Cover
Cover - shares | 6 Months Ended | |
Dec. 31, 2023 | Feb. 09, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | INTEGRATED VENTURES, INC. | |
Entity Central Index Key | 0001520118 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Dec. 31, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Entity Common Stock Shares Outstanding | 5,064,492 | |
Document Quarterly Report | true | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Entity File Number | 000-55681 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 82-1725385 | |
Entity Address Address Line 1 | 18385 Route 287 | |
Entity Address City Or Town | Tioga | |
Entity Address State Or Province | PA | |
Entity Address Postal Zip Code | 16946 | |
City Area Code | 215 | |
Local Phone Number | 613-9898 | |
Security 12b Title | Common Stock, $0.001 par value | |
Trading Symbol | INTV |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets: | ||
Cash | $ 27,452 | $ 257,998 |
Prepaid expenses and other current assets | 4,215 | 7,165 |
Total current assets | 31,667 | 265,163 |
Non-current assets: | ||
Property and equipment, net of accumulated depreciation and amortization of $4,898,813 and $3,608,202 as of December 31, 2023 and June 30, 2023, respectively | 4,046,670 | 5,299,834 |
Digital currencies | 788,864 | 447,425 |
Deposits | 578,147 | 578,147 |
Total non-current assets | 5,413,681 | 6,325,406 |
Total assets | 5,445,348 | 6,590,569 |
Current liabilities: | ||
Accounts payable | 248,511 | 293,711 |
Accrued preferred stock dividends | 2,060,804 | 1,645,210 |
Accrued expenses | 117,243 | 121,243 |
Due to related party | 99,484 | 415,288 |
Notes payable in default, net of debt discount | 500,000 | 500,000 |
Total current liabilities | 3,026,042 | 2,975,452 |
Mezzanine: | ||
Commitments and contingencies | 0 | 0 |
Stockholders' equity: | ||
Common stock, $0.001 par value; (750,000,000 shares authorized; 5,064,492 and 2,864,492 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively) | 5,065 | 2,864 |
Additional paid in capital | 81,195,589 | 72,588,520 |
Accumulated deficit | (82,906,978) | (73,101,867) |
Total stockholders' deficit | (1,705,694) | (509,883) |
Total liabilities, mezzanine and stockholders' equity | 5,445,348 | 6,590,569 |
Series D Preferred Stock [Member] | ||
Mezzanine: | ||
Preferred stock, value | 3,000,000 | 3,000,000 |
Series A Preferred Stock [Member] | ||
Mezzanine: | ||
Preferred stock, value | 500 | 500 |
Series B Preferred Stock [Member] | ||
Mezzanine: | ||
Preferred stock, value | 130 | 100 |
Series C Preferred Stock [Member] | ||
Mezzanine: | ||
Preferred stock, value | $ 1,125,000 | $ 1,125,000 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Accumulated depreciation and amortization | $ 4,898,813 | $ 3,608,202 |
Stockholders' deficit | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 5,064,492 | 2,864,492 |
Common stock, shares outstanding | 5,064,492 | 2,864,492 |
Series D Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred stock, shares par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 4,000 | 4,000 |
Preferred stock, shares issued | 3,000 | 3,000 |
Preferred stock, shares outstanding | 3,000 | 3,000 |
Series A Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 500,000 | 500,000 |
Preferred stock, shares outstanding | 500,000 | 500,000 |
Series B Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 130,000 | 100,000 |
Preferred stock, shares outstanding | 130,000 | 100,000 |
Series C Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred stock, shares par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares issued | 1,125 | 1,125 |
Preferred stock, shares outstanding | 1,125 | 1,125 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue: | ||||
Cryptocurrency mining | $ 1,728,108 | $ 370,292 | $ 2,787,172 | $ 925,657 |
Total revenue, net | 1,728,108 | 370,292 | 2,787,172 | 925,657 |
Cost of revenues | 1,917,470 | 678,690 | 3,490,844 | 1,447,582 |
Gross profit (loss) | (189,362) | (308,398) | (703,672) | (521,925) |
Operating expenses: | ||||
General and administrative | 202,570 | 302,251 | 8,679,952 | 695,524 |
Loss on disposition of property and equipment | 121,670 | 0 | 121,670 | 46,715 |
Total operating expenses | 324,240 | 302,251 | 8,801,622 | 742,239 |
Income (loss) from operations | (513,602) | (610,649) | (9,505,294) | (1,264,164) |
Other income (expense): | ||||
Interest expense | (23,884) | (109,049) | (46,914) | (217,901) |
Realized gain (loss) on sale of digital currencies | 183,146 | (43,899) | 162,691 | (67,914) |
Total other income (expense) | 159,262 | (152,948) | 115,777 | (285,815) |
Income (loss) before income taxes | (354,340) | (763,597) | (9,389,517) | (1,549,979) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | (354,340) | (763,597) | (9,389,517) | (1,549,979) |
Dividends on Preferred Stock | (207,797) | (632,287) | (415,594) | (785,542) |
Deemed dividend | 0 | 0 | 0 | (162,037) |
Net income (loss) attributable to shareholders | $ (562,137) | $ (1,395,884) | $ (9,805,111) | $ (2,497,558) |
Net income (loss) per common share attributable to shareholders, basic | $ (0.13) | $ (0.70) | $ (2.60) | $ (1.32) |
Net income (loss) per common share attributable to shareholders, diluted | $ (0.13) | $ (0.70) | $ (2.60) | $ (1.32) |
Weighted average number of common shares outstanding, basic | 4,228,742 | 2,000,600 | 3,768,780 | 1,897,948 |
Weighted average number of common shares outstanding, diluted | 4,228,742 | 2,000,600 | 3,768,780 | 1,897,948 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) | Total | Series C, Preferred Stock | Series D, Preferred Stock | Series A, Preferred Stock | Series B, Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance, shares at Jun. 30, 2022 | 1,125 | 3,000 | 500,000 | 902,633 | 1,657,973 | |||
Balance, amount at Jun. 30, 2022 | $ 10,592,307 | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 903 | $ 1,658 | $ 56,781,410 | $ (46,192,164) |
Issuance of common stock for conversion of Series B preferred stock, shares | (190,000) | 152,000 | ||||||
Issuance of common stock for conversion of Series B preferred stock, amount | 0 | 0 | 0 | 0 | $ (190) | $ 152 | 38 | 0 |
Issuance of Series B preferred stock for related party compensation, shares | 50,000 | |||||||
Issuance of Series B preferred stock for related party compensation, amount | 207,500 | 0 | 0 | 0 | $ 50 | $ 0 | 207,450 | 0 |
Issuance of common shares for exercise of warrants, shares | 164,061 | |||||||
Issuance of common shares for exercise of warrants, amount | 0 | 0 | 0 | 0 | 0 | $ 164 | (164) | 0 |
Deemed dividend for warrant modification | 0 | 0 | 0 | 0 | 0 | 0 | 162,037 | (162,037) |
Preferred stock dividends | (153,255) | 0 | 0 | 0 | 0 | 0 | 0 | (153,255) |
Net loss | (786,382) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | (786,382) |
Balance, shares at Sep. 30, 2022 | 1,125 | 3,000 | 500,000 | 762,633 | 1,974,034 | |||
Balance, amount at Sep. 30, 2022 | 9,860,170 | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 763 | $ 1,974 | 57,150,771 | (47,293,838) |
Balance, shares at Jun. 30, 2022 | 1,125 | 3,000 | 500,000 | 902,633 | 1,657,973 | |||
Balance, amount at Jun. 30, 2022 | 10,592,307 | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 903 | $ 1,658 | 56,781,410 | (46,192,164) |
Deemed dividend for warrant modification | 162,037 | |||||||
Net loss | (1,549,979) | |||||||
Balance, shares at Dec. 31, 2022 | 1,125 | 3,000 | 500,000 | 812,633 | 2,005,368 | |||
Balance, amount at Dec. 31, 2022 | 8,609,286 | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 813 | $ 2,005 | 57,295,690 | (48,689,722) |
Balance, shares at Sep. 30, 2022 | 1,125 | 3,000 | 500,000 | 762,633 | 1,974,034 | |||
Balance, amount at Sep. 30, 2022 | 9,860,170 | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 763 | $ 1,974 | 57,150,771 | (47,293,838) |
Issuance of Series B preferred stock for related party compensation, shares | 50,000 | |||||||
Issuance of Series B preferred stock for related party compensation, amount | 145,000 | 0 | 0 | 0 | $ 50 | $ 0 | 144,950 | 0 |
Issuance of common shares for exercise of warrants, shares | 31,334 | |||||||
Issuance of common shares for exercise of warrants, amount | 0 | 0 | 0 | 0 | 0 | $ 31 | (31) | 0 |
Preferred stock dividends | (632,287) | 0 | 0 | 0 | 0 | 0 | 0 | (632,287) |
Net loss | (763,597) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | (763,597) |
Balance, shares at Dec. 31, 2022 | 1,125 | 3,000 | 500,000 | 812,633 | 2,005,368 | |||
Balance, amount at Dec. 31, 2022 | 8,609,286 | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 813 | $ 2,005 | 57,295,690 | (48,689,722) |
Balance, shares at Jun. 30, 2023 | 1,125 | 3,000 | 500,000 | 100,000 | 2,864,492 | |||
Balance, amount at Jun. 30, 2023 | (509,883) | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 100 | $ 2,864 | 72,588,520 | (73,101,867) |
Issuance of common stock for conversion of Series B preferred stock, shares | (11,355) | 1,135,500 | ||||||
Issuance of common stock for conversion of Series B preferred stock, amount | 0 | 0 | 0 | 0 | $ (11) | $ 1,136 | (1,125) | 0 |
Issuance of Series B preferred stock for related party compensation, shares | 50,000 | |||||||
Issuance of Series B preferred stock for related party compensation, amount | 8,300,000 | 0 | 0 | 0 | $ 50 | 0 | 8,299,950 | 0 |
Preferred stock dividends | (207,797) | 0 | 0 | 0 | 0 | 0 | 0 | (207,797) |
Net loss | (9,035,177) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | (9,035,177) |
Balance, shares at Sep. 30, 2023 | 1,125 | 3,000 | 500,000 | 138,645 | 3,999,992 | |||
Balance, amount at Sep. 30, 2023 | (1,452,857) | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 139 | $ 4,000 | 80,887,345 | (82,344,841) |
Balance, shares at Jun. 30, 2023 | 1,125 | 3,000 | 500,000 | 100,000 | 2,864,492 | |||
Balance, amount at Jun. 30, 2023 | (509,883) | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 100 | $ 2,864 | 72,588,520 | (73,101,867) |
Deemed dividend for warrant modification | 0 | |||||||
Net loss | (9,389,517) | |||||||
Balance, shares at Dec. 31, 2023 | 1,125 | 3,000 | 500,000 | 130,000 | 5,064,492 | |||
Balance, amount at Dec. 31, 2023 | (1,705,694) | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 130 | $ 5,065 | 81,195,589 | (82,906,978) |
Balance, shares at Sep. 30, 2023 | 1,125 | 3,000 | 500,000 | 138,645 | 3,999,992 | |||
Balance, amount at Sep. 30, 2023 | (1,452,857) | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 139 | $ 4,000 | 80,887,345 | (82,344,841) |
Issuance of common stock for conversion of Series B preferred stock, shares | (8,645) | 864,500 | ||||||
Issuance of common stock for conversion of Series B preferred stock, amount | 0 | 0 | 0 | 0 | $ (9) | $ 865 | (856) | 0 |
Preferred stock dividends | (207,797) | 0 | 0 | 0 | 0 | 0 | 0 | (207,797) |
Net loss | (354,340) | 0 | 0 | 0 | 0 | $ 0 | 0 | (354,340) |
Issuance of common shares for purchase of bitcoin miners, shares | 200,000 | |||||||
Issuance of common shares for purchase of bitcoin miners, amount | 309,300 | $ 0 | $ 0 | $ 0 | $ 0 | $ 200 | 309,100 | 0 |
Balance, shares at Dec. 31, 2023 | 1,125 | 3,000 | 500,000 | 130,000 | 5,064,492 | |||
Balance, amount at Dec. 31, 2023 | $ (1,705,694) | $ 1,125,000 | $ 3,000,000 | $ 500 | $ 130 | $ 5,065 | $ 81,195,589 | $ (82,906,978) |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (9,389,517) | $ (1,549,979) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,479,284 | 822,106 |
Stock-based compensation - related party | 8,300,000 | 352,500 |
Loss on disposition of property and equipment | 121,670 | 46,715 |
Amortization of debt discount | 0 | 105,928 |
Realized loss (gain) on sale of digital currencies | (162,691) | 67,914 |
Changes in operating assets and liabilities: | ||
Digital currencies | (2,753,408) | (935,221) |
Prepaid expenses and other current assets | 2,950 | (3,810) |
Deposits | 0 | (500,000) |
Accounts payable | (45,200) | 74,640 |
Accrued expenses | 46,000 | 111,776 |
Due to related party | 104,083 | 213,637 |
Net cash provided by (used in) operating activities | (2,296,829) | (1,193,794) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Equipment deposits | 0 | (32,514) |
Net proceeds from the sale of digital currencies | 2,403,748 | 1,021,232 |
Purchase of digital currencies | (237,195) | (198,313) |
Purchase of property and equipment | (1,740) | 0 |
Net cash provided by (used in) investing activities | 2,164,813 | 790,405 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of related party advance | (48,530) | 0 |
Repayment of accrued interest on note payable | (50,000) | 0 |
Net cash provided by (used in) financing activities | (98,530) | 0 |
Net increase (decrease) in cash | (230,546) | (403,389) |
Cash, cash equivalents, and restricted cash - beginning of period | 257,998 | 490,280 |
Cash, cash equivalents, and restricted cash - end of period | 27,452 | 86,891 |
Cash paid during the period for: | ||
Interest | 50,914 | 197 |
Income taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Equipment deposits transferred to property and equipment | 0 | 2,387,681 |
Common stock issued for purchase of bitcoin miners | 309,300 | 0 |
Accrued preferred stock dividends | 415,594 | 785,542 |
Conversion of Series B preferred stock for common stock | 2,001 | 19,000 |
Payment of amounts due to related party with digital currencies | 371,357 | 0 |
Purchase of property and equipment with digital currencies | 36,750 | 0 |
Common stock issued with warrants | 0 | 24,425 |
Deemed dividend for warrant modification | $ 0 | $ 162,037 |
ORGANIZATION BASIS OF PRESENTAT
ORGANIZATION BASIS OF PRESENTATION | 6 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION BASIS OF PRESENTATION | |
ORGANIZATION BASIS OF PRESENTATION | 1. ORGANIZATION BASIS OF PRESENTATION Organization Integrated Ventures, Inc. (the "Company," "we" or "our") was incorporated in the State of Nevada on March 22, 2011, under the name of Lightcollar, Inc. On March 20, 2015, the Company amended its articles of incorporation and changed its name from Lightcollar, Inc. to EMS Find, Inc. On May 30, 2017, Integrated Ventures, Inc. (“Integrated Ventures”), a Nevada corporation, was formed as a wholly owned subsidiary of the Company. Pursuant to an Agreement and Plan of Merger dated May 30, 2017, Integrated Ventures was merged into the Company, with the Company being the surviving corporation and changing its name to Integrated Ventures, Inc. The Company has discontinued its prior operations and changed its business focus from its prior technologies relating to the EMS Find platform to acquiring, launching, and operating companies in the cryptocurrency sector, mainly in digital currency mining, equipment manufacturing, and sales of branded mining rigs, as well as blockchain software development. The Company is developing and acquiring a diverse portfolio of digital currency assets and block chain technologies. Cryptocurrencies are a medium of exchange that uses decentralized control (a block chain) as opposed to a central bank to track and validate transactions. The Company is currently mining Bitcoin, whereby the Company earns revenue by solving “blocks” to be added to the block chain. The Company also purchases certain digital currencies for short-term investment purposes. On April 17, 2023, the Board of Directors of the Company approved a 1-for-125 reverse split of the Company’s common shares. The reverse split has been given retroactive effect in the financial statements for all periods presented. Basis of Presentation The accompanying unaudited financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("US GAAP") for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. The results of operations for the interim period ended December 31, 2023 shown in this report are not necessarily indicative of results to be expected for the full fiscal year ending June 30, 2024. In the opinion of the Company's management, the information contained herein reflects all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company's results of operations, financial position and cash flows. The unaudited interim financial statements should be read in conjunction with the audited financial statements in the Company's Annual Report on Form 10-K for the year ended June 30, 2023 filed on September 28, 2023 and Management's Discussion and Analysis of Financial Condition and Results of Operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies of the Company are disclosed in Notes to Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 filed on September 28, 2023. The following summary of significant accounting policies of the Company is presented to assist in understanding the Company’s interim financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Because of the use of estimates inherent in the financial reporting process, actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company maintains cash balances in non-interest-bearing accounts that at times may exceed federally insured limits. For the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The Company had no cash equivalents at December 31, 2023. Digital Currencies Digital currencies consist mainly of Bitcoin, generally received for the Company’s own account as compensation for cryptocurrency mining services, and other digital currencies purchased for short-term investment and trading purposes. Given that there is limited precedent regarding the classification and measurement of cryptocurrencies under current Generally Accepted Accounting Principles (“GAAP”), the Company has determined to account for these digital currencies as indefinite-lived intangible assets in accordance with Accounting Standards Codification ("ASC") No. 350, Intangibles – Goodwill and Other, for the period covered by this report and in future reports unless and until further guidance is issued by the Financial Accounting Standards Board (“FASB”). 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. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not than an impairment exists. If it is determined that it is more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. 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. Realized gains or losses on the sale of digital currencies are included in other income (expense) in the statements of operations. The Company had realized gain (losses) on sale of digital currencies of $183,146 and $(43,899) in the three months ended December 31, 2023 and 2022, respectively and of $162,691 and $(67,914) in the six months ended December 31, 2023 and 2022, respectively. Cryptocurrency mining revenues were $1,728,108 and $370,292 in the three months ended December 31, 2023 and 2022, respectively and $2,787,172 and $925,657 in the six months ended December 31, 2023 and 2022, respectively. Property and Equipment Property and equipment, consisting primarily of computer and other cryptocurrency mining equipment (transaction verification servers), is stated at the lower of cost or estimated realizable value and is depreciated when placed into service using the straight-line method over estimated useful lives. Management has assessed the basis of depreciation of these assets and believes they should be depreciated over a three-year period due to technological obsolescence reflecting rapid development of hardware that has faster processing capacity and other factors. Maintenance and repairs are expensed as incurred and improvements are capitalized. Gains or losses on the disposition of property and equipment are recorded upon disposal. During the six months ended December 31, 2023, the Company discontinued the use of damaged or non-serviceable mining equipment and wrote off its net book value of $121,670 to loss on disposition of property and equipment. During the six months ended December 31, 2022, the Company discontinued the use of damaged or non-serviceable mining equipment and wrote off its net book value of $46,715 to loss on disposition of property and equipment. Management has determined that the three-year diminishing value best reflects the current expected useful life of transaction verification servers. This assessment takes into consideration the availability of historical data and management’s expectations regarding the direction of the industry including potential changes in technology. Management will review this estimate annually and will revise such estimates as and when data becomes available. To the extent that any of the assumptions underlying management’s estimate of useful life of its transaction verification servers are subject to revision in a future reporting period, either as a result of changes in circumstances or through the availability of greater quantities of data, then the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets. Payments to equipment suppliers prior to shipment of the equipment are recorded as equipment deposits. Derivatives As of December 31, 2023, and June 30, 2023, the Company had no derivative liabilities. The Company evaluates its convertible debt, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for. The result of this accounting treatment is that under certain circumstances the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. If the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under this accounting standard are reclassified to liability at the fair value of the instrument on the reclassification date. Where the number of warrants or common shares to be issued under these agreements is indeterminate, the Company has concluded that the equity environment is tainted, and all additional warrants and convertible debt are included in the value of the derivatives. We estimate the fair value of the derivatives using, as applicable, either the Black-Scholes pricing model or multinomial lattice models that value the derivative liability based on a probability weighted discounted cash flow model using future projections of the various potential outcomes. We estimate the fair value of the derivative liabilities at the inception of the financial instruments, and, in the case of our convertible notes payable, at the date of conversions to equity and at each reporting date, recording a derivative liability, debt discount, additional paid-in capital and a gain or loss on change in derivative liabilities as applicable. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility, variable conversion prices based on market prices as defined in the respective agreements and probabilities of certain outcomes based on management projections. These inputs are subject to significant changes from period to period and to management’s judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material. Impairment of Long-Lived Assets All assets, including intangible assets subject to amortization, are reviewed for impairment when changes in circumstances indicate that the carrying amount of the asset may not be recoverable in accordance with ASC 350 and ASC 360. If the carrying amount of the asset exceeds the expected undiscounted cash flows of the asset, an impairment charge is recognized equal to the amount by which the carrying amount exceeds fair value or net realizable value. The testing of these intangibles under established guidelines for impairment requires significant use of judgment and assumptions. Changes in forecasted operations and other assumptions could materially affect the estimated fair values. Changes in business conditions could potentially require adjustments to these asset valuations. We reported no impairment expense for the three and six months ended December 31, 2023 and 2022. Mezzanine Series C and D preferred stock that contain certain default provisions requiring mandatory cash redemption that are outside the control of the Company are recorded as Mezzanine in the accompanying balance sheets. Stock-Based Compensation The Company accounts for all equity-based payments in accordance with ASC Topic 718, Compensation – Stock Compensation. The Company accounts for non-employee share-based awards based upon ASC 505-50, Equity-Based Payments to Non-Employees. Revenue Recognition We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers. This standard provides a single comprehensive model to be used in the accounting for revenue arising from contracts with customers. The standard’s stated core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, ASC 606 includes provisions within a five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when, or as, an entity satisfies a performance obligation. Our revenues consist of cryptocurrency mining revenues recognized in accordance with ASC 606 as discussed above. Amounts collected from customers prior to shipment of products are recorded as deferred revenue. The Company earns its cryptocurrency mining revenues by providing transaction verification services within the digital currency networks of cryptocurrencies, such as Bitcoin. The Company satisfies its performance obligation at the point in time that the Company is awarded a unit of digital currency through its participation in the applicable network and network participants benefit from the Company’s verification service. In consideration for these services, the Company receives digital currencies, net of applicable network fees, which are recorded as revenue using the closing U.S. dollar price of the related cryptocurrency on the date of receipt. Expenses associated with running the cryptocurrency mining operations, such as equipment depreciation, rent, operating supplies, rent, utilities and monitoring services are recorded as cost of revenues. There is currently no specific definitive guidance in GAAP or alternative accounting frameworks for the accounting for the production and mining of digital currencies and management has exercised significant judgment in determining appropriate accounting treatment for the recognition of revenue for mining of digital currencies. Management has examined various factors surrounding the substance of the Company’s operations and the guidance in ASC 606, including identifying the transaction price, when performance obligations are satisfied, and collectability is reasonably assured being the completion and addition of a block to a blockchain and the award of a unit of digital currency to the Company. In the event authoritative guidance is enacted by the FASB, the Company may be required to change its policies which could result in a change in the Company’s financial statements. Income Taxes The Company adopted the provisions of ASC 740-10, Accounting for Uncertain Income Tax Positions. The Company adopted ASC 740-10, Definition of Settlement in FASB Interpretation No. 48, Income (Loss) Per Share Basic net income or loss per share is calculated by dividing net income or loss by the weighted average number of common shares outstanding for the period. Diluted income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as “in-the-money” stock options and warrants using the treasury stock method, convertible debt, and convertible preferred stock, were exercised or converted into common stock. Equivalent shares are not utilized when the effect is anti-dilutive. For the three and six months ended December 31, 2023 and 2022, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share; therefore, basic net loss per share is the same as diluted net loss per share. Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets There were no other new accounting pronouncements issued or proposed by the FASB during the six months ended December 31, 2023 and through the date of filing this report which the Company believes will have a material impact on its financial statements. Reclassifications Certain amounts in the financial statements for prior year periods have been reclassified to conform to the presentation for the current year periods. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Dec. 31, 2023 | |
GOING CONCERN | |
GOING CONCERN | 3. GOING CONCERN Historically, the Company has reported recurring net losses from operations and used net cash in operating activities. As of December 31, 2023, the Company’s current liabilities exceeded its current assets by $2,994,375 and the Company had an accumulated deficit of $82,906,978. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The ability of the Company to reach and maintain a successful level of operations is dependent on the execution of management’s plans, which include the raising of capital through the debt and/or equity markets, until such time that funds provided by operations are sufficient to fund working capital requirements. If the Company were not to continue as a going concern, it would likely not be able to realize its assets at values comparable to the carrying value or the fair value estimates reflected in the balances set out in the preparation of the financial statements. There can be no assurances that the Company will be successful in attaining a profitable level of operations or in generating additional cash from the equity/debt markets or other sources fund its operations. The financial statements do not include any adjustments relating to the recoverability of assets and classification of assets and liabilities that might be necessary. Should the Company not be successful in its business plan or in obtaining the necessary financing to fund its operations, the Company would need to curtail certain or all operational activities and/or contemplate the sale of its assets, if necessary. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 4. PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of: December 31, 2023 June 30, 2023 Cryptocurrency mining equipment $ 8,705,472 $ 8,668,025 Furniture and equipment 240,011 240,011 Total 8,945,483 8,908,036 Less accumulated depreciation and amortization (4,898,813 ) (3,608,202 ) Net $ 4,046,670 $ 5,299,834 Depreciation and amortization expense, included in cost of revenues, for the three months ended December 31, 2023 and 2022 was $745,720 and $389,901, respectively and $1,479,284 and $822,106 for the six months ended December 31, 2023 and 2022, respectively. During the six months ended December 31, 2023 and 2022, we disposed of and wrote off non-serviceable, defective mining equipment with a net book value of $121,670 and $46,715, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 5. RELATED PARTY TRANSACTIONS We have one executive officer, Steve Rubakh, who is currently our only full-time employee and sole member of our Board of Directors. Mr. Rubakh is paid an annual salary established by the Board of Directors, cash bonuses as determined by the Board of Directors, and is issued shares of Series B preferred stock on a quarterly basis for additional compensation. The number and timing of Series B preferred shares issued to Mr. Rubakh is at the discretion of the Board of Directors. During the six months ended December 31, 2023, Mr. Rubakh’s annual salary was $250,000 ($62,500 quarterly). In addition, $100,000 of bonuses ($50,000 quarterly) were approved by the Board of Directors. Last, the Company issued to Mr. Rubakh 50,000 shares (during the three months ended September 30, 2023) of Series B convertible preferred stock valued on an “as converted to common” basis at $8,300,000, using the closing market price of the Company’s common stock. Each share of Series B preferred stock is convertible into 100 shares of the Company’s common stock. This non-cash, related party stock-based compensation is included in operating expenses in the accompanying statements of operations. During the six months ended December 31, 2022, Mr. Rubakh’s annual salary was $250,000 ($62,500 quarterly). In addition, $100,000 of bonuses ($50,000 quarterly) were approved by the Board of Directors. Last, the Company issued to Mr. Rubakh 100,000 shares (50,000 quarterly) of Series B convertible preferred stock valued on an “as converted to common” basis at $352,500, using the closing market price of the Company’s common stock. Each share of Series B preferred stock is convertible into 100 shares of the Company’s common stock. This non-cash, related party stock-based compensation is included in operating expenses in the accompanying statements of operations. Total compensation expense included in general and administrative expenses was $112,500 and $257,500 for the three months ended December 31, 2023 and 2022, respectively and $8,525,000 and $577,500 for the six months ended December 31, 2023 and 2022, respectively. Amounts due to related party, consisting of accrued salary to Mr. Rubakh, totaled $29,864, and $297,138 as of December 31, 2023 and June 30, 2023, respectively. In April 2022, Mr. Rubakh advanced $118,150 to a third-party vendor on behalf of the Company. The advance is due on demand, has no interest rate, and is unsecured. During the six months ended December 31, 2023, repayments of $48,530 were made on the advance. Amounts due to related party, consisting of short-term advances from Mr. Rubakh, totaled $69,620 and $118,150 as of December 31, 2023 and June 30, 2023, respectively. Total amount due to Mr. Rubakh for accrued salary and short-term advances as of December 31, 2023 and June 30, 2023 was $99,484, and $415,288, respectively. During the six months ended December 31, 2023, Mr. Rubakh converted 20,000 shares of Series B preferred stock into 2,000,000 shares of common stock in a transaction recorded at the par value of the shares. During the six months ended December 31, 2022, Mr. Rubakh converted 190,000 shares of Series B preferred stock into 19,000,000 shares of common stock in a transaction recorded at the par value of the shares. On December 15, 2021, the Company and Tioga Holding, LLC, a related party owned 50% by Mr. Rubakh (“Tioga”), entered into a Property Lease and Power Purchase Agreement for the use by the Company of facilities located in Tioga, Pennsylvania. The Company’s sole obligation under the agreement is to pay monthly a contractual rate per kilowatt hour of electricity consumed in the Company’s cryptocurrency mining operations. The term of the agreement was 36 months. Mining operations as this facility terminated in September 2023 due to the significant increase in power cost by local utility. During the six months ended December 31, 2023 and 2022, the Company incurred power expense of $96,527 and $180,432, respectively. During the three months ended December 31, 2023 and 2022, the Company incurred power expense of $0 and $110,957, respectively. |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Dec. 31, 2023 | |
NOTES PAYABLE | |
NOTES PAYABLE | 6. NOTES PAYABLE On June 15, 2022, the Company entered into a Loan Agreement and Promissory Note with BHP Capital NY, Inc. (“BHP”) in the amount of $500,000. The note matured on January 15, 2023, and bares a flat interest charge of $130,000 that shall not be reduced or pro-rated in the event of prepayment. In addition, upon an event of default, the Note bares default interest of 18% per annum. This note is secured by assets and equipment of the Company. As further inducement to enter this note, the Company issued BHP 16,000 shares of restricted common stock. These shares were valued at $123,200 using the closing market price of the Company’s common stock on the date of issuance and were recorded as a debt discount that is being amortized to interest expense over the term of the note. The Company recorded $0 and $52,965 of interest expense for amortization of this debt discount and accrued $23,000 and $52,964 of interest expense during the three months ended December 31, 2023 and 2022, respectively and recorded $0 and $105,928 of interest expense for amortization of this debt discount and accrued $46,000 and $111,776 of interest expense during the six months ended December 31, 2023 and 2022, respectively. The Company repaid $50,000 of accrued interest during the three and six months ended December 31, 2023. No interest was repaid during the three and six month ended December 31, 2022. As of December 31, 2023, this note was in default due to nonpayment before the maturity date. |
MEZZANINE
MEZZANINE | 6 Months Ended |
Dec. 31, 2023 | |
MEZZANINE | |
MEZZANINE | 7. MEZZANINE Series C Preferred Stock Effective January 14, 2021, the Company filed a Certificate of Designation of the Series C Convertible Preferred Stock with the Nevada Secretary of State. The Company has authorized the issuance of an aggregate of 3,000 shares of the Series C preferred stock. Each share of Series C preferred stock has a par value of $0.001 per share and a stated value of $1,100 per share. The shares of Series C preferred stock are convertible into shares of the Company’s common stock at a conversion price of $8.50 per share. Each share of the Series C preferred stock is entitled to receive cumulative dividends of 12% per annum or 18% per annum in the event of default, payable monthly from the date of issuance of the shares. Starting one month after the issuance of the shares, they were in default due to the Company’s failure to pay the cumulative dividend monthly as required by the agreement. Dividends may be paid in cash or in shares of Series C preferred stock at the discretion of the Company. During the year ended June 30, 2023, the Company settled $293,639 of dividends owed in exchange for 78,304 shares of common stock. The shares of Common Stock were valued based on their value as of the settlement date which was $3.75 per share. As of December 31, 2023 and June 30, 2023, the Company accrued Series C preferred stock dividends of $358,486 and $245,088, respectively. The Company, at its sole discretion, has the right to redeem all, but not less than all, shares of the Series C preferred stock issued and outstanding upon 5 days’ notice at a defined redemption price. The holders of the Series C preferred stock do not have a right to put the shares to the Company. The holders of the Series C preferred stock shall have the right to vote together with holders of common stock, on an as “converted basis”, on any matter that the Company’s shareholders may be entitled to vote on, either by written consent or by proxy. As of December 31, 2023 and June 30, 2023, 1,125 shares of Series C preferred stock were issued and outstanding and recorded at started value as mezzanine due to certain default provision requiring mandatory cash redemption that are outside the control of the Company. Series D Preferred Stock On February 19, 2021, the Company filed a Certificate of Designation of the Series D Convertible Preferred Stock with the Nevada Secretary of State authorizing the issuance of an aggregate of 4,000 shares of the Series D preferred stock. Each share of Series D preferred stock has a par value of $0.001 per share and a stated value of $1,100 per share. The shares of Series D preferred stock are convertible into shares of the Company’s common stock at a conversion price of $37.50 per share. Each share of the Series D preferred stock is entitled to receive cumulative dividends of 12% per annum or 18% per annum in the event of default, payable monthly from the date of issuance of the shares. Starting one month after the issuance of the shares, they were in default due to the Company’s failure to pay the cumulative dividend monthly as required by the agreement. Dividends may be paid in cash or in shares of Series D preferred stock at the discretion of the Company. As of December 31, 2023 and June 30, 2023, the Company accrued Series D preferred stock dividends of $1,702,318 and $1,400,122, respectively. The Company, at its sole discretion, has the right to redeem all, but not less than all, shares of the Series D preferred stock issued and outstanding upon 5 days’ notice at a defined redemption price. The holders of the Series D preferred stock do not have a right to put the shares to the Company. The holders of the Series D preferred stock shall have the right to vote together with holders of common stock, on an as “converted basis”, on any matter that the Company’s shareholders may be entitled to vote on, either by written consent or by proxy. As of December 31, 2023 and June 30, 2023, 3,000 shares of Series D preferred stock were issued and outstanding and recorded as mezzanine due to certain default provisions requiring mandatory cash redemption that are outside the control of the Company. |
STOCKHOLDERS EQUITY (DEFICIT)
STOCKHOLDERS EQUITY (DEFICIT) | 6 Months Ended |
Dec. 31, 2023 | |
STOCKHOLDERS EQUITY (DEFICIT) | |
STOCKHOLDERS' EQUITY (DEFICIT) | 8. STOCKHOLDERS’ EQUITY (DEFICIT) Preferred Stock Series A Preferred Stock In March 2015, the Company filed with the State of Nevada a Certificate of Designation establishing the designations, preferences, limitations, and relative rights of 1,000,000 shares of the Company's Series A preferred stock. Each share of Series A preferred stock has a par value of $0.001. Holders of the Series A preferred stock have the right to vote in aggregate, on all shareholder matters equal to 1,000 votes per share of Series A preferred stock not subject to adjustment for a stock split or reverse stock split. The shares of Series A preferred stock are not convertible into shares of common stock. The Company has 1,000,000 shares of Series A preferred stock authorized, with 500,000 shares issued and outstanding as of December 31, 2023 and June 30, 2023, which were issued in March 2015 to members of the Company’s Board of Directors in consideration for services. Series B Preferred Stock On December 21, 2015, the Company filed a Certificate of Designation for a new Series B convertible preferred stock with the State of Nevada following approval by the board of directors of the Company. Five Hundred Thousand (500,000) shares of the Company's authorized preferred stock are designated as the Series B convertible preferred stock, par value of $0.001 per share and with a stated value of $0.001 per share (the "Stated Value"). Holders of Series B preferred stock shall be entitled to receive dividends, when and as declared by the Board of Directors out of funds legally available therefor. At any time and from time to time after the issuance of shares of the Series B preferred stock, each issued share of Series B preferred stock is convertible into 100 shares of the Company’s common stock (“Conversion Ratio”). The Conversion Ratio is subject to adjustment if the Company enters into a merger or spin off transaction but is not subject to adjustment for a stock split or reverse stock split. The holders of the Series B preferred stock shall have the right to vote together with holders of common stock, on an as "converted basis", on any matter that the Company's shareholders may be entitled to vote on, either by written consent or by proxy. Upon any liquidation, dissolution or winding-up of the Company, the holders of the Series B preferred stock shall be entitled to receive out of the assets of the Company, whether such assets are capital or surplus, for each share of Series B preferred stock an amount equal to the Stated Value, and all other amounts in respect thereof then due and payable prior to any distribution or payment shall be made to the holders of any junior securities. The number of authorized Series B preferred stock was later increased to 1,000,000 shares. During the six months ended December 31, 2023, Mr. Rubakh converted 20,000 shares of Series B preferred stock into 2,000,000 shares of common stock in a transaction recorded at the par value of the shares. During the six months ended December 31, 2022, Mr. Rubakh converted 190,000 shares of Series B preferred stock into 19,000,000 shares of common stock in a transaction recorded at the par value of the shares. For services provided during the six months ended December 31, 2023, the Company issued to Mr. Rubakh 50,000 shares of Series B convertible preferred stock valued on an “as converted to common” basis at $8,300,000, using the closing market price of the Company’s common stock. Each share of Series B preferred stock is convertible into 100 shares of the Company’s common stock. This non-cash, related party stock-based compensation is included in operating expenses in the accompanying statements of operations. For services provided during the six months ended December 31, 2022, the Company issued to Mr. Rubakh 100,000 shares of Series B convertible preferred stock valued on an “as converted to common” basis at $352,500, using the closing market price of the Company’s common stock. Each share of Series B preferred stock is convertible into 100 shares of the Company’s common stock. This non-cash, related party stock-based compensation is included in operating expenses in the accompanying statements of operations. The Company had 130,000 and 100,000 shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively. Common Stock As of December 31, 2023, we were authorized to issue up to 300,000,000 shares of common stock with a par value of $0.001. The Company had 5,064,492 and 2,864,492 common shares issued and outstanding as of December 31, 2023 and June 30, 2023, respectively. During the six months ended December 31, 2023, the Company issued a total of 2,200,000 shares of its common stock: 2,000,000 in conversion of Series B preferred stock recorded at par value of $2,201 and 200,000 shares for the purchase of bitcoin miners recorded at the fair value of the shares or $309,300. During the six months ended December 31, 2022, the Company issued a total of 347,395 shares of its common stock: 152,000 shares issued in conversion of Series B preferred stock recorded at par value of $152 and 195,395 shares for the cash-less exercise of warrants recorded at par value of $195. |
WARRANTS
WARRANTS | 6 Months Ended |
Dec. 31, 2023 | |
WARRANTS | |
WARRANTS | 9. WARRANTS The Company issued warrants to purchase 88,000 shares of its common stock in February 2021 in connection with the sale of Series D preferred stock. The Company also issued warrants to purchase 240,000 shares of its common stock in April 2021 in connection with the sale of common stock. During the six months ended December 31, 2022, the Company entered into two letter agreements in connection with this sale described as follows. On September 13, 2022, the Company and one of the Purchasers entered into a letter agreement (the “September 13 Amendment Agreement”) whereby the Company agreed to amend the terms of such Purchaser’s Warrants to purchase up to 120 thousand shares to provide effective as of June 29, 2022. The amendment reduced the exercise price thereof to $0.125, subject to adjustment therein, and waived the “exploding feature” of the Anti-Dilution Provision in the Warrant that would otherwise have effected an increase in the number of warrant shares as a result of an exercise price reduction so as to result in the same aggregate value of the warrant shares multiplied by the exercise price. Additionally, other than an Exempt Issuance, as defined in the Warrants, from the date hereof until 90 days after the date hereof, neither the Company nor any subsidiary of the Company may issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents (as defined in the Warrants). On September 15, 2022, the Company and the other Purchaser entered into a letter agreement (the “September 15 Amendment Agreement”) whereby the Company agreed to amend the terms of such Purchaser’s Warrants to purchase up to 120 thousand shares, effective as of August 30, 2022. The amendment reduced the exercise price thereof to $0.125, subject to adjustment therein, and waived the “exploding feature” of the Anti-Dilution Provision in the Warrant that would otherwise have effected an increase in the number of warrant shares as a result of an exercise price reduction so as to result in the same aggregate value of the warrant shares multiplied by the exercise price. Additionally, other than an Exempt Issuance, as defined in the Warrants, from the date hereof until 90 days after the date hereof, neither the Company nor any subsidiary of the Company may issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents (as defined in the Warrants). The effect of these modifications was measured as the excess of the fair value of the amended Purchaser’s Warrants over the fair value of the Purchaser’s Warrants immediately before the amendments which amounted to $162,037 and was recognized as a dividend due to the substance of the modification not indicating the issuer has incurred a cost that should be expensed. During the six months ended December 31, 2022, we issued 195,395 shares of common stock for the cash-less exercise of 200,000 warrants. There were no warrants outstanding as of December 31, 2023 and June 30, 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of the date of filing of this report, there were no pending or threatened lawsuits. Operating Leases As of December 31, 2023, the Company had no obligation for future lease payments under non-cancelable operating leases. However, the Company has entered into three agreements described below related to its crypto currency mining operations pursuant to which the Company’s sole obligation is to pay monthly a contractual rate per kilowatt hour of electricity consumed. Power Purchase and Hosting Agreement On March 8, 2021, the Company and Compute North LLC (“Compute North”) entered into a Master Agreement for the colocation and management of the Company’s cryptocurrency mining operations. This agreement required an initial deposit of $78,147 which is recorded as a Deposit on the Balance Sheets. The Company submits Order Forms to Compute North to determine the location of the hosted facilities, the number of cryptocurrency miners, the term of the services provided and the contractual rate per kilowatt hour of electricity consumed in the Company’s cryptocurrency mining operations. The Company’s ongoing obligation under the agreement to pay monthly a contractual rate per kilowatt hour of electricity consumed in the Company’s cryptocurrency mining operations. On June 3, 2022, the Company and Compute North entered into a second Master Agreement for the colocation and management of the Company’s cryptocurrency mining operations. The Company executed Order Forms to Compute North to determine the number of cryptocurrency miners, the term of the services provided and the contractual rate per kilowatt hour of electricity consumed in the Company’s cryptocurrency mining operations. This agreement required an initial deposit of $500,000, which is recorded as a Deposit on the Balance Sheets. The Company’s ongoing obligation under the agreement to pay monthly a contractual rate per kilowatt hour of electricity consumed in the Company’s cryptocurrency mining operations. In January 2023, under Chapter 11 proceedings, Compute North sold these Master Agreements to GC Data Center Granbury, LLC and the parties consolidated all cryptocurrency mining operations in the Granbury, Texas facility. Tioga Property Lease and Power Purchase Agreement On December 15, 2021, the Company and Tioga Holding, LLC, a related party, entered into a Property Lease and Power Purchase Agreement for the use by the Company of facilities located in Tioga, Pennsylvania. The Company’s sole obligation under the agreement is to pay monthly a contractual rate per kilowatt hour of electricity consumed in the Company’s cryptocurrency mining operations. The term of the agreement is 36 months. The 36 months lease and mining operations were terminated in September 2023 due to significant increase in power cost by local utility. All mining equipment has been relocated to Granbury, Texas. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 11. SUBSEQUENT EVENTS Management has evaluated subsequent events according to the requirements of ASC TOPIC 855, and has none to report. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Because of the use of estimates inherent in the financial reporting process, actual results could differ significantly from those estimates. |
Cash and Cash Equivalents | The Company maintains cash balances in non-interest-bearing accounts that at times may exceed federally insured limits. For the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The Company had no cash equivalents at December 31, 2023. |
Digital Currencies | Digital currencies consist mainly of Bitcoin, generally received for the Company’s own account as compensation for cryptocurrency mining services, and other digital currencies purchased for short-term investment and trading purposes. Given that there is limited precedent regarding the classification and measurement of cryptocurrencies under current Generally Accepted Accounting Principles (“GAAP”), the Company has determined to account for these digital currencies as indefinite-lived intangible assets in accordance with Accounting Standards Codification ("ASC") No. 350, Intangibles – Goodwill and Other, for the period covered by this report and in future reports unless and until further guidance is issued by the Financial Accounting Standards Board (“FASB”). 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. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not than an impairment exists. If it is determined that it is more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. 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. Realized gains or losses on the sale of digital currencies are included in other income (expense) in the statements of operations. The Company had realized gain (losses) on sale of digital currencies of $183,146 and $(43,899) in the three months ended December 31, 2023 and 2022, respectively and of $162,691 and $(67,914) in the six months ended December 31, 2023 and 2022, respectively. Cryptocurrency mining revenues were $1,728,108 and $370,292 in the three months ended December 31, 2023 and 2022, respectively and $2,787,172 and $925,657 in the six months ended December 31, 2023 and 2022, respectively. |
Property and Equipment | Property and equipment, consisting primarily of computer and other cryptocurrency mining equipment (transaction verification servers), is stated at the lower of cost or estimated realizable value and is depreciated when placed into service using the straight-line method over estimated useful lives. Management has assessed the basis of depreciation of these assets and believes they should be depreciated over a three-year period due to technological obsolescence reflecting rapid development of hardware that has faster processing capacity and other factors. Maintenance and repairs are expensed as incurred and improvements are capitalized. Gains or losses on the disposition of property and equipment are recorded upon disposal. During the six months ended December 31, 2023, the Company discontinued the use of damaged or non-serviceable mining equipment and wrote off its net book value of $121,670 to loss on disposition of property and equipment. During the six months ended December 31, 2022, the Company discontinued the use of damaged or non-serviceable mining equipment and wrote off its net book value of $46,715 to loss on disposition of property and equipment. Management has determined that the three-year diminishing value best reflects the current expected useful life of transaction verification servers. This assessment takes into consideration the availability of historical data and management’s expectations regarding the direction of the industry including potential changes in technology. Management will review this estimate annually and will revise such estimates as and when data becomes available. To the extent that any of the assumptions underlying management’s estimate of useful life of its transaction verification servers are subject to revision in a future reporting period, either as a result of changes in circumstances or through the availability of greater quantities of data, then the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets. Payments to equipment suppliers prior to shipment of the equipment are recorded as equipment deposits. |
Derivatives | As of December 31, 2023, and June 30, 2023, the Company had no derivative liabilities. The Company evaluates its convertible debt, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for. The result of this accounting treatment is that under certain circumstances the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. If the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income or expense. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under this accounting standard are reclassified to liability at the fair value of the instrument on the reclassification date. Where the number of warrants or common shares to be issued under these agreements is indeterminate, the Company has concluded that the equity environment is tainted, and all additional warrants and convertible debt are included in the value of the derivatives. We estimate the fair value of the derivatives using, as applicable, either the Black-Scholes pricing model or multinomial lattice models that value the derivative liability based on a probability weighted discounted cash flow model using future projections of the various potential outcomes. We estimate the fair value of the derivative liabilities at the inception of the financial instruments, and, in the case of our convertible notes payable, at the date of conversions to equity and at each reporting date, recording a derivative liability, debt discount, additional paid-in capital and a gain or loss on change in derivative liabilities as applicable. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility, variable conversion prices based on market prices as defined in the respective agreements and probabilities of certain outcomes based on management projections. These inputs are subject to significant changes from period to period and to management’s judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material. |
Impairment of Long-Lived Assets | All assets, including intangible assets subject to amortization, are reviewed for impairment when changes in circumstances indicate that the carrying amount of the asset may not be recoverable in accordance with ASC 350 and ASC 360. If the carrying amount of the asset exceeds the expected undiscounted cash flows of the asset, an impairment charge is recognized equal to the amount by which the carrying amount exceeds fair value or net realizable value. The testing of these intangibles under established guidelines for impairment requires significant use of judgment and assumptions. Changes in forecasted operations and other assumptions could materially affect the estimated fair values. Changes in business conditions could potentially require adjustments to these asset valuations. We reported no impairment expense for the three and six months ended December 31, 2023 and 2022. |
Mezzanine | Series C and D preferred stock that contain certain default provisions requiring mandatory cash redemption that are outside the control of the Company are recorded as Mezzanine in the accompanying balance sheets. |
Stock-Based Compensation | The Company accounts for all equity-based payments in accordance with ASC Topic 718, Compensation – Stock Compensation. The Company accounts for non-employee share-based awards based upon ASC 505-50, Equity-Based Payments to Non-Employees. |
Revenue Recognition | We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers. This standard provides a single comprehensive model to be used in the accounting for revenue arising from contracts with customers. The standard’s stated core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, ASC 606 includes provisions within a five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when, or as, an entity satisfies a performance obligation. Our revenues consist of cryptocurrency mining revenues recognized in accordance with ASC 606 as discussed above. Amounts collected from customers prior to shipment of products are recorded as deferred revenue. The Company earns its cryptocurrency mining revenues by providing transaction verification services within the digital currency networks of cryptocurrencies, such as Bitcoin. The Company satisfies its performance obligation at the point in time that the Company is awarded a unit of digital currency through its participation in the applicable network and network participants benefit from the Company’s verification service. In consideration for these services, the Company receives digital currencies, net of applicable network fees, which are recorded as revenue using the closing U.S. dollar price of the related cryptocurrency on the date of receipt. Expenses associated with running the cryptocurrency mining operations, such as equipment depreciation, rent, operating supplies, rent, utilities and monitoring services are recorded as cost of revenues. There is currently no specific definitive guidance in GAAP or alternative accounting frameworks for the accounting for the production and mining of digital currencies and management has exercised significant judgment in determining appropriate accounting treatment for the recognition of revenue for mining of digital currencies. Management has examined various factors surrounding the substance of the Company’s operations and the guidance in ASC 606, including identifying the transaction price, when performance obligations are satisfied, and collectability is reasonably assured being the completion and addition of a block to a blockchain and the award of a unit of digital currency to the Company. In the event authoritative guidance is enacted by the FASB, the Company may be required to change its policies which could result in a change in the Company’s financial statements. |
Income Taxes | The Company adopted the provisions of ASC 740-10, Accounting for Uncertain Income Tax Positions. The Company adopted ASC 740-10, Definition of Settlement in FASB Interpretation No. 48, |
Income (Loss) Per Share | Basic net income or loss per share is calculated by dividing net income or loss by the weighted average number of common shares outstanding for the period. Diluted income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as “in-the-money” stock options and warrants using the treasury stock method, convertible debt, and convertible preferred stock, were exercised or converted into common stock. Equivalent shares are not utilized when the effect is anti-dilutive. For the three and six months ended December 31, 2023 and 2022, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share; therefore, basic net loss per share is the same as diluted net loss per share. |
Recently Issued Accounting Pronouncements | In December 2023, the FASB issued ASU No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets There were no other new accounting pronouncements issued or proposed by the FASB during the six months ended December 31, 2023 and through the date of filing this report which the Company believes will have a material impact on its financial statements. |
Reclassifications | Certain amounts in the financial statements for prior year periods have been reclassified to conform to the presentation for the current year periods. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT | |
Schedule of Property and equipment | December 31, 2023 June 30, 2023 Cryptocurrency mining equipment $ 8,705,472 $ 8,668,025 Furniture and equipment 240,011 240,011 Total 8,945,483 8,908,036 Less accumulated depreciation and amortization (4,898,813 ) (3,608,202 ) Net $ 4,046,670 $ 5,299,834 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Cryptocurrency mining revenues | $ 1,728,108 | $ 370,292 | $ 2,787,172 | $ 925,657 |
Realized gain (loss) on sale of digital currencies | $ 183,146 | $ (43,899) | 162,691 | (67,914) |
Loss on disposition of property | $ (121,670) | $ (46,715) |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
GOING CONCERN | ||
Accumulated Deficit | $ (82,906,978) | $ (73,101,867) |
Current Liabilities Exceeded Current Assets | $ 2,994,375 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Property and Equipment, Total | $ 8,945,483 | $ 8,908,036 |
Less accumulated depreciation and amortization | (4,898,813) | (3,608,202) |
Property and Equipment, Net | 4,046,670 | 5,299,834 |
Cryptocurrency mining equipment [Member] | ||
Property and Equipment, Total | 8,705,472 | 8,668,025 |
Furniture and equipment [Member] | ||
Property and Equipment, Total | $ 240,011 | $ 240,011 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT | ||||
Depreciation And Amortization Expense | $ 745,720 | $ 389,901 | $ 1,479,284 | $ 822,106 |
Loss on disposition of property | $ (121,670) | $ (46,715) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Description of compensastion | Mr. Rubakh’s annual salary was $250,000 ($62,500 quarterly). In addition, $100,000 of bonuses ($50,000 quarterly) were approved by the Board of Directors. Last, the Company issued to Mr. Rubakh 50,000 shares | Mr. Rubakh’s annual salary was $250,000 ($62,500 quarterly). In addition, $100,000 of bonuses ($50,000 quarterly) were approved by the Board of Directors. Last, the Company issued to Mr. Rubakh 100,000 shares | ||||
Term Of The Agreement | 36 months | |||||
Total compensation expense | $ 112,500 | $ 257,500 | $ 8,525,000 | $ 577,500 | ||
Converted series B preferred stock into common stock, Value | 8,300,000 | 352,500 | ||||
Tioga [Member] | ||||||
PowerExpense | 0 | $ 110,957 | 96,527 | $ 180,432 | ||
Mr. Rubakh [Member] | ||||||
short term advance | 69,620 | 69,620 | $ 118,150 | |||
Total Accrued salary and short term advances | 99,484 | $ 99,484 | 415,288 | |||
Share converted series B preferred stock into common stock | 20,000 | 190,000 | ||||
Share series B preferred stock | 2,000,000 | 19,000,000 | ||||
Amount due to related party | 48,530 | $ 48,530 | ||||
Series B convertible preferred stock issued | 100 | 100 | ||||
Accrued salary | $ 29,864 | $ 29,864 | $ 297,138 | |||
Advance payment to third party | $ 118,150 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 15, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Notes Payable | $ 500,000 | $ 500,000 | $ 500,000 | |||
Notes Payable Member | ||||||
Interest expense for amortization | 0 | $ 52,965 | 0 | $ 105,928 | ||
Interest payment | $ 23,000 | $ 52,964 | 46,000 | $ 111,776 | ||
Repayment of accrued interest | $ 50,000 | |||||
Promissory Note [Member] | BHP Capital NY Inc [Member] | ||||||
Notes Payable | $ 500,000 | |||||
Interest charge | $ 130,000 | |||||
Interest per annum | 18% | |||||
Restricted common stock | 16,000 | |||||
Common stock market price | $ 123,200 |
MEZZANINE (Details Narrative)
MEZZANINE (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Feb. 19, 2021 | Dec. 31, 2023 | Jun. 30, 2023 | Jan. 14, 2021 | |
Common stock, shares issued | 5,064,492 | 2,864,492 | ||
Accrued Series C preferred stock dividends | $ 2,060,804 | $ 1,645,210 | ||
Series D Preferred Stock [Member] | ||||
Conversion price | $ 37.50 | |||
Accrued Series D preferred stock dividends | $ 1,702,318 | $ 1,400,122 | ||
Preferred stock, shares authorized | 4,000 | |||
Preferred stock, shares par value | $ 0.001 | |||
Cumulative dividends | 12% | |||
Preferred stock, shares stated value, per share | $ 1,100 | |||
Preferred stock, shares issued | 3,000 | 3,000 | ||
Preferred stock, shares outstanding | 3,000 | 3,000 | ||
Series C Convertible Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 3,000 | |||
Cumulative dividends | 12% | |||
Preferred stock, shares stated value, per share | $ 1,100 | |||
Common stock, shares exchanged | 78,304 | |||
Dividends owed | $ 293,639 | |||
conversion price | $ 3.75 | $ 8.50 | ||
Accrued Series C preferred stock dividends | $ 358,486 | $ 245,088 | ||
Series A Common Stock [Member] | ||||
Common stock, shares issued | 1,125 | 1,125 | ||
Preferred stock, shares outstanding | 1,125 | 1,125 |
STOCKHOLDERS EQUITY (DEFICIT) (
STOCKHOLDERS EQUITY (DEFICIT) (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Dec. 21, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Mar. 31, 2015 | |
Common Stock, Shares Par Value | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized | 750,000,000 | 750,000,000 | |||
Common stock, shares issued | 5,064,492 | 2,864,492 | |||
Common Stock, Shares Outstanding | 5,064,492 | 2,864,492 | |||
Common Stock [Member] | |||||
Common Stock, Shares Par Value | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized | 300,000,000 | 300,000,000 | |||
Common stock, shares issued | 5,064,492 | 2,864,492 | |||
Common Stock, Shares Outstanding | 5,064,492 | 2,864,492 | |||
Issuance of Common Stock | 2,200,000 | 347,395 | |||
Series B convertible preferred stock issued | 2,000,000 | 152,000 | |||
Issued in Conversion of Series B Preferred Stock, Shares | 2,000,000 | 195,395 | |||
Purchase of bitcoin, shares | 200,000 | ||||
Purchase of bitcoin, fair value | $ 309,300 | ||||
Cash-less exercise of warrants at par value | $ 195 | ||||
Conversion of Series B preferred stock at par value | $ 2,201 | $ 152 | |||
Preferred Stock Series B [Member] | Mr. Rubakh [Member] | |||||
Share converted series B preferred stock into common stock | 20,000 | 190,000 | |||
Share series B preferred stock | 2,000,000 | 19,000,000 | |||
Shares Issued Series B convertible preferred stock | 50,000 | 100,000 | |||
Shares Issued Series B convertible preferred stock, value | $ 8,300,000 | $ 352,500 | |||
Convertible Prefreed Stock Shares Issuable Upon Conversion Of Common Stock | 100 | 100 | |||
Series A Preferred Stock [Member] | |||||
Preferred Stock, Shares Par Value | $ 0.001 | ||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||
Preferred stock, shares issued | 500,000 | 500,000 | |||
Preferred Stock, Shares Outstanding | 500,000 | 500,000 | |||
Preferred stock voting rights | 1,000 | ||||
Preferred Stock Series B [Member] | |||||
Preferred Stock, Shares Par Value | $ 0.001 | ||||
Preferred stock, shares issued | 130,000 | 100,000 | |||
Preferred Stock, Shares Outstanding | 130,000 | 100,000 | |||
Number of authorized shares increased | 1,000,000 | ||||
Preferred Stock, Shares Stated Value | $ 0.001 | ||||
Common Stock Shares Issuable Upon Conversion Of Preferred Stock | 100 | ||||
Series B Preferred Stock [Member] | |||||
Preferred Stock, Shares Par Value | $ 0.001 | $ 0.001 | |||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | |||
Preferred stock, shares issued | 130,000 | 100,000 | |||
Preferred Stock, Shares Outstanding | 130,000 | 100,000 | |||
Series B Preferred Stock [Member] | Presidents [Member] | |||||
Issuance Of Common Shares In Conversion, Shares | 500,000 |
WARRANTS (Details Narrative)
WARRANTS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Sep. 13, 2022 | Sep. 15, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Issued shares of common stock | 195,395 | |||
Cash-less exercise of warrants | 240,000 | |||
Exercise of warrants | 88,000 | 200,000 | ||
Dividend due | $ 162,037 | |||
Warrant Purchase Agreements One [Member] | ||||
Warrant exercise price | $ 0.125 | $ 0.125 | ||
Warrant purchaser | 120,000 | 120,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Jun. 03, 2022 | Dec. 15, 2021 | Mar. 08, 2021 |
Compute North Master Agreement [Member] | |||
Description For Initial Order Form Under Agreement | This agreement required an initial deposit of $78,147 which is recorded as a Deposit on the Balance Sheets | ||
Description of second master agreement | This agreement required an initial deposit of $500,000, which is recorded as a Deposit on the Balance Sheets | ||
Tioga Property Lease And Power Purchase Agreement [Member] | |||
Description For Initial Order Form Under Agreement | The Company’s sole obligation under the agreement is to pay monthly a contractual rate per kilowatt hour of electricity consumed in the Company’s cryptocurrency mining operations. The term of the agreement is 36 months. The 36 months lease and mining operations were terminated in September 2023 due to significant increase in power cost by local utility. All mining equipment has been relocated to Granbury, Texas |