Riot’s Annual Report Displays a $500 Million Net Loss; Delayed 10-K Financial Report Filing
- In its 2022 yearly financial report, Riot Platform Inc. reported a net loss of $509.6 million.
- Riot announced that it would be late with the 10-K Annual Return.
On March 2, the cryptocurrency mining company Riot Platforms released its 2022 financial results and announced that it would postpone submitting its 10-K to the authorities.
In its annual Report, published on March 2, the business reportedly incurred sizable non-cash impairment charges. Accounting costs not covered by cash payments are known as non-cash impairment charges. They consist of goodwill costs, stock depreciation, and amortization.
The non-cash impairment payments related to goodwill, bitcoin, and miner impairments in the case of Riot had the most significant financial effect, bringing in about $538.6 million. In addition, depreciation and amortization related to bitcoin accounted for $108 million, while non-cash stock-based pay resulted in a loss of $24.5 million.
ESS Metron and the Whinston facility were acquired, which resulted in a $335.6 million goodwill impairment loss. In terms of developing and manufacturing highly engineered electrical products, ESS Metron is an industry leader. As a crucial supplier, Riot’s acquisition of it supports the purchase of Whinston’s facility.
Riot generated less money from Bitcoin mining overall, despite having more significant overall revenue. After generating $184.4 million in mining income in 2021, it only generated $156.9 million in 2022. Mining more Bitcoin and earning more from engineering and data hosting increased overall income in 2022.
The year 2022 was a “remarkable year of development” for Riot, according to the CEO Jason Les. He continued that the high monthly production of bitcoin was primarily attributed to Riot’s record-breaking hash rate. Les highlighted the company’s “industry-leading financial strength,” supporting its ambitious growth plans for the upcoming year and beyond.
Riot also revealed that it would postpone filing its 10-K Financial Report, as stated in a document the business filed to the American Securities and Exchange Commission on March 2.
The technique currently used to determine Bitcoin impairment charges was found to violate an accounting rule by Riot and its accounting firm. The business advised using the intraday low price of Bitcoin for those estimates. Previously, the business used daily spot prices to determine impairments.
Due to these problems, Riot announced that it would miss the date for submitting its 10-K Annual Report. It anticipates submitting that Report within the customary 15-day grace period.