Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Nov. 09, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-198435 | |
Entity Registrant Name | EDGE DATA SOLUTIONS, INC. | |
Entity Central Index Key | 0001614826 | |
Entity Tax Identification Number | 46-3892319 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 3550 Lenox Road NE | |
Entity Address, Address Line Two | 21st Floor | |
Entity Address, City or Town | Atlanta | |
Entity Address, Country | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | (833) | |
Local Phone Number | 682-2428 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,421,079 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 20,521 | $ 80,368 |
Accounts receivable | 489 | 651 |
Deposits | 46,122 | |
Crypto assets held | 997 | 1,197 |
Other current assets | 6,021 | 4,668 |
Prepaid expense | 1,830 | 4,409 |
Total Current Assets | 29,858 | 137,415 |
Non-Current Assets: | ||
Right of use asset - finance lease | 22,688 | 29,171 |
Property and equipment, net | 54,578 | 67,492 |
Security deposit | 7,753 | 7,753 |
Total Non-Current Assets | 85,019 | 104,416 |
TOTAL ASSETS | 114,877 | 241,831 |
Current Liabilities: | ||
Accounts payable | 166,933 | 118,608 |
Accrued expenses | 83,955 | 45,548 |
Customer deposits | 56,533 | |
Deferred revenue | 6,978 | 1,035 |
Convertible notes payable, short-term | 720,000 | 720,000 |
Advances from related parties | 103 | 51,510 |
Lease liability - finance, current portion | 16,099 | 15,703 |
Accrued compensation - related party | 35,000 | |
Total Current Liabilities | 1,050,601 | 987,404 |
Non-Current Liabilities: | ||
Lease liability - finance, non-current portion | 10,277 | 16,730 |
Total Non-Current Liabilities | 10,277 | 16,730 |
Total Liabilities | 1,060,878 | 1,004,134 |
Commitments and Contingencies (Note 10) | ||
Stockholders’ Deficiency: | ||
Preferred stock value | ||
Common stock, $0.0001 par value; 150,000,000 shares authorized, 8,421,079 and 8,321,079 issued and outstanding as of June 30, 2021 and December 31, 2020, respectively. | 842 | 832 |
Additional paid-in capital | 652,489 | 633,499 |
Accumulated deficit | (1,613,332) | (1,410,634) |
Total Stockholders’ Deficiency | (946,001) | (762,303) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | 114,877 | 241,831 |
Class A Super Voting Preferred Stock [Member] | ||
Stockholders’ Deficiency: | ||
Preferred stock value | 7,000 | 7,000 |
Class C Convertible Preferred Non-Voting Stock [Member] | ||
Stockholders’ Deficiency: | ||
Preferred stock value | $ 7,000 | $ 7,000 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 8,421,079 | 8,321,079 |
Common stock, shares outstanding | 8,421,079 | 8,321,079 |
Class A Super Voting Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 7,000,000 | 7,000,000 |
Preferred stock, shares outstanding | 7,000,000 | 7,000,000 |
Preferred stock, liquidation preferences | $ 26,317 | $ 26,317 |
Class C Convertible Preferred Non-Voting Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 7,000,000 | 7,000,000 |
Preferred stock, shares outstanding | 7,000,000 | 7,000,000 |
Preferred stock, liquidation preferences | $ 3,500 | $ 3,500 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Total Revenue | $ 776,080 | $ 6,307 | $ 826,923 | $ 6,307 |
Cost of goods sold | (641,174) | (660,458) | ||
Cost of computing revenues | (18,917) | (36,567) | ||
Total Cost of Revenue | (660,091) | (697,025) | ||
Gross Margin | 115,989 | 6,307 | 129,898 | 6,307 |
Operating Expenses: | ||||
Sales and marketing | 11,856 | 14,476 | ||
General and administrative | 82,674 | 55,788 | 127,754 | 132,990 |
Compensation - related party | 76,795 | 75,000 | 117,500 | 75,000 |
Stock-based compensation expense | 153,900 | 19,000 | 163,400 | |
Depreciation expense | 7,088 | 4,129 | 14,066 | 4,210 |
Total Operating Expenses | 178,413 | 288,817 | 292,796 | 375,600 |
Income from operations | (62,424) | (282,510) | (162,898) | (369,293) |
Other Income/(Expense): | ||||
Interest expense | (23,260) | (15,171) | (50,345) | (24,108) |
Loss on termination of prospective acquisition | (23,000) | (23,000) | ||
Cryptocurrency mining income | 5,320 | 10,067 | ||
Gain on debt forgiveness | 12,250 | 12,250 | ||
Small business grant income | 1,000 | 1,000 | ||
Gain on disposal of cryptocurrency | 537 | 478 | ||
Total Other Income/(Expense) | (17,403) | (24,921) | (39,800) | (33,858) |
Net (Loss) | $ (79,827) | $ (307,431) | $ (202,698) | $ (403,151) |
Net (Loss) per share (basic and diluted) | $ (0.01) | $ (0.05) | $ (0.02) | $ (0.06) |
Weighted average number of common shares outstanding | 8,421,079 | 6,488,661 | 8,407,267 | 6,319,297 |
Hardware Sales [Member] | ||||
Revenues: | ||||
Total Revenue | $ 763,371 | $ 6,307 | $ 797,440 | $ 6,307 |
Computing Revenues [Member] | ||||
Revenues: | ||||
Total Revenue | $ 12,709 | $ 29,483 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net (Loss) | $ (202,698) | $ (403,151) |
Adjustments to reconcile net loss to net cash (used in) operating activities: | ||
Depreciation | 14,066 | 4,210 |
Stock-based compensation | 19,000 | 163,400 |
Loss on prospective acquisition | 23,000 | |
Changes in operating assets and liabilities: | ||
Change in accounts receivable | 162 | |
Change in deposits | 46,122 | |
Change in crypto assets held | 200 | |
Change in other current assets | (1,353) | |
Change in prepaid expenses | 2,579 | (10,850) |
Change in security deposits | (7,753) | |
Change in accounts payable | 48,325 | (21,580) |
Change in accrued compensation - related party | (35,000) | (31,000) |
Change in accrued expenses | 38,407 | 5,364 |
Change in customer deposits | 56,533 | |
Change in deferred revenue | 5,943 | 5,391 |
Change in accrued interest related to note conversions | 6,966 | |
Net Cash (Used in) Operating Activities | (7,714) | (266,003) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (1,152) | (62,947) |
Deposits on prospective acquisition | (23,000) | |
Net Cash (Used in) Investing Activities | (1,152) | (85,947) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of short-term convertible debt | 310,000 | |
Related party advances | 38,957 | 102,682 |
Repayment of related party advances | (90,364) | (106,734) |
Related party debt forgiveness | 33,000 | |
Change in finance lease assets and liabilities | 8,178 | 3,242 |
Payments on finance lease | (7,752) | (1,292) |
Sale of equity units | 50,000 | |
Net Cash (Used in)/Provided by Financing Activities | (50,981) | 390,898 |
Net Change In Cash | (59,847) | 38,948 |
Cash at Beginning of Period | 80,368 | 14,453 |
Cash at End of Period | 20,521 | 53,401 |
Supplemental Disclosure of Cash Flow Information: | ||
Convertible debt principal and accrued interest converted to equity units | 106,966 | |
Issuance of common stock for equipment purchases | $ 6,083 |
Statement of Stockholders' Defi
Statement of Stockholders' Deficiency (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Balance, March 31, 2021 | $ (866,174) | $ (762,303) | $ (412,486) | $ (489,316) | $ (762,303) | $ (489,316) |
Debt conversions into equity units | 106,966 | |||||
Subscriptions to equity units | 50,000 | |||||
Common shares issued as compensation | 19,000 | 153,900 | 9,500 | |||
Related party debt forgiveness | 33,000 | |||||
Issuance of common stock for equipment | 6,083 | |||||
Net (loss) | (79,827) | (122,871) | (307,431) | (95,719) | (202,698) | (403,151) |
Balance, June 30, 2021 | (946,001) | (866,174) | (533,018) | (412,486) | (946,001) | (533,018) |
Common Stock [Member] | ||||||
Balance, March 31, 2021 | $ 842 | $ 832 | $ 636 | $ 565 | $ 832 | $ 565 |
Balance, shares | 8,421,079 | 8,321,079 | 6,361,079 | 5,651,217 | 8,321,079 | 5,651,217 |
Debt conversions into equity units | $ 43 | |||||
Debt conversions into equity units, shares | 427,862 | |||||
Subscriptions to equity units | 20 | |||||
Subscriptions to equity units, shares | 200,000 | |||||
Common shares issued as compensation | $ 10 | $ 81 | 5 | |||
Common shares issued as compensation, shares | 100,000 | 810,000 | 50,000 | |||
Issuance of common stock for equipment | 3 | |||||
Issuance of common stock for equipment, shares | 32,000 | |||||
Net (loss) | ||||||
Balance, June 30, 2021 | $ 842 | $ 842 | $ 717 | $ 636 | $ 842 | $ 717 |
Balance, shares | 8,421,079 | 8,421,079 | 7,171,079 | 6,361,079 | 8,421,079 | 7,171,079 |
Class A Preferred [Member] | ||||||
Balance, March 31, 2021 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 |
Balance, shares | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 |
Common shares issued as compensation | ||||||
Related party debt forgiveness | ||||||
Issuance of common stock for equipment | ||||||
Net (loss) | ||||||
Balance, June 30, 2021 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 |
Balance, shares | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 |
Class C Convertible Preferred [Member] | ||||||
Balance, March 31, 2021 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 | $ 7,000 |
Common shares issued as compensation | ||||||
Related party debt forgiveness | ||||||
Issuance of common stock for equipment | ||||||
Net (loss) | ||||||
Balance, June 30, 2021 | 7,000 | 7,000 | 7,000 | 7,000 | 7,000 | 7,000 |
Additional Paid-in Capital [Member] | ||||||
Balance, March 31, 2021 | 652,489 | 633,499 | 228,295 | 55,817 | 633,499 | 55,817 |
Debt conversions into equity units | 106,923 | |||||
Subscriptions to equity units | 49,980 | |||||
Common shares issued as compensation | 18,990 | 153,819 | 9,495 | |||
Related party debt forgiveness | 33,000 | |||||
Issuance of common stock for equipment | 6,080 | |||||
Net (loss) | ||||||
Balance, June 30, 2021 | 652,489 | 652,489 | 415,114 | 228,295 | 652,489 | 415,114 |
Retained Earnings [Member] | ||||||
Balance, March 31, 2021 | (1,533,505) | (1,410,634) | (655,417) | (559,698) | (1,410,634) | (559,698) |
Issuance of common stock for equipment | ||||||
Net (loss) | (79,827) | (122,871) | (307,431) | (95,719) | ||
Balance, June 30, 2021 | $ (1,613,332) | $ (1,533,505) | $ (962,849) | $ (655,417) | $ (1,613,332) | $ (962,849) |
Class C Convertible Preferred Non-Voting Stock [Member] | ||||||
Balance, shares | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 |
Balance, shares | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1: ORGANIZATION AND NATURE OF OPERATIONS EDGE DATA SOLUTIONS, INC. (the “Company”), formerly Blockchain Holdings Capital Ventures, Inc. (formerly Southeastern Holdings, Inc., formerly Safe Lane Systems, Inc.) was incorporated in the State of Colorado on September 10, 2013. Safe Lane Systems, Inc. redomiciled to become a Delaware holding corporation in September of 2016. On September 22, 2016, Safe Lane Systems, Inc. formed two wholly owned subsidiaries, SLS Industrial, Inc and Southeastern Holdings, Inc. (both Delaware corporations) and on September 30, 2016 completed a merger and reorganization in which Southeastern Holdings, Inc. (now Edge Data Solutions, Inc.) became the holding company. On December 1, 2016, the Company spun off its wholly owned subsidiary, SLS Industrial, Inc., along with its assets and liabilities, leaving Southeastern Holdings, Inc. as the only surviving entity. On August 23, 2018, the Company entered into a Bill of Sale and Assignment and Assumption Agreement with Blockchain Holdings, LLC (“Blockchain”), pursuant to which the Company purchased all of the assets of Blockchain which are used in the business of sourcing of blockchain mining equipment from various suppliers for their customers and also providing management of the equipment hosted, mining pools and tech work on such equipment. The Company issued 300,000,000 3,000,000 .0001 On August 30, 2018, the Company changed its name to Blockchain Holdings Capital Ventures, Inc. Business description Edge Data Solutions, Inc. (EDSI) is poised to be an industry-leading edge data center and cloud infrastructure provider. EDSI’s proprietary Edge Performance Platform (EPP) allows us to deploy next-generation edge data centers where they are needed most. EDSI’s data centers provide next-generation immersion Cooling technology that improves performance, reduces energy costs and latency. Key industries we serve more computing power are fintech, cloud gaming, telecom 5G, 3D/video/AI rendering, video streaming, remote desktop, IoT, autonomous vehicles. Centralized infrastructure facilities servicing multiple geographical areas encounter many issues with data latency, congestion and weak network connections. To address this, data processing is moving closer to the customer. EDSI offers green, low-cost, secure colocation and private data hosting to meet this demand for Edge data centers. EDSI plans to deploy to strategic locations based on demand for Tier 2 and Tier 3 cities outside the major metropolitans to underserved markets, supporting both edge customers and areas of projected growth. With the rise and proliferation of this technology adoption we plan to solidify our footprint by securing multiple locations across the US, while generating revenue from our operations. The modular design and ability to add additional data centers as needed, preserves up front capital allowing for rapid deployment and scalability as business demand increases. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
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 June 30, 2021, and December 31, 2020, the Company’s cash balances did not exceed federally insured limits. EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) 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. Inventory The Company values inventory at its original cost, adjusted to approximate the lower of actual cost or estimated net realizable value using assumptions about future demand and market conditions. In determining excess or obsolescence reserves for its products, the Company considers assumptions such as changes in business and economic conditions, other-than-temporary decreases in demand for its products, and changes in technology or customer requirements. In determining the lower of cost or net realizable value reserves, the Company considers assumptions such as recent historical sales activity and selling prices, as well as estimates of future selling prices. The Company fully reserves for inventories and non-cancellable purchase orders for inventory deemed obsolete. The Company performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances and non-cancellable purchase orders to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by the Company, additional inventory carrying value adjustments may be required. As of June 30, 2021, the Company had no 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 are all currently estimated at three years. As of June 30, 2021, the Company’s property and equipment consisted of $ 71,938 13,347 30,707 7,088 14,066 4,129 4,210 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 June 30, 2021, the Company determined that its long-lived assets have not been impaired. Accounts Payable and Accrued Liabilities Accounts payable consisted of $ 74,434 92,499 44,174 As of December 31, 2020, accrued expenses consisted of $ 1,811 1,903 45,548 83,955 EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) 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 and gaming. 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. 2. Hardware sales – The Company resells mobile and immersion-cooled data center solutions and other high-powered computing equipment. During the three and six months ended June 30, 2021, the Company recognized $ 12,709 29,483 of revenue from its customers’ usage of datacenter credits, respectively. The Company further recognized a deferred revenue liability of $ 6,978 for prepaid usage credits not yet used by its customers as of June 30, 2021. While the Company plans to continue to generate revenue, there can be no assurances that service lines will generate satisfactory revenue or continue to generate revenue. Net hardware sales during the six months ended June 30, 2021 totaled $ 797,440 and had associated costs of goods sold of $ 641,174 The Company recognizes prepayments for equipment not yet delivered at the end of a given period as a customer deposit liability. As of June 30, 2021, outstanding customer deposit liabilities totaled $ 56,533 Crypto Assets Held The crypto assets held by the Company, with no qualifying fair value hedge, are accounted for as intangible assets with indefinite useful lives and are initially measured at cost. Crypto assets accounted for as intangible assets are 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, which is measured using the quoted price of the crypto asset at the time its fair value is being measured. Impairment expense is reflected in other operating expense in the consolidated statements of operations. The Company assigns costs to transactions on a first-in, first-out basis. As of June 30, 2021 and December 31, 2020, the carrying value of crypto assets held by the Company was $ 997 1,197 Cryptocurrency Income The Company records cryptocurrency generated, net of fees and valuation adjustments, as other income and classifies the cryptocurrency as crypto assets held at cost in its balance sheets. When the company sells its cryptocurrencies, it recognizes a gain or loss for the difference between original cost and the selling price, net of fees. During the three and six months ended June 30, 2021, the Company recognized $ 5,320 10,067 537 478 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. EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) 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. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 3: GOING CONCERN As shown in the accompanying financial statements as of June 30, 2021, the Company had $ 20,521 of cash and $ 29,858 of current assets, as compared to total current liabilities of $ 1,050,601 , has incurred substantial operating losses, and had an accumulated deficit of $ 1,613,332 . Furthermore, the Company’s revenue history has been limited and unstable, and there can be no assurances of future revenues. Given these factors, the Company is dependent on financing from outside parties, and management intends to pursue outside capital through debt and equity vehicles. There is no assurance that these efforts will materialize or be successful or sufficient to fund operations and meet obligations as they come due. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, however, the above conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. |
STOCKHOLDERS_ DEFICIENCY
STOCKHOLDERS’ DEFICIENCY | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ DEFICIENCY | NOTE 4: STOCKHOLDERS’ DEFICIENCY The Company has designated ten million ( 10,000,000 0.001 0.0001 Class A shares a vote equal to sixty percent (60%) of the common stock. The Company shall have the right to redeem, in its sole and absolute discretion, at any time one (1) year after the date of issuance of such Class A shares, all or any portion of the shares of Class A at a price of one cent ($0.01) per share. 7,000,000 The Company has not currently authorized a Class B designation of Preferred Stock. EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) The Company has designated ten million ( 10,000,000 0.001 Each share of Class C shall be convertible into one (1) shares of common stock. The Company shall have the right to redeem, in its sole and absolute discretion, at any time after five (5) years, all or any portion of the shares of Class C at a price of five dollars ($ 5.00 7,000,000 Subsequently, in April 2019, the Company filed an amended and restated certificate of designation, which restricts the CEO and President from converting the 7,000,000 shares into common stock for 36 months from the issuance date. The following table sets forth the Company’s warrant activity through June 30, 2021: SCHEDULE OF WARRANT ACTIVITY Warrants Shares Under Warrant Term Exercise Price Remaining Life Balance, December 31, 2019 - - Warrants issued with equity units 627,862 1,255,724 3 $ 0.50 Balance, December 31, 2020 627,862 1,255,724 Balance, December 31, 2020 627,862 1,255,724 No new issuances Warrants issued with equity units - - Balance, June 30, 2021 627,862 1,255,724 Pursuant to a service agreement entered on January 25, 2021, the Company issued 100,000 19,000 As of June 30, 2021, the Company was authorized to issue 150,000,000 As of June 30, 2021, the Company had 8,421,079 As of June 30, 2021, 7,000,000 7,000,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 5: RELATED PARTY TRANSACTIONS During the six months ended June 30, 2021, the Company paid out previously accrued consulting fees payable to the CEO and President of $ 5,000 30,000 72,500 45,000 0 During the six months ended June 30, 2021, the Company’s CEO and President paid expenses on behalf of the Company totaling $ 34,309 and $ 4,648 , and the Company repaid $ 85,716 and $ 4,648 of related party advances, respectively. As of June 30, 2021, the Company was indebted to the CEO for $ 103 and to the President for $ 0 , respectively, for expenses paid on behalf of the company. EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES | NOTE 6: CONVERTIBLE NOTES As of June 30, 2021 and December 31, 2020, the Company owed $ 720,000 and $ 720,000 on outstanding convertible notes, respectively. On February 3, 2021, the Company extended its convertible note for $ 100,000 November 26, 2020 10% February 3, 2022 15% 70% 1,000,000 The Company evaluated the convertible notes in light of ASC 470 and determined that a beneficial conversion feature exists. However, given the contingent nature of the holder’s option and the lack of a market for the Company’s stock, the Company concluded that such a feature is not currently ascertainable and allocated the full principal amount to the convertible note liability. During the three and six months ended June 30, 2021, the Company recognized $ 19,066 and $ 40,217 of interest expense on convertible debt. As of June 30, 2021 and December 31, 2020, outstanding accrued interest on convertible debt totaled $ 83,955 and $ 43,738 , respectively. |
SIGNIFICANT AGREEMENTS
SIGNIFICANT AGREEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Significant Agreements | |
SIGNIFICANT AGREEMENTS | NOTE 7: SIGNIFICANT AGREEMENTS On March 17, 2021, the Company entered into a joint marketing agreement with RoviSys Building Technologies, LLC (“RoviSys”), under which it will comarket its mobile and immersion-cooled data center solutions and other related services. The agreement grants a license to RoviSys to market the Company’s products. |
FINANCE LEASE
FINANCE LEASE | 6 Months Ended |
Jun. 30, 2021 | |
Finance Lease | |
FINANCE LEASE | NOTE 8: FINANCE LEASE On March 27, 2020, the Company entered into a 36-month lease for datacenter equipment. Terms of the lease call for 36 1,292 7,753 3,140 500 12,685 12,685 The Company evaluated the lease in light of ASC 842 and determined that it was a long-term finance lease, since (a) the lease term is for the major part of the remaining economic life of the underlying asset and (b) the present value of the sum of lease payments equals or substantially exceeds the fair value of the underlying asset. At lease inception, the Company recognized a right of use asset for $ 38,895 3,140 38,895 12.55% During the six months ended June 30, 2021, the Company paid a total of $ 7,752 , including $ 6,055 of principal and $ 1,697 of interest, to the lessor and recognized $ 3,241 of lease expense for the three months ended June 30, 2021. EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) As of June 30, 2021, lease-related assets and liabilities consisted of: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES Assets Prepaid expense $ 1,830 Right of use asset - finance lease 22,688 Security deposit 7,753 Total lease-related assets $ 32,271 Liabilities Lease liability - finance, current portion $ 16,099 Lease liability - finance, non-current portion 10,277 Total lease-related liabilities $ 26,376 Future maturities of the lease liability are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITY 2021 $ 9,646 2022 14,186 2023 2,543 Total future maturities $ 26,376 |
CUSTOMER DEPOSIT LIABILITY
CUSTOMER DEPOSIT LIABILITY | 6 Months Ended |
Jun. 30, 2021 | |
Customer Deposit Liability | |
CUSTOMER DEPOSIT LIABILITY | NOTE 9: CUSTOMER DEPOSIT LIABILITY As discussed in Note 2, during the three months ended June 30, 2021, the Company collected $ 56,533 56,533 |
CONCENTRATIONS, COMMITMENTS AND
CONCENTRATIONS, COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONCENTRATIONS, COMMITMENTS AND CONTINGENCIES | NOTE 10: CONCENTRATIONS, COMMITMENTS AND CONTINGENCIES During the three months ended June 30, 2021, one customer comprised 93% EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 11: RECENT ACCOUNTING PRONOUNCEMENTS Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12: SUBSEQUENT EVENTS On September 17, 2021, the Company accrued the issuance of 25,000 common shares due to a consultant under a service agreement, resulting in compensation expense of $4,750. Management has evaluated significant subsequent events through the date these financial statements were available to be issued and has identified no significant events requiring further disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 | 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 | 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 June 30, 2021, and December 31, 2020, the Company’s cash balances did not exceed federally insured limits. EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) |
Right of Use Assets and Lease Liabilities | 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. |
Inventory | Inventory The Company values inventory at its original cost, adjusted to approximate the lower of actual cost or estimated net realizable value using assumptions about future demand and market conditions. In determining excess or obsolescence reserves for its products, the Company considers assumptions such as changes in business and economic conditions, other-than-temporary decreases in demand for its products, and changes in technology or customer requirements. In determining the lower of cost or net realizable value reserves, the Company considers assumptions such as recent historical sales activity and selling prices, as well as estimates of future selling prices. The Company fully reserves for inventories and non-cancellable purchase orders for inventory deemed obsolete. The Company performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances and non-cancellable purchase orders to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by the Company, additional inventory carrying value adjustments may be required. As of June 30, 2021, the Company had no |
Property and Equipment | 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 are all currently estimated at three years. As of June 30, 2021, the Company’s property and equipment consisted of $ 71,938 13,347 30,707 7,088 14,066 4,129 4,210 |
Long-Lived Assets | 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 June 30, 2021, the Company determined that its long-lived assets have not been impaired. |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable consisted of $ 74,434 92,499 44,174 As of December 31, 2020, accrued expenses consisted of $ 1,811 1,903 45,548 83,955 EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) |
Fair Value of Financial Instruments | 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 | 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 and gaming. 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. 2. Hardware sales – The Company resells mobile and immersion-cooled data center solutions and other high-powered computing equipment. During the three and six months ended June 30, 2021, the Company recognized $ 12,709 29,483 of revenue from its customers’ usage of datacenter credits, respectively. The Company further recognized a deferred revenue liability of $ 6,978 for prepaid usage credits not yet used by its customers as of June 30, 2021. While the Company plans to continue to generate revenue, there can be no assurances that service lines will generate satisfactory revenue or continue to generate revenue. Net hardware sales during the six months ended June 30, 2021 totaled $ 797,440 and had associated costs of goods sold of $ 641,174 The Company recognizes prepayments for equipment not yet delivered at the end of a given period as a customer deposit liability. As of June 30, 2021, outstanding customer deposit liabilities totaled $ 56,533 |
Crypto Assets Held | Crypto Assets Held The crypto assets held by the Company, with no qualifying fair value hedge, are accounted for as intangible assets with indefinite useful lives and are initially measured at cost. Crypto assets accounted for as intangible assets are 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, which is measured using the quoted price of the crypto asset at the time its fair value is being measured. Impairment expense is reflected in other operating expense in the consolidated statements of operations. The Company assigns costs to transactions on a first-in, first-out basis. As of June 30, 2021 and December 31, 2020, the carrying value of crypto assets held by the Company was $ 997 1,197 |
Cryptocurrency Income | Cryptocurrency Income The Company records cryptocurrency generated, net of fees and valuation adjustments, as other income and classifies the cryptocurrency as crypto assets held at cost in its balance sheets. When the company sells its cryptocurrencies, it recognizes a gain or loss for the difference between original cost and the selling price, net of fees. During the three and six months ended June 30, 2021, the Company recognized $ 5,320 10,067 537 478 |
Stock-Based Compensation | 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. EDGE DATA SOLUTIONS, INC. (Formerly Southeastern Holdings, Inc.) NOTES TO FINANCIAL STATEMENTS As of June 30, 2021 (Unaudited) and for the Three Months Then Ended (Unaudited) |
Income Taxes | 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. |
STOCKHOLDERS_ DEFICIENCY (Table
STOCKHOLDERS’ DEFICIENCY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
SCHEDULE OF WARRANT ACTIVITY | The following table sets forth the Company’s warrant activity through June 30, 2021: SCHEDULE OF WARRANT ACTIVITY Warrants Shares Under Warrant Term Exercise Price Remaining Life Balance, December 31, 2019 - - Warrants issued with equity units 627,862 1,255,724 3 $ 0.50 Balance, December 31, 2020 627,862 1,255,724 Balance, December 31, 2020 627,862 1,255,724 No new issuances Warrants issued with equity units - - Balance, June 30, 2021 627,862 1,255,724 |
FINANCE LEASE (Tables)
FINANCE LEASE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Finance Lease | |
SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES | As of June 30, 2021, lease-related assets and liabilities consisted of: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES Assets Prepaid expense $ 1,830 Right of use asset - finance lease 22,688 Security deposit 7,753 Total lease-related assets $ 32,271 Liabilities Lease liability - finance, current portion $ 16,099 Lease liability - finance, non-current portion 10,277 Total lease-related liabilities $ 26,376 |
SCHEDULE OF MATURITIES OF LEASE LIABILITY | Future maturities of the lease liability are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITY 2021 $ 9,646 2022 14,186 2023 2,543 Total future maturities $ 26,376 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details Narrative) - $ / shares | Aug. 23, 2018 | Jun. 30, 2021 | Dec. 31, 2020 |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Blockchain Holdings, LLC [Member] | |||
Number of common stock issued | 300,000,000 | ||
Number of shares issued equivalent to reverse split | 3,000,000 | ||
Common stock, par value | $ 0.0001 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Inventory, Net | $ 0 | $ 0 | |||
Accumulated depreciation of property and equipment | 30,707 | 30,707 | |||
Depreciation | 7,088 | $ 4,129 | 14,066 | $ 4,210 | |
Accounts payable other | 74,434 | 74,434 | 74,434 | 74,434 | |
State and local taxes payable | $ 1,811 | ||||
Contract with Customer, Liability, Revenue Recognized | 12,709 | 29,483 | |||
Deferred Revenue, Current | 6,978 | 6,978 | 1,035 | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 776,080 | 6,307 | 826,923 | 6,307 | |
Cost of Goods and Services Sold | 641,174 | 660,458 | |||
Customer deposit liability | 56,533 | ||||
Crypto assets held | 997 | 997 | 1,197 | ||
Cryptocurrency mining income | 5,320 | 10,067 | |||
Gain on disposal of cryptocurrency | 537 | 478 | |||
Hardware Sales [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 763,371 | $ 6,307 | 797,440 | $ 6,307 | |
Convertible Debt [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Accrued interest | 83,955 | 83,955 | 45,548 | ||
Vendor [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Accrued interest | 1,903 | ||||
Professional Services And Various Other General And Administrative Expenses [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Accounts payable other | 92,499 | 92,499 | $ 44,174 | ||
Datacenter Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 71,938 | 71,938 | |||
Capitalized Labor [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 13,347 | 13,347 | |||
Hardware Sales [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost of Goods and Services Sold | $ 641,174 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 20,521 | $ 80,368 |
Assets, Current | 29,858 | 137,415 |
Liabilities, Current | 1,050,601 | 987,404 |
Retained Earnings (Accumulated Deficit) | $ 1,613,332 | $ 1,410,634 |
SCHEDULE OF WARRANT ACTIVITY (D
SCHEDULE OF WARRANT ACTIVITY (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Warrant issued with equity units, terms | 3 years | |
Warrant issued with equity units, exercise price | 0.50 | |
Warrant [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 627,862 | |
Warrant issued with equity units | 627,862 | |
Ending balance | 627,862 | 627,862 |
Shares Under Warrant [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 1,255,724 | |
Warrant issued with equity units | 1,255,724 | |
Ending balance | 1,255,724 | 1,255,724 |
STOCKHOLDERS_ DEFICIENCY (Detai
STOCKHOLDERS’ DEFICIENCY (Details Narrative) - USD ($) | Jan. 25, 2021 | Oct. 04, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | |||
Stock-based compensation expense | $ 19,000 | $ 163,400 | |||
Common stock, shares authorized | 150,000,000 | 150,000,000 | |||
Common stock, shares outstanding | 8,421,079 | 8,321,079 | |||
Service Agreement [Member] | |||||
Class of Stock [Line Items] | |||||
Number of shares purchased | 100,000 | ||||
Stock-based compensation expense | $ 19,000 | ||||
Class A Super Voting Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock shares designated | 10,000,000 | 10,000,000 | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||
Voting percentage for common stock | Class A shares a vote equal to sixty percent (60%) of the common stock. | ||||
Right to redeemable, description | The Company shall have the right to redeem, in its sole and absolute discretion, at any time one (1) year after the date of issuance of such Class A shares, all or any portion of the shares of Class A at a price of one cent ($0.01) per share. | ||||
Preferred stock issued | 7,000,000 | 7,000,000 | |||
Preferred stock outstanding | 7,000,000 | 7,000,000 | |||
Class A Super Voting Preferred Stock [Member] | Chief Executive Officer and President [Member] | |||||
Class of Stock [Line Items] | |||||
Stock issued during period stock-based compensation, shares | 7,000,000 | ||||
Class C Convertible Preferred Non-Voting Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock shares designated | 10,000,000 | 10,000,000 | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||
Right to redeemable, description | The Company shall have the right to redeem, in its sole and absolute discretion, at any time after five (5) years, all or any portion of the shares of Class C at a price of five dollars ($5.00) per share. | ||||
Conversion of common stock, description | Each share of Class C shall be convertible into one (1) shares of common stock. | ||||
Preferred stock, redemption price per share | $ 5 | ||||
Preferred stock issued | 7,000,000 | 7,000,000 | |||
Preferred stock outstanding | 7,000,000 | 7,000,000 | |||
Class C Convertible Preferred Non-Voting Stock [Member] | Chief Executive Officer and President [Member] | |||||
Class of Stock [Line Items] | |||||
Stock issued during period stock-based compensation, shares | 7,000,000 | ||||
Conversion of stock, description | Subsequently, in April 2019, the Company filed an amended and restated certificate of designation, which restricts the CEO and President from converting the 7,000,000 shares into common stock for 36 months from the issuance date. |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Repayments of Related Party Debt | $ 90,364 | $ 106,734 |
Chief Executive Officer [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Consulting fees payable | 5,000 | |
Accrued consulting fees | 72,500 | |
Outstanding compensation | 0 | |
Related Party Transaction, Expenses from Transactions with Related Party | 34,309 | |
Repayments of Related Party Debt | 85,716 | |
Accrued Professional Fees | 103 | |
President [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Consulting fees payable | 30,000 | |
Accrued consulting fees | 45,000 | |
Related Party Transaction, Expenses from Transactions with Related Party | 4,648 | |
Repayments of Related Party Debt | 4,648 | |
Accrued Professional Fees | 0 | |
Chief Operating Officer [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||
Outstanding compensation | $ 0 |
CONVERTIBLE NOTES (Details Narr
CONVERTIBLE NOTES (Details Narrative) - USD ($) | Feb. 03, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||||||
Convertible notes | $ 720,000 | $ 720,000 | $ 720,000 | |||
Debt instrument, maturity date | Feb. 3, 2022 | |||||
Debt instrument, interest rate | 15.00% | |||||
Debt instrument, convertible interest | 70.00% | |||||
Debt instrument, face amount | $ 1,000,000 | |||||
Interest Expense | 23,260 | $ 15,171 | 50,345 | $ 24,108 | ||
Convertible Debt [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Interest Expense | 19,066 | 40,217 | ||||
Interest Payable, Current | $ 83,955 | $ 83,955 | $ 43,738 | |||
Clearvoyance Ventures [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Convertible notes | $ 100,000 | |||||
Debt instrument, maturity date | Nov. 26, 2020 | |||||
Debt instrument, interest rate | 10.00% |
SCHEDULE OF LEASE RELATED ASSET
SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 27, 2020 |
Finance Lease | |||
Prepaid expense | $ 1,830 | ||
Right of use asset - finance lease | 22,688 | $ 29,171 | $ 38,895 |
Security deposit | 7,753 | 7,753 | 7,753 |
Total lease-related assets | 32,271 | ||
Lease liability - finance, current portion | 16,099 | 15,703 | |
Lease liability - finance, non-current portion | 10,277 | $ 16,730 | |
Total lease-related liabilities | $ 26,376 | $ 38,895 |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITY (Details) | Jun. 30, 2021USD ($) |
Finance Lease | |
2021 | $ 9,646 |
2022 | 14,186 |
2023 | 2,543 |
Total future maturities | $ 26,376 |
FINANCE LEASE (Details Narrativ
FINANCE LEASE (Details Narrative) - USD ($) | Mar. 27, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Lease term | 36 months | |||
Initial payment | $ 1,292 | $ 7,752 | $ 1,292 | |
Security deposit | 7,753 | 7,753 | $ 7,753 | |
Sales tax | 3,140 | |||
Origination fee | 500 | |||
Payments for Rent | 12,685 | |||
Right of use asset | 38,895 | 22,688 | $ 29,171 | |
Prepaid tax | 3,140 | |||
Finance lease liability | $ 38,895 | 26,376 | ||
Lease percentage | 12.55% | |||
[custom:PrinciplePaymentToLessor] | 7,752 | |||
Lease, Cost | 3,241 | |||
Principal [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
[custom:PrinciplePaymentToLessor] | 6,055 | |||
Interest [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
[custom:PrinciplePaymentToLessor] | $ 1,697 | |||
With 36 Monthly Payments [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payments for Rent | $ 12,685 |
CUSTOMER DEPOSIT LIABILITY (Det
CUSTOMER DEPOSIT LIABILITY (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Customer deposit liability | $ 56,533 | |
Datacenter Hardware Solutions [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Customer deposit liability, not yet fulfilled | $ 56,533 |
CONCENTRATIONS, COMMITMENTS A_2
CONCENTRATIONS, COMMITMENTS AND CONTINGENCIES (Details Narrative) | 3 Months Ended |
Jun. 30, 2021 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |
Product Information [Line Items] | |
Concentration risk, percentage | 93.00% |