| Summary of Significant Accounting Policies | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES Basis of Presentation The accounting and reporting policies of the
Company conform to accounting principles generally accepted in the United States of America (GAAP). The Company maintains the calendar
year as its basis of reporting. Use of Estimates The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents and Concentration of Cash
Balance The Company considers all highly liquid securities
with an original maturity of less than three months to be cash equivalents. The Company’s cash and cash equivalents in bank
deposit accounts, at times, may exceed federally insured limits. As of March 31, 2020 and December 31, 2019, the Company’s
cash balances did not exceed federally insured limits. Right of Use Assets and Lease Liabilities In February 2016, the FASB issued ASU No. 2016-02,
Leases (Topic 842) Under ASC 842, the Company determines if an
arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value
of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable
at the time of commencement. As most of the Company’s leases do not provide an implicit rate, the Company estimated the incremental
borrowing rate in determining the present value of lease payments. The ROU asset also includes any lease payments made prior to
commencement and is recorded net of any lease incentives received. The Company’ lease terms may include options to extend
or terminate the lease when it is reasonably certain that the Company will exercise such options. Property and Equipment Property and equipment are stated at cost net
of accumulated depreciation and amortization, and accumulated impairment, if any. Depreciation and amortization of property and
equipment is provided using the straight-line method over estimated useful lives, which range from three to seven years. As of March 31, 2020, the Company’s property
and equipment consisted of $29,540 of datacenter equipment, net of $81 of accumulated depreciation. Depreciation expense for the
three months ended March 31, 2020 was $81. Long-Lived Assets The Company evaluates the recoverability of
its long-lived assets whenever events or changes in circumstances have indicated that an asset may not be recoverable. Long-lived
assets are grouped with other assets at the lowest level for which identifiable cash flows are largely independent of the cash
flows of other groups of assets and liabilities. If the sum of the projected undiscounted cash flows is less than the carrying
value of the assets, the assets are written down to the estimated fair value. As of March 31, 2020, the Company determined that
its long-lived assets have not been impaired. Accounts Payable and Accrued Liabilities Accounts payable consisted of $74,434 of liabilities
incurred by the issuer prior to the merger as of each March 31, 2020 and 2019. The remaining accounts payable of $102,568 and $88,926
as of March 31, 2020 and December 31, 2019, respectively, consisted of amounts due for professional services and various other
general and administrative expenses incurred after the acquisition. As of December 31, 2019, accrued expenses consisted
of $1,811 of state and local taxes payable, $1,903 of accrued interest due to a vendor and $7,266 of accrued interest on convertible
debt. As of March 31, 2020, accrued expenses consisted of $1,811 of state and local taxes payable, $2,374 of accrued interest due
to a vendor and $4,665 of accrued interest on convertible debt. As of December 31, 2019, accrued liabilities
included $41,000 of accrued consulting fees payable to entities owned by the CEO ($22,000 and $19,000, respectively). During the
quarter ended March 31, 2020, the Company paid out the $41,000 of accrued compensation, for accrued related party compensation
payable of $0 as of March 31, 2020. Fair Value of Financial Instruments Financial Accounting Standards Board (“FASB”)
guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable
or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market
assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities
(Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value
hierarchy are as follows: Level 1 - Unadjusted quoted prices
in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments
and listed equities. Level 2 - Inputs other than quoted
prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices
of similar assets or liabilities inactive markets, or quoted prices for identical or similar assets or liabilities in markets that
are not active). Level 3 - Unobservable inputs for
the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models,
discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable. The carrying amounts reported in the balance
sheets approximate their fair value. Revenue Recognition The Company recognizes revenue under ASC 606,
using the following five-step model, which requires that the Company: (1) identify a contract with the customer, (2) identify the
performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to performance
obligations and (5) recognize revenue as performance obligations are satisfied. The Company’s current and anticipated revenue
streams consist of:
1. GPU as a Service– The Company owns and operates high performance servers to provide hardware acceleration for rendering farms to process 3D and video rendering. In addition, these multi-purpose servers produce revenue from mining when the servers are not processing other jobs to ensure zero idle time and have the ability to run AI and HPC processing as well. During the quarter ended March 31, 2020, the
Company recognized no revenue. While the Company generated limited revenue in the second quarter of 2020, there can be no assurances
that service lines will generate satisfactory revenue or continue to generate revenue. Stock-Based Compensation The Company accounts for share-based payments
pursuant to ASC 718, “Stock Compensation” and, accordingly, the Company records compensation expense for share-based
awards based upon an assessment of the grant date fair value for stock options and restricted stock awards using the Black-Scholes
option pricing model. Stock compensation expense for stock options
is recognized over the vesting period of the award or expensed immediately when stock or options are awarded for previous or current
service without further recourse. On February 18, 2020, the Company issued 50,000
shares of common stock to an advisor and recorded $9,500 of stock-based compensation expense. Subsequently, on May 6, 2020, the Company agreed
to issue 60,000 shares of common stock to a consultant for services rendered. Income Taxes The Company is subject to taxation in various
jurisdictions and may be subject to examination by various authorities. Deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities
are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the
deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified
as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the
opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company recognizes the amount of taxes
payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences
of events and transactions that have been recognized in the Company’s financial statements or tax returns. |
