Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | Digihost Technology Inc. |
Trading Symbol | DGHI |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 27,842,204 |
Amendment Flag | false |
Entity Central Index Key | 0001854368 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40527 |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 18 King Street East |
Entity Address, Address Line Two | Suite 902 |
Entity Address, Address Line Three | Toronto |
Entity Address, City or Town | Ontario |
Entity Address, Postal Zip Code | M5C 1C4 |
Entity Address, Country | CA |
Title of 12(b) Security | Subordinate Voting Shares |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Name | Raymond Chabot Grant Thornton LLP |
Auditor Location | Montreal, Canada |
Auditor Firm ID | 1232 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 18 King Street East |
Entity Address, Address Line Two | Suite 902 |
Entity Address, Address Line Three | Toronto |
Entity Address, City or Town | Ontario |
Entity Address, Postal Zip Code | M5C 1C4 |
Entity Address, Country | CA |
Contact Personnel Name | Michel Amar, CEO |
Contact Personnel Fax Number | michel@digihostblockchain.com |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | |||
Cash | $ 1,850,622 | $ 915,715 | $ 31,250 |
Digital currencies (note 3) | 2,800,657 | 33,491,986 | 4,508,042 |
Amounts receivable and prepaid expenses (note 4) | 1,234,175 | 1,808,304 | 12,622 |
Loan receivable | 141,552 | ||
Income tax receivable | 244,399 | ||
Total current assets | 6,129,853 | 36,216,005 | 4,693,466 |
Property, plant and equipment (note 5) | 41,811,233 | 38,142,107 | 6,497,634 |
Right-of-use assets (note 6) | 2,538,447 | 2,078,599 | 2,413,720 |
Intangible asset (note 7) | 1,314,028 | 1,443,260 | 1,572,500 |
Goodwill (note 8) | 1,346,904 | 1,342,281 | |
Promissory note receivable (note 9) | 806,000 | 800,000 | |
Total assets | 52,599,561 | 80,026,875 | 16,519,601 |
Current liabilities | |||
Accounts payable and accrued liabilities | 2,345,175 | 2,272,850 | 920,914 |
Amount owing to Northern Data, NY LLC (notes 3 and 5) | 322,099 | 2,940,412 | |
Lease liabilities (note 10) | 99,957 | 111,672 | |
Income tax payable | 305,601 | ||
Loans payable | 2,010,172 | ||
Mortgage payable (note 12) | 488,062 | ||
Total current liabilities | 3,255,293 | 5,518,863 | 3,042,758 |
Deposits payable | 511,000 | 1,788,500 | |
Lease liabilities (note 10) | 447,514 | 2,434,488 | |
Mortgage payable (note 12) | 389,065 | ||
Loans payable | 532,911 | ||
Deferred tax liability | 2,514,743 | 65,638 | |
Warrant liabilities (note 13) | 821,697 | 31,943,365 | |
Total liabilities | 5,424,569 | 41,765,471 | 6,075,795 |
Shareholders’ equity Share capital (note 14) | 39,602,634 | 31,423,095 | 12,541,038 |
Contributed surplus | 15,675,828 | 11,844,581 | 1,267,551 |
Cumulative translation adjustment | (3,491,583) | 167,068 | 118,162 |
Digital currency revaluation reserve | 3,706,624 | 1,982,501 | |
Deficit | (4,611,887) | (8,879,964) | (5,465,446) |
Total shareholders’ equity | 47,174,992 | 38,261,404 | 10,443,806 |
Total liabilities and shareholders’ equity | $ 52,599,561 | $ 80,026,875 | $ 16,519,601 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Revenue from digital currency mining (note 3) | $ 24,190,060 | $ 24,952,344 | $ 3,553,362 |
Cost of digital currency mining | |||
Cost of power | (14,537,261) | (5,835,227) | (4,163,007) |
Other production costs | (3,223,525) | (1,237,537) | |
Depreciation and amortization | (10,709,108) | (3,281,143) | (3,387,043) |
Miner lease and hosting agreement (note 3) | (2,517,503) | (3,469,287) | |
Gross profit (loss) | (6,797,337) | 11,129,150 | (3,996,688) |
Expenses | |||
Office and administrative expenses | (3,074,423) | (1,182,258) | (233,227) |
Professional fees | (1,745,613) | (1,496,418) | (229,573) |
Regulatory fees | (235,445) | (162,681) | (77,827) |
Gain on sale of property, plant and equipment | 1,140,658 | 1,552,295 | |
Loss on settlement of debt | (294,306) | (390,290) | |
Foreign exchange gain | 3,972,705 | 358,985 | |
Gain (loss) on sale of digital currencies (note 3) | (11,574,330) | 290,948 | 62,799 |
Loss on digital currency option calls | (1,950,000) | ||
Other (expense) income | (50,834) | 98,443 | 44,068 |
Change in fair value of amount owing for Miner Lease Agreement | 1,693,088 | 528,875 | |
Insurance proceeds | 109,900 | ||
Share based compensation (note 16) | (3,296,238) | (7,804,271) | (1,247,551) |
Loss on revaluation of digital currencies (note 3) | (3,256,530) | ||
Impairment of goodwill (note 8) | (1,260,783) | ||
Impairment of data miners (note 5) | (1,556,000) | ||
Operating (loss) income | (28,285,388) | 2,922,778 | (5,568,099) |
Revaluation of warrant liabilities (note 13) | 32,010,637 | 1,551,013 | |
Net financial expenses (note 20) | (238,204) | (332,814) | (258,427) |
Private placements issuance costs | (695,170) | (4,973,051) | |
Net income (loss) before income taxes | 2,791,875 | (832,074) | (5,826,526) |
Income tax expense | (127,340) | ||
Deferred tax recovery (expense) | 1,537,467 | (2,173,279) | 635,813 |
Net income (loss) for the year | 4,329,342 | (3,132,693) | (5,190,713) |
Other comprehensive income (loss) | |||
Items that will be reclassified to net income Foreign currency translation adjustment | (3,658,651) | 48,906 | 118,162 |
Items that will not be reclassified to net income Revaluation of digital currencies, net of tax | (3,706,624) | 1,724,123 | 1,982,501 |
Total comprehensive loss for the year | $ (3,035,933) | $ (1,359,664) | $ (3,090,050) |
Basic income (loss) per share (note 17) (in Dollars per share) | $ 0.16 | $ (0.14) | $ (0.44) |
Diluted income (loss) per share (note 17) (in Dollars per share) | $ 0.16 | $ (0.14) | $ (0.44) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income (loss) for the year | $ 4,329,342 | $ (3,132,693) | $ (5,190,713) |
Adjustments for: | |||
Digital currencies items (note 19) | 15,528,972 | (21,774,005) | (1,824,090) |
Gain on sale of property, plant and equipment | (1,140,658) | (1,552,295) | |
Depreciation of right-of-use assets | 142,324 | 198,291 | 174,388 |
Depreciation and amortization | 10,657,144 | 3,082,852 | 3,212,655 |
Interest on lease liabilities | 58,014 | 236,680 | 216,435 |
Change in fair value of amount owing to Northern Data | (1,693,088) | (528,875) | |
Share based compensation | 3,296,238 | 7,804,271 | |
Change in warrant liability | (32,010,637) | (1,551,013) | |
Share issuance cost | 695,170 | 4,973,051 | 1,247,551 |
Loss on settlement of debt | 294,306 | 390,290 | |
Change in fair value of promissory note receivable | (6,000) | ||
Impairment of goodwill | 1,260,783 | ||
Impairment of data miners | 1,556,000 | ||
Income tax expense | 127,340 | ||
Deferred tax (recovery) expense | (1,537,467) | 2,173,279 | (635,813) |
Foreign exchange gain | (3,660,296) | (333,148) | 63,464 |
Working capital items (note 19) | (1,181,046) | 1,026,381 | 486,266 |
Net cash used in operating activities | (3,410,899) | (8,859,594) | (2,249,857) |
Investing activities | |||
Purchase of property, plant and equipment | (14,685,038) | (33,924,780) | (1,154,260) |
Net funds for loan receivable | (113,917) | ||
Proceeds from sale of property, plant and equipment | 795,000 | ||
Acquisition of digital currency option calls | (623,000) | ||
Promissory note receivable | (800,000) | ||
Net cash used in investing activities | (14,513,038) | (34,724,780) | (1,268,177) |
Financing activities | |||
Proceeds from private placement, net of costs | 8,314,269 | 50,218,093 | (39,335) |
Proceeds from pre-funded warrants | 1,029,600 | ||
Repayment of mortgage | (133,500) | ||
Repurchase of shares | (255,525) | (599,997) | 20 |
Proceeds from loans payable | 10,000,000 | 1,473,495 | 2,543,083 |
Repayment of loans payable | (3,975,083) | ||
Lease payments | (96,000) | (2,647,669) | (258,381) |
Net cash provided by financing activities | 18,858,844 | 44,468,839 | 2,245,347 |
Net change in cash | 934,907 | 884,465 | (1,272,687) |
Cash, beginning of year | 915,715 | 31,250 | 1,303,937 |
Cash, end of year | 1,850,622 | 915,715 | 31,250 |
Supplemental information | |||
Interest paid | $ 238,204 | $ 117,697 | $ 18,114 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders’ Equity - USD ($) | Subordinate voting shares | Proportionate voting shares | Share capital | Contributed surplus | Translation Adjustment | Digital currency revaluation reserve | Deficit | Total |
Balance at Dec. 31, 2019 | $ 20 | $ (274,733) | $ (274,713) | |||||
Balance (in Shares) at Dec. 31, 2019 | 2,176,805 | |||||||
Issuance of Old Digihost shares for transfer of lease and property and equipment and intangibles | 5,480,000 | 5,480,000 | ||||||
Cancellation of founder shares | (20) | (20) | ||||||
Shares issued pursuant to reverse takeover transaction | 2,957,458 | 2,957,458 | ||||||
Shares issued pursuant to reverse takeover transaction (in Shares) | 9,940,000 | |||||||
Private placement | 4,044,431 | 20,000 | 4,064,431 | |||||
Private placement (in Shares) | 1,864,162 | |||||||
Share exchange for proportionate voting shares | ||||||||
Share exchange for proportionate voting shares (in Shares) | (666,666) | 3,333 | ||||||
Shares issued as payment for accounts payable | 59,149 | 59,149 | ||||||
Shares issued as payment for accounts payable (in Shares) | 43,537 | |||||||
Share based compensation | 1,247,551 | 1,247,551 | ||||||
Transaction with owners | 12,541,038 | 1,267,551 | (274,733) | 13,533,856 | ||||
Transaction with owners (in Shares) | 13,357,838 | 3,333 | ||||||
Foreign currency translation adjustment | 118,162 | 118,162 | ||||||
Revaluation of digital currencies, net of tax | 1,982,501 | 1,982,501 | ||||||
Net income for the year | (5,190,713) | (5,190,713) | ||||||
Total comprehensive loss for the year | 118,162 | 1,982,501 | (5,190,713) | (3,090,050) | ||||
Balance at Dec. 31, 2020 | 12,541,038 | 1,267,551 | 118,162 | 1,982,501 | (5,465,446) | $ 10,443,806 | ||
Balance (in Shares) at Dec. 31, 2020 | 13,357,838 | 3,333 | 36,858 | |||||
Private placement | 21,175,816 | $ 21,175,816 | ||||||
Private placement (in Shares) | 11,555,674 | |||||||
Cost of issue - cash | (1,729,158) | (1,729,158) | ||||||
Cost of issue - broker warrants | (963,548) | 2,827,528 | 1,863,980 | |||||
Shares issued as payment for accounts payable | 345,055 | 345,055 | ||||||
Shares issued as payment for accounts payable (in Shares) | 82,803 | |||||||
Shares cancelled | (319,040) | (281,825) | (600,865) | |||||
Shares cancelled (in Shares) | (164,533) | |||||||
Shares issued as commission | ||||||||
Shares issued as commission (in Shares) | 49,383 | |||||||
Shares issued for exercise of stock options | 372,932 | (181,953) | 190,979 | |||||
Shares issued for exercise of stock options (in Shares) | 75,000 | |||||||
Share based compensation | 7,804,271 | 7,804,271 | ||||||
Excess tax benefit on exercised stock options | 56,702 | 56,702 | ||||||
Excess tax benefit on outstanding stock options | 70,482 | 70,482 | ||||||
Transaction with owners | 31,423,095 | 11,844,581 | 118,162 | 1,982,501 | (5,747,271) | 39,621,068 | ||
Transaction with owners (in Shares) | 24,956,165 | 3,333 | ||||||
Foreign currency translation adjustment | 48,906 | 48,906 | ||||||
Revaluation of digital currencies, net of tax | 1,724,123 | 1,724,123 | ||||||
Net income for the year | (3,132,693) | (3,132,693) | ||||||
Total comprehensive loss for the year | 48,906 | 1,724,123 | (3,132,693) | (1,359,664) | ||||
Balance at Dec. 31, 2021 | 31,423,095 | 11,844,581 | 167,068 | 3,706,624 | (8,879,964) | $ 38,261,404 | ||
Balance (in Shares) at Dec. 31, 2021 | 24,956,165 | 3,333 | 9,098,514 | |||||
Private placement | 15,255,979 | $ 15,255,979 | ||||||
Private placement (in Shares) | 2,729,748 | |||||||
Cost of issue - cash | (547,307) | (547,307) | ||||||
Cost of issue - broker warrants | (270,978) | 535,009 | 264,031 | |||||
Warrant liabilities | (7,007,643) | (7,007,643) | ||||||
Shares repurchased | (194,260) | (61,265) | (255,525) | |||||
Shares repurchased (in Shares) | (165,200) | |||||||
Shares issued for cash | 2,469 | 2,469 | ||||||
Shares issued for cash (in Shares) | 2,100 | |||||||
Shares issued for exercise of pre-funded warrants | 927,463 | 927,463 | ||||||
Shares issued for exercise of pre-funded warrants (in Shares) | 300,000 | |||||||
Share based compensation | 3,296,238 | 3,296,238 | ||||||
Shares issued to settle payable | 13,816 | 13,816 | ||||||
Shares issued to settle payable (in Shares) | 19,391 | |||||||
Transaction with owners | 39,602,634 | 15,675,828 | 167,068 | 3,706,624 | (8,941,229) | 50,210,925 | ||
Transaction with owners (in Shares) | 27,842,204 | 3,333 | ||||||
Foreign currency translation adjustment | (3,658,651) | (3,658,651) | ||||||
Revaluation of digital currencies, net of tax | (3,706,624) | (3,706,624) | ||||||
Net income for the year | 4,329,342 | 4,329,342 | ||||||
Total comprehensive loss for the year | (3,658,651) | (3,706,624) | 4,329,342 | (3,035,933) | ||||
Balance at Dec. 31, 2022 | $ 39,602,634 | $ 15,675,828 | $ (3,491,583) | $ (4,611,887) | $ 47,174,992 | |||
Balance (in Shares) at Dec. 31, 2022 | 27,842,204 | 3,333 | 9,098,514 |
Nature of Operations and Going
Nature of Operations and Going Concern | 12 Months Ended |
Dec. 31, 2022 | |
Nature of operations and going concern [Abstract] | |
Nature of operations and going concern | 1. Nature of operations and going concern Digihost Technology Inc. (the “Company” or “Digihost”) was incorporated in British Columbia, Canada, on February 18, 2017 as Chortle Capital Corp and subsequently changed its name to HashChain Technology Inc. on September 18, 2017, and again to Digihost Technology Inc. on February 14, 2020. Digihost and its subsidiaries, Digihost International, Inc., and DGX Holding, LLC (together the “Company”) is a blockchain technology company with operations in cryptocurrency mining. The head office of the Company is located at 2830 Produce Row, Houston, TX, 77023. These consolidated financial statements of the Company were reviewed, approved and authorized for issue by the Board of Directors on July 14, 2023. Going Concern These consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assume that the Company will continue in operation and will be able to realize its assets and discharge its liabilities in the normal course of operations. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to twelve months from the end of the reporting period. The use of these principles may not be appropriate. As at December 31, 2022, the Company has a working capital of $2,874,560 (2021 - $30,697,142, 2020 - $1,650,708) and did not generate positive cashflows from its operations since its incorporation. The current working capital is not sufficient to meet the Company’s requirements and business growth initiatives. The Company’s ability to continue as a going concern depends upon its ability generate positive cashflows from its operations and to raise additional financing. Even if the Company has been successful in the past in raising financings, there is no assurance that it will manage to obtain additional financing in the future. These material uncertainties may cast significant doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments or disclosures that may be necessary should the Company not be able to continue as a going concern. If this were the case, these adjustments could be material. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Significant Accounting Policies [Abstract] | |
Significant accounting policies | 2. Significant accounting policies (a) Statement of compliance The consolidated financial statements have been prepared in accordance with IFRS issued effective for the Company’s reporting for the year ended December 31, 2022. (b) Statement of presentation The Company’s consolidated financial statements have been prepared on an accrual basis and under the historical cost basis. (c) Basis of consolidation These consolidated financial statements include the accounts of Digihost and its wholly owned subsidiaries: Digihost International, Inc. and DGX Holdings, LLC. Subsidiaries are consolidated from the date of acquisition, being the date on which the Company obtains control, and continues to be consolidated until the date that such control ceases. Control is achieved when an investor has power over an investee to direct its activities, exposure to variable returns from an investee, and the ability to use the power to affect the investor’s returns. All intercompany transactions and balances have been eliminated upon consolidation. (d) Functional and presentation currency These financial statements are presented in United States dollars. The functional currency of Digihost is the Canadian dollar and the functional currency of Digihost International, Inc. and DGX Holding, LLC is the United States dollars. All financial information is expressed in United States dollars, unless otherwise stated. (e) Foreign currency translation Monetary assets and liabilities denominated in foreign currencies are translated to the respective functional currency at exchange rates in effect at the reporting date. Non-monetary assets and liabilities are translated at historical exchange rates at the respective transaction dates. Revenue and expenses are translated at the rate of exchange at each transaction date. Gains or losses on translation are included in foreign exchange expense. The results and financial position of an entity whose functional currency are translated into a different presentation currency are treated as follows: ● assets and liabilities are translated at the closing rate at the reporting date; ● income and expenses for each income statement are translated at average exchange rates at the dates of the period; and ● all resulting exchange differences are recognized in other comprehensive income as cumulative translation adjustments. (f) Revenue recognition The Company recognizes revenue from the provision of transaction verification services within digital currency networks, commonly termed “cryptocurrency mining.” As consideration for these services, the Company receives digital currency from each specific cryptocurrency mining pool in which it participates. Revenue is measured based on the fair value of the digital currencies received. The fair value is determined using the spot price of the digital currencies on the date of receipt. Digital currencies are considered earned on the completion and addition of a block to the blockchain, at which time the economic benefit is received and can be reliably measured. (g) Digital currencies Digital currencies consist of Bitcoin and Ethereum. Digital currencies meet the definition of intangible assets in IAS 38 Intangible Assets as they are identifiable non-monetary assets without physical substance. They are initially recorded at cost and the revaluation method is used to measure the digital currencies subsequently. Where digital assets are recognized as revenue, the fair value of the Bitcoin received is considered to be the cost of the digital assets. Under the revaluation method, increases in fair value are recorded in other comprehensive income, while decreases are recorded in profit or loss. The Company revalues its digital currencies at the end of each quarter. There is no recycling of gains from other comprehensive income to profit or loss. However, to the extent that an increase in fair value reverses a previous decrease in fair value that has been recorded in profit or loss, that increase is recorded in profit or loss. Decreases in fair value that reverse gains previously recorded in other comprehensive income are recorded in other comprehensive income. Gains and losses on digital currencies sold between revaluation dates are included in profit or loss. Digital currencies are measured at fair value using the quoted price on CoinMarketCap. CoinMarketCap is a pricing aggregator, as the principal market or most advantageous market is not always known. The Company believes any price difference amongst the principal market and an aggregated price to be immaterial. Management considers this fair value to be a Level 2 input under IFRS 13 Fair Value Measurement fair value hierarchy as the price on this source represents an average of quoted prices on multiple digital currency exchanges. (h) Property, plant and equipment Details as to the Company’s policies for property, plant and equipment are as follows: Asset Amortization method Amortization period Data miners Straight-line 12 - 36 months Equipment Straight-line 36 and 120 months Leasehold improvement Straight-line 120 months Powerplant in use Straight-line 480 months Property, plant and equipment are recorded at cost less accumulated depreciation. Cost includes all expenditures incurred to bring assets to the location and condition necessary for them to be operated in the manner intended by management. Material residual value estimates and estimates of useful life are updated as required, but at least annually. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any replaced parts is derecognized. All other repairs and maintenance are charged to profit or loss during the fiscal year in which they are incurred. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognized in profit or loss. (i) Intangible assets Intangible assets are accounted for using the cost model whereby capitalized costs are amortized on a straight-line basis over their estimated useful lives. Residual values and useful lives are reviewed at each reporting date. The right of use of an electric power facility is depreciated over 13 years. When an intangible asset is disposed of, the gain or loss on disposal is determined as the difference between the proceeds and the carrying amount of the asset, and is recognized in profit or loss. Amortization of intangible assets has been included in depreciation and amortization in the consolidated statement of comprehensive loss. (j) Impairment of non-financial assets The Company reviews the carrying amounts of its non-financial assets, including property, plant and equipment, right of use assets and intangible assets when events or changes in circumstances indicate the assets may not be recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. Assets carried at fair value, such as digital currencies, are excluded from impairment analysis. Cash generating units to which goodwill has been allocated are tested for impairment annually. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows to be derived from continuing use of the asset or cash generating unit are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Fair value less costs of disposal is the amount obtainable from the sale of an asset or cash generating unit in an arm’s length transaction between knowledgeable, willing parties, less the cost of disposal. When a binding sale agreement is not available, fair value less costs of disposal is estimated using a discounted cash flow approach with inputs and assumptions consistent with those of a market participant. If the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash generating unit is reduced to its recoverable amount. An impairment loss is recognized immediately in net income. With the exception of goodwill, where an impairment loss subsequently reverses, the carrying amount of the asset or cash generating unit is increased to the revised estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized. (k) Leases and right-of-use assets All leases are accounted for by recognizing a right-of-use asset and a lease liability except for: ° Leases of low value assets; and ° Leases with a duration of 12 months or less. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by the incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate. On initial recognition, the carrying value of the lease liability also includes: ° Amounts expected to be payable under any residual value guarantee; ° The exercise price of any purchase option granted if it is reasonable certain to assess that option; and ° Any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised. Right-of-use assets are initially measured at cost, which includes the initial amount of the lease liability, reduced for any lease incentives received, and increased for: ° Lease payments made at or before commencement of the lease; ° Initial direct costs incurred; and ° The amount of any provision recognized where the Company is contractually required to dismantle, remove or restore the leased asset. Lease liabilities, on initial measurement, increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if this is judged to be shorter than the lease term. When the Company revises its estimate of the term of any lease, it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted at the same discount rate that applied on lease commencement. The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent on a rate or index is revised. In both cases, an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortized over the remaining (revised) lease term or recorded in profit or loss if the right-of-use asset is reduced to zero. (l) Goodwill The Company measures goodwill as the fair value of the cost of the acquisition less the fair value of the identifiable net assets acquired, all measured as of the acquisition date. Goodwill is carried at cost less accumulated impairment losses. (m) Financial instruments Financial assets are classified and measured based on the business model in which they are held and the characteristics of their con tractual cash flows. The primary measurement categories for financial assets are measured at amortized cost, fair value through other comprehensive income (“FVTOCI”) and fair value through profit and loss (“FVTPL”). Financial assets Financial assets are classified as either financial assets at FVTPL, amortized cost, or FVTOCI. The Company determines the classification of its financial assets at initial recognition. The Company does not have any financial assets categorized as FVTOCI. ● Amortized cost Financial assets are classified as measured at amortized cost if both of the following criteria are met: 1) the object of the Company’s business model for these financial assets is to collect their contractual cash flows; and 2) the asset’s contractual cash flows represent “solely payments of principal and interest.” After initial recognition, these are measured at amortized cost using the effective interest rate method. Discounting is omitted where the effect of discounting is immaterial. The Company’s cash and amounts receivables are classified as financial assets and measured at amortized cost. Revenues from these financial assets are recognized in financial revenues, if any. ● FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transactions costs expensed in the consolidated statements of net loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets held at FVTPL are recorded in the consolidated statements of comprehensive income in the period in which they arise. The Company’s promissory note receivable is classified as a financial asset and measured at FVTPL. Financial liabilities Financial liabilities are subsequently measured at amortized cost using the effective interest rate method. The Company’s accounts payable and accrued liabilities (excluding salaries payable), mortgage payable and deposit payable are classified as measured at amortized cost. The Company’s amount owing to Northern Dat Derecognition The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled, or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss. Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. Expected Credit Loss Impairment Model The Company uses the single expected credit loss impairment model, which is based on changes in credit quality since initial application. The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in full or when the financial asset is more than 90 days past due. The carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. Fair Value Financial instruments recorded at fair value on the statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Th e fair value hierarchy has the following levels: ● Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices); and ● Level 3 – inputs for the assets or liability that are not based on observable market data (unobservable inputs). (n) Share capital and equity Share capital represents the amount received on the issue of shares, less issuance costs, net of any underlying income tax benefit from these issuance costs. When warrants are issued in connection with shares, the Company uses the residual method for allocating fair value to the shares and then to warrants. Contributed surplus includes the value of warrants classified as equity and stock options. When warrants and stock options are exercised, the related compensation cost and value are transferred to share capital. Deficit includes all current and prior year losses. Digital currency revaluation reserve includes gains and losses from the revaluation of digital currencies, net of tax. Cumulative translation reserve includes foreign currency translation differences arising from the translation of financial statements of foreign entities into United States dollars. (o) Share-based compensation The granting of stock options and RSUs to employees, officers, directors or consultants of the Company requires the recognition of share-based compensation expense with a corresponding increase in contributed surplus in shareholders’ equity. The fair value of stock options that vest immediately are recorded as share-based compensation expense at the date of the grant. The fair values of the RSUs are determined by the quoted market price of the Company’s common shares at date of grant. The expense for stock options and RSUs that vest over time is recorded over the vesting period using the graded method, which incorporates management’s estimate of the stock options that are not expected to vest. For stock options where vesting is subject to the completion of performance milestones, the estimate for completion of the milestone is reviewed at each reporting date for any change in the estimated vesting date, and to the extent there is a material change in the vesting date estimate, the amortization to be recognized is recalculated for the new timeline estimate and adjusted on a prospective basis in the current period. The effect of a change in the number of stock options expected to vest is a change in an estimate and the cumulative effect of the change is recognized in the period when the change occurs. On exercise of an stock option, the consideration received and the estimated fair value previously recorded in contributed surplus is recorded as an increase in share capital. Stock options awarded to consultants are measured based on the fair value of the goods and services received unless that fair value cannot be estimated reliably. If the fair value of the goods and services cannot be reliably measured, then the fair value of the equity instruments granted is used to recognize the expense. (p) Loss per share The Company presents basic and diluted loss per share data for its subordinate voting shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of subordinate voting shares and proportionate voting shares outstanding during the period. Diluted loss per share is determined by adjusting the weighted average number of subordinate voting shares and proportionate voting shares outstanding to assume conversion of all dilutive potential subordinate voting shares. Diluted loss per share equals basic loss per share given the anti-dilutive options and warrants for 2021. (q) Provisions Provisions are recognized when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result, and that outflow can be reliably measured. The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. (r) Business combinations The Company applies the acquisition method in accounting for business combinations. The consideration transferred by the Company to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred. Assets acquired and liabilities assumed are measured at their acquisition-date fair values. (s) Income taxes Income tax on the profit or loss for the years presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years. Deferred tax is provided using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes and the initial recognition of assets or liabilities that affect neither accounting nor taxable profit. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the financial position reporting date. A deferred tax asset is recognized only to the extent that it is probable that the underlying tax loss or deductible temporary difference will be utilized against future taxable income. Deferred tax liabilities are always provided for in full. Changes in deferred tax assets or deferred tax liabilities are recognized as revenues or expense in profit and loss, unless they relate to items that were recognized directly in equity, in which case the related deferred taxes are also recognized in equity. (t) Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Company. At the date of authorization of these consolidated financial statements, several new, but not yet effective, standards and amendments to existing standards, and interpretations have been published by the IASB. None of these standards or amendments to existing standards have been adopted early by the Company. Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement. New standards, amendments and interpretations not adopted in the current year have not been disclosed as they are not expected to have a material impact on the Company’s consolidated financial statements. (u) Critical accounting judgments, estimates and assumptions The preparation of these financial statements in conformity with IFRS requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These financial statements include estimates that, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the year in which the estimate is revised and future years if the revision affects both current and future years. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant assumptions about the future that management has made that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following: Significant judgments (i) Income from digital currency mining The Company recognizes income from digital currency mining from the provision of transaction verification services within digital currency networks, commonly termed “cryptocurrency mining.” As consideration for these services, the Company receives digital currency from each specific network in which it participates (“coins”). Income from digital currency mining is measured based on the fair value of the coins received. The fair value is determined using the spot price of the coin on the date of receipt. The coins are recorded on the statement of financial position, as digital currencies, at their fair value less costs to sell and re-measured at each reporting date. Revaluation gains or losses, as well as gains or losses on the sale of coins for traditional (fiat) currencies are included in profit or loss in accordance with the Company’s treatment of its digital currencies as a traded commodity. There is currently no specific definitive guidance in IFRS or alternative accounting frameworks for the accounting for the mining and strategic selling of digital currencies and management has exercised significant judgment in determining appropriate accounting treatment for the recognition of income from digital currency mining for mining of digital currencies. Management has examined various factors surrounding the substance of the Company’s operations, including the stage of completion being the completion and addition of a block to a blockchain and the reliability of the measurement of the digital currency received. (ii) Leases – incremental borrowing rate Judgment is applied when determining the incremental borrowing rate used to measure the lease liability of each lease contract, including an estimate of the asset-specific security impact. The incremental borrowing rate should reflect the interest rate the Company would pay to borrow at a similar term and with similar security. (iii) Income, value added, withholding and other taxes The Company is subject to income, value added, withholding and other taxes. Significant judgment is required in determining the Company’s provisions for taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. The determination of the Company’s income, value added, withholding and other tax liabilities requires interpretation of complex laws and regulations. The Company’s interpretation of taxation law as applied to transactions and activities may not coincide with the interpretation of the tax authorities. All tax-related filings are subject to government audit and potential reassessment subsequent to the financial statement reporting period. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the tax related accruals and deferred income tax provisions in the year in which such determination is made. Significant estimates (i) Useful lives of property, plant and equipment Depreciation of data miners and equipment are an estimate of its expected life. In order to determine the useful life of computing equipment, assumptions are required about a range of computing industry market and economic factors, including required hashrates, technological changes, availability of hardware and other inputs, and production costs. (ii) Digital currency valuation Digital currencies consist of cryptocurrency denominated assets (note 3) and are included in current assets. Digital currencies are carried at their fair value determined by the spot rate less costs to sell. The digital currency market is still a new market and is highly volatile; historical prices are not necessarily indicative of future value; a significant change in the market prices for digital currencies would have a significant impact on the Company’s earnings and financial position. (iii) Impairment of goodwill Determining whether goodwill is impaired requires an estimation of the recoverable amount of the CGU. Such recoverable amount corresponds, for the purpose of impairment assessment, to the higher of the value in use or the fair value less costs of disposal of the CGU to which goodwill has been allocated. The value in use calculation requires management to estimate future cash flows expected to arise from the CGU and a suitable discount rate in order to calculate present value. The key assumptions required for the value in use estimation are described in note 8. For the value in use approach, the values assigned to key assumptions reflect past experience and external sources of information that are deemed accurate and reliable. The value in use is categorized as Level 3 in the fair value hierarchy described under IFRS 13, Fair Value Measurement, as one or more key assumption used is based on unobservable data requiring the use of judgment. (iv) Data miners valuation Impairment of data miners was estimated based on the recoverable amount of mining equipment based on current market prices and hash rate power per miner type. The recoverable amount represents the higher value between an asset’s fair value less costs to sell and its value in use. Hash rate power refers to the computational power of the mining equipment, which directly affects the mining efficiency and potential revenue generation. As the market prices for mining equipment and hash rate power can vary significantly over time, these factors are considered in estimating the recoverable amount of the assets. The current market prices for mining equipment are obtained from various sources, including manufacturers, distributors, and marketplaces for used equipment. Management reviews and compares these prices regularly to ensure the accuracy and relevance of the data. |
Digital Currencies
Digital Currencies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Digital Currencies [Abstract] | |
Digital currencies | 3. Digital currencies The Company’s holdings of digital currencies consist of the following: As at December 31, As at December 31, As at December 31, Bitcoin $ 1,842,177 $ 29,770,994 $ 4,508,042 Ethereum 958,480 3,720,992 - $ 2,800,657 $ 33,491,986 $ 4,508,042 The continuity of digital currencies was as follows: Number of Amount Number of Amount Total Balance, December 31, 2019 - - - - - Bitcoin mined 335 $ 3,553,362 - $ - $ - Bitcoin traded for cash (181 ) (1,792,071 ) - - - Gain on sale of bitcoin - 62,799 - - - Revaluation adjustment - 2,683,952 - - - Balance, December 31, 2020 154 $ 4,508,042 - $ - $ 4,508,042 Bitcoin mined(2) 519 24,952,344 - - 24,952,344 Received from sale of property, plant and equipment 24 1,347,977 63 204,318 1,552,295 Received from private placement 1 47,671 - - 47,671 Acquisition (disposal) of digital currencies (66 ) (3,347,790 ) 974 3,347,034 (756 ) Acquisition of property, plant and equipment - - (36 ) (163,942 ) (163,942 ) Gain on sale of digital currencies - 235,067 - 55,881 290,948 Revaluation adjustment (1) - 2,027,683 - 277,701 2,305,384 $ 29,770,99 $ 3,720,99 $ 33,491,98 Balance, December 31, 2021 632 4 1,001 2 6 Bitcoin mined for Digihost (2) 832 24,190,059 - - 24,190,059 Bitcoin remitted to Northern Data (2) (380 ) (10,836,179 ) - - (10,836,179 ) Received from sale of property, plant and equipment 9 345,658 - - 345,658 Acquisition of digital currencies 100 3,932,000 - - 3,932,000 Digital currencies paid for services (27 ) (739,024 ) - - (739,024 ) Digital currencies traded for cash (640 ) (15,747,279 ) (200 ) (269,001 ) (16,016,280 ) Digital currencies for loan repayment (415 ) (11,982,320 ) - - (11,982,320 ) Loss on sale of digital currencies - (11,574,330 ) - - (11,574,330 ) Revaluation adjustment (1) - (5,517,402 ) - (2,493,511 ) (8,010,913 ) Balance, December 31, 2022 111 $ 1,842,177 801 $ 958,480 $ 2,800,657 (1) Digital assets held are revalued each reporting period based on the fair market value of the price of Bitcoin and Ethereum on the reporting date. As at December 31, 2022, the prices of Bitcoin and Ethereum were $16,548 (2021 - $47,117, 2020 - $29,002) and $1,197 (2021 - $3,718, 2020 - $738), respectively resulting in total revaluation loss of $8,010,913. The Company recorded $3,706,624 of the loss in other comprehensive loss, net of taxes of $1,047,759, and the remaining loss of $3,256,530 was recorded on the statement of comprehensive income. (2) During the year ended December 31, 2021, the Company entered into a Miner Lease Agreement and a hosting services agreement with Northern Data, NY LLC, pursuant to which the parties have agreed to split a portion of the mining rewards received and energy costs incurred for the miners put in service pursuant to these agreements. As at December 31, 2022, the Company must remit 19 Bitcoin (2021 - 62 Bitcoin) with a value of $322,099 (2021 - $2,940,412, 2020 - $0) which is presented in the current liabilities. |
Amounts Receivable and Prepaid
Amounts Receivable and Prepaid Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Amounts Receivable And Prepaid Expenses [Abstract] | |
Amounts receivable and prepaid expenses | 4. Amounts receivable and prepaid expenses As at December 31, As at December 31, As at December 31, 2022 2021 2020 Prepaid insurance and deposits $ 741,350 $ 709,575 $ - Receivable from Northern Data 492,825 911,200 - Other receivable - 187,529 161,919 $ 1,234,175 $ 1,808,304 $ 161,919 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | 5. Property, plant and equipment Land Data miners Equipment and other Leasehold improvement Powerplant Powerplant Total Cost December 31, 2019 $ - $ - $ - $ - $ - $ - $ - Additions 3,558,280 2,760,000 1,040,000 7,358,280 Acquired from RTO - 2,244,509 - - - - - December 31, 2020 $ - $ 5,802,789 $ 2,760,000 $ 1,040,000 $ - $ - $ 9,602,789 Additions - 26,845,831 (1) 603,324 - 7,148,920 - 34,598,075 Disposal - (990,517 ) - - - - (990,517 ) December 31, 2021 - 31,658,103 3,363,324 1,040,000 7,148,920 - 43,210,347 Additions 1,007,010 - 7,669,386 39,542 7,037,100 - 15,753,038 Disposal - (1,253,992 ) - - - - (1,253,992 ) Transfer asset in use - - (439,381 ) - (3,218,685 ) 3,658,066 - December 31, 2022 $ 1,007,010 $ 30,404,111 $ 10,593,329 $ 1,079,542 $ 10,967,335 $ 3,658,066 $ 57,709,393 Accumulated depreciation December 31, 2020 $ - $ 2,538,211 $ 479,888 $ 87,056 $ - $ - $ 3,105,155 Depreciation - 2,272,602 577,000 104,000 - - 2,953,602 Disposal - (990,517 ) - - - - (990,517 ) December 31, 2021 - 3,820,296 1,056,888 191,056 - - 5,068,240 Depreciation - 8,815,246 591,329 105,208 - 1,016,129 10,527,912 Impairment - 1,556,000 - - - - 1,556,000 Disposal - (1,253,992 ) - - - - (1,253,992 ) December 31, 2022 $ - $ 12,937,550 $ 1,648,217 $ 296,264 $ - $ 1,016,129 $ 15,898,160 Net carrying value As at December 31, 2021 $ - $ 27,837,807 $ 2,306,436 $ 848,944 $ 7,148,920 $ - $ 38,142,107 As at December 31, 2022 $ 1,007,010 $ 17,466,561 $ 8,945,112 $ 783,278 $ 10,967,335 $ 2,641,937 $ 41,811,233 (1) Included in this total are 10,000 high performance Bitcoin miners sourced from Northern Data AG per a definitive purchase agreement entered into on May 12, 2021. The Company tested its data miners as at December 31, 2022. The recoverable amount of the data miners was determined based on the higher of the value in use and fair value less costs of disposal calculation, based on specific judgment and assumptions. The fair value less costs to sell determined the recoverable amount. As a result, the Company recorded an impairment charge over its data miners of $1,556,000. The impairment was based on an assessment of the performance of the data miners in relation to prevailing replacement costs and the downturn of the prices of the Company’s digital currencies. |
Right-of-Use Assets
Right-of-Use Assets | 12 Months Ended |
Dec. 31, 2022 | |
Right-of-Use Assets [Abstract] | |
Right-of-Use Assets | 6. Right-of-use assets As at December 31, As at December 31, As at December 31, 2022 2021 2020 Balance, beginning of period $ 2,078,599 $ 2,413,720 $ - Additions (2)(3) 602,172 - 2,588,107 Depreciation (142,324 ) (198,291 ) (174,387 ) Modification of lease (1) - (136,830 ) - Balance, end of period $ 2,538,447 $ 2,078,599 $ 2,413,720 (1) On December 31, 2021, the Company entered into a 99 year lease for the 1001 East Delavan facility in exchange for a one time prepayment of $2.3 million. This long-term lease is treated as a lease modification of the current lease. This right-of-use asset is depreciated over 40 years. The lease for this right-of-use assets has been modified because of the prepayment as the Company has acquired the premises under a long-term lease. (2) In April 2022, the Company entered into a lease for its head office for a term of 5 years. (3) On February 14, 2020, prior to the closing of the RTO Transaction, BIT Management, LLC, Nyam, LLC and BIT Mining International, LLC (collectively the “Sellers”, all companies controlled by the CEO of Digihost) sold to the Company leasehold improvements and equipment and transferred and assigned the lease of the 1001 East Delavan facility. As consideration, the transaction resulted in an increase in right of use assets and liabilities of $2,588,107. When measuring lease liability, the Company’s incremental borrowing rate applied was estimated to be 10% per annum. |
Intangible Asset
Intangible Asset | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Intangible Assets Text Block [Abstract] | |
Intangible Asset | 7. Intangible asset Intangible asset relates to the right-of-use of an electric power facility. As at As at As at December 31, December 31, December 31, 2022 2021 2020 Balance, beginning of period $ 1,443,260 $ 1,572,500 $ - Addition at cost - - 1,680,000 Amortization (129,232 ) (129,240 ) (107,500 ) Balance, end of period $ 1,314,028 $ 1,443,260 $ 1,572,500 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
Goodwill | 8. Goodwill As at December 31, As at December 31, As at December 31, Balance, beginning of period $ 1,346,904 $ 1,342,281 $ - RTO Transaction 1,289,906 Impairment (1,260,783 ) - - Foreign currency translation (86,121 ) 4,623 52,375 Balance, end of period $ - $ 1,346,904 $ 1,342,281 For the realization of its annual impairment test for 2022, management determined the recoverable amount as the value in use. The significant assumptions used in determining value in use are: ° Monthly Bitcoin price average growth rate of 2.2% ° Difficulty monthly growth rate of 2.8% ° Terminal annual growth rate of 2.5% ° Discount rate 20% - 22% An impairment of $1,260,783 was taken on goodwill. The assumptions used were based on the Company’s internal forecasts. The Company projected revenue, working capital, capital expenditures and expenses for a period of five years. The Company has also performed a sensitivity analysis on key assumptions which indicated that reasonable changes will not have a material impact. In 2021, management has determined the recoverable amount as the fair value less costs to sell. The fair value is derived from the market capitalization of the Company as December 31, 2021 and management determined that the fair value less cost of sales, was higher than the carrying value of the CGU. Following this analysis, management has determined that no impairment was necessary. For these tests, the Company allocates all of its goodwill to a single CGU, the Company as a whole, since this is the lowest level at which goodwill is monitored for internal purposes. |
Promissory Note Receivable
Promissory Note Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Promissory Note Receivable [Abstract] | |
Promissory note receivable | 9. Promissory note receivable In December 2021, the Company entered into an agreement for a Secured Convertible Promissory Note (the “Note”) with principal of $800,000. The Note accrues interest at a rate of 6% per annum, with interest payments every calendar quarter. The Note is convertible at the Company’s option into Series C Preferred Stock of the issuer. If the Note is not converted into shares by the Company, all unpaid and accrued interest are due on Maturity Date of December 21, 2026. The Note is secured by the assets of the issuer. |
Lease liabilities
Lease liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Lease Liabilities [Abstract] | |
Lease liabilities | 10. Lease liabilities The continuity of the lease liabilities are presented in the table below: As at December 31, As at December 31, As at December 31, Balance, beginning of period $ - $ 2,546,160 $ - Additions (2)(3) 602,172 - 2,588,107 Interest 41,299 236,680 216,434 Lease payments (96,000 ) (2,647,669 ) (258,381 ) Modification of lease (1) - (135,171 ) - Balance, end of period $ 547,471 $ - $ 2,546,160 Current portion $ 99,957 $ - $ 111,672 Non-current portion 447,514 - 2,434,488 Total lease liabilities $ 547,471 $ - $ 2,546,160 (1) On December 31, 2021, the Company entered into a 99-year lease for the 1001 East Delavan facility in exchange for a one-time prepayment of $2.3 million. This long-term lease is treated as a lease modification of the current lease. Refer to note 6. (2) In April 2022, the Company entered into a lease for its head office for a term of 5 years. When measuring lease liability, the Company’s incremental borrowing rate applied was estimated to be 10% per annum. (3) On February 14, 2020, prior to the closing of the RTO Transaction, BIT Management, LLC, Nyam, LLC and BIT Mining International, LLC (collectively the “Sellers”, all companies controlled by the CEO of Digihost) sold to the Company leasehold improvements and equipment and transferred and assigned the lease of the 1001 East Delavan facility. As consideration, the transaction resulted in an increase in right of use assets and liabilities of $2,588,107. When measuring lease liability, the Company’s incremental borrowing rate applied was estimated to be 10% per annum. Maturity analysis - contractual undiscounted cash flows As at December 31, 2022 Less than one year $ 146,880 One to five years 521,635 Total undiscounted lease obligations $ 668,515 |
Loans Payable
Loans Payable | 12 Months Ended |
Dec. 31, 2022 | |
Loans Payable [Abstract] | |
Loans payable | 11. Loans payable As at December 31, As at December 31, As at 2022 2021 2020 Balance, beginning of the period $ - $ 2,543,083 $ - New loans (1) 10,000,000 1,432,000 2,543,083 Repayment of loans (10,000,000 ) (3,975,083 ) - Balance, end of the period $ - $ - $ 2,543,083 (1) On March 2, 2022, the Company announced the closing of a $10,000,000 committed, collateralized revolving credit facility with Securitize, Inc. (the “Loan Facility”). The Loan Facility had a one-year committed term and an interest rate of 7.5% per annum. |
Mortgage payable
Mortgage payable | 12 Months Ended |
Dec. 31, 2022 | |
Mortgage payable [Abstract] | |
Mortgage payable | 12. Mortgage payable In June 2022, the Company’s incremental borrowing rate applied was estimated to be 7% per annum. The mortgage does not bear interest, is repayable by monthly instalments of $44,500 and matures in September 2024. The mortgage is secured by the powerplant in progress with a net book value of $2,651,500. As at December 31, As at As at 2022 2021 2020 Balance, beginning of period $ - $ - $ - Additions 993,912 - - Interest 16,715 - - Payments (133,500 ) - - Balance, end of period $ 877,127 $ - $ - Current portion $ 488,062 $ - $ - Non-current portion 389,065 - - Total mortgage payable $ 877,127 $ - $ - Maturity analysis - contractual undiscounted cash flows As at December 31, 2022 Less than one year $ 534,000 One to five years 400,500 Total undiscounted mortgage obligations $ 934,500 |
Warrant liabilities
Warrant liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Warrant liabilities [Abstract] | |
Warrant liabilities | 13. Warrant liabilities Due to the characteristics of certain warrants, the fixed-for-fixed condition is not met. Therefore the Company records these warrants as financial liabilities measured at fair value upon initial recognition. At each subsequent reporting date, the warrants are re-measured at fair value and the change in fair value is recognized through profit or loss. Upon warrant exercise, the fair value previously recognized in warrant liabilities is transferred from warrant liabilities to share capital. The following table summarizes the changes in the warrant liabilities for the Company’s warrants for the period ending December 31, 2022, 2021 and 2020: Number of warrants Amount Balance, December, 2019 - - Issued 36,858 193,505 Expired (36,858 ) 193,505 Balance, December, 2020 - $ - Warrants issued 9,098,514 33,989,639 Revaluation of warrant liabilities - (1,551,013 ) Foreign currency translation - (495,261 ) Balance, December, 2021 9,098,514 $ 31,943,365 Warrants issued 3,029,748 7,007,643 Warrants cancelled (note 14(b)(ix)) (3,029,748 ) (5,887,840 ) Pre-funded warrants issued (note 14(b)(ix)) 300,000 927,463 Pre-funded warrants exercised (note 14(b)(ix)) (300,000 ) (927,463 ) Revaluation of warrant liabilities - (32,010,637 ) Foreign currency translation - (230,834 ) Balance, December 31, 2022 9,098,514 $ 821,697 The fair value of the Company’s warrants has been determined using the Black-Scholes pricing model and the following weighted average assumptions: Issued As at Issued As at Spot price (in CAD$) $ 3.78 $ 0.47 $ 6.04 $ 5.97 Risk-free interest rate 1.62 % 4.07 % 0.66 % 1.03 % Expected annual volatility 145 % 143 % 139 % 147 % Expected life (years) 3.50 2.01 3.43 2.72 Dividend nil nil nil nil The following table reflects the Company’s warrants outstanding and exercisable as at December 31, 2022: Expiry date Warrants outstanding and exercisable Weighted average exercise price (CAD$) March 16, 2024 1,872,659 9.42 June 18, 2024 2,083,334 5.97 April 9, 2025 2,112,773 7.11 September 9, 2025 3,029,748 6.25 9,098,514 7.04 The following table reflects the Company’s warrants outstanding and exercisable as at December 31, 2021: Expiry date Warrants outstanding and exercisable Weighted average exercise price (CAD$) March 16, 2024 3,121,099 9.42 June 18, 2024 2,083,334 5.97 April 9, 2025 3,894,081 7.11 9,098,514 7.64 The following table reflects the Company’s warrants outstanding and exercisable as at December 31, 2020: Expiry date Warrants exercisable Weighted August 14, 2021 36,858 5.25 36,858 5.25 |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share Capital [Abstract] | |
Share capital | 14. Share capital a) Authorized sha Unlimited subordinate voting shares without par value and conferring 1 vote per share. Unlimited proportionate voting shares without par value, conferring 200 votes per share, convertible at the holder’s option into subordinate voting shares on a basis of 200 subordinate voting shares for 1 proportionate voting shares. b) Subordinate voting shares and proportionate voting shares issued Year ended December 31, 2020 (i) In 2019, the Company closed a non-brokered private placement, for aggregate gross proceeds of $4,064,431 (CAD$5,395,338) from the sale of 1,827,304 common share subscription receipts at a price of CAD$2.88, with each common share subscription receipt exchangeable for one common share of Digihost, and 36,858 unit subscription receipts at a price of CAD$3.60 per unit subscription receipt, with each unit subscription receipt exchangeable for one unit. Each unit consisted of one subordinate voting share and one subordinate voting share purchase warrant of Digihost. Each warrant entitles the holder thereof to acquire one subordinate voting share at a price of CAD$5.25 with expiry date August 14, 2021. The proceeds were received prior to December 31, 2020 and were recorded as subscription liability. In February 2020, prior to the closing of the RTO transaction, the subscription receipts were exchanged for 1,864,162 common shares of Digihost and then exchanged for 1,864,162 subordinate voting shares of the Company. The grant date fair value of the 36,858 warrants was estimated as $20,000. In addition, immediately prior to completion of the RTO Transaction, the Company exchanged 666,666 subordinate voting shares of Digihost owned by the CEO and director of Digihost for 3,333 proportionate voting shares. (ii) On February 14, 2020, prior to the closing of the RTO Transaction, BIT Management, LLC, Nyam, LLC and BIT Mining International, LLC (collectively the “Sellers”, all companies controlled by the CEO of Digihost) sold to the Company leasehold improvements and equipment and transferred and assigned the lease of the 1001 East Delavan facility. As consideration, Digihost issued 164,000 common shares. These transactions resulted in increases in equipment of $2,760,000, leasehold improvements of $1,040,000, intangible assets of $1,680,000 and right of use assets and lease liabilities of $2,588,107 for a total of $5,480,000 recorded in share capital. (iii) On February 14, 2020, the Company cancelled the 20 founder shares of Old Digihost. (iv) On February 14, 2020, there was a RTO Transaction between Old Digihost and HashChain. In connection with completion of the RTO Transaction, HashChain acquired all the issued and outstanding shares of Old Digihost in exchange for 9,940,000 subordinate voting shares of the Company. In substance, the transaction involves Old Digihost shareholders obtaining control of the Company; accordingly, the transaction is considered to be a reverse acquisition transaction under which Old Digihost is identified as the accounting acquirer. The common shares issued were valued based on the HashChain closing price of CAD$0.60 on the TSXV on February 14, 2020 (Fair value of 6,530,560 subordinate voting shares of HashChain $2,957,458) (v) On February 14, 2020, the Company issued 43,537 subordinate voting shares as settlement of payables of $59,149. (vi) On December 7, 2020, the Company announced that it has received approval to undertake, at the Company’s discretion, a normal course issuer bid program to purchase up to 667,894 of its subordinate voting shares for cancellation (the “Bid”). The Company received acceptance from the TSXV to commence the Bid on December 10, 2020. The Bid was terminated on December 10, 2021. As at December 31, 2021, the Company repurchased and cancelled 164,533 subordinate voting shares for a total repurchase price of $600,865. (vii) On February 9, 2021, the Company issued 66,667 subordinate voting shares to settle a debt of $40,000 with two third-party creditors. (viii) On January 8, 2021, the Company closed a non-brokered private placement for 116,625 subordinate voting shares for CAD$2.43 for gross proceeds of $220,551 (CAD$283,400). (ix) On February 18, 2021, the Company closed a non-brokered private placement financing for 1,646,090 subordinate voting shares for CAD$2.43 for gross proceeds of $3,124,018 (CAD$4,000,000). In connection with the private placement, the Company will pay a commission of 49,383 shares to third-party advisors. (x) On March 16, 2021, the Company closed a non-brokered private placement financing for 3,121,099 units for CAD$8.01 per unit for gross proceeds of $19,985,611 (CAD$25 million). 3,121,099 subordinate voting shares of the Company and warrants to purchase 3,121,099 subordinate voting shares were issued. The warrants have an exercise price of CAD$9.42 per subordinate voting share and exercise period of three years from the issuance date. A fair value of $14,214,397 was assigned to the warrants. H.C. Wainwright & Co., LLC acted as the exclusive placement agent and received cash commission and expenses totaling $1,978,303 and 249,688 non-transferable broker warrants. Each broker warrant entitles the holder to purchase one subordinate voting share at an exercise price of CAD$10.01 at any time for a period of three years from the issuance date. The broker warrants were assigned a fair value of $1,124,704 for total issuance costs of $3,103,007 of which $2,197,403 is recorded in net loss as the cost of issuance of the warrants classified as liabilities. The grant date fair value of $1,124,704 for the 249,688 broker warrants was determined using the Black-Scholes pricing model and the following assumptions and inputs: share price of CAD$7.71; exercise price of CAD$10.01; expected dividend yield of 0%; expected volatility of 235% which is based on comparable companies; risk-free interest rate of 0.53%; and an expected average life of three years. (xi) On April 9, 2021, the Company closed a non-brokered private placement financing for 3,894,081 units for CAD$6.42 per unit for gross proceeds of $19,748,795 (CAD$25 million). 3,894,081 subordinate voting shares of the Company and warrants to purchase 3,894,081 subordinate voting shares were issued. The warrants have an exercise price of CAD$7.11 per subordinate voting share and exercise period of four years from the issuance date. A fair value of $14,205,769 was assigned to the warrants. H.C. Wainwright & Co., LLC acted as the exclusive placement agent and received cash commission and expenses totaling $1,695,460 and 311,526 non-transferable broker warrants. Each broker warrant entitles the holder to purchase one subordinate voting share at an exercise price of CAD$8.025 at any time for a period of four years from the issuance date. The broker warrants were assigned a fair value of $1,121,763 for total issuance costs of $2,817,223 of which $2,008,069 is recorded in net loss as the cost of issuance of the warrants classified as liabilities. The fair value of $1,121,763 was estimated using the following assumptions and inputs: share price of CAD$5.49; exercise price of CAD$8.025; expected dividend yield of 0%; expected volatility of 143% which is based on comparable companies; risk-free interest rate of 0.77%; and an expected average life of four years. (xii) On June 18, 2021, the Company closed a non-brokered private placement financing for 2,777,779 units for CAD$5.40 per unit for gross proceeds of $12,025,016 (CAD$15 million). 2,777,779 subordinate voting shares of the Company and warrants to purchase 2,083,334 subordinate voting shares were issued. The warrants have an exercise price of CAD$5.97 per subordinate voting share and exercise period of three years from the issuance date. A fair value of $5,569,473 was assigned to the warrants. H.C. Wainwright & Co., LLC acted as the exclusive placement agent and received cash commission and expenses totaling $1,164,466 and 222,222 non-transferable broker warrants. Each broker warrant entitles the holder to purchase one subordinate voting share at an exercise price of CAD$6.75 at any time for a period of three years from the issuance date. The broker warrants were assigned a fair value of $581,060 for total issuance costs of $1,664,562 of which $767,579 is recorded in net loss as the cost of issuance of the warrants classified as liabilities. The fair value of $581,060 was estimated using the following assumptions and inputs: share price of CAD$4.56; exercise price of CAD$6.75; expected dividend yield of 0%; expected volatility of 136% which is based on comparable companies; risk-free interest rate of 0.63%; and an expected average life of three years. (xiii) On November 30, 2021, the Company issued 16,136 subordinate voting shares (valued at $40,000) to settle a debt of $40,000 with a third-party creditor. Year ended December 31, 2022 (xiv) On March 9, 2022, the Company closed a private placement with a single institutional investor, for (a) 2,729,748 subordinate voting shares at a purchase price of CAD$4.40 per subordinate voting share and associated warrant, (b) 300,000 pre-funded warrants (“Pre-Funded Warrants”) at an exercise price of $0.0001 per subordinate voting shares, at an offering price of CAD$4.3999 per Pre-Funded Warrant and associated warrant and (iii) 3,029,748 common share purchase warrants (the “Warrants”) for aggregate gross cash proceeds of $10,424,453 (CAD$13,330,861) and the cancellation of warrants. The Warrants have an exercise price of CAD$6.25 per share and exercise period of three and one-half years from the issuance date. A fair value of $7,007,643 was assigned to the warrants. The Pre-Funded Warrants were assigned a fair value of $1,022,915 based on the cash received and are accounted for as financial liabilities at amortized cost. The Pre-Funded Warrants were exercised in September 2022, the financial liability together with the cash received of $30 and initial issuance costs was then accounted as an increase in share capital of $927,463. In connection with the private placement, the investor has agreed to cancel existing warrants to purchase 1,248,440 common subordinate voting shares of the Company at an exercise price of CAD$9.42 per share issued in March 16, 2021, expiring on March 16, 2024, and the existing warrants to purchase 1,781,308 common subordinate voting shares of the Company at an exercise price of CAD$7.11 issued in April 9, 2021, expiring on April 9, 2025. The cancellation was considered as part of the proceeds of the above mentioned private placement and was accounted for as an increase in share capital of $5,887,616 for total proceeds from the private placement of $15,255,979. H.C. Wainwright & Co., LLC acted as the exclusive placement agent and received cash commission and expenses totaling $1,080,584 and 242,380 non-transferable broker warrants. Each broker warrant entitles the holder to purchase one subordinate voting share at an exercise price of CAD$6.25 at any time for a period of three and one-half years from the issuance date. The broker warrants were assigned a fair value of $535,009 for total issuance costs of $1,615,593 of which $695,170 is recorded in net income as the cost of issuance of the warrants classified as liabilities and $102,138 in reduction of the Pre-Funded Warrants. The grant date fair value of $535,009 for the 242,380 broker warrants was determined using the Black-Scholes pricing model and the following assumptions and inputs: share price of CAD$3.78; exercise price of CAD$6.25; expected dividend yield of 0%; expected volatility of 136% which is based on comparable companies; risk-free interest rate of 1.62%; and an expected average life of three and one-half years. (xv) During May 2022, the Company received approval to undertake, at the Company’s discretion, a normal course issuer bid program to purchase up to 1,219,762 of its subordinate voting shares for cancellation. As at December 31, 2022, the Company repurchased 165,200 subordinate voting shares for a total repurchase price of $255,525. (xvi) On November 1, 2022, the Company issued 19,391 subordinate voting shares (valued at $13,816) to settle a debt of $92,825 with a creditor. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Warrants [Abstract] | |
Warrants | 15. Warrants Number of Warrants Weighted Average Exercise Price (CAD$) Balance, December 31, 2019 - - Issued 36,858 5.25 Balance, December 31, 2020 36,858 5.25 Issued (note 14(b)(v)(vi)(vii)) 783,436 8.30 Expired (36,858 ) 5.25 Balance, December 31, 2021 783,436 8.30 Issued (note 14(b)(ix)) 242,380 6.25 Balance, December 31, 2022 1,025,816 7.81 The following table reflects the warrants issued and outstanding as of December 31, 2022: Number of Exercise Price Weighted Expiry Date 249,688 10.01 1.21 March 16, 2024 (1) 222,222 6.75 1.47 June 18, 2024 (1) 311,526 8.025 2.27 April 9, 2025 (1) 242,380 6.25 2.69 September 9, 2025 (1) 1,025,816 7.81 1.94 The following table reflects the warrants issued and outstanding as of December 31, 2021: Number of Exercise Price Weighted Expiry Date 249,688 10.01 2.21 March 16, 2024 (1) 222,222 6.75 2.47 June 18, 2024 (1) 311,526 8.025 3.27 April 9, 2025 (1) 783,436 8.30 2.71 The following table reflects the warrants issued and outstanding as of December 31, 2020: Number of Exercise Price Weighted Expiry Date 36,858 5.25 0.87 August 14, 2021 36,858 5.25 0.87 (1) Broker warrants. |
Options and restricted share un
Options and restricted share units | 12 Months Ended |
Dec. 31, 2022 | |
Options and restricted share units [Abstract] | |
Options and restricted share units | 16. Options and restricted share units (a) Options The Company has a stock option plan whereby the maximum number of shares subject to the plan, in the aggregate, shall not exceed 10% of the Company’s issued and outstanding shares. The exercise price shall be no less than the discount market price as determined in accordance with TSXV policies. The following table reflects the continuity of stock options for the periods presented below: Number of Stock Options Weighted Average Exercise Price (CAD$) Balance, December 31, 2019 - - Granted 625,000 2.88 Balance, December 31, 2020 625,000 2.88 Granted (i)(ii)(iii)(iv)(v) 1,823,497 6.03 Exercised (1) (75,000 ) 3.17 Expired / cancelled (28,332 ) 6.09 Balance, December 31, 2021 2,345,165 5.28 Expired / cancelled (1,153,331 ) 5.46 Balance, December 31, 2022 1,191,834 5.11 (1) The market price on the date of exercise was CAD$8.88. (i) On January 5, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 550,164 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$3.75 and expire on January 5, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$2.76 per option was estimated for the 550,164 stock options on the date of grant with the following assumptions and inputs: share price of CAD$3.03; exercise price of CAD$3.75; expected dividend yield of 0%; expected volatility of 155% which is based on comparable companies; risk-free interest rate of 0.39%; and an expected average life of five years. (ii) On February 24, 2021, the Company granted stock options to consultants of the Company to acquire an aggregate of 50,000 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$13.92 and expire on February 24, 2026. The stock options vested immediately. A value of CAD$12.78 per option was estimated for the 50,000 stock options on the date of grant with the following assumptions and inputs: share price of CAD$13.92; exercise price of CAD$13.92; expected dividend yield of 0%; expected volatility of 155% which is based on comparable companies; risk-free interest rate of 0.73%; and an expected average life of five years. (iii) A value of CAD$6.87 per option was estimated for the 533,333 stock options on the date of grant with the following assumptions and inputs: share price of CAD$7.47; exercise price of CAD$7.47; expected dividend yield of 0%; expected volatility of 155% which is based on comparable companies; risk-free interest rate of 0.90%; and an expected average life of five years. (iv) On May 17, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 430,000 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$7.35 and expire on May 17, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$6.09 per option was estimated for the 430,000 stock options on the date of grant with the following assumptions and inputs: share price of CAD$7.86; exercise price of CAD$7.35; expected dividend yield of 0%; expected volatility of 105% which is based on comparable companies; risk-free interest rate of 0.95%; and an expected average life of five years. (v) On June 22, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 260,000 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$4.20 and expire on June 22, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$3.06 per option was estimated for the 260,000 stock options on the date of grant with the following assumptions and inputs: share price of CAD$4.02; exercise price of CAD$4.20; expected dividend yield of 0%; expected volatility of 105% which is based on comparable companies; risk-free interest rate of 0.95%; and an expected average life of five years. The underlying expected volatility of all option grants was determined by reference to historical data of comparable companies share price over the expected stock option life. For the year ended December 31, 2022, the Company recorded share based compensation expense for these stock options of $ nil The following table reflects the stock options issued and outstanding as of December 31, 2022: Expiry Date Exercise Price (CAD$) Weighted Average Remaining Contractual Life (years) Number of Options Outstanding Number of Options Number of Options Unvested February 14, 2025 2.88 2.13 408,334 408,334 - January 5, 2026 3.75 3.02 258,498 258,498 - February 24, 2026 13.92 3.16 50,000 50,000 - March 25, 2026 7.47 3.23 233,334 233,334 - May 17, 2026 7.35 3.38 155,000 155,000 - June 22, 2026 4.20 3.48 86,668 86,668 - 5.11 2.84 1,191,834 1,191,834 - The following table reflects the stock options issued and outstanding as of December 31, 2021: Expiry Date Exercise Price (CAD$) Weighted Average Remaining Contractual Life (years) Number of Options Outstanding Number of Options Number of Options Unvested February 14, 2025 2.88 3.13 575,000 575,000 - January 5, 2026 3.75 4.02 525,164 525,164 - February 24, 2026 13.92 4.15 50,000 50,000 - March 25, 2026 7.47 4.23 525,000 525,000 - May 17, 2026 7.35 4.38 421,667 421,667 - June 22, 2026 4.20 4.48 248,334 248,334 - 5.28 4.96 2,345,165 2,345,165 - The following table reflects the stock options issued and outstanding as of December 31, 2020: Expiry Date Exercise Weighted Number of Number of Number of February 14, 2025 0.96 4.38 625,000 625,000 - 0.96 4.38 625,000 625,000 - The Company has an RSU plan whereby there is a fixed cap of shares that can be granted under the plan. The exercise price shall be no less than the discount market price as determined in accordance with TSXV policies. (b) Share units The following table reflects the continuity of RSUs for the periods ended December 31, 2022, 2021 and 2020: Number of RSUs Balance, December 31, 2020 and December 31, 2021 - Granted 1,449,250 Cancelled (10,000 ) Balance, December 31, 2022 1,439,250 During the year ended December 31, 2022, the Company granted 1,449,250 RSUs to officers, directors, employees and advisors. These RSUs vest third on each of the first, second and third anniversaries of the date of grant. The grant date fair value of the RSUs was $5,725,262. For the year ended December 31, 2022, the Company recorded share-based compensation expense for these RSUs of $3,296,238 (year ended December 31, 2021 - $ nil nil |
Income (loss) per share
Income (loss) per share | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Income (loss) per share [Abstract] | |
Income (loss) per share | 17. Income (loss) per share Year Ended December 31, 2022 2021 2020 Net income (loss) for the year $ 4,329,342 $ (3,132,693 ) $ (5,190,713 ) Net income (loss) per share - basic $ 0.16 $ (0.14 ) $ (0.44 ) Net income (loss) per share - diluted $ 0.16 $ (0.14 ) $ (0.44 ) Weighted average number of shares outstanding - basic 27,227,284 21,781,806 11,715,524 Weighted average number of shares outstanding - diluted 27,227,284 21,781,806 11,715,524 (i) Diluted income per share does not include the effect of warrants and stock options as they are anti-dilutive. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Related Party Transactions [Abstract] | |
Related party transactions | 18. Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control. Related parties include key management personnel and may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related party transactions are recorded at the exchange amount, being the amount agreed to between the related parties. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly. Key management personnel include the Company’s executive officers and members of the Board of Directors. Remuneration of key management personnel of the Company was as follows: Year Ended December 31, 2022 2021 2020 Professional fees (1) $ 307,534 $ 91,249 $ 40,491 Salaries (1) 833,717 144,231 - Share based compensation (2) 3,092,012 6,016,173 1,047,943 $ 4,233,263 $ 6,251,653 $ 1,088,434 (1) Represents the professional fees and salaries paid to officers and directors. (2) Represents the share based compensation for officers and directors. |
Cash flow supplemental informat
Cash flow supplemental information | 12 Months Ended |
Dec. 31, 2022 | |
Cash flow supplemental information [Abstract] | |
Cash flow supplemental information | 19. Cash flow supplemental information Year Ended December 31, 2022 2021 2020 Digital currencies items Digital currencies mined $ (24,190,060 ) $ (24,952,344 ) $ (3,553,362 ) Acquisition of digital currencies (3,932,000 ) - - Miner lease and hosting 9,768,179 3,469,287 - Loss on digital currency option calls 1,950,000 - - Services paid in digital currencies 739,024 - - Loss (gain) on sale of digital currencies 11,574,330 (290,948 ) (62,799 ) Interest paid in digital currencies 216,329 - - Digital currencies traded for cash 16,016,280 - - Loss on revaluation of digital currencies 3,386,890 - - $ 15,528,972 $ (21,774,005 ) $ (3,616,161 ) Working capital items Amounts receivable and prepaid expenses $ 574,129 $ (1,604,703 ) (275,294 ) Accounts payable and accrued liabilities 72,325 842,584 761,560 Income tax payable (550,000 ) - - Deposit payable (1,277,500 ) 1,788,500 - $ (1,181,046 ) $ 1,026,381 $ 486,266 |
Additional information on the n
Additional information on the nature of comprehensive income (loss) components | 12 Months Ended |
Dec. 31, 2022 | |
Additional information on the nature of comprehensive income (loss) components [Abstract] | |
Additional information on the nature of comprehensive income (loss) components | 20. Additional information on the nature of comprehensive income (loss) components Year Ended December 31, 2022 2021 2020 Expenses for employee benefits Operating and maintenance costs $ 444,400 $ 528,658 $ 182,628 Professional fees 307,534 91,249 40,491 Share based compensation 3,296,238 7,804,271 1,247,551 $ 4,048,172 $ 8,424,178 $ 1,460,670 Net financial expenses Interest on loans $ 238,204 $ 96,134 $ 41,992 Interest on lease liabilities 16,074 236,680 216,435 $ 254,278 $ 332,814 $ 258,427 |
Segmented Reporting
Segmented Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segmented Reporting [Abstract] | |
Segmented reporting | 21. Segmented reporting The Company has one operating segment being cryptocurrency mining located in the United States. The operations of the Company are located in two geographic locations, Canada and the United States. Geographic segmentation is as follows: As at December 31, 2022 Canada United States Total Current assets $ 29,372 $ 6,100,481 $ 6,129,853 Non-current assets - 46,469,708 46,469,708 Total assets $ 29,372 $ 52,570,189 $ 52,599,561 As at December 31, 2021 Canada United States Total Current assets $ 179,396 $ 36,036,609 $ 36,216,005 Non-current assets 1,346,904 42,463,966 43,810,870 Total assets $ 1,526,300 $ 78,500,575 $ 80,026,875 As at December 31, 2020 Canada United States Total Current assets $ - $ 4,693,466 $ 4,693,466 Non-current assets 1,342,281 10,483,854 11,826,135 Total assets $ 1,342,281 $ 15,177,320 $ 16,519,601 |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2022 | |
Capital Management [Abstract] | |
Capital management | 22. Capital management The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of equity comprised of issued share capital, reserves and loans payable. The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances. The Company is not subject to externally imposed capital requirements and the Company’s overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2020. |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments and risk management [Abstract] | |
Financial instruments and risk management | 23. Financial instruments and risk management Fair value The fair value of the Company’s financial instruments, including cash, amounts receivable, accounts payable and accrued liabilities, mortgage payable and deposit payable approximates their carrying value due to their short-term nature. Mortgage payable and deposit payable are due to arm’s length third parties, the fair values of these payables are measured using relevant market input (Level 3). The fair values of mortgage payable and deposit payable was calculated using actualized cash flows using market rates in effect at the balance sheet date. Reasonable changes to key assumptions would not have a significant impact. Promissory note receivable is due from an arm’s length third party, the fair value of this note are measured using relevant market input (Level 3). Digital currencies and amount owing to Northern Data are measured at fair value using the quoted price on CoinMarketCap (Level 2). Warrant liabilities are measured at fair value using the Black-Scholes pricing model (Level 2) (see note 13). Risks Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash, amounts receivable and promissory note receivable. The cash is deposited in a bank account held with one major bank in the United States so there is a concentration of credit risk. This risk is managed by using a major bank that is a high credit quality financial institution as determined by rating agencies. The Company believes no impairment is necessary in respect of amounts receivable and promissory note receivable as balances are monitored on a regular basis with the result that exposure to bad debt is insignificant. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk by maintaining cash balances to ensure that it is able to meet its short term and long-term obligations as and when they fall due. The Company manages cash projections and regularly updates projections for changes in business and fluctuations cause in digital currency prices and exchange rates. The following table summarizes the expected maturity of the Corporation’s significant financial liabilities and other liabilities based on the remaining period from the balance sheet date to the contractual maturity date: As at December 31, 2022 Payments by period Less than More than Carrying 1 year 1-3 years 4-5 years 5 years Total Value Accounts payable and accrued liabilities $ 2,345,175 $ - $ - $ - $ 2,345,175 $ 2,345,175 Amount owing to Northern Data 322,099 - - - 322,099 322,099 Deposit payable - 511,000 - - 511,000 511,000 Lease liabilities 146,880 307,111 214,524 - 668,515 668,515 Mortgage payable 534,000 400,500 - - 934,500 934,500 $ 3,348,154 $ 1,218,611 $ 214,524 $ - $ 4,781,289 $ 4,781,289 As at December 31, 2021 Payments by period Less than More than Carrying 1 year 1-3 years 4-5 years 5 years Total Value Accounts payable and accrued liabilities $ 2,272,850 $ - $ - $ - $ 2,272,850 $ 2,272,850 Amount owing to Northern Data 2,940,412 - - - 2,940,412 2,940,412 Deposit payable - 1,788,500 - - 1,788,500 1,788,500 $ 5,213,262 $ 1,788,500 $ - $ - $ 7,001,762 $ 7,001,762 As at December 31, 2020 Payments by period Less than More than Carrying 1 year 1-3 years 4-5 years 5 years Total Value Accounts payable and accrued liabilities $ 920,914 $ 920,914 $ 920,914 Loan payable 2,146,231 570,933 $ - $ - 2,717,164 2,543,083 $ 3,067,145 $ 570,933 $ - $ - $ 3,638,078 $ 3,463,997 Foreign currency risk Currency risk relates to the risk that the fair values or future cash flows of the Company’s financial instruments will fluctuate because of changes in foreign exchange rates. Exchange rate fluctuations affect the costs that the Company incurs in its operations. The Company’s functional and presentation currency is the U.S. dollar. As the Company operates in an international environment, some of the Company’s financial instruments and transactions are denominated in currencies other than an entity’s functional currency. The fluctuation of the Canadian dollar in relation to the U.S. dollar will consequently impact the profitability of the Company and may also affect the value of the Company’s assets and liabilities and the amount of shareholders’ equity. As at December 31, 2022, 2021 and 2020, the foreign currency risk was considered minimal. Digital currency risk Digital currency prices are affected by various forces including global supply and demand, interest rates, exchange rates, inflation or deflation and the global political and economic conditions. The profitability of the Company is directly related to the current and future market price of digital currencies; in addition, the Company may not be able liquidate its holdings of digital currencies at its desired price if required. A decline in the market prices for digital currencies could negatively impact the Company’s future operations. The Company has not hedged the conversion of any of its sales of digital currencies. Digital currencies have a limited history and the fair value historically has been very volatile. Historical performance of digital currencies is not indicative of their future price performance. The Company’s digital currencies currently consist of Bitcoin and Ethereum. At December 31, 2022, had the market price of the Company’s holdings of Bitcoin and Ethereum increased or decreased by 10% with all other variables held constant, the corresponding asset value increase or decrease respectively would amount to $280,066 (2021 - $3,055,157, 2020 - $450,804). |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes [Abstract] | |
Income taxes | 24. Income taxes (a) Provision for income taxes Year Ended December 31, 2022 2021 2020 (Restated) Income before income taxes $ 2,791,875 $ (832,074 ) $ (5,826,526 ) Combined statutory income tax rate 26.14 % 27.00 % 27.00 % Income tax benefit at the statutory tax rate 729,657 (224,660 ) (1,573,162 ) Non-deductible expenses 15,626 273,784 119,543 Revaluation of warrant liabilities (8,365,980 ) (418,774 ) - Foreign exchange gain (593,325 ) - - Share based compensation - 1,304,058 336,839 Tax asset recognized (71,801 ) Impairment of goodwill 329,506 - - Effect of lower tax rate of subsidiary - (103,388 ) - Temporary difference unrecognized - - 532,589 Other 59,931 126,874 1,497 Change in unrecognized deferred tax asset 6,287,118 1,342,725 18,682 Deferred Income tax (recovery) provision $ (1,537,467 ) $ 2,300,619 $ (635,813 ) Current income taxes in the income statement $ - $ 127,340 $ - Composition of deferred income taxes in the income statement Inception and reversal of temporary differences $ (7,824,585 ) $ 2,089,839 $ (1,168,402 ) Prior period adjustment - 83,440 Change in unrecognized deferred tax asset 6,287,118 - 532,589 Deferred Income tax (recovery) provision $ (1,537,467 ) $ 2,173,279 $ (635,813 ) Total income tax expense (recovery) for the year $ (1,537,467 ) $ 2,300,619 $ (635,813 ) (b) Deferred income tax Movement of deferred income tax in 2022 January 1, Profit or Other December 31, 2022 loss Income Equity 2022 Property, plant and equipment $ (1,781,767 ) $ (3,249,116 ) $ - $ - $ (5,030,883 ) Right of use assets (543,242 ) (120,181 ) - - (663,423 ) Digital currencies (1,047,759 ) 1,186,091 1,047,758 - 1,186,090 Lease liabilities - 143,082 - - 143,082 Stock based compensation 709,474 (638,992 ) - (70,482 ) - Non-capital losses 148,551 4,216,583 - - 4,365,134 Non-capital losses - Canada - 593,325 - - 593,325 Unrealized foreign exchange gain - Canada - (593,325 ) - - (593,325 ) Total $ (2,514,743 ) $ 1,537,467 $ 1,047,758 $ (70,482 ) $ - Movement of deferred income tax in 2021 January 1, Profit or Other December 31, 2021 loss Income Equity 2021 Property, plant and equipment $ (755,431 ) $ (1,026,336 ) $ - $ - $ (1,781,767 ) Right of use assets (630,826 ) 87,584 - - (543,242 ) Digital currencies (701,451 ) - (346,308 ) - (1,047,759 ) Lease liabilities 665,439 (665,439 ) - - - Stock based compensation - 637,673 - 71,801 709,474 Non-capital losses 1,356,631 (1,208,080 ) - - 148,551 Total $ (65,638 ) $ (2,174,598 ) $ (346,308 ) $ 71,801 $ (2,514,743 ) January 1, Profit or Other December 31, 2021 loss Income Equity 2021 Property, plant and equipment - $ (755,431 ) $ - $ - $ (755,431 ) Right of use assets - (630,826 ) - - (630,826 ) Digital currencies - - (701,451 ) - (701,451 ) Lease liabilities - 665,439 - - 665,439 Non-capital losses - 1,356,631 - - 1,356,631 Total 635,813 (701,451 ) (65,638 ) As at December 31, 2022, 2021 and 2020, deductible timing differences available for which the Company has not recognized deferred tax asset are as follows: As at As at As at December 31, December 31, December 31, 2022 2021 2020 Share issue costs $ 6,042,213 $ 529,320 $ 758,041 Stock based compensation 4,307,117 - - Property, plant and equipment - - 26,402,452 Non-capital losses - USA 21,425,219 - - Non-capital losses - Canada 1,929,162 2,359,944 557,042 $ 33,703,711 $ 2,889,264 $ 27,717,535 The ability to realize the tax benefits is dependent upon a number of factors, including the future profitability of operations. Deferred tax assets are recognized only to the extent that it is probable that sufficient taxable profits will be available to allow the asset to be recovered. The Canadian non-capital losses for which no deferred tax asset was recognized expire in 2041 and 2042. The non-capital losses available in the United States have no expiry date. |
Restatement
Restatement | 12 Months Ended |
Dec. 31, 2022 | |
Restatement [Abstract] | |
Restatement | 25. Restatement During the external audit of the Company’s financial statements for the year ended December 31, 2022, the Company identified that due to the characteristics of certain warrants, the fixed-for-fixed condition was not met. Therefore, the Company has to record these warrants as financial liabilities measured at fair value upon initial recognition. At each subsequent reporting date, the warrants are re-measured at fair value and the change in fair value is recognized through profit or loss. The impact of the restatement on the consolidated statement of financial position as at December 31, 2021 is as follows: As reported Adjustment Restated LIABILITIES AND SHAREHOLDERS’ EQUITY Warrant liabilities $ - $ 31,943,365 $ 31,943,365 Total liabilities - 31,943,365 31,943,365 Shareholders’ equity Share capital 54,863,819 (23,440,724 ) 31,423,095 Contributed surplus 17,358,982 (5,514,401 ) 11,844,581 Cumulative translation adjustment (266,730 ) 433,798 167,068 Digital currency revaluation reserve 3,706,624 - 3,706,624 Deficit (5,457,926 ) (3,422,038 ) (8,879,964 ) Total shareholders’ equity $ 70,204,769 $ (31,943,365 ) $ 38,261,404 The impact of the restatement on the consolidated statement of comprehensive income for the year December 31, 2021 is as follows: As reported Adjustment Restated Operating income $ 2,922,778 $ - $ 2,922,778 Revaluation of warrant liabilities - 1,551,013 1,551,013 Share issuance costs - (4,973,051 ) (4,973,051 ) Net income (loss) before income taxes 2,589,964 (3,422,038 ) (832,074 ) Net income (loss) for the year 289,345 (3,422,038 ) (3,132,693 ) Other comprehensive income (loss) Items that will be reclassified to net income Foreign currency translation adjustment (384,892 ) 433,798 48,906 Items that will not be reclassified to net income Revaluation of digital currencies, net of tax 1,724,123 - 1,724,123 Total comprehensive income (loss) for the year $ 1,628,576 $ (2,988,240 ) $ (1,359,664 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | 26. Subsequent event On February 8, 2023, the Company completed the acquisition of a 60 MW power plant in North Tonawanda, New York for $4,550,000. This transaction represented an all-cash transaction by the Company, as no shares were issued in connection with the acquisition. Management has not determined the accounting impact of this acquisition. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Statement of compliance | (a) Statement of compliance The consolidated financial statements have been prepared in accordance with IFRS issued effective for the Company’s reporting for the year ended December 31, 2022. |
Statement of presentation | (b) Statement of presentation The Company’s consolidated financial statements have been prepared on an accrual basis and under the historical cost basis. |
Basis of consolidation | (c) Basis of consolidation These consolidated financial statements include the accounts of Digihost and its wholly owned subsidiaries: Digihost International, Inc. and DGX Holdings, LLC. Subsidiaries are consolidated from the date of acquisition, being the date on which the Company obtains control, and continues to be consolidated until the date that such control ceases. Control is achieved when an investor has power over an investee to direct its activities, exposure to variable returns from an investee, and the ability to use the power to affect the investor’s returns. All intercompany transactions and balances have been eliminated upon consolidation. |
Functional and presentation currency | (d) Functional and presentation currency These financial statements are presented in United States dollars. The functional currency of Digihost is the Canadian dollar and the functional currency of Digihost International, Inc. and DGX Holding, LLC is the United States dollars. All financial information is expressed in United States dollars, unless otherwise stated. |
Foreign currency translation | (e) Foreign currency translation Monetary assets and liabilities denominated in foreign currencies are translated to the respective functional currency at exchange rates in effect at the reporting date. Non-monetary assets and liabilities are translated at historical exchange rates at the respective transaction dates. Revenue and expenses are translated at the rate of exchange at each transaction date. Gains or losses on translation are included in foreign exchange expense. The results and financial position of an entity whose functional currency are translated into a different presentation currency are treated as follows: ● assets and liabilities are translated at the closing rate at the reporting date; ● income and expenses for each income statement are translated at average exchange rates at the dates of the period; and ● all resulting exchange differences are recognized in other comprehensive income as cumulative translation adjustments. |
Revenue recognition | (f) Revenue recognition The Company recognizes revenue from the provision of transaction verification services within digital currency networks, commonly termed “cryptocurrency mining.” As consideration for these services, the Company receives digital currency from each specific cryptocurrency mining pool in which it participates. Revenue is measured based on the fair value of the digital currencies received. The fair value is determined using the spot price of the digital currencies on the date of receipt. Digital currencies are considered earned on the completion and addition of a block to the blockchain, at which time the economic benefit is received and can be reliably measured. |
Digital currencies | (g) Digital currencies Digital currencies consist of Bitcoin and Ethereum. Digital currencies meet the definition of intangible assets in IAS 38 Intangible Assets as they are identifiable non-monetary assets without physical substance. They are initially recorded at cost and the revaluation method is used to measure the digital currencies subsequently. Where digital assets are recognized as revenue, the fair value of the Bitcoin received is considered to be the cost of the digital assets. Under the revaluation method, increases in fair value are recorded in other comprehensive income, while decreases are recorded in profit or loss. The Company revalues its digital currencies at the end of each quarter. There is no recycling of gains from other comprehensive income to profit or loss. However, to the extent that an increase in fair value reverses a previous decrease in fair value that has been recorded in profit or loss, that increase is recorded in profit or loss. Decreases in fair value that reverse gains previously recorded in other comprehensive income are recorded in other comprehensive income. Gains and losses on digital currencies sold between revaluation dates are included in profit or loss. Digital currencies are measured at fair value using the quoted price on CoinMarketCap. CoinMarketCap is a pricing aggregator, as the principal market or most advantageous market is not always known. The Company believes any price difference amongst the principal market and an aggregated price to be immaterial. Management considers this fair value to be a Level 2 input under IFRS 13 Fair Value Measurement fair value hierarchy as the price on this source represents an average of quoted prices on multiple digital currency exchanges. |
Property, plant and equipment | (h) Property, plant and equipment Details as to the Company’s policies for property, plant and equipment are as follows: Asset Amortization method Amortization period Data miners Straight-line 12 - 36 months Equipment Straight-line 36 and 120 months Leasehold improvement Straight-line 120 months Powerplant in use Straight-line 480 months Property, plant and equipment are recorded at cost less accumulated depreciation. Cost includes all expenditures incurred to bring assets to the location and condition necessary for them to be operated in the manner intended by management. Material residual value estimates and estimates of useful life are updated as required, but at least annually. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any replaced parts is derecognized. All other repairs and maintenance are charged to profit or loss during the fiscal year in which they are incurred. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognized in profit or loss. |
Intangible assets | (i) Intangible assets Intangible assets are accounted for using the cost model whereby capitalized costs are amortized on a straight-line basis over their estimated useful lives. Residual values and useful lives are reviewed at each reporting date. The right of use of an electric power facility is depreciated over 13 years. When an intangible asset is disposed of, the gain or loss on disposal is determined as the difference between the proceeds and the carrying amount of the asset, and is recognized in profit or loss. Amortization of intangible assets has been included in depreciation and amortization in the consolidated statement of comprehensive loss. |
Impairment of non-financial assets | (j) Impairment of non-financial assets The Company reviews the carrying amounts of its non-financial assets, including property, plant and equipment, right of use assets and intangible assets when events or changes in circumstances indicate the assets may not be recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. Assets carried at fair value, such as digital currencies, are excluded from impairment analysis. Cash generating units to which goodwill has been allocated are tested for impairment annually. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows to be derived from continuing use of the asset or cash generating unit are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Fair value less costs of disposal is the amount obtainable from the sale of an asset or cash generating unit in an arm’s length transaction between knowledgeable, willing parties, less the cost of disposal. When a binding sale agreement is not available, fair value less costs of disposal is estimated using a discounted cash flow approach with inputs and assumptions consistent with those of a market participant. If the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash generating unit is reduced to its recoverable amount. An impairment loss is recognized immediately in net income. With the exception of goodwill, where an impairment loss subsequently reverses, the carrying amount of the asset or cash generating unit is increased to the revised estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized. |
Leases and right-of-use assets | (k) Leases and right-of-use assets All leases are accounted for by recognizing a right-of-use asset and a lease liability except for: ° Leases of low value assets; and ° Leases with a duration of 12 months or less. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by the incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate. On initial recognition, the carrying value of the lease liability also includes: ° Amounts expected to be payable under any residual value guarantee; ° The exercise price of any purchase option granted if it is reasonable certain to assess that option; and ° Any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised. Right-of-use assets are initially measured at cost, which includes the initial amount of the lease liability, reduced for any lease incentives received, and increased for: ° Lease payments made at or before commencement of the lease; ° Initial direct costs incurred; and ° The amount of any provision recognized where the Company is contractually required to dismantle, remove or restore the leased asset. Lease liabilities, on initial measurement, increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if this is judged to be shorter than the lease term. When the Company revises its estimate of the term of any lease, it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted at the same discount rate that applied on lease commencement. The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent on a rate or index is revised. In both cases, an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortized over the remaining (revised) lease term or recorded in profit or loss if the right-of-use asset is reduced to zero. |
Goodwill | (l) Goodwill The Company measures goodwill as the fair value of the cost of the acquisition less the fair value of the identifiable net assets acquired, all measured as of the acquisition date. Goodwill is carried at cost less accumulated impairment losses. |
Financial instruments | (m) Financial instruments Financial assets are classified and measured based on the business model in which they are held and the characteristics of their con tractual cash flows. The primary measurement categories for financial assets are measured at amortized cost, fair value through other comprehensive income (“FVTOCI”) and fair value through profit and loss (“FVTPL”). Financial assets Financial assets are classified as either financial assets at FVTPL, amortized cost, or FVTOCI. The Company determines the classification of its financial assets at initial recognition. The Company does not have any financial assets categorized as FVTOCI. ● Amortized cost Financial assets are classified as measured at amortized cost if both of the following criteria are met: 1) the object of the Company’s business model for these financial assets is to collect their contractual cash flows; and 2) the asset’s contractual cash flows represent “solely payments of principal and interest.” After initial recognition, these are measured at amortized cost using the effective interest rate method. Discounting is omitted where the effect of discounting is immaterial. The Company’s cash and amounts receivables are classified as financial assets and measured at amortized cost. Revenues from these financial assets are recognized in financial revenues, if any. ● FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transactions costs expensed in the consolidated statements of net loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets held at FVTPL are recorded in the consolidated statements of comprehensive income in the period in which they arise. The Company’s promissory note receivable is classified as a financial asset and measured at FVTPL. Financial liabilities Financial liabilities are subsequently measured at amortized cost using the effective interest rate method. The Company’s accounts payable and accrued liabilities (excluding salaries payable), mortgage payable and deposit payable are classified as measured at amortized cost. The Company’s amount owing to Northern Dat Derecognition The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled, or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss. Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. Expected Credit Loss Impairment Model The Company uses the single expected credit loss impairment model, which is based on changes in credit quality since initial application. The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in full or when the financial asset is more than 90 days past due. The carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. Fair Value Financial instruments recorded at fair value on the statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Th e fair value hierarchy has the following levels: ● Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities; ● Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices); and ● Level 3 – inputs for the assets or liability that are not based on observable market data (unobservable inputs). |
Share capital and equity | (n) Share capital and equity Share capital represents the amount received on the issue of shares, less issuance costs, net of any underlying income tax benefit from these issuance costs. When warrants are issued in connection with shares, the Company uses the residual method for allocating fair value to the shares and then to warrants. Contributed surplus includes the value of warrants classified as equity and stock options. When warrants and stock options are exercised, the related compensation cost and value are transferred to share capital. Deficit includes all current and prior year losses. Digital currency revaluation reserve includes gains and losses from the revaluation of digital currencies, net of tax. Cumulative translation reserve includes foreign currency translation differences arising from the translation of financial statements of foreign entities into United States dollars. |
Share-based compensation | (o) Share-based compensation The granting of stock options and RSUs to employees, officers, directors or consultants of the Company requires the recognition of share-based compensation expense with a corresponding increase in contributed surplus in shareholders’ equity. The fair value of stock options that vest immediately are recorded as share-based compensation expense at the date of the grant. The fair values of the RSUs are determined by the quoted market price of the Company’s common shares at date of grant. The expense for stock options and RSUs that vest over time is recorded over the vesting period using the graded method, which incorporates management’s estimate of the stock options that are not expected to vest. For stock options where vesting is subject to the completion of performance milestones, the estimate for completion of the milestone is reviewed at each reporting date for any change in the estimated vesting date, and to the extent there is a material change in the vesting date estimate, the amortization to be recognized is recalculated for the new timeline estimate and adjusted on a prospective basis in the current period. The effect of a change in the number of stock options expected to vest is a change in an estimate and the cumulative effect of the change is recognized in the period when the change occurs. On exercise of an stock option, the consideration received and the estimated fair value previously recorded in contributed surplus is recorded as an increase in share capital. Stock options awarded to consultants are measured based on the fair value of the goods and services received unless that fair value cannot be estimated reliably. If the fair value of the goods and services cannot be reliably measured, then the fair value of the equity instruments granted is used to recognize the expense. |
Loss per share | (p) Loss per share The Company presents basic and diluted loss per share data for its subordinate voting shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of subordinate voting shares and proportionate voting shares outstanding during the period. Diluted loss per share is determined by adjusting the weighted average number of subordinate voting shares and proportionate voting shares outstanding to assume conversion of all dilutive potential subordinate voting shares. Diluted loss per share equals basic loss per share given the anti-dilutive options and warrants for 2021. |
Provisions | (q) Provisions Provisions are recognized when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result, and that outflow can be reliably measured. The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. |
Business combinations | (r) Business combinations The Company applies the acquisition method in accounting for business combinations. The consideration transferred by the Company to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred. Assets acquired and liabilities assumed are measured at their acquisition-date fair values. |
Income taxes | (s) Income taxes Income tax on the profit or loss for the years presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years. Deferred tax is provided using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes and the initial recognition of assets or liabilities that affect neither accounting nor taxable profit. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the financial position reporting date. A deferred tax asset is recognized only to the extent that it is probable that the underlying tax loss or deductible temporary difference will be utilized against future taxable income. Deferred tax liabilities are always provided for in full. Changes in deferred tax assets or deferred tax liabilities are recognized as revenues or expense in profit and loss, unless they relate to items that were recognized directly in equity, in which case the related deferred taxes are also recognized in equity. |
Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Company. | (t) Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Company. At the date of authorization of these consolidated financial statements, several new, but not yet effective, standards and amendments to existing standards, and interpretations have been published by the IASB. None of these standards or amendments to existing standards have been adopted early by the Company. Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement. New standards, amendments and interpretations not adopted in the current year have not been disclosed as they are not expected to have a material impact on the Company’s consolidated financial statements. |
Critical accounting judgements, estimates and assumptions | (u) Critical accounting judgments, estimates and assumptions The preparation of these financial statements in conformity with IFRS requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These financial statements include estimates that, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the year in which the estimate is revised and future years if the revision affects both current and future years. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant assumptions about the future that management has made that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following: Significant judgments |
Income from digital currency mining | (i) Income from digital currency mining The Company recognizes income from digital currency mining from the provision of transaction verification services within digital currency networks, commonly termed “cryptocurrency mining.” As consideration for these services, the Company receives digital currency from each specific network in which it participates (“coins”). Income from digital currency mining is measured based on the fair value of the coins received. The fair value is determined using the spot price of the coin on the date of receipt. The coins are recorded on the statement of financial position, as digital currencies, at their fair value less costs to sell and re-measured at each reporting date. Revaluation gains or losses, as well as gains or losses on the sale of coins for traditional (fiat) currencies are included in profit or loss in accordance with the Company’s treatment of its digital currencies as a traded commodity. There is currently no specific definitive guidance in IFRS or alternative accounting frameworks for the accounting for the mining and strategic selling of digital currencies and management has exercised significant judgment in determining appropriate accounting treatment for the recognition of income from digital currency mining for mining of digital currencies. Management has examined various factors surrounding the substance of the Company’s operations, including the stage of completion being the completion and addition of a block to a blockchain and the reliability of the measurement of the digital currency received. (ii) Leases – incremental borrowing rate Judgment is applied when determining the incremental borrowing rate used to measure the lease liability of each lease contract, including an estimate of the asset-specific security impact. The incremental borrowing rate should reflect the interest rate the Company would pay to borrow at a similar term and with similar security. (iii) Income, value added, withholding and other taxes The Company is subject to income, value added, withholding and other taxes. Significant judgment is required in determining the Company’s provisions for taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. The determination of the Company’s income, value added, withholding and other tax liabilities requires interpretation of complex laws and regulations. The Company’s interpretation of taxation law as applied to transactions and activities may not coincide with the interpretation of the tax authorities. All tax-related filings are subject to government audit and potential reassessment subsequent to the financial statement reporting period. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the tax related accruals and deferred income tax provisions in the year in which such determination is made. Significant estimates (i) Useful lives of property, plant and equipment Depreciation of data miners and equipment are an estimate of its expected life. In order to determine the useful life of computing equipment, assumptions are required about a range of computing industry market and economic factors, including required hashrates, technological changes, availability of hardware and other inputs, and production costs. (ii) Digital currency valuation Digital currencies consist of cryptocurrency denominated assets (note 3) and are included in current assets. Digital currencies are carried at their fair value determined by the spot rate less costs to sell. The digital currency market is still a new market and is highly volatile; historical prices are not necessarily indicative of future value; a significant change in the market prices for digital currencies would have a significant impact on the Company’s earnings and financial position. (iii) Impairment of goodwill Determining whether goodwill is impaired requires an estimation of the recoverable amount of the CGU. Such recoverable amount corresponds, for the purpose of impairment assessment, to the higher of the value in use or the fair value less costs of disposal of the CGU to which goodwill has been allocated. The value in use calculation requires management to estimate future cash flows expected to arise from the CGU and a suitable discount rate in order to calculate present value. The key assumptions required for the value in use estimation are described in note 8. For the value in use approach, the values assigned to key assumptions reflect past experience and external sources of information that are deemed accurate and reliable. The value in use is categorized as Level 3 in the fair value hierarchy described under IFRS 13, Fair Value Measurement, as one or more key assumption used is based on unobservable data requiring the use of judgment. (iv) Data miners valuation Impairment of data miners was estimated based on the recoverable amount of mining equipment based on current market prices and hash rate power per miner type. The recoverable amount represents the higher value between an asset’s fair value less costs to sell and its value in use. Hash rate power refers to the computational power of the mining equipment, which directly affects the mining efficiency and potential revenue generation. As the market prices for mining equipment and hash rate power can vary significantly over time, these factors are considered in estimating the recoverable amount of the assets. The current market prices for mining equipment are obtained from various sources, including manufacturers, distributors, and marketplaces for used equipment. Management reviews and compares these prices regularly to ensure the accuracy and relevance of the data. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Schedule of company’s policies for property, plant and equipment | Asset Amortization method Amortization period Data miners Straight-line 12 - 36 months Equipment Straight-line 36 and 120 months Leasehold improvement Straight-line 120 months Powerplant in use Straight-line 480 months |
Digital Currencies (Tables)
Digital Currencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Digital Currencies [Abstract] | |
Schedule of holdings of digital currencies | As at December 31, As at December 31, As at December 31, Bitcoin $ 1,842,177 $ 29,770,994 $ 4,508,042 Ethereum 958,480 3,720,992 - $ 2,800,657 $ 33,491,986 $ 4,508,042 |
Schedule of continuity of digital currencies | Number of Amount Number of Amount Total Balance, December 31, 2019 - - - - - Bitcoin mined 335 $ 3,553,362 - $ - $ - Bitcoin traded for cash (181 ) (1,792,071 ) - - - Gain on sale of bitcoin - 62,799 - - - Revaluation adjustment - 2,683,952 - - - Balance, December 31, 2020 154 $ 4,508,042 - $ - $ 4,508,042 Bitcoin mined(2) 519 24,952,344 - - 24,952,344 Received from sale of property, plant and equipment 24 1,347,977 63 204,318 1,552,295 Received from private placement 1 47,671 - - 47,671 Acquisition (disposal) of digital currencies (66 ) (3,347,790 ) 974 3,347,034 (756 ) Acquisition of property, plant and equipment - - (36 ) (163,942 ) (163,942 ) Gain on sale of digital currencies - 235,067 - 55,881 290,948 Revaluation adjustment (1) - 2,027,683 - 277,701 2,305,384 $ 29,770,99 $ 3,720,99 $ 33,491,98 Balance, December 31, 2021 632 4 1,001 2 6 Bitcoin mined for Digihost (2) 832 24,190,059 - - 24,190,059 Bitcoin remitted to Northern Data (2) (380 ) (10,836,179 ) - - (10,836,179 ) Received from sale of property, plant and equipment 9 345,658 - - 345,658 Acquisition of digital currencies 100 3,932,000 - - 3,932,000 Digital currencies paid for services (27 ) (739,024 ) - - (739,024 ) Digital currencies traded for cash (640 ) (15,747,279 ) (200 ) (269,001 ) (16,016,280 ) Digital currencies for loan repayment (415 ) (11,982,320 ) - - (11,982,320 ) Loss on sale of digital currencies - (11,574,330 ) - - (11,574,330 ) Revaluation adjustment (1) - (5,517,402 ) - (2,493,511 ) (8,010,913 ) Balance, December 31, 2022 111 $ 1,842,177 801 $ 958,480 $ 2,800,657 (1) Digital assets held are revalued each reporting period based on the fair market value of the price of Bitcoin and Ethereum on the reporting date. As at December 31, 2022, the prices of Bitcoin and Ethereum were $16,548 (2021 - $47,117, 2020 - $29,002) and $1,197 (2021 - $3,718, 2020 - $738), respectively resulting in total revaluation loss of $8,010,913. The Company recorded $3,706,624 of the loss in other comprehensive loss, net of taxes of $1,047,759, and the remaining loss of $3,256,530 was recorded on the statement of comprehensive income. (2) During the year ended December 31, 2021, the Company entered into a Miner Lease Agreement and a hosting services agreement with Northern Data, NY LLC, pursuant to which the parties have agreed to split a portion of the mining rewards received and energy costs incurred for the miners put in service pursuant to these agreements. As at December 31, 2022, the Company must remit 19 Bitcoin (2021 - 62 Bitcoin) with a value of $322,099 (2021 - $2,940,412, 2020 - $0) which is presented in the current liabilities. |
Amounts Receivable and Prepai_2
Amounts Receivable and Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Amounts Receivable and Prepaid Expenses [Abstract] | |
Schedule of amounts receivable and prepaid expenses | As at December 31, As at December 31, As at December 31, 2022 2021 2020 Prepaid insurance and deposits $ 741,350 $ 709,575 $ - Receivable from Northern Data 492,825 911,200 - Other receivable - 187,529 161,919 $ 1,234,175 $ 1,808,304 $ 161,919 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property plant and equipment | Land Data miners Equipment and other Leasehold improvement Powerplant Powerplant Total Cost December 31, 2019 $ - $ - $ - $ - $ - $ - $ - Additions 3,558,280 2,760,000 1,040,000 7,358,280 Acquired from RTO - 2,244,509 - - - - - December 31, 2020 $ - $ 5,802,789 $ 2,760,000 $ 1,040,000 $ - $ - $ 9,602,789 Additions - 26,845,831 (1) 603,324 - 7,148,920 - 34,598,075 Disposal - (990,517 ) - - - - (990,517 ) December 31, 2021 - 31,658,103 3,363,324 1,040,000 7,148,920 - 43,210,347 Additions 1,007,010 - 7,669,386 39,542 7,037,100 - 15,753,038 Disposal - (1,253,992 ) - - - - (1,253,992 ) Transfer asset in use - - (439,381 ) - (3,218,685 ) 3,658,066 - December 31, 2022 $ 1,007,010 $ 30,404,111 $ 10,593,329 $ 1,079,542 $ 10,967,335 $ 3,658,066 $ 57,709,393 Accumulated depreciation December 31, 2020 $ - $ 2,538,211 $ 479,888 $ 87,056 $ - $ - $ 3,105,155 Depreciation - 2,272,602 577,000 104,000 - - 2,953,602 Disposal - (990,517 ) - - - - (990,517 ) December 31, 2021 - 3,820,296 1,056,888 191,056 - - 5,068,240 Depreciation - 8,815,246 591,329 105,208 - 1,016,129 10,527,912 Impairment - 1,556,000 - - - - 1,556,000 Disposal - (1,253,992 ) - - - - (1,253,992 ) December 31, 2022 $ - $ 12,937,550 $ 1,648,217 $ 296,264 $ - $ 1,016,129 $ 15,898,160 Net carrying value As at December 31, 2021 $ - $ 27,837,807 $ 2,306,436 $ 848,944 $ 7,148,920 $ - $ 38,142,107 As at December 31, 2022 $ 1,007,010 $ 17,466,561 $ 8,945,112 $ 783,278 $ 10,967,335 $ 2,641,937 $ 41,811,233 (1) Included in this total are 10,000 high performance Bitcoin miners sourced from Northern Data AG per a definitive purchase agreement entered into on May 12, 2021. |
Right-of-Use Assets (Tables)
Right-of-Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Right-of-Use Assets [Abstract] | |
Schedule of right-of-use assets | As at December 31, As at December 31, As at December 31, 2022 2021 2020 Balance, beginning of period $ 2,078,599 $ 2,413,720 $ - Additions (2)(3) 602,172 - 2,588,107 Depreciation (142,324 ) (198,291 ) (174,387 ) Modification of lease (1) - (136,830 ) - Balance, end of period $ 2,538,447 $ 2,078,599 $ 2,413,720 (1) On December 31, 2021, the Company entered into a 99 year lease for the 1001 East Delavan facility in exchange for a one time prepayment of $2.3 million. This long-term lease is treated as a lease modification of the current lease. This right-of-use asset is depreciated over 40 years. The lease for this right-of-use assets has been modified because of the prepayment as the Company has acquired the premises under a long-term lease. (2) In April 2022, the Company entered into a lease for its head office for a term of 5 years. (3) On February 14, 2020, prior to the closing of the RTO Transaction, BIT Management, LLC, Nyam, LLC and BIT Mining International, LLC (collectively the “Sellers”, all companies controlled by the CEO of Digihost) sold to the Company leasehold improvements and equipment and transferred and assigned the lease of the 1001 East Delavan facility. As consideration, the transaction resulted in an increase in right of use assets and liabilities of $2,588,107. When measuring lease liability, the Company’s incremental borrowing rate applied was estimated to be 10% per annum. |
Intangible Asset (Tables)
Intangible Asset (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Intangible Assets Text Block [Abstract] | |
Schedule of intangible asset relates to the right of use of an electric power facility | As at As at As at December 31, December 31, December 31, 2022 2021 2020 Balance, beginning of period $ 1,443,260 $ 1,572,500 $ - Addition at cost - - 1,680,000 Amortization (129,232 ) (129,240 ) (107,500 ) Balance, end of period $ 1,314,028 $ 1,443,260 $ 1,572,500 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
Schedule of goodwill | As at December 31, As at December 31, As at December 31, Balance, beginning of period $ 1,346,904 $ 1,342,281 $ - RTO Transaction 1,289,906 Impairment (1,260,783 ) - - Foreign currency translation (86,121 ) 4,623 52,375 Balance, end of period $ - $ 1,346,904 $ 1,342,281 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lease Liabilities [Abstract] | |
Schedule of the lease liabilities | As at December 31, As at December 31, As at December 31, Balance, beginning of period $ - $ 2,546,160 $ - Additions (2)(3) 602,172 - 2,588,107 Interest 41,299 236,680 216,434 Lease payments (96,000 ) (2,647,669 ) (258,381 ) Modification of lease (1) - (135,171 ) - Balance, end of period $ 547,471 $ - $ 2,546,160 Current portion $ 99,957 $ - $ 111,672 Non-current portion 447,514 - 2,434,488 Total lease liabilities $ 547,471 $ - $ 2,546,160 (1) On December 31, 2021, the Company entered into a 99-year lease for the 1001 East Delavan facility in exchange for a one-time prepayment of $2.3 million. This long-term lease is treated as a lease modification of the current lease. Refer to note 6. (2) In April 2022, the Company entered into a lease for its head office for a term of 5 years. When measuring lease liability, the Company’s incremental borrowing rate applied was estimated to be 10% per annum. (3) On February 14, 2020, prior to the closing of the RTO Transaction, BIT Management, LLC, Nyam, LLC and BIT Mining International, LLC (collectively the “Sellers”, all companies controlled by the CEO of Digihost) sold to the Company leasehold improvements and equipment and transferred and assigned the lease of the 1001 East Delavan facility. As consideration, the transaction resulted in an increase in right of use assets and liabilities of $2,588,107. When measuring lease liability, the Company’s incremental borrowing rate applied was estimated to be 10% per annum. |
Schedule of maturity analysis - contractual undiscounted cash flows | As at December 31, 2022 Less than one year $ 146,880 One to five years 521,635 Total undiscounted lease obligations $ 668,515 |
Loans Payable (Tables)
Loans Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loans Payable [Abstract] | |
Schedule of loans payable | As at December 31, As at December 31, As at 2022 2021 2020 Balance, beginning of the period $ - $ 2,543,083 $ - New loans (1) 10,000,000 1,432,000 2,543,083 Repayment of loans (10,000,000 ) (3,975,083 ) - Balance, end of the period $ - $ - $ 2,543,083 (1) On March 2, 2022, the Company announced the closing of a $10,000,000 committed, collateralized revolving credit facility with Securitize, Inc. (the “Loan Facility”). The Loan Facility had a one-year committed term and an interest rate of 7.5% per annum. |
Mortgage payable (Tables)
Mortgage payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Mortgage payable [Abstract] | |
Schedule of incremental borrowing rate | As at December 31, As at As at 2022 2021 2020 Balance, beginning of period $ - $ - $ - Additions 993,912 - - Interest 16,715 - - Payments (133,500 ) - - Balance, end of period $ 877,127 $ - $ - Current portion $ 488,062 $ - $ - Non-current portion 389,065 - - Total mortgage payable $ 877,127 $ - $ - |
Schedule of contractual undiscounted cash flows | As at December 31, 2022 Less than one year $ 534,000 One to five years 400,500 Total undiscounted mortgage obligations $ 934,500 |
Warrant liabilities (Tables)
Warrant liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Warrant liabilities [Abstract] | |
Schedule of the warrant liabilities | Number of warrants Amount Balance, December, 2019 - - Issued 36,858 193,505 Expired (36,858 ) 193,505 Balance, December, 2020 - $ - Warrants issued 9,098,514 33,989,639 Revaluation of warrant liabilities - (1,551,013 ) Foreign currency translation - (495,261 ) Balance, December, 2021 9,098,514 $ 31,943,365 Warrants issued 3,029,748 7,007,643 Warrants cancelled (note 14(b)(ix)) (3,029,748 ) (5,887,840 ) Pre-funded warrants issued (note 14(b)(ix)) 300,000 927,463 Pre-funded warrants exercised (note 14(b)(ix)) (300,000 ) (927,463 ) Revaluation of warrant liabilities - (32,010,637 ) Foreign currency translation - (230,834 ) Balance, December 31, 2022 9,098,514 $ 821,697 |
Schedule of fair value warrants | Issued As at Issued As at Spot price (in CAD$) $ 3.78 $ 0.47 $ 6.04 $ 5.97 Risk-free interest rate 1.62 % 4.07 % 0.66 % 1.03 % Expected annual volatility 145 % 143 % 139 % 147 % Expected life (years) 3.50 2.01 3.43 2.72 Dividend nil nil nil nil |
Schedule of warrants outstanding and exercisable | Expiry date Warrants outstanding and exercisable Weighted average exercise price (CAD$) March 16, 2024 1,872,659 9.42 June 18, 2024 2,083,334 5.97 April 9, 2025 2,112,773 7.11 September 9, 2025 3,029,748 6.25 9,098,514 7.04 Expiry date Warrants outstanding and exercisable Weighted average exercise price (CAD$) March 16, 2024 3,121,099 9.42 June 18, 2024 2,083,334 5.97 April 9, 2025 3,894,081 7.11 9,098,514 7.64 Expiry date Warrants exercisable Weighted August 14, 2021 36,858 5.25 36,858 5.25 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Warrants [Abstract] | |
Schedule of warrants | Number of Warrants Weighted Average Exercise Price (CAD$) Balance, December 31, 2019 - - Issued 36,858 5.25 Balance, December 31, 2020 36,858 5.25 Issued (note 14(b)(v)(vi)(vii)) 783,436 8.30 Expired (36,858 ) 5.25 Balance, December 31, 2021 783,436 8.30 Issued (note 14(b)(ix)) 242,380 6.25 Balance, December 31, 2022 1,025,816 7.81 |
Schedule of warrants issued and outstanding | Number of Exercise Price Weighted Expiry Date 249,688 10.01 1.21 March 16, 2024 (1) 222,222 6.75 1.47 June 18, 2024 (1) 311,526 8.025 2.27 April 9, 2025 (1) 242,380 6.25 2.69 September 9, 2025 (1) 1,025,816 7.81 1.94 Number of Exercise Price Weighted Expiry Date 249,688 10.01 2.21 March 16, 2024 (1) 222,222 6.75 2.47 June 18, 2024 (1) 311,526 8.025 3.27 April 9, 2025 (1) 783,436 8.30 2.71 Number of Exercise Price Weighted Expiry Date 36,858 5.25 0.87 August 14, 2021 36,858 5.25 0.87 (1) Broker warrants. |
Options and restricted share _2
Options and restricted share units (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Options and restricted share units [Abstarct] | |
Schedule of continuity of stock options | Number of Stock Options Weighted Average Exercise Price (CAD$) Balance, December 31, 2019 - - Granted 625,000 2.88 Balance, December 31, 2020 625,000 2.88 Granted (i)(ii)(iii)(iv)(v) 1,823,497 6.03 Exercised (1) (75,000 ) 3.17 Expired / cancelled (28,332 ) 6.09 Balance, December 31, 2021 2,345,165 5.28 Expired / cancelled (1,153,331 ) 5.46 Balance, December 31, 2022 1,191,834 5.11 (1) The market price on the date of exercise was CAD$8.88. (i) On January 5, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 550,164 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$3.75 and expire on January 5, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$2.76 per option was estimated for the 550,164 stock options on the date of grant with the following assumptions and inputs: share price of CAD$3.03; exercise price of CAD$3.75; expected dividend yield of 0%; expected volatility of 155% which is based on comparable companies; risk-free interest rate of 0.39%; and an expected average life of five years. (ii) On February 24, 2021, the Company granted stock options to consultants of the Company to acquire an aggregate of 50,000 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$13.92 and expire on February 24, 2026. The stock options vested immediately. A value of CAD$12.78 per option was estimated for the 50,000 stock options on the date of grant with the following assumptions and inputs: share price of CAD$13.92; exercise price of CAD$13.92; expected dividend yield of 0%; expected volatility of 155% which is based on comparable companies; risk-free interest rate of 0.73%; and an expected average life of five years. (iii) A value of CAD$6.87 per option was estimated for the 533,333 stock options on the date of grant with the following assumptions and inputs: share price of CAD$7.47; exercise price of CAD$7.47; expected dividend yield of 0%; expected volatility of 155% which is based on comparable companies; risk-free interest rate of 0.90%; and an expected average life of five years. (iv) On May 17, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 430,000 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$7.35 and expire on May 17, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$6.09 per option was estimated for the 430,000 stock options on the date of grant with the following assumptions and inputs: share price of CAD$7.86; exercise price of CAD$7.35; expected dividend yield of 0%; expected volatility of 105% which is based on comparable companies; risk-free interest rate of 0.95%; and an expected average life of five years. (v) On June 22, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 260,000 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$4.20 and expire on June 22, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$3.06 per option was estimated for the 260,000 stock options on the date of grant with the following assumptions and inputs: share price of CAD$4.02; exercise price of CAD$4.20; expected dividend yield of 0%; expected volatility of 105% which is based on comparable companies; risk-free interest rate of 0.95%; and an expected average life of five years. Number of RSUs Balance, December 31, 2020 and December 31, 2021 - Granted 1,449,250 Cancelled (10,000 ) Balance, December 31, 2022 1,439,250 |
Schedule of stock options issued and outstanding | Expiry Date Exercise Price (CAD$) Weighted Average Remaining Contractual Life (years) Number of Options Outstanding Number of Options Number of Options Unvested February 14, 2025 2.88 2.13 408,334 408,334 - January 5, 2026 3.75 3.02 258,498 258,498 - February 24, 2026 13.92 3.16 50,000 50,000 - March 25, 2026 7.47 3.23 233,334 233,334 - May 17, 2026 7.35 3.38 155,000 155,000 - June 22, 2026 4.20 3.48 86,668 86,668 - 5.11 2.84 1,191,834 1,191,834 - Expiry Date Exercise Price (CAD$) Weighted Average Remaining Contractual Life (years) Number of Options Outstanding Number of Options Number of Options Unvested February 14, 2025 2.88 3.13 575,000 575,000 - January 5, 2026 3.75 4.02 525,164 525,164 - February 24, 2026 13.92 4.15 50,000 50,000 - March 25, 2026 7.47 4.23 525,000 525,000 - May 17, 2026 7.35 4.38 421,667 421,667 - June 22, 2026 4.20 4.48 248,334 248,334 - 5.28 4.96 2,345,165 2,345,165 - Expiry Date Exercise Weighted Number of Number of Number of February 14, 2025 0.96 4.38 625,000 625,000 - 0.96 4.38 625,000 625,000 - |
Income (loss) per share (Tables
Income (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income (loss) per share [Abstract] | |
Schedule of income (loss) per share | Year Ended December 31, 2022 2021 2020 Net income (loss) for the year $ 4,329,342 $ (3,132,693 ) $ (5,190,713 ) Net income (loss) per share - basic $ 0.16 $ (0.14 ) $ (0.44 ) Net income (loss) per share - diluted $ 0.16 $ (0.14 ) $ (0.44 ) Weighted average number of shares outstanding - basic 27,227,284 21,781,806 11,715,524 Weighted average number of shares outstanding - diluted 27,227,284 21,781,806 11,715,524 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of remuneration of key management personnel | Year Ended December 31, 2022 2021 2020 Professional fees (1) $ 307,534 $ 91,249 $ 40,491 Salaries (1) 833,717 144,231 - Share based compensation (2) 3,092,012 6,016,173 1,047,943 $ 4,233,263 $ 6,251,653 $ 1,088,434 (1) Represents the professional fees and salaries paid to officers and directors. (2) Represents the share based compensation for officers and directors. |
Cash flow supplemental inform_2
Cash flow supplemental information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash flow supplemental information [Abstract] | |
Schedule of cash flow supplemental information | Year Ended December 31, 2022 2021 2020 Digital currencies items Digital currencies mined $ (24,190,060 ) $ (24,952,344 ) $ (3,553,362 ) Acquisition of digital currencies (3,932,000 ) - - Miner lease and hosting 9,768,179 3,469,287 - Loss on digital currency option calls 1,950,000 - - Services paid in digital currencies 739,024 - - Loss (gain) on sale of digital currencies 11,574,330 (290,948 ) (62,799 ) Interest paid in digital currencies 216,329 - - Digital currencies traded for cash 16,016,280 - - Loss on revaluation of digital currencies 3,386,890 - - $ 15,528,972 $ (21,774,005 ) $ (3,616,161 ) Working capital items Amounts receivable and prepaid expenses $ 574,129 $ (1,604,703 ) (275,294 ) Accounts payable and accrued liabilities 72,325 842,584 761,560 Income tax payable (550,000 ) - - Deposit payable (1,277,500 ) 1,788,500 - $ (1,181,046 ) $ 1,026,381 $ 486,266 |
Additional information on the_2
Additional information on the nature of comprehensive income (loss) components (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Additional information on the nature of comprehensive income (loss) components [Abstract] | |
Schedule of additional information on the nature of comprehensive loss components | Year Ended December 31, 2022 2021 2020 Expenses for employee benefits Operating and maintenance costs $ 444,400 $ 528,658 $ 182,628 Professional fees 307,534 91,249 40,491 Share based compensation 3,296,238 7,804,271 1,247,551 $ 4,048,172 $ 8,424,178 $ 1,460,670 Net financial expenses Interest on loans $ 238,204 $ 96,134 $ 41,992 Interest on lease liabilities 16,074 236,680 216,435 $ 254,278 $ 332,814 $ 258,427 |
Segmented Reporting (Tables)
Segmented Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segmented Reporting [Abstract] | |
Schedule of geographic segmentation | As at December 31, 2022 Canada United States Total Current assets $ 29,372 $ 6,100,481 $ 6,129,853 Non-current assets - 46,469,708 46,469,708 Total assets $ 29,372 $ 52,570,189 $ 52,599,561 As at December 31, 2021 Canada United States Total Current assets $ 179,396 $ 36,036,609 $ 36,216,005 Non-current assets 1,346,904 42,463,966 43,810,870 Total assets $ 1,526,300 $ 78,500,575 $ 80,026,875 As at December 31, 2020 Canada United States Total Current assets $ - $ 4,693,466 $ 4,693,466 Non-current assets 1,342,281 10,483,854 11,826,135 Total assets $ 1,342,281 $ 15,177,320 $ 16,519,601 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments and Risk Management [Abstract] | |
Schedule of corporation’s significant financial liabilities | As at December 31, 2022 Payments by period Less than More than Carrying 1 year 1-3 years 4-5 years 5 years Total Value Accounts payable and accrued liabilities $ 2,345,175 $ - $ - $ - $ 2,345,175 $ 2,345,175 Amount owing to Northern Data 322,099 - - - 322,099 322,099 Deposit payable - 511,000 - - 511,000 511,000 Lease liabilities 146,880 307,111 214,524 - 668,515 668,515 Mortgage payable 534,000 400,500 - - 934,500 934,500 $ 3,348,154 $ 1,218,611 $ 214,524 $ - $ 4,781,289 $ 4,781,289 As at December 31, 2021 Payments by period Less than More than Carrying 1 year 1-3 years 4-5 years 5 years Total Value Accounts payable and accrued liabilities $ 2,272,850 $ - $ - $ - $ 2,272,850 $ 2,272,850 Amount owing to Northern Data 2,940,412 - - - 2,940,412 2,940,412 Deposit payable - 1,788,500 - - 1,788,500 1,788,500 $ 5,213,262 $ 1,788,500 $ - $ - $ 7,001,762 $ 7,001,762 As at December 31, 2020 Payments by period Less than More than Carrying 1 year 1-3 years 4-5 years 5 years Total Value Accounts payable and accrued liabilities $ 920,914 $ 920,914 $ 920,914 Loan payable 2,146,231 570,933 $ - $ - 2,717,164 2,543,083 $ 3,067,145 $ 570,933 $ - $ - $ 3,638,078 $ 3,463,997 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes [Abstract] | |
Schedule of provision for income taxes | Year Ended December 31, 2022 2021 2020 (Restated) Income before income taxes $ 2,791,875 $ (832,074 ) $ (5,826,526 ) Combined statutory income tax rate 26.14 % 27.00 % 27.00 % Income tax benefit at the statutory tax rate 729,657 (224,660 ) (1,573,162 ) Non-deductible expenses 15,626 273,784 119,543 Revaluation of warrant liabilities (8,365,980 ) (418,774 ) - Foreign exchange gain (593,325 ) - - Share based compensation - 1,304,058 336,839 Tax asset recognized (71,801 ) Impairment of goodwill 329,506 - - Effect of lower tax rate of subsidiary - (103,388 ) - Temporary difference unrecognized - - 532,589 Other 59,931 126,874 1,497 Change in unrecognized deferred tax asset 6,287,118 1,342,725 18,682 Deferred Income tax (recovery) provision $ (1,537,467 ) $ 2,300,619 $ (635,813 ) Current income taxes in the income statement $ - $ 127,340 $ - Composition of deferred income taxes in the income statement Inception and reversal of temporary differences $ (7,824,585 ) $ 2,089,839 $ (1,168,402 ) Prior period adjustment - 83,440 Change in unrecognized deferred tax asset 6,287,118 - 532,589 Deferred Income tax (recovery) provision $ (1,537,467 ) $ 2,173,279 $ (635,813 ) Total income tax expense (recovery) for the year $ (1,537,467 ) $ 2,300,619 $ (635,813 ) |
Schedule of deferred tax assets | January 1, Profit or Other December 31, 2022 loss Income Equity 2022 Property, plant and equipment $ (1,781,767 ) $ (3,249,116 ) $ - $ - $ (5,030,883 ) Right of use assets (543,242 ) (120,181 ) - - (663,423 ) Digital currencies (1,047,759 ) 1,186,091 1,047,758 - 1,186,090 Lease liabilities - 143,082 - - 143,082 Stock based compensation 709,474 (638,992 ) - (70,482 ) - Non-capital losses 148,551 4,216,583 - - 4,365,134 Non-capital losses - Canada - 593,325 - - 593,325 Unrealized foreign exchange gain - Canada - (593,325 ) - - (593,325 ) Total $ (2,514,743 ) $ 1,537,467 $ 1,047,758 $ (70,482 ) $ - January 1, Profit or Other December 31, 2021 loss Income Equity 2021 Property, plant and equipment $ (755,431 ) $ (1,026,336 ) $ - $ - $ (1,781,767 ) Right of use assets (630,826 ) 87,584 - - (543,242 ) Digital currencies (701,451 ) - (346,308 ) - (1,047,759 ) Lease liabilities 665,439 (665,439 ) - - - Stock based compensation - 637,673 - 71,801 709,474 Non-capital losses 1,356,631 (1,208,080 ) - - 148,551 Total $ (65,638 ) $ (2,174,598 ) $ (346,308 ) $ 71,801 $ (2,514,743 ) January 1, Profit or Other December 31, 2021 loss Income Equity 2021 Property, plant and equipment - $ (755,431 ) $ - $ - $ (755,431 ) Right of use assets - (630,826 ) - - (630,826 ) Digital currencies - - (701,451 ) - (701,451 ) Lease liabilities - 665,439 - - 665,439 Non-capital losses - 1,356,631 - - 1,356,631 Total 635,813 (701,451 ) (65,638 ) |
Schedule of deferred tax assets | As at As at As at December 31, December 31, December 31, 2022 2021 2020 Share issue costs $ 6,042,213 $ 529,320 $ 758,041 Stock based compensation 4,307,117 - - Property, plant and equipment - - 26,402,452 Non-capital losses - USA 21,425,219 - - Non-capital losses - Canada 1,929,162 2,359,944 557,042 $ 33,703,711 $ 2,889,264 $ 27,717,535 |
Restatement (Tables)
Restatement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restatement [Abstract] | |
Schedule of consolidated statement of financial position | As reported Adjustment Restated LIABILITIES AND SHAREHOLDERS’ EQUITY Warrant liabilities $ - $ 31,943,365 $ 31,943,365 Total liabilities - 31,943,365 31,943,365 Shareholders’ equity Share capital 54,863,819 (23,440,724 ) 31,423,095 Contributed surplus 17,358,982 (5,514,401 ) 11,844,581 Cumulative translation adjustment (266,730 ) 433,798 167,068 Digital currency revaluation reserve 3,706,624 - 3,706,624 Deficit (5,457,926 ) (3,422,038 ) (8,879,964 ) Total shareholders’ equity $ 70,204,769 $ (31,943,365 ) $ 38,261,404 |
Schedule of consolidated statement of comprehensive income | As reported Adjustment Restated Operating income $ 2,922,778 $ - $ 2,922,778 Revaluation of warrant liabilities - 1,551,013 1,551,013 Share issuance costs - (4,973,051 ) (4,973,051 ) Net income (loss) before income taxes 2,589,964 (3,422,038 ) (832,074 ) Net income (loss) for the year 289,345 (3,422,038 ) (3,132,693 ) Other comprehensive income (loss) Items that will be reclassified to net income Foreign currency translation adjustment (384,892 ) 433,798 48,906 Items that will not be reclassified to net income Revaluation of digital currencies, net of tax 1,724,123 - 1,724,123 Total comprehensive income (loss) for the year $ 1,628,576 $ (2,988,240 ) $ (1,359,664 ) |
Nature of Operations and Goin_2
Nature of Operations and Going Concern (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Nature of Operations [Abstract] | |||
Working capital | $ 2,874,560 | $ 30,697,142 | $ 1,650,708 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - Schedule of company’s policies for property, plant and equipment | 12 Months Ended |
Dec. 31, 2008 | |
Data Miners [Member] | |
Significant Accounting Policies (Details) - Schedule of company’s policies for property, plant and equipment [Line Items] | |
Amortization method | Straight-line |
Equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of company’s policies for property, plant and equipment [Line Items] | |
Amortization method | Straight-line |
Leasehold Improvement [Member] | |
Significant Accounting Policies (Details) - Schedule of company’s policies for property, plant and equipment [Line Items] | |
Amortization method | Straight-line |
Amortization period | 120 months |
Powerplant in use [Member] | |
Significant Accounting Policies (Details) - Schedule of company’s policies for property, plant and equipment [Line Items] | |
Amortization method | Straight-line |
Amortization period | 480 months |
Bottom of Range [Member] | Data Miners [Member] | |
Significant Accounting Policies (Details) - Schedule of company’s policies for property, plant and equipment [Line Items] | |
Amortization period | 12 months |
Bottom of Range [Member] | Equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of company’s policies for property, plant and equipment [Line Items] | |
Amortization period | 36 months |
Top of Range [Member] | Data Miners [Member] | |
Significant Accounting Policies (Details) - Schedule of company’s policies for property, plant and equipment [Line Items] | |
Amortization period | 36 months |
Top of Range [Member] | Equipment [Member] | |
Significant Accounting Policies (Details) - Schedule of company’s policies for property, plant and equipment [Line Items] | |
Amortization period | 120 months |
Digital Currencies (Details)
Digital Currencies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Digital Currencies [Abstract] | |||
Prices of bitcoin | $ 16,548 | $ 47,117 | $ 29,002 |
Price of ethereum | 1,197 | 3,718 | 738 |
Revaluation loss | 8,010,913 | ||
Other comprehensive loss | 3,706,624 | ||
Net of taxes | 1,047,759 | ||
Remaining loss amount | 3,256,530 | ||
Current liabilities | $ 322,099 | $ 2,940,412 | $ 0 |
Digital Currencies (Details) -
Digital Currencies (Details) - Schedule of holdings of digital currencies - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Digital Currencies (Details) - Schedule of holdings of digital currencies [Line Items] | |||
Total | $ 2,800,657 | $ 33,491,986 | $ 4,508,042 |
Bitcoin [Member] | |||
Digital Currencies (Details) - Schedule of holdings of digital currencies [Line Items] | |||
Total | 1,842,177 | 29,770,994 | 4,508,042 |
Ethereum [Member] | |||
Digital Currencies (Details) - Schedule of holdings of digital currencies [Line Items] | |||
Total | $ 958,480 | $ 3,720,992 |
Digital Currencies (Details) _2
Digital Currencies (Details) - Schedule of continuity of digital currencies | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||||
Digital Currencies (Details) - Schedule of continuity of digital currencies [Line Items] | ||||||
Beginning balance, Amount | ||||||
Bitcoin mined, Amount | $ 24,190,059 | [1] | $ 24,952,344 | [1] | ||
Bitcoin remitted to Northern Data, Amount | [1] | (10,836,179) | ||||
Received from sale of property, plant and equipment, Amount | 345,658 | 1,552,295 | ||||
Acquisition of digital currencies, Amount | 3,932,000 | |||||
Digital currencies paid for services, Amount | (739,024) | |||||
Digital currencies traded for cash, Amount | (16,016,280) | |||||
Digital currencies for loan repayment, Amount | (11,982,320) | |||||
Received from private placement, Amount | 47,671 | |||||
Acquisition (disposal) of digital currencies, Amount | (756) | |||||
Acquisition of property, plant and equipment, Amount | (163,942) | |||||
Gain loss on sale of digital currencies, Amount | (11,574,330) | 290,948 | ||||
Bitcoin traded for cash, Amount | ||||||
Gain on sale of bitcoin, Amount | ||||||
Revaluation adjustment, Amount | (8,010,913) | [2] | 2,305,384 | [2] | ||
Total | 3,349,198 | |||||
Ending balance, Amount | $ 2,800,657 | $ 6 | $ 4,508,042 | |||
Bitcoin [Member] | ||||||
Digital Currencies (Details) - Schedule of continuity of digital currencies [Line Items] | ||||||
Beginning balance, Number | ||||||
Beginning balance, Amount | ||||||
Bitcoin mined, Number | 832 | [1] | 519 | [1] | 335 | |
Bitcoin mined, Amount | $ 24,190,059 | [1] | $ 24,952,344 | [1] | $ 3,553,362 | |
Bitcoin remitted to Northern Data, Number | [1] | (380) | ||||
Bitcoin remitted to Northern Data, Amount | [1] | $ (10,836,179) | ||||
Received from sale of property, plant and equipment, Number | 9 | 24 | ||||
Received from sale of property, plant and equipment, Amount | $ 345,658 | $ 1,347,977 | ||||
Acquisition of digital currencies, Number | 100 | |||||
Acquisition of digital currencies, Amount | $ 3,932,000 | |||||
Digital currencies paid for services, Number | (27) | |||||
Digital currencies paid for services, Amount | $ (739,024) | |||||
Digital currencies traded for cash, Number | (640) | |||||
Digital currencies traded for cash, Amount | $ (15,747,279) | |||||
Digital currencies for loan repayment, Number | (415) | |||||
Digital currencies for loan repayment, Amount | $ (11,982,320) | |||||
Received from private placement, Number | 1 | |||||
Received from private placement, Amount | $ 47,671 | |||||
Acquisition (disposal) of digital currencies, Number | (66) | |||||
Acquisition (disposal) of digital currencies, Amount | $ (3,347,790) | |||||
Acquisition of property, plant and equipment, Number | ||||||
Acquisition of property, plant and equipment, Amount | ||||||
Gain loss on sale of digital currencies, Number | ||||||
Gain loss on sale of digital currencies, Amount | $ (11,574,330) | $ 235,067 | ||||
Bitcoin traded for cash, Number | (181) | |||||
Bitcoin traded for cash, Amount | $ (1,792,071) | |||||
Gain on sale of bitcoin, Number | ||||||
Gain on sale of bitcoin, Amount | $ 62,799 | |||||
Revaluation adjustment, Number | [2] | [2] | ||||
Revaluation adjustment, Amount | $ (5,517,402) | [2] | $ 2,027,683 | [2] | $ 2,683,952 | |
Total | $ 2,977,099 | |||||
Ending balance, Number | 111 | 632 | 154 | |||
Ending balance, Amount | $ 1,842,177 | $ 4 | $ 4,508,042 | |||
Ethereum [Member] | ||||||
Digital Currencies (Details) - Schedule of continuity of digital currencies [Line Items] | ||||||
Beginning balance, Number | ||||||
Beginning balance, Amount | ||||||
Bitcoin mined, Number | [1] | [1] | ||||
Bitcoin mined, Amount | [1] | [1] | ||||
Bitcoin remitted to Northern Data, Number | [1] | |||||
Bitcoin remitted to Northern Data, Amount | [1] | |||||
Received from sale of property, plant and equipment, Number | 63 | |||||
Received from sale of property, plant and equipment, Amount | $ 204,318 | |||||
Acquisition of digital currencies, Number | ||||||
Acquisition of digital currencies, Amount | ||||||
Digital currencies paid for services, Number | ||||||
Digital currencies paid for services, Amount | ||||||
Digital currencies traded for cash, Number | (200) | |||||
Digital currencies traded for cash, Amount | $ (269,001) | |||||
Digital currencies for loan repayment, Number | ||||||
Digital currencies for loan repayment, Amount | ||||||
Received from private placement, Number | ||||||
Received from private placement, Amount | ||||||
Acquisition (disposal) of digital currencies, Number | 974 | |||||
Acquisition (disposal) of digital currencies, Amount | $ 3,347,034 | |||||
Acquisition of property, plant and equipment, Number | (36) | |||||
Acquisition of property, plant and equipment, Amount | $ (163,942) | |||||
Gain loss on sale of digital currencies, Number | ||||||
Gain loss on sale of digital currencies, Amount | $ 55,881 | |||||
Bitcoin traded for cash, Number | ||||||
Bitcoin traded for cash, Amount | ||||||
Gain on sale of bitcoin, Number | ||||||
Gain on sale of bitcoin, Amount | ||||||
Revaluation adjustment, Number | [2] | [2] | ||||
Revaluation adjustment, Amount | $ (2,493,511) | [2] | $ 277,701 | [2] | ||
Total | $ 372,099 | |||||
Ending balance, Number | 801 | 1,001 | ||||
Ending balance, Amount | $ 958,480 | $ 2 | ||||
[1]During the year ended December 31, 2021, the Company entered into a Miner Lease Agreement and a hosting services agreement with Northern Data, NY LLC, pursuant to which the parties have agreed to split a portion of the mining rewards received and energy costs incurred for the miners put in service pursuant to these agreements. As at December 31, 2022, the Company must remit 19 Bitcoin (2021 - 62 Bitcoin) with a value of $322,099 (2021 - $2,940,412, 2020 - $0) which is presented in the current liabilities.[2]Digital assets held are revalued each reporting period based on the fair market value of the price of Bitcoin and Ethereum on the reporting date. As at December 31, 2022, the prices of Bitcoin and Ethereum were $16,548 (2021 - $47,117, 2020 - $29,002) and $1,197 (2021 - $3,718, 2020 - $738), respectively resulting in total revaluation loss of $8,010,913. The Company recorded $3,706,624 of the loss in other comprehensive loss, net of taxes of $1,047,759, and the remaining loss of $3,256,530 was recorded on the statement of comprehensive income. |
Amounts Receivable and Prepai_3
Amounts Receivable and Prepaid Expenses (Details) - Schedule of amounts receivable and prepaid expenses - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of amounts receivable and prepaid expenses [Abstract] | |||
Prepaid insurance and deposits | $ 741,350 | $ 709,575 | |
Receivable from Northern Data | 492,825 | 911,200 | |
Other receivable | 187,529 | 161,919 | |
Total | $ 1,234,175 | $ 1,808,304 | $ 161,919 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) | May 12, 2021 Bitcoin | |
Property, Plant and Equipment [Abstract] | ||
Performance bitcoin miners | Bitcoin | 10,000 | |
Impairment amount | $ | $ 1,556,000 | |
Performance bitcoin miners description | Included in this total are 10,000 high performance Bitcoin miners sourced from Northern Data AG per a definitive purchase agreement entered into on May 12, 2021. |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of property plant and equipment - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Property, Plant and Equipment (Details) - Schedule of property plant and equipment [Line Items] | ||||
Cost, Beginning Balance | $ 43,210,347 | $ 9,602,789 | ||
Cost, ending balance | 57,709,393 | 43,210,347 | 9,602,789 | |
Accumulated depreciation, Beginning Balance | 3,105,155 | |||
Accumulated depreciation, depreciation | 10,527,912 | 2,953,602 | ||
Impairment | 1,556,000 | |||
Accumulated depreciation,disposal | (1,253,992) | (990,517) | ||
Accumulated depreciation, ending balance | 15,898,160 | 5,068,240 | ||
Net carrying value, beginning balance | 38,142,107 | |||
Net carrying value, ending balance | 41,811,233 | 38,142,107 | ||
Cost, additions | 15,753,038 | 34,598,075 | 7,358,280 | |
Cost, Disposal | (1,253,992) | (990,517) | ||
Transfer asset in use | ||||
Acquired from RTO | ||||
Data miners [Member] | ||||
Property, Plant and Equipment (Details) - Schedule of property plant and equipment [Line Items] | ||||
Cost, Beginning Balance | ||||
Cost, ending balance | 1,007,010 | |||
Accumulated depreciation, Beginning Balance | ||||
Accumulated depreciation, depreciation | ||||
Impairment | ||||
Accumulated depreciation,disposal | ||||
Accumulated depreciation, ending balance | ||||
Net carrying value, beginning balance | ||||
Net carrying value, ending balance | 1,007,010 | |||
Cost, additions | 1,007,010 | |||
Cost, Disposal | ||||
Transfer asset in use | ||||
Acquired from RTO | ||||
Equipment and other [Member] | ||||
Property, Plant and Equipment (Details) - Schedule of property plant and equipment [Line Items] | ||||
Cost, Beginning Balance | 31,658,103 | 5,802,789 | ||
Cost, ending balance | 30,404,111 | 31,658,103 | 5,802,789 | |
Accumulated depreciation, Beginning Balance | 2,538,211 | |||
Accumulated depreciation, depreciation | 8,815,246 | 2,272,602 | ||
Impairment | 1,556,000 | |||
Accumulated depreciation,disposal | (1,253,992) | (990,517) | ||
Accumulated depreciation, ending balance | 12,937,550 | 3,820,296 | ||
Net carrying value, beginning balance | 27,837,807 | |||
Net carrying value, ending balance | 17,466,561 | 27,837,807 | ||
Cost, additions | 26,845,831 | [1] | 3,558,280 | |
Cost, Disposal | (1,253,992) | (990,517) | ||
Transfer asset in use | ||||
Acquired from RTO | 2,244,509 | |||
Leasehold improvement [Member] | ||||
Property, Plant and Equipment (Details) - Schedule of property plant and equipment [Line Items] | ||||
Cost, Beginning Balance | 3,363,324 | 2,760,000 | ||
Cost, ending balance | 10,593,329 | 3,363,324 | 2,760,000 | |
Accumulated depreciation, Beginning Balance | 479,888 | |||
Accumulated depreciation, depreciation | 591,329 | 577,000 | ||
Impairment | ||||
Accumulated depreciation,disposal | ||||
Accumulated depreciation, ending balance | 1,648,217 | 1,056,888 | ||
Net carrying value, beginning balance | 2,306,436 | |||
Net carrying value, ending balance | 8,945,112 | 2,306,436 | ||
Cost, additions | 7,669,386 | 603,324 | 2,760,000 | |
Cost, Disposal | ||||
Transfer asset in use | (439,381) | |||
Acquired from RTO | ||||
Powerplant in progress [Member] | ||||
Property, Plant and Equipment (Details) - Schedule of property plant and equipment [Line Items] | ||||
Cost, Beginning Balance | 1,040,000 | 1,040,000 | ||
Cost, ending balance | 1,079,542 | 1,040,000 | 1,040,000 | |
Accumulated depreciation, Beginning Balance | 87,056 | |||
Accumulated depreciation, depreciation | 105,208 | 104,000 | ||
Impairment | ||||
Accumulated depreciation,disposal | ||||
Accumulated depreciation, ending balance | 296,264 | 191,056 | ||
Net carrying value, beginning balance | 848,944 | |||
Net carrying value, ending balance | 783,278 | 848,944 | ||
Cost, additions | 39,542 | 1,040,000 | ||
Cost, Disposal | ||||
Transfer asset in use | ||||
Acquired from RTO | ||||
Power plant in progress [Member] | ||||
Property, Plant and Equipment (Details) - Schedule of property plant and equipment [Line Items] | ||||
Cost, Beginning Balance | 7,148,920 | |||
Cost, ending balance | 10,967,335 | 7,148,920 | ||
Accumulated depreciation, Beginning Balance | ||||
Accumulated depreciation, depreciation | ||||
Impairment | ||||
Accumulated depreciation,disposal | ||||
Accumulated depreciation, ending balance | ||||
Net carrying value, beginning balance | 7,148,920 | |||
Net carrying value, ending balance | 10,967,335 | 7,148,920 | ||
Cost, additions | 7,037,100 | 7,148,920 | ||
Cost, Disposal | ||||
Transfer asset in use | (3,218,685) | |||
Acquired from RTO | ||||
Powerplant in use [Member] | ||||
Property, Plant and Equipment (Details) - Schedule of property plant and equipment [Line Items] | ||||
Cost, Beginning Balance | ||||
Cost, ending balance | 3,658,066 | |||
Accumulated depreciation, Beginning Balance | ||||
Accumulated depreciation, depreciation | 1,016,129 | |||
Impairment | ||||
Accumulated depreciation,disposal | ||||
Accumulated depreciation, ending balance | 1,016,129 | |||
Net carrying value, beginning balance | ||||
Net carrying value, ending balance | 2,641,937 | |||
Cost, additions | ||||
Cost, Disposal | ||||
Transfer asset in use | $ 3,658,066 | |||
Acquired from RTO | ||||
[1]Included in this total are 10,000 high performance Bitcoin miners sourced from Northern Data AG per a definitive purchase agreement entered into on May 12, 2021. |
Right-of-Use Assets (Details)
Right-of-Use Assets (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2022 | Feb. 14, 2020 | Dec. 31, 2021 | |
Right-of-Use Assets [Abstract] | |||
Right-of-use assets, description | the Company entered into a 99 year lease for the 1001 East Delavan facility in exchange for a one time prepayment of $2.3 million. | ||
Right-of-use asset depreciated term | 40 years | ||
Leases term | 5 years | ||
Increase in right of use assets and liabilities (in Dollars) | $ 2,588,107 | ||
Borrowing rate | 10% |
Right-of-Use Assets (Details) -
Right-of-Use Assets (Details) - Schedule of right-of-use assets - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of Right of Use Assets [Abstract] | ||||
Balance, beginning of period | $ 2,078,599 | $ 2,413,720 | ||
Additions | [1],[2] | 602,172 | 2,588,107 | |
Depreciation | (142,324) | (198,291) | (174,387) | |
Modification of lease | [3] | (136,830) | ||
Balance, end of period | $ 2,538,447 | $ 2,078,599 | $ 2,413,720 | |
[1]In April 2022, the Company entered into a lease for its head office for a term of 5 years.[2]On February 14, 2020, prior to the closing of the RTO Transaction, BIT Management, LLC, Nyam, LLC and BIT Mining International, LLC (collectively the “Sellers”, all companies controlled by the CEO of Digihost) sold to the Company leasehold improvements and equipment and transferred and assigned the lease of the 1001 East Delavan facility. As consideration, the transaction resulted in an increase in right of use assets and liabilities of $2,588,107. When measuring lease liability, the Company’s incremental borrowing rate applied was estimated to be 10% per annum.[3]On December 31, 2021, the Company entered into a 99 year lease for the 1001 East Delavan facility in exchange for a one time prepayment of $2.3 million. This long-term lease is treated as a lease modification of the current lease. This right-of-use asset is depreciated over 40 years. The lease for this right-of-use assets has been modified because of the prepayment as the Company has acquired the premises under a long-term lease. |
Intangible Asset (Details) - Sc
Intangible Asset (Details) - Schedule of intangible asset relates to the right of use of an electric power facility - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of intangible asset relates to the right of use of an electric power facility [Abstract] | |||
Balance, beginning of period | $ 1,443,260 | $ 1,572,500 | |
Addition at cost | 1,680,000 | ||
Amortization | (129,232) | (129,240) | (107,500) |
Balance, end of period | $ 1,314,028 | $ 1,443,260 | $ 1,572,500 |
Goodwill (Details)
Goodwill (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill (Details) [Line Items] | |
Impairment of goodwill (in Dollars) | $ 1,260,783 |
Capital expenditures and expenses period | 5 years |
Bottom of range [member] | |
Goodwill (Details) [Line Items] | |
Discount rate | 20% |
Top of range [member] | |
Goodwill (Details) [Line Items] | |
Discount rate | 22% |
Monthly Bitcoin [Member] | |
Goodwill (Details) [Line Items] | |
Average growth rate | 2.20% |
Difficulty [Member] | |
Goodwill (Details) [Line Items] | |
Average growth rate | 2.80% |
Terminal [Member] | |
Goodwill (Details) [Line Items] | |
Average growth rate | 2.50% |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of goodwill - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Goodwill [Abstract] | |||
Balance, beginning of period | $ 1,346,904 | $ 1,342,281 | |
RTO Transaction | 1,289,906 | ||
Impairment | (1,260,783) | ||
Foreign currency translation | (86,121) | 4,623 | 52,375 |
Balance, end of period | $ 1,346,904 | $ 1,342,281 |
Promissory Note Receivable (Det
Promissory Note Receivable (Details) | Dec. 31, 2021 USD ($) |
Promissory Note Receivable [Abstract] | |
Principal amount | $ 800,000 |
Interest rate | 6% |
Lease liabilities (Details)
Lease liabilities (Details) - USD ($) | 1 Months Ended | ||
Apr. 30, 2022 | Feb. 14, 2020 | Dec. 31, 2021 | |
Lease Liabilities [Abstract] | |||
Prepayments | $ 2,300,000 | ||
Lease term | 5 years | ||
Borrowing rate percentage | 10% | ||
Right of use assets and liabilities | $ 2,588,107 | ||
Borrowing rate | 10% |
Lease liabilities (Details) - S
Lease liabilities (Details) - Schedule of the lease liabilities - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of The Lease Liabilities [Abstract] | ||||
Balance, beginning of period | $ 2,546,160 | |||
Additions | [1],[2] | 602,172 | 2,588,107 | |
Interest | 41,299 | 236,680 | 216,434 | |
Lease payments | (96,000) | (2,647,669) | (258,381) | |
Modification of lease | [3] | (135,171) | ||
Balance, end of period | 547,471 | 2,546,160 | ||
Current portion | 99,957 | 111,672 | ||
Non-current portion | 447,514 | 2,434,488 | ||
Total lease liabilities | $ 547,471 | $ 2,546,160 | ||
[1]In April 2022, the Company entered into a lease for its head office for a term of 5 years. When measuring lease liability, the Company’s incremental borrowing rate applied was estimated to be 10% per annum.[2]On February 14, 2020, prior to the closing of the RTO Transaction, BIT Management, LLC, Nyam, LLC and BIT Mining International, LLC (collectively the “Sellers”, all companies controlled by the CEO of Digihost) sold to the Company leasehold improvements and equipment and transferred and assigned the lease of the 1001 East Delavan facility. As consideration, the transaction resulted in an increase in right of use assets and liabilities of $2,588,107. When measuring lease liability, the Company’s incremental borrowing rate applied was estimated to be 10% per annum.[3]On December 31, 2021, the Company entered into a 99-year lease for the 1001 East Delavan facility in exchange for a one-time prepayment of $2.3 million. This long-term lease is treated as a lease modification of the current lease. Refer to note 6. |
Lease liabilities (Details) -_2
Lease liabilities (Details) - Schedule of maturity analysis - contractual undiscounted cash flows | Dec. 31, 2022 USD ($) |
Schedule of Maturity Analysis Contractual Undiscounted Cash Flows [Abstract] | |
Less than one year | $ 146,880 |
One to five years | 521,635 |
Total undiscounted lease obligations | $ 668,515 |
Loans Payable (Details)
Loans Payable (Details) | Mar. 02, 2022 USD ($) |
Loans Payable [Abstract] | |
Credit facility loans payable | $ 10,000,000 |
Interest rate | 7.50% |
Loans Payable (Details) - Sched
Loans Payable (Details) - Schedule of loans payable - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of Loans Payable [Abstract] | ||||
Balance, beginning of the period | $ 2,543,083 | |||
New loans | [1] | 10,000,000 | 1,432,000 | 2,543,083 |
Repayment of loans | (10,000,000) | (3,975,083) | ||
Balance, end of the period | $ 2,543,083 | |||
[1]On March 2, 2022, the Company announced the closing of a $10,000,000 committed, collateralized revolving credit facility with Securitize, Inc. (the “Loan Facility”). The Loan Facility had a one-year committed term and an interest rate of 7.5% per annum. |
Mortgage payable (Details)
Mortgage payable (Details) | Jun. 30, 2022 USD ($) |
Mortgage payable [Abstract] | |
Borrowing rate | 7% |
Interest payable | $ 44,500 |
Maturity date | September 2024 |
Net book value. | $ 2,651,500 |
Mortgage payable (Details) - Sc
Mortgage payable (Details) - Schedule of incremental borrowing rate - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Mortgage payable (Details) - Schedule of incremental borrowing rate [Line Items] | |||
Balance, beginning of period | |||
Additions | 993,912 | ||
Interest | 16,715 | ||
Payments | (133,500) | ||
Balance, end of period | 877,127 | ||
Current portion | 488,062 | ||
Non-current portion | 389,065 | ||
Total mortgage payable | $ 877,127 |
Mortgage payable (Details) - _2
Mortgage payable (Details) - Schedule of contractual undiscounted cash flows | Dec. 31, 2022 USD ($) |
Mortgage payable (Details) - Schedule of contractual undiscounted cash flows [Line Items] | |
Total undiscounted mortgage obligations | $ 934,500 |
Less Than One Year [Member] | |
Mortgage payable (Details) - Schedule of contractual undiscounted cash flows [Line Items] | |
Total undiscounted mortgage obligations | 534,000 |
One to five years [Member] | |
Mortgage payable (Details) - Schedule of contractual undiscounted cash flows [Line Items] | |
Total undiscounted mortgage obligations | $ 400,500 |
Warrant liabilities (Details) -
Warrant liabilities (Details) - Schedule of the warrant liabilities - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of the warrant liabilities [Abstract] | |||
Number of warrants, Beginning balance | |||
Amount, Beginning balance | |||
Number of warrants, Warrants issued | 3,029,748 | 9,098,514 | 36,858 |
Warrants issued | $ 7,007,643 | $ 33,989,639 | $ 193,505 |
Number of warrants, Warrants cancelled (note 14(b)(ix)) | (3,029,748) | ||
Warrants cancelled (note 14(b)(ix)) | $ (5,887,840) | ||
Number of warrants, Pre-funded warrants issued (note 14(b)(ix)) | 300,000 | ||
Pre-funded warrants issued (note 14(b)(ix)) | $ 927,463 | ||
Number of warrants, Pre-funded warrants exercised (note 14(b)(ix)) | (300,000) | ||
Pre-funded warrants exercised (note 14(b)(ix)) | $ (927,463) | ||
Number of warrants, Revaluation of warrant liabilities | |||
Revaluation of warrant liabilities | $ (32,010,637) | $ (1,551,013) | |
Number of warrants, Foreign currency translation | |||
Foreign currency translation | $ (230,834) | $ (495,261) | |
Number of warrants, Expired | (36,858) | ||
Expired | $ 193,505 | ||
Number of warrants, Ending balance | 9,098,514 | 9,098,514 | |
Amount, Ending balance | $ 821,697 | $ 31,943,365 |
Warrant liabilities (Details)_2
Warrant liabilities (Details) - Schedule of fair value warrants | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2021 $ / shares | |
Warrant liabilities (Details) - Schedule of fair value warrants [Line Items] | ||||
Spot price (in CAD$) (in Dollars per share) | $ / shares | $ 0.47 | $ 5.97 | ||
Risk-free interest rate | 4.07% | 1.03% | ||
Expected annual volatility | 143% | 147% | ||
Expected life (years) | 2 years 3 days | 2 years 8 months 19 days | ||
Dividend (in Dollars) | $ | ||||
Issued [Member] | ||||
Warrant liabilities (Details) - Schedule of fair value warrants [Line Items] | ||||
Spot price (in CAD$) (in Dollars per share) | $ / shares | $ 3.78 | $ 6.04 | ||
Risk-free interest rate | 1.62% | 0.66% | ||
Expected annual volatility | 145% | 139% | ||
Expected life (years) | 3 years 6 months | 3 years 5 months 4 days | ||
Dividend (in Dollars) | $ |
Warrant liabilities (Details)_3
Warrant liabilities (Details) - Schedule of warrants outstanding and exercisable - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Warrant liabilities (Details) - Schedule of warrants outstanding and exercisable [Line Items] | |||
Warrants outstanding and exercisable | 9,098,514 | 9,098,514 | 36,858 |
Weighted average exercise price | $ 7.04 | $ 7.64 | $ 5.25 |
March 16, 2024 [Member] | |||
Warrant liabilities (Details) - Schedule of warrants outstanding and exercisable [Line Items] | |||
Expiry date | Mar. 16, 2024 | Mar. 16, 2024 | |
Warrants outstanding and exercisable | 1,872,659 | 3,121,099 | |
Weighted average exercise price | $ 9.42 | $ 9.42 | |
June 18, 2024 [Member] | |||
Warrant liabilities (Details) - Schedule of warrants outstanding and exercisable [Line Items] | |||
Expiry date | Jun. 18, 2024 | Jun. 18, 2024 | |
Warrants outstanding and exercisable | 2,083,334 | 2,083,334 | |
Weighted average exercise price | $ 5.97 | $ 5.97 | |
April 9, 2025 [Member] | |||
Warrant liabilities (Details) - Schedule of warrants outstanding and exercisable [Line Items] | |||
Expiry date | Apr. 09, 2025 | Apr. 09, 2025 | |
Warrants outstanding and exercisable | 2,112,773 | 3,894,081 | |
Weighted average exercise price | $ 7.11 | $ 7.11 | |
September 9, 2025 [Member] | |||
Warrant liabilities (Details) - Schedule of warrants outstanding and exercisable [Line Items] | |||
Expiry date | Sep. 09, 2025 | ||
Warrants outstanding and exercisable | 3,029,748 | ||
Weighted average exercise price | $ 6.25 | ||
August 14, 2021 [Member] | |||
Warrant liabilities (Details) - Schedule of warrants outstanding and exercisable [Line Items] | |||
Expiry date | Aug. 14, 2021 | ||
Warrants outstanding and exercisable | 36,858 | ||
Weighted average exercise price | $ 5.25 |
Share capital (Details)
Share capital (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Nov. 01, 2022 USD ($) shares | Mar. 09, 2022 USD ($) shares | Mar. 09, 2022 CAD ($) shares | Mar. 09, 2022 USD ($) $ / shares shares | Mar. 09, 2022 CAD ($) $ / shares shares | Apr. 09, 2021 USD ($) shares | Apr. 09, 2021 CAD ($) $ / shares shares | Mar. 16, 2021 $ / shares | Feb. 09, 2021 USD ($) shares | Jan. 08, 2021 USD ($) shares | Jan. 08, 2021 CAD ($) $ / shares shares | Jan. 05, 2021 $ / shares | Dec. 07, 2020 shares | Dec. 31, 2022 USD ($) shares | Sep. 30, 2022 USD ($) | May 31, 2022 shares | Nov. 30, 2021 USD ($) shares | Jun. 22, 2021 $ / shares | Jun. 18, 2021 USD ($) shares | Jun. 18, 2021 CAD ($) $ / shares shares | May 17, 2021 $ / shares | Mar. 26, 2021 $ / shares | Mar. 16, 2021 USD ($) shares | Mar. 16, 2021 CAD ($) $ / shares shares | Feb. 24, 2021 $ / shares | Feb. 18, 2021 USD ($) shares | Feb. 18, 2021 CAD ($) $ / shares shares | Feb. 14, 2020 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 USD ($) shares | Dec. 31, 2019 CAD ($) $ / shares shares | |
Share capital (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Voting shares description | Unlimited subordinate voting shares without par value and conferring 1 vote per share.Unlimited proportionate voting shares without par value, conferring 200 votes per share, convertible at the holder’s option into subordinate voting shares on a basis of 200 subordinate voting shares for 1 proportionate voting shares. | |||||||||||||||||||||||||||||||||
Aggregate gross proceeds | $ 4,064,431 | $ 5,395,338 | ||||||||||||||||||||||||||||||||
Common shares issued (in Shares) | shares | 164,000 | 1,827,304 | 1,827,304 | |||||||||||||||||||||||||||||||
Subordinate voting per share (in Dollars per share) | $ / shares | $ 7.11 | $ 2.43 | $ 5.97 | $ 8.01 | $ 2.43 | $ 2.88 | ||||||||||||||||||||||||||||
Subordinate voting shares (in Shares) | shares | 3,894,081 | 3,894,081 | 66,667 | 116,625 | 116,625 | 667,894 | 16,136 | 2,777,779 | 2,777,779 | 3,121,099 | 3,121,099 | 1,646,090 | 1,646,090 | 1,864,162 | 36,858 | 36,858 | ||||||||||||||||||
Warrants issued (in Shares) | shares | 36,858 | |||||||||||||||||||||||||||||||||
Estimated value | $ 20,000 | |||||||||||||||||||||||||||||||||
Proportionate voting shares (in Shares) | shares | 3,333 | |||||||||||||||||||||||||||||||||
Lease shares (in Shares) | shares | 1,001 | |||||||||||||||||||||||||||||||||
Transactions cost | $ 2,760,000 | |||||||||||||||||||||||||||||||||
leasehold improvements | 1,040,000 | |||||||||||||||||||||||||||||||||
Intangible assets | 1,680,000 | |||||||||||||||||||||||||||||||||
Assets | 2,588,107 | |||||||||||||||||||||||||||||||||
Record share capital | $ 5,480,000 | |||||||||||||||||||||||||||||||||
RTO transaction description | On February 14, 2020, there was a RTO Transaction between Old Digihost and HashChain. In connection with completion of the RTO Transaction, HashChain acquired all the issued and outstanding shares of Old Digihost in exchange for 9,940,000 subordinate voting shares of the Company. In substance, the transaction involves Old Digihost shareholders obtaining control of the Company; accordingly, the transaction is considered to be a reverse acquisition transaction under which Old Digihost is identified as the accounting acquirer. The common shares issued were valued based on the HashChain closing price of CAD$0.60 on the TSXV on February 14, 2020 (Fair value of 6,530,560 subordinate voting shares of HashChain $2,957,458)(v) On February 14, 2020, the Company issued 43,537 subordinate voting shares as settlement of payables of $59,149. | |||||||||||||||||||||||||||||||||
Subordinate voting shares cancelled (in Shares) | shares | 1,219,762 | 164,533 | ||||||||||||||||||||||||||||||||
Total repurchase price | $ 600,865 | |||||||||||||||||||||||||||||||||
Settlement of payables | $ 92,825 | $ 40,000 | $ 40,000 | $ 532,911 | ||||||||||||||||||||||||||||||
Gross proceeds | $ 10,424,453 | $ 13,330,861 | $ 19,748,795 | $ 25,000,000 | $ 220,551 | $ 283,400 | $ 12,025,016 | $ 15,000,000 | $ 19,985,611 | $ 25,000,000 | $ 3,124,018 | $ 4,000,000 | ||||||||||||||||||||||
Commission (in Shares) | shares | 49,383 | 49,383 | ||||||||||||||||||||||||||||||||
Fair value to the warrants | 14,214,397 | |||||||||||||||||||||||||||||||||
Expenses totaling | $ 1,080,584 | |||||||||||||||||||||||||||||||||
Non-transferable broker warrants (in Shares) | shares | 242,380 | |||||||||||||||||||||||||||||||||
Voting per share (in Dollars per share) | $ / shares | $ 6.42 | |||||||||||||||||||||||||||||||||
Total issuance cost | 2,817,223 | 1,664,562 | 3,103,007 | $ 695,170 | 4,973,051 | |||||||||||||||||||||||||||||
Net loss as the cost of issuance | 2,008,069 | 767,579 | 2,197,403 | |||||||||||||||||||||||||||||||
Fair value | $ 1,121,763 | $ 581,060 | $ 1,124,704 | $ 32,010,637 | 1,551,013 | |||||||||||||||||||||||||||||
Broker warrants (in Shares) | shares | 249,688 | 249,688 | 242,380 | |||||||||||||||||||||||||||||||
Share per price (in Dollars per share) | $ / shares | $ 5.49 | $ 4.56 | $ 7.71 | |||||||||||||||||||||||||||||||
Expected dividend | 0% | 0% | 0% | 0% | 0% | 0% | 0% | |||||||||||||||||||||||||||
Expected volatility | 143% | 143% | 155% | 105% | 105% | 155% | 235% | 235% | 155% | |||||||||||||||||||||||||
Risk-free interest rate | 0.77% | 0.77% | 0.39% | 0.95% | 0.63% | 0.63% | 0.95% | 0.90% | 0.53% | 0.53% | 0.73% | |||||||||||||||||||||||
Fair value warrants | $ 7,007,643 | $ 14,205,769 | $ 5,569,473 | $ 535,009 | ||||||||||||||||||||||||||||||
Per share (in Dollars per share) | $ / shares | $ 5.4 | |||||||||||||||||||||||||||||||||
Fair values of broker warrants | $ 581,060 | |||||||||||||||||||||||||||||||||
Subordinate voting value | $ 13,816 | $ 40,000 | ||||||||||||||||||||||||||||||||
Subordinate voting shares (in Shares) | shares | 19,391 | 2,729,748 | 2,729,748 | 165,200 | 1,248,440 | |||||||||||||||||||||||||||||
Purchase price (in Dollars) | $ 4.4 | |||||||||||||||||||||||||||||||||
Pre-funded warrants (in Shares) | shares | 300,000 | 300,000 | ||||||||||||||||||||||||||||||||
Exercise price | (per share) | $ 0.0001 | $ 9.42 | $ 3.75 | $ 4.2 | $ 7.35 | $ 7.47 | $ 13.92 | $ 6.25 | ||||||||||||||||||||||||||
Offering price per share (in Dollars per share) | $ / shares | $ 4.3999 | |||||||||||||||||||||||||||||||||
Common shares (in Shares) | shares | 3,029,748 | 3,029,748 | ||||||||||||||||||||||||||||||||
Exercise price per share (in Dollars per share) | $ / shares | $ 6.25 | $ 7.11 | $ 6.25 | |||||||||||||||||||||||||||||||
Cash received | $ 30 | |||||||||||||||||||||||||||||||||
Initial issuance costs | $ 927,463 | |||||||||||||||||||||||||||||||||
Warrant expiry term | Mar. 16, 2024 | |||||||||||||||||||||||||||||||||
Increase in share capital | $ 39,602,634 | $ 39,602,634 | $ 39,602,634 | $ 31,423,095 | $ 12,541,038 | |||||||||||||||||||||||||||||
Total proceeds private placement warrants | 15,255,979 | |||||||||||||||||||||||||||||||||
Issuance costs | 1,615,593 | |||||||||||||||||||||||||||||||||
Net income as the cost of issuance | 695,170 | |||||||||||||||||||||||||||||||||
Reduction warrants | 102,138 | |||||||||||||||||||||||||||||||||
Grant date fair value | 535,009 | |||||||||||||||||||||||||||||||||
Share price (in Dollars per share) | $ / shares | $ 2.76 | $ 4.02 | $ 7.86 | $ 6.87 | $ 13.92 | $ 3.78 | ||||||||||||||||||||||||||||
Total repurchase price | 255,525 | |||||||||||||||||||||||||||||||||
Private Placements [Member] | ||||||||||||||||||||||||||||||||||
Share capital (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Subordinate voting shares (in Shares) | shares | 3,894,081 | 3,894,081 | 2,777,779 | 2,777,779 | 3,121,099 | 3,121,099 | ||||||||||||||||||||||||||||
Increase in share capital | $ 5,887,616 | $ 5,887,616 | $ 5,887,616 | |||||||||||||||||||||||||||||||
Warrant [Member] | ||||||||||||||||||||||||||||||||||
Share capital (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Subordinate voting per share (in Dollars per share) | $ / shares | $ 8.025 | $ 6.75 | $ 9.42 | |||||||||||||||||||||||||||||||
Subordinate voting shares (in Shares) | shares | 3,894,081 | 3,894,081 | 2,083,334 | 2,083,334 | 3,121,099 | 3,121,099 | ||||||||||||||||||||||||||||
Fair value to the warrants | $ 1,124,704 | |||||||||||||||||||||||||||||||||
Voting per share (in Dollars per share) | $ / shares | $ 10.01 | |||||||||||||||||||||||||||||||||
Expected volatility | 136% | 136% | 136% | |||||||||||||||||||||||||||||||
Risk-free interest rate | 1.62% | |||||||||||||||||||||||||||||||||
Fair value warrants | $ 1,022,915 | |||||||||||||||||||||||||||||||||
Subordinate voting shares (in Shares) | shares | 1,781,308 | 1,781,308 | ||||||||||||||||||||||||||||||||
Warrant expiry term | Apr. 09, 2025 | |||||||||||||||||||||||||||||||||
Private Placements [Member] | ||||||||||||||||||||||||||||||||||
Share capital (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Subordinate voting per share (in Dollars per share) | $ / shares | $ 3.6 | |||||||||||||||||||||||||||||||||
H.C. Wainwright & Co [Member] | ||||||||||||||||||||||||||||||||||
Share capital (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Subordinate voting per share (in Dollars per share) | $ / shares | $ 5.25 | |||||||||||||||||||||||||||||||||
Ordinary shares [member] | ||||||||||||||||||||||||||||||||||
Share capital (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Subordinate voting shares (in Shares) | shares | 1,864,162 | |||||||||||||||||||||||||||||||||
CEO [Member] | ||||||||||||||||||||||||||||||||||
Share capital (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Subordinate voting shares (in Shares) | shares | 666,666 | |||||||||||||||||||||||||||||||||
H.C. Wainwright & Co [Member] | ||||||||||||||||||||||||||||||||||
Share capital (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Expenses totaling | $ 1,695,460 | $ 1,164,466 | $ 1,978,303 | |||||||||||||||||||||||||||||||
Non-transferable broker warrants (in Shares) | shares | 311,526 | 311,526 | 222,222 | 222,222 | 249,688 | 249,688 | ||||||||||||||||||||||||||||
Fair value | $ 1,121,763 | |||||||||||||||||||||||||||||||||
H.C. Wainwright & Co [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||||||
Share capital (Details) [Line Items] | ||||||||||||||||||||||||||||||||||
Subordinate voting per share (in Dollars per share) | $ / shares | $ 8.025 | $ 6.75 | ||||||||||||||||||||||||||||||||
Voting per share (in Dollars per share) | $ / shares | $ 10.01 |
Warrants (Details) - Schedule o
Warrants (Details) - Schedule of warrants - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Warrants [Abstract] | |||
Number of Warrants, beginning | 783,436 | 36,858 | |
Weighted Average Exercise Price (CAD$), beginning | $ 8.3 | $ 5.25 | |
Number of Warrants, ending | 1,025,816 | 783,436 | 36,858 |
Weighted Average Exercise Price (CAD$), ending | $ 7.81 | $ 8.3 | $ 5.25 |
Number of Warrants, Issued | 242,380 | 783,436 | 36,858 |
Weighted Average Exercise Price (CAD$), Issued | $ 6.25 | $ 8.3 | $ 5.25 |
Expired | (36,858) | ||
Expired | $ 5.25 |
Warrants (Details) - Schedule_2
Warrants (Details) - Schedule of warrants issued and outstanding - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Warrants (Details) - Schedule of warrants issued and outstanding [Line Items] | ||||
Number of Warrants Outstanding | 1,025,816 | 783,436 | 36,858 | |
Exercise Price (CAD$) | $ 7.81 | $ 8.3 | $ 5.25 | |
Weighted Average Contractual Life (years) | 1 year 11 months 8 days | 2 years 8 months 15 days | 10 months 13 days | |
March 16, 2024 One [Member] | ||||
Warrants (Details) - Schedule of warrants issued and outstanding [Line Items] | ||||
Number of Warrants Outstanding | [1] | 249,688 | 249,688 | |
Exercise Price (CAD$) | [1] | $ 10.01 | $ 10.01 | |
Weighted Average Contractual Life (years) | [1] | 1 year 2 months 15 days | 2 years 2 months 15 days | |
Expiry Date | [1] | March 16, 2024(1) | March 16, 2024(1) | |
June 18, 2024 One [Member] | ||||
Warrants (Details) - Schedule of warrants issued and outstanding [Line Items] | ||||
Number of Warrants Outstanding | [1] | 222,222 | 222,222 | |
Exercise Price (CAD$) | [1] | $ 6.75 | $ 6.75 | |
Weighted Average Contractual Life (years) | [1] | 1 year 5 months 19 days | 2 years 5 months 19 days | |
Expiry Date | [1] | June 18, 2024(1) | June 18, 2024(1) | |
April 9, 2025 One [Member] | ||||
Warrants (Details) - Schedule of warrants issued and outstanding [Line Items] | ||||
Number of Warrants Outstanding | [1] | 311,526 | 311,526 | |
Exercise Price (CAD$) | [1] | $ 8.025 | $ 8.025 | |
Weighted Average Contractual Life (years) | [1] | 2 years 3 months 7 days | 3 years 3 months 7 days | |
Expiry Date | [1] | April 9, 2025(1) | April 9, 2025(1) | |
September 9, 2023 One [Member] | ||||
Warrants (Details) - Schedule of warrants issued and outstanding [Line Items] | ||||
Number of Warrants Outstanding | [1] | 242,380 | ||
Exercise Price (CAD$) | [1] | $ 6.25 | ||
Weighted Average Contractual Life (years) | [1] | 2 years 8 months 8 days | ||
Expiry Date | [1] | September 9, 2025(1) | ||
August 14, 2021 One [Member] | ||||
Warrants (Details) - Schedule of warrants issued and outstanding [Line Items] | ||||
Number of Warrants Outstanding | 36,858 | |||
Exercise Price (CAD$) | $ 5.25 | |||
Weighted Average Contractual Life (years) | 10 months 13 days | |||
Expiry Date | August 14, 2021 | |||
[1]Broker warrants. |
Options and restricted share _3
Options and restricted share units (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||
Mar. 09, 2022 $ / shares | Apr. 09, 2021 | Mar. 16, 2021 $ / shares | Jan. 05, 2021 $ / shares shares | Jun. 22, 2021 $ / shares shares | Jun. 18, 2021 | May 17, 2021 $ / shares shares | Mar. 26, 2021 $ / shares shares | Mar. 16, 2021 | Feb. 24, 2021 $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Options and restricted share units (Details) [Line Items] | ||||||||||||||
Exercise price | $ / shares | $ 3.75 | $ 4.2 | $ 7.35 | $ 7.47 | $ 13.92 | $ 8.88 | ||||||||
Aggregate of common shares (in Shares) | shares | 550,164 | 260,000 | 430,000 | 533,333 | 50,000 | |||||||||
Exercise price per share | (per share) | $ 0.0001 | $ 9.42 | $ 3.75 | $ 4.2 | $ 7.35 | $ 7.47 | $ 13.92 | 6.25 | ||||||
Share price | $ / shares | $ 2.76 | $ 4.02 | $ 7.86 | $ 6.87 | $ 13.92 | $ 3.78 | ||||||||
Stock options on date of grant (in Shares) | shares | 550,164 | 260,000 | 430,000 | 533,333 | 50,000 | |||||||||
Estimated price | $ / shares | $ 3.03 | $ 3.06 | $ 6.09 | $ 7.47 | $ 12.78 | |||||||||
Expected dividend yield | 0% | 0% | 0% | 0% | 0% | |||||||||
Expected volatility | 143% | 155% | 105% | 105% | 155% | 235% | 155% | |||||||
Risk free interest rate | 0.77% | 0.39% | 0.95% | 0.63% | 0.95% | 0.90% | 0.53% | 0.73% | ||||||
Share based compensation expense (in Dollars) | $ | $ 7,804,271 | $ 1,247,551 | ||||||||||||
Granted shares (in Shares) | shares | 1,449,250 | |||||||||||||
Grant date fair value of the RSUs (in Dollars) | $ | $ 5,725,262 | |||||||||||||
Stock options [Member] | ||||||||||||||
Options and restricted share units (Details) [Line Items] | ||||||||||||||
Issued and outstanding shares percentage | 10% | |||||||||||||
Share based compensation expense (in Dollars) | $ | $ 3,296,238 |
Options and restricted share _4
Options and restricted share units (Details) - Schedule of continuity of stock options - $ / shares | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Schedule of Continuity of Stock Options [Abstract] | |||||
Number of Stock Options, Beginning balance | 2,345,165 | 625,000 | |||
Weighted Average Exercise Price (CAD$), Beginning balance (in Dollars per share) | $ 5.28 | $ 2.88 | |||
Number of RSUs, Beginning balance | |||||
Number of Stock Options, Beginning balance | 1,191,834 | 2,345,165 | 625,000 | ||
Weighted Average Exercise Price (CAD$), Beginning balance (in Dollars per share) | $ 5.11 | $ 5.28 | $ 2.88 | ||
Number of RSUs, Beginning balance | 1,439,250 | ||||
Number of Stock Options, Granted | 1,823,497 | [1],[2],[3],[4],[5] | 625,000 | ||
Weighted Average Exercise Price, Granted (in Dollars per share) | $ 6.03 | [1],[2],[3],[4],[5] | $ 2.88 | ||
Number of RSUs, Granted | 1,449,250 | ||||
Number of Stock Options, Exercised | [6] | (75,000) | |||
Weighted Average Exercise Price, Exercised (in Dollars per share) | [6] | $ 3.17 | |||
Number of Stock Options, Expired / cancelled | (1,153,331) | (28,332) | |||
Weighted Average Exercise Price (CAD$), Expired / cancelled (in Dollars per share) | $ 5.46 | $ 6.09 | |||
Number of RSUs, cancelled | (10,000) | ||||
[1]On February 24, 2021, the Company granted stock options to consultants of the Company to acquire an aggregate of 50,000 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$13.92 and expire on February 24, 2026. The stock options vested immediately. A value of CAD$12.78 per option was estimated for the 50,000 stock options on the date of grant with the following assumptions and inputs: share price of CAD$13.92; exercise price of CAD$13.92; expected dividend yield of 0%; expected volatility of 155% which is based on comparable companies; risk-free interest rate of 0.73%; and an expected average life of five years.[2]On January 5, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 550,164 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$3.75 and expire on January 5, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$2.76 per option was estimated for the 550,164 stock options on the date of grant with the following assumptions and inputs: share price of CAD$3.03; exercise price of CAD$3.75; expected dividend yield of 0%; expected volatility of 155% which is based on comparable companies; risk-free interest rate of 0.39%; and an expected average life of five years.[3]On June 22, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 260,000 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$4.20 and expire on June 22, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$3.06 per option was estimated for the 260,000 stock options on the date of grant with the following assumptions and inputs: share price of CAD$4.02; exercise price of CAD$4.20; expected dividend yield of 0%; expected volatility of 105% which is based on comparable companies; risk-free interest rate of 0.95%; and an expected average life of five years.[4]On March 26, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 533,333 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$7.47 and expire on March 25, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$6.87 per option was estimated for the 533,333 stock options on the date of grant with the following assumptions and inputs: share price of CAD$7.47; exercise price of CAD$7.47; expected dividend yield of 0%; expected volatility of 155% which is based on comparable companies; risk-free interest rate of 0.90%; and an expected average life of five years.[5]On May 17, 2021, the Company granted stock options to directors, officers, employees and consultants of the Company to acquire an aggregate of 430,000 subordinate voting shares. Each stock option is exercisable into a subordinate voting share at a price of CAD$7.35 and expire on May 17, 2026. The stock options vest fully on the six-month anniversary of the date of grant. A value of CAD$6.09 per option was estimated for the 430,000 stock options on the date of grant with the following assumptions and inputs: share price of CAD$7.86; exercise price of CAD$7.35; expected dividend yield of 0%; expected volatility of 105% which is based on comparable companies; risk-free interest rate of 0.95%; and an expected average life of five years.[6]The market price on the date of exercise was CAD$8.88. |
Options and restricted share _5
Options and restricted share units (Details) - Schedule of stock options issued and outstanding - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Options and restricted share units (Details) - Schedule of stock options issued and outstanding [Line Items] | |||
Exercise Price (CAD$) (in Dollars per share and Dollars per share) | $ 5.11 | $ 5.28 | $ 0.96 |
Weighted Average Remaining Contractual Life (years) | 2 years 10 months 2 days | 4 years 11 months 15 days | 4 years 4 months 17 days |
Number of Options Outstanding | 1,191,834 | 2,345,165 | 625,000 |
Number of Options Vested (exercisable) | 1,191,834 | 2,345,165 | 625,000 |
Number of Options Unvested | |||
February 14, 2025 [Member] | |||
Options and restricted share units (Details) - Schedule of stock options issued and outstanding [Line Items] | |||
Exercise Price (CAD$) (in Dollars per share and Dollars per share) | $ 2.88 | $ 2.88 | $ 0.96 |
Weighted Average Remaining Contractual Life (years) | 2 years 1 month 17 days | 3 years 1 month 17 days | 4 years 4 months 17 days |
Number of Options Outstanding | 408,334 | 575,000 | 625,000 |
Number of Options Vested (exercisable) | 408,334 | 575,000 | 625,000 |
Number of Options Unvested | |||
January 5, 2026 [Member] | |||
Options and restricted share units (Details) - Schedule of stock options issued and outstanding [Line Items] | |||
Exercise Price (CAD$) (in Dollars per share and Dollars per share) | $ 3.75 | $ 3.75 | |
Weighted Average Remaining Contractual Life (years) | 3 years 7 days | 4 years 7 days | |
Number of Options Outstanding | 258,498 | 525,164 | |
Number of Options Vested (exercisable) | 258,498 | 525,164 | |
Number of Options Unvested | |||
February 24, 2026 [Member] | |||
Options and restricted share units (Details) - Schedule of stock options issued and outstanding [Line Items] | |||
Exercise Price (CAD$) (in Dollars per share and Dollars per share) | $ 13.92 | $ 13.92 | |
Weighted Average Remaining Contractual Life (years) | 3 years 1 month 28 days | 4 years 1 month 24 days | |
Number of Options Outstanding | 50,000 | 50,000 | |
Number of Options Vested (exercisable) | 50,000 | 50,000 | |
Number of Options Unvested | |||
March 25, 2026 [Member] | |||
Options and restricted share units (Details) - Schedule of stock options issued and outstanding [Line Items] | |||
Exercise Price (CAD$) (in Dollars per share and Dollars per share) | $ 7.47 | $ 7.47 | |
Weighted Average Remaining Contractual Life (years) | 3 years 2 months 23 days | 4 years 2 months 23 days | |
Number of Options Outstanding | 233,334 | 525,000 | |
Number of Options Vested (exercisable) | 233,334 | 525,000 | |
Number of Options Unvested | |||
May 17, 2026 [Member] | |||
Options and restricted share units (Details) - Schedule of stock options issued and outstanding [Line Items] | |||
Exercise Price (CAD$) (in Dollars per share and Dollars per share) | $ 7.35 | $ 7.35 | |
Weighted Average Remaining Contractual Life (years) | 3 years 4 months 17 days | 4 years 4 months 17 days | |
Number of Options Outstanding | 155,000 | 421,667 | |
Number of Options Vested (exercisable) | 155,000 | 421,667 | |
Number of Options Unvested | |||
June 22, 2026 [Member] | |||
Options and restricted share units (Details) - Schedule of stock options issued and outstanding [Line Items] | |||
Exercise Price (CAD$) (in Dollars per share and Dollars per share) | $ 4.2 | $ 4.2 | |
Weighted Average Remaining Contractual Life (years) | 3 years 5 months 23 days | 4 years 5 months 23 days | |
Number of Options Outstanding | 86,668 | 248,334 | |
Number of Options Vested (exercisable) | 86,668 | 248,334 | |
Number of Options Unvested |
Income (loss) per share (Detail
Income (loss) per share (Details) - Schedule of income (loss) per share - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of income (loss) per share [Abstract] | |||
Net income (loss) for the year | $ 4,329,342 | $ (3,132,693) | $ (5,190,713) |
Net income (loss) per share - basic | $ 0.16 | $ (0.14) | $ (0.44) |
Net income (loss) per share - diluted | $ 0.16 | $ (0.14) | $ (0.44) |
Weighted average number of shares outstanding - basic | 27,227,284 | 21,781,806 | 11,715,524 |
Weighted average number of shares outstanding - diluted | 27,227,284 | 21,781,806 | 11,715,524 |
Related Party Transactions (Det
Related Party Transactions (Details) - Schedule of remuneration of key management personnel - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of Remuneration of Key Management Personnel [Abstract] | ||||
Professional fees | [1] | $ 307,534 | $ 91,249 | $ 40,491 |
Salaries | [1] | 833,717 | 144,231 | |
Share based compensation | [2] | 3,092,012 | 6,016,173 | 1,047,943 |
Total | $ 4,233,263 | $ 6,251,653 | $ 1,088,434 | |
[1] Represents the professional fees and salaries paid to officers and directors. Represents the share based compensation for officers and directors. |
Cash flow supplemental inform_3
Cash flow supplemental information (Details) - Schedule of cash flow supplemental information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Digital currencies items | |||
Digital currencies mined | $ (24,190,060) | $ (24,952,344) | $ (3,553,362) |
Acquisition of digital currencies | (3,932,000) | ||
Miner lease and hosting | 9,768,179 | 3,469,287 | |
Loss on digital currency option calls | 1,950,000 | ||
Services paid in digital currencies | 739,024 | ||
Loss (gain) on sale of digital currencies | 11,574,330 | (290,948) | (62,799) |
Interest paid in digital currencies | 216,329 | ||
Digital currencies traded for cash | 16,016,280 | ||
Loss on revaluation of digital currencies | 3,386,890 | ||
Total | 15,528,972 | (21,774,005) | (3,616,161) |
Working capital items | |||
Amounts receivable and prepaid expenses | 574,129 | (1,604,703) | (275,294) |
Accounts payable and accrued liabilities | 72,325 | 842,584 | 761,560 |
Income tax payable | (550,000) | ||
Deposit payable | (1,277,500) | 1,788,500 | |
Total | $ (1,181,046) | $ 1,026,381 | $ 486,266 |
Additional information on the_3
Additional information on the nature of comprehensive income (loss) components (Details) - Schedule of additional information on the nature of comprehensive loss components - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses for employee benefits | |||
Operating and maintenance costs | $ 444,400 | $ 528,658 | $ 182,628 |
Professional fees | 307,534 | 91,249 | 40,491 |
Share based compensation | 3,296,238 | 7,804,271 | 1,247,551 |
Expenses for employee benefits | 4,048,172 | 8,424,178 | 1,460,670 |
Net financial expenses | |||
Interest on loans | 238,204 | 96,134 | 41,992 |
Interest on lease liabilities | 16,074 | 236,680 | 216,435 |
Net financial expenses | $ 254,278 | $ 332,814 | $ 258,427 |
Segmented Reporting (Details)
Segmented Reporting (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Segmented Reporting [Abstract] | |
Number of operating segment | 1 |
Segmented Reporting (Details) -
Segmented Reporting (Details) - Schedule of geographic segmentation - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Segmented Reporting (Details) - Schedule of geographic segmentation [Line Items] | |||
Current assets | $ 6,129,853 | $ 36,216,005 | $ 4,693,466 |
Non-current assets | 46,469,708 | 43,810,870 | 11,826,135 |
Total assets | 52,599,561 | 80,026,875 | 16,519,601 |
Canada [Member] | |||
Segmented Reporting (Details) - Schedule of geographic segmentation [Line Items] | |||
Current assets | 29,372 | 179,396 | |
Non-current assets | 1,346,904 | 1,342,281 | |
Total assets | 29,372 | 1,526,300 | 1,342,281 |
United States [Member] | |||
Segmented Reporting (Details) - Schedule of geographic segmentation [Line Items] | |||
Current assets | 6,100,481 | 36,036,609 | 4,693,466 |
Non-current assets | 46,469,708 | 42,463,966 | 10,483,854 |
Total assets | $ 52,570,189 | $ 78,500,575 | $ 15,177,320 |
Financial instruments and ris_3
Financial instruments and risk management (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Nature and Extent of Risks Arising From Financial Instruments Text Block [Abstract] | |||
Other variables percentage | 10% | ||
Value of asset | $ 280,066 | $ 3,055,157 | $ 450,804 |
Financial instruments and ris_4
Financial instruments and risk management (Details) - Schedule of corporation’s significant financial liabilities - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of corporation’s significant financial liabilities [Abstract] | |||
Accounts payable and accrued liabilities | $ 2,345,175 | $ 2,272,850 | $ 920,914 |
Less than 1 year [Member] | |||
Schedule of corporation’s significant financial liabilities [Abstract] | |||
Accounts payable and accrued liabilities | 2,345,175 | 2,272,850 | 920,914 |
Loan payable | 2,146,231 | ||
Amount owing to Northern Data | 322,099 | 2,940,412 | |
Deposit payable | |||
Lease liabilities | 146,880 | ||
Mortgage payable | 534,000 | ||
Total | 3,348,154 | 5,213,262 | 3,067,145 |
1-3 years [Member] | |||
Schedule of corporation’s significant financial liabilities [Abstract] | |||
Accounts payable and accrued liabilities | |||
Loan payable | 570,933 | ||
Amount owing to Northern Data | |||
Deposit payable | 511,000 | 1,788,500 | |
Lease liabilities | 307,111 | ||
Mortgage payable | 400,500 | ||
Total | 1,218,611 | 1,788,500 | 570,933 |
4-5 years [Member] | |||
Schedule of corporation’s significant financial liabilities [Abstract] | |||
Accounts payable and accrued liabilities | |||
Loan payable | |||
Amount owing to Northern Data | |||
Deposit payable | |||
Lease liabilities | 214,524 | ||
Mortgage payable | |||
Total | 214,524 | ||
More than 5 years [Member] | |||
Schedule of corporation’s significant financial liabilities [Abstract] | |||
Accounts payable and accrued liabilities | |||
Loan payable | |||
Amount owing to Northern Data | |||
Deposit payable | |||
Lease liabilities | |||
Mortgage payable | |||
Total | |||
Total [Member] | |||
Schedule of corporation’s significant financial liabilities [Abstract] | |||
Accounts payable and accrued liabilities | 2,345,175 | 2,272,850 | 920,914 |
Loan payable | 2,717,164 | ||
Amount owing to Northern Data | 322,099 | 2,940,412 | |
Deposit payable | 511,000 | 1,788,500 | |
Lease liabilities | 668,515 | ||
Mortgage payable | 934,500 | ||
Total | 4,781,289 | 7,001,762 | 3,638,078 |
Carrying Value [Member] | |||
Schedule of corporation’s significant financial liabilities [Abstract] | |||
Accounts payable and accrued liabilities | 2,345,175 | 2,272,850 | 920,914 |
Loan payable | 2,543,083 | ||
Amount owing to Northern Data | 322,099 | 2,940,412 | |
Deposit payable | 511,000 | 1,788,500 | |
Lease liabilities | 668,515 | ||
Mortgage payable | 934,500 | ||
Total | $ 4,781,289 | $ 7,001,762 | $ 3,463,997 |
Income taxes (Details) - Schedu
Income taxes (Details) - Schedule of provision for income taxes - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Provision For Income Taxes [Abstract] | |||
Income before income taxes | $ 2,791,875 | $ (832,074) | $ (5,826,526) |
Combined statutory income tax rate | 26.14% | 27% | 27% |
Income tax benefit at the statutory tax rate | $ 729,657 | $ (224,660) | $ (1,573,162) |
Non-deductible expenses | 15,626 | 273,784 | 119,543 |
Revaluation of warrant liabilities | (8,365,980) | (418,774) | |
Foreign exchange gain | (593,325) | ||
Share based compensation | 1,304,058 | 336,839 | |
Tax asset recognized | (71,801) | ||
Impairment of goodwill | 329,506 | ||
Effect of lower tax rate of subsidiary | (103,388) | ||
Temporary difference unrecognized | 532,589 | ||
Other | 59,931 | 126,874 | 1,497 |
Change in unrecognized deferred tax asset | 6,287,118 | 1,342,725 | 18,682 |
Deferred Income tax (recovery) provision | (1,537,467) | 2,300,619 | (635,813) |
Current income taxes in the income statement | 127,340 | ||
Composition of deferred income taxes in the income statement | |||
Inception and reversal of temporary differences | (7,824,585) | 2,089,839 | (1,168,402) |
Prior period adjustment | 83,440 | ||
Change in unrecognized deferred tax asset | 6,287,118 | 532,589 | |
Deferred Income tax (recovery) provision | (1,537,467) | 2,173,279 | (635,813) |
Total income tax expense (recovery) for the year | $ (1,537,467) | $ 2,300,619 | $ (635,813) |
Income taxes (Details) - Sche_2
Income taxes (Details) - Schedule of deferred income tax - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes (Details) - Schedule of deferred income tax [Line Items] | |||
Beginning balance | $ (2,514,743) | $ (65,638) | |
Profit or loss | 1,537,467 | (2,174,598) | $ 635,813 |
Other Comprehensive Income | 1,047,758 | (346,308) | (701,451) |
Equity | (70,482) | 71,801 | |
Ending balance | (2,514,743) | (65,638) | |
Property, plant and equipment [Member] | |||
Income taxes (Details) - Schedule of deferred income tax [Line Items] | |||
Beginning balance | (1,781,767) | (755,431) | |
Profit or loss | (3,249,116) | (1,026,336) | (755,431) |
Other Comprehensive Income | |||
Equity | |||
Ending balance | (5,030,883) | (1,781,767) | (755,431) |
Right-of-use assets [Member] | |||
Income taxes (Details) - Schedule of deferred income tax [Line Items] | |||
Beginning balance | (543,242) | (630,826) | |
Profit or loss | (120,181) | 87,584 | (630,826) |
Other Comprehensive Income | |||
Equity | |||
Ending balance | (663,423) | (543,242) | (630,826) |
Digital Currencies [Member] | |||
Income taxes (Details) - Schedule of deferred income tax [Line Items] | |||
Beginning balance | (1,047,759) | (701,451) | |
Profit or loss | 1,186,091 | ||
Other Comprehensive Income | 1,047,758 | (346,308) | (701,451) |
Equity | |||
Ending balance | 1,186,090 | (1,047,759) | (701,451) |
Lease liabilities [member] | |||
Income taxes (Details) - Schedule of deferred income tax [Line Items] | |||
Beginning balance | 665,439 | ||
Profit or loss | 143,082 | (665,439) | 665,439 |
Other Comprehensive Income | |||
Equity | |||
Ending balance | 143,082 | 665,439 | |
Stock based compensation [Member] | |||
Income taxes (Details) - Schedule of deferred income tax [Line Items] | |||
Beginning balance | 709,474 | ||
Profit or loss | (638,992) | 637,673 | |
Other Comprehensive Income | |||
Equity | (70,482) | 71,801 | |
Ending balance | 709,474 | ||
Non-capital losses [Member] | |||
Income taxes (Details) - Schedule of deferred income tax [Line Items] | |||
Beginning balance | 148,551 | 1,356,631 | |
Profit or loss | 4,216,583 | (1,208,080) | 1,356,631 |
Other Comprehensive Income | |||
Equity | |||
Ending balance | 4,365,134 | 148,551 | $ 1,356,631 |
Non-capital losses - Canada [Member] | |||
Income taxes (Details) - Schedule of deferred income tax [Line Items] | |||
Beginning balance | |||
Profit or loss | 593,325 | ||
Other Comprehensive Income | |||
Equity | |||
Ending balance | 593,325 | ||
Unrealized foreign exchange gain - Canada [Member] | |||
Income taxes (Details) - Schedule of deferred income tax [Line Items] | |||
Beginning balance | |||
Profit or loss | (593,325) | ||
Other Comprehensive Income | |||
Equity | |||
Ending balance | $ (593,325) |
Income taxes (Details) - Sche_3
Income taxes (Details) - Schedule of deferred tax assets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income taxes (Details) - Schedule of deferred tax assets [Line Items] | |||
Total | $ 33,703,711 | $ 2,889,264 | $ 27,717,535 |
Share issue costs [Member] | |||
Income taxes (Details) - Schedule of deferred tax assets [Line Items] | |||
Total | 6,042,213 | 529,320 | 758,041 |
Stock based compensation [Member] | |||
Income taxes (Details) - Schedule of deferred tax assets [Line Items] | |||
Total | 4,307,117 | ||
Property, plant and equipment [Member] | |||
Income taxes (Details) - Schedule of deferred tax assets [Line Items] | |||
Total | 26,402,452 | ||
Non-capital losses - USA [Member] | |||
Income taxes (Details) - Schedule of deferred tax assets [Line Items] | |||
Total | 21,425,219 | ||
Non-capital losses - Canada [Member] | |||
Income taxes (Details) - Schedule of deferred tax assets [Line Items] | |||
Total | $ 1,929,162 | $ 2,359,944 | $ 557,042 |
Restatement (Details) - Schedul
Restatement (Details) - Schedule of consolidated statement of financial position | Dec. 31, 2021 USD ($) |
As reported [Member] | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |
Warrant liabilities | |
Total liabilities | |
Shareholders’ equity | |
Share capital | 54,863,819 |
Contributed surplus | 17,358,982 |
Cumulative translation adjustment | (266,730) |
Digital currency revaluation reserve | 3,706,624 |
Deficit | (5,457,926) |
Total shareholders’ equity | 70,204,769 |
Adjustment [Member] | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |
Warrant liabilities | 31,943,365 |
Total liabilities | 31,943,365 |
Shareholders’ equity | |
Share capital | (23,440,724) |
Contributed surplus | (5,514,401) |
Cumulative translation adjustment | 433,798 |
Digital currency revaluation reserve | |
Deficit | (3,422,038) |
Total shareholders’ equity | (31,943,365) |
Restated [Member] | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |
Warrant liabilities | 31,943,365 |
Total liabilities | 31,943,365 |
Shareholders’ equity | |
Share capital | 31,423,095 |
Contributed surplus | 11,844,581 |
Cumulative translation adjustment | 167,068 |
Digital currency revaluation reserve | 3,706,624 |
Deficit | (8,879,964) |
Total shareholders’ equity | $ 38,261,404 |
Restatement (Details) - Sched_2
Restatement (Details) - Schedule of consolidated statement of comprehensive income | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
As reported [Member] | |
Condensed Statement of Income Captions [Line Items] | |
Operating income | $ 2,922,778 |
Revaluation of warrant liabilities | |
Share issuance costs | |
Net income (loss) before income taxes | 2,589,964 |
Net income (loss) for the year | 289,345 |
Other comprehensive income (loss) | |
Items that will be reclassified to net income Foreign currency translation adjustment | (384,892) |
Items that will not be reclassified to net income Revaluation of digital currencies, net of tax | 1,724,123 |
Total comprehensive income (loss) for the year | 1,628,576 |
Adjustment [Member] | |
Condensed Statement of Income Captions [Line Items] | |
Operating income | |
Revaluation of warrant liabilities | 1,551,013 |
Share issuance costs | (4,973,051) |
Net income (loss) before income taxes | (3,422,038) |
Net income (loss) for the year | (3,422,038) |
Other comprehensive income (loss) | |
Items that will be reclassified to net income Foreign currency translation adjustment | 433,798 |
Items that will not be reclassified to net income Revaluation of digital currencies, net of tax | |
Total comprehensive income (loss) for the year | (2,988,240) |
Restated [Member] | |
Condensed Statement of Income Captions [Line Items] | |
Operating income | 2,922,778 |
Revaluation of warrant liabilities | 1,551,013 |
Share issuance costs | (4,973,051) |
Net income (loss) before income taxes | (832,074) |
Net income (loss) for the year | (3,132,693) |
Other comprehensive income (loss) | |
Items that will be reclassified to net income Foreign currency translation adjustment | 48,906 |
Items that will not be reclassified to net income Revaluation of digital currencies, net of tax | 1,724,123 |
Total comprehensive income (loss) for the year | $ (1,359,664) |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 08, 2023 USD ($) |
Subsequent Event [Member] | |
Subsequent Events (Details) [Line Items] | |
Acquisition of power plant | $ 4,550,000 |