inputs: volatility of 146% and risk-free rate of 1.05%. As of December 31, 2021, the fair value of the Filecoiner Series B Preferred Stock held by the Company was $6.4 million. Special Purpose Acquisition Company In April 2021, the Company sponsored a special purpose acquisition company (“SPAC”), Minority Equality Opportunities Acquisition Inc. (“MEOA”), through the Company’s wholly owned subsidiary, Minority Equality Opportunities Acquisition Sponsor, LLC (“SPAC Sponsor”). MEOA’s purpose is to focus initially on transactions with companies that are minority owned businesses. In April 2021, SPAC Sponsor paid $25,000 of deferred offering costs on behalf of MEOA in exchange for 2,875,000 shares of MEOA’s Class B common stock (the “Founder Shares”) and is recorded on a cost basis as of December 31, 2021. In August 2021, SPAC Sponsor participated in the private sale of an aggregate of 5,395,000 Warrants (the “Private Placement Warrants”) at a purchase price of $1.00 per Private Placement Warrant. The SPAC Sponsor paid $5.4 million to MEOA, which included $1.0 million from an investor participating in SPAC Sponsor and is included in other non-current liabilities. The Private Placement Warrants are not transferable, assignable or saleable until 30 days after MEOA completes a business combination, which is required to be completed within 12 months from the closing of the initial public offering (“IPO”) (or 21 months from the closing of the IPO if MEOA extends the period of time to consummate a business combination). MEOA’s IPO was completed on August 30, 2021. As of December 31, 2021, the Private Placement Warrants held by the Company are recorded on a cost basis. Silicon Valley Technology Partners Preferred Shares In November 2018, in connection with the divestiture of Overland, the Company received 1,879,699 SVTP Preferred Shares with a fair value of $2.1 million. The fair value of this investment was estimated using discounted cash flows. The Company concluded it does not have a significant influence over the investee. There were no known identified events or changes in circumstances that may have a significant adverse effect on the fair value of the Company’s investments at December 31, 2021. |
Certain Balance Sheet Items
Certain Balance Sheet Items | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Disclosures [Text Block] | Certain Balance Sheet Items The following table summarizes inventories (in thousands): December 31, 2021 2020 Raw materials $ — $ 119 Work in process — 167 Finished goods — 272 $ — $ 558 The following table summarizes other current assets (in thousands): December 31, 2021 2020 Prepaid digital mining hosting services $ 20,043 $ — Prepaid services 1,477 421 Prepaid insurance 406 158 Transition service agreement, related party — 115 Deferred cost - service contracts 49 99 Other 52 14 $ 22,027 $ 807 The following table summarizes other assets (in thousands): December 31, 2021 2020 Prepaid deposit for equipment $ 102,238 $ — Prepaid insurance 251 385 Deferred cost – service contracts 7 56 Other 52 2 $ 102,548 $ 443 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Intangible Assets and Goodwill The following table summarizes intangible assets, net (in thousands): December 31, 2021 2020 Developed technology $ 10,344 $ 13,117 Supplier agreements 68,147 1,560 Channel partner relationships 730 730 Capitalized development costs (1) 103 3,116 Customer relationships 380 380 79,704 18,903 Accumulated amortization: Developed technology (10,344) (13,117) Supplier agreements (5,289) (43) Channel partner relationships (598) (477) Capitalized development costs (1) (103) (2,518) Customer relationships (353) (340) (16,687) (16,495) Total finite-lived assets, net 63,017 2,408 Indefinite-lived intangible assets - trade names — 200 Total intangible assets, net $ 63,017 $ 2,608 ________________ (1) Includes the impact of foreign currency exchange rate fluctuations. Amortization expense of intangible assets was $5.7 million, $1.0 million, and $1.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. Estimated amortization expense for intangible assets is approximately $27.1 million, $8.6 million, $8.6 million, $8.6 million and $8.6 million in fiscal 2022, 2023, 2024, 2025 and 2026, respectively. Hertford Asset Acquisition On July 31, 2021, the Company entered into an agreement (the “Hertford Agreement”) with Hertford Advisors Ltd. (“Hertford”), a privately held company that provides turnkey mining solutions, to provide an exclusive right to assume all of Hertford’s rights to a number of cryptocurrency mining hardware agreements (the “Equipment Agreements”) and the right to complete negotiations to secure a long-term contract for 200,000 square foot crypto mining facility (the “Mining Facility Agreement”). The Company has assumed and executed the first Equipment Agreement directly with the manufacturer, for the purchase of up to 60,000 new cryptocurrency mining machines, with deliveries to commence in January 2022 and continue over the course of the next 12 months. In exchange for the assignment of the Equipment Agreements and the Mining Facility Agreement, for which the Company has the right, but not the obligation, to complete, and subject to receipt of all necessary regulatory approvals and execution of definitive agreements, the Company issued to Hertford common shares and preferred shares of the Company. On August 12, 2021, the Company issued 4,500,000 common shares with a fair value of $11.4 million to Hertford in satisfaction of assignment of the Equipment Agreements and the Mining Facility Agreement to the Company. The Company applied a 25% discount for lack of marketability of common shares for the six-month restriction based on a put option pricing model using volatility of 140% and a risk-free rate of 0.05%. The Company has subsequently determined not to proceed with the Mining Facility Agreement and certain Equipment Agreements. On October 1, 2021, the Company issued 96,000 Series H Preferred Shares with a fair value of $42.4 million to Hertford. The issuance of the Series H Preferred Shares was triggered by the Company’s deposit made to FuFu Technology Limited (“BitFuFu”) for digital mining hardware and other equipment. Additional consideration will be granted as other key milestones are achieved. The common shares issued by the Company are subject to lock up and leak out agreements for a period of two years, with the initial release starting six months from the anniversary of the Hertford Agreement. The Company issued 135,000 common shares in satisfaction of a $456,000 finder’s fee to Majestic Dragon Financial Services Ltd. which is included in general and administrative expense in the consolidated statements of operations. Supplier Agreement Acquisition On August 3, 2020, Dale Allan Peters (“Peters”), as the beneficial shareholder of 101250 Investments Ltd. (“101 Invest”), a company existing under the laws of the Turks & Caicos Islands and a water partner of Rainmaker, entered into a Share Purchase Agreement (the “101 Invest Purchase Agreement”) with the Company. As a result of the 101 Invest Purchase Agreement, 101 Invest is a wholly-owned subsidiary of the Company. Under the terms of the 101 Invest Purchase Agreement, the Company issued 480,000 common shares at $3.25 per share to Greenfield Investments Ltd. for a purchase price of $1,560,000. The Company held back and retained 96,000 of the common shares for a six-month period from the closing date in support of any breaches of representations and warranties by Peters under the 101 Invest Purchase Agreement (the “Escrow Shares”). The Company released the Escrow Shares to Peters in February 2021. 101 Invest has exclusive rights to deliver the Rainmaker water solution to three Turks and Caicos island communities - Plantation Hills, Blue Sky and Village Estates. Impairment of Goodwill Goodwill at December 31, 2021 and 2020 was nil and $1.4 million, respectively, which consisted of goodwill from prior acquisitions. In October 2021, the Company disposed of its SnapServer ® product line and removed the related goodwill of $863,000 and is included in the net gain on sale of the asset. The Company performed qualitative impairment evaluations on its remaining goodwill as of December 31, 2021 and determined that there was indications that the goodwill was impaired and recorded an impairment charge of $522,000 for the year ended December 31, 2021. Impairment of Intangible Assets In 2021, primarily as a result of the Company’s disposal of its SnapServer ® product line, it was determined the carrying value of finite-lived intangible assets exceeded its estimated fair value. In measuring fair value, the Company used an excess of earnings approach. The Company compared the indicated fair value to the carrying value of its finite-lived assets, and as a result of the analysis, an impairment charge of $298,000 was recorded for developed technology for the year ended December 31, 2021. In 2020, primarily as a result of the Company’s change in revenue projection for its SnapServer ® product line, it was determined the carrying value of finite-lived intangible assets exceeded its estimated fair value. In measuring fair value, the Company used an excess of earnings approach. The Company compared the indicated fair value to the carrying value of its finite-lived assets, and as a result of the analysis, an impairment charge of $206,000 was recorded for developed technology for the year ended December 31, 2020. In 2020 and 2019, primarily as a result of the Company’s change in revenue projection for its SnapServer ® product line, it was determined the carrying value of indefinite-lived intangible assets exceeded its estimated fair value. In measuring fair value, the Company used a relief-from-royalty approach. The Company compared the indicated fair value to the carrying value of its indefinite-lived assets, and as a result of the analysis, an impairment charge of $80,000 and $70,000 was recorded to indefinite-lived trade names for the years ended December 31, 2020 and 2019, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt PPP Funds On February 3, 2021, the Company received funds in the amount of $447,400 and entered into a loan agreement with Citizens National Bank of Texas pursuant to the CARES Act (“PPP Funds”). The CARES Act was established in order to enable small businesses to pay employees during the economic slowdown caused by COVID-19 by providing forgivable loans to qualifying businesses for up to certain amounts of average monthly payroll costs. The amount borrowed by the Company under the CARES Act was eligible to be forgiven provided (a) the Company used the PPP Funds during the eight to twenty-four week period after receipt thereof, and (b) the PPP Funds are only used to cover payroll costs (including benefits), and other allowed expenses. On April 9, 2020, the Company received PPP Funds in the amount of $667,400 and entered into a loan agreement with Citizens National Bank of Texas pursuant to the CARES Act. The amount borrowed by the Company under the CARES Act was eligible to be forgiven provided (a) the Company used the PPP funds during the eight week period after receipt thereof, and (b) the PPP funds were only used to cover payroll costs (including benefits), rent, mortgage interest, and utility costs. In 2021, the aggregate PPP Funds were forgiven by the lender and the Company recorded a $1.1 million gain on forgiveness of debt which is included in interest income and other, net. At December 31, 2021 there was no outstanding balance on the PPP Funds. Oasis Convertible Promissory Note On July 28, 2020, the Company entered into a Securities Purchase Agreement with Oasis Capital (“Oasis”), a former related party of the Company, pursuant to which the Company received $500,000 and issued to Oasis (i) an 8.0% original issue discount promissory note payable, with a term of six months and aggregate principal amount of $615,000 (“Oasis Promissory Note”), and (ii) 90,000 common shares of the Company at $3.37 per share. A former related party earned a fee of $40,000 for facilitating the transaction. The Oasis Promissory Note was due on January 28, 2021. On March 10, 2021, the Company and Oasis entered into an Exchange Agreement under which Oasis surrendered the Oasis Promissory Note dated July 28, 2020 in exchange for a new Convertible Promissory Note issued to Oasis with (i) a principal amount of $796,159, (ii) interest rate of 8.0% per annum, (iii) a 12 month maturity date, and (iv) convertible into common shares of the Company. During the year ended December 31, 2021, the Company incurred a $241,000 penalty fee for the defaults on the original Oasis Promissory Note which is included in related party interest expense. During the year ended December 31, 2021, the Company issued 468,225 common shares in satisfaction of payment in full for the Convertible Promissory Note. At December 31, 2021 there was no outstanding balance on the Oasis Convertible Promissory Note. Convertible Debt and Warrants On February 13, 2020, the Company entered into a business advisory agreement with Torrington Financial Services Ltd (“Torrington” or “Advisor”), a financial adviser to the Company. As a result of the below March 23, 2020 transaction, Torrington and its entity under common control, Lallande Poydras Investment Partnership (“Lallande”), both participated in the below offering and were classified as a related party of the Company. At December 31, 2021, Torrington is no longer classified as a related party of the Company. On March 23, 2020, the Company entered into subscription agreements by and among the Company and the investors party thereto, including the Advisor, a related party, for the purchase and sale of 725 units (collectively, the “Units” and individually, a “Unit”) for aggregate gross proceeds of $725,000 (the “Offering”), with each Unit consisting of (a) a 6% convertible debenture in the principal amount of $1,000, which is convertible at $0.6495 per share into 1,540 common shares of the Company, and (b) a warrant to purchase 1,540 common shares of the Company exercisable at any time on or before the third year anniversary date at an exercise price of $0.60 per share. The warrant included a provision restricting the warrant holder from exercising it if the aggregate number of common shares held by the warrant holder equals or exceeds 5.0% of the issued and outstanding shares of the Company, calculated on a partially converted basis (i.e., assuming the conversion of all rights to receive common shares of the Company held by the warrant holder). In connection with the Offering and as compensation for the Advisor’s services, the Company issued to the Advisor convertible debentures equal to $58,000 and convertible into 89,320 common shares and with other terms also substantially the same as the investors. The Company received cash proceeds of $575,000 from the Offering, and a participant of the offering, a related party, paid directly $150,000 to a financial consultant for a prepayment of services to the Company. The Company used the remaining proceeds from the Offering for general corporate and working capital purposes. During the year ended December 31, 2020, the Company converted all of the outstanding convertible debenture balance of $783,000, including the Advisor fee, and issued, in the aggregate, 1,205,820 common shares of the Company, of which $408,000 of convertible debenture was held by related parties, and they were issued in the aggregate 628,320 common shares. OMM Promissory Note On August 27, 2020, the Company entered into a settlement agreement with O’Melveny & Myers LLP (“OMM”) pursuant to which the Company issued to OMM a secured promissory note (the “OMM Note”) in the aggregate principal amount of $1.1 million in satisfaction of certain accounts payable owed to OMM. The OMM Note bore interest at 1.68%. In 2020, the Company recorded a gain on forgiveness of liabilities in the amount of $594,000 which was included in interest income and other, net. On April 2, 2021, the Company incurred an extension fee in the amount of $118,000 for the extension of the OMM Note maturity date. During the year ended December 31, 2021, the OMM Note was repaid in full. At December 31, 2021, there was no outstanding balance on the OMM Note. |
Preferred Shares (Notes)
Preferred Shares (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Preferred Stock [Text Block] | Preferred Shares Series H Preferred Shares On October 1, 2021, the Company filed articles of amendment to create a series of preferred shares, being, an unlimited number of Series H Preferred Shares and to provide for the rights, privileges, restrictions and conditions attaching thereto. The Series H Preferred Shares are convertible provided (and only if and to the extent) that prior shareholder approval of the issuance of all Sphere 3D common shares issuable upon conversion of the Series H Preferred Shares has been obtained in accordance with the rules of the Nasdaq Stock Market, at any time from time to time, at the option of the holder thereof, into 1,000 Sphere 3D common shares for every Series H Preferred Share. Each holder of the Series H Preferred Shares, may, subject to prior shareholder approval, convert all or any part of the Series H Preferred Shares provided that after such conversion the common shares issuable, together with all the common shares held by the shareholder in the aggregate would not exceed 9.99% of the total number of outstanding common shares of the Company. Each Series H Preferred Share has a stated value of $1,000. The Series H Preferred Shares are non-voting and do not accrue dividends. In connection with the Hertford Agreement the Company entered into in July 2021, on October 1, 2021, the Company issued 96,000 Series H Preferred Shares with a fair value of $42.4 million to Hertford. The issuance of the Series H Preferred Shares was triggered by the Company’s $85.0 million deposit made to BitFuFu for digital mining hardware and other equipment. The Company has committed to additional issuances of Series H Preferred Shares to Hertford upon execution of new digital mining hardware equipment contracts as defined in the Hertford Agreement. Series G Preferred Shares On July 13, 2021, the Company filed articles of amendment to create a series of preferred shares, being, an unlimited number of Series G Preferred Shares and to provide for the rights, privileges, restrictions and conditions attaching thereto. Each shareholder of the Series G Preferred Shares, may, at any time, convert all or any part of the Series G Preferred Shares provided that after such conversion the common shares issuable, together with all the common shares held by the shareholder in the aggregate would not exceed 4.99% of the total number of outstanding common shares of the Company. This amount may be increased to 9.99% with 61 days’ notice to the Company. Each Series G Preferred Share has a stated value of $1,000 and is convertible into the Company’s common shares at a conversion price equal to the lower of (i) 80% of the average of the three lowest volume weighted average price of the common stock during the ten trading days immediately preceding, but not including, the conversion date and (ii) $2.75; however, in no event shall the conversion price be lower than $1.00 per share. The Series G Preferred Shares are non-voting and pay dividends at a rate of 8.0% per annum, payable quarterly. On July 12, 2021, the Company entered into a Securities Purchase Agreement with two institutional investors for the issuance of an aggregate of $10.0 million worth of Series G Convertible Preferred Shares of the Company (the “Series G Preferred Shares”), and the issuance to the purchasers of an aggregate of 2,000,000 warrants to purchase common shares of the Company, which such warrants have a term of three years from the shareholder approval date of December 22, 2021, and an exercise price of $4.00 per share. Until the Company obtains the approval of its shareholders to do so the Series G Preferred Shares can only be converted into a maximum of 4,400,000 common shares. During the year ended December 31, 2021, the Company has issued 3,636,364 common shares of the Company for the conversion of 10,000 Series G Preferred Shares. There are no Series G Preferred Shares outstanding at December 31, 2021. Series E Preferred Shares On September 17, 2020, the Company filed articles of amendment to create a series of preferred shares, being, an unlimited number of Series E Preferred Shares and to provide for the rights, privileges, restrictions and conditions attaching thereto. The shareholder of the Series E Preferred Shares, may, at any time, convert all or any Series E Preferred Shares provided that the common shares issuable upon such conversion, together with all other common shares of the Company held by the shareholder in the aggregate, would not cause such shareholder’s ownership of the Company’s common shares to exceed 4.99% of the total number of outstanding common shares of the Company. This amount may be increased to 9.99% with 61 days’ notice to the Company. Each Series E Preferred Share has a stated value of $1,000 and is convertible into the Company’s common shares at a conversion price equal to the lower of (i) 70% of the average of the three lowest volume weighted average price of the common stock during the ten trading days immediately preceding, but not including, the conversion date and (ii) $2.00; however, in no event shall the conversion price be lower than $1.00 per share. The Series E Preferred Shares are non-voting and pay dividends at a rate of 8.0% per annum, payable quarterly. On September 14, 2020, the Company entered into a Securities Purchase Agreement (“Westworld SPA”) with Westworld Financial Capital, LLC (“Westworld”), a beneficial owner, relating to the issuance and sale to the investor of 3,000 shares of the Company’s Series E Preferred Shares in a private placement transaction for net proceeds of $2.7 million. The Company paid Torrington a business advisory fee of $240,000 related to this transaction. Under the Westworld SPA, the Company agreed to obtain the consent of Westworld for any additional financings by the Company. On March 9, 2021, the Company and Westworld entered into an Amendment to the Westworld SPA and on March 23, 2021 the Company issued 250,000 common shares of the Company with a fair value of $653,000 to Westworld for the Company’s failure to file a timely registration statement required under the Westworld SPA. Such expense is included in interest income and other, net on the consolidated statement of operations. On April 8, 2021, the Company was in default for failure to file a timely registration statement for the shares issued on March 9, 2021. As stated in the Amendment to the Westworld SPA, the Company incurred a penalty equal to 24.0% per annum on the additional common shares fair value of $653,000 until September 19, 2021. During the year ended December 31, 2021, the Company issued 2,456,918 common shares of the Company for the conversion of 3,000 Series E Preferred Shares. There are no Series E Preferred Shares outstanding at December 31, 2021. Series D Preferred Shares On May 6, 2020, the Company filed articles of amendment to create a series of preferred shares, being, an unlimited number of Series D Preferred Shares and to provide for the rights, privileges, restrictions and conditions attaching thereto. The Series D Preferred Shares are convertible into our common shares, at a conversion price equal to $0.65, subject to certain anti-dilution adjustments. Each shareholder of the Series D Preferred Shares, may, at any time, convert all or any part of the Series D Preferred Shares provided that after such conversion the common shares issuable, together with all the common shares held by the shareholder in the aggregate would not exceed 4.99% of the total number of outstanding common shares of the Company. This amount may be increased to 9.99% with 61 days’ notice to the Company. On April 30, 2020, the Company entered into a Securities Purchase Agreement with two investors relating to the issuance and sale, in the aggregate, of 1,694,000 shares (the “Shares“) of Series D Preferred Shares, no par value and warrants to purchase up to 1,694,000 common shares of the Company in a private placement transaction, in exchange for the assignment to the Company by the investors of certain convertible promissory notes receivable held by the investors in an aggregate amount of $1.1 million. The warrants are exercisable at an exercise price equal to $0.92 per common share, subject to adjustments as provided under the terms of the warrants, and are exercisable for five years. The warrants include a provision restricting the warrant holder from exercising it if the aggregate number of common shares held by the warrant holder equals or exceeds 5.0% of the issued and outstanding shares of the Company, calculated on a partially converted basis (assuming the conversion of all rights to receive common shares of the Company held by the warrant holder). The Series D Preferred Shares are convertible at the option of the holder, subject to certain conditions. During the years ended December 31, 2021 and 2020, the Company issued 909,000 and 785,000 common shares of the Company, respectively, for the conversion of 909,000 and 785,000 Series D Preferred Shares, respectively. There are no Series D Preferred Shares outstanding at December 31, 2021. Series C Preferred Shares On October 30, 2019, the Company passed a resolution authorizing the filing of articles of amendment to create a series of preferred shares, being, an unlimited number of Series C Preferred Shares and to provide for the rights, privileges, restrictions and conditions attaching thereto. On November 6, 2019, the Company filed the Articles of Amendment to create the Series C Preferred Shares. Pursuant to the articles of amendment governing the rights and preferences of outstanding shares of Series C Preferred Shares, each preferred share, subject to prior shareholder approval, are convertible into our common shares, at a conversion rate in effect on the date of conversion. Overland Storage Inc. (“Overland”), a former related party and the sole shareholder of the Series C Preferred Shares, agreed that it would not exercise its conversion right with respect to its Series C Preferred Shares until the earlier of (i) October 31, 2020 or (ii) such time that we file for bankruptcy or an involuntary petition for bankruptcy is filed against us (unless such petition is dismissed or discharged within 30 days). On October 31, 2020, the Company received notification requesting conversion of the Series C Preferred Shares held by Overland. On March 3, 2021, the Company issued two investors in the aggregate 1,440,000 common shares for the conversion of all of the outstanding 1,600,000 Series C Preferred Shares. There are no Series C Preferred Shares outstanding at December 31, 2021. Series B Preferred Shares In July 2019, the Company filed of articles of amendment to create a series of preferred shares, being, an unlimited number of Series B Preferred Shares and to provide for the rights, privileges, restrictions and conditions attaching thereto. In July 2019, following the filing of the Articles of Amendment to create the Series B Preferred Shares, the Company entered into a share exchange agreement with FBC Holdings SARL (“FBC Holdings”) to exchange 6,500,000 Series A Preferred Shares held by FBC Holdings for 6,500,000 Series B Preferred Shares, which included accrued dividends. Pursuant to the terms of a waiver agreement entered into by FBC Holdings and the Company on April 8, 2021, FBC Holdings has irrevocably and unconditionally waived its ability, upon providing the Company with at least 61 days' prior written notice, to increase or decrease the maximum percentage from the 9.99% threshold provided for in the Company's articles of amendment governing the rights and preferences of outstanding shares of Series B Preferred Shares unless FBC Holdings obtains the Company's prior written consent. The Series B Preferred Shares (i) were convertible into the Company’s common shares, subject to prior shareholder approval, at a conversion rate equal to $1.00 per share, plus accrued and unpaid dividends, divided by an amount equal to 0.85 multiplied by a 15-day volume weighted average price per common share prior to the date the conversion notice is provided (the “Conversion Rate”), subject to a conversion price floor of $0.80, (ii) after November 13, 2020, fixed, preferential, cumulative cash dividends at the rate of 8.0% of the Series B Preferred Shares subscription price per year, and (iii) carry a liquidation preference equal to the subscription price per Series B Preferred Share plus any accrued and unpaid dividends. In August 2021, all of the Series B Preferred Shares were converted and the Company issued 2,639,542 common shares of the Company, including 107,481 common shares for satisfaction of outstanding accrued Series B Preferred dividends. There are no Series B Preferred Shares outstanding at December 31, 2021. In August 2019, the Company issued 343,778 Series B Preferred Shares with a fair value of $343,778 to FBC Holdings in satisfaction of accrued dividends at such date. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Share Capital In December 2021, the Company entered into a consulting agreement with MCSK Holdings Ltd. (“MCSK”) to advise and assist the Company in developing and implementing appropriate plans and materials for presenting the Company and its business plan, strategy and personnel to certain identified providers of utilities for the purpose of establishing cryptocurrency operations (the “MCSK Consulting Agreement”). As compensation for MCSK’s services to be provided pursuant to the MCSK Consulting Agreement, the Company issued to MCSK 300,000 common shares with a fair value of $1.2 million. In October 2021, the Company issued 2,880,000 common shares with a fair value of $12.8 million for a fee incurred under the July 31, 2021 Majestic Dragon agreement related to the Series H Preferred Shares issued to Hertford on October 1, 2021. The Company applied a 25% discount for lack of marketability of common shares for the six-month restriction based on a put option pricing model using volatility of 140% and a risk-free rate of 0.05%. In August 2021, the Company issued 135,000 common shares with a fair value of a $456,000 under the Majestic Dragon agreement for a finder’s fee related to the Hertford Agreement. In October 2021, in consideration for Westworld waiving its rights to consent to any and all past, present and future additional financings by the Company, the parties entered into a second amendment to the Westworld SPA under which the Company issued to Westworld, 850,000 warrants to purchase 850,000 common shares of the Company, which such warrants have a fair value of $2.8 million, a term of three years, and an exercise price of $6.00 per share. In September 2021, the Company completed a registered direct offering of an aggregate of 22,600,000 common shares, no par value, and warrants to purchase an aggregate of 11,299,000 common shares of the Company at a combined offering price of $8.50 per share. The warrants have an exercise price of $9.50 per share. Each warrant is exercisable for one common share and is immediately exercisable and will expire five years from the issuance date. A holder (together with its affiliates) may not exercise any portion of such holder's warrants to the extent that the holder would own more than 4.99% of the Company's outstanding common shares immediately after exercise, except that upon notice from the holder to the Company, the holder may decrease or increase the limitation of ownership of outstanding stock after exercising the holder's warrants up to 9.99% of the number of common shares outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrants, provided that any increase in such limitation shall not be effective until 61 days following notice to the Company. Net proceeds, after deducting placement agent's fees, commissions and other offering expenses, were approximately $176.3 million. Maxim Group LLC (“Maxim”) acted as the sole placement agent in connection with the offering. The proceeds will be used, in part, towards the purchase of crypto mining machines. In August 2021, the Company completed the purchase and sale of 2,488,530 units (collectively, the “Units” and individually, a “Unit”) at a combined offering price of $4.25 per Unit with each Unit consisting of (a) one common share of the Company, (b) a warrant to purchase one common share of the Company at an exercise price of $6.50 per share immediately exercisable and will expire three years from the issuance date (the “A Warrant”), and (c) a warrant to purchase one common share of the Company at an exercise price of $7.50 per share immediately exercisable and will expire three years from the issuance date (the “B Warrant”) (collectively the “August 2021 Warrants”). The August 2021 Warrants include a provision restricting the warrant holder from exercising it if the aggregate number of common shares held by the warrant holder equals or exceeds 4.99% of the issued and outstanding shares of the Company, calculated on a partially converted basis (i.e., assuming the conversion of all rights to receive common shares of the Company held by the warrant holder). In addition, as an introduction fee, the Company issued to OTC Hospitality Group 106,958 A Warrants and 106,958 B Warrants, with the same terms as the August 2021 Warrants, to purchase, in the aggregate, up to 213,916 common shares and paid to OTC Hospitality Group $456,000 in cash. Net proceeds were approximately $10.1 million. The Company intends to use the proceeds for general corporate and working capital purposes. In May 2021, the Company completed the closing of its underwritten public offering of 5,600,000 common shares at a price to the public of $1.25 per share. Maxim acted as the sole placement agent in connection with the offering. The Company granted to Maxim a 45-day option to purchase up to an additional 700,000 common shares, at the public offering price less underwriting discounts and commissions, of which Maxim has exercised its option to purchase the additional common shares. In addition, the Company issued Maxim 224,000 warrants, with a cashless provision, to purchase up to 224,000 common shares at a purchase price of $1.375. Net proceeds after deducting underwriting discounts, commissions and other offering expenses were approximately $6.8 million, inclusive of the over-allotment. In May 2021, the Company entered into a settlement and termination agreement with Torrington, and as full and final settlement of all amounts owing under the February 13, 2020 Business Advisory Agreement, whether fixed, contingent or otherwise, the Company issued to Torrington, as a one-time payment, share certificates representing 600,000 common shares of the Company with a fair value of $795,000. On June 1, 2020, the Company entered into a consulting agreement with GROUPE PARAMEUS CORP (“GROUPE P”) to provide consulting services for one year to the Company in the area of corporate finance, investor communications and financial and investor public relations. As compensation for GROUPE P’s services to be provided pursuant to the consulting agreement, in addition to a prepayment of $150,000 in cash, the Company granted 100,000 restricted stock awards, 100,000 common shares of the Company pursuant to the terms of Regulation D under the Securities Act of 1933, and a non-qualified stock option for the purchase of 50,000 common shares at an exercise price of $2.52 per share with a vest period over six months. On June 16, 2020, the Company issued 200,000 common shares to GROUPE P with a fair value of $504,000. On April 24, 2020, the Company entered into a consulting agreement with ROK Consulting Inc. (“ROK”) to provide consulting services to the Company in the area of corporate finance, investor communications and financial and investor public relations (the “ROK Consulting Agreement”). As compensation for ROK’s services to be provided pursuant to the ROK Consulting Agreement, in addition to cash compensation, the Company agreed to issue to ROK 375,000 common shares of the Company. On June 19, 2020, the Company issued 150,000 common shares of the Company with a fair value of $360,000 to ROK per the terms of the ROK Consulting Agreement. On August 4, 2020, the Company issued 225,000 common shares of the Company with a fair value of $725,000 to ROK per the terms of the ROK Consulting Agreement. In May 2020, the Company entered into an equity purchase agreement and registration rights agreement with Oasis Capital, LLC (“Oasis”), to purchase from the Company up to $11.0 million worth of common shares of the Company. Under the purchase agreement, the Company has the right to sell up to $11.0 million of its common shares to Oasis over a 36-month period. The Company controlled the timing and amount of any sales to Oasis, and Oasis is obligated to make purchases in accordance with the purchase agreement, upon certain terms and conditions being met. The purchase agreement, which contained a floor price of $1.58 per common share, allowed the Company to fund its needs in a more expedient and cost-effective manner, on the pricing terms set forth in the purchase agreement. The equity line was designed to provide capital to the company as it is required. On October 26, 2020, the Company issued 30,000 unregistered common shares of the Company to Oasis, with a fair value of $77,000, in exchange for a waiver from Oasis of its prepayment right under the Oasis promissory note as a result of the Series E Preferred Shares transaction. During the years ended December 31, 2021 and 2020, the Company issued 630,000 and 200,000 common shares, respectively, to Oasis for gross proceeds of $1.3 million and $0.4 million, respectively, under the terms and conditions of the equity purchase agreement. In November 2021, the equity purchase agreement with Oasis was terminated by the Company. The Company has Unlimited authorized shares of common shares at no par value. At December 31, 2021, the Company had the following outstanding warrants to purchase common shares: Date issued Contractual life (years) Exercise price per share Number outstanding Expiration August 2017 5 $42.00 37,500 August 11, 2022 August 2017 5 $42.00 11,876 August 16, 2022 August 2017 5 $42.00 25,625 August 22, 2022 April 2018 5 $5.60 111,563 April 17, 2023 March 2020 3 $0.60 31,000 March 23, 2023 July 2021 3 $4.00 2,000,000 December 22, 2024 August 2021 3 $6.50 2,595,488 August 25, 2024 August 2021 3 $7.50 2,595,488 August 25, 2024 September 2021 5 $9.50 11,299,999 September 8, 2026 October 2021 3 $6.00 850,000 October 1, 2024 19,558,539 |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Equity Incentive Plans As of December 31, 2021, a total of 2,042,578 common shares are authorized for issuance with respect to awards granted under the 2015 Plan (not including shares subject to terminated awards under our Second Amended and Restated Stock Option Plan that become available for issuance under the 2015 Plan). In addition, the share limit will automatically increase on the first trading day in January of each calendar year during the term of the 2015 Plan by an amount equal to the lesser of (i) 10% of the total number of common shares issued and outstanding on December 31 of the immediately preceding calendar year, or (ii) such number of common shares as may be established by the Board. The 2015 Plan authorizes the board of directors to grant stock and options awards to directors, employees and consultants. As of December 31, 2021, the Company had approximately 404,000 share-based awards available for future grant. The Company’s Employee Stock Purchase Plan (“ESPP”) authorizes the purchase of up to 37,500 common shares by employees under the plan. As of December 31, 2021 and 2020, there were no offering periods available to employees. Stock Options There were no options granted in 2021. The options granted in 2020 were issued to non-employees for services performed. The fair value of each option was estimated on the date of grant using the Black-Scholes option pricing model, using expected volatility of 125%, risk-free interest rate of 0.195% and expected term of 18 months. The expected volatility was based on the Company’s historical share price. The risk-free interest rate is determined based upon a constant maturity U.S. Treasury security with a contractual life approximating the expected term of the option. The expected term of options granted is based on term of the award. Option awards can be granted for a maximum term of up to ten years. For the years ended December 31, 2021 and 2020, the intrinsic value of stock options exercised was $0.5 million and $10,000, respectively. Option activity is summarized below: Shares Weighted- Weighted- Aggregate Intrinsic Value Options outstanding — January 1, 2019 20,050 $ 199.06 Granted — $ — Exercised — $ — Forfeited (17,450) $ 160.93 Options outstanding — December 31, 2019 2,600 $ 781.19 Granted 130,000 $ 2.52 Exercised (30,000) $ 2.52 Forfeited (1,425) $ 995.07 Options outstanding — December 31, 2020 101,175 $ 8.94 Granted — $ — Exercised (100,000) $ 2.52 Forfeited (500) $ 542.00 Options outstanding — December 31, 2021 675 $ 565.76 1.7 $ — Vested and expected to vest — December 31, 2021 675 $ 565.76 1.7 $ — Exercisable — December 31, 2021 675 $ 565.76 1.7 $ — Restricted Stock Units The following table summarizes information about RSU activity: Number of Weighted Average Outstanding — January 1, 2019 53,004 $ 31.21 Granted 100,000 $ 2.51 Vested and released (131,541) $ 9.68 Forfeited (665) $ 64.95 Outstanding — December 31, 2019 20,798 $ 4.99 Granted — $ — Vested and released (20,420) $ 3.82 Forfeited (378) $ 68.02 Outstanding — December 31, 2020 — $ — Granted 206,053 $ 2.80 Vested and released (133,553) $ 2.55 Forfeited (12,500) $ 2.29 Outstanding — December 31, 2021 60,000 $ 3.46 The estimated fair value of RSUs was based on the market value of the Company’s common shares on the date of grant. RSUs typically vest over a period of three years from the original date of grant. The total grant date fair value of RSUs vested during the years ended December 31, 2021, 2020 and 2019 was approximately $0.3 million, $0.1 million, and $1.3 million, respectively. The fair value of RSUs vested during the years ended December 31, 2021, 2020 and 2019 was approximately $392,000, $17,000, and $211000, respectively. Outside of 2015 Equity Incentive Plan On March 26, 2019, the Board of Directors of the Company approved and granted 100,000 RSUs outside of the 2015 Plan to an employee. The RSUs have an estimated fair value of $2.51 per unit and fully vested in 2019. Restricted Stock Awards During 2021, 2020 and 2019, the Company granted restricted stock awards (“RSA”) to certain employees, directors and consultants in lieu of cash payment for services performed. The estimated fair value of the RSAs was based on the market value of the Company’s common shares on the date of grant. The RSAs were fully vested on the date of grant. The fair value of the RSAs vested during the years ended December 31, 2021, 2020 and 2019 was approximately $1.4 million, $0.8 million, and $0.2 million, respectively. The following table summarizes information about RSA activity: Number of Weighted Average Outstanding — January 1, 2019 — $ — Granted 194,000 $ 1.20 Vested (194,000) $ 1.20 Outstanding — December 31, 2019 — $ — Granted 400,841 $ 1.92 Vested (400,841) $ 1.92 Outstanding — December 31, 2020 — $ — Granted 301,880 $ 4.74 Vested (301,880) $ 4.74 Outstanding — December 31, 2021 — $ — Share-Based Compensation Expense The Company recorded the following compensation expense related to its share-based compensation awards (in thousands): Year Ended December 31, 2021 2020 2019 Sales and marketing $ 131 $ 2 $ 279 Research and development — 3 61 General and administrative 235 — 297 Total share-based compensation expense $ 366 $ 5 $ 637 As of December 31, 2021, there was $0.2 million unrecognized compensation expense related to unvested equity-based compensation awards, and is expected to be recognized over a weighted average period of five months. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Net Loss per Share Basic net loss per share is computed by dividing net loss applicable to common shareholders by the weighted-average number of common shares outstanding during the period. Preferred shares, outstanding common share purchase warrants, and outstanding options are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share were as follows: December 31, 2021 2020 2019 Common share purchase warrants 19,558,539 2,786,534 205,562 Preferred shares 96,000 9,355,778 8,443,778 Options and RSUs outstanding 60,675 101,175 23,398 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The Company is subject to taxation in Canada and also in certain foreign tax jurisdictions. The Company's tax returns for calendar year 2012 and forward are subject to examination by the Canadian tax authorities. The Company's tax returns for fiscal year 2006 and forward are subject to examination by the U.S. federal and state tax authorities. The Company recognizes the impact of an uncertain income tax position on its income tax return at the largest amount that is “more likely than not” to be sustained upon audit by the relevant taxing authority. An uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained. At December 31, 2021, there were no unrecognized tax benefits. The Company believes it is reasonably possible that, within the next 12 months, the amount of unrecognized tax benefits may remain unchanged. The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. The Company had no material accrual for interest and penalties on its consolidated balance sheets at December 31, 2021 and 2020, and recognized no interest and/or penalties in the consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019. The components of loss before income taxes were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ (21,577) $ (4,546) $ (1,815) Foreign 4,273 (1,229) (2,466) Total $ (17,304) $ (5,775) $ (4,281) A reconciliation of income taxes computed by applying the federal statutory income tax rate of 26.5% to loss before income taxes to the total income tax benefit reported in the accompanying consolidated statements of operations is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Income tax at statutory rate $ (4,586) $ (1,531) $ (1,134) Foreign rate differential (139) (37) (77) Change in valuation allowance 4,358 1,588 15,104 Share-based compensation expense — — 85 Forgiveness of debt (236) — — Impairment of acquired intangible assets 110 — — Change to provision and other true-ups 144 119 (13,371) Other differences 334 (135) (607) (Benefit from) provision for income taxes $ (15) $ 4 $ — Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are shown below. A valuation allowance has been recorded, as realization of such assets is uncertain. Deferred income taxes are comprised as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Net operating loss and capital loss carryforwards $ 31,210 $ 26,539 Intangible assets 2,716 2,381 Share-based compensation 26 1 Other 261 992 Deferred tax assets, gross 34,213 29,913 Valuation allowance for deferred tax assets (34,213) (29,854) Deferred tax assets, net of valuation allowance — 59 Deferred tax liabilities: Indefinite-lived intangible assets — (74) Deferred tax liabilities — (74) Net deferred tax liabilities $ — $ (15) Net deferred tax liabilities is included in other non-current liabilities. At December 31, 2021, the Company had Canadian net operating loss carryforwards of $59.3 million. These carryforwards will begin expiring December 31, 2031, unless previously utilized. At December 31, 2021, the Company had U.S. federal net operating loss carryforwards of $11.0 million that begin expiring in December 31, 2034 unless previously utilized, except for $7.2 million that have no expiration date. The Company also has net capital loss carryforwards in Canada of $27.7 million, which are available indefinitely to offset taxable capital gains. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions In November 2018, the Company entered into a Transition Service Agreement (“TSA”) to facilitate an orderly transition process for the divestiture of Overland. As of December 31, 2021 and 2020, the TSA had a prepaid balance of nil and $115,000. Overland is no longer a related party of the Company. Net expense incurred by the Company for to the TSA when Overland was classified as a related party was minimal during 2021. Net expense incurred by the Company was approximately $230,000 and $525,000 for the years ended December 31, 2020 and 2019, respectively. In August 2019, the Company entered into agreements with certain executives of the Company and the Company’s Board of Directors to extinguish certain accrued liabilities. The Company wrote off $1.7 million of outstanding liabilities and recorded a gain on forgiveness of liabilities, which is included in other income (expense), net. As of December 31, 2021 and 2020, accounts payable and accrued liabilities included nil and $247,000, respectively, due to related parties. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Leases As of December 31, 2021 and 2020, the Company had no right-to-use lease assets or liabilities. Rent expense under non-cancelable operating leases is recognized on a straight-line basis over the respective lease terms and $0.2 million for the year ended December 31, 2019. The Company vacated such premise in September 2019. NuMiner Machine Purchase Agreement In November 2021, the Company paid a $10.0 million refundable deposit to NuMiner with the intent to enter into an agreement with NuMiner to purchase 60,000 units of new NM440 Machines for the purpose of cryptocurrency mining, which agreement was executed in February 2022 (the “NuMiner Agreement”). In the event the evaluation of the NM440 Machines that NuMiner will provide to the Company for evaluation purposes yield results unsatisfactory to the Company, and the purchase agreement is terminated, all payments shall be returned to the Company. If, upon evaluation, the NM440 Machines perform to the satisfaction of the terms outlined in the contract, the Company will apply the advanced payments and make the remaining payments to NuMiner throughout 2022. To make such payments, the Company anticipates pursuing financing through debt and/or equity markets and/or utilizing the vendor financing provided for in the NuMiner Agreement. In the event the NuMiner Agreement is performed in full, the aggregate payments to NuMiner will be $1.7 billion in 2022 Master Services Agreement On August 19, 2021, Gryphon entered into a Master Services Agreement with the Company (the “Gryphon MSA”). To provide greater certainty as to the term of the Gryphon MSA, on December 29, 2021, the Company and Gryphon entered into Amendment No. 1 to the Gryphon MSA (the “Gryphon MSA Amendment”) to extend the initial term of the Gryphon MSA from three to four years, or to five years in the event the Company does not receive delivery of a specified minimum number of cryptocurrency mining machines during 2022. Subject to written notice from the Company and an opportunity by Gryphon to cure for a period of up to 180 days, the Company shall be entitled to terminate the Gryphon MSA in the event of: (i) Gryphon’s failure to perform the services under the Gryphon MSA in a professional and workmanlike manner in accordance with generally recognized crypto-mining industry standards for similar services, or (ii) Gryphon’s gross negligence, fraud or willful misconduct in connection with performing the services. Gryphon shall be entitled to specific performance or termination for cause in the event of a breach by the Company, subject to written notice and an opportunity to cure for a period of up to 180 days. As consideration for the Gryphon MSA, Gryphon shall receive the equivalent of 22.5% of the net operating profit, as defined in the Gryphon MSA, of all of the Company’s blockchain and cryptocurrency-related operations as a management fee. Digital Mining Hosting Sub-Lease On October 5, 2021, the Company entered into a Sub-License and Delegation Agreement (“Hosting Sub-Lease”) by and between Gryphon and the Company, which assigned to the Company certain Master Services Agreement, dated as of September 12, 2021 (the “Core Scientific MSA”), by and between Core Scientific, and Gryphon and Master Services Agreement Order #2 (“Order 2”). On December 29, 2021, the Company and Gryphon entered into Amendment No. 1 to the Sub-Lease Agreement (the “Sub-Lease Amendment”) to provide Gryphon the right to recapture the usage of up to 50% of the hosting capacity to be managed by Core Scientific if the Merger Agreement is terminated prior to consummation of the merger. The agreement allows for approximately 230 MW of carbon neutral digital mining hosting capacity to be managed by Core Scientific as hosting partner. The agreement features the installation of digital asset miners at Core Scientific's net carbon neutral blockchain data centers over the course of 14 months. As part of the agreement, Core Scientific will provide digital mining fleet management and monitoring solution, Minder™, data analytics, alerting, monitoring, and miner management services. As of December 31, 2021, the Company has paid $20.0 million to Gryphon for Order 2. The remaining commitment of $31.3 million is to be paid over the next ten months. The Hosting Sub-Lease shall automatically terminate upon the termination of the Core Scientific MSA and/or Order 2 in accordance with their respective terms. In addition, upon any termination of the Gryphon Merger Agreement by Sphere 3D, Gryphon shall have the right, in its sole discretion, to terminate this Core Scientific MSA in its entirety (including the Hosting Sub-Lease) upon not less than 180 calendar days’ written notice to Sphere 3D. BitFuFu Machine Purchase Agreement In July 2021, the Company entered into an agreement with BitFuFu, subsequently amended in September 2021, for the purchase of digital mining hardware and other equipment to the Company. The Company has committed to purchase 60,000 machines for an aggregate value of $305.7 million through December 2022. As of December 31, 2021, the Company has paid a $92.0 million down payment to BitFuFu for prepayment towards the machines which began delivery in January 2022. The down payment and payment of total purchase price are not refundable, save as otherwise mutually agreed to by the parties. The remaining $213.7 million is payable over the next nine months. SPAC Sponsor Loan Commitment to MEOA In September 2021, the Company’s subsidiary, SPAC Sponsor, entered into an agreement with MEOA to provide MEOA with loans in such amounts as may be required by MEOA from time to time to fund MEOA’s working capital requirements, up to an aggregate of $0.5 million (the “MEOA Commitment Agreement”). Each such loan would be evidenced by a promissory note, and would be payable upon consummation of MEOA’s initial business combination, without interest, or, at the SPAC Sponsor’s discretion, would be convertible into warrants of MEOA at a price of $1.00 per warrant. If MEOA does not complete a business combination, any such loans would be forgiven. Majestic Dragon Financial Advisory Services In July 2021, the Company retained, Majestic Dragon Financial Services Ltd. (“Majestic Dragon”), to provide consulting and financial advisory services to the Company commencing on the closing of the Hertford Agreement, dated as of July 31, 2021, for a term ending on the date on which Majestic Dragon and its affiliates or any funds managed by Majestic Dragon cease to own, directly or indirectly, any equity interests of the Company. The Company will pay Majestic Dragon (i) 3.0% of the Hertford Agreement transaction, paid in common shares, which amount shall be paid concurrently with any payment made to Hertford for the placement of the assets to the Company from Hertford pursuant to the terms of the Hertford Agreement, and (ii) 100 Bitcoin per year for a period of two years, payable from the first coin mined in the corresponding year. Letters of credit During the ordinary course of business, the Company provides standby letters of credit to third parties as required for certain transactions initiated by the Company. As of December 31, 2021, the Company’s had no outstanding standby letters of credit. Warranty and Extended Warranty The Company had $56,000 and $154,000 in deferred costs included in other current and non-current assets related to deferred service revenue at December 31, 2021 and 2020, respectively. Changes in the liability for deferred revenue associated with extended warranties and service contracts were as follows (in thousands): Deferred Liability at January 1, 2020 $ 1,109 Revenue recognized during the period (817) Change in liability for warranties issued during the period 447 Liability at December 31, 2020 739 Liabilities sold (134) Revenue recognized during the period (760) Change in liability for warranties issued during the period 369 Liability at December 31, 2021 $ 214 Current liability $ 155 Non-current liability 59 Liability at December 31, 2021 $ 214 Litigation The Company is, from time to time, subject to claims and suits arising in the ordinary course of business. In the opinion of management, the ultimate resolution of such pending proceedings will not have a material effect on the Company’s results of operations, financial position or cash flows. In April 2015, the Company filed a proof of claim in connection with bankruptcy proceedings of V3 Systems, Inc. (“V3”) based on breaches by V3 of the Asset Purchase Agreement entered into between V3 and the Company dated February 11, 2014 (the “APA”). On October 6, 2015, UD Dissolution Liquidating Trust (“UD Trust”), post-confirmation liquidating trust established by V3’s plan of liquidation, filed a complaint against the Company and certain of its current and former directors in the U.S. Bankruptcy Court for the District of Utah Central Division objecting to our proof of claim and asserting claims for affirmative relief against the Company and its directors. This complaint alleges, among other things, that Sphere 3D breached the APA and engaged in certain other actions and/or omissions that caused V3 to be unable to timely sell the Sphere 3D common shares received by V3 pursuant to the APA. The UD Trust seeks, among other things, monetary damages for the loss of the potential earn-out consideration, the value of the common shares held back by us pursuant to the APA and costs and fees. In March 2018, UD Trust filed a complaint in U.S. District Court for the Northern District of California (“California Complaint”) asserting that two transactions involving the Company constitute fraudulent transfers under federal and state law. First, UD Trust alleges that the consolidation of the Company’s and its subsidiaries’ indebtedness to the Cyrus Group into a debenture between FBC Holdings and the Company in December 2014 constitutes a fraudulent transfer. Second, UD Trust alleges that the Share Purchase Agreement constitutes a fraudulent transfer, and seeks to require that the proceeds of the transaction be placed in escrow until the V3 litigation is resolved. The California Complaint also asserts a claim against the Company’s former CEO for breach of fiduciary duty, and a claim against the Cyrus Group for aiding and abetting breach of fiduciary duty. On July 25, 2018, the Company filed a motion seeking to dismiss all of the claims asserted against the Company and its former CEO. On the same day, the Cyrus Group filed a motion seeking to dismiss all claims asserted against the Cyrus Group. The UD Trust voluntarily dismissed this case without prejudice on February 5, 2020. In October 2019, UD Trust filed an amended complaint in the Delaware Bankruptcy Court. The amended complaint includes all of the claims and parties in the original complaint first filed in October 2015 in the Utah Bankruptcy Court as well as the claims and additional parties in the California Complaint. In February 2020, the Company filed a renewed motion seeking to dismiss the majority of the claims asserted by the UD Trust in the amended complaint. On that same day, the Company also filed a counterclaim against the UD Trust in which the Company alleged that V3 breached numerous provisions of the APA. The Company’s current and former officers and directors that were named as defendants in the amended complaint as well as the Cyrus Group all filed motions seeking to dismiss all claims that the UD Trust alleged against them. In March 2021, the Delaware Bankruptcy Court issued a Memorandum Opinion in which it for the most part denied the defendants’ motions. In December 2021, the parties participated in a mediation. At the mediation, the parties reached an agreement in principle to settle all claims between and among them. The parties entered a definitive Settlement Agreement and Mutual Release effective December 20, 2021. Under this agreement, the Company agreed to pay UD Trust $2.85 million in exchange for a release of all claims. The Settlement Agreement and Mutual Release was approved by the Utah Bankruptcy Court by order dated February 14, 2022. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segmented Information The Company reports segment information as a single reportable business segment based upon the manner in which related information is organized, reviewed, and managed. The Company operates in one segment providing data storage and desktop virtualization solutions for small and medium businesses and distributed enterprises. The Company conducts business globally, and its sales and support activities are managed on a geographic basis. Our management reviews financial information presented on a consolidated basis, accompanied by disaggregated information it receives from its internal management system about revenues by geographic region, based on the location from which the customer relationship is managed, for purposes of allocating resources and evaluating financial performance. Information about Products and Services The following table summarizes net revenue (in thousands): Year Ended December 31, 2021 2020 2019 Disk systems $ 908 $ 2,347 $ 3,086 Service 2,812 2,501 2,493 Total $ 3,720 $ 4,848 $ 5,579 Information about Geographic Areas The Company markets its products domestically and internationally. Revenue is attributed to the location to which the product was shipped. The Company divides its worldwide sales into the following geographical regions: Americas; APAC, consisting of Asia Pacific countries; and EMEA consisting of Europe, the Middle East and Africa. The following table summarizes net revenue by geographic area (in thousands): Year Ended December 31, 2021 2020 2019 Americas $ 3,720 $ 4,844 $ 5,023 EMEA — 4 200 APAC — — 356 Total $ 3,720 $ 4,848 $ 5,579 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Gryphon Escrow Shares In March 2022, in connection with the Merger Agreement, the Company issued into escrow 850,000 common shares with a fair value of $1.2 million, which will be released to Gryphon if the merger transaction is not consummated. SPAC Sponsor Loan to MEOA In February and March 2022, the Company’s subsidiary, SPAC Sponsor, in connection with the MEOA Commitment Agreement, entered into promissory notes with MEOA for a loan in the aggregate amount of $337,000. Such loan is payable upon consummation of MEOA’s initial business combination, without interest, or, at the SPAC Sponsor’s discretion, would be convertible into warrants of MEOA at a price of $1.00 per warrant. If MEOA does not complete a business combination such loan would be forgiven. Financial Advisory Services In December 2021, the Company entered into a consulting agreement with PGP Capital Advisors. (“PGP”) which was amended on February 7, 2022, to provide financial advisory services (as amended, the “PGP Consulting Agreement”). As compensation for PGP’s services to be provided pursuant to the PGP Consulting Agreement, on February 7, 2022, the Company issued to PGP (i) 100,000 common shares with a fair value of $0.2 million, (ii) 100,000 warrants to purchase up to 100,000 common shares at an exercise price of $4.00 per share, (iii) 100,000 warrants to purchase up to 100,000 common shares at an exercise price of $5.00 per share, and (iv) 100,000 warrants to purchase up to 100,000 common shares at an exercise price of $6.00 per share. The warrants are immediately exercisable and expire five years from the issuance date. Waxahachie Lease In January 2022, the Company entered into a lease agreement for administrative offices and research facilities located in Waxahachie, Texas (the “Waxahachie Lease”) for approximately 3,600 square feet. The Waxahachie Lease occupancy will begin upon completion of certain tenant improvements, which are included in the Waxahachie Lease for up to $146,880, and has a term of five years. Occupancy is expected by June 2022. The Company will also pay a pro rata share of operating costs, insurance costs, utilities and real property taxes. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of ConsolidationThe consolidated financial statements of the Company have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”), applied on a basis consistent for all periods. These consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany balances and transactions have been appropriately eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of EstimatesThe preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of provisions for impairment assessments of definite-live intangible assets, other indefinite-lived intangible assets; goodwill, deferred revenue; allowance for doubtful receivables; inventory valuation; warranty provisions; equity treatment of preferred shares; and litigation claims. Actual results could differ from these estimates. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency TranslationThe financial statements of foreign subsidiaries, for which the functional currency is the local currency, are translated into U.S. dollars using the exchange rate at the consolidated balance sheet date for assets and liabilities and a weighted-average exchange rate during the year for revenue, expenses, gains and losses. Translation adjustments are recorded as other comprehensive income (loss) within shareholders’ equity. Gains or losses from foreign currency transactions are recognized in the consolidated statements of operations. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents Highly liquid investments with insignificant interest rate risk and original maturities of three months or less, when purchased, are classified as cash equivalents. Cash equivalents are composed of money market funds. The carrying amounts approximate fair value due to the short maturities of these instruments. |
Accounts Receivable [Policy Text Block] | Accounts ReceivableAccounts receivable is recorded at the invoiced amount and is non-interest bearing. We estimate our allowance for doubtful accounts based on an assessment of the collectability of specific accounts and the overall condition of the accounts receivable portfolio. When evaluating the adequacy of the allowance for doubtful accounts, we analyze specific trade and other receivables, historical bad debts, customer credits, customer concentrations, customer credit-worthiness, current economic trends and changes in customers’ payment terms and/or patterns. We review the allowance for doubtful accounts on a quarterly basis and record adjustments as considered necessary. Customer accounts are written-off against the allowance for doubtful accounts when an account is considered uncollectable. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost and net realizable value using the first-in-first-out method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We assess the value of inventories periodically based upon numerous factors including, among others, expected product or material demand, current market conditions, technological obsolescence, current cost, and net realizable value. If necessary, we write down our inventory for obsolete or unmarketable inventory by an amount equal to the difference between the cost of the inventory and the net realizable value. |
Equity Securities without Readily Determinable Fair Value [Policy Text Block] | InvestmentsThe Company holds investments in equity securities of public and nonpublic companies for business and strategic purposes. The nonpublic equity securities do not have a readily determinable fair value and are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company reviews its investments on a regular basis to determine if the investments are impaired. For purposes of this assessment, the Company considers the investee’s cash position, earnings and revenue outlook, liquidity and management ownership, among other factors, in its review. If management’s assessment indicates that an impairment exists, the Company estimates the fair value of the equity investment and recognizes in current earnings an impairment loss that is equal to the difference between the fair value of the equity investment and its carrying amount. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets Goodwill represents the excess of consideration paid over the value assigned to the net tangible and identifiable intangible assets acquired. For intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish their recorded values. For intangible assets acquired in a non-monetary exchange, the estimated fair values of the assets transferred (or the estimated fair values of the assets received, if more clearly evident) are used to establish their recorded values. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Goodwill and Intangible AssetsGoodwill and intangible assets are tested for impairment on an annual basis at December 31, or more frequently if there are indicators of impairment. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. Intangible assets are quantitatively assessed for impairment, if necessary, by comparing their estimated fair values to their carrying values. If the carrying value exceeds the fair value, the difference is recorded as an impairment. |
Revenue [Policy Text Block] | Revenue Recognition The Company accounts for revenue pursuant to ASU 2014-09, Revenue from Contracts with Customers and all the related amendments (“Topic 606”). Under Topic 606, an entity is required to recognize revenue to depict the transfer of promised 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, and contract consideration will be recognized on a “sell-in basis” or when control of the purchased goods or services transfer to the distributor. The Company generates revenue primarily from: (i) solutions for standalone storage and integrated hyper-converged storage; (ii) professional services; and (iii) warranty and customer services. The Company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To determine revenue recognition for contracts with customers the Company performs the following five steps: (i) identify the promised goods or services in the contract; (ii) identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) determine the transaction price, including the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligations. Approximately 70% of the Company’s revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied at a point in time. These contracts are generally comprised of a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when change of control has been transferred to the customer, generally at the time of shipment of products. The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically less than 45 days. Revenue on direct product sales, excluding sales to distributors, are not entitled to any specific right of return or price protection, except for any defective product that may be returned under our standard product warranty. Product sales to distribution customers that are subject to certain rights of return, stock rotation privileges and price protections, contain a component of “variable consideration.” Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated fixed price and is net of estimates for variable considerations. For performance obligations related to warranty and customer services, such as extended product warranties, the Company transfers control and recognizes revenue on a time-elapsed basis. The performance obligations are satisfied as services are rendered typically on a stand-ready basis over the contract term, which is generally 12 months. In limited circumstances where a customer is unable to accept shipment and requests products be delivered to, and stored on, the Company’s premises, also known as a “bill-and-hold” arrangement, revenue is recognized when: (i) the customer has requested delayed delivery and storage of the products, (ii) the goods are segregated from the inventory, (iii) the product is complete, ready for shipment and physical transfer to the customer, and (iv) the Company does not have the ability to use the product or direct it to another customer. The Company also enters into revenue arrangements that may consist of multiple performance obligations of its product and service offerings such as for sales of hardware devices and extended warranty services. The Company allocates contract fees to the performance obligations on a relative stand-alone selling price basis. The Company determines the stand-alone selling price based on its normal pricing and discounting practices for the specific product and/or service when sold separately. When the Company is unable to establish the individual stand-alone price for all elements in an arrangement by reference to sold separately instances, the Company may estimate the stand-alone selling price of each performance obligation using a cost plus a margin approach, by reference to third party evidence of selling price, based on the Company’s actual historical selling prices of similar items, or based on a combination of the aforementioned methodologies; whichever management believes provides the most reliable estimate of stand-alone selling price. |
Standard Product Warranty, Policy [Policy Text Block] | Warranty and Extended Warranty The Company records a provision for standard warranties provided with all products. If future actual costs to repair were to differ significantly from estimates, the impact of these unforeseen costs or cost reductions would be recorded in subsequent periods. |
Extended Product Warranty, Policy [Policy Text Block] | Separately priced extended on-site warranties and service contracts are offered for sale to customers on all product lines. The Company contracts with third party service providers to provide service relating to on-site warranties and service contracts. Extended warranty and service contract revenue and amounts paid in advance to outside service organizations are deferred and recognized as service revenue and cost of service, respectively, over the period of the service agreement. The Company will typically apply the practical expedient to agreements wherein the period between transfer of any good or service in the contract and when the customer pays for that good or service is one year or less. Advanced payments for long-term maintenance and warranty contracts do not give rise to a significant financing component. Rather, such payments are required by the Company primarily for reasons other than the provision of finance to the entity. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Amounts billed to customers for shipping and handling are included in revenue, and costs incurred related to shipping and handling are included in cost of product revenue. |
Advertising Cost [Policy Text Block] | Advertising CostsAdvertising costs are expensed as incurred. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development expenses include payroll, employee benefits, share-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include third-party development and programming costs. Research and development expenses are charged to operating expenses as incurred when these expenditures relate to the Company’s research and development efforts and have no alternative future uses. |
Segment Reporting, Policy [Policy Text Block] | Segment Information The Company reports segment data based on the management approach. The management approach designates the internal reporting that is used by management for making operating and investment decisions and evaluating performance as the source of our reportable segments. We use one measurement of profitability and do not disaggregate our business for internal reporting. We operate in one segment providing data management, and desktop and application virtualization solutions for small and medium businesses and distributed enterprises. We disclose information about products and services, geographic areas, and major customers. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company provides for income taxes utilizing the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of our assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when a judgment is made that it is considered more likely than not that a tax benefit will not be realized. A decision to record a valuation allowance results in an increase in income tax expense or a decrease in income tax benefit. If the valuation allowance is released in a future period, income tax expense will be reduced accordingly. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Loss Comprehensive loss and its components encompass all changes in equity other than those arising from transactions with shareholders, including net loss and foreign currency translation adjustments, and is disclosed in a separate consolidated statement of comprehensive loss. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risks Financial instruments that potentially subject us to concentrations of credit risk consist primarily of notes receivable and trade accounts receivable, which are generally not collateralized. To reduce credit risk, we perform ongoing credit evaluations of its customers and maintain allowances for potential credit losses for estimated bad debt losses. |
Share-based Payment Arrangement [Policy Text Block] | Share-based Compensation The Company accounts for share-based awards, and similar equity instruments, granted to employees, non-employee directors, and consultants under the fair value method. Share-based compensation award types include stock options and restricted stock. The Company uses the Black-Scholes option pricing model to estimate the fair value of option awards on the measurement date, which generally is the date of grant. The expense is recognized over the requisite service period (usually the vesting period) for the estimated number of instruments for which service is expected to be rendered. The fair value of restricted stock units (“RSUs”) is estimated based on the market value of the Company’s common shares on the date of grant. The fair value of options granted to non-employees is estimated at the measurement date, which generally is the date of grant, using the Black-Scholes option pricing model. Share-based compensation expense for options with graded vesting is recognized pursuant to an accelerated method. Share-based compensation expense for RSUs is recognized over the vesting period using the straight-line method. Share-based compensation expense for an award with performance conditions is recognized when the achievement of such performance conditions are determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Forfeitures are recognized in share-based compensation expense as they occur. The Company has not recognized, and does not expect to recognize in the near future, any tax benefit related to share-based compensation cost as a result of the full valuation allowance of our net deferred tax assets and its net operating loss carryforward. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date. If not discussed, the Company believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06 , Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) . The new guidance eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance requires that the if-converted method is used in computing diluted EPS for all convertible instruments. The update is effective for annual reporting periods, including interim periods, beginning after December 15, 2021. The adoption of the new standard is not expected to have a material effect on our financial position, results of operations or cash flows. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following table provides information by level for liabilities that are measured at fair value using significant unobservable inputs (Level 3) (in thousands): Warrant liability as of January 1, 2020 $ — Additions to warrant liability 186 Reclassification to equity (97) Warrant liability as of December 31, 2020 89 Additions to warrant liability — Reclassification to equity (84) Warrant liability as of December 31, 2021 $ 5 |
Certain Balance Sheet Items (Ta
Certain Balance Sheet Items (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The following table summarizes inventories (in thousands): December 31, 2021 2020 Raw materials $ — $ 119 Work in process — 167 Finished goods — 272 $ — $ 558 |
Schedule of Other Current Assets [Table Text Block] | The following table summarizes other current assets (in thousands): December 31, 2021 2020 Prepaid digital mining hosting services $ 20,043 $ — Prepaid services 1,477 421 Prepaid insurance 406 158 Transition service agreement, related party — 115 Deferred cost - service contracts 49 99 Other 52 14 $ 22,027 $ 807 |
Schedule of Other Assets, Noncurrent [Table Text Block] | The following table summarizes other assets (in thousands): December 31, 2021 2020 Prepaid deposit for equipment $ 102,238 $ — Prepaid insurance 251 385 Deferred cost – service contracts 7 56 Other 52 2 $ 102,548 $ 443 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table summarizes intangible assets, net (in thousands): December 31, 2021 2020 Developed technology $ 10,344 $ 13,117 Supplier agreements 68,147 1,560 Channel partner relationships 730 730 Capitalized development costs (1) 103 3,116 Customer relationships 380 380 79,704 18,903 Accumulated amortization: Developed technology (10,344) (13,117) Supplier agreements (5,289) (43) Channel partner relationships (598) (477) Capitalized development costs (1) (103) (2,518) Customer relationships (353) (340) (16,687) (16,495) Total finite-lived assets, net 63,017 2,408 Indefinite-lived intangible assets - trade names — 200 Total intangible assets, net $ 63,017 $ 2,608 ________________ (1) Includes the impact of foreign currency exchange rate fluctuations. |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Warrants [Table Text Block] | At December 31, 2021, the Company had the following outstanding warrants to purchase common shares: Date issued Contractual life (years) Exercise price per share Number outstanding Expiration August 2017 5 $42.00 37,500 August 11, 2022 August 2017 5 $42.00 11,876 August 16, 2022 August 2017 5 $42.00 25,625 August 22, 2022 April 2018 5 $5.60 111,563 April 17, 2023 March 2020 3 $0.60 31,000 March 23, 2023 July 2021 3 $4.00 2,000,000 December 22, 2024 August 2021 3 $6.50 2,595,488 August 25, 2024 August 2021 3 $7.50 2,595,488 August 25, 2024 September 2021 5 $9.50 11,299,999 September 8, 2026 October 2021 3 $6.00 850,000 October 1, 2024 19,558,539 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Option activity is summarized below: Shares Weighted- Weighted- Aggregate Intrinsic Value Options outstanding — January 1, 2019 20,050 $ 199.06 Granted — $ — Exercised — $ — Forfeited (17,450) $ 160.93 Options outstanding — December 31, 2019 2,600 $ 781.19 Granted 130,000 $ 2.52 Exercised (30,000) $ 2.52 Forfeited (1,425) $ 995.07 Options outstanding — December 31, 2020 101,175 $ 8.94 Granted — $ — Exercised (100,000) $ 2.52 Forfeited (500) $ 542.00 Options outstanding — December 31, 2021 675 $ 565.76 1.7 $ — Vested and expected to vest — December 31, 2021 675 $ 565.76 1.7 $ — Exercisable — December 31, 2021 675 $ 565.76 1.7 $ — |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | The following table summarizes information about RSU activity: Number of Weighted Average Outstanding — January 1, 2019 53,004 $ 31.21 Granted 100,000 $ 2.51 Vested and released (131,541) $ 9.68 Forfeited (665) $ 64.95 Outstanding — December 31, 2019 20,798 $ 4.99 Granted — $ — Vested and released (20,420) $ 3.82 Forfeited (378) $ 68.02 Outstanding — December 31, 2020 — $ — Granted 206,053 $ 2.80 Vested and released (133,553) $ 2.55 Forfeited (12,500) $ 2.29 Outstanding — December 31, 2021 60,000 $ 3.46 |
Schedule of Share-based Compensation, Restricted Stock Awards [Table Text Block] | The following table summarizes information about RSA activity: Number of Weighted Average Outstanding — January 1, 2019 — $ — Granted 194,000 $ 1.20 Vested (194,000) $ 1.20 Outstanding — December 31, 2019 — $ — Granted 400,841 $ 1.92 Vested (400,841) $ 1.92 Outstanding — December 31, 2020 — $ — Granted 301,880 $ 4.74 Vested (301,880) $ 4.74 Outstanding — December 31, 2021 — $ — |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | The Company recorded the following compensation expense related to its share-based compensation awards (in thousands): Year Ended December 31, 2021 2020 2019 Sales and marketing $ 131 $ 2 $ 279 Research and development — 3 61 General and administrative 235 — 297 Total share-based compensation expense $ 366 $ 5 $ 637 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Anti-dilutive common share equivalents excluded from the computation of diluted net loss per share were as follows: December 31, 2021 2020 2019 Common share purchase warrants 19,558,539 2,786,534 205,562 Preferred shares 96,000 9,355,778 8,443,778 Options and RSUs outstanding 60,675 101,175 23,398 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The components of loss before income taxes were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ (21,577) $ (4,546) $ (1,815) Foreign 4,273 (1,229) (2,466) Total $ (17,304) $ (5,775) $ (4,281) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of income taxes computed by applying the federal statutory income tax rate of 26.5% to loss before income taxes to the total income tax benefit reported in the accompanying consolidated statements of operations is as follows (in thousands): Year Ended December 31, 2021 2020 2019 Income tax at statutory rate $ (4,586) $ (1,531) $ (1,134) Foreign rate differential (139) (37) (77) Change in valuation allowance 4,358 1,588 15,104 Share-based compensation expense — — 85 Forgiveness of debt (236) — — Impairment of acquired intangible assets 110 — — Change to provision and other true-ups 144 119 (13,371) Other differences 334 (135) (607) (Benefit from) provision for income taxes $ (15) $ 4 $ — |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | A valuation allowance has been recorded, as realization of such assets is uncertain. Deferred income taxes are comprised as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Net operating loss and capital loss carryforwards $ 31,210 $ 26,539 Intangible assets 2,716 2,381 Share-based compensation 26 1 Other 261 992 Deferred tax assets, gross 34,213 29,913 Valuation allowance for deferred tax assets (34,213) (29,854) Deferred tax assets, net of valuation allowance — 59 Deferred tax liabilities: Indefinite-lived intangible assets — (74) Deferred tax liabilities — (74) Net deferred tax liabilities $ — $ (15) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | Changes in the liability for deferred revenue associated with extended warranties and service contracts were as follows (in thousands): Deferred Liability at January 1, 2020 $ 1,109 Revenue recognized during the period (817) Change in liability for warranties issued during the period 447 Liability at December 31, 2020 739 Liabilities sold (134) Revenue recognized during the period (760) Change in liability for warranties issued during the period 369 Liability at December 31, 2021 $ 214 Current liability $ 155 Non-current liability 59 Liability at December 31, 2021 $ 214 |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | The following table summarizes net revenue (in thousands): Year Ended December 31, 2021 2020 2019 Disk systems $ 908 $ 2,347 $ 3,086 Service 2,812 2,501 2,493 Total $ 3,720 $ 4,848 $ 5,579 |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table summarizes net revenue by geographic area (in thousands): Year Ended December 31, 2021 2020 2019 Americas $ 3,720 $ 4,844 $ 5,023 EMEA — 4 200 APAC — — 356 Total $ 3,720 $ 4,848 $ 5,579 |
Organization and Business (Deta
Organization and Business (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Substantial Doubt about Going Concern, Management's Evaluation | Based upon the Company's current expectations and projections for the next year, the Company believes that it may not have sufficient liquidity necessary to sustain operations beyond November 30, 2022. These factors, among others, raise substantial doubt that the Company will be able to continue as a going concern. |
Gryphon shares to be issued for consideration of merger transaction | As consideration for the merger transaction, the Company expects to issue 122,005,654 common shares to the shareholders of Gryphon, subject to adjustment. |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |||
Foreign Currency Transaction Loss | $ 41,000 | $ 23,000 | $ 22,000 |
Accounts Receivable, Allowance for Credit Loss, Current | 0 | 100,000 | |
Advertising Expense | $ 104,000 | $ 140,000 | $ 16,000 |
Number of Operating Segments | 1 |
Intangibles Significant Account
Intangibles Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Supplier | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 months |
Supplier | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Channel partner relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 6 years |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Significant Accounting Polici_4
Significant Accounting Policies Concentration of Credit Risks (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Customer | four | four | |
Accounts Receivable [Member] | Customer Concentration Risk | Four Customers | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 82.00% | 46.80% | |
Revenue Benchmark [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Customer | two | two | two |
Revenue Benchmark [Member] | Customer Concentration Risk | Two Customers | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 25.50% | 29.30% | 24.50% |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Investment Owned, Balance, Shares | 1,500,000 | ||
Investment Owned, Restricted, Cost | $ 6,000 | ||
Gain on disposal of product line | $ 4,992 | $ 0 | $ 0 |
SnapServer | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Investment Owned, Balance, Shares | 8,000 | ||
Investment Owned, Restricted, Cost | $ 6,400 | ||
Gain on disposal of product line | $ 5,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Warrant liability, beginning of period | $ 89 | $ 0 |
Additions to warrant liability | 0 | 186 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | (84) | (97) |
Warrant liability, end of period | $ 5 | $ 89 |
Assets and Liabilities Fair Val
Assets and Liabilities Fair Value Measurements (Details) - USD ($) | Dec. 07, 2021 | Oct. 01, 2021 | Aug. 25, 2021 | Aug. 12, 2021 | May 24, 2021 | Aug. 03, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Finite-lived Intangible Assets Acquired | $ 1,560,000 | |||||||
Stock Issued During Period, Value, Issued for Services | $ 1,200,000 | $ 12,800,000 | $ 456,000 | $ 795,000 | $ 2,413,000 | $ 764,000 | ||
Hertford | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Finite-lived Intangible Assets Acquired | $ 42,400,000 | $ 11,400,000 |
Gryphon Notes Receivables (Deta
Gryphon Notes Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 29, 2021 | Sep. 30, 2020 | Aug. 04, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Promissory note receivable | $ 3.5 | $ 3.1 | ||
Stated interest rate | 10.00% | |||
Gryphon | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Promissory note receivable | $ 10.3 | $ 12.5 | ||
Note receivable term | 3 years | |||
Stated interest rate | 9.50% |
Rainmaker Notes Receivables (De
Rainmaker Notes Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Sep. 30, 2020 | Aug. 04, 2020 | |
Receivables [Abstract] | |||
Promissory note receivable | $ 3.5 | $ 3.1 | |
Stated interest rate | 10.00% | ||
Note receivable due date | Sep. 14, 2023 |
Gryphon sub event (Details)
Gryphon sub event (Details) - USD ($) $ in Thousands | Jan. 03, 2022 | Dec. 31, 2021 | Dec. 29, 2021 | Sep. 30, 2020 |
Subsequent Event [Line Items] | ||||
Promissory note receivable | $ 3,500 | $ 3,100 | ||
Gryphon | ||||
Subsequent Event [Line Items] | ||||
Promissory note receivable | $ 10,300 | $ 12,500 | ||
Gryphon | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Note receivable outflow | $ 2,500 | |||
Promissory note receivable | $ 12,500 |
Filecoiner (Details)
Filecoiner (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Other Investment Not Readily Marketable [Line Items] | |
Investment Owned, Balance, Shares | shares | 1,500,000 |
investment, share price | $ 4 |
Investment Owned, Restricted, Cost | $ | $ 6 |
Fair Value Measurements, Valuation Processes, Description | applied a 25% discount for lack of marketability of common shares for the six-month restriction based on a put option pricing model using volatility of 140% and a risk-free rate of 0.05% |
Filecoiner | |
Other Investment Not Readily Marketable [Line Items] | |
Investment Owned, Balance, Shares | shares | 8,000 |
Investment Owned, Restricted, Cost | $ | $ 6.4 |
Investment liquidation preference | $ 1,000 |
Investment redemption terms | Filecoiner will use 1.5% of its annual gross revenue to redeem any outstanding shares of Filecoiner Series B Preferred Stock. This amount will be paid to the holder of the Filecoiner Series B Preferred Stock within 15 days of the completion of Filecoiner's annual 12/31 audited financial statements. During any 12-calendar month period, 25% of the shares of Series B Preferred Stock shall be convertible at the option of the holder thereof at any time into a number of shares of common stock determined by dividing (i) the original issue price by (ii) the conversion price then in effect. |
investment conversion price | $ 8 |
Fair Value Measurements, Valuation Processes, Description | Monte Carlo simulation with the following inputs: discount rate of 40%, risk-free rate of 1.05%, cost of debt of 7.48%, together with a capital option pricing model using the following inputs: volatility of 146% and risk-free rate of 1.05% |
MEOA (Details)
MEOA (Details) | Dec. 31, 2021USD ($)$ / sharesshares |
Other Investment Not Readily Marketable [Line Items] | |
Investment Owned, Balance, Shares | shares | 1,500,000 |
Investment Owned, Restricted, Cost | $ 6,000,000 |
MEOA | |
Other Investment Not Readily Marketable [Line Items] | |
SPAC Sponsor contribution | $ 25,000 |
Investment Owned, Balance, Shares | shares | 2,875,000 |
SPAC warrants | shares | 5,395,000 |
Investment Owned, Restricted, Cost | $ 5,400,000 |
SPAC Warrant price | $ / shares | $ 1 |
SPAC Sponsor liability | $ 1,000,000 |
SVTP (Details)
SVTP (Details) $ in Millions | Dec. 31, 2021USD ($)shares |
Investments, All Other Investments [Abstract] | |
SVTP Preferred Shares | shares | 1,879,699 |
Investments in and Advances to Affiliates, at Fair Value | $ | $ 2.1 |
Certain Balance Sheet Items Inv
Certain Balance Sheet Items Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventory, Raw Materials, Net of Reserves | $ 0 | $ 119 |
Inventory, Work in Process, Net of Reserves | 0 | 167 |
Inventory, Finished Goods, Net of Reserves | 0 | 272 |
Inventories | $ 0 | $ 558 |
Certain Balance Sheet Items Oth
Certain Balance Sheet Items Other current assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 01, 2020 | Mar. 23, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Prepaid digital mining hosting services | $ 20,043,000 | $ 0 | ||
Prepaid Services | 1,477,000 | 421,000 | $ 150,000 | $ 150,000 |
Prepaid Insurance | 406,000 | 158,000 | ||
Transition service agreement, related party | 0 | 115,000 | ||
Deferred Cost - service contracts | 49,000 | 99,000 | ||
Other | 52,000 | 14,000 | ||
Other Assets, Current | $ 22,027,000 | $ 807,000 |
Certain Balance Sheet Items O_2
Certain Balance Sheet Items Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid deposit for equipment | $ 102,238 | $ 0 |
Prepaid Insurance | 251 | 385 |
Deferred Cost - service contracts | 7 | 56 |
Other | 52 | 2 |
Other Assets, Noncurrent | $ 102,548 | $ 443 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 79,704 | $ 18,903 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (16,687) | (16,495) | |
Finite-Lived Intangible Assets, Net | 63,017 | 2,408 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 0 | 200 | |
Intangible Assets, Net | 63,017 | 2,608 | |
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 10,344 | 13,117 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (10,344) | (13,117) | |
Supplier | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 68,147 | 1,560 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (5,289) | (43) | |
Channel partner relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 730 | 730 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (598) | (477) | |
Capitalized Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | [1] | 103 | 3,116 |
Finite-Lived Intangible Assets, Accumulated Amortization | [1] | (103) | (2,518) |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 380 | 380 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ (353) | $ (340) | |
[1] | Includes the impact of foreign currency exchange rate fluctuations. |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill Amort (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 5,700,000 | $ 1,000,000 | $ 1,000,000 |
Amortization Expense 2022 | 27,100,000 | ||
Amortization Expense 2023 | 8,600,000 | ||
Amortization Expense 2024 | 8,600,000 | ||
Amortization Expense 2025 | 8,600,000 | ||
Amortization Expense 2026 | $ 8,600,000 |
Hertford (Details)
Hertford (Details) - USD ($) | Oct. 01, 2021 | Sep. 08, 2021 | Aug. 25, 2021 | Aug. 12, 2021 | Jul. 31, 2021 | May 27, 2021 | Aug. 03, 2020 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Stock Issued During Period, Shares, Purchase of Assets | 480,000 | |||||||
Finite-lived Intangible Assets Acquired | $ 1,560,000 | |||||||
Fair Value Measurements, Valuation Processes, Description | applied a 25% discount for lack of marketability of common shares for the six-month restriction based on a put option pricing model using volatility of 140% and a risk-free rate of 0.05% | |||||||
Stock Issued During Period, Shares, New Issues | 22,600,000 | 2,488,530 | 5,600,000 | |||||
Hertford | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible Assets, Explanation of Significant Additions | On July 31, 2021, the Company entered into an agreement (the “Hertford Agreement”) with Hertford Advisors Ltd. (“Hertford”), a privately held company that provides turnkey mining solutions, to provide an exclusive right to assume all of Hertford’s rights to a number of cryptocurrency mining hardware agreements (the “Equipment Agreements”) and the right to complete negotiations to secure a long-term contract for 200,000 square foot crypto mining facility (the “Mining Facility Agreement”) | |||||||
Purchase Commitment, Description | The Company has assumed and executed the first Equipment Agreement directly with the manufacturer, for the purchase of up to 60,000 new cryptocurrency mining machines, with deliveries to commence in January 2022 and continue over the course of the next 12 months. | |||||||
Stock Issued During Period, Shares, Purchase of Assets | 96,000 | 4,500,000 | ||||||
Finite-lived Intangible Assets Acquired | $ 42,400,000 | $ 11,400,000 | ||||||
Fair Value Measurements, Valuation Processes, Description | applied a 25% discount for lack of marketability of common shares for the six-month restriction based on a put option pricing model using volatility of 140% and a risk-free rate of 0.05% | |||||||
Lock up period for sale of shares | 2 years | |||||||
Initial lock up period release | 6 months | |||||||
Stock Issued During Period, Shares, New Issues | 135,000 | |||||||
Finders Fee | $ 456,000 |
Invest 101 Supplier Agreement (
Invest 101 Supplier Agreement (Details) - USD ($) | Aug. 03, 2020 | Sep. 08, 2021 | Aug. 25, 2021 | May 27, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Stock Issued During Period, Shares, Purchase of Assets | 480,000 | |||
Shares Issued, Price Per Share | $ 3.25 | $ 8.50 | $ 4.25 | $ 1.25 |
Finite-lived Intangible Assets Acquired | $ 1,560,000 | |||
Asset acquisition shares hold back | 96,000 |
Goodwill Impairment (Details)
Goodwill Impairment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 0 | $ 1,385,000 |
Goodwill, Transfers | 863,000 | |
Goodwill, Impairment Loss | $ 522,000 |
Intangible Asset Impairments (D
Intangible Asset Impairments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Goodwill and Acquired Intangible Assets | $ 820,000 | $ 286,000 | $ 70,000 |
Trade Names [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived Trade Names | 80,000 | $ 70,000 | |
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Goodwill and Acquired Intangible Assets | $ 298,000 | $ 206,000 |
PPP 2021 and 2020 Loan (Details
PPP 2021 and 2020 Loan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 03, 2021 | Apr. 09, 2020 | |
Debt Disclosure [Abstract] | |||
Covid-19 PPP Funds | $ 0 | $ 447,400 | $ 667,400 |
Debt Instrument, Decrease, Forgiveness | $ 1,100,000 |
Oasis Debt (Details)
Oasis Debt (Details) - USD ($) | Mar. 10, 2021 | Jul. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 04, 2020 | Jun. 19, 2020 | Jun. 16, 2020 | Jun. 01, 2020 |
Related Party Transaction [Line Items] | ||||||||
Debt, Related Party | $ 0 | $ 304,000 | ||||||
Shares, Issued | 225,000 | 150,000 | 200,000 | 100,000 | ||||
Debt Instrument, Fee Amount | 118,000 | |||||||
Related party | ||||||||
Related Party Transaction [Line Items] | ||||||||
Proceeds from Issuance of Debt | $ 500,000 | |||||||
Related Party Transaction, Rate | 8.00% | 8.00% | ||||||
Debt Instrument, Term | 12 months | 6 months | ||||||
Debt, Related Party | $ 796,159 | $ 615,000 | $ 0 | |||||
Shares, Issued | 90,000 | 468,225 | ||||||
Share Price | $ 3.37 | |||||||
Debt Issuance Costs, Gross | $ 40,000 | |||||||
Debt Instrument, Fee Amount | $ 241,000 |
Convertible Debt (Details)
Convertible Debt (Details) | Mar. 23, 2020USD ($)shares | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Jun. 01, 2020USD ($) |
Debt Disclosure [Abstract] | |||||
Subscription Agreement Units | 725 | ||||
Convertible Debt | $ 725,000 | ||||
Debt Instrument, Convertible, Terms of Conversion Feature | each Unit consisting of (a) a 6% convertible debenture in the principal amount of $1,000, which is convertible at $0.6495 per share into 1,540 common shares of the Company, and (b) a warrant to purchase 1,540 common shares of the Company exercisable at any time on or before the third year anniversary date at an exercise price of $0.60 per share | ||||
Warrant blocker, ownership not to exceed | 5.00% | ||||
Fund raise fees paid in common shares | $ 58,000 | ||||
Commons shares issued for payment of services | shares | 89,320 | ||||
Proceeds from Convertible Debt | $ 575,000 | ||||
Prepaid Expense | $ 150,000 | $ 1,477,000 | $ 421,000 | $ 150,000 | |
Debt Conversion, Converted Instrument, Amount | 799,000 | $ 783,000 | $ 0 | ||
Debt Conversion, Converted Instrument, Preferred Shares Issued | shares | 1,205,820 | ||||
Related Party Transaction [Line Items] | |||||
Debt Conversion, Converted Instrument, Amount | $ 799,000 | $ 783,000 | $ 0 | ||
Related Party [Member] | |||||
Debt Disclosure [Abstract] | |||||
Debt Conversion, Converted Instrument, Amount | 408,000 | ||||
Related Party Transaction [Line Items] | |||||
Debt Conversion, Converted Instrument, Amount | $ 408,000 | ||||
Convertible debt, shares issued to related parties | shares | 628,320 |
OMM Debt (Details)
OMM Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Aug. 27, 2020 | |
Debt Disclosure [Abstract] | |||
Secured Debt, Current | $ 1,121,000 | $ 0 | $ 1,100,000 |
Short-term Debt, Percentage Bearing Fixed Interest Rate | 1.68% | ||
Extinguishment of Debt, Amount | $ 594,000 | ||
Debt Instrument, Fee Amount | $ 118,000 |
Series H Preferred Shares (Deta
Series H Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 96,000 | 9,355,778 |
Preferred Stock, Value, Issued | $ 42,350 | $ 11,769 |
Prepaid deposit for equipment | $ 102,238 | $ 0 |
Series H Preferred Stock | ||
Class of Stock [Line Items] | ||
Convertible Preferred Stock, Terms of Conversion | The Series H Preferred Shares are convertible provided (and only if and to the extent) that prior shareholder approval of the issuance of all Sphere 3D common shares issuable upon conversion of the Series H Preferred Shares has been obtained in accordance with the rules of the Nasdaq Stock Market, at any time from time to time, at the option of the holder thereof, into 1,000 Sphere 3D common shares for every Series H Preferred Share. Each holder of the Series H Preferred Shares, may, subject to prior shareholder approval, convert all or any part of the Series H Preferred Shares provided that after such conversion the common shares issuable, together with all the common shares held by the shareholder in the aggregate would not exceed 9.99% of the total number of outstanding common shares of the Company | |
Preferred Stock, Redemption Price Per Share | $ 1,000 | |
Preferred Stock, Shares Issued | 96,000 | |
Preferred Stock, Value, Issued | $ 42,400 | |
Prepaid deposit for equipment | $ 85,000 |
Series G Preferred Shares (Deta
Series G Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2021 | Sep. 08, 2021 | Jul. 12, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||||
Preferred Stock, Value, Issued | $ 42,350 | $ 11,769 | |||
Warrant, Outstanding | 850,000 | 11,299,000 | |||
Warrant Term | 3 years | 5 years | |||
Exercise Price of Warrants | $ 6 | $ 9.50 | |||
Preferred Stock, Shares Outstanding | 96,000 | 9,355,778 | |||
Series G Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Convertible Preferred Stock, Terms of Conversion | Each shareholder of the Series G Preferred Shares, may, at any time, convert all or any part of the Series G Preferred Shares provided that after such conversion the common shares issuable, together with all the common shares held by the shareholder in the aggregate would not exceed 4.99% of the total number of outstanding common shares of the Company. This amount may be increased to 9.99% with 61 days’ notice to the Company | ||||
Preferred Stock, Redemption Price Per Share | $ 1,000 | ||||
Preferred Stock, Conversion Basis | convertible into the Company’s common shares at a conversion price equal to the lower of (i) 80% of the average of the three lowest volume weighted average price of the common stock during the ten trading days immediately preceding, but not including, the conversion date and (ii) $2.75; however, in no event shall the conversion price be lower than $1.00 per share | ||||
Preferred Stock, Dividend Rate, Percentage | 8.00% | ||||
Preferred Stock, Value, Issued | $ 10,000 | ||||
Warrant, Outstanding | 2,000,000 | ||||
Warrant Term | 3 years | ||||
Exercise Price of Warrants | $ 4 | ||||
Preferred Stock, Contract Terms | Until the Company obtains the approval of its shareholders to do so the Series G Preferred Shares can only be converted into a maximum of 4,400,000 common shares | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 3,636,364 | ||||
Preferred shares exchanged | 10,000 | ||||
Preferred Stock, Shares Outstanding | 0 |
Series E Preferred Shares (Deta
Series E Preferred Shares (Details) - USD ($) | 12 Months Ended | ||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 09, 2021 | Sep. 14, 2020 | Aug. 04, 2020 | Jun. 19, 2020 | Jun. 16, 2020 | Jun. 01, 2020 | |
Class of Stock [Line Items] | |||||||||
Preferred Stock, Shares Issued | 96,000 | 9,355,778 | |||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 9,575,000 | $ 2,735,000 | $ 0 | ||||||
Shares, Issued | 225,000 | 150,000 | 200,000 | 100,000 | |||||
Preferred Stock, Shares Outstanding | 96,000 | 9,355,778 | |||||||
Series E Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred Stock, Reason why Security is Not Redeemable | Series E Preferred Shares, may, at any time, convert all or any Series E Preferred Shares provided that the common shares issuable upon such conversion, together with all other common shares of the Company held by the shareholder in the aggregate, would not cause such shareholder’s ownership of the Company’s common shares to exceed 4.99% of the total number of outstanding common shares of the Company. This amount may be increased to 9.99% with 61 days’ notice to the Company. | ||||||||
Convertible Preferred Stock, Terms of Conversion | Each Series E Preferred Share has a stated value of $1,000 and is convertible into the Company’s common shares at a conversion price equal to the lower of (i) 70% of the average of the three lowest volume weighted average price of the common stock during the ten trading days immediately preceding, but not including, the conversion date and (ii) $2.00; however, in no event shall the conversion price be lower than $1.00 per share | ||||||||
Preferred Stock, Dividend Rate, Percentage | 8.00% | ||||||||
Preferred Stock, Shares Issued | 3,000 | ||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 2,700,000 | ||||||||
Payments of Stock Issuance Costs | 240,000 | ||||||||
Shares, Issued | 250,000 | ||||||||
Common Stock, Value, Issued | $ 653,000 | ||||||||
Series E penalty interest rate | 24.00% | ||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,456,918 | ||||||||
Preferred shares exchanged | 3,000 | ||||||||
Preferred Stock, Shares Outstanding | 0 |
Series D Preferred Shares (Deta
Series D Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | May 06, 2020 | Apr. 30, 2020 | Mar. 23, 2020 | Dec. 31, 2021 | Oct. 01, 2021 | Sep. 08, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||||||
Preferred Stock, Shares Issued | 96,000 | 9,355,778 | |||||
Notes receivable | $ 1,859 | $ 0 | |||||
Exercise Price of Warrants | $ 6 | $ 9.50 | |||||
Warrant blocker, ownership not to exceed | 5.00% | ||||||
Preferred Stock, Shares Outstanding | 96,000 | 9,355,778 | |||||
Series D Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Redemption Price Per Share | $ 0.65 | ||||||
Convertible Preferred Stock, Terms of Conversion | Each shareholder of the Series D Preferred Shares, may, at any time, convert all or any part of the Series D Preferred Shares provided that after such conversion the common shares issuable, together with all the common shares held by the shareholder in the aggregate would not exceed 4.99% of the total number of outstanding common shares of the Company. This amount may be increased to 9.99% with 61 days’ notice to the Company. | ||||||
Preferred Stock, Shares Issued | 1,694,000 | ||||||
Notes receivable | $ 1,100 | ||||||
Exercise Price of Warrants | $ 0.92 | ||||||
Warrants and Rights Outstanding, Term | 5 years | ||||||
Warrant blocker, ownership not to exceed | 5.00% | ||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 909,000 | 785,000 | |||||
Preferred shares exchanged | 909,000 | 785,000 | |||||
Preferred Stock, Shares Outstanding | 0 |
Preferred Shares Preferred Shar
Preferred Shares Preferred Shares Series C (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 96,000 | 9,355,778 |
Preferred Stock, Shares Outstanding | 96,000 | 9,355,778 |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Convertible Preferred Stock, Shares Issued upon Conversion | 1,440,000 | |
Preferred Stock, Shares Issued | 1,600,000 | |
Preferred Stock, Shares Outstanding | 0 | |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Convertible Preferred Stock, Terms of Conversion | Overland Storage Inc. (“Overland”), a former related party and the sole shareholder of the Series C Preferred Shares, agreed that it would not exercise its conversion right with respect to its Series C Preferred Shares until the earlier of (i) October 31, 2020 or (ii) such time that we file for bankruptcy or an involuntary petition for bankruptcy is filed against us (unless such petition is dismissed or discharged within 30 days). |
Preferred Shares Preferred Sh_2
Preferred Shares Preferred Shares Series B (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 12, 2019 | |
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Issued | 96,000 | 9,355,778 | ||
Preferred Stock, Shares Outstanding | 96,000 | 9,355,778 | ||
Preferred Stock, Value, Issued | $ 42,350,000 | $ 11,769,000 | ||
Series B Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred shares exchanged | 6,500,000 | |||
Preferred Stock, Shares Issued | 343,778 | 6,500,000 | ||
Preferred Stock, Reason why Security is Not Redeemable | Pursuant to the terms of a waiver agreement entered into by FBC Holdings and the Company on April 8, 2021, FBC Holdings has irrevocably and unconditionally waived its ability, upon providing the Company with at least 61 days' prior written notice, to increase or decrease the maximum percentage from the 9.99% threshold provided for in the Company's articles of amendment governing the rights and preferences of outstanding shares of Series B Preferred Shares unless FBC Holdings obtains the Company's prior written consent. | |||
Convertible Preferred Stock, Terms of Conversion | Series B Preferred Shares (i) were convertible into the Company’s common shares, subject to prior shareholder approval, at a conversion rate equal to $1.00 per share, plus accrued and unpaid dividends, divided by an amount equal to 0.85 multiplied by a 15-day volume weighted average price per common share prior to the date the conversion notice is provided (the “Conversion Rate”), subject to a conversion price floor of $0.80 | |||
Preferred Stock, Dividend Rate, Percentage | 8.00% | |||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,639,542 | |||
Preferred Stock Dividends, Shares | 107,481 | |||
Preferred Stock, Shares Outstanding | 0 | |||
Preferred Stock, Value, Issued | $ 343,778 |
Preferred Shares (Details)
Preferred Shares (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Dividends | $ 329,000 | $ 142,000 | $ 292,000 |
Series B Preferred Stock [Member] | |||
Related Party Transaction [Line Items] | |||
Dividends Payable | $ 0 | $ 71,000 |
MCSK Services (Details)
MCSK Services (Details) - USD ($) | Dec. 07, 2021 | Oct. 01, 2021 | Aug. 25, 2021 | May 24, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||||||
Stock Issued During Period, Value, Issued for Services | $ 1,200,000 | $ 12,800,000 | $ 456,000 | $ 795,000 | $ 2,413,000 | $ 764,000 |
Stock Issued During Period, Shares, Issued for Services | 300,000 | 2,880,000 | 135,000 | 600,000 |
Majestic Dragon (Details)
Majestic Dragon (Details) - USD ($) | Dec. 07, 2021 | Oct. 01, 2021 | Aug. 25, 2021 | May 24, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | |||||||
Stock Issued During Period, Shares, Issued for Services | 300,000 | 2,880,000 | 135,000 | 600,000 | |||
Stock Issued During Period, Value, Issued for Services | $ 1,200,000 | $ 12,800,000 | $ 456,000 | $ 795,000 | $ 2,413,000 | $ 764,000 | |
Fair Value Measurements, Valuation Processes, Description | applied a 25% discount for lack of marketability of common shares for the six-month restriction based on a put option pricing model using volatility of 140% and a risk-free rate of 0.05% |
Westworld (Details)
Westworld (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2021 | Sep. 08, 2021 |
Equity [Abstract] | ||
Warrant, Outstanding | 850,000 | 11,299,000 |
Warrants and Rights Outstanding | $ 2,800 | |
Warrant Term | 3 years | 5 years |
Exercise Price of Warrants | $ 6 | $ 9.50 |
9.2021 Registered Offering (Det
9.2021 Registered Offering (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 01, 2021 | Sep. 08, 2021 | Aug. 25, 2021 | May 27, 2021 | Aug. 03, 2020 |
Equity [Abstract] | |||||
Stock Issued During Period, Shares, New Issues | 22,600,000 | 2,488,530 | 5,600,000 | ||
Warrant, Outstanding | 850,000 | 11,299,000 | |||
Shares Issued, Price Per Share | $ 8.50 | $ 4.25 | $ 1.25 | $ 3.25 | |
Exercise Price of Warrants | $ 6 | $ 9.50 | |||
Warrant Term | 3 years | 5 years | |||
Warrant or Right, Reason for Issuance, Description | A holder (together with its affiliates) may not exercise any portion of such holder's warrants to the extent that the holder would own more than 4.99% of the Company's outstanding common shares immediately after exercise, except that upon notice from the holder to the Company, the holder may decrease or increase the limitation of ownership of outstanding stock after exercising the holder's warrants up to 9.99% of the number of common shares outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrants, provided that any increase in such limitation shall not be effective until 61 days following notice to the Company | The August 2021 Warrants include a provision restricting the warrant holder from exercising it if the aggregate number of common shares held by the warrant holder equals or exceeds 4.99% of the issued and outstanding shares of the Company, calculated on a partially converted basis | |||
Proceeds from issuance of common shares and warrants | $ 176.3 | $ 10.1 | $ 6.8 |
August 25 Private Offering (Det
August 25 Private Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2021 | Sep. 08, 2021 | Aug. 25, 2021 | May 27, 2021 | Dec. 31, 2021 | Aug. 03, 2020 |
Class of Warrant or Right [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 22,600,000 | 2,488,530 | 5,600,000 | |||
Shares Issued, Price Per Share | $ 8.50 | $ 4.25 | $ 1.25 | $ 3.25 | ||
Exercise Price of Warrants | $ 6 | $ 9.50 | ||||
Warrant Term | 3 years | 5 years | ||||
Warrant or Right, Reason for Issuance, Description | A holder (together with its affiliates) may not exercise any portion of such holder's warrants to the extent that the holder would own more than 4.99% of the Company's outstanding common shares immediately after exercise, except that upon notice from the holder to the Company, the holder may decrease or increase the limitation of ownership of outstanding stock after exercising the holder's warrants up to 9.99% of the number of common shares outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the warrants, provided that any increase in such limitation shall not be effective until 61 days following notice to the Company | The August 2021 Warrants include a provision restricting the warrant holder from exercising it if the aggregate number of common shares held by the warrant holder equals or exceeds 4.99% of the issued and outstanding shares of the Company, calculated on a partially converted basis | ||||
Warrant, Outstanding | 850,000 | 11,299,000 | ||||
Proceeds from issuance of common shares and warrants | $ 176,300 | $ 10,100 | $ 6,800 | |||
OTC Hospitality Group | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrant, Outstanding | 213,916 | |||||
Payments of Stock Issuance Costs | $ 456 | |||||
August 25, 2021 A | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise Price of Warrants | $ 6.50 | $ 6.50 | ||||
Warrant Term | 3 years | 3 years | ||||
Warrant, Outstanding | 106,958 | 2,595,488 | ||||
August 25, 2021 B | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise Price of Warrants | $ 7.50 | $ 7.50 | ||||
Warrant Term | 3 years | 3 years | ||||
Warrant, Outstanding | 106,958 | 2,595,488 |
May 2021 Public Offering (Detai
May 2021 Public Offering (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 08, 2021 | Aug. 25, 2021 | May 27, 2021 | Oct. 01, 2021 | Aug. 03, 2020 |
Class of Warrant or Right [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 22,600,000 | 2,488,530 | 5,600,000 | ||
Shares Issued, Price Per Share | $ 8.50 | $ 4.25 | $ 1.25 | $ 3.25 | |
Warrant, Outstanding | 11,299,000 | 850,000 | |||
Exercise Price of Warrants | $ 9.50 | $ 6 | |||
Proceeds from issuance of common shares and warrants | $ 176.3 | $ 10.1 | $ 6.8 | ||
Over-Allotment Option [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 700,000 | ||||
Maxim | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant, Outstanding | 224,000 | ||||
Exercise Price of Warrants | $ 1.375 |
Torrington (Details)
Torrington (Details) - USD ($) | Dec. 07, 2021 | Oct. 01, 2021 | Aug. 25, 2021 | May 24, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||||||
Stock Issued During Period, Shares, Issued for Services | 300,000 | 2,880,000 | 135,000 | 600,000 | ||
Stock Issued During Period, Value, Issued for Services | $ 1,200,000 | $ 12,800,000 | $ 456,000 | $ 795,000 | $ 2,413,000 | $ 764,000 |
Groupe P Share Capital (Details
Groupe P Share Capital (Details) - USD ($) | Aug. 04, 2020 | Jun. 19, 2020 | Jun. 16, 2020 | Jun. 01, 2020 | Mar. 26, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 23, 2020 |
Equity [Abstract] | |||||||||
Prepaid Expense | $ 150,000 | $ 1,477,000 | $ 421,000 | $ 150,000 | |||||
Grants in Period | 100,000 | ||||||||
Shares, Issued | 225,000 | 150,000 | 200,000 | 100,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | 0 | 130,000 | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 2.52 | $ 565.76 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 months | 18 months | |||||||
Shares Issued, Value | $ 725,000 | $ 360,000 | $ 504,000 | $ 17,731,000 | $ 2,034,000 | $ 764,000 |
ROK Share Capital (Details)
ROK Share Capital (Details) - USD ($) | Aug. 04, 2020 | Jun. 19, 2020 | Jun. 16, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 01, 2020 | Apr. 24, 2020 |
Equity [Abstract] | ||||||||
Shares to be issued in lieu of cash | 375,000 | |||||||
Shares, Issued | 225,000 | 150,000 | 200,000 | 100,000 | ||||
Shares Issued, Value | $ 725,000 | $ 360,000 | $ 504,000 | $ 17,731,000 | $ 2,034,000 | $ 764,000 |
Oasis Share Capital (Details)
Oasis Share Capital (Details) - USD ($) | Sep. 08, 2021 | Aug. 25, 2021 | May 27, 2021 | Oct. 26, 2020 | Aug. 04, 2020 | Jun. 19, 2020 | Jun. 16, 2020 | May 15, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 01, 2020 |
Related Party Transaction [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 22,600,000 | 2,488,530 | 5,600,000 | |||||||||
Stock Issued During Period, Value, New Issues | $ 195,017,000 | $ 537,000 | $ 707,000 | |||||||||
Shares, Issued | 225,000 | 150,000 | 200,000 | 100,000 | ||||||||
Shares Issued, Value | $ 725,000 | $ 360,000 | $ 504,000 | $ 17,731,000 | $ 2,034,000 | $ 764,000 | ||||||
Related Party [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Equity purchase agreement | $ 11,000,000 | |||||||||||
Equity purchase agreement term | 36 months | |||||||||||
Minimum floor price | $ 1.58 | |||||||||||
Stock Issued During Period, Shares, New Issues | 30,000 | |||||||||||
Stock Issued During Period, Value, New Issues | $ 77,000 | |||||||||||
Shares, Issued | 630,000 | 200,000 | ||||||||||
Shares Issued, Value | $ 1,300,000 | $ 400,000 |
Share Capital (Details)
Share Capital (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Common Stock, Shares Authorized, Unlimited | Unlimited | |
Common Stock, No Par Value | $ 0 | $ 0 |
Share Capital Warrants Outstand
Share Capital Warrants Outstanding (Details) - $ / shares | Oct. 01, 2021 | Sep. 08, 2021 | Aug. 25, 2021 | Dec. 31, 2021 |
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 3 years | 5 years | ||
Exercise Price of Warrants | $ 6 | $ 9.50 | ||
Warrant, Outstanding | 850,000 | 11,299,000 | ||
August 11, 2022 [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 5 years | |||
Exercise Price of Warrants | $ 42 | |||
Warrant, Outstanding | 37,500 | |||
Warrant expiration date | Aug. 11, 2022 | |||
August 16, 2022 [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 5 years | |||
Exercise Price of Warrants | $ 42 | |||
Warrant, Outstanding | 11,876 | |||
Warrant expiration date | Aug. 16, 2022 | |||
August 22, 2022 [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 5 years | |||
Exercise Price of Warrants | $ 42 | |||
Warrant, Outstanding | 25,625 | |||
Warrant expiration date | Aug. 22, 2022 | |||
April 17, 2023 [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 5 years | |||
Exercise Price of Warrants | $ 5.60 | |||
Warrant, Outstanding | 111,563 | |||
Warrant expiration date | Apr. 17, 2023 | |||
March 23, 2023 | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 3 years | |||
Exercise Price of Warrants | $ 0.60 | |||
Warrant, Outstanding | 31,000 | |||
Warrant expiration date | Mar. 23, 2023 | |||
July 2, 2021 | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 3 years | |||
Exercise Price of Warrants | $ 4 | |||
Warrant, Outstanding | 2,000,000 | |||
Warrant expiration date | Dec. 22, 2024 | |||
August 25, 2021 A | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 3 years | 3 years | ||
Exercise Price of Warrants | $ 6.50 | $ 6.50 | ||
Warrant, Outstanding | 106,958 | 2,595,488 | ||
Warrant expiration date | Aug. 25, 2024 | |||
August 25, 2021 B | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 3 years | 3 years | ||
Exercise Price of Warrants | $ 7.50 | $ 7.50 | ||
Warrant, Outstanding | 106,958 | 2,595,488 | ||
Warrant expiration date | Aug. 25, 2024 | |||
September 8, 2021 | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 5 years | |||
Exercise Price of Warrants | $ 9.50 | |||
Warrant, Outstanding | 11,299,999 | |||
Warrant expiration date | Sep. 8, 2026 | |||
October 1, 2021 | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant Term | 3 years | |||
Exercise Price of Warrants | $ 6 | |||
Warrant, Outstanding | 850,000 | |||
Warrant expiration date | Oct. 1, 2024 | |||
Warrant [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Warrant, Outstanding | 19,558,539 |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,042,578 |
Equity incentive plan annual increase | 10.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 404,000 |
Employee Stock Purchase Plan, Shares Authorized | 37,500 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 5 months |
Equity Incentive Plan Options S
Equity Incentive Plan Options Summary (Details) - USD ($) | Jun. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Payment Arrangement [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | 0 | 130,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 125.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.195% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 months | 18 months | ||
Option awards maximum term | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 500,000 | $ 10,000 |
Equity Incentive Plan Stock Opt
Equity Incentive Plan Stock Options Outstanding (Details) - USD ($) | Jun. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Payment Arrangement [Abstract] | ||||
Options, Outstanding, Number, period start | 101,175 | 2,600 | 20,050,000 | |
Options, Outstanding, Weighted Average Exercise Price, period start | $ 8.94 | $ 781.19 | $ 199.06 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | 0 | 130,000 | 0 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0 | $ 2.52 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (100,000) | (30,000) | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 2.52 | $ 2.52 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (500) | (1,425) | (17,450,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 542 | $ 995.07 | $ 160.93 | |
Options, Outstanding, Number, period end | 675 | 101,175 | 2,600 | |
Options, Outstanding, Weighted Average Exercise Price, period end | $ 565.76 | $ 8.94 | $ 781.19 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 8 months 12 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Aggregate Intrinsic Value | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 675 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 565.76 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 1 year 8 months 12 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 675 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 2.52 | $ 565.76 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 8 months 12 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Aggregate Intrinsic Value | $ 0 |
Equity Incentive Plan RSUs Outs
Equity Incentive Plan RSUs Outstanding (Details) - $ / shares | Mar. 26, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in Period | 100,000 | |||
Grants in Period, Weighted Average Grant Date Fair Value | $ 2.51 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, Number, period start | 0 | 20,798 | 53,004 | |
Outstanding, Weighted Average Grant Date Fair Value, period start | $ 0 | $ 4.99 | $ 31.21 | |
Grants in Period | 206,053 | 0 | 100,000 | |
Grants in Period, Weighted Average Grant Date Fair Value | $ 2.80 | $ 0 | $ 2.51 | |
Vested and Released | (133,553) | (20,420) | (131,541) | |
Vested in Period, Weighted Average Grant Date Fair Value | $ 2.55 | $ 3.82 | $ 9.68 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (12,500) | (378) | (665) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 2.29 | $ 68.02 | $ 64.95 | |
Outstanding, Number, period end | 60,000 | 0 | 20,798 | |
Outstanding, Weighted Average Grant Date Fair Value, period end | $ 3.46 | $ 0 | $ 4.99 |
Equity Incentive Plan RSUs text
Equity Incentive Plan RSUs textuals (Details) - USD ($) | Jun. 01, 2020 | Mar. 26, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 months | 18 months | |||
Grants in Period | 100,000 | ||||
Grants in Period, Weighted Average Grant Date Fair Value | $ 2.51 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Grant Date Fair Value | $ 300,000 | $ 100,000 | $ 1,300,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 392,000 | $ 17,000 | $ 211,000 | ||
Grants in Period | 206,053 | 0 | 100,000 | ||
Grants in Period, Weighted Average Grant Date Fair Value | $ 2.80 | $ 0 | $ 2.51 |
Equity Incentive Plan RSAs Outs
Equity Incentive Plan RSAs Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 01, 2020 | Mar. 26, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants in Period | 100,000 | ||||
Grants in Period, Weighted Average Grant Date Fair Value | $ 2.51 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding, Number, period start | 0 | 0 | 0 | ||
Outstanding, Weighted Average Grant Date Fair Value, period start | $ 0 | $ 0 | $ 0 | ||
Grants in Period | 100,000 | 301,880 | 400,841 | 194,000 | |
Grants in Period, Weighted Average Grant Date Fair Value | $ 4.74 | $ 1.92 | $ 1.20 | ||
Vested and Released | (301,880) | (400,841) | (194,000) | ||
Vested in Period, Weighted Average Grant Date Fair Value | $ 4.74 | $ 1.92 | $ 1.20 | ||
Outstanding, Number, period end | 0 | 0 | 0 | ||
Outstanding, Weighted Average Grant Date Fair Value, period end | $ 0 | $ 0 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $ 1.4 | $ 0.8 | $ 0.2 |
Equity Incentive Plan Share-bas
Equity Incentive Plan Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 366 | $ 5 | $ 637 |
Selling and Marketing Expense [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based Payment Arrangement, Expense | 131 | 2 | 279 |
Research and Development Expense [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based Payment Arrangement, Expense | 0 | 3 | 61 |
General and Administrative Expense [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 235 | $ 0 | $ 297 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 19,558,539 | 2,786,534 | 205,562 |
Redeemable Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 96,000 | 9,355,778 | 8,443,778 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 60,675 | 101,175 | 23,398 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits | $ 0 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | $ 0 | $ 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | $ 0 | $ 0 |
Income Taxes Components of Loss
Income Taxes Components of Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (21,577) | $ (4,546) | $ (1,815) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 4,273 | (1,229) | (2,466) |
Income (Loss) Attributable to Parent, before Tax | $ (17,304) | $ (5,775) | $ (4,281) |
Income Taxes Rate Reconciliatio
Income Taxes Rate Reconciliation for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 26.50% | 26.50% | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ (4,586) | $ (1,531) | $ (1,134) |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | (139) | (37) | (77) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 4,358 | 1,588 | 15,104 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | 0 | 0 | 85 |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | (236) | 0 | 0 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 110 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 144 | 119 | (13,371) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 334 | (135) | (607) |
(Benefit from) provision for income taxes | $ (15) | $ 4 | $ 0 |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 31,210 | $ 26,539 |
Deferred Tax Assets, Intangible Assets | 2,716 | 2,381 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 26 | 1 |
Deferred Tax Assets, Other | 261 | 992 |
Deferred Tax Assets, Gross | 34,213 | 29,913 |
Deferred Tax Assets, Valuation Allowance | (34,213) | (29,854) |
Deferred Tax Assets, Net of Valuation Allowance | 0 | 59 |
Deferred Tax Liabilities, Indefinite-lived Intangible Assets | 0 | (74) |
Deferred Tax Liabilities, Gross | 0 | (74) |
Deferred Tax Liabilities, Net | $ 0 | $ (15) |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Canada Revenue Agency [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 59.3 |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2031 |
Capital loss carryforwards | $ 27.7 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 11 |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2034 |
Operating Loss Carryforward no expiration | $ 7.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
TSA expense | $ 230,000 | $ 525,000 | |
Due to Related Parties | 247,000 | $ 0 | |
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 1,700,000 | ||
Prepaid Expenses and Other Current Assets [Member] | |||
Related Party Transaction [Line Items] | |||
Due from Related Parties, Current | $ 115,000 | $ 0 |
Commitments and Contingencies M
Commitments and Contingencies Minimum Lease Payments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 0 | $ 0 | |
Operating Leases, Rent Expense | $ 200,000 |
Numiner (Details)
Numiner (Details) - NuMiner - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Feb. 03, 2022 | |
Other Commitments [Line Items] | ||
Deposits Assets | $ 10 | |
Purchase Commitment, Description | enter into an agreement with NuMiner to purchase 60,000 units of new NM440 Machines for the purpose of cryptocurrency mining | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Purchase Obligation, to be Paid, Year One | $ 1,700 |
Core Scientific Sublease (Detai
Core Scientific Sublease (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 months |
Lessee, Operating Lease, Description | The agreement allows for approximately 230 MW of carbon neutral digital mining hosting capacity to be managed by Core Scientific as hosting partner. |
Lessee, Operating Lease, Term of Contract | 14 months |
Operating Lease, Payments | $ 20 |
Contractual Obligation, to be Paid, Year One | $ 31.3 |
Lessee, Operating Sublease, Option to Terminate | upon any termination of the Gryphon Merger Agreement by Sphere 3D, Gryphon shall have the right, in its sole discretion, to terminate this Core Scientific MSA in its entirety (including the Hosting Sub-Lease) upon not less than 180 calendar days’ written notice to Sphere 3D. |
BitFuFu Machines (Details)
BitFuFu Machines (Details) - BitFuFu $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Other Commitments [Line Items] | |
Property, Plant, and Equipment, Additional Disclosures | committed to purchase 60,000 machines |
Purchase Obligation | $ 305.7 |
prepaid machine and equipment | 92 |
Purchase Obligation, to be Paid, Year One | $ 213.7 |
Unrecorded Unconditional Purchase Obligation, Term | 9 months |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of Credit Outstanding, Amount | $ 0 |
Litigation Settlement, Expense | 2,850 |
Other Commitments [Line Items] | |
Other Commitment | $ 500 |
Gryphon | |
Other Commitments [Line Items] | |
Other Commitments, Description | Gryphon shall receive the equivalent of 22.5% of the net operating profit, as defined in the Gryphon MSA, of all of the Company’s blockchain and cryptocurrency-related operations as a management fee. |
Majestic Dragon | |
Other Commitments [Line Items] | |
Other Commitments, Description | The Company will pay Majestic Dragon (i) 3.0% of the Hertford Agreement transaction, paid in common shares, which amount shall be paid concurrently with any payment made to Hertford for the placement of the assets to the Company from Hertford pursuant to the terms of the Hertford Agreement, and (ii) 100 Bitcoin per year for a period of two years, payable from the first coin mined in the corresponding year. |
MEOA | |
Other Commitments [Line Items] | |
Other Commitments, Description | at the SPAC Sponsor’s discretion, would be convertible into warrants of MEOA at a price of $1.00 per warrant. If MEOA does not complete a business combination, any such loans would be forgiven. |
Commitments and Contingencies D
Commitments and Contingencies Deferred Warranty Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue extended warranties, current | $ 155,000 | |
Deferred revenue extended warranties, noncurrent | 59,000 | |
Deferred Costs, Service Revenue | 56,000 | $ 154,000 |
Deferred revenue [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue, period start | 739,000 | 1,109,000 |
Standard and Extended Product Warranty Accrual, Decrease for Payments | 760,000 | 817,000 |
Standard and Extended Product Warranty Accrual, Increase for Warranties Issued | 369,000 | 447,000 |
Standard Product Warranty Accrual, Period Increase (Decrease) | (134,000) | |
Deferred Revenue, period end | $ 214,000 | $ 739,000 |
Segmented Information (Details)
Segmented Information (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 1 |
Segmented Information Products
Segmented Information Products and Service (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 3,720 | $ 4,848 | $ 5,579 |
Product [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 908 | 2,347 | 3,086 |
Service [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,812 | $ 2,501 | $ 2,493 |
Segmented Information Revenue b
Segmented Information Revenue by Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 3,720 | $ 4,848 | $ 5,579 |
Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,720 | 4,844 | 5,023 |
EMEA [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 4 | 200 |
APAC [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 356 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 08, 2022 | Feb. 07, 2022 | Sep. 08, 2021 | Aug. 25, 2021 | May 27, 2021 | Aug. 04, 2020 | Jun. 19, 2020 | Jun. 16, 2020 | Mar. 21, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 22,600,000 | 2,488,530 | 5,600,000 | |||||||||
Shares Issued, Value | $ 725,000 | $ 360,000 | $ 504,000 | $ 17,731,000 | $ 2,034,000 | $ 764,000 | ||||||
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 850,000 | 100,000 | ||||||||||
Shares Issued, Value | $ 1,200,000 | |||||||||||
MEOA | Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Loans and Leases Receivable, Gross | $ 337,000 | |||||||||||
Other Commitments, Description | Such loan is payable upon consummation of MEOA’s initial business combination, without interest, or, at the SPAC Sponsor’s discretion, would be convertible into warrants of MEOA at a price of $1.00 per warrant. If MEOA does not complete a business combination such loan would be forgiven. |
Financial Advisory Services (De
Financial Advisory Services (Details) - USD ($) | Mar. 08, 2022 | Feb. 07, 2022 | Dec. 07, 2021 | Oct. 01, 2021 | Sep. 08, 2021 | Aug. 25, 2021 | May 27, 2021 | May 24, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 |
Subsequent Event [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues | 22,600,000 | 2,488,530 | 5,600,000 | ||||||||
Stock Issued During Period, Value, Issued for Services | $ 1,200,000 | $ 12,800,000 | $ 456,000 | $ 795,000 | $ 2,413,000 | $ 764,000 | |||||
Warrant, Outstanding | 850,000 | 11,299,000 | |||||||||
Exercise Price of Warrants | $ 6 | $ 9.50 | |||||||||
Warrant Term | 3 years | 5 years | |||||||||
Warrant [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrant, Outstanding | 19,558,539 | ||||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues | 850,000 | 100,000 | |||||||||
Stock Issued During Period, Value, Issued for Services | $ 200,000 | ||||||||||
Subsequent Event [Member] | $4 warrant | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrant, Outstanding | 100,000 | ||||||||||
Exercise Price of Warrants | $ 4 | ||||||||||
Subsequent Event [Member] | $5 warrant | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrant, Outstanding | 100,000 | ||||||||||
Exercise Price of Warrants | $ 5 | ||||||||||
Subsequent Event [Member] | $6 warrant | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrant, Outstanding | 100,000 | ||||||||||
Exercise Price of Warrants | $ 6 | ||||||||||
Subsequent Event [Member] | Warrant [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrant Term | 5 years |
Waxahachie Lease (Details)
Waxahachie Lease (Details) - USD ($) | Jan. 25, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | ||
Lessee, Operating Lease, Description | The agreement allows for approximately 230 MW of carbon neutral digital mining hosting capacity to be managed by Core Scientific as hosting partner. | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Lessee, Operating Lease, Description | In January 2022, the Company entered into a lease agreement for administrative offices and research facilities located in Waxahachie, Texas (the “Waxahachie Lease”) for approximately 3,600 square feet. | |
Incentive to Lessee | $ 146,880 | |
Lessee, Operating Lease, Remaining Lease Term | 5 years |