| BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES | NOTE 1 – BASIS OF PRESENTATION AND SUMMARY
OF SIGNIFICANT POLICIES About Bitmine Immersion Technologies, Inc. Bitmine Immersion Technologies Inc. f/k/a Sandy
Springs Holdings, Inc. (“ Bitmine Company By a written consent dated July 16, 2021, holders
of a majority of the Company’s issued and outstanding common stock approved a resolution to appoint Jonathan Bates, Raymond Mow,
Michael Maloney, and Seth Bayles to the board of directors of the Company, and to appoint Jonathan Bates as Chairman, Seth Bayles as
Corporate Secretary, Raymond Mow as Chief Financial Officer, and Ryan Ramnath as Chief Operating Officer (collectively, the “ New
O&Ds The appointment of certain of the New O&Ds
to the Company’s board, and issuance to the New O&Ds of a controlling interest in the Company, were made in order to enable
the Company to enter the business of creating a hosting center for Bitcoin mining computers primarily utilizing immersion cooling
technology, as well mining the Bitcoin digital currency for its own account. Prior to the change of control to the New O&Ds, the Company
was a shell company. During the nine months ended May 31, 2022, the
Company began implementing its business plan by generating revenue from the mining of Bitcoin digital currency and the sale of mining
equipment. The Company’s year-end is August 31st. Basis of Presentation The foregoing unaudited interim condensed financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“ GAAP SEC The preparation of financial statements in accordance
with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and
expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of
the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions
that could have a material effect on the reported amounts of the Company’s financial position and results of operations. Operating results for the nine months ended May
31, 2022, are not necessarily indicative of the results that may be expected for the year ending August 31, 2022. Reverse Stock Split On June 25, 2020, the Board of Directors and the
shareholders of the Company approved a 1 for 40,000 reverse split, with all fractional shares rounded up to the nearest whole share, and
immediately after the completion of the reverse split, effected a 200 for 1 forward stock split. The net effect of the splits was a 1
for 200 reverse split of the Company’s common shares. The stock splits were effective April 27, 2021. No fractional shares of common
stock were issued connection with the Reverse Split. If, as a result of the Reverse Split, a shareholder would have otherwise held a fractional
share, the shareholder received, instead of the issuance of such fractional share, one whole share of common stock. The Company’s financial statements in this
Report for the periods ended May 31, 2022, and August 31, 2021, and all references thereto have been retroactively adjusted to reflect
the split unless specifically stated otherwise. Management’s Representation of Interim
Financial Statements The accompanying unaudited condensed financial
statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission
(“SEC”). The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information
and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted
in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes
that the disclosures are adequate to make the information presented not misleading. These condensed financial statements include all of
the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations.
All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. Use of Estimates The preparation of financial statements in conformity
with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements. The most significant estimates relate to income taxes and
contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that
are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of
these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. Actual results could differ from these estimates. Revenue Recognition On July 1, 2018, the Company adopted Accounting
Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Results for reporting
periods beginning after January 1, 2018, are presented under ASC 606. Revenues
from digital currency mining The Company has entered into contracts with digital
asset mining pool operators to provide computing power to the mining pools. The contracts are terminable at any time by either party and
the Company’s enforceable right to compensation only begins when the Company starts providing computing power to the mining pool
operator. In exchange for providing computing power, the Company is entitled to a fractional share of the fixed cryptocurrency award the
mining pool operator receives ( less There is currently no definitive guidance under GAAP or alternative
accounting framework for the accounting for digital currencies recognized as revenue or held, and management has exercised significant
judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, the Company
may be required to change its policies, which could have an effect on the Company’s consolidated financial position and results
from operations. Cash and cash equivalents The Company considers all highly liquid temporary
cash investments with an original maturity of three months or less to be cash equivalents. On May 31, 2022, and August 31, 2021, respectively,
the Company’s cash equivalents totaled $ 499,912
218,737 Digital
Currency Digital currencies are included in current assets
in the consolidated balance sheets. Digital currencies are recorded at cost less impairment. They are classified as indefinite-lived intangible
assets in accordance with ASC 350, Intangibles — Goodwill and Other, and are accounted for in connection with the Company’s
revenue recognition policy detailed above and in Note 2 – Summary of Significant Accounting Policies. 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 that an impairment exists. If it is determined that it is not 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. Quantitative impairment is measured using the quoted price of the digital currency at the time its fair value is being measured
in accordance with ASC 820, Fair Value Measurement. Quoted prices are obtained from the principal market. 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 as
per ASC 350, Intangibles – Goodwill and Other. Digital currencies earned by the Company through its mining activities
are included within operating activities on the accompanying consolidated statements of cash flows. The sales of digital currencies are
included within investing activities in the accompanying consolidated statements of cash flows and any realized gains or losses from such
sales are included in other income (expense) in the consolidated statements of operations and comprehensive income (loss). The Company
accounts for its gains or losses in accordance with the first in first out (“FIFO”) method of accounting. Income taxes The Company accounts for income taxes under FASB
ASC 740, “Accounting for Income Taxes” “Accounting for Uncertainty in Income Taxes” Stock-based Compensation The Company accounts for stock-based compensation
using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure
about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for
an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized
over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually
the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Net Loss per Share Net loss per common share is computed by dividing
net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260,
“Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income
by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share calculations
are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. Stock Purchase
Warrants The Company accounts for warrants issued to
purchase shares of its common stock as equity in accordance with FASB ASC 480, Accounting for Derivative Financial Instruments
Indexed to, and Potentially Settled in, a Company’s Own Stock, Distinguishing Liabilities from Equity. Property and equipment Property and equipment is stated at cost and depreciated
using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for leasehold improvements are typically
the lesser of the estimated useful life of the asset or the life of the term of the lease. The estimated useful lives for all other property
and equipment are as follows:
Estimated useful lives Life (Years)
Miners and mining equipment 3
Machinery and equipment 5 7
Office and computer equipment 3 No depreciation is recorded on an asset until
it is placed in service. As of May 31, 2022, and August 31, 2021 had $ 2,688,306 427,296 187,260 7,803 Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02,
Leases (Topic 842) Codification Improvements Codification Improvements to Topic 842, Leases (Topic 842) Targeted Improvements, We adopted ASC 842 on July 16, 2020. The adoption
of this guidance did not have any impact on our financial statements. |
