Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | GREENIDGE GENERATION HOLDINGS INC. |
Entity Central Index Key | 0001844971 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 51,149 | $ 5,052 | $ 11,750 |
Short term investments | 496 | 0 | |
Digital assets | 421 | 254 | 269 |
Accounts receivable | 5,501 | 390 | 10 |
Fuel deposits | 808 | 164 | |
Prepaid expenses | 5,042 | 155 | 96 |
Emissions credits | 1,923 | 559 | |
Miner equipment deposits | 5,959 | 6,337 | |
Emissions and carbon offset credits | 1,816 | 1,923 | |
Total current assets | 64,425 | 7,774 | 19,185 |
LONG-TERM ASSETS: | |||
Property and equipment, net | 121,532 | 56,645 | |
Property and equipment, net | 50,686 | 37,064 | |
Project deposit | 74 | 510 | |
Right-of-use assets, net | 1,369 | 0 | |
Intangible assets | 22,493 | 0 | |
Goodwill | 46,349 | 0 | |
Other assets | 74 | 85 | |
Other long-term assets | 2,143 | 148 | |
Total assets | 258,311 | 64,567 | 56,844 |
CURRENT LIABILITIES: | |||
Accounts payable | 3,368 | 1,745 | 2,339 |
Natural gas payable | 935 | 18 | |
Accrued emissions expense | 1,674 | 2,082 | |
Income taxes payable | 2,082 | 105 | |
Accrued expenses | 9,566 | 946 | 150 |
Accrued interest expense —related party | 0 | 20 | 396 |
Deferred revenue | 272 | 0 | |
Note payable, current portion | 17,994 | 3,273 | 0 |
Notes payable—related party, current portion | 0 | 3,573 | 5,000 |
Lease obligations, current portion | 852 | 0 | |
Total current liabilities | 33,454 | 11,639 | 8,008 |
LONG-TERM LIABILITIES: | |||
Deferred tax liability | 3,959 | 0 | |
Notes payable, net of current portion | 7,369 | 1,364 | 0 |
Lease obligations, net of current portion | 111 | 0 | |
Asset retirement obligations | 2,380 | 2,277 | 2,135 |
Environmental trust liability | 4,994 | 4,927 | 4,697 |
Accrued emissions expense, net of current portion | 0 | 302 | |
Accrued interest expense—related party, net of current portion | 0 | 278 | |
Notes payable—related party, net of current portion | 0 | 7,700 | |
Other long-term liabilities | 242 | 0 | |
Total liabilities | 52,509 | 20,207 | 23,120 |
COMMITMENTS AND CONTINGENCIES (NOTE 11) | |||
STOCKHOLDERS' EQUITY: | |||
Preferred stock | |||
Common stock | 4 | 0 | |
Additional paid-in capital | 233,813 | 0 | |
Members' capital | 0 | 69,276 | 54,074 |
Accumulated deficit | (28,015) | (24,916) | (20,350) |
Total stockholders' equity | 205,802 | 44,360 | 33,724 |
Total liabilities and stockholders' equity | $ 258,311 | $ 64,567 | $ 56,844 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property and equipment, net of accumulated depreciation | $ 14,156 | $ 8,986 | $ 4,422 |
Preferred stock, Par or stated value per share | $ 0.0001 | $ 0.0001 | |
Preferred stock, Shares authorized | 20,000,000 | 0 | |
Preferred stock, Shares issued | 0 | 0 | |
Preferred stock, Shares outstanding | 0 | 0 | |
Common stock, Par or stated value per share | $ 0.0001 | $ 0.0001 | |
Common stock, Shares authorized | 3,000,000,000 | 0 | |
Common stock, Shares issued | 38,667,705 | 0 | |
Common stock, Shares outstanding | 38,667,705 | 0 | |
Members capital, Outstanding units | 0 | 49,978 | 39,978 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations And Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUE: | ||||||
Total revenue | $ 35,754 | $ 6,123 | $ 62,993 | $ 13,937 | $ 20,114 | $ 4,439 |
OPERATING COSTS AND EXPENSES | ||||||
Selling, general, and administrative expenses | 5,446 | 1,493 | 12,017 | 4,131 | 5,581 | 5,833 |
Merger and other costs (Note 4) | 29,847 | 0 | 31,095 | 0 | ||
Depreciation and amortization | 2,667 | 1,064 | 5,531 | 3,227 | 4,564 | 1,679 |
Total operating costs and expenses | 47,619 | 6,629 | 67,689 | 16,039 | ||
Loss from operations | (11,865) | (506) | (4,696) | (2,102) | (2,631) | (7,973) |
OTHER INCOME (EXPENSE), NET: | ||||||
Impairment loss on digital assets | (100) | |||||
Interest expense, net | (1,009) | 0 | (1,377) | 0 | (91) | |
Interest expense—related party | 0 | 0 | (22) | (540) | (573) | (673) |
Gain on sale of digital assets | 18 | 36 | 159 | 11 | 123 | |
Gain (loss) on environmental trust liability | (230) | 241 | ||||
Other (expense) income, net | (29) | 181 | (23) | 165 | 112 | 30 |
Total other (expense) income, net | (1,020) | 217 | (1,263) | (364) | (659) | (502) |
LOSS BEFORE INCOME TAXES | (12,885) | (289) | (5,959) | (2,466) | ||
Benefit for income taxes | (4,989) | 0 | (2,860) | 0 | 0 | 0 |
NET LOSS AND TOTAL COMPREHENSIVE LOSS | $ (7,896) | (289) | $ (3,099) | (2,466) | (3,290) | (8,475) |
Loss per share: | ||||||
Basic | $ (0.28) | $ (0.13) | ||||
Diluted | $ (0.28) | $ (0.13) | ||||
Cryptocurrency Mining [Member] | ||||||
REVENUE: | ||||||
Total revenue | $ 31,156 | 3,043 | $ 54,217 | 8,673 | 13,016 | 410 |
OPERATING COSTS AND EXPENSES | ||||||
Cost of revenue | 5,974 | 1,027 | 11,504 | 2,966 | 4,465 | 94 |
Power and Capacity [Member] | ||||||
REVENUE: | ||||||
Total revenue | 3,077 | 3,080 | 7,255 | 5,264 | 7,098 | 4,029 |
OPERATING COSTS AND EXPENSES | ||||||
Cost of revenue | 2,831 | 3,045 | 6,688 | 5,715 | $ 8,135 | $ 4,806 |
Service and Other | ||||||
REVENUE: | ||||||
Total revenue | 1,521 | 0 | 1,521 | 0 | ||
OPERATING COSTS AND EXPENSES | ||||||
Cost of revenue | $ 854 | $ 0 | $ 854 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Class B [Member] | Preferred Stock | Common Stock | Common StockCommon Class B [Member] | Additional Paid-in Capital | Additional Paid-in CapitalCommon Class B [Member] | Common Units [Member] | Common Units [Member]Common Class B [Member] | Preferred Units [Member] | Preferred Units [Member]Common Class B [Member] | Senior Priority Units [Member] | Senior Priority Units [Member]Common Class B [Member] | Member Units | Member UnitsCommon Class B [Member] | Accumulated Deficit |
Common Units - Beginning Balance (Shares) at Dec. 31, 2018 | 750 | 0 | ||||||||||||||
Preferred Units - Beginning Balance (Shares) at Dec. 31, 2018 | 39,228 | |||||||||||||||
Beginning Balance member capital at Dec. 31, 2018 | $ 39,074 | $ 39,074 | ||||||||||||||
Balance at Beginning of Period at Dec. 31, 2018 | $ 27,199 | $ (11,875) | ||||||||||||||
Proceeds from sale of Greenidge Coin, LLC preferred units (Shares) | 15,000 | |||||||||||||||
Proceeds from sale of Greenidge Coin, LLC preferred units | 15,000 | $ 15,000 | 15,000 | |||||||||||||
Net income (loss) | $ (8,475) | (8,475) | ||||||||||||||
Common Units - Ending Balance (Shares) at Dec. 31, 2019 | 750 | 750 | 0 | |||||||||||||
Preferred Units - Ending Balance (Shares) at Dec. 31, 2019 | 54,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Ending Balance (in units) at Dec. 31, 2019 | 0 | |||||||||||||||
Ending Balance member capital at Dec. 31, 2019 | $ 54,074 | $ 0 | $ 54,074 | $ 0 | 54,074 | |||||||||||
Balance at End of Period (shares) at Dec. 31, 2019 | 0 | 0 | ||||||||||||||
Balance at End of Period at Dec. 31, 2019 | 33,724 | $ 0 | $ 0 | $ 0 | (20,350) | |||||||||||
Net income (loss) | (2,177) | (2,177) | ||||||||||||||
Common Units - Ending Balance (Shares) at Jun. 30, 2020 | 750 | |||||||||||||||
Preferred Units - Ending Balance (Shares) at Jun. 30, 2020 | 54,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Ending Balance (in units) at Jun. 30, 2020 | 0 | |||||||||||||||
Ending Balance member capital at Jun. 30, 2020 | $ 0 | $ 54,074 | $ 0 | 54,074 | ||||||||||||
Balance at End of Period (shares) at Jun. 30, 2020 | 0 | 0 | ||||||||||||||
Balance at End of Period at Jun. 30, 2020 | $ 31,547 | $ 0 | $ 0 | 0 | (22,527) | |||||||||||
Common Units - Beginning Balance (Shares) at Dec. 31, 2019 | 750 | 750 | 0 | |||||||||||||
Preferred Units - Beginning Balance (Shares) at Dec. 31, 2019 | 54,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Beginning Balance (in units) at Dec. 31, 2019 | 0 | |||||||||||||||
Beginning Balance member capital at Dec. 31, 2019 | $ 54,074 | $ 0 | $ 54,074 | $ 0 | 54,074 | |||||||||||
Balance at Beginning of Period (shares) at Dec. 31, 2019 | 0 | 0 | ||||||||||||||
Balance at Beginning of Period at Dec. 31, 2019 | 33,724 | $ 0 | $ 0 | 0 | (20,350) | |||||||||||
Net income (loss) | (2,466) | |||||||||||||||
Common Units - Ending Balance (Shares) at Sep. 30, 2020 | 750 | |||||||||||||||
Preferred Units - Ending Balance (Shares) at Sep. 30, 2020 | 54,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Ending Balance (in units) at Sep. 30, 2020 | 0 | |||||||||||||||
Ending Balance member capital at Sep. 30, 2020 | $ 0 | $ 54,074 | $ 0 | 54,074 | ||||||||||||
Balance at End of Period (shares) at Sep. 30, 2020 | 0 | 0 | ||||||||||||||
Balance at End of Period at Sep. 30, 2020 | $ 31,258 | $ 0 | $ 0 | 0 | (22,816) | |||||||||||
Common Units - Beginning Balance (Shares) at Dec. 31, 2019 | 750 | 750 | 0 | |||||||||||||
Preferred Units - Beginning Balance (Shares) at Dec. 31, 2019 | 54,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Beginning Balance (in units) at Dec. 31, 2019 | 0 | |||||||||||||||
Beginning Balance member capital at Dec. 31, 2019 | $ 54,074 | $ 0 | $ 54,074 | $ 0 | 54,074 | |||||||||||
Balance at Beginning of Period (shares) at Dec. 31, 2019 | 0 | 0 | ||||||||||||||
Balance at Beginning of Period at Dec. 31, 2019 | 33,724 | $ 0 | $ 0 | 0 | (20,350) | |||||||||||
Conversion of notes payable to senior priority units—tranche 1 (Shares) | 10,000 | |||||||||||||||
Conversion of notes payable to senior priority units—tranche 1 | 13,926 | $ 13,926 | 13,926 | |||||||||||||
Deemed distribution of Greenidge Coin, LLC preferred units | $ 1,276 | 1,276 | (1,276) | |||||||||||||
Contribution of GGH Common Units for GGHI Common Stock (Shares) | (15,000) | |||||||||||||||
Contribution of GGH Common Units for GGHI Common Stock | $ (16,276) | $ 16,276 | ||||||||||||||
Net income (loss) | $ (3,290) | (3,290) | ||||||||||||||
Common Units - Ending Balance (Shares) at Dec. 31, 2020 | 750 | 750 | 10,000 | |||||||||||||
Preferred Units - Ending Balance (Shares) at Dec. 31, 2020 | 39,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Ending Balance (in units) at Dec. 31, 2020 | 10,000 | |||||||||||||||
Ending Balance member capital at Dec. 31, 2020 | $ 69,276 | $ 0 | $ 39,074 | $ 30,202 | 69,276 | |||||||||||
Balance at End of Period (shares) at Dec. 31, 2020 | 0 | 0 | ||||||||||||||
Balance at End of Period at Dec. 31, 2020 | 44,360 | $ 0 | $ 0 | 0 | (24,916) | |||||||||||
Common Units - Beginning Balance (Shares) at Jun. 30, 2020 | 750 | |||||||||||||||
Preferred Units - Beginning Balance (Shares) at Jun. 30, 2020 | 54,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Beginning Balance (in units) at Jun. 30, 2020 | 0 | |||||||||||||||
Beginning Balance member capital at Jun. 30, 2020 | $ 0 | $ 54,074 | $ 0 | 54,074 | ||||||||||||
Balance at Beginning of Period (shares) at Jun. 30, 2020 | 0 | 0 | ||||||||||||||
Balance at Beginning of Period at Jun. 30, 2020 | 31,547 | $ 0 | $ 0 | 0 | (22,527) | |||||||||||
Net income (loss) | (289) | (289) | ||||||||||||||
Common Units - Ending Balance (Shares) at Sep. 30, 2020 | 750 | |||||||||||||||
Preferred Units - Ending Balance (Shares) at Sep. 30, 2020 | 54,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Ending Balance (in units) at Sep. 30, 2020 | 0 | |||||||||||||||
Ending Balance member capital at Sep. 30, 2020 | $ 0 | $ 54,074 | $ 0 | 54,074 | ||||||||||||
Balance at End of Period (shares) at Sep. 30, 2020 | 0 | 0 | ||||||||||||||
Balance at End of Period at Sep. 30, 2020 | $ 31,258 | $ 0 | $ 0 | 0 | (22,816) | |||||||||||
Common Units - Beginning Balance (Shares) at Dec. 31, 2020 | 750 | 750 | 10,000 | |||||||||||||
Preferred Units - Beginning Balance (Shares) at Dec. 31, 2020 | 39,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Beginning Balance (in units) at Dec. 31, 2020 | 10,000 | |||||||||||||||
Beginning Balance member capital at Dec. 31, 2020 | $ 69,276 | $ 0 | $ 39,074 | $ 30,202 | 69,276 | |||||||||||
Balance at Beginning of Period (shares) at Dec. 31, 2020 | 0 | 0 | ||||||||||||||
Balance at Beginning of Period at Dec. 31, 2020 | 44,360 | $ 0 | $ 0 | 0 | (24,916) | |||||||||||
Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for Greenidge class B common stock | $ 3,615 | $ 3 | $ 72,888 | $ (39,074) | $ (30,202) | $ (69,276) | ||||||||||
Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for Greenidge class B common stock (shares) | 26,800,300 | (39,228) | (10,000) | |||||||||||||
Contribution of GGH Common Units for Greenidge class B common stock (shares) | 1,199,700 | (750) | ||||||||||||||
Proceeds from issuance of preferred stock, net of stock issuance costs (shares) | 1,620,000 | |||||||||||||||
Proceeds from issuance of preferred stock, net of stock issuance costs | 37,113 | $ 1 | 37,112 | |||||||||||||
Stock-based compensation expense | 1,063 | 1,063 | ||||||||||||||
Proceeds from stock options exercised (shares) | 160,000 | |||||||||||||||
Proceeds from stock options exercised | 1,000 | 1,000 | ||||||||||||||
Stock issued to purchase miners (shares) | 160,000 | |||||||||||||||
Stock issued to purchase miners | 991 | 991 | ||||||||||||||
Net income (loss) | 4,797 | 4,797 | ||||||||||||||
Common Units - Ending Balance (Shares) at Jun. 30, 2021 | 0 | |||||||||||||||
Preferred Units - Ending Balance (Shares) at Jun. 30, 2021 | 0 | |||||||||||||||
Members' Capital, Senior Priority Units, Ending Balance (in units) at Jun. 30, 2021 | 0 | |||||||||||||||
Ending Balance member capital at Jun. 30, 2021 | 0 | $ 0 | $ 0 | $ 0 | ||||||||||||
Balance at End of Period (shares) at Jun. 30, 2021 | 1,620,000 | 28,320,000 | ||||||||||||||
Balance at End of Period at Jun. 30, 2021 | $ 92,939 | $ 1 | $ 3 | 113,054 | (20,119) | |||||||||||
Common Units - Beginning Balance (Shares) at Dec. 31, 2020 | 750 | 750 | 10,000 | |||||||||||||
Preferred Units - Beginning Balance (Shares) at Dec. 31, 2020 | 39,228 | |||||||||||||||
Members' Capital, Senior Priority Units, Beginning Balance (in units) at Dec. 31, 2020 | 10,000 | |||||||||||||||
Beginning Balance member capital at Dec. 31, 2020 | $ 69,276 | $ 0 | $ 39,074 | $ 30,202 | $ 69,276 | |||||||||||
Balance at Beginning of Period (shares) at Dec. 31, 2020 | 0 | 0 | ||||||||||||||
Balance at Beginning of Period at Dec. 31, 2020 | 44,360 | $ 0 | $ 0 | 0 | (24,916) | |||||||||||
Issuance of warrants to advisor in connection with completion of Merger (Note 9) | 8,779 | |||||||||||||||
Stock issued to purchase miners | 991 | |||||||||||||||
Net income (loss) | (3,099) | |||||||||||||||
Common Units - Ending Balance (Shares) at Sep. 30, 2021 | 0 | |||||||||||||||
Preferred Units - Ending Balance (Shares) at Sep. 30, 2021 | 0 | |||||||||||||||
Members' Capital, Senior Priority Units, Ending Balance (in units) at Sep. 30, 2021 | 0 | |||||||||||||||
Ending Balance member capital at Sep. 30, 2021 | 0 | $ 0 | $ 0 | $ 0 | ||||||||||||
Balance at End of Period (shares) at Sep. 30, 2021 | 0 | 38,667,705 | ||||||||||||||
Balance at End of Period at Sep. 30, 2021 | 205,802 | $ 0 | $ 4 | 233,813 | (28,015) | |||||||||||
Common Units - Beginning Balance (Shares) at Jun. 30, 2021 | 0 | |||||||||||||||
Preferred Units - Beginning Balance (Shares) at Jun. 30, 2021 | 0 | |||||||||||||||
Members' Capital, Senior Priority Units, Beginning Balance (in units) at Jun. 30, 2021 | 0 | |||||||||||||||
Beginning Balance member capital at Jun. 30, 2021 | 0 | $ 0 | $ 0 | $ 0 | ||||||||||||
Balance at Beginning of Period (shares) at Jun. 30, 2021 | 1,620,000 | 28,320,000 | ||||||||||||||
Balance at Beginning of Period at Jun. 30, 2021 | 92,939 | $ 1 | $ 3 | 113,054 | (20,119) | |||||||||||
Proceeds from issuance of preferred stock, net of stock issuance costs (shares) | 2,960,731 | |||||||||||||||
Proceeds from issuance of preferred stock, net of stock issuance costs | 91,588 | 91,588 | ||||||||||||||
Issuance of shares for investor fee associated with successful completion of Merger (shares) | 562,174 | |||||||||||||||
Issuance of shares for investor fee associated with successful completion of Merger | 17,826 | 17,826 | ||||||||||||||
Issuance of warrants to advisor in connection with completion of Merger (Note 9) | 8,779 | 8,779 | ||||||||||||||
Conversion of Preferred Stock, Shares | (1,620,000) | 6,480,000 | ||||||||||||||
Conversion of Preferred Stock | $ (1) | |||||||||||||||
Shares issued upon exercise of warrants, Share | 344,800 | |||||||||||||||
Shares issued upon Exercise Of Warrants Value | 2,155 | 2,155 | ||||||||||||||
Stock-based compensation expense | 411 | 411 | ||||||||||||||
Net income (loss) | (7,896) | (7,896) | ||||||||||||||
Common Units - Ending Balance (Shares) at Sep. 30, 2021 | 0 | |||||||||||||||
Preferred Units - Ending Balance (Shares) at Sep. 30, 2021 | 0 | |||||||||||||||
Members' Capital, Senior Priority Units, Ending Balance (in units) at Sep. 30, 2021 | 0 | |||||||||||||||
Ending Balance member capital at Sep. 30, 2021 | 0 | $ 0 | $ 0 | $ 0 | ||||||||||||
Balance at End of Period (shares) at Sep. 30, 2021 | 0 | 38,667,705 | ||||||||||||||
Balance at End of Period at Sep. 30, 2021 | $ 205,802 | $ 0 | $ 4 | $ 233,813 | $ (28,015) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended |
Jun. 30, 2021 | Sep. 30, 2021 | |
Payment of stock issuance costs | $ 2,296 | |
Preferred Stock | ||
Payment of stock issuance costs | $ 3,387 | |
Preferred Stock | Support Com [Member] | ||
Payment of stock issuance costs | $ 2,296 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||||
Net loss | $ (3,099) | $ (2,466) | $ (3,290) | $ (8,475) |
Adjustments to reconcile net loss to net cash flow from operating activities: | ||||
Depreciation and amortization | 5,531 | 3,227 | 4,564 | 1,679 |
Deferred income taxes | (2,945) | 0 | ||
Amortization of debt issuance costs | 54 | 0 | ||
Accretion of asset retirement obligations | 103 | 108 | 142 | |
(Loss) gain on sale of digital assets | (159) | (11) | (123) | |
Stock-based compensation expense | 1,474 | 0 | ||
Investor fee paid in common stock | 17,826 | 0 | ||
Advisor fee paid in warrants | 8,779 | 0 | ||
Loss on environmental trust liability | 67 | 0 | ||
Loss (gain) on environmental trust liability | 230 | (241) | ||
Impairment loss on digital assets | 100 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 272 | (165) | (380) | 4 |
Emissions and carbon offset credits | 107 | (336) | ||
Prepaids and other assets | (5,955) | (965) | ||
Accounts payable | (455) | (1,062) | (1,714) | (164) |
Accrued emissions | (408) | 941 | 1,675 | 407 |
Accrued expenses | 5,315 | 1,506 | 397 | (118) |
Digital assets | (649) | (369) | ||
Fuel deposits | (644) | 128 | ||
Prepaid expenses | (59) | 38 | ||
Emissions credits | (1,364) | (560) | ||
Other assets | 11 | (10) | ||
Natural gas payable | 917 | 7 | ||
Accrued interest expense—related party | 572 | 673 | ||
Deferred revenue | 272 | |||
Net cash flow from operating activities | 26,666 | 788 | 557 | (6,901) |
CASH FLOW FROM INVESTING ACTIVITIES: | ||||
Purchases of and deposits for property and equipment | (65,757) | (9,738) | (4,596) | (3,458) |
Deposits on miner equipment | (5,959) | (6,337) | ||
Cash received in Merger | 27,113 | 0 | ||
Project deposit | 0 | 436 | 41 | |
Net cash flow from investing activities | (38,644) | (9,302) | (10,555) | (9,754) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||||
Proceeds from issuance of preferred stock, net of issuance costs | 37,113 | 0 | ||
Proceeds from stock options exercised | 1,000 | 0 | ||
Proceeds from warrants exercised | 2,155 | 0 | ||
Issuance costs associated with shares issued for Support acquisition | (2,296) | 0 | ||
Proceeds from notes payable, net of issuance costs | 25,112 | 0 | ||
Principal payments on notes payable | (4,440) | 0 | (273) | |
Proceeds from finance lease obligations | 0 | |||
Repayments of capital lease obligations | (569) | |||
Proceeds from sale of Greenidge Coin, LLC preferred units | 15,000 | |||
Borrowings on notes payable—related party | 3,573 | 12,700 | ||
Net cash flow provided by financing activities | 58,075 | 0 | 3,300 | 27,700 |
CHANGE IN CASH AND CASH EQUIVALENTS | 46,097 | (8,514) | (6,698) | 11,045 |
CASH AND CASH EQUIVALENTS—beginning of year | 5,052 | 11,750 | 11,750 | 705 |
CASH AND CASH EQUIVALENTS—end of year | $ 51,149 | $ 3,236 | 5,052 | 11,750 |
SUPPLEMENTAL DISCLOSURES: CASH PAID FOR INTEREST | 85 | |||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||||
Miner deposits moved into property and equipment | 6,337 | |||
Project deposits moved into property and equipment | 436 | |||
Property and equipment purchases financed with note payable | 4,910 | |||
Property and equipment purchases in accounts payable | 1,120 | 1,539 | ||
Property and equipment purchased with digital assets | 787 | |||
Initial recognition of asset retirement obligations | $ 2,135 | |||
Notes payable principal converted to members' equity | 12,700 | |||
Notes payable accrued interest converted to members' equity | 1,226 | |||
Deemed distribution of Greenidge Coin, LLC preferred units | 1,276 | |||
Contribution of Greenidge Coin, LLC preferred units | $ 15,000 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and Description of Business | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Greenidge Generation Holdings Inc. (“Greenidge”) and its subsidiaries (collectively, the “Company”) owns and operates a vertically integrated bitcoin mining and power facility located in Dresden, New York. The Company’s bitcoin mining capacity generates revenue in the form of bitcoin, which are then exchanged for U.S. dollars, by earning bitcoin with application-specific integrated circuit computers (“ASICs” or “miners”) that are owned by the Company as rewards and transaction fees for supporting the global bitcoin network. Additionally, the Company generates revenues in U.S. dollars to a lesser extent from third parties for hosting and maintaining their ASICs. The Company also sells surplus electricity generated by its power plant, and not consumed in bitcoin mining operations, to the New York Independent System Operator (“NYISO”) power grid at prices set on a daily basis through the NYISO wholesale market. In addition, the Company receives revenues from the sale of its capacity and ancillary services in the NYISO wholesale market. Merger with Support, Inc. On September 14, 2021, GGH Merger Sub, Inc. (“Merger Sub”), a wholly owned subsidiary of Greenidge, merged with and into Support.com, Inc. (“Support”), with Support continuing as the surviving corporation (the “Merger”) and a wholly owned subsidiary of Greenidge, pursuant to the Agreement and Plan of Merger, dated March 19, 2021 (the “Merger Agreement”), among Greenidge, Support and Merger Sub. The Merger combined the respective businesses of Greenidge and Support through an all-stock Business Combinations Support provides solutions and technical programs to customers delivered by home-based employees. Support’s homesourcing model, which enables outsourced work to be delivered by people working from home, has been specifically designed for remote work, with attention to security, recruiting, training, delivery, and employee engagement. Since the consummation of the Merger, the Support business operates as a wholly owned subsidiary and segment of Greenidge. | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Greenidge Generation Holdings LLC and Subsidiaries (collectively, the “Company”) owns and operates a vertically integrated bitcoin mining and power generation facility located in Upstate, New York. The Company’s bitcoin mining capacity generates revenue in the form of bitcoin and U.S. dollars by earning bitcoin with application-specific integrated circuit computers (“ASICs” or “miners”) that are owned by the Company as rewards and transaction fees for supporting the global bitcoin network. Additionally, the Company generates revenues in U.S. dollars to a lesser extent from third parties for hosting and maintaining their ASICs. The Company also sells surplus electricity generated by its power plant, and not consumed in bitcoin mining operations, to New York State’s power grid at prices set on a daily basis through the NYISO wholesale market. In addition, Greenidge receives revenues from the sale of its capacity and ancillary services in the NYISO wholesale market. The consolidated financial statements include the accounts of the following entities: • Greenidge Generation Holdings LLC (“GGH”, a Delaware limited liability company). GGH was formed in 2014 to oversee and manage the following entities: • Greenidge Generation LLC (“GG”, a New York limited liability company, wholly-owned subsidiary of GGH); • Lockwood Hills LLC (“LH”, a New York limited liability company, wholly-owned subsidiary of GGH); • Greenidge Solar LLC (“GS”, a Delaware limited liability company, wholly-owned subsidiary of GGH); • Greenidge Pipeline LLC (“GP”, a Delaware limited liability company, wholly-owned subsidiary of GGH); • Greenidge Pipeline Properties Corporation (“GPP”, a New York Corporation, wholly-owned subsidiary of GGH); • Greenidge Markets and Trading LLC (“GMT”, a Delaware limited liability company, wholly-owned subsidiary of GGH); • Greenidge Secured Lending LLC (“SL”, a Delaware limited liability company, wholly-owned subsidiary of GGH); • Greenidge Blocker Corp. (“Blocker”, a Delaware corporation, consolidated variable interest entity); and • Greenidge Coin, LLC (“GC”, a Delaware limited liability company, wholly-owned subsidiary of GGH). Variable Interest Entities The Company evaluates its interests in variable interest entities (“VIE”) and will consolidate any VIE in which it has a controlling financial interest and is deemed to be the primary beneficiary. A controlling financial interest has both of the following characteristics: (1) the power to direct the activities of the VIE that most significantly impact its economic performance; and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could be significant to the VIE. If both of the characteristics are met, the Company considers itself to be the primary beneficiary and therefore will consolidate that VIE into its consolidated financial statements. Consolidation of a Variable Interest Entity On October 2, 2019, Greenidge Blocker Corp. (“Blocker”), a related entity through common ownership, purchased 15,000 preferred units of Greenidge Coin (“GC”) for $15,000. Blocker was formed for the sole purpose of making a capital investment into GC so that GC could then provide a loan to GGH. The purpose of the loan from GC to GGH was to fund the development of infrastructure necessary for the Company to commence its Bitcoin mining operations. Accordingly, Blocker is deemed a VIE because Blocker’s operations consist of its investment in GC and consequently, Blocker relies on the operations of the Company to sustain future operating expenses. The Company is deemed the primary beneficiary of the VIE because it is the sole provider of financial support. Accordingly, as of October 2, 2019 the Company consolidated Blocker’s balance sheet and results of operations. On December 31, 2020, Blocker entered into a liquidating distribution agreement with GGH, effectively dissolving Blocker into GGH. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. In the opinion of management, the accompanying unaudited condensed interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjusting, considered necessary for a fair presentation of such interim results. Greenidge is the successor entity for accounting purposes to Greenidge Generation Holdings LLC (“GGH”) as a result of the corporate restructuring consummated in January 2021. Pursuant to this restructuring, Greenidge was incorporated in the State of Delaware on January 27, 2021 and on January 29, 2021, entered into an asset contribution and exchange agreement with the owners of GGH, pursuant to which Greenidge acquired all of the ownership interests in GGH in exchange for 28,000,000 shares of Greenidge’s class B common stock. As a result of this transaction, GGH became a wholly owned subsidiary of Greenidge. The financial information presented herein are that of GGH for the periods before January 29, 2021 and Greenidge for the period after January 29, 2021. The results for the unaudited interim condensed consolidated statements of operations are not necessarily indicative of results to be expected for the year ending December 31, 2021 or for any future interim period. The unaudited condensed interim consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 and accompanying notes. The condensed consolidated financial statements include the accounts of Greenidge and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Variable Interest Entities The Company evaluates its interests in variable interest entities (“VIE”) and consolidates any VIE in which it has a controlling financial interest and is deemed to be the primary beneficiary. A controlling financial interest has both of the following characteristics: (1) the power to direct the activities of the VIE that most significantly impact its economic performance; and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could be significant to the VIE. If both characteristics are met, the Company considers itself to be the primary beneficiary and therefore will consolidate that VIE into its consolidated financial statements. Consolidation of a Variable Interest Entit y On October 2, 2019, Blocker, a related entity through common ownership, purchased 15,000 preferred units of Greenidge Coin, LLC (“GC”) for $15,000. Blocker was formed for the sole purpose of making a capital investment into GC so that GC could then provide a loan to GGH. The purpose of the loan from GC to GGH was to fund the development of infrastructure necessary for the Company to commence its Bitcoin mining operations. Accordingly, Blocker is deemed a VIE because Blocker’s operations consist of its investment in GC and consequently, Blocker relies on the operations of the Company to sustain future operating expenses. The Company is deemed the primary beneficiary of the VIE because it is the sole provider of financial support. Accordingly, as of October 2, 2019, the Company consolidated Blocker’s balance sheet and results of operations. On December 31, 2020, Blocker entered into a liquidating distribution agreement with GGH, effectively dissolving Blocker into GGH. Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and notes thereto. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, estimates of the fair value of goodwill and intangible assets, useful lives of long-lived assets, stock-based compensation, current and deferred income tax assets and liabilities and asset retirement obligations. Significant Accounting Policies For a detailed discussion about the Company’s significant accounting policies, see the Company’s December 31, 2020 consolidated financial statements. Cash, Cash Equivalents, and Investments All liquid instruments with an original maturity, at the date of purchase, of 90 days or less are classified as cash equivalents. Cash equivalents and short-term investments consist primarily of money market funds, certificates of deposit, commercial paper, corporate notes and bonds, and U.S. government agency securities. The Company’s interest income on cash, cash equivalents and investments is included in interest expense, net in the condensed consolidated statements of operations. The Company monitors our investments for impairment on a quarterly basis to determine whether a decline in fair value is other-than-temporary by considering factors such as current economic and market conditions, the credit rating of the security’s issuer, the length of time an investment’s fair value has been below the Company’s carrying value, the Company’s intent to sell the security and the Company’s belief that it will not be required to sell the security before the recovery of its amortized cost. If an investment’s decline in fair value is deemed to be other-than-temporary, the Company reduces its carrying value to the estimated fair value, as determined based on quoted market prices or liquidation values. Declines in value judged to be other-than-temporary, if any, are recorded in operations as incurred. Digital Assets Digital assets, primarily consisting of bitcoin, are included in current assets in the accompanying condensed consolidated balance sheets. Digital assets are classified as indefinite-lived intangible assets in accordance with ASC 350, Intangibles – Goodwill and Other, and are accounted for in connection with Greenidge’s revenue recognition policy disclosed below. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. The Company determines the fair value of its digital assets on a nonrecurring basis in accordance with ASC 820, Fair Value Measurement, based on quoted prices on the active exchange(s) that the Company has determined is its principal market for bitcoin (Level 1 inputs). the Company performs an analysis each period to identify whether events or changes in circumstances, principally decreases in the quoted prices on active exchanges, indicate that it is more likely than not that its digital assets are impaired. Events or circumstances that may trigger an impairment assessment other than annually include but are not limited to material changes in the regulatory environment, potential technological changes in digital assets, and prolonged or material changes in the price of bitcoin below the carrying cost of the asset. Upon determining an impairment exists, the amount of the impairment is determined as the amount by which the carrying amount exceeds its fair value, which is measured using the quoted price of the digital asset at the time its fair value is being measured. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. The Company assessed its digital assets for impairment, and determined that no material impairments existed during the nine months ended September 30, 2021 and 2020. As of September 30, 2021, the Company’s digital assets consisted of approximately 29.8 bitcoins compared to 26.1 bitcoins as of December 31, 2020. Digital assets awarded to the Company through its mining activities are included within the operating activities in the accompanying condensed consolidated statements of cash flows. The Company accounts for its gains or losses in accordance with the last in, first out (“LIFO”) method of accounting. Gains and losses from the sales of digital assets are recorded in other income (expense) in the accompanying condensed consolidated statements of operations. Emissions Expense and Credits The Company participates in the Regional Greenhouse Gas Initiative (“RGGI”), which requires, by law, that the Company remit credits to offset 50% of the Company’s annual emission expense in the following year, for each of the years in the three year control period (January 1, 2018 to December 31, 2020). In February 2021, the Company settled the emissions allowance for the control period. The Company continues to remit credits in accordance with RGGI. The Company recognizes expense on a per ton basis, where one ton is equal to one RGGI credit. The RGGI credits are recorded on a first in, first out (“FIFO”) basis. The Company incurred emissions expense of $860 tho us and tho usand nine September th o usand thousand for the three and nine months ended September 30, 2020, respectively, which is included in power and capacity cost of revenue in the accompanying condensed consolidated statements of operations. Carbon Offset Credits The Company announced that effective June 1, 2021, it will operate an entirely carbon neutral bitcoin mining operation at its facility in Dresden, New York. The Company plans to purchase voluntary carbon offsets from a portfolio of U.S. greenhouse gas reduction projects as one method to achieve this carbon neutrality. During the nine months ended September 30, 2021, the Company purchased $0.7 million of voluntary carbon offset credits. The voluntary carbon offset credits will be expensed to cost of revenues on a specific identification basis when the Company applies it to its net zero goals, which is when the credits are surrendered to the applicable agency. Goodwill Acquisitions are accounted for using the acquisition method which requires allocation of the purchase price to assets acquired and liabilities assumed based on estimated fair values. Any excess of the purchase price over the fair value of the assets and liabilities acquired is recorded as goodwill. Allocations of the purchase price are based on preliminary estimates and assumptions at the date of acquisition and are subject to revision based on final information received, including appraisals and other analyses which support underlying estimates. The Company performs a goodwill impairment test annually in the fourth quarter or more frequently if events or circumstances indicate that an impairment loss may have been incurred. The applicable guidance allows an entity to first assess qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than carrying value. If it is determined that it is more likely than not that the fair value of a reporting unit is less than carrying value then the company will estimate and compare the fair value of its reporting units to their carrying value, including goodwill. If the carrying value of goodwill is not recoverable, an impairment is recognized for the difference. Fair value is determined through the use of projected future cash flows, multiples of earnings and sales and other factors. Such analysis requires the use of certain market assumptions and discount factors, which are subjective in nature. The Company’s goodwill relates to the Merger (see Note 3). Intangible Assets Other intangible assets relate to customer relationships and tradename acquired in the Merger (see Note 3), and are being amortized over the estimated period of benefit. The Company evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value is not recoverable, impairment is measured as the amount by which the carrying value exceeds its estimated fair value. Fair value is generally estimated based on either appraised value or other valuation techniques. Asset Retirement Obligations Asset retirement obligations are legal obligations associated with the retirement of long-lived assets. The obligations represent the present value of the estimated costs for an asset’s future retirement discounted using a credit-adjusted risk-free rate, and are recorded in the period in which the liability is incurred. The liabilities recognized relate to the decommissioning of a coal ash pond for coal combustion residuals (“CCR”), which are subject to Federal and State regulations . In accordance with Federal law and ASC 410-20, mil l million at September 30, 2021 and December 31, 2020, respectively. The Company expensed less than million to other income and expense, net during both of the three months ended September 30, 2021 and 2020 for the accretion of interest for the liability and $0.1 during both of the nine months ended September 30, 2021 and 2020. There were no changes to cash flow estimates related to the coal ash pond asset retirement obligation during the three and six % and methods for complying with CCR regulations. Additional adjustments to the asset retirement obligations are expected periodically due to potential changes in estimates and assumptions. Environmental Trust Liability The Company owns and operates a landfill. As required by the New York State Department of Environmental Conservation (“NYSDEC”), landfills are required to fund a trust to cover closure costs and expenses after the landfill has stopped operating. The trust is designed %. In lieu of a trust, the Company has negotiated with its largest equity member to maintain a letter of credit guaranteeing the payment of the liability (see Note 8 In accordance with ASC 410-20, Asset Retirement Obligations of million million at September 30, 2021 and December 31, 2020, respectively. The letter of credit related to this liability was for million at September 30, 2021 (see Note 8). Leases On January 1, 2021, the Company adopted ASC 842, Leases (“ASC 842”) Right-of-use In calculating the ROU asset and related lease liability, the Company elected to combine lease and non-lease ASC 842 requires the Company to recognize an ROU asset and a lease liability for all leases with terms greater than 12 months. The Company entered into two immaterial leases during the nine months ended September 30, 2021. The Company entered into a finance lease to finance the purchase of equipment on March 11, 2021, for which, the Company recorded an ROU asset of $1.4 million and a finance lease obligation of $1.2 million at the lease commencement date. The lease for this equipment ends August 31, 2022. The Company also entered into an operating lease for office space, for which the Company recorded an ROU asset and lease liability of $0.1 million. Revenue Recognition Cryptocurrency Mining Revenue Greenidge has entered into digital asset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time by either party and Greenidge’s enforceable right to compensation only begins when Greenidge provides computing power to the mining pool operator. In exchange for providing computing power, Greenidge is entitled to a theoretical fractional share of the cryptocurrency award the mining pool operator receives less digital asset transaction fees to the mining pool operator. Revenue is measured as the value of the fractional share of the cryptocurrency award received from the pool operator, which has been reduced by the transaction fee retained by the pool operator, for Greenidge’s pro rata contribution of computing power to the mining pool operator for the successful solution of the current algorithm. Providing computing power in digital asset transaction verification services is an output of Greenidge’s ordinary activities. The provision of providing such computing power is the only performance obligation in Greenidge’s contracts with mining pool operators. The cryptocurrency that Greenidge receives as transaction consideration is noncash consideration, which Greenidge measures at fair value on the date received, which is not materially different than the fair value at the contract inception or the time Greenidge has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and Greenidge receives confirmation of the consideration it will receive, at which time revenue is recognized. Pool fees paid by miners to pooling operators are based on a fixed percentage of the theoretical bitcoin block reward and network transaction fees received by miners. Pooling fees are netted against daily bitcoin payouts. Greenidge does not expect any material future changes in pool fee percentages paid to pooling operators, however as pools become more competitive, these fees may trend lower over time. Fair value of the cryptocurrency award received is determined using the quoted price on Greenidge’s primary exchange of the related cryptocurrency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, Greenidge may be required to change its policies, which could have an effect on the Company’s condensed consolidated financial position and results of operations. Power and capacity revenue Greenidge recognizes power revenue at a point in time, when the electricity is delivered to the NYISO and its performance obligation is met. Greenidge recognizes revenue on capacity agreements over the life of the contract as its series of performance obligations are met as capacity to provide power is maintained. Sales tax, value-added tax, and other taxes Greenidge collects concurrent with revenue-producing activities are excluded from revenue. Incidental contract costs that are not material in the context of the delivery of goods and services are recognized as expense. There is no significant financing component in these transactions. Services and other revenue Services revenue is primarily comprised of fees for customer support and technology support services provided by Greenidge’s wholly owned subsidiary, Support. Support’s service programs are designed for enterprise clients, business and professional services clients, as well as the consumer, and include customer service, sales support, and technical support, including computer and mobile device set-up, set-up, Support offers customer support, technical support, and technology services to large corporations, business and professional services organizations and consumers, directly and through its partners (which include communications providers, retailers, technology companies and others) and, to a lesser degree, directly through its website. Support transacts with customers via reseller programs, referral programs and direct transactions. In reseller programs, the partner generally executes the financial transactions with the customer and pays a fee to Support, which is recognized as revenue when the service is delivered. In referral programs, Support transacts with the customer directly and pays a referral fee to the referring party. In direct transactions, Support sells directly to the customer at the retail price. The services described above include four types of offerings: • Time-Based Services—In connection with the provisions of certain services programs, fees are calculated based on contracted time-based rates with partners. For these programs, revenue is recognizes as services are performed, based on billable time of work delivered by technology professionals. These services programs also include performance standards, which may result in incentives or penalties, which are recognized as earned or incurred. • Tier-Based Services – In connection with the provisions of certain services programs, fees are calculated on partner subscription tiers based on number of subscribers. For these programs, revenue is recognized as services are performed, and are billed based on the tier level of number of subscribers supported by Support’s professional team. • Subscriptions—Customers purchase subscriptions or “service plans” under which certain services are provided over a fixed subscription period. Revenues for subscriptions are recognized ratably over the respective subscription periods. • Incident-Based Services—Customers purchase a discrete, one-time Partners and corporate customers are generally invoiced monthly. Fees from customers via referral programs and direct transactions are generally paid with a credit card at the time of sale. Revenue is recognized net of any applicable sales tax. Services revenue also includes fees from licensing of Support cloud-based software. In such arrangements, customers receive a right to use Support cloud applications in their own support organizations. Support licenses its cloud-based software using a software-as-a-service per-user Services and other revenue also includes, to a lesser extent, fees for end-user end-user 30-day end-user Cryptocurrency Mining Cost of Revenue Cost of revenue—cryptocurrency mining consists primarily of natural gas, emissions, payroll and benefits and other direct production costs associated with the megawatts generated for the digital mining operation. Cost of revenue – cryptocurrency mining does not include depreciation and amortization. Power and Capacity Cost of Revenue Cost of revenue—power and capacity consists primarily of natural gas, emissions, payroll and benefits and other direct production costs associated with the megawatts generated for the power produced by Greenidge and sold to the grid. Cost of revenue – power and capacity does not include depreciation and amortization. Cost of Services and Other Revenue Cost of revenue—services and other consists primarily of compensation costs and contractor expenses associated with people providing services, as well as the technology, telecommunications and other personnel-related expenses related to the delivery of services. To a lesser extent, cost of services and other revenue includes third-party royalty fees for end-user Selling, General, and Administrative Expenses Selling, general and administrative expenses consist primarily of administrative payroll and benefits, business development costs, professional fees, and insurance. Stock-Based Compensation The Company accounts for share-based payment awards exchanged for services at the estimated grant date fair value of the award. Stock options issued under the Company’s equity incentive plans are granted with an exercise price equal to no less than the market price of the Company’s stock at the date of grant and expire up to ten years from the date of the grants. These options generally vest on the grant date or over a three year period . The Company estimates the fair value of the stock options grants using the Black-Scholes-Merton option pricing model and the assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgement. Expected Term Expected Volatility Risk-Free Interest Rate zero-coupon Expected Dividend Income Taxes Prior to the formation of Greenidge on January 27, 2021, GGH was treated as a partnership for federal and state income tax purposes. Pursuant to this election, the profit or loss of GGH is reported in the individual income tax returns of the members. Therefore, no provision for Federal or State taxes has been made for the year ended December 31, 2020. Subsequent to the conversion of GGH to Greenidge, the Company calculates the provision for income taxes in accordance with ASC 740, Income Taxes. The current provision for income taxes represents actual or estimated amounts payable or refundable on tax return filings each year. Deferred tax assets and liabilities are recorded for the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying condensed consolidated balance sheets, and for operating loss and tax credit carryforwards. The change in deferred tax assets and liabilities for the period measures the deferred tax provision or benefit for the period. Effects of changes in enacted tax laws on deferred tax assets and liabilities are reflected as adjustments to the tax provision or benefit in the period of enactment. A valuation allowance may be provided to the extent management deems it is more likely than not that deferred tax assets will not be realized. The ultimate realization of net deferred tax assets is dependent upon the generation of future taxable income, in the appropriate taxing jurisdictions, during the periods in which temporary differences, net operating losses and tax credits become realizable. Management believes that it is more likely than not that the Company will realize the benefits of these temporary differences and operating loss and tax credit carryforwards, net of valuation allowances. The Company recognizes and measures tax positions taken or expected to be taken in its tax return based on their technical merit and assesses the likelihood that the positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. Interest and penalties on tax liabilities, if any, would be recorded as incurred in interest expense and other expenses, respectively. Earnings Per Share Basic net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the diluted weighted average number of common shares outstanding for the period. Basic and diluted income per common share is not provided for the three and nine months ended September 30, 2020 as the Company was organized as an LLC during that period. The Company used the weighted average method in determining earnings per share in consideration of the conversion of participating securities to common shares due to the reorganization in January 2021. Reclassifications Certain prior year amounts have been reclassified to conform to the current year’s presentation. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, 2019-12”), 2019-12 Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. Recent Accounting Pronouncements, Adopted In February 2016, the FASB issued ASU No. 2016-02, right-of-use liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Use of Estimates The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and notes thereto. Actual results could differ from those estimates. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries as described in Note 1. All significant intercompany accounts and transactions have been eliminated. Cash and Cash Equivalents Cash and cash equivalents consist of demand deposit accounts and other short-term investments which mature within three months from the date of purchase. The Company maintains its cash in bank deposit accounts which may, at times, exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk with respect to cash and cash equivalents. Accounts Receivable The Company provides credit in the normal course of business to its power customer, NYISO. The Company performs periodic credit evaluations of its customer’s financial condition and generally does not require collateral. NYISO makes payments, depending on the type of revenue, within seven days of usage or seven days of month end. Based on the reliability of customer payments, the Company has determined that an allowance for doubtful accounts was not required at December 31, 2020 or 2019. Accounts are written off when collection efforts have been exhausted. No accounts were written off as uncollectible during the years ended December 31, 2020 or 2019. Digital Assets Digital assets are included in current assets in the accompanying consolidated balance sheets. Digital assets are classified as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other Digital assets awarded to the Company through its mining activities are included within the operating activities in the accompanying consolidated statements of cash flows. The Company accounts for its gains or losses in accordance with the last in, first out (“LIFO”) method of accounting. Gains and losses from the sales of digital assets are recorded in other income (expense) in the accompanying consolidated statements of operations. While management uses available information to evaluate and recognize impairment losses on digital assets, further reductions in the carrying amounts may be necessary based on the changes in the underlying value of Bitcoin. Fuel Deposits The Company is required to maintain a cash deposit ($100 minimum) with a third-party broker for gas purchases and collection of revenues on the Company’s behalf. Project Deposit The Company has a contract to connect its power generation facility with the New York State Transmission System, which requires the Company to make a deposit for work to commence. The balance of the deposit was $74 and $510 as of December 31, 2020 and 2019, respectively. The project was substantially completed in 2020 with the remaining deposit balance expected to be refunded in 2021. Emissions Expense and Credits The Company generates carbon dioxide emissions. As a result, the Company incurs emissions expense and is required to purchase emission credits, which are valued at cost, to offset the liability. The Company participates in the Regional Greenhouse Gas Initiative (“RGGI”), which requires, by law, that the Company remit credits to offset 50% of the Company’s annual emission expense in the following year, for each of the years in the three year control period (January 1, 2018 to December 31, 2020). After the control period ends, the Company will remit credits to extinguish the remaining emission expense liability. The Company recognizes expense on a per ton basis, where one ton is equal to one RGGI credit. The RGGI credits are recorded on a first in, first out (“FIFO”) basis. The Company incurred emissions expense of $1,738 and $206 for the years ended December 31, 2020 and 2019, respectively, which is included in power and capacity cost of revenue in the accompanying consolidated statements of operations. Miner Equipment Deposits The Company enters into agreements to purchase miner equipment, computer hardware designed for use in the cryptocurrency mining process that often require deposits before the equipment is received and placed into service. Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which generally range from three to thirty-nine years. Major additions and betterments are capitalized, while repairs and maintenance are charged to operations as incurred. Upon retirement or sale of an asset, the cost and related accumulated depreciation are eliminated and any resulting gain or loss is included within other income (expense) in the accompanying consolidated statements of operations. Impairment of Long-Lived Assets The Company assesses its long-lived assets for impairment whenever events or circumstances indicate the carrying amounts of long-lived assets may not be recoverable by comparing the expected undiscounted future cash flows of the assets with the respective carrying amounts as of the date of assessment. Should aggregate expected future cash flows be less than the carrying value, an impairment would be recognized, measured as the difference between the carrying value and the fair value of the asset. During the years ended December 31, 2020 and 2019, the Company did not record any impairment charges. Natural Gas Payable The Company purchases natural gas through a third-party broker on a daily basis. This amount represents the unpaid balance due to the broker at December 31, 2020 and 2019. Asset Retirement Obligations Asset retirement obligations are legal obligations associated with the retirement of long-lived assets. The obligations represent the present value of the estimated costs for an asset’s future retirement discounted using a credit-adjusted risk-free rate, and are recorded in the period in which the liability is incurred. The liabilities recognized relate to the decommissioning of a coal ash pond. The following table reflects the details of the asset retirement obligations included in the consolidated balance sheets at December 31, 2020 and 2019: Coal Ash Pond Balance at January 1, 2019 $ — Initial recognition 2,135 Balance at December 31, 2019 2,135 Accretion 142 Balance at December 31, 2020 $ 2,277 Coal Combustion Residuals Coal combustion residuals (“CCR”) are subject to Federal and State regulations. Our obligations associated with CCR are for the closure of a coal ash pond. With regards to its coal ash pond, in accordance with Federal law and ASC 410-20, Asset Retirement Obligations, Environmental Trust Liability The Company owns and operates a landfill. As required by the New York State Department of Environmental Conservation (“NYSDEC”), landfills are required to fund a trust to cover closure costs and expenses after the landfill has stopped operating. The trust is designed to provide funds for 30 years of expenses to maintain a landfill once it is full and has no further source of revenue or in case the owner is defunct and the NYSDEC has to operate the landfill. At December 31, 2020, the landfill is a fully permitted, operational landfill and also acts as a leachate treatment facility. An annual report is completed by a third-party engineering firm to provide environmental compliance and calculate combined closure and post-closure costs, discounted to current year dollars using a discount rate of 4.50%. In lieu of a trust, the Company has negotiated with its largest equity member to maintain a letter of credit guaranteeing the payment of the liability (see Note 5). In accordance with ASC 410-20, Asset Retirement Obligations Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers • Step 1: Identify the contract, or contracts, with the customer; • Step 2: Identify the performance obligations in the contract; • Step 3: Determine the transaction price; • Step 4: Allocate the transaction price to the performance obligations in the contract; and • Step 5: Recognize revenue when, or as, the Company satisfies a performance obligation. In order to identify the performance obligations in a contract with a customer, the Company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following: • Variable consideration; • Constraining estimates of variable consideration; • The existence of a significant financing component in the contract; • Noncash consideration; and • Consideration payable to a customer. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. Cryptocurrency mining and related activities revenue The Company has entered into digital asset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time by either party and the Company’s enforceable right to compensation only begins when the Company provides computing power to the mining pool operator. In exchange for providing computing power, the Company is entitled to a theoretical fractional share of the cryptocurrency award the mining pool operator receives (less pool fees to the mining pool operator which are recorded as a reduction of revenue) for successfully adding a block to the blockchain. The Company’s fractional share is based on their share of the theoretical global mining rewards based on its percentage contribution to the bitcoin mining network. Providing computing power in digital asset transaction verification services is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contracts with mining pool operators. The transaction consideration the Company receives, if any, is noncash consideration, which the Company measures at fair value on the date received, which is not materially different than the fair value at the contract inception or the time the Company has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. Fair value of the cryptocurrency award received is determined using the quoted price on the Company’s primary exchange of the related cryptocurrency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the Financial Accounting Standards Board (“FASB”), the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial position and results of operations. Hosting revenue The Company provides energized space and operating and maintenance services to third-party mining companies who locate their mining hardware at its power plant facility. The Company accounts for these agreements as a single performance obligation for services being delivered in a series with delivery being measured by daily successful operation of the mining hardware. As such, the Company recognizes revenue over the life of the contract as its series of performance obligations are met. Hosting contracts typically require payment in advance of the service delivery. The Company recognizes such payments as deferred revenue until its performance obligations are met, at which time the Company recognizes the revenue. The Company does not have any significant warranty obligations. Hosting revenue is included in cryptocurrency mining and related activities revenue in the consolidated statements of operations. Hashrate revenue From time to time, the Company sells its computing power at a fixed price over a period of time ranging from 30 to 180 days. The Company accounts for these agreements as a single performance obligation for services being delivered in a series with delivery being measured by daily delivery of the computing power. As such, the Company recognizes revenue over the life of the contract as its series of performance obligations are met. The Company does not have any significant warranty obligations. Hashrate revenue is included in cryptocurrency mining and related activities revenue in the consolidated statements of operations. Power and capacity revenue The Company recognizes power revenue at a point in time, when the electricity is delivered to the NYISO and its performance obligation is met. The Company recognizes revenue on capacity agreements over the life of the contract as its series of performance obligations are met as capacity to provide power is maintained. Sales tax, value-added tax, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. Incidental contract costs that are not material in the context of the delivery of goods and services are recognized as expense. There is no significant financing component in these transactions. Income Taxes The Company is treated as a partnership for federal and state income tax purposes. Pursuant to this election, the profit or loss of the Company is reported in the individual income tax returns of the members. Therefore, no provision for Federal or State taxes has been made for the years ended December 31, 2020 or 2019. The Company recognizes and measures tax positions taken or expected to be taken in its tax return based on their technical merit and assess the likelihood that the positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. Interest and penalties on tax liabilities, if any, would be recorded as incurred in interest expense and other expenses, respectively. Advertising and Promotion Costs Advertising and promotional costs are expensed as incurred and totaled $117 for the year ended December 31, 2020. The Company did not incur any advertising and promotional costs for the year ended December 31, 2019. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) 2019-12 Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. Recent Accounting Pronouncements, Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers expects to be entitled in exchange for those goods or services. Revenue recognition under the new standard did not have a material impact on the consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows. |
MERGER WITH SUPPORT
MERGER WITH SUPPORT | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Merger with Support | 3. MERGER WITH SUPPORT As described in Note 1, on September 14, 2021, Greenidge and Support combined their respective businesses through an all-stock Business Combinations At the effective time of the Merger (“Effective Time”): (i) each share of common stock of Support (the “Support Common Stock”) issued and outstanding immediately prior to the Effective Time was cancelled and extinguished and automatically converted into the right to receive 0.115 (the “Exchange Ratio”) shares of class A common stock, par value $0.0001, of the Company, (ii) each outstanding stock option of Support immediately prior to the Effective Time (an “Option”) was accelerated, and the holder of each Option received the right to receive an amount of the Company’s class A common stock equal to the Exchange Ratio, multiplied by the number of shares of Support Common Stock underlying such Option, less any shares withheld in satisfaction of the aggregate exercise price of such Option and such holder’s tax withholding obligations and (iii) each outstanding restricted stock unit of Support immediately prior to the Effective Time (an “RSU”) was accelerated, and the holder of each RSU received the right to receive an amount of the Company’s class A common stock equal to the Exchange Ratio, multiplied by the number of shares of Support Common Stock underlying such RSU, less any shares and such holder’s tax withholding obligations. Preliminary Allocation of the Purchase Price We have applied the acquisition method of accounting in accordance with ASC 805, with respect to the identifiable assets and liabilities of Support, which have been measured at estimated fair value as of the date of the business combination. Any excess of the acquisition price over the fair value of the assets and liabilities acquired is recorded as goodwill. As required by ASC 805, the acquisition price was determined based on the value of the consideration paid to Support shareholders, calculated to be $93.9 million (see table below). This acquisition price was allocated to the identifiable assets acquired and liabilities assumed of Support based upon their estimated fair values at the Merger date, primarily using Level 2 and Level 3 inputs. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable, and Level 3 inputs are inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). Due to the timing of the business combination, allocations of the acquisition price are based on preliminary estimates and assumptions at the Merger date and are subject to revision based on final information received, including appraisals, projections and other analysis which support underlying estimates. As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price allocation adjustments may be recorded during the measurement period, but no later than one year from the date of the Merger. The Company will reflect measurement period adjustments in the period in which the adjustments are determined. The following table summarizes the estimated value of the consideration paid (purchase price): $ in thousands, except per share amount Support common stock exchanged 25,745,487 Exchange ratio 0.115 Greenidge Class A common stock exchanged 2,960,731 Greenidge common stock value per share $ 31.71 Consideration paid $ 93,885 For the period immediately prior to the effective date of the Merger, Greenridge was a private company, and Support’s stock price fluctuated significantly based on factors not representative of the value of its underlying operations; therefore, Greenidge used the average of its closing stock price for the first ten days of trading on the Nasdaq Exchange ($31.71 per share) to measure the value of the consideration paid to Support shareholders. The following table summarizes the preliminary allocation of the purchase price to the identifiable assets acquired and liabilities assumed by Greenridge, with the excess of the purchase price over the fair value of Support’s net assets recorded as goodwill. As previously discussed, allocations of the acquisition price are based on preliminary estimates and assumptions and the final determination of the fair values may result in further adjustments to the values presented in the following table: $ in thousands Cash and cash equivalents $ 27,113 Short-term investments 496 Accounts receivable 5,383 Prepaid expenses and other current assets 713 Property and equipment 1,349 Other long-term assets 383 Accounts payable (117 ) Accrued expenses and other current liabilities (3,328 ) Other long-term liabilities (242 ) Intangible assets 22,690 Deferred tax liability (6,904 ) Goodwill 46,349 Total consideration $ 93,885 For assets and liabilities (excluding identifiable intangible assets and deferred revenues), the Company estimated that the carrying values, net of allowances, represented the fair values at the effective date of the Merger. The fair value estimates for identifiable intangible assets is based on preliminary assumptions that market participants would use in pricing an asset, based on the most advantageous market for the asset (i.e., its highest and best use). The final fair value determination for identifiable intangibles or estimates of remaining useful lives may differ materially from this preliminary determination. Following is a summary of identifiable intangible assets determined on a preliminary basis and is subject to adjustment during the measurement period, which could be material: $ in thousands Identifiable Intangible Asset Useful Life Fair Value Customer relationships 5 years $ 21,600 Tradename 10 1,090 Total identifiable intangible assets $ 22,690 The preliminary fair value of the customer relationships intangible asset was valued using a multi-period excess earnings method, a form of the income approach, which incorporates the estimated future cash flows to be generated from Support’s existing customer base. Excess earnings are the earnings remaining after deducting the market rates of return on the estimated values of contributory assets, including debt-free net working capital, tangible assets, and other identifiable intangible assets. The excess earnings are thereby calculated for each year of multi-year projection periods and discounted to present value. The preliminary fair value of the Support tradename was valued using the relief from royalty method under the income approach. This method estimates the cost savings generated by a company related to the ownership of an asset for which it would otherwise have had to pay royalties or license fees on revenues earned through the use of the asset and discounted to present value. Due to the timing of the Merger, the Company is in the early stages of its purchase accounting process. As the Company completes this process, including the finalization of the purchase price, fair value calculations, and a more detailed assessment of Support’s business projections, any measurement period adjustments will be recorded and a goodwill impairment test will be performed. In accordance with ASC 805, Support’s assets and liabilities are recorded at fair value at September 14, 2021, and accordingly, there is no cushion between Support’s fair value and carrying value. Considering that the fair value used to determine the consideration was based upon a stock that experienced significant price fluctuations, it is possible that goodwill and intangible assets may need to be impaired at that time. Results of Support Operations Since the Merger For the three and nine months ended September 30, 2021, the acquired Support business contributed $1.5 million in revenue and an immaterial operating loss, which includes approximately $0.2 million of amortization expenses of acquired intangible assets. Supplemental Pro Forma Financial Information In accordance with ASC 805, the following supplemental unaudited pro forma information gives effect to the Merger as if it had occurred on January 1, 2020. The unaudited pro forma financial information reflects certain adjustments related to the acquisition, such as: • Conforming the accounting policies of Support to those applied by Greenidge; • Recording certain incremental expenses resulting from purchase accounting adjustments, such as amortization expense in connection with fair value adjustments to intangible assets; and • Recording the related tax effects of pro forma adjustments. Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2021 2020 2021 2020 Revenues $ 42,448 $ 16,461 $ 87,830 $ 47,258 Net (loss) income $ (11,783 ) $ (1,646 ) $ (12,602 ) $ (6,274 ) The pro forma results for three and nine months ended September 30, 2021 include $30.0 million and $32.4 million, respectively, of transaction costs for both Greenidge and Support ($24.5 million and $26.9 million after tax, respectively), such as advisor fees, legal and accounting expenses. These costs will not affect the combined company’s statement of operations beyond 12 months after the closing date, September 14, 2021. See Note 4 for additional information. The unaudited pro forma financial information should not be relied upon as being indicative of the historical results that would have been obtained if the Merger had actually occurred on that date, nor the results of operations of the Company in the future. |
MERGER AND OTHER COSTS
MERGER AND OTHER COSTS | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
MERGER AND OTHER COSTS | 4. MERGER AND OTHER COSTS The following table provides details of Merger and other costs for the three and nine months ended September 30, 2021: Three Months Ended Nine Months Ended $ in thousands September 30, 2021 September 30, 2021 Merger related costs: Investor fee paid in common stock (Note 9) $ 17,826 $ 17,826 Advisor fee paid in warrants (Note 9) 8,779 8,779 Professional and other fees 1,140 1,434 Total Merger related costs 27,745 28,039 Public company filing related costs 2,102 3,056 Total Merger and other costs $ 29,847 $ 31,095 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 5. SEGMENT INFORMATION Effective September 14, 2021, following the completion of the Merger (see Notes 1 and 3), Support began operating within the Greenidge structure as a separate operating and reporting segment; therefore, Greenidge has two operating and reportable segments since the acquisition: i) Cryptocurrency Mining and Power Generation and ii) Support Services as the other. Prior to the Merger, Greenidge operated in one operating and reporting segment, Cryptocurrency Mining and Power Generation. The Cryptocurrency Mining and Power Generation segment operates in the United States and generates revenue primarily by earning bitcoin, with application-specific integrated circuit computers (“ASICs” or “miners”) that are owned by the Company, as rewards and transaction fees for supporting the global bitcoin network. The Cryptocurrency Mining and Power Generation segment also sells surplus electricity generated by its power plant, and not consumed in bitcoin mining operations, to the New York Independent System Operator (“NYISO”) power grid at prices set on a daily basis through the NYISO wholesale market. In addition, the Company receives revenues from the sale of its capacity and ancillary services in the NYISO wholesale market. The Cryptocurrency Mining and Power Generation segment operates in the United States . The Support Services segment provides solutions and technical programs to customers delivered by home-based employees. The Support Services segment provides customer service, sales support, and technical support primarily to large corporations, businesses and professional services organizations. The Support Services segment also earns revenues for end-user The Company’s measure of profit or loss for segment reporting is income (loss) before income taxes, interest and depreciation and amortization and adjusted for share based compensation and excluding items not indicative of ongoing business trends (referred to as “segment Adjusted EBITDA”). This is the measure used by the Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources. The table below presents information about reportable segments for the three and nine months ended September 30, 2021 and 2020, respectively: Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2021 2020 2021 2020 Revenues: Cryptocurrency Mining and Power Generation $ 34,233 $ 6,123 $ 61,472 $ 13,937 Support Services 1,521 — 1,521 — Total Revenues $ 35,754 $ 6,123 $ 62,993 $ 13,937 Segment Adjusted EBITDA Cryptocurrency Mining and Power Generation $ 20,973 $ 775 $ 33,464 $ 1,301 Support Services 204 — 204 — Total Segments Adjusted EBITDA $ 21,177 $ 775 $ 33,668 $ 1,301 In addition, the table below provides a reconciliation of the total of the segments Adjusted EBITDA to the consolidated Loss before income taxes: Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2021 2020 2021 2020 Total Segments Adjusted EBITDA $ 21,177 $ 775 $ 33,668 $ 1,301 Depreciation and amortization (2,667 ) (1,064 ) (5,531 ) (3,227 ) Stock-based compensation (411 ) — (1,474 ) — Merger and other costs (29,847 ) — (31,095 ) — Expansion costs (128 ) — (128 ) — Interest expense, net (1,009 ) — (1,399 ) (540 ) Consolidated loss before income taxes $ (12,885 ) $ (289 ) $ (5,959 ) $ (2,466 ) The table below provides segment assets, which exclude cash and cash $ in thousands September 30, 2021 Cryptocurrency Mining and Power Generation 129,802 Support Services 76,864 Total segment assets 206,666 Cash and cash equivalents 51,149 Short term investments 496 Total assets $ 258,311 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Property and Equipment | 6. PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following at September 30, 2021 and December 31, 2020: $ in thousands Estimated Useful September 30, 2021 December 31, 2020 Plant infrastructure 15 - 39 years $ 34,273 $ 33,944 Miners 5 years 36,779 10,236 Miner facility infrastructure 15 years 14,787 8,791 Land N/A 300 300 Equipment 5 years 948 211 Software 3 years 1,130 66 Coal ash impoundment 4 years 2,135 2,135 Construction in process N/A 6,869 3,989 Miner deposits N/A 38,467 5,959 135,688 65,631 Less: Accumulated depreciation (14,156 ) (8,986 ) $ 121,532 $ 56,645 Total depreciation expense was $2.7 million and $5.5 million for the three and nine months ended September 30, 2021 and was $1.1 million and $3.2 million for the three and nine months ended September 30, 2020, respectively. | 3. PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following at December 31: Estimated Useful 2020 2019 Plant infrastructure 15 – $ 33,944 $ 31,387 Miners 5 years $ 10,236 — Miner Facility 15 years 8,791 — Land N/A 300 300 Equipment 5 years 211 206 Software 3 years 66 66 Coal ash impoundment 4 years 2,135 2,135 Construction in process N/A 3,989 7,392 59,672 41,486 Less: Accumulated depreciation (8,986 ) (4,422 ) $ 50,686 $ 37,064 Total depreciation expense was $4,564 and $1,679 for the years ended December 31, 2020 and 2019, respectively. |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Notes Payable | 7. NOTES PAYABLE The Company has entered into equipment finance agreements that are secured by the purchased miner equipment. These agreements generally require monthly payments of principal, interest and a risk premium fee. The following table provides information on the equipment financing agreements: $ in thousands Interest Rate Initial Financing Balance as of: Note Loan Date Maturity Date September 30, 2021 December 31, 2020 A December 2020 June 2022 17.0 % $ 4,482 $ 1,992 $ 4,233 B December 2020 June 2022 17.0 % 428 166 404 C March 2021 November 2022 17.0 % 2,229 1,733 — D April 2021 December 2022 17.0 % 4,012 3,343 — E—H May 2021 October 2023 15.0 % 12,080 11,751 — I July 2021 January 2023 17.0 % 4,457 3,962 — J July 2021 March 2023 17.0 % 2,701 2,415 — 25,363 4,637 Less: Current portion (17,994 ) (3,273 ) $ 7,369 $ 1,364 The Company incurred interest expense of $1.0 million and $1.4 million during the three and nine months ended September 30, 2021, respectively, under the terms of these notes payable. | 4. NOTES PAYABLE The Company entered into an equipment finance agreement during December 2020 to finance miner equipment purchases totaling $4,482 with a third-party (“Miner equipment note A”). The terms of the financing agreement require interest at 17% per annum, including a risk premium fee of $482. The note requires principal payments of $222, risk premium payments of $27, and variable amounts of interest, every 30 days through the maturity date in July 2022. The note is secured by the purchased equipment. The Company entered into an equipment finance agreement during December 2020 to finance miner equipment purchases totaling $428 with a third-party (“Miner equipment note B”). The terms of the financing agreement require interest at 17% per annum and principal payments of $24, plus variable amounts of interest, every 30 days through the maturity date in June 2022. The note is secured by the purchased equipment. The Company entered into three other equipment finance agreements with similar terms in December 2020 that have not yet taken effect as of December 31, 2020. The agreements are expected to take effect when the equipment is delivered to the Company, which is expected in the second quarter of 2021. The aggregate amount of equipment and principal borrowings under the three agreements is $10,698. As of December 31, 2019, there were no notes payable outstanding. Notes payable consisted of the following at December 31, 2020: Miner equipment note A $ 4,233 Miner equipment note B 404 4,637 Less: Current portion (3,273 ) $ 1,364 Future maturities of notes payable are as follows for the years ending December 31: 2021 $ 3,273 2022 1,364 $ 4,637 The Company incurred interest expense of $91 during the year ended December 31, 2020 under the terms of these notes payable. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | 8. RELATED PARTY TRANSACTIONS Notes Payable The Company entered into a promissory note agreement during 2020 with its largest equity members, Atlas Capital Resources LP and Atlas Capital Resources (P) LP (collectively referred to herein as “Atlas”). Within the agreement, there were two separate loans. One of these related party loans had a June 2021 maturity and a balance of $2.4 m illion m il lion Notes Payable December 31, 2020. The promissory notes bore interest at per annum calculated on a 360-day Notes payable to related party consisted of the following: $ in thousands September 30, 2021 December 31, 2020 Note payable to a related party due June 2021 $ — $ 2,382 Note payable to a related party due May 2021 — 1,191 $ — $ 3,573 Less: Current Portion $ — $ (3,573 ) $ — $ — The related party loans in the table above were converted into Greenidge common stock in January 2021 (see Note 9). Letters of Credit On March 19, 2021, the Company and Atlas and its affiliates entered into an arrangement pursuant to which Greenidge agreed, upon request, to direct its bank to issue new letters of credit to replace all or a portion of the letters of credit provided by Atlas and certain of its affiliates, upon the consummation of a potential investment in, financing of, or sale of any assets or equity or debt securities of the Company, which results in net proceeds to the Company of at least $10 million Atlas obtained a letter of credit from a financial institution in the amount of $5.0 million at September 30, 2021, payable to the NYSDEC. This letter of credit guarantees the current value of the Company’s environmental trust liability as discussed in Note 2. Atlas also obtained a letter of credit from a financial institution in the amount of $3.6 million at September 30, 2021, payable to Empire Pipeline Incorporated (“Empire”) in the event the Company should not make contracted payments for costs related to a pipeline interconnection project the Company has entered into with Empire (see Note 13). Guarantee An affiliate of Atlas has guaranteed the payment obligation of Greenidge in favor of Emera Energy Services, Inc. under an Energy Management Agreement and an ISDA Master Agreement under which Greenidge may enter into various transactions involving the purchase and sale of gas, electricity and other commodities with Emera Energy Services, Inc. This guaranty is limited to $1.0 million. Atlas had no exposure under the guarantee during the period ended September 30, 2021. Greenidge Coin, LLC Equity Transactions On October 2, 2019, Blocker, a related entity through common ownership, purchased 15,000 preferred units of GC for $15 thousand. On July 1, 2020, Atlas purchased the preferred units of Blocker for $ 16.3 million, the amount of the aggregate liquidation preference, and contributed its membership interest in Blocker to GGH in exchange for Senior Priority Units – Tranche 2 (See Note 9) on July 2, 2020. On December 31, 2020, Blocker entered into a liquidating distribution agreement with GGH, effectively dissolving Blocker into GGH. | 5. RELATED PARTY TRANSACTIONS Notes Payable The Company entered into a promissory note agreement during the year ended December 31, 2019 with its largest equity members, Atlas Capital Resources (A9) LP and Atlas Capital Resources (P) LP (together referred to as “Atlas”). Within the agreement, there were three separate loans with varying loan amounts and maturity dates. The notes bore interest at 8% per annum calculated on a 360-day The Company entered into a promissory note agreement during 2020 with its largest equity members, Atlas. Within the agreement, there are two separate loans with varying loan and maturity dates as described in the table below. The notes bear interest at 8% per annum calculated on a 360-day Notes payable to related party consisted of the following at December 31: 2020 2019 Note payable to a related party with interest at 8% per annum. All outstanding principal and accrued but unpaid interest is due June 2021. $ 2,382 $ — Note payable to a related party with interest at 8% per annum. All outstanding principal and accrued but unpaid interest is due May 2021. 1,191 — Notes payable converted into Senior Priority Units—Tranche 1 (see Note 6). — 12,700 3,573 12,700 Less: Current portion (3,573 ) (5,000 ) $ — $ 7,700 Letters of Credit The largest equity members of the Company, Atlas Capital Resources LP and Atlas Capital Resources (P) LP, obtained a letter of credit from a financial institution in the amount of $4,938 at December 31, 2020 and 2019, payable to the NYSDEC. This letter of credit guarantees the current value of the Company’s environmental trust liability as discussed in Note 2. Atlas Capital Resources LP and Atlas Capital Resources (P) LP also obtained a letter of credit from a financial institution in the amount of $3,630 at December 31, 2020 and 2019, payable to Empire Pipeline Incorporated (“Empire”) in the event the Company should not make contracted payments for costs related to a pipeline interconnection project the Company has entered into with Empire. The Company paid Atlas Capital Resources LP and Atlas Capital Resources (P) LP $184 and $206 for letter of credit fees during the years ended December 31, 2020 and 2019, respectively. Greenidge Coin, LLC Equity Transactions On October 2, 2019, Blocker, a related entity through common ownership, purchased 15,000 preferred units of GC for $15,000. On July 1, 2020, Atlas purchased the preferred units of Blocker for $16,277, the amount of the aggregate liquidation preference, and contributed its membership interest in Blocker to GGH in exchange for Senior Priority Units—Tranche 2 (See Note 6) on July 2, 2020. On December 31, 2020, Blocker entered into a liquidating distribution agreement with GGH, effectively dissolving Blocker into GGH. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders Equity | 9. STOCKHOLDERS’ EQUITY Authorized Shares On September 13, 2021, Greenidge filed an amendment to its certificate of incorporation to increase the authorized capital stock. Pursuant to the amended and restated certificate of incorporation, Greenidge’s authorized capital stock consists of 2,400,000,000 shares of class A common stock, par value $0.0001 p e shares of class B common stock, par value $0.0001 per share, and 20,000,000 shares of preferred stock, par value $0.0001 per share . Contribution and Exchange Agreement In January 2021, GGH completed a corporate restructuring. Pursuant to this restructuring, Greenidge was formed and incorporated in the State of Delaware on January 27, 2021. On January 29, 2021, Greenidge entered into an asset contribution and exchange agreement with the members of GGH, in which the GGH members’ equity interests and outstanding notes payable to related parties and all accrued but unpaid interest were contributed into Greenidge in exchange for 7,000,000 shares of Greenidge class B common stock (28,000,000 shares following the 4-for-1 Private Placement Offering of Preferred Stock In January 2021, Greenidge completed a private placement offering in which 1,620,000 shares of series A redeemable convertible preferred stock was sold at $25 per share. Total net proceeds from the private placement offering were $37.1 million. Under the terms of the private placement memorandum in connection with the preferred stock offering, each share of preferred stock was automatically converted to four shares of class B common stock when the Company’s registration statement to register such shares for resale was declared effective by the Securities and Exchange Commission. During September 2021, this preferred stock was converted into 5,760,000 shares of class A common stock and 720,000 shares of class B common stock. There are no outstanding shares of preferred stock as of September 30, 2021. Equity Issuances Associated with the Merger In connection with the completion of the Merger, we issued 2,960,731 shares of class A common stock in consideration for all of the outstanding shares of Support. The fair value of the common shares issued to Support shareholders was $93.9 million (see Note 3), or $91.6 million, net of issuance costs. Additionally, pursuant to the Merger Agreement, we issued the following equity instruments in connection with the performance of consulting services leading to and in connection with the Merger at the time of the closing, as the issuance of these instruments were contingent upon successful completion of the Merger: • 562,174 shares of class A common stock with a fair value of $17.8 million issued to an investor, which owned approximately 16.6% of Support common stock and made a prior investment in Greenidge preferred stock, which was described previously; and • Warrants to purchase 344,800 shares of class A common stock at an exercise price of $6.25 per share of class A common stock to B. Riley Securities, Inc., which were exercised shortly thereafter. The fair value of the warrants at issuance was $8.8 million. For the period immediately prior to the effective date of the Merger, Greenridge was a private company, and Support’s stock price fluctuated significantly based on factors not representative of the value of its underlying operations; therefore, Greenidge used the average of its closing stock price for the first ten days of trading on the Nasdaq Exchange ($31.71 per share) to measure the value of the equity issued associated with the completion of the Merger. Equity Purchase Agreement with B. Riley Principal Capital, LLC On September 15, 2021, Greenidge entered into a common stock purchase agreement (the “Purchase Agreement”) with B. Riley Principal Capital, LLC (the “Investor”) pursuant to which Greenidge has the right to “put” or sell to the Investor up to $500 million of shares of class A common stock, subject to certain limitations and conditions set forth in the Purchase Agreement, from time to time during the term of the Purchase Agreement. Under the applicable Nasdaq rules, in no event may Greenidge issue to the Investor under the Purchase Agreement more than 19.99% of the total number of combined shares of its class A common stock and class B common stock that were outstanding immediately prior to the execution of the Purchase Agreement (the “Exchange Cap”), unless Greenidge obtains stockholder approval to issue shares in excess of the Exchange Cap in accordance with applicable Nasdaq rules. The per share purchase price for the shares of class A common stock that Greenidge elects to sell to the Investor pursuant to the Purchase Agreement will be determined by reference to the volume weighted average price of class A common stock (“VWAP”) during the applicable purchase date on which Greenidge has timely delivered written notice to the Investor directing it to purchase shares under the Purchase Agreement, less a fixed 5% discount, which shall be increased to a fixed 6% discount at such time that Greenidge received aggregate cash proceeds of $200 million as payment for all shares of class A common stock purchased by the Investor in all prior sales of class A common stock made under the Purchase Agreement. The Investor will have no obligation to purchase shares pursuant to the Purchase Agreement to the extent that such purchase would cause the Investor to own more than 4.99% of Greenidge’s issued and outstanding shares of class A common stock. In connection with the Purchase Agreement, Greenidge entered into a registration rights agreement with the Investor pursuant to which Greenidge agreed to prepare and file a registration statement registering the resale by the Investor of those shares of Greenidge’s class A common stock to be issued under the Purchase Agreement. The registration statement became effective on October 6, 2021 relating to the resale of 3,500,000 Common Stock Holders of Greenidge’s class A common stock are entitled to one vote per share. Holders of class B common stock are entitled t o ten votes per share. Class A and class B shares issued and outstanding as of September 30, 2021 are 9,627,705 and 29,040,000, respectively. Each share of class B common stock is convertible into one share of class A common stock at the option of the holder upon written notice to the Company. Shares of class B common stock will automatically convert to shares of class A common stock upon a mandatory conversion event as defined in the amended and restated certificate of incorporation dated March 26, 2021. Common Units In October 2018, GGH adopted an equity incentive plan and allocated 1,250 common units to the plan. In 2018, GGH awarded 750 restricted units to certain board members, subject to various vesting provisions. At December 31, 2020, there were 730 and 20 vested and unvested, respectively, restricted units. In the event of a change in control of the Company, 100% of the awarded units would vest immediately. Common unit holders are entitled to one vote per common unit, except for such votes or consents that are reserved solely for the holders of preferred units. The Company concluded that the value of the units granted in 2018 was insignificant given historical performance of the Company, no public market, and lack of liquidity. As such, the Company recognize any expense related to the common restricted units during the three and nine months ended September 30, 2021 and 2020. There common units issued and outstanding at December 31, 2020. In January 2021, in conjunction with the private placement offering, the 750 GGH common units were converted to shares of Greenidge’s class B common stock. Preferred Units GGH preferred unit holders were entitled to one vote per preferred unit. In the event of liquidation or dissolution of GGH, the holders of preferred units were entitled to receive distributions, prior to and in preference to the holders of common units. At December 31, 2020, all preferred units were issued and outstanding. All preferred units were converted to shares of Greenidge’s class B common stock in connection with the contribution and exchange agreement. Senior Priority Units There were two tranches of GG H million mi l At December 31, 2020, all senior priority units were issued and outstanding. All senior priority units were converted to shares of Greenidge’s class B common stock in connection with the contribution and exchange agreement. |
MEMBERS' EQUITY
MEMBERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Members' Equity | 6. MEMBERS’ EQUITY Authorized Units On July 2, 2020, GGH amended and restated its LLC agreement. The Company is authorized to issue 1,250 common units, 39,228 preferred units, and 10,000 senior priority units. Common Units In October 2018, GGH adopted an equity incentive plan and allocated 1,250 common units to the plan. In 2018, GGH awarded 750 restricted units to certain board members, subject to various vesting provisions. At December 31, 2020, there were 730 and 20 vested and Preferred Units Preferred unit holders are entitled to one vote per preferred unit. In the event of liquidation or dissolution of GGH, the holders of preferred units are entitled to receive distributions, prior to and in preference to the holders of common units. At December 31, 2020 and 2019, all preferred units were issued and outstanding. In the event of liquidation or dissolution of GGH, the holders of preferred units are entitled to receive distributions, prior to and in preference to the holders of common units, in an amount equal to $1 per preferred unit. Senior Priority Units There are two tranches of Senior Priority Units: Tranche 1 is equal to $13,926 and Tranche 2 is equal to $16,276. Tranche 1 Senior Priority Units were issued to Atlas Capital Resources LP and Atlas Capital Resources (P) LP in the same historical ownership percentages in conjunction with Atlas converting the 2019 notes payable and accrued interest (see Note 5). Tranche 2 Senior Priority Units were issued to Atlas Capital Resources LP and Atlas Capital Resources (P) LP in the same historical ownership percentages in conjunction with Atlas contributing its equity interest in Blocker (see Note 5). Senior Priority Units have no voting rights. In the event of liquidation or dissolution of GGH, the holders of senior priority units are entitled to receive distributions, prior to and in preference to the holders of common and preferred units. The holders of senior priority units are entitled to a cumulatively accrued rate of return on the investment of 8% in addition to the initial output of $13,926. The aggregate liquidation preference on GGH’s senior priority units was $14,498 at December 31, 2020. At December 31, 2020, all senior priority units were issued and outstanding. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | 7. EMPLOYEE BENEFIT PLAN GG sponsors a 401(k) plan (the Plan) covering substantially all GG employees. Employees become eligible to participate in the Plan upon the attainment of age twenty-one. pre-tax non-elective non-elective |
EQUITY BASED COMPENSATION
EQUITY BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Based Compensation | 10. EQUITY BASED COMPENSATION In February 2021, Greenidge adopted an equity incentive plan and reserved 3,831,112 shares of class A common stock for issuance under the plan (the “2021 Equity Plan”). Restricted Common Stock Unit Awards During the three and nine months ended September 30, 2021, the Company aw arded 0 and 616,920 restricted common stock units (“RSUs”), respectively, under the 2021 Equity Plan to directors, which are generally eligible to vest over a three-year period. The Company’s unvested restricted common stock unit awards activity for the nine months ended September 30, 2021 is summarized below: RSUs Weighted Average Fair Value Unvested at December 31, 2020 — $ — Granted 616,920 6.25 Unvested at September 616,920 6.25 The value of RSU grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. There were no RSU grants during the three months ended September 30, 2021. During the nine months ended September 30, 2021, the fair market value of the awards granted totaled $3.9 million and as of September 30, 2021, there was approximately $3.1 million of total unrecognized compensation cost related to unvested restricted stock rights, which is expected to be recognized over a remaining weighted-average vesting period of approximately 2.4 years. Common Stock Options The Company’s stock options activity for the nine months ended September 30, 2021 is summarized below: Options Weighted Average Per Share Weighted Average Aggregate Outstanding at December 31, 2020 — $ — — Granted 753,968 6.07 Exercised (160,000 ) 6.25 Forfeited (10,888 ) 6.25 Outstanding at September 30, 2020 583,080 $ 6.01 9.43 $ 11,387 Exercisable as of September 30, 2021 257,484 $ 5.80 9.64 $ 5,083 The value of common stock option grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. During the three and nine months ended September 30, 2021, the fair market value of the awards granted totaled $0.1 million and $1.2 million, respectively. As of September 30, 2021, there was approximately $0.4 million of total unrecognized compensation cost related to unvested options, which is expected to be recognized over a remaining weighted-average vesting period of approximately 1.2 years . The weighted average assumptions relating to the valuation of stock options granted for the nine months ended September 30, 2021 were as follows: Weighted Average fair value of grants $ 1.54 Expected volatility 35 % Expected term (years) 4.5 Risk-free interest rate 0.4 % Expected dividend yield 0.0 % Stock-based Compensation The Company recognized stock-based compensation expense of $0.4 millio n million during the three and nine months ended September 30, 2021, respectively. No stock-based compensation expense was recognized during the three and nine months ended September 30, 2020. Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying unaudited condensed interim consolidated statements of operations. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. The effective income tax rate as a percentage of income before income taxes was 38.7% and 48.0% for the three and nine months ended September 30, 2021, respectively. The effective income tax rates for the three and nine months ended September 30, 2021 benefitted from a higher tax bases for the deductibility of the equity-based success fees associated with the Merger. The effective tax rate for the nine months ended September 30, 2021 includes the recognition of a deferred tax liability caused by the reorganization from an LLC to a corporation during the first quarter of 2021. Prior to January 27, 2021, the Company was treated as a partnership for federal and state income tax purposes; therefore, there was no income tax provision or benefit recognized during 2020. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. EARNINGS PER SHARE The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by assuming the exercise, settlement, and vesting of all potential dilutive common stock equivalents outstanding for the period using the treasury stock method. The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings and diluted per share of common stock. Basic earnings per share is applicable only for the period from January 29, 2021 through September 30, 2021, which is the period following the reorganization GGH into Greenidge (see Note 2) and presents the period that the Company had outstanding common stock. $ in thousands, except per share amounts Three Months Nine Months Numerator Net loss $ (7,896 ) $ (3,099 ) Less: Net income attributable to the member units units before the reorganization (648 ) (648 ) Net loss attributable to Greenidge $ (8,544 ) $ (3,747 ) Denominator Basic weighted average shares outstanding 30,116 28,949 Dilutive effect of equity awards — — Dilutive effect of convertible preferred stock — — Diluted weighted average shares outstanding 30,116 28,949 Loss per share Basic $ (0.28 ) $ (0.13 ) Diluted $ (0.28 ) $ (0.13 ) Prior to the reorganization, there were no shares of common stock outstanding, and the LLC structure of GGH consisted of member units. The Company analyzed the calculation of earnings per unit for periods prior to the reorganization and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements. Therefore, earnings per share information has not been presented for the periods during 2020. For the three and nine months ended September 30, 2021, there was impact of dilution from any of the outstanding equity awards due to the Net loss, since inclusion of any impact from these awards would be antidilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 13. COMMITMENTS AND CONTINGENCIES Legal Matters From time-to-time, Merger-Related Litigation. After announcement of the Merger, six complaints were file in various U.S. federal district courts by alleged individual stockholders of Support against Support, the individual directors of Support and, in two of the cases, Greenidge and Merger Sub. Of these six complaints, two were filed in the United States District Court for the District of Delaware: Stein v. Support.com, Inc. et al, Case No. 1:21-cv-00650 1:21-cv-00672 1:21-cv-04262 1:21-cv-04584 1:21-cv-04797 1:21-cv-02647 S-4 All of the lawsuits have since been voluntarily dismissed by plaintiffs. Other Matters Support has received and may in the future receive additional requests for information, including subpoenas, from other governmental agencies relating to the subject matter of a Consent Order and Civil Investigative Demands. The Company intends to cooperate with these information requests and is not aware of any other legal proceedings against the Company by governmental authorities at this time. Commitments As of September 30, 2021, the Company had entered into agreements to purchase miner equipment totaling $142.2 million that required deposits of $38.5 million. The Company entered into agreements for committed secured financing on this equipment totalin g $5.2 million that will be funded upon delivery of the miners. The Company entered into a contract with Empire in September 2020 which provides for the transportation to its pipeline of 15,000 dekatherms of natural gas per day, approximately $158 per month. The contract ends in September 2030 and may be terminated by either party with 12 months’ notice after the initial 10-year | 8. COMMITMENTS AND CONTINGENCIES From time-to-time, At December 31, 2020, the Company entered into an agreement to purchase miner equipment totaling $11,910 that required deposits of $5,959. At December 31, 2019, the Company entered into an agreement to purchase miner equipment totaling $7,860 that required deposits of $6,337. The Company entered into a contract with Empire Pipeline Inc. in September 2020 which provides for the transportation to its pipeline of 15,000 decatherms of natural gas per day, approximately $158 per month. The contract ends in September 2030 and may be terminated by either party with 12 months notice after the initial 10-year |
CONCENTRATIONS
CONCENTRATIONS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | ||
Concentrations | 14. CONCENTRATIONS The Company has one major power customer, NYISO, that accounted for 9 11 of its revenue for the three and nine months ended September 30, 2021, respectively, a nd 50 and 38 6 100 of accounts receivable were due from this customer at September 30, 2021 and December 31, 2020, respectively. For cryptocurrency mining, Greenidge considers its mining pool operators to be its customers. Greenidge has historically used a limited number of pool operators that have operated under contracts with a one-day 62 37 24 46 50 59 The Support Services segment’s largest and second largest customers accounted for approximately 60 25 The Company has one natural gas vendor that accounted for approx imately 35 57 of cost of revenue for the three and nine months ended September 30, 2021, respectively, and approximately 55 57 of cost of revenue for the three and nine months ended September 30, 2020, respectively. | 9. CONCENTRATIONS The Company has one major power customer, the NYISO, that accounts for 35.7% and 90.8% of its revenue for the years ended December 31, 2020 and 2019, respectively. All amounts receivable were due from this customer at December 31, 2020 and 2019. The Company has one major power vendor that accounted for approximately 56.8% and 55.6% of cost of revenue for the years ended December 31, 2020 and 2019, respectively. Revenues from Greenidge’s largest pool operator customer comprised approximately 57% of total revenue for the year ended December 31, 2020. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | 15. SUPPLEMENTAL CASH FLOW INFORMATION Greenidge had the following noncash investing and financing activities during the nine months ended September 30, 2021: $ in thousands Shares issued to Support.com shareholders upon Merger (Notes 3 and 9) $ 93,885 Stock issued to purchase miners $ 991 Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for Greenidge class B common stock (Note 9) $ 72,891 Issuance of shares for investor fee associated with successful completion of Merger (Notes 4 and 9) $ 17,826 Issuance of warrants to advisor in connection with completion of Merger (Note 4 and 9) $ 8,779 |
OTHER RISKS AND CONSIDERATIONS
OTHER RISKS AND CONSIDERATIONS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | ||
Other Risks and Considerations | 16. OTHER RISKS AND CONSIDERATIONS The United States is presently in the midst of a national health emergency related to a virus, commonly known as Novel Coronavirus (“COVID-19”). COVID-19 COVID-19 | 10. OTHER RISKS AND CONSIDERATIONS The United States is presently in the midst of a national health emergency related to a virus, commonly known as Novel Coronavirus (“COVID-19”). COVID-19 COVID-19 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
Subsequent Events | 17. SUBSEQUENT EVENTS Subsequent events have been evaluated through November 15, 2021, the date at which the condensed consolidated financial statements were available to be issued, and the Company has concluded that no such events or transactions took place that would require disclosure herein except as stated directly below. Registered Notes Offering On October 13, 2021, Greenidge completed a registered public offering of $55.2 million of the Company’s 8.50% Senior Notes due 2026 (the “Notes”). The Notes are senior unsecured obligations of the Company and rank equal in right of payment with the Company’s existing and future senior unsecured indebtedness. The Company received net proceeds after discounts and commissions, but before expenses and payment of the structuring fee, of approximately $53.3 million. The Company intends to use the net proceeds from the offering of the Notes for general corporate purposes, including funding capital expenditures, future acquisitions, investments and working capital and repaying indebtedness. Purchase of South Carolina Property In October 2021, a subsidiary of Greenidge entered into a Purchase and Sale Agreement (the “LSC Agreement”) with a subsidiary of LSC Communications, Inc. (the “Seller”), a Delaware corporation, pursuant to which Greenidge has agreed to purchase from the seller two parcels of land containing approximately 175 acres of land located in Spartanburg, South Carolina, including over 750,000 The purchase price of the Property is $15.0 million (the “Purchase Price”). Under the terms of the LSC Agreement, Greenidge has deposited $2.5 million in escrow, with such amount to be applied at closing to the Purchase Price. The transaction is expected to close in early December 2021. The LSC Agreement contains customary representations, warranties and covenants of the parties and closing conditions as well as other customary provisions. Greenidge expects to finance the Purchase Price with cash on hand. Equity Purchase Agreement with B. Riley Principal Capital, LLC As discussed in Note 9, on September 15, 2021, Greenidge entered into the Purchase Agreement with the Investor pursuant to which Greenidge has the right to “put” or sell to the Investor up to $500 million of shares of class A common stock, subject to certain limitations and conditions set forth in the Purchase Agreement, from time to time during the term of the Purchase Agreement. Following the effectiveness of Greenidge’s registration statement (File No. 333-259637) S-1 12 ERCOT Market Data Centers In October 2021, we entered into an agreement with a portfolio company of private investment funds managed by Atlas giving us an exclusive right of first refusal at multiple power generation sites comprising over 1,000MW of power generation assets in the ERCOT market. The agreement gives us the exclusive right of first refusal to develop data centers at any current or future power generation sites controlled by the counterparty in the ERCOT market until January 2023. Greenidge’s controlling shareholder consists of certain funds associated with Atlas Holdings LLC. | 11. SUBSEQUENT EVENTS In January 2021, GC merged into GG and GC was subsequently dissolved. In January 2021, Greenidge Generation Holdings Inc. (“GGHI”) was formed in the state of Delaware. GGHI has the authority to issue 200,000,000 shares of common stock, $0.0001 par value per share, and 20,000,000 shares of preferred stock, $0.0001 par value per share. After the formation of GGHI, the equity holders of GGH entered into an asset contribution and exchange agreement in which the holders’ equity interests and outstanding notes payable balances were contributed into GGHI in exchange for 7,000,000 shares of GGHI common stock (28,000,000 shares of GGHI Class B Common Stock after a 4-for-1 stock split that occurred in March 2021). In January 2021, GGHI completed a private placement offering in which 1,620,000 shares of series A redeemable convertible preferred stock was sold at $25 per share. Total net proceeds from the private placement offering were $37,590. In February 2021, GGHI adopted an equity incentive plan and reserved 957,778 shares of common stock (3,831,112 shares of Class A Common Stock after a 4-for-1 stock split that occurred in March 2021) for issuance under the plan. On March 19, 2021, the Company entered into a definitive agreement and plan of merger for a business combination with Support.com, Inc., a Delaware corporation (NASDAQ: SPRT). On March 19, 2021, the Company and the its largest equity member and its affiliates entered into an arrangement pursuant to which Greenidge agreed, upon request, to direct its bank to issue new letters of credit to replace all or a portion of the letters of credit provided by the largest equity member and certain of its affiliates, upon the consummation of a potential investment in, financing of, or sale of any assets or equity or debt securities of the Company, which results in net proceeds to the Company of at least $10,000,000. In May 2021, the Company entered into equipment financing agreements to finance miner equipment purchases totaling $13,947 with a third-party. October 2023 Subsequent events have been evaluated through August 6, 2021, the date at which the consolidated financial statements were available to be issued, and the Company has concluded that no such events or transactions took place that would require disclosure herein except as stated directly above. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and notes thereto. Actual results could differ from those estimates. | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. In the opinion of management, the accompanying unaudited condensed interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjusting, considered necessary for a fair presentation of such interim results. Greenidge is the successor entity for accounting purposes to Greenidge Generation Holdings LLC (“GGH”) as a result of the corporate restructuring consummated in January 2021. Pursuant to this restructuring, Greenidge was incorporated in the State of Delaware on January 27, 2021 and on January 29, 2021, entered into an asset contribution and exchange agreement with the owners of GGH, pursuant to which Greenidge acquired all of the ownership interests in GGH in exchange for 28,000,000 shares of Greenidge’s class B common stock. As a result of this transaction, GGH became a wholly owned subsidiary of Greenidge. The financial information presented herein are that of GGH for the periods before January 29, 2021 and Greenidge for the period after January 29, 2021. The results for the unaudited interim condensed consolidated statements of operations are not necessarily indicative of results to be expected for the year ending December 31, 2021 or for any future interim period. The unaudited condensed interim consolidated financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 and accompanying notes. The condensed consolidated financial statements include the accounts of Greenidge and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Variable Interest Entities The Company evaluates its interests in variable interest entities (“VIE”) and consolidates any VIE in which it has a controlling financial interest and is deemed to be the primary beneficiary. A controlling financial interest has both of the following characteristics: (1) the power to direct the activities of the VIE that most significantly impact its economic performance; and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could be significant to the VIE. If both characteristics are met, the Company considers itself to be the primary beneficiary and therefore will consolidate that VIE into its consolidated financial statements. Consolidation of a Variable Interest Entit y On October 2, 2019, Blocker, a related entity through common ownership, purchased 15,000 preferred units of Greenidge Coin, LLC (“GC”) for $15,000. Blocker was formed for the sole purpose of making a capital investment into GC so that GC could then provide a loan to GGH. The purpose of the loan from GC to GGH was to fund the development of infrastructure necessary for the Company to commence its Bitcoin mining operations. Accordingly, Blocker is deemed a VIE because Blocker’s operations consist of its investment in GC and consequently, Blocker relies on the operations of the Company to sustain future operating expenses. The Company is deemed the primary beneficiary of the VIE because it is the sole provider of financial support. Accordingly, as of October 2, 2019, the Company consolidated Blocker’s balance sheet and results of operations. On December 31, 2020, Blocker entered into a liquidating distribution agreement with GGH, effectively dissolving Blocker into GGH. | |
Use of estimates | Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and notes thereto. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, estimates of the fair value of goodwill and intangible assets, useful lives of long-lived assets, stock-based compensation, current and deferred income tax assets and liabilities and asset retirement obligations. | |
Significant Accounting Policies | Significant Accounting Policies For a detailed discussion about the Company’s significant accounting policies, see the Company’s December 31, 2020 consolidated financial statements. | |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments All liquid instruments with an original maturity, at the date of purchase, of 90 days or less are classified as cash equivalents. Cash equivalents and short-term investments consist primarily of money market funds, certificates of deposit, commercial paper, corporate notes and bonds, and U.S. government agency securities. The Company’s interest income on cash, cash equivalents and investments is included in interest expense, net in the condensed consolidated statements of operations. The Company monitors our investments for impairment on a quarterly basis to determine whether a decline in fair value is other-than-temporary by considering factors such as current economic and market conditions, the credit rating of the security’s issuer, the length of time an investment’s fair value has been below the Company’s carrying value, the Company’s intent to sell the security and the Company’s belief that it will not be required to sell the security before the recovery of its amortized cost. If an investment’s decline in fair value is deemed to be other-than-temporary, the Company reduces its carrying value to the estimated fair value, as determined based on quoted market prices or liquidation values. Declines in value judged to be other-than-temporary, if any, are recorded in operations as incurred. | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries as described in Note 1. All significant intercompany accounts and transactions have been eliminated. | |
Emissions Expense and Credits | Emissions Expense and Credits The Company participates in the Regional Greenhouse Gas Initiative (“RGGI”), which requires, by law, that the Company remit credits to offset 50% of the Company’s annual emission expense in the following year, for each of the years in the three year control period (January 1, 2018 to December 31, 2020). In February 2021, the Company settled the emissions allowance for the control period. The Company continues to remit credits in accordance with RGGI. The Company recognizes expense on a per ton basis, where one ton is equal to one RGGI credit. The RGGI credits are recorded on a first in, first out (“FIFO”) basis. The Company incurred emissions expense of $860 tho us and tho usand nine September th o usand thousand for the three and nine months ended September 30, 2020, respectively, which is included in power and capacity cost of revenue in the accompanying condensed consolidated statements of operations. | Emissions Expense and Credits The Company generates carbon dioxide emissions. As a result, the Company incurs emissions expense and is required to purchase emission credits, which are valued at cost, to offset the liability. The Company participates in the Regional Greenhouse Gas Initiative (“RGGI”), which requires, by law, that the Company remit credits to offset 50% of the Company’s annual emission expense in the following year, for each of the years in the three year control period (January 1, 2018 to December 31, 2020). After the control period ends, the Company will remit credits to extinguish the remaining emission expense liability. The Company recognizes expense on a per ton basis, where one ton is equal to one RGGI credit. The RGGI credits are recorded on a first in, first out (“FIFO”) basis. The Company incurred emissions expense of $1,738 and $206 for the years ended December 31, 2020 and 2019, respectively, which is included in power and capacity cost of revenue in the accompanying consolidated statements of operations. |
Carbon Offset Credits | Carbon Offset Credits The Company announced that effective June 1, 2021, it will operate an entirely carbon neutral bitcoin mining operation at its facility in Dresden, New York. The Company plans to purchase voluntary carbon offsets from a portfolio of U.S. greenhouse gas reduction projects as one method to achieve this carbon neutrality. During the nine months ended September 30, 2021, the Company purchased $0.7 million of voluntary carbon offset credits. The voluntary carbon offset credits will be expensed to cost of revenues on a specific identification basis when the Company applies it to its net zero goals, which is when the credits are surrendered to the applicable agency. | |
Goodwill | Goodwill Acquisitions are accounted for using the acquisition method which requires allocation of the purchase price to assets acquired and liabilities assumed based on estimated fair values. Any excess of the purchase price over the fair value of the assets and liabilities acquired is recorded as goodwill. Allocations of the purchase price are based on preliminary estimates and assumptions at the date of acquisition and are subject to revision based on final information received, including appraisals and other analyses which support underlying estimates. The Company performs a goodwill impairment test annually in the fourth quarter or more frequently if events or circumstances indicate that an impairment loss may have been incurred. The applicable guidance allows an entity to first assess qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than carrying value. If it is determined that it is more likely than not that the fair value of a reporting unit is less than carrying value then the company will estimate and compare the fair value of its reporting units to their carrying value, including goodwill. If the carrying value of goodwill is not recoverable, an impairment is recognized for the difference. Fair value is determined through the use of projected future cash flows, multiples of earnings and sales and other factors. Such analysis requires the use of certain market assumptions and discount factors, which are subjective in nature. The Company’s goodwill relates to the Merger (see Note 3). | |
Intangible Assets | Intangible Assets Other intangible assets relate to customer relationships and tradename acquired in the Merger (see Note 3), and are being amortized over the estimated period of benefit. The Company evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value is not recoverable, impairment is measured as the amount by which the carrying value exceeds its estimated fair value. Fair value is generally estimated based on either appraised value or other valuation techniques. | |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations are legal obligations associated with the retirement of long-lived assets. The obligations represent the present value of the estimated costs for an asset’s future retirement discounted using a credit-adjusted risk-free rate, and are recorded in the period in which the liability is incurred. The liabilities recognized relate to the decommissioning of a coal ash pond for coal combustion residuals (“CCR”), which are subject to Federal and State regulations . In accordance with Federal law and ASC 410-20, mil l million at September 30, 2021 and December 31, 2020, respectively. The Company expensed less than million to other income and expense, net during both of the three months ended September 30, 2021 and 2020 for the accretion of interest for the liability and $0.1 during both of the nine months ended September 30, 2021 and 2020. There were no changes to cash flow estimates related to the coal ash pond asset retirement obligation during the three and six % and methods for complying with CCR regulations. Additional adjustments to the asset retirement obligations are expected periodically due to potential changes in estimates and assumptions. | Asset Retirement Obligations Asset retirement obligations are legal obligations associated with the retirement of long-lived assets. The obligations represent the present value of the estimated costs for an asset’s future retirement discounted using a credit-adjusted risk-free rate, and are recorded in the period in which the liability is incurred. The liabilities recognized relate to the decommissioning of a coal ash pond. The following table reflects the details of the asset retirement obligations included in the consolidated balance sheets at December 31, 2020 and 2019: Coal Ash Pond Balance at January 1, 2019 $ — Initial recognition 2,135 Balance at December 31, 2019 2,135 Accretion 142 Balance at December 31, 2020 $ 2,277 Coal Combustion Residuals Coal combustion residuals (“CCR”) are subject to Federal and State regulations. Our obligations associated with CCR are for the closure of a coal ash pond. With regards to its coal ash pond, in accordance with Federal law and ASC 410-20, Asset Retirement Obligations, |
Revenue Recognition | Revenue Recognition Cryptocurrency Mining Revenue Greenidge has entered into digital asset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time by either party and Greenidge’s enforceable right to compensation only begins when Greenidge provides computing power to the mining pool operator. In exchange for providing computing power, Greenidge is entitled to a theoretical fractional share of the cryptocurrency award the mining pool operator receives less digital asset transaction fees to the mining pool operator. Revenue is measured as the value of the fractional share of the cryptocurrency award received from the pool operator, which has been reduced by the transaction fee retained by the pool operator, for Greenidge’s pro rata contribution of computing power to the mining pool operator for the successful solution of the current algorithm. Providing computing power in digital asset transaction verification services is an output of Greenidge’s ordinary activities. The provision of providing such computing power is the only performance obligation in Greenidge’s contracts with mining pool operators. The cryptocurrency that Greenidge receives as transaction consideration is noncash consideration, which Greenidge measures at fair value on the date received, which is not materially different than the fair value at the contract inception or the time Greenidge has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and Greenidge receives confirmation of the consideration it will receive, at which time revenue is recognized. Pool fees paid by miners to pooling operators are based on a fixed percentage of the theoretical bitcoin block reward and network transaction fees received by miners. Pooling fees are netted against daily bitcoin payouts. Greenidge does not expect any material future changes in pool fee percentages paid to pooling operators, however as pools become more competitive, these fees may trend lower over time. Fair value of the cryptocurrency award received is determined using the quoted price on Greenidge’s primary exchange of the related cryptocurrency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, Greenidge may be required to change its policies, which could have an effect on the Company’s condensed consolidated financial position and results of operations. Power and capacity revenue Greenidge recognizes power revenue at a point in time, when the electricity is delivered to the NYISO and its performance obligation is met. Greenidge recognizes revenue on capacity agreements over the life of the contract as its series of performance obligations are met as capacity to provide power is maintained. Sales tax, value-added tax, and other taxes Greenidge collects concurrent with revenue-producing activities are excluded from revenue. Incidental contract costs that are not material in the context of the delivery of goods and services are recognized as expense. There is no significant financing component in these transactions. Services and other revenue Services revenue is primarily comprised of fees for customer support and technology support services provided by Greenidge’s wholly owned subsidiary, Support. Support’s service programs are designed for enterprise clients, business and professional services clients, as well as the consumer, and include customer service, sales support, and technical support, including computer and mobile device set-up, set-up, Support offers customer support, technical support, and technology services to large corporations, business and professional services organizations and consumers, directly and through its partners (which include communications providers, retailers, technology companies and others) and, to a lesser degree, directly through its website. Support transacts with customers via reseller programs, referral programs and direct transactions. In reseller programs, the partner generally executes the financial transactions with the customer and pays a fee to Support, which is recognized as revenue when the service is delivered. In referral programs, Support transacts with the customer directly and pays a referral fee to the referring party. In direct transactions, Support sells directly to the customer at the retail price. The services described above include four types of offerings: • Time-Based Services—In connection with the provisions of certain services programs, fees are calculated based on contracted time-based rates with partners. For these programs, revenue is recognizes as services are performed, based on billable time of work delivered by technology professionals. These services programs also include performance standards, which may result in incentives or penalties, which are recognized as earned or incurred. • Tier-Based Services – In connection with the provisions of certain services programs, fees are calculated on partner subscription tiers based on number of subscribers. For these programs, revenue is recognized as services are performed, and are billed based on the tier level of number of subscribers supported by Support’s professional team. • Subscriptions—Customers purchase subscriptions or “service plans” under which certain services are provided over a fixed subscription period. Revenues for subscriptions are recognized ratably over the respective subscription periods. • Incident-Based Services—Customers purchase a discrete, one-time Partners and corporate customers are generally invoiced monthly. Fees from customers via referral programs and direct transactions are generally paid with a credit card at the time of sale. Revenue is recognized net of any applicable sales tax. Services revenue also includes fees from licensing of Support cloud-based software. In such arrangements, customers receive a right to use Support cloud applications in their own support organizations. Support licenses its cloud-based software using a software-as-a-service per-user Services and other revenue also includes, to a lesser extent, fees for end-user end-user 30-day end-user | |
Environmental Trust Liability | Environmental Trust Liability The Company owns and operates a landfill. As required by the New York State Department of Environmental Conservation (“NYSDEC”), landfills are required to fund a trust to cover closure costs and expenses after the landfill has stopped operating. The trust is designed %. In lieu of a trust, the Company has negotiated with its largest equity member to maintain a letter of credit guaranteeing the payment of the liability (see Note 8 In accordance with ASC 410-20, Asset Retirement Obligations of million million at September 30, 2021 and December 31, 2020, respectively. The letter of credit related to this liability was for million at September 30, 2021 (see Note 8). | Environmental Trust Liability The Company owns and operates a landfill. As required by the New York State Department of Environmental Conservation (“NYSDEC”), landfills are required to fund a trust to cover closure costs and expenses after the landfill has stopped operating. The trust is designed to provide funds for 30 years of expenses to maintain a landfill once it is full and has no further source of revenue or in case the owner is defunct and the NYSDEC has to operate the landfill. At December 31, 2020, the landfill is a fully permitted, operational landfill and also acts as a leachate treatment facility. An annual report is completed by a third-party engineering firm to provide environmental compliance and calculate combined closure and post-closure costs, discounted to current year dollars using a discount rate of 4.50%. In lieu of a trust, the Company has negotiated with its largest equity member to maintain a letter of credit guaranteeing the payment of the liability (see Note 5). In accordance with ASC 410-20, Asset Retirement Obligations |
Leases | Leases On January 1, 2021, the Company adopted ASC 842, Leases (“ASC 842”) Right-of-use In calculating the ROU asset and related lease liability, the Company elected to combine lease and non-lease ASC 842 requires the Company to recognize an ROU asset and a lease liability for all leases with terms greater than 12 months. The Company entered into two immaterial leases during the nine months ended September 30, 2021. The Company entered into a finance lease to finance the purchase of equipment on March 11, 2021, for which, the Company recorded an ROU asset of $1.4 million and a finance lease obligation of $1.2 million at the lease commencement date. The lease for this equipment ends August 31, 2022. The Company also entered into an operating lease for office space, for which the Company recorded an ROU asset and lease liability of $0.1 million. | |
Cryptocurrency Mining Cost of Revenue | Cryptocurrency Mining Cost of Revenue Cost of revenue—cryptocurrency mining consists primarily of natural gas, emissions, payroll and benefits and other direct production costs associated with the megawatts generated for the digital mining operation. Cost of revenue – cryptocurrency mining does not include depreciation and amortization. | |
Power and Capacity Cost of Revenue | Power and Capacity Cost of Revenue Cost of revenue—power and capacity consists primarily of natural gas, emissions, payroll and benefits and other direct production costs associated with the megawatts generated for the power produced by Greenidge and sold to the grid. Cost of revenue – power and capacity does not include depreciation and amortization. | |
Selling, General, and Administrative Expenses | Selling, General, and Administrative Expenses Selling, general and administrative expenses consist primarily of administrative payroll and benefits, business development costs, professional fees, and insurance. | |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for share-based payment awards exchanged for services at the estimated grant date fair value of the award. Stock options issued under the Company’s equity incentive plans are granted with an exercise price equal to no less than the market price of the Company’s stock at the date of grant and expire up to ten years from the date of the grants. These options generally vest on the grant date or over a three year period . The Company estimates the fair value of the stock options grants using the Black-Scholes-Merton option pricing model and the assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgement. Expected Term Expected Volatility Risk-Free Interest Rate zero-coupon Expected Dividend | |
Income Taxes | Income Taxes Prior to the formation of Greenidge on January 27, 2021, GGH was treated as a partnership for federal and state income tax purposes. Pursuant to this election, the profit or loss of GGH is reported in the individual income tax returns of the members. Therefore, no provision for Federal or State taxes has been made for the year ended December 31, 2020. Subsequent to the conversion of GGH to Greenidge, the Company calculates the provision for income taxes in accordance with ASC 740, Income Taxes. The current provision for income taxes represents actual or estimated amounts payable or refundable on tax return filings each year. Deferred tax assets and liabilities are recorded for the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying condensed consolidated balance sheets, and for operating loss and tax credit carryforwards. The change in deferred tax assets and liabilities for the period measures the deferred tax provision or benefit for the period. Effects of changes in enacted tax laws on deferred tax assets and liabilities are reflected as adjustments to the tax provision or benefit in the period of enactment. A valuation allowance may be provided to the extent management deems it is more likely than not that deferred tax assets will not be realized. The ultimate realization of net deferred tax assets is dependent upon the generation of future taxable income, in the appropriate taxing jurisdictions, during the periods in which temporary differences, net operating losses and tax credits become realizable. Management believes that it is more likely than not that the Company will realize the benefits of these temporary differences and operating loss and tax credit carryforwards, net of valuation allowances. The Company recognizes and measures tax positions taken or expected to be taken in its tax return based on their technical merit and assesses the likelihood that the positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. Interest and penalties on tax liabilities, if any, would be recorded as incurred in interest expense and other expenses, respectively. | Income Taxes The Company is treated as a partnership for federal and state income tax purposes. Pursuant to this election, the profit or loss of the Company is reported in the individual income tax returns of the members. Therefore, no provision for Federal or State taxes has been made for the years ended December 31, 2020 or 2019. The Company recognizes and measures tax positions taken or expected to be taken in its tax return based on their technical merit and assess the likelihood that the positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. Interest and penalties on tax liabilities, if any, would be recorded as incurred in interest expense and other expenses, respectively. |
Earnings Per Share | Earnings Per Share Basic net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share attributable to common shareholders is calculated by dividing net income attributable to common shareholders by the diluted weighted average number of common shares outstanding for the period. Basic and diluted income per common share is not provided for the three and nine months ended September 30, 2020 as the Company was organized as an LLC during that period. The Company used the weighted average method in determining earnings per share in consideration of the conversion of participating securities to common shares due to the reorganization in January 2021. | |
Accounts Receivable | Accounts Receivable The Company provides credit in the normal course of business to its power customer, NYISO. The Company performs periodic credit evaluations of its customer’s financial condition and generally does not require collateral. NYISO makes payments, depending on the type of revenue, within seven days of usage or seven days of month end. Based on the reliability of customer payments, the Company has determined that an allowance for doubtful accounts was not required at December 31, 2020 or 2019. Accounts are written off when collection efforts have been exhausted. No accounts were written off as uncollectible during the years ended December 31, 2020 or 2019. | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of demand deposit accounts and other short-term investments which mature within three months from the date of purchase. The Company maintains its cash in bank deposit accounts which may, at times, exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk with respect to cash and cash equivalents. | |
Digital Assets | Digital Assets Digital assets, primarily consisting of bitcoin, are included in current assets in the accompanying condensed consolidated balance sheets. Digital assets are classified as indefinite-lived intangible assets in accordance with ASC 350, Intangibles – Goodwill and Other, and are accounted for in connection with Greenidge’s revenue recognition policy disclosed below. Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. The Company determines the fair value of its digital assets on a nonrecurring basis in accordance with ASC 820, Fair Value Measurement, based on quoted prices on the active exchange(s) that the Company has determined is its principal market for bitcoin (Level 1 inputs). the Company performs an analysis each period to identify whether events or changes in circumstances, principally decreases in the quoted prices on active exchanges, indicate that it is more likely than not that its digital assets are impaired. Events or circumstances that may trigger an impairment assessment other than annually include but are not limited to material changes in the regulatory environment, potential technological changes in digital assets, and prolonged or material changes in the price of bitcoin below the carrying cost of the asset. Upon determining an impairment exists, the amount of the impairment is determined as the amount by which the carrying amount exceeds its fair value, which is measured using the quoted price of the digital asset at the time its fair value is being measured. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. The Company assessed its digital assets for impairment, and determined that no material impairments existed during the nine months ended September 30, 2021 and 2020. As of September 30, 2021, the Company’s digital assets consisted of approximately 29.8 bitcoins compared to 26.1 bitcoins as of December 31, 2020. Digital assets awarded to the Company through its mining activities are included within the operating activities in the accompanying condensed consolidated statements of cash flows. The Company accounts for its gains or losses in accordance with the last in, first out (“LIFO”) method of accounting. Gains and losses from the sales of digital assets are recorded in other income (expense) in the accompanying condensed consolidated statements of operations. | Digital Assets Digital assets are included in current assets in the accompanying consolidated balance sheets. Digital assets are classified as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other Digital assets awarded to the Company through its mining activities are included within the operating activities in the accompanying consolidated statements of cash flows. The Company accounts for its gains or losses in accordance with the last in, first out (“LIFO”) method of accounting. Gains and losses from the sales of digital assets are recorded in other income (expense) in the accompanying consolidated statements of operations. While management uses available information to evaluate and recognize impairment losses on digital assets, further reductions in the carrying amounts may be necessary based on the changes in the underlying value of Bitcoin. |
Fuel Deposits | Fuel Deposits The Company is required to maintain a cash deposit ($100 minimum) with a third-party broker for gas purchases and collection of revenues on the Company’s behalf. | |
Project Deposit | Project Deposit The Company has a contract to connect its power generation facility with the New York State Transmission System, which requires the Company to make a deposit for work to commence. The balance of the deposit was $74 and $510 as of December 31, 2020 and 2019, respectively. The project was substantially completed in 2020 with the remaining deposit balance expected to be refunded in 2021. | |
Miner Equipment Deposits | Miner Equipment Deposits The Company enters into agreements to purchase miner equipment, computer hardware designed for use in the cryptocurrency mining process that often require deposits before the equipment is received and placed into service. | |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which generally range from three to thirty-nine years. Major additions and betterments are capitalized, while repairs and maintenance are charged to operations as incurred. Upon retirement or sale of an asset, the cost and related accumulated depreciation are eliminated and any resulting gain or loss is included within other income (expense) in the accompanying consolidated statements of operations. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses its long-lived assets for impairment whenever events or circumstances indicate the carrying amounts of long-lived assets may not be recoverable by comparing the expected undiscounted future cash flows of the assets with the respective carrying amounts as of the date of assessment. Should aggregate expected future cash flows be less than the carrying value, an impairment would be recognized, measured as the difference between the carrying value and the fair value of the asset. During the years ended December 31, 2020 and 2019, the Company did not record any impairment charges. | |
Natural Gas Payable | Natural Gas Payable The Company purchases natural gas through a third-party broker on a daily basis. This amount represents the unpaid balance due to the broker at December 31, 2020 and 2019. | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers • Step 1: Identify the contract, or contracts, with the customer; • Step 2: Identify the performance obligations in the contract; • Step 3: Determine the transaction price; • Step 4: Allocate the transaction price to the performance obligations in the contract; and • Step 5: Recognize revenue when, or as, the Company satisfies a performance obligation. In order to identify the performance obligations in a contract with a customer, the Company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following: • Variable consideration; • Constraining estimates of variable consideration; • The existence of a significant financing component in the contract; • Noncash consideration; and • Consideration payable to a customer. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. Cryptocurrency mining and related activities revenue The Company has entered into digital asset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time by either party and the Company’s enforceable right to compensation only begins when the Company provides computing power to the mining pool operator. In exchange for providing computing power, the Company is entitled to a theoretical fractional share of the cryptocurrency award the mining pool operator receives (less pool fees to the mining pool operator which are recorded as a reduction of revenue) for successfully adding a block to the blockchain. The Company’s fractional share is based on their share of the theoretical global mining rewards based on its percentage contribution to the bitcoin mining network. Providing computing power in digital asset transaction verification services is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contracts with mining pool operators. The transaction consideration the Company receives, if any, is noncash consideration, which the Company measures at fair value on the date received, which is not materially different than the fair value at the contract inception or the time the Company has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. Fair value of the cryptocurrency award received is determined using the quoted price on the Company’s primary exchange of the related cryptocurrency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the Financial Accounting Standards Board (“FASB”), the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial position and results of operations. Hosting revenue The Company provides energized space and operating and maintenance services to third-party mining companies who locate their mining hardware at its power plant facility. The Company accounts for these agreements as a single performance obligation for services being delivered in a series with delivery being measured by daily successful operation of the mining hardware. As such, the Company recognizes revenue over the life of the contract as its series of performance obligations are met. Hosting contracts typically require payment in advance of the service delivery. The Company recognizes such payments as deferred revenue until its performance obligations are met, at which time the Company recognizes the revenue. The Company does not have any significant warranty obligations. Hosting revenue is included in cryptocurrency mining and related activities revenue in the consolidated statements of operations. Hashrate revenue From time to time, the Company sells its computing power at a fixed price over a period of time ranging from 30 to 180 days. The Company accounts for these agreements as a single performance obligation for services being delivered in a series with delivery being measured by daily delivery of the computing power. As such, the Company recognizes revenue over the life of the contract as its series of performance obligations are met. The Company does not have any significant warranty obligations. Hashrate revenue is included in cryptocurrency mining and related activities revenue in the consolidated statements of operations. Power and capacity revenue The Company recognizes power revenue at a point in time, when the electricity is delivered to the NYISO and its performance obligation is met. The Company recognizes revenue on capacity agreements over the life of the contract as its series of performance obligations are met as capacity to provide power is maintained. Sales tax, value-added tax, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. Incidental contract costs that are not material in the context of the delivery of goods and services are recognized as expense. There is no significant financing component in these transactions. | |
Advertising and Promotion Costs | Advertising and Promotion Costs Advertising and promotional costs are expensed as incurred and totaled $117 for the year ended December 31, 2020. The Company did not incur any advertising and promotional costs for the year ended December 31, 2019. | |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year’s presentation. | |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, 2019-12”), 2019-12 Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. | Recent Accounting Pronouncements Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) 2019-12 Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Recent Accounting Pronouncements, Adopted | Recent Accounting Pronouncements, Adopted In February 2016, the FASB issued ASU No. 2016-02, right-of-use liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. | Recent Accounting Pronouncements, Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers expects to be entitled in exchange for those goods or services. Revenue recognition under the new standard did not have a material impact on the consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows. |
Cost of Services and Other Revenue | Cost of Services and Other Revenue Cost of revenue—services and other consists primarily of compensation costs and contractor expenses associated with people providing services, as well as the technology, telecommunications and other personnel-related expenses related to the delivery of services. To a lesser extent, cost of services and other revenue includes third-party royalty fees for end-user |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Asset Retirement Obligations | The following table reflects the details of the asset retirement obligations included in the consolidated balance sheets at December 31, 2020 and 2019: Coal Ash Pond Balance at January 1, 2019 $ — Initial recognition 2,135 Balance at December 31, 2019 2,135 Accretion 142 Balance at December 31, 2020 $ 2,277 |
MERGER WITH SUPPORT (Tables)
MERGER WITH SUPPORT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Summary of The Estimated Value of The Consideration Paid | The following table summarizes the estimated value of the consideration paid (purchase price): $ in thousands, except per share amount Support common stock exchanged 25,745,487 Exchange ratio 0.115 Greenidge Class A common stock exchanged 2,960,731 Greenidge common stock value per share $ 31.71 Consideration paid $ 93,885 |
Summary of The Preliminary Allocation of The Purchase Price to The Identifiable Assets Acquired and Liabilities | The following table summarizes the preliminary allocation of the purchase price to the identifiable assets acquired and liabilities assumed by Greenridge, with the excess of the purchase price over the fair value of Support’s net assets recorded as goodwill. As previously discussed, allocations of the acquisition price are based on preliminary estimates and assumptions and the final determination of the fair values may result in further adjustments to the values presented in the following table: $ in thousands Cash and cash equivalents $ 27,113 Short-term investments 496 Accounts receivable 5,383 Prepaid expenses and other current assets 713 Property and equipment 1,349 Other long-term assets 383 Accounts payable (117 ) Accrued expenses and other current liabilities (3,328 ) Other long-term liabilities (242 ) Intangible assets 22,690 Deferred tax liability (6,904 ) Goodwill 46,349 Total consideration $ 93,885 |
Summary of Identifiable Intangible Assets Determined on a Preliminary Basis | Following is a summary of identifiable intangible assets determined on a preliminary basis and is subject to adjustment during the measurement period, which could be material: $ in thousands Identifiable Intangible Asset Useful Life Fair Value Customer relationships 5 years $ 21,600 Tradename 10 1,090 Total identifiable intangible assets $ 22,690 |
Summary of Supplemental Pro Forma Financial Information | The unaudited pro forma financial information reflects certain adjustments related to the acquisition, such as: • Conforming the accounting policies of Support to those applied by Greenidge; • Recording certain incremental expenses resulting from purchase accounting adjustments, such as amortization expense in connection with fair value adjustments to intangible assets; and • Recording the related tax effects of pro forma adjustments. Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2021 2020 2021 2020 Revenues $ 42,448 $ 16,461 $ 87,830 $ 47,258 Net (loss) income $ (11,783 ) $ (1,646 ) $ (12,602 ) $ (6,274 ) |
MERGER AND OTHER COSTS (Tables)
MERGER AND OTHER COSTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Merger and other costs details | The following table provides details of Merger and other costs for the three and nine months ended September 30, 2021: Three Months Ended Nine Months Ended $ in thousands September 30, 2021 September 30, 2021 Merger related costs: Investor fee paid in common stock (Note 9) $ 17,826 $ 17,826 Advisor fee paid in warrants (Note 9) 8,779 8,779 Professional and other fees 1,140 1,434 Total Merger related costs 27,745 28,039 Public company filing related costs 2,102 3,056 Total Merger and other costs $ 29,847 $ 31,095 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Information about Reportable Segment | The table below presents information about reportable segments for the three and nine months ended September 30, 2021 and 2020, respectively: Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2021 2020 2021 2020 Revenues: Cryptocurrency Mining and Power Generation $ 34,233 $ 6,123 $ 61,472 $ 13,937 Support Services 1,521 — 1,521 — Total Revenues $ 35,754 $ 6,123 $ 62,993 $ 13,937 Segment Adjusted EBITDA Cryptocurrency Mining and Power Generation $ 20,973 $ 775 $ 33,464 $ 1,301 Support Services 204 — 204 — Total Segments Adjusted EBITDA $ 21,177 $ 775 $ 33,668 $ 1,301 |
Schedule of Reconciliation of Total of Segments Adjusted EBITDA to Consolidated Loss Before Income Taxes | In addition, the table below provides a reconciliation of the total of the segments Adjusted EBITDA to the consolidated Loss before income taxes: Three Months Ended September 30, Nine Months Ended September 30, $ in thousands 2021 2020 2021 2020 Total Segments Adjusted EBITDA $ 21,177 $ 775 $ 33,668 $ 1,301 Depreciation and amortization (2,667 ) (1,064 ) (5,531 ) (3,227 ) Stock-based compensation (411 ) — (1,474 ) — Merger and other costs (29,847 ) — (31,095 ) — Expansion costs (128 ) — (128 ) — Interest expense, net (1,009 ) — (1,399 ) (540 ) Consolidated loss before income taxes $ (12,885 ) $ (289 ) $ (5,959 ) $ (2,466 ) |
Summary of Reconciliation to Consolidated Total Assets of Company | The table below provides segment assets, which exclude cash and cash $ in thousands September 30, 2021 Cryptocurrency Mining and Power Generation 129,802 Support Services 76,864 Total segment assets 206,666 Cash and cash equivalents 51,149 Short term investments 496 Total assets $ 258,311 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Summary of Property and Equipment, Net | Property and equipment, net consisted of the following at September 30, 2021 and December 31, 2020: $ in thousands Estimated Useful September 30, 2021 December 31, 2020 Plant infrastructure 15 - 39 years $ 34,273 $ 33,944 Miners 5 years 36,779 10,236 Miner facility infrastructure 15 years 14,787 8,791 Land N/A 300 300 Equipment 5 years 948 211 Software 3 years 1,130 66 Coal ash impoundment 4 years 2,135 2,135 Construction in process N/A 6,869 3,989 Miner deposits N/A 38,467 5,959 135,688 65,631 Less: Accumulated depreciation (14,156 ) (8,986 ) $ 121,532 $ 56,645 | Property and equipment, net consisted of the following at December 31: Estimated Useful 2020 2019 Plant infrastructure 15 – $ 33,944 $ 31,387 Miners 5 years $ 10,236 — Miner Facility 15 years 8,791 — Land N/A 300 300 Equipment 5 years 211 206 Software 3 years 66 66 Coal ash impoundment 4 years 2,135 2,135 Construction in process N/A 3,989 7,392 59,672 41,486 Less: Accumulated depreciation (8,986 ) (4,422 ) $ 50,686 $ 37,064 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Summary of Notes Payable | The following table provides information on the equipment financing agreements: $ in thousands Interest Rate Initial Financing Balance as of: Note Loan Date Maturity Date September 30, 2021 December 31, 2020 A December 2020 June 2022 17.0 % $ 4,482 $ 1,992 $ 4,233 B December 2020 June 2022 17.0 % 428 166 404 C March 2021 November 2022 17.0 % 2,229 1,733 — D April 2021 December 2022 17.0 % 4,012 3,343 — E—H May 2021 October 2023 15.0 % 12,080 11,751 — I July 2021 January 2023 17.0 % 4,457 3,962 — J July 2021 March 2023 17.0 % 2,701 2,415 — 25,363 4,637 Less: Current portion (17,994 ) (3,273 ) $ 7,369 $ 1,364 | As of December 31, 2019, there were no notes payable outstanding. Notes payable consisted of the following at December 31, 2020: Miner equipment note A $ 4,233 Miner equipment note B 404 4,637 Less: Current portion (3,273 ) $ 1,364 |
Summary of Future Maturities of Notes Payable | Future maturities of notes payable are as follows for the years ending December 31: 2021 $ 3,273 2022 1,364 $ 4,637 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Summary of notes payable to related party | Notes payable to related party consisted of the following: $ in thousands September 30, 2021 December 31, 2020 Note payable to a related party due June 2021 $ — $ 2,382 Note payable to a related party due May 2021 — 1,191 $ — $ 3,573 Less: Current Portion $ — $ (3,573 ) $ — $ — | Notes payable to related party consisted of the following at December 31: 2020 2019 Note payable to a related party with interest at 8% per annum. All outstanding principal and accrued but unpaid interest is due June 2021. $ 2,382 $ — Note payable to a related party with interest at 8% per annum. All outstanding principal and accrued but unpaid interest is due May 2021. 1,191 — Notes payable converted into Senior Priority Units—Tranche 1 (see Note 6). — 12,700 3,573 12,700 Less: Current portion (3,573 ) (5,000 ) $ — $ 7,700 |
EQUITY BASED COMPENSATION (Tabl
EQUITY BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of unvested restricted common stock unit awards activity | The Company’s unvested restricted common stock unit awards activity for the nine months ended September 30, 2021 is summarized below: RSUs Weighted Average Fair Value Unvested at December 31, 2020 — $ — Granted 616,920 6.25 Unvested at September 616,920 6.25 |
Schedule of stock options activity | The Company’s stock options activity for the nine months ended September 30, 2021 is summarized below: Options Weighted Average Per Share Weighted Average Aggregate Outstanding at December 31, 2020 — $ — — Granted 753,968 6.07 Exercised (160,000 ) 6.25 Forfeited (10,888 ) 6.25 Outstanding at September 30, 2020 583,080 $ 6.01 9.43 $ 11,387 Exercisable as of September 30, 2021 257,484 $ 5.80 9.64 $ 5,083 |
Schedule of weighted average assumptions relating to the valuation of stock options | The weighted average assumptions relating to the valuation of stock options granted for the nine months ended September 30, 2021 were as follows: Weighted Average fair value of grants $ 1.54 Expected volatility 35 % Expected term (years) 4.5 Risk-free interest rate 0.4 % Expected dividend yield 0.0 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic earnings and diluted per share of common stock | The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings and diluted per share of common stock. Basic earnings per share is applicable only for the period from January 29, 2021 through September 30, 2021, which is the period following the reorganization GGH into Greenidge (see Note 2) and presents the period that the Company had outstanding common stock. $ in thousands, except per share amounts Three Months Nine Months Numerator Net loss $ (7,896 ) $ (3,099 ) Less: Net income attributable to the member units units before the reorganization (648 ) (648 ) Net loss attributable to Greenidge $ (8,544 ) $ (3,747 ) Denominator Basic weighted average shares outstanding 30,116 28,949 Dilutive effect of equity awards — — Dilutive effect of convertible preferred stock — — Diluted weighted average shares outstanding 30,116 28,949 Loss per share Basic $ (0.28 ) $ (0.13 ) Diluted $ (0.28 ) $ (0.13 ) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of noncash investing and financing activities | Greenidge had the following noncash investing and financing activities during the nine months ended September 30, 2021: $ in thousands Shares issued to Support.com shareholders upon Merger (Notes 3 and 9) $ 93,885 Stock issued to purchase miners $ 991 Contribution of Preferred Units, Senior Priority Units, and notes payable to related party for Greenidge class B common stock (Note 9) $ 72,891 Issuance of shares for investor fee associated with successful completion of Merger (Notes 4 and 9) $ 17,826 Issuance of warrants to advisor in connection with completion of Merger (Note 4 and 9) $ 8,779 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS - Additional Information (Detail) - Greenidge Blocker Corp [Member] - USD ($) $ in Thousands | Jul. 01, 2020 | Oct. 02, 2019 |
Preferred unit, issued | 15,000 | |
Preferred unit, issuance value | $ 16,300 | $ 15,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | ||||
Beginning Balance | $ 2,277 | $ 2,135 | $ 2,135 | $ 0 |
Initial recognition | 2,135 | |||
Accretion | 103 | $ 108 | 142 | |
Ending Balance | $ 2,400 | $ 2,277 | $ 2,135 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) | Mar. 11, 2021USD ($) | Jan. 31, 2021shares | Sep. 30, 2021USD ($)Bitcoins | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Bitcoins | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Bitcoins | Dec. 31, 2019USD ($)Bitcoins | Jul. 01, 2020USD ($) | Oct. 02, 2019USD ($)shares | Dec. 31, 2018USD ($) |
Accounts receivable write off as uncollectible | $ 0 | $ 0 | |||||||||
Impairment Loss | 100,000 | ||||||||||
Cash deposit | 100,000 | ||||||||||
Deposit Contracts, Assets | $ 74,000 | 510,000 | |||||||||
Percentage of annual emission expense and credit in the following year | 50.00% | 50.00% | 50.00% | ||||||||
Asset retirement obligation | $ 2,400,000 | $ 2,400,000 | $ 2,277,000 | 2,135,000 | $ 0 | ||||||
Discount rate on asset retirement obligations | 5.00% | 5.00% | 5.00% | ||||||||
Discount rate on environmental trust liability during current period | 4.50% | 4.50% | 4.50% | ||||||||
Environmental trust liability | $ 4,994,000 | $ 4,994,000 | $ 4,927,000 | 4,697,000 | |||||||
Provision for income taxes | $ (4,989,000) | $ 0 | (2,860,000) | $ 0 | 0 | 0 | |||||
Advertising and promotional costs | 117,000 | $ 0 | |||||||||
Asset retirement obligation expense | $ 103,000 | 108,000 | $ 142,000 | ||||||||
Share based compensation arrangement,expiration period | 10 years | ||||||||||
Vesting period | 3 years | ||||||||||
Number of digital assets | Bitcoins | 29.8 | 29.8 | 26.1 | 38.9 | |||||||
Right-of-use assets, net | $ 1,369,000 | $ 1,369,000 | $ 0 | ||||||||
Equipment [Member] | |||||||||||
Right-of-use assets, net | $ 1,400,000 | ||||||||||
Finance lease obligation | $ 1,200,000 | ||||||||||
Lease end date | Aug. 31, 2022 | ||||||||||
Greenidge Blocker Corp [Member] | |||||||||||
Preferred unit, issued | shares | 15,000 | ||||||||||
Preferred unit, issuance value | $ 16,300,000 | $ 15,000,000 | |||||||||
Impairment Of Long Lived Assets | |||||||||||
Impairment Loss | 0 | $ 0 | |||||||||
Digital Assets | |||||||||||
Impairment Loss | $ 100,000 | ||||||||||
Hash Rate Revenue [Member] | Maximum [Member] | |||||||||||
Revenue term period | 180 days | ||||||||||
Hash Rate Revenue [Member] | Minimum [Member] | |||||||||||
Revenue term period | 30 days | ||||||||||
Letter of Credit [Member] | |||||||||||
Long-term Line of Credit | 5,000 | 5,000 | $ 4,938,000 | 4,938,000 | |||||||
GGHI Class B Common Stock [Member] | |||||||||||
Shares issued in exchange for acquisition of ownership interests | shares | 28,000,000 | ||||||||||
Cost of Sales [Member] | |||||||||||
Emissions expense | 860,000 | $ 1,674,000 | 468,000 | $ 941,000 | $ 1,738,000 | $ 206,000 | |||||
Purchase of voluntary carbon offset credits | $ 700,000 | ||||||||||
Other Income And Expense [Member] | |||||||||||
Asset retirement obligation expense | $ 100 |
MERGER WITH SUPPORT - Summary o
MERGER WITH SUPPORT - Summary of The Estimated Value of The Consideration Paid (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021USD ($)$ / sharesshares | Sep. 13, 2021$ / shares | Dec. 31, 2020$ / shares | |
Business Acquisition [Line Items] | |||
Common stock, Par value | $ 0.0001 | $ 0.0001 | |
Greenidge Generation Holdings Inc [Member] | |||
Business Acquisition [Line Items] | |||
Common stock exchanged amount | shares | 25,745,487 | ||
Right to receive common stock exchange ratio | 0.115 | ||
Common stock, Par value | $ 31.71 | ||
Consideration paid | $ | $ 93,885 | ||
Common Class A [Member] | |||
Business Acquisition [Line Items] | |||
Right to receive common stock exchange ratio | 0.115 | ||
Common stock, Par value | $ 0.0001 | $ 0.0001 | |
Consideration paid | $ | $ 93,900 | ||
Common Class A [Member] | Greenidge Generation Holdings Inc [Member] | |||
Business Acquisition [Line Items] | |||
Common stock exchanged amount | shares | 2,960,731 |
MERGER WITH SUPPORT - Summary_2
MERGER WITH SUPPORT - Summary of The Preliminary Allocation of The Purchase Price to The Identifiable Assets Acquired and (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Business Combinations [Abstract] | ||
Cash and cash equivalents | $ 27,113 | |
Short-term investments | 496 | |
Accounts receivable | 5,383 | |
Prepaid expenses and other current assets | 713 | |
Property and equipment | 1,349 | |
Other long-term assets | 383 | |
Accounts payable | (117) | |
Accrued expenses and other current liabilities | (3,328) | |
Other long-term liabilities | (242) | |
Intangible assets | 22,690 | |
Deferred tax liability | (6,904) | |
Goodwill | 46,349 | $ 0 |
Total consideration | $ 93,885 |
MERGER WITH SUPPORT - Summary_3
MERGER WITH SUPPORT - Summary of Identifiable Intangible Assets Determined on a Preliminary Basis (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Business Acquisition [Line Items] | |
Fair value of intangible assets | $ 22,690 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Estimated useful life | 5 years |
Fair value of intangible assets | $ 21,600 |
Trade Names [Member] | |
Business Acquisition [Line Items] | |
Estimated useful life | 10 years |
Fair value of intangible assets | $ 1,090 |
MERGER WITH SUPPORT - Summary_4
MERGER WITH SUPPORT - Summary of Supplemental Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||||||||
Net (loss) income | $ (7,896) | $ (289) | $ 4,797 | $ (2,177) | $ (3,099) | $ (2,466) | $ (3,290) | $ (8,475) |
Greenidge Generation Holdings Inc [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenues | 42,448 | 16,461 | 87,830 | 47,258 | ||||
Net (loss) income | $ (11,783) | $ (1,646) | $ (12,602) | $ (6,274) |
MERGER WITH SUPPORT - Additiona
MERGER WITH SUPPORT - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2021USD ($)d$ / shares | Sep. 13, 2021$ / shares | Dec. 31, 2020$ / shares | |
Business Acquisition [Line Items] | ||||
Common stock, Par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Amortization expense | $ 200 | |||
Business acquisition proforma costs | $ 30,000 | 32,400 | ||
Transaction costs after tax | $ 26,900 | |||
Common Class A [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock, Par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Right to receive common stock exchange ratio | 0.115 | 0.115 | ||
Consideration paid | $ 93,900 | $ 93,900 | ||
Greenidge Generation Holdings Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock, Par value | $ / shares | $ 31.71 | $ 31.71 | ||
Right to receive common stock exchange ratio | 0.115 | 0.115 | ||
Trading days | d | 10 | |||
Consideration paid | $ 93,885 | $ 93,885 | ||
Revenue | 1,500 | $ 1,500 | ||
Transaction costs after tax | $ 24,500 |
MERGER AND OTHER COSTS - Detail
MERGER AND OTHER COSTS - Details of Merger and Other Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Merger Related Costs [Abstract] | ||||
Investor fee paid in common stock (Note 9) shares | $ 17,826 | $ 17,826 | ||
Advisor fee paid in warrants (Note 9) | 8,779 | 8,779 | ||
Professional and other fees | 1,140 | 1,434 | ||
Total Merger related costs | 27,745 | 28,039 | ||
Public company filing related costs | 2,102 | 3,056 | ||
Total Merger and other costs | $ 29,847 | $ 0 | $ 31,095 | $ 0 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segment | 2 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Information about Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Total revenue | $ 35,754 | $ 6,123 | $ 62,993 | $ 13,937 | $ 20,114 | $ 4,439 |
Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 35,754 | 6,123 | 62,993 | 13,937 | ||
Total Segments Adjusted EBITDA | 21,177 | 775 | 33,668 | 1,301 | ||
Cryptocurrency Mining [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 31,156 | 3,043 | 54,217 | 8,673 | $ 13,016 | $ 410 |
Cryptocurrency Mining [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 34,233 | 6,123 | 61,472 | 13,937 | ||
Total Segments Adjusted EBITDA | 20,973 | 775 | 33,464 | 1,301 | ||
Support Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenue | 1,521 | 1,521 | ||||
Support Services [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Segments Adjusted EBITDA | $ 204 | $ 204 |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Reconciliation of Total of Segments Adjusted EBITDA to Consolidated Loss Before Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Merger and other costs | $ 29,847 | $ 0 | $ 31,095 | $ 0 | |
Interest expense, net | 1,009 | 0 | 1,377 | 0 | $ 91 |
Consolidated loss before income taxes | (12,885) | (289) | (5,959) | (2,466) | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total Segments Adjusted EBITDA | 21,177 | 775 | 33,668 | 1,301 | |
Depreciation and amortization | (2,667) | (1,064) | (5,531) | (3,227) | |
Stock-based compensation | (411) | (1,474) | |||
Merger and other costs | (29,847) | (31,095) | |||
Expansion costs | (128) | (128) | |||
Interest expense, net | (1,009) | (1,399) | (540) | ||
Consolidated loss before income taxes | $ (12,885) | $ (289) | $ (5,959) | $ (2,466) |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Reconciliation to Consolidated Total Assets of Company (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Cash and cash equivalents | $ 51,149 | $ 5,052 | $ 3,236 | $ 11,750 | $ 705 |
Short term investments | 496 | 0 | |||
Total assets | 258,311 | $ 64,567 | $ 56,844 | ||
Operating Segments [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Total assets | 206,666 | ||||
Cryptocurrency Mining [Member] | Operating Segments [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Total assets | 129,802 | ||||
Support Services [Member] | Operating Segments [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Total assets | $ 76,864 |
PROPERTY AND EQUIPMENT - Summar
PROPERTY AND EQUIPMENT - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 59,672 | $ 41,486 | |
Property, Plant and Equipment, Gross | $ 135,688 | 65,631 | |
Less: Accumulated depreciation | (14,156) | (8,986) | (4,422) |
Total | 50,686 | 37,064 | |
Property and equipment, net | 121,532 | 56,645 | |
Plant infrastructure [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 34,273 | $ 33,944 | 31,387 |
Plant infrastructure [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 15 years | 15 years | |
Plant infrastructure [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Lives | 39 years | 39 years | |
Miners [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 36,779 | $ 10,236 | |
Estimated Useful Lives | 5 years | 5 years | |
Miner facility infrastructure [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 14,787 | $ 8,791 | |
Estimated Useful Lives | 15 years | 15 years | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 300 | $ 300 | 300 |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 948 | $ 211 | 206 |
Estimated Useful Lives | 5 years | 5 years | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,130 | $ 66 | 66 |
Estimated Useful Lives | 3 years | 3 years | |
Coal ash impoundment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,135 | $ 2,135 | 2,135 |
Estimated Useful Lives | 4 years | 4 years | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 6,869 | $ 3,989 | $ 7,392 |
Miner deposits [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 38,467 | $ 5,959 |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||||||
Depreciation expense | $ 2,700 | $ 1,100 | $ 5,500 | $ 3,200 | $ 4,564 | $ 1,679 |
NOTES PAYABLE - Summary of Note
NOTES PAYABLE - Summary of Notes Payable (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Less: Current portion | $ (17,994) | $ (3,273) | $ 0 |
Total | 7,369 | 1,364 | $ 0 |
Equipment Finance Agreement [Member] | |||
Notes Payable | 25,363 | 4,637 | |
Less: Current portion | (17,994) | (3,273) | |
Total | 7,369 | 1,364 | |
Miner Equipment Note A [Member] | Equipment Finance Agreement [Member] | |||
Notes Payable | $ 1,992 | $ 4,233 | |
Loan Date | December 2020 | ||
Maturity Date | June 2022 | July 2022 | |
Interest Rate | 17.00% | 17.00% | |
Initial Financing | $ 4,482 | $ 4,482 | |
Miner Equipment Note B [Member] | Equipment Finance Agreement [Member] | |||
Notes Payable | $ 166 | $ 404 | |
Loan Date | December 2020 | ||
Maturity Date | June 2022 | June 2022 | |
Interest Rate | 17.00% | 17.00% | |
Initial Financing | $ 428 | $ 428 | |
Miner Equipment Note C [Member] | Equipment Finance Agreement [Member] | |||
Notes Payable | $ 1,733 | ||
Loan Date | March 2021 | ||
Maturity Date | November 2022 | ||
Interest Rate | 17.00% | ||
Initial Financing | $ 2,229 | ||
Miner Equipment Note D [Member] | Equipment Finance Agreement [Member] | |||
Notes Payable | $ 3,343 | ||
Loan Date | April 2021 | ||
Maturity Date | December 2022 | ||
Interest Rate | 17.00% | ||
Initial Financing | $ 4,012 | ||
Miner Equipment Note E And H [Member] | Equipment Finance Agreement [Member] | |||
Notes Payable | $ 11,751 | ||
Loan Date | May 2021 | ||
Maturity Date | October 2023 | ||
Interest Rate | 15.00% | ||
Initial Financing | $ 12,080 | ||
Miner Equipment Note I [Member] | Equipment Finance Agreement [Member] | |||
Notes Payable | $ 3,962 | ||
Loan Date | July 2021 | ||
Maturity Date | January 2023 | ||
Interest Rate | 17.00% | ||
Initial Financing | $ 4,457 | ||
Miner Equipment Note J [Member] | Equipment Finance Agreement [Member] | |||
Notes Payable | $ 2,415 | ||
Loan Date | July 2021 | ||
Maturity Date | March 2023 | ||
Interest Rate | 17.00% | ||
Initial Financing | $ 2,701 |
NOTES PAYABLE - Summary of Futu
NOTES PAYABLE - Summary of Future Maturities of Notes Payable (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Maturities of Long-term Debt [Abstract] | |
2021 | $ 3,273 |
2022 | 1,364 |
Total | $ 4,637 |
NOTES PAYABLE - Additional Info
NOTES PAYABLE - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Principal borrowings | $ 4,637 | ||
Notes Payable [Member] | |||
Interest expense | $ 1,000 | $ 1,400 | 91 |
Equipment Finance Agreement [Member] | |||
Principal borrowings | 10,698 | ||
Equipment Finance Agreement [Member] | Miner Equipment Note A [Member] | |||
Debt instrument, face amount | $ 4,482 | $ 4,482 | $ 4,482 |
Interest rate per annum | 17.00% | 17.00% | 17.00% |
Risk premium fee | $ 482 | ||
Principal payments | 222 | ||
Risk premium payments | $ 27 | ||
Maturity date | June 2022 | July 2022 | |
Equipment Finance Agreement [Member] | Miner Equipment Note B [Member] | |||
Debt instrument, face amount | $ 428 | $ 428 | $ 428 |
Interest rate per annum | 17.00% | 17.00% | 17.00% |
Principal payments | $ 24 | ||
Maturity date | June 2022 | June 2022 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Detail) - USD ($) | Mar. 19, 2021 | Jul. 01, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 02, 2019 |
Related Party Transaction [Line Items] | ||||||
Related party loan outstanding balance | $ 0 | $ 3,573,000 | $ 12,700,000 | |||
Notes Payable Interest Rate At 8 With Due June 2021 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party loan outstanding balance | 0 | 2,382,000 | 0 | |||
Notes Payable Interest Rate At 8 With Due May 2021 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party loan outstanding balance | 0 | 1,191,000 | 0 | |||
Greenidge Blocker Corp [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Preferred unit, issued | 15,000 | |||||
Preferred unit, issuance value | $ 16,300,000 | $ 15,000,000 | ||||
Letter of Credit [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Net proceeds from new line of credit | $ 10,000 | |||||
Line of credit | 5,000 | 4,938,000 | 4,938,000 | |||
Letter of Credit [Member] | Empire Pipeline Incorporated [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Repayments of lines of credit | 3,600 | |||||
Line of credit | 3,630,000 | 3,630,000 | ||||
Atlas [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Partners capital account, Acquisitions | $ 16,277,000 | |||||
Limited guaranty payment | 1,000,000 | |||||
Exposure under guarantee | 0 | |||||
Atlas [Member] | Letter of Credit [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Repayments of lines of credit | 184,000 | $ 206,000 | ||||
Promissory Note Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Interest expense | $ 500,000 | $ 20,000 | ||||
Promissory Note Agreement [Member] | Atlas [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% | |||
Interest expense | $ 553,000 | $ 673,000 | ||||
Promissory Note Agreement [Member] | Atlas [Member] | Notes Payable Interest Rate At 8 With Due June 2021 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Maturity date | June 2021 | |||||
Related party loan outstanding balance | $ 2,400 | |||||
Promissory Note Agreement [Member] | Atlas [Member] | Notes Payable Interest Rate At 8 With Due May 2021 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Maturity date | May 2021 | |||||
Related party loan outstanding balance | $ 1,200 |
RELATED PARTY TRANSACTIONS - Su
RELATED PARTY TRANSACTIONS - Summary of Notes Payable to Related Party (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Notes payable | $ 0 | $ 3,573 | $ 12,700 |
Less: Current Portion | 0 | (3,573) | (5,000) |
Notes payable to related party | 0 | 0 | 7,700 |
Note payable to a related party due June 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 0 | 2,382 | 0 |
Note payable to a related party due May 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 0 | 1,191 | 0 |
Notes payable converted into Senior Priority Units—Tranche 1 [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 0 | $ 12,700 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Detail) | Sep. 15, 2021USD ($) | Jan. 31, 2021USD ($)shares | Oct. 31, 2018shares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Tranches$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | Sep. 13, 2021$ / sharesshares | Jan. 01, 2021$ / shares |
Class of Stock [Line Items] | |||||||||||||||
Capital units, authorized | 2,400,000,000 | ||||||||||||||
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 | 0 | ||||||||||||
Common stock, par or stated value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 0 | 20,000,000 | |||||||||||
Preferred stock, par or stated value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||
Shares issued, Price per share | $ / shares | $ 31.71 | $ 31.71 | |||||||||||||
Common stock, shares issued | 38,667,705 | 38,667,705 | 0 | ||||||||||||
Common stock, shares outstanding | 38,667,705 | 38,667,705 | 0 | ||||||||||||
Common units, voting rights | Common unit holders are entitled to one vote per common unit, except for such votes or consents that are reserved solely for the holders of preferred units | ||||||||||||||
Shares based compensation, expenses | $ | $ 0.4 | $ 0 | $ 1.5 | $ 0 | |||||||||||
Common units, issued | 750 | 750 | |||||||||||||
Common units, outstanding | 750 | 750 | |||||||||||||
Preferred units, voting rights | Preferred unit holders are entitled to one vote per preferred unit | ||||||||||||||
Number of tranche | Tranches | 2 | ||||||||||||||
Partners capital account, exchange and conversions | $ | $ 13,926,000 | ||||||||||||||
Senior priority units, voting rights | Senior Priority Units had no voting rights. | Senior Priority Units have no voting rights | |||||||||||||
Preferred Stock Shares Outstanding | 0 | 0 | 0 | ||||||||||||
Common Stock Value | $ | $ 4,000 | $ 4,000 | $ 0 | ||||||||||||
Payments Of Stock Issuance Costs | $ | $ 2,296,000 | $ 0 | |||||||||||||
Shares Issued Price Per Share | $ / shares | $ 31.71 | $ 31.71 | |||||||||||||
Greenidge Generation Holdings Inc Member [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred units, voting rights | one vote per preferred unit | ||||||||||||||
Maximum [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Maximum Class a Common Stock and class b Common Stock Shares In Excess of the Exchange Cap | 19.99% | ||||||||||||||
Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common units, voting rights | Common unit holders are entitled to one vote per common unit, except for such votes or consents that are reserved solely for the holders of preferred units. | ||||||||||||||
Resticted Common Stock Unit | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares based payment arrangement, equity instrument other than option, grants in period | 616,920 | ||||||||||||||
Shares based payment arrangement, equity instrument other than option, non vested units | 616,920 | 616,920 | 0 | ||||||||||||
Equity Incentive Plan | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares based payment arrangement, equity instrument other than option, grants in period | 750 | ||||||||||||||
Shares based payment arrangement, vesting rights percentage | 100.00% | ||||||||||||||
Equity Incentive Plan | Resticted Common Stock Unit | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares based payment arrangement, equity instrument other than option, grants in period | 750 | ||||||||||||||
Shares based payment arrangement, equity instrument other than option, vested in period | 730 | 600 | |||||||||||||
Shares based payment arrangement, equity instrument other than option, non vested units | 20 | 150 | |||||||||||||
Shares based compensation, expenses | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||
Greenidge Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of shares after split | (28,000,000) | ||||||||||||||
Stockholders equity note stock split | 4-for-1 | ||||||||||||||
Limited Liability Company LLC Common Units | Equity Incentive Plan | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares based payment arrangement, shares purchased for award | 1,250 | ||||||||||||||
Limited Liability Company LLC Senior Priority Unit | Tranche One | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Partners capital account, exchange and conversions | $ | $ 13.9 | 13,926,000 | |||||||||||||
Limited Liability Company LLC Senior Priority Unit | Tranche Two | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Partners capital account, acquisitions | $ | $ 16.3 | $ 16,276,000 | |||||||||||||
Private Placement | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Proceeds from issuance of private placement | $ | $ 37,100,000 | ||||||||||||||
Private Placement | Common Stock Purchase Agreement and Registration Rights Agreement [Member] | Greenidge Generation Holdings Inc Member [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Proceeds from common stock purchase agreement | $ | $ 200,000,000 | ||||||||||||||
Private Placement | Common Stock Purchase Agreement and Registration Rights Agreement [Member] | Maximum [Member] | Greenidge Generation Holdings Inc Member [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Discount Rate | 6.00% | ||||||||||||||
Private Placement | Common Stock Purchase Agreement and Registration Rights Agreement [Member] | Minimum Member | Greenidge Generation Holdings Inc Member [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Discount Rate | 5.00% | ||||||||||||||
Common Class A | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common stock, par or stated value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||
Common stock, shares issued | 9,627,705 | 9,627,705 | |||||||||||||
Common stock, shares outstanding | 9,627,705 | 9,627,705 | |||||||||||||
Stock issued during period shares, Conversion of convertible securities | 5,760,000 | ||||||||||||||
Additional Common Stock Shares Issued | 562,174 | ||||||||||||||
Additional Common Stock Value Issued | $ | $ 17,800,000 | $ 17,800,000 | |||||||||||||
Stock Owned Percentage | 16.60% | ||||||||||||||
Warrant to Purchase of Common Stock | 344,800 | ||||||||||||||
Class of Warrant or Right Exercise Price of Warrants or Rights1 | $ / shares | $ 6.25 | $ 6.25 | |||||||||||||
Proceeds from Issuance of warrants | $ | $ 8,800,000 | ||||||||||||||
Common Class A | Maximum [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Investors obligation to purchase own issued and outstanding shares | 4.99% | ||||||||||||||
Common Class A | Merger Agreements | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common stock, shares issued | 2,960,731 | 2,960,731 | |||||||||||||
Common Stock Value | $ | $ 93,900,000 | $ 93,900,000 | |||||||||||||
Payments Of Stock Issuance Costs | $ | $ 91,600,000 | ||||||||||||||
Common Class A | Common Stock Purchase Agreement and Registration Rights Agreement [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Proceeds from issuance of private placement | $ | $ 500,000,000 | ||||||||||||||
Common Class B | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common stock, shares authorized | 600,000,000 | ||||||||||||||
Common stock, par or stated value per share | $ / shares | $ 0.0001 | ||||||||||||||
Common Stock, voting rights | ten votes | ||||||||||||||
Common stock, shares issued | 29,040,000 | 29,040,000 | |||||||||||||
Common stock, shares outstanding | 29,040,000 | 29,040,000 | |||||||||||||
Stock issued during period shares, Conversion of convertible securities | 720,000 | ||||||||||||||
Series A Redeemable Convertible Preferred Stock | Private Placement | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Stock issued during period, Shares | 1,620,000 | ||||||||||||||
Shares issued, Price per share | $ / shares | $ 25 | ||||||||||||||
Shares Issued Price Per Share | $ / shares | $ 25 | ||||||||||||||
GGHI Class B Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares issued in exchange for acquisition of ownership interests | 28,000,000 | ||||||||||||||
GGHI Class B Common Stock | Greenidge Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares issued in exchange for acquisition of ownership interests | 7,000,000 | ||||||||||||||
GGHI Class A Common Stock | Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common Stock, voting rights | one vote per share |
MEMBERS' EQUITY - Additional In
MEMBERS' EQUITY - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2018shares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Tranches$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | |
Common units, Authorized | 1,250 | ||||||||||
Preferred units, Authorized | 39,228 | ||||||||||
Senior priority units units, Authorized | 10,000 | ||||||||||
Common units, Voting rights | Common unit holders are entitled to one vote per common unit, except for such votes or consents that are reserved solely for the holders of preferred units | ||||||||||
Shares based compensation, Expenses | $ | $ 0.4 | $ 0 | $ 1.5 | $ 0 | |||||||
Common units, Issued | 750 | 750 | |||||||||
Common units, Outstanding | 750 | 750 | |||||||||
Preferred units, Voting rights | Preferred unit holders are entitled to one vote per preferred unit | ||||||||||
Preferred units, Liquidation preference per unit | $ / shares | $ 1 | ||||||||||
Number of tranche | Tranches | 2 | ||||||||||
Partners capital account, Exchange and conversions | $ | $ 13,926,000 | ||||||||||
Senior priority units, Voting rights | Senior Priority Units had no voting rights. | Senior Priority Units have no voting rights | |||||||||
Cumulatively accrued rate of return on the investment | 8.00% | ||||||||||
Senior priority units, Liquidation preference value | $ | $ 14,498,000 | ||||||||||
Limited Liability Company LLC Senior Priority Unit [Member] | Tranche One [Member] | |||||||||||
Partners capital account, Exchange and conversions | $ | $ 13.9 | 13,926,000 | |||||||||
Limited Liability Company LLC Senior Priority Unit [Member] | Tranche Two [Member] | |||||||||||
Partners capital account, Acquisitions | $ | $ 16.3 | $ 16,276,000 | |||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||
Shares based payment arrangement, Equity instrument other than option, Grants in period | 616,920 | ||||||||||
Shares based payment arrangement, Equity instrument other than option, Non vested units | 616,920 | 616,920 | 0 | ||||||||
Equity Incentive Plan [Member] | |||||||||||
Shares based payment arrangement, Equity instrument other than option, Grants in period | 750 | ||||||||||
Shares based payment arrangement, Vesting rights percentage | 100.00% | ||||||||||
Equity Incentive Plan [Member] | Limited Liability Company LLC Common Units [Member] | |||||||||||
Shares based payment arrangement, Shares purchased for award | 1,250 | ||||||||||
Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||
Shares based payment arrangement, Equity instrument other than option, Grants in period | 750 | ||||||||||
Shares based payment arrangement, Equity instrument other than option, Vested in period | 730 | 600 | |||||||||
Shares based payment arrangement, Equity instrument other than option, Non vested units | 20 | 150 | |||||||||
Shares based compensation, Expenses | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLAN - Additio
EMPLOYEE BENEFIT PLAN - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Matching contributions recognized as expense | $ 19 | $ 48 |
Non elective contributions to the plan | $ 0 | $ 0 |
First Salary Deferral Contribution [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer matching contribution percent of match | 100.00% | |
Employer matching contribution percent of employees gross pay | 3.00% | |
Second Salary Deferral Contribution [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer matching contribution percent of match | 50.00% | |
Employer matching contribution percent of employees gross pay | 2.00% |
EQUITY BASED COMPENSATION - Sch
EQUITY BASED COMPENSATION - Schedule of Unvested Restricted Common Stock Unit Awards Activity (Detail) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | $ 1.54 |
Resctricted Common Stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested at December 31, 2020 | shares | 0 |
Granted | shares | 616,920 |
Unvested at September 30, 2021 | shares | 616,920 |
Unvested at December 31, 2020 | $ 0 |
Granted | 6.25 |
Unvested at September 30, 2021 | $ 6.25 |
EQUITY BASED COMPENSATION - S_2
EQUITY BASED COMPENSATION - Schedule of Stock Options Activity (Detail) - Common Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at December 31, 2020 | 0 | |
Granted | 753,968 | |
Exercised | (160,000) | |
Forfeited | (10,888) | |
Outstanding at September 30, 2020 | 583,080 | |
Options vested and exercisable as of June 30, 2021 | 257,484 | |
Outstanding at December 31, 2020 | $ 0 | |
Granted | 6.07 | |
Exercised | 6.25 | |
Forfeited | 6.25 | |
Outstanding at September 30, 2020 | $ 6.01 | |
Options vested and exercisable as of September 30, 2021 | $ 5.80 | |
Weighted Average Remaining Contractual Life (in years) | 9 years 5 months 4 days | |
Options vested and exercisable as of September 30, 2021 | 9 years 7 months 20 days | |
Aggregate Intrinsic Value | $ 11,387 | |
Options vested and exercisable as of September 30, 2021 | $ 5,083 |
EQUITY BASED COMPENSATION - Add
EQUITY BASED COMPENSATION - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Feb. 28, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Vesting period | 3 years | ||||
Stock-based compensation expense | $ 0.4 | $ 0 | $ 1.5 | $ 0 | |
2021 Equity Plan [Member] | |||||
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Common stock reserved for issuance | 3,831,112 | ||||
Resticted Common Stock Unit | |||||
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Number of shares, granted | 616,920 | ||||
Fair market value of the awards granted | $ 3.9 | ||||
Unrecognized compensation cost | $ 3.1 | $ 3.1 | |||
Weighted average vesting period | 2 years 4 months 24 days | ||||
Resticted Common Stock Unit | 2021 Equity Plan [Member] | |||||
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Number of shares, granted | 0 | 616,920 | |||
Vesting period | 3 years | ||||
Common Stock Options [Member] | |||||
Disclosure Of Compensation Related Costs Sharebased Payments [Line Items] | |||||
Unrecognized compensation cost | $ 0.4 | $ 0.4 | |||
Weighted average vesting period | 1 year 2 months 12 days | ||||
Fair market value of award, Options granted | $ 1.2 |
EQUITY BASED COMPENSATION - S_3
EQUITY BASED COMPENSATION - Schedule of Weighted Average Assumptions Relating to the Valuation of Stock Options (Detail) | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average fair value of grants | $ 1.54 |
Expected volatility | 35.00% |
Expected term (years) | 4 years 6 months |
Risk-free interest rate | 0.40% |
Expected dividend yield | 0.00% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||||||
Effective income tax rate as a percentage | 38.70% | 48.00% | ||||
Income tax provision or benefit | $ (4,989) | $ 0 | $ (2,860) | $ 0 | $ 0 | $ 0 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common stock oustanding | 38,667,705 | 38,667,705 | 0 |
Antidilutive securities excluded from computation of earnings per share amount | 0 | 0 | |
Common Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common stock oustanding | 0 | 0 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Basic Earnings and Diluted Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator | ||||||||
Net income (loss) | $ (7,896) | $ (289) | $ 4,797 | $ (2,177) | $ (3,099) | $ (2,466) | $ (3,290) | $ (8,475) |
Net Income Loss Attributable To The Member Units Before The Reorganization | (648) | (648) | ||||||
Net income attributable to Greenidge | $ (8,544) | $ (3,747) | ||||||
Denominator | ||||||||
Basic weighted average shares outstanding | 30,116 | 28,949 | ||||||
Dilutive effect of equity awards | 0 | 0 | ||||||
Dilutive effect of convertible preferred stock | 0 | 0 | ||||||
Diluted weighted average shares outstanding | 30,116 | 28,949 | ||||||
Earnings per share | ||||||||
Basic | $ (0.28) | $ (0.13) | ||||||
Diluted | $ (0.28) | $ (0.13) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020USD ($)decatherms | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Purchase Obligation | $ 142,200 | $ 11,910,000 | $ 7,860,000 | |
Long term purchase commitment, Amount | $ 15,000,000 | 38,500,000 | $ 5,959,000 | $ 6,337 |
Contractual obligation, Per month amount | $ 158,000 | $ 158,000 | ||
Contract terms | The contract ends in September 2030 and may be terminated by either party with 12 months’ notice after the initial 10-year period. | September 2030 | ||
Notice period for contract termination | 12 months | 12 months | ||
Initial period after which notice period for contract termination occurs | 10 years | 10 years | ||
Long-term purchase commitment, Minimum quantity required | decatherms | 15,000 | |||
Committed secured financing on equipment amount | $ 5,200 |
CONCENTRATIONS - Additional Inf
CONCENTRATIONS - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sales Revenue Net [Member] | Customer Concentration Risk [Member] | One Major Customer [Member] | ||||||
Concentration risk percentage | 9.00% | 50.00% | 11.00% | 38.00% | 35.70% | 90.80% |
Sales Revenue Net [Member] | Customer Concentration Risk [Member] | Operator Customer [Member] | ||||||
Concentration risk percentage | 57.00% | |||||
Sales Revenue Net [Member] | Customer Concentration Risk [Member] | Operator Customer one [Member] | ||||||
Concentration risk percentage | 62.00% | 0.00% | 37.00% | 0.00% | ||
Sales Revenue Net [Member] | Customer Concentration Risk [Member] | Operator Customer Two [Member] | ||||||
Concentration risk percentage | 24.00% | 50.00% | 46.00% | 59.00% | ||
Sales Revenue Net [Member] | Supplier Concentration Risk [Member] | One Major Customer [Member] | ||||||
Concentration risk percentage | 35.00% | 55.00% | 57.00% | 57.00% | ||
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | One Major Customer [Member] | ||||||
Concentration risk percentage | 56.80% | 55.60% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Major Customer [Member] | ||||||
Concentration risk percentage | 6.00% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Operator Customer [Member] | ||||||
Concentration risk percentage | 100.00% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Operator Customer one [Member] | ||||||
Concentration risk percentage | 60.00% | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Operator Customer Two [Member] | ||||||
Concentration risk percentage | 25.00% |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Summary of noncash investing and financing activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |||
Shares issued to Support.com shareholders upon Merger | $ 93,885 | ||
Stock issued to purchase miners | $ 991 | 991 | |
Contribution of Preferred Units, Senior Priority Units, and Notes Payable to Related Party for Greenidge Class B common stock | 72,891 | ||
Issuance of shares for investor fee associated with successful completion of Merger | 17,826 | ||
Issuance of warrants to advisor in connection with completion of Merger | $ 8,779 | $ 8,779 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) | Nov. 12, 2021USD ($) | Oct. 13, 2021USD ($) | Sep. 15, 2021USD ($) | Oct. 31, 2021USD ($)ft²a | May 31, 2021USD ($) | Mar. 31, 2021USD ($)shares | Jan. 31, 2021USD ($)$ / sharesshares | Sep. 30, 2021$ / sharesshares | Oct. 06, 2021shares | Sep. 13, 2021$ / sharesshares | Feb. 28, 2021shares | Jan. 01, 2021$ / shares | Dec. 31, 2020$ / sharesshares |
Subsequent Event [Line Items] | |||||||||||||
Common stock, Shares authorized | 3,000,000,000 | 0 | |||||||||||
Common stock, Par or stated value per share | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||
Preferred stock, Shares authorized | 20,000,000 | 20,000,000 | 0 | ||||||||||
Preferred stock, Par or stated value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||
Shares issued, Price per share | $ / shares | $ 31.71 | ||||||||||||
Net Proceeds After Discounts and Commissions, Before Expenses and Payment of Structuring Fee | $ | $ 53,300,000 | ||||||||||||
Land Purchase Description | a Delaware corporation, pursuant to which Greenidge has agreed to purchase from the seller two parcels of land containing approximately 175 acres of land located in Spartanburg, South Carolina, including over 750,000 square feet of industrial buildings (the “Property”) | ||||||||||||
Area Of Land | ft² | 750,000 | ||||||||||||
Common stock, shares issued | 38,667,705 | 0 | |||||||||||
Land [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Area Of Land | a | 175 | ||||||||||||
Greenidge Generation Holdings LLC [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Registered public offering | $ | $ 55,200,000 | ||||||||||||
Senior Notes Due | 8.50% | ||||||||||||
Common Class A [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Common stock, Par or stated value per share | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||
Stock issued during period shares, Conversion of convertible securities | 5,760,000 | ||||||||||||
Common stock, shares issued | 9,627,705 | ||||||||||||
Common Class B [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Common stock, Shares authorized | 600,000,000 | ||||||||||||
Common stock, Par or stated value per share | $ / shares | $ 0.0001 | ||||||||||||
Stock issued during period shares, Conversion of convertible securities | 720,000 | ||||||||||||
Common stock, shares issued | 29,040,000 | ||||||||||||
Private Placement [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Proceeds from issuance of private placement | $ | $ 37,100,000 | ||||||||||||
Private Placement [Member] | Series A Redeemable Convertible Preferred Stock [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Shares issued, Price per share | $ / shares | $ 25 | ||||||||||||
Greenidge Generation Holdings Inc [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Common stock, Shares authorized | 200,000,000 | ||||||||||||
Common stock, Par or stated value per share | $ / shares | $ 0.1000 | ||||||||||||
Preferred stock, Shares authorized | 20,000,000 | ||||||||||||
Preferred stock, Par or stated value per share | $ / shares | $ 0.1000 | ||||||||||||
Common Stock Purchase Agreement and Registration Rights Agreement [Member] | Common Class A [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Proceeds from issuance of private placement | $ | $ 500,000,000 | ||||||||||||
Proceeds from common stock purchase agreement | $ | $ 500,000,000 | ||||||||||||
LSC Agreement [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Escrow Deposit | $ | $ 2,500,000 | ||||||||||||
Series of Individually Immaterial Asset Acquisitions [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Purchase Price of the Property | $ | $ 15,000,000 | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Proceeds from potential investment | $ | $ 10,000,000,000 | ||||||||||||
Subsequent Event [Member] | Equity Incentive Plan [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt instrument, Face amount | $ | $ 13,947,000 | ||||||||||||
Investment, Interest rate | 15.00% | ||||||||||||
Subsequent Event [Member] | Equity Incentive Plan [Member] | Notes Receivable [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Receivables, Payment terms | The notes require variable amounts of interest only payments for the first six to eight months of each agreement and variable payments of monthly principal and interest through the maturity date in October 2023 | ||||||||||||
Subsequent Event [Member] | Greenidge Generation Holdings Inc [Member] | Common Class A [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock issued during period shares, Stock split | (3,831,112) | ||||||||||||
Stock split ratio | 4 | ||||||||||||
Subsequent Event [Member] | Greenidge Generation Holdings Inc [Member] | Equity Incentive Plan [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Common stock reserved | 957,778 | ||||||||||||
Subsequent Event [Member] | Greenidge Generation Holdings Inc [Member] | Private Placement [Member] | Series A Redeemable Convertible Preferred Stock [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock issued during period shares, Conversion of convertible securities | 1,620,000 | ||||||||||||
Shares issued, Price per share | $ / shares | $ 25 | ||||||||||||
Proceeds from issuance of private placement | $ | $ 37,590,000 | ||||||||||||
Subsequent Event [Member] | Asset Contribution And Exchange Agreement [Member] | Greenidge Generation Holdings Inc [Member] | Common Class B [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock issued during period shares, Stock split | (28,000,000) | ||||||||||||
Stock split ratio | 4 | ||||||||||||
Stock issued during period shares, Conversion of convertible securities | 7,000,000 | ||||||||||||
Subsequent Event [Member] | Common Stock Purchase Agreement and Registration Rights Agreement [Member] | Common Class A [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Common stock, shares issued | 3,500,000 | ||||||||||||
Sale of stock | $ | $ 1,977,500,000 | ||||||||||||
Proceeds from sale of stock | $ | $ 47,900 |