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RIOT BLOCKCHAIN, INC.

(RIOT)
  Report
Delayed Nasdaq  -  04:00 2022-12-06 pm EST
4.380 USD   -6.01%
12/06Top Cryptocurrencies Trade Mixed; Bitcoin Close to $17,000
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12/05Top Cryptocurrencies Slip; Bitcoin Drops Below $17,000
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12/05Riot Blockchain Says Bitcoin Production Rose 12% Year Over Year in November
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RIOT BLOCKCHAIN, INC. : Other Events, Financial Statements and Exhibits (form 8-K)

09/23/2022 | 06:47am EST

Item 8.01 - Other Events.

Riot Blockchain, Inc. (the "Company") is supplementing its disclosures regarding the material weaknesses identified by management, as set forth under Part I - Item 4. "Controls and Procedures" of its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2022, and June 30, 2022, as filed on May 10, 2022, and August 15, 2022, respectively, (the "Quarterly Reports"), with the omitted material weakness set forth below. Due to administrative oversight, the material weakness below, which was previously disclosed under Part II - Item 9A. "Controls and Procedures" of the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as filed on March 16, 2022, was inadvertently omitted from each of the Quarterly Reports. Accordingly, the Company is filing this current report on Form 8-K to correct this omission, and the below material weakness should be read in conjunction with the other material weaknesses set forth in the Quarterly Reports.

Except as presented in this filing, the Company is not updating any other information in the Quarterly Reports.



Omitted Material Weakness:


The Company did not properly design and implement controls to ensure that certain inputs and assumptions utilized in the valuation of intangible assets identified in its accounting for business combinations were reasonable in the circumstances. Such deficiency also resulted in material adjustments required to the Company's provision for income taxes.

The Company's disclosures under Part I - Item 4. "Controls and Procedures" of its Quarterly Report for the quarter ended June 30, 2022, is hereby presented as follows, in order to illustrate the above described correction:

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer (principal executive officer) and our Chief Financial Officer (principal financial officer), has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2022 to ensure that the information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that information required to be disclosed in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures. Based on this evaluation, our management concluded that our disclosure controls and procedures were not effective at the reasonable assurance level as of June 30, 2022, due to the following material weaknesses:

1) The Company did not design and/or implement user access controls to ensure

    appropriate segregation of duties that would adequately restrict user and
    privileged access to the financially relevant systems and data to the
    appropriate Company personnel.



2) The Company did not design and implement program change management controls

    for certain financially relevant systems to ensure that IT program and data
    changes affecting the Company's (i) financial IT applications, (ii) digital
    currency cold storage wallets and 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.



3) The Company did not properly design or implement controls to ensure that data

    received from third parties is complete and accurate. Such data is relied on
    by the Company in determining amounts pertaining to revenue - mining and
    cryptocurrency assets held is 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.












4) The Company did not properly design and implement controls to ensure that

    certain inputs and assumptions utilized in the valuation of intangible assets
    identified in its accounting for business combinations were reasonable in the
    circumstances. Such deficiency also resulted in material adjustments required
    to the Company's provision for income taxes.



5) During testing of procedures during 2021, the Company's subsidiary, Whinstone,

    did identify that there were material weaknesses over internal controls at
    Whinstone. The weaknesses noted that Whinstone did not properly document the
    design of its internal controls; did not design and implement procedures to
    ensure proper segregation of duties and all transactions are entered and
    disclosed timely and accurately in accordance with GAAP, which includes
    transactions with related parties.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number Description

104            Cover Page Interactive Data File (embedded within the Inline XBRL
               document).



















                                S I G N A T U R E


Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



  RIOT BLOCKCHAIN, INC.


  By: /s/ Jeffrey G. McGonegal
      Name: Jeffrey G. McGonegal
      Title: Chief Financial Officer



Date: September 23, 2022

© Edgar Online, source Glimpses

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Financials (USD)
Sales 2022 261 M - -
Net income 2022 -392 M - -
Net Debt 2022 - - -
P/E ratio 2022 -1,56x
Yield 2022 -
Capitalization 733 M 733 M -
Capi. / Sales 2022 2,81x
Capi. / Sales 2023 1,71x
Nbr of Employees 335
Free-Float 92,4%
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Number of Analysts 9
Last Close Price 4,38 $
Average target price 10,94 $
Spread / Average Target 150%
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Managers and Directors
Jason Les Chief Executive Officer & Director
Colin M. Yee Chief Financial Officer
Benjamin Yi Executive Chairman
Hubert Romeo Marleau Lead Independent Director
Hannah Cho Independent Director
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