Note 14. Related Party Transactions

Allocation of General Corporate Expenses

BitNile provides human resources, accounting, and other services to GWW. GWW obtained its business insurance under BitNile. The accompanying financial statements include allocations of these expenses. The allocation method calculates the appropriate share of overhead costs to GWW by using the GWW and its subsidiaries’ revenue as a percentage of total revenue of BitNile. The Company believes the allocation methodology used is reasonable and has been consistently applied, and results in an appropriate allocation of costs incurred. However, these allocations may not be indicative of the costs that would have been incurred had the Company been a stand-alone entity or of costs of future services. BitNile allocated these costs as follows (In thousands):

Net Transfers From BitNile

The GWW received funding from BitNile to cover any shortfalls on operating cash requirements. In addition to the allocation of general corporate expenses, GWW received $0.7 million and $5.0 million from BitNile for the nine months ended September 30, 2022 and 2021, respectively, and $0.3 million for the three months ended September 30, 2022 and 2021, which were included in Common Stock.

The Company also received $1.3 million and $2.5 million in advances during the three and nine months ended September 30, 2022 which are included in Short term advances, related party on the condensed consolidated balance sheets. As of September 30, 2022 and December 31, 2021, the Company has outstanding Short term advances, related party of $2.5 million and $0, respectively.