What changed in this filing

/stocks — the workspaceLOADING

Item 4. Controls and Procedures

2023-08-08 compared with 2023-05-10 · 29 added, 21 removed, 42 unchanged (54% of the section changed)

8 unchanged sentences

Based on this evaluation, our management concluded that our disclosure controls and procedures were not effective at the reasonable assurance

level as of March 31, 2023 due to the following material weaknesses.

level as of June 30, 2023 due to the following material weaknesses.

Weaknesses in Internal Control and Plan for Remediation

1 unchanged sentence

These material weaknesses

material weakness related to the application and interpretation of generally accepted accounting principles (“GAAP”)

that resulted in errors in four specific accounting areas, including consolidation, impairment of digital assets, disposal of property

and equipment and principal versus agent considerations in revenue recognition.

material weakness related to the application and interpretation of generally accepted accounting

principles (“GAAP”) that resulted in errors in four specific accounting areas,

including consolidation, impairment of digital assets, disposal of property and equipment

and principal versus agent considerations in revenue recognition, and accounting for and

reporting of digital assets.

material weakness related to the design and implementation of user access controls to ensure

appropriate segregation of duties, or program change management controls for certain financially relevant systems impacting the Company’s

processes around revenue recognition and digital assets to ensure that IT program and data changes affecting the Company’s

(i) financial IT applications, (ii) digital currency mining equipment, and (iii) underlying accounting records, are identified, tested,

authorized and implemented appropriately to validate that data produced by its relevant IT system(s) were complete and accurate.

Automated process-level controls and manual controls that are dependent upon the information derived from such financially relevant

systems were also determined to be ineffective as a result of such deficiency.

appropriate segregation of duties, or program change management controls for certain financially

relevant systems impacting the Company’s processes around revenue recognition and digital

assets to ensure that IT program and data changes affecting the Company’s (i) financial

IT applications, (ii) digital currency mining equipment, and (iii) underlying accounting

records, are identified, tested, authorized and implemented appropriately to validate that

data produced by its relevant IT system(s) were complete and accurate.

Automated process-level

controls and manual controls that are dependent upon the information derived from such financially

relevant systems were also determined to be ineffective as a result of such deficiency.

material weakness related to the ineffective design of a key

8 unchanged sentences

additional opportunities for remediation on an ongoing basis:

the process we started during 2022 of adding to our internal resources to enhance our capabilities in the areas of technical accounting,

financial reporting, and internal controls, including a full time person dedicated to internal controls

the process started during 2022 of utilizing external third-party technical accounting resources to supplement our ability to interpret

and apply GAAP as we continue to build our internal capabilities in these areas

to utilize external third-party audit and SOX 404 implementation firms to enable the Company to improve the Company’s controls

related to our material weaknesses.

to evaluate existing processes and implement new processes and controls where necessary in connection with remediating our material

weaknesses, such that these controls are designed,

implemented, and operating effectively

the process we started during 2022 of adding to our internal resources to enhance our capabilities

in the areas of technical accounting, financial reporting, and internal controls, including

a full time person dedicated to internal controls

the process started during 2022 of utilizing external third-party technical accounting resources

to supplement our ability to interpret and apply GAAP as we continue to build our internal

capabilities in these areas

to utilize external third-party audit and SOX 404 implementation firms to enable the Company

to improve the Company’s controls related to our material weaknesses.

to evaluate existing processes and implement new processes and controls where necessary in

connection with remediating our material weaknesses, such

that these controls are designed, implemented, and operating effectively

recognize that the material weaknesses in our internal control over financial reporting will not be considered remediated until the remediated

14 unchanged sentences

in Internal Controls.

have been no changes in our internal control over financial reporting during the quarter ended March 31, 2023 that have materially

affected, or are reasonably likely to materially affect, our internal controls over financial reporting other than the ongoing remediation efforts undertaken by management.

have been no changes in our internal control over financial reporting during the the six months ended June 30, 2023 that have materially

affected, or are reasonably likely to materially affect, our internal controls over financial reporting other than the ongoing remediation

efforts undertaken by management.

have engaged accounting consultants to aid us in remediating the issues identified in our Form 10-K for 2022 to ensure consistent and

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 4. Controls and Procedures