Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | EXOD | |
Entity File Number | 000-56643 | |
Entry Registrant Name | Exodus Movement, Inc. | |
Entity Central Index Key | 0001821534 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-3548560 | |
Entity Address, Address Line One | 15418 Weir St. | |
Entity Address, Address Line Two | #333 | |
Entity Address, City or Town | Omaha | |
Entity Address, State or Province | NE | |
Entity Address, Postal Zip Code | 68137 | |
City Area Code | 833 | |
Local Phone Number | 992-2566 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | No | |
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 | 6,318,566 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Class A Common Stock, par value $0.000001 per share. | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 27,769 | $ 11,376 |
U.S. dollar coin ($175 and $500 restricted as of June 30, 2024 and December 31, 2023,respectively) | 507 | 517 |
Treasury bills | 42,420 | 43,151 |
Accounts receivable | 3,004 | 3,240 |
Prepaid expenses | 2,108 | 1,440 |
Other current assets | 345 | 5 |
Total current assets | 76,153 | 59,729 |
OTHER ASSETS | ||
Fixed assets, net | 402 | 317 |
Digital assets | 124,798 | 35,010 |
Software assets, net | 8,035 | 8,051 |
Other long term asset | 40 | |
Indefinite-lived assets | 2,096 | 1,945 |
Other investments | 100 | 100 |
Deferred tax assets | 6,567 | |
Total other assets | 135,471 | 51,990 |
TOTAL ASSETS | 211,624 | 111,719 |
CURRENT LIABILITIES | ||
Accounts payable | 2,195 | 1,061 |
Other current liabilities | 6,951 | 6,485 |
Total current liabilities | 9,146 | 7,546 |
LONG-TERM LIABILITIES | ||
Other long-term liabilities | 435 | 412 |
Deferred tax liability | 11,237 | |
Total long-term liabilities | 11,672 | 412 |
Total liabilities | 20,818 | 7,958 |
STOCKHOLDERS' EQUITY | ||
ADDITIONAL PAID IN CAPITAL | 125,500 | 122,558 |
ACCUMULATED OTHER COMPREHENSIVE LOSS | (809) | (1,477) |
RETAINED EARNINGS (ACCUMULATED DEFICIT) | 66,115 | (17,320) |
Total stockholders’ equity | 190,806 | 103,761 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 211,624 | $ 111,719 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Restricted U.S dollar coins | $ 175 | $ 500 |
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Shares | ||
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 5,044,368 | 4,320,005 |
Common stock, shares outstanding | 5,044,368 | 4,320,005 |
Class B Shares | ||
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 27,500,000 | 27,500,000 |
Common stock, shares issued | 21,520,469 | 21,760,855 |
Common stock, shares outstanding | 21,520,469 | 21,760,855 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
OPERATING REVENUES | $ 22,308 | $ 12,405 | $ 51,368 | $ 25,750 |
COST OF REVENUES | 10,767 | 7,135 | 21,471 | 13,992 |
GROSS PROFIT | 11,541 | 5,270 | 29,897 | 11,758 |
OPERATING EXPENSES | ||||
General and administrative | 9,054 | 4,015 | 17,109 | 9,987 |
Loss (gain) on digital assets, net | 17,232 | (201) | (39,567) | (642) |
Total operating expense (income) | 26,286 | 3,814 | (22,458) | 9,345 |
(Loss) income from operations | (14,745) | 1,456 | 52,355 | 2,413 |
OTHER INCOME | ||||
Staking and other income | 405 | 17 | 555 | 33 |
Unrealized gain (loss) on investments | 158 | 85 | (86) | 189 |
Interest income | 695 | 468 | 1,642 | 871 |
Total other income | 1,258 | 570 | 2,111 | 1,093 |
(Loss) income before income taxes | (13,487) | 2,026 | 54,466 | 3,506 |
INCOME TAX BENEFIT (EXPENSE) | 3,881 | (157) | (9,285) | (864) |
NET (LOSS) INCOME | (9,606) | 1,869 | 45,181 | 2,642 |
OTHER COMPREHENSIVE(LOSS) INCOME | ||||
Foreign currency translation adjustment | (35) | (200) | 668 | (250) |
COMPREHENSIVE (LOSS) INCOME | $ (9,641) | $ 1,669 | $ 45,849 | $ 2,392 |
Common Class A [Member] | ||||
Net (loss) income per share | ||||
Basic net (loss) income per share of common stock | $ (0.37) | $ 0.07 | $ 1.72 | $ 0.1 |
Diluted net (loss) income per share of common stock | $ (0.37) | $ 0.06 | $ 1.42 | $ 0.08 |
Weighted average number of shares and share equivalents outstanding | ||||
Weighted average number of shares used in basic computation | 4,486 | 3,804 | 4,774 | 3,702 |
Weighted average number of shares used in diluted computation | 4,486 | 7,300 | 8,185 | 7,207 |
Common Class B [Member] | ||||
Net (loss) income per share | ||||
Basic net (loss) income per share of common stock | $ (0.37) | $ 0.07 | $ 1.72 | $ 0.1 |
Diluted net (loss) income per share of common stock | $ (0.37) | $ 0.06 | $ 1.42 | $ 0.08 |
Weighted average number of shares and share equivalents outstanding | ||||
Weighted average number of shares used in basic computation | 21,520 | 21,799 | 21,570 | 21,799 |
Weighted average number of shares used in diluted computation | 21,520 | 23,978 | 23,727 | 23,983 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock Class A Shares | Common Stock Class B Shares | Additional Paid In Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment |
BALANCES at Dec. 31, 2022 | $ 85,844 | $ 116,644 | $ (694) | $ (30,106) | ||||
BALANCES, Shares at Dec. 31, 2022 | 3,544,000 | 21,798,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 2,326 | 2,326 | ||||||
Exercised options | 1 | 1 | ||||||
Exercised options (in shares) | 1,000 | |||||||
Issuance of Common Stock upon settlement of restricted stock units, net of shares withheld for taxes | (152) | (152) | ||||||
Issuance of Common Stock upon settlement of restricted stock units, net of shares withheld for taxes (in shares) | 160,000 | |||||||
Foreign currency translation adjustment | (50) | (50) | ||||||
Net Income (Loss) | 773 | 773 | ||||||
BALANCES (unaudited) at Mar. 31, 2023 | 88,742 | 118,819 | (744) | (29,333) | ||||
BALANCES (unaudited), Shares at Mar. 31, 2023 | 3,704,000 | 21,799,000 | ||||||
BALANCES at Dec. 31, 2022 | $ 85,844 | 116,644 | (694) | (30,106) | ||||
BALANCES, Shares at Dec. 31, 2022 | 3,544,000 | 21,798,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercised options (in shares) | 300 | |||||||
Foreign currency translation adjustment | $ (250) | |||||||
Net Income (Loss) | 2,642 | |||||||
BALANCES (unaudited) at Jun. 30, 2023 | 91,975 | 120,383 | (944) | (27,464) | ||||
BALANCES (unaudited), Shares at Jun. 30, 2023 | 3,880,000 | 21,799,000 | ||||||
BALANCES at Mar. 31, 2023 | 88,742 | 118,819 | (744) | (29,333) | ||||
BALANCES, Shares at Mar. 31, 2023 | 3,704,000 | 21,799,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 1,736 | 1,736 | ||||||
Issuance of Common Stock upon settlement of restricted stock units, net of shares withheld for taxes | (172) | (172) | ||||||
Issuance of Common Stock upon settlement of restricted stock units, net of shares withheld for taxes (in shares) | 176,000 | |||||||
Foreign currency translation adjustment | (200) | (200) | ||||||
Net Income (Loss) | 1,869 | 1,869 | ||||||
BALANCES (unaudited) at Jun. 30, 2023 | 91,975 | 120,383 | (944) | (27,464) | ||||
BALANCES (unaudited), Shares at Jun. 30, 2023 | 3,880,000 | 21,799,000 | ||||||
BALANCES at Dec. 31, 2023 | $ 103,761 | $ 38,254 | 122,558 | (1,477) | (17,320) | $ 38,254 | ||
BALANCES, Shares at Dec. 31, 2023 | 4,320,000 | 21,760,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2023-08 [Member] | Accounting Standards Update 2023-08 [Member] | ||||||
Stock-based compensation | $ 1,903 | 1,903 | ||||||
Issuance of Common Stock upon settlement of restricted stock units, net of shares withheld for taxes | (334) | (334) | ||||||
Issuance of Common Stock upon settlement of restricted stock units, net of shares withheld for taxes (in shares) | 234,000 | |||||||
Conversion from Class B to Class A | 240,000 | (240,000) | ||||||
Foreign currency translation adjustment | 703 | 703 | ||||||
Net Income (Loss) | 54,787 | 54,787 | ||||||
BALANCES (unaudited) at Mar. 31, 2024 | 199,074 | 124,127 | (774) | 75,721 | ||||
BALANCES (unaudited), Shares at Mar. 31, 2024 | 4,794,000 | 21,520,000 | ||||||
BALANCES at Dec. 31, 2023 | $ 103,761 | $ 38,254 | 122,558 | (1,477) | (17,320) | $ 38,254 | ||
BALANCES, Shares at Dec. 31, 2023 | 4,320,000 | 21,760,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2023-08 [Member] | Accounting Standards Update 2023-08 [Member] | ||||||
Foreign currency translation adjustment | $ 668 | |||||||
Net Income (Loss) | 45,181 | |||||||
BALANCES (unaudited) at Jun. 30, 2024 | 190,806 | 125,500 | (809) | 66,115 | $ 38,300 | |||
BALANCES (unaudited), Shares at Jun. 30, 2024 | 5,044,000 | 21,520,000 | ||||||
BALANCES at Mar. 31, 2024 | 199,074 | 124,127 | (774) | 75,721 | ||||
BALANCES, Shares at Mar. 31, 2024 | 4,794,000 | 21,520,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 2,256 | 2,256 | ||||||
Issuance of Common Stock upon settlement of restricted stock units, net of shares withheld for taxes | (883) | (883) | ||||||
Issuance of Common Stock upon settlement of restricted stock units, net of shares withheld for taxes (in shares) | 250,000 | |||||||
Foreign currency translation adjustment | (35) | (35) | ||||||
Net Income (Loss) | (9,606) | (9,606) | ||||||
BALANCES (unaudited) at Jun. 30, 2024 | $ 190,806 | $ 125,500 | $ (809) | $ 66,115 | $ 38,300 | |||
BALANCES (unaudited), Shares at Jun. 30, 2024 | 5,044,000 | 21,520,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income (Loss) | $ 45,181 | $ 2,642 | |
Net cash provided by operating activities | |||
Depreciation and amortization | 2,511 | 2,181 | |
Deferred tax expense | 7,382 | ||
Impairment of digital assets | 1,996 | ||
Gain on digital assets, net | (39,567) | (2,638) | |
Staking and other income | (555) | (33) | |
Unrealized loss (gain) on investments | 86 | (189) | |
Stock based compensation | 3,741 | 3,505 | |
Accrued interest income | (1,133) | (541) | |
Other operating activities settled in digital assets and USDC | [1] | (18,402) | (7,135) |
Change in operating assets and liabilities: | |||
Accounts receivable | (4) | ||
Prepaid expenses | (618) | 1,545 | |
Other current assets | (340) | 16 | |
Other long-term asset | (40) | ||
Accounts payable | 1,144 | 421 | |
Other current liabilities | (1,325) | 236 | |
Other long term liabilities | 23 | ||
Net cash (used in) provided by operating activities | (1,916) | 2,039 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of domain name | (151) | ||
Purchases of fixed assets | (188) | (10) | |
Purchase of treasury bills | (44,386) | (38,617) | |
Redemption of treasury bills | 46,164 | 32,300 | |
Purchases of digital assets | (2,534) | ||
Disposal of digital assets held | 20,631 | ||
Net cash provided by (used in) investing activities | 19,536 | (6,327) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repurchase of shares to pay employee withholding taxes | (1,227) | (324) | |
Exercise of stock options | 1 | ||
Net cash used in financing activities | (1,227) | (323) | |
Change in cash and cash equivalents | 16,393 | (4,611) | |
Cash and cash equivalents | |||
Beginning of period | 11,376 | 20,494 | |
End of period | 27,769 | 15,883 | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||
Non-cash issuance of stock | 10 | ||
Non-cash capitalized software costs settled in digital assets (including stock based compensation of 418 and $557 respectively) | (2,364) | (2,826) | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid for income taxes | $ (3,252) | $ (619) | |
[1] See Note 5, “Intangible Assets”. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Stock based compensation | $ 4,159 | $ 4,062 |
Software | ||
Stock based compensation | $ 418 | $ 557 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ (9,606) | $ 54,787 | $ 1,869 | $ 773 | $ 45,181 | $ 2,642 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business Exodus Movement, Inc. (“Exodus” or “the Company” or “we”) was incorporated in Delaware in July 2016. The Company operates in the FinTech subsector of the greater blockchain and digital asset industry. The Company has developed an un-hosted self-custodial digital asset wallet on the Exodus Platform and contracts with third parties to provide various services to users that utilize the Company’s wallet through the platform. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements of the Company are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) on the same basis as the audited consolidated financial statements and in management’s opinion, reflect all the adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair statement of the Company’s condensed consolidated financial statements for the periods presented. The unaudited condensed consolidated results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year or any other period. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and notes included in the Form 10. There were no changes to the significant accounting policies or recent accounting pronouncements that were disclosed in Note 2 Summary of Significant Accounting Policies to the audited consolidated financial statements included in the Form 10, other than the adoption of ASU 2023-08 Intangibles, Goodwill and Other - Crypto Assets ("ASU 2023-08"), as discussed below. Correction of Previously Issued Financial Statements Subsequent to the issuance of the Company’s interim condensed consolidated financial statements as of and for the three and six months ended June 30, 2023, the Company identified an error in the calculation of earnings per share due to the undistributed earnings not being appropriately allocated to each class of common shares and an error in the disclosure of operating activities settled in digital assets and USDC in Note 5. The effects of the correction on the prior periods are included below. Three Months Ended Six Months Ended Originally Adjustment As Originally Adjustment As Basic net income per share - Class A $ 0.49 $ ( 0.42 ) $ 0.07 $ 0.71 $ ( 0.61 ) $ 0.10 Basic net income per share - Class B $ 0.09 $ ( 0.02 ) $ 0.07 $ 0.12 $ ( 0.02 ) $ 0.10 Diluted net income per share - Class A $ 0.26 $ ( 0.20 ) $ 0.06 $ 0.37 $ ( 0.29 ) $ 0.08 Diluted net income per share - Class B $ 0.08 $ ( 0.02 ) $ 0.06 $ 0.11 $ ( 0.03 ) $ 0.08 Six Months Ended Originally Adjustment As Digital assets expense $ 18,616 $ ( 8,343 ) $ 10,273 Conversion of digital assets and USDC to cash $ - $ 8,343 $ 8,343 Concentration of Revenue Operating revenue from Application Programming Interface Providers (“API Providers”) exceeding 10 % of total operating revenues for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended Company A $ 3,832 $ 2,346 10,532 4,048 Company B 4,629 2,511 10,286 4,839 Company C 4,360 1,996 9,094 4,134 Company D 2,713 1,898 6,828 4,786 Company E (1) - 1,985 - 4,177 (1) Company E did not have over 10 % of revenue during the three and six months ended June 30, 2024. Digital Assets As of June 30, 2024, the Company held $ 124.8 million of digital assets at fair value. The Company presents digital assets separately from other intangible assets, recorded as digital assets on the condensed consolidated balance sheets. The net activity from remeasurement of digital assets at fair value is reflected in the condensed consolidated statements of operations and comprehensive (loss) income within operating income (expense). Digital assets that are received as noncash consideration in our revenue arrangements and sold for cash within seven days are presented as cash flows from operating activities, while other digital asset activity held longer than seven days is reflected as cash flows from investing activities in the consolidated statements of cash flows. The Company uses a mix of non-custodial and custodial services at multiple locations that are geographically dispersed to store its digital assets. The Company has performed an analysis of the principal market. Refer to Note 5, Intangible Assets, and Note 12, Fair Value Measurements, for additional information. The Company has ownership of and control over its digital assets. The cost basis is calculated on a first-in first-out basis. Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable: • Level 1 – Quoted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are not observable. Prices may fall within Level 1, 2 or 3 depending upon the methodology and inputs used to estimate fair value for each specific security. In general, securities are priced using third-party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using a methodology and inputs that market participants presumably would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted. Subsequent to the adoption of ASU 2023-08, the fair value of each digital asset is based on quoted (unadjusted) prices in the principal market for each digital asset. Such prices are based on Level 1 inputs in accordance with ASC 820. Recent Accounting Pronouncements Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. This guidance will not impact our consolidated financial statements. Improvements to Crypto Assets Disclosures On December 13, 2023, the FASB issued ASU 2023-08 which provides an update to existing crypto asset guidance and requires an entity to measure certain crypto assets at fair value. In addition, this guidance requires additional disclosures related to crypto assets once it is adopted. As of January 1, 2024, the Company has adopted ASU 2023-08. The Company has adopted the amendments prescribed in ASU 2023-08 . As a result of adopting the amendments, the Company’s cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period, or as of January 1, 2024, amounted to $ 38.3 million, which consisted of a $ 48.7 million of fair value adjustments offset by a $ 10.4 million tax impact related to the fair value adjustments. The Company includes realized and unrealized gains and losses in net income on the consolidated financial statements which is presented separately from changes in the carrying amount of other intangible assets. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. This guidance only impacts footnote disclosures and will not impact our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition The following table presents the Company’s operating revenues disaggregated by geography, based on the addresses of the Company’s API Providers (in thousands, except percentages): Three Months Ended Six Months Ended 2024 2023 2024 2023 Republic of the Marshall Islands $ 7,072 31.7 % $ 3,895 31.4 % $ 15,921 31.0 % $ 8,921 34.6 % British Virgin Islands (1) - - 2,639 21.3 - - 5,836 22.7 Seychelles 3,832 17.2 2,332 18.8 10,532 20.5 4,066 15.8 Hong Kong 4,894 21.9 2,522 20.3 10,903 21.2 4,843 18.8 Other (2) 6,510 29.2 1,017 8.2 14,012 27.3 2,084 8.1 Operating revenues $ 22,308 100.0 % $ 12,405 100.0 % $ 51,368 100.0 % $ 25,750 100.0 % (1) British Virgin Islands no longer exceeds 10% in 2024 and is now included in Other. (2) No other individual country accounted for more than 10% of total revenue. The following table presents the Company’s operating revenues disaggregated by products and services (in thousands, except percentages): Three Months Ended Six Months Ended 2024 2023 2024 2023 Exchange aggregation $ 19,942 89.4 % $ 11,623 93.7 % $ 46,692 90.9 % $ 24,253 94.2 % Fiat onboarding 952 4.3 561 4.5 1,963 3.8 1,088 4.2 Staking 522 2.3 201 1.6 1,167 2.3 359 1.4 Consulting 496 2.2 - - 546 1.1 25 0.1 Other (1) 396 1.8 20 0.2 1,000 1.9 25 0.1 Operating revenues $ 22,308 100.0 % $ 12,405 100.0 % $ 51,368 100.0 % $ 25,750 100.0 % (1) Other includes $ 0.4 million and $ 0.9 million related to non-fungible token revenue for the three and six months ended June 30, 2024, respectively. The following table presents the Company's contract balances as of June 30, 2024 and December 31, 2023 (in thousands): Balance January 1, 2023 $ - Contract liability 1,000 Performance obligation satisfied ( 273 ) Balance December 31, 2023 727 Contract liability 100 Performance obligation satisfied ( 456 ) Balance June 30, 2024 $ 371 R evenue recognized during the six months ended June 30, 2024 related to deferred revenue at the beginning of the period was $ 0.4 million. The remaining future performance obligations of $ 0.4 million will be satisfied after June 30, 202 4 . |
Prepaid Expenses
Prepaid Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Prepaid Expense, Current [Abstract] | |
Prepaid Expenses | 4. Prepaid Expenses The Company prepays certain expenses due to the nature of the service provided or to capture certain discounts. The table below shows a breakout of these prepaid expenses for the periods presented (in thousands): June 30, 2024 December 31, 2023 Prepaid cloud services $ 894 $ 413 Prepaid software 760 281 Accounting, consulting, and legal services 321 688 Prepaid insurance 133 58 Prepaid expenses $ 2,108 $ 1,440 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets Indefinite-Lived Asset Indefinite-lived assets consisted of the following (in thousands): June 30, 2024 December 31, 2023 Domain names $ 2,096 $ 1,945 Indefinite-lived assets $ 2,096 $ 1,945 The Company purchased the exodus.com domain name in the first quarter of 2021 for $ 1.9 million. In the second quarter of 2024, the Company purchased a domain name for $ 0.2 million. The Company considers these assets to be indefinite-lived, resulting in no recognition of amortization. Digital Assets The table below outlines the fair value of our digital assets based on publicly available rates as of the dates presented as well as the cost (in thousands, except units): Units Cost Basis Fair Value As of June 30, 2024 Bitcoin 1,794 $ 53,963 $ 112,416 Ethereum 2,580 4,749 8,857 Other 4,702,915 6,955 3,525 Digital assets $ 65,667 $ 124,798 For the three and six months ended June 30, 2024, the Company recognized realized gains from exchange of digital assets of $ 1.8 million and $ 6.2 million , respectively, and realized losses of $ 0.1 million and $ 0.4 million, respectively, which is included on the condensed consolidated statements of operations and comprehensive (loss) income. For the three and six months ended June 30, 2024, the Company recognized unrealized gains from remeasurement of digital assets of $ 11.5 million and $ 64.3 million, respectively, and unrealized losses from remeasurement of digital assets of less than $ 30.6 million and $ 30.6 million, respectively, which is included on the condensed consolidated statements of operations and comprehensive (loss) income. For the three and six months ended June 30, 2024, there we re no dig ital assets held with contractual sale restrictions. The following table summarizes other operating activities settled in digital assets and USDC (in thousands): Six Months Ended 2024 2023 Revenue $ ( 51,538 ) $ ( 25,750 ) Expenses 11,308 10,273 Conversion to cash 19,130 8,343 Accounts receivable 239 ( 705 ) Payroll liabilities 1,791 954 Currency translation 668 ( 250 ) Other operating activities settled in digital assets and USDC $ ( 18,402 ) $ ( 7,135 ) The following table summarizes the digital asset activities as of June 30, 2024 and December 31, 2023 (in thousands, except units): BTC ETH Other Units Value Units Value Units Value Balance, December 31, 2023 1,787 32,262 2,538 $ 2,022 4,625,187 $ 726 Adoption of ASU 2023-08 - 43,162 - 3,764 - 1,750 Balance, January 1, 2024 1,787 75,424 2,538 5,786 4,625,187 2,476 Additions (1) 390 20,244 12 39 143,003 544 Disposals (2) ( 385 ) ( 19,545 ) - - ( 106,050 ) ( 227 ) Gains (3) - 51,832 - 3,460 - 1,825 Losses (3) - ( 309 ) - ( 1 ) - ( 8 ) Balance, March 31, 2024 1,792 127,646 2,550 9,284 4,662,140 4,610 Additions (1) 241 15,813 30 101 132,460 614 Disposals (2) ( 239 ) ( 15,844 ) - - ( 91,685 ) ( 197 ) Gains (3) - 10,734 - 1,925 - 759 Losses (3) - ( 25,933 ) - ( 2,453 ) - ( 2,261 ) Balance, June 30, 2024 1,794 112,416 2,580 8,857 4,702,915 3,525 (1) Additions primarily relate to revenue generated from customers and staked assets. (2) Disposals primarily relate to payment of liabilities pertaining to vendor invoices and payroll payments. Disposals of digital assets to cash are primarily used for operational purposes. (3) The Company recognized cumulative realized gains from exchange of digital assets of $ 1.8 million and $ 6.2 million for the three and six months ended June 30, 2024, respectively and cumulative realized losses of $ 0.1 million and $ 0.4 million for both three and six months ended June 30, 2024 which is included on the condensed consolidated statements of operations and comprehensive (loss) income. |
Fixed Assets Net
Fixed Assets Net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment, Net [Abstract] | |
Fixed Assets, Net | 6. Fixed Assets, Net Fixed assets, net, consisted of the following (in thousands): June 30, 2024 December 31, 2023 Computer equipment $ 1,010 $ 870 Vehicles 237 256 Furniture and fixtures 21 21 Fixed assets, gross 1,268 1,147 Less: accumulated depreciation ( 866 ) ( 830 ) Fixed assets, net $ 402 $ 317 Depreciation expense was less than $ 0.1 million and $ 0.1 million for the three and six months ended June 30, 2024, respectively and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2023, respectively. |
Software Assets, Net
Software Assets, Net | 6 Months Ended |
Jun. 30, 2024 | |
Finite Lived Intangible Assets Disclosure [Abstract] | |
Software Assets, Net | 7. Software Assets, Net Software assets, net, consisted of the following (in thousands): June 30, 2024 December 31, 2023 Internal use software $ 16,584 $ 16,208 Less: accumulated amortization ( 8,549 ) ( 8,157 ) Software assets, net $ 8,035 $ 8,051 The following summarizes the future amortization expense as of June 30, 2024 (in thousands): Six months ending December 31, 2024 $ 2,568 2025 3,416 2026 1,629 2027 422 $ 8,035 Amortization expense was $ 1.2 million and $ 2.4 million for the three and six months ended June 30, 2024, respectively, and $ 1.1 million and $ 2.0 million for the thre e and six months ended June 30, 2023, respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share . Each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock. We have applied to list our Class A common stock on the NYSE American. Our listing is pending the SEC’s completion of its review of the Form 10. In April 2024, our Class A Common Stock was listed for quotation on the OTCQX under the symbol “EXOD”. OTC Markets approval was received in April 2024. In January 2024, our Class A Common Stock was listed for quotation on the OTCQB under the symbol “EXOD”. OTC Markets approval was received in January 2024 and in January the initial qualifying deposit was made and initial trades have occurred. In December 2023, our Class A Common Stock ceased trading on tZERO Markets, LLC ( "tZERO" ), an alternative trading system that had the ability to support trades of our Class A Common Stock and transfers of our Common Stock Tokens. Our Class A Common Stock previously traded on tZERO under the symbol “EXOD”. In October 2023, our Class A Common Stock ceased trading on Securitize Markets, an alternative trading system that had the ability to support trades of our Class A Common Stock and transfers of our Common Stock Tokens. Our Class A Common Stock previously traded on Securitize Markets under the symbol “EXOD”. There is currently no public market for our Common Stock Tokens and we do not believe one will develop in the foreseeable future. Common Stock Tokens cannot be traded on the OTC market or any national securities exchange. Stock-Based Compensation Options and Equity Grants Issued The 2019 Equity Incentive Plan adopted in September 2019 (the “2019 Plan”) permitted the Company to grant non-statutory stock options, incentive stock options, and other equity awards to Exodus team members, directors, and consultants. The exercise price for options issued under the 2019 Plan is determined by the board of directors, but will be (i) in the case of an incentive stock option granted to an employee or consultant who owns stock representing more than 10% of the voting power of all classes of stock of Exodus, no less than 110% of the fair market value per share on the date of grant; or (ii) granted to any other employee or consultant, no less than 100% of the fair market value per share on the date of grant. The contractual life for all options issued under the 2019 Plan is 10 years. The 2019 Plan authorized grants to issue up to 3,000,000 options (prior to the 2021 Employee Equity Redemption Plan) that are convertible into shares of authorized but unissued Class B common stock. As of June 30, 2024, there were 2,156,330 shares of Class B common stock options outstanding. In August 2021, the Company also adopted the 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan permits the Company to grant non-statutory stock options, incentive stock options and other equity awards, such as restricted stock awards, to Exodus team members, directors, and consultants. The exercise price for options issued under the 2021 Plan is determined by the board of directors, but will be (i) in the case of an incentive stock option granted to an employee who owns stock representing more than 10% of the voting power of all classes of stock of Exodus, no less than 110% of the fair market value per share on the date of grant; or (ii) granted to any other employee or consultant, no less than 100% of the fair market value per share on the date of grant. The contractual life for all options issued under the 2021 Plan is 10 years. The 2021 Plan initially authorized grants to issue up to 2,780,000 awards that are convertible into shares of authorized but unissued Class A common stock. Pursuant to the terms of the 2021 Plan, the Company may increase our share pool by 5 % of our total shares of capital stock each year. In 2023 and 2022, the total shares of our Class A common stock reserved for issuance increased by 1,875,000 shares for both periods for a total of 6,530,000 shares of Class A common stock reserved under the 2021 Plan. As of June 30, 2024, there were 3,735,395 restricted stock units that are authorized and outstanding with a fair value of $ 63.5 million and 453 restricted stock units were vested but not yet issued. Upon the approval of the 2021 Plan, the Company can no longer grant non-statutory stock options, incentive stock options, or other equity awards to Exodus employees, directors, or consultants under the 2019 Plan. Terms of our share-based compensation are governed by the plan in which awards were issued. The following table summarizes stock option activities for the six months ended June 30, 2024 and 2023: Weighted Average Exercise Price Options Price Outstanding as of January 1, 2023 2,190,979 $ 2.40 Exercised ( 300 ) 2.55 Forfeited ( 13,961 ) 2.50 Outstanding as of June 30, 2023 2,176,718 $ 2.40 Outstanding as of January 1, 2024 2,156,632 2.40 Forfeited ( 302 ) 2.39 Outstanding as of June 30, 2024 2,156,330 $ 2.40 Vested and exercisable as of June 30, 2024 2,145,802 $ 2.40 We recognized stock-based compensation related to options and restricted stock units of $ 2.3 million and $ 4.2 million for the three and six months ended June 30, 2024, respectively, and $ 1.7 million and $ 4.1 million for the three and six months ended June 30, 2023, respectively. Stock-based compensation is recorded on the Company’s condensed consolidated statements of operations and comprehensive (loss) income as follows (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Cost of revenues $ 924 $ 731 $ 1,729 $ 1,696 General and administrative 1,332 1,005 2,430 2,366 Stock-based compensation $ 2,256 $ 1,736 $ 4,159 $ 4,062 As of June 30, 2024, total unrecognized stock-based compensation expense was $ 5.8 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes At the end of each interim period, the Company records income taxes by applying an estimated annualized effective tax rate to the current period income or loss before income taxes. The Company's annualized effective tax rate is based on pre-tax earnings, enacted U.S. statutory tax rates, non-deductible expenses, certain tax rate differences between U.S. and foreign jurisdictions, and specific events that are discretely recognized entirely within the interim period in which they occur. Exodus’ foreign subsidiaries Proper Trust AG files an income tax return in Switzerland and Osmium Europe B.V. will file in the Netherlands. For the six months ended June 30, 2024 and June 30, 2023, the Company recorded an income tax expense of $ 9.3 million and $ 0.9 million, on pre-tax income of approximately $ 54.5 million and $ 3.5 million, resulting in effective tax rates of 17.3 % and 24.2 %, respectively. Our effective tax rate for the six months ended June 30, 2024 was primarily impacted by the change in permanent differences, including the tax benefit from the foreign derived intangible income, and discrete items, including stock based compensation and tax effect of realized and unrealized digital asset gains and losses during the period. For purposes of recording the discrete tax expense related to digital assets, for the six months ending June 30, 2024, realized gains or losses are recorded to the Company’s current taxes payable and unrealized gains and losses are recorded to the deferred tax liability based on current period activity. Changes in tax laws We operate in various jurisdictions and are subject to changes in applicable tax laws, treaties or regulations in those jurisdictions. A material change in the tax laws, treaties or regulations, or their interpretation, of any jurisdiction with which we do business, or in which we have significant operations, could adversely affect us. For example, the new Pillar 2 approach, which came into effect in 2023 in certain jurisdictions, will establish a global minimum tax rate of 15%, such that multinational enterprises with an effective tax rate in a jurisdiction below this minimum rate will need to pay additional tax. While many aspects of the application of Pillar 2 remain to be clarified, including how the jurisdictions in which we operate, and those in which we and our subsidiaries are based, choose to implement the Organization for Economic Cooperation and Development’s approach in their tax treaties and domestic tax laws, we do not expect Pillar 2 to apply in 2024. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal Proceedings The Company is subject to a number of claims and proceedings that generally arise in the ordinary course of business, the outcome of which cannot be predicted with certainty. The Company does not believe that the liabilities from such ordinary course claims and proceedings will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. If the Company believes the losses are probable and can be reasonably estimated, reserves will be established. For matters where a reserve has not been established, the ultimate outcome or resolution cannot be predicted at this time or the amount of ultimate loss, if any, cannot be reasonably estimated. Litigation is subject to many uncertainties and there can be no assurance as to the outcome of the individual litigated matters. It is possible that certain of the actions, claims, inquiries or proceedings could be decided unfavorably to the Company or any of its subsidiaries involved. Accordingly, it is possible that an adverse outcome from such a proceeding could exceed the amount accrued in an amount that could be material to the Company’s consolidated financial condition, results of operations or cash flows in any particular reporting period. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11. Fair Value Measurements The Company’s financial assets are summarized below as of June 30, 2024 and December 31, 2023, with fair values shown according to the fair value hierarchy (in thousands): Carrying Quoted Significant Significant June 30, 2024 BTC $ 112,416 $ 112,416 $ - $ - Treasury bills 46,532 46,532 - - Money market mutual funds 8,781 8,781 - - ETH 8,857 8,857 - - Other digital assets 3,525 3,525 - - Security token group investment 100 (A) - - $ 180,211 December 31, 2023 Money market mutual funds $ 8,477 $ 8,477 $ - $ - Treasury bills 45,463 45,463 - - Security token group investment 100 (A) - - $ 54,040 (A) This investment is recorded at cost. The Company invests in held to maturity treasury bills. Discount rates ranged from 0.8 % to 2.5 % a nd 0.4 % to 2.6 % as of June 30, 2024 and December 31, 2023, respectively. The Company held treasury bills with a maturity of greater than three months in other current assets in the amount of $ 42.4 million a nd $ 43.2 million as of June 30, 2024 and December 31, 2023, respectively. The Company held treasury bills with a maturity of less than three months in cash and cash equivalents in the amount of $ 4.1 million and $ 2.3 million as of June 30, 2024 and December 31, 2023, respectively. Assets and Liabilities Not Measured and Recorded at Fair Value The Company’s financial instruments, including USDC, are carried at cost, which approximates their fair value. If these financial instruments were recorded at fair value, they would be based on Level 1 inputs. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings Per Share The following table sets forth the computation of basic and diluted net income per share of common stock (in thousands, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic net (loss) income per share: Numerator Net (loss) income, basic and diluted $ ( 9,606 ) $ 1,869 $ 45,181 $ 2,642 Denominator Weighted-average number of shares used in per share 4,486 3,804 4,774 3,702 Weighted-average number of shares used in per share 21,520 21,799 21,570 21,799 Basic net (loss) income per share - Class A $ ( 0.37 ) $ 0.07 $ 1.72 $ 0.10 Basic net (loss) income per share - Class B $ ( 0.37 ) $ 0.07 $ 1.72 $ 0.10 Diluted net (loss) income per share: Denominator Weighted-average number of shares used in diluted 4,486 7,300 8,185 7,207 Weighted-average number of shares used in diluted 21,520 23,978 23,727 23,983 Diluted net (loss) income per share - Class A $ ( 0.37 ) $ 0.06 $ 1.42 $ 0.08 Diluted net (loss) income per share - Class B $ ( 0.37 ) $ 0.06 $ 1.42 $ 0.08 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions For the six months ended June 30, 2024 and 2023, related party transactions included: Exodus signed an Application Development and Technology Agreement (the “Technology Agreement”) with tZERO Technologies, LLC (“tZERO”) in May of 2021. tZERO is a software technology company that provides its technology to tZERO Markets, LLC to enable it to provide licensed, efficient and automated securities brokerage services to its retail customers (the “tZERO Technology”). Pursuant to the Technology Agreement, Exodus integrated certain APIs of tZERO to create a tZERO application within the Exodus Platform that allows investors to open a securities brokerage account and submit orders to purchase and sell securities via the tZERO Technology. • Less than $ 0.1 million and $ 0.1 million of unrealized loss on investments was recorded on the condensed consolidated statements of operations and comprehensive (loss) income for the three and six months ended June 30, 2023, respectively. This amount reflects the market adjustment of the shares held during the three and six months ended June 30, 2023. • The Company’s relationship with tZERO ended on December 11, 2023 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Correction of Previously Issued Financial Statements | Correction of Previously Issued Financial Statements Subsequent to the issuance of the Company’s interim condensed consolidated financial statements as of and for the three and six months ended June 30, 2023, the Company identified an error in the calculation of earnings per share due to the undistributed earnings not being appropriately allocated to each class of common shares and an error in the disclosure of operating activities settled in digital assets and USDC in Note 5. The effects of the correction on the prior periods are included below. Three Months Ended Six Months Ended Originally Adjustment As Originally Adjustment As Basic net income per share - Class A $ 0.49 $ ( 0.42 ) $ 0.07 $ 0.71 $ ( 0.61 ) $ 0.10 Basic net income per share - Class B $ 0.09 $ ( 0.02 ) $ 0.07 $ 0.12 $ ( 0.02 ) $ 0.10 Diluted net income per share - Class A $ 0.26 $ ( 0.20 ) $ 0.06 $ 0.37 $ ( 0.29 ) $ 0.08 Diluted net income per share - Class B $ 0.08 $ ( 0.02 ) $ 0.06 $ 0.11 $ ( 0.03 ) $ 0.08 Six Months Ended Originally Adjustment As Digital assets expense $ 18,616 $ ( 8,343 ) $ 10,273 Conversion of digital assets and USDC to cash $ - $ 8,343 $ 8,343 |
Concentration of Revenue | Concentration of Revenue Operating revenue from Application Programming Interface Providers (“API Providers”) exceeding 10 % of total operating revenues for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended Company A $ 3,832 $ 2,346 10,532 4,048 Company B 4,629 2,511 10,286 4,839 Company C 4,360 1,996 9,094 4,134 Company D 2,713 1,898 6,828 4,786 Company E (1) - 1,985 - 4,177 (1) Company E did not have over 10 % of revenue during the three and six months ended June 30, 2024. |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable: • Level 1 – Quoted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are not observable. Prices may fall within Level 1, 2 or 3 depending upon the methodology and inputs used to estimate fair value for each specific security. In general, securities are priced using third-party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using a methodology and inputs that market participants presumably would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted. Subsequent to the adoption of ASU 2023-08, the fair value of each digital asset is based on quoted (unadjusted) prices in the principal market for each digital asset. Such prices are based on Level 1 inputs in accordance with ASC 820. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. This guidance will not impact our consolidated financial statements. Improvements to Crypto Assets Disclosures On December 13, 2023, the FASB issued ASU 2023-08 which provides an update to existing crypto asset guidance and requires an entity to measure certain crypto assets at fair value. In addition, this guidance requires additional disclosures related to crypto assets once it is adopted. As of January 1, 2024, the Company has adopted ASU 2023-08. The Company has adopted the amendments prescribed in ASU 2023-08 . As a result of adopting the amendments, the Company’s cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period, or as of January 1, 2024, amounted to $ 38.3 million, which consisted of a $ 48.7 million of fair value adjustments offset by a $ 10.4 million tax impact related to the fair value adjustments. The Company includes realized and unrealized gains and losses in net income on the consolidated financial statements which is presented separately from changes in the carrying amount of other intangible assets. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. This guidance only impacts footnote disclosures and will not impact our consolidated financial statements. |
Digital Assets | |
Digital Assets | Digital Assets As of June 30, 2024, the Company held $ 124.8 million of digital assets at fair value. The Company presents digital assets separately from other intangible assets, recorded as digital assets on the condensed consolidated balance sheets. The net activity from remeasurement of digital assets at fair value is reflected in the condensed consolidated statements of operations and comprehensive (loss) income within operating income (expense). Digital assets that are received as noncash consideration in our revenue arrangements and sold for cash within seven days are presented as cash flows from operating activities, while other digital asset activity held longer than seven days is reflected as cash flows from investing activities in the consolidated statements of cash flows. The Company uses a mix of non-custodial and custodial services at multiple locations that are geographically dispersed to store its digital assets. The Company has performed an analysis of the principal market. Refer to Note 5, Intangible Assets, and Note 12, Fair Value Measurements, for additional information. The Company has ownership of and control over its digital assets. The cost basis is calculated on a first-in first-out basis. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The effects of the correction on the prior periods are included below. Three Months Ended Six Months Ended Originally Adjustment As Originally Adjustment As Basic net income per share - Class A $ 0.49 $ ( 0.42 ) $ 0.07 $ 0.71 $ ( 0.61 ) $ 0.10 Basic net income per share - Class B $ 0.09 $ ( 0.02 ) $ 0.07 $ 0.12 $ ( 0.02 ) $ 0.10 Diluted net income per share - Class A $ 0.26 $ ( 0.20 ) $ 0.06 $ 0.37 $ ( 0.29 ) $ 0.08 Diluted net income per share - Class B $ 0.08 $ ( 0.02 ) $ 0.06 $ 0.11 $ ( 0.03 ) $ 0.08 Six Months Ended Originally Adjustment As Digital assets expense $ 18,616 $ ( 8,343 ) $ 10,273 Conversion of digital assets and USDC to cash $ - $ 8,343 $ 8,343 |
Schedule of Operating Revenue | Operating revenue from Application Programming Interface Providers (“API Providers”) exceeding 10 % of total operating revenues for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended Company A $ 3,832 $ 2,346 10,532 4,048 Company B 4,629 2,511 10,286 4,839 Company C 4,360 1,996 9,094 4,134 Company D 2,713 1,898 6,828 4,786 Company E (1) - 1,985 - 4,177 (1) Company E did not have over 10 % of revenue during the three and six months ended June 30, 2024. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Operating Revenue Disaggregated by Geography | The following table presents the Company’s operating revenues disaggregated by geography, based on the addresses of the Company’s API Providers (in thousands, except percentages): Three Months Ended Six Months Ended 2024 2023 2024 2023 Republic of the Marshall Islands $ 7,072 31.7 % $ 3,895 31.4 % $ 15,921 31.0 % $ 8,921 34.6 % British Virgin Islands (1) - - 2,639 21.3 - - 5,836 22.7 Seychelles 3,832 17.2 2,332 18.8 10,532 20.5 4,066 15.8 Hong Kong 4,894 21.9 2,522 20.3 10,903 21.2 4,843 18.8 Other (2) 6,510 29.2 1,017 8.2 14,012 27.3 2,084 8.1 Operating revenues $ 22,308 100.0 % $ 12,405 100.0 % $ 51,368 100.0 % $ 25,750 100.0 % (1) British Virgin Islands no longer exceeds 10% in 2024 and is now included in Other. (2) No other individual country accounted for more than 10% of total revenue. |
Schedule of Operating Revenue Disaggregated by Products and Services | The following table presents the Company’s operating revenues disaggregated by products and services (in thousands, except percentages): Three Months Ended Six Months Ended 2024 2023 2024 2023 Exchange aggregation $ 19,942 89.4 % $ 11,623 93.7 % $ 46,692 90.9 % $ 24,253 94.2 % Fiat onboarding 952 4.3 561 4.5 1,963 3.8 1,088 4.2 Staking 522 2.3 201 1.6 1,167 2.3 359 1.4 Consulting 496 2.2 - - 546 1.1 25 0.1 Other (1) 396 1.8 20 0.2 1,000 1.9 25 0.1 Operating revenues $ 22,308 100.0 % $ 12,405 100.0 % $ 51,368 100.0 % $ 25,750 100.0 % (1) Other includes $ 0.4 million and $ 0.9 million related to non-fungible token revenue for the three and six months ended June 30, 2024, respectively. |
Schedule of Contract Balances | The following table presents the Company's contract balances as of June 30, 2024 and December 31, 2023 (in thousands): Balance January 1, 2023 $ - Contract liability 1,000 Performance obligation satisfied ( 273 ) Balance December 31, 2023 727 Contract liability 100 Performance obligation satisfied ( 456 ) Balance June 30, 2024 $ 371 R |
Prepaid Expenses - (Tables)
Prepaid Expenses - (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Prepaid Expense, Current [Abstract] | |
Schedule of Prepaid Expenses Breakout | The Company prepays certain expenses due to the nature of the service provided or to capture certain discounts. The table below shows a breakout of these prepaid expenses for the periods presented (in thousands): June 30, 2024 December 31, 2023 Prepaid cloud services $ 894 $ 413 Prepaid software 760 281 Accounting, consulting, and legal services 321 688 Prepaid insurance 133 58 Prepaid expenses $ 2,108 $ 1,440 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Indefinite-lived Assets | Indefinite-lived assets consisted of the following (in thousands): June 30, 2024 December 31, 2023 Domain names $ 2,096 $ 1,945 Indefinite-lived assets $ 2,096 $ 1,945 |
Summary of Digital Assets | The table below outlines the fair value of our digital assets based on publicly available rates as of the dates presented as well as the cost (in thousands, except units): Units Cost Basis Fair Value As of June 30, 2024 Bitcoin 1,794 $ 53,963 $ 112,416 Ethereum 2,580 4,749 8,857 Other 4,702,915 6,955 3,525 Digital assets $ 65,667 $ 124,798 |
Summary of Other Operating Activities Settled in Digital Assets and USDC | The following table summarizes other operating activities settled in digital assets and USDC (in thousands): Six Months Ended 2024 2023 Revenue $ ( 51,538 ) $ ( 25,750 ) Expenses 11,308 10,273 Conversion to cash 19,130 8,343 Accounts receivable 239 ( 705 ) Payroll liabilities 1,791 954 Currency translation 668 ( 250 ) Other operating activities settled in digital assets and USDC $ ( 18,402 ) $ ( 7,135 ) |
Summary Of Digital Asset Activities | The following table summarizes the digital asset activities as of June 30, 2024 and December 31, 2023 (in thousands, except units): BTC ETH Other Units Value Units Value Units Value Balance, December 31, 2023 1,787 32,262 2,538 $ 2,022 4,625,187 $ 726 Adoption of ASU 2023-08 - 43,162 - 3,764 - 1,750 Balance, January 1, 2024 1,787 75,424 2,538 5,786 4,625,187 2,476 Additions (1) 390 20,244 12 39 143,003 544 Disposals (2) ( 385 ) ( 19,545 ) - - ( 106,050 ) ( 227 ) Gains (3) - 51,832 - 3,460 - 1,825 Losses (3) - ( 309 ) - ( 1 ) - ( 8 ) Balance, March 31, 2024 1,792 127,646 2,550 9,284 4,662,140 4,610 Additions (1) 241 15,813 30 101 132,460 614 Disposals (2) ( 239 ) ( 15,844 ) - - ( 91,685 ) ( 197 ) Gains (3) - 10,734 - 1,925 - 759 Losses (3) - ( 25,933 ) - ( 2,453 ) - ( 2,261 ) Balance, June 30, 2024 1,794 112,416 2,580 8,857 4,702,915 3,525 (1) Additions primarily relate to revenue generated from customers and staked assets. (2) Disposals primarily relate to payment of liabilities pertaining to vendor invoices and payroll payments. Disposals of digital assets to cash are primarily used for operational purposes. (3) The Company recognized cumulative realized gains from exchange of digital assets of $ 1.8 million and $ 6.2 million for the three and six months ended June 30, 2024, respectively and cumulative realized losses of $ 0.1 million and $ 0.4 million for both three and six months ended June 30, 2024 which is included on the condensed consolidated statements of operations and comprehensive (loss) income. |
Fixed Assets Net - (Tables)
Fixed Assets Net - (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Fixed Assets, Net | Fixed assets, net, consisted of the following (in thousands): June 30, 2024 December 31, 2023 Computer equipment $ 1,010 $ 870 Vehicles 237 256 Furniture and fixtures 21 21 Fixed assets, gross 1,268 1,147 Less: accumulated depreciation ( 866 ) ( 830 ) Fixed assets, net $ 402 $ 317 |
Software Assets, Net (Tables)
Software Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Finite Lived Intangible Assets Disclosure [Abstract] | |
Schedule of Software Assets, Net | Software assets, net, consisted of the following (in thousands): June 30, 2024 December 31, 2023 Internal use software $ 16,584 $ 16,208 Less: accumulated amortization ( 8,549 ) ( 8,157 ) Software assets, net $ 8,035 $ 8,051 |
Summary of Future Amortization Expense | The following summarizes the future amortization expense as of June 30, 2024 (in thousands): Six months ending December 31, 2024 $ 2,568 2025 3,416 2026 1,629 2027 422 $ 8,035 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activities for the six months ended June 30, 2024 and 2023: Weighted Average Exercise Price Options Price Outstanding as of January 1, 2023 2,190,979 $ 2.40 Exercised ( 300 ) 2.55 Forfeited ( 13,961 ) 2.50 Outstanding as of June 30, 2023 2,176,718 $ 2.40 Outstanding as of January 1, 2024 2,156,632 2.40 Forfeited ( 302 ) 2.39 Outstanding as of June 30, 2024 2,156,330 $ 2.40 Vested and exercisable as of June 30, 2024 2,145,802 $ 2.40 |
Schedule of Stock Based Compensation | Stock-based compensation is recorded on the Company’s condensed consolidated statements of operations and comprehensive (loss) income as follows (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Cost of revenues $ 924 $ 731 $ 1,729 $ 1,696 General and administrative 1,332 1,005 2,430 2,366 Stock-based compensation $ 2,256 $ 1,736 $ 4,159 $ 4,062 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets According to Fair Value Hierarchy | The Company’s financial assets are summarized below as of June 30, 2024 and December 31, 2023, with fair values shown according to the fair value hierarchy (in thousands): Carrying Quoted Significant Significant June 30, 2024 BTC $ 112,416 $ 112,416 $ - $ - Treasury bills 46,532 46,532 - - Money market mutual funds 8,781 8,781 - - ETH 8,857 8,857 - - Other digital assets 3,525 3,525 - - Security token group investment 100 (A) - - $ 180,211 December 31, 2023 Money market mutual funds $ 8,477 $ 8,477 $ - $ - Treasury bills 45,463 45,463 - - Security token group investment 100 (A) - - $ 54,040 (A) This investment is recorded at cost. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Income per Share of Common Stock | The following table sets forth the computation of basic and diluted net income per share of common stock (in thousands, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic net (loss) income per share: Numerator Net (loss) income, basic and diluted $ ( 9,606 ) $ 1,869 $ 45,181 $ 2,642 Denominator Weighted-average number of shares used in per share 4,486 3,804 4,774 3,702 Weighted-average number of shares used in per share 21,520 21,799 21,570 21,799 Basic net (loss) income per share - Class A $ ( 0.37 ) $ 0.07 $ 1.72 $ 0.10 Basic net (loss) income per share - Class B $ ( 0.37 ) $ 0.07 $ 1.72 $ 0.10 Diluted net (loss) income per share: Denominator Weighted-average number of shares used in diluted 4,486 7,300 8,185 7,207 Weighted-average number of shares used in diluted 21,520 23,978 23,727 23,983 Diluted net (loss) income per share - Class A $ ( 0.37 ) $ 0.06 $ 1.42 $ 0.08 Diluted net (loss) income per share - Class B $ ( 0.37 ) $ 0.06 $ 1.42 $ 0.08 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Significant Accounting Policy [Line Items] | ||||||
Stockholder equity | $ 199,074 | $ 190,806 | $ 103,761 | $ 91,975 | $ 88,742 | $ 85,844 |
Digital assets fair value | $ 124,800 | |||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2023-08 [Member] | Accounting Standards Update 2023-08 [Member] | ||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Retained Earnings | ||||||
Significant Accounting Policy [Line Items] | ||||||
Stockholder equity | $ 75,721 | $ 66,115 | (17,320) | $ (27,464) | $ (29,333) | $ (30,106) |
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Significant Accounting Policy [Line Items] | ||||||
Stockholder equity | 38,254 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | ||||||
Significant Accounting Policy [Line Items] | ||||||
Stockholder equity | 38,300 | $ 38,254 | ||||
Fair value adjustments offset | 48,700 | |||||
Tax impact related to fair value adjustments | $ 10,400 | |||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2023-08 [Member] | Accounting Standards Update 2023-08 [Member] |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Digital assets expense | $ 10,273 | |||
Conversion of digital assets and USDC to cash | 8,343 | |||
Originally Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Digital assets expense | 18,616 | |||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Digital assets expense | (8,343) | |||
Conversion of digital assets and USDC to cash | $ 8,343 | |||
Class A | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Basic net (loss) income per share | $ (0.37) | $ 0.07 | $ 1.72 | $ 0.1 |
Diluted net (loss) income per share | (0.37) | 0.06 | 1.42 | 0.08 |
Class A | Originally Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Basic net (loss) income per share | 0.49 | 0.71 | ||
Diluted net (loss) income per share | 0.26 | 0.37 | ||
Class A | Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Basic net (loss) income per share | (0.42) | (0.61) | ||
Diluted net (loss) income per share | (0.2) | (0.29) | ||
Class B | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Basic net (loss) income per share | (0.37) | 0.07 | 1.72 | 0.1 |
Diluted net (loss) income per share | $ (0.37) | 0.06 | $ 1.42 | 0.08 |
Class B | Originally Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Basic net (loss) income per share | 0.09 | 0.12 | ||
Diluted net (loss) income per share | 0.08 | 0.11 | ||
Class B | Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Basic net (loss) income per share | (0.02) | (0.02) | ||
Diluted net (loss) income per share | $ (0.02) | $ (0.03) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Operating Revenue (Details) - Concentration of credit risk - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Company A | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue | $ 3,832 | $ 2,346 | $ 10,532 | $ 4,048 | |
Company B | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue | 4,629 | 2,511 | 10,286 | 4,839 | |
Company C | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue | 4,360 | 1,996 | 9,094 | 4,134 | |
Company D | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue | $ 2,713 | 1,898 | $ 6,828 | 4,786 | |
Company E | |||||
Revenue, Major Customer [Line Items] | |||||
Revenue | [1] | $ 1,985 | $ 4,177 | ||
[1] Company E did not have over 10 % of revenue during the three and six months ended June 30, 2024. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Operating Revenue (Parenthetical) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Minimum | Total Operating Revenue | Customer Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 10% | 10% | 10% | 10% |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Operating Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | $ 22,308 | $ 12,405 | $ 51,368 | $ 25,750 |
Republic of the Marshall Islands | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | 7,072 | 3,895 | 15,921 | 8,921 |
British Virgin Islands | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | 2,639 | 5,836 | ||
Seychelles | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | 3,832 | 2,332 | 10,532 | 4,066 |
Hong Kong | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | 4,894 | 2,522 | 10,903 | 4,843 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | $ 6,510 | $ 1,017 | $ 14,012 | $ 2,084 |
API Providers | Total Operating Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
API Providers | Republic of the Marshall Islands | Total Operating Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 31.70% | 31.40% | 31% | 34.60% |
API Providers | British Virgin Islands | Total Operating Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 21.30% | 22.70% | ||
API Providers | Seychelles | Total Operating Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 17.20% | 18.80% | 20.50% | 15.80% |
API Providers | Hong Kong | Total Operating Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 21.90% | 20.30% | 21.20% | 18.80% |
API Providers | Other | Total Operating Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 29.20% | 8.20% | 27.30% | 8.10% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Operating Revenue Disaggregated by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | $ 22,308 | $ 12,405 | $ 51,368 | $ 25,750 |
Total Operating Revenue | Products and Services Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
Exchange Aggregation | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | $ 19,942 | $ 11,623 | $ 46,692 | $ 24,253 |
Exchange Aggregation | Total Operating Revenue | Products and Services Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 89.40% | 93.70% | 90.90% | 94.20% |
Fiat Onboarding | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | $ 952 | $ 561 | $ 1,963 | $ 1,088 |
Fiat Onboarding | Total Operating Revenue | Products and Services Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 4.30% | 4.50% | 3.80% | 4.20% |
Staking | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | $ 522 | $ 201 | $ 1,167 | $ 359 |
Staking | Total Operating Revenue | Products and Services Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 2.30% | 1.60% | 2.30% | 1.40% |
Consulting | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | $ 496 | $ 546 | $ 25 | |
Consulting | Total Operating Revenue | Products and Services Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 2.20% | 1.10% | 0.10% | |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
OPERATING REVENUES | $ 396 | $ 20 | $ 1,000 | $ 25 |
Other | Total Operating Revenue | Products and Services Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 1.80% | 0.20% | 1.90% | 0.10% |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Operating Revenue Disaggregated by Products and Services (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 22,308 | $ 12,405 | $ 51,368 | $ 25,750 |
Non-Fungible Token Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 400 | $ 900 |
Revenue Recognition - Schedul_4
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Balance at Beginning | $ 727 | $ 0 |
Contract liability | 100 | 1,000 |
Performance obligation satisfied | (456) | (273) |
Balance at End | $ 371 | $ 727 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue recognized | $ 0.4 |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information 1 (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining future performance obligations | $ 0.4 |
Remaining future performance obligations period |
Prepaid Expenses - Schedule of
Prepaid Expenses - Schedule of Prepaid Expenses Breakout (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Prepaid Expense, Current [Abstract] | ||
Prepaid cloud services | $ 894 | $ 413 |
Prepaid software | 760 | 281 |
Accounting, consulting, and legal services | 321 | 688 |
Prepaid insurance | 133 | 58 |
Prepaid expenses | $ 2,108 | $ 1,440 |
Intangible Assets - Summary of
Intangible Assets - Summary of Indefinite-lived Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived assets | $ 2,096 | $ 1,945 |
Domain Names | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived assets | $ 2,096 | $ 1,945 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2021 | Jun. 30, 2024 | |
Indefinite-Lived Intangible Assets [Line Items] | |||
Realized gains from exchange of digital assets | $ 1,800,000 | $ 6,200,000 | |
Realized losses from exchange of digital assets | 100,000 | 400,000 | |
Unrealized gains from remeasurement of digital assets | 11,500,000 | 64,300,000 | |
Digital assets held with contractual sale restrictions | 0 | 0 | |
Maximum | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Unrealized losses from remeasurement of digital assets | 30,600,000 | $ 30,600,000 | |
Domain Name | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Purchase of intangible assets | $ 200,000 | $ 1,900,000 |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Digital Assets (Details) $ in Thousands | Jun. 30, 2024 USD ($) Unit | Mar. 31, 2024 Unit | Dec. 31, 2023 Unit |
Indefinite-Lived Intangible Assets [Line Items] | |||
Fair value | $ 124,800 | ||
Bitcoin | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Units | Unit | 1,794 | 1,792 | 1,787 |
Cost Basis | $ 53,963 | ||
Fair value | $ 112,416 | ||
Ethereum | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Units | Unit | 2,580 | 2,550 | 2,538 |
Cost Basis | $ 4,749 | ||
Fair value | $ 8,857 | ||
Other | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Units | Unit | 4,702,915 | 4,662,140 | 4,625,187 |
Cost Basis | $ 6,955 | ||
Fair value | 3,525 | ||
Digital Assets | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Cost Basis | 65,667 | ||
Fair value | $ 124,798 |
Intangible Assets - Summary o_3
Intangible Assets - Summary of Other Operating Activities Settled in Digital Assets and USDC (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Revenue | $ (51,538) | $ (25,750) | |
Expenses | 11,308 | 10,273 | |
Conversion to cash | 19,130 | 8,343 | |
Accounts receivable | 239 | (705) | |
Payroll liabilities | 1,791 | 954 | |
Currency translation | 668 | (250) | |
Other operating activities settled in digital assets and USDC | [1] | $ (18,402) | $ (7,135) |
[1] See Note 5, “Intangible Assets”. |
Intangible Assets - Summary O_4
Intangible Assets - Summary Of Digital Assets Activities (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 USD ($) Unit | Mar. 31, 2024 USD ($) Unit | ||
BTC | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Beginning Balance Of Units | Unit | 1,792 | 1,787 | |
Beginning Balance Of Value | $ 127,646 | $ 32,262 | |
Beginning Balance Of Value After Adoption | $ 75,424 | ||
Additions, Units | Unit | [1] | 241 | 390 |
Additions, Value | [1] | $ 15,813 | $ 20,244 |
Disposals, Units | Unit | [2] | (239) | (385) |
Disposals, Value | [2] | $ (15,844) | $ (19,545) |
Gains | [3] | 10,734 | 51,832 |
Losses | [3] | $ (25,933) | $ (309) |
Ending Balance Of Units | Unit | 1,794 | 1,792 | |
Ending Balance Of Value | $ 112,416 | $ 127,646 | |
BTC | Adoption of ASU 2023-08 | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Beginning Balance Of Value | $ 43,162 | ||
ETH | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Beginning Balance Of Units | Unit | 2,550 | 2,538 | |
Beginning Balance Of Value | $ 9,284 | $ 2,022 | |
Beginning Balance Of Value After Adoption | $ 5,786 | ||
Additions, Units | Unit | [1] | 30 | 12 |
Additions, Value | [1] | $ 101 | $ 39 |
Gains | [3] | 1,925 | 3,460 |
Losses | [3] | $ (2,453) | $ (1) |
Ending Balance Of Units | Unit | 2,580 | 2,550 | |
Ending Balance Of Value | $ 8,857 | $ 9,284 | |
ETH | Adoption of ASU 2023-08 | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Beginning Balance Of Value | $ 3,764 | ||
Other | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Beginning Balance Of Units | Unit | 4,662,140 | 4,625,187 | |
Beginning Balance Of Value | $ 4,610 | $ 726 | |
Beginning Balance Of Value After Adoption | $ 2,476 | ||
Additions, Units | Unit | [1] | 132,460 | 143,003 |
Additions, Value | [1] | $ 614 | $ 544 |
Disposals, Units | Unit | [2] | (91,685) | (106,050) |
Disposals, Value | [2] | $ (197) | $ (227) |
Gains | [3] | 759 | 1,825 |
Losses | [3] | $ (2,261) | $ (8) |
Ending Balance Of Units | Unit | 4,702,915 | 4,662,140 | |
Ending Balance Of Value | $ 3,525 | $ 4,610 | |
Other | Adoption of ASU 2023-08 | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Beginning Balance Of Value | $ 1,750 | ||
[1] Additions primarily relate to revenue generated from customers and staked assets. Disposals primarily relate to payment of liabilities pertaining to vendor invoices and payroll payments. Disposals of digital assets to cash are primarily used for operational purposes. The Company recognized cumulative realized gains from exchange of digital assets of $ 1.8 million and $ 6.2 million for the three and six months ended June 30, 2024, respectively and cumulative realized losses of $ 0.1 million and $ 0.4 million for both three and six months ended June 30, 2024 which is included on the condensed consolidated statements of operations and comprehensive (loss) income. |
Intangible Assets - Summary O_5
Intangible Assets - Summary Of Digital Assets Activities (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Cumulative realized gains from exchange of digital assets | $ 1.8 | $ 6.2 |
Cumulative realized losses from exchange of digital assets | $ 0.1 | $ 0.4 |
Fixed Assets, Net - Schedule of
Fixed Assets, Net - Schedule of Fixed Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 1,268 | $ 1,147 |
Less: accumulated depreciation | (866) | (830) |
Fixed assets, net | 402 | 317 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 1,010 | 870 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 237 | 256 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 21 | $ 21 |
Fixed Assets, Net - Additional
Fixed Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 0.1 | $ 0.1 | $ 0.2 | |
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 0.1 |
Software Assets, Net - Schedule
Software Assets, Net - Schedule of Software Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ (8,549) | $ (8,157) |
Software assets, net | 8,035 | 8,051 |
Internal Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software assets, gross | $ 16,584 | $ 16,208 |
Software Assets, Net - Summary
Software Assets, Net - Summary of Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Six months ending December 31, 2024 | $ 2,568 | |
2025 | 3,416 | |
2026 | 1,629 | |
2027 | 422 | |
Software assets, net | $ 8,035 | $ 8,051 |
Software Assets, Net - Addition
Software Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Finite Lived Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 1.2 | $ 1.1 | $ 2.4 | $ 2 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Aug. 31, 2021 | Sep. 30, 2019 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Outstanding stock option | 2,156,330 | 2,176,718 | 2,156,330 | 2,176,718 | 2,156,632 | 2,190,979 | ||
Stock based compensation | $ 2,256 | $ 1,736 | $ 4,159 | $ 4,062 | ||||
Unrecognized stock-based compensation expense | $ 5,800 | $ 5,800 | ||||||
Class A Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock voting rights, description | one vote per share | |||||||
Shares issued upon conversion | 1 | |||||||
Class B Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock voting rights, description | ten votes per share | |||||||
2019 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-Based Payment Award, Description | The exercise price for options issued under the 2019 Plan is determined by the board of directors, but will be (i) in the case of an incentive stock option granted to an employee or consultant who owns stock representing more than 10% of the voting power of all classes of stock of Exodus, no less than 110% of the fair market value per share on the date of grant; or (ii) granted to any other employee or consultant, no less than 100% of the fair market value per share on the date of grant. | |||||||
Contractual life for options issued | 10 years | |||||||
2019 Equity Incentive Plan | Class B Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Outstanding stock option | 2,156,330 | 2,156,330 | ||||||
2019 Equity Incentive Plan | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of authorized shares | 3,000,000 | |||||||
2021 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-Based Payment Award, Description | The exercise price for options issued under the 2021 Plan is determined by the board of directors, but will be (i) in the case of an incentive stock option granted to an employee who owns stock representing more than 10% of the voting power of all classes of stock of Exodus, no less than 110% of the fair market value per share on the date of grant; or (ii) granted to any other employee or consultant, no less than 100% of the fair market value per share on the date of grant. | |||||||
Contractual life for options issued | 10 years | |||||||
Percentage of increase in share pool | 5% | |||||||
2021 Equity Incentive Plan | Class A Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Increase in stock reserved for issuance | 1,875,000 | 1,875,000 | ||||||
Common stock reserved for future issuance | 6,530,000 | |||||||
2021 Equity Incentive Plan | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of authorized shares | 2,780,000 | |||||||
RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Fair value | $ 63,500 | |||||||
RSUs | 2021 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of authorized shares | 3,735,395 | 3,735,395 | ||||||
Number of vested shares, but not issued | 453 | |||||||
Options and Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock based compensation | $ 2,300 | $ 1,700 | $ 4,200 | $ 4,100 |
Stockholders' Equity- Schedule
Stockholders' Equity- Schedule of Stock Option Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Options Outstanding | ||
Outstanding | 2,156,632 | 2,190,979 |
Exercised | (300) | |
Forfeited | (302) | (13,961) |
Outstanding | 2,156,330 | 2,176,718 |
Weighted Average Exercise Price Price | ||
Outstanding | $ 2.4 | $ 2.4 |
Exercised | 2.55 | |
Forfeited | 2.39 | 2.5 |
Outstanding | $ 2.4 | $ 2.4 |
Options, Vested and exercisable | 2,145,802 | |
Weighted Average Exercise Price, Vested and exercisable | $ 2.4 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation | $ 2,256 | $ 1,736 | $ 4,159 | $ 4,062 |
Cost of Revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation | 924 | 731 | 1,729 | 1,696 |
General and Administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation | $ 1,332 | $ 1,005 | $ 2,430 | $ 2,366 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 17.30% | 24.20% | ||
Income before income taxes | $ (13,487) | $ 2,026 | $ 54,466 | $ 3,506 |
income tax expense | $ (3,881) | $ 157 | $ 9,285 | $ 864 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets According to Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | $ 180,211 | $ 54,040 | |
Carrying Value | Money Market Mutual Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 8,781 | 8,477 | |
Carrying Value | Treasury Bills | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 46,532 | 45,463 | |
Carrying Value | Security Token Group Investment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | [1] | 100 | 100 |
Carrying Value | BTC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 112,416 | ||
Carrying Value | ETH | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 8,857 | ||
Carrying Value | Other Digital Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 3,525 | ||
Level 1 | Money Market Mutual Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 8,781 | 8,477 | |
Level 1 | Treasury Bills | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 46,532 | $ 45,463 | |
Level 1 | BTC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 112,416 | ||
Level 1 | ETH | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 8,857 | ||
Level 1 | Other Digital Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | $ 3,525 | ||
[1] This investment is recorded at cost. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Treasury bills held in other current assets | $ 42,420 | $ 43,151 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate of treasury bills held to maturity | 0.80% | 0.40% |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate of treasury bills held to maturity | 2.50% | 2.60% |
Treasury Bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Treasury bills held in other current assets | $ 42,400 | $ 43,200 |
Treasury bills with a maturity in cash and cash equivalents | $ 4,100 | $ 2,300 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computation of Basic and Diluted Net Income per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic net (loss) income per share, Numerator | ||||||
Net (loss) income, basic and diluted | $ (9,606) | $ 54,787 | $ 1,869 | $ 773 | $ 45,181 | $ 2,642 |
Common Class A [Member] | ||||||
Basic net (loss) income per share, Denominator | ||||||
Weighted average number of shares used in basic computation | 4,486 | 3,804 | 4,774 | 3,702 | ||
Basic net (loss) income per share | $ (0.37) | $ 0.07 | $ 1.72 | $ 0.1 | ||
Diluted net (loss) income per share, Denominator | ||||||
Weighted average number of shares used in diluted computation | 4,486 | 7,300 | 8,185 | 7,207 | ||
Diluted net (loss) income per share | $ (0.37) | $ 0.06 | $ 1.42 | $ 0.08 | ||
Common Class B [Member] | ||||||
Basic net (loss) income per share, Denominator | ||||||
Weighted average number of shares used in basic computation | 21,520 | 21,799 | 21,570 | 21,799 | ||
Basic net (loss) income per share | $ (0.37) | $ 0.07 | $ 1.72 | $ 0.1 | ||
Diluted net (loss) income per share, Denominator | ||||||
Weighted average number of shares used in diluted computation | 21,520 | 23,978 | 23,727 | 23,983 | ||
Diluted net (loss) income per share | $ (0.37) | $ 0.06 | $ 1.42 | $ 0.08 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | |||||
Unrealized loss on investments | $ 158 | $ 85 | $ (86) | $ 189 | |
Technology Agreement | tZERO Technologies, LLC | |||||
Related Party Transaction [Line Items] | |||||
Related party description | Exodus signed an Application Development and Technology Agreement (the “Technology Agreement”) with tZERO Technologies, LLC (“tZERO”) in May of 2021. tZERO is a software technology company that provides its technology to tZERO Markets, LLC to enable it to provide licensed, efficient and automated securities brokerage services to its retail customers (the “tZERO Technology”). | ||||
Unrealized loss on investments | $ 100 | ||||
Related party, expiration date | Dec. 11, 2023 | ||||
Technology Agreement | Maximum | tZERO Technologies, LLC | |||||
Related Party Transaction [Line Items] | |||||
Unrealized loss on investments | $ 100 |