Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Dec. 22, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001686400 | |
Entity Registrant Name | Salt Blockchain Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-15697 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-4029835 | |
City Area Code | 720 | |
Local Phone Number | 575-2272 | |
Title of 12(g) Security | Salt Token | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,003,695 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 1,765,273 | $ 5,584,758 |
Digital assets, net | 70,861,648 | 4,163,123 |
Investments | 8,287,512 | 32,685,804 |
Collateral receivable | 117,453,527 | 7,298,763 |
Income tax receivable | 289,802 | 289,802 |
Interest receivable | 148,977 | 32,520 |
Loans receivable, net | 50,329,398 | 20,254,025 |
Restricted cash | 900,000 | 900,000 |
Property and equipment, net of accumulated depreciation | 27,107 | 223,288 |
Deferred tax asset | 377,182 | 377,182 |
Digital asset derivatives - swaps | 654,315 | 0 |
Other assets | 1,495,144 | 735,106 |
Total assets | 252,589,885 | 72,544,371 |
Liabilities and shareholders' deficit | ||
Accounts payable and accrued expenses | 3,084,973 | 673,976 |
Deferred rent | 0 | 422,115 |
Notes payable | 122,214,220 | 11,529,954 |
Digital assets payable | 27,423,371 | 4,348,512 |
SALT Token liability | 44,359,677 | 44,364,316 |
Digital asset collateral due to customer | 131,240,726 | 39,547,465 |
Settlement liability | 0 | 5,124,000 |
Income tax liability | 10,524,152 | 14,586,194 |
Covered call options | 2,270,496 | |
Other liabilities | 1,157,945 | 263,668 |
Total liabilities | 340,005,064 | 123,130,696 |
Common stock, $0.0001 par value; 35,000,000 shares authorized; 10,519,251 shares issued and 10,969,251 outstanding as of September 30, 2021; 8,871,154 shares issued and 9,321,154 outstanding as of December 31, 2020 | 1,051 | 887 |
Additional paid-in capital | 8,834,613 | 2,920,638 |
Accumulated deficit | (96,250,843) | (53,507,850) |
Total shareholders' deficit | (87,415,179) | (50,586,325) |
Total liabilities and shareholders' deficit | 252,589,885 | 72,544,371 |
Covered Call Options [Member] | ||
Liabilities and shareholders' deficit | ||
Covered call options | $ 0 | $ 2,270,496 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 35,000,000 | 35,000,000 |
Common stock, shares issued (in shares) | 10,519,251 | 8,871,154 |
Common stock, shares outstanding (in shares) | 10,969,251 | 9,321,154 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | $ 753,153 | $ 201,684 | $ 2,852,878 | $ 830,482 |
Operating expenses | ||||
Selling, general and administrative expenses | 4,643,515 | 3,278,960 | 13,046,998 | 10,649,796 |
Restructuring and severance | 46,923 | 3,096 | 46,923 | 670,553 |
Impairment of digital assets | 12,455,593 | 1,297,131 | 15,869,459 | 3,743,849 |
Technology and development | 0 | 0 | 766,151 | 0 |
Settlement expense | 0 | 6,000 | 1,000 | 349,000 |
Depreciation expense | 128,736 | 13,723 | 156,181 | 41,168 |
Total operating expenses | 17,274,767 | 4,598,910 | 29,886,712 | 15,454,366 |
Loss from operations | (16,521,614) | (4,397,226) | (27,033,834) | (14,623,884) |
Other (expense) income, net | ||||
Gain on sale of digital assets | 2,742,954 | 2,845,041 | 9,035,402 | 8,255,886 |
Unrealized gain on investments | 13,729,918 | 48,661 | 17,165,582 | 48,661 |
Fair value adjustment on digital assets payable | (7,359,868) | 0 | (7,037,840) | 0 |
Unrealized gain (loss) on derivative | 654,315 | (666,143) | 654,315 | (144,049) |
Fair value adjustment on repledged collateral | (26,992,530) | (1,329,730) | (28,555,257) | (1,329,730) |
Fair value adjustment on notes payable | (3,951,438) | 0 | (3,951,438) | 0 |
Realized gain (loss) on digital asset options | 0 | 0 | (2,173,486) | 0 |
Loss on sublease | (688,120) | 0 | (688,120) | 0 |
Interest expense | (2,498,324) | (139,994) | (3,543,773) | (170,585) |
Other income, net | (94,480) | 90,293 | 130,506 | 242,035 |
Total other (expense) income, net | (24,457,573) | 848,128 | (18,964,109) | 6,902,218 |
Loss before income taxes | (40,979,187) | (3,549,098) | (45,997,943) | (7,721,666) |
Income tax (expense) benefit | (436,269) | 31,592 | 3,254,950 | (2,047,402) |
Net loss | (41,415,456) | (3,517,506) | (42,742,993) | (9,769,068) |
Interest Income on Collateralized Loans [Member] | ||||
Revenues | 742,867 | 201,658 | 1,944,415 | 692,124 |
Stabilization Fees, Liquidation Fees and Token Revenue [Member] | ||||
Revenues | $ 10,286 | $ 26 | $ 908,463 | $ 138,358 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) | Revision of Prior Period, Error Correction, Adjustment [Member]Common Stock Outstanding [Member] | Revision of Prior Period, Error Correction, Adjustment [Member]Additional Paid-in Capital [Member] | Revision of Prior Period, Error Correction, Adjustment [Member]Retained Earnings [Member] | Revision of Prior Period, Error Correction, Adjustment [Member] | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 8,739,622 | |||||||
Balance at Dec. 31, 2019 | $ 874 | $ 2,885,270 | $ (38,309,927) | $ (35,423,783) | ||||
Stock-based compensation | 0 | 8,199 | 0 | 8,199 | ||||
Net income (loss) | $ 0 | 0 | (4,580,218) | (4,580,218) | ||||
Balance (in shares) at Mar. 31, 2020 | 8,989,622 | |||||||
Balance at Mar. 31, 2020 | $ 899 | 2,893,444 | (42,890,145) | (39,995,802) | ||||
Shares issued in connection with Restricted Stock Awards ("RSAs") (in shares) | 250,000 | |||||||
Shares issued in connection with Restricted Stock Awards ("RSAs") | $ 25 | (25) | 0 | 0 | ||||
Stock-based compensation (in shares) | 0 | |||||||
Balance (in shares) at Dec. 31, 2019 | 8,739,622 | |||||||
Balance at Dec. 31, 2019 | $ 874 | 2,885,270 | (38,309,927) | (35,423,783) | ||||
Net income (loss) | (9,769,068) | |||||||
Balance (in shares) at Sep. 30, 2020 | 9,024,387 | |||||||
Balance at Sep. 30, 2020 | $ 903 | 2,913,747 | (48,078,995) | (45,164,345) | ||||
Balance (in shares) at Mar. 31, 2020 | 8,989,622 | |||||||
Balance at Mar. 31, 2020 | $ 899 | 2,893,444 | (42,890,145) | (39,995,802) | ||||
Stock options exercised (in shares) | 7,999 | |||||||
Stock options exercised | $ 1 | 2,879 | 0 | 2,880 | ||||
Stock-based compensation | 0 | 6,997 | 0 | 6,997 | ||||
Net income (loss) | $ 0 | 0 | (1,671,344) | (1,671,344) | ||||
Balance (in shares) at Jun. 30, 2020 | 8,997,621 | |||||||
Balance at Jun. 30, 2020 | $ 900 | 2,903,320 | (44,561,489) | (41,657,269) | ||||
Stock-based compensation (in shares) | 0 | |||||||
Stock options exercised (in shares) | 26,766 | |||||||
Stock options exercised | $ 3 | 3,800 | 0 | 3,803 | ||||
Stock-based compensation | 0 | 6,627 | 0 | 6,627 | ||||
Net income (loss) | $ 0 | 0 | (3,517,506) | (3,517,506) | ||||
Balance (in shares) at Sep. 30, 2020 | 9,024,387 | |||||||
Balance at Sep. 30, 2020 | $ 903 | 2,913,747 | (48,078,995) | (45,164,345) | ||||
Stock-based compensation (in shares) | 0 | |||||||
Balance (in shares) at Dec. 31, 2020 | 8,871,154 | |||||||
Balance at Dec. 31, 2020 | $ 887 | 2,920,638 | (53,507,850) | (50,586,325) | ||||
Stock options exercised (in shares) | 21,100 | |||||||
Stock options exercised | $ 2 | 7,594 | 0 | 7,596 | ||||
Contingent consideration for shares to be issued for Harmonic acquisition | 0 | 624,737 | 0 | 624,737 | ||||
Stock-based compensation | 0 | 8,704 | 0 | 8,704 | ||||
Net income (loss) | $ 0 | 0 | (16,316,348) | (16,316,348) | ||||
Balance (in shares) at Mar. 31, 2021 | 8,892,254 | |||||||
Balance at Mar. 31, 2021 | $ 889 | 3,561,673 | (69,824,198) | (66,261,636) | ||||
Balance (in shares) at Dec. 31, 2020 | 8,871,154 | |||||||
Balance at Dec. 31, 2020 | $ 887 | 2,920,638 | (53,507,850) | (50,586,325) | ||||
Net income (loss) | (42,742,993) | |||||||
Balance (in shares) at Sep. 30, 2021 | 10,519,251 | |||||||
Balance at Sep. 30, 2021 | $ 1,051 | 8,834,613 | (96,250,843) | (87,415,179) | ||||
Balance (in shares) at Mar. 31, 2021 | 8,892,254 | |||||||
Balance at Mar. 31, 2021 | $ 889 | 3,561,673 | (69,824,198) | (66,261,636) | ||||
Stock options exercised (in shares) | 402,099 | |||||||
Stock options exercised | $ 40 | 16,933 | 0 | 16,973 | ||||
Stock-based compensation | 0 | 29,717 | 0 | 29,717 | ||||
Net income (loss) | $ 0 | 0 | 14,988,811 | 14,988,811 | ||||
Warrants exercised (in shares) | 250,000 | |||||||
Warrants exercised | $ 25 | 0 | 0 | 25 | ||||
Shares issued as payment for milestones reached | $ 85 | (85) | 0 | 0 | ||||
Balance (in shares) at Jun. 30, 2021 | 10,398,788 | |||||||
Balance at Jun. 30, 2021 | $ 0 | $ 0 | $ 210,197 | $ 210,197 | $ 1,039 | 3,608,238 | (54,835,387) | (51,226,110) |
Stock options exercised (in shares) | 120,463 | |||||||
Stock options exercised | $ 12 | 43,192 | 0 | 43,204 | ||||
Stock-based compensation | 0 | 58,183 | 0 | 58,183 | ||||
Net income (loss) | (41,415,456) | |||||||
Put option extinguishment | 0 | 5,125,000 | 0 | 5,125,000 | ||||
Net loss | $ 0 | 0 | (41,625,653) | (41,625,653) | ||||
Balance (in shares) at Sep. 30, 2021 | 10,519,251 | |||||||
Balance at Sep. 30, 2021 | $ 1,051 | $ 8,834,613 | $ (96,250,843) | $ (87,415,179) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (42,742,993) | $ (9,769,068) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock based compensation | 96,604 | 21,823 |
Gain on disposal of digital assets | (9,035,402) | (8,255,886) |
Unrealized gain on investment | (17,165,582) | (48,661) |
Unrealized (gain) loss on derivative | (654,315) | 144,049 |
Fair value adjustment on digital assets payable | 7,037,840 | 0 |
Fair value adjustment on notes payable | 3,951,438 | 0 |
Technology and development paid in shares | 730,206 | 0 |
Fair value adjustment on repledged collateral | 28,555,257 | 1,329,730 |
Realized loss on digital asset options | 2,173,486 | 0 |
Loss on sublease | 688,120 | 0 |
Gain on forgiveness of incentive allocation fees payable | (291,744) | 0 |
Loss (gain) on SALT Token | 12,594 | (176,154) |
Change in fair value of settlement liability | 1,000 | 349,000 |
Impairment of digital assets | 15,869,459 | 3,743,849 |
Depreciation | 156,181 | 41,168 |
Change in operating assets and liabilities: | ||
Interest receivable | (134,859) | 13,839 |
Loans receivable, net | (35,073,575) | (216,077) |
Digital assets, net | 15,090,203 | (331,428) |
Investments | (7,048) | 0 |
Collateral receivable | 2,013,482 | 0 |
Income tax receivable | 0 | 2,481,613 |
Deferred tax asset | 0 | (1,688,362) |
Covered call options | 161,618 | 0 |
Other assets | (760,038) | (5,774,172) |
SALT Token liability | (17,233) | (333,838) |
Federal tax liability | (4,062,042) | 6,502,291 |
Other liabilities | (215,958) | (71,795) |
Accounts payable and accrued expenses | 3,208,141 | (344,978) |
Net cash used in operating activities | (30,415,160) | (12,383,057) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (65,469) | (40,000) |
Net cash used in investing activities | (65,469) | (40,000) |
Cash flows from financing activities: | ||
Proceeds from notes payable | 52,665,109 | 5,336,151 |
Repayment of notes payable | (26,071,763) | (2,895,000) |
Proceeds from PPP loan | 0 | 1,199,900 |
Proceeds from exercise of warrants | 25 | 0 |
Proceeds from exercise of stock options | 67,773 | 6,683 |
Net cash provided by financing activities | 26,661,144 | 3,647,734 |
Net change in cash and cash equivalents and restricted cash | (3,819,485) | (8,775,323) |
Cash and cash equivalents and restricted cash, beginning of period | 6,484,758 | 10,306,643 |
Cash and cash equivalents and restricted cash, end of period | 2,665,273 | 1,531,320 |
Supplemental disclosure of cash flow information and non-cash operating, investing and financing activities | ||
Cash paid for taxes | 666,261 | 631,941 |
Digital assets paid for interest | 505,400 | 0 |
Cash paid for interest | 1,665,186 | 165,556 |
Interest receivable on liquidation of borrower collateral in digital assets | 18,402 | 0 |
Liquidation of borrower collateral in digital assets | 4,998,202 | 0 |
Repayment of notes payable paid in digital assets | 12,700,000 | 0 |
Proceeds from notes payable received in digital assets | 88,233,882 | 8,500,000 |
Proceeds from digital assets payable | 21,535,658 | 0 |
Repayment of digital assets payable | 1,150,127 | 0 |
Grayscale shares repledged | 32,919,213 | 0 |
Non-cash put option extinguishment | 5,125,000 | 0 |
Non-cash Harmonic rebalancing trades | 0 | 1,483,285 |
Non-cash loan receivable from exchange | 0 | 4,449,818 |
Non-cash purchase of covered call options | 4,605,600 | 0 |
Non-cash purchase of investments | 2,614,395 | 1,871,975 |
Non-cash repledged collateral due to customer | $ 60,259,694 | $ 10,337,713 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Operations | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1 Salt Blockchain Inc. (the “Company” and/or “Salt”) (formerly known as Salt Lending Holdings, Inc.), a Delaware corporation, was formed on September 9, 2016 The Company wholly owns various subsidiaries, which include Salt Lending LLC, Salt Platform, LLC, Salt Technology, Ltd., and Harmonic Technologies, LLC. The Company developed a proprietary software technology platform, or the Platform, that facilitates the origination and servicing of digital asset-backed loans. Loans are over-collateralized with digital assets the Company determines from time to time to be acceptable collateral. As of September 30, 2021, may not Through its subsidiary Salt Lending, LLC, the Company originates U.S. dollar denominated loans through the Platform. Salt Lending offers loans to both consumer and business borrowers who own cryptocurrency and desire to borrow against such digital assets without selling their cryptocurrency portfolio. Borrowers that receive loans from Salt Lending are required to transfer a specified value of cryptocurrency to Salt Lending to be held as collateral and security for the repayment of the loans. Upon repayment of the loan, the digital asset collateral is returned to borrowers. In addition to its lending business, the Company utilizes balance sheet assets to generate return through hedging strategies, delta-neutral digital asset arbitrage trading strategies (such as perpetual arbitrage, cash and physically-settled term futures, spot, spread, and FX specialization arbitrage), and other digital asset investments. Also, under its consumer loan agreements, Salt Lending has the right to rehypothecate, repledge, and transfer collateral. Borrower collateral may third 11 |
Note 2 - Going Concern
Note 2 - Going Concern | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Substantial Doubt about Going Concern [Text Block] | Note 2 Going Concern In evaluating the Company’s ability to continue as a going concern, management considered the conditions and events that could raise substantial doubt about the Company’s ability to continue as a going concern within twelve The Company is subject to a number of risks similar to those of other financial services companies, including its dependence on outside sources of capital, uncertainty of generation of revenues and positive cash flow, uncertainty of future regulatory pronouncements and the related uncertainty of Salt membership token (“Salt Token”) refunds, uncertainty with the Company’s ability to maintain and grow its customer base, dependence on key individuals, and risks associated with market volatility (namely price fluctuations in the digital asset markets). The attainment of profitable operations is dependent on future events, including generating a level of revenues (by expanding the customer base resulting in greater lending revenue) adequate to support the Company’s cost structure. The Company expects to continue to incur losses from operations and have significant cash outflows for at least the next twelve nine September 30, 2021. nine September 30, 2021, 2017 not The Company has evaluated the significance of the conditions described above in relation to the Company’s ability to meet its obligations with the assets on its balance sheet and concluded that the aforementioned conditions raise substantial doubt about the Company’s ability to continue as a going concern for at least twelve To continue as a going concern, the Company will need to do some or all of the following, without limitation: obtainment of additional financing, increase revenues, and/or reduce expenses. In an effort to increase revenues, management has expanded the Company's investment and digital asset trading strategies with treasury assets, offered new services to existing borrowers, such as additional digital asset trading functionality, and developed digital asset management services for qualified individual and institutional investors. However, there is no These unaudited interim condensed consolidated financial statements have been prepared with the assumption that the Company will continue as a going concern and will be able to realize its assets and discharge its liabilities in the normal course of business and do not may |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 3 Summary of Significant Accounting Policies Basis of presentation and principles of consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) within its Accounting Standards Codification (“ASC”) and under the rules and regulations of the SEC for interim financial information. Accordingly, they do not not These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Form 10 12 1934, September 10, 2021 ( 10” These accompanying unaudited interim condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The Company’s subsidiaries are entities in which the Company holds, directly or indirectly, more than 50% The Company accounts for immaterial prior period misstatements as adjustments to opening equity in the current period. Subsequent to the issuance of the Company’s quarterly financial statements for the three six June 30, 2021, July 1, 2021. There were no 3, 10, Use of Estimates The most significant accounting estimates inherent in the preparation of the Company's financial statements include the fair values of repledged borrowers’ digital asset collateral, intangible asset impairment, fair value of contingent consideration related to asset acquisitions, valuation on digital asset derivative options, allowance for loan loss reserve, settlement liability, stock-based compensation, common stock valuation, cash flow assumptions regarding going concern considerations, and deferred tax valuation allowance. Actual results could differ from those estimates. Business combinations The results of businesses acquired in a business combination are included in the Company’s unaudited interim condensed consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at their estimated fair values on the acquisition date. Any excess consideration over the fair value of identifiable assets acquired and liabilities assumed is recognized as goodwill. Acquisition-related costs incurred by the Company are recognized as an expense in general and administrative expenses within the consolidated statements of operations. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may one not may Asset acquisitions An asset acquisition is an acquisition of an asset, or a group of assets, that does not Derivatives As part of its trading activities, the Company enters into derivative contracts. Derivatives are instruments that derive their value from changes in an underlying reference outside the control of the Company (which can be foreign exchange rates or the price of a digital asset). The most frequently used derivatives by the Company are digital asset swaps, digital asset options, and covered call options: • Digital asset swaps - a digital asset swap is an exchange traded contract which represents a legal agreement to either buy or sell digital assets at a predetermined price at some time in the future. Depending on contract specifications, swaps can be settled either in Bitcoin, Ethereum, a stablecoin (such as USDC or USDT) or cash. As of September 30, 2021 December 31, 2020, — 9 • Digital asset options - a digital asset option is an OTC traded contract, which gives the holder the right, but not not 815, Derivatives and Hedging 815" September 30, 2021 December 31, 2020. • Covered call options - periodically, the Company will sell options on digital assets that it owns (referred to as "covered call options"). These option transactions are designed primarily to provide additional income on a portion of the digital assets. The Company uses covered call options for trading purposes. These options do not 815, Derivatives and Hedging 815" December 31, 2020 9 September 30, 2021. Borrower Collateral and Custody Assets The Company is a loan originator and services loans to borrowers. The Company requires loans to have certain collateral levels at origination and throughout the term of the loan. The loan agreement with the borrower specifies that the borrower grants the Company, as lender, a first not not not When a transfer of digital assets does not 310, Receivables 310” Long-Lived Assets and Finite-Lived Intangible Assets Long-lived assets, other than goodwill and other indefinite-lived intangibles, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not not For the periods presented, the Company determined that digital assets should be accounted for under ASC 350, no not not not. not The Company recorded impairment charges of $12,455,593 and $1,297,131 for the three September 30, 2021 2020, nine September 30, 2021 2020, Salt Tokens Starting in June 2017, 20 From June 2017 December 2017, 2017, December 31, 2017, August 2019. 2018 2019, August 2019, not September 2020, 2017 2020, The total amount received in the ICO from the Potential Salt Token Claimants was approximately $47.1 million, which, upon receipt, was initially recorded as a Salt Token liability in the accompanying Unaudited Condensed Consolidated Balance Sheets. The total payments related to the claims process could exceed the Salt Token liability reported in our Unaudited Condensed Consolidated Balance Sheets, however, a reasonable estimate of the possible losses or range of possible losses cannot be made at this time. The Company believes that the maximum amount payable is the amount received in the ICO less amounts previously refunded (totaling approximately $44.4 million) plus interest. In 2017, August 2018, not 2019, may As of October 31, 2021, October 31, 2021, third October 31, 2021, The issuance of the Salt Tokens in the ICO was not not 1933, 8A September 30, 2020. 5 • Issue a press release within 14 • File the Form 10 120 105 • Distribute and post on our website a refund claim form no 60 10, seven 10 August 28, 2021; • Commencing 30 three 10 six 10 • Submit to the SEC a final report of the Company's handling of all claims received within seven 10; • Maintain timely filing of all reports required by Section 13 10 12g 4 • Pay the amounts due under Section 12 three may 12 30 not • Pay a civil penalty of $250,000 The Company accounts for the SALT Tokens pursuant to ASC 610, Other Income 610 20, third not 606 10 55 22 25 September 2020); The SALT Token Liability on the Unaudited Consolidated Balance Sheets represents the aforementioned right of return (put feature) held at maximum redemption value, excluding interest, for the associated SALT Tokens, which represents the entity’s obligation to repurchase the SALT Units at the customer’s request. Allowance for Loan Loss ASC 310, Receivables 310” 450 20, Contingencies Loss Contingencies 450” The process for determining the amount of the allowance requires subjective and complex judgments about the future, including forecasts of economic or market conditions that might impair the ability of our borrowers to repay their loans. Changes in economic conditions affecting borrowers, revisions to accounting rules and related guidance, new qualitative or quantitative information about existing loans, identification of additional problem loans, changes in the size or composition of our finance receivables and loan portfolio, changes to our loss estimation techniques including consideration of forecasted economic assumptions, and other factors, both within and outside of our control, may Interest Income The Company provides U.S. Dollar loans collateralized by digital assets to a broad range of customers and generates revenue from interest income earned on loans. Revenue derived from interest income on loans is outside the scope of ASC 606, Revenue from Contracts with Customers 606” no may Income Taxes The Company follows Accounting Standards Codification subtopic 740 10, Income Taxes 740 10” not not not may September 30, 2021 December 31, 2020, 740, three nine September 30, 2021, nine September 30, 2020, 2020. Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequences of the change to its unaudited interim condensed consolidated financial statements and assures that there are proper controls in place to ascertain that the Company's unaudited interim condensed consolidated financial statements properly reflect the change. As of September 30, 2021, no December 31, 2020. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurement | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 4 The Company’s financial instruments include cash and cash equivalents, accounts payable, debt securities, and short-term debt. The fair values of cash and cash equivalents, collateral receivable, and accounts payable approximate their stated amounts because of the short maturity of these financial instruments. The following table presents the fair value hierarchy for those assets and liabilities the Company measured at fair value on a recurring basis: September 30, 2021 December 31, 2020 Fair Value Measurements Fair Value Measurements Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Equity securities: Investments $ 8,287,512 $ — $ — $ — $ 32,685,804 $ — Collateral receivable 37,380,589 (1) — — — — — Total equity securities 45,668,101 — — — 32,685,804 — Derivatives: Digital asset swaps 654,315 — — — — — Total assets $ 46,322,416 $ — $ — $ — $ 32,685,804 $ — Liabilities Derivatives: Covered call options — — — — — 2,270,496 Digital asset options — — — — — — Total derivatives — — — — — 2,270,496 Other: Digital assets payable — 27,423,371 — — 4,348,512 — Collateral due to customer — 131,240,726 — — 39,547,465 — Settlement liability — — — — — 5,124,000 Total liabilities $ — $ 158,664,097 $ — $ — $ 43,895,977 $ 7,394,496 1 |
Note 5 - Collateralized Loans R
Note 5 - Collateralized Loans Receivable and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | Note 5 Collateralized Loans Receivable and Allowance for Loan Losses In the ordinary course of business, the Company enters facilities to borrow digital assets and US dollars in order to lend to counterparties, thus earning a return through the spread between its borrowing and lending rates. The Company also lends digital assets and U.S. dollars held in its own accounts. At the time of origination, loans are over-collateralized with digital assets the Company determines from time to time to be acceptable collateral. As of September 30, 2021, may September 30, 2021 December 31, 2020, not may September 30, 2020, not For the three September 30, 2021 2020, — nine September 30, 2021 2020, The Company does not 860. three As of September 30, 2021, 90.91% 90.91% December 31, 2020. The Company values its collateralized outstanding loans at par, shown at principal values. Interest receivable on loans in the amount of $148,977 and $32,520 is presented on the Unaudited Condensed Consolidated Balance Sheet as of September 30, 2021 December 31, 2020, 48 September 30, 2020, September 30, 2021, Principal Payments As Of Receipt of Payments September 30, 2021 December 31, 2020 0 to 12 months $ 39,423,833 $ 15,271,554 12 to 24 months 10,045,565 1,982,471 24 to 36 months 860,000 3,000,000 Total $ 50,329,398 $ 20,254,025 LTV ratios range from 4.26% to 101.38% and 1.81% to 73.80% as of September 30, 2021 December 31, 2020, At September 30, 2021 December 31, 2020, September 30, 2021 December 31, 2020, A summary of total collateral received to secure the loan receivable balance by digital asset type is presented below: Collateral Type September 30, 2021 December 31, 2020 BTC $ 117,290,803 $ 46,062,070 ETH 23,357,794 10,040,956 SALT 213,346 1,285,556 LTC 936,526 985,747 DASH 367,471 590,487 BCH 1,290,006 508,179 XRP 497,918 444,691 Other 3,593,525 308,766 Total $ 147,547,389 $ 60,226,452 A summary of total collateral received to secure the loan receivable balance by loan type is presented below: Loan Type September 30, 2021 December 31, 2020 Consumer $ 89,709,553 $ 41,378,056 Business 57,837,836 18,848,396 Total $ 147,547,389 $ 60,226,452 A summary of collateral repledged is presented below: Activity Collateral Type September 30, 2021 December 31, 2020 Repledged for investing BTC $ 56,393,662 $ 26,091,072 Repledged for investing ETH 8,557,442 1,106,909 Repledged for investing USDC 710,553 — Repledged for financing BTC 56,356,160 12,349,484 Repledged for financing ETH 3,741,660 — Repledged for financing USDC 3,235,879 — Repledged for financing Other 2,245,370 — Total $ 131,240,726 $ 39,547,465 Allowance for Loan Losses An allowance for loan losses is established with respect to loans held for investment through periodic charges to the provision for loan losses. Loan losses are charged against the allowance for loan losses when management believes that the future collection of principal is unlikely. To date, the Company does not not Management classifies the pools of loans into small, risk categories based on their original LTV and continues to monitor the current LTV on a recurring basis. The allowance is subjective as it requires material estimates, including such factors as historical trends. Other qualitative factors considered may may not may Based on the Company's review of historical data, Management has been able to liquidate collateral and recover principal, interest, and a liquidation fee and have not September 30, 2021 December 31, 2020, three no 100% September 30, 2021, December 31, 2020. |
Note 6 - Digital Assets, Net
Note 6 - Digital Assets, Net | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 6 Digital Assets, net The following table summarizes the Company’s digital asset holdings as of September 30, 2021: Asset Estimated Useful Life Gross Carrying Amount Impairment Reserve Digital Assets, Net Digital asset holdings Indefinite $ 83,591,229 $ (12,711,529 ) $ (18,052 ) 70,861,648 The following table summarizes the Company’s digital asset holdings as of December 31, 2020: Asset Estimated Useful Life Gross Carrying Amount Impairment Reserve Digital Assets, Net Digital asset holdings Indefinite $ 5,275,598 $ (1,079,833 ) $ (32,642 ) $ 4,163,123 Changes in the Company's digital asset holdings for the nine September 30, 2021 December 31, 2020 January 1, 2020 $ 1,982,555 Acquisitions 60,073,526 Disposals (50,137,806 ) Impairment (7,755,152 ) December 31, 2020 $ 4,163,123 Acquisitions 210,499,180 Disposals (127,931,196 ) Impairment (15,869,459 ) September 30, 2021 $ 70,861,648 The Company recorded impairment expense of $12,455,593 and $1,297,131 for the three September 30, 2021 2020, nine September 30, 2021 2020, In the normal course of business, the Company purchases and sells digital assets including BCH, BNB, BTC, BUSD, DASH, DOGE, ETH, LTC, OKB, PAX, PAXG, TUSD and USDC for purposes of treasury management. The Company transacts with digital asset exchanges, over the counter markets and at times with borrowers of digital asset collateralized loans. Digital assets are acquired or sold with various trading parings including cash, stablecoins or other digital assets. |
Note 7 - Harmonic Acquisition
Note 7 - Harmonic Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Asset Acquisition [Text Block] | Note 7 On January 19, 2021 ( P3K "P3K" P3K. P3K three April 6, 2021, first P3K. May 17, 2021, second P3K. September 30, 2021, first second September 30, 2021, P3K The Company has determined that the transaction is an asset acquisition, and the acquired license is an in process research and development asset. Accordingly, the purchase price was expensed on the Acquisition Date and presented in technology and development on the Unaudited Condensed Consolidated Statements of Operations. The total purchase price of $766,151 consists of $624,737 in shares of common stock to be paid upon completion of each of the three three nine September 30, 2021, — three September 30, 2021, nine September 30, 2021, two nine September 30, 2021, not In addition to shares issued, the Company is also required to make quarterly cash payments in the amount of 40% of the Company's gross trading profits derived from trading strategies acquired in the acquisition. The Company is to make the payments to P3K not September 30, 2021, not P3K. In April 2020, September 2020, three nine September 30, 2021 2020, not September 30, 2021 December 31, 2020, — September 30, 2021, nine September 30, 2021. |
Note 8 - Investments
Note 8 - Investments | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 8 Investments During the year ended December 31, 2020, six May 15, 2021 June 24, 2021) 820, June 30, 2021, no 1 nine September 30, 2021, Inc.1 3 June 30, 2021 July 9, 2021. July 2021, July 16, 2021, July 19, 2021. September 30, 2021 — September 30, 2021 December 31, 2020 three September 30, 2021 nine September 30, 2021 three nine September 30, 2020. In February 2021, 3iQ 820, 3iQ September 30, 2021 three nine September 30, 2021 3iQ 1 |
Note 9 - Derivatives
Note 9 - Derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Derivatives and Fair Value [Text Block] | Note 9 Derivatives The breakdown of the Company's derivatives portfolio, including their respective maturity, as of September 30, 2021 December 31, 2020 September 30, 2021 December 31, 2020 Type of Derivative Notional Amount Fair Value Notional Amount Fair Value Covered call options $ — $ — $ 3,585,500 $ (2,270,496 ) Digital asset swaps 131,036,772 654,315 — — $ 131,036,772 $ 654,315 $ 3,585,500 $ (2,270,496 ) September 30, 2021 December 31, 2020 Term to Maturity Term to Maturity Type of Derivative Within 1 year 1 through 5 years Over 5 years Within 1 year 1 through 5 years Over 5 years Covered call options $ — $ — $ — $ 2,270,496 $ — $ — Digital asset swaps 654,315 — — — — — $ 654,315 $ — $ — $ 2,270,496 $ — $ — Covered Call Options The covered call options are deemed to be Level 3 one September 30, 2021. December 31, 2020 December 31, 2020. The changes in covered call options (Level 3 nine September 30, 2021 Balance at December 31, 2020 $ 2,270,496 Fair value adjustment 2,358,364 Repurchase of covered call options (4,628,860 ) Balance at September 30, 2021 $ — For the three nine September 30, 2021, — — three nine September 30, 2021, three nine September 30, 2020. Digital Asset Options The digital asset options are deemed to be Level 3 one December 31, 2020. September 30, 2021. The changes in digital asset options (Level 3 nine September 30, 2021 Balance at December 31, 2020 $ — Fair value adjustment (2,173,486 ) Close digital asset options position 2,173,486 Balance at September 30, 2021 $ — For the nine September 30, 2021, — three September 30, 2021, three nine September 30, 2020. Digital Asset Swaps The digital asset swaps are deemed to be Level 1 December 31, 2020. September 30, 2021. For the three nine September 30, 2021, three nine September 30, 2020. |
Note 10 - Collateral Receivable
Note 10 - Collateral Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Collateral Receivables [Text Block] | Note 10 Digital Asset Collateral Receivable In June 2020, 860, three nine September 30, 2021, three nine September 30, 2020, September 30, 2021 December 31, 2020, Cash Collateral Receivable In December 2020, September 30, 2021 December 31, 2020, — |
Note 11 - Notes Payable
Note 11 - Notes Payable | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Short-term Debt [Text Block] | Note 11 Notes Payable The following table summarizes the Company's notes payable: September 30, 2021 Currency Balance as of December 31, 2020 Notes Issued Note Payments Balance as of September 30, 2021 Digital asset notes payable Fixed Term Loan of Virtual Currency I USDC $ 8,500,000 $ — $ — $ 8,500,000 Fixed Term Loan of Virtual Currency II USDC — 1,800,000 (1,800,000 ) 2 — Fixed Term Loan of Virtual Currency III USDC — 1,200,000 (1,200,000 ) — Fixed Term Loan of Virtual Currency IV USDC — 1,000,000 (1,000,000 ) — Fixed Term Loan of Virtual Currency V USDC — 1,000,000 (1,000,000 ) — Fixed Term Loan of Virtual Currency VI BUSD — 50,000,000 — 50,000,000 Open Term Loans of Virtual Currency I USDC — 12,700,000 (2,700,000 ) 10,000,000 Open Term Loan of Virtual Currency II USDC — 2,200,000 (2,200,000 ) — Open Term Loan of Virtual Currency III USDC — 6,250,000 — 6,250,000 Open Term Loans USD — 29,900,000 (5,000,000 ) 24,900,000 Fixed Term Loan I USD — 7,878,000 (7,878,000 ) 3 — Fixed Term Loan IV USD — 1,510,500 (1,510,500 ) — Fixed Term Loan V USD — 2,016,000 (2,016,000 ) — Fixed Term Loan VI USD — 4,080,000 (4,080,000 ) — Fixed Term Loan VII (fka Fixed Term Loan II & III) USD — 3,211,200 (3,211,200 ) — Virtual Currency Line of Credit BTC/ETH — 16,035,320 — 16,035,320 Total digital asset notes payable 8,500,000 140,781,020 (33,595,700 ) 115,685,320 Paycheck Protection Program Note Payable USD 1,199,900 — — 1,199,900 Participation Agreement Note Payable USD 1,830,054 4 5,749,485 (2,250,539 ) 5,329,000 Credit Facility Note Payable USD — 2,925,524 (2,925,524 ) — Total notes payable $ 11,529,954 $ 149,456,029 $ (38,771,763 ) $ 122,214,220 2 3 4 December 31, 2020, Future principal repayments are as follows: Amount Remainder of 2021 $ 50,000,000 2022 5,329,000 Other 5 66,885,220 Total $ 122,214,220 Digital Asset Notes Payable As of September 30, 2021 December 31, 2020, nine September 30, 2021 September 30, 2020, — three September 30, 2021 2020, — September 30, 2021 December 31, 2020, — Virtual Currency Line of Credit On July 31, 2021, September 30, 2021, September 30, 2021 three nine September 30, 2021, Paycheck Protection Program Note Payable In May 2020, 116 136 may September 30, 2021 December 31, 2020, September 30, 2021 not For the nine September 30, 2021 September 30, 2020, three September 30, 2021 2020, September 30, 2021 December 31, 2020, Participation Agreement Note Payable On July 22, 2020, not 860. not September 30, 2021 December 31, 2020, September 30, 2021 December 31, 2020, 360 three September 30, 2021 2020, nine September 30, 2021 2020, January 22, 2021. January 22, 2021, April 22, 2021 April 22, 2021, July 22, 2021 May 22, 2021, February 22, 2022 July 2021, August 2021, no September 2021, no 5 Credit Facility Note Payable Starting in February 2021, May 2021. not three nine September 30, 2021, — May 2021. |
Note 12 - Digital Assets Payabl
Note 12 - Digital Assets Payable | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Digital Assets Payable [Text Block] | Note 12 In December 2020, 10 May 2021, 58 nine September 30, 2021, July 2021, September 30, 2021, July 2021, One July 2021. September 30, 2021, September 30, 2021 December 31, 2020 three nine September 30, 2021, |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 13 Commitments and Contingencies Lease Commitments Lease agreements are evaluated to determine if they are capital leases meeting any of the following criteria at inception: (a) transfer of ownership; (b) bargain purchase option; (c) the lease term is equal to 75 90 The Company entered into an operating lease for a portion of the 11th 1875 1100, “1875 1875 March 31, 2018, February 29, 2024 The Company entered into a sublease for the 1875 July 1, 2018, February 29, 2024 “1875 The Company entered into an operating lease for the 42nd 707 17th 4200, “707 17th 707 17th July 30, 2018, January 1, 2025 one The Company entered into an operating lease for the 3rd 1, May 15, 2018, May 14, 2021 After the Company relocated its main office from the 1875 707 17th 1875 no 2024. 1875 On September 1, 2021, April 24, 2018 ( 707 17th 4200, October 1, 2021 January 31, 2025, March 1, 2022 nine September 30, 2021, The Sublease is subordinate to the Master Lease, and the Subtenant must comply with all applicable terms of the Master Lease, and the Company must comply with all monetary obligations under the Master Lease. The Subtenant must provide a letter of credit to the Master Landlord equal initially to $680,000 and pay a security deposit to the Company of $80,823 to secure its obligations under the Sublease. The Company’s letter of credit issued to the Master Landlord pursuant to the Master Lease was reduced to $510,000. Rent expense is recorded on the straight-line basis. Rent expense in excess of amounts paid is recognized as deferred rent. The table below represents rent expense by office: Three Months Ended September 30, Nine Months Ended September 30, Office 2021 2020 2021 2020 707 17th Street $ 266,474 $ 247,732 $ 780,766 $ 734,731 1875 Lawrence Street 58,096 56,400 172,593 168,353 NeXTeracom Tower 1. Ebene CyberCity, Mauritius 7,147 7,675 22,255 22,416 Less: 1875 Lawrence Street sublease (58,096 ) (56,400 ) (172,593 ) (168,353 ) Total rent expense (net of sublease) $ 273,621 $ 255,407 $ 803,021 $ 757,147 Rent expense is recorded in selling, general, and administrative expense in the Unaudited Condensed Consolidated Statements of Operations. Deferred rent as of September 30, 2021 December 31, 2020 Litigation From time to time, the Company may may Regulatory Compliance The Company is subject to various regulatory requirements from individual state regulators, the Consumer Financial Protection Bureau (the “CFPB”), the SEC, as well as other federal and state authorities. On February 5, 2018, 5 5 17 1933 10 15 10b 5 March 6, 2018, On September 30, 2020, Pursuant to the Settlement Order, the Company agreed to the following: • File a Form 10 13 1934 one 10 • Distribute a refund claim form to any person or entity that purchased Salt Tokens in the Initial Coin Offering (“ICO”) before and including December 31, 2019 • Provide monthly reports to the SEC which include the amount of the claims paid, and any claims not • Pay a penalty of $250,000 to the SEC • Submit to the SEC a final report of its handling of all claims received within seven 10 In conjunction with the Settlement Order with the SEC, parties who obtained Salt Tokens from the Company on or before December 31, 2019 ( 60 10 10 three three January 12, 2022. The total amount of digital assets received in the ICO from the Potential Salt Token Claimants, less amounts previously refunded, was $44.4 million which, upon receipt, was recorded as a Salt Token liability in the accompanying Unaudited Condensed Consolidated Balance Sheets. The amount of interest the Company will be obligated to pay is dependent on the amount of valid refund claims submitted by the Potential Salt Token Claimants. As a result, the Company is unable to reasonably estimate the amount of interest that will be paid and has not In addition, if certain holders of Salt Tokens affirmatively reject or fail to accept the offer pursuant to claims process, they may 1933 may may not may may may September 30, 2021, not Surety Bonds During the normal course of business, the Company must purchase surety bonds in connection with certain required state and local licenses and regulations. As of September 30, 2021, December 31, 2020, no three nine September 30, 2021, Indemnification The Company has provided certain indemnifications during the normal course of business to individuals and counterparties when they act in good faith and in the best interest of the Company. The Company is unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim but expects the risk of having to make any payments under these general business indemnifications to be remote and therefore does not |
Note 14 - Risk and Uncertaintie
Note 14 - Risk and Uncertainties | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 14 Risk and Uncertainties The Company's investing activities expose it to various types of risk that are associated with the financial instruments and markets in which it invests. The significant types of financial risks to which the Company is exposed include, but are not Concentration Risk The Company participates in a limited number of investments and, as a consequence, the aggregate return of the Company may As of September 30, 2021, 3iQ December 31, 2020, As of September 30, 2021 two December 31, 2020, one The Company had three borrowers representing 32%, 19%, and 10% of the Company's total interest income for the three September 30, 2021, nine September 30, 2021. three September 30, 2020, nine September 30, 2020. |
Note 15 - Related Party Transac
Note 15 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 15 Related Party Transactions On April 11, 2019, April 12, 2019 September 2021, 409A September 30, 2021, December 31, 2020, — On September 10, 2021, April 11, 2019. Under the A&R Release Agreement, the price the Company must pay for these shares upon exercise of such option was modified to be the price determined by an independent valuation firm based on its fair market valuation of the Company under Section 409A not Upon execution of the A&R Release Agreement, the Company no September 10, 2021; The changes in the settlement liability (Level 3 nine September 30, 2021 Balance at December 31, 2020 $ 5,124,000 Change in fair value 1,000 Capital contribution (5,125,000 ) Balance at September 30, 2021 $ — During 2021 2020, As of September 30, 2021, seven November 15, 2021 June 15, 2022. December 31, 2020, six "APR") May 2021, APR During the three nine September 30, 2021, three nine September 30, 2020, |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 16 Subsequent Events The Company has evaluated subsequent events from the balance sheet date through December 23, 2021. USD Loans On October 12, 2021, 360 On October 19, 2021, 360 On November 4, 2021, two 360 On November 9, 2021, 360 On November 15, 2021, 360 On November 29, 2021, 360 On December 7, 2021, 360 On December 14, 2021, Digital Assets Notes Payable On December 6, 2021, PPP Loan Payable On December 15, 2021, not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation and principles of consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) within its Accounting Standards Codification (“ASC”) and under the rules and regulations of the SEC for interim financial information. Accordingly, they do not not These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Form 10 12 1934, September 10, 2021 ( 10” These accompanying unaudited interim condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The Company’s subsidiaries are entities in which the Company holds, directly or indirectly, more than 50% The Company accounts for immaterial prior period misstatements as adjustments to opening equity in the current period. Subsequent to the issuance of the Company’s quarterly financial statements for the three six June 30, 2021, July 1, 2021. There were no 3, 10, |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The most significant accounting estimates inherent in the preparation of the Company's financial statements include the fair values of repledged borrowers’ digital asset collateral, intangible asset impairment, fair value of contingent consideration related to asset acquisitions, valuation on digital asset derivative options, allowance for loan loss reserve, settlement liability, stock-based compensation, common stock valuation, cash flow assumptions regarding going concern considerations, and deferred tax valuation allowance. Actual results could differ from those estimates. |
Business Combinations Policy [Policy Text Block] | Business combinations The results of businesses acquired in a business combination are included in the Company’s unaudited interim condensed consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at their estimated fair values on the acquisition date. Any excess consideration over the fair value of identifiable assets acquired and liabilities assumed is recognized as goodwill. Acquisition-related costs incurred by the Company are recognized as an expense in general and administrative expenses within the consolidated statements of operations. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may one not may |
Asset Acquisitions [Policy Text Block] | Asset acquisitions An asset acquisition is an acquisition of an asset, or a group of assets, that does not |
Derivatives, Policy [Policy Text Block] | Derivatives As part of its trading activities, the Company enters into derivative contracts. Derivatives are instruments that derive their value from changes in an underlying reference outside the control of the Company (which can be foreign exchange rates or the price of a digital asset). The most frequently used derivatives by the Company are digital asset swaps, digital asset options, and covered call options: • Digital asset swaps - a digital asset swap is an exchange traded contract which represents a legal agreement to either buy or sell digital assets at a predetermined price at some time in the future. Depending on contract specifications, swaps can be settled either in Bitcoin, Ethereum, a stablecoin (such as USDC or USDT) or cash. As of September 30, 2021 December 31, 2020, — 9 • Digital asset options - a digital asset option is an OTC traded contract, which gives the holder the right, but not not 815, Derivatives and Hedging 815" September 30, 2021 December 31, 2020. • Covered call options - periodically, the Company will sell options on digital assets that it owns (referred to as "covered call options"). These option transactions are designed primarily to provide additional income on a portion of the digital assets. The Company uses covered call options for trading purposes. These options do not 815, Derivatives and Hedging 815" December 31, 2020 9 September 30, 2021. |
Borrower Collateral and Custody Assets [Policy Text Block] | Borrower Collateral and Custody Assets The Company is a loan originator and services loans to borrowers. The Company requires loans to have certain collateral levels at origination and throughout the term of the loan. The loan agreement with the borrower specifies that the borrower grants the Company, as lender, a first not not not When a transfer of digital assets does not 310, Receivables 310” |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Long-Lived Assets and Finite-Lived Intangible Assets Long-lived assets, other than goodwill and other indefinite-lived intangibles, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not not For the periods presented, the Company determined that digital assets should be accounted for under ASC 350, no not not not. not The Company recorded impairment charges of $12,455,593 and $1,297,131 for the three September 30, 2021 2020, nine September 30, 2021 2020, |
Salt Tokens [Policy Text Block] | Salt Tokens Starting in June 2017, 20 From June 2017 December 2017, 2017, December 31, 2017, August 2019. 2018 2019, August 2019, not September 2020, 2017 2020, The total amount received in the ICO from the Potential Salt Token Claimants was approximately $47.1 million, which, upon receipt, was initially recorded as a Salt Token liability in the accompanying Unaudited Condensed Consolidated Balance Sheets. The total payments related to the claims process could exceed the Salt Token liability reported in our Unaudited Condensed Consolidated Balance Sheets, however, a reasonable estimate of the possible losses or range of possible losses cannot be made at this time. The Company believes that the maximum amount payable is the amount received in the ICO less amounts previously refunded (totaling approximately $44.4 million) plus interest. In 2017, August 2018, not 2019, may As of October 31, 2021, October 31, 2021, third October 31, 2021, The issuance of the Salt Tokens in the ICO was not not 1933, 8A September 30, 2020. 5 • Issue a press release within 14 • File the Form 10 120 105 • Distribute and post on our website a refund claim form no 60 10, seven 10 August 28, 2021; • Commencing 30 three 10 six 10 • Submit to the SEC a final report of the Company's handling of all claims received within seven 10; • Maintain timely filing of all reports required by Section 13 10 12g 4 • Pay the amounts due under Section 12 three may 12 30 not • Pay a civil penalty of $250,000 The Company accounts for the SALT Tokens pursuant to ASC 610, Other Income 610 20, third not 606 10 55 22 25 September 2020); The SALT Token Liability on the Unaudited Consolidated Balance Sheets represents the aforementioned right of return (put feature) held at maximum redemption value, excluding interest, for the associated SALT Tokens, which represents the entity’s obligation to repurchase the SALT Units at the customer’s request. |
Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts [Policy Text Block] | Allowance for Loan Loss ASC 310, Receivables 310” 450 20, Contingencies Loss Contingencies 450” The process for determining the amount of the allowance requires subjective and complex judgments about the future, including forecasts of economic or market conditions that might impair the ability of our borrowers to repay their loans. Changes in economic conditions affecting borrowers, revisions to accounting rules and related guidance, new qualitative or quantitative information about existing loans, identification of additional problem loans, changes in the size or composition of our finance receivables and loan portfolio, changes to our loss estimation techniques including consideration of forecasted economic assumptions, and other factors, both within and outside of our control, may |
Interest Income [Policy Text Block] | Interest Income The Company provides U.S. Dollar loans collateralized by digital assets to a broad range of customers and generates revenue from interest income earned on loans. Revenue derived from interest income on loans is outside the scope of ASC 606, Revenue from Contracts with Customers 606” no may |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company follows Accounting Standards Codification subtopic 740 10, Income Taxes 740 10” not not not may September 30, 2021 December 31, 2020, 740, three nine September 30, 2021, nine September 30, 2020, 2020. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequences of the change to its unaudited interim condensed consolidated financial statements and assures that there are proper controls in place to ascertain that the Company's unaudited interim condensed consolidated financial statements properly reflect the change. As of September 30, 2021, no December 31, 2020. |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | September 30, 2021 December 31, 2020 Fair Value Measurements Fair Value Measurements Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Equity securities: Investments $ 8,287,512 $ — $ — $ — $ 32,685,804 $ — Collateral receivable 37,380,589 (1) — — — — — Total equity securities 45,668,101 — — — 32,685,804 — Derivatives: Digital asset swaps 654,315 — — — — — Total assets $ 46,322,416 $ — $ — $ — $ 32,685,804 $ — Liabilities Derivatives: Covered call options — — — — — 2,270,496 Digital asset options — — — — — — Total derivatives — — — — — 2,270,496 Other: Digital assets payable — 27,423,371 — — 4,348,512 — Collateral due to customer — 131,240,726 — — 39,547,465 — Settlement liability — — — — — 5,124,000 Total liabilities $ — $ 158,664,097 $ — $ — $ 43,895,977 $ 7,394,496 |
Note 5 - Collateralized Loans_2
Note 5 - Collateralized Loans Receivable and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Financing Receivables, Minimum Payments [Table Text Block] | Principal Payments As Of Receipt of Payments September 30, 2021 December 31, 2020 0 to 12 months $ 39,423,833 $ 15,271,554 12 to 24 months 10,045,565 1,982,471 24 to 36 months 860,000 3,000,000 Total $ 50,329,398 $ 20,254,025 |
Schedule of Collateral Received by Type [Table Text Block] | Collateral Type September 30, 2021 December 31, 2020 BTC $ 117,290,803 $ 46,062,070 ETH 23,357,794 10,040,956 SALT 213,346 1,285,556 LTC 936,526 985,747 DASH 367,471 590,487 BCH 1,290,006 508,179 XRP 497,918 444,691 Other 3,593,525 308,766 Total $ 147,547,389 $ 60,226,452 Loan Type September 30, 2021 December 31, 2020 Consumer $ 89,709,553 $ 41,378,056 Business 57,837,836 18,848,396 Total $ 147,547,389 $ 60,226,452 |
Schedule of Customer Securities for which Entity has Right to Sell or Repledge [Table Text Block] | Activity Collateral Type September 30, 2021 December 31, 2020 Repledged for investing BTC $ 56,393,662 $ 26,091,072 Repledged for investing ETH 8,557,442 1,106,909 Repledged for investing USDC 710,553 — Repledged for financing BTC 56,356,160 12,349,484 Repledged for financing ETH 3,741,660 — Repledged for financing USDC 3,235,879 — Repledged for financing Other 2,245,370 — Total $ 131,240,726 $ 39,547,465 |
Note 6 - Digital Assets, Net (T
Note 6 - Digital Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | Asset Estimated Useful Life Gross Carrying Amount Impairment Reserve Digital Assets, Net Digital asset holdings Indefinite $ 83,591,229 $ (12,711,529 ) $ (18,052 ) 70,861,648 Asset Estimated Useful Life Gross Carrying Amount Impairment Reserve Digital Assets, Net Digital asset holdings Indefinite $ 5,275,598 $ (1,079,833 ) $ (32,642 ) $ 4,163,123 January 1, 2020 $ 1,982,555 Acquisitions 60,073,526 Disposals (50,137,806 ) Impairment (7,755,152 ) December 31, 2020 $ 4,163,123 Acquisitions 210,499,180 Disposals (127,931,196 ) Impairment (15,869,459 ) September 30, 2021 $ 70,861,648 |
Note 9 - Derivatives (Tables)
Note 9 - Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Derivative Instruments [Table Text Block] | September 30, 2021 December 31, 2020 Type of Derivative Notional Amount Fair Value Notional Amount Fair Value Covered call options $ — $ — $ 3,585,500 $ (2,270,496 ) Digital asset swaps 131,036,772 654,315 — — $ 131,036,772 $ 654,315 $ 3,585,500 $ (2,270,496 ) September 30, 2021 December 31, 2020 Term to Maturity Term to Maturity Type of Derivative Within 1 year 1 through 5 years Over 5 years Within 1 year 1 through 5 years Over 5 years Covered call options $ — $ — $ — $ 2,270,496 $ — $ — Digital asset swaps 654,315 — — — — — $ 654,315 $ — $ — $ 2,270,496 $ — $ — |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Balance at December 31, 2020 $ 2,270,496 Fair value adjustment 2,358,364 Repurchase of covered call options (4,628,860 ) Balance at September 30, 2021 $ — Balance at December 31, 2020 $ — Fair value adjustment (2,173,486 ) Close digital asset options position 2,173,486 Balance at September 30, 2021 $ — |
Note 11 - Notes Payable (Tables
Note 11 - Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 30, 2021 Currency Balance as of December 31, 2020 Notes Issued Note Payments Balance as of September 30, 2021 Digital asset notes payable Fixed Term Loan of Virtual Currency I USDC $ 8,500,000 $ — $ — $ 8,500,000 Fixed Term Loan of Virtual Currency II USDC — 1,800,000 (1,800,000 ) 2 — Fixed Term Loan of Virtual Currency III USDC — 1,200,000 (1,200,000 ) — Fixed Term Loan of Virtual Currency IV USDC — 1,000,000 (1,000,000 ) — Fixed Term Loan of Virtual Currency V USDC — 1,000,000 (1,000,000 ) — Fixed Term Loan of Virtual Currency VI BUSD — 50,000,000 — 50,000,000 Open Term Loans of Virtual Currency I USDC — 12,700,000 (2,700,000 ) 10,000,000 Open Term Loan of Virtual Currency II USDC — 2,200,000 (2,200,000 ) — Open Term Loan of Virtual Currency III USDC — 6,250,000 — 6,250,000 Open Term Loans USD — 29,900,000 (5,000,000 ) 24,900,000 Fixed Term Loan I USD — 7,878,000 (7,878,000 ) 3 — Fixed Term Loan IV USD — 1,510,500 (1,510,500 ) — Fixed Term Loan V USD — 2,016,000 (2,016,000 ) — Fixed Term Loan VI USD — 4,080,000 (4,080,000 ) — Fixed Term Loan VII (fka Fixed Term Loan II & III) USD — 3,211,200 (3,211,200 ) — Virtual Currency Line of Credit BTC/ETH — 16,035,320 — 16,035,320 Total digital asset notes payable 8,500,000 140,781,020 (33,595,700 ) 115,685,320 Paycheck Protection Program Note Payable USD 1,199,900 — — 1,199,900 Participation Agreement Note Payable USD 1,830,054 4 5,749,485 (2,250,539 ) 5,329,000 Credit Facility Note Payable USD — 2,925,524 (2,925,524 ) — Total notes payable $ 11,529,954 $ 149,456,029 $ (38,771,763 ) $ 122,214,220 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Amount Remainder of 2021 $ 50,000,000 2022 5,329,000 Other 5 66,885,220 Total $ 122,214,220 |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, Office 2021 2020 2021 2020 707 17th Street $ 266,474 $ 247,732 $ 780,766 $ 734,731 1875 Lawrence Street 58,096 56,400 172,593 168,353 NeXTeracom Tower 1. Ebene CyberCity, Mauritius 7,147 7,675 22,255 22,416 Less: 1875 Lawrence Street sublease (58,096 ) (56,400 ) (172,593 ) (168,353 ) Total rent expense (net of sublease) $ 273,621 $ 255,407 $ 803,021 $ 757,147 |
Note 15 - Related Party Trans_2
Note 15 - Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Tables | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Balance at December 31, 2020 $ 5,124,000 Change in fair value 1,000 Capital contribution (5,125,000 ) Balance at September 30, 2021 $ — |
Note 2 - Going Concern (Details
Note 2 - Going Concern (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2017 | |
Retained Earnings (Accumulated Deficit), Ending Balance | $ (96,250,843) | $ (96,250,843) | $ (53,507,850) | |||
Operating Income (Loss), Total | (16,521,614) | $ (4,397,226) | (27,033,834) | $ (14,623,884) | ||
Salt Token Liability | $ 44,359,677 | $ 44,359,677 | $ 44,364,316 | $ 47,100,000 |
Note 3 - Summary of Significa_2
Note 3 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 48 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($) | Oct. 31, 2021 | |
Derivative Asset, Total | $ 654,315 | $ 654,315 | $ 0 | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 12,455,593 | $ 1,297,131 | $ 15,869,459 | $ 3,743,849 | |||||
Number of Salt Tokens | 120,000,000 | 120,000,000 | |||||||
Number of Salt Tokens Exchanged for Digital Assets and Cash | 57,200,000 | ||||||||
Value of Salt Tokens Exchange for Digital Assets and Cash | $ 47,100,000 | ||||||||
Number of Salt Tokens Issued for Convertible Note and Compensation | 17,000,000 | ||||||||
Number of Salt Tokens Sold | 1,600,000 | 1,500,000 | |||||||
Proceeds from Sale of Salt Tokens | $ 200,000 | $ 1,100,000 | |||||||
Number of Salt Tokens Refunded | 2,900,000 | ||||||||
Payments for Salt Tokens Refunds | $ 3,800,000 | ||||||||
Salt Token Liability | $ 44,359,677 | $ 44,359,677 | $ 47,100,000 | 44,364,316 | |||||
Unrecognized Tax Benefits, Ending Balance | 11,158,789 | 11,158,789 | 14,711,816 | ||||||
Income Tax Expense (Benefit), Total | 436,269 | $ (31,592) | (3,254,950) | $ 2,047,402 | |||||
Subsequent Event [Member] | |||||||||
Number of Salt Tokens Held on Platform by Users | 21,300,000 | ||||||||
Number of Salt Tokens Held as Collateral for Active Loans | 1,400,000 | ||||||||
Number of Salt Tokens Held by Third-parties Off Platform | 52,700,000 | ||||||||
Number of Salt Tokens Held in Treasury | 46,100,000 | ||||||||
Digital Asset Swaps [Member] | |||||||||
Derivative Asset, Total | $ 654,315 | $ 654,315 | $ 0 | ||||||
Derivative, Number of Instruments Held, Total | 0 | 0 | 0 | 0 | |||||
Digital Assets Options [Member] | |||||||||
Derivative, Number of Instruments Held, Total | 0 | 0 | 0 | 0 | 0 | ||||
Covered Call Options [Member] | |||||||||
Derivative, Number of Instruments Held, Total | 0 | 0 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurement (Details Textual) | Sep. 30, 2021USD ($) |
Collateral Receivable, Fair Value of Shares Repledged | $ 37,380,589 |
Collateral Receivable, Digital Assets Repledged and Held at Cost | $ 80,072,938 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | |
Collateral receivable | $ 37,380,589 | ||
Digital asset derivatives - swaps | 654,315 | $ 0 | |
Total derivatives | 2,270,496 | ||
Digital Asset Swaps [Member] | |||
Digital asset derivatives - swaps | 654,315 | 0 | |
Covered Call Options [Member] | |||
Total derivatives | 0 | 2,270,496 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Investments | 8,287,512 | 0 | |
Collateral receivable | 37,380,589 | [1] | 0 |
Total equity securities | 45,668,101 | 0 | |
Total assets | 46,322,416 | 0 | |
Total derivatives | 0 | 0 | |
Digital assets payable | 0 | 0 | |
Collateral due to customer | 0 | 0 | |
Settlement liability | 0 | 0 | |
Total liabilities | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Digital Asset Swaps [Member] | |||
Digital asset derivatives - swaps | 654,315 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Covered Call Options [Member] | |||
Total derivatives | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Digital Assets Options [Member] | |||
Total derivatives | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Investments | 0 | 32,685,804 | |
Collateral receivable | 0 | 0 | |
Total equity securities | 0 | 32,685,804 | |
Total assets | 0 | 32,685,804 | |
Total derivatives | 0 | 0 | |
Digital assets payable | 27,423,371 | 4,348,512 | |
Collateral due to customer | 131,240,726 | 39,547,465 | |
Settlement liability | 0 | 0 | |
Total liabilities | 158,664,097 | 43,895,977 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Digital Asset Swaps [Member] | |||
Digital asset derivatives - swaps | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Covered Call Options [Member] | |||
Total derivatives | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Digital Assets Options [Member] | |||
Total derivatives | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Investments | 0 | 0 | |
Collateral receivable | 0 | 0 | |
Total equity securities | 0 | 0 | |
Total assets | 0 | 0 | |
Total derivatives | 0 | 2,270,496 | |
Digital assets payable | 0 | 0 | |
Collateral due to customer | 0 | 0 | |
Settlement liability | 0 | 5,124,000 | |
Total liabilities | 0 | 7,394,496 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Digital Asset Swaps [Member] | |||
Digital asset derivatives - swaps | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Covered Call Options [Member] | |||
Total derivatives | 0 | 2,270,496 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Digital Assets Options [Member] | |||
Total derivatives | $ 0 | $ 0 | |
[1] | $37,380,589 represents the fair value of GBTC shares repledged. The remaining $80,072,938 balance in collateral receivable represents digital assets repledged and held at cost. |
Note 5 - Collateralized Loans_3
Note 5 - Collateralized Loans Receivable and Allowance for Loan Losses (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Digital Assets, Collateral Due to Customer | $ 131,240,726 | $ 131,240,726 | $ 39,547,465 | ||
Financing Receivable, Default Trigger Threshold, Loan to Value Ratio, Percentage | 90.91% | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 753,153 | $ 201,684 | $ 2,852,878 | $ 830,482 | |
Number of Loans Over Default Trigger Value, Loan to Value Ratio | 12 | 12 | |||
Financing Receivable, Over Default Trigger Value, Loan to Value Ratio, Unpaid Principal Balance | $ 2,236,866 | $ 2,236,866 | 0 | ||
Interest Receivable | 148,977 | $ 148,977 | 32,520 | ||
Financing Receivable, Margin Call Trigger Threshold, Loan to Value Ratio, Percentage | 83.33% | ||||
Financing Receivable, Margin Call Cure, Loan to Value Ratio, Percentage | 70.00% | ||||
Digital Assets Held as Collateral | $ 147,547,389 | $ 147,547,389 | $ 60,226,452 | ||
Loans Receivable, Number Over 100% LTV | 3 | 3 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 0 | $ 0 | $ 0 | ||
Stabilization and Liquidation Fees [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 10,182 | $ 0 | $ 906,330 | $ 137,980 | |
Minimum [Member] | |||||
Liquidation Fees, Percentage | 0.00% | ||||
Loan to Value Ratio | 4.26% | 1.81% | |||
Maximum [Member] | |||||
Liquidation Fees, Percentage | 5.00% | ||||
Loan to Value Ratio | 101.38% | 73.80% |
Note 5 - Collateralized Loans_4
Note 5 - Collateralized Loans Receivable and Allowance for Loan Losses - Loans Receivables by Expected Future Cash Flows (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
0 to 12 months | $ 39,423,833 | $ 15,271,554 |
12 to 24 months | 10,045,565 | 1,982,471 |
24 to 36 months | 860,000 | 3,000,000 |
Total | $ 50,329,398 | $ 20,254,025 |
Note 5 - Collateralized Loans_5
Note 5 - Collateralized Loans Receivable and Allowance for Loans Receivable - Summary of Total Collateral Received (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Collateral | $ 147,547,389 | $ 60,226,452 |
Consumer Portfolio Segment [Member] | ||
Collateral | 89,709,553 | 41,378,056 |
Commercial Portfolio Segment [Member] | ||
Collateral | 57,837,836 | 18,848,396 |
Bitcoin [Member] | ||
Collateral | 117,290,803 | 46,062,070 |
Ethereum [Member] | ||
Collateral | 23,357,794 | 10,040,956 |
SALT [Member] | ||
Collateral | 213,346 | 1,285,556 |
Litecoin [Member] | ||
Collateral | 936,526 | 985,747 |
Dash [Member] | ||
Collateral | 367,471 | 590,487 |
Bitcoin Cash [Member] | ||
Collateral | 1,290,006 | 508,179 |
XRP [Member] | ||
Collateral | 497,918 | 444,691 |
Other Digital Asset Holdings [Member] | ||
Collateral | $ 3,593,525 | $ 308,766 |
Note 5 - Collateralized Loans_6
Note 5 - Collateralized Loans Receivable and Allowance for Loans Receivable - Summary of Collateral Repledged (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Repledged | $ 131,240,726 | $ 39,547,465 |
Bitcoin [Member] | ||
Repledged for investing | 56,393,662 | 26,091,072 |
Repledged for financing | 56,356,160 | 12,349,484 |
Ethereum [Member] | ||
Repledged for investing | 8,557,442 | 1,106,909 |
Repledged for financing | 3,741,660 | 0 |
USD Coin [Member] | ||
Repledged for investing | 710,553 | 0 |
Repledged for financing | 3,235,879 | 0 |
Other Digital Asset Holdings [Member] | ||
Repledged for financing | $ 2,245,370 | $ 0 |
Note 6 - Digital Assets, Net (D
Note 6 - Digital Assets, Net (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 12,455,593 | $ 1,297,131 | $ 15,869,459 | $ 3,743,849 |
Note 6 - Digital Assets, Net -
Note 6 - Digital Assets, Net - Digital Asset Holdings (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Digital asset holdings | $ 70,861,648 | $ 70,861,648 | $ 4,163,123 | ||
Balance | 4,163,123 | ||||
Impairment | (12,455,593) | $ (1,297,131) | (15,869,459) | $ (3,743,849) | |
Balance | 70,861,648 | 70,861,648 | 4,163,123 | ||
Digital Asset Holdings [Member] | |||||
Digital asset holdings, gross carrying amount | 83,591,229 | 83,591,229 | 5,275,598 | ||
Digital asset holdings, impairment | (12,711,529) | (12,711,529) | (1,079,833) | ||
Digital asset holdings, reserve | (18,052) | (18,052) | (32,642) | ||
Digital asset holdings | 70,861,648 | 70,861,648 | 4,163,123 | ||
Balance | 4,163,123 | $ 1,982,555 | 1,982,555 | ||
Acquisitions | 210,499,180 | 60,073,526 | |||
Disposals | (127,931,196) | (50,137,806) | |||
Impairment | (15,869,459) | (7,755,152) | |||
Balance | $ 70,861,648 | $ 70,861,648 | $ 4,163,123 |
Note 7 - Harmonic Acquisition (
Note 7 - Harmonic Acquisition (Details Textual) - USD ($) | May 17, 2021 | Apr. 06, 2021 | Jan. 19, 2021 | Apr. 30, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Research and Development Expense, Total | $ 0 | $ 0 | $ 766,151 | $ 0 | |||||||
Stock Issued During Period, Value, Acquisitions | $ 0 | ||||||||||
Gain (Loss) on Forgiveness of Incentive Allocation Fees Payable | 291,744 | 0 | |||||||||
Harmonic Technologies LLC [Member] | |||||||||||
Investment Incentive Allocation Fee to Net Profits of Assets Invested | 25.00% | ||||||||||
Investment Incentive Allocation Fee Expense | 0 | $ 0 | 0 | $ 0 | |||||||
Payment of Accrued Incentive Allocation Fee | 31,551 | ||||||||||
Harmonic Technologies LLC [Member] | Other Income [Member] | |||||||||||
Gain (Loss) on Forgiveness of Incentive Allocation Fees Payable | 291,744 | ||||||||||
Harmonic Technologies LLC [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||||||||
Accrued Investment Incentive Allocation Fee | $ 0 | $ 0 | $ 0 | $ 323,295 | |||||||
P3K LLC [Member] | Salt Blockchain Inc [Member] | |||||||||||
Ownership Percentage | 7.80% | 7.80% | 7.80% | ||||||||
Purchase of Harmonic Technologies LLC from P3K LLC [Member] | |||||||||||
Asset Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | 1,708,870 | ||||||||||
Stock Issued During Period, Shares, Acquisitions (in shares) | 427,217 | 427,218 | 0 | 854,435 | 854,435 | ||||||
Asset Acquisition, Consideration Transferred, Total | $ 766,151 | ||||||||||
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable | 624,737 | ||||||||||
Asset Acquisition, Consideration Transferred, Transaction Cost | $ 141,414 | ||||||||||
Research and Development Expense, Total | $ 0 | $ 766,151 | |||||||||
Stock Issued During Period, Value, Acquisitions | 316,466 | ||||||||||
Asset Acquisition, Contingent Consideration, Liability, Total | $ 308,271 | $ 308,271 | $ 308,271 | ||||||||
Asset Acquisition, Consideration, Percentage Gross Trading Profits | 40.00% | ||||||||||
Asset Acquisition, Consideration, Maximum Gross Trading Profits to be Paid | $ 1,500,000 |
Note 8 - Investments (Details T
Note 8 - Investments (Details Textual) Pure in Thousands | Jul. 19, 2021shares | Jul. 16, 2021shares | Feb. 28, 2021shares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($)shares | Jul. 09, 2021shares | Dec. 31, 2020USD ($) |
Collateral Receivable, Fair Value of Shares Repledged | $ 37,380,589 | $ 37,380,589 | |||||||
Equity Securities, FV-NI, Current | 8,287,512 | 8,287,512 | $ 32,685,804 | ||||||
Unrealized Gain (Loss) on Investments, Total | $ 13,729,918 | $ 48,661 | $ 17,165,582 | $ 48,661 | |||||
Bitcoin [Member] | |||||||||
Investment Owned, Balance, Shares (in shares) | shares | 97 | ||||||||
Equity Securities, Shares Received (in shares) | shares | 55 | 440 | |||||||
Grayscale Bitcoin Trust [Member] | |||||||||
Investment Owned, Balance, Shares (in shares) | shares | 0 | 0 | 0 | 0 | |||||
Collateral Receivable, Fair Value of Shares Repledged | $ 37,380,589 | $ 37,380,589 | |||||||
Equity Securities, FV-NI, Current | 30,861,387 | ||||||||
Unrealized Gain (Loss) on Investments, Total | $ 11,156,009 | $ 12,754,256 | |||||||
Grayscale Ethereum Trust [Member] | |||||||||
Investment Owned, Balance, Shares (in shares) | shares | 4,135,420 | 0 | 4,135,420 | 0 | |||||
Equity Securities, FV-NI, Current | $ 1,824,417 | ||||||||
Unrealized Gain (Loss) on Investments, Total | $ 1,447,372 | $ 2,873,629 | |||||||
Investment Owned, Shares Invested (in shares) | shares | 1,500 | ||||||||
3iQ Ether Fund [Member] | |||||||||
Investment Owned, Balance, Shares (in shares) | shares | 84,702 | ||||||||
Equity Securities, FV-NI, Current | 4,152,092 | 4,152,092 | |||||||
Unrealized Gain (Loss) on Investments, Total | $ 1,126,537 | $ 1,537,697 | |||||||
Measurement Input, Discount Rate [Member] | |||||||||
Equity Securities, FV-NI, Measurement Input | 0 | 0 |
Note 9 - Derivatives (Details T
Note 9 - Derivatives (Details Textual) Pure in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Gain (Loss) on Sale of Derivatives | $ 0 | $ 0 | $ (2,173,486) | $ 0 | |
Unrealized Gain (Loss) on Derivatives | $ 654,315 | (666,143) | $ 654,315 | (144,049) | |
Covered Call Options [Member] | |||||
Derivative, Number of Instruments Held, Total | 0 | 0 | |||
Gain (Loss) on Sale of Derivatives | $ 0 | $ 173,678 | |||
Unrealized Gain (Loss) on Derivatives | $ 0 | $ 0 | $ (2,358,364) | $ 0 | |
Covered Call Options [Member] | Measurement Input, Exercise Price [Member] | |||||
Derivative Asset, Measurement Input | 17,750 | ||||
Digital Assets Options [Member] | |||||
Derivative, Number of Instruments Held, Total | 0 | 0 | 0 | 0 | 0 |
Gain (Loss) on Sale of Derivatives | $ 0 | $ (2,173,486) | |||
Digital Asset Swaps [Member] | |||||
Derivative, Number of Instruments Held, Total | 0 | 0 | 0 | 0 | |
Unrealized Gain (Loss) on Derivatives | $ 654,315 | $ 654,315 |
Note 9 - Derivatives - Derivati
Note 9 - Derivatives - Derivative Portfolio (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Notional amount | $ 131,036,772 | $ 3,585,500 |
Derivative liabilities, fair value | (2,270,496) | |
Derivative assets, fair value | 654,315 | 0 |
Covered call options, maturing within one year | 654,315 | 2,270,496 |
Covered call options, maturing one through five years | 0 | 0 |
Covered call options, maturing over five years | 0 | 0 |
Covered Call Options [Member] | ||
Notional amount | 0 | 3,585,500 |
Derivative liabilities, fair value | 0 | (2,270,496) |
Covered call options, maturing within one year | 0 | 2,270,496 |
Covered call options, maturing one through five years | 0 | 0 |
Covered call options, maturing over five years | 0 | 0 |
Digital Asset Swaps [Member] | ||
Notional amount | 131,036,772 | 0 |
Derivative assets, fair value | 654,315 | 0 |
Covered call options, maturing within one year | 654,315 | 0 |
Covered call options, maturing one through five years | 0 | 0 |
Covered call options, maturing over five years | $ 0 | $ 0 |
Note 9 - Derivatives - Fair Val
Note 9 - Derivatives - Fair Value (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Recurring [Member] | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Covered Call Options [Member] | |
Balance at December 31, 2020 | $ 2,270,496 |
Fair value adjustment | 2,358,364 |
Repurchase of covered call options | (4,628,860) |
Balance at September 30, 2021 | 0 |
Digital Assets Options [Member] | |
Balance at December 31, 2020 | 0 |
Fair value adjustment | (2,173,486) |
Balance at September 30, 2021 | 0 |
Close digital asset options position | $ 2,173,486 |
Note 10 - Collateral Receivab_2
Note 10 - Collateral Receivable (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value Adjustment on Repledged Collateral | $ (26,992,530) | $ (1,329,730) | $ (28,555,257) | $ (1,329,730) | |
Digital Asset Collateral Receivable | 117,453,527 | 117,453,527 | $ 5,273,763 | ||
Cash Collateral Receivable | $ 0 | $ 0 | $ 2,025,000 |
Note 11 - Notes Payable (Detail
Note 11 - Notes Payable (Details Textual) | May 22, 2021USD ($) | Apr. 22, 2021USD ($) | Jan. 22, 2021USD ($) | Jul. 31, 2021USD ($) | May 31, 2021 | Feb. 28, 2021shares | Dec. 31, 2020USD ($) | May 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Aug. 31, 2021USD ($) | Dec. 30, 2020USD ($) | Jul. 22, 2020 | |
Notes Payable, Total | $ 11,529,954 | $ 122,214,220 | $ 122,214,220 | |||||||||||||
Number of Bitcoin Borrowed | 3 | 58 | 150 | |||||||||||||
Collateral Receivable | $ 7,298,763 | 117,453,527 | 117,453,527 | |||||||||||||
Fair Value Adjustment on Loan Payable | (3,951,438) | $ 0 | (3,951,438) | $ 0 | ||||||||||||
Proceeds from Notes Payable, Total | 52,665,109 | 5,336,151 | ||||||||||||||
Repayments of Notes Payable | 26,071,763 | 2,895,000 | ||||||||||||||
Ethereum [Member] | ||||||||||||||||
Equity Securities, Shares Received (in shares) | shares | 1,700 | |||||||||||||||
Line of Credit [Member] | ||||||||||||||||
Interest Expense, Debt, Total | 0 | 60,020 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.02% | |||||||||||||||
Fixed Term Loan I [Member] | ||||||||||||||||
Repayments of Debt, Digital Assets Value | 4,600,000 | |||||||||||||||
Repayments of Debt | 3,278,000 | |||||||||||||||
Notes Payable, Total | 0 | 0 | 0 | |||||||||||||
Participation Agreement Notes Payable [Member] | ||||||||||||||||
Interest Payable | 30,054 | 13,168 | 13,168 | |||||||||||||
Notes Payable, Total | $ 5,700,000 | $ 2,700,000 | $ 3,000,000 | 1,830,054 | [1] | 5,329,000 | 5,329,000 | $ 5,138,000 | ||||||||
Interest Expense, Debt, Total | $ 145,942 | 50,053 | $ 314,075 | 71,379 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.00% | 9.00% | 9.25% | 13.00% | 13.00% | 13.00% | 9.00% | |||||||||
Long-term Debt, Gross | 1,800,000 | $ 5,329,000 | $ 5,329,000 | |||||||||||||
Increase (Decrease) in Notes Payable, Current, Total | $ 3,000,000 | $ (300,000) | $ 1,200,000 | |||||||||||||
Repayments of Notes Payable | $ 2,250,539 | |||||||||||||||
Digital Assets Notes Payable [Member] | ||||||||||||||||
Interest Payable | 0 | 1,038,578 | 1,038,578 | |||||||||||||
Notes Payable, Total | 8,500,000 | 115,685,320 | 115,685,320 | |||||||||||||
Interest Expense, Debt, Total | 2,328,493 | 0 | 3,126,685 | 0 | ||||||||||||
Virtual Currency Line of Credit [Member] | ||||||||||||||||
Interest Payable | 16,035,320 | 16,035,320 | ||||||||||||||
Notes Payable, Total | 0 | 16,035,320 | $ 16,035,320 | |||||||||||||
Number of Bitcoin Borrowed | 328 | |||||||||||||||
Number of ETH Borrowed | 561 | |||||||||||||||
Collateral Receivable | 12,083,883 | $ 12,083,883 | ||||||||||||||
Fair Value Adjustment on Loan Payable | 3,951,438 | 3,951,438 | ||||||||||||||
Virtual Currency Line of Credit [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |||||||||||||||
Virtual Currency Line of Credit [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | |||||||||||||||
Paycheck Protection Program CARES Act [Member] | ||||||||||||||||
Interest Payable | 8,054 | 17,030 | 17,030 | |||||||||||||
Notes Payable, Total | $ 1,199,900 | 1,199,900 | 1,199,900 | $ 1,199,900 | ||||||||||||
Interest Expense, Debt, Total | $ 3,059 | $ 3,024 | $ 8,975 | $ 5,030 | ||||||||||||
Proceeds from Notes Payable, Total | $ 1,199,900 | |||||||||||||||
[1] | As of December 31, 2020, the balance of the Participation Agreement includes accrued interest on the loan of $30,054. |
Note 11 - Notes Payable - Summa
Note 11 - Notes Payable - Summary of Notes Payable (Details) - USD ($) | 9 Months Ended | ||||||||
Sep. 30, 2021 | Aug. 31, 2021 | May 22, 2021 | Apr. 22, 2021 | Jan. 22, 2021 | Dec. 31, 2020 | Dec. 30, 2020 | |||
Notes payable | $ 122,214,220 | $ 11,529,954 | |||||||
Notes issued | 149,456,029 | ||||||||
Note payments | (38,771,763) | ||||||||
Fixed Term Loan of Virtual Currency [Member] | |||||||||
Notes payable | 8,500,000 | 8,500,000 | |||||||
Notes issued | 0 | ||||||||
Note payments | 0 | ||||||||
Fixed Term Loan of Virtual Currency II [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 1,800,000 | ||||||||
Note payments | [1] | (1,800,000) | |||||||
Fixed Term Loan of Virtual Currency III [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 1,200,000 | ||||||||
Note payments | (1,200,000) | ||||||||
Fixed Term Loan of Virtual Currency IV [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 1,000,000 | ||||||||
Note payments | (1,000,000) | ||||||||
Fixed Term Loan of Virtual Currency V [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 1,000,000 | ||||||||
Note payments | (1,000,000) | ||||||||
Fixed Term Loan of Virtual Currency VI [Member] | |||||||||
Notes payable | 50,000,000 | 0 | |||||||
Notes issued | 50,000,000 | ||||||||
Note payments | 0 | ||||||||
Open Term Loans of Virtual Currency I [Member] | |||||||||
Notes payable | 10,000,000 | 0 | |||||||
Notes issued | 12,700,000 | ||||||||
Note payments | (2,700,000) | ||||||||
Open Term Loans of Virtual Currency II [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 2,200,000 | ||||||||
Note payments | (2,200,000) | ||||||||
Open Term Loans of Virtual Currency III [Member] | |||||||||
Notes payable | 6,250,000 | 0 | |||||||
Notes issued | 6,250,000 | ||||||||
Note payments | 0 | ||||||||
Open Term Loans [Member] | |||||||||
Notes payable | 24,900,000 | 0 | |||||||
Notes issued | 29,900,000 | ||||||||
Note payments | (5,000,000) | ||||||||
Fixed Term Loan I [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 7,878,000 | ||||||||
Note payments | [2] | (7,878,000) | |||||||
Fixed Term Loan IV [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 1,510,500 | ||||||||
Note payments | (1,510,500) | ||||||||
Fixed Term Loan V [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 2,016,000 | ||||||||
Note payments | (2,016,000) | ||||||||
Fixed Term Loan VI [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 4,080,000 | ||||||||
Note payments | (4,080,000) | ||||||||
Fixed Term Loan VII [Member] | |||||||||
Notes payable | 0 | 0 | |||||||
Notes issued | 3,211,200 | ||||||||
Note payments | (3,211,200) | ||||||||
Virtual Currency Line of Credit [Member] | |||||||||
Notes payable | 16,035,320 | 0 | |||||||
Notes issued | 16,035,320 | ||||||||
Note payments | 0 | ||||||||
Digital Assets Notes Payable [Member] | |||||||||
Notes payable | 115,685,320 | 8,500,000 | |||||||
Notes issued | 140,781,020 | ||||||||
Note payments | (33,595,700) | ||||||||
Paycheck Protection Program CARES Act [Member] | |||||||||
Notes payable | 1,199,900 | 1,199,900 | $ 1,199,900 | ||||||
Notes issued | 0 | ||||||||
Note payments | 0 | ||||||||
Participation Agreement Notes Payable [Member] | |||||||||
Notes payable | 5,329,000 | $ 5,138,000 | $ 5,700,000 | $ 2,700,000 | $ 3,000,000 | 1,830,054 | [3] | ||
Notes issued | 5,749,485 | ||||||||
Note payments | (2,250,539) | ||||||||
Credit Facility Note Payable [Member] | |||||||||
Notes payable | 0 | $ 0 | |||||||
Notes issued | 2,925,524 | ||||||||
Note payments | $ (2,925,524) | ||||||||
[1] | The Company repaid the digital asset loan with US dollars. | ||||||||
[2] | The Company repaid $4,600,000 of the USD loan in digital assets and $3,278,000 in US dollars. | ||||||||
[3] | As of December 31, 2020, the balance of the Participation Agreement includes accrued interest on the loan of $30,054. |
Note 11 - Notes Payable - Futur
Note 11 - Notes Payable - Future Principal Payments (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | |
Remainder of 2021 | $ 50,000,000 | ||
2022 | 5,329,000 | ||
Other5 | [1] | 66,885,220 | |
Total | $ 122,214,220 | $ 11,529,954 | |
[1] | Other includes the future principal repayments for the Open Term Loans and Open Term Loans of Virtual Currency. |
Note 12 - Digital Assets Paya_2
Note 12 - Digital Assets Payable (Details Textual) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2021 | May 31, 2021 | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Number of Bitcoin Borrowed | 3 | 58 | 150 | ||||
Number of Bitcoin Repaid | 150 | 26 | |||||
Number of Tokens for Bitcoin Payable Outstanding | 35 | 35 | |||||
Digital Assets Payable | $ 4,348,512 | $ 27,423,371 | $ 27,423,371 | ||||
Fair Value Adjustment on Digital Assets Payable | $ (7,359,868) | $ 0 | $ (7,037,840) | $ 0 | |||
TradeStation [Member] | |||||||
Number of Bitcoin Borrowed | 596 | ||||||
Number of Bitcoin Repaid | 1 | ||||||
Number of Tokens for Bitcoin Payable Outstanding | 595 | 595 |
Note 13 - Commitments and Con_3
Note 13 - Commitments and Contingencies (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 01, 2021USD ($)ft² | Jul. 30, 2018USD ($)ft² | May 15, 2018USD ($)ft² | Mar. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($) | |
Deferred Rent Credit | $ 0 | $ 0 | $ 422,115 | |||||
Regulatory Compliance Penalty Expense | 250,000 | |||||||
Salt Token Liability | 44,359,677 | 44,359,677 | 44,364,316 | $ 47,100,000 | ||||
Surety Bond [Member] | ||||||||
Guarantor Obligations, Current Carrying Value | 690,000 | 690,000 | $ 625,000 | |||||
Surety Bond [Member] | Selling, General and Administrative Expenses [Member] | ||||||||
Guarantor Obligations, Premiums Paid | 1,423 | 4,268 | ||||||
The 1875 Lawrence Street Lease [Member] | ||||||||
Area of Real Estate Property (Square Foot) | ft² | 6,785 | |||||||
Security Deposit | $ 25,000 | |||||||
The 707 17th Street Lease [Member] | ||||||||
Area of Real Estate Property (Square Foot) | ft² | 25,523 | |||||||
Deposits Assets | $ 900,000 | 900,000 | ||||||
The 707 17th Street Lease [Member] | Intrepid Potash, Inc [Member] | ||||||||
Area of Real Estate Property (Square Foot) | ft² | 25,523 | |||||||
Lessor, Operating Lease, Term of Contract (Month) | 40 months | |||||||
Lessor, Operating Lease, Base Rent | $ 37,221 | |||||||
Gain (Loss) on Sale of Leased Assets, Net, Operating Leases | $ (688,120) | |||||||
The 707 17th Street Lease [Member] | SRI Ten DCC, LLC [Member] | Intrepid Potash, Inc [Member] | ||||||||
Letters of Credit Outstanding, Amount | 680,000 | |||||||
Deposit Assets, Total | 80,823 | |||||||
Lessee, Operating Lease, Letters of Credit | $ 510,000 | |||||||
The 707 17th Street Lease [Member] | Letter of Credit [Member] | ||||||||
Debt Instrument, Face Amount | $ 900,000 | |||||||
Mauritius Lease [Member] | ||||||||
Area of Real Estate Property (Square Foot) | ft² | 1,732 | |||||||
Security Deposit | $ 9,926 |
Note 13 - Commitments and Con_4
Note 13 - Commitments and Contingencies - Rent Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Total rent expense (net of sublease) | $ 273,621 | $ 255,407 | $ 803,021 | $ 757,147 |
The 707 17th Street Lease [Member] | ||||
Rent expense | 266,474 | 247,732 | 780,766 | 734,731 |
The 1875 Lawrence Street Lease [Member] | ||||
Rent expense | 58,096 | 56,400 | 172,593 | 168,353 |
Less: 1875 Lawrence Street sublease | (58,096) | (56,400) | (172,593) | (168,353) |
Mauritius Lease [Member] | ||||
Rent expense | $ 7,147 | $ 7,675 | $ 22,255 | $ 22,416 |
Note 14 - Risk and Uncertaint_2
Note 14 - Risk and Uncertainties (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Credit Concentration Risk [Member] | Loans Receivable Balance [Member] | |||||
Number of Major Borrowers | 2 | 1 | |||
Credit Concentration Risk [Member] | Loans Receivable Balance [Member] | Borrower One [Member] | |||||
Concentration Risk, Percentage | 23.00% | ||||
Credit Concentration Risk [Member] | Loans Receivable Balance [Member] | Borrower Two [Member] | |||||
Concentration Risk, Percentage | 10.00% | ||||
Credit Concentration Risk [Member] | Loans Receivable Balance [Member] | One Borrower [Member] | |||||
Concentration Risk, Percentage | 27.00% | ||||
Credit Concentration Risk [Member] | Interest Income Amount [Member] | |||||
Number of Major Borrowers | 3 | 1 | 3 | 3 | |
Credit Concentration Risk [Member] | Interest Income Amount [Member] | Borrower One [Member] | |||||
Concentration Risk, Percentage | 32.00% | 12.00% | 15.00% | ||
Credit Concentration Risk [Member] | Interest Income Amount [Member] | Borrower Two [Member] | |||||
Concentration Risk, Percentage | 19.00% | 11.00% | 12.00% | ||
Credit Concentration Risk [Member] | Interest Income Amount [Member] | One Borrower [Member] | |||||
Concentration Risk, Percentage | 22.00% | ||||
Credit Concentration Risk [Member] | Interest Income Amount [Member] | Borrower Three [Member] | |||||
Concentration Risk, Percentage | 10.00% | 10.00% | 11.00% | ||
3iQ Ether Fund [Member] | |||||
Percentage of Total Investments | 50.00% | 50.00% | |||
Grayscale Trusts [Member] | |||||
Percentage of Total Investments | 50.00% | 50.00% | 100.00% | ||
Grayscale Ethereum Trust [Member] | |||||
Percentage of Total Investments | 100.00% | 100.00% | 6.00% | ||
Grayscale Bitcoin Trust [Member] | |||||
Percentage of Total Investments | 94.00% |
Note 15 - Related Party Trans_3
Note 15 - Related Party Transactions (Details Textual) | Apr. 12, 2019USD ($)$ / sharesshares | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | May 31, 2021USD ($) | Apr. 11, 2019USD ($) |
First Release Agreement [Member] | Founder, Former Executive and Current Member of Board of Directors [Member] | |||||||||
Dismissal of Any Pending Claims Against the Entity, Amount Agreed to Pay | $ 150,000 | ||||||||
Amount Paid for Execution of Related-party Agreement | $ 600,000 | ||||||||
Related-party Agreement, Shares with Option to Purchase (in shares) | shares | 1,250,000 | ||||||||
Related-party Agreement, Shares with Option to Purchase, Period (Month) | 24 months | ||||||||
Related-party Agreement, Option to Purchase Shares, Minimum Exercise Price (in dollars per share) | $ / shares | $ 4.10 | $ 4.10 | $ 4.10 | ||||||
Stock Purchase Option, Fair Value | $ 0 | $ 0 | $ 5,124,000 | ||||||
Stock Purchase Option, Fair Value, Valuation Assumptions, Option Price Floor (in dollars per share) | $ / shares | $ 4.10 | $ 4.10 | |||||||
Related Party Transaction, Maximum Amount to Be Paid | $ 5,000,000 | ||||||||
First Release Agreement [Member] | Founder, Former Executive and Current Member of Board of Directors [Member] | Settlement Liability [Member] | |||||||||
Liability for Stock Purchase Option | $ 4,888,000 | ||||||||
Related-party Loans Issued in 2020 [Member] | Unspecified Related Parties [Member] | |||||||||
Number of Loans Issued to Related Parties | 7 | 6 | |||||||
Loans and Leases Receivable, Related Parties, Ending Balance | $ 894,000 | $ 894,000 | $ 497,550 | ||||||
Secured Loan Agreement with Related Party [Member] | Founder and Former Executive [Member] | |||||||||
Loans and Leases Receivable, Related Parties, Ending Balance | $ 700,000 | ||||||||
Loans and Leases Receivable, Related Parties, Interest Rate | 0.90% | 5.90% | |||||||
Secured Loan Agreement with Related Party [Member] | Founder and Former Executive [Member] | Interest Income [Member] | |||||||||
Interest Income, Related Party | $ 13,115 | $ 26 | $ 22,087 | $ 155 | |||||
Secured Loan Agreement with Related Party [Member] | Founder and Former Executive [Member] | Minimum [Member] | |||||||||
Loans and Leases Receivable, Related Parties, Interest Rate | 1.00% | 1.00% | |||||||
Secured Loan Agreement with Related Party [Member] | Founder and Former Executive [Member] | Maximum [Member] | |||||||||
Loans and Leases Receivable, Related Parties, Interest Rate | 15.95% | 15.95% |
Note 15 - Related Party Trans_4
Note 15 - Related Party Transactions - Changes in Settlement Liability (Details) - Related-party Settlement Liability [Member] - Settlement Liability [Member] | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Balance | $ 5,124,000 |
Change in fair value | 1,000 |
Capital contribution | 5,125,000 |
Balance | $ 0 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) - Subsequent Event [Member] - USD ($) | Dec. 14, 2021 | Dec. 07, 2021 | Dec. 06, 2021 | Nov. 29, 2021 | Nov. 15, 2021 | Nov. 09, 2021 | Nov. 04, 2021 | Oct. 19, 2021 | Oct. 12, 2021 |
Open Term USD Loan [Member] | |||||||||
Proceeds from Issuance of Debt | $ 1,500,000 | $ 3,000,000 | $ 11,000,000 | $ 2,000,000 | $ 1,750,000 | $ 1,500,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | 11.00% | 11.75% | 11.75% | 11.00% | 11.50% | 10.00% | ||
Repayments of Debt | $ 4,000,000 | ||||||||
Open Term USD Loan One [Member] | |||||||||
Proceeds from Issuance of Debt | $ 2,500,000 | ||||||||
Open Term USD Loan Two [Member] | |||||||||
Proceeds from Issuance of Debt | $ 4,500,000 | ||||||||
BUSD Fixed Term Loan of Virtual Currency VI [Member] | |||||||||
Repayments of Debt | $ 50,000,000 |